Rep. John E. Bradley

Filed: 4/16/2013

 

 


 

 


 
09800HB2496ham004LRB098 10739 HLH 44691 a

1
AMENDMENT TO HOUSE BILL 2496

2    AMENDMENT NO. ______. Amend House Bill 2496, AS AMENDED,
3immediately above the enacting clause, by inserting the
4following:
 
5    "WHEREAS, The State of Illinois has a strategic interest in
6the operations of the Illinois International Port District and
7its Board, whose function is to develop the District's port and
8harbor facilities, issue construction permits, regulate the
9District's facilities and waterways, establish and operate
10foreign trade zones, and govern and administer all the District
11area within Chicago's corporate limits; and
 
12    WHEREAS, The Illinois International Port District is a very
13significant driver of freight movement and economic activity
14throughout the State of Illinois, including the downstate
15waterways and especially the Mississippi River and the Illinois
16River; and
 

 

 

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1    WHEREAS, In 2010, cargo shipments at the Port of Chicago
2directly or indirectly supported 6,930 jobs and generated
3$425,000,000 in revenue for Illinois firms, according to the
4Washington D.C.-based American Great Lakes Ports Association;
5and
 
6    WHEREAS, The Port of Chicago links rail and trucking lines
7with barges and ships supplying the Great Lakes and nearby
8rivers and handles an estimated 26,000,000 cargo tons annually
9throughout its 1,500 acre complex on the far south side,
10according to a recent estimate by a consortium of Great Lakes
11shipping interests; and
 
12    WHEREAS, In 1978, the Capital Development Board provided
13funds to the Illinois International Port District as authorized
14by Section 13 of the Capital Development Board Act, which
15provides for repayment by the Illinois International Port
16District using a flexible formula based on specified levels of
17revenues and profits; and
 
18    WHEREAS, In the over 30 years since that payment from the
19Capital Development Board, the Illinois International Port
20District has never been required to make a single payment to
21the Capital Development Board because it has never reached the
22levels of revenues and profits that would require such payment;

 

 

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1and
 
2    WHEREAS, The Capital Development Board annually certifies
3to the Illinois International Port District that it owes no
4payment for the year to the Capital Development Board; and
 
5    WHEREAS, It is virtually impossible that the Illinois
6International Port District will ever reach the level of
7revenues and profits that would require it to make a payment to
8the Capital Development Board; and
 
9    WHEREAS, In its financial statements for each year since at
10least 2005, the Capital Development Board has "reserved" the
11entire amount lent to the Illinois International Port District,
12indicating that it does not expect any payments under the loan,
13and that non-payment of the loan would not require any future
14or present cash outlay by the Capital Development Board or the
15State; and
 
16    WHEREAS, For the reasons discussed above, the existence of
17this debt is of no value whatsoever to the State and serves
18only to limit the investment in the Port of Chicago and the
19amount of economic activity throughout Illinois water and rail
20lines; and
 
21    WHEREAS, Official forgiveness of the obligation from the

 

 

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1Illinois International Port District to the Capital
2Development Board would benefit the entire State of Illinois by
3allowing greater investment in the State's waterways and
4freight facilities; therefore"; and
 
5by replacing everything after the enacting clause with the
6following:
 
7    "Section 5. The Illinois Enterprise Zone Act is amended by
8changing Section 5.5 as follows:
 
9    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
10    Sec. 5.5. High Impact Business.
11    (a) In order to respond to unique opportunities to assist
12in the encouragement, development, growth and expansion of the
13private sector through large scale investment and development
14projects, the Department is authorized to receive and approve
15applications for the designation of "High Impact Businesses" in
16Illinois subject to the following conditions:
17        (1) such applications may be submitted at any time
18    during the year;
19        (2) such business is not located, at the time of
20    designation, in an enterprise zone designated pursuant to
21    this Act;
22        (3) the business intends to do one or more of the
23    following:

 

 

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1            (A) the business intends to make a minimum
2        investment of $12,000,000 which will be placed in
3        service in qualified property and intends to create 500
4        full-time equivalent jobs at a designated location in
5        Illinois or intends to make a minimum investment of
6        $30,000,000 which will be placed in service in
7        qualified property and intends to retain 1,500
8        full-time retained jobs at a designated location in
9        Illinois. The business must certify in writing that the
10        investments would not be placed in service in qualified
11        property and the job creation or job retention would
12        not occur without the tax credits and exemptions set
13        forth in subsection (b) of this Section. The terms
14        "placed in service" and "qualified property" have the
15        same meanings as described in subsection (h) of Section
16        201 of the Illinois Income Tax Act; or
17            (B) the business intends to establish a new
18        electric generating facility at a designated location
19        in Illinois. "New electric generating facility", for
20        purposes of this Section, means a newly-constructed
21        electric generation plant or a newly-constructed
22        generation capacity expansion at an existing electric
23        generation plant, including the transmission lines and
24        associated equipment that transfers electricity from
25        points of supply to points of delivery, and for which
26        such new foundation construction commenced not sooner

 

 

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1        than July 1, 2001. Such facility shall be designed to
2        provide baseload electric generation and shall operate
3        on a continuous basis throughout the year; and (i)
4        shall have an aggregate rated generating capacity of at
5        least 1,000 megawatts for all new units at one site if
6        it uses natural gas as its primary fuel and foundation
7        construction of the facility is commenced on or before
8        December 31, 2004, or shall have an aggregate rated
9        generating capacity of at least 400 megawatts for all
10        new units at one site if it uses coal or gases derived
11        from coal as its primary fuel and shall support the
12        creation of at least 150 new Illinois coal mining jobs,
13        or (ii) shall be funded through a federal Department of
14        Energy grant before December 31, 2010 and shall support
15        the creation of Illinois coal-mining jobs, or (iii)
16        shall use coal gasification or integrated
17        gasification-combined cycle units that generate
18        electricity or chemicals, or both, and shall support
19        the creation of Illinois coal-mining jobs. The
20        business must certify in writing that the investments
21        necessary to establish a new electric generating
22        facility would not be placed in service and the job
23        creation in the case of a coal-fueled plant would not
24        occur without the tax credits and exemptions set forth
25        in subsection (b-5) of this Section. The term "placed
26        in service" has the same meaning as described in

 

 

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1        subsection (h) of Section 201 of the Illinois Income
2        Tax Act; or
3            (B-5) the business intends to establish a new
4        gasification facility at a designated location in
5        Illinois. As used in this Section, "new gasification
6        facility" means a newly constructed coal gasification
7        facility that generates chemical feedstocks or
8        transportation fuels derived from coal (which may
9        include, but are not limited to, methane, methanol, and
10        nitrogen fertilizer), that supports the creation or
11        retention of Illinois coal-mining jobs, and that
12        qualifies for financial assistance from the Department
13        before December 31, 2010. A new gasification facility
14        does not include a pilot project located within
15        Jefferson County or within a county adjacent to
16        Jefferson County for synthetic natural gas from coal;
17        or
18            (C) the business intends to establish production
19        operations at a new coal mine, re-establish production
20        operations at a closed coal mine, or expand production
21        at an existing coal mine at a designated location in
22        Illinois not sooner than July 1, 2001; provided that
23        the production operations result in the creation of 150
24        new Illinois coal mining jobs as described in
25        subdivision (a)(3)(B) of this Section, and further
26        provided that the coal extracted from such mine is

 

 

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1        utilized as the predominant source for a new electric
2        generating facility. The business must certify in
3        writing that the investments necessary to establish a
4        new, expanded, or reopened coal mine would not be
5        placed in service and the job creation would not occur
6        without the tax credits and exemptions set forth in
7        subsection (b-5) of this Section. The term "placed in
8        service" has the same meaning as described in
9        subsection (h) of Section 201 of the Illinois Income
10        Tax Act; or
11            (D) the business intends to construct new
12        transmission facilities or upgrade existing
13        transmission facilities at designated locations in
14        Illinois, for which construction commenced not sooner
15        than July 1, 2001. For the purposes of this Section,
16        "transmission facilities" means transmission lines
17        with a voltage rating of 115 kilovolts or above,
18        including associated equipment, that transfer
19        electricity from points of supply to points of delivery
20        and that transmit a majority of the electricity
21        generated by a new electric generating facility
22        designated as a High Impact Business in accordance with
23        this Section. The business must certify in writing that
24        the investments necessary to construct new
25        transmission facilities or upgrade existing
26        transmission facilities would not be placed in service

 

 

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1        without the tax credits and exemptions set forth in
2        subsection (b-5) of this Section. The term "placed in
3        service" has the same meaning as described in
4        subsection (h) of Section 201 of the Illinois Income
5        Tax Act; or
6            (E) the business intends to establish a new wind
7        power facility at a designated location in Illinois.
8        For purposes of this Section, "new wind power facility"
9        means a newly constructed electric generation
10        facility, or a newly constructed expansion of an
11        existing electric generation facility, placed in
12        service on or after July 1, 2009, that generates
13        electricity using wind energy devices, and such
14        facility shall be deemed to include all associated
15        transmission lines, substations, and other equipment
16        related to the generation of electricity from wind
17        energy devices. For purposes of this Section, "wind
18        energy device" means any device, with a nameplate
19        capacity of at least 0.5 megawatts, that is used in the
20        process of converting kinetic energy from the wind to
21        generate electricity; or and
22            (F) the business intends to (i) make a minimum
23        investment of $500,000,000, which will be placed in
24        service in a qualified property, (ii) create 125
25        full-time equivalent jobs at a designated location in
26        Illinois, and (iii) establish a fertilizer plant at a

 

 

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1        designated location in Illinois; for the purposes of
2        this Section, "fertilizer plant" means a newly
3        constructed or upgraded plant facilitating gas used in
4        the production of anhydrous ammonia and downstream
5        nitrogen fertilizer products for resale; this
6        paragraph (F) applies only to businesses that submit an
7        application to the Department within 60 days after the
8        effective date of this amendatory Act of the 98th
9        General Assembly; and
10        (4) no later than 90 days after an application is
11    submitted, the Department shall notify the applicant of the
12    Department's determination of the qualification of the
13    proposed High Impact Business under this Section.
14    (b) Businesses designated as High Impact Businesses
15pursuant to subdivision (a)(3)(A) of this Section shall qualify
16for the credits and exemptions described in the following Acts:
17Section 9-222 and Section 9-222.1A of the Public Utilities Act,
18subsection (h) of Section 201 of the Illinois Income Tax Act,
19and Section 1d of the Retailers' Occupation Tax Act; provided
20that these credits and exemptions described in these Acts shall
21not be authorized until the minimum investments set forth in
22subdivision (a)(3)(A) of this Section have been placed in
23service in qualified properties and, in the case of the
24exemptions described in the Public Utilities Act and Section 1d
25of the Retailers' Occupation Tax Act, the minimum full-time
26equivalent jobs or full-time retained jobs set forth in

 

 

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1subdivision (a)(3)(A) of this Section have been created or
2retained. Businesses designated as High Impact Businesses
3under this Section shall also qualify for the exemption
4described in Section 5l of the Retailers' Occupation Tax Act.
5The credit provided in subsection (h) of Section 201 of the
6Illinois Income Tax Act shall be applicable to investments in
7qualified property as set forth in subdivision (a)(3)(A) of
8this Section.
9    (b-5) Businesses designated as High Impact Businesses
10pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
11and (a)(3)(D) of this Section shall qualify for the credits and
12exemptions described in the following Acts: Section 51 of the
13Retailers' Occupation Tax Act, Section 9-222 and Section
149-222.1A of the Public Utilities Act, and subsection (h) of
15Section 201 of the Illinois Income Tax Act; however, the
16credits and exemptions authorized under Section 9-222 and
17Section 9-222.1A of the Public Utilities Act, and subsection
18(h) of Section 201 of the Illinois Income Tax Act shall not be
19authorized until the new electric generating facility, the new
20gasification facility, the new transmission facility, or the
21new, expanded, or reopened coal mine is operational, except
22that a new electric generating facility whose primary fuel
23source is natural gas is eligible only for the exemption under
24Section 5l of the Retailers' Occupation Tax Act.
25    (b-6) Businesses designated as High Impact Businesses
26pursuant to subdivision (a)(3)(E) of this Section shall qualify

 

 

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1for the exemptions described in Section 5l of the Retailers'
2Occupation Tax Act; any business so designated as a High Impact
3Business being, for purposes of this Section, a "Wind Energy
4Business".
5    (c) High Impact Businesses located in federally designated
6foreign trade zones or sub-zones are also eligible for
7additional credits, exemptions and deductions as described in
8the following Acts: Section 9-221 and Section 9-222.1 of the
9Public Utilities Act; and subsection (g) of Section 201, and
10Section 203 of the Illinois Income Tax Act.
11    (d) Except for businesses contemplated under subdivision
12(a)(3)(E) of this Section, existing Illinois businesses which
13apply for designation as a High Impact Business must provide
14the Department with the prospective plan for which 1,500
15full-time retained jobs would be eliminated in the event that
16the business is not designated.
17    (e) Except for new wind power facilities contemplated under
18subdivision (a)(3)(E) of this Section, new proposed facilities
19which apply for designation as High Impact Business must
20provide the Department with proof of alternative non-Illinois
21sites which would receive the proposed investment and job
22creation in the event that the business is not designated as a
23High Impact Business.
24    (f) Except for businesses contemplated under subdivision
25(a)(3)(E) of this Section, in the event that a business is
26designated a High Impact Business and it is later determined

 

 

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1after reasonable notice and an opportunity for a hearing as
2provided under the Illinois Administrative Procedure Act, that
3the business would have placed in service in qualified property
4the investments and created or retained the requisite number of
5jobs without the benefits of the High Impact Business
6designation, the Department shall be required to immediately
7revoke the designation and notify the Director of the
8Department of Revenue who shall begin proceedings to recover
9all wrongfully exempted State taxes with interest. The business
10shall also be ineligible for all State funded Department
11programs for a period of 10 years.
12    (g) The Department shall revoke a High Impact Business
13designation if the participating business fails to comply with
14the terms and conditions of the designation. However, the
15penalties for new wind power facilities or Wind Energy
16Businesses for failure to comply with any of the terms or
17conditions of the Illinois Prevailing Wage Act shall be only
18those penalties identified in the Illinois Prevailing Wage Act,
19and the Department shall not revoke a High Impact Business
20designation as a result of the failure to comply with any of
21the terms or conditions of the Illinois Prevailing Wage Act in
22relation to a new wind power facility or a Wind Energy
23Business.
24    (h) Prior to designating a business, the Department shall
25provide the members of the General Assembly and Commission on
26Government Forecasting and Accountability with a report

 

 

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1setting forth the terms and conditions of the designation and
2guarantees that have been received by the Department in
3relation to the proposed business being designated.
4(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
 
5    Section 10. The Corporate Accountability for Tax
6Expenditures Act is amended by changing Section 25 as follows:
 
7    (20 ILCS 715/25)
8    Sec. 25. Recapture.
9    (a) All development assistance agreements shall contain,
10at a minimum, the following recapture provisions:
11        (1) The recipient must (i) make the level of capital
12    investment in the economic development project specified
13    in the development assistance agreement; (ii) create or
14    retain, or both, the requisite number of jobs, paying not
15    less than specified wages for the created and retained
16    jobs, within and for the duration of the time period
17    specified in the legislation authorizing, or the
18    administrative rules implementing, the development
19    assistance programs and the development assistance
20    agreement.
21        (2) If the recipient fails to create or retain the
22    requisite number of jobs within and for the time period
23    specified, in the legislation authorizing, or the
24    administrative rules implementing, the development

 

 

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1    assistance programs and the development assistance
2    agreement, the recipient shall be deemed to no longer
3    qualify for the State economic assistance and the
4    applicable recapture provisions shall take effect.
5        (3) If the recipient receives State economic
6    assistance in the form of a High Impact Business
7    designation pursuant to Section 5.5 of the Illinois
8    Enterprise Zone Act and the business receives the benefit
9    of the exemption authorized under Section 5l of the
10    Retailers' Occupation Tax Act (for the sale of building
11    materials incorporated into a High Impact Business
12    location) or the utility tax exemption authorized under
13    Section 9-222.1A of the Public Utilities Act and the
14    recipient fails to create or retain the requisite number of
15    jobs, as determined by the legislation authorizing the
16    development assistance programs or the administrative
17    rules implementing such legislation, or both, within the
18    requisite period of time, the recipient shall be required
19    to pay to the State the full amount of both the State tax
20    exemption and the utility tax exemption that it received as
21    a result of the High Impact Business designation.
22        (4) If the recipient receives a grant or loan pursuant
23    to the Large Business Development Program, the Business
24    Development Public Infrastructure Program, or the
25    Industrial Training Program and the recipient fails to
26    create or retain the requisite number of jobs for the

 

 

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1    requisite time period, as provided in the legislation
2    authorizing the development assistance programs or the
3    administrative rules implementing such legislation, or
4    both, or in the development assistance agreement, the
5    recipient shall be required to repay to the State a pro
6    rata amount of the grant; that amount shall reflect the
7    percentage of the deficiency between the requisite number
8    of jobs to be created or retained by the recipient and the
9    actual number of such jobs in existence as of the date the
10    Department determines the recipient is in breach of the job
11    creation or retention covenants contained in the
12    development assistance agreement. If the recipient of
13    development assistance under the Large Business
14    Development Program, the Business Development Public
15    Infrastructure Program, or the Industrial Training Program
16    ceases operations at the specific project site, during the
17    5-year period commencing on the date of assistance, the
18    recipient shall be required to repay the entire amount of
19    the grant or to accelerate repayment of the loan back to
20    the State.
21        (5) If the recipient receives a tax credit under the
22    Economic Development for a Growing Economy tax credit
23    program, the development assistance agreement must provide
24    that (i) if the number of new or retained employees falls
25    below the requisite number set forth in the development
26    assistance agreement, the allowance of the credit shall be

 

 

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1    automatically suspended until the number of new and
2    retained employees equals or exceeds the requisite number
3    in the development assistance agreement; (ii) if the
4    recipient discontinues operations at the specific project
5    site during the 5-year period after the beginning of the
6    first tax year for which the Department issues a tax credit
7    certificate, the recipient shall forfeit all credits taken
8    by the recipient during such 5-year period; and (iii) in
9    the event of a revocation or suspension of the credit, the
10    Department shall contact the Director of Revenue to
11    initiate proceedings against the recipient to recover
12    wrongfully exempted Illinois State income taxes and the
13    recipient shall promptly repay to the Department of Revenue
14    any wrongfully exempted Illinois State income taxes. The
15    forfeited amount of credits shall be deemed assessed on the
16    date the Department contacts the Department of Revenue and
17    the recipient shall promptly repay to the Department of
18    Revenue any wrongfully exempted Illinois State income
19    taxes.
20    (b) The Director may elect to waive enforcement of any
21contractual provision arising out of the development
22assistance agreement required by this Act based on a finding
23that the waiver is necessary to avert an imminent and
24demonstrable hardship to the recipient that may result in such
25recipient's insolvency or discharge of workers. If a waiver is
26granted, the recipient must agree to a contractual

 

 

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1modification, including recapture provisions, to the
2development assistance agreement. The existence of any waiver
3granted pursuant to this subsection (b) (c), the date of the
4granting of such waiver, and a brief summary of the reasons
5supporting the granting of such waiver shall be disclosed
6consistent with the provisions of Section 25 of this Act.
7    (b-5) The Department shall post, on its website, (i) the
8identity of each recipient from whom amounts were recaptured
9under this Section on or after the effective date of this
10amendatory Act of the 97th General Assembly, (ii) the date of
11the recapture, (iii) a summary of the reasons supporting the
12recapture, and (iv) the amount recaptured from those
13recipients.
14    (c) Beginning June 1, 2004, the Department shall annually
15compile a report on the outcomes and effectiveness of recapture
16provisions by program, including but not limited to: (i) the
17total number of companies that receive development assistance
18as defined in this Act; (ii) the total number of recipients in
19violation of development agreements with the Department; (iii)
20the total number of completed recapture efforts; (iv) the total
21number of recapture efforts initiated; and (v) the number of
22waivers granted. This report shall be disclosed consistent with
23the provisions of Section 20 of this Act.
24    (d) For the purposes of this Act, recapture provisions do
25not include the Illinois Department of Transportation Economic
26Development Program, any grants under the Industrial Training

 

 

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1Program that are not given as an incentive to a recipient
2business organization, or any successor programs as described
3in the term "development assistance" in Section 5 of this Act.
4(Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; revised
510-10-12.)
 
6    Section 15. The Capital Development Board Act is amended by
7changing Section 13 as follows:
 
8    (20 ILCS 3105/13)  (from Ch. 127, par. 783)
9    Sec. 13. The Board may provide cargo handling facilities
10and facilities designed for the movement of cargo to or from
11cargo handling facilities for the use of regional port
12districts. Pursuant to appropriations setting forth specific
13projects and regional port districts, the Board shall contract
14with the regional port district named in the Act making the
15appropriation for cargo handling facilities. Such contract
16shall provide that the regional port district shall remit to
17the State of Illinois an amount equal to not more than 20% of
18the gross receipts attributable to those facilities, and not
19less than 20% of the profit attributable to those facilities,
20whether collected by the regional port district or through an
21operator or other intermediary, until the full amount
22appropriated and expended by the State of Illinois has been
23remitted to the State. The exact amount of, the manner of, the
24method of and the time for such remittances shall be agreed

 

 

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1upon by the particular port district and the Board acting
2through its Executive Director, and such agreement may, from
3time to time, be amended by the parties so as to alter or
4modify the amount of, manner of, method of and time for the
5remittance, including, but not limited to, the temporary
6forgiveness, suspension or delay of the remittances not to
7exceed 24 months for any single suspension or delay. The
8payback is subordinate solely to any outstanding public bond
9agreements existing at the time of the contract and solely for
10the period of time of the running of those bond agreements. For
11any contract entered into under this Section, if, for a period
12of 25 years, a regional port district has not been required to
13remit any amount because the regional port district has failed
14to achieve the required level of profit, then the regional port
15district shall not be required to remit any amount under the
16contract.
17    This Section shall apply to all regional port district
18facilities to be constructed by the Board, including projects
19for which appropriations or reappropriations have been made
20prior to June 30, 1976, and to all contracts existing prior to
21the effective date of this amendatory Act of 1985 as well as
22contracts entered into on or after such date.
23(Source: P.A. 84-781.)".
 
24    Section 20. The Property Tax Code is amended by changing
25Section 18-165 as follows:
 

 

 

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1    (35 ILCS 200/18-165)
2    Sec. 18-165. Abatement of taxes.
3    (a) Any taxing district, upon a majority vote of its
4governing authority, may, after the determination of the
5assessed valuation of its property, order the clerk of that
6county to abate any portion of its taxes on the following types
7of property:
8        (1) Commercial and industrial.
9            (A) The property of any commercial or industrial
10        firm, including but not limited to the property of (i)
11        any firm that is used for collecting, separating,
12        storing, or processing recyclable materials, locating
13        within the taxing district during the immediately
14        preceding year from another state, territory, or
15        country, or having been newly created within this State
16        during the immediately preceding year, or expanding an
17        existing facility, or (ii) any firm that is used for
18        the generation and transmission of electricity
19        locating within the taxing district during the
20        immediately preceding year or expanding its presence
21        within the taxing district during the immediately
22        preceding year by construction of a new electric
23        generating facility that uses natural gas as its fuel,
24        or any firm that is used for production operations at a
25        new, expanded, or reopened coal mine within the taxing

 

 

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1        district, that has been certified as a High Impact
2        Business by the Illinois Department of Commerce and
3        Economic Opportunity. The property of any firm used for
4        the generation and transmission of electricity shall
5        include all property of the firm used for transmission
6        facilities as defined in Section 5.5 of the Illinois
7        Enterprise Zone Act. The abatement shall not exceed a
8        period of 10 years and the aggregate amount of abated
9        taxes for all taxing districts combined shall not
10        exceed $4,000,000.
11            (A-5) Any property in the taxing district of a new
12        electric generating facility, as defined in Section
13        605-332 of the Department of Commerce and Economic
14        Opportunity Law of the Civil Administrative Code of
15        Illinois. The abatement shall not exceed a period of 10
16        years. The abatement shall be subject to the following
17        limitations:
18                (i) if the equalized assessed valuation of the
19            new electric generating facility is equal to or
20            greater than $25,000,000 but less than
21            $50,000,000, then the abatement may not exceed (i)
22            over the entire term of the abatement, 5% of the
23            taxing district's aggregate taxes from the new
24            electric generating facility and (ii) in any one
25            year of abatement, 20% of the taxing district's
26            taxes from the new electric generating facility;

 

 

09800HB2496ham004- 23 -LRB098 10739 HLH 44691 a

1                (ii) if the equalized assessed valuation of
2            the new electric generating facility is equal to or
3            greater than $50,000,000 but less than
4            $75,000,000, then the abatement may not exceed (i)
5            over the entire term of the abatement, 10% of the
6            taxing district's aggregate taxes from the new
7            electric generating facility and (ii) in any one
8            year of abatement, 35% of the taxing district's
9            taxes from the new electric generating facility;
10                (iii) if the equalized assessed valuation of
11            the new electric generating facility is equal to or
12            greater than $75,000,000 but less than
13            $100,000,000, then the abatement may not exceed
14            (i) over the entire term of the abatement, 20% of
15            the taxing district's aggregate taxes from the new
16            electric generating facility and (ii) in any one
17            year of abatement, 50% of the taxing district's
18            taxes from the new electric generating facility;
19                (iv) if the equalized assessed valuation of
20            the new electric generating facility is equal to or
21            greater than $100,000,000 but less than
22            $125,000,000, then the abatement may not exceed
23            (i) over the entire term of the abatement, 30% of
24            the taxing district's aggregate taxes from the new
25            electric generating facility and (ii) in any one
26            year of abatement, 60% of the taxing district's

 

 

09800HB2496ham004- 24 -LRB098 10739 HLH 44691 a

1            taxes from the new electric generating facility;
2                (v) if the equalized assessed valuation of the
3            new electric generating facility is equal to or
4            greater than $125,000,000 but less than
5            $150,000,000, then the abatement may not exceed
6            (i) over the entire term of the abatement, 40% of
7            the taxing district's aggregate taxes from the new
8            electric generating facility and (ii) in any one
9            year of abatement, 60% of the taxing district's
10            taxes from the new electric generating facility;
11                (vi) if the equalized assessed valuation of
12            the new electric generating facility is equal to or
13            greater than $150,000,000, then the abatement may
14            not exceed (i) over the entire term of the
15            abatement, 50% of the taxing district's aggregate
16            taxes from the new electric generating facility
17            and (ii) in any one year of abatement, 60% of the
18            taxing district's taxes from the new electric
19            generating facility.
20            The abatement is not effective unless the owner of
21        the new electric generating facility agrees to repay to
22        the taxing district all amounts previously abated,
23        together with interest computed at the rate and in the
24        manner provided for delinquent taxes, in the event that
25        the owner of the new electric generating facility
26        closes the new electric generating facility before the

 

 

09800HB2496ham004- 25 -LRB098 10739 HLH 44691 a

1        expiration of the entire term of the abatement.
2            The authorization of taxing districts to abate
3        taxes under this subdivision (a)(1)(A-5) expires on
4        January 1, 2010.
5            (B) The property of any commercial or industrial
6        development of at least (i) 500 acres or (ii) 225 acres
7        in the case of a commercial or industrial development
8        that applies for and is granted designation as a High
9        Impact Business under paragraph (F) of item (3) of
10        subsection (a) of Section 5.5 of the Illinois
11        Enterprise Zone Act, having been created within the
12        taxing district. The abatement shall not exceed a
13        period of 20 years and the aggregate amount of abated
14        taxes for all taxing districts combined shall not
15        exceed $12,000,000.
16            (C) The property of any commercial or industrial
17        firm currently located in the taxing district that
18        expands a facility or its number of employees. The
19        abatement shall not exceed a period of 10 years and the
20        aggregate amount of abated taxes for all taxing
21        districts combined shall not exceed $4,000,000. The
22        abatement period may be renewed at the option of the
23        taxing districts.
24        (2) Horse racing. Any property in the taxing district
25    which is used for the racing of horses and upon which
26    capital improvements consisting of expansion, improvement

 

 

09800HB2496ham004- 26 -LRB098 10739 HLH 44691 a

1    or replacement of existing facilities have been made since
2    July 1, 1987. The combined abatements for such property
3    from all taxing districts in any county shall not exceed
4    $5,000,000 annually and shall not exceed a period of 10
5    years.
6        (3) Auto racing. Any property designed exclusively for
7    the racing of motor vehicles. Such abatement shall not
8    exceed a period of 10 years.
9        (4) Academic or research institute. The property of any
10    academic or research institute in the taxing district that
11    (i) is an exempt organization under paragraph (3) of
12    Section 501(c) of the Internal Revenue Code, (ii) operates
13    for the benefit of the public by actually and exclusively
14    performing scientific research and making the results of
15    the research available to the interested public on a
16    non-discriminatory basis, and (iii) employs more than 100
17    employees. An abatement granted under this paragraph shall
18    be for at least 15 years and the aggregate amount of abated
19    taxes for all taxing districts combined shall not exceed
20    $5,000,000.
21        (5) Housing for older persons. Any property in the
22    taxing district that is devoted exclusively to affordable
23    housing for older households. For purposes of this
24    paragraph, "older households" means those households (i)
25    living in housing provided under any State or federal
26    program that the Department of Human Rights determines is

 

 

09800HB2496ham004- 27 -LRB098 10739 HLH 44691 a

1    specifically designed and operated to assist elderly
2    persons and is solely occupied by persons 55 years of age
3    or older and (ii) whose annual income does not exceed 80%
4    of the area gross median income, adjusted for family size,
5    as such gross income and median income are determined from
6    time to time by the United States Department of Housing and
7    Urban Development. The abatement shall not exceed a period
8    of 15 years, and the aggregate amount of abated taxes for
9    all taxing districts shall not exceed $3,000,000.
10        (6) Historical society. For assessment years 1998
11    through 2018, the property of an historical society
12    qualifying as an exempt organization under Section
13    501(c)(3) of the federal Internal Revenue Code.
14        (7) Recreational facilities. Any property in the
15    taxing district (i) that is used for a municipal airport,
16    (ii) that is subject to a leasehold assessment under
17    Section 9-195 of this Code and (iii) which is sublet from a
18    park district that is leasing the property from a
19    municipality, but only if the property is used exclusively
20    for recreational facilities or for parking lots used
21    exclusively for those facilities. The abatement shall not
22    exceed a period of 10 years.
23        (8) Relocated corporate headquarters. If approval
24    occurs within 5 years after the effective date of this
25    amendatory Act of the 92nd General Assembly, any property
26    or a portion of any property in a taxing district that is

 

 

09800HB2496ham004- 28 -LRB098 10739 HLH 44691 a

1    used by an eligible business for a corporate headquarters
2    as defined in the Corporate Headquarters Relocation Act.
3    Instead of an abatement under this paragraph (8), a taxing
4    district may enter into an agreement with an eligible
5    business to make annual payments to that eligible business
6    in an amount not to exceed the property taxes paid directly
7    or indirectly by that eligible business to the taxing
8    district and any other taxing districts for premises
9    occupied pursuant to a written lease and may make those
10    payments without the need for an annual appropriation. No
11    school district, however, may enter into an agreement with,
12    or abate taxes for, an eligible business unless the
13    municipality in which the corporate headquarters is
14    located agrees to provide funding to the school district in
15    an amount equal to the amount abated or paid by the school
16    district as provided in this paragraph (8). Any abatement
17    ordered or agreement entered into under this paragraph (8)
18    may be effective for the entire term specified by the
19    taxing district, except the term of the abatement or annual
20    payments may not exceed 20 years.
21        (9) United States Military Public/Private Residential
22    Developments. Each building, structure, or other
23    improvement designed, financed, constructed, renovated,
24    managed, operated, or maintained after January 1, 2006
25    under a "PPV Lease", as set forth under Division 14 of
26    Article 10, and any such PPV Lease.

 

 

09800HB2496ham004- 29 -LRB098 10739 HLH 44691 a

1        (10) Property located in a business corridor that
2    qualifies for an abatement under Section 18-184.10.
3    (b) Upon a majority vote of its governing authority, any
4municipality may, after the determination of the assessed
5valuation of its property, order the county clerk to abate any
6portion of its taxes on any property that is located within the
7corporate limits of the municipality in accordance with Section
88-3-18 of the Illinois Municipal Code.
9(Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12;
1097-636, eff. 6-1-12.)
 
11    Section 25. The Public Utilities Act is amended by changing
12Section 9-222.1A as follows:
 
13    (220 ILCS 5/9-222.1A)
14    Sec. 9-222.1A. High impact business. Beginning on August 1,
151998 and thereafter, a business enterprise that is certified as
16a High Impact Business by the Department of Commerce and
17Economic Opportunity (formerly Department of Commerce and
18Community Affairs) is exempt from the tax imposed by Section
192-4 of the Electricity Excise Tax Law, if the High Impact
20Business is registered to self-assess that tax, and is exempt
21from any additional charges added to the business enterprise's
22utility bills as a pass-on of State utility taxes under Section
239-222 of this Act, to the extent the tax or charges are
24exempted by the percentage specified by the Department of

 

 

09800HB2496ham004- 30 -LRB098 10739 HLH 44691 a

1Commerce and Economic Opportunity for State utility taxes,
2provided the business enterprise meets the following criteria:
3        (1) (A) it intends either (i) to make a minimum
4        eligible investment of $12,000,000 that will be placed
5        in service in qualified property in Illinois and is
6        intended to create at least 500 full-time equivalent
7        jobs at a designated location in Illinois; or (ii) to
8        make a minimum eligible investment of $30,000,000 that
9        will be placed in service in qualified property in
10        Illinois and is intended to retain at least 1,500
11        full-time equivalent jobs at a designated location in
12        Illinois; or
13            (B) it meets the criteria of subdivision
14        (a)(3)(B), (a)(3)(C), or (a)(3)(D), or (a)(3)(F) of
15        Section 5.5 of the Illinois Enterprise Zone Act;
16        (2) it is designated as a High Impact Business by the
17    Department of Commerce and Economic Opportunity; and
18        (3) it is certified by the Department of Commerce and
19    Economic Opportunity as complying with the requirements
20    specified in clauses (1) and (2) of this Section.
21    The Department of Commerce and Economic Opportunity shall
22determine the period during which the exemption from the
23Electricity Excise Tax Law and the charges imposed under
24Section 9-222 are in effect, which shall not exceed 20 years
25from the date of initial certification, and shall specify the
26percentage of the exemption from those taxes or additional

 

 

09800HB2496ham004- 31 -LRB098 10739 HLH 44691 a

1charges.
2    The Department of Commerce and Economic Opportunity is
3authorized to promulgate rules and regulations to carry out the
4provisions of this Section, including procedures for complying
5with the requirements specified in clauses (1) and (2) of this
6Section and procedures for applying for the exemptions
7authorized under this Section; to define the amounts and types
8of eligible investments that business enterprises must make in
9order to receive State utility tax exemptions or exemptions
10from the additional charges imposed under Section 9-222 and
11this Section; to approve such utility tax exemptions for
12business enterprises whose investments are not yet placed in
13service; and to require that business enterprises granted tax
14exemptions or exemptions from additional charges under Section
159-222 repay the exempted amount if the business enterprise
16fails to comply with the terms and conditions of the
17certification.
18    Upon certification of the business enterprises by the
19Department of Commerce and Economic Opportunity, the
20Department of Commerce and Economic Opportunity shall notify
21the Department of Revenue of the certification. The Department
22of Revenue shall notify the public utilities of the exemption
23status of business enterprises from the tax or pass-on charges
24of State utility taxes. The exemption status shall take effect
25within 3 months after certification of the business enterprise.
26(Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

09800HB2496ham004- 32 -LRB098 10739 HLH 44691 a

1    Section 99. Effective date. This Act takes effect upon
2becoming law.".