100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3160

 

Introduced , by Rep. Sheri Jesiel

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-185
35 ILCS 5/224 new

    Amends the Property Tax Code. Provides that, for taxing districts in counties with more than 700,000 inhabitants but fewer than 710,000 inhabitants, the limiting rate under the Property Tax Extension Limitation Law shall be the lesser of (i) the limiting rate as otherwise calculated under that Law or (ii) 2.5 times the median aggregate tax rate for all taxing districts within the county. Amends the Illinois Income Tax Act. Creates an income tax credit for businesses in an amount not to exceed $5,000 for each new full-time employee hired by the taxpayer in calendar year 2017 or 2018 to work at a location in a county with more than 700,000 inhabitants but fewer than 710,000 inhabitants. Provides that, of the $5,000 credit amount, (i) $3,000 is allowed as a credit for the taxable year in which the employee was hired if the employee remains employed by the taxpayer on the last day of the taxable year and (ii) $2,000 is allowed as a credit for the following taxable year if the employee remains employed by the employer on the last day of that taxable year. Effective immediately.


LRB100 08701 HLH 18837 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Property Tax Code is amended by changing
5Section 18-185 as follows:
 
6    (35 ILCS 200/18-185)
7    (Text of Section before amendment by P.A. 99-521)
8    Sec. 18-185. Short title; definitions. This Division 5 may
9be cited as the Property Tax Extension Limitation Law. As used
10in this Division 5:
11    "Consumer Price Index" means the Consumer Price Index for
12All Urban Consumers for all items published by the United
13States Department of Labor.
14    "Extension limitation" means (a) the lesser of 5% or the
15percentage increase in the Consumer Price Index during the
1612-month calendar year preceding the levy year or (b) the rate
17of increase approved by voters under Section 18-205.
18    "Affected county" means a county of 3,000,000 or more
19inhabitants or a county contiguous to a county of 3,000,000 or
20more inhabitants.
21    "Taxing district" has the same meaning provided in Section
221-150, except as otherwise provided in this Section. For the
231991 through 1994 levy years only, "taxing district" includes

 

 

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1only each non-home rule taxing district having the majority of
2its 1990 equalized assessed value within any county or counties
3contiguous to a county with 3,000,000 or more inhabitants.
4Beginning with the 1995 levy year, "taxing district" includes
5only each non-home rule taxing district subject to this Law
6before the 1995 levy year and each non-home rule taxing
7district not subject to this Law before the 1995 levy year
8having the majority of its 1994 equalized assessed value in an
9affected county or counties. Beginning with the levy year in
10which this Law becomes applicable to a taxing district as
11provided in Section 18-213, "taxing district" also includes
12those taxing districts made subject to this Law as provided in
13Section 18-213.
14    "Aggregate extension" for taxing districts to which this
15Law applied before the 1995 levy year means the annual
16corporate extension for the taxing district and those special
17purpose extensions that are made annually for the taxing
18district, excluding special purpose extensions: (a) made for
19the taxing district to pay interest or principal on general
20obligation bonds that were approved by referendum; (b) made for
21any taxing district to pay interest or principal on general
22obligation bonds issued before October 1, 1991; (c) made for
23any taxing district to pay interest or principal on bonds
24issued to refund or continue to refund those bonds issued
25before October 1, 1991; (d) made for any taxing district to pay
26interest or principal on bonds issued to refund or continue to

 

 

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1refund bonds issued after October 1, 1991 that were approved by
2referendum; (e) made for any taxing district to pay interest or
3principal on revenue bonds issued before October 1, 1991 for
4payment of which a property tax levy or the full faith and
5credit of the unit of local government is pledged; however, a
6tax for the payment of interest or principal on those bonds
7shall be made only after the governing body of the unit of
8local government finds that all other sources for payment are
9insufficient to make those payments; (f) made for payments
10under a building commission lease when the lease payments are
11for the retirement of bonds issued by the commission before
12October 1, 1991, to pay for the building project; (g) made for
13payments due under installment contracts entered into before
14October 1, 1991; (h) made for payments of principal and
15interest on bonds issued under the Metropolitan Water
16Reclamation District Act to finance construction projects
17initiated before October 1, 1991; (i) made for payments of
18principal and interest on limited bonds, as defined in Section
193 of the Local Government Debt Reform Act, in an amount not to
20exceed the debt service extension base less the amount in items
21(b), (c), (e), and (h) of this definition for non-referendum
22obligations, except obligations initially issued pursuant to
23referendum; (j) made for payments of principal and interest on
24bonds issued under Section 15 of the Local Government Debt
25Reform Act; (k) made by a school district that participates in
26the Special Education District of Lake County, created by

 

 

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1special education joint agreement under Section 10-22.31 of the
2School Code, for payment of the school district's share of the
3amounts required to be contributed by the Special Education
4District of Lake County to the Illinois Municipal Retirement
5Fund under Article 7 of the Illinois Pension Code; the amount
6of any extension under this item (k) shall be certified by the
7school district to the county clerk; (l) made to fund expenses
8of providing joint recreational programs for persons with
9disabilities under Section 5-8 of the Park District Code or
10Section 11-95-14 of the Illinois Municipal Code; (m) made for
11temporary relocation loan repayment purposes pursuant to
12Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
13payment of principal and interest on any bonds issued under the
14authority of Section 17-2.2d of the School Code; (o) made for
15contributions to a firefighter's pension fund created under
16Article 4 of the Illinois Pension Code, to the extent of the
17amount certified under item (5) of Section 4-134 of the
18Illinois Pension Code; and (p) made for road purposes in the
19first year after a township assumes the rights, powers, duties,
20assets, property, liabilities, obligations, and
21responsibilities of a road district abolished under the
22provisions of Section 6-133 of the Illinois Highway Code.
23    "Aggregate extension" for the taxing districts to which
24this Law did not apply before the 1995 levy year (except taxing
25districts subject to this Law in accordance with Section
2618-213) means the annual corporate extension for the taxing

 

 

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1district and those special purpose extensions that are made
2annually for the taxing district, excluding special purpose
3extensions: (a) made for the taxing district to pay interest or
4principal on general obligation bonds that were approved by
5referendum; (b) made for any taxing district to pay interest or
6principal on general obligation bonds issued before March 1,
71995; (c) made for any taxing district to pay interest or
8principal on bonds issued to refund or continue to refund those
9bonds issued before March 1, 1995; (d) made for any taxing
10district to pay interest or principal on bonds issued to refund
11or continue to refund bonds issued after March 1, 1995 that
12were approved by referendum; (e) made for any taxing district
13to pay interest or principal on revenue bonds issued before
14March 1, 1995 for payment of which a property tax levy or the
15full faith and credit of the unit of local government is
16pledged; however, a tax for the payment of interest or
17principal on those bonds shall be made only after the governing
18body of the unit of local government finds that all other
19sources for payment are insufficient to make those payments;
20(f) made for payments under a building commission lease when
21the lease payments are for the retirement of bonds issued by
22the commission before March 1, 1995 to pay for the building
23project; (g) made for payments due under installment contracts
24entered into before March 1, 1995; (h) made for payments of
25principal and interest on bonds issued under the Metropolitan
26Water Reclamation District Act to finance construction

 

 

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1projects initiated before October 1, 1991; (h-4) made for
2stormwater management purposes by the Metropolitan Water
3Reclamation District of Greater Chicago under Section 12 of the
4Metropolitan Water Reclamation District Act; (i) made for
5payments of principal and interest on limited bonds, as defined
6in Section 3 of the Local Government Debt Reform Act, in an
7amount not to exceed the debt service extension base less the
8amount in items (b), (c), and (e) of this definition for
9non-referendum obligations, except obligations initially
10issued pursuant to referendum and bonds described in subsection
11(h) of this definition; (j) made for payments of principal and
12interest on bonds issued under Section 15 of the Local
13Government Debt Reform Act; (k) made for payments of principal
14and interest on bonds authorized by Public Act 88-503 and
15issued under Section 20a of the Chicago Park District Act for
16aquarium or museum projects; (l) made for payments of principal
17and interest on bonds authorized by Public Act 87-1191 or
1893-601 and (i) issued pursuant to Section 21.2 of the Cook
19County Forest Preserve District Act, (ii) issued under Section
2042 of the Cook County Forest Preserve District Act for
21zoological park projects, or (iii) issued under Section 44.1 of
22the Cook County Forest Preserve District Act for botanical
23gardens projects; (m) made pursuant to Section 34-53.5 of the
24School Code, whether levied annually or not; (n) made to fund
25expenses of providing joint recreational programs for persons
26with disabilities under Section 5-8 of the Park District Code

 

 

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1or Section 11-95-14 of the Illinois Municipal Code; (o) made by
2the Chicago Park District for recreational programs for persons
3with disabilities under subsection (c) of Section 7.06 of the
4Chicago Park District Act; (p) made for contributions to a
5firefighter's pension fund created under Article 4 of the
6Illinois Pension Code, to the extent of the amount certified
7under item (5) of Section 4-134 of the Illinois Pension Code;
8and (q) made by Ford Heights School District 169 under Section
917-9.02 of the School Code.
10    "Aggregate extension" for all taxing districts to which
11this Law applies in accordance with Section 18-213, except for
12those taxing districts subject to paragraph (2) of subsection
13(e) of Section 18-213, means the annual corporate extension for
14the taxing district and those special purpose extensions that
15are made annually for the taxing district, excluding special
16purpose extensions: (a) made for the taxing district to pay
17interest or principal on general obligation bonds that were
18approved by referendum; (b) made for any taxing district to pay
19interest or principal on general obligation bonds issued before
20the date on which the referendum making this Law applicable to
21the taxing district is held; (c) made for any taxing district
22to pay interest or principal on bonds issued to refund or
23continue to refund those bonds issued before the date on which
24the referendum making this Law applicable to the taxing
25district is held; (d) made for any taxing district to pay
26interest or principal on bonds issued to refund or continue to

 

 

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1refund bonds issued after the date on which the referendum
2making this Law applicable to the taxing district is held if
3the bonds were approved by referendum after the date on which
4the referendum making this Law applicable to the taxing
5district is held; (e) made for any taxing district to pay
6interest or principal on revenue bonds issued before the date
7on which the referendum making this Law applicable to the
8taxing district is held for payment of which a property tax
9levy or the full faith and credit of the unit of local
10government is pledged; however, a tax for the payment of
11interest or principal on those bonds shall be made only after
12the governing body of the unit of local government finds that
13all other sources for payment are insufficient to make those
14payments; (f) made for payments under a building commission
15lease when the lease payments are for the retirement of bonds
16issued by the commission before the date on which the
17referendum making this Law applicable to the taxing district is
18held to pay for the building project; (g) made for payments due
19under installment contracts entered into before the date on
20which the referendum making this Law applicable to the taxing
21district is held; (h) made for payments of principal and
22interest on limited bonds, as defined in Section 3 of the Local
23Government Debt Reform Act, in an amount not to exceed the debt
24service extension base less the amount in items (b), (c), and
25(e) of this definition for non-referendum obligations, except
26obligations initially issued pursuant to referendum; (i) made

 

 

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1for payments of principal and interest on bonds issued under
2Section 15 of the Local Government Debt Reform Act; (j) made
3for a qualified airport authority to pay interest or principal
4on general obligation bonds issued for the purpose of paying
5obligations due under, or financing airport facilities
6required to be acquired, constructed, installed or equipped
7pursuant to, contracts entered into before March 1, 1996 (but
8not including any amendments to such a contract taking effect
9on or after that date); (k) made to fund expenses of providing
10joint recreational programs for persons with disabilities
11under Section 5-8 of the Park District Code or Section 11-95-14
12of the Illinois Municipal Code; (l) made for contributions to a
13firefighter's pension fund created under Article 4 of the
14Illinois Pension Code, to the extent of the amount certified
15under item (5) of Section 4-134 of the Illinois Pension Code;
16and (m) made for the taxing district to pay interest or
17principal on general obligation bonds issued pursuant to
18Section 19-3.10 of the School Code.
19    "Aggregate extension" for all taxing districts to which
20this Law applies in accordance with paragraph (2) of subsection
21(e) of Section 18-213 means the annual corporate extension for
22the taxing district and those special purpose extensions that
23are made annually for the taxing district, excluding special
24purpose extensions: (a) made for the taxing district to pay
25interest or principal on general obligation bonds that were
26approved by referendum; (b) made for any taxing district to pay

 

 

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1interest or principal on general obligation bonds issued before
2the effective date of this amendatory Act of 1997; (c) made for
3any taxing district to pay interest or principal on bonds
4issued to refund or continue to refund those bonds issued
5before the effective date of this amendatory Act of 1997; (d)
6made for any taxing district to pay interest or principal on
7bonds issued to refund or continue to refund bonds issued after
8the effective date of this amendatory Act of 1997 if the bonds
9were approved by referendum after the effective date of this
10amendatory Act of 1997; (e) made for any taxing district to pay
11interest or principal on revenue bonds issued before the
12effective date of this amendatory Act of 1997 for payment of
13which a property tax levy or the full faith and credit of the
14unit of local government is pledged; however, a tax for the
15payment of interest or principal on those bonds shall be made
16only after the governing body of the unit of local government
17finds that all other sources for payment are insufficient to
18make those payments; (f) made for payments under a building
19commission lease when the lease payments are for the retirement
20of bonds issued by the commission before the effective date of
21this amendatory Act of 1997 to pay for the building project;
22(g) made for payments due under installment contracts entered
23into before the effective date of this amendatory Act of 1997;
24(h) made for payments of principal and interest on limited
25bonds, as defined in Section 3 of the Local Government Debt
26Reform Act, in an amount not to exceed the debt service

 

 

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1extension base less the amount in items (b), (c), and (e) of
2this definition for non-referendum obligations, except
3obligations initially issued pursuant to referendum; (i) made
4for payments of principal and interest on bonds issued under
5Section 15 of the Local Government Debt Reform Act; (j) made
6for a qualified airport authority to pay interest or principal
7on general obligation bonds issued for the purpose of paying
8obligations due under, or financing airport facilities
9required to be acquired, constructed, installed or equipped
10pursuant to, contracts entered into before March 1, 1996 (but
11not including any amendments to such a contract taking effect
12on or after that date); (k) made to fund expenses of providing
13joint recreational programs for persons with disabilities
14under Section 5-8 of the Park District Code or Section 11-95-14
15of the Illinois Municipal Code; and (l) made for contributions
16to a firefighter's pension fund created under Article 4 of the
17Illinois Pension Code, to the extent of the amount certified
18under item (5) of Section 4-134 of the Illinois Pension Code.
19    "Debt service extension base" means an amount equal to that
20portion of the extension for a taxing district for the 1994
21levy year, or for those taxing districts subject to this Law in
22accordance with Section 18-213, except for those subject to
23paragraph (2) of subsection (e) of Section 18-213, for the levy
24year in which the referendum making this Law applicable to the
25taxing district is held, or for those taxing districts subject
26to this Law in accordance with paragraph (2) of subsection (e)

 

 

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1of Section 18-213 for the 1996 levy year, constituting an
2extension for payment of principal and interest on bonds issued
3by the taxing district without referendum, but not including
4excluded non-referendum bonds. For park districts (i) that were
5first subject to this Law in 1991 or 1995 and (ii) whose
6extension for the 1994 levy year for the payment of principal
7and interest on bonds issued by the park district without
8referendum (but not including excluded non-referendum bonds)
9was less than 51% of the amount for the 1991 levy year
10constituting an extension for payment of principal and interest
11on bonds issued by the park district without referendum (but
12not including excluded non-referendum bonds), "debt service
13extension base" means an amount equal to that portion of the
14extension for the 1991 levy year constituting an extension for
15payment of principal and interest on bonds issued by the park
16district without referendum (but not including excluded
17non-referendum bonds). A debt service extension base
18established or increased at any time pursuant to any provision
19of this Law, except Section 18-212, shall be increased each
20year commencing with the later of (i) the 2009 levy year or
21(ii) the first levy year in which this Law becomes applicable
22to the taxing district, by the lesser of 5% or the percentage
23increase in the Consumer Price Index during the 12-month
24calendar year preceding the levy year. The debt service
25extension base may be established or increased as provided
26under Section 18-212. "Excluded non-referendum bonds" means

 

 

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1(i) bonds authorized by Public Act 88-503 and issued under
2Section 20a of the Chicago Park District Act for aquarium and
3museum projects; (ii) bonds issued under Section 15 of the
4Local Government Debt Reform Act; or (iii) refunding
5obligations issued to refund or to continue to refund
6obligations initially issued pursuant to referendum.
7    "Special purpose extensions" include, but are not limited
8to, extensions for levies made on an annual basis for
9unemployment and workers' compensation, self-insurance,
10contributions to pension plans, and extensions made pursuant to
11Section 6-601 of the Illinois Highway Code for a road
12district's permanent road fund whether levied annually or not.
13The extension for a special service area is not included in the
14aggregate extension.
15    "Aggregate extension base" means the taxing district's
16last preceding aggregate extension as adjusted under Sections
1718-135, 18-215, and 18-230. An adjustment under Section 18-135
18shall be made for the 2007 levy year and all subsequent levy
19years whenever one or more counties within which a taxing
20district is located (i) used estimated valuations or rates when
21extending taxes in the taxing district for the last preceding
22levy year that resulted in the over or under extension of
23taxes, or (ii) increased or decreased the tax extension for the
24last preceding levy year as required by Section 18-135(c).
25Whenever an adjustment is required under Section 18-135, the
26aggregate extension base of the taxing district shall be equal

 

 

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1to the amount that the aggregate extension of the taxing
2district would have been for the last preceding levy year if
3either or both (i) actual, rather than estimated, valuations or
4rates had been used to calculate the extension of taxes for the
5last levy year, or (ii) the tax extension for the last
6preceding levy year had not been adjusted as required by
7subsection (c) of Section 18-135.
8    Notwithstanding any other provision of law, for levy year
92012, the aggregate extension base for West Northfield School
10District No. 31 in Cook County shall be $12,654,592.
11    "Levy year" has the same meaning as "year" under Section
121-155.
13    "New property" means (i) the assessed value, after final
14board of review or board of appeals action, of new improvements
15or additions to existing improvements on any parcel of real
16property that increase the assessed value of that real property
17during the levy year multiplied by the equalization factor
18issued by the Department under Section 17-30, (ii) the assessed
19value, after final board of review or board of appeals action,
20of real property not exempt from real estate taxation, which
21real property was exempt from real estate taxation for any
22portion of the immediately preceding levy year, multiplied by
23the equalization factor issued by the Department under Section
2417-30, including the assessed value, upon final stabilization
25of occupancy after new construction is complete, of any real
26property located within the boundaries of an otherwise or

 

 

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1previously exempt military reservation that is intended for
2residential use and owned by or leased to a private corporation
3or other entity, (iii) in counties that classify in accordance
4with Section 4 of Article IX of the Illinois Constitution, an
5incentive property's additional assessed value resulting from
6a scheduled increase in the level of assessment as applied to
7the first year final board of review market value, and (iv) any
8increase in assessed value due to oil or gas production from an
9oil or gas well required to be permitted under the Hydraulic
10Fracturing Regulatory Act that was not produced in or accounted
11for during the previous levy year. In addition, the county
12clerk in a county containing a population of 3,000,000 or more
13shall include in the 1997 recovered tax increment value for any
14school district, any recovered tax increment value that was
15applicable to the 1995 tax year calculations.
16    "Qualified airport authority" means an airport authority
17organized under the Airport Authorities Act and located in a
18county bordering on the State of Wisconsin and having a
19population in excess of 200,000 and not greater than 500,000.
20    "Recovered tax increment value" means, except as otherwise
21provided in this paragraph, the amount of the current year's
22equalized assessed value, in the first year after a
23municipality terminates the designation of an area as a
24redevelopment project area previously established under the
25Tax Increment Allocation Development Act in the Illinois
26Municipal Code, previously established under the Industrial

 

 

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1Jobs Recovery Law in the Illinois Municipal Code, previously
2established under the Economic Development Project Area Tax
3Increment Act of 1995, or previously established under the
4Economic Development Area Tax Increment Allocation Act, of each
5taxable lot, block, tract, or parcel of real property in the
6redevelopment project area over and above the initial equalized
7assessed value of each property in the redevelopment project
8area. For the taxes which are extended for the 1997 levy year,
9the recovered tax increment value for a non-home rule taxing
10district that first became subject to this Law for the 1995
11levy year because a majority of its 1994 equalized assessed
12value was in an affected county or counties shall be increased
13if a municipality terminated the designation of an area in 1993
14as a redevelopment project area previously established under
15the Tax Increment Allocation Development Act in the Illinois
16Municipal Code, previously established under the Industrial
17Jobs Recovery Law in the Illinois Municipal Code, or previously
18established under the Economic Development Area Tax Increment
19Allocation Act, by an amount equal to the 1994 equalized
20assessed value of each taxable lot, block, tract, or parcel of
21real property in the redevelopment project area over and above
22the initial equalized assessed value of each property in the
23redevelopment project area. In the first year after a
24municipality removes a taxable lot, block, tract, or parcel of
25real property from a redevelopment project area established
26under the Tax Increment Allocation Development Act in the

 

 

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1Illinois Municipal Code, the Industrial Jobs Recovery Law in
2the Illinois Municipal Code, or the Economic Development Area
3Tax Increment Allocation Act, "recovered tax increment value"
4means the amount of the current year's equalized assessed value
5of each taxable lot, block, tract, or parcel of real property
6removed from the redevelopment project area over and above the
7initial equalized assessed value of that real property before
8removal from the redevelopment project area.
9    Except as otherwise provided in this Section, "limiting
10rate" means a fraction the numerator of which is the last
11preceding aggregate extension base times an amount equal to one
12plus the extension limitation defined in this Section and the
13denominator of which is the current year's equalized assessed
14value of all real property in the territory under the
15jurisdiction of the taxing district during the prior levy year.
16For those taxing districts that reduced their aggregate
17extension for the last preceding levy year, the highest
18aggregate extension in any of the last 3 preceding levy years
19shall be used for the purpose of computing the limiting rate.
20The denominator shall not include new property or the recovered
21tax increment value. If a new rate, a rate decrease, or a
22limiting rate increase has been approved at an election held
23after March 21, 2006, then (i) the otherwise applicable
24limiting rate shall be increased by the amount of the new rate
25or shall be reduced by the amount of the rate decrease, as the
26case may be, or (ii) in the case of a limiting rate increase,

 

 

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1the limiting rate shall be equal to the rate set forth in the
2proposition approved by the voters for each of the years
3specified in the proposition, after which the limiting rate of
4the taxing district shall be calculated as otherwise provided.
5In the case of a taxing district that obtained referendum
6approval for an increased limiting rate on March 20, 2012, the
7limiting rate for tax year 2012 shall be the rate that
8generates the approximate total amount of taxes extendable for
9that tax year, as set forth in the proposition approved by the
10voters; this rate shall be the final rate applied by the county
11clerk for the aggregate of all capped funds of the district for
12tax year 2012. Notwithstanding any other provision of law,
13beginning in levy year 2017, in a county with more than 700,000
14inhabitants but fewer than 710,000 inhabitants, the county
15clerk shall ascertain the median aggregate tax rate for all
16taxing districts within that county. For those districts, the
17limiting rate shall be the lesser of (i) the limiting rate
18calculated under this paragraph or (ii) 2.5 times the median
19aggregate tax rate for all taxing districts within the county.
20(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
21eff. 7-27-15.)
 
22    (Text of Section after amendment by P.A. 99-521)
23    Sec. 18-185. Short title; definitions. This Division 5 may
24be cited as the Property Tax Extension Limitation Law. As used
25in this Division 5:

 

 

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1    "Consumer Price Index" means the Consumer Price Index for
2All Urban Consumers for all items published by the United
3States Department of Labor.
4    "Extension limitation" means (a) the lesser of 5% or the
5percentage increase in the Consumer Price Index during the
612-month calendar year preceding the levy year or (b) the rate
7of increase approved by voters under Section 18-205.
8    "Affected county" means a county of 3,000,000 or more
9inhabitants or a county contiguous to a county of 3,000,000 or
10more inhabitants.
11    "Taxing district" has the same meaning provided in Section
121-150, except as otherwise provided in this Section. For the
131991 through 1994 levy years only, "taxing district" includes
14only each non-home rule taxing district having the majority of
15its 1990 equalized assessed value within any county or counties
16contiguous to a county with 3,000,000 or more inhabitants.
17Beginning with the 1995 levy year, "taxing district" includes
18only each non-home rule taxing district subject to this Law
19before the 1995 levy year and each non-home rule taxing
20district not subject to this Law before the 1995 levy year
21having the majority of its 1994 equalized assessed value in an
22affected county or counties. Beginning with the levy year in
23which this Law becomes applicable to a taxing district as
24provided in Section 18-213, "taxing district" also includes
25those taxing districts made subject to this Law as provided in
26Section 18-213.

 

 

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1    "Aggregate extension" for taxing districts to which this
2Law applied before the 1995 levy year means the annual
3corporate extension for the taxing district and those special
4purpose extensions that are made annually for the taxing
5district, excluding special purpose extensions: (a) made for
6the taxing district to pay interest or principal on general
7obligation bonds that were approved by referendum; (b) made for
8any taxing district to pay interest or principal on general
9obligation bonds issued before October 1, 1991; (c) made for
10any taxing district to pay interest or principal on bonds
11issued to refund or continue to refund those bonds issued
12before October 1, 1991; (d) made for any taxing district to pay
13interest or principal on bonds issued to refund or continue to
14refund bonds issued after October 1, 1991 that were approved by
15referendum; (e) made for any taxing district to pay interest or
16principal on revenue bonds issued before October 1, 1991 for
17payment of which a property tax levy or the full faith and
18credit of the unit of local government is pledged; however, a
19tax for the payment of interest or principal on those bonds
20shall be made only after the governing body of the unit of
21local government finds that all other sources for payment are
22insufficient to make those payments; (f) made for payments
23under a building commission lease when the lease payments are
24for the retirement of bonds issued by the commission before
25October 1, 1991, to pay for the building project; (g) made for
26payments due under installment contracts entered into before

 

 

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1October 1, 1991; (h) made for payments of principal and
2interest on bonds issued under the Metropolitan Water
3Reclamation District Act to finance construction projects
4initiated before October 1, 1991; (i) made for payments of
5principal and interest on limited bonds, as defined in Section
63 of the Local Government Debt Reform Act, in an amount not to
7exceed the debt service extension base less the amount in items
8(b), (c), (e), and (h) of this definition for non-referendum
9obligations, except obligations initially issued pursuant to
10referendum; (j) made for payments of principal and interest on
11bonds issued under Section 15 of the Local Government Debt
12Reform Act; (k) made by a school district that participates in
13the Special Education District of Lake County, created by
14special education joint agreement under Section 10-22.31 of the
15School Code, for payment of the school district's share of the
16amounts required to be contributed by the Special Education
17District of Lake County to the Illinois Municipal Retirement
18Fund under Article 7 of the Illinois Pension Code; the amount
19of any extension under this item (k) shall be certified by the
20school district to the county clerk; (l) made to fund expenses
21of providing joint recreational programs for persons with
22disabilities under Section 5-8 of the Park District Code or
23Section 11-95-14 of the Illinois Municipal Code; (m) made for
24temporary relocation loan repayment purposes pursuant to
25Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
26payment of principal and interest on any bonds issued under the

 

 

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1authority of Section 17-2.2d of the School Code; (o) made for
2contributions to a firefighter's pension fund created under
3Article 4 of the Illinois Pension Code, to the extent of the
4amount certified under item (5) of Section 4-134 of the
5Illinois Pension Code; and (p) made for road purposes in the
6first year after a township assumes the rights, powers, duties,
7assets, property, liabilities, obligations, and
8responsibilities of a road district abolished under the
9provisions of Section 6-133 of the Illinois Highway Code.
10    "Aggregate extension" for the taxing districts to which
11this Law did not apply before the 1995 levy year (except taxing
12districts subject to this Law in accordance with Section
1318-213) means the annual corporate extension for the taxing
14district and those special purpose extensions that are made
15annually for the taxing district, excluding special purpose
16extensions: (a) made for the taxing district to pay interest or
17principal on general obligation bonds that were approved by
18referendum; (b) made for any taxing district to pay interest or
19principal on general obligation bonds issued before March 1,
201995; (c) made for any taxing district to pay interest or
21principal on bonds issued to refund or continue to refund those
22bonds issued before March 1, 1995; (d) made for any taxing
23district to pay interest or principal on bonds issued to refund
24or continue to refund bonds issued after March 1, 1995 that
25were approved by referendum; (e) made for any taxing district
26to pay interest or principal on revenue bonds issued before

 

 

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1March 1, 1995 for payment of which a property tax levy or the
2full faith and credit of the unit of local government is
3pledged; however, a tax for the payment of interest or
4principal on those bonds shall be made only after the governing
5body of the unit of local government finds that all other
6sources for payment are insufficient to make those payments;
7(f) made for payments under a building commission lease when
8the lease payments are for the retirement of bonds issued by
9the commission before March 1, 1995 to pay for the building
10project; (g) made for payments due under installment contracts
11entered into before March 1, 1995; (h) made for payments of
12principal and interest on bonds issued under the Metropolitan
13Water Reclamation District Act to finance construction
14projects initiated before October 1, 1991; (h-4) made for
15stormwater management purposes by the Metropolitan Water
16Reclamation District of Greater Chicago under Section 12 of the
17Metropolitan Water Reclamation District Act; (i) made for
18payments of principal and interest on limited bonds, as defined
19in Section 3 of the Local Government Debt Reform Act, in an
20amount not to exceed the debt service extension base less the
21amount in items (b), (c), and (e) of this definition for
22non-referendum obligations, except obligations initially
23issued pursuant to referendum and bonds described in subsection
24(h) of this definition; (j) made for payments of principal and
25interest on bonds issued under Section 15 of the Local
26Government Debt Reform Act; (k) made for payments of principal

 

 

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1and interest on bonds authorized by Public Act 88-503 and
2issued under Section 20a of the Chicago Park District Act for
3aquarium or museum projects; (l) made for payments of principal
4and interest on bonds authorized by Public Act 87-1191 or
593-601 and (i) issued pursuant to Section 21.2 of the Cook
6County Forest Preserve District Act, (ii) issued under Section
742 of the Cook County Forest Preserve District Act for
8zoological park projects, or (iii) issued under Section 44.1 of
9the Cook County Forest Preserve District Act for botanical
10gardens projects; (m) made pursuant to Section 34-53.5 of the
11School Code, whether levied annually or not; (n) made to fund
12expenses of providing joint recreational programs for persons
13with disabilities under Section 5-8 of the Park District Code
14or Section 11-95-14 of the Illinois Municipal Code; (o) made by
15the Chicago Park District for recreational programs for persons
16with disabilities under subsection (c) of Section 7.06 of the
17Chicago Park District Act; (p) made for contributions to a
18firefighter's pension fund created under Article 4 of the
19Illinois Pension Code, to the extent of the amount certified
20under item (5) of Section 4-134 of the Illinois Pension Code;
21(q) made by Ford Heights School District 169 under Section
2217-9.02 of the School Code; and (r) made for the purpose of
23making employer contributions to the Public School Teachers'
24Pension and Retirement Fund of Chicago under Section 34-53 of
25the School Code.
26    "Aggregate extension" for all taxing districts to which

 

 

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1this Law applies in accordance with Section 18-213, except for
2those taxing districts subject to paragraph (2) of subsection
3(e) of Section 18-213, means the annual corporate extension for
4the taxing district and those special purpose extensions that
5are made annually for the taxing district, excluding special
6purpose extensions: (a) made for the taxing district to pay
7interest or principal on general obligation bonds that were
8approved by referendum; (b) made for any taxing district to pay
9interest or principal on general obligation bonds issued before
10the date on which the referendum making this Law applicable to
11the taxing district is held; (c) made for any taxing district
12to pay interest or principal on bonds issued to refund or
13continue to refund those bonds issued before the date on which
14the referendum making this Law applicable to the taxing
15district is held; (d) made for any taxing district to pay
16interest or principal on bonds issued to refund or continue to
17refund bonds issued after the date on which the referendum
18making this Law applicable to the taxing district is held if
19the bonds were approved by referendum after the date on which
20the referendum making this Law applicable to the taxing
21district is held; (e) made for any taxing district to pay
22interest or principal on revenue bonds issued before the date
23on which the referendum making this Law applicable to the
24taxing district is held for payment of which a property tax
25levy or the full faith and credit of the unit of local
26government is pledged; however, a tax for the payment of

 

 

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1interest or principal on those bonds shall be made only after
2the governing body of the unit of local government finds that
3all other sources for payment are insufficient to make those
4payments; (f) made for payments under a building commission
5lease when the lease payments are for the retirement of bonds
6issued by the commission before the date on which the
7referendum making this Law applicable to the taxing district is
8held to pay for the building project; (g) made for payments due
9under installment contracts entered into before the date on
10which the referendum making this Law applicable to the taxing
11district is held; (h) made for payments of principal and
12interest on limited bonds, as defined in Section 3 of the Local
13Government Debt Reform Act, in an amount not to exceed the debt
14service extension base less the amount in items (b), (c), and
15(e) of this definition for non-referendum obligations, except
16obligations initially issued pursuant to referendum; (i) made
17for payments of principal and interest on bonds issued under
18Section 15 of the Local Government Debt Reform Act; (j) made
19for a qualified airport authority to pay interest or principal
20on general obligation bonds issued for the purpose of paying
21obligations due under, or financing airport facilities
22required to be acquired, constructed, installed or equipped
23pursuant to, contracts entered into before March 1, 1996 (but
24not including any amendments to such a contract taking effect
25on or after that date); (k) made to fund expenses of providing
26joint recreational programs for persons with disabilities

 

 

HB3160- 27 -LRB100 08701 HLH 18837 b

1under Section 5-8 of the Park District Code or Section 11-95-14
2of the Illinois Municipal Code; (l) made for contributions to a
3firefighter's pension fund created under Article 4 of the
4Illinois Pension Code, to the extent of the amount certified
5under item (5) of Section 4-134 of the Illinois Pension Code;
6and (m) made for the taxing district to pay interest or
7principal on general obligation bonds issued pursuant to
8Section 19-3.10 of the School Code.
9    "Aggregate extension" for all taxing districts to which
10this Law applies in accordance with paragraph (2) of subsection
11(e) of Section 18-213 means the annual corporate extension for
12the taxing district and those special purpose extensions that
13are made annually for the taxing district, excluding special
14purpose extensions: (a) made for the taxing district to pay
15interest or principal on general obligation bonds that were
16approved by referendum; (b) made for any taxing district to pay
17interest or principal on general obligation bonds issued before
18the effective date of this amendatory Act of 1997; (c) made for
19any taxing district to pay interest or principal on bonds
20issued to refund or continue to refund those bonds issued
21before the effective date of this amendatory Act of 1997; (d)
22made for any taxing district to pay interest or principal on
23bonds issued to refund or continue to refund bonds issued after
24the effective date of this amendatory Act of 1997 if the bonds
25were approved by referendum after the effective date of this
26amendatory Act of 1997; (e) made for any taxing district to pay

 

 

HB3160- 28 -LRB100 08701 HLH 18837 b

1interest or principal on revenue bonds issued before the
2effective date of this amendatory Act of 1997 for payment of
3which a property tax levy or the full faith and credit of the
4unit of local government is pledged; however, a tax for the
5payment of interest or principal on those bonds shall be made
6only after the governing body of the unit of local government
7finds that all other sources for payment are insufficient to
8make those payments; (f) made for payments under a building
9commission lease when the lease payments are for the retirement
10of bonds issued by the commission before the effective date of
11this amendatory Act of 1997 to pay for the building project;
12(g) made for payments due under installment contracts entered
13into before the effective date of this amendatory Act of 1997;
14(h) made for payments of principal and interest on limited
15bonds, as defined in Section 3 of the Local Government Debt
16Reform Act, in an amount not to exceed the debt service
17extension base less the amount in items (b), (c), and (e) of
18this definition for non-referendum obligations, except
19obligations initially issued pursuant to referendum; (i) made
20for payments of principal and interest on bonds issued under
21Section 15 of the Local Government Debt Reform Act; (j) made
22for a qualified airport authority to pay interest or principal
23on general obligation bonds issued for the purpose of paying
24obligations due under, or financing airport facilities
25required to be acquired, constructed, installed or equipped
26pursuant to, contracts entered into before March 1, 1996 (but

 

 

HB3160- 29 -LRB100 08701 HLH 18837 b

1not including any amendments to such a contract taking effect
2on or after that date); (k) made to fund expenses of providing
3joint recreational programs for persons with disabilities
4under Section 5-8 of the Park District Code or Section 11-95-14
5of the Illinois Municipal Code; and (l) made for contributions
6to a firefighter's pension fund created under Article 4 of the
7Illinois Pension Code, to the extent of the amount certified
8under item (5) of Section 4-134 of the Illinois Pension Code.
9    "Debt service extension base" means an amount equal to that
10portion of the extension for a taxing district for the 1994
11levy year, or for those taxing districts subject to this Law in
12accordance with Section 18-213, except for those subject to
13paragraph (2) of subsection (e) of Section 18-213, for the levy
14year in which the referendum making this Law applicable to the
15taxing district is held, or for those taxing districts subject
16to this Law in accordance with paragraph (2) of subsection (e)
17of Section 18-213 for the 1996 levy year, constituting an
18extension for payment of principal and interest on bonds issued
19by the taxing district without referendum, but not including
20excluded non-referendum bonds. For park districts (i) that were
21first subject to this Law in 1991 or 1995 and (ii) whose
22extension for the 1994 levy year for the payment of principal
23and interest on bonds issued by the park district without
24referendum (but not including excluded non-referendum bonds)
25was less than 51% of the amount for the 1991 levy year
26constituting an extension for payment of principal and interest

 

 

HB3160- 30 -LRB100 08701 HLH 18837 b

1on bonds issued by the park district without referendum (but
2not including excluded non-referendum bonds), "debt service
3extension base" means an amount equal to that portion of the
4extension for the 1991 levy year constituting an extension for
5payment of principal and interest on bonds issued by the park
6district without referendum (but not including excluded
7non-referendum bonds). A debt service extension base
8established or increased at any time pursuant to any provision
9of this Law, except Section 18-212, shall be increased each
10year commencing with the later of (i) the 2009 levy year or
11(ii) the first levy year in which this Law becomes applicable
12to the taxing district, by the lesser of 5% or the percentage
13increase in the Consumer Price Index during the 12-month
14calendar year preceding the levy year. The debt service
15extension base may be established or increased as provided
16under Section 18-212. "Excluded non-referendum bonds" means
17(i) bonds authorized by Public Act 88-503 and issued under
18Section 20a of the Chicago Park District Act for aquarium and
19museum projects; (ii) bonds issued under Section 15 of the
20Local Government Debt Reform Act; or (iii) refunding
21obligations issued to refund or to continue to refund
22obligations initially issued pursuant to referendum.
23    "Special purpose extensions" include, but are not limited
24to, extensions for levies made on an annual basis for
25unemployment and workers' compensation, self-insurance,
26contributions to pension plans, and extensions made pursuant to

 

 

HB3160- 31 -LRB100 08701 HLH 18837 b

1Section 6-601 of the Illinois Highway Code for a road
2district's permanent road fund whether levied annually or not.
3The extension for a special service area is not included in the
4aggregate extension.
5    "Aggregate extension base" means the taxing district's
6last preceding aggregate extension as adjusted under Sections
718-135, 18-215, and 18-230. An adjustment under Section 18-135
8shall be made for the 2007 levy year and all subsequent levy
9years whenever one or more counties within which a taxing
10district is located (i) used estimated valuations or rates when
11extending taxes in the taxing district for the last preceding
12levy year that resulted in the over or under extension of
13taxes, or (ii) increased or decreased the tax extension for the
14last preceding levy year as required by Section 18-135(c).
15Whenever an adjustment is required under Section 18-135, the
16aggregate extension base of the taxing district shall be equal
17to the amount that the aggregate extension of the taxing
18district would have been for the last preceding levy year if
19either or both (i) actual, rather than estimated, valuations or
20rates had been used to calculate the extension of taxes for the
21last levy year, or (ii) the tax extension for the last
22preceding levy year had not been adjusted as required by
23subsection (c) of Section 18-135.
24    Notwithstanding any other provision of law, for levy year
252012, the aggregate extension base for West Northfield School
26District No. 31 in Cook County shall be $12,654,592.

 

 

HB3160- 32 -LRB100 08701 HLH 18837 b

1    "Levy year" has the same meaning as "year" under Section
21-155.
3    "New property" means (i) the assessed value, after final
4board of review or board of appeals action, of new improvements
5or additions to existing improvements on any parcel of real
6property that increase the assessed value of that real property
7during the levy year multiplied by the equalization factor
8issued by the Department under Section 17-30, (ii) the assessed
9value, after final board of review or board of appeals action,
10of real property not exempt from real estate taxation, which
11real property was exempt from real estate taxation for any
12portion of the immediately preceding levy year, multiplied by
13the equalization factor issued by the Department under Section
1417-30, including the assessed value, upon final stabilization
15of occupancy after new construction is complete, of any real
16property located within the boundaries of an otherwise or
17previously exempt military reservation that is intended for
18residential use and owned by or leased to a private corporation
19or other entity, (iii) in counties that classify in accordance
20with Section 4 of Article IX of the Illinois Constitution, an
21incentive property's additional assessed value resulting from
22a scheduled increase in the level of assessment as applied to
23the first year final board of review market value, and (iv) any
24increase in assessed value due to oil or gas production from an
25oil or gas well required to be permitted under the Hydraulic
26Fracturing Regulatory Act that was not produced in or accounted

 

 

HB3160- 33 -LRB100 08701 HLH 18837 b

1for during the previous levy year. In addition, the county
2clerk in a county containing a population of 3,000,000 or more
3shall include in the 1997 recovered tax increment value for any
4school district, any recovered tax increment value that was
5applicable to the 1995 tax year calculations.
6    "Qualified airport authority" means an airport authority
7organized under the Airport Authorities Act and located in a
8county bordering on the State of Wisconsin and having a
9population in excess of 200,000 and not greater than 500,000.
10    "Recovered tax increment value" means, except as otherwise
11provided in this paragraph, the amount of the current year's
12equalized assessed value, in the first year after a
13municipality terminates the designation of an area as a
14redevelopment project area previously established under the
15Tax Increment Allocation Development Act in the Illinois
16Municipal Code, previously established under the Industrial
17Jobs Recovery Law in the Illinois Municipal Code, previously
18established under the Economic Development Project Area Tax
19Increment Act of 1995, or previously established under the
20Economic Development Area Tax Increment Allocation Act, of each
21taxable lot, block, tract, or parcel of real property in the
22redevelopment project area over and above the initial equalized
23assessed value of each property in the redevelopment project
24area. For the taxes which are extended for the 1997 levy year,
25the recovered tax increment value for a non-home rule taxing
26district that first became subject to this Law for the 1995

 

 

HB3160- 34 -LRB100 08701 HLH 18837 b

1levy year because a majority of its 1994 equalized assessed
2value was in an affected county or counties shall be increased
3if a municipality terminated the designation of an area in 1993
4as a redevelopment project area previously established under
5the Tax Increment Allocation Development Act in the Illinois
6Municipal Code, previously established under the Industrial
7Jobs Recovery Law in the Illinois Municipal Code, or previously
8established under the Economic Development Area Tax Increment
9Allocation Act, by an amount equal to the 1994 equalized
10assessed value of each taxable lot, block, tract, or parcel of
11real property in the redevelopment project area over and above
12the initial equalized assessed value of each property in the
13redevelopment project area. In the first year after a
14municipality removes a taxable lot, block, tract, or parcel of
15real property from a redevelopment project area established
16under the Tax Increment Allocation Development Act in the
17Illinois Municipal Code, the Industrial Jobs Recovery Law in
18the Illinois Municipal Code, or the Economic Development Area
19Tax Increment Allocation Act, "recovered tax increment value"
20means the amount of the current year's equalized assessed value
21of each taxable lot, block, tract, or parcel of real property
22removed from the redevelopment project area over and above the
23initial equalized assessed value of that real property before
24removal from the redevelopment project area.
25    Except as otherwise provided in this Section, "limiting
26rate" means a fraction the numerator of which is the last

 

 

HB3160- 35 -LRB100 08701 HLH 18837 b

1preceding aggregate extension base times an amount equal to one
2plus the extension limitation defined in this Section and the
3denominator of which is the current year's equalized assessed
4value of all real property in the territory under the
5jurisdiction of the taxing district during the prior levy year.
6For those taxing districts that reduced their aggregate
7extension for the last preceding levy year, the highest
8aggregate extension in any of the last 3 preceding levy years
9shall be used for the purpose of computing the limiting rate.
10The denominator shall not include new property or the recovered
11tax increment value. If a new rate, a rate decrease, or a
12limiting rate increase has been approved at an election held
13after March 21, 2006, then (i) the otherwise applicable
14limiting rate shall be increased by the amount of the new rate
15or shall be reduced by the amount of the rate decrease, as the
16case may be, or (ii) in the case of a limiting rate increase,
17the limiting rate shall be equal to the rate set forth in the
18proposition approved by the voters for each of the years
19specified in the proposition, after which the limiting rate of
20the taxing district shall be calculated as otherwise provided.
21In the case of a taxing district that obtained referendum
22approval for an increased limiting rate on March 20, 2012, the
23limiting rate for tax year 2012 shall be the rate that
24generates the approximate total amount of taxes extendable for
25that tax year, as set forth in the proposition approved by the
26voters; this rate shall be the final rate applied by the county

 

 

HB3160- 36 -LRB100 08701 HLH 18837 b

1clerk for the aggregate of all capped funds of the district for
2tax year 2012. Notwithstanding any other provision of law,
3beginning in levy year 2017, in a county with more than 700,000
4inhabitants but fewer than 710,000 inhabitants, the county
5clerk shall ascertain the median aggregate tax rate for all
6taxing districts within that county. For those districts, the
7limiting rate shall be the lesser of (i) the limiting rate
8calculated under this paragraph or (ii) 2.5 times the median
9aggregate tax rate for all taxing districts within the county.
10(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
11eff. 7-27-15; 99-521, eff. 6-1-17.)
 
12    Section 10. The Illinois Income Tax Act is amended by
13adding Section 224 as follows:
 
14    (35 ILCS 5/224 new)
15    Sec. 224. Job creation tax credit.
16    (a) For taxable years beginning on or after January 1, 2017
17and beginning prior to January 1, 2020, each taxpayer that owns
18and operates a business in Illinois that is located within a
19county with more than 700,000 inhabitants but fewer than
20710,000 inhabitants shall be allowed a credit against the tax
21imposed by subsections (a) and (b) of Section 201 of this Act
22in an amount not to exceed $5,000 for each new full-time
23employee hired by the taxpayer in calendar year 2017 or 2018 to
24work at a location in a county with more than 700,000

 

 

HB3160- 37 -LRB100 08701 HLH 18837 b

1inhabitants but fewer than 710,000 inhabitants.
2    (b) Of the $5,000 credit amount, (i) $3,000 is allowed as a
3credit for the taxable year in which the employee was hired if
4the employee remains employed by the taxpayer on the last day
5of the taxable year and (ii) $2,000 is allowed as a credit for
6the following taxable year if the employee remains employed by
7the employer on the last day of that taxable year.
8    (c) In no event shall a credit under this Section reduce a
9taxpayer's liability to less than zero. If the amount of credit
10exceeds the tax liability for the year, the excess may be
11carried forward and applied to the tax liability for the 5
12taxable years following the excess credit year. The tax credit
13shall be applied to the earliest year for which there is a tax
14liability. If there are credits for more than one year that are
15available to offset liability, the earlier credit shall be
16applied first.
 
17    Section 95. No acceleration or delay. Where this Act makes
18changes in a statute that is represented in this Act by text
19that is not yet or no longer in effect (for example, a Section
20represented by multiple versions), the use of that text does
21not accelerate or delay the taking effect of (i) the changes
22made by this Act or (ii) provisions derived from any other
23Public Act.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.