101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3433

 

Introduced , by Rep. Camille Y. Lilly

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-1025 new
35 ILCS 5/211
35 ILCS 10/5-45
35 ILCS 10/5-77

    Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity may enter into new Agreements under the Act until June 30, 2023 (currently, June 30, 2022). Provides that a taxpayer who receives a credit under this Act for a taxable year ending on or before December 31, 2021 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3433LRB101 11018 HLH 56214 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 Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by adding Section 605-1025 as follows:
 
7    (20 ILCS 605/605-1025 new)
8    Sec. 605-1025. Veterans' Economic Center Pilot Program.
9Beginning on January 1, 2020 and continuing through December
1031, 2023, Department shall establish and implement a Veterans'
11Economic Center pilot program for the purposes of assisting
12veterans in finding employment and addressing the problem of
13veteran homelessness. In conducting the program, the
14Department shall partner with local employers in order to
15better connect veterans with those employers. The Department
16shall report to the Governor and the General Assembly regarding
17the effectiveness of the program no later than December 31,
182023.
19    This Section is repealed on January 1, 2025.
 
20    Section 10. The Illinois Income Tax Act is amended by
21changing Section 211 as follows:
 

 

 

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1    (35 ILCS 5/211)
2    Sec. 211. Economic Development for a Growing Economy Tax
3Credit. For tax years beginning on or after January 1, 1999, a
4Taxpayer who has entered into an Agreement under the Economic
5Development for a Growing Economy Tax Credit Act is entitled to
6a credit against the taxes imposed under subsections (a) and
7(b) of Section 201 of this Act in an amount to be determined in
8the Agreement. If the Taxpayer is a partnership or Subchapter S
9corporation, the credit shall be allowed to the partners or
10shareholders in accordance with the determination of income and
11distributive share of income under Sections 702 and 704 and
12subchapter S of the Internal Revenue Code. The Department, in
13cooperation with the Department of Commerce and Economic
14Opportunity, shall prescribe rules to enforce and administer
15the provisions of this Section. This Section is exempt from the
16provisions of Section 250 of this Act.
17    The credit shall be subject to the conditions set forth in
18the Agreement and the following limitations:
19        (1) The tax credit shall not exceed the Incremental
20    Income Tax (as defined in Section 5-5 of the Economic
21    Development for a Growing Economy Tax Credit Act) with
22    respect to the project.
23        (2) The amount of the credit allowed during the tax
24    year plus the sum of all amounts allowed in prior years
25    shall not exceed 100% of the aggregate amount expended by
26    the Taxpayer during all prior tax years on approved costs

 

 

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1    defined by Agreement.
2        (3) The amount of the credit shall be determined on an
3    annual basis. Except as applied in a carryover year
4    pursuant to Section 211(4) of this Act, the credit may not
5    be applied against any State income tax liability in more
6    than 10 taxable years; provided, however, that (i) an
7    eligible business certified by the Department of Commerce
8    and Economic Opportunity under the Corporate Headquarters
9    Relocation Act may not apply the credit against any of its
10    State income tax liability in more than 15 taxable years
11    and (ii) credits allowed to that eligible business are
12    subject to the conditions and requirements set forth in
13    Sections 5-35 and 5-45 of the Economic Development for a
14    Growing Economy Tax Credit Act.
15        (4) The credit may not exceed the amount of taxes
16    imposed pursuant to subsections (a) and (b) of Section 201
17    of this Act. Any credit that is unused in the year the
18    credit is computed may be carried forward and applied to
19    the tax liability of the 5 taxable years following the
20    excess credit year. The credit shall be applied to the
21    earliest year for which there is a tax liability. If there
22    are credits from more than one tax year that are available
23    to offset a liability, the earlier credit shall be applied
24    first.
25        (5) No credit shall be allowed with respect to any
26    Agreement for any taxable year ending after the

 

 

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1    Noncompliance Date. Upon receiving notification by the
2    Department of Commerce and Economic Opportunity of the
3    noncompliance of a Taxpayer with an Agreement, the
4    Department shall notify the Taxpayer that no credit is
5    allowed with respect to that Agreement for any taxable year
6    ending after the Noncompliance Date, as stated in such
7    notification. If any credit has been allowed with respect
8    to an Agreement for a taxable year ending after the
9    Noncompliance Date for that Agreement, any refund paid to
10    the Taxpayer for that taxable year shall, to the extent of
11    that credit allowed, be an erroneous refund within the
12    meaning of Section 912 of this Act.
13        (6) For purposes of this Section, the terms
14    "Agreement", "Incremental Income Tax", and "Noncompliance
15    Date" have the same meaning as when used in the Economic
16    Development for a Growing Economy Tax Credit Act.
17        (7) Agreements entered into on or after the effective
18    date of this amendatory Act of the 101st General Assembly
19    are subject to the limitations set forth in subsection (c)
20    of Section 5-45 of the Economic Development for a Growing
21    Economy Tax Credit Act.
22(Source: P.A. 94-793, eff. 5-19-06.)
 
23    Section 15. The Economic Development for a Growing Economy
24Tax Credit Act is amended by changing Sections 5-45 and 5-77 as
25follows:
 

 

 

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1    (35 ILCS 10/5-45)
2    Sec. 5-45. Amount and duration of the credit.
3    (a) The Department shall determine the amount and duration
4of the credit awarded under this Act. The duration of the
5credit may not exceed 10 taxable years. The credit may be
6stated as a percentage of the Incremental Income Tax
7attributable to the applicant's project and may include a fixed
8dollar limitation.
9    (b) Notwithstanding subsection (a), and except as the
10credit may be applied in a carryover year pursuant to Section
11211(4) of the Illinois Income Tax Act, the credit may be
12applied against the State income tax liability in more than 10
13taxable years but not in more than 15 taxable years for an
14eligible business that (i) qualifies under this Act and the
15Corporate Headquarters Relocation Act and has in fact
16undertaken a qualifying project within the time frame specified
17by the Department of Commerce and Economic Opportunity under
18that Act, and (ii) applies against its State income tax
19liability, during the entire 15-year period, no more than 60%
20of the maximum credit per year that would otherwise be
21available under this Act.
22    (c) Notwithstanding any other provision of law, a taxpayer
23who receives a credit under this Act for a taxable year ending
24on or before December 31, 2021 pursuant an Agreement entered
25into on or after the effective date of this amendatory Act of

 

 

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1the 101st General Assembly may apply only 98% of that credit
2amount against his or her State income tax liability in any
3taxable year. By July 1, 2019, and by July 1 of each calendar
4year thereafter through calendar year 2022, the Department
5shall certify to the Comptroller an amount equal to 2% of the
6total credits awarded under this Section pursuant to an
7Agreement entered into on or after the effective date of this
8amendatory Act of the 101st General Assembly for a taxable year
9ending during the previous calendar year. Immediately upon
10receipt of the certification, the State Comptroller shall
11direct and the State Treasurer shall transfer the certified
12amount from the General Revenue Fund into the Veterans'
13Economic Center Fund, a special fund created in the State
14treasury. Moneys in the Veterans' Economic Center Fund shall be
15used by the Department of Commerce and Economic Opportunity to
16administer the Veterans' Economic Center pilot program
17established under Section 605-1025 of the Department of
18Commerce and Economic Opportunity Law of the Civil
19Administrative Code of Illinois.
20(Source: P.A. 94-793, eff. 5-19-06.)
 
21    (35 ILCS 10/5-77)
22    Sec. 5-77. Sunset of new Agreements. The Department shall
23not enter into any new Agreements under the provisions of
24Section 5-50 of this Act after June 30, 2023 June 30, 2022.
25(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 

 

 

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