Full Text of SB2252 96th General Assembly
SB2252eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the Green | 5 |
| Energy Business Act. | 6 |
| Section 5. Definitions. As used in this Act, the following | 7 |
| words shall have the meanings ascribed to them below, unless | 8 |
| the context otherwise requires: | 9 |
| "Biodiesel" means a renewable diesel fuel derived from | 10 |
| biomass that is intended for use in diesel engines.
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| "Department" means the Department of Commerce and Economic | 12 |
| Opportunity.
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| "Ethanol" means a product produced from agricultural | 14 |
| commodities or by-products used as a fuel or to be blended with | 15 |
| other fuels for use in motor vehicles.
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| "Green Energy Business" means a business that:
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| (i) produces or manufactures components used in the | 18 |
| production of electricity from renewable energy resources; | 19 |
| (ii) has the capacity to produce and produces at least | 20 |
| 5 megawatts of electricity from renewable energy resources | 21 |
| each year; | 22 |
| (iii) has the capacity to produce and produces no less | 23 |
| than 30,000,000 gallons of biodiesel or ethanol each year. |
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| "Renewable energy resources" means wind energy; solar | 2 |
| thermal energy; photovoltaic cells and panels; biodiesel; | 3 |
| crops; untreated and unadulterated organic waste biomass; | 4 |
| trees and tree trimmings; hydropower that does not involve new | 5 |
| construction or significant expansion of hydropower dams; and | 6 |
| other alternative sources of environmentally preferable | 7 |
| energy. For purposes of this Act, landfill gas produced in the | 8 |
| State is a renewable energy resource, but tires; garbage; | 9 |
| general household, institutional, and commercial waste; | 10 |
| industrial lunchroom or office waste; landscape waste (other | 11 |
| than trees and tree trimmings); railroad crossties; utility | 12 |
| poles; and construction or demolition debris (other than | 13 |
| untreated and unadulterated waste wood) are not. Renewable | 14 |
| energy resources also include any renewable energy credit or | 15 |
| credits associated with or generated by a source of energy that | 16 |
| otherwise qualifies as a renewable energy resource under this | 17 |
| Act. | 18 |
| Section 10. Green Energy Business. | 19 |
| (a) To assist in the encouragement, development, growth, | 20 |
| and expansion of the private sector through green energy | 21 |
| projects, the Department may receive and approve applications | 22 |
| for the designation of "Green Energy Business" in Illinois. | 23 |
| Applications may be submitted at any time. No later than 90 | 24 |
| days after an application is submitted, the Department shall | 25 |
| notify the applicant of the Department's determination as to |
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| the applicant's qualification to be designated as a Green | 2 |
| Energy Business under this Section. To qualify as a Green | 3 |
| Energy Business, a business must meet all of the following | 4 |
| conditions: | 5 |
| (1) It must not be located, at the time of designation, | 6 |
| in an enterprise zone designated under the Illinois | 7 |
| Enterprise Zone Act.
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| (2) It must commit to (i) produce or manufacture | 9 |
| components used in the production of electricity from | 10 |
| renewable energy resources; (ii) produce at least 5 | 11 |
| megawatts of electricity from renewable energy resources | 12 |
| each year; or (iii) produce not less than 30,000,000 | 13 |
| gallons of biodiesel or ethanol each year.
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| (3) It must commit to have the business placed in | 15 |
| service at a qualified property in Illinois.
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| (4) It must certify in writing that (i) the investments | 17 |
| would not be placed in service at a qualified property | 18 |
| without the tax credits and exemptions referenced in | 19 |
| subsection (b) of this Section and (ii) the job creation or | 20 |
| job retention would not occur without the tax credits and | 21 |
| exemptions referenced in subsection (b) of this Section. | 22 |
| The terms "placed in service" and "qualified property" have | 23 |
| the same meanings as described in subsection (h) of Section | 24 |
| 201 of the Illinois Income Tax Act.
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| (5) It must meet any additional criteria established by | 26 |
| the Department.
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| (b) Each business designated as a Green Energy Business by | 2 |
| the Department shall qualify for the credits and exemptions in | 3 |
| Sections 9-222 and 9-222.1A of the Public Utilities Act; | 4 |
| subsection (h) of Section 201 of the Illinois Income Tax Act; | 5 |
| and Section 1d of the Retailers' Occupation Tax Act. Each | 6 |
| business designated as a Green Energy Business under this | 7 |
| Section shall also qualify for the exemption described in | 8 |
| Section 5l of the Retailers' Occupation Tax Act. The credit | 9 |
| provided in subsection (h) of Section 201 of the Illinois | 10 |
| Income Tax Act shall be applicable to investments in qualified | 11 |
| property used to meet the requirements in subdivision (a)(2) of | 12 |
| this Section. | 13 |
| (c) The Department must revoke a Green Energy Business | 14 |
| designation if, within the Department's discretion, the | 15 |
| participating business fails to comply with the terms and | 16 |
| conditions of the designation. | 17 |
| Section 15. Project labor agreements. | 18 |
| (a) Each business designated as a Green Energy Business by | 19 |
| the Department must enter into a project labor agreement. The | 20 |
| project labor agreement must include provisions establishing | 21 |
| (i) the minimum hourly wage for each class of labor | 22 |
| organization employee; (ii) the benefits and other | 23 |
| compensation for each class of labor organization employee; and | 24 |
| (iii) that no strike or disputes will be engaged in by the | 25 |
| labor organization employees; and (iv) that no lockout or |
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| disputes will be engaged in by the owner of a Green Energy | 2 |
| Business. The owner of a Green Energy Business and the labor | 3 |
| organizations shall have the authority to include other terms | 4 |
| and conditions as they deem necessary. | 5 |
| (b) Each project labor agreement shall be filed with the | 6 |
| Director in accordance with the procedures established by the | 7 |
| Department. At a minimum, the project labor agreement must | 8 |
| provide the names, addresses, and occupations of the owner of | 9 |
| the Green Energy Business and the individuals representing the | 10 |
| labor organization employees participating in the project | 11 |
| labor agreement. The agreement must also specify the terms and | 12 |
| conditions required in subsection (a) of this Section. | 13 |
| Section 20. The Illinois Income Tax Act is amended by | 14 |
| changing Section 201 as follows:
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| (35 ILCS 5/201) (from Ch. 120, par. 2-201)
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| Sec. 201. Tax Imposed.
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| (a) In general. A tax measured by net income is hereby | 18 |
| imposed on every
individual, corporation, trust and estate for | 19 |
| each taxable year ending
after July 31, 1969 on the privilege | 20 |
| of earning or receiving income in or
as a resident of this | 21 |
| State. Such tax shall be in addition to all other
occupation or | 22 |
| privilege taxes imposed by this State or by any municipal
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| corporation or political subdivision thereof.
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| (b) Rates. The tax imposed by subsection (a) of this |
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| Section shall be
determined as follows, except as adjusted by | 2 |
| subsection (d-1):
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| (1) In the case of an individual, trust or estate, for | 4 |
| taxable years
ending prior to July 1, 1989, an amount equal | 5 |
| to 2 1/2% of the taxpayer's
net income for the taxable | 6 |
| year.
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| (2) In the case of an individual, trust or estate, for | 8 |
| taxable years
beginning prior to July 1, 1989 and ending | 9 |
| after June 30, 1989, an amount
equal to the sum of (i) 2 | 10 |
| 1/2% of the taxpayer's net income for the period
prior to | 11 |
| July 1, 1989, as calculated under Section 202.3, and (ii) | 12 |
| 3% of the
taxpayer's net income for the period after June | 13 |
| 30, 1989, as calculated
under Section 202.3.
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| (3) In the case of an individual, trust or estate, for | 15 |
| taxable years
beginning after June 30, 1989, an amount | 16 |
| equal to 3% of the taxpayer's net
income for the taxable | 17 |
| year.
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| (4) (Blank).
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| (5) (Blank).
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| (6) In the case of a corporation, for taxable years
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| ending prior to July 1, 1989, an amount equal to 4% of the
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| taxpayer's net income for the taxable year.
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| (7) In the case of a corporation, for taxable years | 24 |
| beginning prior to
July 1, 1989 and ending after June 30, | 25 |
| 1989, an amount equal to the sum of
(i) 4% of the | 26 |
| taxpayer's net income for the period prior to July 1, 1989,
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| as calculated under Section 202.3, and (ii) 4.8% of the | 2 |
| taxpayer's net
income for the period after June 30, 1989, | 3 |
| as calculated under Section
202.3.
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| (8) In the case of a corporation, for taxable years | 5 |
| beginning after
June 30, 1989, an amount equal to 4.8% of | 6 |
| the taxpayer's net income for the
taxable year.
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| (c) Personal Property Tax Replacement Income Tax.
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| Beginning on July 1, 1979 and thereafter, in addition to such | 9 |
| income
tax, there is also hereby imposed the Personal Property | 10 |
| Tax Replacement
Income Tax measured by net income on every | 11 |
| corporation (including Subchapter
S corporations), partnership | 12 |
| and trust, for each taxable year ending after
June 30, 1979. | 13 |
| Such taxes are imposed on the privilege of earning or
receiving | 14 |
| income in or as a resident of this State. The Personal Property
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| Tax Replacement Income Tax shall be in addition to the income | 16 |
| tax imposed
by subsections (a) and (b) of this Section and in | 17 |
| addition to all other
occupation or privilege taxes imposed by | 18 |
| this State or by any municipal
corporation or political | 19 |
| subdivision thereof.
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| (d) Additional Personal Property Tax Replacement Income | 21 |
| Tax Rates.
The personal property tax replacement income tax | 22 |
| imposed by this subsection
and subsection (c) of this Section | 23 |
| in the case of a corporation, other
than a Subchapter S | 24 |
| corporation and except as adjusted by subsection (d-1),
shall | 25 |
| be an additional amount equal to
2.85% of such taxpayer's net | 26 |
| income for the taxable year, except that
beginning on January |
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| 1, 1981, and thereafter, the rate of 2.85% specified
in this | 2 |
| subsection shall be reduced to 2.5%, and in the case of a
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| partnership, trust or a Subchapter S corporation shall be an | 4 |
| additional
amount equal to 1.5% of such taxpayer's net income | 5 |
| for the taxable year.
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| (d-1) Rate reduction for certain foreign insurers. In the | 7 |
| case of a
foreign insurer, as defined by Section 35A-5 of the | 8 |
| Illinois Insurance Code,
whose state or country of domicile | 9 |
| imposes on insurers domiciled in Illinois
a retaliatory tax | 10 |
| (excluding any insurer
whose premiums from reinsurance assumed | 11 |
| are 50% or more of its total insurance
premiums as determined | 12 |
| under paragraph (2) of subsection (b) of Section 304,
except | 13 |
| that for purposes of this determination premiums from | 14 |
| reinsurance do
not include premiums from inter-affiliate | 15 |
| reinsurance arrangements),
beginning with taxable years ending | 16 |
| on or after December 31, 1999,
the sum of
the rates of tax | 17 |
| imposed by subsections (b) and (d) shall be reduced (but not
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| increased) to the rate at which the total amount of tax imposed | 19 |
| under this Act,
net of all credits allowed under this Act, | 20 |
| shall equal (i) the total amount of
tax that would be imposed | 21 |
| on the foreign insurer's net income allocable to
Illinois for | 22 |
| the taxable year by such foreign insurer's state or country of
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| domicile if that net income were subject to all income taxes | 24 |
| and taxes
measured by net income imposed by such foreign | 25 |
| insurer's state or country of
domicile, net of all credits | 26 |
| allowed or (ii) a rate of zero if no such tax is
imposed on such |
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| income by the foreign insurer's state of domicile.
For the | 2 |
| purposes of this subsection (d-1), an inter-affiliate includes | 3 |
| a
mutual insurer under common management.
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| (1) For the purposes of subsection (d-1), in no event | 5 |
| shall the sum of the
rates of tax imposed by subsections | 6 |
| (b) and (d) be reduced below the rate at
which the sum of:
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| (A) the total amount of tax imposed on such foreign | 8 |
| insurer under
this Act for a taxable year, net of all | 9 |
| credits allowed under this Act, plus
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| (B) the privilege tax imposed by Section 409 of the | 11 |
| Illinois Insurance
Code, the fire insurance company | 12 |
| tax imposed by Section 12 of the Fire
Investigation | 13 |
| Act, and the fire department taxes imposed under | 14 |
| Section 11-10-1
of the Illinois Municipal Code,
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| equals 1.25% for taxable years ending prior to December 31, | 16 |
| 2003, or
1.75% for taxable years ending on or after | 17 |
| December 31, 2003, of the net
taxable premiums written for | 18 |
| the taxable year,
as described by subsection (1) of Section | 19 |
| 409 of the Illinois Insurance Code.
This paragraph will in | 20 |
| no event increase the rates imposed under subsections
(b) | 21 |
| and (d).
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| (2) Any reduction in the rates of tax imposed by this | 23 |
| subsection shall be
applied first against the rates imposed | 24 |
| by subsection (b) and only after the
tax imposed by | 25 |
| subsection (a) net of all credits allowed under this | 26 |
| Section
other than the credit allowed under subsection (i) |
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| has been reduced to zero,
against the rates imposed by | 2 |
| subsection (d).
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| This subsection (d-1) is exempt from the provisions of | 4 |
| Section 250.
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| (e) Investment credit. A taxpayer shall be allowed a credit
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| against the Personal Property Tax Replacement Income Tax for
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| investment in qualified property.
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| (1) A taxpayer shall be allowed a credit equal to .5% | 9 |
| of
the basis of qualified property placed in service during | 10 |
| the taxable year,
provided such property is placed in | 11 |
| service on or after
July 1, 1984. There shall be allowed an | 12 |
| additional credit equal
to .5% of the basis of qualified | 13 |
| property placed in service during the
taxable year, | 14 |
| provided such property is placed in service on or
after | 15 |
| July 1, 1986, and the taxpayer's base employment
within | 16 |
| Illinois has increased by 1% or more over the preceding | 17 |
| year as
determined by the taxpayer's employment records | 18 |
| filed with the
Illinois Department of Employment Security. | 19 |
| Taxpayers who are new to
Illinois shall be deemed to have | 20 |
| met the 1% growth in base employment for
the first year in | 21 |
| which they file employment records with the Illinois
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| Department of Employment Security. The provisions added to | 23 |
| this Section by
Public Act 85-1200 (and restored by Public | 24 |
| Act 87-895) shall be
construed as declaratory of existing | 25 |
| law and not as a new enactment. If,
in any year, the | 26 |
| increase in base employment within Illinois over the
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| preceding year is less than 1%, the additional credit shall | 2 |
| be limited to that
percentage times a fraction, the | 3 |
| numerator of which is .5% and the denominator
of which is | 4 |
| 1%, but shall not exceed .5%. The investment credit shall | 5 |
| not be
allowed to the extent that it would reduce a | 6 |
| taxpayer's liability in any tax
year below zero, nor may | 7 |
| any credit for qualified property be allowed for any
year | 8 |
| other than the year in which the property was placed in | 9 |
| service in
Illinois. For tax years ending on or after | 10 |
| December 31, 1987, and on or
before December 31, 1988, the | 11 |
| credit shall be allowed for the tax year in
which the | 12 |
| property is placed in service, or, if the amount of the | 13 |
| credit
exceeds the tax liability for that year, whether it | 14 |
| exceeds the original
liability or the liability as later | 15 |
| amended, such excess may be carried
forward and applied to | 16 |
| the tax liability of the 5 taxable years following
the | 17 |
| excess credit years if the taxpayer (i) makes investments | 18 |
| which cause
the creation of a minimum of 2,000 full-time | 19 |
| equivalent jobs in Illinois,
(ii) is located in an | 20 |
| enterprise zone established pursuant to the Illinois
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| Enterprise Zone Act and (iii) is certified by the | 22 |
| Department of Commerce
and Community Affairs (now | 23 |
| Department of Commerce and Economic Opportunity) as | 24 |
| complying with the requirements specified in
clause (i) and | 25 |
| (ii) by July 1, 1986. The Department of Commerce and
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| Community Affairs (now Department of Commerce and Economic |
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| Opportunity) shall notify the Department of Revenue of all | 2 |
| such
certifications immediately. For tax years ending | 3 |
| after December 31, 1988,
the credit shall be allowed for | 4 |
| the tax year in which the property is
placed in service, | 5 |
| or, if the amount of the credit exceeds the tax
liability | 6 |
| for that year, whether it exceeds the original liability or | 7 |
| the
liability as later amended, such excess may be carried | 8 |
| forward and applied
to the tax liability of the 5 taxable | 9 |
| years following the excess credit
years. The credit shall | 10 |
| be applied to the earliest year for which there is
a | 11 |
| liability. If there is credit from more than one tax year | 12 |
| that is
available to offset a liability, earlier credit | 13 |
| shall be applied first.
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| (2) The term "qualified property" means property | 15 |
| which:
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| (A) is tangible, whether new or used, including | 17 |
| buildings and structural
components of buildings and | 18 |
| signs that are real property, but not including
land or | 19 |
| improvements to real property that are not a structural | 20 |
| component of a
building such as landscaping, sewer | 21 |
| lines, local access roads, fencing, parking
lots, and | 22 |
| other appurtenances;
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| (B) is depreciable pursuant to Section 167 of the | 24 |
| Internal Revenue Code,
except that "3-year property" | 25 |
| as defined in Section 168(c)(2)(A) of that
Code is not | 26 |
| eligible for the credit provided by this subsection |
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| (e);
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| (C) is acquired by purchase as defined in Section | 3 |
| 179(d) of
the Internal Revenue Code;
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| (D) is used in Illinois by a taxpayer who is | 5 |
| primarily engaged in
manufacturing, or in mining coal | 6 |
| or fluorite, or in retailing, or was placed in service | 7 |
| on or after July 1, 2006 in a River Edge Redevelopment | 8 |
| Zone established pursuant to the River Edge | 9 |
| Redevelopment Zone Act; and
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| (E) has not previously been used in Illinois in | 11 |
| such a manner and by
such a person as would qualify for | 12 |
| the credit provided by this subsection
(e) or | 13 |
| subsection (f).
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| (3) For purposes of this subsection (e), | 15 |
| "manufacturing" means
the material staging and production | 16 |
| of tangible personal property by
procedures commonly | 17 |
| regarded as manufacturing, processing, fabrication, or
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| assembling which changes some existing material into new | 19 |
| shapes, new
qualities, or new combinations. For purposes of | 20 |
| this subsection
(e) the term "mining" shall have the same | 21 |
| meaning as the term "mining" in
Section 613(c) of the | 22 |
| Internal Revenue Code. For purposes of this subsection
(e), | 23 |
| the term "retailing" means the sale of tangible personal | 24 |
| property or
services rendered in conjunction with the sale | 25 |
| of tangible consumer goods
or commodities.
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| (4) The basis of qualified property shall be the basis
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| used to compute the depreciation deduction for federal | 2 |
| income tax purposes.
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| (5) If the basis of the property for federal income tax | 4 |
| depreciation
purposes is increased after it has been placed | 5 |
| in service in Illinois by
the taxpayer, the amount of such | 6 |
| increase shall be deemed property placed
in service on the | 7 |
| date of such increase in basis.
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| (6) The term "placed in service" shall have the same
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| meaning as under Section 46 of the Internal Revenue Code.
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| (7) If during any taxable year, any property ceases to
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| be qualified property in the hands of the taxpayer within | 12 |
| 48 months after
being placed in service, or the situs of | 13 |
| any qualified property is
moved outside Illinois within 48 | 14 |
| months after being placed in service, the
Personal Property | 15 |
| Tax Replacement Income Tax for such taxable year shall be
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| increased. Such increase shall be determined by (i) | 17 |
| recomputing the
investment credit which would have been | 18 |
| allowed for the year in which
credit for such property was | 19 |
| originally allowed by eliminating such
property from such | 20 |
| computation and, (ii) subtracting such recomputed credit
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| from the amount of credit previously allowed. For the | 22 |
| purposes of this
paragraph (7), a reduction of the basis of | 23 |
| qualified property resulting
from a redetermination of the | 24 |
| purchase price shall be deemed a disposition
of qualified | 25 |
| property to the extent of such reduction.
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| (8) Unless the investment credit is extended by law, |
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| the
basis of qualified property shall not include costs | 2 |
| incurred after
December 31, 2008, except for costs incurred | 3 |
| pursuant to a binding
contract entered into on or before | 4 |
| December 31, 2008.
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| (9) Each taxable year ending before December 31, 2000, | 6 |
| a partnership may
elect to pass through to its
partners the | 7 |
| credits to which the partnership is entitled under this | 8 |
| subsection
(e) for the taxable year. A partner may use the | 9 |
| credit allocated to him or her
under this paragraph only | 10 |
| against the tax imposed in subsections (c) and (d) of
this | 11 |
| Section. If the partnership makes that election, those | 12 |
| credits shall be
allocated among the partners in the | 13 |
| partnership in accordance with the rules
set forth in | 14 |
| Section 704(b) of the Internal Revenue Code, and the rules
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| promulgated under that Section, and the allocated amount of | 16 |
| the credits shall
be allowed to the partners for that | 17 |
| taxable year. The partnership shall make
this election on | 18 |
| its Personal Property Tax Replacement Income Tax return for
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| that taxable year. The election to pass through the credits | 20 |
| shall be
irrevocable.
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| For taxable years ending on or after December 31, 2000, | 22 |
| a
partner that qualifies its
partnership for a subtraction | 23 |
| under subparagraph (I) of paragraph (2) of
subsection (d) | 24 |
| of Section 203 or a shareholder that qualifies a Subchapter | 25 |
| S
corporation for a subtraction under subparagraph (S) of | 26 |
| paragraph (2) of
subsection (b) of Section 203 shall be |
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| allowed a credit under this subsection
(e) equal to its | 2 |
| share of the credit earned under this subsection (e) during
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| the taxable year by the partnership or Subchapter S | 4 |
| corporation, determined in
accordance with the | 5 |
| determination of income and distributive share of
income | 6 |
| under Sections 702 and 704 and Subchapter S of the Internal | 7 |
| Revenue
Code. This paragraph is exempt from the provisions | 8 |
| of Section 250.
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| (f) Investment credit; Enterprise Zone; River Edge | 10 |
| Redevelopment Zone.
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| (1) A taxpayer shall be allowed a credit against the | 12 |
| tax imposed
by subsections (a) and (b) of this Section for | 13 |
| investment in qualified
property which is placed in service | 14 |
| in an Enterprise Zone created
pursuant to the Illinois | 15 |
| Enterprise Zone Act or, for property placed in service on | 16 |
| or after July 1, 2006, a River Edge Redevelopment Zone | 17 |
| established pursuant to the River Edge Redevelopment Zone | 18 |
| Act. For partners, shareholders
of Subchapter S | 19 |
| corporations, and owners of limited liability companies,
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| if the liability company is treated as a partnership for | 21 |
| purposes of
federal and State income taxation, there shall | 22 |
| be allowed a credit under
this subsection (f) to be | 23 |
| determined in accordance with the determination
of income | 24 |
| and distributive share of income under Sections 702 and 704 | 25 |
| and
Subchapter S of the Internal Revenue Code. The credit | 26 |
| shall be .5% of the
basis for such property. The credit |
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|
| 1 |
| shall be available only in the taxable
year in which the | 2 |
| property is placed in service in the Enterprise Zone or | 3 |
| River Edge Redevelopment Zone and
shall not be allowed to | 4 |
| the extent that it would reduce a taxpayer's
liability for | 5 |
| the tax imposed by subsections (a) and (b) of this Section | 6 |
| to
below zero. For tax years ending on or after December | 7 |
| 31, 1985, the credit
shall be allowed for the tax year in | 8 |
| which the property is placed in
service, or, if the amount | 9 |
| of the credit exceeds the tax liability for that
year, | 10 |
| whether it exceeds the original liability or the liability | 11 |
| as later
amended, such excess may be carried forward and | 12 |
| applied to the tax
liability of the 5 taxable years | 13 |
| following the excess credit year.
The credit shall be | 14 |
| applied to the earliest year for which there is a
| 15 |
| liability. If there is credit from more than one tax year | 16 |
| that is available
to offset a liability, the credit | 17 |
| accruing first in time shall be applied
first.
| 18 |
| (2) The term qualified property means property which:
| 19 |
| (A) is tangible, whether new or used, including | 20 |
| buildings and
structural components of buildings;
| 21 |
| (B) is depreciable pursuant to Section 167 of the | 22 |
| Internal Revenue
Code, except that "3-year property" | 23 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 24 |
| eligible for the credit provided by this subsection | 25 |
| (f);
| 26 |
| (C) is acquired by purchase as defined in Section |
|
|
|
SB2252 Engrossed |
- 18 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| 179(d) of
the Internal Revenue Code;
| 2 |
| (D) is used in the Enterprise Zone or River Edge | 3 |
| Redevelopment Zone by the taxpayer; and
| 4 |
| (E) has not been previously used in Illinois in | 5 |
| such a manner and by
such a person as would qualify for | 6 |
| the credit provided by this subsection
(f) or | 7 |
| subsection (e).
| 8 |
| (3) The basis of qualified property shall be the basis | 9 |
| used to compute
the depreciation deduction for federal | 10 |
| income tax purposes.
| 11 |
| (4) If the basis of the property for federal income tax | 12 |
| depreciation
purposes is increased after it has been placed | 13 |
| in service in the Enterprise
Zone or River Edge | 14 |
| Redevelopment Zone by the taxpayer, the amount of such | 15 |
| increase shall be deemed property
placed in service on the | 16 |
| date of such increase in basis.
| 17 |
| (5) The term "placed in service" shall have the same | 18 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 19 |
| (6) If during any taxable year, any property ceases to | 20 |
| be qualified
property in the hands of the taxpayer within | 21 |
| 48 months after being placed
in service, or the situs of | 22 |
| any qualified property is moved outside the
Enterprise Zone | 23 |
| or River Edge Redevelopment Zone within 48 months after | 24 |
| being placed in service, the tax
imposed under subsections | 25 |
| (a) and (b) of this Section for such taxable year
shall be | 26 |
| increased. Such increase shall be determined by (i) |
|
|
|
SB2252 Engrossed |
- 19 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| recomputing
the investment credit which would have been | 2 |
| allowed for the year in which
credit for such property was | 3 |
| originally allowed by eliminating such
property from such | 4 |
| computation, and (ii) subtracting such recomputed credit
| 5 |
| from the amount of credit previously allowed. For the | 6 |
| purposes of this
paragraph (6), a reduction of the basis of | 7 |
| qualified property resulting
from a redetermination of the | 8 |
| purchase price shall be deemed a disposition
of qualified | 9 |
| property to the extent of such reduction.
| 10 |
| (7) There shall be allowed an additional credit equal | 11 |
| to 0.5% of the basis of qualified property placed in | 12 |
| service during the taxable year in a River Edge | 13 |
| Redevelopment Zone, provided such property is placed in | 14 |
| service on or after July 1, 2006, and the taxpayer's base | 15 |
| employment within Illinois has increased by 1% or more over | 16 |
| the preceding year as determined by the taxpayer's | 17 |
| employment records filed with the Illinois Department of | 18 |
| Employment Security. Taxpayers who are new to Illinois | 19 |
| shall be deemed to have met the 1% growth in base | 20 |
| employment for the first year in which they file employment | 21 |
| records with the Illinois Department of Employment | 22 |
| Security. If, in any year, the increase in base employment | 23 |
| within Illinois over the preceding year is less than 1%, | 24 |
| the additional credit shall be limited to that percentage | 25 |
| times a fraction, the numerator of which is 0.5% and the | 26 |
| denominator of which is 1%, but shall not exceed 0.5%.
|
|
|
|
SB2252 Engrossed |
- 20 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| (g) Jobs Tax Credit; Enterprise Zone, River Edge | 2 |
| Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| 3 |
| (1) A taxpayer conducting a trade or business in an | 4 |
| enterprise zone
or a High Impact Business designated by the | 5 |
| Department of Commerce and
Economic Opportunity or for | 6 |
| taxable years ending on or after December 31, 2006, in a | 7 |
| River Edge Redevelopment Zone conducting a trade or | 8 |
| business in a federally designated
Foreign Trade Zone or | 9 |
| Sub-Zone shall be allowed a credit against the tax
imposed | 10 |
| by subsections (a) and (b) of this Section in the amount of | 11 |
| $500
per eligible employee hired to work in the zone during | 12 |
| the taxable year.
| 13 |
| (2) To qualify for the credit:
| 14 |
| (A) the taxpayer must hire 5 or more eligible | 15 |
| employees to work in an
enterprise zone, River Edge | 16 |
| Redevelopment Zone, or federally designated Foreign | 17 |
| Trade Zone or Sub-Zone
during the taxable year;
| 18 |
| (B) the taxpayer's total employment within the | 19 |
| enterprise zone, River Edge Redevelopment Zone, or
| 20 |
| federally designated Foreign Trade Zone or Sub-Zone | 21 |
| must
increase by 5 or more full-time employees beyond | 22 |
| the total employed in that
zone at the end of the | 23 |
| previous tax year for which a jobs tax
credit under | 24 |
| this Section was taken, or beyond the total employed by | 25 |
| the
taxpayer as of December 31, 1985, whichever is | 26 |
| later; and
|
|
|
|
SB2252 Engrossed |
- 21 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| (C) the eligible employees must be employed 180 | 2 |
| consecutive days in
order to be deemed hired for | 3 |
| purposes of this subsection.
| 4 |
| (3) An "eligible employee" means an employee who is:
| 5 |
| (A) Certified by the Department of Commerce and | 6 |
| Economic Opportunity
as "eligible for services" | 7 |
| pursuant to regulations promulgated in
accordance with | 8 |
| Title II of the Job Training Partnership Act, Training
| 9 |
| Services for the Disadvantaged or Title III of the Job | 10 |
| Training Partnership
Act, Employment and Training | 11 |
| Assistance for Dislocated Workers Program.
| 12 |
| (B) Hired after the enterprise zone, River Edge | 13 |
| Redevelopment Zone, or federally designated Foreign
| 14 |
| Trade Zone or Sub-Zone was designated or the trade or
| 15 |
| business was located in that zone, whichever is later.
| 16 |
| (C) Employed in the enterprise zone, River Edge | 17 |
| Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | 18 |
| An employee is employed in an
enterprise zone or | 19 |
| federally designated Foreign Trade Zone or Sub-Zone
if | 20 |
| his services are rendered there or it is the base of
| 21 |
| operations for the services performed.
| 22 |
| (D) A full-time employee working 30 or more hours | 23 |
| per week.
| 24 |
| (4) For tax years ending on or after December 31, 1985 | 25 |
| and prior to
December 31, 1988, the credit shall be allowed | 26 |
| for the tax year in which
the eligible employees are hired. |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| For tax years ending on or after
December 31, 1988, the | 2 |
| credit shall be allowed for the tax year immediately
| 3 |
| following the tax year in which the eligible employees are | 4 |
| hired. If the
amount of the credit exceeds the tax | 5 |
| liability for that year, whether it
exceeds the original | 6 |
| liability or the liability as later amended, such
excess | 7 |
| may be carried forward and applied to the tax liability of | 8 |
| the 5
taxable years following the excess credit year. The | 9 |
| credit shall be
applied to the earliest year for which | 10 |
| there is a liability. If there is
credit from more than one | 11 |
| tax year that is available to offset a liability,
earlier | 12 |
| credit shall be applied first.
| 13 |
| (5) The Department of Revenue shall promulgate such | 14 |
| rules and regulations
as may be deemed necessary to carry | 15 |
| out the purposes of this subsection (g).
| 16 |
| (6) The credit shall be available for eligible | 17 |
| employees hired on or
after January 1, 1986.
| 18 |
| (h) Investment credit; High Impact Business ; Green Energy | 19 |
| Business .
| 20 |
| (1) Subject to subsection (a) of Section 10 of the | 21 |
| Green Energy Business Act, or subsections (b) and (b-5) of | 22 |
| Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer | 23 |
| shall be allowed a credit
against the tax imposed by | 24 |
| subsections (a) and (b) of this Section for
investment in | 25 |
| qualified
property which is placed in service by a | 26 |
| Department of Commerce and Economic Opportunity
designated |
|
|
|
SB2252 Engrossed |
- 23 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| Green Energy Business or High Impact Business. The credit | 2 |
| shall be .5% of the basis
for such property. The credit | 3 |
| shall not be available (i) until the minimum
investments in | 4 |
| qualified property set forth in subdivision (a)(3)(A) of
| 5 |
| Section 5.5 of the Illinois
Enterprise Zone Act have been | 6 |
| satisfied
or (ii) until the Department of Commerce and | 7 |
| Economic Opportunity designates the business as a Green | 8 |
| Energy Business under the Green Energy Business Act, or | 9 |
| until the time authorized in subsection (b-5) of the | 10 |
| Illinois
Enterprise Zone Act for entities designated as | 11 |
| High Impact Businesses under
subdivisions (a)(3)(B), | 12 |
| (a)(3)(C), and (a)(3)(D) of Section 5.5 of the Illinois
| 13 |
| Enterprise Zone Act, and shall not be allowed to the extent | 14 |
| that it would
reduce a taxpayer's liability for the tax | 15 |
| imposed by subsections (a) and (b) of
this Section to below | 16 |
| zero. The credit applicable to such investments shall be
| 17 |
| taken in the taxable year in which such investments have | 18 |
| been completed. The
credit for additional investments | 19 |
| beyond the minimum investment by a designated
high impact | 20 |
| business authorized under subdivision (a)(3)(A) of Section | 21 |
| 5.5 of
the Illinois Enterprise Zone Act shall be available | 22 |
| only in the taxable year in
which the property is placed in | 23 |
| service and shall not be allowed to the extent
that it | 24 |
| would reduce a taxpayer's liability for the tax imposed by | 25 |
| subsections
(a) and (b) of this Section to below zero.
For | 26 |
| tax years ending on or after December 31, 1987, the credit |
|
|
|
SB2252 Engrossed |
- 24 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| shall be
allowed for the tax year in which the property is | 2 |
| placed in service, or, if
the amount of the credit exceeds | 3 |
| the tax liability for that year, whether
it exceeds the | 4 |
| original liability or the liability as later amended, such
| 5 |
| excess may be carried forward and applied to the tax | 6 |
| liability of the 5
taxable years following the excess | 7 |
| credit year. The credit shall be
applied to the earliest | 8 |
| year for which there is a liability. If there is
credit | 9 |
| from more than one tax year that is available to offset a | 10 |
| liability,
the credit accruing first in time shall be | 11 |
| applied first.
| 12 |
| Changes made in this subdivision (h)(1) by Public Act | 13 |
| 88-670
restore changes made by Public Act 85-1182 and | 14 |
| reflect existing law.
| 15 |
| (2) The term qualified property means property which:
| 16 |
| (A) is tangible, whether new or used, including | 17 |
| buildings and
structural components of buildings;
| 18 |
| (B) is depreciable pursuant to Section 167 of the | 19 |
| Internal Revenue
Code, except that "3-year property" | 20 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 21 |
| eligible for the credit provided by this subsection | 22 |
| (h);
| 23 |
| (C) is acquired by purchase as defined in Section | 24 |
| 179(d) of the
Internal Revenue Code; and
| 25 |
| (D) is not eligible for the Enterprise Zone | 26 |
| Investment Credit provided
by subsection (f) of this |
|
|
|
SB2252 Engrossed |
- 25 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| Section.
| 2 |
| (3) The basis of qualified property shall be the basis | 3 |
| used to compute
the depreciation deduction for federal | 4 |
| income tax purposes.
| 5 |
| (4) If the basis of the property for federal income tax | 6 |
| depreciation
purposes is increased after it has been placed | 7 |
| in service in a federally
designated Foreign Trade Zone or | 8 |
| Sub-Zone located in Illinois by the taxpayer,
the amount of | 9 |
| such increase shall be deemed property placed in service on
| 10 |
| the date of such increase in basis.
| 11 |
| (5) The term "placed in service" shall have the same | 12 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 13 |
| (6) If during any taxable year ending on or before | 14 |
| December 31, 1996,
any property ceases to be qualified
| 15 |
| property in the hands of the taxpayer within 48 months | 16 |
| after being placed
in service, or the situs of any | 17 |
| qualified property is moved outside
Illinois within 48 | 18 |
| months after being placed in service, the tax imposed
under | 19 |
| subsections (a) and (b) of this Section for such taxable | 20 |
| year shall
be increased. Such increase shall be determined | 21 |
| by (i) recomputing the
investment credit which would have | 22 |
| been allowed for the year in which
credit for such property | 23 |
| was originally allowed by eliminating such
property from | 24 |
| such computation, and (ii) subtracting such recomputed | 25 |
| credit
from the amount of credit previously allowed. For | 26 |
| the purposes of this
paragraph (6), a reduction of the |
|
|
|
SB2252 Engrossed |
- 26 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| basis of qualified property resulting
from a | 2 |
| redetermination of the purchase price shall be deemed a | 3 |
| disposition
of qualified property to the extent of such | 4 |
| reduction.
| 5 |
| (7) Beginning with tax years ending after December 31, | 6 |
| 1996, if a
taxpayer qualifies for the credit under this | 7 |
| subsection (h) and thereby is
granted a tax abatement and | 8 |
| the taxpayer relocates its entire facility in
violation of | 9 |
| the explicit terms and length of the contract under Section
| 10 |
| 18-183 of the Property Tax Code, the tax imposed under | 11 |
| subsections
(a) and (b) of this Section shall be increased | 12 |
| for the taxable year
in which the taxpayer relocated its | 13 |
| facility by an amount equal to the
amount of credit | 14 |
| received by the taxpayer under this subsection (h).
| 15 |
| (i) Credit for Personal Property Tax Replacement Income | 16 |
| Tax.
For tax years ending prior to December 31, 2003, a credit | 17 |
| shall be allowed
against the tax imposed by
subsections (a) and | 18 |
| (b) of this Section for the tax imposed by subsections (c)
and | 19 |
| (d) of this Section. This credit shall be computed by | 20 |
| multiplying the tax
imposed by subsections (c) and (d) of this | 21 |
| Section by a fraction, the numerator
of which is base income | 22 |
| allocable to Illinois and the denominator of which is
Illinois | 23 |
| base income, and further multiplying the product by the tax | 24 |
| rate
imposed by subsections (a) and (b) of this Section.
| 25 |
| Any credit earned on or after December 31, 1986 under
this | 26 |
| subsection which is unused in the year
the credit is computed |
|
|
|
SB2252 Engrossed |
- 27 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| because it exceeds the tax liability imposed by
subsections (a) | 2 |
| and (b) for that year (whether it exceeds the original
| 3 |
| liability or the liability as later amended) may be carried | 4 |
| forward and
applied to the tax liability imposed by subsections | 5 |
| (a) and (b) of the 5
taxable years following the excess credit | 6 |
| year, provided that no credit may
be carried forward to any | 7 |
| year ending on or
after December 31, 2003. This credit shall be
| 8 |
| applied first to the earliest year for which there is a | 9 |
| liability. If
there is a credit under this subsection from more | 10 |
| than one tax year that is
available to offset a liability the | 11 |
| earliest credit arising under this
subsection shall be applied | 12 |
| first.
| 13 |
| If, during any taxable year ending on or after December 31, | 14 |
| 1986, the
tax imposed by subsections (c) and (d) of this | 15 |
| Section for which a taxpayer
has claimed a credit under this | 16 |
| subsection (i) is reduced, the amount of
credit for such tax | 17 |
| shall also be reduced. Such reduction shall be
determined by | 18 |
| recomputing the credit to take into account the reduced tax
| 19 |
| imposed by subsections (c) and (d). If any portion of the
| 20 |
| reduced amount of credit has been carried to a different | 21 |
| taxable year, an
amended return shall be filed for such taxable | 22 |
| year to reduce the amount of
credit claimed.
| 23 |
| (j) Training expense credit. Beginning with tax years | 24 |
| ending on or
after December 31, 1986 and prior to December 31, | 25 |
| 2003, a taxpayer shall be
allowed a credit against the
tax | 26 |
| imposed by subsections (a) and (b) under this Section
for all |
|
|
|
SB2252 Engrossed |
- 28 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| amounts paid or accrued, on behalf of all persons
employed by | 2 |
| the taxpayer in Illinois or Illinois residents employed
outside | 3 |
| of Illinois by a taxpayer, for educational or vocational | 4 |
| training in
semi-technical or technical fields or semi-skilled | 5 |
| or skilled fields, which
were deducted from gross income in the | 6 |
| computation of taxable income. The
credit against the tax | 7 |
| imposed by subsections (a) and (b) shall be 1.6% of
such | 8 |
| training expenses. For partners, shareholders of subchapter S
| 9 |
| corporations, and owners of limited liability companies, if the | 10 |
| liability
company is treated as a partnership for purposes of | 11 |
| federal and State income
taxation, there shall be allowed a | 12 |
| credit under this subsection (j) to be
determined in accordance | 13 |
| with the determination of income and distributive
share of | 14 |
| income under Sections 702 and 704 and subchapter S of the | 15 |
| Internal
Revenue Code.
| 16 |
| Any credit allowed under this subsection which is unused in | 17 |
| the year
the credit is earned may be carried forward to each of | 18 |
| the 5 taxable
years following the year for which the credit is | 19 |
| first computed until it is
used. This credit shall be applied | 20 |
| first to the earliest year for which
there is a liability. If | 21 |
| there is a credit under this subsection from more
than one tax | 22 |
| year that is available to offset a liability the earliest
| 23 |
| credit arising under this subsection shall be applied first. No | 24 |
| carryforward
credit may be claimed in any tax year ending on or | 25 |
| after
December 31, 2003.
| 26 |
| (k) Research and development credit.
|
|
|
|
SB2252 Engrossed |
- 29 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| For tax years ending after July 1, 1990 and prior to
| 2 |
| December 31, 2003, and beginning again for tax years ending on | 3 |
| or after December 31, 2004, a taxpayer shall be
allowed a | 4 |
| credit against the tax imposed by subsections (a) and (b) of | 5 |
| this
Section for increasing research activities in this State. | 6 |
| The credit
allowed against the tax imposed by subsections (a) | 7 |
| and (b) shall be equal
to 6 1/2% of the qualifying expenditures | 8 |
| for increasing research activities
in this State. For partners, | 9 |
| shareholders of subchapter S corporations, and
owners of | 10 |
| limited liability companies, if the liability company is | 11 |
| treated as a
partnership for purposes of federal and State | 12 |
| income taxation, there shall be
allowed a credit under this | 13 |
| subsection to be determined in accordance with the
| 14 |
| determination of income and distributive share of income under | 15 |
| Sections 702 and
704 and subchapter S of the Internal Revenue | 16 |
| Code.
| 17 |
| For purposes of this subsection, "qualifying expenditures" | 18 |
| means the
qualifying expenditures as defined for the federal | 19 |
| credit for increasing
research activities which would be | 20 |
| allowable under Section 41 of the
Internal Revenue Code and | 21 |
| which are conducted in this State, "qualifying
expenditures for | 22 |
| increasing research activities in this State" means the
excess | 23 |
| of qualifying expenditures for the taxable year in which | 24 |
| incurred
over qualifying expenditures for the base period, | 25 |
| "qualifying expenditures
for the base period" means the average | 26 |
| of the qualifying expenditures for
each year in the base |
|
|
|
SB2252 Engrossed |
- 30 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| period, and "base period" means the 3 taxable years
immediately | 2 |
| preceding the taxable year for which the determination is
being | 3 |
| made.
| 4 |
| Any credit in excess of the tax liability for the taxable | 5 |
| year
may be carried forward. A taxpayer may elect to have the
| 6 |
| unused credit shown on its final completed return carried over | 7 |
| as a credit
against the tax liability for the following 5 | 8 |
| taxable years or until it has
been fully used, whichever occurs | 9 |
| first; provided that no credit earned in a tax year ending | 10 |
| prior to December 31, 2003 may be carried forward to any year | 11 |
| ending on or after December 31, 2003.
| 12 |
| If an unused credit is carried forward to a given year from | 13 |
| 2 or more
earlier years, that credit arising in the earliest | 14 |
| year will be applied
first against the tax liability for the | 15 |
| given year. If a tax liability for
the given year still | 16 |
| remains, the credit from the next earliest year will
then be | 17 |
| applied, and so on, until all credits have been used or no tax
| 18 |
| liability for the given year remains. Any remaining unused | 19 |
| credit or
credits then will be carried forward to the next | 20 |
| following year in which a
tax liability is incurred, except | 21 |
| that no credit can be carried forward to
a year which is more | 22 |
| than 5 years after the year in which the expense for
which the | 23 |
| credit is given was incurred.
| 24 |
| No inference shall be drawn from this amendatory Act of the | 25 |
| 91st General
Assembly in construing this Section for taxable | 26 |
| years beginning before January
1, 1999.
|
|
|
|
SB2252 Engrossed |
- 31 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| (l) Environmental Remediation Tax Credit.
| 2 |
| (i) For tax years ending after December 31, 1997 and on | 3 |
| or before
December 31, 2001, a taxpayer shall be allowed a | 4 |
| credit against the tax
imposed by subsections (a) and (b) | 5 |
| of this Section for certain amounts paid
for unreimbursed | 6 |
| eligible remediation costs, as specified in this | 7 |
| subsection.
For purposes of this Section, "unreimbursed | 8 |
| eligible remediation costs" means
costs approved by the | 9 |
| Illinois Environmental Protection Agency ("Agency") under
| 10 |
| Section 58.14 of the Environmental Protection Act that were | 11 |
| paid in performing
environmental remediation at a site for | 12 |
| which a No Further Remediation Letter
was issued by the | 13 |
| Agency and recorded under Section 58.10 of the | 14 |
| Environmental
Protection Act. The credit must be claimed | 15 |
| for the taxable year in which
Agency approval of the | 16 |
| eligible remediation costs is granted. The credit is
not | 17 |
| available to any taxpayer if the taxpayer or any related | 18 |
| party caused or
contributed to, in any material respect, a | 19 |
| release of regulated substances on,
in, or under the site | 20 |
| that was identified and addressed by the remedial
action | 21 |
| pursuant to the Site Remediation Program of the | 22 |
| Environmental Protection
Act. After the Pollution Control | 23 |
| Board rules are adopted pursuant to the
Illinois | 24 |
| Administrative Procedure Act for the administration and | 25 |
| enforcement of
Section 58.9 of the Environmental | 26 |
| Protection Act, determinations as to credit
availability |
|
|
|
SB2252 Engrossed |
- 32 - |
LRB096 10038 JDS 20202 b |
|
| 1 |
| for purposes of this Section shall be made consistent with | 2 |
| those
rules. For purposes of this Section, "taxpayer" | 3 |
| includes a person whose tax
attributes the taxpayer has | 4 |
| succeeded to under Section 381 of the Internal
Revenue Code | 5 |
| and "related party" includes the persons disallowed a | 6 |
| deduction
for losses by paragraphs (b), (c), and (f)(1) of | 7 |
| Section 267 of the Internal
Revenue Code by virtue of being | 8 |
| a related taxpayer, as well as any of its
partners. The | 9 |
| credit allowed against the tax imposed by subsections (a) | 10 |
| and
(b) shall be equal to 25% of the unreimbursed eligible | 11 |
| remediation costs in
excess of $100,000 per site, except | 12 |
| that the $100,000 threshold shall not apply
to any site | 13 |
| contained in an enterprise zone as determined by the | 14 |
| Department of
Commerce and Community Affairs (now | 15 |
| Department of Commerce and Economic Opportunity). The | 16 |
| total credit allowed shall not exceed
$40,000 per year with | 17 |
| a maximum total of $150,000 per site. For partners and
| 18 |
| shareholders of subchapter S corporations, there shall be | 19 |
| allowed a credit
under this subsection to be determined in | 20 |
| accordance with the determination of
income and | 21 |
| distributive share of income under Sections 702 and 704 and
| 22 |
| subchapter S of the Internal Revenue Code.
| 23 |
| (ii) A credit allowed under this subsection that is | 24 |
| unused in the year
the credit is earned may be carried | 25 |
| forward to each of the 5 taxable years
following the year | 26 |
| for which the credit is first earned until it is used.
The |
|
|
|
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| 1 |
| term "unused credit" does not include any amounts of | 2 |
| unreimbursed eligible
remediation costs in excess of the | 3 |
| maximum credit per site authorized under
paragraph (i). | 4 |
| This credit shall be applied first to the earliest year
for | 5 |
| which there is a liability. If there is a credit under this | 6 |
| subsection
from more than one tax year that is available to | 7 |
| offset a liability, the
earliest credit arising under this | 8 |
| subsection shall be applied first. A
credit allowed under | 9 |
| this subsection may be sold to a buyer as part of a sale
of | 10 |
| all or part of the remediation site for which the credit | 11 |
| was granted. The
purchaser of a remediation site and the | 12 |
| tax credit shall succeed to the unused
credit and remaining | 13 |
| carry-forward period of the seller. To perfect the
| 14 |
| transfer, the assignor shall record the transfer in the | 15 |
| chain of title for the
site and provide written notice to | 16 |
| the Director of the Illinois Department of
Revenue of the | 17 |
| assignor's intent to sell the remediation site and the | 18 |
| amount of
the tax credit to be transferred as a portion of | 19 |
| the sale. In no event may a
credit be transferred to any | 20 |
| taxpayer if the taxpayer or a related party would
not be | 21 |
| eligible under the provisions of subsection (i).
| 22 |
| (iii) For purposes of this Section, the term "site" | 23 |
| shall have the same
meaning as under Section 58.2 of the | 24 |
| Environmental Protection Act.
| 25 |
| (m) Education expense credit. Beginning with tax years | 26 |
| ending after
December 31, 1999, a taxpayer who
is the custodian |
|
|
|
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|
| 1 |
| of one or more qualifying pupils shall be allowed a credit
| 2 |
| against the tax imposed by subsections (a) and (b) of this | 3 |
| Section for
qualified education expenses incurred on behalf of | 4 |
| the qualifying pupils.
The credit shall be equal to 25% of | 5 |
| qualified education expenses, but in no
event may the total | 6 |
| credit under this subsection claimed by a
family that is the
| 7 |
| custodian of qualifying pupils exceed $500. In no event shall a | 8 |
| credit under
this subsection reduce the taxpayer's liability | 9 |
| under this Act to less than
zero. This subsection is exempt | 10 |
| from the provisions of Section 250 of this
Act.
| 11 |
| For purposes of this subsection:
| 12 |
| "Qualifying pupils" means individuals who (i) are | 13 |
| residents of the State of
Illinois, (ii) are under the age of | 14 |
| 21 at the close of the school year for
which a credit is | 15 |
| sought, and (iii) during the school year for which a credit
is | 16 |
| sought were full-time pupils enrolled in a kindergarten through | 17 |
| twelfth
grade education program at any school, as defined in | 18 |
| this subsection.
| 19 |
| "Qualified education expense" means the amount incurred
on | 20 |
| behalf of a qualifying pupil in excess of $250 for tuition, | 21 |
| book fees, and
lab fees at the school in which the pupil is | 22 |
| enrolled during the regular school
year.
| 23 |
| "School" means any public or nonpublic elementary or | 24 |
| secondary school in
Illinois that is in compliance with Title | 25 |
| VI of the Civil Rights Act of 1964
and attendance at which | 26 |
| satisfies the requirements of Section 26-1 of the
School Code, |
|
|
|
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|
| 1 |
| except that nothing shall be construed to require a child to
| 2 |
| attend any particular public or nonpublic school to qualify for | 3 |
| the credit
under this Section.
| 4 |
| "Custodian" means, with respect to qualifying pupils, an | 5 |
| Illinois resident
who is a parent, the parents, a legal | 6 |
| guardian, or the legal guardians of the
qualifying pupils.
| 7 |
| (n) River Edge Redevelopment Zone site remediation tax | 8 |
| credit.
| 9 |
| (i) For tax years ending on or after December 31, 2006, | 10 |
| a taxpayer shall be allowed a credit against the tax | 11 |
| imposed by subsections (a) and (b) of this Section for | 12 |
| certain amounts paid for unreimbursed eligible remediation | 13 |
| costs, as specified in this subsection. For purposes of | 14 |
| this Section, "unreimbursed eligible remediation costs" | 15 |
| means costs approved by the Illinois Environmental | 16 |
| Protection Agency ("Agency") under Section 58.14a of the | 17 |
| Environmental Protection Act that were paid in performing | 18 |
| environmental remediation at a site within a River Edge | 19 |
| Redevelopment Zone for which a No Further Remediation | 20 |
| Letter was issued by the Agency and recorded under Section | 21 |
| 58.10 of the Environmental Protection Act. The credit must | 22 |
| be claimed for the taxable year in which Agency approval of | 23 |
| the eligible remediation costs is granted. The credit is | 24 |
| not available to any taxpayer if the taxpayer or any | 25 |
| related party caused or contributed to, in any material | 26 |
| respect, a release of regulated substances on, in, or under |
|
|
|
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|
| 1 |
| the site that was identified and addressed by the remedial | 2 |
| action pursuant to the Site Remediation Program of the | 3 |
| Environmental Protection Act. Determinations as to credit | 4 |
| availability for purposes of this Section shall be made | 5 |
| consistent with rules adopted by the Pollution Control | 6 |
| Board pursuant to the Illinois Administrative Procedure | 7 |
| Act for the administration and enforcement of Section 58.9 | 8 |
| of the Environmental Protection Act. For purposes of this | 9 |
| Section, "taxpayer" includes a person whose tax attributes | 10 |
| the taxpayer has succeeded to under Section 381 of the | 11 |
| Internal Revenue Code and "related party" includes the | 12 |
| persons disallowed a deduction for losses by paragraphs | 13 |
| (b), (c), and (f)(1) of Section 267 of the Internal Revenue | 14 |
| Code by virtue of being a related taxpayer, as well as any | 15 |
| of its partners. The credit allowed against the tax imposed | 16 |
| by subsections (a) and (b) shall be equal to 25% of the | 17 |
| unreimbursed eligible remediation costs in excess of | 18 |
| $100,000 per site. | 19 |
| (ii) A credit allowed under this subsection that is | 20 |
| unused in the year the credit is earned may be carried | 21 |
| forward to each of the 5 taxable years following the year | 22 |
| for which the credit is first earned until it is used. This | 23 |
| credit shall be applied first to the earliest year for | 24 |
| which there is a liability. If there is a credit under this | 25 |
| subsection from more than one tax year that is available to | 26 |
| offset a liability, the earliest credit arising under this |
|
|
|
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|
| 1 |
| subsection shall be applied first. A credit allowed under | 2 |
| this subsection may be sold to a buyer as part of a sale of | 3 |
| all or part of the remediation site for which the credit | 4 |
| was granted. The purchaser of a remediation site and the | 5 |
| tax credit shall succeed to the unused credit and remaining | 6 |
| carry-forward period of the seller. To perfect the | 7 |
| transfer, the assignor shall record the transfer in the | 8 |
| chain of title for the site and provide written notice to | 9 |
| the Director of the Illinois Department of Revenue of the | 10 |
| assignor's intent to sell the remediation site and the | 11 |
| amount of the tax credit to be transferred as a portion of | 12 |
| the sale. In no event may a credit be transferred to any | 13 |
| taxpayer if the taxpayer or a related party would not be | 14 |
| eligible under the provisions of subsection (i). | 15 |
| (iii) For purposes of this Section, the term "site" | 16 |
| shall have the same meaning as under Section 58.2 of the | 17 |
| Environmental Protection Act. | 18 |
| (iv) This subsection is exempt from the provisions of | 19 |
| Section 250.
| 20 |
| (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| 21 |
| Section 25. The Retailers' Occupation Tax Act is amended by | 22 |
| changing Sections 1d, 1e, 1f, and 5l as follows:
| 23 |
| (35 ILCS 120/1d) (from Ch. 120, par. 440d)
| 24 |
| Sec. 1d. Subject to the provisions of Section 1f, all |
|
|
|
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|
| 1 |
| tangible personal
property to be used or consumed within an | 2 |
| enterprise zone established
pursuant to the "Illinois | 3 |
| Enterprise Zone Act", as amended, or subject to
the provisions | 4 |
| of Section 5.5 of the Illinois Enterprise Zone Act, or subject | 5 |
| to the provisions of Section 10 of the Green Energy Business | 6 |
| Act, all
tangible personal property to be used or consumed by | 7 |
| any High Impact Business or Green Energy Business ,
in the | 8 |
| process of the manufacturing or assembly of tangible personal | 9 |
| property
for wholesale or retail sale or lease or in the | 10 |
| process of graphic arts
production if used or consumed at a | 11 |
| facility which is a Department of
Commerce and Economic | 12 |
| Opportunity certified business and located in a county
of more | 13 |
| than 4,000 persons and less than 45,000 persons is exempt from
| 14 |
| the tax imposed by
this Act. This exemption includes repair and | 15 |
| replacement parts for
machinery and equipment used primarily in | 16 |
| the process of manufacturing or
assembling tangible personal | 17 |
| property or in the process of graphic arts
production if used | 18 |
| or consumed at a facility which is a Department of
Commerce and | 19 |
| Economic Opportunity certified business and located in a county
| 20 |
| of more than 4,000 persons and less than 45,000 persons for | 21 |
| wholesale or retail sale, or
lease, and equipment, | 22 |
| manufacturing or graphic arts fuels, material and
supplies for | 23 |
| the
maintenance, repair or operation of such manufacturing or | 24 |
| assembling
or graphic arts machinery or equipment.
| 25 |
| (Source: P.A. 94-793, eff. 5-19-06.)
|
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| (35 ILCS 120/1e) (from Ch. 120, par. 440e)
| 2 |
| Sec. 1e.
Subject to the provisions of Section 1f, or | 3 |
| subject to the
provisions of Section 5.5 of the Illinois | 4 |
| Enterprise Zone Act, or subject to the provisions of Section 10 | 5 |
| of the Green Energy Business Act, all tangible
personal | 6 |
| property to be used or consumed in the operation of pollution
| 7 |
| control facilities, as defined in Section 1a of this Act, | 8 |
| within an
enterprise zone established pursuant to the "Illinois | 9 |
| Enterprise Zone Act",
as amended, shall be exempt from the tax | 10 |
| imposed by this Act.
| 11 |
| (Source: P.A. 85-1182.)
| 12 |
| (35 ILCS 120/1f) (from Ch. 120, par. 440f)
| 13 |
| Sec. 1f. Except for High Impact Businesses or Green Energy | 14 |
| Businesses , the exemption stated in
Sections 1d and 1e of this | 15 |
| Act shall only apply to business enterprises which:
| 16 |
| (1) either (i) make investments which cause the | 17 |
| creation of a minimum of
200 full-time equivalent jobs in | 18 |
| Illinois or (ii) make investments which
cause the retention | 19 |
| of a minimum of 2000 full-time jobs in Illinois or
(iii) | 20 |
| make investments of a minimum of $40,000,000 and retain at | 21 |
| least
90% of the jobs in place on the date on which the | 22 |
| exemption is granted and
for the duration of the exemption; | 23 |
| and
| 24 |
| (2) are located in an Enterprise Zone established | 25 |
| pursuant to the
Illinois Enterprise Zone Act; and
|
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| (3) are certified by the Department of Commerce and | 2 |
| Economic Opportunity as
complying with the requirements | 3 |
| specified in clauses (1), (2) and (3).
| 4 |
| Any business enterprise seeking to avail itself of the | 5 |
| exemptions stated
in Sections 1d or 1e, or both, shall make | 6 |
| application to the Department of
Commerce and Economic | 7 |
| Opportunity in such form and providing such information
as may | 8 |
| be prescribed by the Department of Commerce and Economic | 9 |
| Opportunity.
However, no business enterprise shall be | 10 |
| required, as a condition for
certification under clause (4) of | 11 |
| this Section, to attest that its decision
to invest under | 12 |
| clause (1) of this Section and to locate under clause (2)
of | 13 |
| this Section is predicated upon the availability of the | 14 |
| exemptions
authorized by Sections 1d or 1e.
| 15 |
| The Department of Commerce and Economic Opportunity shall | 16 |
| determine whether
the business enterprise meets the criteria | 17 |
| prescribed in this Section. If
the Department of Commerce and | 18 |
| Economic Opportunity determines that such
business enterprise | 19 |
| meets the criteria, it shall issue a certificate of
eligibility | 20 |
| for exemption to the business enterprise in such form as is
| 21 |
| prescribed by the Department of Revenue. The Department of | 22 |
| Commerce and
Economic Opportunity shall act upon such | 23 |
| certification requests within 60 days
after receipt of the | 24 |
| application, and shall file with the Department of
Revenue a | 25 |
| copy of each certificate of eligibility for exemption.
| 26 |
| The Department of Commerce and Economic Opportunity shall |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| have the power to
promulgate rules and regulations to carry out | 2 |
| the provisions of this
Section including the power to define | 3 |
| the amounts and types of eligible
investments not specified in | 4 |
| this Section which business enterprises
must make in order to | 5 |
| receive the exemptions stated in Sections 1d and 1e
of this | 6 |
| Act; and to require that any business enterprise that is | 7 |
| granted a
tax exemption repay the exempted tax if the business | 8 |
| enterprise fails to
comply with the terms and conditions of the | 9 |
| certification.
| 10 |
| Such certificate of eligibility for exemption shall be | 11 |
| presented by the
business enterprise to its supplier when | 12 |
| making the initial purchase of
tangible personal property for | 13 |
| which an exemption is granted by Section 1d or
Section 1e, or | 14 |
| both, together with a certification by the business enterprise
| 15 |
| that such tangible personal property is exempt from taxation | 16 |
| under Section
1d or Section 1e and by indicating the exempt | 17 |
| status of each subsequent
purchase on the face of the purchase | 18 |
| order.
| 19 |
| The Department of Commerce and Economic Opportunity shall | 20 |
| determine the
period during which such exemption from the taxes | 21 |
| imposed under this Act is
in effect which shall not exceed 20 | 22 |
| years.
| 23 |
| (Source: P.A. 94-793, eff. 5-19-06.)
| 24 |
| (35 ILCS 120/5l) (from Ch. 120, par. 444l)
| 25 |
| Sec. 5l. Beginning January 1, 1995, each retailer who makes |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| a sale of
building materials that will be incorporated into a | 2 |
| High Impact Business
location as designated by the Department | 3 |
| of Commerce and Economic Opportunity
under Section 5.5 of the | 4 |
| Illinois Enterprise Zone Act or Section 10 of the Green Energy | 5 |
| Business Act may deduct receipts from
such sales when | 6 |
| calculating only the 6.25% State rate of tax
imposed by this | 7 |
| Act. Beginning on the effective date of this amendatory Act of
| 8 |
| 1995, a retailer may also deduct receipts from such sales when | 9 |
| calculating any
applicable local taxes. However, until the | 10 |
| effective date of this amendatory
Act of 1995, a retailer may | 11 |
| file claims for credit or refund to recover the
amount of any | 12 |
| applicable local tax paid on such sales. No retailer who is
| 13 |
| eligible for the deduction or credit
under Section 5k of this | 14 |
| Act for making a sale of building materials to be
incorporated | 15 |
| into real estate in an enterprise zone by rehabilitation,
| 16 |
| remodeling or new construction shall be eligible for the | 17 |
| deduction or
credit authorized under this Section.
| 18 |
| (Source: P.A. 94-793, eff. 5-19-06.)
| 19 |
| Section 30. The Public Utilities Act is amended by changing | 20 |
| Sections 9-222 and 9-222.1A as follows:
| 21 |
| (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
| 22 |
| Sec. 9-222.
Whenever a tax is imposed upon a public utility
| 23 |
| engaged in the business of distributing, supplying,
| 24 |
| furnishing, or selling gas for use or consumption pursuant to |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| Section 2 of
the Gas Revenue Tax Act, or whenever a tax is
| 2 |
| required to be collected by a delivering supplier pursuant to | 3 |
| Section 2-7 of
the Electricity Excise Tax Act, or whenever a | 4 |
| tax is imposed upon a public
utility pursuant to Section
2-202 | 5 |
| of this Act, such utility may charge its customers, other than
| 6 |
| customers who are Green Energy Businesses under Section 10 of | 7 |
| the Green Energy Business Act, High Impact Businesses high | 8 |
| impact businesses under Section 5.5
of the Illinois Enterprise | 9 |
| Zone Act, or certified business enterprises
under Section | 10 |
| 9-222.1 of this Act, to the extent of such exemption and
during | 11 |
| the period in which such exemption is in effect,
in addition to | 12 |
| any rate authorized by this Act, an additional
charge equal to | 13 |
| the total amount of such taxes. The exemption of this
Section | 14 |
| relating to High Impact Businesses high impact businesses shall | 15 |
| be subject to the
provisions of subsections (a), (b), and (b-5) | 16 |
| of Section 5.5 of
the Illinois
Enterprise Zone Act. The | 17 |
| exemption of this Section relating to Green Energy Businesses | 18 |
| shall be subject to the provisions of subsection (a) of Section | 19 |
| 10 of the Green Energy Business Act. This requirement shall not
| 20 |
| apply to taxes on invested capital imposed pursuant to the | 21 |
| Messages Tax
Act, the Gas Revenue Tax Act and the Public | 22 |
| Utilities Revenue Act.
Such utility shall file with the | 23 |
| Commission
a supplemental schedule which shall specify such | 24 |
| additional charge and
which shall become effective upon filing | 25 |
| without further notice. Such
additional charge shall be shown | 26 |
| separately on the utility bill to each
customer. The Commission |
|
|
|
SB2252 Engrossed |
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|
| 1 |
| shall have the power to investigate whether or
not such | 2 |
| supplemental schedule correctly specifies such additional | 3 |
| charge,
but shall have no power to suspend such supplemental | 4 |
| schedule. If the
Commission finds, after a hearing, that such | 5 |
| supplemental schedule does not
correctly specify such | 6 |
| additional charge, it shall by order require a
refund to the | 7 |
| appropriate customers of the excess, if any, with interest,
in | 8 |
| such manner as it shall deem just and reasonable, and in and by | 9 |
| such
order shall require the utility to file an amended | 10 |
| supplemental schedule
corresponding to the finding and order of | 11 |
| the Commission.
Except with respect to taxes imposed on | 12 |
| invested capital,
such tax liabilities shall be recovered from | 13 |
| customers solely by means of
the additional charges authorized | 14 |
| by this Section.
| 15 |
| (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
| 16 |
| (220 ILCS 5/9-222.1A)
| 17 |
| Sec. 9-222.1A. High impact business or green energy | 18 |
| business . Beginning on August 1, 1998 and
thereafter, a | 19 |
| business enterprise that is certified as a High Impact Business | 20 |
| or a Green Energy Business
by the Department of Commerce and | 21 |
| Economic Opportunity (formerly Department of Commerce and | 22 |
| Community Affairs) is exempt from the tax
imposed by Section | 23 |
| 2-4 of the Electricity Excise Tax Law, if the High Impact
| 24 |
| Business or Green Energy Business is registered to self-assess | 25 |
| that tax, and is exempt from any
additional charges added to |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| the business enterprise's utility bills as a
pass-on of State | 2 |
| utility taxes under Section 9-222 of this Act, to the extent
| 3 |
| the tax or charges are exempted by the percentage specified by | 4 |
| the Department
of Commerce and Economic Opportunity for State | 5 |
| utility taxes, provided the
business enterprise meets the | 6 |
| following criteria:
| 7 |
| (1) (A) it intends either (i) to make a minimum | 8 |
| eligible investment
of
$12,000,000 that will be placed | 9 |
| in service in qualified property in Illinois
and is | 10 |
| intended to create at least 500 full-time equivalent | 11 |
| jobs at a
designated
location in Illinois; or (ii) to | 12 |
| make a minimum eligible investment of
$30,000,000 that | 13 |
| will be placed in service in qualified property in
| 14 |
| Illinois and is intended to retain at least 1,500 | 15 |
| full-time equivalent jobs at
a designated location in | 16 |
| Illinois; or
| 17 |
| (B) it meets the criteria of subdivision | 18 |
| (a)(3)(B), (a)(3)(C), or
(a)(3)(D) of
Section 5.5 of | 19 |
| the
Illinois Enterprise Zone Act , or of subsection (a) | 20 |
| of Section 10 of the Green Energy Business Act ;
| 21 |
| (2) it is designated as a High Impact Business or
Green | 22 |
| Energy Business by the Department of
Commerce and Economic | 23 |
| Opportunity; and
| 24 |
| (3) it is certified by the Department of Commerce and | 25 |
| Economic Opportunity as complying with the requirements | 26 |
| specified in clauses (1) and (2) of
this Section.
|
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| The Department of Commerce and Economic Opportunity shall | 2 |
| determine the period
during which the exemption from the | 3 |
| Electricity Excise Tax Law and the
charges imposed under | 4 |
| Section 9-222 are in effect, which shall not exceed 20
years | 5 |
| from the date of initial certification, and shall specify the | 6 |
| percentage
of the exemption from those taxes or additional | 7 |
| charges.
| 8 |
| The Department of Commerce and Economic Opportunity is | 9 |
| authorized to
promulgate rules and regulations to carry out the | 10 |
| provisions of this Section,
including procedures for complying | 11 |
| with the requirements specified in
clauses (1) and (2) of this | 12 |
| Section and procedures for applying for the
exemptions | 13 |
| authorized under this Section; to define the amounts and types | 14 |
| of
eligible investments that business enterprises must make in | 15 |
| order to receive
State utility tax exemptions or exemptions | 16 |
| from the additional charges imposed
under Section 9-222 and | 17 |
| this Section; to
approve such utility tax exemptions for | 18 |
| business enterprises whose investments
are not yet placed in | 19 |
| service; and to require that business enterprises
granted tax | 20 |
| exemptions or exemptions from additional charges under Section
| 21 |
| 9-222 repay the exempted amount if the business enterprise | 22 |
| fails
to comply with the terms and conditions of the | 23 |
| certification.
| 24 |
| Upon certification of the business enterprises by the | 25 |
| Department of Commerce
and Economic Opportunity, the | 26 |
| Department of Commerce and Economic Opportunity shall
notify |
|
|
|
SB2252 Engrossed |
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LRB096 10038 JDS 20202 b |
|
| 1 |
| the Department of Revenue of the certification. The Department | 2 |
| of
Revenue shall notify the public utilities of the exemption | 3 |
| status of business
enterprises from the tax or pass-on charges | 4 |
| of State utility taxes. The
exemption
status shall take effect | 5 |
| within 3 months after certification of the
business enterprise.
| 6 |
| (Source: P.A. 94-793, eff. 5-19-06.)
| 7 |
| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
|
|