Sen. Steve Stadelman

Filed: 10/25/2021

 

 


 

 


 
10200HB1769sam001LRB102 10422 HLH 30134 a

1
AMENDMENT TO HOUSE BILL 1769

2    AMENDMENT NO. ______. Amend House Bill 1769 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200HB1769sam001- 2 -LRB102 10422 HLH 30134 a

1manufacturing facilities directly related to the electric
2vehicle industry. Illinois' long-term development benefits
3from rational, strategic use of State resources in support of
4development and growth in the electric vehicle industry.
5    The General Assembly finds that workers are essential to
6the prosperity of our State's economy and play a critical role
7in Illinois becoming leader in manufacturing. The General
8Assembly further finds that, for the prosperity of our State,
9workers in this industry must be afforded high quality jobs
10that honor the dignity of work. Therefore, the General
11Assembly finds that it is in the best interest of Illinois to
12protect the work conditions, worker safety, and worker rights
13in the manufacturing industry and further finds that employer
14workplace policies shall be interpreted broadly to protect
15employees.
 
16    Section 10. Definitions. As used in this Act:
17    "Agreement" means the agreement between a taxpayer and the
18Department under the provisions of Section 45 of this Act.
19    "Applicant" means a taxpayer that (i) operates a business
20in Illinois or is planning to locate a business within the
21State of Illinois and (ii) is engaged in interstate or
22intrastate commerce for the purpose of manufacturing electric
23vehicles, electric vehicle component parts, or electric
24vehicle power supply equipment. "Applicant" does not include a
25taxpayer who closes or substantially reduces by more than 50%

 

 

10200HB1769sam001- 3 -LRB102 10422 HLH 30134 a

1operations at one location in the State and relocates
2substantially the same operation to another location in the
3State. This does not prohibit a Taxpayer from expanding its
4operations at another location in the State. This also does
5not prohibit a Taxpayer from moving its operations from one
6location in the State to another location in the State for the
7purpose of expanding the operation, provided that the
8Department determines that expansion cannot reasonably be
9accommodated within the municipality or county in which the
10business is located, or, in the case of a business located in
11an incorporated area of the county, within the county in which
12the business is located, after conferring with the chief
13elected official of the municipality or county and taking into
14consideration any evidence offered by the municipality or
15county regarding the ability to accommodate expansion within
16the municipality or county.
17    "Capital improvements" means the purchase, renovation,
18rehabilitation, or construction of permanent tangible land,
19buildings, structures, equipment, and furnishings in an
20approved project sited in Illinois and expenditures for goods
21or services that are normally capitalized, including
22organizational costs and research and development costs
23incurred in Illinois. For land, buildings, structures, and
24equipment that are leased, the lease must equal or exceed the
25term of the agreement, and the cost of the property shall be
26determined from the present value, using the corporate

 

 

10200HB1769sam001- 4 -LRB102 10422 HLH 30134 a

1interest rate prevailing at the time of the application, of
2the lease payments.
3    "Credit" means either a "REV Illinois Credit" or a "REV
4Construction Jobs Credit" agreed to between the Department and
5applicant under this Act.
6    "Department" means the Department of Commerce and Economic
7Opportunity.
8    "Director" means the Director of Commerce and Economic
9Opportunity.
10    "Electric vehicle" means a vehicle that is exclusively
11powered by and refueled by electricity, must be plugged in to
12charge or utilize a pre-charged battery, and is permitted to
13operate on public roadways. "Electric vehicle" does not
14include electric motorcycles or hybrid electric vehicles and
15extended-range electric vehicles that are also equipped with
16conventional fueled propulsion or auxiliary engines.
17    "Electric vehicle manufacturer" means a new or existing
18manufacturer that is focused on reequipping, expanding, or
19establishing a manufacturing facility in Illinois that
20produces electric vehicles as defined in this Section.
21    "Electric vehicle component parts manufacturer" means a
22new or existing manufacturer that is focused on reequipping,
23expanding, or establishing a manufacturing facility in
24Illinois that produces key components that directly support
25the electric functions of electric vehicles, as defined by
26this Section.

 

 

10200HB1769sam001- 5 -LRB102 10422 HLH 30134 a

1    "Electric vehicle power supply equipment" means the
2equipment used specifically for the purpose of delivering
3electricity to an electric vehicle.
4    "Electric vehicle power supply manufacturer" means a new
5or existing manufacturer that is focused on reequipping,
6expanding, or establishing a manufacturing facility in
7Illinois that produces electric vehicle power supply equipment
8used for the purpose of delivering electricity to an electric
9vehicle.
10    "Energy Transition Area" means a county with less than
11100,000 people or a municipality that contains one or more of
12the following:
13        (1)a fossil fuel plant that was retired from service
14    or has significant reduced service within 6 years before
15    the time of the application or will be retired or have
16    service significantly reduced within 6 years following the
17    time of the application; or
18        (2) a coal mine that was closed or had operations
19    significantly reduced within 6 years before the time of
20    the application or is anticipated to be closed or have
21    operations significantly reduced within 6 years following
22    the time of the application.
23    "Full-time employee" means an individual who is employed
24for consideration for at least 35 hours each week or who
25renders any other standard of service generally accepted by
26industry custom or practice as full-time employment. An

 

 

10200HB1769sam001- 6 -LRB102 10422 HLH 30134 a

1individual for whom a W-2 is issued by a Professional Employer
2Organization (PEO) is a full-time employee if employed in the
3service of the applicant for consideration for at least 35
4hours each week.
5    "Incremental income tax" means the total amount withheld
6during the taxable year from the compensation of new employees
7and, if applicable, retained employees under Article 7 of the
8Illinois Income Tax Act arising from employment at a project
9that is the subject of an agreement.
10    "Institution of higher education" or "institution" means
11any accredited public or private university, college,
12community college, business, technical, or vocational school,
13or other accredited educational institution offering degrees
14and instruction beyond the secondary school level.
15    "Minority person" means a minority person as defined in
16the Business Enterprise for Minorities, Women, and Persons
17with Disabilities Act.
18    "New employee" means a newly-hired full-time employee
19employed to work at the project site and whose work is directly
20related to the project.
21    "Noncompliance date" means, in the case of a taxpayer that
22is not complying with the requirements of the agreement or the
23provisions of this Act, the day following the last date upon
24which the taxpayer was in compliance with the requirements of
25the agreement and the provisions of this Act, as determined by
26the Director, pursuant to Section 70.

 

 

10200HB1769sam001- 7 -LRB102 10422 HLH 30134 a

1    "Pass-through entity" means an entity that is exempt from
2the tax under subsection (b) or (c) of Section 205 of the
3Illinois Income Tax Act.
4    "Placed in service" means the state or condition of
5readiness, availability for a specifically assigned function,
6and the facility is constructed and ready to conduct its
7facility operations to manufacture goods.
8    "Professional employer organization" (PEO) means an
9employee leasing company, as defined in Section 206.1 of the
10Illinois Unemployment Insurance Act.
11    "Program" means the Reimagining Electric Vehicles in
12Illinois Program (the REV Illinois Program) established in
13this Act.
14    "Project" or "REV Illinois Project" means a for-profit
15economic development activity for the manufacture of electric
16vehicles, electric vehicle component parts, or electric
17vehicle power supply equipment which is designated by the
18Department as a REV Illinois Project and is the subject of an
19agreement.
20    "Recycling facility" means a location at which the
21taxpayer disposes of batteries and other component parts in
22manufacturing of electric vehicles, electric vehicle component
23parts, or electric vehicle power supply equipment.
24    "Related member" means a person that, with respect to the
25taxpayer during any portion of the taxable year, is any one of
26the following:

 

 

10200HB1769sam001- 8 -LRB102 10422 HLH 30134 a

1        (1) An individual stockholder, if the stockholder and
2    the members of the stockholder's family (as defined in
3    Section 318 of the Internal Revenue Code) own directly,
4    indirectly, beneficially, or constructively, in the
5    aggregate, at least 50% of the value of the taxpayer's
6    outstanding stock.
7        (2) A partnership, estate, trust and any partner or
8    beneficiary, if the partnership, estate, or trust, and its
9    partners or beneficiaries own directly, indirectly,
10    beneficially, or constructively, in the aggregate, at
11    least 50% of the profits, capital, stock, or value of the
12    taxpayer.
13        (3) A corporation, and any party related to the
14    corporation in a manner that would require an attribution
15    of stock from the corporation under the attribution rules
16    of Section 318 of the Internal Revenue Code, if the
17    Taxpayer owns directly, indirectly, beneficially, or
18    constructively at least 50% of the value of the
19    corporation's outstanding stock.
20        (4) A corporation and any party related to that
21    corporation in a manner that would require an attribution
22    of stock from the corporation to the party or from the
23    party to the corporation under the attribution rules of
24    Section 318 of the Internal Revenue Code, if the
25    corporation and all such related parties own in the
26    aggregate at least 50% of the profits, capital, stock, or

 

 

10200HB1769sam001- 9 -LRB102 10422 HLH 30134 a

1    value of the taxpayer.
2        (5) A person to or from whom there is an attribution of
3    stock ownership in accordance with Section 1563(e) of the
4    Internal Revenue Code, except, for purposes of determining
5    whether a person is a related member under this paragraph,
6    20% shall be substituted for 5% wherever 5% appears in
7    Section 1563(e) of the Internal Revenue Code.
8    "Retained employee" means a full-time employee employed by
9the taxpayer prior to the term of the Agreement who continues
10to be employed during the term of the agreement whose job
11duties are directly and substantially related to the project.
12For purposes of this definition, "directly and substantially
13related to the project" means at least two-thirds of the
14employee's job duties must be directly related to the project
15and the employee must devote at least two-thirds of his or her
16time to the project. The term "retained employee" does not
17include any individual who has a direct or an indirect
18ownership interest of at least 5% in the profits, equity,
19capital, or value of the taxpayer or a child, grandchild,
20parent, or spouse, other than a spouse who is legally
21separated from the individual, of any individual who has a
22direct or indirect ownership of at least 5% in the profits,
23equity, capital, or value of the taxpayer.
24    "REV Illinois credit" means a credit agreed to between the
25Department and the applicant under this Act that is based on
26the incremental income tax attributable to new employees and,

 

 

10200HB1769sam001- 10 -LRB102 10422 HLH 30134 a

1if applicable, retained employees, and on training costs for
2such employees at the applicant's project.
3    "REV construction jobs credit" means a credit agreed to
4between the Department and the applicant under this Act that
5is based on the incremental income tax attributable to
6construction wages paid in connection with construction of the
7project facilities.
8    "Statewide baseline" means the total number of full-time
9employees of the applicant and any related member employed by
10such entities at the time of application for incentives under
11this Act.
12    "Taxpayer" means an individual, corporation, partnership,
13or other entity that has a legal obligation to pay Illinois
14income taxes and file an Illinois income tax return.
15    "Training costs" means costs incurred to upgrade the
16technological skills of full-time employees in Illinois and
17includes: curriculum development; training materials
18(including scrap product costs); trainee domestic travel
19expenses; instructor costs (including wages, fringe benefits,
20tuition and domestic travel expenses); rent, purchase or lease
21of training equipment; and other usual and customary training
22costs. "Training costs" do not include costs associated with
23travel outside the United States (unless the Taxpayer receives
24prior written approval for the travel by the Director based on
25a showing of substantial need or other proof the training is
26not reasonably available within the United States), wages and

 

 

10200HB1769sam001- 11 -LRB102 10422 HLH 30134 a

1fringe benefits of employees during periods of training, or
2administrative cost related to Full-Time Employees of the
3Taxpayer.
4    "Underserved area" means any geographic areas as defined
5in Section 5-5 of the Economic Development for a Growing
6Economy Tax Credit Act.
 
7    Section 15. Powers of the Department. The Department, in
8addition to those powers granted under the Civil
9Administrative Code of Illinois, is granted and shall have all
10the powers necessary or convenient to administer the program
11under this Act and to carry out and effectuate the purposes and
12provisions of this Act, including, but not limited to, the
13power and authority to:
14        (1) adopt rules deemed necessary and appropriate for
15    the administration of the REV Illinois Program, the
16    designation of REV Illinois Projects, and the awarding of
17    credits;
18        (2) establish forms for applications, notifications,
19    contracts, or any other agreements and accept applications
20    at any time during the year;
21        (3) assist taxpayers pursuant to the provisions of
22    this Act and cooperate with taxpayers that are parties to
23    agreements under this Act to promote, foster, and support
24    economic development, capital investment, and job creation
25    or retention within the State;

 

 

10200HB1769sam001- 12 -LRB102 10422 HLH 30134 a

1        (4) enter into agreements and memoranda of
2    understanding for participation of, and engage in
3    cooperation with, agencies of the federal government,
4    units of local government, universities, research
5    foundations or institutions, regional economic development
6    corporations, or other organizations to implement the
7    requirements and purposes of this Act;
8        (5) gather information and conduct inquiries, in the
9    manner and by the methods it deems desirable, including
10    without limitation, gathering information with respect to
11    applicants for the purpose of making any designations or
12    certifications necessary or desirable or to gather
13    information to assist the Department with any
14    recommendation or guidance in the furtherance of the
15    purposes of this Act;
16        (6) establish, negotiate and effectuate agreements and
17    any term, agreement, or other document with any person,
18    necessary or appropriate to accomplish the purposes of
19    this Act; and to consent, subject to the provisions of any
20    agreement with another party, to the modification or
21    restructuring of any agreement to which the Department is
22    a party;
23        (7) fix, determine, charge, and collect any premiums,
24    fees, charges, costs, and expenses from applicants,
25    including, without limitation, any application fees,
26    commitment fees, program fees, financing charges, or

 

 

10200HB1769sam001- 13 -LRB102 10422 HLH 30134 a

1    publication fees as deemed appropriate to pay expenses
2    necessary or incident to the administration, staffing, or
3    operation in connection with the Department's activities
4    under this Act, or for preparation, implementation, and
5    enforcement of the terms of the agreement, or for
6    consultation, advisory and legal fees, and other costs;
7    however, all fees and expenses incident thereto shall be
8    the responsibility of the applicant;
9        (8) provide for sufficient personnel to permit
10    administration, staffing, operation, and related support
11    required to adequately discharge its duties and
12    responsibilities described in this Act from funds made
13    available through charges to applicants or from funds as
14    may be appropriated by the General Assembly for the
15    administration of this Act;
16        (9) require applicants, upon written request, to issue
17    any necessary authorization to the appropriate federal,
18    State, or local authority for the release of information
19    concerning a project being considered under the provisions
20    of this Act, with the information requested to include,
21    but not be limited to, financial reports, returns, or
22    records relating to the taxpayer or its project;
23        (10) require that a taxpayer shall at all times keep
24    proper books of record and account in accordance with
25    generally accepted accounting principles consistently
26    applied, with the books, records, or papers related to the

 

 

10200HB1769sam001- 14 -LRB102 10422 HLH 30134 a

1    agreement in the custody or control of the taxpayer open
2    for reasonable Department inspection and audits, and
3    including, without limitation, the making of copies of the
4    books, records, or papers, and the inspection or appraisal
5    of any of the taxpayer or project assets;
6        (11) take whatever actions are necessary or
7    appropriate to protect the State's interest in the event
8    of bankruptcy, default, foreclosure, or noncompliance with
9    the terms and conditions of financial assistance or
10    participation required under this Act, including the power
11    to sell, dispose, lease, or rent, upon terms and
12    conditions determined by the Director to be appropriate,
13    real or personal property that the Department may receive
14    as a result of these actions.
 
15    Section 20. REV Illinois Program; project applications.
16    (a) The Reimagining Electric Vehicles in Illinois (REV
17Illinois) Program is hereby established and shall be
18administered by the Department. The Program will provide
19financial incentives to eligible manufacturers of electric
20vehicles, electric vehicle component parts, and electric
21vehicle power supply equipment.
22    (b) Any taxpayer planning a project to be located in
23Illinois may request consideration for designation of its
24project as a REV Illinois Project, by formal written letter of
25request or by formal application to the Department, in which

 

 

10200HB1769sam001- 15 -LRB102 10422 HLH 30134 a

1the applicant states its intent to make at least a specified
2level of investment and intends to hire a specified number of
3full-time employees at a designated location in Illinois. As
4circumstances require, the Department shall require a formal
5application from an applicant and a formal letter of request
6for assistance.
7    (c) In order to qualify for credits under the REV Illinois
8Program, an Applicant must:
9        (1) for an electric vehicle manufacturer:
10            (A) make an investment of at least $1,500,000,000
11        in capital improvements at the project site;
12            (B) to be placed in service within the State
13        within a 60-month period after approval of the
14        application; and
15            (C) create at least 500 new full-time employee
16        jobs; or
17        (2) for an electric vehicle component parts
18    manufacturer:
19            (A) make an investment of at least $300,000,000 in
20        capital improvements at the project site;
21            (B) manufacture one or more parts that are
22        primarily used for electric vehicle manufacturing;
23            (C) to be placed in service within the State
24        within a 60-month period after approval of the
25        application; and
26            (D) create at least 150 new full-time employee

 

 

10200HB1769sam001- 16 -LRB102 10422 HLH 30134 a

1        jobs; or
2        (3) for an electric vehicle manufacturer, electric
3    vehicle power supply equipment Manufacturer, or electric
4    vehicle component part manufacturer that does not quality
5    under paragraph (2) above:
6            (A) make an investment of at least $20,000,000 in
7        capital improvements at the project site;
8            (B) for electric vehicle component part
9        manufacturers, manufacture one or more parts that are
10        primarily used for electric vehicle manufacturing;
11            (C) to be placed in service within the State
12        within a 48-month period after approval of the
13        application; and
14            (D) create at least 50 new full-time employee
15        jobs; or
16        (4) for an electric vehicle manufacturer or electric
17    vehicle component parts manufacturer with existing
18    operations within Illinois that intends to convert or
19    expand, in whole or in part, the existing facility from
20    traditional manufacturing to electric vehicle
21    manufacturing, electric vehicle component parts
22    manufacturing, or electric vehicle power supply equipment
23    manufacturing:
24            (A) make an investment of at least $100,000,000 in
25        capital improvements at the project site;
26            (B) to be placed in service within the State

 

 

10200HB1769sam001- 17 -LRB102 10422 HLH 30134 a

1        within a 60-month period after approval of the
2        application; and
3            (C) create the lesser of 75 new full-time employee
4        jobs or new full-time employee jobs equivalent to 10%
5        of the Statewide baseline applicable to the taxpayer
6        and any related member at the time of application.
7    (d) For any applicant creating the full-time employee jobs
8noted in subsection (c), those jobs must have a total
9compensation equal to or greater than 120% of the average wage
10paid to full-time employees in the county where the project is
11located, as determined by the U.S. Bureau of Labor Statistics.
12    (e) For any applicant, within 24 months after being placed
13in service, it must certify to the Department that it is carbon
14neutral or has attained certification under one of more of the
15following green building standards:
16        (1) BREEAM for New Construction or BREEAM In-Use;
17        (2) ENERGY STAR;
18        (3) Envision;
19        (4) ISO 50001 energy management;
20        (5) LEED for Building Design and Construction or LEED
21    for Building Operations and Maintenance;
22        (6) Green Globes for New Construction or Green Globes
23    for Existing Buildings; or
24        (7) UL 3223.
25    (f) Each applicant must outline its hiring plan and
26commitment to recruit and hire full-time employee positions at

 

 

10200HB1769sam001- 18 -LRB102 10422 HLH 30134 a

1the project site. The hiring plan may include a partnership
2with an institution of higher education to provide
3internships, including, but not limited to, internships
4supported by the Clean Jobs Workforce Network Program, or
5full-time permanent employment for students at the project
6site. Additionally, the applicant may create or utilize
7participants from apprenticeship programs that are approved by
8and registered with the United States Department of Labor's
9Bureau of Apprenticeship and Training. The Applicant may apply
10for apprenticeship education expense credits in accordance
11with the provisions set forth in 14 Ill. Admin. Code 522. Each
12applicant is required to report annually, on or before April
1315, on the diversity of its workforce in accordance with
14Section 50 of this Act. For existing facilities of applicants
15under paragraph (3) of subsection (b) above, if the taxpayer
16expects a reduction in force due to its transition to
17manufacturing electric vehicle, electric vehicle component
18parts, or electric vehicle power supply equipment, the plan
19submitted under this Section must outline the taxpayer's plan
20to assist with retraining its workforce aligned with the
21taxpayer's adoption of new technologies and anticipated
22efforts to retrain employees through employment opportunities
23within the taxpayer's workforce.
24    (g) Each applicant must demonstrate a contractual or other
25relationship with a recycling facility, or demonstrate its own
26recycling capabilities, at the time of application and report

 

 

10200HB1769sam001- 19 -LRB102 10422 HLH 30134 a

1annually a continuing contractual or other relationship with a
2recycling facility and the percentage of batteries used in
3electric vehicles recycled throughout the term of the
4agreement.
5    (h) A taxpayer may not enter into more than one agreement
6under this Act with respect to a single address or location for
7the same period of time. Also, a taxpayer may not enter into an
8agreement under this Act with respect to a single address or
9location for the same period of time for which the taxpayer
10currently holds an active agreement under the Economic
11Development for a Growing Economy Tax Credit Act. This
12provision does not preclude the applicant from entering into
13an additional agreement after the expiration or voluntary
14termination of an earlier agreement under this Act or under
15the Economic Development for a Growing Economy Tax Credit Act
16to the extent that the taxpayer's application otherwise
17satisfies the terms and conditions of this Act and is approved
18by the Department. An applicant with an existing agreement
19under the Economic Development for a Growing Economy Tax
20Credit Act may submit an application for an agreement under
21this Act after it terminates any existing agreement under the
22Economic Development for a Growing Economy Tax Credit Act with
23respect to the same address or location.
 
24    Section 25. Review of application. The Department shall
25determine which projects will benefit the State. In making its

 

 

10200HB1769sam001- 20 -LRB102 10422 HLH 30134 a

1recommendation that an applicant's application for credit
2should or should not be accepted, which shall occur within a
3reasonable time frame as determined by the nature of the
4application, the Department shall determine that all the
5following conditions exist:
6        (1) the applicant intends to make the required
7    investment in the State and intends to hire the required
8    number of full-time employees;
9        (2) the applicant's project is economically sound and
10    will benefit the people of the State by increasing
11    opportunities for employment and strengthen the economy of
12    the State;
13        (3) awarding the credit will result in an overall
14    positive fiscal impact to the State, as certified by the
15    Department using the best available data; and
16        (4) the credit is not prohibited under this Act.
 
17    Section 30. Tax credit awards.
18    (a) Subject to the conditions set forth in this Act, a
19taxpayer is entitled to a credit against the tax imposed
20pursuant to subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act for a taxable year beginning on or
22after January 1, 2025 if the taxpayer is awarded a credit by
23the Department in accordance with an agreement under this Act.
24The Department has authority to award credits under this Act
25on and after January 1, 2022.

 

 

10200HB1769sam001- 21 -LRB102 10422 HLH 30134 a

1    (b) REV Illinois Credits. A taxpayer may receive a tax
2credit against the tax imposed under subsections (a) and (b)
3of Section 201 of the Illinois Income Tax Act, not to exceed
4the sum of (i) 75% of the incremental income tax attributable
5to new employees at the applicant's project and (ii) 10% of the
6training costs of the new employees. If the project is located
7in an underserved area or an energy transition area, then the
8amount of the credit may not exceed the sum of (i) 100% of the
9incremental income tax attributable to new employees at the
10applicant's project; and (ii) 10% of the training costs of the
11new employees. The percentage of training costs includable in
12the calculation may be increased by an additional 15% for
13training costs associated with new employees that are recent
14(2 years or less) graduates, certificate holders, or
15credential recipients from an institution of higher education
16in Illinois, or, if the training is provided by an institution
17of higher education in Illinois or an apprenticeship and
18training program located in Illinois and approved by and
19registered with the United States Department of Labor's Bureau
20of Apprenticeship and Training. The percentage of training
21costs includable in the calculation shall not exceed a total
22of 25%. If an applicant agrees to hire the required number of
23new employees, then the maximum amount of the credit for that
24applicant may be increased by an amount not to exceed 25% of
25the incremental income tax attributable to retained employees
26at the applicant's project; provided that, in order to receive

 

 

10200HB1769sam001- 22 -LRB102 10422 HLH 30134 a

1the increase for retained employees, the applicant must, if
2applicable, meet or exceed the statewide baseline. If the
3Project is in an underserved area or an energy transition
4area, the maximum amount of the credit attributable to
5retained employees for the applicant may be increased to an
6amount not to exceed 50% of the incremental income tax
7attributable to retained employees at the applicant's project;
8provided that, in order to receive the increase for retained
9employees, the applicant must meet or exceed the statewide
10baseline. REV Illinois Credits awarded may include credit
11earned for incremental income tax withheld and training costs
12incurred by the taxpayer in any taxable year beginning on or
13after January 1, 2022. Credits so earned and certified by the
14Department may be applied against the tax imposed by
15subsections (a) and (b) of Section 201 of the Illinois Income
16Tax Act for taxable years beginning on or after January 1,
172025.
18    (c) REV Construction Jobs Credit. For construction wages
19associated with a project that qualified for a REV Illinois
20Credit under subsection (b), the taxpayer may receive a tax
21credit against the tax imposed under subsections (a) and (b)
22of Section 201 of the Illinois Income Tax Act in an amount
23equal to 50% of the incremental income tax attributable to
24construction wages paid in connection with construction of the
25project facilities, as a jobs credit for workers hired to
26construct the project.

 

 

10200HB1769sam001- 23 -LRB102 10422 HLH 30134 a

1    The REV Construction Jobs Credit may not exceed 75% of the
2amount of the incremental income tax attributable to
3construction wages paid in connection with construction of the
4project facilities if the project is in an underserved area or
5an energy transition area.
6    (d) The Department shall certify to the Department of
7Revenue: (1)the identity of Taxpayers that are eligible for
8the REV Illinois Credit and REV Construction Jobs Credit;
9(2)the amount of the REV Illinois Credits and REV Construction
10Jobs Credits awarded in each calendar year; and (3) the amount
11of the REV Illinois Credit and REV Construction Jobs Credit
12claimed in each calendar year. REV Illinois Credits awarded
13may include credit earned for Incremental Income Tax withheld
14and Training Costs incurred by the Taxpayer in any taxable
15year beginning on or after January 1, 2022. Credits so earned
16and certified by the Department may be applied against the tax
17imposed by section 201(a) and (b) of the Illinois Income Tax
18Act for taxable years beginning on or after January 1, 2025.
19    (e) Applicants seeking certification for a tax credits
20related to the construction of the project facilities in the
21State shall require the contractor to enter into a project
22labor agreement approved by the Department of Labor.
23    (f) Any applicant issued a certificate for a tax credit or
24tax exemption under this Act must annually report to the
25Department the total project tax benefits received. Reports
26are due no later than May 31 of each year and shall cover the

 

 

10200HB1769sam001- 24 -LRB102 10422 HLH 30134 a

1previous calendar year. The first report is for the 2022
2calendar year and is due no later than May 31, 2023.
3    (g) Nothing in this Act shall prohibit an award of credit
4to an applicant that uses a PEO if all other award criteria are
5satisfied.
6    (h) With respect to any portion of a REV Illinois Credit
7that is based on the incremental income tax attributable to
8new employees or retained employees, in lieu of the Credit
9allowed under this Act against the taxes imposed pursuant to
10subsections (a) and (b) of Section 201 of the Illinois Income
11Tax Act, a taxpayer that otherwise meets the criteria set
12forth in this Section, the taxpayer may elect to claim the
13credit, on or after January 1, 2025, against its obligation to
14pay over withholding under Section 704A of the Illinois Income
15Tax Act. The election shall be made in the manner prescribed by
16the Department of Revenue and once made shall be irrevocable.
17    (i) A pass-through entity that has been awarded a credit
18under this Act, its shareholders, or its partners may treat
19some or all the credit awarded pursuant to this Act as a tax
20payment for purposes of the Illinois Income Tax Act. The term
21"tax payment" means a payment as described in Article 6 or
22Article 8 of the Illinois Income Tax Act or a composite payment
23made by a pass-through entity on behalf of any of its
24shareholders or partners to satisfy such shareholders' or
25partners' taxes imposed pursuant to subsections (a) and (b) of
26Section 201 of the Illinois Income Tax Act. In no event shall

 

 

10200HB1769sam001- 25 -LRB102 10422 HLH 30134 a

1the amount of the award credited pursuant to this Act exceed
2the Illinois income tax liability of the pass-through entity
3or its shareholders or partners for the taxable year.
 
4    Section 35. Relocation of jobs in Illinois. A taxpayer is
5not entitled to claim a credit provided by this Act with
6respect to any jobs that the Taxpayer relocates from one site
7in Illinois to another site in Illinois. Any full-time
8employee relocated to Illinois in connection with a qualifying
9project is deemed to be a new employee for purposes of this
10Act. Determinations under this Section shall be made by the
11Department.
 
12    Section 40. Amount and duration of the credits; limitation
13to amount of costs of specified items. The Department shall
14determine the amount and duration of the REV Illinois Credit
15awarded under this Act, subject to the limitations set forth
16in this Act. For a project that qualified under paragraph (1),
17(2), or (4) of subsection (c) of Section 20, the duration of
18the credit may not exceed 15 taxable years. For project that
19qualified under paragraph (3) of subsection (c) of Section 20,
20the duration of the credit may not exceed 10 taxable years. The
21credit may be stated as a percentage of the incremental income
22tax and training costs attributable to the applicant's project
23and may include a fixed dollar limitation.
24    Nothing in this Section shall prevent the Department, in

 

 

10200HB1769sam001- 26 -LRB102 10422 HLH 30134 a

1consultation with the Department of Revenue, from adopting
2rules to extend the sunset of any earned, existing, and unused
3tax credit or credits a taxpayer may be in possession of, as
4provided for in Section 605-1055 of the Department of Commerce
5and Economic Opportunity Law of the Civil Administrative Code
6of Illinois, notwithstanding the carry-forward provisions
7pursuant to paragraph (4) of Section 211 of the Illinois
8Income Tax Act.
 
9    Section 45. Contents of agreements with applicants.
10    (a) The Department shall enter into an agreement with an
11applicant that is awarded a credit under this Act. The
12agreement shall include all of the following:
13        (1) A detailed description of the project that is the
14    subject of the agreement, including the location and
15    amount of the investment and jobs created or retained.
16        (2) The duration of the credit, the first taxable year
17    for which the credit may be awarded, and the first taxable
18    year in which the credit may be used by the taxpayer.
19        (3) The credit amount that will be allowed for each
20    taxable year.
21        (4) For a project qualified under paragraphs (1), (2),
22    or (4) of subsection (c) of Section 20, a requirement that
23    the taxpayer shall maintain operations at the project
24    location a minimum number of years not to exceed 15. For
25    project qualified under paragraph (3) of subsection (c) of

 

 

10200HB1769sam001- 27 -LRB102 10422 HLH 30134 a

1    Section 20, a requirement that the taxpayer shall maintain
2    operations at the project location a minimum number of
3    years not to exceed 10.
4        (5) A specific method for determining the number of
5    new employees and if applicable, retained employees,
6    employed during a taxable year.
7        (6) A requirement that the taxpayer shall annually
8    report to the Department the number of new employees, the
9    incremental income tax withheld in connection with the new
10    employees, and any other information the Department deems
11    necessary and appropriate to perform its duties under this
12    Act.
13        (7) A requirement that the Director is authorized to
14    verify with the appropriate State agencies the amounts
15    reported under paragraph (6), and after doing so shall
16    issue a certificate to the taxpayer stating that the
17    amounts have been verified.
18        (8) A requirement that the taxpayer shall provide
19    written notification to the Director not more than 30 days
20    after the taxpayer makes or receives a proposal that would
21    transfer the taxpayer's State tax liability obligations to
22    a successor taxpayer.
23        (9) A detailed description of the number of new
24    employees to be hired, and the occupation and payroll of
25    full-time jobs to be created or retained because of the
26    project.

 

 

10200HB1769sam001- 28 -LRB102 10422 HLH 30134 a

1        (10) The minimum investment the taxpayer will make in
2    capital improvements, the time period for placing the
3    property in service, and the designated location in
4    Illinois for the investment.
5        (11) A requirement that the taxpayer shall provide
6    written notification to the Director and the Director's
7    designee not more than 30 days after the taxpayer
8    determines that the minimum job creation or retention,
9    employment payroll, or investment no longer is or will be
10    achieved or maintained as set forth in the terms and
11    conditions of the agreement. Additionally, the
12    notification should outline to the Department the number
13    of layoffs, date of the layoffs, and detail taxpayer's
14    efforts to provide career and training counseling for the
15    impacted workers with industry-related certifications and
16    trainings.
17        (12) A provision that, if the total number of new
18    employees falls below a specified level, the allowance of
19    credit shall be suspended until the number of new
20    employees equals or exceeds the agreement amount.
21        (13) If applicable, a provision that specifies the
22    statewide baseline at the time of application for retained
23    employees. Additionally, the agreement must have a
24    provision addressing if the total number retained
25    employees falls below the statewide baseline, the
26    allowance of the credit shall be suspended until the

 

 

10200HB1769sam001- 29 -LRB102 10422 HLH 30134 a

1    number of retained employees equals or exceeds the
2    agreement amount.
3        (14) A detailed description of the items for which the
4    costs incurred by the Taxpayer will be included in the
5    limitation on the Credit provided in Section 40.
6        (15) A provision stating that if the taxpayer fails to
7    meet either the investment or job creation and retention
8    requirements specified in the agreement during the entire
9    5-year period beginning on the first day of the first
10    taxable year in which the agreement is executed and ending
11    on the last day of the fifth taxable year after the
12    agreement is executed, then the agreement is automatically
13    terminated on the last day of the fifth taxable year after
14    the agreement is executed, and the taxpayer is not
15    entitled to the award of any credits for any of that 5-year
16    period.
17        (16) A provision stating that if the taxpayer ceases
18    principal operations with the intent to permanently shut
19    down the project in the State during the term of the
20    Agreement, then the entire credit amount awarded to the
21    taxpayer prior to the date the taxpayer ceases principal
22    operations shall be returned to the Department and shall
23    be reallocated to the local workforce investment area in
24    which the project was located.
25        (17) A provision stating that the Taxpayer must
26    provide the reports outlined in Sections 50 and 55 on or

 

 

10200HB1769sam001- 30 -LRB102 10422 HLH 30134 a

1    before April 15 each year.
2        (18) A provision requiring the taxpayer to report
3    annually its contractual obligations or otherwise with a
4    recycling facility for its operations.
5        (19) Any other performance conditions or contract
6    provisions the Department determines are necessary or
7    appropriate.
8    (b) The Department shall post on its website the terms of
9each agreement entered into under this Act. Such information
10shall be posted within 10 days after entering into the
11agreement and must include the following:
12        (1) the name of the taxpayer;
13        (2) the location of the project;
14        (3) the estimated value of the credit;
15        (4) the number of new employee jobs and, if
16    applicable, number of retained employee jobs at the
17    project; and
18        (5) whether or not the project is in an underserved
19    area or energy transition area.
 
20    Section 50. Diversity report on the taxpayer's workforce,
21board of directors, and vendors.
22    (a) Each taxpayer with an agreement for a REV Illinois
23project under this Act shall, starting on April 15, 2025, and
24every year thereafter prior to April 15, for which the
25Taxpayer has an Agreement under this Act, submit to the

 

 

10200HB1769sam001- 31 -LRB102 10422 HLH 30134 a

1Department an annual report detailing the diversity of the
2taxpayer's own workforce, including full-time and part-time
3employees, contractors, and board of directors' membership.
4Any taxpayer seeking to claim a credit under this Act that
5fails to timely submit the required report shall not receive a
6credit for that taxable year unless and until such report is
7finalized and submitted to the Department. The report should
8also address the Taxpayer's best efforts to meet or exceed the
9recruitment and hiring plan outlined in the application
10referenced in Section 20. Those reports shall be submitted in
11the form and manner required by the Department.
12    (b) Vendor diversity and annual report. If the taxpayer
13tracks the diversity of the vendors that it utilizes, the
14Taxpayer shall report, no later than April 15 of each taxable
15year for which the taxpayer claims a credit under this Act, the
16following information to the Department:
17        (1) a point of contact for potential vendors to
18    register with the taxpayer's REV Illinois Project;
19        (2) certifications that the taxpayer accepts or
20    recognizes for minority and women-owned businesses as
21    entities;
22        (3) the taxpayers goals to contract with diverse
23    vendors, if any, for the next fiscal year for the entire
24    budget of the Taxpayer's REV Illinois Project;
25        (4) for the last fiscal year, the actual contractual
26    spending for the entire budget of the REV Illinois Project

 

 

10200HB1769sam001- 32 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 33 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 34 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 35 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 36 -LRB102 10422 HLH 30134 a

1subcontractor's false certification.
2    (b) Any contractor or subcontractor subject to this
3Section, and any officer, employee, or agent of such
4contractor or subcontractor whose duty as an officer,
5employee, or agent it is to file a certified payroll under this
6Section, who willfully fails to file such a certified payroll,
7on or before the date such certified payroll is required to be
8filed and any person who willfully files a false certified
9payroll as to any material fact is in violation of this Act and
10guilty of a Class A misdemeanor.
11    (c) The taxpayer in charge of the project shall keep the
12records submitted in accordance with this Section for a period
13of 5 years from the date of the last payment for work on a
14contract or subcontract for the project.
15    (d) The records submitted in accordance with this Section
16shall be considered public records, except an employee's
17address, telephone number, and social security number, which
18shall be redacted. The records shall be made publicly
19available in accordance with the Freedom of Information Act.
20The Department of Labor shall accept any reasonable
21submissions by the contractor or subcontractor that meet the
22requirements of this subsection and shall share the
23information with the Department to comply with the awarding of
24the REV Construction Jobs Credit. A contractor, subcontractor,
25or public body may retain records required under this Section
26in paper or electronic format.

 

 

10200HB1769sam001- 37 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 38 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 39 -LRB102 10422 HLH 30134 a

1    applicable, the number of retained employee jobs;
2        (2) any relevant modifications to existing agreements;
3        (3) a statement of the progress made by each taxpayer
4    in meeting the terms of the original agreement;
5        (4) a statement of wages paid to new employees and, if
6    applicable, retained employees in the State; and
7        (5) a copy of the original agreement or link to the
8    agreement on the Department's website.
 
9    Section 80. Evaluation of tax credit program. The
10Department shall evaluate the tax credit program every three
11years and issue a report. The evaluation shall include an
12assessment of the effectiveness of the program in creating new
13jobs in Illinois and of the revenue impact of the program and
14may include a review of the practices and experiences of other
15states with similar programs. The Director shall submit a
16report on the evaluation to the Governor and the General
17Assembly three years after the Effective Date of the Act and
18every three years thereafter.
 
19    Section 85. Sunset of new agreements. The Department shall
20not enter into any new Agreements under the provisions of this
21Act after December 31, 2027.
 
22    Section 90. Prioritization of project review with the
23Department of Transportation. A project that would directly

 

 

10200HB1769sam001- 40 -LRB102 10422 HLH 30134 a

1assist in the feasibility of locating an electric vehicle
2manufacturing facility, component parts manufacturing
3facility, or electric vehicle power supply manufacturing
4facility may be prioritized by the Secretary of Transportation
5if: (i) such project is included in the Highway Improvement
6Program; and (ii) the company will operate the facility that
7was approved to receive a REV Construction Jobs credit or a REV
8Illinois credit. Under no circumstances should a project be
9prioritized if it would compromise the delivery of a project
10to remediate an immediate threat to safety.
 
11    Section 95. Utility tax exemptions for REV Illinois
12Project sites. The Department may certify a taxpayer with a
13REV Illinois credit for a Project that meets the
14qualifications under Section paragraphs (1), (2), and (4) of
15subsection (c) of Section 20, subject to an agreement under
16this Act for an exemption from the tax imposed at the project
17site by Section 2-4 of the Electricity Excise Tax Law. To
18receive such certification, the taxpayer must be registered to
19self-assess that tax. The taxpayer is also exempt from any
20additional charges added to the taxpayer's utility bills at
21the project site as a pass-on of State utility taxes under
22Section 9-222 of the Public Utilities Act. The taxpayer must
23meet any other the criteria for certification set by the
24Department.
25    The Department shall determine the period during which the

 

 

10200HB1769sam001- 41 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 42 -LRB102 10422 HLH 30134 a

1    Section 100. Investment tax credits for REV Illinois
2Projects. Subject to the conditions set forth in this Act, a
3Taxpayer is entitled to an investment tax credit toward taxes
4imposed pursuant to subsections (a) and (b) of Section 201 of
5the Illinois Income Tax Act for a taxable year in which the
6Taxpayer, in accordance with an Agreement under this Act for
7that taxable year, invests in qualified property which is
8placed in service at the site of a REV Illinois Project. The
9Department has authority to certify the amount of such
10investment tax credits to the Department of Revenue. The
11credit shall be 0.5% of the basis for such property and shall
12be determined in accordance with Section 237 of the Illinois
13Income Tax Act. The credit shall be available only in the
14taxable year in which the property is placed in service and
15shall not be allowed to the extent that it would reduce a
16taxpayer's liability for the tax imposed by subsections (a)
17and (b) of Section 201 of the Illinois Income Tax Act to below
18zero. Unused credit may be carried forward in accordance with
19Section 237 of the Illinois Income Tax Act for use in future
20taxable years. Any taxpayer qualifying for the REV Illinois
21Investment Tax Credit shall not be eligible for either the
22investment tax credits in Section 201(e), (f), or (h) of this
23Act.
 
24    Section 105. Building materials exemptions for REV

 

 

10200HB1769sam001- 43 -LRB102 10422 HLH 30134 a

1Illinois Project sites.
2    (a) The Department may certify a Taxpayer with a REV
3Illinois Project that meets the qualifications under
4paragraphs (1), (2), or (4) of subsection (c) of Section 20,
5subject to an agreement under this Act, for an exemption from
6any State or local use tax or retailers' occupation tax on
7building materials for the construction of its project
8facilities. The taxpayer must meet any criteria for
9certification set by the Department under this Act.
10    The Department shall determine the period during which the
11exemption from State and local use tax and retailers'
12occupation tax are in effect, but in no event shall exceed 5
13years in accordance with Section 5m of the Retailers'
14Occupation Tax Act.
15    The Department is authorized to promulgate rules and
16regulations to carry out the provisions of this Section,
17including procedures to apply for the exemption; to define the
18amounts and types of eligible investments that an applicant
19must make in order to receive tax exemption; to approve such
20tax exemption for an applicant whose investments are not yet
21placed in service; and to require that an applicant granted
22exemption repay the exempted amount if the applicant fails to
23comply with the terms and conditions of the agreement with the
24Department.
25    Upon certification by the Department under this Section,
26the Department shall notify the Department of Revenue of the

 

 

10200HB1769sam001- 44 -LRB102 10422 HLH 30134 a

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

 

 

10200HB1769sam001- 45 -LRB102 10422 HLH 30134 a

1include a price preference of at least 20% for electric
2vehicles manufactured in Illinois.
 
3    Section 905. The Illinois Income Tax Act is amended by
4changing Section 704A and by adding Sections 236 and 237 as
5follows:
 
6    (35 ILCS 5/236 new)
7    Sec. 236. Reimagining Electric Vehicles in Illinois Tax
8credits.
9    (a) For tax years beginning on or after January 1, 2025, a
10taxpayer who has entered into an agreement under the
11Reimagining Electric Vehicles in Illinois Act is entitled to a
12credit against the taxes imposed under subsections (a) and (b)
13of Section 201 of this Act in an amount to be determined in the
14Agreement. The taxpayer may elect to claim the credit, on or
15after January 1, 2025, against its obligation to pay over
16withholding under Section 704A of this Act as provided in
17paragraph (6) of subsection (b). If the taxpayer is a
18partnership or Subchapter S corporation, the credit shall be
19allowed to the partners or shareholders in accordance with the
20determination of income and distributive share of income under
21Sections 702 and 704 of this Act and subchapter S of the
22Internal Revenue Code. The Department, in cooperation with the
23Department of Commerce and Economic Opportunity, shall adopt
24rules to enforce and administer the provisions of this

 

 

10200HB1769sam001- 46 -LRB102 10422 HLH 30134 a

1Section. This Section is exempt from the provisions of Section
2250 of this Act.
3    (b) The credit is subject to the conditions set forth in
4the agreement and the following limitations:
5        (1) The tax credit may be in the form of either or both
6    the REV Illinois Credit or the REV Construction Jobs
7    Credit (as defined in the Reimagining Electric Vehicles in
8    Illinois Act) and shall not exceed the percentage of
9    incremental income tax and percentage of training costs
10    permitted in that Act and in the agreement with respect to
11    the project.
12        (2) The amount of the credit allowed during a tax year
13    plus the sum of all amounts allowed in prior tax years
14    shall not exceed the maximum amount of credit established
15    in the agreement.
16        (3) The amount of the credit shall be determined on an
17    annual basis. Except as applied in a carryover year
18    pursuant to paragraph (4), the credit may not be applied
19    against any State income tax liability in more than 15
20    taxable years.
21        (4) The credit may not exceed the amount of taxes
22    imposed pursuant to subsections (a) and (b) of Section 201
23    of this Act. Any credit that is unused in the year the
24    credit is computed may be carried forward and applied to
25    the tax liability of the 5 taxable years following the
26    excess credit year. The credit shall be applied to the

 

 

10200HB1769sam001- 47 -LRB102 10422 HLH 30134 a

1    earliest year for which there is a tax liability. If there
2    are credits from more than one tax year that are available
3    to offset a liability, the earlier credit shall be applied
4    first.
5        (5) No credit shall be allowed with respect to any
6    agreement for any taxable year ending after the
7    noncompliance date. Upon receiving notification by the
8    Department of Commerce and Economic Opportunity of the
9    noncompliance of a taxpayer with an agreement, the
10    Department shall notify the taxpayer that no credit is
11    allowed with respect to that agreement for any taxable
12    year ending after the noncompliance date, as stated in
13    such notification. If any credit has been allowed with
14    respect to an agreement for a taxable year ending after
15    the noncompliance date for that agreement, any refund paid
16    to the taxpayer for that taxable year shall, to the extent
17    of that credit allowed, be an erroneous refund within the
18    meaning of Section 912 of this Act.
19        If, during any taxable year, a taxpayer ceases
20    operations at a project location that is the subject of
21    that agreement with the intent to terminate operations in
22    the State, the tax imposed under subsections (a) and (b)
23    of Section 201 of this Act for such taxable year shall be
24    increased by the amount of any credit allowed under the
25    Agreement for that Project location prior to the date the
26    Taxpayer ceases operations.

 

 

10200HB1769sam001- 48 -LRB102 10422 HLH 30134 a

1        (6) Instead of claiming the credit against the taxes
2    imposed under subsections (a) and (b) of Section 201 of
3    this Act, with respect to the portion of a REV Illinois
4    Credit that is calculated based on the Incremental Income
5    Tax attributable to new employees and retained employees,
6    the taxpayer may elect, in accordance with the Reimagining
7    Electric Vehicles in Illinois Act, to claim the credit, on
8    or after January 1, 2025, against its obligation to pay
9    over withholding under Section 704A of the Illinois Income
10    Tax Act. Any credit for which a Taxpayer makes such an
11    election shall not be claimed against the taxes imposed
12    under subsections (a) and (b) of Section 201 of this Act.
 
13    (35 ILCS 5/237 new)
14    Sec. 237. REV Illinois Investment Tax credits.
15    (a) For tax years beginning on or after the effective date
16of this amendatory Act of the 102nd General Assembly, a
17taxpayer shall be allowed a credit against the tax imposed by
18subsections (a) and (b) of Section 201 for investment in
19qualified property which is placed in service at the site of a
20REV Illinois Project subject to an agreement between the
21taxpayer and the Department of Commerce and Economic
22Opportunity pursuant to the Reimagining Electric Vehicles in
23Illinois Act. For partners, shareholders of Subchapter S
24corporations, and owners of limited liability companies, if
25the liability company is treated as a partnership for purposes

 

 

10200HB1769sam001- 49 -LRB102 10422 HLH 30134 a

1of federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and Subchapter S of the Internal
5Revenue Code. The credit shall be 0.5% of the basis for such
6property. The credit shall be available only in the taxable
7year in which the property is placed in service and shall not
8be allowed to the extent that it would reduce a taxpayer's
9liability for the tax imposed by subsections (a) and (b) of
10Section 201 to below zero. The credit shall be allowed for the
11tax year in which the property is placed in service, or, if the
12amount of the credit exceeds the tax liability for that year,
13whether it exceeds the original liability or the liability as
14later amended, such excess may be carried forward and applied
15to the tax liability of the 5 taxable years following the
16excess credit year. The credit shall be applied to the
17earliest year for which there is a liability. If there is
18credit from more than one tax year that is available to offset
19a liability, the credit accruing first in time shall be
20applied first.
21    (b) The term qualified property means property which:
22        (1) is tangible, whether new or used, including
23    buildings and structural components of buildings;
24        (2) is depreciable pursuant to Section 167 of the
25    Internal Revenue Code, except that "3-year property" as
26    defined in Section 168(c)(2)(A) of that Code is not

 

 

10200HB1769sam001- 50 -LRB102 10422 HLH 30134 a

1    eligible for the credit provided by this Section;
2        (3) is acquired by purchase as defined in Section
3    179(d) of the Internal Revenue Code;
4        (4) is used at the site of the REV Illinois Project by
5    the taxpayer; and
6        (5) has not been previously used in Illinois in such a
7    manner and by such a person as would qualify for the credit
8    provided by this Section.
9    (c) The basis of qualified property shall be the basis
10used to compute the depreciation deduction for federal income
11tax purposes.
12    (d) If the basis of the property for federal income tax
13depreciation purposes is increased after it has been placed in
14service at the site of the REV Illinois Project by the
15taxpayer, the amount of such increase shall be deemed property
16placed in service on the date of such increase in basis.
17    (e) The term "placed in service" shall have the same
18meaning as under Section 46 of the Internal Revenue Code.
19    (f) If during any taxable year, any property ceases to be
20qualified property in the hands of the taxpayer within 48
21months after being placed in service, or the situs of any
22qualified property is moved from the REV Illinois Project site
23within 48 months after being placed in service, the tax
24imposed under subsections (a) and (b) of Section 201 for such
25taxable year shall be increased. Such increase shall be
26determined by (i) recomputing the investment credit which

 

 

10200HB1769sam001- 51 -LRB102 10422 HLH 30134 a

1would have been allowed for the year in which credit for such
2property was originally allowed by eliminating such property
3from such computation, and (ii) subtracting such recomputed
4credit from the amount of credit previously allowed. For the
5purposes of this subsection (f), a reduction of the basis of
6qualified property resulting from a redetermination of the
7purchase price shall be deemed a disposition of qualified
8property to the extent of such reduction.
 
9    (35 ILCS 5/704A)
10    Sec. 704A. Employer's return and payment of tax withheld.
11    (a) In general, every employer who deducts and withholds
12or is required to deduct and withhold tax under this Act on or
13after January 1, 2008 shall make those payments and returns as
14provided in this Section.
15    (b) Returns. Every employer shall, in the form and manner
16required by the Department, make returns with respect to taxes
17withheld or required to be withheld under this Article 7 for
18each quarter beginning on or after January 1, 2008, on or
19before the last day of the first month following the close of
20that quarter.
21    (c) Payments. With respect to amounts withheld or required
22to be withheld on or after January 1, 2008:
23        (1) Semi-weekly payments. For each calendar year, each
24    employer who withheld or was required to withhold more
25    than $12,000 during the one-year period ending on June 30

 

 

10200HB1769sam001- 52 -LRB102 10422 HLH 30134 a

1    of the immediately preceding calendar year, payment must
2    be made:
3            (A) on or before each Friday of the calendar year,
4        for taxes withheld or required to be withheld on the
5        immediately preceding Saturday, Sunday, Monday, or
6        Tuesday;
7            (B) on or before each Wednesday of the calendar
8        year, for taxes withheld or required to be withheld on
9        the immediately preceding Wednesday, Thursday, or
10        Friday.
11        Beginning with calendar year 2011, payments made under
12    this paragraph (1) of subsection (c) must be made by
13    electronic funds transfer.
14        (2) Semi-weekly payments. Any employer who withholds
15    or is required to withhold more than $12,000 in any
16    quarter of a calendar year is required to make payments on
17    the dates set forth under item (1) of this subsection (c)
18    for each remaining quarter of that calendar year and for
19    the subsequent calendar year.
20        (3) Monthly payments. Each employer, other than an
21    employer described in items (1) or (2) of this subsection,
22    shall pay to the Department, on or before the 15th day of
23    each month the taxes withheld or required to be withheld
24    during the immediately preceding month.
25        (4) Payments with returns. Each employer shall pay to
26    the Department, on or before the due date for each return

 

 

10200HB1769sam001- 53 -LRB102 10422 HLH 30134 a

1    required to be filed under this Section, any tax withheld
2    or required to be withheld during the period for which the
3    return is due and not previously paid to the Department.
4    (d) Regulatory authority. The Department may, by rule:
5        (1) Permit employers, in lieu of the requirements of
6    subsections (b) and (c), to file annual returns due on or
7    before January 31 of the year for taxes withheld or
8    required to be withheld during the previous calendar year
9    and, if the aggregate amounts required to be withheld by
10    the employer under this Article 7 (other than amounts
11    required to be withheld under Section 709.5) do not exceed
12    $1,000 for the previous calendar year, to pay the taxes
13    required to be shown on each such return no later than the
14    due date for such return.
15        (2) Provide that any payment required to be made under
16    subsection (c)(1) or (c)(2) is deemed to be timely to the
17    extent paid by electronic funds transfer on or before the
18    due date for deposit of federal income taxes withheld
19    from, or federal employment taxes due with respect to, the
20    wages from which the Illinois taxes were withheld.
21        (3) Designate one or more depositories to which
22    payment of taxes required to be withheld under this
23    Article 7 must be paid by some or all employers.
24        (4) Increase the threshold dollar amounts at which
25    employers are required to make semi-weekly payments under
26    subsection (c)(1) or (c)(2).

 

 

10200HB1769sam001- 54 -LRB102 10422 HLH 30134 a

1    (e) Annual return and payment. Every employer who deducts
2and withholds or is required to deduct and withhold tax from a
3person engaged in domestic service employment, as that term is
4defined in Section 3510 of the Internal Revenue Code, may
5comply with the requirements of this Section with respect to
6such employees by filing an annual return and paying the taxes
7required to be deducted and withheld on or before the 15th day
8of the fourth month following the close of the employer's
9taxable year. The Department may allow the employer's return
10to be submitted with the employer's individual income tax
11return or to be submitted with a return due from the employer
12under Section 1400.2 of the Unemployment Insurance Act.
13    (f) Magnetic media and electronic filing. With respect to
14taxes withheld in calendar years prior to 2017, any W-2 Form
15that, under the Internal Revenue Code and regulations
16promulgated thereunder, is required to be submitted to the
17Internal Revenue Service on magnetic media or electronically
18must also be submitted to the Department on magnetic media or
19electronically for Illinois purposes, if required by the
20Department.
21    With respect to taxes withheld in 2017 and subsequent
22calendar years, the Department may, by rule, require that any
23return (including any amended return) under this Section and
24any W-2 Form that is required to be submitted to the Department
25must be submitted on magnetic media or electronically.
26    The due date for submitting W-2 Forms shall be as

 

 

10200HB1769sam001- 55 -LRB102 10422 HLH 30134 a

1prescribed by the Department by rule.
2    (g) For amounts deducted or withheld after December 31,
32009, a taxpayer who makes an election under subsection (f) of
4Section 5-15 of the Economic Development for a Growing Economy
5Tax Credit Act for a taxable year shall be allowed a credit
6against payments due under this Section for amounts withheld
7during the first calendar year beginning after the end of that
8taxable year equal to the amount of the credit for the
9incremental income tax attributable to full-time employees of
10the taxpayer awarded to the taxpayer by the Department of
11Commerce and Economic Opportunity under the Economic
12Development for a Growing Economy Tax Credit Act for the
13taxable year and credits not previously claimed and allowed to
14be carried forward under Section 211(4) of this Act as
15provided in subsection (f) of Section 5-15 of the Economic
16Development for a Growing Economy Tax Credit Act. The credit
17or credits may not reduce the taxpayer's obligation for any
18payment due under this Section to less than zero. If the amount
19of the credit or credits exceeds the total payments due under
20this Section with respect to amounts withheld during the
21calendar year, the excess may be carried forward and applied
22against the taxpayer's liability under this Section in the
23succeeding calendar years as allowed to be carried forward
24under paragraph (4) of Section 211 of this Act. The credit or
25credits shall be applied to the earliest year for which there
26is a tax liability. If there are credits from more than one

 

 

10200HB1769sam001- 56 -LRB102 10422 HLH 30134 a

1taxable year that are available to offset a liability, the
2earlier credit shall be applied first. Each employer who
3deducts and withholds or is required to deduct and withhold
4tax under this Act and who retains income tax withholdings
5under subsection (f) of Section 5-15 of the Economic
6Development for a Growing Economy Tax Credit Act must make a
7return with respect to such taxes and retained amounts in the
8form and manner that the Department, by rule, requires and pay
9to the Department or to a depositary designated by the
10Department those withheld taxes not retained by the taxpayer.
11For purposes of this subsection (g), the term taxpayer shall
12include taxpayer and members of the taxpayer's unitary
13business group as defined under paragraph (27) of subsection
14(a) of Section 1501 of this Act. This Section is exempt from
15the provisions of Section 250 of this Act. No credit awarded
16under the Economic Development for a Growing Economy Tax
17Credit Act for agreements entered into on or after January 1,
182015 may be credited against payments due under this Section.
19    (g-1) For amounts deducted or withheld after December 31,
202024, a taxpayer who makes an election under the Reimagining
21Electric Vehicles in Illinois Act shall be allowed a credit
22against payments due under this Section for amounts withheld
23during the first quarterly reporting period beginning after
24the certificate is issued equal to the portion of the REV
25Illinois Credit attributable to the incremental income tax
26attributable to new employees and retained employees as

 

 

10200HB1769sam001- 57 -LRB102 10422 HLH 30134 a

1certified by the Department of Commerce and Economic
2Opportunity pursuant to an agreement with the taxpayer under
3the Reimagining Electric Vehicles in Illinois Act for the
4taxable year. The credit or credits may not reduce the
5taxpayer's obligation for any payment due under this Section
6to less than zero. If the amount of the credit or credits
7exceeds the total payments due under this Section with respect
8to amounts withheld during the quarterly reporting period, the
9excess may be carried forward and applied against the
10taxpayer's liability under this Section in the succeeding
11quarterly reporting period as allowed to be carried forward
12under paragraph (4) of Section 211 of this Act. The credit or
13credits shall be applied to the earliest quarterly reporting
14period for which there is a tax liability. If there are credits
15from more than one quarterly reporting period that are
16available to offset a liability, the earlier credit shall be
17applied first. Each employer who deducts and withholds or is
18required to deduct and withhold tax under this Act and who
19retains income tax withholdings this subsection must make a
20return with respect to such taxes and retained amounts in the
21form and manner that the Department, by rule, requires and pay
22to the Department or to a depositary designated by the
23Department those withheld taxes not retained by the taxpayer.
24For purposes of this subsection (g-1), the term taxpayer shall
25include taxpayer and members of the taxpayer's unitary
26business group as defined under paragraph (27) of subsection

 

 

10200HB1769sam001- 58 -LRB102 10422 HLH 30134 a

1(a) of Section 1501 of this Act. This Section is exempt from
2the provisions of Section 250 of this Act.
3    (h) An employer may claim a credit against payments due
4under this Section for amounts withheld during the first
5calendar year ending after the date on which a tax credit
6certificate was issued under Section 35 of the Small Business
7Job Creation Tax Credit Act. The credit shall be equal to the
8amount shown on the certificate, but may not reduce the
9taxpayer's obligation for any payment due under this Section
10to less than zero. If the amount of the credit exceeds the
11total payments due under this Section with respect to amounts
12withheld during the calendar year, the excess may be carried
13forward and applied against the taxpayer's liability under
14this Section in the 5 succeeding calendar years. The credit
15shall be applied to the earliest year for which there is a tax
16liability. If there are credits from more than one calendar
17year that are available to offset a liability, the earlier
18credit shall be applied first. This Section is exempt from the
19provisions of Section 250 of this Act.
20    (i) Each employer with 50 or fewer full-time equivalent
21employees during the reporting period may claim a credit
22against the payments due under this Section for each qualified
23employee in an amount equal to the maximum credit allowable.
24The credit may be taken against payments due for reporting
25periods that begin on or after January 1, 2020, and end on or
26before December 31, 2027. An employer may not claim a credit

 

 

10200HB1769sam001- 59 -LRB102 10422 HLH 30134 a

1for an employee who has worked fewer than 90 consecutive days
2immediately preceding the reporting period; however, such
3credits may accrue during that 90-day period and be claimed
4against payments under this Section for future reporting
5periods after the employee has worked for the employer at
6least 90 consecutive days. In no event may the credit exceed
7the employer's liability for the reporting period. Each
8employer who deducts and withholds or is required to deduct
9and withhold tax under this Act and who retains income tax
10withholdings under this subsection must make a return with
11respect to such taxes and retained amounts in the form and
12manner that the Department, by rule, requires and pay to the
13Department or to a depositary designated by the Department
14those withheld taxes not retained by the employer.
15    For each reporting period, the employer may not claim a
16credit or credits for more employees than the number of
17employees making less than the minimum or reduced wage for the
18current calendar year during the last reporting period of the
19preceding calendar year. Notwithstanding any other provision
20of this subsection, an employer shall not be eligible for
21credits for a reporting period unless the average wage paid by
22the employer per employee for all employees making less than
23$55,000 during the reporting period is greater than the
24average wage paid by the employer per employee for all
25employees making less than $55,000 during the same reporting
26period of the prior calendar year.

 

 

10200HB1769sam001- 60 -LRB102 10422 HLH 30134 a

1    For purposes of this subsection (i):
2    "Compensation paid in Illinois" has the meaning ascribed
3to that term under Section 304(a)(2)(B) of this Act.
4    "Employer" and "employee" have the meaning ascribed to
5those terms in the Minimum Wage Law, except that "employee"
6also includes employees who work for an employer with fewer
7than 4 employees. Employers that operate more than one
8establishment pursuant to a franchise agreement or that
9constitute members of a unitary business group shall aggregate
10their employees for purposes of determining eligibility for
11the credit.
12    "Full-time equivalent employees" means the ratio of the
13number of paid hours during the reporting period and the
14number of working hours in that period.
15    "Maximum credit" means the percentage listed below of the
16difference between the amount of compensation paid in Illinois
17to employees who are paid not more than the required minimum
18wage reduced by the amount of compensation paid in Illinois to
19employees who were paid less than the current required minimum
20wage during the reporting period prior to each increase in the
21required minimum wage on January 1. If an employer pays an
22employee more than the required minimum wage and that employee
23previously earned less than the required minimum wage, the
24employer may include the portion that does not exceed the
25required minimum wage as compensation paid in Illinois to
26employees who are paid not more than the required minimum

 

 

10200HB1769sam001- 61 -LRB102 10422 HLH 30134 a

1wage.
2        (1) 25% for reporting periods beginning on or after
3    January 1, 2020 and ending on or before December 31, 2020;
4        (2) 21% for reporting periods beginning on or after
5    January 1, 2021 and ending on or before December 31, 2021;
6        (3) 17% for reporting periods beginning on or after
7    January 1, 2022 and ending on or before December 31, 2022;
8        (4) 13% for reporting periods beginning on or after
9    January 1, 2023 and ending on or before December 31, 2023;
10        (5) 9% for reporting periods beginning on or after
11    January 1, 2024 and ending on or before December 31, 2024;
12        (6) 5% for reporting periods beginning on or after
13    January 1, 2025 and ending on or before December 31, 2025.
14    The amount computed under this subsection may continue to
15be claimed for reporting periods beginning on or after January
161, 2026 and:
17        (A) ending on or before December 31, 2026 for
18    employers with more than 5 employees; or
19        (B) ending on or before December 31, 2027 for
20    employers with no more than 5 employees.
21    "Qualified employee" means an employee who is paid not
22more than the required minimum wage and has an average wage
23paid per hour by the employer during the reporting period
24equal to or greater than his or her average wage paid per hour
25by the employer during each reporting period for the
26immediately preceding 12 months. A new qualified employee is

 

 

10200HB1769sam001- 62 -LRB102 10422 HLH 30134 a

1deemed to have earned the required minimum wage in the
2preceding reporting period.
3    "Reporting period" means the quarter for which a return is
4required to be filed under subsection (b) of this Section.
5(Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17;
6100-863, eff. 8-14-18; 101-1, eff. 2-19-19.)
 
7    Section 910. The Retailers' Occupation Tax Act is amended
8by adding Section 5m as follows:
 
9    (35 ILCS 120/5m new)
10    Sec. 5m. Building materials exemption; electric vehicle
11manufacturer, electric vehicle component parts manufacturer,
12and electric vehicle power supply manufacturer. Each retailer
13who makes a sale of building materials that will be
14incorporated into real estate in an electric vehicle
15manufacturing facility, an electric vehicle component parts
16manufacturing facility, or an electric vehicle power supply
17manufacturing facility REV Illinois Project which meets the
18qualifications under paragraphs (1), (2), or (4) of subsection
19(c) of Section 20 of the Reimagining Electric Vehicles in
20Illinois Act for which a certificate of exemption has been
21issued by the Department of Commerce and Economic Opportunity
22under the Reimagining Electric Vehicles in Illinois Act, may
23deduct receipts from such sales when calculating any State or
24local use and occupation taxes. No retailer who is eligible

 

 

10200HB1769sam001- 63 -LRB102 10422 HLH 30134 a

1for the deduction or credit under Section 5k of this Act
2related to enterprise zones or Section 5l of this Act related
3to High Impact Businesses for a given sale shall be eligible
4for the deduction or credit authorized under this Section for
5that same sale.
6    In addition to any other requirements to document the
7exemption allowed under this Section, the retailer must obtain
8from the purchaser's REV Illinois Building Materials Exemption
9certificate number issued by the Department. A construction
10contractor or other entity shall not make tax-free purchases
11unless it has an active REV Illinois Building Materials
12Exemption Certificate issued by the Department at the time of
13purchase.
14    Upon request from the electric vehicle manufacturer,
15electric vehicle component parts manufacturer, or electric
16vehicle power supply manufacturer certified by the Department
17of Commerce and Economic Opportunity under REV Illinois Act,
18the Department shall issue a REV Illinois Building Materials
19Exemption Certificate for each construction contractor or
20other entity identified by the certified electric vehicle
21manufacturer, electric vehicle component parts manufacturer,
22or electric vehicle power supply manufacturer. The Department
23shall make the REV Illinois Building Materials Exemption
24Certificates available to each construction contractor or
25other entity and the certified electric vehicle manufacturer,
26electric vehicle component parts manufacturer, or electric

 

 

10200HB1769sam001- 64 -LRB102 10422 HLH 30134 a

1vehicle power supply manufacturer. The request for REV
2Illinois Building Materials Exemption Certificates from the
3certified electric vehicle manufacturer, electric vehicle
4component parts manufacturer, or electric vehicle power supply
5manufacturer to the Department must include the following
6information:
7        (1) the name and address of the construction
8    contractor or other entity;
9        (2) the name and location or address of the building
10    project site;
11        (3) the estimated amount of the exemption for each
12    construction contractor or other entity for which a
13    request for a REV Illinois Building Materials Exemption
14    Certificate is made, based on a stated estimated average
15    tax rate and the percentage of the contract that consists
16    of materials;
17        (4) the period of time over which supplies for the
18    project are expected to be purchased; and
19        (5) other reasonable information as the Department may
20    require, including but not limited to FEIN numbers, to
21    determine if the contractor or other entity, or any
22    partner, or a corporate officer, and in the case of a
23    limited liability company, any manager or member, of the
24    construction contractor or other entity, is or has been
25    the owner, a partner, a corporate officer, and in the case
26    of a limited liability company, a manager or member, of a

 

 

10200HB1769sam001- 65 -LRB102 10422 HLH 30134 a

1    person that is in default for moneys due to the Department
2    under this Act or any other tax or fee Act administered by
3    the Department.
4    The Department shall issue the REV Illinois Building
5Materials Exemption Certificates within 3 business days after
6receipt of request from the certified electric vehicle
7manufacturer, electric vehicle component parts manufacturer,
8or electric vehicle power supply manufacturer. This
9requirement does not apply in circumstances where the
10Department, for reasonable cause, is unable to issue the
11Exemption Certificate within 3 business days. The Department
12may refuse to issue a REV Illinois Building Materials
13Exemption Certificate if the owner, any partner, or a
14corporate officer, and in the case of a limited liability
15company, any manager or member, of the construction contractor
16or other entity is or has been the owner, a partner, a
17corporate officer, and in the case of a limited liability
18company, a manager or member, of a person that is in default
19for moneys due to the Department under this Act or any other
20tax or fee Act administered by the Department.
21    The REV Illinois Building Materials Exemption Certificate
22shall contain language stating that if the construction
23contractor or other entity who is issued the Exemption
24Certificate makes a tax-exempt purchase, as described in this
25Section, that is not eligible for exemption under this Section
26or allows another person to make a tax-exempt purchase, as

 

 

10200HB1769sam001- 66 -LRB102 10422 HLH 30134 a

1described in this Section, that is not eligible for exemption
2under this Section, then, in addition to any tax or other
3penalty imposed, the construction contractor or other entity
4is subject to a penalty equal to the tax that would have been
5paid by the retailer under this Act as well as any applicable
6local retailers' occupation tax on the purchase that is not
7eligible for the exemption.
8    The Department, in its discretion, may require that the
9request for REV Illinois Building Materials Exemption
10Certificates be submitted electronically. The Department may,
11in its discretion, issue the Exemption Certificates
12electronically. The REV Illinois Building Materials Exemption
13Certificate number shall be designed in such a way that the
14Department can identify from the unique number on the
15Exemption Certificate issued to a given construction
16contractor or other entity, the name of the designated
17electric vehicle manufacturing, electric vehicle component
18parts manufacturing, or electric vehicle power supply
19manufacturing site and the construction contractor or other
20entity to whom the Exemption Certificate is issued. The REV
21Illinois Building Materials Exemption Certificate shall
22contain an expiration date, which shall be no more than 5 years
23after the date of issuance. At the request of the designated
24certified electric vehicle manufacturer, electric vehicle
25component parts manufacturer, or electric vehicle power supply
26manufacturer, the Department may renew a REV Illinois Building

 

 

10200HB1769sam001- 67 -LRB102 10422 HLH 30134 a

1Materials Exemption Certificate. After the Department issues
2Exemption Certificates for a given designated electric vehicle
3manufacturing, electric vehicle component parts manufacturing,
4or electric vehicle power supply manufacturing site, the
5certified electric vehicle manufacturer, electric vehicle
6component parts manufacturer, or electric vehicle power supply
7manufacturer may notify the Department of additional
8construction contractors or other entities eligible for a REV
9Illinois Building Materials Exemption Certificate. Upon
10notification by the certified electric vehicle manufacturer,
11electric vehicle component parts manufacturer, or electric
12vehicle power supply manufacturer and subject to the other
13provisions of this Section, the Department shall issue a REV
14Illinois Building Materials Exemption Certificate to each
15additional construction contractor or other entity identified
16by the certified electric vehicle manufacturer, electric
17vehicle component parts manufacturer, or electric vehicle
18power supply manufacturer. A certified electric vehicle
19manufacturer, electric vehicle component parts manufacturer,
20or electric vehicle power supply manufacturer may notify the
21Department to rescind a REV Illinois Building Materials
22Exemption Certificate previously issued by the Department but
23that has not yet expired. Upon notification by the certified
24electric vehicle manufacturer, electric vehicle component
25parts manufacturer, or electric vehicle power supply
26manufacturer and subject to the other provisions of this

 

 

10200HB1769sam001- 68 -LRB102 10422 HLH 30134 a

1Section, the Department shall issue the rescission of the REV
2Illinois Building Materials Exemption Certificate to the
3construction contractor or other entity identified by the
4certified electric vehicle manufacturer, electric vehicle
5component parts manufacturer, or electric vehicle power supply
6manufacturer and provide a copy to the certified electric
7vehicle manufacturer, electric vehicle component parts
8manufacturer, or electric vehicle power supply manufacturer.
9    If the Department of Revenue determines that a
10construction contractor or other entity that was issued an
11Exemption Certificate under this Section made a tax-exempt
12purchase, as described in this Section, that was not eligible
13for exemption under this Section or allowed another person to
14make a tax-exempt purchase, as described in this Section, that
15was not eligible for exemption under this Section, then, in
16addition to any tax or other penalty imposed, the construction
17contractor or other entity is subject to a penalty equal to the
18tax that would have been paid by the retailer under this Act as
19well as any applicable local retailers' occupation tax on the
20purchase that was not eligible for the exemption.
21    This Section is exempt from the provisions of Section
222-70.
 
23    Section 915. The Property Tax Code is amended by adding
24Section 18-184.15 as follows:
 

 

 

10200HB1769sam001- 69 -LRB102 10422 HLH 30134 a

1    (35 ILCS 200/18-184.15 new)
2    Sec. 18-184.15. REV Illinois project facilities for
3electric vehicles, electric vehicle component parts, or
4electric vehicle power supply equipment; abatement. Any taxing
5district, upon a majority vote of its governing body, may,
6after determination of the assessed value as set forth in this
7Code, order the clerk of the appropriate municipality or
8county to abate any portion of real property taxes otherwise
9levied or extended by the taxing district on a REV Illinois
10Project facility owned by an electric vehicle manufacturer,
11electric vehicle component parts manufacturer, or an electric
12vehicle power supply manufacturer that is subject to an
13agreement with the Department of Commerce and Economic
14Opportunity under Section 45 of the Reimagining Electric
15Vehicles in Illinois Act, during the period of time such
16agreement is in effect as specified by the Department of
17Commerce and Economic Opportunity.
 
18    Section 920. The Telecommunications Excise Tax Act is
19amended by changing Section 2 as follows:
 
20    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
21    Sec. 2. As used in this Article, unless the context
22clearly requires otherwise:
23    (a) "Gross charge" means the amount paid for the act or
24privilege of originating or receiving telecommunications in

 

 

10200HB1769sam001- 70 -LRB102 10422 HLH 30134 a

1this State and for all services and equipment provided in
2connection therewith by a retailer, valued in money whether
3paid in money or otherwise, including cash, credits, services
4and property of every kind or nature, and shall be determined
5without any deduction on account of the cost of such
6telecommunications, the cost of materials used, labor or
7service costs or any other expense whatsoever. In case credit
8is extended, the amount thereof shall be included only as and
9when paid. "Gross charges" for private line service shall
10include charges imposed at each channel termination point
11within this State, charges for the channel mileage between
12each channel termination point within this State, and charges
13for that portion of the interstate inter-office channel
14provided within Illinois. Charges for that portion of the
15interstate inter-office channel provided in Illinois shall be
16determined by the retailer as follows: (i) for interstate
17inter-office channels having 2 channel termination points,
18only one of which is in Illinois, 50% of the total charge
19imposed; or (ii) for interstate inter-office channels having
20more than 2 channel termination points, one or more of which
21are in Illinois, an amount equal to the total charge
22multiplied by a fraction, the numerator of which is the number
23of channel termination points within Illinois and the
24denominator of which is the total number of channel
25termination points. Prior to January 1, 2004, any method
26consistent with this paragraph or other method that reasonably

 

 

10200HB1769sam001- 71 -LRB102 10422 HLH 30134 a

1apportions the total charges for interstate inter-office
2channels among the states in which channel terminations points
3are located shall be accepted as a reasonable method to
4determine the charges for that portion of the interstate
5inter-office channel provided within Illinois for that period.
6However, "gross charges" shall not include any of the
7following:
8        (1) Any amounts added to a purchaser's bill because of
9    a charge made pursuant to (i) the tax imposed by this
10    Article; (ii) charges added to customers' bills pursuant
11    to the provisions of Sections 9-221 or 9-222 of the Public
12    Utilities Act, as amended, or any similar charges added to
13    customers' bills by retailers who are not subject to rate
14    regulation by the Illinois Commerce Commission for the
15    purpose of recovering any of the tax liabilities or other
16    amounts specified in such provisions of such Act; (iii)
17    the tax imposed by Section 4251 of the Internal Revenue
18    Code; (iv) 911 surcharges; or (v) the tax imposed by the
19    Simplified Municipal Telecommunications Tax Act.
20        (2) Charges for a sent collect telecommunication
21    received outside of the State.
22        (3) Charges for leased time on equipment or charges
23    for the storage of data or information for subsequent
24    retrieval or the processing of data or information
25    intended to change its form or content. Such equipment
26    includes, but is not limited to, the use of calculators,

 

 

10200HB1769sam001- 72 -LRB102 10422 HLH 30134 a

1    computers, data processing equipment, tabulating equipment
2    or accounting equipment and also includes the usage of
3    computers under a time-sharing agreement.
4        (4) Charges for customer equipment, including such
5    equipment that is leased or rented by the customer from
6    any source, wherein such charges are disaggregated and
7    separately identified from other charges.
8        (5) Charges to business enterprises certified under
9    Section 9-222.1 of the Public Utilities Act, as amended,
10    or to electric vehicle manufacturers, electric vehicle
11    component parts manufacturers, or electric vehicle power
12    supply manufacturers at REV Illinois Project sites for
13    which a certificate of exemption has been issued by the
14    Department of Commerce and Economic Opportunity under
15    Section 95 of the Reimagining Electric Vehicles in
16    Illinois Act, to the extent of such exemption and during
17    the period of time specified by the Department of Commerce
18    and Economic Opportunity.
19        (6) Charges for telecommunications and all services
20    and equipment provided in connection therewith between a
21    parent corporation and its wholly owned subsidiaries or
22    between wholly owned subsidiaries when the tax imposed
23    under this Article has already been paid to a retailer and
24    only to the extent that the charges between the parent
25    corporation and wholly owned subsidiaries or between
26    wholly owned subsidiaries represent expense allocation

 

 

10200HB1769sam001- 73 -LRB102 10422 HLH 30134 a

1    between the corporations and not the generation of profit
2    for the corporation rendering such service.
3        (7) Bad debts. Bad debt means any portion of a debt
4    that is related to a sale at retail for which gross charges
5    are not otherwise deductible or excludable that has become
6    worthless or uncollectable, as determined under applicable
7    federal income tax standards. If the portion of the debt
8    deemed to be bad is subsequently paid, the retailer shall
9    report and pay the tax on that portion during the
10    reporting period in which the payment is made.
11        (8) Charges paid by inserting coins in coin-operated
12    telecommunication devices.
13        (9) Amounts paid by telecommunications retailers under
14    the Telecommunications Municipal Infrastructure
15    Maintenance Fee Act.
16        (10) Charges for nontaxable services or
17    telecommunications if (i) those charges are aggregated
18    with other charges for telecommunications that are
19    taxable, (ii) those charges are not separately stated on
20    the customer bill or invoice, and (iii) the retailer can
21    reasonably identify the nontaxable charges on the
22    retailer's books and records kept in the regular course of
23    business. If the nontaxable charges cannot reasonably be
24    identified, the gross charge from the sale of both taxable
25    and nontaxable services or telecommunications billed on a
26    combined basis shall be attributed to the taxable services

 

 

10200HB1769sam001- 74 -LRB102 10422 HLH 30134 a

1    or telecommunications. The burden of proving nontaxable
2    charges shall be on the retailer of the
3    telecommunications.
4    (b) "Amount paid" means the amount charged to the
5taxpayer's service address in this State regardless of where
6such amount is billed or paid.
7    (c) "Telecommunications", in addition to the meaning
8ordinarily and popularly ascribed to it, includes, without
9limitation, messages or information transmitted through use of
10local, toll and wide area telephone service; private line
11services; channel services; telegraph services;
12teletypewriter; computer exchange services; cellular mobile
13telecommunications service; specialized mobile radio;
14stationary two way radio; paging service; or any other form of
15mobile and portable one-way or two-way communications; or any
16other transmission of messages or information by electronic or
17similar means, between or among points by wire, cable,
18fiber-optics, laser, microwave, radio, satellite or similar
19facilities. As used in this Act, "private line" means a
20dedicated non-traffic sensitive service for a single customer,
21that entitles the customer to exclusive or priority use of a
22communications channel or group of channels, from one or more
23specified locations to one or more other specified locations.
24The definition of "telecommunications" shall not include value
25added services in which computer processing applications are
26used to act on the form, content, code and protocol of the

 

 

10200HB1769sam001- 75 -LRB102 10422 HLH 30134 a

1information for purposes other than transmission.
2"Telecommunications" shall not include purchases of
3telecommunications by a telecommunications service provider
4for use as a component part of the service provided by him to
5the ultimate retail consumer who originates or terminates the
6taxable end-to-end communications. Carrier access charges,
7right of access charges, charges for use of inter-company
8facilities, and all telecommunications resold in the
9subsequent provision of, used as a component of, or integrated
10into end-to-end telecommunications service shall be
11non-taxable as sales for resale.
12    (d) "Interstate telecommunications" means all
13telecommunications that either originate or terminate outside
14this State.
15    (e) "Intrastate telecommunications" means all
16telecommunications that originate and terminate within this
17State.
18    (f) "Department" means the Department of Revenue of the
19State of Illinois.
20    (g) "Director" means the Director of Revenue for the
21Department of Revenue of the State of Illinois.
22    (h) "Taxpayer" means a person who individually or through
23his agents, employees or permittees engages in the act or
24privilege of originating or receiving telecommunications in
25this State and who incurs a tax liability under this Article.
26    (i) "Person" means any natural individual, firm, trust,

 

 

10200HB1769sam001- 76 -LRB102 10422 HLH 30134 a

1estate, partnership, association, joint stock company, joint
2venture, corporation, limited liability company, or a
3receiver, trustee, guardian or other representative appointed
4by order of any court, the Federal and State governments,
5including State universities created by statute or any city,
6town, county or other political subdivision of this State.
7    (j) "Purchase at retail" means the acquisition,
8consumption or use of telecommunication through a sale at
9retail.
10    (k) "Sale at retail" means the transmitting, supplying or
11furnishing of telecommunications and all services and
12equipment provided in connection therewith for a consideration
13to persons other than the Federal and State governments, and
14State universities created by statute and other than between a
15parent corporation and its wholly owned subsidiaries or
16between wholly owned subsidiaries for their use or consumption
17and not for resale.
18    (l) "Retailer" means and includes every person engaged in
19the business of making sales at retail as defined in this
20Article. The Department may, in its discretion, upon
21application, authorize the collection of the tax hereby
22imposed by any retailer not maintaining a place of business
23within this State, who, to the satisfaction of the Department,
24furnishes adequate security to insure collection and payment
25of the tax. Such retailer shall be issued, without charge, a
26permit to collect such tax. When so authorized, it shall be the

 

 

10200HB1769sam001- 77 -LRB102 10422 HLH 30134 a

1duty of such retailer to collect the tax upon all of the gross
2charges for telecommunications in this State in the same
3manner and subject to the same requirements as a retailer
4maintaining a place of business within this State. The permit
5may be revoked by the Department at its discretion.
6    (m) "Retailer maintaining a place of business in this
7State", or any like term, means and includes any retailer
8having or maintaining within this State, directly or by a
9subsidiary, an office, distribution facilities, transmission
10facilities, sales office, warehouse or other place of
11business, or any agent or other representative operating
12within this State under the authority of the retailer or its
13subsidiary, irrespective of whether such place of business or
14agent or other representative is located here permanently or
15temporarily, or whether such retailer or subsidiary is
16licensed to do business in this State.
17    (n) "Service address" means the location of
18telecommunications equipment from which the telecommunications
19services are originated or at which telecommunications
20services are received by a taxpayer. In the event this may not
21be a defined location, as in the case of mobile phones, paging
22systems, maritime systems, service address means the
23customer's place of primary use as defined in the Mobile
24Telecommunications Sourcing Conformity Act. For air-to-ground
25systems and the like, service address shall mean the location
26of a taxpayer's primary use of the telecommunications

 

 

10200HB1769sam001- 78 -LRB102 10422 HLH 30134 a

1equipment as defined by telephone number, authorization code,
2or location in Illinois where bills are sent.
3    (o) "Prepaid telephone calling arrangements" mean the
4right to exclusively purchase telephone or telecommunications
5services that must be paid for in advance and enable the
6origination of one or more intrastate, interstate, or
7international telephone calls or other telecommunications
8using an access number, an authorization code, or both,
9whether manually or electronically dialed, for which payment
10to a retailer must be made in advance, provided that, unless
11recharged, no further service is provided once that prepaid
12amount of service has been consumed. Prepaid telephone calling
13arrangements include the recharge of a prepaid calling
14arrangement. For purposes of this subsection, "recharge" means
15the purchase of additional prepaid telephone or
16telecommunications services whether or not the purchaser
17acquires a different access number or authorization code.
18"Prepaid telephone calling arrangement" does not include an
19arrangement whereby a customer purchases a payment card and
20pursuant to which the service provider reflects the amount of
21such purchase as a credit on an invoice issued to that customer
22under an existing subscription plan.
23(Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
 
24    Section 925. The Electricity Excise Tax Law is amended by
25changing Section 2-4 as follows:
 

 

 

10200HB1769sam001- 79 -LRB102 10422 HLH 30134 a

1    (35 ILCS 640/2-4)
2    Sec. 2-4. Tax imposed.
3    (a) Except as provided in subsection (b), a tax is imposed
4on the privilege of using in this State electricity purchased
5for use or consumption and not for resale, other than by
6municipal corporations owning and operating a local
7transportation system for public service, at the following
8rates per kilowatt-hour delivered to the purchaser:
9        (i) For the first 2000 kilowatt-hours used or consumed
10    in a month: 0.330 cents per kilowatt-hour;
11        (ii) For the next 48,000 kilowatt-hours used or
12    consumed in a month: 0.319 cents per kilowatt-hour;
13        (iii) For the next 50,000 kilowatt-hours used or
14    consumed in a month: 0.303 cents per kilowatt-hour;
15        (iv) For the next 400,000 kilowatt-hours used or
16    consumed in a month: 0.297 cents per kilowatt-hour;
17        (v) For the next 500,000 kilowatt-hours used or
18    consumed in a month: 0.286 cents per kilowatt-hour;
19        (vi) For the next 2,000,000 kilowatt-hours used or
20    consumed in a month: 0.270 cents per kilowatt-hour;
21        (vii) For the next 2,000,000 kilowatt-hours used or
22    consumed in a month: 0.254 cents per kilowatt-hour;
23        (viii) For the next 5,000,000 kilowatt-hours used or
24    consumed in a month: 0.233 cents per kilowatt-hour;
25        (ix) For the next 10,000,000 kilowatt-hours used or

 

 

10200HB1769sam001- 80 -LRB102 10422 HLH 30134 a

1    consumed in a month: 0.207 cents per kilowatt-hour;
2        (x) For all electricity in excess of 20,000,000
3    kilowatt-hours used or consumed in a month: 0.202 cents
4    per kilowatt-hour.
5    Provided, that in lieu of the foregoing rates, the tax is
6imposed on a self-assessing purchaser at the rate of 5.1% of
7the self-assessing purchaser's purchase price for all
8electricity distributed, supplied, furnished, sold,
9transmitted and delivered to the self-assessing purchaser in a
10month.
11    (b) A tax is imposed on the privilege of using in this
12State electricity purchased from a municipal system or
13electric cooperative, as defined in Article XVII of the Public
14Utilities Act, which has not made an election as permitted by
15either Section 17-200 or Section 17-300 of such Act, at the
16lesser of 0.32 cents per kilowatt hour of all electricity
17distributed, supplied, furnished, sold, transmitted, and
18delivered by such municipal system or electric cooperative to
19the purchaser or 5% of each such purchaser's purchase price
20for all electricity distributed, supplied, furnished, sold,
21transmitted, and delivered by such municipal system or
22electric cooperative to the purchaser, whichever is the lower
23rate as applied to each purchaser in each billing period.
24    (c) The tax imposed by this Section 2-4 is not imposed with
25respect to any use of electricity by business enterprises
26certified under Section 9-222.1 or 9-222.1A of the Public

 

 

10200HB1769sam001- 81 -LRB102 10422 HLH 30134 a

1Utilities Act, as amended, to the extent of such exemption and
2during the time specified by the Department of Commerce and
3Economic Opportunity; or with respect to any transaction in
4interstate commerce, or otherwise, to the extent to which such
5transaction may not, under the Constitution and statutes of
6the United States, be made the subject of taxation by this
7State.
8    (d) The tax imposed by this Section 2-4 is not imposed with
9respect to any use of electricity at a REV Illinois Project
10site that has received a certification for tax exemption from
11the Department of Commerce and Economic Opportunity pursuant
12to Section 95 of the Reimagining Electric Vehicles in Illinois
13Act, to the extent of such exemption, which shall be no more
14than 10 years.
15(Source: P.A. 94-793, eff. 5-19-06.)
 
16    Section 930. The Public Utilities Act is amended by
17changing Section 9-222 as follows:
 
18    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
19    Sec. 9-222. Whenever a tax is imposed upon a public
20utility engaged in the business of distributing, supplying,
21furnishing, or selling gas for use or consumption pursuant to
22Section 2 of the Gas Revenue Tax Act, or whenever a tax is
23required to be collected by a delivering supplier pursuant to
24Section 2-7 of the Electricity Excise Tax Act, or whenever a

 

 

10200HB1769sam001- 82 -LRB102 10422 HLH 30134 a

1tax is imposed upon a public utility pursuant to Section 2-202
2of this Act, such utility may charge its customers, other than
3customers who are high impact businesses under Section 5.5 of
4the Illinois Enterprise Zone Act, electric vehicle
5manufacturers, electric vehicle component parts manufacturers,
6or electric vehicle power supply equipment manufacturers at
7REV Illinois Project sites as certified under Section 95 of
8the Reimagining Electric Vehicles in Illinois Act, or
9certified business enterprises under Section 9-222.1 of this
10Act, to the extent of such exemption and during the period in
11which such exemption is in effect, in addition to any rate
12authorized by this Act, an additional charge equal to the
13total amount of such taxes. The exemption of this Section
14relating to high impact businesses shall be subject to the
15provisions of subsections (a), (b), and (b-5) of Section 5.5
16of the Illinois Enterprise Zone Act. This requirement shall
17not apply to taxes on invested capital imposed pursuant to the
18Messages Tax Act, the Gas Revenue Tax Act and the Public
19Utilities Revenue Act. Such utility shall file with the
20Commission a supplemental schedule which shall specify such
21additional charge and which shall become effective upon filing
22without further notice. Such additional charge shall be shown
23separately on the utility bill to each customer. The
24Commission shall have the power to investigate whether or not
25such supplemental schedule correctly specifies such additional
26charge, but shall have no power to suspend such supplemental

 

 

10200HB1769sam001- 83 -LRB102 10422 HLH 30134 a

1schedule. If the Commission finds, after a hearing, that such
2supplemental schedule does not correctly specify such
3additional charge, it shall by order require a refund to the
4appropriate customers of the excess, if any, with interest, in
5such manner as it shall deem just and reasonable, and in and by
6such order shall require the utility to file an amended
7supplemental schedule corresponding to the finding and order
8of the Commission. Except with respect to taxes imposed on
9invested capital, such tax liabilities shall be recovered from
10customers solely by means of the additional charges authorized
11by this Section.
12(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
 
13    Section 935. The Environmental Protection Act is amended
14by adding Section 52.10 as follows:
 
15    (415 ILCS 5/52.10 new)
16    Sec. 52.10. Electric Vehicle Permitting Task Force.
17    (a) The Electric Vehicle Permitting Task Force is hereby
18created within the Environmental Protection Agency.
19    (b) The Task Force shall consist of the following members,
20which shall represent the diversity of the people of Illinois:
21        (1) The Director of the Environmental Protection
22    Agency or his or her designee;
23        (2) The Director of Natural Resources or his or her
24    designee;

 

 

10200HB1769sam001- 84 -LRB102 10422 HLH 30134 a

1        (3) The Secretary of Transportation or their designee;
2        (4) 8 members appointed by the Governor as follows:
3            (A) one member of a statewide organization
4        representing manufacturers;
5            (B) one member of a statewide organization
6        representing business interests;
7            (C) one member representing an environmental
8        justice organization;
9            (D) one member representing a statewide
10        environmental advocacy organization;
11            (E) one member representing the electric vehicle
12        industry;
13            (F) one member representing the waste management
14        industry;
15            (G) one member of a statewide organization
16        representing agricultural interests; and
17            (H) one member representing a labor organization.
18    (c) The duties and responsibilities of the Task Force
19include the following:
20        (1) identify existing and potential challenges faced
21    by the electric vehicle industry with respect to the
22    process for obtaining necessary permits from the
23    Environmental Protection Agency, the Department of Natural
24    Resources, and the Department of Transportation, and
25    potential solutions;
26        (2) conduct an assessment of State permitting fees,

 

 

10200HB1769sam001- 85 -LRB102 10422 HLH 30134 a

1    including those necessary for electric vehicle investment
2    in Illinois, and the revenue generated by those fees;
3        (3) assess the permitting needs of the electric
4    vehicle industry, including electric vehicle
5    manufacturers, electric vehicle power supply equipment
6    manufacturers, and electric vehicle component parts
7    manufacturers;
8        (4) recommend changes to expedite permitting processes
9    to support the rapid growth of the electric vehicle
10    industry in Illinois, including support for electric
11    vehicle businesses locating or relocating in Illinois;
12        (5) analyze anticipated staffing needs across State
13    agencies to support expedited permitting efforts;
14        (6) recommend adjustments to the fee structure for
15    state permits, including those permits necessary for
16    electric vehicle investment in Illinois. that will support
17    increased staffing at state agencies;
18        (7) Consider the impact of State and local permitting
19    issues on electric vehicle charging station deployments,
20    and make recommendations on best practices to streamline
21    permitting related to electric vehicle charging stations;
22    and
23        (8) recommend legislative and regulatory actions that
24    are necessary to support changes to permitting processes.
25    (d) The Task Force shall not consider or recommend changes
26to environmental permitting standards outside of the scope of

 

 

10200HB1769sam001- 86 -LRB102 10422 HLH 30134 a

1the duties and responsibilities outlined in subsection (c).
2    (e) Appointments for the Task Force shall be made no later
3than December 15, 2021. The Task Force shall issue a final
4report based upon its findings and recommendations and submit
5the report to the Governor and the General Assembly no later
6than March 1, 2022.
7    (f) Members of the Task Force shall serve without
8compensation. The Environmental Protection Agency shall
9provide administrative support to the Task Force.
10    (g) The Task Force shall be dissolved upon the filing of
11its report.
12    (h) This Section is repealed on December 31, 2022.
 
13    Section 940. The Motor Vehicle Franchise Act is amended by
14changing Section 6 as follows:
 
15    (815 ILCS 710/6)  (from Ch. 121 1/2, par. 756)
16    (Text of Section before amendment by P.A. 102-232)
17    Sec. 6. Warranty agreements; claims; approval; payment;
18written disapproval.
19    (a) Every manufacturer, distributor, wholesaler,
20distributor branch or division, factory branch or division, or
21wholesale branch or division shall properly fulfill any
22warranty agreement and adequately and fairly compensate each
23of its motor vehicle dealers for labor and parts.
24    (b) In no event shall such compensation fail to include

 

 

10200HB1769sam001- 87 -LRB102 10422 HLH 30134 a

1reasonable compensation for diagnostic work, as well as repair
2service, labor, and parts. Time allowances for the diagnosis
3and performance of warranty work and service shall be
4reasonable and adequate for the work to be performed. In the
5determination of what constitutes reasonable compensation
6under this Section, the principal factor to be given
7consideration shall be the prevailing wage rates being paid by
8the dealer in the relevant market area in which the motor
9vehicle dealer is doing business, and in no event shall such
10compensation of a motor vehicle dealer for warranty service be
11less than the rates charged by such dealer for like service to
12retail customers for nonwarranty service and repairs. The
13franchiser shall reimburse the franchisee for any parts
14provided in satisfaction of a warranty at the prevailing
15retail price charged by that dealer for the same parts when not
16provided in satisfaction of a warranty; provided that such
17motor vehicle franchisee's prevailing retail price is not
18unreasonable when compared with that of the holders of motor
19vehicle franchises from the same motor vehicle franchiser for
20identical merchandise in the geographic area in which the
21motor vehicle franchisee is engaged in business. All claims,
22either original or resubmitted, made by motor vehicle dealers
23hereunder and under Section 5 for such labor and parts shall be
24either approved or disapproved within 30 days following their
25submission. All approved claims shall be paid within 30 days
26following their approval. The motor vehicle dealer who submits

 

 

10200HB1769sam001- 88 -LRB102 10422 HLH 30134 a

1a claim which is disapproved shall be notified in writing of
2the disapproval within the same period, and each such notice
3shall state the specific grounds upon which the disapproval is
4based. The motor vehicle dealer shall be permitted to correct
5and resubmit such disapproved claims within 30 days of receipt
6of disapproval. Any claims not specifically disapproved in
7writing within 30 days from their submission shall be deemed
8approved and payment shall follow within 30 days. The
9manufacturer or franchiser shall have the right to require
10reasonable documentation for claims and to audit such claims
11within a one year period from the date the claim was paid or
12credit issued by the manufacturer or franchiser, and to charge
13back any false or unsubstantiated claims. The audit and charge
14back provisions of this Section also apply to all other
15incentive and reimbursement programs for a period of one year
16after the date the claim was paid or credit issued by the
17manufacturer or franchiser. However, the manufacturer retains
18the right to charge back any fraudulent claim if the
19manufacturer establishes in a court of competent jurisdiction
20in this State that the claim is fraudulent.
21    (c) The motor vehicle franchiser shall not, by agreement,
22by restrictions upon reimbursement, or otherwise, restrict the
23nature and extent of services to be rendered or parts to be
24provided so that such restriction prevents the motor vehicle
25franchisee from satisfying the warranty by rendering services
26in a good and workmanlike manner and providing parts which are

 

 

10200HB1769sam001- 89 -LRB102 10422 HLH 30134 a

1required in accordance with generally accepted standards. Any
2such restriction shall constitute a prohibited practice.
3    (d) For the purposes of this Section, the "prevailing
4retail price charged by that dealer for the same parts" means
5the price paid by the motor vehicle franchisee for parts,
6including all shipping and other charges, multiplied by the
7sum of 1.0 and the franchisee's average percentage markup over
8the price paid by the motor vehicle franchisee for parts
9purchased by the motor vehicle franchisee from the motor
10vehicle franchiser and sold at retail. The motor vehicle
11franchisee may establish average percentage markup under this
12Section by submitting to the motor vehicle franchiser 100
13sequential customer paid service repair orders or 90 days of
14customer paid service repair orders, whichever is less,
15covering repairs made no more than 180 days before the
16submission, and declaring what the average percentage markup
17is. The average percentage markup so declared shall go into
18effect 30 days following the declaration, subject to audit of
19the submitted repair orders by the motor vehicle franchiser
20and adjustment of the average percentage markup based on that
21audit. Any audit must be conducted within 30 days following
22the declaration. Only retail sales not involving warranty
23repairs, parts covered by subsection (e) of this Section, or
24parts supplied for routine vehicle maintenance, shall be
25considered in calculating average percentage markup. No motor
26vehicle franchiser shall require a motor vehicle franchisee to

 

 

10200HB1769sam001- 90 -LRB102 10422 HLH 30134 a

1establish average percentage markup by a methodology, or by
2requiring information, that is unduly burdensome or time
3consuming to provide, including, but not limited to, part by
4part or transaction by transaction calculations. A motor
5vehicle franchisee shall not request a change in the average
6percentage markup more than twice in one calendar year.
7    (e) If a motor vehicle franchiser supplies a part or parts
8for use in a repair rendered under a warranty other than by
9sale of that part or parts to the motor vehicle franchisee, the
10motor vehicle franchisee shall be entitled to compensation
11equivalent to the motor vehicle franchisee's average
12percentage markup on the part or parts, as if the part or parts
13had been sold to the motor vehicle franchisee by the motor
14vehicle franchiser. The requirements of this subsection (e)
15shall not apply to entire engine assemblies and entire
16transmission assemblies. In the case of those assemblies, the
17motor vehicle franchiser shall reimburse the motor vehicle
18franchisee in the amount of 30% of what the motor vehicle
19franchisee would have paid the motor vehicle franchiser for
20the assembly if the assembly had not been supplied by the
21franchiser other than by the sale of that assembly to the motor
22vehicle franchisee.
23    (f) The obligations imposed on motor vehicle franchisers
24by this Section shall apply to any parent, subsidiary,
25affiliate, or agent of the motor vehicle franchiser, any
26person under common ownership or control, any employee of the

 

 

10200HB1769sam001- 91 -LRB102 10422 HLH 30134 a

1motor vehicle franchiser, and any person holding 1% or more of
2the shares of any class of securities or other ownership
3interest in the motor vehicle franchiser, if a warranty or
4service or repair plan is issued by that person instead of or
5in addition to one issued by the motor vehicle franchiser.
6    (g) (1) Any motor vehicle franchiser and at least a
7majority of its Illinois franchisees of the same line make may
8agree in an express written contract citing this Section upon
9a uniform warranty reimbursement policy used by contracting
10franchisees to perform warranty repairs. The policy shall only
11involve either reimbursement for parts used in warranty
12repairs or the use of a Uniform Time Standards Manual, or both.
13Reimbursement for parts under the agreement shall be used
14instead of the franchisees' "prevailing retail price charged
15by that dealer for the same parts" as defined in this Section
16to calculate compensation due from the franchiser for parts
17used in warranty repairs. This Section does not authorize a
18franchiser and its Illinois franchisees to establish a uniform
19hourly labor reimbursement.
20    Each franchiser shall only have one such agreement with
21each line make. Any such agreement shall:
22        (A) Establish a uniform parts reimbursement rate. The
23    uniform parts reimbursement rate shall be greater than the
24    franchiser's nationally established parts reimbursement
25    rate in effect at the time the first such agreement
26    becomes effective; however, any subsequent agreement shall

 

 

10200HB1769sam001- 92 -LRB102 10422 HLH 30134 a

1    result in a uniform reimbursement rate that is greater or
2    equal to the rate set forth in the immediately prior
3    agreement.
4        (B) Apply to all warranty repair orders written during
5    the period that the agreement is effective.
6        (C) Be available, during the period it is effective,
7    to any motor vehicle franchisee of the same line make at
8    any time and on the same terms.
9        (D) Be for a term not to exceed 3 years so long as any
10    party to the agreement may terminate the agreement upon
11    the annual anniversary of the agreement and with 30 days'
12    prior written notice; however, the agreement shall remain
13    in effect for the term of the agreement regardless of the
14    number of dealers of the same line make that may terminate
15    the agreement.
16    (2) A franchiser that enters into an agreement with its
17franchisees pursuant to paragraph (1) of this subsection (g)
18may seek to recover its costs from only those franchisees that
19are receiving their "prevailing retail price charged by that
20dealer" under subsections (a) through (f) of this Section,
21subject to the following requirements:
22        (A) "costs" means the difference between the uniform
23    reimbursement rate set forth in an agreement entered into
24    pursuant to paragraph (1) of this subsection (g) and the
25    "prevailing retail price charged by that dealer" received
26    by those franchisees of the same line make. "Costs" do not

 

 

10200HB1769sam001- 93 -LRB102 10422 HLH 30134 a

1    include the following: legal fees or expenses;
2    administrative expenses; a profit mark-up; or any other
3    item;
4        (B) the costs shall be recovered only by increasing
5    the invoice price on new vehicles received by those
6    franchisees; and
7        (C) price increases imposed for the purpose of
8    recovering costs imposed by this Section may vary from
9    time to time and from model to model, but shall apply
10    uniformly to all franchisees of the same line make in the
11    State of Illinois that have requested reimbursement for
12    warranty repairs at their "prevailing retail price charged
13    by that dealer", except that a franchiser may make an
14    exception for vehicles that are titled in the name of a
15    consumer in another state.
16    (3) If a franchiser contracts with its Illinois dealers
17pursuant to paragraph (1) of this subsection (g), the
18franchiser shall certify under oath to the Motor Vehicle
19Review Board that a majority of the franchisees of that line
20make did agree to such an agreement and file a sample copy of
21the agreement. On an annual basis, each franchiser shall
22certify under oath to the Motor Vehicle Review Board that the
23reimbursement costs it recovers under paragraph (2) of this
24subsection (g) do not exceed the amounts authorized by
25paragraph (2) of this subsection (g). The franchiser shall
26maintain for a period of 3 years a file that contains the

 

 

10200HB1769sam001- 94 -LRB102 10422 HLH 30134 a

1information upon which its certification is based.
2    (3.1) A franchiser subject to subdivision (g)(2) of this
3Section, upon request of a dealer subject to that subdivision,
4shall disclose to the dealer, in writing or in person if
5requested by the dealer, the method by which the franchiser
6calculated the amount of the costs to be reimbursed by the
7dealer. The franchiser shall also provide aggregate data
8showing (i) the total costs the franchiser incurred and (ii)
9the total number of new vehicles invoiced to each dealer that
10received the "prevailing retail price charged by that dealer"
11during the relevant period of time. In responding to a
12dealer's request under this subdivision (g)(3.1), a franchiser
13may not disclose any confidential or competitive information
14regarding any other dealer. Any dealer who receives
15information from a franchiser under this subdivision (g)(3.1)
16may not disclose that information to any third party unless
17the disclosure occurs in the course of a lawful proceeding
18before, or upon the order of, the Motor Vehicle Review Board or
19a court of competent jurisdiction.
20    (4) If a franchiser and its franchisees do not enter into
21an agreement pursuant to paragraph (1) of this subsection (g),
22and for any matter that is not the subject of an agreement,
23this subsection (g) shall have no effect whatsoever.
24    (5) For purposes of this subsection (g), a Uniform Time
25Standard Manual is a document created by a franchiser that
26establishes the time allowances for the diagnosis and

 

 

10200HB1769sam001- 95 -LRB102 10422 HLH 30134 a

1performance of warranty work and service. The allowances shall
2be reasonable and adequate for the work and service to be
3performed. Each franchiser shall have a reasonable and fair
4process that allows a franchisee to request a modification or
5adjustment of a standard or standards included in such a
6manual.
7    (6) A franchiser may not take any adverse action against a
8franchisee for not having executed an agreement contemplated
9by this subsection (g) or for receiving the "prevailing retail
10price charged by that dealer". Nothing in this subsection
11shall be construed to prevent a franchiser from making a
12determination of a franchisee's "prevailing retail price
13charged by that dealer", as provided by this Section.
14(Source: P.A. 96-11, eff. 5-22-09.)
 
15    (Text of Section after amendment by P.A. 102-232)
16    Sec. 6. Warranty agreements; claims; approval; payment;
17written disapproval.
18    (a) Every manufacturer, distributor, wholesaler,
19distributor branch or division, factory branch or division, or
20wholesale branch or division shall properly fulfill any
21warranty agreement and adequately and fairly compensate each
22of its motor vehicle dealers for labor and parts.
23    (b) Adequate and fair compensation requires the
24manufacturer to pay each dealer no less than the amount the
25retail customer pays for the same services with regard to rate

 

 

10200HB1769sam001- 96 -LRB102 10422 HLH 30134 a

1and time.
2    Any time guide previously agreed to by the manufacturer
3and the dealer for extended warranty repairs may be used in
4lieu of actual time expended. In the event that a time guide
5has not been agreed to for warranty repairs, or said time guide
6does not define time for an applicable warranty repair, the
7manufacturer's time guide shall be used, multiplied by 1.5.
8    In no event shall such compensation fail to include full
9compensation for diagnostic work, as well as repair service,
10labor, and parts. Time allowances for the diagnosis and
11performance of warranty work and service shall be no less than
12charged to retail customers for the same work to be performed.
13    No warranty or factory compensated repairs shall be
14excluded from this requirement, including recalls or other
15voluntary stop-sell repairs required by the manufacturer. If a
16manufacturer is required to issue a recall, the dealer will be
17compensated for labor time as above stated.
18    Furthermore, manufacturers shall pay the dealer the same
19effective labor rate (using the 100 sequential repair orders
20chosen and submitted by the dealer less simple maintenance
21repair orders) that the dealer receives for customer-pay
22repairs. This requirement includes vehicle diagnostic times
23for all warranty repairs. Additionally, if a technician is
24required to communicate with a Technical Assistance
25Center/Engineering/or some external manufacturer source in
26order to provide a warranty repair, the manufacturer shall pay

 

 

10200HB1769sam001- 97 -LRB102 10422 HLH 30134 a

1for the time from start of communications (including hold
2time) until the communication is complete.
3    The dealer may submit a request to the manufacturer for
4warranty labor rate increases a maximum of once per calendar
5year.
6    A claim made by a franchised motor vehicle dealer for
7compensation under this Section shall be either approved or
8disapproved within 30 days after the claim is submitted to the
9manufacturer in the manner and on the forms the manufacturer
10reasonably prescribes. An approved claim shall be paid within
1130 days after its approval. If a claim is not specifically
12disapproved in writing or by electronic transmission within 30
13days after the date on which the manufacturer receives it, the
14claim shall be considered to be approved and payment shall
15follow within 30 days.
16    In no event shall compensation to a motor vehicle dealer
17for labor times and labor rates be less than the rates charged
18by such dealer for like service to retail customers for
19nonwarranty service and repairs. Additionally, the
20manufacturer shall reimburse the dealer for any parts provided
21in satisfaction of a warranty at the prevailing retail price
22charged by that dealer for the same parts when not provided in
23satisfaction of a warranty; provided that such dealer's
24prevailing retail price is not unreasonable when compared with
25that of the holders of motor vehicle franchises from the same
26manufacturer for identical parts in the geographic area in

 

 

10200HB1769sam001- 98 -LRB102 10422 HLH 30134 a

1which the dealer is engaged in business. Additionally, the
2manufacturer shall reimburse the dealer for any parts provided
3in satisfaction of a warranty at the prevailing retail price
4charged by that dealer for the same parts when sold to a retail
5customer.
6    There shall be no reduction in payments due to
7preestablished market norms or market averages. Manufacturers
8are prohibited from establishing restrictions or limitations
9of customer repair frequency due to failure rate indexes or
10national failure averages.
11    No debit reduction or charge back of any item on a warranty
12repair order may be made absent a finding of fraud or illegal
13actions by the dealer.
14    A warranty claim timely made shall not be deemed invalid
15solely because unavailable parts cause additional use and
16mileage on the vehicle.
17    If a manufacturer imposes a recall or stop sale on any new
18vehicle in a dealer's inventory that prevents the sale of the
19vehicle, the manufacturer shall compensate the dealer for any
20interest and storage until the vehicle is repaired and made
21ready for sale.
22    Manufacturers are not permitted to impose any form of cost
23recovery fees or surcharges against a franchised auto
24dealership for payments made in accordance with this Section.
25    All claims, either original or resubmitted, made by motor
26vehicle dealers hereunder and under Section 5 for such labor

 

 

10200HB1769sam001- 99 -LRB102 10422 HLH 30134 a

1and parts shall be either approved or disapproved within 30
2days following their submission. All approved claims shall be
3paid within 30 days following their approval. The motor
4vehicle dealer who submits a claim which is disapproved shall
5be notified in writing of the disapproval within the same
6period, and each such notice shall state the specific grounds
7upon which the disapproval is based. The motor vehicle dealer
8shall be permitted to correct and resubmit such disapproved
9claims within 30 days of receipt of disapproval. Any claims
10not specifically disapproved in writing within 30 days from
11their submission shall be deemed approved and payment shall
12follow within 30 days. The manufacturer or franchiser shall
13have the right to require reasonable documentation for claims
14and to audit such claims within a one year period from the date
15the claim was paid or credit issued by the manufacturer or
16franchiser, and to charge back any false or unsubstantiated
17claims. The audit and charge back provisions of this Section
18also apply to all other incentive and reimbursement programs
19for a period of one year after the date the claim was paid or
20credit issued by the manufacturer or franchiser. However, the
21manufacturer retains the right to charge back any fraudulent
22claim if the manufacturer establishes in a court of competent
23jurisdiction in this State that the claim is fraudulent.
24    (c) The motor vehicle franchiser shall not, by agreement,
25by restrictions upon reimbursement, or otherwise, restrict the
26nature and extent of services to be rendered or parts to be

 

 

10200HB1769sam001- 100 -LRB102 10422 HLH 30134 a

1provided so that such restriction prevents the motor vehicle
2franchisee from satisfying the warranty by rendering services
3in a good and workmanlike manner and providing parts which are
4required in accordance with generally accepted standards. Any
5such restriction shall constitute a prohibited practice.
6    (d) For the purposes of this Section, the "prevailing
7retail price charged by that dealer for the same parts" means
8the price paid by the motor vehicle franchisee for parts,
9including all shipping and other charges, multiplied by the
10sum of 1.0 and the franchisee's average percentage markup over
11the price paid by the motor vehicle franchisee for parts
12purchased by the motor vehicle franchisee from the motor
13vehicle franchiser and sold at retail. The motor vehicle
14franchisee may establish average percentage markup under this
15Section by submitting to the motor vehicle franchiser 100
16sequential customer paid service repair orders or 90 days of
17customer paid service repair orders, whichever is less,
18covering repairs made no more than 180 days before the
19submission, and declaring what the average percentage markup
20is. The average percentage markup so declared shall go into
21effect 30 days following the declaration, subject to audit of
22the submitted repair orders by the motor vehicle franchiser
23and adjustment of the average percentage markup based on that
24audit. Any audit must be conducted within 30 days following
25the declaration. Only retail sales not involving warranty
26repairs, parts covered by subsection (e) of this Section, or

 

 

10200HB1769sam001- 101 -LRB102 10422 HLH 30134 a

1parts supplied for routine vehicle maintenance, shall be
2considered in calculating average percentage markup. No motor
3vehicle franchiser shall require a motor vehicle franchisee to
4establish average percentage markup by a methodology, or by
5requiring information, that is unduly burdensome or time
6consuming to provide, including, but not limited to, part by
7part or transaction by transaction calculations. A motor
8vehicle franchisee shall not request a change in the average
9percentage markup more than twice in one calendar year.
10    (e) If a motor vehicle franchiser supplies a part or parts
11for use in a repair rendered under a warranty other than by
12sale of that part or parts to the motor vehicle franchisee, the
13motor vehicle franchisee shall be entitled to compensation
14equivalent to the motor vehicle franchisee's average
15percentage markup on the part or parts, as if the part or parts
16had been sold to the motor vehicle franchisee by the motor
17vehicle franchiser. The requirements of this subsection (e)
18shall not apply to entire engine assemblies, propulsion engine
19assemblies, and entire transmission assemblies. In the case of
20those assemblies, the motor vehicle franchiser shall reimburse
21the motor vehicle franchisee in the amount of 30% of what the
22motor vehicle franchisee would have paid the motor vehicle
23franchiser for the assembly if the assembly had not been
24supplied by the franchiser other than by the sale of that
25assembly to the motor vehicle franchisee.
26    (f) The obligations imposed on motor vehicle franchisers

 

 

10200HB1769sam001- 102 -LRB102 10422 HLH 30134 a

1by this Section shall apply to any parent, subsidiary,
2affiliate, or agent of the motor vehicle franchiser, any
3person under common ownership or control, any employee of the
4motor vehicle franchiser, and any person holding 1% or more of
5the shares of any class of securities or other ownership
6interest in the motor vehicle franchiser, if a warranty or
7service or repair plan is issued by that person instead of or
8in addition to one issued by the motor vehicle franchiser.
9    (g) (Blank).
10(Source: P.A. 102-232, eff. 1-1-22.)
 
11    Section 995. No acceleration or delay. Where this Act
12makes changes in a statute that is represented in this Act by
13text that is not yet or no longer in effect (for example, a
14Section represented by multiple versions), the use of that
15text does not accelerate or delay the taking effect of (i) the
16changes made by this Act or (ii) provisions derived from any
17other Public Act.
 
18    Section 999. Effective date. This Act takes effect upon
19becoming law.".