102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4963

 

Introduced 1/27/2022, by Rep. Dave Vella

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 686/20
20 ILCS 686/25
20 ILCS 686/30
20 ILCS 686/45
20 ILCS 686/51 new

    Amends the Reimagining Electric Vehicles in Illinois Act. Provides that the application approval as a REV project must be by formal application (currently, formal written letter of request or formal application). Provides that each application shall state the minimum number of jobs created or retained at the facility and, for all proposed classifications, commitments to salaries, wages, benefits, investment in training, including commitments to pre-apprenticeship and apprenticeship programs, specific protections for worker health and safety, and hiring plans. Provides that each applicant shall state whether it is party to a bona fide labor peace agreement. Provides that applications shall be considered public records subject to disclosure under the Freedom of Information Act. Provides that applicants that are issued credit certificates must report the number, occupation, wages, and benefits of new employees. Contains a severability provision. Effective immediately.


LRB102 23931 HLH 33131 b

 

 

A BILL FOR

 

HB4963LRB102 23931 HLH 33131 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Reimagining Electric Vehicles in Illinois
5Act is amended by changing Sections 20, 25, 30, and 45 and by
6adding Section 51 as follows:
 
7    (20 ILCS 686/20)
8    Sec. 20. REV Illinois Program; project applications.
9    (a) The Reimagining Electric Vehicles in Illinois (REV
10Illinois) Program is hereby established and shall be
11administered by the Department. The Program will provide
12financial incentives to eligible manufacturers of electric
13vehicles, electric vehicle component parts, and electric
14vehicle power supply equipment.
15    (b) Any taxpayer planning a project to be located in
16Illinois may request consideration for designation of its
17project as a REV Illinois Project, by formal written letter of
18request or by formal application to the Department, in which
19the applicant states its intent to make at least a specified
20level of investment and intends to hire a specified number of
21full-time employees at a designated location in Illinois. The
22application shall state the minimum number of jobs created or
23retained at the facility and, for all proposed

 

 

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1classifications, commitments to salaries, wages, benefits,
2investment in training, including commitments to
3pre-apprenticeship and apprenticeship programs registered with
4the Department of Labor or a federally recognized State
5Apprenticeship Agency that complies with the requirements
6under Parts 29 and 30 of Title 29, Code of Federal Regulations,
7specific protections for worker health and safety, and hiring
8plans. In addition, each applicant shall state whether it is
9party to a bona fide labor peace agreement that covers any
10facility that will use funding from the subsidy. The existence
11of or plans to enter into a labor peace agreement shall not be
12evaluated as part of the application. For purposes of this
13Section, a labor peace agreement means an agreement with a
14labor organization representing or seeking to represent the
15applicant's workforce performing work under the subsidy and
16that contains, at a minimum, provisions prohibiting the labor
17organization and its members from engaging in any picketing,
18work stoppage, boycott, or other economic interference with a
19subsidized facility's operations. As circumstances require,
20the Department shall require a formal application from an
21applicant and a formal letter of request for assistance.
22    (c) In order to qualify for credits under the REV Illinois
23Program, an Applicant must:
24        (1) for an electric vehicle manufacturer:
25            (A) make an investment of at least $1,500,000,000
26        in capital improvements at the project site;

 

 

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

 

 

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1        within a 48-month period after approval of the
2        application; and
3            (D) create at least 50 new full-time employee
4        jobs; or
5        (4) for an electric vehicle manufacturer or electric
6    vehicle component parts manufacturer with existing
7    operations within Illinois that intends to convert or
8    expand, in whole or in part, the existing facility from
9    traditional manufacturing to electric vehicle
10    manufacturing, electric vehicle component parts
11    manufacturing, or electric vehicle power supply equipment
12    manufacturing:
13            (A) make an investment of at least $100,000,000 in
14        capital improvements at the project site;
15            (B) to be placed in service within the State
16        within a 60-month period after approval of the
17        application; and
18            (C) create the lesser of 75 new full-time employee
19        jobs or new full-time employee jobs equivalent to 10%
20        of the Statewide baseline applicable to the taxpayer
21        and any related member at the time of application.
22    (d) For any applicant creating the full-time employee jobs
23noted in subsection (c), those jobs must have a total
24compensation equal to or greater than 120% of the average wage
25paid to full-time employees in the county where the project is
26located, as determined by the U.S. Bureau of Labor Statistics.

 

 

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1    (e) For any applicant, within 24 months after being placed
2in service, it must certify to the Department that it is carbon
3neutral or has attained certification under one of more of the
4following green building standards:
5        (1) BREEAM for New Construction or BREEAM In-Use;
6        (2) ENERGY STAR;
7        (3) Envision;
8        (4) ISO 50001 - energy management;
9        (5) LEED for Building Design and Construction or LEED
10    for Building Operations and Maintenance;
11        (6) Green Globes for New Construction or Green Globes
12    for Existing Buildings; or
13        (7) UL 3223.
14    (f) Each applicant must outline its hiring plan and
15commitment to recruit and hire full-time employee positions at
16the project site along with targeted recruitment, training,
17and hiring plans for displaced energy workers and equity
18eligible persons. The hiring plan may include a partnership
19with an institution of higher education to provide
20internships, including, but not limited to, internships
21supported by the Clean Jobs Workforce Network Program, or
22full-time permanent employment for students at the project
23site. Additionally, the applicant shall may create or utilize
24participants from apprenticeship programs registered with the
25Department of Labor or a federally recognized State
26Apprenticeship Agency and that complies with the requirements

 

 

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1under Parts 29 and 30 of Title 29 programs that are approved by
2and registered with the United States Department of Labor's
3Bureau of Apprenticeship and Training. The Applicant may apply
4for apprenticeship education expense credits in accordance
5with the provisions set forth in 14 Ill. Admin. Code 522. Each
6applicant is required to report annually, on or before April
715, on the diversity of its workforce in accordance with
8Section 50 of this Act. For existing facilities of applicants
9under paragraph (3) of subsection (b) above, if the taxpayer
10expects a reduction in force due to its transition to
11manufacturing electric vehicle, electric vehicle component
12parts, or electric vehicle power supply equipment, the plan
13submitted under this Section must outline the taxpayer's plan
14to assist with retraining its workforce aligned with the
15taxpayer's adoption of new technologies and anticipated
16efforts to retrain employees through employment opportunities
17within the taxpayer's workforce.
18    (g) Each applicant must demonstrate a contractual or other
19relationship with a recycling facility, or demonstrate its own
20recycling capabilities, at the time of application and report
21annually a continuing contractual or other relationship with a
22recycling facility and the percentage of batteries used in
23electric vehicles recycled throughout the term of the
24agreement.
25    (h) A taxpayer may not enter into more than one agreement
26under this Act with respect to a single address or location for

 

 

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1the same period of time. Also, a taxpayer may not enter into an
2agreement under this Act with respect to a single address or
3location for the same period of time for which the taxpayer
4currently holds an active agreement under the Economic
5Development for a Growing Economy Tax Credit Act. This
6provision does not preclude the applicant from entering into
7an additional agreement after the expiration or voluntary
8termination of an earlier agreement under this Act or under
9the Economic Development for a Growing Economy Tax Credit Act
10to the extent that the taxpayer's application otherwise
11satisfies the terms and conditions of this Act and is approved
12by the Department. An applicant with an existing agreement
13under the Economic Development for a Growing Economy Tax
14Credit Act may submit an application for an agreement under
15this Act after it terminates any existing agreement under the
16Economic Development for a Growing Economy Tax Credit Act with
17respect to the same address or location.
18    (i) Applications for incentives under the Program shall be
19considered public records subject to disclosure under the
20Freedom of Information Act. The records, including all
21financial information related to proposed jobs at the
22facility, shall be made publicly available on the Department's
23website.
24(Source: P.A. 102-669, eff. 11-16-21.)
 
25    (20 ILCS 686/25)

 

 

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1    Sec. 25. Review of application. The Department shall
2evaluate the extent to determine which projects will benefit
3the State. In making its recommendation that an applicant's
4application for credit should or should not be accepted, which
5shall occur within a reasonable time frame as determined by
6the nature of the application, the Department shall determine
7that all the following conditions exist:
8        (1) the applicant commits intends to make the required
9    investment in the State and intends to hire the required
10    number of full-time employees at competitive wages and
11    benefits relative to their sector, occupation, and region;
12        (2) the applicant's project is economically sound,
13    will benefit the people of the State by increasing
14    opportunities for high-quality employment (including for
15    displaced workers and individuals facing barriers to
16    employment), and will strengthen the economy of the State;
17        (3) awarding the credit will result in an overall
18    positive fiscal impact to the State, as certified by the
19    Department using the best available data; and
20        (4) the credit is not prohibited under this Act.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    (20 ILCS 686/30)
23    Sec. 30. Tax credit awards.
24    (a) Subject to the conditions set forth in this Act, a
25taxpayer is entitled to a credit against the tax imposed

 

 

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1pursuant to subsections (a) and (b) of Section 201 of the
2Illinois Income Tax Act for a taxable year beginning on or
3after January 1, 2025 if the taxpayer is awarded a credit by
4the Department in accordance with an agreement under this Act.
5The Department has authority to award credits under this Act
6on and after January 1, 2022.
7    (b) REV Illinois Credits. A taxpayer may receive a tax
8credit against the tax imposed under subsections (a) and (b)
9of Section 201 of the Illinois Income Tax Act, not to exceed
10the sum of (i) 75% of the incremental income tax attributable
11to new employees at the applicant's project and (ii) 10% of the
12training costs of the new employees. If the project is located
13in an underserved area or an energy transition area, then the
14amount of the credit may not exceed the sum of (i) 100% of the
15incremental income tax attributable to new employees at the
16applicant's project; and (ii) 10% of the training costs of the
17new employees. The percentage of training costs includable in
18the calculation may be increased by an additional 15% for
19training costs associated with new employees that are recent
20(2 years or less) graduates, certificate holders, or
21credential recipients from an institution of higher education
22in Illinois, or, if the training is provided by an institution
23of higher education in Illinois, the Clean Jobs Workforce
24Network Program, or an apprenticeship and training program
25located in Illinois and approved by and registered with the
26United States Department of Labor's Bureau of Apprenticeship

 

 

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1and Training. An applicant is also eligible for a training
2credit that shall not exceed 10% of the training costs of
3retained employees for the purpose of upskilling to meet the
4operational needs of the applicant or the REV Illinois
5Project. The percentage of training costs includable in the
6calculation shall not exceed a total of 25%. If an applicant
7agrees to hire the required number of new employees, then the
8maximum amount of the credit for that applicant may be
9increased by an amount not to exceed 25% of the incremental
10income tax attributable to retained employees at the
11applicant's project; provided that, in order to receive the
12increase for retained employees, the applicant must, if
13applicable, meet or exceed the statewide baseline. If the
14Project is in an underserved area or an energy transition
15area, the maximum amount of the credit attributable to
16retained employees for the applicant may be increased to an
17amount not to exceed 50% of the incremental income tax
18attributable to retained employees at the applicant's project;
19provided that, in order to receive the increase for retained
20employees, the applicant must meet or exceed the statewide
21baseline. REV Illinois Credits awarded may include credit
22earned for incremental income tax withheld and training costs
23incurred by the taxpayer beginning on or after January 1,
242022. Credits so earned and certified by the Department may be
25applied against the tax imposed by subsections (a) and (b) of
26Section 201 of the Illinois Income Tax Act for taxable years

 

 

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1beginning on or after January 1, 2025.
2    (c) REV Construction Jobs Credit. For construction wages
3associated with a project that qualified for a REV Illinois
4Credit under subsection (b), the taxpayer may receive a tax
5credit against the tax imposed under subsections (a) and (b)
6of Section 201 of the Illinois Income Tax Act in an amount
7equal to 50% of the incremental income tax attributable to
8construction wages paid in connection with construction of the
9project facilities, as a jobs credit for workers hired to
10construct the project.
11    The REV Construction Jobs Credit may not exceed 75% of the
12amount of the incremental income tax attributable to
13construction wages paid in connection with construction of the
14project facilities if the project is in an underserved area or
15an energy transition area.
16    (d) The Department shall certify to the Department of
17Revenue: (1) the identity of Taxpayers that are eligible for
18the REV Illinois Credit and REV Construction Jobs Credit; (2)
19the amount of the REV Illinois Credits and REV Construction
20Jobs Credits awarded in each calendar year; and (3) the amount
21of the REV Illinois Credit and REV Construction Jobs Credit
22claimed in each calendar year. REV Illinois Credits awarded
23may include credit earned for Incremental Income Tax withheld
24and Training Costs incurred by the Taxpayer beginning on or
25after January 1, 2022. Credits so earned and certified by the
26Department may be applied against the tax imposed by Section

 

 

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1201(a) and (b) of the Illinois Income Tax Act for taxable years
2beginning on or after January 1, 2025.
3    (e) Applicants seeking certification for a tax credits
4related to the construction of the project facilities in the
5State shall require the contractor to enter into a project
6labor agreement that conforms with the Project Labor
7Agreements Act.
8    (f) Any applicant issued a certificate for a tax credit or
9tax exemption under this Act must annually report to the
10Department the total project tax benefits received and the
11number, occupation, wages, and benefits of new employees.
12Reports are due no later than May 31 of each year and shall
13cover the previous calendar year. Reports shall be considered
14public records subject to disclosure under the Freedom of
15Information Act, including all financial information related
16to proposed jobs at the facility. The records shall be made
17publicly available on the Department's website. The first
18report is for the 2022 calendar year and is due no later than
19May 31, 2023.
20    (g) Nothing in this Act shall prohibit an award of credit
21to an applicant that uses a PEO if all other award criteria are
22satisfied.
23    (h) With respect to any portion of a REV Illinois Credit
24that is based on the incremental income tax attributable to
25new employees or retained employees, in lieu of the Credit
26allowed under this Act against the taxes imposed pursuant to

 

 

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1subsections (a) and (b) of Section 201 of the Illinois Income
2Tax Act, a taxpayer that otherwise meets the criteria set
3forth in this Section, the taxpayer may elect to claim the
4credit, on or after January 1, 2025, against its obligation to
5pay over withholding under Section 704A of the Illinois Income
6Tax Act. The election shall be made in the manner prescribed by
7the Department of Revenue and once made shall be irrevocable.
8(Source: P.A. 102-669, eff. 11-16-21.)
 
9    (20 ILCS 686/45)
10    Sec. 45. Contents of agreements with applicants.
11    (a) The Department shall enter into an agreement with an
12applicant that is awarded a credit under this Act. The
13agreement shall include all of the following:
14        (1) A detailed description of the project that is the
15    subject of the agreement, including the location and
16    amount of the investment and jobs created or retained.
17        (2) The duration of the credit, the first taxable year
18    for which the credit may be awarded, and the first taxable
19    year in which the credit may be used by the taxpayer.
20        (3) The credit amount that will be allowed for each
21    taxable year.
22        (4) For a project qualified under paragraphs (1), (2),
23    or (4) of subsection (c) of Section 20, a requirement that
24    the taxpayer shall maintain operations at the project
25    location a minimum number of years not to exceed 15. For

 

 

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

 

 

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

 

 

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

 

 

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1        (17) A provision stating that the Taxpayer must
2    provide the reports outlined in Sections 50 and 55 on or
3    before April 15 each year.
4        (18) A provision requiring the taxpayer to report
5    annually its contractual obligations or otherwise with a
6    recycling facility for its operations.
7        (19) Any other performance conditions or contract
8    provisions the Department determines are necessary or
9    appropriate.
10        (20) Each taxpayer under paragraph (1) of subsection
11    (c) of Section 20 above shall maintain labor neutrality
12    toward any union organizing campaign for any employees of
13    the taxpayer assigned to work on the premises of the REV
14    Illinois Project Site. This paragraph shall not apply to
15    an electric vehicle manufacturer, electric vehicle
16    component part manufacturer, electric vehicle power supply
17    manufacturer or any joint venture including an electric
18    vehicle manufacturer, electric vehicle component part
19    manufacturer, and electric vehicle power supply
20    manufacturer, who is subject to collective bargaining
21    agreement entered into prior to the taxpayer filing an
22    application pursuant to this Act.
23    (b) The Department shall post on its website the terms of
24each agreement entered into under this Act. Such information
25shall be posted within 10 days after entering into the
26agreement and must include the following:

 

 

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1        (1) the name of the taxpayer;
2        (2) the location of the project;
3        (3) the estimated value of the credit;
4        (4) the number of new employee jobs, along with their
5    wages and benefits, and, if applicable, number of retained
6    employee jobs at the project; and
7        (5) whether or not the project is in an underserved
8    area or energy transition area.
9(Source: P.A. 102-669, eff. 11-16-21.)
 
10    (20 ILCS 686/51 new)
11    Sec. 51. Severability. If any provision of this Act or its
12application to any person or circumstance is held invalid, the
13invalidity of that provision or application does not affect
14other provisions or applications of this Act that can be given
15effect without the invalid provision or application.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.