Sen. Chapin Rose

Filed: 3/7/2013

 

 


 

 


 
09800SB1593sam002LRB098 07669 HLH 42557 a

1
AMENDMENT TO SENATE BILL 1593

2    AMENDMENT NO. ______. Amend Senate Bill 1593 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth and expansion of the
10private sector through large scale investment and development
11projects, the Department is authorized to receive and approve
12applications for the designation of "High Impact Businesses" in
13Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of

 

 

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

 

 

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1        generation plant, including the transmission lines and
2        associated equipment that transfers electricity from
3        points of supply to points of delivery, and for which
4        such new foundation construction commenced not sooner
5        than July 1, 2001. Such facility shall be designed to
6        provide baseload electric generation and shall operate
7        on a continuous basis throughout the year; and (i)
8        shall have an aggregate rated generating capacity of at
9        least 1,000 megawatts for all new units at one site if
10        it uses natural gas as its primary fuel and foundation
11        construction of the facility is commenced on or before
12        December 31, 2004, or shall have an aggregate rated
13        generating capacity of at least 400 megawatts for all
14        new units at one site if it uses coal or gases derived
15        from coal as its primary fuel and shall support the
16        creation of at least 150 new Illinois coal mining jobs,
17        or (ii) shall be funded through a federal Department of
18        Energy grant before December 31, 2010 and shall support
19        the creation of Illinois coal-mining jobs, or (iii)
20        shall use coal gasification or integrated
21        gasification-combined cycle units that generate
22        electricity or chemicals, or both, and shall support
23        the creation of Illinois coal-mining jobs. The
24        business must certify in writing that the investments
25        necessary to establish a new electric generating
26        facility would not be placed in service and the job

 

 

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1        creation in the case of a coal-fueled plant would not
2        occur without the tax credits and exemptions set forth
3        in subsection (b-5) of this Section. The term "placed
4        in service" has the same meaning as described in
5        subsection (h) of Section 201 of the Illinois Income
6        Tax Act; or
7            (B-5) the business intends to establish a new
8        gasification facility at a designated location in
9        Illinois. As used in this Section, "new gasification
10        facility" means a newly constructed coal gasification
11        facility that generates chemical feedstocks or
12        transportation fuels derived from coal (which may
13        include, but are not limited to, methane, methanol, and
14        nitrogen fertilizer), that supports the creation or
15        retention of Illinois coal-mining jobs, and that
16        qualifies for financial assistance from the Department
17        before December 31, 2010. A new gasification facility
18        does not include a pilot project located within
19        Jefferson County or within a county adjacent to
20        Jefferson County for synthetic natural gas from coal;
21        or
22            (C) the business intends to establish production
23        operations at a new coal mine, re-establish production
24        operations at a closed coal mine, or expand production
25        at an existing coal mine at a designated location in
26        Illinois not sooner than July 1, 2001; provided that

 

 

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1        the production operations result in the creation of 150
2        new Illinois coal mining jobs as described in
3        subdivision (a)(3)(B) of this Section, and further
4        provided that the coal extracted from such mine is
5        utilized as the predominant source for a new electric
6        generating facility. The business must certify in
7        writing that the investments necessary to establish a
8        new, expanded, or reopened coal mine would not be
9        placed in service and the job creation would not occur
10        without the tax credits and exemptions set forth in
11        subsection (b-5) of this Section. The term "placed in
12        service" has the same meaning as described in
13        subsection (h) of Section 201 of the Illinois Income
14        Tax Act; or
15            (D) the business intends to construct new
16        transmission facilities or upgrade existing
17        transmission facilities at designated locations in
18        Illinois, for which construction commenced not sooner
19        than July 1, 2001. For the purposes of this Section,
20        "transmission facilities" means transmission lines
21        with a voltage rating of 115 kilovolts or above,
22        including associated equipment, that transfer
23        electricity from points of supply to points of delivery
24        and that transmit a majority of the electricity
25        generated by a new electric generating facility
26        designated as a High Impact Business in accordance with

 

 

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1        this Section. The business must certify in writing that
2        the investments necessary to construct new
3        transmission facilities or upgrade existing
4        transmission facilities would not be placed in service
5        without the tax credits and exemptions set forth in
6        subsection (b-5) of this Section. The term "placed in
7        service" has the same meaning as described in
8        subsection (h) of Section 201 of the Illinois Income
9        Tax Act; or
10            (E) the business intends to establish a new wind
11        power facility at a designated location in Illinois.
12        For purposes of this Section, "new wind power facility"
13        means a newly constructed electric generation
14        facility, or a newly constructed expansion of an
15        existing electric generation facility, placed in
16        service on or after July 1, 2009, that generates
17        electricity using wind energy devices, and such
18        facility shall be deemed to include all associated
19        transmission lines, substations, and other equipment
20        related to the generation of electricity from wind
21        energy devices. For purposes of this Section, "wind
22        energy device" means any device, with a nameplate
23        capacity of at least 0.5 megawatts, that is used in the
24        process of converting kinetic energy from the wind to
25        generate electricity; or and
26            (F) the business intends to (i) make a minimum

 

 

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1        investment of $500,000,000, which will be placed in
2        service in a qualified property, (ii) create 125
3        full-time equivalent jobs at a designated location in
4        Illinois, and (iii) establish a fertilizer plant at a
5        designated location in Illinois; for the purposes of
6        this Section, "fertilizer plant" means a newly
7        constructed or upgraded plant facilitating gas used in
8        the production of anhydrous ammonia and downstream
9        nitrogen fertilizer products for resale; 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 Property Tax Code is amended by changing
6Section 18-165 as follows:
 
7    (35 ILCS 200/18-165)
8    Sec. 18-165. Abatement of taxes.
9    (a) Any taxing district, upon a majority vote of its
10governing authority, may, after the determination of the
11assessed valuation of its property, order the clerk of that
12county to abate any portion of its taxes on the following types
13of property:
14        (1) Commercial and industrial.
15            (A) The property of any commercial or industrial
16        firm, including but not limited to the property of (i)
17        any firm that is used for collecting, separating,
18        storing, or processing recyclable materials, locating
19        within the taxing district during the immediately
20        preceding year from another state, territory, or
21        country, or having been newly created within this State
22        during the immediately preceding year, or expanding an
23        existing facility, or (ii) any firm that is used for
24        the generation and transmission of electricity

 

 

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1        locating within the taxing district during the
2        immediately preceding year or expanding its presence
3        within the taxing district during the immediately
4        preceding year by construction of a new electric
5        generating facility that uses natural gas as its fuel,
6        or any firm that is used for production operations at a
7        new, expanded, or reopened coal mine within the taxing
8        district, that has been certified as a High Impact
9        Business by the Illinois Department of Commerce and
10        Economic Opportunity. The property of any firm used for
11        the generation and transmission of electricity shall
12        include all property of the firm used for transmission
13        facilities as defined in Section 5.5 of the Illinois
14        Enterprise Zone Act. The abatement shall not exceed a
15        period of 10 years and the aggregate amount of abated
16        taxes for all taxing districts combined shall not
17        exceed $4,000,000.
18            (A-5) Any property in the taxing district of a new
19        electric generating facility, as defined in Section
20        605-332 of the Department of Commerce and Economic
21        Opportunity Law of the Civil Administrative Code of
22        Illinois. The abatement shall not exceed a period of 10
23        years. The abatement shall be subject to the following
24        limitations:
25                (i) if the equalized assessed valuation of the
26            new electric generating facility is equal to or

 

 

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

 

 

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1            the new electric generating facility is equal to or
2            greater than $100,000,000 but less than
3            $125,000,000, then the abatement may not exceed
4            (i) over the entire term of the abatement, 30% of
5            the taxing district's aggregate taxes from the new
6            electric generating facility and (ii) in any one
7            year of abatement, 60% of the taxing district's
8            taxes from the new electric generating facility;
9                (v) if the equalized assessed valuation of the
10            new electric generating facility is equal to or
11            greater than $125,000,000 but less than
12            $150,000,000, then the abatement may not exceed
13            (i) over the entire term of the abatement, 40% of
14            the taxing district's aggregate taxes from the new
15            electric generating facility and (ii) in any one
16            year of abatement, 60% of the taxing district's
17            taxes from the new electric generating facility;
18                (vi) if the equalized assessed valuation of
19            the new electric generating facility is equal to or
20            greater than $150,000,000, then the abatement may
21            not exceed (i) over the entire term of the
22            abatement, 50% of the taxing district's aggregate
23            taxes from the new electric generating facility
24            and (ii) in any one year of abatement, 60% of the
25            taxing district's taxes from the new electric
26            generating facility.

 

 

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1            The abatement is not effective unless the owner of
2        the new electric generating facility agrees to repay to
3        the taxing district all amounts previously abated,
4        together with interest computed at the rate and in the
5        manner provided for delinquent taxes, in the event that
6        the owner of the new electric generating facility
7        closes the new electric generating facility before the
8        expiration of the entire term of the abatement.
9            The authorization of taxing districts to abate
10        taxes under this subdivision (a)(1)(A-5) expires on
11        January 1, 2010.
12            (B) The property of any commercial or industrial
13        development of at least 225 500 acres having been
14        created within the taxing district. The abatement
15        shall not exceed a period of 20 years and the aggregate
16        amount of abated taxes for all taxing districts
17        combined shall not exceed $12,000,000.
18            (C) The property of any commercial or industrial
19        firm currently located in the taxing district that
20        expands a facility or its number of employees. The
21        abatement shall not exceed a period of 10 years and the
22        aggregate amount of abated taxes for all taxing
23        districts combined shall not exceed $4,000,000. The
24        abatement period may be renewed at the option of the
25        taxing districts.
26        (2) Horse racing. Any property in the taxing district

 

 

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

 

 

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

 

 

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1    amendatory Act of the 92nd General Assembly, any property
2    or a portion of any property in a taxing district that is
3    used by an eligible business for a corporate headquarters
4    as defined in the Corporate Headquarters Relocation Act.
5    Instead of an abatement under this paragraph (8), a taxing
6    district may enter into an agreement with an eligible
7    business to make annual payments to that eligible business
8    in an amount not to exceed the property taxes paid directly
9    or indirectly by that eligible business to the taxing
10    district and any other taxing districts for premises
11    occupied pursuant to a written lease and may make those
12    payments without the need for an annual appropriation. No
13    school district, however, may enter into an agreement with,
14    or abate taxes for, an eligible business unless the
15    municipality in which the corporate headquarters is
16    located agrees to provide funding to the school district in
17    an amount equal to the amount abated or paid by the school
18    district as provided in this paragraph (8). Any abatement
19    ordered or agreement entered into under this paragraph (8)
20    may be effective for the entire term specified by the
21    taxing district, except the term of the abatement or annual
22    payments may not exceed 20 years.
23        (9) United States Military Public/Private Residential
24    Developments. Each building, structure, or other
25    improvement designed, financed, constructed, renovated,
26    managed, operated, or maintained after January 1, 2006

 

 

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1    under a "PPV Lease", as set forth under Division 14 of
2    Article 10, and any such PPV Lease.
3        (10) Property located in a business corridor that
4    qualifies for an abatement under Section 18-184.10.
5    (b) Upon a majority vote of its governing authority, any
6municipality may, after the determination of the assessed
7valuation of its property, order the county clerk to abate any
8portion of its taxes on any property that is located within the
9corporate limits of the municipality in accordance with Section
108-3-18 of the Illinois Municipal Code.
11(Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12;
1297-636, eff. 6-1-12.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".