Rep. Lou Lang

Filed: 5/19/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 652

2    AMENDMENT NO. ______. Amend Senate Bill 652 as follows:
 
3on page 1, line 5, after "40,", by inserting "45,"; and
 
4on page 2, line 18, after "amended", by inserting "and also
5meets the Department's targeted industry criteria as
6established by adopted rule, if any, in effect as of the
7application date set forth under subsection (g) of Section 25
8of this Act"; and
 
9on page 9, line 16, by replacing "$20,000,000" with
10"$50,000,000 $20,000,000"; and
 
11on page 10, immediately below line 18, by inserting the
12following:
13    "(g) Allocation rounds enabled by this Act shall be applied
14for according to the following schedule:

 

 

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1        (1) on September 1, 2017, $375,000,000 of qualified
2    equity investments;
3        (2) on January 2, 2019, $125,000,000 of qualified
4    equity investments; and
5        (3) on January 2, 2020, $125,000,000 of qualified
6    equity investments."; and
 
7on page 14, line 10, after "business.", by inserting "This
8Section is not intended to affect ownership or affiliate
9interests that arise following the sixth anniversary of the
10issuance of the qualified equity investment."; and
 
11on page 14, immediately below line 10, by inserting the
12following:
 
13    "(20 ILCS 663/45)
14    Sec. 45. Examination and Rulemaking.
15    (a) The Department may conduct examinations to verify that
16the tax credits under this Act have been received and applied
17according to the requirements of this Act and to verify that no
18event has occurred that would result in a recapture of tax
19credits under Section 40.
20    (b) The Department and the Department of Revenue shall have
21the authority to adopt rules under the Act. The Department and
22the Department of Revenue, in adopting rules, shall endeavor to
23make the administration of the Act compatible with the

 

 

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1administration of the federal New Markets Tax Credit program.
2Adopted rules shall only apply to qualified equity investments
3in effect as of the application date set forth under subsection
4(g) of Section 25 of this Act for such qualified equity
5investment. Neither the Department nor the Department of
6Revenue shall have the authority to promulgate rules under the
7Act, but the Department and the Department of Revenue shall
8have the authority to issue advisory letters to individual
9qualified community development entities and their investors
10that are limited to the specific facts outlined in an advisory
11letter request from a qualified community development entity.
12Such rulings cannot be relied upon by any person or entity
13other than the qualified community development entity that
14requested the letter and the taxpayers that are entitled to any
15tax credits generated from investments in such entity. For
16purposes of this subsection, "rules" is given the meaning
17contained in Section 1-70 of the Illinois Administrative
18Procedure Act.
19    (c) In rendering advisory letters and making other
20determinations under this Act, to the extent applicable, the
21Department and the Department of Revenue shall look for
22guidance to Section 45D of the Internal Revenue Code of 1986,
23as amended, and the rules, and regulations, policies, and
24allocation agreement provisions issued thereunder.
25    (d) The Department may impose an administrative penalty on
26any qualified community development entity that violates the

 

 

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1provisions of this Act or any adopted rule hereunder where
2recapture of credits is not a remedy. The penalty shall be
3$15,000 for each violation. Penalties shall be subject to a
4notice and cure period of not less than 30 days wherein a
5qualified community development entity shall be notified in
6writing of the violation and be given the opportunity to cure
7the violation. Each week a violation continues or occurs past
8such 30-day period is a separate violation. A qualified
9community development entity that has been assessed a penalty
10may petition the Department for an administrative hearing to
11contest the basis of the administrative penalty. The
12Department's final decision imposing an administrative penalty
13is a final order and subject to the Administrative Review Law.
14The Department shall not certify any qualified equity
15investment in a qualified community development entity (or in
16an affiliate thereof) that has not satisfied an administrative
17penalty or has been assessed in aggregate $105,000 or more in
18administrative penalties within the prior 2 calendar years.
19(Source: P.A. 95-1024, eff. 12-31-08.)".