101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1636

 

Introduced , by Rep. Stephanie A. Kifowit

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1

    Amends the Illinois Enterprise Zone Act. Provides that businesses that intend to establish a new qualified hydroponics facility or expand production at an existing qualified hydroponics facility to engage in the practice of hydroponics are considered high impact businesses. Define terms. Effective immediately.


LRB101 07313 JWD 52353 b

 

 

A BILL FOR

 

HB1636LRB101 07313 JWD 52353 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth and expansion of the
10private sector through large scale investment and development
11projects, the Department is authorized to receive and approve
12applications for the designation of "High Impact Businesses" in
13Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of
17    designation, in an enterprise zone designated pursuant to
18    this Act;
19        (3) the business intends to do one or more of the
20    following:
21            (A) the business intends to make a minimum
22        investment of $12,000,000 which will be placed in
23        service in qualified property and intends to create 500

 

 

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1        full-time equivalent jobs at a designated location in
2        Illinois or intends to make a minimum investment of
3        $30,000,000 which will be placed in service in
4        qualified property and intends to retain 1,500
5        full-time retained jobs at a designated location in
6        Illinois. The business must certify in writing that the
7        investments would not be placed in service in qualified
8        property and the job creation or job retention would
9        not occur without the tax credits and exemptions set
10        forth in subsection (b) of this Section. The terms
11        "placed in service" and "qualified property" have the
12        same meanings as described in subsection (h) of Section
13        201 of the Illinois Income Tax Act; or
14            (B) the business intends to establish a new
15        electric generating facility at a designated location
16        in Illinois. "New electric generating facility", for
17        purposes of this Section, means a newly-constructed
18        electric generation plant or a newly-constructed
19        generation capacity expansion at an existing electric
20        generation plant, including the transmission lines and
21        associated equipment that transfers electricity from
22        points of supply to points of delivery, and for which
23        such new foundation construction commenced not sooner
24        than July 1, 2001. Such facility shall be designed to
25        provide baseload electric generation and shall operate
26        on a continuous basis throughout the year; and (i)

 

 

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1        shall have an aggregate rated generating capacity of at
2        least 1,000 megawatts for all new units at one site if
3        it uses natural gas as its primary fuel and foundation
4        construction of the facility is commenced on or before
5        December 31, 2004, or shall have an aggregate rated
6        generating capacity of at least 400 megawatts for all
7        new units at one site if it uses coal or gases derived
8        from coal as its primary fuel and shall support the
9        creation of at least 150 new Illinois coal mining jobs,
10        or (ii) shall be funded through a federal Department of
11        Energy grant before December 31, 2010 and shall support
12        the creation of Illinois coal-mining jobs, or (iii)
13        shall use coal gasification or integrated
14        gasification-combined cycle units that generate
15        electricity or chemicals, or both, and shall support
16        the creation of Illinois coal-mining jobs. The
17        business must certify in writing that the investments
18        necessary to establish a new electric generating
19        facility would not be placed in service and the job
20        creation in the case of a coal-fueled plant would not
21        occur without the tax credits and exemptions set forth
22        in subsection (b-5) of this Section. The term "placed
23        in service" has the same meaning as described in
24        subsection (h) of Section 201 of the Illinois Income
25        Tax Act; or
26            (B-5) the business intends to establish a new

 

 

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1        gasification facility at a designated location in
2        Illinois. As used in this Section, "new gasification
3        facility" means a newly constructed coal gasification
4        facility that generates chemical feedstocks or
5        transportation fuels derived from coal (which may
6        include, but are not limited to, methane, methanol, and
7        nitrogen fertilizer), that supports the creation or
8        retention of Illinois coal-mining jobs, and that
9        qualifies for financial assistance from the Department
10        before December 31, 2010. A new gasification facility
11        does not include a pilot project located within
12        Jefferson County or within a county adjacent to
13        Jefferson County for synthetic natural gas from coal;
14        or
15            (C) the business intends to establish production
16        operations at a new coal mine, re-establish production
17        operations at a closed coal mine, or expand production
18        at an existing coal mine at a designated location in
19        Illinois not sooner than July 1, 2001; provided that
20        the production operations result in the creation of 150
21        new Illinois coal mining jobs as described in
22        subdivision (a)(3)(B) of this Section, and further
23        provided that the coal extracted from such mine is
24        utilized as the predominant source for a new electric
25        generating facility. The business must certify in
26        writing that the investments necessary to establish a

 

 

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1        new, expanded, or reopened coal mine would not be
2        placed in service and the job creation would not occur
3        without the tax credits and exemptions set forth in
4        subsection (b-5) of this Section. The term "placed in
5        service" has the same meaning as described in
6        subsection (h) of Section 201 of the Illinois Income
7        Tax Act; or
8            (D) the business intends to construct new
9        transmission facilities or upgrade existing
10        transmission facilities at designated locations in
11        Illinois, for which construction commenced not sooner
12        than July 1, 2001. For the purposes of this Section,
13        "transmission facilities" means transmission lines
14        with a voltage rating of 115 kilovolts or above,
15        including associated equipment, that transfer
16        electricity from points of supply to points of delivery
17        and that transmit a majority of the electricity
18        generated by a new electric generating facility
19        designated as a High Impact Business in accordance with
20        this Section. The business must certify in writing that
21        the investments necessary to construct new
22        transmission facilities or upgrade existing
23        transmission facilities would not be placed in service
24        without the tax credits and exemptions set forth in
25        subsection (b-5) of this Section. The term "placed in
26        service" has the same meaning as described in

 

 

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1        subsection (h) of Section 201 of the Illinois Income
2        Tax Act; or
3            (E) the business intends to establish a new wind
4        power facility at a designated location in Illinois.
5        For purposes of this Section, "new wind power facility"
6        means a newly constructed electric generation
7        facility, or a newly constructed expansion of an
8        existing electric generation facility, placed in
9        service on or after July 1, 2009, that generates
10        electricity using wind energy devices, and such
11        facility shall be deemed to include all associated
12        transmission lines, substations, and other equipment
13        related to the generation of electricity from wind
14        energy devices. For purposes of this Section, "wind
15        energy device" means any device, with a nameplate
16        capacity of at least 0.5 megawatts, that is used in the
17        process of converting kinetic energy from the wind to
18        generate electricity; or
19            (F) the business commits to (i) make a minimum
20        investment of $500,000,000, which will be placed in
21        service in a qualified property, (ii) create 125
22        full-time equivalent jobs at a designated location in
23        Illinois, (iii) establish a fertilizer plant at a
24        designated location in Illinois that complies with the
25        set-back standards as described in Table 1: Initial
26        Isolation and Protective Action Distances in the 2012

 

 

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1        Emergency Response Guidebook published by the United
2        States Department of Transportation, (iv) pay a
3        prevailing wage for employees at that location who are
4        engaged in construction activities, and (v) secure an
5        appropriate level of general liability insurance to
6        protect against catastrophic failure of the fertilizer
7        plant or any of its constituent systems; in addition,
8        the business must agree to enter into a construction
9        project labor agreement including provisions
10        establishing wages, benefits, and other compensation
11        for employees performing work under the project labor
12        agreement at that location; for the purposes of this
13        Section, "fertilizer plant" means a newly constructed
14        or upgraded plant utilizing gas used in the production
15        of anhydrous ammonia and downstream nitrogen
16        fertilizer products for resale; for the purposes of
17        this Section, "prevailing wage" means the hourly cash
18        wages plus fringe benefits for training and
19        apprenticeship programs approved by the U.S.
20        Department of Labor, Bureau of Apprenticeship and
21        Training, health and welfare, insurance, vacations and
22        pensions paid generally, in the locality in which the
23        work is being performed, to employees engaged in work
24        of a similar character on public works; this paragraph
25        (F) applies only to businesses that submit an
26        application to the Department within 60 days after the

 

 

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1        effective date of this amendatory Act of the 98th
2        General Assembly; or and
3            (G) the business intends to establish a new
4        qualified hydroponics facility or expand production at
5        an existing qualified hydroponics facility to engage
6        in the practice of hydroponics, provided that the
7        production operations result in the creation of at
8        least 25 full-time-equivalent Illinois jobs; for the
9        purposes of this paragraph:
10                "hydroponics" means a system in which
11            water-soluble nutrients are placed in intimate
12            contact with a plant's root system, being grown in
13            an inert supportive medium, which inert supportive
14            medium itself supplies physical support for the
15            roots and does not add or subtract plant nutrients;
16                "hydroponics production" means the production
17            of normally terrestrial, vascular plants in
18            nutrient rich solutions or in an inert, porous,
19            solid matrix bathed in nutrient rich solutions;
20            and
21                "qualified hydroponics facility" means real
22            property used for an indoor agriculture production
23            operation using hydroponics techniques or
24            practices for growing plants produced by
25            agriculture that are useful for human beings,
26            including, but not limited to, forages, field

 

 

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1            crops, sod, berries, herbs, fruits, vegetables,
2            flowers, seeds, and nursery stock; "qualified
3            hydroponics facility" does not include an indoor
4            agriculture production operation for growing
5            plants that are illegal under federal law; and
6        (4) no later than 90 days after an application is
7    submitted, the Department shall notify the applicant of the
8    Department's determination of the qualification of the
9    proposed High Impact Business under this Section.
10    (b) Businesses designated as High Impact Businesses
11pursuant to subdivision (a)(3)(A) of this Section shall qualify
12for the credits and exemptions described in the following Acts:
13Section 9-222 and Section 9-222.1A of the Public Utilities Act,
14subsection (h) of Section 201 of the Illinois Income Tax Act,
15and Section 1d of the Retailers' Occupation Tax Act; provided
16that these credits and exemptions described in these Acts shall
17not be authorized until the minimum investments set forth in
18subdivision (a)(3)(A) of this Section have been placed in
19service in qualified properties and, in the case of the
20exemptions described in the Public Utilities Act and Section 1d
21of the Retailers' Occupation Tax Act, the minimum full-time
22equivalent jobs or full-time retained jobs set forth in
23subdivision (a)(3)(A) of this Section have been created or
24retained. Businesses designated as High Impact Businesses
25under this Section shall also qualify for the exemption
26described in Section 5l of the Retailers' Occupation Tax Act.

 

 

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1The credit provided in subsection (h) of Section 201 of the
2Illinois Income Tax Act shall be applicable to investments in
3qualified property as set forth in subdivision (a)(3)(A) of
4this Section.
5    (b-5) Businesses designated as High Impact Businesses
6pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
7and (a)(3)(D) of this Section shall qualify for the credits and
8exemptions described in the following Acts: Section 51 of the
9Retailers' Occupation Tax Act, Section 9-222 and Section
109-222.1A of the Public Utilities Act, and subsection (h) of
11Section 201 of the Illinois Income Tax Act; however, the
12credits and exemptions authorized under Section 9-222 and
13Section 9-222.1A of the Public Utilities Act, and subsection
14(h) of Section 201 of the Illinois Income Tax Act shall not be
15authorized until the new electric generating facility, the new
16gasification facility, the new transmission facility, or the
17new, expanded, or reopened coal mine is operational, except
18that a new electric generating facility whose primary fuel
19source is natural gas is eligible only for the exemption under
20Section 5l of the Retailers' Occupation Tax Act.
21    (b-6) Businesses designated as High Impact Businesses
22pursuant to subdivision (a)(3)(E) of this Section shall qualify
23for the exemptions described in Section 5l of the Retailers'
24Occupation Tax Act; any business so designated as a High Impact
25Business being, for purposes of this Section, a "Wind Energy
26Business".

 

 

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1    (c) High Impact Businesses located in federally designated
2foreign trade zones or sub-zones are also eligible for
3additional credits, exemptions and deductions as described in
4the following Acts: Section 9-221 and Section 9-222.1 of the
5Public Utilities Act; and subsection (g) of Section 201, and
6Section 203 of the Illinois Income Tax Act.
7    (d) Except for businesses contemplated under subdivision
8(a)(3)(E) of this Section, existing Illinois businesses which
9apply for designation as a High Impact Business must provide
10the Department with the prospective plan for which 1,500
11full-time retained jobs would be eliminated in the event that
12the business is not designated.
13    (e) Except for new wind power facilities contemplated under
14subdivision (a)(3)(E) of this Section, new proposed facilities
15which apply for designation as High Impact Business must
16provide the Department with proof of alternative non-Illinois
17sites which would receive the proposed investment and job
18creation in the event that the business is not designated as a
19High Impact Business.
20    (f) Except for businesses contemplated under subdivision
21(a)(3)(E) of this Section, in the event that a business is
22designated a High Impact Business and it is later determined
23after reasonable notice and an opportunity for a hearing as
24provided under the Illinois Administrative Procedure Act, that
25the business would have placed in service in qualified property
26the investments and created or retained the requisite number of

 

 

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1jobs without the benefits of the High Impact Business
2designation, the Department shall be required to immediately
3revoke the designation and notify the Director of the
4Department of Revenue who shall begin proceedings to recover
5all wrongfully exempted State taxes with interest. The business
6shall also be ineligible for all State funded Department
7programs for a period of 10 years.
8    (g) The Department shall revoke a High Impact Business
9designation if the participating business fails to comply with
10the terms and conditions of the designation. However, the
11penalties for new wind power facilities or Wind Energy
12Businesses for failure to comply with any of the terms or
13conditions of the Illinois Prevailing Wage Act shall be only
14those penalties identified in the Illinois Prevailing Wage Act,
15and the Department shall not revoke a High Impact Business
16designation as a result of the failure to comply with any of
17the terms or conditions of the Illinois Prevailing Wage Act in
18relation to a new wind power facility or a Wind Energy
19Business.
20    (h) Prior to designating a business, the Department shall
21provide the members of the General Assembly and Commission on
22Government Forecasting and Accountability with a report
23setting forth the terms and conditions of the designation and
24guarantees that have been received by the Department in
25relation to the proposed business being designated.
26(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.