HB1769 EnrolledLRB102 10422 HLH 15750 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Reimagining Electric Vehicles in Illinois Act.
 
6    Section 5. Purpose. It is the intent of the General
7Assembly that Illinois should lead the nation in the
8production of electric vehicles. The General Assembly finds
9that, through investments in electric vehicle manufacturing,
10Illinois will be on the forefront of emerging technologies
11that are currently transforming the auto manufacturing
12industry. This Act will reduce carbon emissions, create good
13paying jobs, and generate long-term economic investment in the
14Illinois business economy. Illinois must aggressively adopt
15new business development investment tools so that Illinois is
16more competitive in site location decision-making for
17manufacturing facilities directly related to the electric
18vehicle industry. Illinois' long-term development benefits
19from rational, strategic use of State resources in support of
20development and growth in the electric vehicle industry.
21    The General Assembly finds that workers are essential to
22the prosperity of our State's economy and play a critical role
23in Illinois becoming leader in manufacturing. The General

 

 

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1Assembly further finds that, for the prosperity of our State,
2workers in this industry must be afforded high quality jobs
3that honor the dignity of work. Therefore, the General
4Assembly finds that it is in the best interest of Illinois to
5protect the work conditions, worker safety, and worker rights
6in the manufacturing industry and further finds that employer
7workplace policies shall be interpreted broadly to protect
8employees.
 
9    Section 10. Definitions. As used in this Act:
10    "Agreement" means the agreement between a taxpayer and the
11Department under the provisions of Section 45 of this Act.
12    "Applicant" means a taxpayer that (i) operates a business
13in Illinois or is planning to locate a business within the
14State of Illinois and (ii) is engaged in interstate or
15intrastate commerce for the purpose of manufacturing electric
16vehicles, electric vehicle component parts, or electric
17vehicle power supply equipment. "Applicant" does not include a
18taxpayer who closes or substantially reduces by more than 50%
19operations at one location in the State and relocates
20substantially the same operation to another location in the
21State. This does not prohibit a Taxpayer from expanding its
22operations at another location in the State. This also does
23not prohibit a Taxpayer from moving its operations from one
24location in the State to another location in the State for the
25purpose of expanding the operation, provided that the

 

 

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1Department determines that expansion cannot reasonably be
2accommodated within the municipality or county in which the
3business is located, or, in the case of a business located in
4an incorporated area of the county, within the county in which
5the business is located, after conferring with the chief
6elected official of the municipality or county and taking into
7consideration any evidence offered by the municipality or
8county regarding the ability to accommodate expansion within
9the municipality or county.
10    "Capital improvements" means the purchase, renovation,
11rehabilitation, or construction of permanent tangible land,
12buildings, structures, equipment, and furnishings in an
13approved project sited in Illinois and expenditures for goods
14or services that are normally capitalized, including
15organizational costs and research and development costs
16incurred in Illinois. For land, buildings, structures, and
17equipment that are leased, the lease must equal or exceed the
18term of the agreement, and the cost of the property shall be
19determined from the present value, using the corporate
20interest rate prevailing at the time of the application, of
21the lease payments.
22    "Credit" means either a "REV Illinois Credit" or a "REV
23Construction Jobs Credit" agreed to between the Department and
24applicant under this Act.
25    "Department" means the Department of Commerce and Economic
26Opportunity.

 

 

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1    "Director" means the Director of Commerce and Economic
2Opportunity.
3    "Electric vehicle" means a vehicle that is exclusively
4powered by and refueled by electricity, must be plugged in to
5charge or utilize a pre-charged battery, and is permitted to
6operate on public roadways. "Electric vehicle" does not
7include hybrid electric vehicles and extended-range electric
8vehicles that are also equipped with conventional fueled
9propulsion or auxiliary engines.
10    "Electric vehicle manufacturer" means a new or existing
11manufacturer that is focused on reequipping, expanding, or
12establishing a manufacturing facility in Illinois that
13produces electric vehicles as defined in this Section.
14    "Electric vehicle component parts manufacturer" means a
15new or existing manufacturer that is primarily focused on
16reequipping, expanding, or establishing a manufacturing
17facility in Illinois that produces key components that
18directly support the electric functions of electric vehicles,
19as defined by this Section.
20    "Electric vehicle power supply equipment" means the
21equipment used specifically for the purpose of delivering
22electricity to an electric vehicle.
23    "Electric vehicle power supply manufacturer" means a new
24or existing manufacturer that is focused on reequipping,
25expanding, or establishing a manufacturing facility in
26Illinois that produces electric vehicle power supply equipment

 

 

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1used for the purpose of delivering electricity to an electric
2vehicle.
3    "Energy Transition Area" means a county with less than
4100,000 people or a municipality that contains one or more of
5the following:
6        (1)a fossil fuel plant that was retired from service
7    or has significant reduced service within 6 years before
8    the time of the application or will be retired or have
9    service significantly reduced within 6 years following the
10    time of the application; or
11        (2) a coal mine that was closed or had operations
12    significantly reduced within 6 years before the time of
13    the application or is anticipated to be closed or have
14    operations significantly reduced within 6 years following
15    the time of the application.
16    "Full-time employee" means an individual who is employed
17for consideration for at least 35 hours each week or who
18renders any other standard of service generally accepted by
19industry custom or practice as full-time employment. An
20individual for whom a W-2 is issued by a Professional Employer
21Organization (PEO) is a full-time employee if employed in the
22service of the applicant for consideration for at least 35
23hours each week.
24    "Incremental income tax" means the total amount withheld
25during the taxable year from the compensation of new employees
26and, if applicable, retained employees under Article 7 of the

 

 

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1Illinois Income Tax Act arising from employment at a project
2that is the subject of an agreement.
3    "Institution of higher education" or "institution" means
4any accredited public or private university, college,
5community college, business, technical, or vocational school,
6or other accredited educational institution offering degrees
7and instruction beyond the secondary school level.
8    "Minority person" means a minority person as defined in
9the Business Enterprise for Minorities, Women, and Persons
10with Disabilities Act.
11    "New employee" means a newly-hired full-time employee
12employed to work at the project site and whose work is directly
13related to the project.
14    "Noncompliance date" means, in the case of a taxpayer that
15is not complying with the requirements of the agreement or the
16provisions of this Act, the day following the last date upon
17which the taxpayer was in compliance with the requirements of
18the agreement and the provisions of this Act, as determined by
19the Director, pursuant to Section 70.
20    "Pass-through entity" means an entity that is exempt from
21the tax under subsection (b) or (c) of Section 205 of the
22Illinois Income Tax Act.
23    "Placed in service" means the state or condition of
24readiness, availability for a specifically assigned function,
25and the facility is constructed and ready to conduct its
26facility operations to manufacture goods.

 

 

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1    "Professional employer organization" (PEO) means an
2employee leasing company, as defined in Section 206.1 of the
3Illinois Unemployment Insurance Act.
4    "Program" means the Reimagining Electric Vehicles in
5Illinois Program (the REV Illinois Program) established in
6this Act.
7    "Project" or "REV Illinois Project" means a for-profit
8economic development activity for the manufacture of electric
9vehicles, electric vehicle component parts, or electric
10vehicle power supply equipment which is designated by the
11Department as a REV Illinois Project and is the subject of an
12agreement.
13    "Recycling facility" means a location at which the
14taxpayer disposes of batteries and other component parts in
15manufacturing of electric vehicles, electric vehicle component
16parts, or electric vehicle power supply equipment.
17    "Related member" means a person that, with respect to the
18taxpayer during any portion of the taxable year, is any one of
19the following:
20        (1) An individual stockholder, if the stockholder and
21    the members of the stockholder's family (as defined in
22    Section 318 of the Internal Revenue Code) own directly,
23    indirectly, beneficially, or constructively, in the
24    aggregate, at least 50% of the value of the taxpayer's
25    outstanding stock.
26        (2) A partnership, estate, trust and any partner or

 

 

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1    beneficiary, if the partnership, estate, or trust, and its
2    partners or beneficiaries own directly, indirectly,
3    beneficially, or constructively, in the aggregate, at
4    least 50% of the profits, capital, stock, or value of the
5    taxpayer.
6        (3) A corporation, and any party related to the
7    corporation in a manner that would require an attribution
8    of stock from the corporation under the attribution rules
9    of Section 318 of the Internal Revenue Code, if the
10    Taxpayer owns directly, indirectly, beneficially, or
11    constructively at least 50% of the value of the
12    corporation's outstanding stock.
13        (4) A corporation and any party related to that
14    corporation in a manner that would require an attribution
15    of stock from the corporation to the party or from the
16    party to the corporation under the attribution rules of
17    Section 318 of the Internal Revenue Code, if the
18    corporation and all such related parties own in the
19    aggregate at least 50% of the profits, capital, stock, or
20    value of the taxpayer.
21        (5) A person to or from whom there is an attribution of
22    stock ownership in accordance with Section 1563(e) of the
23    Internal Revenue Code, except, for purposes of determining
24    whether a person is a related member under this paragraph,
25    20% shall be substituted for 5% wherever 5% appears in
26    Section 1563(e) of the Internal Revenue Code.

 

 

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1    "Retained employee" means a full-time employee employed by
2the taxpayer prior to the term of the Agreement who continues
3to be employed during the term of the agreement whose job
4duties are directly and substantially related to the project.
5For purposes of this definition, "directly and substantially
6related to the project" means at least two-thirds of the
7employee's job duties must be directly related to the project
8and the employee must devote at least two-thirds of his or her
9time to the project. The term "retained employee" does not
10include any individual who has a direct or an indirect
11ownership interest of at least 5% in the profits, equity,
12capital, or value of the taxpayer or a child, grandchild,
13parent, or spouse, other than a spouse who is legally
14separated from the individual, of any individual who has a
15direct or indirect ownership of at least 5% in the profits,
16equity, capital, or value of the taxpayer.
17    "REV Illinois credit" means a credit agreed to between the
18Department and the applicant under this Act that is based on
19the incremental income tax attributable to new employees and,
20if applicable, retained employees, and on training costs for
21such employees at the applicant's project.
22    "REV construction jobs credit" means a credit agreed to
23between the Department and the applicant under this Act that
24is based on the incremental income tax attributable to
25construction wages paid in connection with construction of the
26project facilities.

 

 

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1    "Statewide baseline" means the total number of full-time
2employees of the applicant and any related member employed by
3such entities at the time of application for incentives under
4this Act.
5    "Taxpayer" means an individual, corporation, partnership,
6or other entity that has a legal obligation to pay Illinois
7income taxes and file an Illinois income tax return.
8    "Training costs" means costs incurred to upgrade the
9technological skills of full-time employees in Illinois and
10includes: curriculum development; training materials
11(including scrap product costs); trainee domestic travel
12expenses; instructor costs (including wages, fringe benefits,
13tuition and domestic travel expenses); rent, purchase or lease
14of training equipment; and other usual and customary training
15costs. "Training costs" do not include costs associated with
16travel outside the United States (unless the Taxpayer receives
17prior written approval for the travel by the Director based on
18a showing of substantial need or other proof the training is
19not reasonably available within the United States), wages and
20fringe benefits of employees during periods of training, or
21administrative cost related to Full-Time Employees of the
22Taxpayer.
23    "Underserved area" means any geographic areas as defined
24in Section 5-5 of the Economic Development for a Growing
25Economy Tax Credit Act.
 

 

 

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1    Section 15. Powers of the Department. The Department, in
2addition to those powers granted under the Civil
3Administrative Code of Illinois, is granted and shall have all
4the powers necessary or convenient to administer the program
5under this Act and to carry out and effectuate the purposes and
6provisions of this Act, including, but not limited to, the
7power and authority to:
8        (1) adopt rules deemed necessary and appropriate for
9    the administration of the REV Illinois Program, the
10    designation of REV Illinois Projects, and the awarding of
11    credits;
12        (2) establish forms for applications, notifications,
13    contracts, or any other agreements and accept applications
14    at any time during the year;
15        (3) assist taxpayers pursuant to the provisions of
16    this Act and cooperate with taxpayers that are parties to
17    agreements under this Act to promote, foster, and support
18    economic development, capital investment, and job creation
19    or retention within the State;
20        (4) enter into agreements and memoranda of
21    understanding for participation of, and engage in
22    cooperation with, agencies of the federal government,
23    units of local government, universities, research
24    foundations or institutions, regional economic development
25    corporations, or other organizations to implement the
26    requirements and purposes of this Act;

 

 

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1        (5) gather information and conduct inquiries, in the
2    manner and by the methods it deems desirable, including
3    without limitation, gathering information with respect to
4    applicants for the purpose of making any designations or
5    certifications necessary or desirable or to gather
6    information to assist the Department with any
7    recommendation or guidance in the furtherance of the
8    purposes of this Act;
9        (6) establish, negotiate and effectuate agreements and
10    any term, agreement, or other document with any person,
11    necessary or appropriate to accomplish the purposes of
12    this Act; and to consent, subject to the provisions of any
13    agreement with another party, to the modification or
14    restructuring of any agreement to which the Department is
15    a party;
16        (7) fix, determine, charge, and collect any premiums,
17    fees, charges, costs, and expenses from applicants,
18    including, without limitation, any application fees,
19    commitment fees, program fees, financing charges, or
20    publication fees as deemed appropriate to pay expenses
21    necessary or incident to the administration, staffing, or
22    operation in connection with the Department's activities
23    under this Act, or for preparation, implementation, and
24    enforcement of the terms of the agreement, or for
25    consultation, advisory and legal fees, and other costs;
26    however, all fees and expenses incident thereto shall be

 

 

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1    the responsibility of the applicant;
2        (8) provide for sufficient personnel to permit
3    administration, staffing, operation, and related support
4    required to adequately discharge its duties and
5    responsibilities described in this Act from funds made
6    available through charges to applicants or from funds as
7    may be appropriated by the General Assembly for the
8    administration of this Act;
9        (9) require applicants, upon written request, to issue
10    any necessary authorization to the appropriate federal,
11    State, or local authority for the release of information
12    concerning a project being considered under the provisions
13    of this Act, with the information requested to include,
14    but not be limited to, financial reports, returns, or
15    records relating to the taxpayer or its project;
16        (10) require that a taxpayer shall at all times keep
17    proper books of record and account in accordance with
18    generally accepted accounting principles consistently
19    applied, with the books, records, or papers related to the
20    agreement in the custody or control of the taxpayer open
21    for reasonable Department inspection and audits, and
22    including, without limitation, the making of copies of the
23    books, records, or papers, and the inspection or appraisal
24    of any of the taxpayer or project assets;
25        (11) take whatever actions are necessary or
26    appropriate to protect the State's interest in the event

 

 

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1    of bankruptcy, default, foreclosure, or noncompliance with
2    the terms and conditions of financial assistance or
3    participation required under this Act, including the power
4    to sell, dispose, lease, or rent, upon terms and
5    conditions determined by the Director to be appropriate,
6    real or personal property that the Department may receive
7    as a result of these actions.
 
8    Section 20. REV Illinois Program; project applications.
9    (a) The Reimagining Electric Vehicles in Illinois (REV
10Illinois) Program is hereby established and shall be
11administered by the Department. The Program will provide
12financial incentives to eligible manufacturers of electric
13vehicles, electric vehicle component parts, and electric
14vehicle power supply equipment.
15    (b) Any taxpayer planning a project to be located in
16Illinois may request consideration for designation of its
17project as a REV Illinois Project, by formal written letter of
18request or by formal application to the Department, in which
19the applicant states its intent to make at least a specified
20level of investment and intends to hire a specified number of
21full-time employees at a designated location in Illinois. As
22circumstances require, the Department shall require a formal
23application from an applicant and a formal letter of request
24for assistance.
25    (c) In order to qualify for credits under the REV Illinois

 

 

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1Program, an Applicant must:
2        (1) for an electric vehicle manufacturer:
3            (A) make an investment of at least $1,500,000,000
4        in capital improvements at the project site;
5            (B) to be placed in service within the State
6        within a 60-month period after approval of the
7        application; and
8            (C) create at least 500 new full-time employee
9        jobs; or
10        (2) for an electric vehicle component parts
11    manufacturer:
12            (A) make an investment of at least $300,000,000 in
13        capital improvements at the project site;
14            (B) manufacture one or more parts that are
15        primarily used for electric vehicle manufacturing;
16            (C) to be placed in service within the State
17        within a 60-month period after approval of the
18        application; and
19            (D) create at least 150 new full-time employee
20        jobs; or
21        (3) for an electric vehicle manufacturer, electric
22    vehicle power supply equipment Manufacturer, or electric
23    vehicle component part manufacturer that does not quality
24    under paragraph (2) above:
25            (A) make an investment of at least $20,000,000 in
26        capital improvements at the project site;

 

 

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1            (B) for electric vehicle component part
2        manufacturers, manufacture one or more parts that are
3        primarily used for electric vehicle manufacturing;
4            (C) to be placed in service within the State
5        within a 48-month period after approval of the
6        application; and
7            (D) create at least 50 new full-time employee
8        jobs; or
9        (4) for an electric vehicle manufacturer or electric
10    vehicle component parts manufacturer with existing
11    operations within Illinois that intends to convert or
12    expand, in whole or in part, the existing facility from
13    traditional manufacturing to electric vehicle
14    manufacturing, electric vehicle component parts
15    manufacturing, or electric vehicle power supply equipment
16    manufacturing:
17            (A) make an investment of at least $100,000,000 in
18        capital improvements at the project site;
19            (B) to be placed in service within the State
20        within a 60-month period after approval of the
21        application; and
22            (C) create the lesser of 75 new full-time employee
23        jobs or new full-time employee jobs equivalent to 10%
24        of the Statewide baseline applicable to the taxpayer
25        and any related member at the time of application.
26    (d) For any applicant creating the full-time employee jobs

 

 

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1noted in subsection (c), those jobs must have a total
2compensation equal to or greater than 120% of the average wage
3paid to full-time employees in the county where the project is
4located, as determined by the U.S. Bureau of Labor Statistics.
5    (e) For any applicant, within 24 months after being placed
6in service, it must certify to the Department that it is carbon
7neutral or has attained certification under one of more of the
8following green building standards:
9        (1) BREEAM for New Construction or BREEAM In-Use;
10        (2) ENERGY STAR;
11        (3) Envision;
12        (4) ISO 50001 energy management;
13        (5) LEED for Building Design and Construction or LEED
14    for Building Operations and Maintenance;
15        (6) Green Globes for New Construction or Green Globes
16    for Existing Buildings; or
17        (7) UL 3223.
18    (f) Each applicant must outline its hiring plan and
19commitment to recruit and hire full-time employee positions at
20the project site. The hiring plan may include a partnership
21with an institution of higher education to provide
22internships, including, but not limited to, internships
23supported by the Clean Jobs Workforce Network Program, or
24full-time permanent employment for students at the project
25site. Additionally, the applicant may create or utilize
26participants from apprenticeship programs that are approved by

 

 

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1and registered with the United States Department of Labor's
2Bureau of Apprenticeship and Training. The Applicant may apply
3for apprenticeship education expense credits in accordance
4with the provisions set forth in 14 Ill. Admin. Code 522. Each
5applicant is required to report annually, on or before April
615, on the diversity of its workforce in accordance with
7Section 50 of this Act. For existing facilities of applicants
8under paragraph (3) of subsection (b) above, if the taxpayer
9expects a reduction in force due to its transition to
10manufacturing electric vehicle, electric vehicle component
11parts, or electric vehicle power supply equipment, the plan
12submitted under this Section must outline the taxpayer's plan
13to assist with retraining its workforce aligned with the
14taxpayer's adoption of new technologies and anticipated
15efforts to retrain employees through employment opportunities
16within the taxpayer's workforce.
17    (g) Each applicant must demonstrate a contractual or other
18relationship with a recycling facility, or demonstrate its own
19recycling capabilities, at the time of application and report
20annually a continuing contractual or other relationship with a
21recycling facility and the percentage of batteries used in
22electric vehicles recycled throughout the term of the
23agreement.
24    (h) A taxpayer may not enter into more than one agreement
25under this Act with respect to a single address or location for
26the same period of time. Also, a taxpayer may not enter into an

 

 

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1agreement under this Act with respect to a single address or
2location for the same period of time for which the taxpayer
3currently holds an active agreement under the Economic
4Development for a Growing Economy Tax Credit Act. This
5provision does not preclude the applicant from entering into
6an additional agreement after the expiration or voluntary
7termination of an earlier agreement under this Act or under
8the Economic Development for a Growing Economy Tax Credit Act
9to the extent that the taxpayer's application otherwise
10satisfies the terms and conditions of this Act and is approved
11by the Department. An applicant with an existing agreement
12under the Economic Development for a Growing Economy Tax
13Credit Act may submit an application for an agreement under
14this Act after it terminates any existing agreement under the
15Economic Development for a Growing Economy Tax Credit Act with
16respect to the same address or location.
 
17    Section 25. Review of application. The Department shall
18determine which projects will benefit the State. In making its
19recommendation that an applicant's application for credit
20should or should not be accepted, which shall occur within a
21reasonable time frame as determined by the nature of the
22application, the Department shall determine that all the
23following conditions exist:
24        (1) the applicant intends to make the required
25    investment in the State and intends to hire the required

 

 

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1    number of full-time employees;
2        (2) the applicant's project is economically sound,
3    will benefit the people of the State by increasing
4    opportunities for employment, and will strengthen the
5    economy of the State;
6        (3) awarding the credit will result in an overall
7    positive fiscal impact to the State, as certified by the
8    Department using the best available data; and
9        (4) the credit is not prohibited under this Act.
 
10    Section 30. Tax credit awards.
11    (a) Subject to the conditions set forth in this Act, a
12taxpayer is entitled to a credit against the tax imposed
13pursuant to subsections (a) and (b) of Section 201 of the
14Illinois Income Tax Act for a taxable year beginning on or
15after January 1, 2025 if the taxpayer is awarded a credit by
16the Department in accordance with an agreement under this Act.
17The Department has authority to award credits under this Act
18on and after January 1, 2022.
19    (b) REV Illinois Credits. A taxpayer may receive a tax
20credit against the tax imposed under subsections (a) and (b)
21of Section 201 of the Illinois Income Tax Act, not to exceed
22the sum of (i) 75% of the incremental income tax attributable
23to new employees at the applicant's project and (ii) 10% of the
24training costs of the new employees. If the project is located
25in an underserved area or an energy transition area, then the

 

 

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1amount of the credit may not exceed the sum of (i) 100% of the
2incremental income tax attributable to new employees at the
3applicant's project; and (ii) 10% of the training costs of the
4new employees. The percentage of training costs includable in
5the calculation may be increased by an additional 15% for
6training costs associated with new employees that are recent
7(2 years or less) graduates, certificate holders, or
8credential recipients from an institution of higher education
9in Illinois, or, if the training is provided by an institution
10of higher education in Illinois, the Clean Jobs Workforce
11Network Program, or an apprenticeship and training program
12located in Illinois and approved by and registered with the
13United States Department of Labor's Bureau of Apprenticeship
14and Training. An applicant is also eligible for a training
15credit that shall not exceed 10% of the training costs of
16retained employees for the purpose of upskilling to meet the
17operational needs of the applicant or the REV Illinois
18Project. The percentage of training costs includable in the
19calculation shall not exceed a total of 25%. If an applicant
20agrees to hire the required number of new employees, then the
21maximum amount of the credit for that applicant may be
22increased by an amount not to exceed 25% of the incremental
23income tax attributable to retained employees at the
24applicant's project; provided that, in order to receive the
25increase for retained employees, the applicant must, if
26applicable, meet or exceed the statewide baseline. If the

 

 

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1Project is in an underserved area or an energy transition
2area, the maximum amount of the credit attributable to
3retained employees for the applicant may be increased to an
4amount not to exceed 50% of the incremental income tax
5attributable to retained employees at the applicant's project;
6provided that, in order to receive the increase for retained
7employees, the applicant must meet or exceed the statewide
8baseline. REV Illinois Credits awarded may include credit
9earned for incremental income tax withheld and training costs
10incurred by the taxpayer beginning on or after January 1,
112022. Credits so earned and certified by the Department may be
12applied against the tax imposed by subsections (a) and (b) of
13Section 201 of the Illinois Income Tax Act for taxable years
14beginning on or after January 1, 2025.
15    (c) REV Construction Jobs Credit. For construction wages
16associated with a project that qualified for a REV Illinois
17Credit under subsection (b), the taxpayer may receive a tax
18credit against the tax imposed under subsections (a) and (b)
19of Section 201 of the Illinois Income Tax Act in an amount
20equal to 50% of the incremental income tax attributable to
21construction wages paid in connection with construction of the
22project facilities, as a jobs credit for workers hired to
23construct the project.
24    The REV Construction Jobs Credit may not exceed 75% of the
25amount of the incremental income tax attributable to
26construction wages paid in connection with construction of the

 

 

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1project facilities if the project is in an underserved area or
2an energy transition area.
3    (d) The Department shall certify to the Department of
4Revenue: (1) the identity of Taxpayers that are eligible for
5the REV Illinois Credit and REV Construction Jobs Credit; (2)
6the amount of the REV Illinois Credits and REV Construction
7Jobs Credits awarded in each calendar year; and (3) the amount
8of the REV Illinois Credit and REV Construction Jobs Credit
9claimed in each calendar year. REV Illinois Credits awarded
10may include credit earned for Incremental Income Tax withheld
11and Training Costs incurred by the Taxpayer beginning on or
12after January 1, 2022. Credits so earned and certified by the
13Department may be applied against the tax imposed by Section
14201(a) and (b) of the Illinois Income Tax Act for taxable years
15beginning on or after January 1, 2025.
16    (e) Applicants seeking certification for a tax credits
17related to the construction of the project facilities in the
18State shall require the contractor to enter into a project
19labor agreement that conforms with the Project Labor
20Agreements Act.
21    (f) Any applicant issued a certificate for a tax credit or
22tax exemption under this Act must annually report to the
23Department the total project tax benefits received. Reports
24are due no later than May 31 of each year and shall cover the
25previous calendar year. The first report is for the 2022
26calendar year and is due no later than May 31, 2023.

 

 

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1    (g) Nothing in this Act shall prohibit an award of credit
2to an applicant that uses a PEO if all other award criteria are
3satisfied.
4    (h) With respect to any portion of a REV Illinois Credit
5that is based on the incremental income tax attributable to
6new employees or retained employees, in lieu of the Credit
7allowed under this Act against the taxes imposed pursuant to
8subsections (a) and (b) of Section 201 of the Illinois Income
9Tax Act, a taxpayer that otherwise meets the criteria set
10forth in this Section, the taxpayer may elect to claim the
11credit, on or after January 1, 2025, against its obligation to
12pay over withholding under Section 704A of the Illinois Income
13Tax Act. The election shall be made in the manner prescribed by
14the Department of Revenue and once made shall be irrevocable.
 
15    Section 35. Relocation of jobs in Illinois. A taxpayer is
16not entitled to claim a credit provided by this Act with
17respect to any jobs that the Taxpayer relocates from one site
18in Illinois to another site in Illinois. Any full-time
19employee relocated to Illinois in connection with a qualifying
20project is deemed to be a new employee for purposes of this
21Act. Determinations under this Section shall be made by the
22Department.
 
23    Section 40. Amount and duration of the credits; limitation
24to amount of costs of specified items. The Department shall

 

 

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1determine the amount and duration of the REV Illinois Credit
2awarded under this Act, subject to the limitations set forth
3in this Act. For a project that qualified under paragraph (1),
4(2), or (4) of subsection (c) of Section 20, the duration of
5the credit may not exceed 15 taxable years. For project that
6qualified under paragraph (3) of subsection (c) of Section 20,
7the duration of the credit may not exceed 10 taxable years. The
8credit may be stated as a percentage of the incremental income
9tax and training costs attributable to the applicant's project
10and may include a fixed dollar limitation.
11    Nothing in this Section shall prevent the Department, in
12consultation with the Department of Revenue, from adopting
13rules to extend the sunset of any earned, existing, and unused
14tax credit or credits a taxpayer may be in possession of, as
15provided for in Section 605-1055 of the Department of Commerce
16and Economic Opportunity Law of the Civil Administrative Code
17of Illinois, notwithstanding the carry-forward provisions
18pursuant to paragraph (4) of Section 211 of the Illinois
19Income Tax Act.
 
20    Section 45. Contents of agreements with applicants.
21    (a) The Department shall enter into an agreement with an
22applicant that is awarded a credit under this Act. The
23agreement shall include all of the following:
24        (1) A detailed description of the project that is the
25    subject of the agreement, including the location and

 

 

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1    amount of the investment and jobs created or retained.
2        (2) The duration of the credit, the first taxable year
3    for which the credit may be awarded, and the first taxable
4    year in which the credit may be used by the taxpayer.
5        (3) The credit amount that will be allowed for each
6    taxable year.
7        (4) For a project qualified under paragraphs (1), (2),
8    or (4) of subsection (c) of Section 20, a requirement that
9    the taxpayer shall maintain operations at the project
10    location a minimum number of years not to exceed 15. For
11    project qualified under paragraph (3) of subsection (c) of
12    Section 20, a requirement that the taxpayer shall maintain
13    operations at the project location a minimum number of
14    years not to exceed 10.
15        (5) A specific method for determining the number of
16    new employees and if applicable, retained employees,
17    employed during a taxable year.
18        (6) A requirement that the taxpayer shall annually
19    report to the Department the number of new employees, the
20    incremental income tax withheld in connection with the new
21    employees, and any other information the Department deems
22    necessary and appropriate to perform its duties under this
23    Act.
24        (7) A requirement that the Director is authorized to
25    verify with the appropriate State agencies the amounts
26    reported under paragraph (6), and after doing so shall

 

 

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1    issue a certificate to the taxpayer stating that the
2    amounts have been verified.
3        (8) A requirement that the taxpayer shall provide
4    written notification to the Director not more than 30 days
5    after the taxpayer makes or receives a proposal that would
6    transfer the taxpayer's State tax liability obligations to
7    a successor taxpayer.
8        (9) A detailed description of the number of new
9    employees to be hired, and the occupation and payroll of
10    full-time jobs to be created or retained because of the
11    project.
12        (10) The minimum investment the taxpayer will make in
13    capital improvements, the time period for placing the
14    property in service, and the designated location in
15    Illinois for the investment.
16        (11) A requirement that the taxpayer shall provide
17    written notification to the Director and the Director's
18    designee not more than 30 days after the taxpayer
19    determines that the minimum job creation or retention,
20    employment payroll, or investment no longer is or will be
21    achieved or maintained as set forth in the terms and
22    conditions of the agreement. Additionally, the
23    notification should outline to the Department the number
24    of layoffs, date of the layoffs, and detail taxpayer's
25    efforts to provide career and training counseling for the
26    impacted workers with industry-related certifications and

 

 

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1    trainings.
2        (12) A provision that, if the total number of new
3    employees falls below a specified level, the allowance of
4    credit shall be suspended until the number of new
5    employees equals or exceeds the agreement amount.
6        (13) If applicable, a provision that specifies the
7    statewide baseline at the time of application for retained
8    employees. Additionally, the agreement must have a
9    provision addressing if the total number retained
10    employees falls below the statewide baseline, the
11    allowance of the credit shall be suspended until the
12    number of retained employees equals or exceeds the
13    agreement amount.
14        (14) A detailed description of the items for which the
15    costs incurred by the Taxpayer will be included in the
16    limitation on the Credit provided in Section 40.
17        (15) A provision stating that if the taxpayer fails to
18    meet either the investment or job creation and retention
19    requirements specified in the agreement during the entire
20    5-year period beginning on the first day of the first
21    taxable year in which the agreement is executed and ending
22    on the last day of the fifth taxable year after the
23    agreement is executed, then the agreement is automatically
24    terminated on the last day of the fifth taxable year after
25    the agreement is executed, and the taxpayer is not
26    entitled to the award of any credits for any of that 5-year

 

 

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1    period.
2        (16) A provision stating that if the taxpayer ceases
3    principal operations with the intent to permanently shut
4    down the project in the State during the term of the
5    Agreement, then the entire credit amount awarded to the
6    taxpayer prior to the date the taxpayer ceases principal
7    operations shall be returned to the Department and shall
8    be reallocated to the local workforce investment area in
9    which the project was located.
10        (17) A provision stating that the Taxpayer must
11    provide the reports outlined in Sections 50 and 55 on or
12    before April 15 each year.
13        (18) A provision requiring the taxpayer to report
14    annually its contractual obligations or otherwise with a
15    recycling facility for its operations.
16        (19) Any other performance conditions or contract
17    provisions the Department determines are necessary or
18    appropriate.
19        (20) Each taxpayer under paragraph (1) of subsection
20    (c) of Section 20 above shall maintain labor neutrality
21    toward any union organizing campaign for any employees of
22    the taxpayer assigned to work on the premises of the REV
23    Illinois Project Site. This paragraph shall not apply to
24    an electric vehicle manufacturer, electric vehicle
25    component part manufacturer, electric vehicle power supply
26    manufacturer or any joint venture including an electric

 

 

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1    vehicle manufacturer, electric vehicle component part
2    manufacturer, and electric vehicle power supply
3    manufacturer, who is subject to collective bargaining
4    agreement entered into prior to the taxpayer filing an
5    application pursuant to this Act.
6    (b) The Department shall post on its website the terms of
7each agreement entered into under this Act. Such information
8shall be posted within 10 days after entering into the
9agreement and must include the following:
10        (1) the name of the taxpayer;
11        (2) the location of the project;
12        (3) the estimated value of the credit;
13        (4) the number of new employee jobs and, if
14    applicable, number of retained employee jobs at the
15    project; and
16        (5) whether or not the project is in an underserved
17    area or energy transition area.
 
18    Section 50. Diversity report on the taxpayer's workforce,
19board of directors, and vendors.
20    (a) Each taxpayer with a workforce of 100 or more
21employees and with an agreement for a REV Illinois project
22under this Act shall, starting on April 15, 2025, and every
23year thereafter prior to April 15, for which the Taxpayer has
24an Agreement under this Act, submit to the Department an
25annual report detailing the diversity of the taxpayer's own

 

 

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1workforce, including full-time and part-time employees,
2contractors, and board of directors' membership. Any taxpayer
3seeking to claim a credit under this Act that fails to timely
4submit the required report shall not receive a credit for that
5taxable year unless and until such report is finalized and
6submitted to the Department. The report should also address
7the Taxpayer's best efforts to meet or exceed the recruitment
8and hiring plan outlined in the application referenced in
9Section 20. Those reports shall be submitted in the form and
10manner required by the Department.
11    (b) Vendor diversity and annual report. Each taxpayer with
12a workforce of 100 or more full-time employees shall, starting
13on April 15, 2025 and every year thereafter for which the
14taxpayer has an Agreement under this Act, report on the
15diversity of the vendors that it utilizes, for publication on
16the Department's website, and include the following
17information:
18        (1) a point of contact for potential vendors to
19    register with the taxpayer's REV Illinois Project;
20        (2) certifications that the taxpayer accepts or
21    recognizes for minority and women-owned businesses as
22    entities;
23        (3) the taxpayers goals to contract with diverse
24    vendors, if any, for the next fiscal year for the entire
25    budget of the Taxpayer's REV Illinois Project;
26        (4) for the last fiscal year, the actual contractual

 

 

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1    spending for the entire budget of the REV Illinois Project
2    and the actual spending for minority-owned businesses and
3    women-owned businesses, expressed as a percentage of the
4    total budget for actual spending for the REV Illinois
5    project;
6        (5) A narrative explaining the results of the report
7    and the taxpayer's plan to address the voluntary goals for
8    the next fiscal year; and
9        (6) A copy of the taxpayer's submission of vendor
10    diversity information to the federal government, including
11    but not limited to vendor diversity goals and actual
12    contractual spending for minority-and women-owned
13    businesses, if the Taxpayer is a federal contractor and is
14    required by the federal government to submit such
15    information.
 
16    Section 55. Sexual harassment policy report. Each taxpayer
17claiming a credit under this Act shall, prior to April 15 of
18each taxable year for which the taxpayer claims a credit under
19this Act, submit to the Department a report detailing that
20taxpayer's sexual harassment policy, which contains, at a
21minimum, the following information: (i) the illegality of
22sexual harassment; (ii) the definition of sexual harassment
23under State law; (iii) a description of sexual harassment,
24utilizing examples; (iv) the vendor's internal complaint
25process, including penalties; (v) the legal recourse and

 

 

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1investigative and complaint processes available through the
2Department; (vi) directions on how to contact the Department;
3and (vii) protection against retaliation as provided by
4Section 6-101 of the Illinois Human Rights Act. A copy of the
5policy shall be provided to the Department upon request. The
6reports required under this Section shall be submitted in a
7form and manner determined by the Department.
 
8    Section 60. Certificate of verification; submission to the
9Department of Revenue.
10    (a) A taxpayer claiming a credit under this Act shall
11submit to the Department of Revenue a copy of the Director's
12certificate of verification under this Act for the taxable
13year. However, failure to submit a copy of the certificate
14with the taxpayer's tax return shall not invalidate a claim
15for a credit.
16    (b) For a taxpayer to be eligible for a certificate of
17verification, the taxpayer shall provide proof as required by
18the Department, prior to the end of each calendar year,
19including, but not limited to, attestation by the taxpayer
20that:
21        (1) The project has achieved the level of new employee
22    jobs specified in the agreement.
23        (2) The project has achieved the level of annual
24    payroll in Illinois specified in its agreement.
25        (3) The project has achieved the level of capital

 

 

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1    improvements in Illinois specified in its agreement.
2        (4) The project has achieved and maintained carbon
3    neutrality or one of the certifications specified in this
4    Act.
 
5    Section 65. Certified payroll.
6    (a) Each contractor and subcontractor that is engaged in
7construction work on project facilities for a taxpayer who
8seeks to apply for a REV Construction Jobs credit shall:
9        (1) make and keep, for a period of 5 years from the
10    date of the last payment made on a contract or subcontract
11    for construction of facilities for a REV Illinois Project
12    pursuant to an agreement, records of all laborers and
13    other workers employed by the contractor or subcontractor
14    on the project; the records shall include:
15            (A) the worker's name;
16            (B) the worker's address;
17            (C) the worker's telephone number, if available;
18            (D) the worker's social security number;
19            (E) the worker's classification or
20        classifications;
21            (F) the worker's gross and net wages paid in each
22        pay period;
23            (G) the worker's number of hours worked in each
24        day;
25            (H) the worker's starting and ending times of work

 

 

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1        each day;
2            (I) the worker's hourly wage rate; and
3            (J) the worker's hourly overtime wage rate; and
4        (2) no later than the 15th day of each calendar month,
5    provide a certified payroll for the immediately preceding
6    month to the taxpayer in charge of the project; within 5
7    business days after receiving the certified payroll, the
8    Taxpayer shall file the certified payroll with the
9    Department of Labor and the Department; a certified
10    payroll must be filed for only those calendar months
11    during which construction on the REV Illinois Project
12    facilities has occurred; the certified payroll shall
13    consist of a complete copy of the records identified in
14    paragraph (1), but may exclude the starting and ending
15    times of work each day; the certified payroll shall be
16    accompanied by a statement signed by the contractor or
17    subcontractor or an officer, employee, or agent of the
18    contractor or subcontractor which avers that:
19            (A) he or she has examined the certified payroll
20        records required to be submitted by the Act and such
21        records are true and accurate; and
22            (B) the contractor or subcontractor is aware that
23        filing a certified payroll that he or she knows to be
24        false is a Class A misdemeanor.
25    A general contractor is not prohibited from relying on a
26certified payroll of a lower-tier subcontractor, provided the

 

 

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1general contractor does not knowingly rely upon a
2subcontractor's false certification.
3    (b) Any contractor or subcontractor subject to this
4Section, and any officer, employee, or agent of such
5contractor or subcontractor whose duty as an officer,
6employee, or agent it is to file a certified payroll under this
7Section, who willfully fails to file such a certified payroll,
8on or before the date such certified payroll is required to be
9filed and any person who willfully files a false certified
10payroll as to any material fact is in violation of this Act and
11guilty of a Class A misdemeanor and may be enforced by the
12Illinois Department of Labor or the Department. The Attorney
13General shall represented the Illinois Department of Labor or
14the Department in the proceeding.
15    (c) The taxpayer in charge of the project shall keep the
16records submitted in accordance with this Section for a period
17of 5 years from the date of the last payment for work on a
18contract or subcontract for the project.
19    (d) The records submitted in accordance with this Section
20shall be considered public records, except an employee's
21address, telephone number, and social security number, which
22shall be redacted. The records shall be made publicly
23available in accordance with the Freedom of Information Act.
24The contractor or subcontractor shall submit reports to the
25Department of Labor electronically that meet the requirements
26of this subsection and shall share the information with the

 

 

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1Department to comply with the awarding of the REV Construction
2Jobs Credit. A contractor, subcontractor, or public body may
3retain records required under this Section in paper or
4electronic format.
5    (e) Upon 7 business days' notice, the contractor and each
6subcontractor shall make available for inspection and copying
7at a location within this State during reasonable hours, the
8records identified in paragraph (1) of this subsection to the
9Taxpayer in charge of the Project, its officers and agents,
10the Director of the Department of Labor and his/her deputies
11and agents, and to federal, State, or local law enforcement
12agencies and prosecutors.
 
13    Section 70. Noncompliance; notice; assessment. If the
14Director determines that a taxpayer who has received a credit
15under this Act is not complying with the requirements of the
16agreement or all of the provisions of this Act, the Director
17shall provide notice to the taxpayer of the alleged
18noncompliance and allow the taxpayer a hearing under the
19provisions of the Illinois Administrative Procedure Act. If,
20after such notice and any hearing, the Director determines
21that a noncompliance exists, the Director shall issue to the
22Department of Revenue notice to that effect, stating the
23noncompliance date. If, during the term of an agreement, the
24taxpayer ceases operations at a project location that is the
25subject of that agreement with the intent to terminate

 

 

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1operations in the State, the Department and the Department of
2Revenue shall recapture from the taxpayer the entire credit
3amount awarded under that agreement prior to the date the
4taxpayer ceases operations. The Department shall, subject to
5appropriation, reallocate the recaptured amounts within 6
6months to the local workforce investment area in which the
7project was located for purposes of workforce development,
8expanded opportunities for unemployed persons, and expanded
9opportunities for women and minority persons in the workforce.
10The taxpayer will be ineligible for future funding under other
11State tax credit or exemption programs for a 36-month period.
12Noncompliance of the agreement with result in a default of
13other agreements for State tax credits and exemption programs
14for the project.
 
15    Section 75. Annual report.
16    (a) On or before July 1 each year, the Department shall
17submit a report on the tax credit program under this Act to the
18Governor and the General Assembly. The report shall include
19information on the number of agreements that were entered into
20under this Act during the preceding calendar year, a
21description of the project that is the subject of each
22agreement, an update on the status of projects under
23agreements entered into before the preceding calendar year,
24and the sum of the credits awarded under this Act. A copy of
25the report shall be delivered to the Governor and to each

 

 

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1member of the General Assembly.
2    (b) The report must include, for each agreement:
3        (1) the original estimates of the value of the credit
4    and the number of new employee jobs to be created and, if
5    applicable, the number of retained employee jobs;
6        (2) any relevant modifications to existing agreements;
7        (3) a statement of the progress made by each taxpayer
8    in meeting the terms of the original agreement;
9        (4) a statement of wages paid to new employees and, if
10    applicable, retained employees in the State; and
11        (5) a copy of the original agreement or link to the
12    agreement on the Department's website.
 
13    Section 80. Evaluation of tax credit program. The
14Department shall evaluate the tax credit program every three
15years and issue a report. The evaluation shall include an
16assessment of the effectiveness of the program in creating new
17jobs in Illinois and of the revenue impact of the program and
18may include a review of the practices and experiences of other
19states with similar programs. The Director shall submit a
20report on the evaluation to the Governor and the General
21Assembly three years after the Effective Date of the Act and
22every three years thereafter.
 
23    Section 85. Sunset of new agreements. The Department shall
24not enter into any new Agreements under the provisions of this

 

 

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1Act after December 31, 2027.
 
2    Section 90. Prioritization of project review with the
3Department of Transportation. A project that would directly
4assist in the feasibility of locating an electric vehicle
5manufacturing facility, component parts manufacturing
6facility, or electric vehicle power supply manufacturing
7facility may be prioritized by the Secretary of Transportation
8if: (i) such project is included in the Highway Improvement
9Program; and (ii) the company will operate the facility that
10was approved to receive a REV Construction Jobs credit or a REV
11Illinois credit. Under no circumstances should a project be
12prioritized if it would compromise the delivery of a project
13to remediate an immediate threat to safety.
 
14    Section 95. Utility tax exemptions for REV Illinois
15Project sites. The Department may certify a taxpayer with a
16REV Illinois credit for a Project that meets the
17qualifications under Section paragraphs (1), (2), and (4) of
18subsection (c) of Section 20, subject to an agreement under
19this Act for an exemption from the tax imposed at the project
20site by Section 2-4 of the Electricity Excise Tax Law. To
21receive such certification, the taxpayer must be registered to
22self-assess that tax. The taxpayer is also exempt from any
23additional charges added to the taxpayer's utility bills at
24the project site as a pass-on of State utility taxes under

 

 

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1Section 9-222 of the Public Utilities Act. The taxpayer must
2meet any other the criteria for certification set by the
3Department.
4    The Department shall determine the period during which the
5exemption from the Electricity Excise Tax Law and the charges
6imposed under Section 9-222 of the Public Utilities Act are in
7effect, which shall not exceed 10 years from the date of the
8taxpayer's initial receipt of certification from the
9Department under this Section.
10    The Department is authorized to adopt rules to carry out
11the provisions of this Section, including procedures to apply
12for the exemptions; to define the amounts and types of
13eligible investments that an applicant must make in order to
14receive electricity excise tax exemptions or exemptions from
15the additional charges imposed under Section 9-222 and the
16Public Utilities Act; to approve such electricity excise tax
17exemptions for applicants whose investments are not yet placed
18in service; and to require that an applicant granted an
19electricity excise tax exemption or an exemption from
20additional charges under Section 9-222 of the Public Utilities
21Act repay the exempted amount if the Applicant fails to comply
22with the terms and conditions of the agreement.
23    Upon certification by the Department under this Section,
24the Department shall notify the Department of Revenue of the
25certification. The Department of Revenue shall notify the
26public utilities of the exempt status of any taxpayer

 

 

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1certified for exemption under this Act from the electricity
2excise tax or pass-on charges. The exemption status shall take
3effect within 3 months after certification of the taxpayer and
4notice to the Department of Revenue by the Department.
 
5    Section 100. Investment tax credits for REV Illinois
6Projects. Subject to the conditions set forth in this Act, a
7Taxpayer is entitled to an investment tax credit toward taxes
8imposed pursuant to subsections (a) and (b) of Section 201 of
9the Illinois Income Tax Act for a taxable year in which the
10Taxpayer, in accordance with an Agreement under this Act for
11that taxable year, invests in qualified property which is
12placed in service at the site of a REV Illinois Project. The
13Department has authority to certify the amount of such
14investment tax credits to the Department of Revenue. The
15credit shall be 0.5% of the basis for such property and shall
16be determined in accordance with Section 237 of the Illinois
17Income Tax Act. The credit shall be available only in the
18taxable year in which the property is placed in service and
19shall not be allowed to the extent that it would reduce a
20taxpayer's liability for the tax imposed by subsections (a)
21and (b) of Section 201 of the Illinois Income Tax Act to below
22zero. Unused credit may be carried forward in accordance with
23Section 237 of the Illinois Income Tax Act for use in future
24taxable years. Any taxpayer qualifying for the REV Illinois
25Investment Tax Credit shall not be eligible for either the

 

 

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1investment tax credits in Section 201(e), (f), or (h) of the
2Illinois Income Tax Act.
 
3    Section 105. Building materials exemptions for REV
4Illinois Project sites.
5    (a) The Department may certify a Taxpayer with a REV
6Illinois Project that meets the qualifications under
7paragraphs (1), (2), or (4) of subsection (c) of Section 20,
8subject to an agreement under this Act, for an exemption from
9any State or local use tax or retailers' occupation tax on
10building materials for the construction of its project
11facilities. The taxpayer must meet any criteria for
12certification set by the Department under this Act.
13    The Department shall determine the period during which the
14exemption from State and local use tax and retailers'
15occupation tax are in effect, but in no event shall exceed 5
16years in accordance with Section 5m of the Retailers'
17Occupation Tax Act.
18    The Department is authorized to promulgate rules and
19regulations to carry out the provisions of this Section,
20including procedures to apply for the exemption; to define the
21amounts and types of eligible investments that an applicant
22must make in order to receive tax exemption; to approve such
23tax exemption for an applicant whose investments are not yet
24placed in service; and to require that an applicant granted
25exemption repay the exempted amount if the applicant fails to

 

 

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1comply with the terms and conditions of the agreement with the
2Department.
3    Upon certification by the Department under this Section,
4the Department shall notify the Department of Revenue of the
5certification. The exemption status shall take effect within 3
6months after certification of the taxpayer and notice to the
7Department of Revenue by the Department.
 
8    Section 900. The Illinois Procurement Code is amended by
9adding Section 45-100 as follows:
 
10    (30 ILCS 500/45-100 new)
11    Sec. 45-100. Electric vehicles. For purposes of this
12Section, "electric vehicle" means a vehicle that is
13exclusively powered by and refueled by electricity, must be
14plugged in to charge or utilize a pre-charged battery, and is
15permitted to operate on public roadways. "Electric vehicle"
16does not include hybrid electric vehicles and extended-range
17electric vehicles that are also equipped with conventional
18fueled propulsion or auxiliary engines. For purposes of this
19section, "Manufactured in Illinois" means, in the case of
20electric vehicles, that design, final assembly, processing,
21packaging, testing, or other process that adds value, quality,
22or reliability occurs in Illinois.
23    In awarding contracts requiring the procurement of
24electric vehicles, preference shall be given to an otherwise

 

 

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1qualified bidder or offeror who will fulfill the contract
2through the use of electric vehicles manufactured in Illinois.
3Specifications for contracts for electric vehicles shall
4include a price preference of 20% for electric vehicles
5manufactured in Illinois. The purchasing agency may require
6additional information from bidders or offerors to verify
7whether an electric vehicle is manufactured in Illinois as
8defined by this Section.
 
9    Section 905. The Illinois Income Tax Act is amended by
10changing Sections 207 and 704A and by adding Sections 236 and
11237 as follows:
 
12    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)
13    Sec. 207. Net Losses.
14    (a) If after applying all of the (i) modifications
15provided for in paragraph (2) of Section 203(b), paragraph (2)
16of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
17the allocation and apportionment provisions of Article 3 of
18this Act and subsection (c) of this Section, the taxpayer's
19net income results in a loss;
20        (1) for any taxable year ending prior to December 31,
21    1999, such loss shall be allowed as a carryover or
22    carryback deduction in the manner allowed under Section
23    172 of the Internal Revenue Code;
24        (2) for any taxable year ending on or after December

 

 

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1    31, 1999 and prior to December 31, 2003, such loss shall be
2    allowed as a carryback to each of the 2 taxable years
3    preceding the taxable year of such loss and shall be a net
4    operating loss carryover to each of the 20 taxable years
5    following the taxable year of such loss; and
6        (3) for any taxable year ending on or after December
7    31, 2003 and prior to December 31, 2021, such loss shall be
8    allowed as a net operating loss carryover to each of the 12
9    taxable years following the taxable year of such loss,
10    except as provided in subsection (d); and .
11        (4) for any taxable year ending on or after December
12    31, 2021, and for any net loss incurred in a taxable year
13    prior to a taxable year ending on or after December 31,
14    2021 for which the statute of limitation for utilization
15    of such net loss has not expired, such loss shall be
16    allowed as a net operating loss carryover to each of the 20
17    taxable years following the taxable year of such loss,
18    except as provided in subsection (d).
19    (a-5) Election to relinquish carryback and order of
20application of losses.
21            (A) For losses incurred in tax years ending prior
22        to December 31, 2003, the taxpayer may elect to
23        relinquish the entire carryback period with respect to
24        such loss. Such election shall be made in the form and
25        manner prescribed by the Department and shall be made
26        by the due date (including extensions of time) for

 

 

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1        filing the taxpayer's return for the taxable year in
2        which such loss is incurred, and such election, once
3        made, shall be irrevocable.
4            (B) The entire amount of such loss shall be
5        carried to the earliest taxable year to which such
6        loss may be carried. The amount of such loss which
7        shall be carried to each of the other taxable years
8        shall be the excess, if any, of the amount of such loss
9        over the sum of the deductions for carryback or
10        carryover of such loss allowable for each of the prior
11        taxable years to which such loss may be carried.
12    (b) Any loss determined under subsection (a) of this
13Section must be carried back or carried forward in the same
14manner for purposes of subsections (a) and (b) of Section 201
15of this Act as for purposes of subsections (c) and (d) of
16Section 201 of this Act.
17    (c) Notwithstanding any other provision of this Act, for
18each taxable year ending on or after December 31, 2008, for
19purposes of computing the loss for the taxable year under
20subsection (a) of this Section and the deduction taken into
21account for the taxable year for a net operating loss
22carryover under paragraphs (1), (2), and (3) of subsection (a)
23of this Section, the loss and net operating loss carryover
24shall be reduced in an amount equal to the reduction to the net
25operating loss and net operating loss carryover to the taxable
26year, respectively, required under Section 108(b)(2)(A) of the

 

 

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1Internal Revenue Code, multiplied by a fraction, the numerator
2of which is the amount of discharge of indebtedness income
3that is excluded from gross income for the taxable year (but
4only if the taxable year ends on or after December 31, 2008)
5under Section 108(a) of the Internal Revenue Code and that
6would have been allocated and apportioned to this State under
7Article 3 of this Act but for that exclusion, and the
8denominator of which is the total amount of discharge of
9indebtedness income excluded from gross income under Section
10108(a) of the Internal Revenue Code for the taxable year. The
11reduction required under this subsection (c) shall be made
12after the determination of Illinois net income for the taxable
13year in which the indebtedness is discharged.
14    (d) In the case of a corporation (other than a Subchapter S
15corporation), no carryover deduction shall be allowed under
16this Section for any taxable year ending after December 31,
172010 and prior to December 31, 2012, and no carryover
18deduction shall exceed $100,000 for any taxable year ending on
19or after December 31, 2012 and prior to December 31, 2014 and
20for any taxable year ending on or after December 31, 2021 and
21prior to December 31, 2024; provided that, for purposes of
22determining the taxable years to which a net loss may be
23carried under subsection (a) of this Section, no taxable year
24for which a deduction is disallowed under this subsection, or
25for which the deduction would exceed $100,000 if not for this
26subsection, shall be counted.

 

 

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1    (e) In the case of a residual interest holder in a real
2estate mortgage investment conduit subject to Section 860E of
3the Internal Revenue Code, the net loss in subsection (a)
4shall be equal to:
5        (1) the amount computed under subsection (a), without
6    regard to this subsection (e), or if that amount is
7    positive, zero;
8        (2) minus an amount equal to the amount computed under
9    subsection (a), without regard to this subsection (e),
10    minus the amount that would be computed under subsection
11    (a) if the taxpayer's federal taxable income were computed
12    without regard to Section 860E of the Internal Revenue
13    Code and without regard to this subsection (e).
14    The modification in this subsection (e) is exempt from the
15provisions of Section 250.
16(Source: P.A. 102-16, eff. 6-17-21.)
 
17    (35 ILCS 5/236 new)
18    Sec. 236. Reimagining Electric Vehicles in Illinois Tax
19credits.
20    (a) For tax years beginning on or after January 1, 2025, a
21taxpayer who has entered into an agreement under the
22Reimagining Electric Vehicles in Illinois Act is entitled to a
23credit against the taxes imposed under subsections (a) and (b)
24of Section 201 of this Act in an amount to be determined in the
25Agreement. The taxpayer may elect to claim the credit, on or

 

 

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1after January 1, 2025, against its obligation to pay over
2withholding under Section 704A of this Act as provided in
3paragraph (6) of subsection (b). If the taxpayer is a
4partnership or Subchapter S corporation, the credit shall be
5allowed to the partners or shareholders in accordance with the
6determination of income and distributive share of income under
7Sections 702 and 704 and subchapter S of the Internal Revenue
8Code. The Department, in cooperation with the Department of
9Commerce and Economic Opportunity, shall adopt rules to
10enforce and administer the provisions of this Section. This
11Section is exempt from the provisions of Section 250 of this
12Act.
13    (b) The credit is subject to the conditions set forth in
14the agreement and the following limitations:
15        (1) The tax credit may be in the form of either or both
16    the REV Illinois Credit or the REV Construction Jobs
17    Credit (as defined in the Reimagining Electric Vehicles in
18    Illinois Act) and shall not exceed the percentage of
19    incremental income tax and percentage of training costs
20    permitted in that Act and in the agreement with respect to
21    the project.
22        (2) The amount of the credit allowed during a tax year
23    plus the sum of all amounts allowed in prior tax years
24    shall not exceed the maximum amount of credit established
25    in the agreement.
26        (3) The amount of the credit shall be determined on an

 

 

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1    annual basis. Except as applied in a carryover year
2    pursuant to paragraph (4), the credit may not be applied
3    against any State income tax liability in more than 15
4    taxable years.
5        (4) The credit may not exceed the amount of taxes
6    imposed pursuant to subsections (a) and (b) of Section 201
7    of this Act. Any credit that is unused in the year the
8    credit is computed may be carried forward and applied to
9    the tax liability of the 5 taxable years following the
10    excess credit year. The credit shall be applied to the
11    earliest year for which there is a tax liability. If there
12    are credits from more than one tax year that are available
13    to offset a liability, the earlier credit shall be applied
14    first.
15        (5) No credit shall be allowed with respect to any
16    agreement for any taxable year ending after the
17    noncompliance date. Upon receiving notification by the
18    Department of Commerce and Economic Opportunity of the
19    noncompliance of a taxpayer with an agreement, the
20    Department shall notify the taxpayer that no credit is
21    allowed with respect to that agreement for any taxable
22    year ending after the noncompliance date, as stated in
23    such notification. If any credit has been allowed with
24    respect to an agreement for a taxable year ending after
25    the noncompliance date for that agreement, any refund paid
26    to the taxpayer for that taxable year shall, to the extent

 

 

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1    of that credit allowed, be an erroneous refund within the
2    meaning of Section 912 of this Act.
3        If, during any taxable year, a taxpayer ceases
4    operations at a project location that is the subject of
5    that agreement with the intent to terminate operations in
6    the State, the tax imposed under subsections (a) and (b)
7    of Section 201 of this Act for such taxable year shall be
8    increased by the amount of any credit allowed under the
9    Agreement for that Project location prior to the date the
10    Taxpayer ceases operations.
11        (6) Instead of claiming the credit against the taxes
12    imposed under subsections (a) and (b) of Section 201 of
13    this Act, with respect to the portion of a REV Illinois
14    Credit that is calculated based on the Incremental Income
15    Tax attributable to new employees and retained employees,
16    the taxpayer may elect, in accordance with the Reimagining
17    Electric Vehicles in Illinois Act, to claim the credit, on
18    or after January 1, 2025, against its obligation to pay
19    over withholding under Section 704A of the Illinois Income
20    Tax Act. Any credit for which a Taxpayer makes such an
21    election shall not be claimed against the taxes imposed
22    under subsections (a) and (b) of Section 201 of this Act.
 
23    (35 ILCS 5/237 new)
24    Sec. 237. REV Illinois Investment Tax credits.
25    (a) For tax years beginning on or after the effective date

 

 

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1of this amendatory Act of the 102nd General Assembly, a
2taxpayer shall be allowed a credit against the tax imposed by
3subsections (a) and (b) of Section 201 for investment in
4qualified property which is placed in service at the site of a
5REV Illinois Project subject to an agreement between the
6taxpayer and the Department of Commerce and Economic
7Opportunity pursuant to the Reimagining Electric Vehicles in
8Illinois Act. For partners, shareholders of Subchapter S
9corporations, and owners of limited liability companies, if
10the liability company is treated as a partnership for purposes
11of federal and State income taxation, there shall be allowed a
12credit under this Section to be determined in accordance with
13the determination of income and distributive share of income
14under Sections 702 and 704 and Subchapter S of the Internal
15Revenue Code. The credit shall be 0.5% of the basis for such
16property. The credit shall be available only in the taxable
17year in which the property is placed in service and shall not
18be allowed to the extent that it would reduce a taxpayer's
19liability for the tax imposed by subsections (a) and (b) of
20Section 201 to below zero. The credit shall be allowed for the
21tax year in which the property is placed in service, or, if the
22amount of the credit exceeds the tax liability for that year,
23whether it exceeds the original liability or the liability as
24later amended, such excess may be carried forward and applied
25to the tax liability of the 5 taxable years following the
26excess credit year. The credit shall be applied to the

 

 

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1earliest year for which there is a liability. If there is
2credit from more than one tax year that is available to offset
3a liability, the credit accruing first in time shall be
4applied first.
5    (b) The term qualified property means property which:
6        (1) is tangible, whether new or used, including
7    buildings and structural components of buildings;
8        (2) is depreciable pursuant to Section 167 of the
9    Internal Revenue Code, except that "3-year property" as
10    defined in Section 168(c)(2)(A) of that Code is not
11    eligible for the credit provided by this Section;
12        (3) is acquired by purchase as defined in Section
13    179(d) of the Internal Revenue Code;
14        (4) is used at the site of the REV Illinois Project by
15    the taxpayer; and
16        (5) has not been previously used in Illinois in such a
17    manner and by such a person as would qualify for the credit
18    provided by this Section.
19    (c) The basis of qualified property shall be the basis
20used to compute the depreciation deduction for federal income
21tax purposes.
22    (d) If the basis of the property for federal income tax
23depreciation purposes is increased after it has been placed in
24service at the site of the REV Illinois Project by the
25taxpayer, the amount of such increase shall be deemed property
26placed in service on the date of such increase in basis.

 

 

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1    (e) The term "placed in service" shall have the same
2meaning as under Section 46 of the Internal Revenue Code.
3    (f) If during any taxable year, any property ceases to be
4qualified property in the hands of the taxpayer within 48
5months after being placed in service, or the situs of any
6qualified property is moved from the REV Illinois Project site
7within 48 months after being placed in service, the tax
8imposed under subsections (a) and (b) of Section 201 for such
9taxable year shall be increased. Such increase shall be
10determined by (i) recomputing the investment credit which
11would have been allowed for the year in which credit for such
12property was originally allowed by eliminating such property
13from such computation, and (ii) subtracting such recomputed
14credit from the amount of credit previously allowed. For the
15purposes of this subsection (f), a reduction of the basis of
16qualified property resulting from a redetermination of the
17purchase price shall be deemed a disposition of qualified
18property to the extent of such reduction.
 
19    (35 ILCS 5/704A)
20    Sec. 704A. Employer's return and payment of tax withheld.
21    (a) In general, every employer who deducts and withholds
22or is required to deduct and withhold tax under this Act on or
23after January 1, 2008 shall make those payments and returns as
24provided in this Section.
25    (b) Returns. Every employer shall, in the form and manner

 

 

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1required by the Department, make returns with respect to taxes
2withheld or required to be withheld under this Article 7 for
3each quarter beginning on or after January 1, 2008, on or
4before the last day of the first month following the close of
5that quarter.
6    (c) Payments. With respect to amounts withheld or required
7to be withheld on or after January 1, 2008:
8        (1) Semi-weekly payments. For each calendar year, each
9    employer who withheld or was required to withhold more
10    than $12,000 during the one-year period ending on June 30
11    of the immediately preceding calendar year, payment must
12    be made:
13            (A) on or before each Friday of the calendar year,
14        for taxes withheld or required to be withheld on the
15        immediately preceding Saturday, Sunday, Monday, or
16        Tuesday;
17            (B) on or before each Wednesday of the calendar
18        year, for taxes withheld or required to be withheld on
19        the immediately preceding Wednesday, Thursday, or
20        Friday.
21        Beginning with calendar year 2011, payments made under
22    this paragraph (1) of subsection (c) must be made by
23    electronic funds transfer.
24        (2) Semi-weekly payments. Any employer who withholds
25    or is required to withhold more than $12,000 in any
26    quarter of a calendar year is required to make payments on

 

 

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1    the dates set forth under item (1) of this subsection (c)
2    for each remaining quarter of that calendar year and for
3    the subsequent calendar year.
4        (3) Monthly payments. Each employer, other than an
5    employer described in items (1) or (2) of this subsection,
6    shall pay to the Department, on or before the 15th day of
7    each month the taxes withheld or required to be withheld
8    during the immediately preceding month.
9        (4) Payments with returns. Each employer shall pay to
10    the Department, on or before the due date for each return
11    required to be filed under this Section, any tax withheld
12    or required to be withheld during the period for which the
13    return is due and not previously paid to the Department.
14    (d) Regulatory authority. The Department may, by rule:
15        (1) Permit employers, in lieu of the requirements of
16    subsections (b) and (c), to file annual returns due on or
17    before January 31 of the year for taxes withheld or
18    required to be withheld during the previous calendar year
19    and, if the aggregate amounts required to be withheld by
20    the employer under this Article 7 (other than amounts
21    required to be withheld under Section 709.5) do not exceed
22    $1,000 for the previous calendar year, to pay the taxes
23    required to be shown on each such return no later than the
24    due date for such return.
25        (2) Provide that any payment required to be made under
26    subsection (c)(1) or (c)(2) is deemed to be timely to the

 

 

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1    extent paid by electronic funds transfer on or before the
2    due date for deposit of federal income taxes withheld
3    from, or federal employment taxes due with respect to, the
4    wages from which the Illinois taxes were withheld.
5        (3) Designate one or more depositories to which
6    payment of taxes required to be withheld under this
7    Article 7 must be paid by some or all employers.
8        (4) Increase the threshold dollar amounts at which
9    employers are required to make semi-weekly payments under
10    subsection (c)(1) or (c)(2).
11    (e) Annual return and payment. Every employer who deducts
12and withholds or is required to deduct and withhold tax from a
13person engaged in domestic service employment, as that term is
14defined in Section 3510 of the Internal Revenue Code, may
15comply with the requirements of this Section with respect to
16such employees by filing an annual return and paying the taxes
17required to be deducted and withheld on or before the 15th day
18of the fourth month following the close of the employer's
19taxable year. The Department may allow the employer's return
20to be submitted with the employer's individual income tax
21return or to be submitted with a return due from the employer
22under Section 1400.2 of the Unemployment Insurance Act.
23    (f) Magnetic media and electronic filing. With respect to
24taxes withheld in calendar years prior to 2017, any W-2 Form
25that, under the Internal Revenue Code and regulations
26promulgated thereunder, is required to be submitted to the

 

 

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1Internal Revenue Service on magnetic media or electronically
2must also be submitted to the Department on magnetic media or
3electronically for Illinois purposes, if required by the
4Department.
5    With respect to taxes withheld in 2017 and subsequent
6calendar years, the Department may, by rule, require that any
7return (including any amended return) under this Section and
8any W-2 Form that is required to be submitted to the Department
9must be submitted on magnetic media or electronically.
10    The due date for submitting W-2 Forms shall be as
11prescribed by the Department by rule.
12    (g) For amounts deducted or withheld after December 31,
132009, a taxpayer who makes an election under subsection (f) of
14Section 5-15 of the Economic Development for a Growing Economy
15Tax Credit Act for a taxable year shall be allowed a credit
16against payments due under this Section for amounts withheld
17during the first calendar year beginning after the end of that
18taxable year equal to the amount of the credit for the
19incremental income tax attributable to full-time employees of
20the taxpayer awarded to the taxpayer by the Department of
21Commerce and Economic Opportunity under the Economic
22Development for a Growing Economy Tax Credit Act for the
23taxable year and credits not previously claimed and allowed to
24be carried forward under Section 211(4) of this Act as
25provided in subsection (f) of Section 5-15 of the Economic
26Development for a Growing Economy Tax Credit Act. The credit

 

 

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1or credits may not reduce the taxpayer's obligation for any
2payment due under this Section to less than zero. If the amount
3of the credit or credits exceeds the total payments due under
4this Section with respect to amounts withheld during the
5calendar year, the excess may be carried forward and applied
6against the taxpayer's liability under this Section in the
7succeeding calendar years as allowed to be carried forward
8under paragraph (4) of Section 211 of this Act. The credit or
9credits shall be applied to the earliest year for which there
10is a tax liability. If there are credits from more than one
11taxable year that are available to offset a liability, the
12earlier credit shall be applied first. Each employer who
13deducts and withholds or is required to deduct and withhold
14tax under this Act and who retains income tax withholdings
15under subsection (f) of Section 5-15 of the Economic
16Development for a Growing Economy Tax Credit Act must make a
17return with respect to such taxes and retained amounts in the
18form and manner that the Department, by rule, requires and pay
19to the Department or to a depositary designated by the
20Department those withheld taxes not retained by the taxpayer.
21For purposes of this subsection (g), the term taxpayer shall
22include taxpayer and members of the taxpayer's unitary
23business group as defined under paragraph (27) of subsection
24(a) of Section 1501 of this Act. This Section is exempt from
25the provisions of Section 250 of this Act. No credit awarded
26under the Economic Development for a Growing Economy Tax

 

 

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1Credit Act for agreements entered into on or after January 1,
22015 may be credited against payments due under this Section.
3    (g-1) For amounts deducted or withheld after December 31,
42024, a taxpayer who makes an election under the Reimagining
5Electric Vehicles in Illinois Act shall be allowed a credit
6against payments due under this Section for amounts withheld
7during the first quarterly reporting period beginning after
8the certificate is issued equal to the portion of the REV
9Illinois Credit attributable to the incremental income tax
10attributable to new employees and retained employees as
11certified by the Department of Commerce and Economic
12Opportunity pursuant to an agreement with the taxpayer under
13the Reimagining Electric Vehicles in Illinois Act for the
14taxable year. The credit or credits may not reduce the
15taxpayer's obligation for any payment due under this Section
16to less than zero. If the amount of the credit or credits
17exceeds the total payments due under this Section with respect
18to amounts withheld during the quarterly reporting period, the
19excess may be carried forward and applied against the
20taxpayer's liability under this Section in the succeeding
21quarterly reporting period as allowed to be carried forward
22under paragraph (4) of Section 211 of this Act. The credit or
23credits shall be applied to the earliest quarterly reporting
24period for which there is a tax liability. If there are credits
25from more than one quarterly reporting period that are
26available to offset a liability, the earlier credit shall be

 

 

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1applied first. Each employer who deducts and withholds or is
2required to deduct and withhold tax under this Act and who
3retains income tax withholdings this subsection must make a
4return with respect to such taxes and retained amounts in the
5form and manner that the Department, by rule, requires and pay
6to the Department or to a depositary designated by the
7Department those withheld taxes not retained by the taxpayer.
8For purposes of this subsection (g-1), the term taxpayer shall
9include taxpayer and members of the taxpayer's unitary
10business group as defined under paragraph (27) of subsection
11(a) of Section 1501 of this Act. This Section is exempt from
12the provisions of Section 250 of this Act.
13    (h) An employer may claim a credit against payments due
14under this Section for amounts withheld during the first
15calendar year ending after the date on which a tax credit
16certificate was issued under Section 35 of the Small Business
17Job Creation Tax Credit Act. The credit shall be equal to the
18amount shown on the certificate, but may not reduce the
19taxpayer's obligation for any payment due under this Section
20to less than zero. If the amount of the credit exceeds the
21total payments due under this Section with respect to amounts
22withheld during the calendar year, the excess may be carried
23forward and applied against the taxpayer's liability under
24this Section in the 5 succeeding calendar years. The credit
25shall be applied to the earliest year for which there is a tax
26liability. If there are credits from more than one calendar

 

 

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1year that are available to offset a liability, the earlier
2credit shall be applied first. This Section is exempt from the
3provisions of Section 250 of this Act.
4    (i) Each employer with 50 or fewer full-time equivalent
5employees during the reporting period may claim a credit
6against the payments due under this Section for each qualified
7employee in an amount equal to the maximum credit allowable.
8The credit may be taken against payments due for reporting
9periods that begin on or after January 1, 2020, and end on or
10before December 31, 2027. An employer may not claim a credit
11for an employee who has worked fewer than 90 consecutive days
12immediately preceding the reporting period; however, such
13credits may accrue during that 90-day period and be claimed
14against payments under this Section for future reporting
15periods after the employee has worked for the employer at
16least 90 consecutive days. In no event may the credit exceed
17the employer's liability for the reporting period. Each
18employer who deducts and withholds or is required to deduct
19and withhold tax under this Act and who retains income tax
20withholdings under this subsection must make a return with
21respect to such taxes and retained amounts in the form and
22manner that the Department, by rule, requires and pay to the
23Department or to a depositary designated by the Department
24those withheld taxes not retained by the employer.
25    For each reporting period, the employer may not claim a
26credit or credits for more employees than the number of

 

 

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1employees making less than the minimum or reduced wage for the
2current calendar year during the last reporting period of the
3preceding calendar year. Notwithstanding any other provision
4of this subsection, an employer shall not be eligible for
5credits for a reporting period unless the average wage paid by
6the employer per employee for all employees making less than
7$55,000 during the reporting period is greater than the
8average wage paid by the employer per employee for all
9employees making less than $55,000 during the same reporting
10period of the prior calendar year.
11    For purposes of this subsection (i):
12    "Compensation paid in Illinois" has the meaning ascribed
13to that term under Section 304(a)(2)(B) of this Act.
14    "Employer" and "employee" have the meaning ascribed to
15those terms in the Minimum Wage Law, except that "employee"
16also includes employees who work for an employer with fewer
17than 4 employees. Employers that operate more than one
18establishment pursuant to a franchise agreement or that
19constitute members of a unitary business group shall aggregate
20their employees for purposes of determining eligibility for
21the credit.
22    "Full-time equivalent employees" means the ratio of the
23number of paid hours during the reporting period and the
24number of working hours in that period.
25    "Maximum credit" means the percentage listed below of the
26difference between the amount of compensation paid in Illinois

 

 

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1to employees who are paid not more than the required minimum
2wage reduced by the amount of compensation paid in Illinois to
3employees who were paid less than the current required minimum
4wage during the reporting period prior to each increase in the
5required minimum wage on January 1. If an employer pays an
6employee more than the required minimum wage and that employee
7previously earned less than the required minimum wage, the
8employer may include the portion that does not exceed the
9required minimum wage as compensation paid in Illinois to
10employees who are paid not more than the required minimum
11wage.
12        (1) 25% for reporting periods beginning on or after
13    January 1, 2020 and ending on or before December 31, 2020;
14        (2) 21% for reporting periods beginning on or after
15    January 1, 2021 and ending on or before December 31, 2021;
16        (3) 17% for reporting periods beginning on or after
17    January 1, 2022 and ending on or before December 31, 2022;
18        (4) 13% for reporting periods beginning on or after
19    January 1, 2023 and ending on or before December 31, 2023;
20        (5) 9% for reporting periods beginning on or after
21    January 1, 2024 and ending on or before December 31, 2024;
22        (6) 5% for reporting periods beginning on or after
23    January 1, 2025 and ending on or before December 31, 2025.
24    The amount computed under this subsection may continue to
25be claimed for reporting periods beginning on or after January
261, 2026 and:

 

 

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1        (A) ending on or before December 31, 2026 for
2    employers with more than 5 employees; or
3        (B) ending on or before December 31, 2027 for
4    employers with no more than 5 employees.
5    "Qualified employee" means an employee who is paid not
6more than the required minimum wage and has an average wage
7paid per hour by the employer during the reporting period
8equal to or greater than his or her average wage paid per hour
9by the employer during each reporting period for the
10immediately preceding 12 months. A new qualified employee is
11deemed to have earned the required minimum wage in the
12preceding reporting period.
13    "Reporting period" means the quarter for which a return is
14required to be filed under subsection (b) of this Section.
15(Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17;
16100-863, eff. 8-14-18; 101-1, eff. 2-19-19.)
 
17    Section 910. The Retailers' Occupation Tax Act is amended
18by adding Section 5m as follows:
 
19    (35 ILCS 120/5m new)
20    Sec. 5m. Building materials exemption; electric vehicle
21manufacturer, electric vehicle component parts manufacturer,
22and electric vehicle power supply manufacturer. Each retailer
23who makes a sale of building materials that will be
24incorporated into real estate in an electric vehicle

 

 

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1manufacturing facility, an electric vehicle component parts
2manufacturing facility, or an electric vehicle power supply
3manufacturing facility REV Illinois Project which meets the
4qualifications under paragraphs (1), (2), or (4) of subsection
5(c) of Section 20 of the Reimagining Electric Vehicles in
6Illinois Act for which a certificate of exemption has been
7issued by the Department of Commerce and Economic Opportunity
8under the Reimagining Electric Vehicles in Illinois Act, may
9deduct receipts from such sales when calculating any State or
10local use and occupation taxes. No retailer who is eligible
11for the deduction or credit under Section 5k of this Act
12related to enterprise zones or Section 5l of this Act related
13to High Impact Businesses for a given sale shall be eligible
14for the deduction or credit authorized under this Section for
15that same sale.
16    In addition to any other requirements to document the
17exemption allowed under this Section, the retailer must obtain
18from the purchaser's REV Illinois Building Materials Exemption
19certificate number issued by the Department. A construction
20contractor or other entity shall not make tax-free purchases
21unless it has an active REV Illinois Building Materials
22Exemption Certificate issued by the Department at the time of
23purchase.
24    Upon request from the electric vehicle manufacturer,
25electric vehicle component parts manufacturer, or electric
26vehicle power supply manufacturer certified by the Department

 

 

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1of Commerce and Economic Opportunity under REV Illinois Act,
2the Department shall issue a REV Illinois Building Materials
3Exemption Certificate for each construction contractor or
4other entity identified by the certified electric vehicle
5manufacturer, electric vehicle component parts manufacturer,
6or electric vehicle power supply manufacturer. The Department
7shall make the REV Illinois Building Materials Exemption
8Certificates available to each construction contractor or
9other entity and the certified electric vehicle manufacturer,
10electric vehicle component parts manufacturer, or electric
11vehicle power supply manufacturer. The request for REV
12Illinois Building Materials Exemption Certificates from the
13certified electric vehicle manufacturer, electric vehicle
14component parts manufacturer, or electric vehicle power supply
15manufacturer to the Department must include the following
16information:
17        (1) the name and address of the construction
18    contractor or other entity;
19        (2) the name and location or address of the building
20    project site;
21        (3) the estimated amount of the exemption for each
22    construction contractor or other entity for which a
23    request for a REV Illinois Building Materials Exemption
24    Certificate is made, based on a stated estimated average
25    tax rate and the percentage of the contract that consists
26    of materials;

 

 

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1        (4) the period of time over which supplies for the
2    project are expected to be purchased; and
3        (5) other reasonable information as the Department may
4    require, including but not limited to FEIN numbers, to
5    determine if the contractor or other entity, or any
6    partner, or a corporate officer, and in the case of a
7    limited liability company, any manager or member, of the
8    construction contractor or other entity, is or has been
9    the owner, a partner, a corporate officer, and in the case
10    of a limited liability company, a manager or member, of a
11    person that is in default for moneys due to the Department
12    under this Act or any other tax or fee Act administered by
13    the Department.
14    The Department shall issue the REV Illinois Building
15Materials Exemption Certificates within 3 business days after
16receipt of request from the certified electric vehicle
17manufacturer, electric vehicle component parts manufacturer,
18or electric vehicle power supply manufacturer. This
19requirement does not apply in circumstances where the
20Department, for reasonable cause, is unable to issue the
21Exemption Certificate within 3 business days. The Department
22may refuse to issue a REV Illinois Building Materials
23Exemption Certificate if the owner, any partner, or a
24corporate officer, and in the case of a limited liability
25company, any manager or member, of the construction contractor
26or other entity is or has been the owner, a partner, a

 

 

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1corporate officer, and in the case of a limited liability
2company, a manager or member, of a person that is in default
3for moneys due to the Department under this Act or any other
4tax or fee Act administered by the Department.
5    The REV Illinois Building Materials Exemption Certificate
6shall contain language stating that if the construction
7contractor or other entity who is issued the Exemption
8Certificate makes a tax-exempt purchase, as described in this
9Section, that is not eligible for exemption under this Section
10or allows another person to make a tax-exempt purchase, as
11described in this Section, that is not eligible for exemption
12under this Section, then, in addition to any tax or other
13penalty imposed, the construction contractor or other entity
14is subject to a penalty equal to the tax that would have been
15paid by the retailer under this Act as well as any applicable
16local retailers' occupation tax on the purchase that is not
17eligible for the exemption.
18    The Department, in its discretion, may require that the
19request for REV Illinois Building Materials Exemption
20Certificates be submitted electronically. The Department may,
21in its discretion, issue the Exemption Certificates
22electronically. The REV Illinois Building Materials Exemption
23Certificate number shall be designed in such a way that the
24Department can identify from the unique number on the
25Exemption Certificate issued to a given construction
26contractor or other entity, the name of the designated

 

 

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1electric vehicle manufacturing, electric vehicle component
2parts manufacturing, or electric vehicle power supply
3manufacturing site and the construction contractor or other
4entity to whom the Exemption Certificate is issued. The REV
5Illinois Building Materials Exemption Certificate shall
6contain an expiration date, which shall be no more than 5 years
7after the date of issuance. At the request of the designated
8certified electric vehicle manufacturer, electric vehicle
9component parts manufacturer, or electric vehicle power supply
10manufacturer, the Department may renew a REV Illinois Building
11Materials Exemption Certificate. After the Department issues
12Exemption Certificates for a given designated electric vehicle
13manufacturing, electric vehicle component parts manufacturing,
14or electric vehicle power supply manufacturing site, the
15certified electric vehicle manufacturer, electric vehicle
16component parts manufacturer, or electric vehicle power supply
17manufacturer may notify the Department of additional
18construction contractors or other entities eligible for a REV
19Illinois Building Materials Exemption Certificate. Upon
20notification by the certified electric vehicle manufacturer,
21electric vehicle component parts manufacturer, or electric
22vehicle power supply manufacturer and subject to the other
23provisions of this Section, the Department shall issue a REV
24Illinois Building Materials Exemption Certificate to each
25additional construction contractor or other entity identified
26by the certified electric vehicle manufacturer, electric

 

 

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1vehicle component parts manufacturer, or electric vehicle
2power supply manufacturer. A certified electric vehicle
3manufacturer, electric vehicle component parts manufacturer,
4or electric vehicle power supply manufacturer may notify the
5Department to rescind a REV Illinois Building Materials
6Exemption Certificate previously issued by the Department but
7that has not yet expired. Upon notification by the certified
8electric vehicle manufacturer, electric vehicle component
9parts manufacturer, or electric vehicle power supply
10manufacturer and subject to the other provisions of this
11Section, the Department shall issue the rescission of the REV
12Illinois Building Materials Exemption Certificate to the
13construction contractor or other entity identified by the
14certified electric vehicle manufacturer, electric vehicle
15component parts manufacturer, or electric vehicle power supply
16manufacturer and provide a copy to the certified electric
17vehicle manufacturer, electric vehicle component parts
18manufacturer, or electric vehicle power supply manufacturer.
19    If the Department of Revenue determines that a
20construction contractor or other entity that was issued an
21Exemption Certificate under this Section made a tax-exempt
22purchase, as described in this Section, that was not eligible
23for exemption under this Section or allowed another person to
24make a tax-exempt purchase, as described in this Section, that
25was not eligible for exemption under this Section, then, in
26addition to any tax or other penalty imposed, the construction

 

 

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1contractor or other entity is subject to a penalty equal to the
2tax that would have been paid by the retailer under this Act as
3well as any applicable local retailers' occupation tax on the
4purchase that was not eligible for the exemption.
5    This Section is exempt from the provisions of Section
62-70.
 
7    Section 915. The Property Tax Code is amended by adding
8Section 18-184.15 as follows:
 
9    (35 ILCS 200/18-184.15 new)
10    Sec. 18-184.15. REV Illinois project facilities for
11electric vehicles, electric vehicle component parts, or
12electric vehicle power supply equipment; abatement. Any taxing
13district, upon a majority vote of its governing body, may,
14after determination of the assessed value as set forth in this
15Code, order the clerk of the appropriate municipality or
16county to abate any portion of real property taxes otherwise
17levied or extended by the taxing district on a REV Illinois
18Project facility owned by an electric vehicle manufacturer,
19electric vehicle component parts manufacturer, or an electric
20vehicle power supply manufacturer that is subject to an
21agreement with the Department of Commerce and Economic
22Opportunity under Section 45 of the Reimagining Electric
23Vehicles in Illinois Act, during the period of time such
24agreement is in effect as specified by the Department of

 

 

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1Commerce and Economic Opportunity.
 
2    Section 920. The Telecommunications Excise Tax Act is
3amended by changing Section 2 as follows:
 
4    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
5    Sec. 2. As used in this Article, unless the context
6clearly requires otherwise:
7    (a) "Gross charge" means the amount paid for the act or
8privilege of originating or receiving telecommunications in
9this State and for all services and equipment provided in
10connection therewith by a retailer, valued in money whether
11paid in money or otherwise, including cash, credits, services
12and property of every kind or nature, and shall be determined
13without any deduction on account of the cost of such
14telecommunications, the cost of materials used, labor or
15service costs or any other expense whatsoever. In case credit
16is extended, the amount thereof shall be included only as and
17when paid. "Gross charges" for private line service shall
18include charges imposed at each channel termination point
19within this State, charges for the channel mileage between
20each channel termination point within this State, and charges
21for that portion of the interstate inter-office channel
22provided within Illinois. Charges for that portion of the
23interstate inter-office channel provided in Illinois shall be
24determined by the retailer as follows: (i) for interstate

 

 

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1inter-office channels having 2 channel termination points,
2only one of which is in Illinois, 50% of the total charge
3imposed; or (ii) for interstate inter-office channels having
4more than 2 channel termination points, one or more of which
5are in Illinois, an amount equal to the total charge
6multiplied by a fraction, the numerator of which is the number
7of channel termination points within Illinois and the
8denominator of which is the total number of channel
9termination points. Prior to January 1, 2004, any method
10consistent with this paragraph or other method that reasonably
11apportions the total charges for interstate inter-office
12channels among the states in which channel terminations points
13are located shall be accepted as a reasonable method to
14determine the charges for that portion of the interstate
15inter-office channel provided within Illinois for that period.
16However, "gross charges" shall not include any of the
17following:
18        (1) Any amounts added to a purchaser's bill because of
19    a charge made pursuant to (i) the tax imposed by this
20    Article; (ii) charges added to customers' bills pursuant
21    to the provisions of Sections 9-221 or 9-222 of the Public
22    Utilities Act, as amended, or any similar charges added to
23    customers' bills by retailers who are not subject to rate
24    regulation by the Illinois Commerce Commission for the
25    purpose of recovering any of the tax liabilities or other
26    amounts specified in such provisions of such Act; (iii)

 

 

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1    the tax imposed by Section 4251 of the Internal Revenue
2    Code; (iv) 911 surcharges; or (v) the tax imposed by the
3    Simplified Municipal Telecommunications Tax Act.
4        (2) Charges for a sent collect telecommunication
5    received outside of the State.
6        (3) Charges for leased time on equipment or charges
7    for the storage of data or information for subsequent
8    retrieval or the processing of data or information
9    intended to change its form or content. Such equipment
10    includes, but is not limited to, the use of calculators,
11    computers, data processing equipment, tabulating equipment
12    or accounting equipment and also includes the usage of
13    computers under a time-sharing agreement.
14        (4) Charges for customer equipment, including such
15    equipment that is leased or rented by the customer from
16    any source, wherein such charges are disaggregated and
17    separately identified from other charges.
18        (5) Charges to business enterprises certified under
19    Section 9-222.1 of the Public Utilities Act, as amended,
20    or to electric vehicle manufacturers, electric vehicle
21    component parts manufacturers, or electric vehicle power
22    supply manufacturers at REV Illinois Project sites for
23    which a certificate of exemption has been issued by the
24    Department of Commerce and Economic Opportunity under
25    Section 95 of the Reimagining Electric Vehicles in
26    Illinois Act, to the extent of such exemption and during

 

 

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1    the period of time specified by the Department of Commerce
2    and Economic Opportunity.
3        (6) Charges for telecommunications and all services
4    and equipment provided in connection therewith between a
5    parent corporation and its wholly owned subsidiaries or
6    between wholly owned subsidiaries when the tax imposed
7    under this Article has already been paid to a retailer and
8    only to the extent that the charges between the parent
9    corporation and wholly owned subsidiaries or between
10    wholly owned subsidiaries represent expense allocation
11    between the corporations and not the generation of profit
12    for the corporation rendering such service.
13        (7) Bad debts. Bad debt means any portion of a debt
14    that is related to a sale at retail for which gross charges
15    are not otherwise deductible or excludable that has become
16    worthless or uncollectable, as determined under applicable
17    federal income tax standards. If the portion of the debt
18    deemed to be bad is subsequently paid, the retailer shall
19    report and pay the tax on that portion during the
20    reporting period in which the payment is made.
21        (8) Charges paid by inserting coins in coin-operated
22    telecommunication devices.
23        (9) Amounts paid by telecommunications retailers under
24    the Telecommunications Municipal Infrastructure
25    Maintenance Fee Act.
26        (10) Charges for nontaxable services or

 

 

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1    telecommunications if (i) those charges are aggregated
2    with other charges for telecommunications that are
3    taxable, (ii) those charges are not separately stated on
4    the customer bill or invoice, and (iii) the retailer can
5    reasonably identify the nontaxable charges on the
6    retailer's books and records kept in the regular course of
7    business. If the nontaxable charges cannot reasonably be
8    identified, the gross charge from the sale of both taxable
9    and nontaxable services or telecommunications billed on a
10    combined basis shall be attributed to the taxable services
11    or telecommunications. The burden of proving nontaxable
12    charges shall be on the retailer of the
13    telecommunications.
14    (b) "Amount paid" means the amount charged to the
15taxpayer's service address in this State regardless of where
16such amount is billed or paid.
17    (c) "Telecommunications", in addition to the meaning
18ordinarily and popularly ascribed to it, includes, without
19limitation, messages or information transmitted through use of
20local, toll and wide area telephone service; private line
21services; channel services; telegraph services;
22teletypewriter; computer exchange services; cellular mobile
23telecommunications service; specialized mobile radio;
24stationary two way radio; paging service; or any other form of
25mobile and portable one-way or two-way communications; or any
26other transmission of messages or information by electronic or

 

 

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1similar means, between or among points by wire, cable,
2fiber-optics, laser, microwave, radio, satellite or similar
3facilities. As used in this Act, "private line" means a
4dedicated non-traffic sensitive service for a single customer,
5that entitles the customer to exclusive or priority use of a
6communications channel or group of channels, from one or more
7specified locations to one or more other specified locations.
8The definition of "telecommunications" shall not include value
9added services in which computer processing applications are
10used to act on the form, content, code and protocol of the
11information for purposes other than transmission.
12"Telecommunications" shall not include purchases of
13telecommunications by a telecommunications service provider
14for use as a component part of the service provided by him to
15the ultimate retail consumer who originates or terminates the
16taxable end-to-end communications. Carrier access charges,
17right of access charges, charges for use of inter-company
18facilities, and all telecommunications resold in the
19subsequent provision of, used as a component of, or integrated
20into end-to-end telecommunications service shall be
21non-taxable as sales for resale.
22    (d) "Interstate telecommunications" means all
23telecommunications that either originate or terminate outside
24this State.
25    (e) "Intrastate telecommunications" means all
26telecommunications that originate and terminate within this

 

 

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1State.
2    (f) "Department" means the Department of Revenue of the
3State of Illinois.
4    (g) "Director" means the Director of Revenue for the
5Department of Revenue of the State of Illinois.
6    (h) "Taxpayer" means a person who individually or through
7his agents, employees or permittees engages in the act or
8privilege of originating or receiving telecommunications in
9this State and who incurs a tax liability under this Article.
10    (i) "Person" means any natural individual, firm, trust,
11estate, partnership, association, joint stock company, joint
12venture, corporation, limited liability company, or a
13receiver, trustee, guardian or other representative appointed
14by order of any court, the Federal and State governments,
15including State universities created by statute or any city,
16town, county or other political subdivision of this State.
17    (j) "Purchase at retail" means the acquisition,
18consumption or use of telecommunication through a sale at
19retail.
20    (k) "Sale at retail" means the transmitting, supplying or
21furnishing of telecommunications and all services and
22equipment provided in connection therewith for a consideration
23to persons other than the Federal and State governments, and
24State universities created by statute and other than between a
25parent corporation and its wholly owned subsidiaries or
26between wholly owned subsidiaries for their use or consumption

 

 

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1and not for resale.
2    (l) "Retailer" means and includes every person engaged in
3the business of making sales at retail as defined in this
4Article. The Department may, in its discretion, upon
5application, authorize the collection of the tax hereby
6imposed by any retailer not maintaining a place of business
7within this State, who, to the satisfaction of the Department,
8furnishes adequate security to insure collection and payment
9of the tax. Such retailer shall be issued, without charge, a
10permit to collect such tax. When so authorized, it shall be the
11duty of such retailer to collect the tax upon all of the gross
12charges for telecommunications in this State in the same
13manner and subject to the same requirements as a retailer
14maintaining a place of business within this State. The permit
15may be revoked by the Department at its discretion.
16    (m) "Retailer maintaining a place of business in this
17State", or any like term, means and includes any retailer
18having or maintaining within this State, directly or by a
19subsidiary, an office, distribution facilities, transmission
20facilities, sales office, warehouse or other place of
21business, or any agent or other representative operating
22within this State under the authority of the retailer or its
23subsidiary, irrespective of whether such place of business or
24agent or other representative is located here permanently or
25temporarily, or whether such retailer or subsidiary is
26licensed to do business in this State.

 

 

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1    (n) "Service address" means the location of
2telecommunications equipment from which the telecommunications
3services are originated or at which telecommunications
4services are received by a taxpayer. In the event this may not
5be a defined location, as in the case of mobile phones, paging
6systems, maritime systems, service address means the
7customer's place of primary use as defined in the Mobile
8Telecommunications Sourcing Conformity Act. For air-to-ground
9systems and the like, service address shall mean the location
10of a taxpayer's primary use of the telecommunications
11equipment as defined by telephone number, authorization code,
12or location in Illinois where bills are sent.
13    (o) "Prepaid telephone calling arrangements" mean the
14right to exclusively purchase telephone or telecommunications
15services that must be paid for in advance and enable the
16origination of one or more intrastate, interstate, or
17international telephone calls or other telecommunications
18using an access number, an authorization code, or both,
19whether manually or electronically dialed, for which payment
20to a retailer must be made in advance, provided that, unless
21recharged, no further service is provided once that prepaid
22amount of service has been consumed. Prepaid telephone calling
23arrangements include the recharge of a prepaid calling
24arrangement. For purposes of this subsection, "recharge" means
25the purchase of additional prepaid telephone or
26telecommunications services whether or not the purchaser

 

 

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1acquires a different access number or authorization code.
2"Prepaid telephone calling arrangement" does not include an
3arrangement whereby a customer purchases a payment card and
4pursuant to which the service provider reflects the amount of
5such purchase as a credit on an invoice issued to that customer
6under an existing subscription plan.
7(Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
 
8    Section 925. The Electricity Excise Tax Law is amended by
9changing Section 2-4 as follows:
 
10    (35 ILCS 640/2-4)
11    Sec. 2-4. Tax imposed.
12    (a) Except as provided in subsection (b), a tax is imposed
13on the privilege of using in this State electricity purchased
14for use or consumption and not for resale, other than by
15municipal corporations owning and operating a local
16transportation system for public service, at the following
17rates per kilowatt-hour delivered to the purchaser:
18        (i) For the first 2000 kilowatt-hours used or consumed
19    in a month: 0.330 cents per kilowatt-hour;
20        (ii) For the next 48,000 kilowatt-hours used or
21    consumed in a month: 0.319 cents per kilowatt-hour;
22        (iii) For the next 50,000 kilowatt-hours used or
23    consumed in a month: 0.303 cents per kilowatt-hour;
24        (iv) For the next 400,000 kilowatt-hours used or

 

 

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1    consumed in a month: 0.297 cents per kilowatt-hour;
2        (v) For the next 500,000 kilowatt-hours used or
3    consumed in a month: 0.286 cents per kilowatt-hour;
4        (vi) For the next 2,000,000 kilowatt-hours used or
5    consumed in a month: 0.270 cents per kilowatt-hour;
6        (vii) For the next 2,000,000 kilowatt-hours used or
7    consumed in a month: 0.254 cents per kilowatt-hour;
8        (viii) For the next 5,000,000 kilowatt-hours used or
9    consumed in a month: 0.233 cents per kilowatt-hour;
10        (ix) For the next 10,000,000 kilowatt-hours used or
11    consumed in a month: 0.207 cents per kilowatt-hour;
12        (x) For all electricity in excess of 20,000,000
13    kilowatt-hours used or consumed in a month: 0.202 cents
14    per kilowatt-hour.
15    Provided, that in lieu of the foregoing rates, the tax is
16imposed on a self-assessing purchaser at the rate of 5.1% of
17the self-assessing purchaser's purchase price for all
18electricity distributed, supplied, furnished, sold,
19transmitted and delivered to the self-assessing purchaser in a
20month.
21    (b) A tax is imposed on the privilege of using in this
22State electricity purchased from a municipal system or
23electric cooperative, as defined in Article XVII of the Public
24Utilities Act, which has not made an election as permitted by
25either Section 17-200 or Section 17-300 of such Act, at the
26lesser of 0.32 cents per kilowatt hour of all electricity

 

 

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1distributed, supplied, furnished, sold, transmitted, and
2delivered by such municipal system or electric cooperative to
3the purchaser or 5% of each such purchaser's purchase price
4for all electricity distributed, supplied, furnished, sold,
5transmitted, and delivered by such municipal system or
6electric cooperative to the purchaser, whichever is the lower
7rate as applied to each purchaser in each billing period.
8    (c) The tax imposed by this Section 2-4 is not imposed with
9respect to any use of electricity by business enterprises
10certified under Section 9-222.1 or 9-222.1A of the Public
11Utilities Act, as amended, to the extent of such exemption and
12during the time specified by the Department of Commerce and
13Economic Opportunity; or with respect to any transaction in
14interstate commerce, or otherwise, to the extent to which such
15transaction may not, under the Constitution and statutes of
16the United States, be made the subject of taxation by this
17State.
18    (d) The tax imposed by this Section 2-4 is not imposed with
19respect to any use of electricity at a REV Illinois Project
20site that has received a certification for tax exemption from
21the Department of Commerce and Economic Opportunity pursuant
22to Section 95 of the Reimagining Electric Vehicles in Illinois
23Act, to the extent of such exemption, which shall be no more
24than 10 years.
25(Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

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1    Section 930. The Public Utilities Act is amended by
2changing Section 9-222 as follows:
 
3    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
4    Sec. 9-222. Whenever a tax is imposed upon a public
5utility engaged in the business of distributing, supplying,
6furnishing, or selling gas for use or consumption pursuant to
7Section 2 of the Gas Revenue Tax Act, or whenever a tax is
8required to be collected by a delivering supplier pursuant to
9Section 2-7 of the Electricity Excise Tax Act, or whenever a
10tax is imposed upon a public utility pursuant to Section 2-202
11of this Act, such utility may charge its customers, other than
12customers who are high impact businesses under Section 5.5 of
13the Illinois Enterprise Zone Act, electric vehicle
14manufacturers, electric vehicle component parts manufacturers,
15or electric vehicle power supply equipment manufacturers at
16REV Illinois Project sites as certified under Section 95 of
17the Reimagining Electric Vehicles in Illinois Act, or
18certified business enterprises under Section 9-222.1 of this
19Act, to the extent of such exemption and during the period in
20which such exemption is in effect, in addition to any rate
21authorized by this Act, an additional charge equal to the
22total amount of such taxes. The exemption of this Section
23relating to high impact businesses shall be subject to the
24provisions of subsections (a), (b), and (b-5) of Section 5.5
25of the Illinois Enterprise Zone Act. This requirement shall

 

 

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1not apply to taxes on invested capital imposed pursuant to the
2Messages Tax Act, the Gas Revenue Tax Act and the Public
3Utilities Revenue Act. Such utility shall file with the
4Commission a supplemental schedule which shall specify such
5additional charge and which shall become effective upon filing
6without further notice. Such additional charge shall be shown
7separately on the utility bill to each customer. The
8Commission shall have the power to investigate whether or not
9such supplemental schedule correctly specifies such additional
10charge, but shall have no power to suspend such supplemental
11schedule. If the Commission finds, after a hearing, that such
12supplemental schedule does not correctly specify such
13additional charge, it shall by order require a refund to the
14appropriate customers of the excess, if any, with interest, in
15such manner as it shall deem just and reasonable, and in and by
16such order shall require the utility to file an amended
17supplemental schedule corresponding to the finding and order
18of the Commission. Except with respect to taxes imposed on
19invested capital, such tax liabilities shall be recovered from
20customers solely by means of the additional charges authorized
21by this Section.
22(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
 
23    Section 935. The Environmental Protection Act is amended
24by adding Section 52.10 as follows:
 

 

 

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1    (415 ILCS 5/52.10 new)
2    Sec. 52.10. Electric Vehicle Permitting Task Force.
3    (a) The Electric Vehicle Permitting Task Force is hereby
4created within the Environmental Protection Agency.
5    (b) The Task Force shall consist of the following members,
6which shall represent the diversity of the people of Illinois:
7        (1) The Director of the Environmental Protection
8    Agency or his or her designee;
9        (2) The Director of Natural Resources or his or her
10    designee;
11        (3) The Secretary of Transportation or their designee;
12        (4) 8 members appointed by the Governor as follows:
13            (A) one member of a statewide organization
14        representing manufacturers;
15            (B) one member of a statewide organization
16        representing business interests;
17            (C) one member representing an environmental
18        justice organization;
19            (D) one member representing a statewide
20        environmental advocacy organization;
21            (E) one member representing the electric vehicle
22        industry;
23            (F) one member representing the waste management
24        industry;
25            (G) one member of a statewide organization
26        representing agricultural interests; and

 

 

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1            (H) one member representing a labor organization.
2    (c) The duties and responsibilities of the Task Force
3include the following:
4        (1) identify existing and potential challenges faced
5    by the electric vehicle industry with respect to the
6    process for obtaining necessary permits from the
7    Environmental Protection Agency, the Department of Natural
8    Resources, and the Department of Transportation, and
9    potential solutions;
10        (2) conduct an assessment of State permitting fees,
11    including those necessary for electric vehicle investment
12    in Illinois, and the revenue generated by those fees;
13        (3) assess the permitting needs of the electric
14    vehicle industry, including electric vehicle
15    manufacturers, electric vehicle power supply equipment
16    manufacturers, and electric vehicle component parts
17    manufacturers;
18        (4) recommend changes to expedite permitting processes
19    to support the rapid growth of the electric vehicle
20    industry in Illinois, including support for electric
21    vehicle businesses locating or relocating in Illinois;
22        (5) analyze anticipated staffing needs across State
23    agencies to support expedited permitting efforts;
24        (6) recommend adjustments to the fee structure for
25    state permits, including those permits necessary for
26    electric vehicle investment in Illinois, that will support

 

 

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1    increased staffing at state agencies;
2        (7) Consider the impact of State and local permitting
3    issues on electric vehicle charging station deployments,
4    and make recommendations on best practices to streamline
5    permitting related to electric vehicle charging stations;
6    and
7        (8) recommend legislative and regulatory actions that
8    are necessary to support changes to permitting processes.
9    (d) The Task Force shall not consider or recommend changes
10to environmental permitting standards outside of the scope of
11the duties and responsibilities outlined in subsection (c).
12    (e) Appointments for the Task Force shall be made no later
13than December 15, 2021. The Task Force shall issue a final
14report based upon its findings and recommendations and submit
15the report to the Governor and the General Assembly no later
16than March 1, 2022.
17    (f) Members of the Task Force shall serve without
18compensation. The Environmental Protection Agency shall
19provide administrative support to the Task Force.
20    (g) The Task Force shall be dissolved upon the filing of
21its report.
22    (h) This Section is repealed on December 31, 2022.
 
23    Section 940. The Motor Vehicle Franchise Act is amended by
24changing Section 6 as follows:
 

 

 

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1    (815 ILCS 710/6)  (from Ch. 121 1/2, par. 756)
2    (Text of Section before amendment by P.A. 102-232)
3    Sec. 6. Warranty agreements; claims; approval; payment;
4written disapproval.
5    (a) Every manufacturer, distributor, wholesaler,
6distributor branch or division, factory branch or division, or
7wholesale branch or division shall properly fulfill any
8warranty agreement and adequately and fairly compensate each
9of its motor vehicle dealers for labor and parts.
10    (b) In no event shall such compensation fail to include
11reasonable compensation for diagnostic work, as well as repair
12service, labor, and parts. Time allowances for the diagnosis
13and performance of warranty work and service shall be
14reasonable and adequate for the work to be performed. In the
15determination of what constitutes reasonable compensation
16under this Section, the principal factor to be given
17consideration shall be the prevailing wage rates being paid by
18the dealer in the relevant market area in which the motor
19vehicle dealer is doing business, and in no event shall such
20compensation of a motor vehicle dealer for warranty service be
21less than the rates charged by such dealer for like service to
22retail customers for nonwarranty service and repairs. The
23franchiser shall reimburse the franchisee for any parts
24provided in satisfaction of a warranty at the prevailing
25retail price charged by that dealer for the same parts when not
26provided in satisfaction of a warranty; provided that such

 

 

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1motor vehicle franchisee's prevailing retail price is not
2unreasonable when compared with that of the holders of motor
3vehicle franchises from the same motor vehicle franchiser for
4identical merchandise in the geographic area in which the
5motor vehicle franchisee is engaged in business. All claims,
6either original or resubmitted, made by motor vehicle dealers
7hereunder and under Section 5 for such labor and parts shall be
8either approved or disapproved within 30 days following their
9submission. All approved claims shall be paid within 30 days
10following their approval. The motor vehicle dealer who submits
11a claim which is disapproved shall be notified in writing of
12the disapproval within the same period, and each such notice
13shall state the specific grounds upon which the disapproval is
14based. The motor vehicle dealer shall be permitted to correct
15and resubmit such disapproved claims within 30 days of receipt
16of disapproval. Any claims not specifically disapproved in
17writing within 30 days from their submission shall be deemed
18approved and payment shall follow within 30 days. The
19manufacturer or franchiser shall have the right to require
20reasonable documentation for claims and to audit such claims
21within a one year period from the date the claim was paid or
22credit issued by the manufacturer or franchiser, and to charge
23back any false or unsubstantiated claims. The audit and charge
24back provisions of this Section also apply to all other
25incentive and reimbursement programs for a period of one year
26after the date the claim was paid or credit issued by the

 

 

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1manufacturer or franchiser. However, the manufacturer retains
2the right to charge back any fraudulent claim if the
3manufacturer establishes in a court of competent jurisdiction
4in this State that the claim is fraudulent.
5    (c) The motor vehicle franchiser shall not, by agreement,
6by restrictions upon reimbursement, or otherwise, restrict the
7nature and extent of services to be rendered or parts to be
8provided so that such restriction prevents the motor vehicle
9franchisee from satisfying the warranty by rendering services
10in a good and workmanlike manner and providing parts which are
11required in accordance with generally accepted standards. Any
12such restriction shall constitute a prohibited practice.
13    (d) For the purposes of this Section, the "prevailing
14retail price charged by that dealer for the same parts" means
15the price paid by the motor vehicle franchisee for parts,
16including all shipping and other charges, multiplied by the
17sum of 1.0 and the franchisee's average percentage markup over
18the price paid by the motor vehicle franchisee for parts
19purchased by the motor vehicle franchisee from the motor
20vehicle franchiser and sold at retail. The motor vehicle
21franchisee may establish average percentage markup under this
22Section by submitting to the motor vehicle franchiser 100
23sequential customer paid service repair orders or 90 days of
24customer paid service repair orders, whichever is less,
25covering repairs made no more than 180 days before the
26submission, and declaring what the average percentage markup

 

 

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1is. The average percentage markup so declared shall go into
2effect 30 days following the declaration, subject to audit of
3the submitted repair orders by the motor vehicle franchiser
4and adjustment of the average percentage markup based on that
5audit. Any audit must be conducted within 30 days following
6the declaration. Only retail sales not involving warranty
7repairs, parts covered by subsection (e) of this Section, or
8parts supplied for routine vehicle maintenance, shall be
9considered in calculating average percentage markup. No motor
10vehicle franchiser shall require a motor vehicle franchisee to
11establish average percentage markup by a methodology, or by
12requiring information, that is unduly burdensome or time
13consuming to provide, including, but not limited to, part by
14part or transaction by transaction calculations. A motor
15vehicle franchisee shall not request a change in the average
16percentage markup more than twice in one calendar year.
17    (e) If a motor vehicle franchiser supplies a part or parts
18for use in a repair rendered under a warranty other than by
19sale of that part or parts to the motor vehicle franchisee, the
20motor vehicle franchisee shall be entitled to compensation
21equivalent to the motor vehicle franchisee's average
22percentage markup on the part or parts, as if the part or parts
23had been sold to the motor vehicle franchisee by the motor
24vehicle franchiser. The requirements of this subsection (e)
25shall not apply to entire engine assemblies and entire
26transmission assemblies. In the case of those assemblies, the

 

 

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1motor vehicle franchiser shall reimburse the motor vehicle
2franchisee in the amount of 30% of what the motor vehicle
3franchisee would have paid the motor vehicle franchiser for
4the assembly if the assembly had not been supplied by the
5franchiser other than by the sale of that assembly to the motor
6vehicle franchisee.
7    (f) The obligations imposed on motor vehicle franchisers
8by this Section shall apply to any parent, subsidiary,
9affiliate, or agent of the motor vehicle franchiser, any
10person under common ownership or control, any employee of the
11motor vehicle franchiser, and any person holding 1% or more of
12the shares of any class of securities or other ownership
13interest in the motor vehicle franchiser, if a warranty or
14service or repair plan is issued by that person instead of or
15in addition to one issued by the motor vehicle franchiser.
16    (g) (1) Any motor vehicle franchiser and at least a
17majority of its Illinois franchisees of the same line make may
18agree in an express written contract citing this Section upon
19a uniform warranty reimbursement policy used by contracting
20franchisees to perform warranty repairs. The policy shall only
21involve either reimbursement for parts used in warranty
22repairs or the use of a Uniform Time Standards Manual, or both.
23Reimbursement for parts under the agreement shall be used
24instead of the franchisees' "prevailing retail price charged
25by that dealer for the same parts" as defined in this Section
26to calculate compensation due from the franchiser for parts

 

 

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1used in warranty repairs. This Section does not authorize a
2franchiser and its Illinois franchisees to establish a uniform
3hourly labor reimbursement.
4    Each franchiser shall only have one such agreement with
5each line make. Any such agreement shall:
6        (A) Establish a uniform parts reimbursement rate. The
7    uniform parts reimbursement rate shall be greater than the
8    franchiser's nationally established parts reimbursement
9    rate in effect at the time the first such agreement
10    becomes effective; however, any subsequent agreement shall
11    result in a uniform reimbursement rate that is greater or
12    equal to the rate set forth in the immediately prior
13    agreement.
14        (B) Apply to all warranty repair orders written during
15    the period that the agreement is effective.
16        (C) Be available, during the period it is effective,
17    to any motor vehicle franchisee of the same line make at
18    any time and on the same terms.
19        (D) Be for a term not to exceed 3 years so long as any
20    party to the agreement may terminate the agreement upon
21    the annual anniversary of the agreement and with 30 days'
22    prior written notice; however, the agreement shall remain
23    in effect for the term of the agreement regardless of the
24    number of dealers of the same line make that may terminate
25    the agreement.
26    (2) A franchiser that enters into an agreement with its

 

 

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1franchisees pursuant to paragraph (1) of this subsection (g)
2may seek to recover its costs from only those franchisees that
3are receiving their "prevailing retail price charged by that
4dealer" under subsections (a) through (f) of this Section,
5subject to the following requirements:
6        (A) "costs" means the difference between the uniform
7    reimbursement rate set forth in an agreement entered into
8    pursuant to paragraph (1) of this subsection (g) and the
9    "prevailing retail price charged by that dealer" received
10    by those franchisees of the same line make. "Costs" do not
11    include the following: legal fees or expenses;
12    administrative expenses; a profit mark-up; or any other
13    item;
14        (B) the costs shall be recovered only by increasing
15    the invoice price on new vehicles received by those
16    franchisees; and
17        (C) price increases imposed for the purpose of
18    recovering costs imposed by this Section may vary from
19    time to time and from model to model, but shall apply
20    uniformly to all franchisees of the same line make in the
21    State of Illinois that have requested reimbursement for
22    warranty repairs at their "prevailing retail price charged
23    by that dealer", except that a franchiser may make an
24    exception for vehicles that are titled in the name of a
25    consumer in another state.
26    (3) If a franchiser contracts with its Illinois dealers

 

 

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1pursuant to paragraph (1) of this subsection (g), the
2franchiser shall certify under oath to the Motor Vehicle
3Review Board that a majority of the franchisees of that line
4make did agree to such an agreement and file a sample copy of
5the agreement. On an annual basis, each franchiser shall
6certify under oath to the Motor Vehicle Review Board that the
7reimbursement costs it recovers under paragraph (2) of this
8subsection (g) do not exceed the amounts authorized by
9paragraph (2) of this subsection (g). The franchiser shall
10maintain for a period of 3 years a file that contains the
11information upon which its certification is based.
12    (3.1) A franchiser subject to subdivision (g)(2) of this
13Section, upon request of a dealer subject to that subdivision,
14shall disclose to the dealer, in writing or in person if
15requested by the dealer, the method by which the franchiser
16calculated the amount of the costs to be reimbursed by the
17dealer. The franchiser shall also provide aggregate data
18showing (i) the total costs the franchiser incurred and (ii)
19the total number of new vehicles invoiced to each dealer that
20received the "prevailing retail price charged by that dealer"
21during the relevant period of time. In responding to a
22dealer's request under this subdivision (g)(3.1), a franchiser
23may not disclose any confidential or competitive information
24regarding any other dealer. Any dealer who receives
25information from a franchiser under this subdivision (g)(3.1)
26may not disclose that information to any third party unless

 

 

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1the disclosure occurs in the course of a lawful proceeding
2before, or upon the order of, the Motor Vehicle Review Board or
3a court of competent jurisdiction.
4    (4) If a franchiser and its franchisees do not enter into
5an agreement pursuant to paragraph (1) of this subsection (g),
6and for any matter that is not the subject of an agreement,
7this subsection (g) shall have no effect whatsoever.
8    (5) For purposes of this subsection (g), a Uniform Time
9Standard Manual is a document created by a franchiser that
10establishes the time allowances for the diagnosis and
11performance of warranty work and service. The allowances shall
12be reasonable and adequate for the work and service to be
13performed. Each franchiser shall have a reasonable and fair
14process that allows a franchisee to request a modification or
15adjustment of a standard or standards included in such a
16manual.
17    (6) A franchiser may not take any adverse action against a
18franchisee for not having executed an agreement contemplated
19by this subsection (g) or for receiving the "prevailing retail
20price charged by that dealer". Nothing in this subsection
21shall be construed to prevent a franchiser from making a
22determination of a franchisee's "prevailing retail price
23charged by that dealer", as provided by this Section.
24(Source: P.A. 96-11, eff. 5-22-09.)
 
25    (Text of Section after amendment by P.A. 102-232)

 

 

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1    Sec. 6. Warranty agreements; claims; approval; payment;
2written disapproval.
3    (a) Every manufacturer, distributor, wholesaler,
4distributor branch or division, factory branch or division, or
5wholesale branch or division shall properly fulfill any
6warranty agreement and adequately and fairly compensate each
7of its motor vehicle dealers for labor and parts.
8    (b) Adequate and fair compensation requires the
9manufacturer to pay each dealer no less than the amount the
10retail customer pays for the same services with regard to rate
11and time.
12    Any time guide previously agreed to by the manufacturer
13and the dealer for extended warranty repairs may be used in
14lieu of actual time expended. In the event that a time guide
15has not been agreed to for warranty repairs, or said time guide
16does not define time for an applicable warranty repair, the
17manufacturer's time guide shall be used, multiplied by 1.5.
18    In no event shall such compensation fail to include full
19compensation for diagnostic work, as well as repair service,
20labor, and parts. Time allowances for the diagnosis and
21performance of warranty work and service shall be no less than
22charged to retail customers for the same work to be performed.
23    No warranty or factory compensated repairs shall be
24excluded from this requirement, including recalls or other
25voluntary stop-sell repairs required by the manufacturer. If a
26manufacturer is required to issue a recall, the dealer will be

 

 

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1compensated for labor time as above stated.
2    Furthermore, manufacturers shall pay the dealer the same
3effective labor rate (using the 100 sequential repair orders
4chosen and submitted by the dealer less simple maintenance
5repair orders) that the dealer receives for customer-pay
6repairs. This requirement includes vehicle diagnostic times
7for all warranty repairs. Additionally, if a technician is
8required to communicate with a Technical Assistance
9Center/Engineering/or some external manufacturer source in
10order to provide a warranty repair, the manufacturer shall pay
11for the time from start of communications (including hold
12time) until the communication is complete.
13    The dealer may submit a request to the manufacturer for
14warranty labor rate increases a maximum of once per calendar
15year.
16    A claim made by a franchised motor vehicle dealer for
17compensation under this Section shall be either approved or
18disapproved within 30 days after the claim is submitted to the
19manufacturer in the manner and on the forms the manufacturer
20reasonably prescribes. An approved claim shall be paid within
2130 days after its approval. If a claim is not specifically
22disapproved in writing or by electronic transmission within 30
23days after the date on which the manufacturer receives it, the
24claim shall be considered to be approved and payment shall
25follow within 30 days.
26    In no event shall compensation to a motor vehicle dealer

 

 

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1for labor times and labor rates be less than the rates charged
2by such dealer for like service to retail customers for
3nonwarranty service and repairs. Additionally, the
4manufacturer shall reimburse the dealer for any parts provided
5in satisfaction of a warranty at the prevailing retail price
6charged by that dealer for the same parts when not provided in
7satisfaction of a warranty; provided that such dealer's
8prevailing retail price is not unreasonable when compared with
9that of the holders of motor vehicle franchises from the same
10manufacturer for identical parts in the geographic area in
11which the dealer is engaged in business. Additionally, the
12manufacturer shall reimburse the dealer for any parts provided
13in satisfaction of a warranty at the prevailing retail price
14charged by that dealer for the same parts when sold to a retail
15customer.
16    There shall be no reduction in payments due to
17preestablished market norms or market averages. Manufacturers
18are prohibited from establishing restrictions or limitations
19of customer repair frequency due to failure rate indexes or
20national failure averages.
21    No debit reduction or charge back of any item on a warranty
22repair order may be made absent a finding of fraud or illegal
23actions by the dealer.
24    A warranty claim timely made shall not be deemed invalid
25solely because unavailable parts cause additional use and
26mileage on the vehicle.

 

 

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1    If a manufacturer imposes a recall or stop sale on any new
2vehicle in a dealer's inventory that prevents the sale of the
3vehicle, the manufacturer shall compensate the dealer for any
4interest and storage until the vehicle is repaired and made
5ready for sale.
6    Manufacturers are not permitted to impose any form of cost
7recovery fees or surcharges against a franchised auto
8dealership for payments made in accordance with this Section.
9    All claims, either original or resubmitted, made by motor
10vehicle dealers hereunder and under Section 5 for such labor
11and parts shall be either approved or disapproved within 30
12days following their submission. All approved claims shall be
13paid within 30 days following their approval. The motor
14vehicle dealer who submits a claim which is disapproved shall
15be notified in writing of the disapproval within the same
16period, and each such notice shall state the specific grounds
17upon which the disapproval is based. The motor vehicle dealer
18shall be permitted to correct and resubmit such disapproved
19claims within 30 days of receipt of disapproval. Any claims
20not specifically disapproved in writing within 30 days from
21their submission shall be deemed approved and payment shall
22follow within 30 days. The manufacturer or franchiser shall
23have the right to require reasonable documentation for claims
24and to audit such claims within a one year period from the date
25the claim was paid or credit issued by the manufacturer or
26franchiser, and to charge back any false or unsubstantiated

 

 

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1claims. The audit and charge back provisions of this Section
2also apply to all other incentive and reimbursement programs
3for a period of one year after the date the claim was paid or
4credit issued by the manufacturer or franchiser. However, the
5manufacturer retains the right to charge back any fraudulent
6claim if the manufacturer establishes in a court of competent
7jurisdiction in this State that the claim is fraudulent.
8    (c) The motor vehicle franchiser shall not, by agreement,
9by restrictions upon reimbursement, or otherwise, restrict the
10nature and extent of services to be rendered or parts to be
11provided so that such restriction prevents the motor vehicle
12franchisee from satisfying the warranty by rendering services
13in a good and workmanlike manner and providing parts which are
14required in accordance with generally accepted standards. Any
15such restriction shall constitute a prohibited practice.
16    (d) For the purposes of this Section, the "prevailing
17retail price charged by that dealer for the same parts" means
18the price paid by the motor vehicle franchisee for parts,
19including all shipping and other charges, multiplied by the
20sum of 1.0 and the franchisee's average percentage markup over
21the price paid by the motor vehicle franchisee for parts
22purchased by the motor vehicle franchisee from the motor
23vehicle franchiser and sold at retail. The motor vehicle
24franchisee may establish average percentage markup under this
25Section by submitting to the motor vehicle franchiser 100
26sequential customer paid service repair orders or 90 days of

 

 

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1customer paid service repair orders, whichever is less,
2covering repairs made no more than 180 days before the
3submission, and declaring what the average percentage markup
4is. The average percentage markup so declared shall go into
5effect 30 days following the declaration, subject to audit of
6the submitted repair orders by the motor vehicle franchiser
7and adjustment of the average percentage markup based on that
8audit. Any audit must be conducted within 30 days following
9the declaration. Only retail sales not involving warranty
10repairs, parts covered by subsection (e) of this Section, or
11parts supplied for routine vehicle maintenance, shall be
12considered in calculating average percentage markup. No motor
13vehicle franchiser shall require a motor vehicle franchisee to
14establish average percentage markup by a methodology, or by
15requiring information, that is unduly burdensome or time
16consuming to provide, including, but not limited to, part by
17part or transaction by transaction calculations. A motor
18vehicle franchisee shall not request a change in the average
19percentage markup more than twice in one calendar year.
20    (e) If a motor vehicle franchiser supplies a part or parts
21for use in a repair rendered under a warranty other than by
22sale of that part or parts to the motor vehicle franchisee, the
23motor vehicle franchisee shall be entitled to compensation
24equivalent to the motor vehicle franchisee's average
25percentage markup on the part or parts, as if the part or parts
26had been sold to the motor vehicle franchisee by the motor

 

 

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1vehicle franchiser. The requirements of this subsection (e)
2shall not apply to entire engine assemblies, propulsion engine
3assemblies, including electric vehicle batteries, and entire
4transmission assemblies. In the case of those assemblies, the
5motor vehicle franchiser shall reimburse the motor vehicle
6franchisee up to and including 30% of what the motor vehicle
7franchisee would have paid the motor vehicle franchiser for
8the assembly if the assembly had not been supplied by the
9franchiser other than by the sale of that assembly to the motor
10vehicle franchisee and entire transmission assemblies.
11    (f) The obligations imposed on motor vehicle franchisers
12by this Section shall apply to any parent, subsidiary,
13affiliate, or agent of the motor vehicle franchiser, any
14person under common ownership or control, any employee of the
15motor vehicle franchiser, and any person holding 1% or more of
16the shares of any class of securities or other ownership
17interest in the motor vehicle franchiser, if a warranty or
18service or repair plan is issued by that person instead of or
19in addition to one issued by the motor vehicle franchiser.
20    (g) (Blank).
21(Source: P.A. 102-232, eff. 1-1-22.)
 
22    Section 995. No acceleration or delay. Where this Act
23makes changes in a statute that is represented in this Act by
24text that is not yet or no longer in effect (for example, a
25Section represented by multiple versions), the use of that

 

 

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1text does not accelerate or delay the taking effect of (i) the
2changes made by this Act or (ii) provisions derived from any
3other Public Act.
 
4    Section 999. Effective date. This Act takes effect upon
5becoming law.