(20 ILCS 655/11)
(from Ch. 67 1/2, par. 617)
(a) A business entity may receive a deduction against
income subject to state taxes for a contribution to a designated zone
organization if the project for which the contribution is made has been
specifically approved by the designating municipality or county, and by the Department.
(b) Any designated zone organization seeking to have a project approved
for contribution must submit an application to the Department describing
the nature and benefit of the project and its potential contributors.
The application must address how the following criteria will be met:
(1) The project must contribute to the self help efforts of the residents
of the area involved.
(2) The project must involve the residents of the area in planning and
implement the project.
(3) The project's lack of sufficient resources.
(4) The designated zone organization must be fiscally responsible for the project.
(c) The project must enhance the Enterprise Zone in one of the following ways:
(1) by creating permanent jobs;
(2) by physically improving the housing stock;
(3) stimulating neighborhood business activity; or
(4) by preventing crime.
(d) If the designated zone organization demonstrates its ability to meet
the criteria in subsection (b), and will enhance the neighborhood in one
of the ways listed in subsection (c), the Department shall approve the
organization's proposed projects and specify the amount of contributions it
is eligible to receive for such project. Comments from state elected
officials, and county and municipal officials in which all or part of the
Enterprise Zone are located, or in which the project is proposed to be
located, shall be solicited by the Department in making such decision.
(e) Within 45 days of the receipt of an application, the Department shall
give notice to the applicant as to whether the application has been approved
or disapproved. If the Department disapproves the application, it shall
specify the reasons for this decision and allow 60 days for the applicant to
amend and resubmit its application. The Department shall provide assistance
upon request to applicants. Resubmitted applications shall receive the
Department's approval or disapproval within 30 days of submission. Those
resubmitted applications satisfying initial Department objectives shall be
approved unless reasonable circumstances warrant disapproval.
(f) On an annual basis, the designated zone organization shall furnish a
statement to the Department on the programmatic and financial status of any
approved project and an audited financial statement of the project.
(g) For any project which is approved and for which there is a specified
amount of contributions which the designated Zone Organization may receive
for such project as provided in subsection (d) of this Section, the designated
Zone Organization shall provide to the Department any information necessary
to determine the eligibility of a contribution to the project for a deduction
pursuant to subsection (b)(2)(N) of Section 203 of the "Illinois Income
Tax Act". The Department shall certify to the Department of Revenue the
taxpayers eligible for and the amounts of contributions which those taxpayers
may claim as a deduction pursuant to subsection (b)(2)(N) of Section 203
of the "Illinois Income Tax Act". The total of all actual contributions
approved by the Department for deductions pursuant to subsection (b)(2)(N)
of Section 203 of the "Illinois Income Tax Act" shall not exceed $15,400,000
in any one calendar year.
(Source: P.A. 83-1539.)