IL
Illinois Senate Bill SB1239

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1239 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1239 Introduced 2/2/2023, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1025 Amends the Civil Administrative Code of Illinois. Defines "cryptocurrency" and "cryptocurrency mining". Changes the definition of "qualifying Illinois data center" to include data centers engaged in cryptocurrency mining that made or committed to make a capital investment of at least $250,000,000 over a 60-month period prior to the effective date of the amendatory Act. Effective immediately. LRB103 28066 HLH 54445 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1239 Introduced 2/2/2023, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: 20 ILCS 605/605-1025 20 ILCS 605/605-1025 Amends the Civil Administrative Code of Illinois. Defines "cryptocurrency" and "cryptocurrency mining". Changes the definition of "qualifying Illinois data center" to include data centers engaged in cryptocurrency mining that made or committed to make a capital investment of at least $250,000,000 over a 60-month period prior to the effective date of the amendatory Act. Effective immediately. LRB103 28066 HLH 54445 b LRB103 28066 HLH 54445 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1239 Introduced 2/2/2023, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
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55 Amends the Civil Administrative Code of Illinois. Defines "cryptocurrency" and "cryptocurrency mining". Changes the definition of "qualifying Illinois data center" to include data centers engaged in cryptocurrency mining that made or committed to make a capital investment of at least $250,000,000 over a 60-month period prior to the effective date of the amendatory Act. Effective immediately.
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1111 1 AN ACT concerning State government.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Department of Commerce and Economic
1515 5 Opportunity Law of the Civil Administrative Code of Illinois
1616 6 is amended by changing Section 605-1025 as follows:
1717 7 (20 ILCS 605/605-1025)
1818 8 Sec. 605-1025. Data center investment.
1919 9 (a) The Department shall issue certificates of exemption
2020 10 from the Retailers' Occupation Tax Act, the Use Tax Act, the
2121 11 Service Use Tax Act, and the Service Occupation Tax Act, all
2222 12 locally-imposed retailers' occupation taxes administered and
2323 13 collected by the Department, the Chicago non-titled Use Tax,
2424 14 and a credit certification against the taxes imposed under
2525 15 subsections (a) and (b) of Section 201 of the Illinois Income
2626 16 Tax Act to qualifying Illinois data centers.
2727 17 (b) For taxable years beginning on or after January 1,
2828 18 2019, the Department shall award credits against the taxes
2929 19 imposed under subsections (a) and (b) of Section 201 of the
3030 20 Illinois Income Tax Act as provided in Section 229 of the
3131 21 Illinois Income Tax Act.
3232 22 (c) For purposes of this Section:
3333 23 "Cryptocurrency" means a type of virtual currency that
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4040 Amends the Civil Administrative Code of Illinois. Defines "cryptocurrency" and "cryptocurrency mining". Changes the definition of "qualifying Illinois data center" to include data centers engaged in cryptocurrency mining that made or committed to make a capital investment of at least $250,000,000 over a 60-month period prior to the effective date of the amendatory Act. Effective immediately.
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6868 1 utilizes cryptography to secure transactions that are
6969 2 digitally recorded on a distributed ledger, such as a
7070 3 blockchain.
7171 4 "Cryptocurrency mining" means the process whereby
7272 5 computers, also known as nodes or mining rigs, validate
7373 6 blockchain transactions for a specific cryptocurrency and, in
7474 7 turn, receive a mining reward for their computational efforts.
7575 8 "Data center" means a facility: (1) whose primary
7676 9 services are the storage, management, and processing of
7777 10 digital data, or cryptocurrency mining; and (2) that is
7878 11 used to house (i) computer and network systems, including
7979 12 associated components such as servers, network equipment
8080 13 and appliances, telecommunications, and data storage
8181 14 systems, (ii) systems for monitoring and managing
8282 15 infrastructure performance, (iii) Internet-related
8383 16 equipment and services, (iv) data communications
8484 17 connections, (v) environmental controls, (vi) fire
8585 18 protection systems, and (vii) security systems and
8686 19 services.
8787 20 "Qualifying Illinois data center" means a new or
8888 21 existing data center that:
8989 22 (1) is located in the State of Illinois;
9090 23 (2) in the case of an existing data center, made a
9191 24 capital investment of at least $250,000,000
9292 25 collectively by the data center operator and the
9393 26 tenants of the data center over the 60-month period
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104104 1 immediately prior to January 1, 2020, or in the case of
105105 2 a data center engaged in cryptocurrency mining, made a
106106 3 capital investment of at least $250,000,000 over the
107107 4 60-month period immediately prior to the effective
108108 5 date of this amendatory Act of the 103rd General
109109 6 Assembly, or committed to make a capital investment of
110110 7 at least $250,000,000 over a 60-month period
111111 8 commencing before January 1, 2020 and ending after
112112 9 January 1, 2020, or in the case of a data center
113113 10 engaged in cryptocurrency mining, committed to make a
114114 11 capital investment of at least $250,000,000 over a
115115 12 60-month period commencing before the effective date
116116 13 of this amendatory Act of the 103rd General Assembly
117117 14 and ending after the effective date of this amendatory
118118 15 Act of the 103rd General Assembly; or
119119 16 (3) in the case of a new data center, or an
120120 17 existing data center making an upgrade, makes a
121121 18 capital investment of at least $250,000,000 over a
122122 19 60-month period beginning on or after January 1, 2020;
123123 20 and
124124 21 (4) in the case of both existing and new data
125125 22 centers, results in the creation of at least 20
126126 23 full-time or full-time equivalent new jobs over a
127127 24 period of 60 months by the data center operator and the
128128 25 tenants of the data center, collectively, associated
129129 26 with the operation or maintenance of the data center;
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140140 1 those jobs must have a total compensation equal to or
141141 2 greater than 120% of the average wage paid to
142142 3 full-time employees in the county where the data
143143 4 center is located, as determined by the U.S. Bureau of
144144 5 Labor Statistics; and
145145 6 (5) within 2 years after being placed in service,
146146 7 certifies to the Department that it is carbon neutral
147147 8 or has attained certification under one or more of the
148148 9 following green building standards:
149149 10 (A) BREEAM for New Construction or BREEAM
150150 11 In-Use;
151151 12 (B) ENERGY STAR;
152152 13 (C) Envision;
153153 14 (D) ISO 50001-energy management;
154154 15 (E) LEED for Building Design and Construction
155155 16 or LEED for Operations and Maintenance;
156156 17 (F) Green Globes for New Construction or Green
157157 18 Globes for Existing Buildings;
158158 19 (G) UL 3223; or
159159 20 (H) an equivalent program approved by the
160160 21 Department of Commerce and Economic Opportunity.
161161 22 "Full-time equivalent job" means a job in which the
162162 23 new employee works for the owner, operator, contractor, or
163163 24 tenant of a data center or for a corporation under
164164 25 contract with the owner, operator or tenant of a data
165165 26 center at a rate of at least 35 hours per week. An owner,
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176176 1 operator or tenant who employs labor or services at a
177177 2 specific site or facility under contract with another may
178178 3 declare one full-time, permanent job for every 1,820 man
179179 4 hours worked per year under that contract. Vacations, paid
180180 5 holidays, and sick time are included in this computation.
181181 6 Overtime is not considered a part of regular hours.
182182 7 "Qualified tangible personal property" means:
183183 8 electrical systems and equipment; climate control and
184184 9 chilling equipment and systems; mechanical systems and
185185 10 equipment; monitoring and secure systems; emergency
186186 11 generators; hardware; computers; servers; data storage
187187 12 devices; network connectivity equipment; racks; cabinets;
188188 13 telecommunications cabling infrastructure; raised floor
189189 14 systems; peripheral components or systems; software;
190190 15 mechanical, electrical, or plumbing systems; battery
191191 16 systems; cooling systems and towers; temperature control
192192 17 systems; other cabling; and other data center
193193 18 infrastructure equipment and systems necessary to operate
194194 19 qualified tangible personal property, including fixtures;
195195 20 and component parts of any of the foregoing, including
196196 21 installation, maintenance, repair, refurbishment, and
197197 22 replacement of qualified tangible personal property to
198198 23 generate, transform, transmit, distribute, or manage
199199 24 electricity necessary to operate qualified tangible
200200 25 personal property; and all other tangible personal
201201 26 property that is essential to the operations of a computer
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212212 1 data center. "Qualified tangible personal property" also
213213 2 includes building materials physically incorporated in to
214214 3 the qualifying data center.
215215 4 To document the exemption allowed under this Section, the
216216 5 retailer must obtain from the purchaser a copy of the
217217 6 certificate of eligibility issued by the Department.
218218 7 (d) New and existing data centers seeking a certificate of
219219 8 exemption for new or existing facilities shall apply to the
220220 9 Department in the manner specified by the Department. The
221221 10 Department shall determine the duration of the certificate of
222222 11 exemption awarded under this Act. The duration of the
223223 12 certificate of exemption may not exceed 20 calendar years. The
224224 13 Department and any data center seeking the exemption,
225225 14 including a data center operator on behalf of itself and its
226226 15 tenants, must enter into a memorandum of understanding that at
227227 16 a minimum provides:
228228 17 (1) the details for determining the amount of capital
229229 18 investment to be made;
230230 19 (2) the number of new jobs created;
231231 20 (3) the timeline for achieving the capital investment
232232 21 and new job goals;
233233 22 (4) the repayment obligation should those goals not be
234234 23 achieved and any conditions under which repayment by the
235235 24 qualifying data center or data center tenant claiming the
236236 25 exemption will be required;
237237 26 (5) the duration of the exemption; and
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248248 1 (6) other provisions as deemed necessary by the
249249 2 Department.
250250 3 (e) Beginning July 1, 2021, and each year thereafter, the
251251 4 Department shall annually report to the Governor and the
252252 5 General Assembly on the outcomes and effectiveness of Public
253253 6 Act 101-31 that shall include the following:
254254 7 (1) the name of each recipient business;
255255 8 (2) the location of the project;
256256 9 (3) the estimated value of the credit;
257257 10 (4) the number of new jobs and, if applicable,
258258 11 retained jobs pledged as a result of the project; and
259259 12 (5) whether or not the project is located in an
260260 13 underserved area.
261261 14 (f) New and existing data centers seeking a certificate of
262262 15 exemption related to the rehabilitation or construction of
263263 16 data centers in the State shall require the contractor and all
264264 17 subcontractors to comply with the requirements of Section
265265 18 30-22 of the Illinois Procurement Code as they apply to
266266 19 responsible bidders and to present satisfactory evidence of
267267 20 that compliance to the Department.
268268 21 (g) New and existing data centers seeking a certificate of
269269 22 exemption for the rehabilitation or construction of data
270270 23 centers in the State shall require the contractor to enter
271271 24 into a project labor agreement approved by the Department.
272272 25 (h) Any qualifying data center issued a certificate of
273273 26 exemption under this Section must annually report to the
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284284 1 Department the total data center tax benefits that are
285285 2 received by the business. Reports are due no later than May 31
286286 3 of each year and shall cover the previous calendar year. The
287287 4 first report is for the 2019 calendar year and is due no later
288288 5 than May 31, 2020.
289289 6 To the extent that a business issued a certificate of
290290 7 exemption under this Section has obtained an Enterprise Zone
291291 8 Building Materials Exemption Certificate or a High Impact
292292 9 Business Building Materials Exemption Certificate, no
293293 10 additional reporting for those building materials exemption
294294 11 benefits is required under this Section.
295295 12 Failure to file a report under this subsection (h) may
296296 13 result in suspension or revocation of the certificate of
297297 14 exemption. Factors to be considered in determining whether a
298298 15 data center certificate of exemption shall be suspended or
299299 16 revoked include, but are not limited to, prior compliance with
300300 17 the reporting requirements, cooperation in discontinuing and
301301 18 correcting violations, the extent of the violation, and
302302 19 whether the violation was willful or inadvertent.
303303 20 (i) The Department shall not issue any new certificates of
304304 21 exemption under the provisions of this Section after July 1,
305305 22 2029. This sunset shall not affect any existing certificates
306306 23 of exemption in effect on July 1, 2029.
307307 24 (j) The Department shall adopt rules to implement and
308308 25 administer this Section.
309309 26 (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19;
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320320 1 102-427, eff. 8-20-21; 102-558, eff. 8-20-21.)
321321 2 Section 99. Effective date. This Act takes effect upon
322322 3 becoming law.
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