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Illinois House Bill HB2789

Illinois 2025-2026 Regular Session

Illinois House Bill HB2789 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2789 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-905 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new Amends the Property Tax Code. Provides that property certified by the Department of Revenue as mega project property is eligible for an assessment freeze. Provides that, if property is certified as mega project property, then, during the incentive period, the value added to the property by the project shall not be considered for assessment purposes, and the total valuation of the property during the incentive period shall be limited to the base year valuation. Provides that "mega project" means a project that satisfies certain minimum investment, investment period, and other requirements. Contains provisions concerning incentive agreements between a company that plans to undertake a mega project and a local municipality obligating the company to make special payments in addition to property taxes. Effective June 1, 2025. LRB104 06189 HLH 16224 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2789 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-905 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-905 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new Amends the Property Tax Code. Provides that property certified by the Department of Revenue as mega project property is eligible for an assessment freeze. Provides that, if property is certified as mega project property, then, during the incentive period, the value added to the property by the project shall not be considered for assessment purposes, and the total valuation of the property during the incentive period shall be limited to the base year valuation. Provides that "mega project" means a project that satisfies certain minimum investment, investment period, and other requirements. Contains provisions concerning incentive agreements between a company that plans to undertake a mega project and a local municipality obligating the company to make special payments in addition to property taxes. Effective June 1, 2025. LRB104 06189 HLH 16224 b LRB104 06189 HLH 16224 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2789 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED:
33 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-905 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-905 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new
44 35 ILCS 200/Art. 10 Div. 22 heading new
55 35 ILCS 200/10-900 new
66 35 ILCS 200/10-905 new
77 35 ILCS 200/10-910 new
88 35 ILCS 200/10-915 new
99 35 ILCS 200/10-920 new
1010 35 ILCS 200/10-925 new
1111 35 ILCS 200/10-930 new
1212 35 ILCS 200/10-935 new
1313 35 ILCS 200/10-940 new
1414 35 ILCS 200/10-945 new
1515 35 ILCS 200/10-950 new
1616 35 ILCS 200/10-955 new
1717 35 ILCS 200/10-960 new
1818 35 ILCS 200/10-965 new
1919 35 ILCS 200/10-970 new
2020 35 ILCS 200/10-980 new
2121 35 ILCS 200/10-990 new
2222 Amends the Property Tax Code. Provides that property certified by the Department of Revenue as mega project property is eligible for an assessment freeze. Provides that, if property is certified as mega project property, then, during the incentive period, the value added to the property by the project shall not be considered for assessment purposes, and the total valuation of the property during the incentive period shall be limited to the base year valuation. Provides that "mega project" means a project that satisfies certain minimum investment, investment period, and other requirements. Contains provisions concerning incentive agreements between a company that plans to undertake a mega project and a local municipality obligating the company to make special payments in addition to property taxes. Effective June 1, 2025.
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2828 1 AN ACT concerning revenue.
2929 2 Be it enacted by the People of the State of Illinois,
3030 3 represented in the General Assembly:
3131 4 Section 5. The Property Tax Code is amended by adding
3232 5 Division 22 of Article 10 as follows:
3333 6 (35 ILCS 200/Art. 10 Div. 22 heading new)
3434 7 Division 22. Mega project property
3535 8 (35 ILCS 200/10-900 new)
3636 9 Sec. 10-900. Findings. The State's economy is highly
3737 10 vulnerable to other states that have major financial incentive
3838 11 programs and competitive tax incentives. Certain businesses
3939 12 and commercial operations that generate significant economic
4040 13 activity bear a disproportionately high property tax burden
4141 14 compared to their impact on government services and compared
4242 15 to their positive economic benefits to the State and the local
4343 16 economy and their derivative benefits to taxing districts. To
4444 17 incentivize the significant capital investment and economic
4545 18 activity of certain large-scale businesses and industrial and
4646 19 commercial operations, the State finds that a valuation
4747 20 procedure for real property taxes on special properties, known
4848 21 as mega projects, will reduce barriers to investment and
4949 22 promote economic activity in Illinois. The General Assembly
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5353 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2789 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED:
5454 35 ILCS 200/Art. 10 Div. 22 heading new35 ILCS 200/10-900 new35 ILCS 200/10-905 new35 ILCS 200/10-910 new35 ILCS 200/10-915 new35 ILCS 200/10-920 new35 ILCS 200/10-925 new35 ILCS 200/10-930 new35 ILCS 200/10-935 new35 ILCS 200/10-940 new35 ILCS 200/10-945 new35 ILCS 200/10-950 new35 ILCS 200/10-955 new35 ILCS 200/10-960 new35 ILCS 200/10-965 new35 ILCS 200/10-970 new35 ILCS 200/10-980 new35 ILCS 200/10-990 new 35 ILCS 200/Art. 10 Div. 22 heading new 35 ILCS 200/10-900 new 35 ILCS 200/10-905 new 35 ILCS 200/10-910 new 35 ILCS 200/10-915 new 35 ILCS 200/10-920 new 35 ILCS 200/10-925 new 35 ILCS 200/10-930 new 35 ILCS 200/10-935 new 35 ILCS 200/10-940 new 35 ILCS 200/10-945 new 35 ILCS 200/10-950 new 35 ILCS 200/10-955 new 35 ILCS 200/10-960 new 35 ILCS 200/10-965 new 35 ILCS 200/10-970 new 35 ILCS 200/10-980 new 35 ILCS 200/10-990 new
5555 35 ILCS 200/Art. 10 Div. 22 heading new
5656 35 ILCS 200/10-900 new
5757 35 ILCS 200/10-905 new
5858 35 ILCS 200/10-910 new
5959 35 ILCS 200/10-915 new
6060 35 ILCS 200/10-920 new
6161 35 ILCS 200/10-925 new
6262 35 ILCS 200/10-930 new
6363 35 ILCS 200/10-935 new
6464 35 ILCS 200/10-940 new
6565 35 ILCS 200/10-945 new
6666 35 ILCS 200/10-950 new
6767 35 ILCS 200/10-955 new
6868 35 ILCS 200/10-960 new
6969 35 ILCS 200/10-965 new
7070 35 ILCS 200/10-970 new
7171 35 ILCS 200/10-980 new
7272 35 ILCS 200/10-990 new
7373 Amends the Property Tax Code. Provides that property certified by the Department of Revenue as mega project property is eligible for an assessment freeze. Provides that, if property is certified as mega project property, then, during the incentive period, the value added to the property by the project shall not be considered for assessment purposes, and the total valuation of the property during the incentive period shall be limited to the base year valuation. Provides that "mega project" means a project that satisfies certain minimum investment, investment period, and other requirements. Contains provisions concerning incentive agreements between a company that plans to undertake a mega project and a local municipality obligating the company to make special payments in addition to property taxes. Effective June 1, 2025.
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8282 35 ILCS 200/Art. 10 Div. 22 heading new
8383 35 ILCS 200/10-900 new
8484 35 ILCS 200/10-905 new
8585 35 ILCS 200/10-910 new
8686 35 ILCS 200/10-915 new
8787 35 ILCS 200/10-920 new
8888 35 ILCS 200/10-925 new
8989 35 ILCS 200/10-930 new
9090 35 ILCS 200/10-935 new
9191 35 ILCS 200/10-940 new
9292 35 ILCS 200/10-945 new
9393 35 ILCS 200/10-950 new
9494 35 ILCS 200/10-955 new
9595 35 ILCS 200/10-960 new
9696 35 ILCS 200/10-965 new
9797 35 ILCS 200/10-970 new
9898 35 ILCS 200/10-980 new
9999 35 ILCS 200/10-990 new
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118118 1 finds that it is in the best interest of the State to establish
119119 2 a new category of valuation for mega projects that recognizes
120120 3 their complexity and encourages local development at
121121 4 underutilized properties.
122122 5 (35 ILCS 200/10-905 new)
123123 6 Sec. 10-905. Mega Project Assessment Freeze and Payment
124124 7 Law; definitions. This Division 22 may be cited as the Mega
125125 8 Project Assessment Freeze and Payment Law.
126126 9 As used in this Division:
127127 10 "Assessment officer" means the chief county assessment
128128 11 officer of the county in which the mega project is located.
129129 12 "Base year" means the base year identified in the
130130 13 incentive agreement and approved by the local review board
131131 14 pursuant to subsection (b) of Section 10-915.
132132 15 "Base year valuation" means the assessed value, in the
133133 16 base year, of the property comprising the mega project.
134134 17 "Company" means one or more entities whose aggregate
135135 18 investment in the mega project meets the minimum investment
136136 19 required under this Division. The term company shall include a
137137 20 company affiliate unless the context clearly indicates
138138 21 otherwise.
139139 22 "Company affiliate" means an entity that joins with or is
140140 23 an affiliate of a company and that participates in the
141141 24 investment in, or financing of, a mega project.
142142 25 "Department" means the Department of Revenue.
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153153 1 "Eligible costs" means all costs incurred by or on behalf
154154 2 of, or allocated to, a company prior to the Department's
155155 3 issuance of the mega project certificate or during the
156156 4 investment period to create or construct a mega project.
157157 5 "Eligible costs" include costs incurred up to 5 years prior to
158158 6 the date of adoption of the ordinance approving the incentive
159159 7 agreement.
160160 8 "Eligible costs" include, without limitation:
161161 9 (1) the purchase, site preparation, renovation,
162162 10 rehabilitation and construction of land, buildings,
163163 11 structures, equipment and furnishings used for or in the
164164 12 mega project;
165165 13 (2) any goods or services for the mega project that
166166 14 are purchased and capitalized under generally accepted
167167 15 accounting principles, including any organizational costs
168168 16 and research and development costs incurred in Illinois;
169169 17 (3) capitalized lease costs for land, buildings,
170170 18 structures, and equipment valued at their present value
171171 19 using the interest rate at which the company borrows funds
172172 20 prevailing at the time the company entered into the lease;
173173 21 (4) infrastructure development costs;
174174 22 (5) debt service and project financing costs;
175175 23 (6) non-capitalized research and development costs;
176176 24 (7) job training and education costs;
177177 25 (8) lease and relocation costs; and
178178 26 (9) amounts expended by a company or company affiliate
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189189 1 as a non-responsible party pursuant to a voluntary program
190190 2 of site remediation, including amounts expended to obtain
191191 3 a certification of completion, if completion of
192192 4 remediation is required to be certified by the
193193 5 Environmental Protection Agency.
194194 6 "Entity" means a sole proprietorship, partnership, firm,
195195 7 corporation, limited liability company, association, or other
196196 8 business enterprise.
197197 9 "Incentive agreement" means an agreement between a company
198198 10 and a local municipality obligating the company to make the
199199 11 special payment under this Division, in addition to paying
200200 12 property taxes, during the incentive period for a mega
201201 13 project.
202202 14 "Incentive period" means the period beginning on the first
203203 15 day of the calendar year after the calendar year in which the
204204 16 mega project is placed in service and each calendar year
205205 17 thereafter until the earlier of (i) the expiration or
206206 18 termination of the incentive agreement or (ii) the revocation
207207 19 of the mega project certificate.
208208 20 "Investment period" means the period ending 7 years after
209209 21 the date on which the Department issues the mega project
210210 22 certificate, or such other longer period of time as the local
211211 23 municipality and the company may agree to, not to exceed an
212212 24 initial period of 10 years, and subject to extension as
213213 25 provided in Section 10-910 of this Division.
214214 26 "Local municipality" means the city, village, or
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225225 1 incorporated town in which the mega project is located or, if
226226 2 the mega project is located in an unincorporated area, the
227227 3 county in which the mega project is located.
228228 4 "Mega project" means a project that satisfies the minimum
229229 5 investment, investment period, and other requirements of this
230230 6 Division.
231231 7 "Mega project certificate" means a certificate issued by
232232 8 the Department that authorizes an assessment freeze as
233233 9 provided in this Division.
234234 10 "Minimum investment" means an investment in the mega
235235 11 project of at least $500,000,000 in eligible costs within the
236236 12 investment period.
237237 13 "Minority person" means a person who is a citizen or
238238 14 lawful permanent resident of the United States and who is any
239239 15 of the following:
240240 16 (1) American Indian or Alaska Native (a person having
241241 17 origins in any of the original peoples of North and South
242242 18 America, including Central America, and who maintains
243243 19 tribal affiliation or community attachment).
244244 20 (2) Asian (a person having origins in any of the
245245 21 original peoples of the Far East, Southeast Asia, or the
246246 22 Indian subcontinent, including, but not limited to,
247247 23 Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
248248 24 the Philippine Islands, Thailand, and Vietnam).
249249 25 (3) Black or African American (a person having origins
250250 26 in any of the black racial groups of Africa).
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261261 1 (4) Hispanic or Latino (a person of Cuban, Mexican,
262262 2 Puerto Rican, South or Central American, or other Spanish
263263 3 culture or origin, regardless of race).
264264 4 (5) Native Hawaiian or Other Pacific Islander (a
265265 5 person having origins in any of the original peoples of
266266 6 Hawaii, Guam, Samoa, or other Pacific Islands).
267267 7 "Minority-owned business" means a business that is at
268268 8 least 51% owned by one or more minority persons, or in the case
269269 9 of a corporation, at least 51% of the stock of which is owned
270270 10 by one or more minority persons; and the management and daily
271271 11 business operations of which are controlled by one or more of
272272 12 the minority individuals who own it.
273273 13 "Placed in service" means that construction of the mega
274274 14 project is substantially complete, which may be evidenced by
275275 15 issuance of a certificate of occupancy for the mega project by
276276 16 the local municipality or any other governmental body having
277277 17 jurisdiction over construction of the mega project or, if no
278278 18 certificate of occupancy is required as to the mega project,
279279 19 commencement of operations at the mega project site.
280280 20 "Project" means land, buildings, and other improvements on
281281 21 the land, including water, sewage treatment and disposal
282282 22 facilities, air pollution control facilities, and all other
283283 23 machinery, apparatus, equipment, office facilities, related
284284 24 infrastructure, and furnishings which are considered
285285 25 necessary, suitable, or useful by a company and comprise the
286286 26 mega project, including all such property subject to
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297297 1 assessment under the Property Tax Code.
298298 2 "Special payment" means the annual amount paid in addition
299299 3 to property taxes paid during the incentive period as provided
300300 4 in the incentive agreement.
301301 5 "Taxing district" has the meaning set forth in Section
302302 6 1-150.
303303 7 (35 ILCS 200/10-910 new)
304304 8 Sec. 10-910. Valuation during incentive period;
305305 9 eligibility. Property certified by the Department as mega
306306 10 project property pursuant to this Division is eligible for an
307307 11 assessment freeze, as provided in this Division, eliminating
308308 12 from consideration, for assessment purposes during the
309309 13 incentive period, the value added to the property by the
310310 14 project and limiting the total valuation of the property
311311 15 during the incentive period to the base year valuation. If the
312312 16 company does not anticipate completing the project within the
313313 17 investment period, then the local municipality may approve one
314314 18 or more extensions of time to complete the project. However,
315315 19 the local municipality may not extend the investment period
316316 20 for more than 5 years after the last day of the initial term of
317317 21 the investment period. If the extension is not approved as
318318 22 part of the original incentive agreement, the corporate
319319 23 authorities may approve an extension under this Section by
320320 24 resolution, a copy of which must be delivered to the
321321 25 Department within 30 days after the date the resolution is
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332332 1 adopted.
333333 2 (35 ILCS 200/10-915 new)
334334 3 Sec. 10-915. Incentive agreement procedure.
335335 4 (a) To obtain the assessment freeze provided in this
336336 5 Division, the company must enter into an incentive agreement
337337 6 with the local municipality, in the form and manner required
338338 7 by the local municipality. The incentive agreement must be
339339 8 approved by an ordinance adopted by the corporate authorities
340340 9 of the local municipality and must contain all of the
341341 10 provisions required by Section 10-920.
342342 11 (b) The local municipality may not enter into an incentive
343343 12 agreement under this Division unless and until all of the
344344 13 following are considered and approved by a majority of the
345345 14 members of a local review board:
346346 15 (1) the base year;
347347 16 (2) the base year valuation;
348348 17 (3) the amount of the special payment under
349349 18 Section 10-920, including the manner in which the payment
350350 19 will adjust over time; and
351351 20 (4) the manner in which sufficient revenues will
352352 21 be generated and provided, either by the mega project or
353353 22 by alternative sources, to address extraordinary capital
354354 23 needs of the local school districts that will be incurred
355355 24 to meet the demands of students who reside on the subject
356356 25 property and attend a school under the jurisdiction of a
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367367 1 local school district.
368368 2 The local review board shall consist of one representative
369369 3 of each of the following: (i) the local municipality; (ii)
370370 4 each local school district in which the property is located;
371371 5 (iii) each local park district in which the property is
372372 6 located; and (iv) each other taxing district that levy
373373 7 property taxes over any portion of the subject property. The
374374 8 vote of the local review board shall be weighted in proportion
375375 9 to each voting member's district's share of property taxes
376376 10 levied on the portion of the property in question, and each
377377 11 taxing district's vote shall be weighted on a 100-point scale
378378 12 to reflect its proportionate share of the applicable property
379379 13 taxes.
380380 14 (35 ILCS 200/10-920 new)
381381 15 Sec. 10-920. Contents of incentive agreement.
382382 16 (a) The incentive agreement must require the company to
383383 17 pay, or be responsible for the payment of, an annual special
384384 18 payment to the local municipality, beginning with the first
385385 19 tax year for which the assessment freeze under this Division
386386 20 is applied to the mega project. The amount of the special
387387 21 payment shall be established by the local municipality in the
388388 22 incentive agreement and may be a fixed amount for the duration
389389 23 of the incentive period or may be subject to adjustment
390390 24 (downward or upward) based on factors memorialized in the
391391 25 incentive agreement.
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402402 1 (b) The incentive agreement shall obligate the company to
403403 2 operate the mega project at the designated project location
404404 3 for a minimum of 20 years.
405405 4 (c) The incentive agreement may not be effective for a
406406 5 term of less than 23 years nor more than 40 years.
407407 6 (d) The incentive agreement may contain such other terms
408408 7 and conditions as are mutually agreeable to the local
409409 8 municipality and the company and are consistent with the
410410 9 requirements of this Division, including, without limitation,
411411 10 operational and job creation requirements.
412412 11 (e) In addition, all incentive agreements must include, as
413413 12 the first portion of the document, a recapitulation of the
414414 13 remaining contents of the document, including, but not limited
415415 14 to, the following:
416416 15 (1) the legal name of each party to the agreement;
417417 16 (2) the street address of the project and the property
418418 17 subject to the agreement;
419419 18 (3) the agreed minimum investment;
420420 19 (4) the term of the agreement; and
421421 20 (5) a schedule showing the amount of the special
422422 21 payment and its calculation for each year of the
423423 22 agreement.
424424 23 (35 ILCS 200/10-925 new)
425425 24 Sec. 10-925. Installment bills; distribution of special
426426 25 payments.
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437437 1 (a) The local municipality shall prepare a bill for each
438438 2 installment of the special payment according to the schedule
439439 3 set forth in paragraph (5) of subsection (e) of Section
440440 4 10-920, and that payment must be distributed to each of the
441441 5 affected taxing districts in an amount equal to the taxing
442442 6 district's proportionate share of property taxes due and
443443 7 payable for the property, as evidenced by the most recent
444444 8 property tax bill issued for the subject property.
445445 9 (b) Distribution to taxing districts of the special
446446 10 payments associated with a mega project must be made within 60
447447 11 days after receipt by the local municipality of the special
448448 12 payment amounts.
449449 13 (c) Misallocations of the distribution of the special
450450 14 payments may be corrected by adjusting later distributions,
451451 15 but these adjustments must be made in the next succeeding year
452452 16 following identification and resolution of the misallocation.
453453 17 To the extent that distributions have been made improperly in
454454 18 previous years, claims for adjustment must be made within one
455455 19 year of the distribution.
456456 20 (35 ILCS 200/10-930 new)
457457 21 Sec. 10-930. Use of revenues. A taxing district that
458458 22 receives and retains revenues from a special payment under
459459 23 this Division may, in its discretion and in accordance with
460460 24 applicable law, use all or a portion of the revenues for the
461461 25 purposes of financing the issuance of revenue bonds.
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472472 1 (35 ILCS 200/10-935 new)
473473 2 Sec. 10-935. Termination of incentive agreement; automatic
474474 3 termination; minimum level of investment required to remain
475475 4 qualified for assessment freeze.
476476 5 (a) The local municipality and the company may mutually
477477 6 agree to terminate the incentive agreement at any time. From
478478 7 the date of termination, the mega project is subject to
479479 8 assessment on the basis of the then-current fair cash value.
480480 9 (b) An incentive agreement shall be terminated if the
481481 10 company fails to satisfy the minimum investment level provided
482482 11 in this Division. If the incentive agreement is terminated
483483 12 under this subsection, the mega project is subject to
484484 13 assessment on the basis of the then-current fair cash value
485485 14 beginning in the tax year during which the termination occurs.
486486 15 (c) An incentive agreement shall terminate if, at any
487487 16 time, the company no longer has the minimum level of
488488 17 investment as provided in this Division, without regard to
489489 18 depreciation.
490490 19 (35 ILCS 200/10-940 new)
491491 20 Sec. 10-940. Mega project applications; certification as a
492492 21 mega project and revocation of certification.
493493 22 (a) The Department shall receive applications for mega
494494 23 project certificates under this Division in a form and manner
495495 24 provided by the Department by rule. The Department shall
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506506 1 promptly notify the assessment officer when the Department
507507 2 receives an application under this Section. The Department's
508508 3 rules shall provide that an applicant may request preliminary
509509 4 approval of the mega project before the project begins, before
510510 5 the applicant has entered into a fully executed incentive
511511 6 agreement with the local municipality, or before the project
512512 7 has been placed in service.
513513 8 (b) The Department shall approve an application for a mega
514514 9 project certificate if the Department finds that the project
515515 10 meets the requirements of this Division and upon receipt of
516516 11 each of the following:
517517 12 (1) evidence (to be construed broadly) that the
518518 13 company has invested, or will invest, not less than the
519519 14 minimum investment in the mega project during the
520520 15 investment period;
521521 16 (2) an executed incentive agreement with the local
522522 17 municipality for the mega project, as described in this
523523 18 Section 10-920 of this Division;
524524 19 (3) an executed project labor agreement between the
525525 20 company and the applicable local building trades council
526526 21 for construction of the mega project; and
527527 22 (4) evidence that the company has established the goal
528528 23 of awarding, and has awarded or will award, 20% of the
529529 24 total dollar amount of contracts that are related to the
530530 25 project during each calendar year to minority-owned
531531 26 businesses.
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542542 1 (c) Upon approval of the application, the Department shall
543543 2 issue a mega project certificate to the applicant and transmit
544544 3 a copy to the assessment officer. The certificate shall
545545 4 identify the property on which the mega project is located.
546546 5 (d) For each calendar year following issuance of the mega
547547 6 project certificate, until the minimum investment requirements
548548 7 have been met and the mega project has been placed in service,
549549 8 the company shall deliver a report to the Department on the
550550 9 status of construction or creation of the mega project and the
551551 10 amount of minimum investment made in the mega project during
552552 11 the preceding calendar year. If the Department determines, in
553553 12 accordance with the Administrative Review Law and the Illinois
554554 13 Administrative Procedure Act, that a project for which a
555555 14 certificate has been issued has not met the minimum investment
556556 15 requirements of this Division within the investment period,
557557 16 the Department shall revoke the certificate by written notice
558558 17 to the taxpayer of record and transmit a copy of the revocation
559559 18 to the assessment officer.
560560 19 (e) If the local municipality notifies the Department that
561561 20 the incentive agreement between the company and the local
562562 21 municipality has been terminated, the Department shall revoke
563563 22 the certificate by written notice to the taxpayer of record
564564 23 and transmit a copy of the revocation to the assessment
565565 24 officer.
566566 25 (35 ILCS 200/10-945 new)
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577577 1 Sec. 10-945. Computation of valuation.
578578 2 (a) Upon receipt of the mega project certificate from the
579579 3 Department, the assessment officer shall determine the base
580580 4 year valuation and shall make a notation on each statement of
581581 5 assessment during the incentive period that the valuation of
582582 6 the project is based upon the issuance of a mega project
583583 7 certificate.
584584 8 (b) Upon revocation of a mega project certificate, the
585585 9 assessment officer shall compute the assessed valuation of the
586586 10 project on the basis of the then-current fair cash value of the
587587 11 property.
588588 12 (35 ILCS 200/10-950 new)
589589 13 Sec. 10-950. Transfers of interest in a mega project;
590590 14 sale-leaseback arrangement; requirements.
591591 15 (a) Subject to the terms of the incentive agreement
592592 16 between the company and the local municipality, ownership of
593593 17 or any interest in the mega project and any and all related
594594 18 project property, including, without limitation, transfers of
595595 19 indirect beneficial interests and equity interests in a
596596 20 company owning a mega project, shall not affect the assessment
597597 21 freeze or the validity of the mega project certificate issued
598598 22 under this Division. Notwithstanding the provisions of this
599599 23 subsection, the incentive agreement shall be a covenant
600600 24 running with the land.
601601 25 (b) A company may enter into lending, financing, security,
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612612 1 leasing, or similar arrangements, or a succession of such
613613 2 arrangements, with a financing entity concerning all or part
614614 3 of a project including, without limitation, a sale-leaseback
615615 4 arrangement, equipment lease, build-to-suit lease, synthetic
616616 5 lease, nordic lease, defeased tax benefit, or transfer lease,
617617 6 an assignment, sublease, or similar arrangement, or succession
618618 7 of those arrangements, with one or more financing entities
619619 8 concerning all or part of a project, regardless of the
620620 9 identity of the income tax or fee owner of the mega project.
621621 10 Neither the original transfer to the financing entity nor the
622622 11 later transfer from the financing entity back to the company,
623623 12 pursuant to terms in the sale-leaseback agreement, shall
624624 13 affect the assessment freeze or the validity of the mega
625625 14 project certificate issued under this Division, regardless of
626626 15 whether the income tax basis is changed for income tax
627627 16 purposes. For purposes of this Division, if a single company
628628 17 enters into a financing arrangement of the type described in
629629 18 this subsection (b), the investment in or financing of the
630630 19 property by a developer, lessor, financing entity, or other
631631 20 third party in accordance with this arrangement is considered
632632 21 investment by the company. Investment by a related person to
633633 22 the company is considered investment by the company.
634634 23 (c) The Department must receive notice of all transfers
635635 24 undertaken with respect to other projects to effect a
636636 25 financing. Notice shall be made in writing within 60 days
637637 26 after the transfer, identifying each transferee and containing
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648648 1 other information required by the Department with the
649649 2 appropriate returns. Failure to meet this notice requirement
650650 3 does not adversely affect the assessment freeze.
651651 4 (35 ILCS 200/10-955 new)
652652 5 Sec. 10-955. Minimum investment by company affiliates. To
653653 6 be eligible for the benefits of this Division, a company must
654654 7 invest the minimum investment. Investments by company
655655 8 affiliates during the investment period may be applied toward
656656 9 the minimum investment under this Division regardless of
657657 10 whether the company affiliate was part of the project. To
658658 11 qualify for the assessment freeze, the minimum investments
659659 12 pursuant must be at the mega project.
660660 13 (35 ILCS 200/10-960 new)
661661 14 Sec. 10-960. Projects to be valued at fair cash value for
662662 15 purposes of bonded indebtedness and limitations on property
663663 16 tax extensions. Projects to which an assessment freeze applies
664664 17 pursuant to this Division shall be valued at their fair cash
665665 18 value for purposes of calculating a municipality's general
666666 19 obligation bond limits and a taxing district's limitation on
667667 20 tax extensions.
668668 21 (35 ILCS 200/10-965 new)
669669 22 Sec. 10-965. Abatements. Any taxing district, upon a
670670 23 majority vote of its governing authority, may, after the
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681681 1 determination of the assessed valuation as set forth in this
682682 2 Division, order the clerk of the appropriate municipality or
683683 3 county to abate any portion of real property taxes otherwise
684684 4 levied or extended by the taxing district on a mega project.
685685 5 (35 ILCS 200/10-970 new)
686686 6 Sec. 10-970. Filing of returns, contracts, and other
687687 7 information; due date of payments and returns.
688688 8 (a) The company and the local municipality shall file
689689 9 notices, reports, and other information as required by the
690690 10 Department.
691691 11 (b) Special payments are due at the same time as property
692692 12 tax payments and property tax returns are due for the mega
693693 13 project property.
694694 14 (c) Failure to make a timely special payment results in
695695 15 the assessment of penalties as if the payment were a
696696 16 delinquent property tax payment or return.
697697 17 (d) Within 30 days after the date of execution of an
698698 18 incentive agreement, a copy of the incentive agreement must be
699699 19 filed with the Department, the county assessor, and the county
700700 20 auditor for the county in which the mega project is located.
701701 21 (35 ILCS 200/10-980 new)
702702 22 Sec. 10-980. Rules. The Department may issue rulings and
703703 23 adopt rules as necessary to carry out the purpose of this
704704 24 Division.
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715715 1 (35 ILCS 200/10-990 new)
716716 2 Sec. 10-990. Invalidity. If all or any part of this
717717 3 Division is determined to be unconstitutional or otherwise
718718 4 unenforceable by a court of competent jurisdiction, a company
719719 5 has 180 days from the date of the determination to transfer
720720 6 title to a mega project to an authorized economic development
721721 7 authority, which may qualify for property tax assessment under
722722 8 this Division or which may be exempt from property taxes.
723723 9 Section 97. Severability. The provisions of this Act are
724724 10 severable under Section 1.31 of the Statute on Statutes.
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