102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5460

 

Introduced 1/31/2022, by Rep. Ryan Spain

 

SYNOPSIS AS INTRODUCED:
 
New Act
20 ILCS 605/605-1027 new
30 ILCS 105/5.970 new
30 ILCS 105/5.971 new
30 ILCS 105/5.972 new
35 ILCS 5/229.5 new

    Creates the Illinois Biomanufacturing Act. Provides for the creation of the Illinois Biomanufacturing Institute. Provides for the Board of Directors of the Institute. Provides for the duties of the Institute. Provides for funding of the Institute. Provides Institute reporting requirements. Creates the Biomanufacturing Initiative Task Force. Provides purpose and duties of the Task Force. Provides for Task Force membership. Provides for meetings of the Task Force. Provides for administrative support for the Task Force. Provides Task Force reporting requirements. Creates the Biomanufacturing Equity Investment Fund, the Biomanufacturing Loan Fund, and the Biomanufacturing Grant Fund as special funds in the State treasury for specified purposes concerning investment in and funding of biomanufacturing centers. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides for tax credits for qualifying biomanufacturing centers. Provides further requirements concerning the issuance of the tax credit. Amends the State Finance Act to provide for specified special funds. Amends the Illinois Income Tax Act to provide for the biomanufacturing center tax credit. Defines terms.


LRB102 25473 RJF 34760 b

 

 

A BILL FOR

 

HB5460LRB102 25473 RJF 34760 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Illinois Biomanufacturing Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Biomanufacturing center" means a wholly enclosed facility
8that has the primary purpose of using biological processes,
9entirely carried out in-house within the center, to
10manufacture products to be sold in a marketplace, which
11contains tanks, boxes, or other sealed and enclosed spaces for
12biochemical production purposes. "Biomanufacturing center"
13includes any production facility that complies with North
14American Industry Classification System (NAICS) codes 325412
15and 325414. "Biomanufacturing center" does not include a space
16used as a greenhouse or other space used to grow plants, such
17as cannabis or salad greens, that could physically be grown
18outdoors.
19    "Department" means the Department of Commerce and Economic
20Opportunity.
21    "Institute" means the Illinois Manufacturing Institute
22established under this Act.
23    "Task Force" means the Biomanufacturing Initiative Task

 

 

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1Force established under this Act.
 
2    Section 10. Illinois Biomanufacturing Institute.
3    (a) There is hereby created the Illinois Biomanufacturing
4Institute. The Institute is hereby constituted a public
5instrumentality under the jurisdiction of the Department of
6Commerce and Economic Opportunity, and the exercise by the
7Institute of the powers conferred by this Act shall be
8considered to be the performance of an essential governmental
9function.
10    (b) The Institute shall be governed and its corporate
11powers exercised by a Board of Directors consisting of 7
12directors as follows: (i) the Director of Commerce and
13Economic Opportunity, or his or her designee; (ii) the
14President of the University of Illinois, or his or her
15designee; and (iii) 5 persons appointed by the Governor, with
16a background in biomanufacturing and biotechnology and
17representing the biomanufacturing industry.
18    The 5 directors appointed by the Governor shall constitute
19a quorum and the affirmative vote of a majority of directors
20present at a duly called meeting if a quorum is present shall
21be necessary for any action to be taken by the Board. Any
22action required or permitted to be taken at a meeting of the
23directors may be taken without a meeting if all of the
24directors' consent in writing to such action and such written
25consent is filed with the records of the minutes of the

 

 

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1meetings of the Board. Such consent shall be treated for all
2purposes as a vote at a meeting.
3    The members of the Board shall serve without compensation,
4but each member shall be entitled to reimbursement for his
5actual and necessary expenses incurred in the performance of
6his official duties.
7    (c) The Institute shall be located in or near a major
8metropolitan area in this State with historic ties to
9biomanufacturing, and in a location that is easily accessible
10by common modes of transportation.
11    (d) The Institute shall cooperate with all of the
12tax-eligible biomanufacturing centers of Illinois, with the
13goal of making these centers into incubators of local job
14creation throughout the State. The Institute is also
15encouraged, but not required, to cooperate with all Illinois
16institutions of higher education, including faculties of
17biochemistry and faculties of medical research, to develop
18cooperative programs of Illinois-based research, development,
19and production.
20    (e) Subject to appropriation, the Institute shall receive
21funding for its start-up and operational purposes from funds
22made available for its purposes by the General Assembly, with
23the understanding that the Institute would be mandated to take
24steps toward self-funding with the goal of becoming an
25autonomous, grant-supported think tank based in Illinois.
26    (f) The Institute shall provide an annual report to the

 

 

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1Governor and the General Assembly concerning its operations
2and any other information it deems relevant.
 
3    Section 15. Biomanufacturing Initiative Task Force.
4    (a) There is hereby created the Biomanufacturing
5Initiative Task Force. The Task Force shall represent the
6interests of institutions of higher education and the
7biomanufacturing industry, and advise the Institute on
8biomanufacturing-related research and development and provide
9recommendations.
10    (b) The Task Force shall, at a minimum, consist of members
11appointed by the Governor as follows: (i) a representative of
12Illinois universities; (ii) a representative of a public or
13private medical school; (iii) a representative of the Illinois
14biomanufacturing industry; and (iv) any other member that the
15Governor deems necessary and proper for the purposes of the
16Task Force. The Director of Commerce and Economic Opportunity,
17or his or her designee, shall also serve as a member of the
18Task Force. The Governor shall appoint a Chair for the Task
19Force.
20    (c) The Task Force shall meet at least quarterly for the
21purpose of its duties under this Section.
22    (d) Members of the Task Force shall serve without
23compensation.
24    (e) The Department of Commerce and Economic Opportunity
25shall provide administrative and other support to the Task

 

 

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1Force.
2    (f) The Task Force shall at least annually, and as
3otherwise frequently as it deems necessary, issue a report to
4the Institute, the Governor, and the General Assembly
5detailing its advisements on biomanufacturing-related research
6and development, and any related recommendations.
 
7    Section 20. Biomanufacturing Equity Investment Fund. The
8Biomanufacturing Equity Investment Fund is created as a
9special fund in the State treasury and may receive funds from
10any source, public or private, including moneys appropriated
11for use by the Department of Commerce and Economic
12Opportunity. Subject to appropriation, moneys in the Fund
13shall be used by the Department and the Institute to make
14qualified equity investments in Illinois-based
15biomanufacturing centers.
 
16    Section 25. Biomanufacturing Loan Fund. The
17Biomanufacturing Loan Fund is created as a special fund in the
18State treasury and may receive funds from any source, public
19or private, including moneys appropriated for use by the
20Department of Commerce and Economic Opportunity. Subject to
21appropriation, moneys in the Fund shall be used by the
22Department and the Institute to make qualified loans to
23Illinois-based biomanufacturing centers for the start-up and
24operation of such centers, and for any other related purposes

 

 

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1as determined by the Department. The repayment of loans issued
2under this Section shall be as prescribed by the Department.
 
3    Section 30. Biomanufacturing Grant Fund. The
4Biomanufacturing Grant Fund is created as a special fund in
5the State treasury and may receive funds from any source,
6public or private, including moneys appropriated for use by
7the Department of Commerce and Economic Opportunity. Subject
8to appropriation, moneys in the Fund shall be used by the
9Department and the Institute to make grants to Illinois-based
10biomanufacturing centers to stimulate increased financing for
11biomanufacturing technology, research, and development, and
12for any other related purposes as determined by the
13Department.
 
14    Section 35. Rules. The Department shall adopt all rules
15necessary for the implementation of this Act.
 
16    Section 100. The Department of Commerce and Economic
17Opportunity Law of the Civil Administrative Code of Illinois
18is amended by adding Section 605-1027 as follows:
 
19    (20 ILCS 605/605-1027 new)
20    Sec. 605-1027. Biomanufacturing center investment.
21    (a) The Department shall issue a credit certification
22against the taxes imposed under subsections (a) and (b) of

 

 

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1Section 201 of the Illinois Income Tax Act to qualifying
2biomanufacturing centers. For taxable years beginning on or
3after January 1, 2023, the Department shall award credits, in
4an amount as determined by the Department, against the taxes
5imposed under subsections (a) and (b) of Section 201 of the
6Illinois Income Tax Act as provided in Section 229.5 of the
7Illinois Income Tax Act.
8    (b) For purposes of this Section:
9    "Biomanufacturing center" means a wholly enclosed facility
10that has the primary purpose of using biological processes,
11entirely carried out in-house within the center, to
12manufacture products to be sold in a marketplace, which
13contains tanks, boxes, or other sealed and enclosed spaces for
14biochemical production purposes. "Biomanufacturing center"
15includes any production facility that complies with North
16American Industry Classification System (NAICS) codes 325412
17and 325414. "Biomanufacturing center" does not include a space
18used as a greenhouse or other space used to grow plants, such
19as cannabis or salad greens, that could physically be grown
20outdoors.
21    "Full-time equivalent job" means a job in which the new
22employee works for the owner, operator, contractor, or tenant
23of a biomanufacturing center or for a corporation under
24contract with the owner, operator or tenant of a center at a
25rate of at least 35 hours per week.
26    "Qualifying biomanufacturing center" means a new or

 

 

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1existing biomanufacturing center that:
2        (1) is located in the State of Illinois;
3        (2) makes or has made a capital investment of at least
4    $2,000,000 collectively over a 2-year period;
5        (3) results in the creation of at least 20 full-time
6    or full-time equivalent jobs over a period of 5 years.
7    These jobs must have a total compensation equal to or
8    greater than 120% of the average wage paid to full-time
9    employees in the county where the data center is located,
10    as determined by the U.S. Bureau of Labor Statistics; and
11        (4) within 2 years after being placed in service,
12    certifies to the Department that it is carbon neutral or
13    has attained green building standards certification from a
14    Department-approved entity.
15    (c) Biomanufacturing centers seeking a tax credit
16certification shall apply to the Department in the manner
17specified by the Department. The Department and any center
18seeking the certification, must enter into a memorandum of
19understanding that at a minimum provides:
20        (1) the details for determining the amount of capital
21    investment to be made;
22        (2) the number of new jobs created;
23        (3) the timeline for achieving the capital investment
24    and new job goals;
25        (4) the repayment obligation should those goals not be
26    achieved and any conditions under which repayment by the

 

 

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1    qualifying biomanufacturing center will be required; and
2        (5) other provisions as deemed necessary by the
3    Department.
4    (d) Any qualifying biomanufacturing center issued a tax
5credit certification under this Section must annually submit a
6private, sealed report to the Department on its operations.
7The Department shall then issue an annual public report to the
8Governor and the General Assembly concerning the program
9established under this Section. The public report issued by
10the Department shall, at a minimum, contain cumulative data
11sets that will mask the specific data submitted by each
12biomanufacturing center about its own operations.
13    (e) In administering the requirements of this Section, the
14Department shall consult with the Illinois Biomanufacturing
15Institute and the Biomanufacturing Initiative Task Force
16created under the Illinois Biomanufacturing Act.
17    (f) The Department shall not issue any new tax credit
18certification under the provisions of this Section after tax
19year 2040, unless the General Assembly otherwise approves an
20extension of the tax credit provided under this Section.
21    (g) The Department shall adopt rules to implement and
22administer this Section.
 
23    Section 105. The State Finance Act is amended by adding
24Sections 5.970, 5.971, and 5.972 as follows:
 

 

 

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1    (30 ILCS 105/5.970 new)
2    Sec. 5.970. The Biomanufacturing Equity Investment Fund.
 
3    (30 ILCS 105/5.971 new)
4    Sec. 5.971. The Biomanufacturing Loan Fund.
 
5    (30 ILCS 105/5.972 new)
6    Sec. 5.972. The Biomanufacturing Grant Fund.
 
7    Section 110. The Illinois Income Tax Act is amended by
8adding Section 229.5 as follows:
 
9    (35 ILCS 5/229.5 new)
10    Sec. 229.5. Biomanufacturing center tax credit.
11    (a) A taxpayer who has been awarded a credit by the
12Department of Commerce and Economic Opportunity under Section
13605-1027 of the Department of Commerce and Economic
14Opportunity Law of the Civil Administrative Code of Illinois
15is entitled to a credit against the taxes imposed under
16subsections (a) and (b) of Section 201 of this Act in an amount
17determined under that Act by the Department of Commerce and
18Economic Opportunity.
19    (b) If the taxpayer is a partnership, a Subchapter S
20corporation, or a limited liability company that has elected
21partnership tax treatment, the credit shall be allowed to the
22partners, shareholders, or members in accordance with the

 

 

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1determination of income and distributive share of income under
2Sections 702 and 704 and subchapter S of the Internal Revenue
3Code, as applicable.
4    (c) In no event shall a credit under this Section reduce
5the taxpayer's liability to less than zero. If the amount of
6the credit exceeds the tax liability for the year, then the
7excess credit shall be refunded to the taxpayer.
8    (d) No credit shall be allowed with respect to any
9certification for any taxable year ending after the revocation
10of the certification by the Department of Commerce and
11Economic Opportunity. Upon receiving notification by the
12Department of Commerce and Economic Opportunity of the
13revocation of certification, the Department shall notify the
14taxpayer that no credit is allowed for any taxable year ending
15after the revocation date, as stated in such notification. If
16any credit has been allowed with respect to a certification
17for a taxable year ending after the revocation date, any
18refund paid to the taxpayer for that taxable year shall, to the
19extent of that credit allowed, be an erroneous refund within
20the meaning of Section 912 of this Act.
21    (e) This Section is exempt from the provisions of Section
22250 of this Act.
23    (f) The Department, in cooperation with the Department of
24Commerce and Economic Opportunity, shall adopt rules to
25enforce and administer this Section.