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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as
6follows:
 
7    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
8    Sec. 3. Definitions. As used in this Act, the following
9words shall have the meanings ascribed to them, unless the
10context otherwise requires:
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Enterprise Zone" means an area of the State certified
14by the Department as an Enterprise Zone pursuant to this Act.
15    (c) "Depressed Area" means an area in which pervasive
16poverty, unemployment and economic distress exist.
17    (d) "Designated Zone Organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the Enterprise Zone; (2) the board of directors of
20which is elected by the members of the organization; (3) which
21satisfies the criteria set forth in Section 501(c) (3) or
22501(c) (4) of the Internal Revenue Code; and (4) which exists
23primarily for the purpose of performing within such area or

 

 

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1zone for the benefit of the residents and businesses thereof
2any of the functions set forth in Section 8 of this Act.
3    (e) "Agency" means each officer, board, commission and
4agency created by the Constitution, in the executive branch of
5State government, other than the State Board of Elections; each
6officer, department, board, commission, agency, institution,
7authority, university, body politic and corporate of the State;
8and each administrative unit or corporate outgrowth of the
9State government which is created by or pursuant to statute,
10other than units of local government and their officers, school
11districts and boards of election commissioners; each
12administrative unit or corporate outgrowth of the above and as
13may be created by executive order of the Governor. No entity
14shall be considered an "agency" for the purposes of this Act
15unless authorized by law to make rules or regulations.
16    (f) "Rule" means each agency statement of general
17applicability that implements, applies, interprets or
18prescribes law or policy, but does not include (i) statements
19concerning only the internal management of an agency and not
20affecting private rights or procedures available to persons or
21entities outside the agency, (ii) intra-agency memoranda, or
22(iii) the prescription of standardized forms.
23    (g) "Board" means the Enterprise Zone Board created in
24Section 5.2.1.
25    (h) "Local labor market area" means an economically
26integrated area within which individuals can reside and find

 

 

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1employment within a reasonable distance or can readily change
2jobs without changing their place of residence.
3    (i) "Full-time equivalent job" means a job in which the new
4employee works for the recipient or for a corporation under
5contract to the recipient at a rate of at least 35 hours per
6week. A recipient who employs labor or services at a specific
7site or facility under contract with another may declare one
8full-time, permanent job for every 1,820 man hours worked per
9year under that contract. Vacations, paid holidays, and sick
10time are included in this computation. Overtime is not
11considered a part of regular hours.
12    (j) "Full-time retained job" means any employee defined as
13having a full-time or full-time equivalent job preserved at a
14specific facility or site, the continuance of which is
15threatened by a specific and demonstrable threat, which shall
16be specified in the application for development assistance. A
17recipient who employs labor or services at a specific site or
18facility under contract with another may declare one retained
19employee per year for every 1,750 man hours worked per year
20under that contract, even if different individuals perform
21on-site labor or services.
22(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
23    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)
24    Sec. 4. Qualifications for Enterprise Zones.
25    (1) An area is qualified to become an enterprise zone

 

 

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1which:
2        (a) is a contiguous area, provided that a zone area may
3    exclude wholly surrounded territory within its boundaries;
4        (b) comprises a minimum of one-half square mile and not
5    more than 12 square miles, or 15 square miles if the zone
6    is located within the jurisdiction of 4 or more counties or
7    municipalities, in total area, exclusive of lakes and
8    waterways; however, in such cases where the enterprise zone
9    is a joint effort of three or more units of government, or
10    two or more units of government if situated in a township
11    which is divided by a municipality of 1,000,000 or more
12    inhabitants, and where the certification has been in effect
13    at least one year, the total area shall comprise a minimum
14    of one-half square mile and not more than thirteen square
15    miles in total area exclusive of lakes and waterways;
16        (c) (blank);
17        (d) (blank);
18        (e) is (1) entirely within a municipality or (2)
19    entirely within the unincorporated areas of a county,
20    except where reasonable need is established for such zone
21    to cover portions of more than one municipality or county
22    or (3) both comprises (i) all or part of a municipality and
23    (ii) an unincorporated area of a county; and
24        (f) meets 3 or more of the following criteria:
25            (1) all or part of the local labor market area has
26        had an annual average unemployment rate of at least

 

 

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1        120% of the State's annual average unemployment rate
2        for the most recent calendar year or the most recent
3        fiscal year as reported by the Department of Employment
4        Security;
5            (2) designation will result in the development of
6        substantial employment opportunities by creating or
7        retaining a minimum aggregate of 1,000 full-time
8        equivalent jobs due to an aggregate investment of
9        $100,000,000 or more, and will help alleviate the
10        effects of poverty and unemployment within the local
11        labor market area;
12            (3) at least one of the following applies to the
13        local labor market area: (A) all or part of the local
14        labor market area has a poverty rate of at least 20%
15        according to the latest federal decennial census, the
16        most recent American Community Survey released by the
17        U.S. Census Bureau, or other appropriate data source
18        produced by the U.S. Census Bureau; (B) 50% or more of
19        children in the local labor market area are eligible to
20        participate in the federal free lunch or reduced-price
21        meals program according to reported statistics from
22        the State Board of Education; , or (C) 20% or more
23        households in the local labor market area receive food
24        stamps or assistance under the Supplemental Nutrition
25        Assistance Program ("SNAP") according to the latest
26        federal decennial census or other data from the U.S.

 

 

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1        Census Bureau;
2            (4) an abandoned coal mine or a brownfield (as
3        defined in Section 58.2 of the Environmental
4        Protection Act) is located in the proposed zone area,
5        or all or a portion of the proposed zone was declared a
6        federal disaster area in the 3 years preceding the date
7        of application;
8            (5) the local labor market area contains a presence
9        of large employers that have downsized over the years,
10        the labor market area has experienced plant closures in
11        the 5 years prior to the date of application affecting
12        more than 50 workers, or the local labor market area
13        has experienced State or federal facility closures in
14        the 5 years prior to the date of application affecting
15        more than 50 workers;
16            (6) based on data from Multiple Listing Service
17        information or other suitable sources, the local labor
18        market area contains a high floor vacancy rate of
19        industrial or commercial properties, vacant or
20        demolished commercial and industrial structures are
21        prevalent in the local labor market area, or industrial
22        structures in the local labor market area are not used
23        because of age, deterioration, relocation of the
24        former occupants, or cessation of operation;
25            (7) the applicant demonstrates a substantial plan
26        for using the designation to improve the State and

 

 

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1        local government tax base, including income, sales,
2        and property taxes, including a plan for disposal of
3        publicly-owned real property by the methods described
4        in Section 10 of this Act;
5            (8) significant public infrastructure is present
6        in the local labor market area in addition to a plan
7        for infrastructure development and improvement;
8            (9) high schools or community colleges located
9        within the local labor market area are engaged in ACT
10        Work Keys, Manufacturing Skills Standard
11        Certification, or other industry-based credentials
12        that prepare students for careers; or
13            (10) (blank). the change in equalized assessed
14        valuation of industrial and/or commercial properties
15        in the 5 years prior to the date of application is
16        equal to or less than 50% of the State average change
17        in equalized assessed valuation for industrial and/or
18        commercial properties, as applicable, for the same
19        period of time.
20    As provided in Section 10-5.3 of the River Edge
21Redevelopment Zone Act, upon the expiration of the term of each
22River Edge Redevelopment Zone in existence on the effective
23date of this amendatory Act of the 97th General Assembly, that
24River Edge Redevelopment Zone will become available for its
25previous designee or a new applicant to compete for designation
26as an enterprise zone. No preference for designation will be

 

 

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1given to the previous designee of the zone.
2    (2) Any criteria established by the Department or by law
3which utilize the rate of unemployment for a particular area
4shall provide that all persons who are not presently employed
5and have exhausted all unemployment benefits shall be
6considered unemployed, whether or not such persons are actively
7seeking employment.
8(Source: P.A. 97-905, eff. 8-7-12.)
 
9    (20 ILCS 655/4.1)
10    Sec. 4.1. Department recommendations.
11    (a) For all applications that qualify under Section 4 of
12this Act, the Department shall issue recommendations by
13assigning a score to each applicant. The scores will be
14determined by the Department, based on the extent to which an
15applicant meets the criteria points under subsection (f) of
16Section 4 of this Act. Scores will be determined using the
17following scoring system:
18        (1) Up to 50 points for the extent to which the
19    applicant meets or exceeds the criteria in item (1) of
20    subsection (f) of Section 4 of this Act, with points
21    awarded according to the severity of the unemployment.
22        (2) Up to 50 points for the extent to which the
23    applicant meets or exceeds the criteria in item (2) of
24    subsection (f) of Section 4 of this Act, with points
25    awarded in accordance with the number of jobs created and

 

 

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1    the aggregate amount of investment promised. The
2    Department may award partial points on a pro rata basis
3    under this paragraph (2) if the applicant demonstrates
4    specific job creation and investment below the thresholds
5    set forth in paragraph (2) of subsection (f) of Section 4.
6        (3) Up to 40 points for the extent to which the
7    applicant meets or exceeds the criteria in item (3) of
8    subsection (f) of Section 4 of this Act, with points
9    awarded in accordance with the severity of the unemployment
10    rate according to the latest federal decennial census.
11        (4) Up to 30 points for the extent to which the
12    applicant meets or exceeds the criteria in item (4) of
13    subsection (f) of Section 4 of this Act, with points
14    awarded in accordance with the severity of the
15    environmental impact of the abandoned coal mine,
16    brownfield, or federal disaster area.
17        (5) Up to 50 points for the extent to which the
18    applicant meets or exceeds the criteria in item (5) of
19    subsection (f) of Section 4 of this Act, with points
20    awarded in accordance with the severity of the applicable
21    facility closures or downsizing.
22        (6) Up to 40 points for the extent to which the
23    applicant meets or exceeds the criteria in item (6) of
24    subsection (f) of Section 4 of this Act, with points
25    awarded in accordance with the severity and extent of the
26    high floor vacancy or deterioration.

 

 

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1        (7) Up to 30 points for the extent to which the
2    applicant meets or exceeds the criteria in item (7) of
3    subsection (f) of Section 4 of this Act, with points
4    awarded in accordance with the extent to which the
5    application addresses a plan to improve the State and local
6    government tax base, including a plan for disposal of
7    publicly-owned real property.
8        (8) Up to 50 points for the extent to which the
9    applicant meets or exceeds the criteria in item (8) of
10    subsection (f) of Section 4 of this Act, with points
11    awarded in accordance with the existence of significant
12    public infrastructure.
13        (9) Up to 40 points for the extent to which the
14    applicant meets or exceeds the criteria in item (9) of
15    subsection (f) of Section 4 of this Act, with points
16    awarded in accordance with the extent to which educational
17    programs exist for career preparation.
18        (10) (Blank). Up to 40 points for the extent to which
19    the applicant meets or exceeds the criteria in item (10) of
20    subsection (f) of Section 4 of this Act, with points
21    awarded according to the severity of the change in
22    equalized assessed valuation.
23        (11) In awarding points under paragraphs (1) through
24    (9), the Department may adjust the scoring for applicants
25    that are located entirely within a county with a population
26    of less than 300,000 if the Department finds that the

 

 

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1    designation will help to alleviate the effects of poverty
2    and unemployment within the proposed Enterprise Zone.
3    (b) After assigning a score for each of the individual
4criteria using the point system as described in subsection (a),
5the Department shall then take the sum of the scores for each
6applicant and assign a final score. The Department shall then
7submit this information to the Board, as required in subsection
8(c) of Section 5.2, as its recommendation.
9(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
10    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
11    Sec. 5.1. Application to Department.
12    (a) A county or municipality which has adopted an ordinance
13designating an area as an enterprise zone shall make written
14application to the Department to have such proposed enterprise
15zone certified by the Department as an Enterprise Zone. The
16application shall include:
17        (i) a certified copy of the ordinance designating the
18    proposed zone;
19        (ii) a map of the proposed enterprise zone, showing
20    existing streets and highways;
21        (iii) an analysis, and any appropriate supporting
22    documents and statistics, demonstrating that the proposed
23    zone area is qualified in accordance with Section 4;
24        (iv) a statement detailing any tax, grant, and other
25    financial incentives or benefits, and any programs, to be

 

 

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1    provided by the municipality or county to business
2    enterprises within the zone, other than those provided in
3    the designating ordinance, which are not to be provided
4    throughout the municipality or county;
5        (v) a statement setting forth the economic development
6    and planning objectives for the zone;
7        (vi) a statement describing the functions, programs,
8    and services to be performed by designated zone
9    organizations within the zone;
10        (vii) an estimate of the economic impact of the zone,
11    considering all of the tax incentives, financial benefits
12    and programs contemplated, upon the revenues of the
13    municipality or county;
14        (viii) a transcript of all public hearings on the zone;
15        (ix) in the case of a joint application, a statement
16    detailing the need for a zone covering portions of more
17    than one municipality or county and a description of the
18    agreement between joint applicants; and
19        (x) such additional information as the Department by
20    regulation may require.
21    (b) The Department may provide for provisional
22certification of substantially complete applications pending
23the receipt of any of the items identified in subsection (a) of
24this Section or any additional information requested by the
25Department.
26(Source: P.A. 82-1019.)
 

 

 

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1    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
2    Sec. 5.2. Department Review of Enterprise Zone
3Applications.
4    (a) All applications which are to be considered and acted
5upon by the Department during a calendar year must be received
6by the Department no later than December 31 of the preceding
7calendar year.
8    Any application received after December 31 of any calendar
9year shall be held by the Department for consideration and
10action during the following calendar year.
11    Each enterprise zone application shall include a specific
12definition of the applicant's local labor market area.
13    (a-5) The Department shall, no later than July 31, 2013,
14develop an application process for an enterprise zone
15application. The Department has emergency rulemaking authority
16for the purpose of application development only until 12 months
17after the effective date of this amendatory Act of the 97th
18General Assembly.
19    (b) Upon receipt of an application from a county or
20municipality the Department shall review the application to
21determine whether the designated area qualifies as an
22enterprise zone under Section 4 of this Act.
23    (c) No later than June 30, the Department shall notify all
24applicant municipalities and counties of the Department's
25determination of the qualification of their respective

 

 

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1designated enterprise zone areas, and shall send qualifying
2applications, including the applicant's scores for each of the
3items set forth in items (1) through (10) of subsection (a) of
4Section 4.1 and the applicant's final score under that Section,
5to the Board for the Board's consideration, along with
6supporting documentation of the basis for the Department's
7decision.
8    (d) If any such designated area is found to be qualified to
9be an enterprise zone by the Department under subsection (c) of
10this Section, the Department shall, no later than July 15, send
11a letter of notification to each member of the General Assembly
12whose legislative district or representative district contains
13all or part of the designated area and publish a notice in at
14least one newspaper of general circulation within the proposed
15zone area to notify the general public of the application and
16their opportunity to comment. Such notice shall include a
17description of the area and a brief summary of the application
18and shall indicate locations where the applicant has provided
19copies of the application for public inspection. The notice
20shall also indicate appropriate procedures for the filing of
21written comments from zone residents, business, civic and other
22organizations and property owners to the Department. The
23Department and the Board may consider written comments
24submitted pursuant to this Section or any other information
25regarding a pending enterprise zone application submitted
26after the deadline for enterprise zone application and received

 

 

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1prior to the Board's decision on all pending applications.
2    (e) (Blank).
3    (f) (Blank).
4    (g) (Blank).
5    (h) (Blank).
6(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
7    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
8    Sec. 5.3. Certification of Enterprise Zones; effective
9date.
10    (a) Certification of Board-approved designated Enterprise
11Zones shall be made by the Department by certification of the
12designating ordinance. The Department shall promptly issue a
13certificate for each Enterprise Zone upon approval by the
14Board. The certificate shall be signed by the Director of the
15Department, shall make specific reference to the designating
16ordinance, which shall be attached thereto, and shall be filed
17in the office of the Secretary of State. A certified copy of
18the Enterprise Zone Certificate, or a duplicate original
19thereof, shall be recorded in the office of recorder of deeds
20of the county in which the Enterprise Zone lies.
21    (b) An Enterprise Zone certified prior to January 1, 2016
22or on or after January 1, 2017 shall be effective on January 1
23of the first calendar year after Department certification. An
24Enterprise Zone certified on or after January 1, 2016 and on or
25before December 31, 2016 shall be effective on the date of the

 

 

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1Department's certification. The Department shall transmit a
2copy of the certification to the Department of Revenue, and to
3the designating municipality or county.
4    Upon certification of an Enterprise Zone, the terms and
5provisions of the designating ordinance shall be in effect, and
6may not be amended or repealed except in accordance with
7Section 5.4.
8    (c) With the exception of Enterprise Zones scheduled to
9expire before December 31, 2018, an Enterprise Zone designated
10before the effective date of this amendatory Act of the 97th
11General Assembly shall be in effect for 30 calendar years, or
12for a lesser number of years specified in the certified
13designating ordinance. Notwithstanding the foregoing, any
14Enterprise Zone in existence on the effective date of this
15amendatory Act of the 98th General Assembly that has a term of
1620 calendar years may be extended for an additional 10 calendar
17years upon amendment of the designating ordinance by the
18designating municipality or county and submission of the
19ordinance to the Department. The amended ordinance must be
20properly recorded in the Office of Recorder of Deeds of each
21county in which the Enterprise Zone lies. Each Enterprise Zone
22in existence on the effective date of this amendatory Act of
23the 97th General Assembly that is scheduled to expire before
24July 1, 2016 may have its termination date extended until July
251, 2016 upon amendment of the designating ordinance by the
26designating municipality or county extending the termination

 

 

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1date to July 1, 2016 and submission of the ordinance to the
2Department. The amended ordinance must be properly recorded in
3the Office of Recorder of Deeds of each county in which the
4Enterprise Zone lies. An Enterprise Zone designated on or after
5the effective date of this amendatory Act of the 97th General
6Assembly shall be in effect for a term of 15 calendar years, or
7for a lesser number of years specified in the certified
8designating ordinance. An enterprise zone designated on or
9after the effective date of this amendatory Act of the 97th
10General Assembly shall be subject to review by the Board after
1113 years for an additional 10-year designation beginning on the
12expiration date of the enterprise zone. During the review
13process, the Board shall consider the costs incurred by the
14State and units of local government as a result of tax benefits
15received by the enterprise zone as well as whether the Zone has
16substantially implemented the plans and achieved the goals set
17forth in its original application, including satisfaction of
18the investment and job creation or retention information
19provided by the Applicant with respect to paragraph (f) of
20subsection (1) of Section 4 of the Act. Enterprise Zones shall
21terminate at midnight of December 31 of the final calendar year
22of the certified term, except as provided in Section 5.4.
23    (d) Except for Enterprise Zones authorized under
24subsection (f), Zones that become available for designation
25pursuant to Section 10-5.3 of the River Edge Redevelopment Zone
26Act, or those designated pursuant to another statutory

 

 

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1authority providing for the creation of Enterprise Zones, no No
2more than a total of 97 12 Enterprise Zones may be certified by
3the Department and in existence in any calendar year 1984, no
4more than 12 Enterprise Zones may be certified by the
5Department in calendar year 1985, no more than 13 Enterprise
6Zones may be certified by the Department in calendar year 1986,
7no more than 15 Enterprise Zones may be certified by the
8Department in calendar year 1987, and no more than 20
9Enterprise Zones may be certified by the Department in calendar
10year 1990. In other calendar years, no more than 13 Enterprise
11Zones may be certified by the Department. The Department may
12also designate up to 8 additional Enterprise Zones outside the
13regular application cycle if warranted by the extreme economic
14circumstances as determined by the Department. The Department
15may also designate one additional Enterprise Zone outside the
16regular application cycle if an aircraft manufacturer agrees to
17locate an aircraft manufacturing facility in the proposed
18Enterprise Zone. Notwithstanding any other provision of this
19Act, no more than 89 Enterprise Zones may be certified by the
20Department for the 10 calendar years commencing with 1983. The
217 additional Enterprise Zones authorized by Public Act 86-15
22shall not lie within municipalities or unincorporated areas of
23counties that abut or are contiguous to Enterprise Zones
24certified pursuant to this Section prior to June 30, 1989. The
257 additional Enterprise Zones (excluding the additional
26Enterprise Zone which may be designated outside the regular

 

 

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1application cycle) authorized by Public Act 86-1030 shall not
2lie within municipalities or unincorporated areas of counties
3that abut or are contiguous to Enterprise Zones certified
4pursuant to this Section prior to February 28, 1990. Beginning
5in calendar year 2004 and until December 31, 2008, one
6additional enterprise zone may be certified by the Department.
7In any calendar year, the Department may not certify more than
83 Zones located within the same municipality. The Department
9may certify Enterprise Zones in each of the 10 calendar years
10commencing with 1983. The Department may not certify more than
11a total of 18 Enterprise Zones located within the same county
12(whether within municipalities or within unincorporated
13territory) for the 10 calendar years commencing with 1983.
14Thereafter, the Department may not certify any additional
15Enterprise Zones, but may amend and rescind certifications of
16existing Enterprise Zones in accordance with Section 5.4.
17Beginning in calendar year 2019 and for any year in which there
18are at least 4 Zones available for designation, at least 25% of
19Zones available for designation in a given calendar year must
20be awarded to Zones located in counties with populations of
21less than 300,000 unless there are no applicants from such
22locations for that calendar year.
23    (e) Notwithstanding any other provision of law, if (i) the
24county board of any county in which a current military base is
25located, in part or in whole, or in which a military base that
26has been closed within 20 years of the effective date of this

 

 

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1amendatory Act of 1998 is located, in part or in whole, adopts
2a designating ordinance in accordance with Section 5 of this
3Act to designate the military base in that county as an
4enterprise zone and (ii) the property otherwise meets the
5qualifications for an enterprise zone as prescribed in Section
64 of this Act, then the Department may certify the designating
7ordinance or ordinances, as the case may be.
8    (f) Applications for Enterprise Zones that are scheduled to
9expire in 2016, including Enterprise Zones that have been
10extended until 2016 by this amendatory Act of the 97th General
11Assembly, shall be submitted to the Department no later than
12December 31, 2014. At that time, the Zone becomes available for
13either the previously designated area or a different area to
14compete for designation. No preference for designation as a
15Zone will be given to the previously designated area.
16    For Enterprise Zones that are scheduled to expire on or
17after January 1, 2017 and prior to January 1, 2022, an
18application process shall begin 2 years prior to the year in
19which the Zone expires. At that time, the Zone becomes
20available for either the previously designated area or a
21different area to compete for designation. For Enterprise Zones
22that are scheduled to expire on or after January 1, 2022, an
23application process shall begin 5 years prior to the year in
24which the Zone expires. At that time, the Zone becomes
25available for either the previously designated area or a
26different area to compete for designation. No preference for

 

 

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1designation as a Zone will be given to the previously
2designated area.
3    Each Enterprise Zone that reapplies for certification but
4does not receive a new certification shall expire on its
5scheduled termination date.
6(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
7    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
8    Sec. 5.4. Amendment and Decertification of Enterprise
9Zones.
10    (a) The terms of a certified enterprise zone designating
11ordinance may be amended to
12        (i) alter the boundaries of the Enterprise Zone, or
13        (ii) expand, limit or repeal tax incentives or benefits
14    provided in the ordinance, or
15        (iii) alter the termination date of the zone, or
16        (iv) make technical corrections in the enterprise zone
17    designating ordinance; but such amendment shall not be
18    effective unless the Department issues an amended
19    certificate for the Enterprise Zone, approving the amended
20    designating ordinance. Upon the adoption of any ordinance
21    amending or repealing the terms of a certified enterprise
22    zone designating ordinance, the municipality or county
23    shall promptly file with the Department an application for
24    approval thereof, containing substantially the same
25    information as required for an application under Section

 

 

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1    5.1 insofar as material to the proposed changes. The
2    municipality or county must hold a public hearing on the
3    proposed changes as specified in Section 5 and, if the
4    amendment is to effectuate the limitation of tax abatements
5    under Section 5.4.1, then the public notice of the hearing
6    shall state that property that is in both the enterprise
7    zone and a redevelopment project area may not receive tax
8    abatements unless within 60 days after the adoption of the
9    amendment to the designating ordinance the municipality
10    has determined that eligibility for tax abatements has been
11    established,
12        (v) include an area within another municipality or
13    county as part of the designated enterprise zone provided
14    the requirements of Section 4 are complied with, or
15        (vi) effectuate the limitation of tax abatements under
16    Section 5.4.1.
17    (b) The Department shall approve or disapprove a proposed
18amendment to a certified enterprise zone within 90 days of its
19receipt of the application from the municipality or county. The
20Department may not approve changes in a Zone which are not in
21conformity with this Act, as now or hereafter amended, or with
22other applicable laws. If the Department issues an amended
23certificate for an Enterprise Zone, the amended certificate,
24together with the amended zone designating ordinance, shall be
25filed, recorded and transmitted as provided in Section 5.3.
26    (c) An Enterprise Zone may be decertified by joint action

 

 

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1of the Department and the designating county or municipality in
2accordance with this Section. The designating county or
3municipality shall conduct at least one public hearing within
4the zone prior to its adoption of an ordinance of
5de-designation. The mayor of the designating municipality or
6the chairman of the county board of the designating county
7shall execute a joint decertification agreement with the
8Department. A decertification of an Enterprise Zone shall not
9become effective until at least 6 months after the execution of
10the decertification agreement, which shall be filed in the
11office of the Secretary of State.
12    (d) An Enterprise Zone may be decertified for cause by the
13Department in accordance with this Section. Prior to
14decertification: (1) the Department shall notify the chief
15elected official of the designating county or municipality in
16writing of the specific deficiencies which provide cause for
17decertification; (2) the Department shall place the
18designating county or municipality on probationary status for
19at least 6 months during which time corrective action may be
20achieved in the enterprise zone by the designating county or
21municipality; and, (3) the Department shall conduct at least
22one public hearing within the zone. If such corrective action
23is not achieved during the probationary period, the Department
24shall issue an amended certificate signed by the Director of
25the Department decertifying the enterprise zone, which
26certificate shall be filed in the office of the Secretary of

 

 

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1State. A certified copy of the amended enterprise zone
2certificate, or a duplicate original thereof, shall be recorded
3in the office of recorder of the county in which the enterprise
4zone lies, and shall be provided to the chief elected official
5of the designating county or municipality. Decertification of
6an Enterprise Zone shall not become effective until 60 days
7after the date of filing.
8    (d-1) The Department shall provisionally decertify any
9Enterprise Zone that fails to report any capital investment,
10job creation or retention, or State tax expenditures for 3
11consecutive calendar years. Prior to provisional
12decertification: (1) the Department shall notify the chief
13elected official of the designating county or municipality in
14writing of the specific deficiencies which provide cause for
15decertification; (2) the Department shall place the
16designating county or municipality on probationary status for
17at least 6 months during which time corrective action may be
18achieved in the Enterprise Zone by the designating county or
19municipality; and (3) the Department shall conduct at least one
20public hearing within the Zone. If such corrective action is
21not achieved during the probationary period, the Department
22shall issue an amended certificate signed by the Director of
23the Department provisionally decertifying the Enterprise Zone
24as of the scheduled termination date of the then-current
25designation. In the event that the provisionally-decertified
26Zone was approved and designated after the 97th General

 

 

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1Assembly and has been in existence for less than 15 years, such
2Zone shall not be eligible for an additional 10-year
3designation after the expiration date of the original Zone set
4forth in subsection (c) of Section 5.3. Further, if such
5corrective action is not achieved during the probationary
6period provided for in this Section, following such
7probationary period the Zone becomes available for a different
8area to compete for designation.
9    (e) In the event of a decertification, provisional
10decertification, or an amendment reducing the length of the
11term or the area of an Enterprise Zone or the adoption of an
12ordinance reducing or eliminating tax benefits in an Enterprise
13Zone, all benefits previously extended within the Zone pursuant
14to this Act or pursuant to any other Illinois law providing
15benefits specifically to or within Enterprise Zones shall
16remain in effect for the original stated term of the Enterprise
17Zone, with respect to business enterprises within the Zone on
18the effective date of such decertification, provisional
19decertification, or amendment, and with respect to individuals
20participating in urban homestead programs under this Act.
21    (f) Except as otherwise provided in Section 5.4.1, with
22respect to business enterprises (or expansions thereof) which
23are proposed or under development within a Zone at the time of
24a decertification or an amendment reducing the length of the
25term of the Zone, or excluding from the Zone area the site of
26the proposed enterprise, or an ordinance reducing or

 

 

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1eliminating tax benefits in a Zone, such business enterprise
2shall be entitled to the benefits previously applicable within
3the Zone for the original stated term of the Zone, if the
4business enterprise establishes:
5        (i) that the proposed business enterprise or expansion
6    has been committed to be located within the Zone;
7        (ii) that substantial and binding financial
8    obligations have been made towards the development of such
9    enterprise; and
10        (iii) that such commitments have been made in
11    reasonable reliance on the benefits and programs which were
12    to have been applicable to the enterprise by reason of the
13    Zone, including in the case of a reduction in term of a
14    zone, the original length of the term.
15    In declaratory judgment actions under this paragraph, the
16Department and the designating municipality or county shall be
17necessary parties defendant.
18(Source: P.A. 90-258, eff. 7-30-97.)
 
19    (20 ILCS 655/8.1)
20    Sec. 8.1. Accounting.
21    (a) Any business receiving tax incentives due to its
22location within an Enterprise Zone or its designation as a High
23Impact Business must annually report to the Department of
24Revenue information reasonably required by the Department of
25Revenue to enable the Department to verify and calculate the

 

 

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1total Enterprise Zone or High Impact Business tax benefits for
2property taxes and taxes imposed by the State that are received
3by the business, broken down by incentive category and
4enterprise zone, if applicable. Reports will be due no later
5than May 31 of each year and shall cover the previous calendar
6year. The first report will be for the 2012 calendar year and
7will be due no later than May 31, 2013. Failure to report data
8may result in ineligibility to receive incentives. To the
9extent that a business receiving tax incentives has obtained an
10Enterprise Zone Building Materials Exemption Certificate or a
11High Impact Business Building Materials Exemption Certificate,
12that business is required to report those building materials
13exemption benefits only under subsection (a-5) of this Section.
14No additional reporting for those building materials exemption
15benefits is required under this subsection (a). In addition, if
16the Department determines that 80% or more of the businesses
17receiving tax incentives because of their location within a
18particular Enterprise Zone failed to submit the information
19required under this subsection (a) to the Department in any
20calendar year, then the Enterprise Zone may be decertified by
21the Department. The Department, in consultation with the
22Department of Revenue, is authorized to adopt rules governing
23ineligibility to receive exemptions, including the length of
24ineligibility. Factors to be considered in determining whether
25a business is ineligible shall include, but are not limited to,
26prior compliance with the reporting requirements, cooperation

 

 

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1in discontinuing and correcting violations, the extent of the
2violation, and whether the violation was willful or
3inadvertent.
4    (a-5) Each contractor or other entity that has been issued
5an Enterprise Zone Building Materials Exemption Certificate
6under Section 5k of the Retailers' Occupation Tax Act or a High
7Impact Business Building Materials Exemption Certificate under
8Section 5l of the Retailers' Occupation Tax Act shall annually
9report to the Department of Revenue the total value of the
10Enterprise Zone or High Impact Business building materials
11exemption from State taxes. Reports shall contain information
12reasonably required by the Department of Revenue to enable it
13to verify and calculate the total tax benefits for taxes
14imposed by the State, and shall be broken down by Enterprise
15Zone. Reports are due no later than May 31 of each year and
16shall cover the previous calendar year. The first report will
17be for the 2013 calendar year and will be due no later than May
1831, 2014. Failure to report data may result in revocation of
19the Enterprise Zone Building Materials Exemption Certificate
20or High Impact Business Building Materials Exemption
21Certificate issued to the contractor or other entity.
22    The Department of Revenue is authorized to adopt rules
23governing revocation determinations, including the length of
24revocation. Factors to be considered in revocations shall
25include, but are not limited to, prior compliance with the
26reporting requirements, cooperation in discontinuing and

 

 

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1correcting violations, and whether the certificate was used
2unlawfully during the preceding year.
3    (b) Each person required to file a return under the Gas
4Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
5Tax Act, or the Telecommunications Excise Tax Act shall file,
6on or before May 31 of each year, a report with the Department
7of Revenue, in the manner and form required by the Department
8of Revenue, containing information reasonably required by the
9Department of Revenue to enable the Department of Revenue to
10calculate the amount of the deduction for taxes imposed by the
11State that is taken under each Act, respectively, due to the
12location of a business in an Enterprise Zone or its designation
13as a High Impact Business. The report shall be itemized by
14business and the business location address.
15    (c) Employers shall report their job creation, retention,
16and capital investment numbers within the zone annually to the
17Department of Revenue no later than May 31 of each calendar
18year. High Impact Businesses shall report their job creation,
19retention, and capital investment numbers to the Department of
20Revenue no later than May 31 of each year. With respect to job
21creation or retention, employers and High Impact Businesses
22shall use best efforts to submit diversity information related
23to the gender and ethnicity of such employees.
24    (d) The Department of Revenue will aggregate and collect
25the tax, job, and capital investment data by Enterprise Zone
26and High Impact Business and report this information, formatted

 

 

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1to exclude company-specific proprietary information, to the
2Department and the Board by August 1, 2013, and by August 1 of
3every calendar year thereafter. The Department will include
4this information in their required reports under Section 6 of
5this Act. The Board shall consider this information during the
6reviews required under subsection (d-5) of Section 5.4 of this
7Act and subsection (c) of Section 5.3 of this Act.
8    (e) The Department of Revenue, in its discretion, may
9require that the reports filed under this Section be submitted
10electronically.
11    (f) The Department of Revenue shall have the authority to
12adopt rules as are reasonable and necessary to implement the
13provisions of this Section.
14(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.