WATSON-CLAYBORNE-DILLARD-NOLAND-PARKER AND DONAHUE.
ECONOMIC DEVEL TAX CREDIT ACT
Synopsis of Bill as introduced:
Creates the Economic Development for a Growing Economy Tax Credit
Act. Provides that the Department of Commerce and Community Affairs
(DCCA), in cooperation with the Department of Revenue, shall grant tax
credits against Illinois income tax liability to applicants creating
new jobs in Illinois if the applicant's project to create new jobs
meets certain criteria, including the creation of 100 new full-time
jobs in Illinois. Provides that DCCA shall enter into agreements with
the qualifying applicants. Provides that credit awards under the Act
shall be used for certain purposes, including capital investment,
infrastructure development, debt service, research and development,
job training and education, lease costs, or relocation costs.
Provides that DCCA shall determine the duration and amount of the
credit. Provides that the duration may not exceed 15 taxable years.
Provides that the credit may be stated as a percentage of the new
employees' income tax withholdings attributable to the applicant's
project and may include a fixed dollar limitation. Provides that if
the Director of DCCA determines that an applicant is in noncompliance
with the provisions of this Act, the Director shall notify the
taxpayer of the alleged noncompliance and allow the taxpayer a
reasonable opportunity to explain the noncompliance. Provides that if
after this period the Director determines the applicant is still in
noncompliance, the Director shall instruct the Department of Revenue
to issue a notice of deficiency to the taxpayer. Requires the
Director to submit an annual report on the tax credit program under
this Act to the Governor and the General Assembly. Requires DCCA to
evaluate the tax credit program biennially and submit its findings
to the Governor and the General Assembly. Provides that DCCA may
adopt rules to implement the provisions of the Act, including charging
a fee to recipients of tax credit awards for administration of the tax
credit program. Provides that the charges collected, if any, shall be
deposited into the Economic Development for a Growing Economy Fund.
Amends the State Finance Act to create the Fund. Amends the Illinois
Income Tax Act to create the Economic Development for a Growing
Economy Tax Credit. Exempts the credit from the sunset provisions.
SENATE AMENDMENT NO. 1.
Adds reference to:
20 ILCS 605/46.62 from Ch. 127, par. 46.62
30 ILCS 105/5.490 new
35 ILCS 5/211 new
20 ILCS 700/1002 from Ch. 127, par. 3701-2
20 ILCS 700/1003 from Ch. 127, par. 3701-3
20 ILCS 700/1004 from Ch. 127, par. 3701-4
20 ILCS 700/2001 from Ch. 127, par. 3702-1
20 ILCS 700/2002 from Ch. 127, par. 3702-2
20 ILCS 700/2003 from Ch. 127, par. 3702-3
20 ILCS 700/Art. 3 heading
20 ILCS 700/3001 from Ch. 127, par. 3703-1
20 ILCS 700/3002 from Ch. 127, par. 3703-2
20 ILCS 700/3003 from Ch. 127, par. 3703-3
20 ILCS 700/3004 from Ch. 127, par. 3703-4
20 ILCS 700/3004.5 new
20 ILCS 700/Art. 3.5 heading new
20 ILCS 700/3501 new
20 ILCS 700/3505 new
20 ILCS 700/3510 new
20 ILCS 700/3515 new
20 ILCS 700/3520 new
20 ILCS 700/3525 new
20 ILCS 700/3530 new
20 ILCS 700/4003 from Ch. 127, par. 3704-3
20 ILCS 605/46.32a from Ch. 127, par. 46.32a
20 ILCS 605/46.19a from Ch. 127, par. 46.19a
20 ILCS 705/20
20 ILCS 3965/3 from Ch. 127, par. 3953
20 ILCS 3965/4.5 new
30 ILCS 575/9 from Ch. 127, par. 132.609
20 ILCS 605/46.44 rep.
Deletes everything. Reinserts the provisions of the bill.
Specifies certain duties and powers of the Department of Commerce and
Community Affairs under the Economic Development for a Growing Economy
Tax Credit Act. Establishes additional requirements for the tax
credit. Amends the Technology Advancement and Development Act. Changes
the name of the Advanced Technology Investment Program to the Illinois
Technology Enterprise Development and Investment Program. Provides
that the Department of Commerce and Community Affairs may fund
regional technology enterprise development centers and provide grants
under the program with intermediary organizations and participating
lenders or investors. Establishes Technology Enterprise Centers
requirements. Amends the Civil Administrative Code of Illinois to
make a corresponding program title change. Establishes the Business
Modernization Initiative and Manufacturing Extension Program to
develop, commercialize, and fund the transfer of new technologies to
public and private entities with assistance from financial
intermediaries. Further amends the Civil Administrative Code of
Illinois concerning the Department of Commerce and Community Affairs.
Creates a Labor-Management-Community Cooperation Committee (now
Labor-Management) within the Department. Adds to the Committee 6
community leadership appointees and the Secretary of Human Services,
and Directors of Public Health and Employment Security. Provides that
the committee shall support the development of local coalitions to
implement family-friendly workplace policies and advise the Department
on dependent care and other employment-related family initiatives.
Authorizes the Committee to make $5,000 grants to support the planning
of regional community conferences and to make grants to support
employer pilot projects that promote work and family issues and to
support local workforce dependent care services. Authorizes the
Department to establish an Illinois Work and Family Clearinghouse.
Creates the Illinois Business Regulatory Review Act to form an
Economic Development Board Committee to make recommendations to revise
agency rules that burden small businesses. Authorizes grants for
entrepreneurial education and training initiatives for youth and adult
learners. Amends the Women's Business Ownership Act to change the
repeal date to September 1, 2004 (now 1999). Amends the Illinois
Economic Development Board Act to change the membership of the Board.
Mandates that the board establish a Business Investment Location
Development Committee and a Business Regulatory Review Committee.
Amends the Business Enterprise for Minorities, Females and Persons
with Disabilities Act to change the repeal date to September 6, 2004
(now 1999). Creates the State and Regional Development Strategy Act to
mandate that the Department of Commerce and Community Affairs prepare
an economic development strategy for the State every 4 years.
Provides that the strategy shall contain components concerning the
State's needs for competitive commerce and industry and for
partnerships between the public and private sectors. Provides that
the strategy must be published and submitted to the Governor,
President and Minority Leader of the Senate, Speaker and Minority
Leader of the House of Representatives, the Illinois Economic
Development Board, and the Economic and Fiscal Commission. Amends the
Civil Administrative Code of Illinois concerning the Department of
Commerce and Community Affairs. Deletes the provisions mandating the
preparation of a similar economic development strategy. Makes other
changes. Effective immediately.
SENATE AMENDMENT NO. 2.
In the new Economic Development for a Growing Economy Tax Credit
Act, provides that "noncompliance date" means the day following the
last date (instead of the last date) upon which the taxpayer was in
compliance with the agreement under the Act. Provides that in con-
sidering an applicant's project for a credit, the political sub-
divisions affected by the project must have committed local incentives
considering the local ability to assist. Provides that the applicant's
agreement must include a requirement that project operations shall be
stated as a minimum number of years not to exceed 10 (now may be stat-
ed as a minimum number of years or a multiple of the credit dura-
tion). In the Development Corporation Program of the Technology Ad-
vancement and Development Act, provides that financial assistance may
be in the form of qualified security investments (now qualified
securities). Makes other changes.
HOUSE AMENDMENT NO. 1.
Provides that to qualify for a credit under the Economic
Development for a Growing Economy Tax Credit Act an applicant's
project must meet the Act's investment and employment requirements or
(now and) meet the Department of Commerce and Community Affairs'
investment and employment requirements.
Last action on Bill: PUBLIC ACT.............................. 91-0476
Last action date: 99-08-11
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 2
END OF INQUIRY
Full Text Bill Status