Full Text of HB0383 98th General Assembly
HB0383ham001 98TH GENERAL ASSEMBLY | Rep. John E. Bradley Filed: 9/27/2013
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| 1 | | AMENDMENT TO HOUSE BILL 383
| 2 | | AMENDMENT NO. ______. Amend House Bill 383 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Economic Development for a Growing Economy | 5 | | Tax Credit Act is amended by changing Section 5-15 as follows: | 6 | | (35 ILCS 10/5-15) | 7 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 8 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 9 | | or, as described in subsection (g) of this Section, a payment | 10 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 11 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 12 | | on the Taxpayer for a taxable year beginning
on or
after | 13 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 14 | | Department under this Act for that
taxable year. | 15 | | (a) The Department shall make Credit awards under this Act | 16 | | to foster job
creation and retention in Illinois. |
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| 1 | | (b) A person that proposes a project to create new jobs in | 2 | | Illinois must
enter into an Agreement with the
Department for | 3 | | the Credit under this Act. | 4 | | (c) The Credit shall be claimed for the taxable years | 5 | | specified in the
Agreement. | 6 | | (d) The Credit shall not exceed the Incremental Income Tax | 7 | | attributable to
the project that is the subject of the | 8 | | Agreement. | 9 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 10 | | Applicant that uses a PEO if all other award criteria are | 11 | | satisfied.
| 12 | | (f) In lieu of the Credit allowed under this Act against | 13 | | the taxes imposed pursuant to subsections (a) and (b) of | 14 | | Section 201 of the Illinois Income Tax Act for any taxable year | 15 | | ending on or after December 31, 2009, the Taxpayer may elect to | 16 | | claim the Credit against its obligation to pay over withholding | 17 | | under Section 704A of the Illinois Income Tax Act. | 18 | | (1) The election under this subsection (f) may be made | 19 | | only by a Taxpayer that (i) is primarily engaged in one of | 20 | | the following business activities: water purification and | 21 | | treatment, motor vehicle metal stamping, automobile | 22 | | manufacturing, automobile and light duty motor vehicle | 23 | | manufacturing, motor vehicle manufacturing, light truck | 24 | | and utility vehicle manufacturing, heavy duty truck | 25 | | manufacturing, motor vehicle body manufacturing, cable | 26 | | television infrastructure design or manufacturing, or |
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| 1 | | wireless telecommunication or computing terminal device | 2 | | design or manufacturing for use on public networks and (ii) | 3 | | meets the following criteria: | 4 | | (A) the Taxpayer (i) had an Illinois net loss or an | 5 | | Illinois net loss deduction under Section 207 of the | 6 | | Illinois Income Tax Act for the taxable year in which | 7 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 8 | | full-time employees in this State during the taxable | 9 | | year in which the Credit is awarded, (iii) has an | 10 | | Agreement under this Act on December 14, 2009 (the | 11 | | effective date of Public Act 96-834), and (iv) is in | 12 | | compliance with all provisions of that Agreement; | 13 | | (B) the Taxpayer (i) had an Illinois net loss or an | 14 | | Illinois net loss deduction under Section 207 of the | 15 | | Illinois Income Tax Act for the taxable year in which | 16 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 17 | | full-time employees in this State during the taxable | 18 | | year in which the Credit is awarded, and (iii) has | 19 | | applied for an Agreement within 365 days after December | 20 | | 14, 2009 (the effective date of Public Act 96-834); | 21 | | (C) the Taxpayer (i) had an Illinois net operating | 22 | | loss carryforward under Section 207 of the Illinois | 23 | | Income Tax Act in a taxable year ending during calendar | 24 | | year 2008, (ii) has applied for an Agreement within 150 | 25 | | days after the effective date of this amendatory Act of | 26 | | the 96th General Assembly, (iii) creates at least 400 |
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| 1 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 2 | | in Illinois that would have been at risk of relocation | 3 | | out of Illinois over a 10-year period, and (v) makes a | 4 | | capital investment of at least $75,000,000; | 5 | | (D) the Taxpayer (i) had an Illinois net operating | 6 | | loss carryforward under Section 207 of the Illinois | 7 | | Income Tax Act in a taxable year ending during calendar | 8 | | year 2009, (ii) has applied for an Agreement within 150 | 9 | | days after the effective date of this amendatory Act of | 10 | | the 96th General Assembly, (iii) creates at least 150 | 11 | | new jobs, (iv) retains at least 1,000 jobs in Illinois | 12 | | that would have been at risk of relocation out of | 13 | | Illinois over a 10-year period, and (v) makes a capital | 14 | | investment of at least $57,000,000; or | 15 | | (E) the Taxpayer (i) employed at least 2,500 | 16 | | full-time employees in the State during the year in | 17 | | which the Credit is awarded, (ii) commits to make at | 18 | | least $500,000,000 in combined capital improvements | 19 | | and project costs under the Agreement, (iii) applies | 20 | | for an Agreement between January 1, 2011 and June 30, | 21 | | 2011, (iv) executes an Agreement for the Credit during | 22 | | calendar year 2011, and (v) was incorporated no more | 23 | | than 5 years before the filing of an application for an | 24 | | Agreement. | 25 | | (1.5) The election under this subsection (f) may also | 26 | | be made by a Taxpayer for any Credit awarded pursuant to an |
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| 1 | | agreement that was executed between January 1, 2011 and | 2 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 3 | | the manufacture of inner tubes or tires, or both, from | 4 | | natural and synthetic rubber, (ii) employs a minimum of | 5 | | 2,400 full-time employees in Illinois at the time of | 6 | | application, (iii) creates at least 350 full-time jobs and | 7 | | retains at least 250 full-time jobs in Illinois that would | 8 | | have been at risk of being created or retained outside of | 9 | | Illinois, and (iv) makes a capital investment of at least | 10 | | $200,000,000 at the project location. | 11 | | (1.6) The election under this subsection (f) may also | 12 | | be made by a Taxpayer for any Credit awarded pursuant to an | 13 | | agreement that was executed within 150 days after the | 14 | | effective date of this amendatory Act of the 97th General | 15 | | Assembly, if the Taxpayer (i) is primarily engaged in the | 16 | | operation of a discount department store, (ii) maintains | 17 | | its corporate headquarters in Illinois, (iii) employs a | 18 | | minimum of 4,250 full-time employees at its corporate | 19 | | headquarters in Illinois at the time of application, (iv) | 20 | | retains at least 4,250 full-time jobs in Illinois that | 21 | | would have been at risk of being relocated outside of | 22 | | Illinois, (v) had a minimum of $40,000,000,000 in total | 23 | | revenue in 2010, and (vi) makes a capital investment of at | 24 | | least $300,000,000 at the project location. | 25 | | (1.7) Notwithstanding any other provision of law, the | 26 | | election under this subsection (f) may also be made by a |
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| 1 | | Taxpayer for any Credit awarded pursuant to an agreement | 2 | | that was executed or applied for on or after July 1, 2011 | 3 | | and on or before March 31, 2012, if the Taxpayer is | 4 | | primarily engaged in the manufacture of original and | 5 | | aftermarket filtration parts and products for automobiles, | 6 | | motor vehicles, light duty motor vehicles, light trucks and | 7 | | utility vehicles, and heavy duty trucks, (ii) employs a | 8 | | minimum of 1,000 full-time employees in Illinois at the | 9 | | time of application, (iii) creates at least 250 full-time | 10 | | jobs in Illinois, (iv) relocates its corporate | 11 | | headquarters to Illinois from another state, and (v) makes | 12 | | a capital investment of at least $4,000,000 at the project | 13 | | location. | 14 | | (1.8) Notwithstanding any other provision of law, an | 15 | | election under this subsection (f) may also be made by a | 16 | | Taxpayer that: | 17 | | (A) is engaged in business as a commercial | 18 | | property-casualty insurance provider; and | 19 | | (B) entered into an Agreement for a Credit in | 20 | | calendar year 2013, which required the Taxpayer to (i) | 21 | | make a capital investment of at least $128,000,000 over | 22 | | a 2-year period, (ii) create at least 100 full-time | 23 | | jobs within 2 years after the effective date of the | 24 | | Agreement, (iii) create at least 250 full-time jobs | 25 | | within 5 years after the effective date of the | 26 | | Agreement, and (iv) retain at least 1,000 full-time |
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| 1 | | jobs at a facility in Schaumburg, Illinois. | 2 | | (2) An election under this subsection shall allow the | 3 | | credit to be taken against payments otherwise due under | 4 | | Section 704A of the Illinois Income Tax Act during the | 5 | | first calendar year beginning after the end of the taxable | 6 | | year in which the credit is awarded under this Act. | 7 | | (3) The election shall be made in the form and manner | 8 | | required by the Illinois Department of Revenue and, once | 9 | | made, shall be irrevocable. | 10 | | (4) If a Taxpayer who meets the requirements of | 11 | | subparagraph (A) of paragraph (1) of this subsection (f) | 12 | | elects to claim the Credit against its withholdings as | 13 | | provided in this subsection (f), then, on and after the | 14 | | date of the election, the terms of the Agreement between | 15 | | the Taxpayer and the Department may not be further amended | 16 | | during the term of the Agreement. | 17 | | (g) A pass-through entity that has been awarded a credit | 18 | | under this Act, its shareholders, or its partners may treat | 19 | | some or all of the credit awarded pursuant to this Act as a tax | 20 | | payment for purposes of the Illinois Income Tax Act. The term | 21 | | "tax payment" means a payment as described in Article 6 or | 22 | | Article 8 of the Illinois Income Tax Act or a composite payment | 23 | | made by a pass-through entity on behalf of any of its | 24 | | shareholders or partners to satisfy such shareholders' or | 25 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 26 | | Section 201 of the Illinois Income Tax Act. In no event shall |
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| 1 | | the amount of the award credited pursuant to this Act exceed | 2 | | the Illinois income tax liability of the pass-through entity or | 3 | | its shareholders or partners for the taxable year. | 4 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 5 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 6 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.".
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