Illinois General Assembly - Full Text of HB2536
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Full Text of HB2536  98th General Assembly

HB2536sam003 98TH GENERAL ASSEMBLY

Sen. Andy Manar

Filed: 11/6/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2536

2    AMENDMENT NO. ______. Amend House Bill 2536, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Economic Development for a Growing Economy
6Tax Credit Act is amended by changing Section 5-15 as follows:
 
7    (35 ILCS 10/5-15)
8    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
9forth in this Act, a Taxpayer is entitled to a Credit against
10or, as described in subsection (g) of this Section, a payment
11towards taxes imposed pursuant to subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act that may be imposed
13on the Taxpayer for a taxable year beginning on or after
14January 1, 1999, if the Taxpayer is awarded a Credit by the
15Department under this Act for that taxable year.
16    (a) The Department shall make Credit awards under this Act

 

 

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1to foster job creation and retention in Illinois.
2    (b) A person that proposes a project to create new jobs in
3Illinois must enter into an Agreement with the Department for
4the Credit under this Act.
5    (c) The Credit shall be claimed for the taxable years
6specified in the Agreement.
7    (d) The Credit shall not exceed the Incremental Income Tax
8attributable to the project that is the subject of the
9Agreement.
10    (e) Nothing herein shall prohibit a Tax Credit Award to an
11Applicant that uses a PEO if all other award criteria are
12satisfied.
13    (f) In lieu of the Credit allowed under this Act against
14the taxes imposed pursuant to subsections (a) and (b) of
15Section 201 of the Illinois Income Tax Act for any taxable year
16ending on or after December 31, 2009, the Taxpayer may elect to
17claim the Credit against its obligation to pay over withholding
18under Section 704A of the Illinois Income Tax Act.
19        (1) The election under this subsection (f) may be made
20    only by a Taxpayer that (i) is primarily engaged in one of
21    the following business activities: water purification and
22    treatment, motor vehicle metal stamping, automobile
23    manufacturing, automobile and light duty motor vehicle
24    manufacturing, motor vehicle manufacturing, light truck
25    and utility vehicle manufacturing, heavy duty truck
26    manufacturing, motor vehicle body manufacturing, cable

 

 

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1    television infrastructure design or manufacturing, or
2    wireless telecommunication or computing terminal device
3    design or manufacturing for use on public networks and (ii)
4    meets the following criteria:
5            (A) the Taxpayer (i) had an Illinois net loss or an
6        Illinois net loss deduction under Section 207 of the
7        Illinois Income Tax Act for the taxable year in which
8        the Credit is awarded, (ii) employed a minimum of 1,000
9        full-time employees in this State during the taxable
10        year in which the Credit is awarded, (iii) has an
11        Agreement under this Act on December 14, 2009 (the
12        effective date of Public Act 96-834), and (iv) is in
13        compliance with all provisions of that Agreement;
14            (B) the Taxpayer (i) had an Illinois net loss or an
15        Illinois net loss deduction under Section 207 of the
16        Illinois Income Tax Act for the taxable year in which
17        the Credit is awarded, (ii) employed a minimum of 1,000
18        full-time employees in this State during the taxable
19        year in which the Credit is awarded, and (iii) has
20        applied for an Agreement within 365 days after December
21        14, 2009 (the effective date of Public Act 96-834);
22            (C) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during calendar
25        year 2008, (ii) has applied for an Agreement within 150
26        days after the effective date of this amendatory Act of

 

 

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1        the 96th General Assembly, (iii) creates at least 400
2        new jobs in Illinois, (iv) retains at least 2,000 jobs
3        in Illinois that would have been at risk of relocation
4        out of Illinois over a 10-year period, and (v) makes a
5        capital investment of at least $75,000,000;
6            (D) the Taxpayer (i) had an Illinois net operating
7        loss carryforward under Section 207 of the Illinois
8        Income Tax Act in a taxable year ending during calendar
9        year 2009, (ii) has applied for an Agreement within 150
10        days after the effective date of this amendatory Act of
11        the 96th General Assembly, (iii) creates at least 150
12        new jobs, (iv) retains at least 1,000 jobs in Illinois
13        that would have been at risk of relocation out of
14        Illinois over a 10-year period, and (v) makes a capital
15        investment of at least $57,000,000; or
16            (E) the Taxpayer (i) employed at least 2,500
17        full-time employees in the State during the year in
18        which the Credit is awarded, (ii) commits to make at
19        least $500,000,000 in combined capital improvements
20        and project costs under the Agreement, (iii) applies
21        for an Agreement between January 1, 2011 and June 30,
22        2011, (iv) executes an Agreement for the Credit during
23        calendar year 2011, and (v) was incorporated no more
24        than 5 years before the filing of an application for an
25        Agreement.
26        (1.5) The election under this subsection (f) may also

 

 

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1    be made by a Taxpayer for any Credit awarded pursuant to an
2    agreement that was executed between January 1, 2011 and
3    June 30, 2011, if the Taxpayer (i) is primarily engaged in
4    the manufacture of inner tubes or tires, or both, from
5    natural and synthetic rubber, (ii) employs a minimum of
6    2,400 full-time employees in Illinois at the time of
7    application, (iii) creates at least 350 full-time jobs and
8    retains at least 250 full-time jobs in Illinois that would
9    have been at risk of being created or retained outside of
10    Illinois, and (iv) makes a capital investment of at least
11    $200,000,000 at the project location.
12        (1.6) The election under this subsection (f) may also
13    be made by a Taxpayer for any Credit awarded pursuant to an
14    agreement that was executed within 150 days after the
15    effective date of this amendatory Act of the 97th General
16    Assembly, if the Taxpayer (i) is primarily engaged in the
17    operation of a discount department store, (ii) maintains
18    its corporate headquarters in Illinois, (iii) employs a
19    minimum of 4,250 full-time employees at its corporate
20    headquarters in Illinois at the time of application, (iv)
21    retains at least 4,250 full-time jobs in Illinois that
22    would have been at risk of being relocated outside of
23    Illinois, (v) had a minimum of $40,000,000,000 in total
24    revenue in 2010, and (vi) makes a capital investment of at
25    least $300,000,000 at the project location.
26        (1.7) Notwithstanding any other provision of law, the

 

 

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1    election under this subsection (f) may also be made by a
2    Taxpayer for any Credit awarded pursuant to an agreement
3    that was executed or applied for on or after July 1, 2011
4    and on or before March 31, 2012, if the Taxpayer is
5    primarily engaged in the manufacture of original and
6    aftermarket filtration parts and products for automobiles,
7    motor vehicles, light duty motor vehicles, light trucks and
8    utility vehicles, and heavy duty trucks, (ii) employs a
9    minimum of 1,000 full-time employees in Illinois at the
10    time of application, (iii) creates at least 250 full-time
11    jobs in Illinois, (iv) relocates its corporate
12    headquarters to Illinois from another state, and (v) makes
13    a capital investment of at least $4,000,000 at the project
14    location.
15        (1.8) Notwithstanding any other provision of law, the
16    election under this subsection (f) may also be made by a
17    Taxpayer for any Credit awarded pursuant to an agreement
18    that was executed within 150 days after the effective date
19    of this amendatory Act of the 98th General Assembly if the
20    Taxpayer (i) is primarily engaged in agricultural
21    processing, (ii) maintains its corporate headquarters in
22    Illinois, and (iii) exported at least $1,000,000,000 of
23    goods produced in Illinois in 2012, and the agreement
24    requires the Taxpayer:
25            (A) to employ and maintain from among its
26        employment base in Illinois a minimum of 200 full-time

 

 

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1        employees at a global corporate headquarters
2        established in Illinois by the Taxpayer after the
3        effective date of this amendatory Act of the 98th
4        General Assembly; at least 100 of those employees shall
5        be new hires in full-time equivalent jobs; the
6        remainder of those employees shall be employed by the
7        Taxpayer in jobs which would have been at risk of being
8        relocated outside of Illinois;
9            (B) to relocate, within 5 years after the effective
10        date of this amendatory Act of the 98th General
11        Assembly, at least 100 full-time equivalent positions
12        from a location outside of Illinois to a location in
13        the municipality where the Taxpayer's global corporate
14        headquarters were located on the effective date of this
15        amendatory Act of the 98th General Assembly and which
16        will remain the Taxpayer's North American
17        headquarters; those positions may be filled by new
18        hires or by current employees of the Taxpayer;
19            (C) in addition to the positions specified in
20        paragraph (D), to hire at least 100 full-time
21        equivalent employees annually for a period of 5 years
22        after the effective date of this amendatory Act of the
23        98th General Assembly, in positions that are new, open,
24        or vacated, in order to support employment levels in
25        the municipality where the Taxpayer's global corporate
26        headquarters were located on the effective date of this

 

 

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1        amendatory Act of the 98th General Assembly and which
2        will remain the Taxpayer's North American
3        headquarters;
4            (D) to establish and maintain an internal
5        committee for a period of 5 years after the effective
6        date of this amendatory Act of the 98th General
7        Assembly to facilitate and promote the creation of
8        positions for new employees and new employment in the
9        municipality where its global corporate headquarters
10        were located on the effective date of this amendatory
11        Act of the 98th General Assembly and which will remain
12        the Taxpayer's North American headquarters; and
13            (E) to incur at least $20,000,000 in a combination
14        of capital and relocation expenses in connection with
15        the relocation of its global corporate headquarters.
16        (2) An election under this subsection shall allow the
17    credit to be taken against payments otherwise due under
18    Section 704A of the Illinois Income Tax Act during the
19    first calendar year beginning after the end of the taxable
20    year in which the credit is awarded under this Act.
21        (3) The election shall be made in the form and manner
22    required by the Illinois Department of Revenue and, once
23    made, shall be irrevocable.
24        (4) If a Taxpayer who meets the requirements of
25    subparagraph (A) of paragraph (1) of this subsection (f)
26    elects to claim the Credit against its withholdings as

 

 

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1    provided in this subsection (f), then, on and after the
2    date of the election, the terms of the Agreement between
3    the Taxpayer and the Department may not be further amended
4    during the term of the Agreement.
5    (g) A pass-through entity that has been awarded a credit
6under this Act, its shareholders, or its partners may treat
7some or all of the credit awarded pursuant to this Act as a tax
8payment for purposes of the Illinois Income Tax Act. The term
9"tax payment" means a payment as described in Article 6 or
10Article 8 of the Illinois Income Tax Act or a composite payment
11made by a pass-through entity on behalf of any of its
12shareholders or partners to satisfy such shareholders' or
13partners' taxes imposed pursuant to subsections (a) and (b) of
14Section 201 of the Illinois Income Tax Act. In no event shall
15the amount of the award credited pursuant to this Act exceed
16the Illinois income tax liability of the pass-through entity or
17its shareholders or partners for the taxable year.
18(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
1996-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
203-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".