Rep. Lou Lang

Filed: 5/28/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 652

2    AMENDMENT NO. ______. Amend Senate Bill 652 on page 1, line
35, after "40,", by inserting "45,"; and
 
4on page 5, line 10, by replacing "$50,000,000 $20,000,000" with
5"$20,000,000"; and
 
6on page 10, immediately below line 18, by inserting the
7following:
8    "(g) Allocation rounds enabled by this Act shall be applied
9for according to the following schedule:
10        (1) on January 2, 2019, $125,000,000 of qualified
11    equity investments; and
12        (2) on January 2, 2020, $125,000,000 of qualified
13    equity investments."; and
 
14on page 14, line 10, after "business.", by inserting "This
15Section is not intended to affect ownership or affiliate

 

 

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1interests that arise following the sixth anniversary of the
2issuance of the qualified equity investment."; and
 
3on page 14, immediately below line 10, by inserting the
4following:
 
5    "(20 ILCS 663/45)
6    Sec. 45. Examination and Rulemaking.
7    (a) The Department may conduct examinations to verify that
8the tax credits under this Act have been received and applied
9according to the requirements of this Act and to verify that no
10event has occurred that would result in a recapture of tax
11credits under Section 40.
12    (b) The Department and the Department of Revenue shall have
13the authority to adopt rules under the Act. The Department and
14the Department of Revenue, in adopting rules, shall endeavor to
15make the administration of the Act compatible with the
16administration of the federal New Markets Tax Credit program.
17Adopted rules shall only apply to qualified equity investments
18in effect as of the application date set forth under subsection
19(g) of Section 25 of this Act for such qualified equity
20investment. Neither the Department nor the Department of
21Revenue shall have the authority to promulgate rules under the
22Act, but the Department and the Department of Revenue shall
23have the authority to issue advisory letters to individual
24qualified community development entities and their investors

 

 

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1that are limited to the specific facts outlined in an advisory
2letter request from a qualified community development entity.
3Such rulings cannot be relied upon by any person or entity
4other than the qualified community development entity that
5requested the letter and the taxpayers that are entitled to any
6tax credits generated from investments in such entity. For
7purposes of this subsection, "rules" is given the meaning
8contained in Section 1-70 of the Illinois Administrative
9Procedure Act.
10    (c) In rendering advisory letters and making other
11determinations under this Act, to the extent applicable, the
12Department and the Department of Revenue shall look for
13guidance to Section 45D of the Internal Revenue Code of 1986,
14as amended, and the rules, and regulations, policies, and
15allocation agreement provisions issued thereunder.
16    (d) The Department may impose an administrative penalty on
17any qualified community development entity that violates the
18provisions of this Act or any adopted rule hereunder where
19recapture of credits is not a remedy. The penalty shall be
20$15,000 for each violation. Penalties shall be subject to a
21notice and cure period of not less than 30 days wherein a
22qualified community development entity shall be notified in
23writing of the violation and be given the opportunity to cure
24the violation. Each week a violation continues or occurs past
25such 30-day period is a separate violation. A qualified
26community development entity that has been assessed a penalty

 

 

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1may petition the Department for an administrative hearing to
2contest the basis of the administrative penalty. The
3Department's final decision imposing an administrative penalty
4is a final order and subject to the Administrative Review Law.
5The Department shall not certify any qualified equity
6investment in a qualified community development entity (or in
7an affiliate thereof) that has not satisfied an administrative
8penalty or has been assessed in aggregate $105,000 or more in
9administrative penalties within the prior 2 calendar years.
10(Source: P.A. 95-1024, eff. 12-31-08.)"; and
 
11on page 15, by replacing lines 6 through 22 with the following:
 
12    "(20 ILCS 663/55 new)
13    Sec. 55. Annual report. Each qualified community
14development entity shall submit an annual report to the
15Department within 45 days after the beginning of each calendar
16year during the compliance period. No annual report shall be
17due prior to the first anniversary of the initial credit
18allowance date. The report shall include, but is not limited
19to, the following:
20        (1) an attestation from an authorized officer of the
21    qualified community development entity that the entity has
22    not been the subject of any investigation by a government
23    agency relating to tax credits or financial services during
24    the preceding calendar year;

 

 

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1        (2) information with respect to all qualified
2    low-income community investments made by the qualified
3    community development entity, including:
4            (A) the date and amount of, and bank statements or
5        wire transfer reports documenting, such qualified
6        low-income community investments;
7            (B) the name, address, and EIN of each qualified
8        active low-income community business funded by the
9        qualified community development entity, the number of
10        persons employed by such business at the time of the
11        initial investment, and a brief description of the
12        business, the financing, and community benefits of the
13        financing; and
14            (C) the number of employment positions maintained
15        by each qualified active low-income community business
16        as of the date of report or the end of the preceding
17        calendar year and the average annual salaries of such
18        positions; and
19            (D) the total number of employment positions
20        created and retained as a result of qualified
21        low-income community investments and the average
22        annual salaries of those positions; and
23        (3) any changes with respect to the taxpayers entitled
24    to claim tax credits with respect to qualified equity
25    investments issued by the qualified community development
26    entity since its last report pursuant to this Section.

 

 

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1    The qualified community development entity is not required
2to provide the annual report set forth in this Section for
3qualified low-income community investments that have been
4redeemed or repaid.".