Illinois General Assembly - Full Text of HB1336
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Full Text of HB1336  98th General Assembly

HB1336 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1336

 

Introduced , by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3965/3  from Ch. 127, par. 3953
20 ILCS 3965/4  from Ch. 127, par. 3954
35 ILCS 10/5-5
35 ILCS 10/5-10
35 ILCS 10/5-20
35 ILCS 10/5-25
35 ILCS 10/5-40
35 ILCS 10/5-45
35 ILCS 10/5-50
35 ILCS 10/5-70

    Amends the Illinois Economic Development Board Act and the Economic Development for a Growing Economy Tax Credit Act to provide that EDGE Agreements are subject to the approval of the Illinois Economic Development Board (instead of the Illinois Business Investment Committee). Provides that the Illinois Business Investment Committee is dissolved on the effective date of the amendatory Act and all duties and responsibilities of the Committee shall be assumed by the Illinois Economic Development Board. Sets forth the membership of the Illinois Economic Development Board. Provides that the Director of Revenue and the Auditor General shall also serve as ex officio members of the Board. Sets forth the powers of the Board. Removes provisions requiring Applicants to make certain capital investments. Changes the duration of the credit from 10 years to 5 years. Provides that the credit may not exceed the lesser of the incremental income tax attributable to the project or $10,000 per New Employee. Provides that no more than $100,000,000 in credits may be awarded in State Fiscal Year 2014 or any State fiscal year thereafter. Makes other changes.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1336LRB098 07447 HLH 37515 b

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 Economic Development Board Act is
5amended by changing Sections 3 and 4 as follows:
 
6    (20 ILCS 3965/3)  (from Ch. 127, par. 3953)
7    Sec. 3. Illinois Economic Development Board; composition.
8The board shall be composed of citizens from both the private
9and public sectors who are actively engaged in organizations
10and businesses that support economic expansion, industry
11enhancement and job creation. The board shall be composed of 9
12members appointed by the Governor, with the advice and consent
13of the Senate. Each member shall have experience in accounting
14or finance. Members shall be appointed so that no more than 5
15members are affiliated with the same political party. the
16following persons:
17        (a) the Governor or his or her designee;
18        (b) four members of the General Assembly, one each
19    appointed by the President of the Senate, the Speaker of
20    the House of Representatives, and the minority leaders of
21    the Senate and House of Representatives;
22        (c) 20 members appointed by the Governor including
23    representatives of small business, minority owned

 

 

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1    companies, women owned companies, manufacturing, economic
2    development professionals, and citizens at large.
3        (d) (blank);
4        (e) (blank);
5        (f) (blank);
6        (g) (blank);
7        (h) (blank);
8        (i) (blank);
9        (j) (blank);
10        (k) (blank);
11        (l) (blank);
12        (m) (blank).
13    The Director of Commerce and Economic Opportunity, the
14Director of Revenue, and the Auditor General shall serve as
15ex-officio members an ex officio member of the board.
16    The Governor shall appoint the members of the board
17specified in subsection (c) of this Section, subject to the
18advice and consent of the Senate, within 30 days after the
19effective date of this amendatory Act of the 98th General
20Assembly Act. The first meeting of the board shall occur within
2160 days after the effective date of this amendatory Act of the
2298th General Assembly Act.
23    The Governor shall appoint a chairperson and a vice
24chairperson of the board. Members shall serve 8-year terms.
252-year terms. The position of a legislative member shall become
26vacant if the member ceases to be a member of the General

 

 

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1Assembly. A vacancy in a board position shall be filled by the
2original appointing authority.
3    The board shall include representation from each of the
4State's geographic areas.
5    The board shall meet quarterly or at the call of the chair
6and shall create subcommittees as needed to deal with specific
7issues and concerns. Members shall serve without compensation
8but may be reimbursed for expenses.
9(Source: P.A. 94-793, eff. 5-19-06; 95-331, eff. 8-21-07.)
 
10    (20 ILCS 3965/4)  (from Ch. 127, par. 3954)
11    Sec. 4. The board has the following responsibilities and
12powers:
13    (a) (blank); to secure and encourage substantial private
14sector, community and citizen support in the analysis of
15economic development opportunities and development of specific
16recommendations for economic growth;
17    (b) (blank); to assist the Department's research efforts to
18identify and analyze key businesses and industries to determine
19their potential for expansion, diversification and production
20of value-added goods;
21    (c) (blank); to propose an appropriate State role in new
22product development, venture capital formation and research
23and development;
24    (d) to evaluate the performance of existing State economic
25development efforts for consistency, effectiveness and

 

 

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1coordination, as well as for their effect on job creation, and
2to evaluate the long-term benefits to the State of these
3efforts;
4    (e) (blank); to propose, along with other State, local and
5private groups, new methods to increase public and private
6partnerships to foster economic development efforts;
7    (f) (blank); assist the Department's efforts to develop a
8long-term economic development strategy based on consensus
9goals and principles, an in-depth analysis of market
10opportunities, private sector support and investment, and
11specific private and public economic development measures that
12have a substantial potential to increase employment;
13    (g) (blank); assist the Department's efforts to study the
14key components of the State's business climate as they relate
15to the long-term development strategy including, but not
16limited to, education and training, energy, existing
17environmental conditions, research and development, capital,
18land, transportation, advanced communications, taxes and
19regulations with an analysis of their linkages to the State's
20economy;
21    (h) (blank); to review the various economic development
22policy recommendations made by other agencies or organizations
23and recommend to the Governor and legislature those strategies,
24policies and programs it deems to be in the best interest of
25the State by January 1, 1991, and thereafter by January 1 of
26each year; and

 

 

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1    (i) (blank); to make specific recommendations for the
2establishment of public-private cooperative efforts in
3economic development and State-local cooperative efforts,
4including, but not limited to, the need for establishing formal
5working relationships, whether by contract or otherwise, for
6purposes of engaging in joint, cooperative economic
7development activities.
8    (j) to approve or reject applications for credits under the
9Economic Development for a Growing Economy Tax Credit Act; and
10    (k) to evaluate whether or not credits awarded under the
11Economic Development for a Growing Economy Tax Credit Act are
12meeting their public policy objectives, and to make
13recommendations to the Department, the Governor, and the
14General Assembly for improvements to the Economic Development
15for a Growing Economy Tax Credit program.
16(Source: P.A. 86-1430.)
 
17    Section 10. The Economic Development for a Growing Economy
18Tax Credit Act is amended by changing Sections 5-5, 5-10, 5-20,
195-25, 5-40, 5-45, 5-50, and 5-70 as follows:
 
20    (35 ILCS 10/5-5)
21    Sec. 5-5. Definitions. As used in this Act:
22    "Agreement" means the Agreement between a Taxpayer and the
23Department under the provisions of Section 5-50 of this Act.
24    "Applicant" means a Taxpayer that is operating a business

 

 

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1located or that the Taxpayer plans to locate within the State
2of Illinois and that is engaged in interstate or intrastate
3commerce for the purpose of manufacturing, processing,
4assembling, warehousing, or distributing products, conducting
5research and development, providing tourism services,
6providing professional services, or providing services in
7interstate commerce, office industries, or agricultural
8processing, but excluding retail, retail food, or health, or
9professional services. "Applicant" does not include a Taxpayer
10who closes or substantially reduces an operation at one
11location in the State and relocates substantially the same
12operation to another location in the State. This does not
13prohibit a Taxpayer from expanding its operations at another
14location in the State, provided that existing operations of a
15similar nature located within the State are not closed or
16substantially reduced. This also does not prohibit a Taxpayer
17from moving its operations from one location in the State to
18another location in the State for the purpose of expanding the
19operation provided that the Department determines that
20expansion cannot reasonably be accommodated within the
21municipality in which the business is located, or in the case
22of a business located in an incorporated area of the county,
23within the county in which the business is located, after
24conferring with the chief elected official of the municipality
25or county and taking into consideration any evidence offered by
26the municipality or county regarding the ability to accommodate

 

 

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1expansion within the municipality or county.
2    "Board" means the Illinois Economic Development Board
3created under Section 2 of the Illinois Economic Development
4Board Act.
5    "Committee" means the Illinois Business Investment
6Committee created under Section 5-25 of this Act within the
7Illinois Economic Development Board.
8    "Credit" means the amount agreed to between the Department
9and Applicant under this Act, but not to exceed the Incremental
10Income Tax attributable to the Applicant's project or $10,000
11per New Employee, whichever is less.
12    "Department" means the Department of Commerce and Economic
13Opportunity.
14    "Director" means the Director of Commerce and Economic
15Opportunity.
16    "Full-time Employee" means an individual who is employed
17for consideration for at least 35 hours each week or who
18renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. An
20individual for whom a W-2 is issued by a Professional Employer
21Organization (PEO) is a full-time employee if employed in the
22service of the Applicant for consideration for at least 35
23hours each week or who renders any other standard of service
24generally accepted by industry custom or practice as full-time
25employment to Applicant. With respect to Agreements entered
26into on or after the effective date of this amendatory Act of

 

 

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1the 98th General Assembly, an individual shall not be
2considered a full-time employee unless he or she receives a
3salary or other consideration from the Applicant that is equal
4to or greater than the median salary, as determined by the
5Bureau of Labor Statistics of the United States Department of
6Labor in the most recent Occupation Employment Statistics (OES)
7survey, for that individual's occupation and the metropolitan
8or nonmetropolitan statistical area in which that individual is
9employed.
10    "Incremental Income Tax" means the total amount withheld
11during the taxable year from the compensation of New Employees
12under Article 7 of the Illinois Income Tax Act arising from
13employment at a project that is the subject of an Agreement.
14    "New Employee" means:
15        (a) A Full-time Employee first employed by a Taxpayer
16    in the project that is the subject of an Agreement and who
17    is hired after the Taxpayer enters into the tax credit
18    Agreement.
19        (b) The term "New Employee" does not include:
20            (1) an employee of the Taxpayer who performs a job
21        that was previously performed by another employee, if
22        that job existed for at least 6 months before hiring
23        the employee;
24            (2) an employee of the Taxpayer who was previously
25        employed in Illinois by a Related Member of the
26        Taxpayer and whose employment was shifted to the

 

 

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1        Taxpayer after the Taxpayer entered into the tax credit
2        Agreement; or
3            (3) a child, grandchild, parent, or spouse, other
4        than a spouse who is legally separated from the
5        individual, of any individual who has a direct or an
6        indirect ownership interest of at least 5% in the
7        profits, capital, or value of the Taxpayer.
8        (c) Notwithstanding paragraph (1) of subsection (b),
9    an employee may be considered a New Employee under the
10    Agreement if the employee performs a job that was
11    previously performed by an employee who was:
12            (1) treated under the Agreement as a New Employee;
13        and
14            (2) promoted by the Taxpayer to another job.
15        (d) Notwithstanding subsection (a), the Department may
16    award Credit to an Applicant with respect to an employee
17    hired prior to the date of the Agreement if:
18            (1) the Applicant is in receipt of a letter from
19        the Department stating an intent to enter into a credit
20        Agreement;
21            (2) the letter described in paragraph (1) is issued
22        by the Department not later than 15 days after the
23        effective date of this Act; and
24            (3) the employee was hired after the date the
25        letter described in paragraph (1) was issued.
26    "Noncompliance Date" means, in the case of a Taxpayer that

 

 

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1is not complying with the requirements of the Agreement or the
2provisions of this Act, the day following the last date upon
3which the Taxpayer was in compliance with the requirements of
4the Agreement and the provisions of this Act, as determined by
5the Director, pursuant to Section 5-65.
6    "Pass Through Entity" means an entity that is exempt from
7the tax under subsection (b) or (c) of Section 205 of the
8Illinois Income Tax Act.
9    "Professional Employer Organization" (PEO) means an
10employee leasing company, as defined in Section 206.1(A)(2) of
11the Illinois Unemployment Insurance Act.
12    "Related Member" means a person that, with respect to the
13Taxpayer during any portion of the taxable year, is any one of
14the following:
15        (1) An individual stockholder, if the stockholder and
16    the members of the stockholder's family (as defined in
17    Section 318 of the Internal Revenue Code) own directly,
18    indirectly, beneficially, or constructively, in the
19    aggregate, at least 50% of the value of the Taxpayer's
20    outstanding stock.
21        (2) A partnership, estate, or trust and any partner or
22    beneficiary, if the partnership, estate, or trust, and its
23    partners or beneficiaries own directly, indirectly,
24    beneficially, or constructively, in the aggregate, at
25    least 50% of the profits, capital, stock, or value of the
26    Taxpayer.

 

 

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1        (3) A corporation, and any party related to the
2    corporation in a manner that would require an attribution
3    of stock from the corporation to the party or from the
4    party to the corporation under the attribution rules of
5    Section 318 of the Internal Revenue Code, if the Taxpayer
6    owns directly, indirectly, beneficially, or constructively
7    at least 50% of the value of the corporation's outstanding
8    stock.
9        (4) A corporation and any party related to that
10    corporation in a manner that would require an attribution
11    of stock from the corporation to the party or from the
12    party to the corporation under the attribution rules of
13    Section 318 of the Internal Revenue Code, if the
14    corporation and all such related parties own in the
15    aggregate at least 50% of the profits, capital, stock, or
16    value of the Taxpayer.
17        (5) A person to or from whom there is attribution of
18    stock ownership in accordance with Section 1563(e) of the
19    Internal Revenue Code, except, for purposes of determining
20    whether a person is a Related Member under this paragraph,
21    20% shall be substituted for 5% wherever 5% appears in
22    Section 1563(e) of the Internal Revenue Code.
23    "Taxpayer" means an individual, corporation, partnership,
24or other entity that has any Illinois Income Tax liability.
25(Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
 

 

 

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1    (35 ILCS 10/5-10)
2    Sec. 5-10. Powers of the Department. The Department, in
3addition to those powers granted under the Civil Administrative
4Code of Illinois, is granted and shall have all the powers
5necessary or convenient to carry out and effectuate the
6purposes and provisions of this Act, including, but not limited
7to, power and authority to:
8    (a) Promulgate procedures, rules, or regulations deemed
9necessary and appropriate for the administration of the
10programs; establish forms for applications, notifications,
11contracts, or any other agreements; and accept applications at
12any time during the year.
13    (b) Provide and assist Taxpayers pursuant to the provisions
14of this Act, and cooperate with Taxpayers that are parties to
15Agreements to promote, foster, and support economic
16development, capital investment, and job creation or retention
17within the State.
18    (c) Enter into agreements and memoranda of understanding
19for participation of and engage in cooperation with agencies of
20the federal government, local units of government,
21universities, research foundations or institutions, regional
22economic development corporations, or other organizations for
23the purposes of this Act.
24    (d) Gather information and conduct inquiries, in the manner
25and by the methods as it deems desirable, including without
26limitation, gathering information with respect to Applicants

 

 

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1for the purpose of making any designations or certifications
2necessary or desirable or to gather information to assist the
3Board Committee with any recommendation or guidance in the
4furtherance of the purposes of this Act.
5    (e) Establish, negotiate and effectuate any term,
6agreement or other document with any person, necessary or
7appropriate to accomplish the purposes of this Act; and to
8consent, subject to the provisions of any Agreement with
9another party, to the modification or restructuring of any
10Agreement to which the Department is a party, provided that all
11Agreements entered into on or after the effective date of this
12amendatory Act of the 98th General Assembly, and all
13modifications to or restructuring of Agreements occurring on or
14after the effective date of this amendatory Act of the 98th
15General Assembly, require the approval of the Board prior to
16implementation or continuing implementation.
17    (f) Fix, determine, charge, and collect any premiums, fees,
18charges, costs, and expenses from Applicants, including,
19without limitation, any application fees, commitment fees,
20program fees, financing charges, or publication fees as deemed
21appropriate to pay expenses necessary or incident to the
22administration, staffing, or operation in connection with the
23Department's or Board's Committee's activities under this Act,
24or for preparation, implementation, and enforcement of the
25terms of the Agreement, or for consultation, advisory and legal
26fees, and other costs; however, all fees and expenses incident

 

 

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1thereto shall be the responsibility of the Applicant.
2    (g) Provide for sufficient personnel to permit
3administration, staffing, operation, and related support
4required to adequately discharge its duties and
5responsibilities described in this Act from funds made
6available through charges to Applicants or from funds as may be
7appropriated by the General Assembly for the administration of
8this Act.
9    (h) Require Applicants, upon written request, to issue any
10necessary authorization to the appropriate federal, state, or
11local authority for the release of information concerning a
12project being considered under the provisions of this Act, with
13the information requested to include, but not be limited to,
14financial reports, returns, or records relating to the
15Taxpayers' or its project.
16    (i) Require that a Taxpayer shall at all times keep proper
17books of record and account in accordance with generally
18accepted accounting principles consistently applied, with the
19books, records, or papers related to the Agreement in the
20custody or control of the Taxpayer open for reasonable
21Department inspection and audits, and including, without
22limitation, the making of copies of the books, records, or
23papers, and the inspection or appraisal of any of the Taxpayer
24or project assets.
25    (j) Take whatever actions are necessary or appropriate to
26protect the State's interest in the event of bankruptcy,

 

 

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1default, foreclosure, or noncompliance with the terms and
2conditions of financial assistance or participation required
3under this Act, including the power to sell, dispose, lease, or
4rent, upon terms and conditions determined by the Director to
5be appropriate, real or personal property that the Department
6may receive as a result of these actions.
7(Source: P.A. 91-476, eff. 8-11-99.)
 
8    (35 ILCS 10/5-20)
9    Sec. 5-20. Application for a project to create and retain
10new jobs.
11    (a) Any Taxpayer proposing a project located or planned to
12be located in Illinois may request consideration for
13designation of its project, by formal written letter of request
14or by formal application to the Department, in which the
15Applicant states its intent to make at least a specified level
16of investment and intends to hire or retain a specified number
17of full-time employees at a designated location in Illinois.
18The Department shall prepare a standard, formal, written
19application form for all Applicants. All Applicants who apply
20for Credits under this Act on or after the effective date of
21this amendatory Act of the 98th General Assembly shall complete
22that application. As circumstances require, the Department may
23require a formal application from an Applicant and a formal
24letter of request for assistance.
25    (b) In order to qualify for Credits under this Act, an

 

 

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1Applicant's project must employ at least 25 New Employees
2within the State as a direct result of the project, except that
3(i) if the Applicant has 100 or fewer employees, then the
4Applicant must employ at least 5 New Employees within the State
5as a direct result of the project, and (ii) if the Department
6and the Board determine that the project will provide a
7substantial economic benefit to the State, then the Applicant
8may employ fewer than 25 New Employees within the State. If an
9Applicant's project employs fewer than 25 New Employees under
10item (ii) of this subsection (b), then the Department and the
11Board must expressly specify the minimum number of New
12Employees that the Applicant is required to employ. If, in any
13taxable year during which an Agreement is in effect, the total
14number of employees employed by the Taxpayer in Illinois is
15less than the total number of employees employed the Taxpayer
16in Illinois during the previous taxable year, the Taxpayer
17shall be deemed to be in noncompliance with the Agreement. :
18        (1) involve an investment of at least $5,000,000 in
19    capital improvements to be placed in service and to employ
20    at least 25 New Employees within the State as a direct
21    result of the project;
22        (2) involve an investment of at least an amount (to be
23    expressly specified by the Department and the Committee) in
24    capital improvements to be placed in service and will
25    employ at least an amount (to be expressly specified by the
26    Department and the Committee) of New Employees within the

 

 

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1    State, provided that the Department and the Committee have
2    determined that the project will provide a substantial
3    economic benefit to the State; or
4        (3) if the applicant has 100 or fewer employees,
5    involve an investment of at least $1,000,000 in capital
6    improvements to be placed in service and to employ at least
7    5 New Employees within the State as a direct result of the
8    project.
9    (c) After receipt of an application, the Department may
10enter into an Agreement with the Applicant if the application
11is accepted in accordance with Section 5-25 and the Agreement
12is approved by the Board.
13(Source: P.A. 93-882, eff. 1-1-05.)
 
14    (35 ILCS 10/5-25)
15    Sec. 5-25. Review of Application.
16    (a) In addition to those duties granted under the Illinois
17Economic Development Board Act, the Illinois Economic
18Development Board shall form a Business Investment Committee
19for the purpose of making recommendations for applications. At
20the request of the Board, the Director of Commerce and Economic
21Opportunity or his or her designee, the Director of the
22Governor's Office of Management and Budget or his or her
23designee, the Director of Revenue or his or her designee, the
24Director of Employment Security or his or her designee, and an
25elected official of the affected locality, such as the chair of

 

 

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1the county board or the mayor, may serve as members of the
2Committee to assist with its analysis and deliberations. The
3Business Investment Committee shall be dissolved on the
4effective date of this amendatory Act of the 98th General
5Assembly, and the duties and responsibilities of the Committee
6shall be assumed by the Board.
7    (b) At the Department's request, the Board Committee shall
8convene, make inquiries, and conduct studies in the manner and
9by the methods as it deems desirable, review information with
10respect to Applicants, and make recommendations for projects to
11benefit the State. In making its recommendation that an
12Applicant's application for Credit should or should not be
13accepted, which shall occur within a reasonable time frame as
14determined by the nature of the application, the Board
15Committee shall determine that all the following conditions
16exist:
17        (1) The Applicant Applicant's project intends, as
18    required by subsection (b) of Section 5-20 to make the
19    required investment in the State and intends to hire the
20    required number of New Employees in Illinois as a result of
21    that project.
22        (2) The Applicant's project is economically sound and
23    will benefit the people of the State of Illinois by
24    increasing opportunities for employment and strengthen the
25    economy of Illinois.
26        (3) That, if not for the Credit, the project would not

 

 

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1    occur in Illinois, which may be demonstrated by any means
2    including, but not limited to, evidence the Applicant has
3    multi-state location options and could reasonably and
4    efficiently locate outside of the State, or demonstration
5    that at least one other state is being considered for the
6    project, or evidence the receipt of the Credit is a major
7    factor in the Applicant's decision and that without the
8    Credit, the Applicant likely would not create new jobs in
9    Illinois, or demonstration that receiving the Credit is
10    essential to the Applicant's decision to create or retain
11    new jobs in the State.
12        (4) A cost differential is identified, using best
13    available data, in the projected costs for the Applicant's
14    project compared to the costs in the competing state,
15    including the impact of the competing state's incentive
16    programs. The competing state's incentive programs shall
17    include state, local, private, and federal funds
18    available.
19        (5) The political subdivisions affected by the project
20    have committed local incentives with respect to the
21    project, considering local ability to assist.
22        (6) Awarding the Credit will result in an overall
23    positive fiscal impact to the State, as certified by the
24    Board Committee using the best available data.
25        (7) The Credit is not prohibited by Section 5-35 of
26    this Act.

 

 

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1(Source: P.A. 94-793, eff. 5-19-06.)
 
2    (35 ILCS 10/5-40)
3    Sec. 5-40. Determination of Amount of the Credit. In
4determining the amount of the Credit that should be awarded,
5the Board Committee shall provide guidance on, and the
6Department shall take into consideration, the following
7factors:
8        (1) The number and location of jobs created and
9    retained in relation to the economy of the county where the
10    projected investment is to occur.
11        (2) The potential impact on the economy of Illinois.
12        (3) The magnitude of the cost differential between
13    Illinois and the competing state.
14        (4) The incremental payroll attributable to the
15    project.
16        (5) (Blank). The capital investment attributable to
17    the project.
18        (6) The amount of the average wage and benefits paid by
19    the Applicant in relation to the wage and benefits of the
20    area of the project.
21        (7) The costs to Illinois and the affected political
22    subdivisions with respect to the project.
23        (8) The financial assistance that is otherwise
24    provided by Illinois and the affected political
25    subdivisions.

 

 

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1        (9) Whether the Applicant's proposed credit per job is
2    lower or higher than other past credits awarded.
3        (10) Whether the Applicant's proposed credit per job is
4    lower or higher than other Applicants.
5(Source: P.A. 91-476, eff. 8-11-99.)
 
6    (35 ILCS 10/5-45)
7    Sec. 5-45. Amount and duration of the credit.
8    (a) Subject to the approval of the Board, the The
9Department shall determine the amount and duration of the
10credit awarded under this Act. The duration of the credit may
11not exceed 5 10 taxable years. The credit may be stated as a
12percentage of the Incremental Income Tax attributable to the
13applicant's project and may include a fixed dollar limitation.
14    (b) Notwithstanding subsection (a), and except as the
15credit may be applied in a carryover year pursuant to Section
16211(4) of the Illinois Income Tax Act, the credit may be
17applied against the State income tax liability in more than 5
1810 taxable years but not in more than 10 15 taxable years for
19an eligible business that (i) qualifies under this Act and the
20Corporate Headquarters Relocation Act and has in fact
21undertaken a qualifying project within the time frame specified
22by the Department of Commerce and Economic Opportunity under
23that Act, and (ii) applies against its State income tax
24liability, during the entire 10-year 15-year period, no more
25than 60% of the maximum credit per year that would otherwise be

 

 

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1available under this Act.
2    (c) Notwithstanding any other provision of law, no more
3than $100,000,000 in credits may be awarded under this Act in
4State Fiscal Year 2014. In each State fiscal year thereafter,
5the total amount of credits that may be awarded under this Act
6shall be increased by the percentage increase, if any, in the
7Consumer Price Index for All Urban Consumers, as issued by the
8United States Department of Labor, Bureau of Labor Statistics,
9during the 12-month calendar year immediately preceding that
10State fiscal year. This limitation does not apply to amounts
11that are carried forward under Section 211 of the Illinois
12Income Tax Act.
13(Source: P.A. 94-793, eff. 5-19-06.)
 
14    (35 ILCS 10/5-50)
15    Sec. 5-50. Contents of Agreements with Applicants. The
16Department shall enter into an Agreement with an Applicant that
17is awarded a Credit under this Act. The Agreement must include
18all of the following:
19        (1) A detailed description of the project that is the
20    subject of the Agreement, including the location and amount
21    of the investment and the number of jobs created or
22    retained.
23        (2) The duration of the Credit and the first taxable
24    year for which the Credit may be claimed.
25        (3) The Credit amount that will be allowed for each

 

 

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1    taxable year.
2        (4) A requirement that the Taxpayer shall maintain
3    operations at the project location that shall be stated as
4    a minimum number of years not to exceed 5 10.
5        (5) A specific method for determining the number of New
6    Employees employed during a taxable year.
7        (6) A requirement that the Taxpayer shall annually
8    report to the Department the number of New Employees, the
9    Incremental Income Tax withheld in connection with the New
10    Employees, and any other information the Director needs to
11    perform the Director's duties under this Act.
12        (7) A requirement that the Director is authorized to
13    verify with the appropriate State agencies the amounts
14    reported under paragraph (6), and after doing so shall
15    issue a certificate to the Taxpayer stating that the
16    amounts have been verified.
17        (8) A requirement that the Taxpayer shall provide
18    written notification to the Director not more than 30 days
19    after the Taxpayer makes or receives a proposal that would
20    transfer the Taxpayer's State tax liability obligations to
21    a successor Taxpayer.
22        (9) A detailed description of the number of New
23    Employees to be hired, and the occupation and payroll of
24    the full-time jobs to be created or retained as a result of
25    the project.
26        (10) (Blank). The minimum investment the business

 

 

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1    enterprise will make in capital improvements, the time
2    period for placing the property in service, and the
3    designated location in Illinois for the investment.
4        (11) A requirement that the Taxpayer shall provide
5    written notification to the Director and the Board
6    Committee not more than 30 days after the Taxpayer
7    determines that the minimum job creation or retention,
8    employment payroll, or investment, if applicable, no
9    longer is being or will be achieved or maintained as set
10    forth in the terms and conditions of the Agreement.
11        (12) A provision that, if the total number of New
12    Employees falls below a specified level, the allowance of
13    Credit shall be suspended until the number of New Employees
14    equals or exceeds the Agreement amount.
15        (13) A detailed description of the items for which the
16    costs incurred by the Taxpayer will be included in the
17    limitation on the Credit provided in Section 5-30.
18        (13.5) A provision that, if the Taxpayer never meets
19    either the investment or job creation and retention
20    requirements specified in the Agreement during the entire
21    5-year period beginning on the first day of the first
22    taxable year in which the Agreement is executed and ending
23    on the last day of the fifth taxable year after the
24    Agreement is executed, then the Agreement is automatically
25    terminated on the last day of the fifth taxable year after
26    the Agreement is executed and the Taxpayer is not entitled

 

 

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1    to the award of any credits for any of that 5-year period.
2        (14) Any other performance conditions or contract
3    provisions as the Department determines are appropriate.
4    The Department shall post on its website the terms of each
5Agreement entered into under this Act on or after the effective
6date of this amendatory Act of the 97th General Assembly.
7    Any Agreement entered into on or after the effective date
8of this amendatory Act of the 98th General Assembly is subject
9to the approval of the Board. Any modifications to an existing
10Agreement that take effect on or after the effective date of
11this amendatory Act of the 98th General Assembly are subject to
12the approval of the Board. The Department must forward any
13proposed Agreements or modifications to the Board within 15
14days after the terms of the Agreement or modification are
15finalized.
16(Source: P.A. 97-2, eff. 5-6-11; 97-749, eff. 7-6-12.)
 
17    (35 ILCS 10/5-70)
18    Sec. 5-70. Annual report. On or before July 1 each year,
19the Board Committee shall submit a report to the Department on
20the tax credit program under this Act to the Governor and the
21General Assembly. The report shall include information on the
22number of Agreements that were entered into under this Act
23during the preceding calendar year, a description of the
24project that is the subject of each Agreement, an update on the
25status of projects under Agreements entered into before the

 

 

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1preceding calendar year, and the sum of the Credits awarded
2under this Act. A copy of the report shall be delivered to the
3Governor and to each member of the General Assembly and shall
4be posted on the Department's website.
5(Source: P.A. 91-476, eff. 8-11-99.)