Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3155 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	Public Act 103-0945
2	1		SB3155 EnrolledLRB103 37139 HLH 67258 b SB3155 Enrolled LRB103 37139 HLH 67258 b
3	2		SB3155 Enrolled LRB103 37139 HLH 67258 b
4		-	AN ACT concerning revenue.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Income Tax Act is amended by
8		-	changing Section 220 as follows:
9		-	(35 ILCS 5/220)
10		-	Sec. 220. Angel investment credit.
11		-	(a) As used in this Section:
12		-	"Applicant" means a corporation, partnership, limited
13		-	liability company, or a natural person that makes an
14		-	investment in a qualified new business venture. The term
15		-	"applicant" does not include (i) a corporation, partnership,
16		-	limited liability company, or a natural person who has a
17		-	direct or indirect ownership interest of at least 51% in the
18		-	profits, capital, or value of the qualified new business
19		-	venture receiving the investment or (ii) a related member.
20		-	"Claimant" means an applicant certified by the Department
21		-	who files a claim for a credit under this Section.
22		-	"Department" means the Department of Commerce and Economic
23		-	Opportunity.
24		-	"Investment" means money (or its equivalent) given to a
25		-	qualified new business venture, at a risk of loss, in
26		-	consideration for an equity interest of the qualified new
	3	+	1 AN ACT concerning revenue.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Income Tax Act is amended by
	7	+	5 changing Section 220 as follows:
	8	+	6 (35 ILCS 5/220)
	9	+	7 Sec. 220. Angel investment credit.
	10	+	8 (a) As used in this Section:
	11	+	9 "Applicant" means a corporation, partnership, limited
	12	+	10 liability company, or a natural person that makes an
	13	+	11 investment in a qualified new business venture. The term
	14	+	12 "applicant" does not include (i) a corporation, partnership,
	15	+	13 limited liability company, or a natural person who has a
	16	+	14 direct or indirect ownership interest of at least 51% in the
	17	+	15 profits, capital, or value of the qualified new business
	18	+	16 venture receiving the investment or (ii) a related member.
	19	+	17 "Claimant" means an applicant certified by the Department
	20	+	18 who files a claim for a credit under this Section.
	21	+	19 "Department" means the Department of Commerce and Economic
	22	+	20 Opportunity.
	23	+	21 "Investment" means money (or its equivalent) given to a
	24	+	22 qualified new business venture, at a risk of loss, in
	25	+	23 consideration for an equity interest of the qualified new
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33		-	business venture. The Department may adopt rules to permit
34		-	certain forms of contingent equity investments to be
35		-	considered eligible for a tax credit under this Section.
36		-	"Qualified new business venture" means a business that is
37		-	registered with the Department under this Section.
38		-	"Related member" means a person that, with respect to the
39		-	applicant, is any one of the following:
40		-	(1) An individual, if the individual and the members
41		-	of the individual's family (as defined in Section 318 of
42		-	the Internal Revenue Code) own directly, indirectly,
43		-	beneficially, or constructively, in the aggregate, at
44		-	least 50% of the value of the outstanding profits,
45		-	capital, stock, or other ownership interest in the
46		-	qualified new business venture that is the recipient of
47		-	the applicant's investment.
48		-	(2) A partnership, estate, or trust and any partner or
49		-	beneficiary, if the partnership, estate, or trust and its
50		-	partners or beneficiaries own directly, indirectly,
51		-	beneficially, or constructively, in the aggregate, at
52		-	least 50% of the profits, capital, stock, or other
53		-	ownership interest in the qualified new business venture
54		-	that is the recipient of the applicant's investment.
55		-	(3) A corporation, and any party related to the
56		-	corporation in a manner that would require an attribution
57		-	of stock from the corporation under the attribution rules
58		-	of Section 318 of the Internal Revenue Code, if the
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	34	+	1 business venture. The Department may adopt rules to permit
	35	+	2 certain forms of contingent equity investments to be
	36	+	3 considered eligible for a tax credit under this Section.
	37	+	4 "Qualified new business venture" means a business that is
	38	+	5 registered with the Department under this Section.
	39	+	6 "Related member" means a person that, with respect to the
	40	+	7 applicant, is any one of the following:
	41	+	8 (1) An individual, if the individual and the members
	42	+	9 of the individual's family (as defined in Section 318 of
	43	+	10 the Internal Revenue Code) own directly, indirectly,
	44	+	11 beneficially, or constructively, in the aggregate, at
	45	+	12 least 50% of the value of the outstanding profits,
	46	+	13 capital, stock, or other ownership interest in the
	47	+	14 qualified new business venture that is the recipient of
	48	+	15 the applicant's investment.
	49	+	16 (2) A partnership, estate, or trust and any partner or
	50	+	17 beneficiary, if the partnership, estate, or trust and its
	51	+	18 partners or beneficiaries own directly, indirectly,
	52	+	19 beneficially, or constructively, in the aggregate, at
	53	+	20 least 50% of the profits, capital, stock, or other
	54	+	21 ownership interest in the qualified new business venture
	55	+	22 that is the recipient of the applicant's investment.
	56	+	23 (3) A corporation, and any party related to the
	57	+	24 corporation in a manner that would require an attribution
	58	+	25 of stock from the corporation under the attribution rules
	59	+	26 of Section 318 of the Internal Revenue Code, if the
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61		-	applicant and any other related member own, in the
62		-	aggregate, directly, indirectly, beneficially, or
63		-	constructively, at least 50% of the value of the
64		-	outstanding stock of the qualified new business venture
65		-	that is the recipient of the applicant's investment.
66		-	(4) A corporation and any party related to that
67		-	corporation in a manner that would require an attribution
68		-	of stock from the corporation to the party or from the
69		-	party to the corporation under the attribution rules of
70		-	Section 318 of the Internal Revenue Code, if the
71		-	corporation and all such related parties own, in the
72		-	aggregate, at least 50% of the profits, capital, stock, or
73		-	other ownership interest in the qualified new business
74		-	venture that is the recipient of the applicant's
75		-	investment.
76		-	(5) A person to or from whom there is attribution of
77		-	ownership of stock in the qualified new business venture
78		-	that is the recipient of the applicant's investment in
79		-	accordance with Section 1563(e) of the Internal Revenue
80		-	Code, except that for purposes of determining whether a
81		-	person is a related member under this paragraph, "20%"
82		-	shall be substituted for "5%" whenever "5%" appears in
83		-	Section 1563(e) of the Internal Revenue Code.
84		-	(b) For taxable years beginning after December 31, 2010,
85		-	and ending on or before December 31, 2026, subject to the
86		-	limitations provided in this Section, a claimant may claim, as
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89		-	a credit against the tax imposed under subsections (a) and (b)
90		-	of Section 201 of this Act, an amount equal to 25% of the
91		-	claimant's investment made directly in a qualified new
92		-	business venture. However, the amount of the credit is 35% of
93		-	the claimant's investment made directly in the qualified new
94		-	business venture if the investment is made in: (1) a qualified
95		-	new business venture that is a minority-owned business, a
96		-	women-owned business, or a business owned a person with a
97		-	disability (as those terms are used and defined in the
98		-	Business Enterprise for Minorities, Women, and Persons with
99		-	Disabilities Act); or (2) a qualified new business venture in
100		-	which the principal place of business is located in a county
101		-	with a population of not more than 250,000. In order for an
102		-	investment in a qualified new business venture to be eligible
103		-	for tax credits, the business must have applied for and
104		-	received certification under subsection (e) for the taxable
105		-	year in which the investment was made prior to the date on
106		-	which the investment was made. The credit under this Section
107		-	may not exceed the taxpayer's Illinois income tax liability
108		-	for the taxable year. If the amount of the credit exceeds the
109		-	tax liability for the year, the excess may be carried forward
110		-	and applied to the tax liability of the 5 taxable years
111		-	following the excess credit year. The credit shall be applied
112		-	to the earliest year for which there is a tax liability. If
113		-	there are credits from more than one tax year that are
114		-	available to offset a liability, the earlier credit shall be
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117		-	applied first. In the case of a partnership or Subchapter S
118		-	Corporation, the credit is allowed to the partners or
119		-	shareholders in accordance with the determination of income
120		-	and distributive share of income under Sections 702 and 704
121		-	and Subchapter S of the Internal Revenue Code.
122		-	(c) The minimum amount an applicant must invest in any
123		-	single qualified new business venture in order to be eligible
124		-	for a credit under this Section is $10,000. The maximum amount
125		-	of an applicant's total investment made in any single
126		-	qualified new business venture that may be used as the basis
127		-	for a credit under this Section is $2,000,000.
128		-	(d) The Department shall implement a program to certify an
129		-	applicant for an angel investment credit. Upon satisfactory
130		-	review, the Department shall issue a tax credit certificate
131		-	stating the amount of the tax credit to which the applicant is
132		-	entitled. The Department shall annually certify that: (i) each
133		-	qualified new business venture that receives an angel
134		-	investment under this Section has maintained a minimum
135		-	employment threshold, as defined by rule, in the State (and
136		-	continues to maintain a minimum employment threshold in the
137		-	State for a period of no less than 3 years from the issue date
138		-	of the last tax credit certificate issued by the Department
139		-	with respect to such business pursuant to this Section); and
140		-	(ii) the claimant's investment has been made and remains,
141		-	except in the event of a qualifying liquidity event, in the
142		-	qualified new business venture for no less than 3 years.
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	70	+	1 applicant and any other related member own, in the
	71	+	2 aggregate, directly, indirectly, beneficially, or
	72	+	3 constructively, at least 50% of the value of the
	73	+	4 outstanding stock of the qualified new business venture
	74	+	5 that is the recipient of the applicant's investment.
	75	+	6 (4) A corporation and any party related to that
	76	+	7 corporation in a manner that would require an attribution
	77	+	8 of stock from the corporation to the party or from the
	78	+	9 party to the corporation under the attribution rules of
	79	+	10 Section 318 of the Internal Revenue Code, if the
	80	+	11 corporation and all such related parties own, in the
	81	+	12 aggregate, at least 50% of the profits, capital, stock, or
	82	+	13 other ownership interest in the qualified new business
	83	+	14 venture that is the recipient of the applicant's
	84	+	15 investment.
	85	+	16 (5) A person to or from whom there is attribution of
	86	+	17 ownership of stock in the qualified new business venture
	87	+	18 that is the recipient of the applicant's investment in
	88	+	19 accordance with Section 1563(e) of the Internal Revenue
	89	+	20 Code, except that for purposes of determining whether a
	90	+	21 person is a related member under this paragraph, "20%"
	91	+	22 shall be substituted for "5%" whenever "5%" appears in
	92	+	23 Section 1563(e) of the Internal Revenue Code.
	93	+	24 (b) For taxable years beginning after December 31, 2010,
	94	+	25 and ending on or before December 31, 2026, subject to the
	95	+	26 limitations provided in this Section, a claimant may claim, as
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145		-	If an investment for which a claimant is allowed a credit
146		-	under subsection (b) is held by the claimant for less than 3
147		-	years, other than as a result of a permitted sale of the
148		-	investment to person who is not a related member, the claimant
149		-	shall pay to the Department of Revenue, in the manner
150		-	prescribed by the Department of Revenue, the aggregate amount
151		-	of the disqualified credits that the claimant received related
152		-	to the subject investment.
153		-	If the Department determines that a qualified new business
154		-	venture failed to maintain a minimum employment threshold in
155		-	the State through the date which is 3 years from the issue date
156		-	of the last tax credit certificate issued by the Department
157		-	with respect to the subject business pursuant to this Section,
158		-	except for any 3-year reporting period that includes March 13,
159		-	2020 to January 1, 2024, the claimant or claimants shall pay to
160		-	the Department of Revenue, in the manner prescribed by the
161		-	Department of Revenue, the aggregate amount of the
162		-	disqualified credits that claimant or claimants received
163		-	related to investments in that business. For tax credits under
164		-	this Section involving a 3-year reporting period that includes
165		-	March 13, 2020 to January 1, 2024, the repayment of any tax
166		-	credits issued shall be determined at the discretion of the
167		-	Department.
168		-	(e) The Department shall implement a program to register
169		-	qualified new business ventures for purposes of this Section.
170		-	A business desiring registration under this Section shall be
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173		-	required to submit a full and complete application to the
174		-	Department. A submitted application shall be effective only
175		-	for the taxable year in which it is submitted, and a business
176		-	desiring registration under this Section shall be required to
177		-	submit a separate application in and for each taxable year for
178		-	which the business desires registration. Further, if at any
179		-	time prior to the acceptance of an application for
180		-	registration under this Section by the Department one or more
181		-	events occurs which makes the information provided in that
182		-	application materially false or incomplete (in whole or in
183		-	part), the business shall promptly notify the Department of
184		-	the same. Any failure of a business to promptly provide the
185		-	foregoing information to the Department may, at the discretion
186		-	of the Department, result in a revocation of a previously
187		-	approved application for that business, or disqualification of
188		-	the business from future registration under this Section, or
189		-	both. The Department may register the business only if all of
190		-	the following conditions are satisfied:
191		-	(1) it has its principal place of business in this
192		-	State;
193		-	(2) at least 51% of the employees employed by the
194		-	business are employed in this State;
195		-	(3) the business has the potential for increasing jobs
196		-	in this State, increasing capital investment in this
197		-	State, or both, as determined by the Department, and
198		-	either of the following apply:
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201		-	(A) it is principally engaged in innovation in any
202		-	of the following: manufacturing; biotechnology;
203		-	nanotechnology; communications; agricultural
204		-	sciences; clean energy creation or storage technology;
205		-	processing or assembling products, including medical
206		-	devices, pharmaceuticals, computer software, computer
207		-	hardware, semiconductors, other innovative technology
208		-	products, or other products that are produced using
209		-	manufacturing methods that are enabled by applying
210		-	proprietary technology; or providing services that are
211		-	enabled by applying proprietary technology; or
212		-	(B) it is undertaking pre-commercialization
213		-	activity related to proprietary technology that
214		-	includes conducting research, developing a new product
215		-	or business process, or developing a service that is
216		-	principally reliant on applying proprietary
217		-	technology;
218		-	(4) it is not principally engaged in real estate
219		-	development, insurance, banking, lending, lobbying,
220		-	political consulting, professional services provided by
221		-	attorneys, accountants, business consultants, physicians,
222		-	or health care consultants, wholesale or retail trade,
223		-	leisure, hospitality, transportation, or construction,
224		-	except construction of power production plants that derive
225		-	energy from a renewable energy resource, as defined in
226		-	Section 1 of the Illinois Power Agency Act;
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	106	+	1 a credit against the tax imposed under subsections (a) and (b)
	107	+	2 of Section 201 of this Act, an amount equal to 25% of the
	108	+	3 claimant's investment made directly in a qualified new
	109	+	4 business venture. However, the amount of the credit is 35% of
	110	+	5 the claimant's investment made directly in the qualified new
	111	+	6 business venture if the investment is made in: (1) a qualified
	112	+	7 new business venture that is a minority-owned business, a
	113	+	8 women-owned business, or a business owned a person with a
	114	+	9 disability (as those terms are used and defined in the
	115	+	10 Business Enterprise for Minorities, Women, and Persons with
	116	+	11 Disabilities Act); or (2) a qualified new business venture in
	117	+	12 which the principal place of business is located in a county
	118	+	13 with a population of not more than 250,000. In order for an
	119	+	14 investment in a qualified new business venture to be eligible
	120	+	15 for tax credits, the business must have applied for and
	121	+	16 received certification under subsection (e) for the taxable
	122	+	17 year in which the investment was made prior to the date on
	123	+	18 which the investment was made. The credit under this Section
	124	+	19 may not exceed the taxpayer's Illinois income tax liability
	125	+	20 for the taxable year. If the amount of the credit exceeds the
	126	+	21 tax liability for the year, the excess may be carried forward
	127	+	22 and applied to the tax liability of the 5 taxable years
	128	+	23 following the excess credit year. The credit shall be applied
	129	+	24 to the earliest year for which there is a tax liability. If
	130	+	25 there are credits from more than one tax year that are
	131	+	26 available to offset a liability, the earlier credit shall be
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229		-	(5) at the time it is first certified:
230		-	(A) it has fewer than 100 employees;
231		-	(B) it has been in operation in Illinois for not
232		-	more than 10 consecutive years prior to the year of
233		-	certification; and
234		-	(C) it has received not more than $10,000,000 in
235		-	aggregate investments;
236		-	(5.1) it agrees to maintain a minimum employment
237		-	threshold in the State of Illinois prior to the date which
238		-	is 3 years from the issue date of the last tax credit
239		-	certificate issued by the Department with respect to that
240		-	business pursuant to this Section;
241		-	(6) (blank); and
242		-	(7) it has received not more than $4,000,000 in
243		-	investments that qualified for tax credits under this
244		-	Section.
245		-	(f) The Department, in consultation with the Department of
246		-	Revenue, shall adopt rules to administer this Section. For
247		-	taxable years beginning before January 1, 2024, the aggregate
248		-	amount of the tax credits that may be claimed under this
249		-	Section for investments made in qualified new business
250		-	ventures shall be limited to $10,000,000 per calendar year, of
251		-	which $500,000 shall be reserved for investments made in
252		-	qualified new business ventures which are minority-owned
253		-	businesses, women-owned businesses, or businesses owned by a
254		-	person with a disability (as those terms are used and defined
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257		-	in the Business Enterprise for Minorities, Women, and Persons
258		-	with Disabilities Act), and an additional $500,000 shall be
259		-	reserved for investments made in qualified new business
260		-	ventures with their principal place of business in counties
261		-	with a population of not more than 250,000. For taxable years
262		-	beginning on or after January 1, 2024, the aggregate amount of
263		-	the tax credits that may be claimed under this Section for
264		-	investments made in qualified new business ventures shall be
265		-	limited to $15,000,000 per calendar year, of which $2,500,000
266		-	shall be reserved for investments made in qualified new
267		-	business ventures that are minority-owned businesses (as the
268		-	term is defined in the Business Enterprise for Minorities,
269		-	Women, and Persons with Disabilities Act), $1,250,000 shall be
270		-	reserved for investments made in qualified new business
271		-	ventures that are women-owned businesses or businesses owned
272		-	by a person with a disability (as those terms are defined in
273		-	the Business Enterprise for Minorities, Women, and Persons
274		-	with Disabilities Act), and $1,250,000 shall be reserved for
275		-	investments made in qualified new business ventures with their
276		-	principal place of business in a county with a population of
277		-	not more than 250,000. The annual allowable amounts set forth
278		-	in this Section shall be allocated by the Department, on a per
279		-	calendar quarter basis and prior to the commencement of each
280		-	calendar year, in such proportion as determined by the
281		-	Department, provided that: (i) the amount initially allocated
282		-	by the Department for any one calendar quarter shall not
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285		-	exceed 35% of the total allowable amount; (ii) any portion of
286		-	the allocated allowable amount remaining unused as of the end
287		-	of any of the first 3 calendar quarters of a given calendar
288		-	year shall be rolled into, and added to, the total allocated
289		-	amount for the next available calendar quarter; and (iii) the
290		-	reservation of tax credits for investments in minority-owned
291		-	businesses, women-owned businesses, businesses owned by a
292		-	person with a disability, and in businesses in counties with a
293		-	population of not more than 250,000 is limited to the first 3
294		-	calendar quarters of a given calendar year, after which they
295		-	may be claimed by investors in any qualified new business
296		-	venture.
297		-	(g) A claimant may not sell or otherwise transfer a credit
298		-	awarded under this Section to another person.
299		-	(h) On or before March 1 of each year, the Department shall
300		-	report to the Governor and to the General Assembly on the tax
301		-	credit certificates awarded under this Section for the prior
302		-	calendar year.
303		-	(1) This report must include, for each tax credit
304		-	certificate awarded:
305		-	(A) the name of the claimant and the amount of
306		-	credit awarded or allocated to that claimant;
307		-	(B) the name and address (including the county) of
308		-	the qualified new business venture that received the
309		-	investment giving rise to the credit, the North
310		-	American Industry Classification System (NAICS) code
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	142	+	1 applied first. In the case of a partnership or Subchapter S
	143	+	2 Corporation, the credit is allowed to the partners or
	144	+	3 shareholders in accordance with the determination of income
	145	+	4 and distributive share of income under Sections 702 and 704
	146	+	5 and Subchapter S of the Internal Revenue Code.
	147	+	6 (c) The minimum amount an applicant must invest in any
	148	+	7 single qualified new business venture in order to be eligible
	149	+	8 for a credit under this Section is $10,000. The maximum amount
	150	+	9 of an applicant's total investment made in any single
	151	+	10 qualified new business venture that may be used as the basis
	152	+	11 for a credit under this Section is $2,000,000.
	153	+	12 (d) The Department shall implement a program to certify an
	154	+	13 applicant for an angel investment credit. Upon satisfactory
	155	+	14 review, the Department shall issue a tax credit certificate
	156	+	15 stating the amount of the tax credit to which the applicant is
	157	+	16 entitled. The Department shall annually certify that: (i) each
	158	+	17 qualified new business venture that receives an angel
	159	+	18 investment under this Section has maintained a minimum
	160	+	19 employment threshold, as defined by rule, in the State (and
	161	+	20 continues to maintain a minimum employment threshold in the
	162	+	21 State for a period of no less than 3 years from the issue date
	163	+	22 of the last tax credit certificate issued by the Department
	164	+	23 with respect to such business pursuant to this Section); and
	165	+	24 (ii) the claimant's investment has been made and remains,
	166	+	25 except in the event of a qualifying liquidity event, in the
	167	+	26 qualified new business venture for no less than 3 years.
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313		-	applicable to that qualified new business venture, and
314		-	the number of employees of the qualified new business
315		-	venture; and
316		-	(C) the date of approval by the Department of each
317		-	claimant's tax credit certificate.
318		-	(2) The report must also include:
319		-	(A) the total number of applicants and the total
320		-	number of claimants, including the amount of each tax
321		-	credit certificate awarded to a claimant under this
322		-	Section in the prior calendar year;
323		-	(B) the total number of applications from
324		-	businesses seeking registration under this Section,
325		-	the total number of new qualified business ventures
326		-	registered by the Department, and the aggregate amount
327		-	of investment upon which tax credit certificates were
328		-	issued in the prior calendar year; and
329		-	(C) the total amount of tax credit certificates
330		-	sought by applicants, the amount of each tax credit
331		-	certificate issued to a claimant, the aggregate amount
332		-	of all tax credit certificates issued in the prior
333		-	calendar year and the aggregate amount of tax credit
334		-	certificates issued as authorized under this Section
335		-	for all calendar years.
336		-	(i) For each business seeking registration under this
337		-	Section after December 31, 2016, the Department shall require
338		-	the business to include in its application the North American
339	170
340	171
341		-	Industry Classification System (NAICS) code applicable to the
342		-	business and the number of employees of the business at the
343		-	time of application. Each business registered by the
344		-	Department as a qualified new business venture that receives
345		-	an investment giving rise to the issuance of a tax credit
346		-	certificate pursuant to this Section shall, for each of the 3
347		-	years following the issue date of the last tax credit
348		-	certificate issued by the Department with respect to such
349		-	business pursuant to this Section, report to the Department
350		-	the following:
351		-	(1) the number of employees and the location at which
352		-	those employees are employed, both as of the end of each
353		-	year;
354		-	(2) the amount of additional new capital investment
355		-	raised as of the end of each year, if any; and
356		-	(3) the terms of any liquidity event occurring during
357		-	such year; for the purposes of this Section, a "liquidity
358		-	event" means any event that would be considered an exit
359		-	for an illiquid investment, including any event that
360		-	allows the equity holders of the business (or any material
361		-	portion thereof) to cash out some or all of their
362		-	respective equity interests.
363		-	(Source: P.A. 102-16, eff. 6-17-21; 103-9, eff. 1-1-24.)
	172	+
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	174	+
	175	+
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	177	+	SB3155 Enrolled - 6 - LRB103 37139 HLH 67258 b
	178	+	1 If an investment for which a claimant is allowed a credit
	179	+	2 under subsection (b) is held by the claimant for less than 3
	180	+	3 years, other than as a result of a permitted sale of the
	181	+	4 investment to person who is not a related member, the claimant
	182	+	5 shall pay to the Department of Revenue, in the manner
	183	+	6 prescribed by the Department of Revenue, the aggregate amount
	184	+	7 of the disqualified credits that the claimant received related
	185	+	8 to the subject investment.
	186	+	9 If the Department determines that a qualified new business
	187	+	10 venture failed to maintain a minimum employment threshold in
	188	+	11 the State through the date which is 3 years from the issue date
	189	+	12 of the last tax credit certificate issued by the Department
	190	+	13 with respect to the subject business pursuant to this Section,
	191	+	14 except for any 3-year reporting period that includes March 13,
	192	+	15 2020 to January 1, 2024, the claimant or claimants shall pay to
	193	+	16 the Department of Revenue, in the manner prescribed by the
	194	+	17 Department of Revenue, the aggregate amount of the
	195	+	18 disqualified credits that claimant or claimants received
	196	+	19 related to investments in that business. For tax credits under
	197	+	20 this Section involving a 3-year reporting period that includes
	198	+	21 March 13, 2020 to January 1, 2024, the repayment of any tax
	199	+	22 credits issued shall be determined at the discretion of the
	200	+	23 Department.
	201	+	24 (e) The Department shall implement a program to register
	202	+	25 qualified new business ventures for purposes of this Section.
	203	+	26 A business desiring registration under this Section shall be
	204	+
	205	+
	206	+
	207	+
	208	+
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	210	+
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	214	+	1 required to submit a full and complete application to the
	215	+	2 Department. A submitted application shall be effective only
	216	+	3 for the taxable year in which it is submitted, and a business
	217	+	4 desiring registration under this Section shall be required to
	218	+	5 submit a separate application in and for each taxable year for
	219	+	6 which the business desires registration. Further, if at any
	220	+	7 time prior to the acceptance of an application for
	221	+	8 registration under this Section by the Department one or more
	222	+	9 events occurs which makes the information provided in that
	223	+	10 application materially false or incomplete (in whole or in
	224	+	11 part), the business shall promptly notify the Department of
	225	+	12 the same. Any failure of a business to promptly provide the
	226	+	13 foregoing information to the Department may, at the discretion
	227	+	14 of the Department, result in a revocation of a previously
	228	+	15 approved application for that business, or disqualification of
	229	+	16 the business from future registration under this Section, or
	230	+	17 both. The Department may register the business only if all of
	231	+	18 the following conditions are satisfied:
	232	+	19 (1) it has its principal place of business in this
	233	+	20 State;
	234	+	21 (2) at least 51% of the employees employed by the
	235	+	22 business are employed in this State;
	236	+	23 (3) the business has the potential for increasing jobs
	237	+	24 in this State, increasing capital investment in this
	238	+	25 State, or both, as determined by the Department, and
	239	+	26 either of the following apply:
	240	+
	241	+
	242	+
	243	+
	244	+
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	246	+
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	250	+	1 (A) it is principally engaged in innovation in any
	251	+	2 of the following: manufacturing; biotechnology;
	252	+	3 nanotechnology; communications; agricultural
	253	+	4 sciences; clean energy creation or storage technology;
	254	+	5 processing or assembling products, including medical
	255	+	6 devices, pharmaceuticals, computer software, computer
	256	+	7 hardware, semiconductors, other innovative technology
	257	+	8 products, or other products that are produced using
	258	+	9 manufacturing methods that are enabled by applying
	259	+	10 proprietary technology; or providing services that are
	260	+	11 enabled by applying proprietary technology; or
	261	+	12 (B) it is undertaking pre-commercialization
	262	+	13 activity related to proprietary technology that
	263	+	14 includes conducting research, developing a new product
	264	+	15 or business process, or developing a service that is
	265	+	16 principally reliant on applying proprietary
	266	+	17 technology;
	267	+	18 (4) it is not principally engaged in real estate
	268	+	19 development, insurance, banking, lending, lobbying,
	269	+	20 political consulting, professional services provided by
	270	+	21 attorneys, accountants, business consultants, physicians,
	271	+	22 or health care consultants, wholesale or retail trade,
	272	+	23 leisure, hospitality, transportation, or construction,
	273	+	24 except construction of power production plants that derive
	274	+	25 energy from a renewable energy resource, as defined in
	275	+	26 Section 1 of the Illinois Power Agency Act;
	276	+
	277	+
	278	+
	279	+
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	282	+
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	286	+	1 (5) at the time it is first certified:
	287	+	2 (A) it has fewer than 100 employees;
	288	+	3 (B) it has been in operation in Illinois for not
	289	+	4 more than 10 consecutive years prior to the year of
	290	+	5 certification; and
	291	+	6 (C) it has received not more than $10,000,000 in
	292	+	7 aggregate investments;
	293	+	8 (5.1) it agrees to maintain a minimum employment
	294	+	9 threshold in the State of Illinois prior to the date which
	295	+	10 is 3 years from the issue date of the last tax credit
	296	+	11 certificate issued by the Department with respect to that
	297	+	12 business pursuant to this Section;
	298	+	13 (6) (blank); and
	299	+	14 (7) it has received not more than $4,000,000 in
	300	+	15 investments that qualified for tax credits under this
	301	+	16 Section.
	302	+	17 (f) The Department, in consultation with the Department of
	303	+	18 Revenue, shall adopt rules to administer this Section. For
	304	+	19 taxable years beginning before January 1, 2024, the aggregate
	305	+	20 amount of the tax credits that may be claimed under this
	306	+	21 Section for investments made in qualified new business
	307	+	22 ventures shall be limited to $10,000,000 per calendar year, of
	308	+	23 which $500,000 shall be reserved for investments made in
	309	+	24 qualified new business ventures which are minority-owned
	310	+	25 businesses, women-owned businesses, or businesses owned by a
	311	+	26 person with a disability (as those terms are used and defined
	312	+
	313	+
	314	+
	315	+
	316	+
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	318	+
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	322	+	1 in the Business Enterprise for Minorities, Women, and Persons
	323	+	2 with Disabilities Act), and an additional $500,000 shall be
	324	+	3 reserved for investments made in qualified new business
	325	+	4 ventures with their principal place of business in counties
	326	+	5 with a population of not more than 250,000. For taxable years
	327	+	6 beginning on or after January 1, 2024, the aggregate amount of
	328	+	7 the tax credits that may be claimed under this Section for
	329	+	8 investments made in qualified new business ventures shall be
	330	+	9 limited to $15,000,000 per calendar year, of which $2,500,000
	331	+	10 shall be reserved for investments made in qualified new
	332	+	11 business ventures that are minority-owned businesses (as the
	333	+	12 term is defined in the Business Enterprise for Minorities,
	334	+	13 Women, and Persons with Disabilities Act), $1,250,000 shall be
	335	+	14 reserved for investments made in qualified new business
	336	+	15 ventures that are women-owned businesses or businesses owned
	337	+	16 by a person with a disability (as those terms are defined in
	338	+	17 the Business Enterprise for Minorities, Women, and Persons
	339	+	18 with Disabilities Act), and $1,250,000 shall be reserved for
	340	+	19 investments made in qualified new business ventures with their
	341	+	20 principal place of business in a county with a population of
	342	+	21 not more than 250,000. The annual allowable amounts set forth
	343	+	22 in this Section shall be allocated by the Department, on a per
	344	+	23 calendar quarter basis and prior to the commencement of each
	345	+	24 calendar year, in such proportion as determined by the
	346	+	25 Department, provided that: (i) the amount initially allocated
	347	+	26 by the Department for any one calendar quarter shall not
	348	+
	349	+
	350	+
	351	+
	352	+
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	354	+
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	358	+	1 exceed 35% of the total allowable amount; (ii) any portion of
	359	+	2 the allocated allowable amount remaining unused as of the end
	360	+	3 of any of the first 3 calendar quarters of a given calendar
	361	+	4 year shall be rolled into, and added to, the total allocated
	362	+	5 amount for the next available calendar quarter; and (iii) the
	363	+	6 reservation of tax credits for investments in minority-owned
	364	+	7 businesses, women-owned businesses, businesses owned by a
	365	+	8 person with a disability, and in businesses in counties with a
	366	+	9 population of not more than 250,000 is limited to the first 3
	367	+	10 calendar quarters of a given calendar year, after which they
	368	+	11 may be claimed by investors in any qualified new business
	369	+	12 venture.
	370	+	13 (g) A claimant may not sell or otherwise transfer a credit
	371	+	14 awarded under this Section to another person.
	372	+	15 (h) On or before March 1 of each year, the Department shall
	373	+	16 report to the Governor and to the General Assembly on the tax
	374	+	17 credit certificates awarded under this Section for the prior
	375	+	18 calendar year.
	376	+	19 (1) This report must include, for each tax credit
	377	+	20 certificate awarded:
	378	+	21 (A) the name of the claimant and the amount of
	379	+	22 credit awarded or allocated to that claimant;
	380	+	23 (B) the name and address (including the county) of
	381	+	24 the qualified new business venture that received the
	382	+	25 investment giving rise to the credit, the North
	383	+	26 American Industry Classification System (NAICS) code
	384	+
	385	+
	386	+
	387	+
	388	+
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	390	+
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	394	+	1 applicable to that qualified new business venture, and
	395	+	2 the number of employees of the qualified new business
	396	+	3 venture; and
	397	+	4 (C) the date of approval by the Department of each
	398	+	5 claimant's tax credit certificate.
	399	+	6 (2) The report must also include:
	400	+	7 (A) the total number of applicants and the total
	401	+	8 number of claimants, including the amount of each tax
	402	+	9 credit certificate awarded to a claimant under this
	403	+	10 Section in the prior calendar year;
	404	+	11 (B) the total number of applications from
	405	+	12 businesses seeking registration under this Section,
	406	+	13 the total number of new qualified business ventures
	407	+	14 registered by the Department, and the aggregate amount
	408	+	15 of investment upon which tax credit certificates were
	409	+	16 issued in the prior calendar year; and
	410	+	17 (C) the total amount of tax credit certificates
	411	+	18 sought by applicants, the amount of each tax credit
	412	+	19 certificate issued to a claimant, the aggregate amount
	413	+	20 of all tax credit certificates issued in the prior
	414	+	21 calendar year and the aggregate amount of tax credit
	415	+	22 certificates issued as authorized under this Section
	416	+	23 for all calendar years.
	417	+	24 (i) For each business seeking registration under this
	418	+	25 Section after December 31, 2016, the Department shall require
	419	+	26 the business to include in its application the North American
	420	+
	421	+
	422	+
	423	+
	424	+
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	426	+
	427	+
	428	+	SB3155 Enrolled- 13 -LRB103 37139 HLH 67258 b SB3155 Enrolled - 13 - LRB103 37139 HLH 67258 b
	429	+	SB3155 Enrolled - 13 - LRB103 37139 HLH 67258 b
	430	+	1 Industry Classification System (NAICS) code applicable to the
	431	+	2 business and the number of employees of the business at the
	432	+	3 time of application. Each business registered by the
	433	+	4 Department as a qualified new business venture that receives
	434	+	5 an investment giving rise to the issuance of a tax credit
	435	+	6 certificate pursuant to this Section shall, for each of the 3
	436	+	7 years following the issue date of the last tax credit
	437	+	8 certificate issued by the Department with respect to such
	438	+	9 business pursuant to this Section, report to the Department
	439	+	10 the following:
	440	+	11 (1) the number of employees and the location at which
	441	+	12 those employees are employed, both as of the end of each
	442	+	13 year;
	443	+	14 (2) the amount of additional new capital investment
	444	+	15 raised as of the end of each year, if any; and
	445	+	16 (3) the terms of any liquidity event occurring during
	446	+	17 such year; for the purposes of this Section, a "liquidity
	447	+	18 event" means any event that would be considered an exit
	448	+	19 for an illiquid investment, including any event that
	449	+	20 allows the equity holders of the business (or any material
	450	+	21 portion thereof) to cash out some or all of their
	451	+	22 respective equity interests.
	452	+	23 (Source: P.A. 102-16, eff. 6-17-21; 103-9, eff. 1-1-24.)
	453	+
	454	+
	455	+
	456	+
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