HB0817 EngrossedLRB103 04410 HLH 49416 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1115 as follows:
 
7    (20 ILCS 605/605-1115 new)
8    Sec. 605-1115. Quantum computing campuses.
9    (a) As used in this Section:
10    "Data center" means a facility: (1) whose primary services
11are the storage, management, and processing of digital data;
12and (2) that is used to house (A) computer and network systems,
13including associated components such as servers, network
14equipment and appliances, telecommunications, and data storage
15systems, (B) systems for monitoring and managing
16infrastructure performance, (C) Internet-related equipment and
17services, (D) data communications connections, (E)
18environmental controls, (F) fire protection systems, and (G)
19security systems and services.
20    "Full-time equivalent job" means a job in which an
21employee works for a tenant of the quantum campus at a rate of
22at least 35 hours per week. Vacations, paid holidays, and sick
23time are included in this computation. Overtime is not

 

 

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1considered a part of regular hours.
2    "Quantum computing campus" or "campus" is a contiguous
3area located in the State of Illinois that is designated by the
4Department as a quantum computing campus in order to support
5the demand for quantum computing research, development, and
6implementation for practical use. A quantum computing campus
7may include educational intuitions, nonprofit research and
8development organizations, and for-profit organizations
9serving as anchor tenants and joining tenants that, with
10approval from the Department, may change. Tenants located at
11the campus shall have direct and supporting roles in quantum
12computing activities. Eligible tenants include quantum
13computer operators and research facilities, data centers,
14manufacturers and assemblers of quantum computers and
15component parts, cryogenic or refrigeration facilities, and
16other facilities determined, by industry and academic leaders,
17to be fundamental to the research and development of quantum
18computing for practical solutions. Quantum computing shall
19include the research, development, and use of computing
20methods that generate and manipulate quantum bits in a
21controlled quantum state. This includes the use of photons,
22semiconductors, superconductors, trapped ions, and other
23industry and academically regarded methods for simulating
24quantum bits. Additionally, a quantum campus shall meet the
25following criteria:
26        (1) the campus must comprise a minimum of one-half

 

 

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1    square mile and not more than 4 square miles;
2        (2) the campus must contain tenants that demonstrate a
3    substantial plan for using the designation to encourage
4    participation by organizations owned by minorities, women,
5    and persons with disabilities, as those terms are defined
6    in the Business Enterprise for Minorities, Women, and
7    Persons with Disabilities Act, and the hiring of
8    minorities, women, and persons with disabilities;
9        (3) upon being placed in service, within 60 months
10    after designation or incorporation into a campus, the
11    owners of property located in a campus shall certify to
12    the Department that the property is carbon neutral or has
13    attained certification under one or more of the following
14    green building standards:
15            (A) BREEAM for New Construction or BREEAM, In-Use;
16            (B) ENERGY STAR;
17            (C) Envision;
18            (D) ISO 50001-energy management;
19            (E) LEED for Building Design and Construction, or
20        LEED for Operations and Maintenance;
21            (F) Green Globes for New Construction, or Green
22        Globes for Existing Buildings;
23            (G) UL 3223; or
24            (H) an equivalent program approved by the
25        Department.
26    (b) Tenants located in a designated quantum computing

 

 

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1campus shall qualify for the following exemptions and credits:
2        (1) the Department may certify a taxpayer for an
3    exemption from any State or local use tax or retailers'
4    occupation tax on building materials that will be
5    incorporated into real estate at a quantum computing
6    campus;
7        (2) an exemption from the charges imposed under
8    Section 9-222 of the Public Utilities Act, Section 5-10 of
9    the Gas Use Tax Law, Section 2-4 of the Electricity Excise
10    Tax Law, Section 2 of the Telecommunications Excise Tax
11    Act, Section 10 of the Telecommunications Infrastructure
12    Maintenance Fee Act, and Section 5-7 of the Simplified
13    Municipal Telecommunications Tax Act; and
14        (3) a credit against the taxes imposed under
15    subsections (a) and (b) of Section 201 of the Illinois
16    Income Tax Act as provided in Section 241 of the Illinois
17    Income Tax Act.
18    (c) Certificates of exemption and credit certificates
19under this Section shall be issued by the Department. Upon
20certification by the Department under this Section, the
21Department shall notify the Department of Revenue of the
22certification. The exemption status shall take effect within 3
23months after certification of the taxpayer and notice to the
24Department of Revenue by the Department.
25    (d) Entities seeking to form a quantum computing campus
26must apply to the Department in the manner specified by the

 

 

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1Department. Entities seeking to join an established campus
2must apply for an amendment to the existing campus. This
3application for amendment must be submitted to the Department
4with support from other campus members.
5    The Department shall determine the duration of
6certificates of exemption awarded under this Act. The duration
7of the certificates of exemption may not exceed 20 calendar
8years and one renewal for an additional 20 years.
9    The Department and any tenant located in a quantum
10computing campus seeking the benefits under this Section must
11enter into a memorandum of understanding that, at a minimum,
12provides:
13        (1) the details for determining the amount of capital
14    investment to be made;
15        (2) the number of new jobs created;
16        (3) the timeline for achieving the capital investment
17    and new job goals;
18        (4) the repayment obligation should those goals not be
19    achieved and any conditions under which repayment by the
20    tenant or tenants claiming the exemption shall be
21    required;
22        (5) the duration of the exemptions; and
23        (6) other provisions as deemed necessary by the
24    Department.
25    The Department shall, within 10 days after the
26designation, send a letter of notification to each member of

 

 

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1the General Assembly whose legislative district or
2representative district contains all or part of the designated
3area.
4    (e) Beginning on July 1, 2025, and each year thereafter,
5the Department shall annually report to the Governor and the
6General Assembly on the outcomes and effectiveness of this
7amendatory Act of the 103rd General Assembly. The report shall
8include the following:
9        (1) the names of each tenant located within the
10    quantum computing campus;
11        (2) the location of each quantum computing campus;
12        (3) the estimated value of the credits to be issued to
13    quantum computing campus tenants;
14        (4) the number of new jobs and, if applicable,
15    retained jobs pledged at each quantum computing campus;
16    and
17        (5) whether or not the quantum computing campus is
18    located in an underserved area, an energy transition zone,
19    or an opportunity zone.
20    (f) Tenants at the quantum computing campus seeking a
21certificate of exemption related to the construction of
22required facilities shall require the contractor and all
23subcontractors to:
24        (1) comply with the requirements of Section 30-22 of
25    the Illinois Procurement Code as those requirements apply
26    to responsible bidders and to present satisfactory

 

 

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1    evidence of that compliance to the Department; and
2        (2) enter into a project labor agreement submitted to
3    the Department.
4    (g) The Department shall not issue any new certificates of
5exemption under the provisions of this Section after July 1,
62030. This sunset shall not affect any existing certificates
7of exemption in effect on July 1, 2030.
8    (h) The Department shall adopt rules to implement and
9administer this Section.
 
10    Section 10. The Illinois Enterprise Zone Act is amended by
11changing Sections 5.5 and 13 as follows:
 
12    (20 ILCS 655/5.5)  (from Ch. 67 1/2, par. 609.1)
13    Sec. 5.5. High Impact Business.
14    (a) In order to respond to unique opportunities to assist
15in the encouragement, development, growth, and expansion of
16the private sector through large scale investment and
17development projects, the Department is authorized to receive
18and approve applications for the designation of "High Impact
19Businesses" in Illinois, for an initial term of 20 years with
20an option for renewal for a term not to exceed 20 years,
21subject to the following conditions:
22        (1) such applications may be submitted at any time
23    during the year;
24        (2) such business is not located, at the time of

 

 

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1    designation, in an enterprise zone designated pursuant to
2    this Act, except for grocery stores, as defined in the
3    Grocery Initiative Act;
4        (3) the business intends to do, commits to do, or is
5    one or more of the following:
6            (A) the business intends to make a minimum
7        investment of $12,000,000 which will be placed in
8        service in qualified property and intends to create
9        500 full-time equivalent jobs at a designated location
10        in Illinois or intends to make a minimum investment of
11        $30,000,000 which will be placed in service in
12        qualified property and intends to retain 1,500
13        full-time retained jobs at a designated location in
14        Illinois. The terms "placed in service" and "qualified
15        property" have the same meanings as described in
16        subsection (h) of Section 201 of the Illinois Income
17        Tax Act; or
18            (B) the business intends to establish a new
19        electric generating facility at a designated location
20        in Illinois. "New electric generating facility", for
21        purposes of this Section, means a newly constructed
22        electric generation plant or a newly constructed
23        generation capacity expansion at an existing electric
24        generation plant, including the transmission lines and
25        associated equipment that transfers electricity from
26        points of supply to points of delivery, and for which

 

 

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1        such new foundation construction commenced not sooner
2        than July 1, 2001. Such facility shall be designed to
3        provide baseload electric generation and shall operate
4        on a continuous basis throughout the year; and (i)
5        shall have an aggregate rated generating capacity of
6        at least 1,000 megawatts for all new units at one site
7        if it uses natural gas as its primary fuel and
8        foundation construction of the facility is commenced
9        on or before December 31, 2004, or shall have an
10        aggregate rated generating capacity of at least 400
11        megawatts for all new units at one site if it uses coal
12        or gases derived from coal as its primary fuel and
13        shall support the creation of at least 150 new
14        Illinois coal mining jobs, or (ii) shall be funded
15        through a federal Department of Energy grant before
16        December 31, 2010 and shall support the creation of
17        Illinois coal mining coal-mining jobs, or (iii) shall
18        use coal gasification or integrated
19        gasification-combined cycle units that generate
20        electricity or chemicals, or both, and shall support
21        the creation of Illinois coal mining coal-mining jobs.
22        The term "placed in service" has the same meaning as
23        described in subsection (h) of Section 201 of the
24        Illinois Income Tax Act; or
25            (B-5) the business intends to establish a new
26        gasification facility at a designated location in

 

 

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1        Illinois. As used in this Section, "new gasification
2        facility" means a newly constructed coal gasification
3        facility that generates chemical feedstocks or
4        transportation fuels derived from coal (which may
5        include, but are not limited to, methane, methanol,
6        and nitrogen fertilizer), that supports the creation
7        or retention of Illinois coal mining coal-mining jobs,
8        and that qualifies for financial assistance from the
9        Department before December 31, 2010. A new
10        gasification facility does not include a pilot project
11        located within Jefferson County or within a county
12        adjacent to Jefferson County for synthetic natural gas
13        from coal; or
14            (C) the business intends to establish production
15        operations at a new coal mine, re-establish production
16        operations at a closed coal mine, or expand production
17        at an existing coal mine at a designated location in
18        Illinois not sooner than July 1, 2001; provided that
19        the production operations result in the creation of
20        150 new Illinois coal mining jobs as described in
21        subdivision (a)(3)(B) of this Section, and further
22        provided that the coal extracted from such mine is
23        utilized as the predominant source for a new electric
24        generating facility. The term "placed in service" has
25        the same meaning as described in subsection (h) of
26        Section 201 of the Illinois Income Tax Act; or

 

 

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1            (D) the business intends to construct new
2        transmission facilities or upgrade existing
3        transmission facilities at designated locations in
4        Illinois, for which construction commenced not sooner
5        than July 1, 2001. For the purposes of this Section,
6        "transmission facilities" means transmission lines
7        with a voltage rating of 115 kilovolts or above,
8        including associated equipment, that transfer
9        electricity from points of supply to points of
10        delivery and that transmit a majority of the
11        electricity generated by a new electric generating
12        facility designated as a High Impact Business in
13        accordance with this Section. The term "placed in
14        service" has the same meaning as described in
15        subsection (h) of Section 201 of the Illinois Income
16        Tax Act; or
17            (E) the business intends to establish a new wind
18        power facility at a designated location in Illinois.
19        For purposes of this Section, "new wind power
20        facility" means a newly constructed electric
21        generation facility, a newly constructed expansion of
22        an existing electric generation facility, or the
23        replacement of an existing electric generation
24        facility, including the demolition and removal of an
25        electric generation facility irrespective of whether
26        it will be replaced, placed in service or replaced on

 

 

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1        or after July 1, 2009, that generates electricity
2        using wind energy devices, and such facility shall be
3        deemed to include any permanent structures associated
4        with the electric generation facility and all
5        associated transmission lines, substations, and other
6        equipment related to the generation of electricity
7        from wind energy devices. For purposes of this
8        Section, "wind energy device" means any device, with a
9        nameplate capacity of at least 0.5 megawatts, that is
10        used in the process of converting kinetic energy from
11        the wind to generate electricity; or
12            (E-5) the business intends to establish a new
13        utility-scale solar facility at a designated location
14        in Illinois. For purposes of this Section, "new
15        utility-scale solar power facility" means a newly
16        constructed electric generation facility, or a newly
17        constructed expansion of an existing electric
18        generation facility, placed in service on or after
19        July 1, 2021, that (i) generates electricity using
20        photovoltaic cells and (ii) has a nameplate capacity
21        that is greater than 5,000 kilowatts, and such
22        facility shall be deemed to include all associated
23        transmission lines, substations, energy storage
24        facilities, and other equipment related to the
25        generation and storage of electricity from
26        photovoltaic cells; or

 

 

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1            (F) the business commits to (i) make a minimum
2        investment of $500,000,000, which will be placed in
3        service in a qualified property, (ii) create 125
4        full-time equivalent jobs at a designated location in
5        Illinois, (iii) establish a fertilizer plant at a
6        designated location in Illinois that complies with the
7        set-back standards as described in Table 1: Initial
8        Isolation and Protective Action Distances in the 2012
9        Emergency Response Guidebook published by the United
10        States Department of Transportation, (iv) pay a
11        prevailing wage for employees at that location who are
12        engaged in construction activities, and (v) secure an
13        appropriate level of general liability insurance to
14        protect against catastrophic failure of the fertilizer
15        plant or any of its constituent systems; in addition,
16        the business must agree to enter into a construction
17        project labor agreement including provisions
18        establishing wages, benefits, and other compensation
19        for employees performing work under the project labor
20        agreement at that location; for the purposes of this
21        Section, "fertilizer plant" means a newly constructed
22        or upgraded plant utilizing gas used in the production
23        of anhydrous ammonia and downstream nitrogen
24        fertilizer products for resale; for the purposes of
25        this Section, "prevailing wage" means the hourly cash
26        wages plus fringe benefits for training and

 

 

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1        apprenticeship programs approved by the U.S.
2        Department of Labor, Bureau of Apprenticeship and
3        Training, health and welfare, insurance, vacations and
4        pensions paid generally, in the locality in which the
5        work is being performed, to employees engaged in work
6        of a similar character on public works; this paragraph
7        (F) applies only to businesses that submit an
8        application to the Department within 60 days after
9        July 25, 2013 (the effective date of Public Act
10        98-109); or
11            (G) the business intends to establish a new
12        cultured cell material food production facility at a
13        designated location in Illinois. As used in this
14        paragraph (G):
15            "Cultured cell material food production facility"
16        means a facility (i) at which cultured animal cell
17        food is developed using animal cell culture
18        technology, (ii) at which production processes occur
19        that include the establishment of cell lines and cell
20        banks, manufacturing controls, and all components and
21        inputs, and (iii) that complies with all existing
22        registrations, inspections, licensing, and approvals
23        from all applicable and participating State and
24        federal food agencies, including the Department of
25        Agriculture, the Department of Public Health, and the
26        United States Food and Drug Administration, to ensure

 

 

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1        that all food production is safe and lawful under
2        provisions of the Federal Food, Drug and Cosmetic Act
3        related to the development, production, and storage of
4        cultured animal cell food.
5            "New cultured cell material food production
6        facility" means a newly constructed cultured cell
7        material food production facility that is placed in
8        service on or after June 7, 2023 (the effective date of
9        Public Act 103-9) this amendatory Act of the 103rd
10        General Assembly or a newly constructed expansion of
11        an existing cultured cell material food production
12        facility, in a controlled environment, when the
13        improvements are placed in service on or after June 7,
14        2023 (the effective date of Public Act 103-9) this
15        amendatory Act of the 103rd General Assembly; or and
16            (H) (G) the business is an existing or planned
17        grocery store, as that term is defined in Section 5 of
18        the Grocery Initiative Act, and receives financial
19        support under that Act within the 10 years before
20        submitting its application under this Act; or and
21            (I) the business intends to establish a new
22        battery energy storage solution facility at a
23        designated location in Illinois. As used in this
24        paragraph (I):
25            "New battery energy storage solution facility"
26        means a newly constructed battery energy storage

 

 

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1        facility, a newly constructed expansion of an existing
2        battery energy storage facility, or the replacement of
3        an existing battery energy storage facility that
4        stores electricity using battery devices and other
5        means, and such facility shall be deemed to include
6        any permanent structures associated with the battery
7        energy storage facility and all associated
8        transmission lines, substations, and other equipment
9        related to the storage and transmission of electric
10        power that has a capacity of not less than 100 megawatt
11        and storage capability of not less than 200 megawatt
12        hours of energy; and
13        (4) no later than 90 days after an application is
14    submitted, the Department shall notify the applicant of
15    the Department's determination of the qualification of the
16    proposed High Impact Business under this Section.
17    (b) Businesses designated as High Impact Businesses
18pursuant to subdivision (a)(3)(A) of this Section shall
19qualify for the credits and exemptions described in the
20following Acts: Section 9-222 and Section 9-222.1A of the
21Public Utilities Act, subsection (h) of Section 201 of the
22Illinois Income Tax Act, and Section 1d of the Retailers'
23Occupation Tax Act; provided that these credits and exemptions
24described in these Acts shall not be authorized until the
25minimum investments set forth in subdivision (a)(3)(A) of this
26Section have been placed in service in qualified properties

 

 

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1and, in the case of the exemptions described in the Public
2Utilities Act and Section 1d of the Retailers' Occupation Tax
3Act, the minimum full-time equivalent jobs or full-time
4retained jobs set forth in subdivision (a)(3)(A) of this
5Section have been created or retained. Businesses designated
6as High Impact Businesses under this Section shall also
7qualify for the exemption described in Section 5l of the
8Retailers' Occupation Tax Act. The credit provided in
9subsection (h) of Section 201 of the Illinois Income Tax Act
10shall be applicable to investments in qualified property as
11set forth in subdivision (a)(3)(A) of this Section.
12    (b-5) Businesses designated as High Impact Businesses
13pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
14(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
15qualify for the credits and exemptions described in the
16following Acts: Section 51 of the Retailers' Occupation Tax
17Act, Section 9-222 and Section 9-222.1A of the Public
18Utilities Act, and subsection (h) of Section 201 of the
19Illinois Income Tax Act; however, the credits and exemptions
20authorized under Section 9-222 and Section 9-222.1A of the
21Public Utilities Act, and subsection (h) of Section 201 of the
22Illinois Income Tax Act shall not be authorized until the new
23electric generating facility, the new gasification facility,
24the new transmission facility, the new, expanded, or reopened
25coal mine, or the new cultured cell material food production
26facility, or the existing or planned grocery store is

 

 

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1operational, except that a new electric generating facility
2whose primary fuel source is natural gas is eligible only for
3the exemption under Section 5l of the Retailers' Occupation
4Tax Act.
5    (b-6) Businesses designated as High Impact Businesses
6pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
7Section shall qualify for the exemptions described in Section
85l of the Retailers' Occupation Tax Act; any business so
9designated as a High Impact Business being, for purposes of
10this Section, a "Wind Energy Business".
11    (b-7) Beginning on January 1, 2021, businesses designated
12as High Impact Businesses by the Department shall qualify for
13the High Impact Business construction jobs credit under
14subsection (h-5) of Section 201 of the Illinois Income Tax Act
15if the business meets the criteria set forth in subsection (i)
16of this Section. The total aggregate amount of credits awarded
17under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
18shall not exceed $20,000,000 in any State fiscal year.
19    (c) High Impact Businesses located in federally designated
20foreign trade zones or sub-zones are also eligible for
21additional credits, exemptions and deductions as described in
22the following Acts: Section 9-221 and Section 9-222.1 of the
23Public Utilities Act; and subsection (g) of Section 201, and
24Section 203 of the Illinois Income Tax Act.
25    (d) Except for businesses contemplated under subdivision
26(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this

 

 

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1Section, existing Illinois businesses which apply for
2designation as a High Impact Business must provide the
3Department with the prospective plan for which 1,500 full-time
4retained jobs would be eliminated in the event that the
5business is not designated.
6    (e) Except for new businesses contemplated under
7subdivision (a)(3)(E), or subdivision (a)(3)(G), or
8subdivision (a)(3)(H) of this Section, new proposed facilities
9which apply for designation as High Impact Business must
10provide the Department with proof of alternative non-Illinois
11sites which would receive the proposed investment and job
12creation in the event that the business is not designated as a
13High Impact Business.
14    (f) Except for businesses contemplated under subdivision
15(a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
16of this Section, in the event that a business is designated a
17High Impact Business and it is later determined after
18reasonable notice and an opportunity for a hearing as provided
19under the Illinois Administrative Procedure Act, that the
20business would have placed in service in qualified property
21the investments and created or retained the requisite number
22of jobs without the benefits of the High Impact Business
23designation, the Department shall be required to immediately
24revoke the designation and notify the Director of the
25Department of Revenue who shall begin proceedings to recover
26all wrongfully exempted State taxes with interest. The

 

 

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1business shall also be ineligible for all State funded
2Department programs for a period of 10 years.
3    (g) The Department shall revoke a High Impact Business
4designation if the participating business fails to comply with
5the terms and conditions of the designation.
6    (h) Prior to designating a business, the Department shall
7provide the members of the General Assembly and Commission on
8Government Forecasting and Accountability with a report
9setting forth the terms and conditions of the designation and
10guarantees that have been received by the Department in
11relation to the proposed business being designated.
12    (i) High Impact Business construction jobs credit.
13Beginning on January 1, 2021, a High Impact Business may
14receive a tax credit against the tax imposed under subsections
15(a) and (b) of Section 201 of the Illinois Income Tax Act in an
16amount equal to 50% of the amount of the incremental income tax
17attributable to High Impact Business construction jobs credit
18employees employed in the course of completing a High Impact
19Business construction jobs project. However, the High Impact
20Business construction jobs credit may equal 75% of the amount
21of the incremental income tax attributable to High Impact
22Business construction jobs credit employees if the High Impact
23Business construction jobs credit project is located in an
24underserved area.
25    The Department shall certify to the Department of Revenue:
26(1) the identity of taxpayers that are eligible for the High

 

 

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1Impact Business construction jobs credit; and (2) the amount
2of High Impact Business construction jobs credits that are
3claimed pursuant to subsection (h-5) of Section 201 of the
4Illinois Income Tax Act in each taxable year. Any business
5entity that receives a High Impact Business construction jobs
6credit shall maintain a certified payroll pursuant to
7subsection (j) of this Section.
8    As used in this subsection (i):
9    "High Impact Business construction jobs credit" means an
10amount equal to 50% (or 75% if the High Impact Business
11construction project is located in an underserved area) of the
12incremental income tax attributable to High Impact Business
13construction job employees. The total aggregate amount of
14credits awarded under the Blue Collar Jobs Act (Article 20 of
15Public Act 101-9) shall not exceed $20,000,000 in any State
16fiscal year
17    "High Impact Business construction job employee" means a
18laborer or worker who is employed by a an Illinois contractor
19or subcontractor in the actual construction work on the site
20of a High Impact Business construction job project.
21    "High Impact Business construction jobs project" means
22building a structure or building or making improvements of any
23kind to real property, undertaken and commissioned by a
24business that was designated as a High Impact Business by the
25Department. The term "High Impact Business construction jobs
26project" does not include the routine operation, routine

 

 

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1repair, or routine maintenance of existing structures,
2buildings, or real property.
3    "Incremental income tax" means the total amount withheld
4during the taxable year from the compensation of High Impact
5Business construction job employees.
6    "Underserved area" means a geographic area that meets one
7or more of the following conditions:
8        (1) the area has a poverty rate of at least 20%
9    according to the latest American Community Survey;
10        (2) 35% or more of the families with children in the
11    area are living below 130% of the poverty line, according
12    to the latest American Community Survey;
13        (3) at least 20% of the households in the area receive
14    assistance under the Supplemental Nutrition Assistance
15    Program (SNAP); or
16        (4) the area has an average unemployment rate, as
17    determined by the Illinois Department of Employment
18    Security, that is more than 120% of the national
19    unemployment average, as determined by the U.S. Department
20    of Labor, for a period of at least 2 consecutive calendar
21    years preceding the date of the application.
22    (j) (Blank). Each contractor and subcontractor who is
23engaged in and executing a High Impact Business Construction
24jobs project, as defined under subsection (i) of this Section,
25for a business that is entitled to a credit pursuant to
26subsection (i) of this Section shall:

 

 

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1        (1) make and keep, for a period of 5 years from the
2    date of the last payment made on or after June 5, 2019 (the
3    effective date of Public Act 101-9) on a contract or
4    subcontract for a High Impact Business Construction Jobs
5    Project, records for all laborers and other workers
6    employed by the contractor or subcontractor on the
7    project; the records shall include:
8            (A) the worker's name;
9            (B) the worker's address;
10            (C) the worker's telephone number, if available;
11            (D) the worker's social security number;
12            (E) the worker's classification or
13        classifications;
14            (F) the worker's gross and net wages paid in each
15        pay period;
16            (G) the worker's number of hours worked each day;
17            (H) the worker's starting and ending times of work
18        each day;
19            (I) the worker's hourly wage rate;
20            (J) the worker's hourly overtime wage rate;
21            (K) the worker's race and ethnicity; and
22            (L) the worker's gender;
23        (2) no later than the 15th day of each calendar month,
24    provide a certified payroll for the immediately preceding
25    month to the taxpayer in charge of the High Impact
26    Business construction jobs project; within 5 business days

 

 

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1    after receiving the certified payroll, the taxpayer shall
2    file the certified payroll with the Department of Labor
3    and the Department of Commerce and Economic Opportunity; a
4    certified payroll must be filed for only those calendar
5    months during which construction on a High Impact Business
6    construction jobs project has occurred; the certified
7    payroll shall consist of a complete copy of the records
8    identified in paragraph (1) of this subsection (j), but
9    may exclude the starting and ending times of work each
10    day; the certified payroll shall be accompanied by a
11    statement signed by the contractor or subcontractor or an
12    officer, employee, or agent of the contractor or
13    subcontractor which avers that:
14            (A) he or she has examined the certified payroll
15        records required to be submitted by the Act and such
16        records are true and accurate; and
17            (B) the contractor or subcontractor is aware that
18        filing a certified payroll that he or she knows to be
19        false is a Class A misdemeanor.
20    A general contractor is not prohibited from relying on a
21certified payroll of a lower-tier subcontractor, provided the
22general contractor does not knowingly rely upon a
23subcontractor's false certification.
24    Any contractor or subcontractor subject to this
25subsection, and any officer, employee, or agent of such
26contractor or subcontractor whose duty as an officer,

 

 

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1employee, or agent it is to file a certified payroll under this
2subsection, who willfully fails to file such a certified
3payroll on or before the date such certified payroll is
4required by this paragraph to be filed and any person who
5willfully files a false certified payroll that is false as to
6any material fact is in violation of this Act and guilty of a
7Class A misdemeanor.
8    The taxpayer in charge of the project shall keep the
9records submitted in accordance with this subsection on or
10after June 5, 2019 (the effective date of Public Act 101-9) for
11a period of 5 years from the date of the last payment for work
12on a contract or subcontract for the High Impact Business
13construction jobs project.
14    The records submitted in accordance with this subsection
15shall be considered public records, except an employee's
16address, telephone number, and social security number, and
17made available in accordance with the Freedom of Information
18Act. The Department of Labor shall share the information with
19the Department in order to comply with the awarding of a High
20Impact Business construction jobs credit. A contractor,
21subcontractor, or public body may retain records required
22under this Section in paper or electronic format.
23    (j-5) Annually, until construction is completed, a company
24seeking High Impact Business Construction Job credits shall
25submit a report that, at a minimum, describes the projected
26project scope, timeline, and anticipated budget. Once the

 

 

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1project has commenced, the annual report shall include actual
2data for the prior year as well as projections for each
3additional year through completion of the project. The
4Department shall issue detailed reporting guidelines
5prescribing the requirements of construction-related reports.
6    In order to receive credit for construction expenses, the
7company must provide the Department with evidence that a
8certified third-party executed an Agreed-Upon Procedure (AUP)
9verifying the construction expenses or accept the standard
10construction wage expense estimated by the Department.
11    Upon review of the final project scope, timeline, budget,
12and AUP, the Department shall issue a tax credit certificate
13reflecting a percentage of the total construction job wages
14paid throughout the completion of the project.
15    (k) Upon 7 business days' notice, each taxpayer contractor
16and subcontractor shall make available to each State agency
17and to federal, State, or local law enforcement agencies and
18prosecutors for inspection and copying at a location within
19this State during reasonable hours, the report under
20subsection (j-5) records identified in this subsection (j) to
21the taxpayer in charge of the High Impact Business
22construction jobs project, its officers and agents, the
23Director of the Department of Labor and his or her deputies and
24agents, and to federal, State, or local law enforcement
25agencies and prosecutors.
26    (l) The changes made to this Section by Public Act

 

 

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1102-1125 this amendatory Act of the 102nd General Assembly,
2other than the changes in subsection (a), apply to High Impact
3Businesses high impact businesses that submit applications on
4or after February 3, 2023 (the effective date of Public Act
5102-1125) this amendatory Act of the 102nd General Assembly.
6(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
7102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
811-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
9eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
 
10    (20 ILCS 655/13)
11    Sec. 13. Enterprise Zone construction jobs credit.
12    (a) Beginning on January 1, 2021, a business entity in a
13certified Enterprise Zone that makes a capital investment of
14at least $10,000,000 in an Enterprise Zone construction jobs
15project may receive an Enterprise Zone construction jobs
16credit against the tax imposed under subsections (a) and (b)
17of Section 201 of the Illinois Income Tax Act in an amount
18equal to 50% of the amount of the incremental income tax
19attributable to Enterprise Zone construction jobs credit
20employees employed in the course of completing an Enterprise
21Zone construction jobs project. However, the Enterprise Zone
22construction jobs credit may equal 75% of the amount of the
23incremental income tax attributable to Enterprise Zone
24construction jobs credit employees if the project is located
25in an underserved area.

 

 

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1    (b) A business entity seeking a credit under this Section
2must submit an application to the Department and must receive
3approval from the designating municipality or county and the
4Department for the Enterprise Zone construction jobs credit
5project. The application must describe the nature and benefit
6of the project to the certified Enterprise Zone and its
7potential contributors. The total aggregate amount of credits
8awarded under the Blue Collar Jobs Act (Article 20 of Public
9Act 101-9) shall not exceed $20,000,000 in any State fiscal
10year.
11    Within 45 days after receipt of an application, the
12Department shall give notice to the applicant as to whether
13the application has been approved or disapproved. If the
14Department disapproves the application, it shall specify the
15reasons for this decision and allow 60 days for the applicant
16to amend and resubmit its application. The Department shall
17provide assistance upon request to applicants. Resubmitted
18applications shall receive the Department's approval or
19disapproval within 30 days after the application is
20resubmitted. Those resubmitted applications satisfying initial
21Department objectives shall be approved unless reasonable
22circumstances warrant disapproval.
23    On an annual basis, the designated zone organization shall
24furnish a statement to the Department on the programmatic and
25financial status of any approved project and an audited
26financial statement of the project.

 

 

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1    The Department shall certify to the Department of Revenue
2the identity of taxpayers who are eligible for the credits and
3the amount of credits that are claimed pursuant to
4subparagraph (8) of subsection (f) of Section 201 the Illinois
5Income Tax Act.
6    The Enterprise Zone construction jobs credit project must
7be undertaken by the business entity in the course of
8completing a project that complies with the criteria contained
9in Section 4 of this Act and is undertaken in a certified
10Enterprise Zone. The Department shall adopt any necessary
11rules for the implementation of this subsection (b).
12    (c) (Blank). Any business entity that receives an
13Enterprise Zone construction jobs credit shall maintain a
14certified payroll pursuant to subsection (d) of this Section.
15    (d) Annually, until construction is completed, a company
16seeking Enterprise Zone construction job credits shall submit
17a report that, at a minimum, describes the projected project
18scope, timeline, and anticipated budget. Once the project has
19commenced, the annual report shall include actual data for the
20prior year as well as projections for each additional year
21through completion of the project. The Department shall issue
22detailed reporting guidelines prescribing the requirements of
23construction-related reports.
24    In order to receive credit for construction expenses, the
25company must provide the Department with evidence that a
26certified third-party executed an Agreed-Upon Procedure (AUP)

 

 

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1verifying the construction expenses or accept the standard
2construction wage expense estimated by the Department.
3    Upon review of the final project scope, timeline, budget,
4and AUP, the Department shall issue a tax credit certificate
5reflecting a percentage of the total construction job wages
6paid throughout the completion of the project.
7    Each contractor and subcontractor who is engaged in and is
8executing an Enterprise Zone construction jobs credit project
9for a business that is entitled to a credit pursuant to this
10Section shall:
11        (1) make and keep, for a period of 5 years from the
12    date of the last payment made on or after June 5, 2019 (the
13    effective date of Public Act 101-9) on a contract or
14    subcontract for an Enterprise Zone construction jobs
15    credit project, records for all laborers and other workers
16    employed by them on the project; the records shall
17    include:
18            (A) the worker's name;
19            (B) the worker's address;
20            (C) the worker's telephone number, if available;
21            (D) the worker's social security number;
22            (E) the worker's classification or
23        classifications;
24            (F) the worker's gross and net wages paid in each
25        pay period;
26            (G) the worker's number of hours worked each day;

 

 

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1            (H) the worker's starting and ending times of work
2        each day;
3            (I) the worker's hourly wage rate; and
4            (J) the worker's hourly overtime wage rate;
5        (2) no later than the 15th day of each calendar month,
6    provide a certified payroll for the immediately preceding
7    month to the taxpayer in charge of the project; within 5
8    business days after receiving the certified payroll, the
9    taxpayer shall file the certified payroll with the
10    Department of Labor and the Department of Commerce and
11    Economic Opportunity; a certified payroll must be filed
12    for only those calendar months during which construction
13    on an Enterprise Zone construction jobs project has
14    occurred; the certified payroll shall consist of a
15    complete copy of the records identified in paragraph (1)
16    of this subsection (d), but may exclude the starting and
17    ending times of work each day; the certified payroll shall
18    be accompanied by a statement signed by the contractor or
19    subcontractor or an officer, employee, or agent of the
20    contractor or subcontractor which avers that:
21            (A) he or she has examined the certified payroll
22        records required to be submitted by the Act and such
23        records are true and accurate; and
24            (B) the contractor or subcontractor is aware that
25        filing a certified payroll that he or she knows to be
26        false is a Class A misdemeanor.

 

 

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1    A general contractor is not prohibited from relying on a
2certified payroll of a lower-tier subcontractor, provided the
3general contractor does not knowingly rely upon a
4subcontractor's false certification.
5    Any contractor or subcontractor subject to this
6subsection, and any officer, employee, or agent of such
7contractor or subcontractor whose duty as an officer,
8employee, or agent it is to file a certified payroll under this
9subsection, who willfully fails to file such a certified
10payroll on or before the date such certified payroll is
11required by this paragraph to be filed and any person who
12willfully files a false certified payroll that is false as to
13any material fact is in violation of this Act and guilty of a
14Class A misdemeanor.
15    The taxpayer in charge of the project shall keep the
16records submitted in accordance with this subsection on or
17after June 5, 2019 (the effective date of Public Act 101-9) for
18a period of 5 years from the date of the last payment for work
19on a contract or subcontract for the project.
20    The records submitted in accordance with this subsection
21shall be considered public records, except an employee's
22address, telephone number, and social security number, and
23made available in accordance with the Freedom of Information
24Act. The Department of Labor shall accept any reasonable
25submissions by the contractor that meet the requirements of
26this subsection and shall share the information with the

 

 

HB0817 Engrossed- 33 -LRB103 04410 HLH 49416 b

1Department in order to comply with the awarding of Enterprise
2Zone construction jobs credits. A contractor, subcontractor,
3or public body may retain records required under this Section
4in paper or electronic format.
5    Upon 7 business days' notice, the taxpayer contractor and
6each subcontractor shall make available to any State agency
7and to federal, State, or local law enforcement agencies and
8prosecutors for inspection and copying at a location within
9this State during reasonable hours, the report under this
10subsection (d) records identified in paragraph (1) of this
11subsection to the taxpayer in charge of the project, its
12officers and agents, the Director of Labor and his or her
13deputies and agents, and to federal, State, or local law
14enforcement agencies and prosecutors.
15    (e) As used in this Section:
16    "Enterprise Zone construction jobs credit" means an amount
17equal to 50% (or 75% if the project is located in an
18underserved area) of the incremental income tax attributable
19to Enterprise Zone construction jobs credit employees.
20    "Enterprise Zone construction jobs credit employee" means
21a laborer or worker who is employed by a an Illinois contractor
22or subcontractor in the actual construction work on the site
23of an Enterprise Zone construction jobs credit project.
24    "Enterprise Zone construction jobs credit project" means
25building a structure or building or making improvements of any
26kind to real property commissioned and paid for by a business

 

 

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1that has applied and been approved for an Enterprise Zone
2construction jobs credit pursuant to this Section. "Enterprise
3Zone construction jobs credit project" does not include the
4routine operation, routine repair, or routine maintenance of
5existing structures, buildings, or real property.
6    "Incremental income tax" means the total amount withheld
7during the taxable year from the compensation of Enterprise
8Zone construction jobs credit employees.
9    "Underserved area" means a geographic area that meets one
10or more of the following conditions:
11        (1) the area has a poverty rate of at least 20%
12    according to the latest American Community Survey;
13        (2) 35% or more of the families with children in the
14    area are living below 130% of the poverty line, according
15    to the latest American Community Survey;
16        (3) at least 20% of the households in the area receive
17    assistance under the Supplemental Nutrition Assistance
18    Program (SNAP); or
19        (4) the area has an average unemployment rate, as
20    determined by the Illinois Department of Employment
21    Security, that is more than 120% of the national
22    unemployment average, as determined by the U.S. Department
23    of Labor, for a period of at least 2 consecutive calendar
24    years preceding the date of the application.
25(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
26102-558, eff. 8-20-21.)
 

 

 

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1    Section 15. The Reimagining Energy and Vehicles in
2Illinois Act is amended by changing Sections 10, 20, 35, 45,
365, 95, and 105 as follows:
 
4    (20 ILCS 686/10)
5    Sec. 10. Definitions. As used in this Act:
6    "Advanced battery" means a battery that consists of a
7battery cell that can be integrated into a module, pack, or
8system to be used in energy storage applications, including a
9battery used in an electric vehicle or the electric grid.
10    "Advanced battery component" means a component of an
11advanced battery, including materials, enhancements,
12enclosures, anodes, cathodes, electrolytes, cells, and other
13associated technologies that comprise an advanced battery.
14    "Agreement" means the agreement between a taxpayer and the
15Department under the provisions of Section 45 of this Act.
16    "Applicant" means a taxpayer that (i) operates a business
17in Illinois or is planning to locate a business within the
18State of Illinois and (ii) is engaged in interstate or
19intrastate commerce as an electric vehicle manufacturer, an
20electric vehicle component parts manufacturer, or an electric
21vehicle power supply equipment manufacturer. For applications
22for credits under this Act that are submitted on or after the
23effective date of this amendatory Act of the 102nd General
24Assembly, "applicant" also includes a taxpayer that (i)

 

 

HB0817 Engrossed- 36 -LRB103 04410 HLH 49416 b

1operates a business in Illinois or is planning to locate a
2business within the State of Illinois and (ii) is engaged in
3interstate or intrastate commerce as a renewable energy
4manufacturer. "Applicant" does not include a taxpayer who
5closes or substantially reduces by more than 50% operations at
6one location in the State and relocates substantially the same
7operation to another location in the State. This does not
8prohibit a Taxpayer from expanding its operations at another
9location in the State. This also does not prohibit a Taxpayer
10from moving its operations from one location in the State to
11another location in the State for the purpose of expanding the
12operation, provided that the Department determines that
13expansion cannot reasonably be accommodated within the
14municipality or county in which the business is located, or,
15in the case of a business located in an incorporated area of
16the county, within the county in which the business is
17located, after conferring with the chief elected official of
18the municipality or county and taking into consideration any
19evidence offered by the municipality or county regarding the
20ability to accommodate expansion within the municipality or
21county.
22    "Battery raw materials" means the raw and processed form
23of a mineral, metal, chemical, or other material used in an
24advanced battery component.
25    "Battery raw materials refining service provider" means a
26business that operates a facility that filters, sifts, and

 

 

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1treats battery raw materials for use in an advanced battery.
2    "Battery recycling and reuse manufacturer" means a
3manufacturer that is primarily engaged in the recovery,
4retrieval, processing, recycling, or recirculating of battery
5raw materials for new use in electric vehicle batteries.
6    "Capital improvements" means the purchase, renovation,
7rehabilitation, or construction of permanent tangible land,
8buildings, structures, equipment, and furnishings in an
9approved project sited in Illinois and expenditures for goods
10or services that are normally capitalized, including
11organizational costs and research and development costs
12incurred in Illinois. For land, buildings, structures, and
13equipment that are leased, the lease must equal or exceed the
14term of the agreement, and the cost of the property shall be
15determined from the present value, using the corporate
16interest rate prevailing at the time of the application, of
17the lease payments.
18    "Credit" means either a "REV Illinois Credit" or a "REV
19Construction Jobs Credit" agreed to between the Department and
20applicant under this Act.
21    "Department" means the Department of Commerce and Economic
22Opportunity.
23    "Director" means the Director of Commerce and Economic
24Opportunity.
25    "Electric vehicle" means a vehicle that is exclusively
26powered by and refueled by electricity, including electricity

 

 

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1generated through a hydrogen fuel cells or solar technology.
2"Electric vehicle", except when referencing aircraft with
3hybrid electric propulsion systems, does not include hybrid
4electric vehicles, electric bicycles, or extended-range
5electric vehicles that are also equipped with conventional
6fueled propulsion or auxiliary engines.
7    "Electric vehicle manufacturer" means a new or existing
8manufacturer that is primarily focused on reequipping,
9expanding, or establishing a manufacturing facility in
10Illinois that produces electric vehicles as defined in this
11Section.
12    "Electric vehicle component parts manufacturer" means a
13new or existing manufacturer that is focused on reequipping,
14expanding, or establishing a manufacturing facility in
15Illinois that produces parts or accessories used in electric
16vehicles, as defined by this Section, including advanced
17battery component parts. The changes to this definition of
18"electric vehicle component parts manufacturer" apply to
19agreements under this Act that are entered into on or after the
20effective date of this amendatory Act of the 102nd General
21Assembly.
22    "Electric vehicle power supply equipment" means the
23equipment used specifically for the purpose of delivering
24electricity to an electric vehicle, including hydrogen fuel
25cells or solar refueling infrastructure.
26    "Electric vehicle power supply manufacturer" means a new

 

 

HB0817 Engrossed- 39 -LRB103 04410 HLH 49416 b

1or existing manufacturer that is focused on reequipping,
2expanding, or establishing a manufacturing facility in
3Illinois that produces electric vehicle power supply equipment
4used for the purpose of delivering electricity to an electric
5vehicle, including hydrogen fuel cell or solar refueling
6infrastructure.
7    "Electric vehicle powertrain technology" means equipment
8used to convert electricity for use in aerospace propulsion.
9    "Electric vehicle powertrain technology manufacturer"
10means a new or existing manufacturer that is focused on
11reequipping, expanding, or establishing a manufacturing
12facility in Illinois that develops and validates electric
13vehicle powertrain technology for use in aerospace propulsion.
14    "Electric vertical takeoff and landing aircraft" or "eVTOL
15aircraft" means a fully electric aircraft that lands and takes
16off vertically.
17    "Energy Transition Area" means a county with less than
18100,000 people or a municipality that contains one or more of
19the following:
20        (1) a fossil fuel plant that was retired from service
21    or has significant reduced service within 6 years before
22    the time of the application or will be retired or have
23    service significantly reduced within 6 years following the
24    time of the application; or
25        (2) a coal mine that was closed or had operations
26    significantly reduced within 6 years before the time of

 

 

HB0817 Engrossed- 40 -LRB103 04410 HLH 49416 b

1    the application or is anticipated to be closed or have
2    operations significantly reduced within 6 years following
3    the time of the application.
4    "Full-time employee" means an individual who is employed
5for consideration for at least 35 hours each week or who
6renders any other standard of service generally accepted by
7industry custom or practice as full-time employment. An
8individual for whom a W-2 is issued by a Professional Employer
9Organization (PEO) is a full-time employee if employed in the
10service of the applicant for consideration for at least 35
11hours each week.
12    "Green steel manufacturer" means an entity that
13manufactures steel without the use of fossil fuels and with
14zero net carbon emissions.
15    "Incremental income tax" means the total amount withheld
16during the taxable year from the compensation of new employees
17and, if applicable, retained employees under Article 7 of the
18Illinois Income Tax Act arising from employment at a project
19that is the subject of an agreement.
20    "Institution of higher education" or "institution" means
21any accredited public or private university, college,
22community college, business, technical, or vocational school,
23or other accredited educational institution offering degrees
24and instruction beyond the secondary school level.
25    "Minority person" means a minority person as defined in
26the Business Enterprise for Minorities, Women, and Persons

 

 

HB0817 Engrossed- 41 -LRB103 04410 HLH 49416 b

1with Disabilities Act.
2    "New employee" means a newly-hired full-time employee
3employed to work at the project site and whose work is directly
4related to the project.
5    "Noncompliance date" means, in the case of a taxpayer that
6is not complying with the requirements of the agreement or the
7provisions of this Act, the day following the last date upon
8which the taxpayer was in compliance with the requirements of
9the agreement and the provisions of this Act, as determined by
10the Director, pursuant to Section 70.
11    "Pass-through entity" means an entity that is exempt from
12the tax under subsection (b) or (c) of Section 205 of the
13Illinois Income Tax Act.
14    "Placed in service" means the state or condition of
15readiness, availability for a specifically assigned function,
16and the facility is constructed and ready to conduct its
17facility operations to manufacture goods.
18    "Professional employer organization" (PEO) means an
19employee leasing company, as defined in Section 206.1 of the
20Illinois Unemployment Insurance Act.
21    "Program" means the Reimagining Energy and Vehicles in
22Illinois Program (the REV Illinois Program) established in
23this Act.
24    "Project" or "REV Illinois Project" means a for-profit
25economic development activity for the manufacture of electric
26vehicles, electric vehicle component parts, electric vehicle

 

 

HB0817 Engrossed- 42 -LRB103 04410 HLH 49416 b

1power supply equipment, or renewable energy products, which is
2designated by the Department as a REV Illinois Project and is
3the subject of an agreement.
4    "Recycling facility" means a location at which the
5taxpayer disposes of batteries and other component parts in
6manufacturing of electric vehicles, electric vehicle component
7parts, or electric vehicle power supply equipment.
8    "Related member" means a person that, with respect to the
9taxpayer during any portion of the taxable year, is any one of
10the following:
11        (1) An individual stockholder, if the stockholder and
12    the members of the stockholder's family (as defined in
13    Section 318 of the Internal Revenue Code) own directly,
14    indirectly, beneficially, or constructively, in the
15    aggregate, at least 50% of the value of the taxpayer's
16    outstanding stock.
17        (2) A partnership, estate, trust and any partner or
18    beneficiary, if the partnership, estate, or trust, and its
19    partners or beneficiaries own directly, indirectly,
20    beneficially, or constructively, in the aggregate, at
21    least 50% of the profits, capital, stock, or value of the
22    taxpayer.
23        (3) A corporation, and any party related to the
24    corporation in a manner that would require an attribution
25    of stock from the corporation under the attribution rules
26    of Section 318 of the Internal Revenue Code, if the

 

 

HB0817 Engrossed- 43 -LRB103 04410 HLH 49416 b

1    Taxpayer owns directly, indirectly, beneficially, or
2    constructively at least 50% of the value of the
3    corporation's outstanding stock.
4        (4) A corporation and any party related to that
5    corporation in a manner that would require an attribution
6    of stock from the corporation to the party or from the
7    party to the corporation under the attribution rules of
8    Section 318 of the Internal Revenue Code, if the
9    corporation and all such related parties own in the
10    aggregate at least 50% of the profits, capital, stock, or
11    value of the taxpayer.
12        (5) A person to or from whom there is an attribution of
13    stock ownership in accordance with Section 1563(e) of the
14    Internal Revenue Code, except, for purposes of determining
15    whether a person is a related member under this paragraph,
16    20% shall be substituted for 5% wherever 5% appears in
17    Section 1563(e) of the Internal Revenue Code.
18    "Renewable energy" means energy produced using the
19materials and sources of energy through which renewable energy
20resources are generated.
21    "Renewable energy manufacturer" means a manufacturer whose
22primary function is to manufacture or assemble: (i) equipment,
23systems, or products used to produce renewable or nuclear
24energy; (ii) products used for energy conservation, storage,
25or grid efficiency purposes; or (iii) component parts for that
26equipment or those systems or products.

 

 

HB0817 Engrossed- 44 -LRB103 04410 HLH 49416 b

1    "Renewable energy resources" has the meaning ascribed to
2that term in Section 1-10 of the Illinois Power Agency Act.
3    "Research and development" means work directed toward the
4innovation, introduction, and improvement of products and
5processes. "Research and development" includes all levels of
6research and development that directly result in the potential
7manufacturing and marketability of renewable energy, electric
8vehicles, electric vehicle component parts, and electric or
9hybrid aircraft.
10    "Retained employee" means a full-time employee employed by
11the taxpayer prior to the term of the Agreement who continues
12to be employed during the term of the agreement whose job
13duties are directly related to the project. The term "retained
14employee" does not include any individual who has a direct or
15an indirect ownership interest of at least 5% in the profits,
16equity, capital, or value of the taxpayer or a child,
17grandchild, parent, or spouse, other than a spouse who is
18legally separated from the individual, of any individual who
19has a direct or indirect ownership of at least 5% in the
20profits, equity, capital, or value of the taxpayer. The
21changes to this definition of "retained employee" apply to
22agreements for credits under this Act that are entered into on
23or after the effective date of this amendatory Act of the 102nd
24General Assembly.
25    "REV Illinois credit" means a credit agreed to between the
26Department and the applicant under this Act that is based on

 

 

HB0817 Engrossed- 45 -LRB103 04410 HLH 49416 b

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

 

 

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1not reasonably available within the United States), wages and
2fringe benefits of employees during periods of training, or
3administrative cost related to full-time employees of the
4taxpayer.
5    "Underserved area" means any geographic area areas as
6defined in Section 5-5 of the Economic Development for a
7Growing Economy Tax Credit Act.
8(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
9102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
 
10    (20 ILCS 686/20)
11    Sec. 20. REV Illinois Program; project applications.
12    (a) The Reimagining Energy and Vehicles in Illinois (REV
13Illinois) Program is hereby established and shall be
14administered by the Department. The Program will provide
15financial incentives to any one or more of the following: (1)
16eligible manufacturers of electric vehicles, electric vehicle
17component parts, and electric vehicle power supply equipment;
18(2) battery recycling and reuse manufacturers; (3) battery raw
19materials refining service providers; or (4) renewable energy
20manufacturers.
21    (b) Any taxpayer planning a project to be located in
22Illinois may request consideration for designation of its
23project as a REV Illinois Project, by formal written letter of
24request or by formal application to the Department, in which
25the applicant states its intent to make at least a specified

 

 

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1level of investment and intends to hire a specified number of
2full-time employees at a designated location in Illinois. As
3circumstances require, the Department shall require a formal
4application from an applicant and a formal letter of request
5for assistance.
6    (c) In order to qualify for credits under the REV Illinois
7Program, an applicant must:
8        (1) if the applicant is an electric vehicle
9    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) if the applicant is an electric vehicle component
18    parts manufacturer, or a renewable energy manufacturer, a
19    green steel manufacturer, or an entity engaged in
20    research, development, or manufacturing of eVTOL aircraft
21    or hybrid-electric or fully electric propulsion systems
22    for airliners:
23            (A) make an investment of at least $300,000,000 in
24        capital improvements at the project site;
25            (B) manufacture one or more parts that are
26        primarily used for electric vehicle, renewable energy,

 

 

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1        or green steel manufacturing;
2            (C) to be placed in service within the State
3        within a 60-month period after approval of the
4        application; and
5            (D) create at least 150 new full-time employee
6        jobs; or
7        (3) if the agreement is entered into before the
8    effective date of this amendatory Act of the 102nd General
9    Assembly and the applicant is an electric vehicle
10    manufacturer, an electric vehicle power supply equipment
11    manufacturer, an electric vehicle component part
12    manufacturer, renewable energy manufacturer, or green
13    steel manufacturer that does not qualify under paragraph
14    (2) above, a battery recycling and reuse manufacturer, or
15    a battery raw materials refining service provider:
16            (A) make an investment of at least $20,000,000 in
17        capital improvements at the project site;
18            (B) for electric vehicle component part
19        manufacturers, manufacture one or more parts that are
20        primarily used for electric vehicle manufacturing;
21            (C) to be placed in service within the State
22        within a 48-month period after approval of the
23        application; and
24            (D) create at least 50 new full-time employee
25        jobs; or
26        (3.1) if the agreement is entered into on or after the

 

 

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1    effective date of this amendatory Act of the 102nd General
2    Assembly and the applicant is an electric vehicle
3    manufacturer, an electric vehicle power supply equipment
4    manufacturer, an electric vehicle component part
5    manufacturer, a renewable energy manufacturer, a green
6    steel manufacturer, or an entity engaged in research,
7    development, or manufacturing of eVTOL aircraft or
8    hybrid-electric or fully electric propulsion systems for
9    airliners that does not qualify under paragraph (2) above,
10    a renewable energy manufacturer that does not qualify
11    under paragraph (2) above, a battery recycling and reuse
12    manufacturer, or a battery raw materials refining service
13    provider:
14            (A) make an investment of at least $2,500,000 in
15        capital improvements at the project site;
16            (B) in the case of electric vehicle component part
17        manufacturers, manufacture one or more parts that are
18        used for electric vehicle manufacturing;
19            (C) to be placed in service within the State
20        within a 48-month period after approval of the
21        application; and
22            (D) create the lesser of 50 new full-time employee
23        jobs or new full-time employee jobs equivalent to 10%
24        of the Statewide baseline applicable to the taxpayer
25        and any related member at the time of application; or
26        (4) if the agreement is entered into before the

 

 

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1    effective date of this amendatory Act of the 102nd General
2    Assembly and the applicant is an electric vehicle
3    manufacturer or electric vehicle component parts
4    manufacturer with existing operations within Illinois that
5    intends to convert or expand, in whole or in part, the
6    existing facility from traditional manufacturing to
7    primarily electric vehicle manufacturing, electric vehicle
8    component parts manufacturing, an or electric vehicle
9    power supply equipment manufacturing, or a green steel
10    manufacturer:
11            (A) make an investment of at least $100,000,000 in
12        capital improvements at the project site;
13            (B) to be placed in service within the State
14        within a 60-month period after approval of the
15        application; and
16            (C) create the lesser of 75 new full-time employee
17        jobs or new full-time employee jobs equivalent to 10%
18        of the Statewide baseline applicable to the taxpayer
19        and any related member at the time of application;
20        (4.1) if the agreement is entered into on or after the
21    effective date of this amendatory Act of the 102nd General
22    Assembly and the applicant (i) is an electric vehicle
23    manufacturer, an electric vehicle component parts
24    manufacturer, or a renewable energy manufacturer, a green
25    steel manufacturer, or an entity engaged in research,
26    development, or manufacturing of eVTOL aircraft or hybrid

 

 

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1    electric or fully electric propulsion systems for
2    airliners and (ii) has existing operations within Illinois
3    that the applicant intends to convert or expand, in whole
4    or in part, from traditional manufacturing to electric
5    vehicle manufacturing, electric vehicle component parts
6    manufacturing, renewable energy manufacturing, or electric
7    vehicle power supply equipment manufacturing:
8            (A) make an investment of at least $100,000,000 in
9        capital improvements at the project site;
10            (B) to be placed in service within the State
11        within a 60-month period after approval of the
12        application; and
13            (C) create the lesser of 50 new full-time employee
14        jobs or new full-time employee jobs equivalent to 10%
15        of the Statewide baseline applicable to the taxpayer
16        and any related member at the time of application; or
17        (5) if the agreement is entered into on or after the
18    effective date of the changes made to this Section by this
19    amendatory Act of the 103rd General Assembly and before
20    June 1, 2024 and the applicant (i) is an electric vehicle
21    manufacturer, an electric vehicle component parts
22    manufacturer, or a renewable energy manufacturer or (ii)
23    has existing operations within Illinois that the applicant
24    intends to convert or expand, in whole or in part, from
25    traditional manufacturing to electric vehicle
26    manufacturing, electric vehicle component parts

 

 

HB0817 Engrossed- 52 -LRB103 04410 HLH 49416 b

1    manufacturing, renewable energy manufacturing, or electric
2    vehicle power supply equipment manufacturing:
3            (A) make an investment of at least $500,000,000 in
4        capital improvements at the project site;
5            (B) to be placed in service within the State
6        within a 60-month period after approval of the
7        application; and
8            (C) retain at least 800 full-time employee jobs at
9        the project.
10    (d) For agreements entered into prior to April 19, 2022
11(the effective date of Public Act 102-700), for any applicant
12creating the full-time employee jobs noted in subsection (c),
13those jobs must have a total compensation equal to or greater
14than 120% of the average wage paid to full-time employees in
15the county where the project is located, as determined by the
16U.S. Bureau of Labor Statistics. For agreements entered into
17on or after April 19, 2022 (the effective date of Public Act
18102-700), for any applicant creating the full-time employee
19jobs noted in subsection (c), those jobs must have a
20compensation equal to or greater than 120% of the average wage
21paid to full-time employees in a similar position within an
22occupational group in the county where the project is located,
23as determined by the Department.
24    (e) For any applicant, within 24 months after being placed
25in service, it must certify to the Department that it is carbon
26neutral or has attained certification under one of more of the

 

 

HB0817 Engrossed- 53 -LRB103 04410 HLH 49416 b

1following green building standards:
2        (1) BREEAM for New Construction or BREEAM In-Use;
3        (2) ENERGY STAR;
4        (3) Envision;
5        (4) ISO 50001 - energy management;
6        (5) LEED for Building Design and Construction or LEED
7    for Building Operations and Maintenance;
8        (6) Green Globes for New Construction or Green Globes
9    for Existing Buildings; or
10        (7) UL 3223.
11    (f) Each applicant must outline its hiring plan and
12commitment to recruit and hire full-time employee positions at
13the project site. The hiring plan may include a partnership
14with an institution of higher education to provide
15internships, including, but not limited to, internships
16supported by the Clean Jobs Workforce Network Program, or
17full-time permanent employment for students at the project
18site. Additionally, the applicant may create or utilize
19participants from apprenticeship programs that are approved by
20and registered with the United States Department of Labor's
21Bureau of Apprenticeship and Training. The applicant may apply
22for apprenticeship education expense credits in accordance
23with the provisions set forth in 14 Ill. Adm. Code 522. Each
24applicant is required to report annually, on or before April
2515, on the diversity of its workforce in accordance with
26Section 50 of this Act. For existing facilities of applicants

 

 

HB0817 Engrossed- 54 -LRB103 04410 HLH 49416 b

1under paragraph (3) of subsection (b) above, if the taxpayer
2expects a reduction in force due to its transition to
3manufacturing electric vehicle, electric vehicle component
4parts, or electric vehicle power supply equipment, the plan
5submitted under this Section must outline the taxpayer's plan
6to assist with retraining its workforce aligned with the
7taxpayer's adoption of new technologies and anticipated
8efforts to retrain employees through employment opportunities
9within the taxpayer's workforce.
10    (g) Each applicant must demonstrate a contractual or other
11relationship with a recycling facility, or demonstrate its own
12recycling capabilities, at the time of application and report
13annually a continuing contractual or other relationship with a
14recycling facility and the percentage of batteries used in
15electric vehicles recycled throughout the term of the
16agreement.
17    (h) A taxpayer may not enter into more than one agreement
18under this Act with respect to a single address or location for
19the same period of time. Also, a taxpayer may not enter into an
20agreement under this Act with respect to a single address or
21location for the same period of time for which the taxpayer
22currently holds an active agreement under the Economic
23Development for a Growing Economy Tax Credit Act. This
24provision does not preclude the applicant from entering into
25an additional agreement after the expiration or voluntary
26termination of an earlier agreement under this Act or under

 

 

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1the Economic Development for a Growing Economy Tax Credit Act
2to the extent that the taxpayer's application otherwise
3satisfies the terms and conditions of this Act and is approved
4by the Department. An applicant with an existing agreement
5under the Economic Development for a Growing Economy Tax
6Credit Act may submit an application for an agreement under
7this Act after it terminates any existing agreement under the
8Economic Development for a Growing Economy Tax Credit Act with
9respect to the same address or location. If a project that is
10subject to an existing agreement under the Economic
11Development for a Growing Economy Tax Credit Act meets the
12requirements to be designated as a REV Illinois project under
13this Act, including for actions undertaken prior to the
14effective date of this Act, the taxpayer that is subject to
15that existing agreement under the Economic Development for a
16Growing Economy Tax Credit Act may apply to the Department to
17amend the agreement to allow the project to become a
18designated REV Illinois project. Following the amendment, time
19accrued during which the project was eligible for credits
20under the existing agreement under the Economic Development
21for a Growing Economy Tax Credit Act shall count toward the
22duration of the credit subject to limitations described in
23Section 40 of this Act.
24    (i) If, at any time following the designation of a project
25as a REV Illinois Project by the Department and prior to the
26termination or expiration of an agreement under this Act, the

 

 

HB0817 Engrossed- 56 -LRB103 04410 HLH 49416 b

1project ceases to qualify as a REV Illinois project because
2the taxpayer is no longer an electric vehicle manufacturer, an
3electric vehicle component manufacturer, an electric vehicle
4power supply equipment manufacturer, a battery recycling and
5reuse manufacturer, or a battery raw materials refining
6service provider, or an entity engaged in eVTOL or hybrid
7electric or fully electric propulsion systems for airliners
8research, development, or manufacturing, that project may
9receive tax credit awards as described in Section 5-15 and
10Section 5-51 of the Economic Development for a Growing Economy
11Tax Credit Act, as long as the project continues to meet
12requirements to obtain those credits as described in the
13Economic Development for a Growing Economy Tax Credit Act and
14remains compliant with terms contained in the Agreement under
15this Act not related to their status as an electric vehicle
16manufacturer, an electric vehicle component manufacturer, an
17electric vehicle power supply equipment manufacturer, a
18battery recycling and reuse manufacturer, or a battery raw
19materials refining service provider, or an entity engaged in
20eVTOL or hybrid-electric or fully electric propulsion systems
21for airliners research, development, or manufacturing. Time
22accrued during which the project was eligible for credits
23under an agreement under this Act shall count toward the
24duration of the credit subject to limitations described in
25Section 5-45 of the Economic Development for a Growing Economy
26Tax Credit Act.

 

 

HB0817 Engrossed- 57 -LRB103 04410 HLH 49416 b

1(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
2102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff.
36-7-23.)
 
4    (20 ILCS 686/35)
5    Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
6entitled to claim a credit provided by this Act with respect to
7any jobs that the Taxpayer relocates from one site in Illinois
8to another site in Illinois unless the taxpayer has agreed to
9hire the minimum number of new employees and the Department
10has determined that the expansion cannot reasonably be
11accommodated within the municipality in which the business is
12located. Any full-time employee relocated to Illinois in
13connection with a qualifying project is deemed to be a new
14employee for purposes of this Act. Determinations under this
15Section shall be made by the Department.
16(Source: P.A. 102-669, eff. 11-16-21.)
 
17    (20 ILCS 686/45)
18    Sec. 45. Contents of agreements with applicants.
19    (a) The Department shall enter into an agreement with an
20applicant that is awarded a credit under this Act. The
21agreement shall include all of the following:
22        (1) A detailed description of the project that is the
23    subject of the agreement, including the location and
24    amount of the investment and jobs created or retained.

 

 

HB0817 Engrossed- 58 -LRB103 04410 HLH 49416 b

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

 

 

HB0817 Engrossed- 59 -LRB103 04410 HLH 49416 b

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

 

 

HB0817 Engrossed- 60 -LRB103 04410 HLH 49416 b

1        (12) If applicable, a provision that, if the total
2    number of new employees falls below a specified level, the
3    allowance of credit shall be suspended until the number of
4    new employees equals or exceeds the agreement amount.
5        (13) If applicable, a provision that specifies the
6    statewide baseline at the time of application for retained
7    employees. The agreement must have a provision addressing
8    if the total number of retained employees falls below the
9    lesser of the statewide baseline or the retention
10    requirements specified in the agreement, the allowance of
11    the credit shall be suspended until the number of retained
12    employees equals or exceeds the agreement amount.
13        (14) A detailed description of the items for which the
14    costs incurred by the Taxpayer will be included in the
15    limitation on the Credit provided in Section 40.
16        (15) If the agreement is entered into before the
17    effective date of the changes made to this Section by this
18    amendatory Act of the 103rd General Assembly, a provision
19    stating that if the taxpayer fails to meet either the
20    investment or job creation and retention requirements
21    specified in the agreement during the entire 5-year period
22    beginning on the first day of the first taxable year in
23    which the agreement is executed and ending on the last day
24    of the fifth taxable year after the agreement is executed,
25    then the agreement is automatically terminated on the last
26    day of the fifth taxable year after the agreement is

 

 

HB0817 Engrossed- 61 -LRB103 04410 HLH 49416 b

1    executed, and the taxpayer is not entitled to the award of
2    any credits for any of that 5-year period. If the
3    agreement is entered into on or after the effective date
4    of the changes made to this Section by this amendatory Act
5    of the 103rd General Assembly, a provision stating that if
6    the taxpayer fails to meet either the investment or job
7    creation and retention requirements specified in the
8    agreement during the entire 10-year period beginning on
9    the effective date of the agreement and ending 10 years
10    after the effective date of the agreement, then the
11    agreement is automatically terminated, and the taxpayer is
12    not entitled to the award of any credits for any of that
13    10-year period.
14        (16) A provision stating that if the taxpayer ceases
15    principal operations with the intent to permanently shut
16    down the project in the State during the term of the
17    Agreement, then the entire credit amount awarded to the
18    taxpayer prior to the date the taxpayer ceases principal
19    operations shall be returned to the Department and shall
20    be reallocated to the local workforce investment area in
21    which the project was located.
22        (17) A provision stating that the Taxpayer must
23    provide the reports outlined in Sections 50 and 55 on or
24    before April 15 each year.
25        (18) A provision requiring the taxpayer to report
26    annually its contractual obligations or otherwise with a

 

 

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1    recycling facility for its operations.
2        (19) Any other performance conditions or contract
3    provisions the Department determines are necessary or
4    appropriate.
5        (20) Each taxpayer under paragraph (1) of subsection
6    (c) of Section 20 above shall maintain labor neutrality
7    toward any union organizing campaign for any employees of
8    the taxpayer assigned to work on the premises of the REV
9    Illinois Project Site. This paragraph shall not apply to
10    an electric vehicle manufacturer, electric vehicle
11    component part manufacturer, electric vehicle power supply
12    manufacturer, or renewable energy manufacturer, or any
13    joint venture including an electric vehicle manufacturer,
14    electric vehicle component part manufacturer, electric
15    vehicle power supply manufacturer, or renewable energy
16    manufacturer, or an entity engaged in eVTOL or
17    hybrid-electric or fully electric propulsion systems for
18    airliners research, development, or manufacturing, who is
19    subject to collective bargaining agreement entered into
20    prior to the taxpayer filing an application pursuant to
21    this Act.
22    (b) The Department shall post on its website the terms of
23each agreement entered into under this Act. Such information
24shall be posted within 10 days after entering into the
25agreement and must include the following:
26        (1) the name of the taxpayer;

 

 

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1        (2) the location of the project;
2        (3) the estimated value of the credit;
3        (4) the number of new employee jobs and, if
4    applicable, number of retained employee jobs at the
5    project; and
6        (5) whether or not the project is in an underserved
7    area or energy transition area.
8(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
9103-9, eff. 6-7-23.)
 
10    (20 ILCS 686/65)
11    Sec. 65. REV Construction Jobs Credits Certified payroll.
12    (a) Each REV program participant contractor and
13subcontractor that is engaged in construction work on project
14facilities for a taxpayer who seeks to apply for a REV
15Construction Jobs credit shall annually, until construction is
16completed, submit a report that, at a minimum, describes the
17projected project scope, timeline, and anticipated budget.
18Once the project has commenced, the annual report shall
19include actual data for the prior year as well as projections
20for each additional year through completion of the project.
21The Department shall issue detailed reporting guidelines
22prescribing the requirements of construction related reports. :
23    In order to receive credit for construction expenses, the
24company must provide the Department with evidence that a
25certified third-party executed an Agreed-Upon Procedure (AUP)

 

 

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1verifying the construction expenses or accept the standard
2construction wage expense estimated by the Department.
3    Upon review of the final project scope, timeline, budget,
4and AUP, the Department shall issue a tax credit certificate
5reflecting a percentage of the total construction job wages
6paid throughout the completion of the project.
7        (1) make and keep, for a period of 5 years from the
8    date of the last payment made on a contract or subcontract
9    for construction of facilities for a REV Illinois Project
10    pursuant to an agreement, records of all laborers and
11    other workers employed by the contractor or subcontractor
12    on the project; the records shall include:
13            (A) the worker's name;
14            (B) the worker's address;
15            (C) the worker's telephone number, if available;
16            (D) the worker's social security number;
17            (E) the worker's classification or
18        classifications;
19            (F) the worker's gross and net wages paid in each
20        pay period;
21            (G) the worker's number of hours worked in each
22        day;
23            (H) the worker's starting and ending times of work
24        each day;
25            (I) the worker's hourly wage rate; and
26            (J) the worker's hourly overtime wage rate; and

 

 

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

 

 

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

 

 

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1in paper or electronic format.
2    (e) Upon 7 business days' notice, the taxpayer contractor
3and each subcontractor shall make available to any State
4agency and to federal, State, or local law enforcement
5agencies and prosecutors for inspection and copying at a
6location within this State during reasonable hours, the report
7described in subsection (a) records identified in paragraph
8(1) of this subsection to the Taxpayer in charge of the
9Project, its officers and agents, the Director of the
10Department of Labor and his/her deputies and agents, and to
11federal, State, or local law enforcement agencies and
12prosecutors.
13(Source: P.A. 102-669, eff. 11-16-21.)
 
14    (20 ILCS 686/95)
15    Sec. 95. Utility tax exemptions for REV Illinois Project
16sites. The Department may certify a taxpayer with a REV
17Illinois credit for a Project that meets the qualifications
18under Section paragraphs (1), (2), and (4), (4.1), or (5) of
19subsection (c) of Section 20, subject to an agreement under
20this Act for an exemption from the tax imposed at the project
21site by Section 2-4 of the Electricity Excise Tax Law. To
22receive such certification, the taxpayer must be registered to
23self-assess that tax. The taxpayer is also exempt from any
24additional charges added to the taxpayer's utility bills at
25the project site as a pass-on of State utility taxes under

 

 

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1Section 9-222 of the Public Utilities Act. The taxpayer must
2meet any other the criteria for certification set by the
3Department.
4    The Department shall determine the period during which the
5exemption from the Electricity Excise Tax Law and the charges
6imposed under Section 9-222 of the Public Utilities Act are in
7effect, which shall not exceed 30 10 years from the date of the
8taxpayer's initial receipt of certification from the
9Department under this Section.
10    The Department is authorized to adopt rules to carry out
11the provisions of this Section, including procedures to apply
12for the exemptions; to define the amounts and types of
13eligible investments that an applicant must make in order to
14receive electricity excise tax exemptions or exemptions from
15the additional charges imposed under Section 9-222 and the
16Public Utilities Act; to approve such electricity excise tax
17exemptions for applicants whose investments are not yet placed
18in service; and to require that an applicant granted an
19electricity excise tax exemption or an exemption from
20additional charges under Section 9-222 of the Public Utilities
21Act repay the exempted amount if the Applicant fails to comply
22with the terms and conditions of the agreement.
23    Upon certification by the Department under this Section,
24the Department shall notify the Department of Revenue of the
25certification. The Department of Revenue shall notify the
26public utilities of the exempt status of any taxpayer

 

 

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1certified for exemption under this Act from the electricity
2excise tax or pass-on charges. The exemption status shall take
3effect within 3 months after certification of the taxpayer and
4notice to the Department of Revenue by the Department.
5(Source: P.A. 102-669, eff. 11-16-21.)
 
6    (20 ILCS 686/105)
7    Sec. 105. Building materials exemptions for REV Illinois
8Project sites.
9    (a) The Department may certify a Taxpayer with a REV
10Illinois Project that meets the qualifications under
11paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
12Section 20, subject to an agreement under this Act, for an
13exemption from any State or local use tax or retailers'
14occupation tax on building materials for the construction of
15its project facilities. The taxpayer must meet any criteria
16for certification set by the Department under this Act.
17    The Department shall determine the period during which the
18exemption from State and local use tax and retailers'
19occupation tax are in effect, but in no event shall exceed 5
20years in accordance with Section 5m of the Retailers'
21Occupation Tax Act.
22    The Department is authorized to promulgate rules and
23regulations to carry out the provisions of this Section,
24including procedures to apply for the exemption; to define the
25amounts and types of eligible investments that an applicant

 

 

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1must make in order to receive tax exemption; to approve such
2tax exemption for an applicant whose investments are not yet
3placed in service; and to require that an applicant granted
4exemption repay the exempted amount if the applicant fails to
5comply with the terms and conditions of the agreement with the
6Department.
7    Upon certification by the Department under this Section,
8the Department shall notify the Department of Revenue of the
9certification. The exemption status shall take effect within 3
10months after certification of the taxpayer and notice to the
11Department of Revenue by the Department.
12(Source: P.A. 102-669, eff. 11-16-21.)
 
13    Section 20. The Illinois Income Tax Act is amended by
14changing Section 201 and by adding Section 241 as follows:
 
15    (35 ILCS 5/201)
16    Sec. 201. Tax imposed.
17    (a) In general. A tax measured by net income is hereby
18imposed on every individual, corporation, trust and estate for
19each taxable year ending after July 31, 1969 on the privilege
20of earning or receiving income in or as a resident of this
21State. Such tax shall be in addition to all other occupation or
22privilege taxes imposed by this State or by any municipal
23corporation or political subdivision thereof.
24    (b) Rates. The tax imposed by subsection (a) of this

 

 

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1Section shall be determined as follows, except as adjusted by
2subsection (d-1):
3        (1) In the case of an individual, trust or estate, for
4    taxable years ending prior to July 1, 1989, an amount
5    equal to 2 1/2% of the taxpayer's net income for the
6    taxable year.
7        (2) In the case of an individual, trust or estate, for
8    taxable years beginning prior to July 1, 1989 and ending
9    after June 30, 1989, an amount equal to the sum of (i) 2
10    1/2% of the taxpayer's net income for the period prior to
11    July 1, 1989, as calculated under Section 202.3, and (ii)
12    3% of the taxpayer's net income for the period after June
13    30, 1989, as calculated under Section 202.3.
14        (3) In the case of an individual, trust or estate, for
15    taxable years beginning after June 30, 1989, and ending
16    prior to January 1, 2011, an amount equal to 3% of the
17    taxpayer's net income for the taxable year.
18        (4) In the case of an individual, trust, or estate,
19    for taxable years beginning prior to January 1, 2011, and
20    ending after December 31, 2010, an amount equal to the sum
21    of (i) 3% of the taxpayer's net income for the period prior
22    to January 1, 2011, as calculated under Section 202.5, and
23    (ii) 5% of the taxpayer's net income for the period after
24    December 31, 2010, as calculated under Section 202.5.
25        (5) In the case of an individual, trust, or estate,
26    for taxable years beginning on or after January 1, 2011,

 

 

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1    and ending prior to January 1, 2015, an amount equal to 5%
2    of the taxpayer's net income for the taxable year.
3        (5.1) In the case of an individual, trust, or estate,
4    for taxable years beginning prior to January 1, 2015, and
5    ending after December 31, 2014, an amount equal to the sum
6    of (i) 5% of the taxpayer's net income for the period prior
7    to January 1, 2015, as calculated under Section 202.5, and
8    (ii) 3.75% of the taxpayer's net income for the period
9    after December 31, 2014, as calculated under Section
10    202.5.
11        (5.2) In the case of an individual, trust, or estate,
12    for taxable years beginning on or after January 1, 2015,
13    and ending prior to July 1, 2017, an amount equal to 3.75%
14    of the taxpayer's net income for the taxable year.
15        (5.3) In the case of an individual, trust, or estate,
16    for taxable years beginning prior to July 1, 2017, and
17    ending after June 30, 2017, an amount equal to the sum of
18    (i) 3.75% of the taxpayer's net income for the period
19    prior to July 1, 2017, as calculated under Section 202.5,
20    and (ii) 4.95% of the taxpayer's net income for the period
21    after June 30, 2017, as calculated under Section 202.5.
22        (5.4) In the case of an individual, trust, or estate,
23    for taxable years beginning on or after July 1, 2017, an
24    amount equal to 4.95% of the taxpayer's net income for the
25    taxable year.
26        (6) In the case of a corporation, for taxable years

 

 

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1    ending prior to July 1, 1989, an amount equal to 4% of the
2    taxpayer's net income for the taxable year.
3        (7) In the case of a corporation, for taxable years
4    beginning prior to July 1, 1989 and ending after June 30,
5    1989, an amount equal to the sum of (i) 4% of the
6    taxpayer's net income for the period prior to July 1,
7    1989, as calculated under Section 202.3, and (ii) 4.8% of
8    the taxpayer's net income for the period after June 30,
9    1989, as calculated under Section 202.3.
10        (8) In the case of a corporation, for taxable years
11    beginning after June 30, 1989, and ending prior to January
12    1, 2011, an amount equal to 4.8% of the taxpayer's net
13    income for the taxable year.
14        (9) In the case of a corporation, for taxable years
15    beginning prior to January 1, 2011, and ending after
16    December 31, 2010, an amount equal to the sum of (i) 4.8%
17    of the taxpayer's net income for the period prior to
18    January 1, 2011, as calculated under Section 202.5, and
19    (ii) 7% of the taxpayer's net income for the period after
20    December 31, 2010, as calculated under Section 202.5.
21        (10) In the case of a corporation, for taxable years
22    beginning on or after January 1, 2011, and ending prior to
23    January 1, 2015, an amount equal to 7% of the taxpayer's
24    net income for the taxable year.
25        (11) In the case of a corporation, for taxable years
26    beginning prior to January 1, 2015, and ending after

 

 

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1    December 31, 2014, an amount equal to the sum of (i) 7% of
2    the taxpayer's net income for the period prior to January
3    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
4    of the taxpayer's net income for the period after December
5    31, 2014, as calculated under Section 202.5.
6        (12) In the case of a corporation, for taxable years
7    beginning on or after January 1, 2015, and ending prior to
8    July 1, 2017, an amount equal to 5.25% of the taxpayer's
9    net income for the taxable year.
10        (13) In the case of a corporation, for taxable years
11    beginning prior to July 1, 2017, and ending after June 30,
12    2017, an amount equal to the sum of (i) 5.25% of the
13    taxpayer's net income for the period prior to July 1,
14    2017, as calculated under Section 202.5, and (ii) 7% of
15    the taxpayer's net income for the period after June 30,
16    2017, as calculated under Section 202.5.
17        (14) In the case of a corporation, for taxable years
18    beginning on or after July 1, 2017, an amount equal to 7%
19    of the taxpayer's net income for the taxable year.
20    The rates under this subsection (b) are subject to the
21provisions of Section 201.5.
22    (b-5) Surcharge; sale or exchange of assets, properties,
23and intangibles of organization gaming licensees. For each of
24taxable years 2019 through 2027, a surcharge is imposed on all
25taxpayers on income arising from the sale or exchange of
26capital assets, depreciable business property, real property

 

 

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1used in the trade or business, and Section 197 intangibles (i)
2of an organization licensee under the Illinois Horse Racing
3Act of 1975 and (ii) of an organization gaming licensee under
4the Illinois Gambling Act. The amount of the surcharge is
5equal to the amount of federal income tax liability for the
6taxable year attributable to those sales and exchanges. The
7surcharge imposed shall not apply if:
8        (1) the organization gaming license, organization
9    license, or racetrack property is transferred as a result
10    of any of the following:
11            (A) bankruptcy, a receivership, or a debt
12        adjustment initiated by or against the initial
13        licensee or the substantial owners of the initial
14        licensee;
15            (B) cancellation, revocation, or termination of
16        any such license by the Illinois Gaming Board or the
17        Illinois Racing Board;
18            (C) a determination by the Illinois Gaming Board
19        that transfer of the license is in the best interests
20        of Illinois gaming;
21            (D) the death of an owner of the equity interest in
22        a licensee;
23            (E) the acquisition of a controlling interest in
24        the stock or substantially all of the assets of a
25        publicly traded company;
26            (F) a transfer by a parent company to a wholly

 

 

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1        owned subsidiary; or
2            (G) the transfer or sale to or by one person to
3        another person where both persons were initial owners
4        of the license when the license was issued; or
5        (2) the controlling interest in the organization
6    gaming license, organization license, or racetrack
7    property is transferred in a transaction to lineal
8    descendants in which no gain or loss is recognized or as a
9    result of a transaction in accordance with Section 351 of
10    the Internal Revenue Code in which no gain or loss is
11    recognized; or
12        (3) live horse racing was not conducted in 2010 at a
13    racetrack located within 3 miles of the Mississippi River
14    under a license issued pursuant to the Illinois Horse
15    Racing Act of 1975.
16    The transfer of an organization gaming license,
17organization license, or racetrack property by a person other
18than the initial licensee to receive the organization gaming
19license is not subject to a surcharge. The Department shall
20adopt rules necessary to implement and administer this
21subsection.
22    (c) Personal Property Tax Replacement Income Tax.
23Beginning on July 1, 1979 and thereafter, in addition to such
24income tax, there is also hereby imposed the Personal Property
25Tax Replacement Income Tax measured by net income on every
26corporation (including Subchapter S corporations), partnership

 

 

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1and trust, for each taxable year ending after June 30, 1979.
2Such taxes are imposed on the privilege of earning or
3receiving income in or as a resident of this State. The
4Personal Property Tax Replacement Income Tax shall be in
5addition to the income tax imposed by subsections (a) and (b)
6of this Section and in addition to all other occupation or
7privilege taxes imposed by this State or by any municipal
8corporation or political subdivision thereof.
9    (d) Additional Personal Property Tax Replacement Income
10Tax Rates. The personal property tax replacement income tax
11imposed by this subsection and subsection (c) of this Section
12in the case of a corporation, other than a Subchapter S
13corporation and except as adjusted by subsection (d-1), shall
14be an additional amount equal to 2.85% of such taxpayer's net
15income for the taxable year, except that beginning on January
161, 1981, and thereafter, the rate of 2.85% specified in this
17subsection shall be reduced to 2.5%, and in the case of a
18partnership, trust or a Subchapter S corporation shall be an
19additional amount equal to 1.5% of such taxpayer's net income
20for the taxable year.
21    (d-1) Rate reduction for certain foreign insurers. In the
22case of a foreign insurer, as defined by Section 35A-5 of the
23Illinois Insurance Code, whose state or country of domicile
24imposes on insurers domiciled in Illinois a retaliatory tax
25(excluding any insurer whose premiums from reinsurance assumed
26are 50% or more of its total insurance premiums as determined

 

 

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1under paragraph (2) of subsection (b) of Section 304, except
2that for purposes of this determination premiums from
3reinsurance do not include premiums from inter-affiliate
4reinsurance arrangements), beginning with taxable years ending
5on or after December 31, 1999, the sum of the rates of tax
6imposed by subsections (b) and (d) shall be reduced (but not
7increased) to the rate at which the total amount of tax imposed
8under this Act, net of all credits allowed under this Act,
9shall equal (i) the total amount of tax that would be imposed
10on the foreign insurer's net income allocable to Illinois for
11the taxable year by such foreign insurer's state or country of
12domicile if that net income were subject to all income taxes
13and taxes measured by net income imposed by such foreign
14insurer's state or country of domicile, net of all credits
15allowed or (ii) a rate of zero if no such tax is imposed on
16such income by the foreign insurer's state of domicile. For
17the purposes of this subsection (d-1), an inter-affiliate
18includes a mutual insurer under common management.
19        (1) For the purposes of subsection (d-1), in no event
20    shall the sum of the rates of tax imposed by subsections
21    (b) and (d) be reduced below the rate at which the sum of:
22            (A) the total amount of tax imposed on such
23        foreign insurer under this Act for a taxable year, net
24        of all credits allowed under this Act, plus
25            (B) the privilege tax imposed by Section 409 of
26        the Illinois Insurance Code, the fire insurance

 

 

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1        company tax imposed by Section 12 of the Fire
2        Investigation Act, and the fire department taxes
3        imposed under Section 11-10-1 of the Illinois
4        Municipal Code,
5    equals 1.25% for taxable years ending prior to December
6    31, 2003, or 1.75% for taxable years ending on or after
7    December 31, 2003, of the net taxable premiums written for
8    the taxable year, as described by subsection (1) of
9    Section 409 of the Illinois Insurance Code. This paragraph
10    will in no event increase the rates imposed under
11    subsections (b) and (d).
12        (2) Any reduction in the rates of tax imposed by this
13    subsection shall be applied first against the rates
14    imposed by subsection (b) and only after the tax imposed
15    by subsection (a) net of all credits allowed under this
16    Section other than the credit allowed under subsection (i)
17    has been reduced to zero, against the rates imposed by
18    subsection (d).
19    This subsection (d-1) is exempt from the provisions of
20Section 250.
21    (e) Investment credit. A taxpayer shall be allowed a
22credit against the Personal Property Tax Replacement Income
23Tax for investment in qualified property.
24        (1) A taxpayer shall be allowed a credit equal to .5%
25    of the basis of qualified property placed in service
26    during the taxable year, provided such property is placed

 

 

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1    in service on or after July 1, 1984. There shall be allowed
2    an additional credit equal to .5% of the basis of
3    qualified property placed in service during the taxable
4    year, provided such property is placed in service on or
5    after July 1, 1986, and the taxpayer's base employment
6    within Illinois has increased by 1% or more over the
7    preceding year as determined by the taxpayer's employment
8    records filed with the Illinois Department of Employment
9    Security. Taxpayers who are new to Illinois shall be
10    deemed to have met the 1% growth in base employment for the
11    first year in which they file employment records with the
12    Illinois Department of Employment Security. The provisions
13    added to this Section by Public Act 85-1200 (and restored
14    by Public Act 87-895) shall be construed as declaratory of
15    existing law and not as a new enactment. If, in any year,
16    the increase in base employment within Illinois over the
17    preceding year is less than 1%, the additional credit
18    shall be limited to that percentage times a fraction, the
19    numerator of which is .5% and the denominator of which is
20    1%, but shall not exceed .5%. The investment credit shall
21    not be allowed to the extent that it would reduce a
22    taxpayer's liability in any tax year below zero, nor may
23    any credit for qualified property be allowed for any year
24    other than the year in which the property was placed in
25    service in Illinois. For tax years ending on or after
26    December 31, 1987, and on or before December 31, 1988, the

 

 

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1    credit shall be allowed for the tax year in which the
2    property is placed in service, or, if the amount of the
3    credit exceeds the tax liability for that year, whether it
4    exceeds the original liability or the liability as later
5    amended, such excess may be carried forward and applied to
6    the tax liability of the 5 taxable years following the
7    excess credit years if the taxpayer (i) makes investments
8    which cause the creation of a minimum of 2,000 full-time
9    equivalent jobs in Illinois, (ii) is located in an
10    enterprise zone established pursuant to the Illinois
11    Enterprise Zone Act and (iii) is certified by the
12    Department of Commerce and Community Affairs (now
13    Department of Commerce and Economic Opportunity) as
14    complying with the requirements specified in clause (i)
15    and (ii) by July 1, 1986. The Department of Commerce and
16    Community Affairs (now Department of Commerce and Economic
17    Opportunity) shall notify the Department of Revenue of all
18    such certifications immediately. For tax years ending
19    after December 31, 1988, the credit shall be allowed for
20    the tax year in which the property is placed in service,
21    or, if the amount of the credit exceeds the tax liability
22    for that year, whether it exceeds the original liability
23    or the liability as later amended, such excess may be
24    carried forward and applied to the tax liability of the 5
25    taxable years following the excess credit years. The
26    credit shall be applied to the earliest year for which

 

 

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1    there is a liability. If there is credit from more than one
2    tax year that is available to offset a liability, earlier
3    credit shall be applied first.
4        (2) The term "qualified property" means property
5    which:
6            (A) is tangible, whether new or used, including
7        buildings and structural components of buildings and
8        signs that are real property, but not including land
9        or improvements to real property that are not a
10        structural component of a building such as
11        landscaping, sewer lines, local access roads, fencing,
12        parking lots, and other appurtenances;
13            (B) is depreciable pursuant to Section 167 of the
14        Internal Revenue Code, except that "3-year property"
15        as defined in Section 168(c)(2)(A) of that Code is not
16        eligible for the credit provided by this subsection
17        (e);
18            (C) is acquired by purchase as defined in Section
19        179(d) of the Internal Revenue Code;
20            (D) is used in Illinois by a taxpayer who is
21        primarily engaged in manufacturing, or in mining coal
22        or fluorite, or in retailing, or was placed in service
23        on or after July 1, 2006 in a River Edge Redevelopment
24        Zone established pursuant to the River Edge
25        Redevelopment Zone Act; and
26            (E) has not previously been used in Illinois in

 

 

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1        such a manner and by such a person as would qualify for
2        the credit provided by this subsection (e) or
3        subsection (f).
4        (3) For purposes of this subsection (e),
5    "manufacturing" means the material staging and production
6    of tangible personal property by procedures commonly
7    regarded as manufacturing, processing, fabrication, or
8    assembling which changes some existing material into new
9    shapes, new qualities, or new combinations. For purposes
10    of this subsection (e) the term "mining" shall have the
11    same meaning as the term "mining" in Section 613(c) of the
12    Internal Revenue Code. For purposes of this subsection
13    (e), the term "retailing" means the sale of tangible
14    personal property for use or consumption and not for
15    resale, or services rendered in conjunction with the sale
16    of tangible personal property for use or consumption and
17    not for resale. For purposes of this subsection (e),
18    "tangible personal property" has the same meaning as when
19    that term is used in the Retailers' Occupation Tax Act,
20    and, for taxable years ending after December 31, 2008,
21    does not include the generation, transmission, or
22    distribution of electricity.
23        (4) The basis of qualified property shall be the basis
24    used to compute the depreciation deduction for federal
25    income tax purposes.
26        (5) If the basis of the property for federal income

 

 

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1    tax depreciation purposes is increased after it has been
2    placed in service in Illinois by the taxpayer, the amount
3    of such increase shall be deemed property placed in
4    service on the date of such increase in basis.
5        (6) The term "placed in service" shall have the same
6    meaning as under Section 46 of the Internal Revenue Code.
7        (7) If during any taxable year, any property ceases to
8    be qualified property in the hands of the taxpayer within
9    48 months after being placed in service, or the situs of
10    any qualified property is moved outside Illinois within 48
11    months after being placed in service, the Personal
12    Property Tax Replacement Income Tax for such taxable year
13    shall be increased. Such increase shall be determined by
14    (i) recomputing the investment credit which would have
15    been allowed for the year in which credit for such
16    property was originally allowed by eliminating such
17    property from such computation and, (ii) subtracting such
18    recomputed credit from the amount of credit previously
19    allowed. For the purposes of this paragraph (7), a
20    reduction of the basis of qualified property resulting
21    from a redetermination of the purchase price shall be
22    deemed a disposition of qualified property to the extent
23    of such reduction.
24        (8) Unless the investment credit is extended by law,
25    the basis of qualified property shall not include costs
26    incurred after December 31, 2018, except for costs

 

 

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1    incurred pursuant to a binding contract entered into on or
2    before December 31, 2018.
3        (9) Each taxable year ending before December 31, 2000,
4    a partnership may elect to pass through to its partners
5    the credits to which the partnership is entitled under
6    this subsection (e) for the taxable year. A partner may
7    use the credit allocated to him or her under this
8    paragraph only against the tax imposed in subsections (c)
9    and (d) of this Section. If the partnership makes that
10    election, those credits shall be allocated among the
11    partners in the partnership in accordance with the rules
12    set forth in Section 704(b) of the Internal Revenue Code,
13    and the rules promulgated under that Section, and the
14    allocated amount of the credits shall be allowed to the
15    partners for that taxable year. The partnership shall make
16    this election on its Personal Property Tax Replacement
17    Income Tax return for that taxable year. The election to
18    pass through the credits shall be irrevocable.
19        For taxable years ending on or after December 31,
20    2000, a partner that qualifies its partnership for a
21    subtraction under subparagraph (I) of paragraph (2) of
22    subsection (d) of Section 203 or a shareholder that
23    qualifies a Subchapter S corporation for a subtraction
24    under subparagraph (S) of paragraph (2) of subsection (b)
25    of Section 203 shall be allowed a credit under this
26    subsection (e) equal to its share of the credit earned

 

 

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1    under this subsection (e) during the taxable year by the
2    partnership or Subchapter S corporation, determined in
3    accordance with the determination of income and
4    distributive share of income under Sections 702 and 704
5    and Subchapter S of the Internal Revenue Code. This
6    paragraph is exempt from the provisions of Section 250.
7    (f) Investment credit; Enterprise Zone; River Edge
8Redevelopment Zone.
9        (1) A taxpayer shall be allowed a credit against the
10    tax imposed by subsections (a) and (b) of this Section for
11    investment in qualified property which is placed in
12    service in an Enterprise Zone created pursuant to the
13    Illinois Enterprise Zone Act or, for property placed in
14    service on or after July 1, 2006, a River Edge
15    Redevelopment Zone established pursuant to the River Edge
16    Redevelopment Zone Act. For partners, shareholders of
17    Subchapter S corporations, and owners of limited liability
18    companies, if the liability company is treated as a
19    partnership for purposes of federal and State income
20    taxation, for taxable years ending before December 31,
21    2023, there shall be allowed a credit under this
22    subsection (f) to be determined in accordance with the
23    determination of income and distributive share of income
24    under Sections 702 and 704 and Subchapter S of the
25    Internal Revenue Code. For taxable years ending on or
26    after December 31, 2023, for partners and shareholders of

 

 

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1    Subchapter S corporations, the provisions of Section 251
2    shall apply with respect to the credit under this
3    subsection. The credit shall be .5% of the basis for such
4    property. The credit shall be available only in the
5    taxable year in which the property is placed in service in
6    the Enterprise Zone or River Edge Redevelopment Zone and
7    shall not be allowed to the extent that it would reduce a
8    taxpayer's liability for the tax imposed by subsections
9    (a) and (b) of this Section to below zero. For tax years
10    ending on or after December 31, 1985, the credit shall be
11    allowed for the tax year in which the property is placed in
12    service, or, if the amount of the credit exceeds the tax
13    liability for that year, whether it exceeds the original
14    liability or the liability as later amended, such excess
15    may be carried forward and applied to the tax liability of
16    the 5 taxable years following the excess credit year. The
17    credit shall be applied to the earliest year for which
18    there is a liability. If there is credit from more than one
19    tax year that is available to offset a liability, the
20    credit accruing first in time shall be applied first.
21        (2) The term qualified property means property which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

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

 

 

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1    after being placed in service, the tax imposed under
2    subsections (a) and (b) of this Section for such taxable
3    year shall be increased. Such increase shall be determined
4    by (i) recomputing the investment credit which would have
5    been allowed for the year in which credit for such
6    property was originally allowed by eliminating such
7    property from such computation, and (ii) subtracting such
8    recomputed credit from the amount of credit previously
9    allowed. For the purposes of this paragraph (6), a
10    reduction of the basis of qualified property resulting
11    from a redetermination of the purchase price shall be
12    deemed a disposition of qualified property to the extent
13    of such reduction.
14        (7) There shall be allowed an additional credit equal
15    to 0.5% of the basis of qualified property placed in
16    service during the taxable year in a River Edge
17    Redevelopment Zone, provided such property is placed in
18    service on or after July 1, 2006, and the taxpayer's base
19    employment within Illinois has increased by 1% or more
20    over the preceding year as determined by the taxpayer's
21    employment records filed with the Illinois Department of
22    Employment Security. Taxpayers who are new to Illinois
23    shall be deemed to have met the 1% growth in base
24    employment for the first year in which they file
25    employment records with the Illinois Department of
26    Employment Security. If, in any year, the increase in base

 

 

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1    employment within Illinois over the preceding year is less
2    than 1%, the additional credit shall be limited to that
3    percentage times a fraction, the numerator of which is
4    0.5% and the denominator of which is 1%, but shall not
5    exceed 0.5%.
6        (8) For taxable years beginning on or after January 1,
7    2021, there shall be allowed an Enterprise Zone
8    construction jobs credit against the taxes imposed under
9    subsections (a) and (b) of this Section as provided in
10    Section 13 of the Illinois Enterprise Zone Act.
11        The credit or credits may not reduce the taxpayer's
12    liability to less than zero. If the amount of the credit or
13    credits exceeds the taxpayer's liability, the excess may
14    be carried forward and applied against the taxpayer's
15    liability in succeeding calendar years in the same manner
16    provided under paragraph (4) of Section 211 of this Act.
17    The credit or credits shall be applied to the earliest
18    year for which there is a tax liability. If there are
19    credits from more than one taxable year that are available
20    to offset a liability, the earlier credit shall be applied
21    first.
22        For partners, shareholders of Subchapter S
23    corporations, and owners of limited liability companies,
24    if the liability company is treated as a partnership for
25    the purposes of federal and State income taxation, for
26    taxable years ending before December 31, 2023, there shall

 

 

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1    be allowed a credit under this Section to be determined in
2    accordance with the determination of income and
3    distributive share of income under Sections 702 and 704
4    and Subchapter S of the Internal Revenue Code. For taxable
5    years ending on or after December 31, 2023, for partners
6    and shareholders of Subchapter S corporations, the
7    provisions of Section 251 shall apply with respect to the
8    credit under this subsection.
9        The total aggregate amount of credits awarded under
10    the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
11    shall not exceed $20,000,000 in any State fiscal year.
12        This paragraph (8) is exempt from the provisions of
13    Section 250.
14    (g) (Blank).
15    (h) Investment credit; High Impact Business.
16        (1) Subject to subsections (b) and (b-5) of Section
17    5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
18    be allowed a credit against the tax imposed by subsections
19    (a) and (b) of this Section for investment in qualified
20    property which is placed in service by a Department of
21    Commerce and Economic Opportunity designated High Impact
22    Business. The credit shall be .5% of the basis for such
23    property. The credit shall not be available (i) until the
24    minimum investments in qualified property set forth in
25    subdivision (a)(3)(A) of Section 5.5 of the Illinois
26    Enterprise Zone Act have been satisfied or (ii) until the

 

 

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1    time authorized in subsection (b-5) of the Illinois
2    Enterprise Zone Act for entities designated as High Impact
3    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
4    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
5    Act, and shall not be allowed to the extent that it would
6    reduce a taxpayer's liability for the tax imposed by
7    subsections (a) and (b) of this Section to below zero. The
8    credit applicable to such investments shall be taken in
9    the taxable year in which such investments have been
10    completed. The credit for additional investments beyond
11    the minimum investment by a designated high impact
12    business authorized under subdivision (a)(3)(A) of Section
13    5.5 of the Illinois Enterprise Zone Act shall be available
14    only in the taxable year in which the property is placed in
15    service and shall not be allowed to the extent that it
16    would reduce a taxpayer's liability for the tax imposed by
17    subsections (a) and (b) of this Section to below zero. For
18    tax years ending on or after December 31, 1987, the credit
19    shall be allowed for the tax year in which the property is
20    placed in service, or, if the amount of the credit exceeds
21    the tax liability for that year, whether it exceeds the
22    original liability or the liability as later amended, such
23    excess may be carried forward and applied to the tax
24    liability of the 5 taxable years following the excess
25    credit year. The credit shall be applied to the earliest
26    year for which there is a liability. If there is credit

 

 

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1    from more than one tax year that is available to offset a
2    liability, the credit accruing first in time shall be
3    applied first.
4        Changes made in this subdivision (h)(1) by Public Act
5    88-670 restore changes made by Public Act 85-1182 and
6    reflect existing law.
7        (2) The term qualified property means property which:
8            (A) is tangible, whether new or used, including
9        buildings and structural components of buildings;
10            (B) is depreciable pursuant to Section 167 of the
11        Internal Revenue Code, except that "3-year property"
12        as defined in Section 168(c)(2)(A) of that Code is not
13        eligible for the credit provided by this subsection
14        (h);
15            (C) is acquired by purchase as defined in Section
16        179(d) of the Internal Revenue Code; and
17            (D) is not eligible for the Enterprise Zone
18        Investment Credit provided by subsection (f) of this
19        Section.
20        (3) The basis of qualified property shall be the basis
21    used to compute the depreciation deduction for federal
22    income tax purposes.
23        (4) If the basis of the property for federal income
24    tax depreciation purposes is increased after it has been
25    placed in service in a federally designated Foreign Trade
26    Zone or Sub-Zone located in Illinois by the taxpayer, the

 

 

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1    amount of such increase shall be deemed property placed in
2    service on the date of such increase in basis.
3        (5) The term "placed in service" shall have the same
4    meaning as under Section 46 of the Internal Revenue Code.
5        (6) If during any taxable year ending on or before
6    December 31, 1996, any property ceases to be qualified
7    property in the hands of the taxpayer within 48 months
8    after being placed in service, or the situs of any
9    qualified property is moved outside Illinois within 48
10    months after being placed in service, the tax imposed
11    under subsections (a) and (b) of this Section for such
12    taxable year shall be increased. Such increase shall be
13    determined by (i) recomputing the investment credit which
14    would have been allowed for the year in which credit for
15    such property was originally allowed by eliminating such
16    property from such computation, and (ii) subtracting such
17    recomputed credit from the amount of credit previously
18    allowed. For the purposes of this paragraph (6), a
19    reduction of the basis of qualified property resulting
20    from a redetermination of the purchase price shall be
21    deemed a disposition of qualified property to the extent
22    of such reduction.
23        (7) Beginning with tax years ending after December 31,
24    1996, if a taxpayer qualifies for the credit under this
25    subsection (h) and thereby is granted a tax abatement and
26    the taxpayer relocates its entire facility in violation of

 

 

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1    the explicit terms and length of the contract under
2    Section 18-183 of the Property Tax Code, the tax imposed
3    under subsections (a) and (b) of this Section shall be
4    increased for the taxable year in which the taxpayer
5    relocated its facility by an amount equal to the amount of
6    credit received by the taxpayer under this subsection (h).
7    (h-5) High Impact Business construction jobs credit. For
8taxable years beginning on or after January 1, 2021, there
9shall also be allowed a High Impact Business construction jobs
10credit against the tax imposed under subsections (a) and (b)
11of this Section as provided in subsections (i) and (j) of
12Section 5.5 of the Illinois Enterprise Zone Act.
13    The credit or credits may not reduce the taxpayer's
14liability to less than zero. If the amount of the credit or
15credits exceeds the taxpayer's liability, the excess may be
16carried forward and applied against the taxpayer's liability
17in succeeding calendar years in the manner provided under
18paragraph (4) of Section 211 of this Act. The credit or credits
19shall be applied to the earliest year for which there is a tax
20liability. If there are credits from more than one taxable
21year that are available to offset a liability, the earlier
22credit shall be applied first.
23    For partners, shareholders of Subchapter S corporations,
24and owners of limited liability companies, for taxable years
25ending before December 31, 2023, if the liability company is
26treated as a partnership for the purposes of federal and State

 

 

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1income taxation, there shall be allowed a credit under this
2Section to be determined in accordance with the determination
3of income and distributive share of income under Sections 702
4and 704 and Subchapter S of the Internal Revenue Code. For
5taxable years ending on or after December 31, 2023, for
6partners and shareholders of Subchapter S corporations, the
7provisions of Section 251 shall apply with respect to the
8credit under this subsection.
9    The total aggregate amount of credits awarded under the
10Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
11exceed $20,000,000 in any State fiscal year.
12    This subsection (h-5) is exempt from the provisions of
13Section 250.
14    (i) Credit for Personal Property Tax Replacement Income
15Tax. For tax years ending prior to December 31, 2003, a credit
16shall be allowed against the tax imposed by subsections (a)
17and (b) of this Section for the tax imposed by subsections (c)
18and (d) of this Section. This credit shall be computed by
19multiplying the tax imposed by subsections (c) and (d) of this
20Section by a fraction, the numerator of which is base income
21allocable to Illinois and the denominator of which is Illinois
22base income, and further multiplying the product by the tax
23rate imposed by subsections (a) and (b) of this Section.
24    Any credit earned on or after December 31, 1986 under this
25subsection which is unused in the year the credit is computed
26because it exceeds the tax liability imposed by subsections

 

 

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1(a) and (b) for that year (whether it exceeds the original
2liability or the liability as later amended) may be carried
3forward and applied to the tax liability imposed by
4subsections (a) and (b) of the 5 taxable years following the
5excess credit year, provided that no credit may be carried
6forward to any year ending on or after December 31, 2003. This
7credit shall be applied first to the earliest year for which
8there is a liability. If there is a credit under this
9subsection from more than one tax year that is available to
10offset a liability the earliest credit arising under this
11subsection shall be applied first.
12    If, during any taxable year ending on or after December
1331, 1986, the tax imposed by subsections (c) and (d) of this
14Section for which a taxpayer has claimed a credit under this
15subsection (i) is reduced, the amount of credit for such tax
16shall also be reduced. Such reduction shall be determined by
17recomputing the credit to take into account the reduced tax
18imposed by subsections (c) and (d). If any portion of the
19reduced amount of credit has been carried to a different
20taxable year, an amended return shall be filed for such
21taxable year to reduce the amount of credit claimed.
22    (j) Training expense credit. Beginning with tax years
23ending on or after December 31, 1986 and prior to December 31,
242003, a taxpayer shall be allowed a credit against the tax
25imposed by subsections (a) and (b) under this Section for all
26amounts paid or accrued, on behalf of all persons employed by

 

 

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1the taxpayer in Illinois or Illinois residents employed
2outside of Illinois by a taxpayer, for educational or
3vocational training in semi-technical or technical fields or
4semi-skilled or skilled fields, which were deducted from gross
5income in the computation of taxable income. The credit
6against the tax imposed by subsections (a) and (b) shall be
71.6% of such training expenses. For partners, shareholders of
8subchapter S corporations, and owners of limited liability
9companies, if the liability company is treated as a
10partnership for purposes of federal and State income taxation,
11for taxable years ending before December 31, 2023, there shall
12be allowed a credit under this subsection (j) to be determined
13in accordance with the determination of income and
14distributive share of income under Sections 702 and 704 and
15subchapter S of the Internal Revenue Code. For taxable years
16ending on or after December 31, 2023, for partners and
17shareholders of Subchapter S corporations, the provisions of
18Section 251 shall apply with respect to the credit under this
19subsection.
20    Any credit allowed under this subsection which is unused
21in the year the credit is earned may be carried forward to each
22of the 5 taxable years following the year for which the credit
23is first computed until it is used. This credit shall be
24applied first to the earliest year for which there is a
25liability. If there is a credit under this subsection from
26more than one tax year that is available to offset a liability,

 

 

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1the earliest credit arising under this subsection shall be
2applied first. No carryforward credit may be claimed in any
3tax year ending on or after December 31, 2003.
4    (k) Research and development credit. For tax years ending
5after July 1, 1990 and prior to December 31, 2003, and
6beginning again for tax years ending on or after December 31,
72004, and ending prior to January 1, 2032 January 1, 2027, a
8taxpayer shall be allowed a credit against the tax imposed by
9subsections (a) and (b) of this Section for increasing
10research activities in this State. The credit allowed against
11the tax imposed by subsections (a) and (b) shall be equal to 6
121/2% of the qualifying expenditures for increasing research
13activities in this State. For partners, shareholders of
14subchapter S corporations, and owners of limited liability
15companies, if the liability company is treated as a
16partnership for purposes of federal and State income taxation,
17for taxable years ending before December 31, 2023, there shall
18be allowed a credit under this subsection to be determined in
19accordance with the determination of income and distributive
20share of income under Sections 702 and 704 and subchapter S of
21the Internal Revenue Code. For taxable years ending on or
22after December 31, 2023, for partners and shareholders of
23Subchapter S corporations, the provisions of Section 251 shall
24apply with respect to the credit under this subsection.
25    For purposes of this subsection, "qualifying expenditures"
26means the qualifying expenditures as defined for the federal

 

 

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1credit for increasing research activities which would be
2allowable under Section 41 of the Internal Revenue Code and
3which are conducted in this State, "qualifying expenditures
4for increasing research activities in this State" means the
5excess of qualifying expenditures for the taxable year in
6which incurred over qualifying expenditures for the base
7period, "qualifying expenditures for the base period" means
8the average of the qualifying expenditures for each year in
9the base period, and "base period" means the 3 taxable years
10immediately preceding the taxable year for which the
11determination is being made.
12    Any credit in excess of the tax liability for the taxable
13year may be carried forward. A taxpayer may elect to have the
14unused credit shown on its final completed return carried over
15as a credit against the tax liability for the following 5
16taxable years or until it has been fully used, whichever
17occurs first; provided that no credit earned in a tax year
18ending prior to December 31, 2003 may be carried forward to any
19year ending on or after December 31, 2003.
20    If an unused credit is carried forward to a given year from
212 or more earlier years, that credit arising in the earliest
22year will be applied first against the tax liability for the
23given year. If a tax liability for the given year still
24remains, the credit from the next earliest year will then be
25applied, and so on, until all credits have been used or no tax
26liability for the given year remains. Any remaining unused

 

 

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1credit or credits then will be carried forward to the next
2following year in which a tax liability is incurred, except
3that no credit can be carried forward to a year which is more
4than 5 years after the year in which the expense for which the
5credit is given was incurred.
6    No inference shall be drawn from Public Act 91-644 in
7construing this Section for taxable years beginning before
8January 1, 1999.
9    It is the intent of the General Assembly that the research
10and development credit under this subsection (k) shall apply
11continuously for all tax years ending on or after December 31,
122004 and ending prior to January 1, 2032 January 1, 2027,
13including, but not limited to, the period beginning on January
141, 2016 and ending on July 6, 2017 (the effective date of
15Public Act 100-22). All actions taken in reliance on the
16continuation of the credit under this subsection (k) by any
17taxpayer are hereby validated.
18    (l) Environmental Remediation Tax Credit.
19        (i) For tax years ending after December 31, 1997 and
20    on or before December 31, 2001, a taxpayer shall be
21    allowed a credit against the tax imposed by subsections
22    (a) and (b) of this Section for certain amounts paid for
23    unreimbursed eligible remediation costs, as specified in
24    this subsection. For purposes of this Section,
25    "unreimbursed eligible remediation costs" means costs
26    approved by the Illinois Environmental Protection Agency

 

 

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1    ("Agency") under Section 58.14 of the Environmental
2    Protection Act that were paid in performing environmental
3    remediation at a site for which a No Further Remediation
4    Letter was issued by the Agency and recorded under Section
5    58.10 of the Environmental Protection Act. The credit must
6    be claimed for the taxable year in which Agency approval
7    of the eligible remediation costs is granted. The credit
8    is not available to any taxpayer if the taxpayer or any
9    related party caused or contributed to, in any material
10    respect, a release of regulated substances on, in, or
11    under the site that was identified and addressed by the
12    remedial action pursuant to the Site Remediation Program
13    of the Environmental Protection Act. After the Pollution
14    Control Board rules are adopted pursuant to the Illinois
15    Administrative Procedure Act for the administration and
16    enforcement of Section 58.9 of the Environmental
17    Protection Act, determinations as to credit availability
18    for purposes of this Section shall be made consistent with
19    those rules. For purposes of this Section, "taxpayer"
20    includes a person whose tax attributes the taxpayer has
21    succeeded to under Section 381 of the Internal Revenue
22    Code and "related party" includes the persons disallowed a
23    deduction for losses by paragraphs (b), (c), and (f)(1) of
24    Section 267 of the Internal Revenue Code by virtue of
25    being a related taxpayer, as well as any of its partners.
26    The credit allowed against the tax imposed by subsections

 

 

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1    (a) and (b) shall be equal to 25% of the unreimbursed
2    eligible remediation costs in excess of $100,000 per site,
3    except that the $100,000 threshold shall not apply to any
4    site contained in an enterprise zone as determined by the
5    Department of Commerce and Community Affairs (now
6    Department of Commerce and Economic Opportunity). The
7    total credit allowed shall not exceed $40,000 per year
8    with a maximum total of $150,000 per site. For partners
9    and shareholders of subchapter S corporations, there shall
10    be allowed a credit under this subsection to be determined
11    in accordance with the determination of income and
12    distributive share of income under Sections 702 and 704
13    and subchapter S of the Internal Revenue Code.
14        (ii) A credit allowed under this subsection that is
15    unused in the year the credit is earned may be carried
16    forward to each of the 5 taxable years following the year
17    for which the credit is first earned until it is used. The
18    term "unused credit" does not include any amounts of
19    unreimbursed eligible remediation costs in excess of the
20    maximum credit per site authorized under paragraph (i).
21    This credit shall be applied first to the earliest year
22    for which there is a liability. If there is a credit under
23    this subsection from more than one tax year that is
24    available to offset a liability, the earliest credit
25    arising under this subsection shall be applied first. A
26    credit allowed under this subsection may be sold to a

 

 

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1    buyer as part of a sale of all or part of the remediation
2    site for which the credit was granted. The purchaser of a
3    remediation site and the tax credit shall succeed to the
4    unused credit and remaining carry-forward period of the
5    seller. To perfect the transfer, the assignor shall record
6    the transfer in the chain of title for the site and provide
7    written notice to the Director of the Illinois Department
8    of Revenue of the assignor's intent to sell the
9    remediation site and the amount of the tax credit to be
10    transferred as a portion of the sale. In no event may a
11    credit be transferred to any taxpayer if the taxpayer or a
12    related party would not be eligible under the provisions
13    of subsection (i).
14        (iii) For purposes of this Section, the term "site"
15    shall have the same meaning as under Section 58.2 of the
16    Environmental Protection Act.
17    (m) Education expense credit. Beginning with tax years
18ending after December 31, 1999, a taxpayer who is the
19custodian of one or more qualifying pupils shall be allowed a
20credit against the tax imposed by subsections (a) and (b) of
21this Section for qualified education expenses incurred on
22behalf of the qualifying pupils. The credit shall be equal to
2325% of qualified education expenses, but in no event may the
24total credit under this subsection claimed by a family that is
25the custodian of qualifying pupils exceed (i) $500 for tax
26years ending prior to December 31, 2017, and (ii) $750 for tax

 

 

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1years ending on or after December 31, 2017. In no event shall a
2credit under this subsection reduce the taxpayer's liability
3under this Act to less than zero. Notwithstanding any other
4provision of law, for taxable years beginning on or after
5January 1, 2017, no taxpayer may claim a credit under this
6subsection (m) if the taxpayer's adjusted gross income for the
7taxable year exceeds (i) $500,000, in the case of spouses
8filing a joint federal tax return or (ii) $250,000, in the case
9of all other taxpayers. This subsection is exempt from the
10provisions of Section 250 of this Act.
11    For purposes of this subsection:
12    "Qualifying pupils" means individuals who (i) are
13residents of the State of Illinois, (ii) are under the age of
1421 at the close of the school year for which a credit is
15sought, and (iii) during the school year for which a credit is
16sought were full-time pupils enrolled in a kindergarten
17through twelfth grade education program at any school, as
18defined in this subsection.
19    "Qualified education expense" means the amount incurred on
20behalf of a qualifying pupil in excess of $250 for tuition,
21book fees, and lab fees at the school in which the pupil is
22enrolled during the regular school year.
23    "School" means any public or nonpublic elementary or
24secondary school in Illinois that is in compliance with Title
25VI of the Civil Rights Act of 1964 and attendance at which
26satisfies the requirements of Section 26-1 of the School Code,

 

 

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1except that nothing shall be construed to require a child to
2attend any particular public or nonpublic school to qualify
3for the credit under this Section.
4    "Custodian" means, with respect to qualifying pupils, an
5Illinois resident who is a parent, the parents, a legal
6guardian, or the legal guardians of the qualifying pupils.
7    (n) River Edge Redevelopment Zone site remediation tax
8credit.
9        (i) For tax years ending on or after December 31,
10    2006, a taxpayer shall be allowed a credit against the tax
11    imposed by subsections (a) and (b) of this Section for
12    certain amounts paid for unreimbursed eligible remediation
13    costs, as specified in this subsection. For purposes of
14    this Section, "unreimbursed eligible remediation costs"
15    means costs approved by the Illinois Environmental
16    Protection Agency ("Agency") under Section 58.14a of the
17    Environmental Protection Act that were paid in performing
18    environmental remediation at a site within a River Edge
19    Redevelopment Zone for which a No Further Remediation
20    Letter was issued by the Agency and recorded under Section
21    58.10 of the Environmental Protection Act. The credit must
22    be claimed for the taxable year in which Agency approval
23    of the eligible remediation costs is granted. The credit
24    is not available to any taxpayer if the taxpayer or any
25    related party caused or contributed to, in any material
26    respect, a release of regulated substances on, in, or

 

 

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1    under the site that was identified and addressed by the
2    remedial action pursuant to the Site Remediation Program
3    of the Environmental Protection Act. Determinations as to
4    credit availability for purposes of this Section shall be
5    made consistent with rules adopted by the Pollution
6    Control Board pursuant to the Illinois Administrative
7    Procedure Act for the administration and enforcement of
8    Section 58.9 of the Environmental Protection Act. For
9    purposes of this Section, "taxpayer" includes a person
10    whose tax attributes the taxpayer has succeeded to under
11    Section 381 of the Internal Revenue Code and "related
12    party" includes the persons disallowed a deduction for
13    losses by paragraphs (b), (c), and (f)(1) of Section 267
14    of the Internal Revenue Code by virtue of being a related
15    taxpayer, as well as any of its partners. The credit
16    allowed against the tax imposed by subsections (a) and (b)
17    shall be equal to 25% of the unreimbursed eligible
18    remediation costs in excess of $100,000 per site.
19        (ii) A credit allowed under this subsection that is
20    unused in the year the credit is earned may be carried
21    forward to each of the 5 taxable years following the year
22    for which the credit is first earned until it is used. This
23    credit shall be applied first to the earliest year for
24    which there is a liability. If there is a credit under this
25    subsection from more than one tax year that is available
26    to offset a liability, the earliest credit arising under

 

 

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1    this subsection shall be applied first. A credit allowed
2    under this subsection may be sold to a buyer as part of a
3    sale of all or part of the remediation site for which the
4    credit was granted. The purchaser of a remediation site
5    and the tax credit shall succeed to the unused credit and
6    remaining carry-forward period of the seller. To perfect
7    the transfer, the assignor shall record the transfer in
8    the chain of title for the site and provide written notice
9    to the Director of the Illinois Department of Revenue of
10    the assignor's intent to sell the remediation site and the
11    amount of the tax credit to be transferred as a portion of
12    the sale. In no event may a credit be transferred to any
13    taxpayer if the taxpayer or a related party would not be
14    eligible under the provisions of subsection (i).
15        (iii) For purposes of this Section, the term "site"
16    shall have the same meaning as under Section 58.2 of the
17    Environmental Protection Act.
18    (o) For each of taxable years during the Compassionate Use
19of Medical Cannabis Program, a surcharge is imposed on all
20taxpayers on income arising from the sale or exchange of
21capital assets, depreciable business property, real property
22used in the trade or business, and Section 197 intangibles of
23an organization registrant under the Compassionate Use of
24Medical Cannabis Program Act. The amount of the surcharge is
25equal to the amount of federal income tax liability for the
26taxable year attributable to those sales and exchanges. The

 

 

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1surcharge imposed does not apply if:
2        (1) the medical cannabis cultivation center
3    registration, medical cannabis dispensary registration, or
4    the property of a registration is transferred as a result
5    of any of the following:
6            (A) bankruptcy, a receivership, or a debt
7        adjustment initiated by or against the initial
8        registration or the substantial owners of the initial
9        registration;
10            (B) cancellation, revocation, or termination of
11        any registration by the Illinois Department of Public
12        Health;
13            (C) a determination by the Illinois Department of
14        Public Health that transfer of the registration is in
15        the best interests of Illinois qualifying patients as
16        defined by the Compassionate Use of Medical Cannabis
17        Program Act;
18            (D) the death of an owner of the equity interest in
19        a registrant;
20            (E) the acquisition of a controlling interest in
21        the stock or substantially all of the assets of a
22        publicly traded company;
23            (F) a transfer by a parent company to a wholly
24        owned subsidiary; or
25            (G) the transfer or sale to or by one person to
26        another person where both persons were initial owners

 

 

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1        of the registration when the registration was issued;
2        or
3        (2) the cannabis cultivation center registration,
4    medical cannabis dispensary registration, or the
5    controlling interest in a registrant's property is
6    transferred in a transaction to lineal descendants in
7    which no gain or loss is recognized or as a result of a
8    transaction in accordance with Section 351 of the Internal
9    Revenue Code in which no gain or loss is recognized.
10    (p) Pass-through entity tax.
11        (1) For taxable years ending on or after December 31,
12    2021 and beginning prior to January 1, 2026, a partnership
13    (other than a publicly traded partnership under Section
14    7704 of the Internal Revenue Code) or Subchapter S
15    corporation may elect to apply the provisions of this
16    subsection. A separate election shall be made for each
17    taxable year. Such election shall be made at such time,
18    and in such form and manner as prescribed by the
19    Department, and, once made, is irrevocable.
20        (2) Entity-level tax. A partnership or Subchapter S
21    corporation electing to apply the provisions of this
22    subsection shall be subject to a tax for the privilege of
23    earning or receiving income in this State in an amount
24    equal to 4.95% of the taxpayer's net income for the
25    taxable year.
26        (3) Net income defined.

 

 

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1            (A) In general. For purposes of paragraph (2), the
2        term net income has the same meaning as defined in
3        Section 202 of this Act, except that, for tax years
4        ending on or after December 31, 2023, a deduction
5        shall be allowed in computing base income for
6        distributions to a retired partner to the extent that
7        the partner's distributions are exempt from tax under
8        Section 203(a)(2)(F) of this Act. In addition, the
9        following modifications shall not apply:
10                (i) the standard exemption allowed under
11            Section 204;
12                (ii) the deduction for net losses allowed
13            under Section 207;
14                (iii) in the case of an S corporation, the
15            modification under Section 203(b)(2)(S); and
16                (iv) in the case of a partnership, the
17            modifications under Section 203(d)(2)(H) and
18            Section 203(d)(2)(I).
19            (B) Special rule for tiered partnerships. If a
20        taxpayer making the election under paragraph (1) is a
21        partner of another taxpayer making the election under
22        paragraph (1), net income shall be computed as
23        provided in subparagraph (A), except that the taxpayer
24        shall subtract its distributive share of the net
25        income of the electing partnership (including its
26        distributive share of the net income of the electing

 

 

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1        partnership derived as a distributive share from
2        electing partnerships in which it is a partner).
3        (4) Credit for entity level tax. Each partner or
4    shareholder of a taxpayer making the election under this
5    Section shall be allowed a credit against the tax imposed
6    under subsections (a) and (b) of Section 201 of this Act
7    for the taxable year of the partnership or Subchapter S
8    corporation for which an election is in effect ending
9    within or with the taxable year of the partner or
10    shareholder in an amount equal to 4.95% times the partner
11    or shareholder's distributive share of the net income of
12    the electing partnership or Subchapter S corporation, but
13    not to exceed the partner's or shareholder's share of the
14    tax imposed under paragraph (1) which is actually paid by
15    the partnership or Subchapter S corporation. If the
16    taxpayer is a partnership or Subchapter S corporation that
17    is itself a partner of a partnership making the election
18    under paragraph (1), the credit under this paragraph shall
19    be allowed to the taxpayer's partners or shareholders (or
20    if the partner is a partnership or Subchapter S
21    corporation then its partners or shareholders) in
22    accordance with the determination of income and
23    distributive share of income under Sections 702 and 704
24    and Subchapter S of the Internal Revenue Code. If the
25    amount of the credit allowed under this paragraph exceeds
26    the partner's or shareholder's liability for tax imposed

 

 

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1    under subsections (a) and (b) of Section 201 of this Act
2    for the taxable year, such excess shall be treated as an
3    overpayment for purposes of Section 909 of this Act.
4        (5) Nonresidents. A nonresident individual who is a
5    partner or shareholder of a partnership or Subchapter S
6    corporation for a taxable year for which an election is in
7    effect under paragraph (1) shall not be required to file
8    an income tax return under this Act for such taxable year
9    if the only source of net income of the individual (or the
10    individual and the individual's spouse in the case of a
11    joint return) is from an entity making the election under
12    paragraph (1) and the credit allowed to the partner or
13    shareholder under paragraph (4) equals or exceeds the
14    individual's liability for the tax imposed under
15    subsections (a) and (b) of Section 201 of this Act for the
16    taxable year.
17        (6) Liability for tax. Except as provided in this
18    paragraph, a partnership or Subchapter S making the
19    election under paragraph (1) is liable for the
20    entity-level tax imposed under paragraph (2). If the
21    electing partnership or corporation fails to pay the full
22    amount of tax deemed assessed under paragraph (2), the
23    partners or shareholders shall be liable to pay the tax
24    assessed (including penalties and interest). Each partner
25    or shareholder shall be liable for the unpaid assessment
26    based on the ratio of the partner's or shareholder's share

 

 

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1    of the net income of the partnership over the total net
2    income of the partnership. If the partnership or
3    Subchapter S corporation fails to pay the tax assessed
4    (including penalties and interest) and thereafter an
5    amount of such tax is paid by the partners or
6    shareholders, such amount shall not be collected from the
7    partnership or corporation.
8        (7) Foreign tax. For purposes of the credit allowed
9    under Section 601(b)(3) of this Act, tax paid by a
10    partnership or Subchapter S corporation to another state
11    which, as determined by the Department, is substantially
12    similar to the tax imposed under this subsection, shall be
13    considered tax paid by the partner or shareholder to the
14    extent that the partner's or shareholder's share of the
15    income of the partnership or Subchapter S corporation
16    allocated and apportioned to such other state bears to the
17    total income of the partnership or Subchapter S
18    corporation allocated or apportioned to such other state.
19        (8) Suspension of withholding. The provisions of
20    Section 709.5 of this Act shall not apply to a partnership
21    or Subchapter S corporation for the taxable year for which
22    an election under paragraph (1) is in effect.
23        (9) Requirement to pay estimated tax. For each taxable
24    year for which an election under paragraph (1) is in
25    effect, a partnership or Subchapter S corporation is
26    required to pay estimated tax for such taxable year under

 

 

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1    Sections 803 and 804 of this Act if the amount payable as
2    estimated tax can reasonably be expected to exceed $500.
3        (10) The provisions of this subsection shall apply
4    only with respect to taxable years for which the
5    limitation on individual deductions applies under Section
6    164(b)(6) of the Internal Revenue Code.
7(Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
8103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
 
9    (35 ILCS 5/241 new)
10    Sec. 241. Credit for quantum computing campuses.
11    (a) A taxpayer who has been awarded a credit by the
12Department of Commerce and Economic Opportunity under Section
13605-115 of the Department of Commerce and Economic Opportunity
14Law of the Civil Administrative Code of Illinois is entitled
15to a credit against the taxes imposed under subsections (a)
16and (b) of Section 201 of this Act. The amount of the credit
17shall be 20% of the wages paid by the taxpayer during the
18taxable year to a full-time or part-time employee of a
19construction contractor employed in the construction of an
20eligible facility located on a quantum computing campus
21designated under Section 605-115 of the Department of Commerce
22and Economic Opportunity Law of the Civil Administrative Code
23of Illinois.
24    (b) In no event shall a credit under this Section reduce
25the taxpayer's liability to less than zero. If the amount of

 

 

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1the credit exceeds the tax liability for the year, the excess
2may be carried forward and applied to the tax liability of the
35 taxable years following the excess credit year. The tax
4credit shall be applied to the earliest year for which there is
5a tax liability. If there are credits for more than one year
6that are available to offset a liability, the earlier credit
7shall be applied first.
8    (c) A person claiming the credit allowed under this
9Section shall attach to its Illinois income tax return for the
10taxable year for which the credit is allowed a copy of the tax
11credit certificate issued by the Department of Commerce and
12Economic Opportunity.
13    (d) Partners and shareholders of Subchapter S corporations
14are entitled to a credit under this Section as provided in
15Section 251.
16    (e) As used in this Section, "eligible facility" means a
17building used primarily to house one or more of the following:
18a quantum computer operator; a research facility; a data
19center; a manufacturer and assembler of quantum computers and
20component parts; a cryogenic or refrigeration facility; or any
21other facility determined, by industry and academic leaders,
22to be fundamental to the research and development of quantum
23computing for practical solutions.
24    (f) This Section is exempt from the provisions of Section
25250.
 

 

 

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1    Section 23. The Illinois Income Tax Act is amended by
2changing Section 213 as follows:
 
3    (35 ILCS 5/213)
4    Sec. 213. Film production services credit.
5    (a) For tax years beginning on or after January 1, 2004, a
6taxpayer who has been awarded a tax credit under the Film
7Production Services Tax Credit Act or under the Film
8Production Services Tax Credit Act of 2008 is entitled to a
9credit against the taxes imposed under subsections (a) and (b)
10of Section 201 of this Act in an amount determined by the
11Department of Commerce and Economic Opportunity under those
12Acts. If the taxpayer is a partnership or Subchapter S
13corporation, the credit is allowed to the partners or
14shareholders in accordance with the determination of income
15and distributive share of income under Sections 702 and 704
16and Subchapter S of the Internal Revenue Code.
17    (b) Beginning July 1, 2024, taxpayers who have been
18awarded a tax credit under the Film Production Services Tax
19Credit Act of 2008 shall pay to the Department of Commerce and
20Economic Opportunity, after determination of the tax credit
21amount but prior to the issuance of a tax credit certificate
22pursuant to Section 35 of the Film Production Services Tax
23Credit Act of 2008, a fee equal to 2.5% of the credit amount
24awarded to the taxpayer under the Film Production Services Tax
25Credit Act of 2008 that is attributable to wages paid to

 

 

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1nonresidents, as described in Section 10 of the Film
2Production Services Tax Credit Act of 2008, and an additional
3fee equal to 0.25% of the amount generated by subtracting the
4credit amount awarded to the taxpayer under the Film
5Production Services Tax Credit Act of 2008 that is
6attributable to wages paid to nonresidents from the total
7credit amount awarded to the taxpayer under that Act. All fees
8collected under this subsection shall be deposited into the
9Illinois Production Workforce Development Fund. No tax credit
10certificate shall be issued by the Department of Commerce and
11Economic Opportunity until the total fees owed according to
12this subsection have been received by the Department of
13Commerce and Economic Opportunity.
14    (c) A transfer of this credit may be made by the taxpayer
15earning the credit within one year after the credit is awarded
16in accordance with rules adopted by the Department of Commerce
17and Economic Opportunity. Beginning July 1, 2023 and through
18June 30, 2024, if a credit is transferred under this Section by
19the taxpayer, then the transferor taxpayer shall pay to the
20Department of Commerce and Economic Opportunity, upon
21notification of a transfer, a fee equal to 2.5% of the
22transferred credit amount eligible for nonresident wages, as
23described in Section 10 of the Film Production Services Tax
24Credit Act of 2008, and an additional fee of 0.25% of the total
25amount of the transferred credit that is not calculated on
26nonresident wages, which shall be deposited into the Illinois

 

 

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1Production Workforce Development Fund.
2    (d) The Department, in cooperation with the Department of
3Commerce and Economic Opportunity, must prescribe rules to
4enforce and administer the provisions of this Section. This
5Section is exempt from the provisions of Section 250 of this
6Act.
7    (e) The credit may not be carried back. If the amount of
8the credit exceeds the tax liability for the year, the excess
9may be carried forward and applied to the tax liability of the
105 taxable years following the excess credit year. The credit
11shall be applied to the earliest year for which there is a tax
12liability. If there are credits from more than one tax year
13that are available to offset a liability, the earlier credit
14shall be applied first. In no event shall a credit under this
15Section reduce the taxpayer's liability to less than zero.
16(Source: P.A. 102-700, eff. 4-19-22.)
 
17    Section 25. The Economic Development for a Growing Economy
18Tax Credit Act is amended by changing Sections 5-5, 5-15,
195-20, 5-35, 5-45, and 5-56 as follows:
 
20    (35 ILCS 10/5-5)
21    Sec. 5-5. Definitions. As used in this Act:
22    "Agreement" means the Agreement between a Taxpayer and the
23Department under the provisions of Section 5-50 of this Act.
24    "Applicant" means a Taxpayer that is operating a business

 

 

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1located or that the Taxpayer plans to locate within the State
2of Illinois and that is engaged in interstate or intrastate
3commerce for the purpose of manufacturing, processing,
4assembling, warehousing, or distributing products, conducting
5research and development, providing tourism services, or
6providing services in interstate commerce, office industries,
7or agricultural processing, but excluding retail, retail food,
8health, or professional services, and services delivered to
9business customer sites. "Applicant" does not include a
10Taxpayer who closes or substantially reduces an operation at
11one location in the State and relocates substantially the same
12operation to another location in the State. This does not
13prohibit a Taxpayer from expanding its operations at another
14location in the State, provided that existing operations of a
15similar nature located within the State are not closed or
16substantially reduced. This also does not prohibit a Taxpayer
17from moving its operations from one location in the State to
18another location in the State for the purpose of expanding the
19operation provided that the Department determines that
20expansion cannot reasonably be accommodated within the
21municipality in which the business is located, or in the case
22of a business located in an incorporated area of the county,
23within the county in which the business is located, after
24conferring with the chief elected official of the municipality
25or county and taking into consideration any evidence offered
26by the municipality or county regarding the ability to

 

 

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1accommodate expansion within the municipality or county.
2    "Credit" means the amount agreed to between the Department
3and Applicant under this Act, but not to exceed the lesser of:
4(1) the sum of (i) 50% of the Incremental Income Tax
5attributable to New Employees at the Applicant's project and
6(ii) 10% of the training costs of New Employees; or (2) 100% of
7the Incremental Income Tax attributable to New Employees at
8the Applicant's project. However, if the project is located in
9an underserved area, then the amount of the Credit may not
10exceed the lesser of: (1) the sum of (i) 75% of the Incremental
11Income Tax attributable to New Employees at the Applicant's
12project and (ii) 10% of the training costs of New Employees; or
13(2) 100% of the Incremental Income Tax attributable to New
14Employees at the Applicant's project. If the project is not
15located in an underserved area and the Applicant agrees to
16hire the required number of New Employees, then the maximum
17amount of the Credit for that Applicant may be increased by an
18amount not to exceed 25% of the Incremental Income Tax
19attributable to retained employees at the Applicant's project.
20If the project is located in an underserved area and the
21Applicant agrees to hire the required number of New Employees,
22then the maximum amount of the credit for that Applicant may be
23increased by an amount not to exceed 50% of the Incremental
24Income Tax attributable to retained employees at the
25Applicant's project.
26    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Director" means the Director of Commerce and Economic
3Opportunity.
4    "Full-time Employee" means an individual who is employed
5for consideration for at least 35 hours each week or who
6renders any other standard of service generally accepted by
7industry custom or practice as full-time employment. An
8individual for whom a W-2 is issued by a Professional Employer
9Organization (PEO) is a full-time employee if employed in the
10service of the Applicant for consideration for at least 35
11hours each week or who renders any other standard of service
12generally accepted by industry custom or practice as full-time
13employment to Applicant. The employee need not be physically
14present at the EDGE project location during the entire
15full-time workweek; however, the agreement shall set forth a
16minimum number of hours during which the employee is scheduled
17to be present at the EDGE project location.
18    "Incremental Income Tax" means the total amount withheld
19during the taxable year from the compensation of New Employees
20and, if applicable, retained employees under Article 7 of the
21Illinois Income Tax Act arising from employment at a project
22that is the subject of an Agreement.
23    "New Construction EDGE Agreement" means the Agreement
24between a Taxpayer and the Department under the provisions of
25Section 5-51 of this Act.
26    "New Construction EDGE Credit" means an amount agreed to

 

 

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1between the Department and the Applicant under this Act as
2part of a New Construction EDGE Agreement that does not exceed
350% of the Incremental Income Tax attributable to New
4Construction EDGE Employees at the Applicant's project;
5however, if the New Construction EDGE Project is located in an
6underserved area, then the amount of the New Construction EDGE
7Credit may not exceed 75% of the Incremental Income Tax
8attributable to New Construction EDGE Employees at the
9Applicant's New Construction EDGE Project.
10    "New Construction EDGE Employee" means a laborer or worker
11who is employed by a an Illinois contractor or subcontractor
12in the actual construction work on the site of a New
13Construction EDGE Project, pursuant to a New Construction EDGE
14Agreement.
15    "New Construction EDGE Incremental Income Tax" means the
16total amount withheld during the taxable year from the
17compensation of New Construction EDGE Employees.
18    "New Construction EDGE Project" means the building of a
19Taxpayer's structure or building, or making improvements of
20any kind to real property. "New Construction EDGE Project"
21does not include the routine operation, routine repair, or
22routine maintenance of existing structures, buildings, or real
23property.
24    "New Employee" means:
25        (a) A Full-time Employee first employed by a Taxpayer
26    at in the project, or assigned to the project as their

 

 

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1    primary work location, that is the subject of an Agreement
2    and who is hired after the Taxpayer enters into the tax
3    credit Agreement.
4        (b) The term "New Employee" does not include:
5            (1) an employee of the Taxpayer who performs a job
6        that was previously performed by another employee, if
7        that job existed for at least 6 months before hiring
8        the employee;
9            (2) an employee of the Taxpayer who was previously
10        employed in Illinois by a Related Member of the
11        Taxpayer and whose employment was shifted to the
12        Taxpayer after the Taxpayer entered into the tax
13        credit Agreement; or
14            (3) a child, grandchild, parent, or spouse, other
15        than a spouse who is legally separated from the
16        individual, of any individual who has a direct or an
17        indirect ownership interest of at least 5% in the
18        profits, capital, or value of the Taxpayer.
19        (c) Notwithstanding paragraph (1) of subsection (b),
20    an employee may be considered a New Employee under the
21    Agreement if the employee performs a job that was
22    previously performed by an employee who was:
23            (1) treated under the Agreement as a New Employee;
24        and
25            (2) promoted by the Taxpayer to another job.
26        (d) Notwithstanding subsection (a), the Department may

 

 

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1    award Credit to an Applicant with respect to an employee
2    hired prior to the date of the Agreement if:
3            (1) the Applicant is in receipt of a letter from
4        the Department stating an intent to enter into a
5        credit Agreement;
6            (2) the letter described in paragraph (1) is
7        issued by the Department not later than 15 days after
8        the effective date of this Act; and
9            (3) the employee was hired after the date the
10        letter described in paragraph (1) was issued.
11    "Noncompliance Date" means, in the case of a Taxpayer that
12is not complying with the requirements of the Agreement or the
13provisions of this Act, the day following the last date upon
14which the Taxpayer was in compliance with the requirements of
15the Agreement and the provisions of this Act, as determined by
16the Director, pursuant to Section 5-65.
17    "Pass Through Entity" means an entity that is exempt from
18the tax under subsection (b) or (c) of Section 205 of the
19Illinois Income Tax Act.
20    "Professional Employer Organization" (PEO) means an
21employee leasing company, as defined in Section 206.1(A)(2) of
22the Illinois Unemployment Insurance Act.
23    "Related Member" means a person that, with respect to the
24Taxpayer during any portion of the taxable year, is any one of
25the following:
26        (1) An individual stockholder, if the stockholder and

 

 

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

 

 

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1    value of the Taxpayer.
2        (5) A person to or from whom there is 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    "Startup taxpayer" means, for Agreements that are executed
9before the effective date of the changes made to this Section
10by this amendatory Act of the 103rd General Assembly, a
11corporation, partnership, or other entity incorporated or
12organized no more than 5 years before the filing of an
13application for an Agreement that has never had any Illinois
14income tax liability, excluding any Illinois income tax
15liability of a Related Member which shall not be attributed to
16the startup taxpayer. "Startup taxpayer" means, for Agreements
17that are executed on or after the effective date of this
18amendatory Act of the 103rd General Assembly, a corporation,
19partnership, or other entity that is incorporated or organized
20no more than 10 years before the filing of an application for
21an Agreement and that has never had any Illinois income tax
22liability. For the purpose of determining whether the taxpayer
23has had any Illinois income tax liability, the Illinois income
24tax liability of a Related Member shall not be attributed to
25the startup taxpayer.
26    "Taxpayer" means an individual, corporation, partnership,

 

 

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1or other entity that has any Illinois Income Tax liability.
2    Until July 1, 2022, "underserved area" means a geographic
3area that meets one or more of the following conditions:
4        (1) the area has a poverty rate of at least 20%
5    according to the latest federal decennial census;
6        (2) 75% or more of the children in the area
7    participate in the federal free lunch program according to
8    reported statistics from the State Board of Education;
9        (3) at least 20% of the households in the area receive
10    assistance under the Supplemental Nutrition Assistance
11    Program (SNAP); or
12        (4) the area has an average unemployment rate, as
13    determined by the Illinois Department of Employment
14    Security, that is more than 120% of the national
15    unemployment average, as determined by the U.S. Department
16    of Labor, for a period of at least 2 consecutive calendar
17    years preceding the date of the application.
18    On and after July 1, 2022, "underserved area" means a
19geographic area that meets one or more of the following
20conditions:
21        (1) the area has a poverty rate of at least 20%
22    according to the latest American Community Survey;
23        (2) 35% or more of the families with children in the
24    area are living below 130% of the poverty line, according
25    to the latest American Community Survey;
26        (3) at least 20% of the households in the area receive

 

 

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1    assistance under the Supplemental Nutrition Assistance
2    Program (SNAP); or
3        (4) the area has an average unemployment rate, as
4    determined by the Illinois Department of Employment
5    Security, that is more than 120% of the national
6    unemployment average, as determined by the U.S. Department
7    of Labor, for a period of at least 2 consecutive calendar
8    years preceding the date of the application.
9(Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
10102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
 
11    (35 ILCS 10/5-15)
12    Sec. 5-15. Tax Credit Awards. Subject to the conditions
13set forth in this Act, a Taxpayer is entitled to a Credit
14against or, as described in subsection (g) of this Section, a
15payment towards taxes imposed pursuant to subsections (a) and
16(b) of Section 201 of the Illinois Income Tax Act that may be
17imposed on the Taxpayer for a taxable year beginning on or
18after January 1, 1999, if the Taxpayer is awarded a Credit by
19the Department under this Act for that taxable year.
20    (a) The Department shall make Credit awards under this Act
21to foster job creation and retention in Illinois.
22    (b) A person that proposes a project to create new jobs in
23Illinois must enter into an Agreement with the Department for
24the Credit under this Act.
25    (c) The Credit shall be claimed for the taxable years

 

 

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1specified in the Agreement.
2    (d) The Credit shall not exceed the Incremental Income Tax
3attributable to the project that is the subject of the
4Agreement.
5    (e) Nothing herein shall prohibit a Tax Credit Award to an
6Applicant that uses a PEO if all other award criteria are
7satisfied.
8    (f) In lieu of the Credit allowed under this Act against
9the taxes imposed pursuant to subsections (a) and (b) of
10Section 201 of the Illinois Income Tax Act for any taxable year
11ending on or after December 31, 2009, for Taxpayers that
12entered into Agreements prior to January 1, 2015 and otherwise
13meet the criteria set forth in this subsection (f), the
14Taxpayer may elect to claim the Credit against its obligation
15to pay over withholding under Section 704A of the Illinois
16Income Tax Act.
17        (1) The election under this subsection (f) may be made
18    only by a Taxpayer that (i) is primarily engaged in one of
19    the following business activities: water purification and
20    treatment, motor vehicle metal stamping, automobile
21    manufacturing, automobile and light duty motor vehicle
22    manufacturing, motor vehicle manufacturing, light truck
23    and utility vehicle manufacturing, heavy duty truck
24    manufacturing, motor vehicle body manufacturing, cable
25    television infrastructure design or manufacturing, or
26    wireless telecommunication or computing terminal device

 

 

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1    design or manufacturing for use on public networks and
2    (ii) meets the following criteria:
3            (A) the Taxpayer (i) had an Illinois net loss or an
4        Illinois net loss deduction under Section 207 of the
5        Illinois Income Tax Act for the taxable year in which
6        the Credit is awarded, (ii) employed a minimum of
7        1,000 full-time employees in this State during the
8        taxable year in which the Credit is awarded, (iii) has
9        an Agreement under this Act on December 14, 2009 (the
10        effective date of Public Act 96-834), and (iv) is in
11        compliance with all provisions of that Agreement;
12            (B) the Taxpayer (i) had an Illinois net loss or an
13        Illinois net loss deduction under Section 207 of the
14        Illinois Income Tax Act for the taxable year in which
15        the Credit is awarded, (ii) employed a minimum of
16        1,000 full-time employees in this State during the
17        taxable year in which the Credit is awarded, and (iii)
18        has applied for an Agreement within 365 days after
19        December 14, 2009 (the effective date of Public Act
20        96-834);
21            (C) the Taxpayer (i) had an Illinois net operating
22        loss carryforward under Section 207 of the Illinois
23        Income Tax Act in a taxable year ending during
24        calendar year 2008, (ii) has applied for an Agreement
25        within 150 days after the effective date of this
26        amendatory Act of the 96th General Assembly, (iii)

 

 

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1        creates at least 400 new jobs in Illinois, (iv)
2        retains at least 2,000 jobs in Illinois that would
3        have been at risk of relocation out of Illinois over a
4        10-year period, and (v) makes a capital investment of
5        at least $75,000,000;
6            (D) the Taxpayer (i) had an Illinois net operating
7        loss carryforward under Section 207 of the Illinois
8        Income Tax Act in a taxable year ending during
9        calendar year 2009, (ii) has applied for an Agreement
10        within 150 days after the effective date of this
11        amendatory Act of the 96th General Assembly, (iii)
12        creates at least 150 new jobs, (iv) retains at least
13        1,000 jobs in Illinois that would have been at risk of
14        relocation out of Illinois over a 10-year period, and
15        (v) makes a capital investment of at least
16        $57,000,000; or
17            (E) the Taxpayer (i) employed at least 2,500
18        full-time employees in the State during the year in
19        which the Credit is awarded, (ii) commits to make at
20        least $500,000,000 in combined capital improvements
21        and project costs under the Agreement, (iii) applies
22        for an Agreement between January 1, 2011 and June 30,
23        2011, (iv) executes an Agreement for the Credit during
24        calendar year 2011, and (v) was incorporated no more
25        than 5 years before the filing of an application for an
26        Agreement.

 

 

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1        (1.5) The election under this subsection (f) may also
2    be made by a Taxpayer for any Credit awarded pursuant to an
3    agreement that was executed between January 1, 2011 and
4    June 30, 2011, if the Taxpayer (i) is primarily engaged in
5    the manufacture of inner tubes or tires, or both, from
6    natural and synthetic rubber, (ii) employs a minimum of
7    2,400 full-time employees in Illinois at the time of
8    application, (iii) creates at least 350 full-time jobs and
9    retains at least 250 full-time jobs in Illinois that would
10    have been at risk of being created or retained outside of
11    Illinois, and (iv) makes a capital investment of at least
12    $200,000,000 at the project location.
13        (1.6) The election under this subsection (f) may also
14    be made by a Taxpayer for any Credit awarded pursuant to an
15    agreement that was executed within 150 days after the
16    effective date of this amendatory Act of the 97th General
17    Assembly, if the Taxpayer (i) is primarily engaged in the
18    operation of a discount department store, (ii) maintains
19    its corporate headquarters in Illinois, (iii) employs a
20    minimum of 4,250 full-time employees at its corporate
21    headquarters in Illinois at the time of application, (iv)
22    retains at least 4,250 full-time jobs in Illinois that
23    would have been at risk of being relocated outside of
24    Illinois, (v) had a minimum of $40,000,000,000 in total
25    revenue in 2010, and (vi) makes a capital investment of at
26    least $300,000,000 at the project location.

 

 

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1        (1.7) Notwithstanding any other provision of law, the
2    election under this subsection (f) may also be made by a
3    Taxpayer for any Credit awarded pursuant to an agreement
4    that was executed or applied for on or after July 1, 2011
5    and on or before March 31, 2012, if the Taxpayer is
6    primarily engaged in the manufacture of original and
7    aftermarket filtration parts and products for automobiles,
8    motor vehicles, light duty motor vehicles, light trucks
9    and utility vehicles, and heavy duty trucks, (ii) employs
10    a minimum of 1,000 full-time employees in Illinois at the
11    time of application, (iii) creates at least 250 full-time
12    jobs in Illinois, (iv) relocates its corporate
13    headquarters to Illinois from another state, and (v) makes
14    a capital investment of at least $4,000,000 at the project
15    location.
16        (1.8) Notwithstanding any other provision of law, the
17    election under this subsection (f) may also be made by a
18    startup taxpayer for any Credit awarded pursuant to an
19    Agreement that was executed on or after the effective date
20    of this amendatory Act of the 102nd General Assembly. Any
21    such election under this paragraph (1.8) shall be
22    effective unless and until such startup taxpayer has any
23    Illinois income tax liability. This election under this
24    paragraph (1.8) shall automatically terminate when the
25    startup taxpayer has any Illinois income tax liability at
26    the end of any taxable year during the term of the

 

 

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1    Agreement. Thereafter, the startup taxpayer may receive a
2    Credit, taking into account any benefits previously
3    enjoyed or received by way of the election under this
4    paragraph (1.8), so long as the startup taxpayer remains
5    in compliance with the terms and conditions of the
6    Agreement.
7        (1.9) Notwithstanding any other provision of law, the
8    election under this subsection (f) may also be made by an
9    applicant qualified under paragraph (1.7) of subsection
10    (b) of Section 5-20 for any Credit awarded pursuant to an
11    Agreement that was executed on or after the effective date
12    of this amendatory Act of the 103rd General Assembly. Any
13    such election under this paragraph (1.9) shall be
14    effective unless and until such taxpayer has any Illinois
15    income tax liability. This election under this paragraph
16    (1.9) shall automatically terminate when the taxpayer has
17    any Illinois income tax liability at the end of any
18    taxable year during the term of the Agreement. Thereafter,
19    the startup taxpayer may receive a Credit, taking into
20    account any benefits previously enjoyed or received by way
21    of the election under this paragraph (1.9), so long as the
22    startup taxpayer remains in compliance with the terms and
23    conditions of the Agreement.
24        (2) An election under this subsection shall allow the
25    credit to be taken against payments otherwise due under
26    Section 704A of the Illinois Income Tax Act during the

 

 

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1    first calendar quarter beginning after the end of the
2    taxable quarter in which the credit is awarded under this
3    Act.
4        (3) The election shall be made in the form and manner
5    required by the Illinois Department of Revenue and, once
6    made, shall be irrevocable.
7        (4) If a Taxpayer who meets the requirements of
8    subparagraph (A) of paragraph (1) of this subsection (f)
9    elects to claim the Credit against its withholdings as
10    provided in this subsection (f), then, on and after the
11    date of the election, the terms of the Agreement between
12    the Taxpayer and the Department may not be further amended
13    during the term of the Agreement.
14    (g) A pass-through entity that has been awarded a credit
15under this Act, its shareholders, or its partners may treat
16some or all of the credit awarded pursuant to this Act as a tax
17payment for purposes of the Illinois Income Tax Act. The term
18"tax payment" means a payment as described in Article 6 or
19Article 8 of the Illinois Income Tax Act or a composite payment
20made by a pass-through entity on behalf of any of its
21shareholders or partners to satisfy such shareholders' or
22partners' taxes imposed pursuant to subsections (a) and (b) of
23Section 201 of the Illinois Income Tax Act. In no event shall
24the amount of the award credited pursuant to this Act exceed
25the Illinois income tax liability of the pass-through entity
26or its shareholders or partners for the taxable year.

 

 

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1(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
2    (35 ILCS 10/5-20)
3    Sec. 5-20. Application for a project to create and retain
4new jobs.
5    (a) Any Taxpayer proposing a project located or planned to
6be located in Illinois may request consideration for
7designation of its project, by formal written letter of
8request or by formal application to the Department, in which
9the Applicant states its intent to make at least a specified
10level of investment and intends to hire or retain a specified
11number of full-time employees at a designated location in
12Illinois. As circumstances require, the Department may require
13a formal application from an Applicant and a formal letter of
14request for assistance.
15    (b) In order to qualify for Credits under this Act, an
16Applicant's project must:
17        (1) if the Applicant has more than 100 employees,
18    involve an investment of at least $2,500,000 in capital
19    improvements to be placed in service within the State as a
20    direct result of the project; if the Applicant has 100 or
21    fewer employees, then there is no capital investment
22    requirement;
23        (1.5) if the Applicant has more than 100 employees,
24    employ a number of new employees in the State equal to the
25    lesser of (A) 10% of the number of full-time employees

 

 

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1    employed by the applicant world-wide on the date the
2    application is filed with the Department or (B) 50 New
3    Employees; and, if the Applicant has 100 or fewer
4    employees, employ a number of new employees in the State
5    equal to the lesser of (A) 5% of the number of full-time
6    employees employed by the applicant world-wide on the date
7    the application is filed with the Department or (B) 50 New
8    Employees;
9        (1.6) if the Applicant is a startup taxpayer, the
10    employees employed by Related Members shall not be
11    attributed to the Applicant for purposes of determining
12    the capital investment or job creation requirements under
13    this subsection (b);
14        (1.7) if the agreement is entered into on or after the
15    effective date of this amendatory Act of the 103rd General
16    Assembly and the Applicant's project:
17            (A) makes an investment of at least $50,000,000 in
18        capital improvements at the project site;
19            (B) is placed in service after approval of the
20        application; and
21            (C) creates jobs for at least 100 new full-time
22        employees.
23        (2) (blank);
24        (3) (blank); and
25        (4) include an annual sexual harassment policy report
26    as provided under Section 5-58.

 

 

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1    (c) After receipt of an application, the Department may
2enter into an Agreement with the Applicant if the application
3is accepted in accordance with Section 5-25.
4(Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
 
5    (35 ILCS 10/5-35)
6    Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
7not entitled to claim the credit provided by this Act with
8respect to any jobs that the taxpayer relocates from one site
9in Illinois unless the taxpayer has agreed to hire the minimum
10number of new employees and the Department has determined that
11the expansion cannot reasonably be accommodated within the
12municipality in which the business is located to another site
13in Illinois. A taxpayer with respect to a qualifying project
14certified under the Corporate Headquarters Relocation Act,
15however, is not subject to the requirements of this Section
16but is nevertheless considered an applicant for purposes of
17this Act. Moreover, any full-time employee of an eligible
18business relocated to Illinois in connection with that
19qualifying project is deemed to be a new employee for purposes
20of this Act. Determinations under this Section shall be made
21by the Department.
22(Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
 
23    (35 ILCS 10/5-45)
24    Sec. 5-45. Amount and duration of the credit.

 

 

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1    (a) The Department shall determine the amount and duration
2of the credit awarded under this Act. The duration of the
3credit may not exceed 10 taxable years for projects qualified
4under paragraph (1), (1.5), or (1.6) of subsection (b) of
5Section 5-20 or 15 taxable years for projects qualified under
6paragraph (1.7) of subsection (b) of Section 5-20. The credit
7may be stated as a percentage of the Incremental Income Tax
8attributable to the applicant's project and may include a
9fixed dollar limitation.
10    (b) Notwithstanding subsection (a), and except as the
11credit may be applied in a carryover year pursuant to Section
12211(4) of the Illinois Income Tax Act, the credit may be
13applied against the State income tax liability in more than 10
14taxable years but not in more than 15 taxable years for an
15eligible business that (i) qualifies under this Act and the
16Corporate Headquarters Relocation Act and has in fact
17undertaken a qualifying project within the time frame
18specified by the Department of Commerce and Economic
19Opportunity under that Act, and (ii) applies against its State
20income tax liability, during the entire 15-year period, no
21more than 60% of the maximum credit per year that would
22otherwise be available under this Act.
23    (c) Nothing in this Section shall prevent the Department,
24in consultation with the Department of Revenue, from adopting
25rules to extend the sunset of any earned, existing, and unused
26tax credit or credits a taxpayer may be in possession of, as

 

 

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1provided for in Section 605-1070 of the Department of Commerce
2and Economic Opportunity Law of the Civil Administrative Code
3of Illinois, notwithstanding the carry-forward provisions
4pursuant to paragraph (4) of Section 211 of the Illinois
5Income Tax Act.
6(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
 
7    (35 ILCS 10/5-56)
8    Sec. 5-56. Annual report. Certified payroll. Annually,
9until construction is completed, a company seeking New
10Construction EDGE Credits shall submit a report that, at a
11minimum, describes the projected project scope, timeline, and
12anticipated budget. Once the project has commenced, the annual
13report shall include actual data for the prior year as well as
14projections for each additional year through completion of the
15project. The Department shall issue detailed reporting
16guidelines prescribing the requirements of construction
17related reports. In order to receive credit for construction
18expenses, the company must provide the Department with
19evidence that a certified third-party executed an Agreed-Upon
20Procedure (AUP) verifying the construction expenses or accept
21the standard construction wage expense estimated by the
22Department.
23    Upon review of the final project scope, timeline, budget,
24and AUP, the Department shall issue a tax credit certificate
25reflecting a percentage of the total construction job wages

 

 

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1paid throughout the completion of the project.
2Each contractor and subcontractor that is engaged in and is
3executing a New Construction EDGE Project for a Taxpayer,
4pursuant to a New Construction EDGE Agreement shall:
5        (1) make and keep, for a period of 5 years from the
6    date of the last payment made on or after June 5, 2019 (the
7    effective date of Public Act 101-9) on a contract or
8    subcontract for a New Construction EDGE Project pursuant
9    to a New Construction EDGE Agreement, records of all
10    laborers and other workers employed by the contractor or
11    subcontractor on the project; the records shall include:
12            (A) the worker's name;
13            (B) the worker's address;
14            (C) the worker's telephone number, if available;
15            (D) the worker's social security number;
16            (E) the worker's classification or
17        classifications;
18            (F) the worker's gross and net wages paid in each
19        pay period;
20            (G) the worker's number of hours worked each day;
21            (H) the worker's starting and ending times of work
22        each day;
23            (I) the worker's hourly wage rate; and
24            (J) the worker's hourly overtime wage rate; and
25        (2) no later than the 15th day of each calendar month,
26    provide a certified payroll for the immediately preceding

 

 

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1    month to the taxpayer in charge of the project; within 5
2    business days after receiving the certified payroll, the
3    taxpayer shall file the certified payroll with the
4    Department of Labor and the Department of Commerce and
5    Economic Opportunity; a certified payroll must be filed
6    for only those calendar months during which construction
7    on a New Construction EDGE Project has occurred; the
8    certified payroll shall consist of a complete copy of the
9    records identified in paragraph (1), but may exclude the
10    starting and ending times of work each day; the certified
11    payroll shall be accompanied by a statement signed by the
12    contractor or subcontractor or an officer, employee, or
13    agent of the contractor or subcontractor which avers that:
14            (A) he or she has examined the certified payroll
15        records required to be submitted by the Act and such
16        records are true and accurate; and
17            (B) the contractor or subcontractor is aware that
18        filing a certified payroll that he or she knows to be
19        false is a Class A misdemeanor.
20    A general contractor is not prohibited from relying on a
21certified payroll of a lower-tier subcontractor, provided the
22general contractor does not knowingly rely upon a
23subcontractor's false certification.
24    Any contractor or subcontractor subject to this Section,
25and any officer, employee, or agent of such contractor or
26subcontractor whose duty as an officer, employee, or agent it

 

 

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1is to file a certified payroll under this Section, who
2willfully fails to file such a certified payroll on or before
3the date such certified payroll is required to be filed and any
4person who willfully files a false certified payroll that is
5false as to any material fact is in violation of this Act and
6guilty of a Class A misdemeanor.
7    The taxpayer in charge of the project shall keep the
8records submitted in accordance with this Section on or after
9June 5, 2019 (the effective date of Public Act 101-9) for a
10period of 5 years from the date of the last payment for work on
11a contract or subcontract for the project.
12    The records submitted in accordance with this Section
13shall be considered public records, except an employee's
14address, telephone number, and social security number, and
15made available in accordance with the Freedom of Information
16Act. The Department of Labor shall accept any reasonable
17submissions by the contractor that meet the requirements of
18this Section and shall share the information with the
19Department in order to comply with the awarding of New
20Construction EDGE Credits. A contractor, subcontractor, or
21public body may retain records required under this Section in
22paper or electronic format.
23    Upon 7 business days' notice, the taxpayer contractor and
24each subcontractor shall make available for inspection and
25copying at a location within this State during reasonable
26hours, the records identified in paragraph (1) of this Section

 

 

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1to the taxpayer in charge of the project, its officers and
2agents, the Director of Labor and his or her deputies and
3agents, and to federal, State, or local law enforcement
4agencies and prosecutors.
5(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
 
6    Section 27. The Film Production Services Tax Credit Act of
72008 is amended by changing Sections 10 and 46 as follows:
 
8    (35 ILCS 16/10)
9    Sec. 10. Definitions. As used in this Act:
10    "Accredited production" means: (i) for productions
11commencing before May 1, 2006, a film, video, or television
12production that has been certified by the Department in which
13the aggregate Illinois labor expenditures included in the cost
14of the production, in the period that ends 12 months after the
15time principal filming or taping of the production began,
16exceed $100,000 for productions of 30 minutes or longer, or
17$50,000 for productions of less than 30 minutes; and (ii) for
18productions commencing on or after May 1, 2006, a film, video,
19or television production that has been certified by the
20Department in which the Illinois production spending included
21in the cost of production in the period that ends 12 months
22after the time principal filming or taping of the production
23began exceeds $100,000 for productions of 30 minutes or longer
24or exceeds $50,000 for productions of less than 30 minutes.

 

 

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1"Accredited production" does not include a production that:
2        (1) is news, current events, or public programming, or
3    a program that includes weather or market reports;
4        (2) is a talk show produced for local or regional
5    markets;
6        (3) (blank); is a production in respect of a game,
7    questionnaire, or contest;
8        (4) is a sports event or activity;
9        (5) is a gala presentation or awards show;
10        (6) is a finished production that solicits funds;
11        (7) is a production produced by a film production
12    company if records, as required by 18 U.S.C. 2257, are to
13    be maintained by that film production company with respect
14    to any performer portrayed in that single media or
15    multimedia program; or
16        (8) is a production produced primarily for industrial,
17    corporate, or institutional purposes.
18    "Accredited animated production" means an accredited
19production in which movement and characters' performances are
20created using a frame-by-frame technique and a significant
21number of major characters are animated. Motion capture by
22itself is not an animation technique.
23    "Accredited production certificate" means a certificate
24issued by the Department certifying that the production is an
25accredited production that meets the guidelines of this Act.
26    "Applicant" means a taxpayer that is a film production

 

 

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1company that is operating or has operated an accredited
2production located within the State of Illinois and that (i)
3owns the copyright in the accredited production throughout the
4Illinois production period or (ii) has contracted directly
5with the owner of the copyright in the accredited production
6or a person acting on behalf of the owner to provide services
7for the production, where the owner of the copyright is not an
8eligible production corporation.
9    "Credit" means:
10        (1) for an accredited production approved by the
11    Department on or before January 1, 2005 and commencing
12    before May 1, 2006, the amount equal to 25% of the Illinois
13    labor expenditure approved by the Department. The
14    applicant is deemed to have paid, on its balance due day
15    for the year, an amount equal to 25% of its qualified
16    Illinois labor expenditure for the tax year. For Illinois
17    labor expenditures generated by the employment of
18    residents of geographic areas of high poverty or high
19    unemployment, as determined by the Department, in an
20    accredited production commencing before May 1, 2006 and
21    approved by the Department after January 1, 2005, the
22    applicant shall receive an enhanced credit of 10% in
23    addition to the 25% credit; and
24        (2) for an accredited production commencing on or
25    after May 1, 2006 and before January 1, 2009, the amount
26    equal to:

 

 

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1            (i) 20% of the Illinois production spending for
2        the taxable year; plus
3            (ii) 15% of the Illinois labor expenditures
4        generated by the employment of residents of geographic
5        areas of high poverty or high unemployment, as
6        determined by the Department; and
7        (3) for an accredited production commencing on or
8    after January 1, 2009, the amount equal to:
9            (i) 30% of the Illinois production spending for
10        the taxable year; plus
11            (ii) 15% of the Illinois labor expenditures
12        generated by the employment of residents of geographic
13        areas of high poverty or high unemployment, as
14        determined by the Department.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Director" means the Director of Commerce and Economic
18Opportunity.
19    "Illinois labor expenditure" means salary or wages paid to
20employees of the applicant for services on the accredited
21production.
22    To qualify as an Illinois labor expenditure, the
23expenditure must be:
24        (1) Reasonable in the circumstances.
25        (2) Included in the federal income tax basis of the
26    property.

 

 

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1        (3) Incurred by the applicant for services on or after
2    January 1, 2004.
3        (4) Incurred for the production stages of the
4    accredited production, from the final script stage to the
5    end of the post-production stage.
6        (5) Limited to the first $25,000 of wages paid or
7    incurred to each employee of a production commencing
8    before May 1, 2006 and the first $100,000 of wages paid or
9    incurred to each employee of a production commencing on or
10    after May 1, 2006 and prior to July 1, 2022. For
11    productions commencing on or after July 1, 2022, limited
12    to the first $500,000 of wages paid or incurred to each
13    eligible nonresident or resident employee of a production
14    company or loan out company that provides in-State
15    services to a production, whether those wages are paid or
16    incurred by the production company, loan out company, or
17    both, subject to withholding payments provided for in
18    Article 7 of the Illinois Income Tax Act. For purposes of
19    calculating Illinois labor expenditures for a television
20    series, the eligible nonresident wage limitations provided
21    under this subparagraph are applied to the entire season.
22    For the purpose of this paragraph (5), an eligible
23    nonresident is a nonresident whose wages qualify as an
24    Illinois labor expenditure under the provisions of
25    paragraph (9) that apply to that production.
26        (6) For a production commencing before May 1, 2006,

 

 

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1    exclusive of the salary or wages paid to or incurred for
2    the 2 highest paid employees of the production.
3        (7) Directly attributable to the accredited
4    production.
5        (8) (Blank).
6        (9) Prior to July 1, 2022, paid to persons resident in
7    Illinois at the time the payments were made. For a
8    production commencing on or after July 1, 2022, paid to
9    persons resident in Illinois and nonresidents at the time
10    the payments were made.
11        For purposes of this subparagraph, if the production
12    is accredited by the Department before the effective date
13    of this amendatory Act of the 102nd General Assembly, only
14    wages paid to nonresidents working in the following
15    positions shall be considered Illinois labor expenditures:
16    Writer, Director, Director of Photography, Production
17    Designer, Costume Designer, Production Accountant, VFX
18    Supervisor, Editor, Composer, and Actor, subject to the
19    limitations set forth under this subparagraph. For an
20    accredited Illinois production spending of $25,000,000 or
21    less, no more than 2 nonresident actors' wages shall
22    qualify as an Illinois labor expenditure. For an
23    accredited production with Illinois production spending of
24    more than $25,000,000, no more than 4 nonresident actor's
25    wages shall qualify as Illinois labor expenditures.
26        For purposes of this subparagraph, if the production

 

 

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1    is accredited by the Department on or after the effective
2    date of this amendatory Act of the 102nd General Assembly,
3    wages paid to nonresidents shall qualify as Illinois labor
4    expenditures only under the following conditions:
5            (A) the nonresident must be employed in a
6        qualified position;
7            (B) for each of those accredited productions, the
8        wages of not more than 9 nonresidents who are employed
9        in a qualified position other than Actor shall qualify
10        as Illinois labor expenditures;
11            (C) for an accredited production with Illinois
12        production spending of $25,000,000 or less, no more
13        than 2 nonresident actors' wages shall qualify as
14        Illinois labor expenditures; and
15            (D) for an accredited production with Illinois
16        production spending of more than $25,000,000, no more
17        than 4 nonresident actors' wages shall qualify as
18        Illinois labor expenditures.
19        As used in this paragraph (9), "qualified position"
20    means: Writer, Director, Director of Photography,
21    Production Designer, Costume Designer, Production
22    Accountant, VFX Supervisor, Editor, Composer, or Actor.
23        (10) Paid for services rendered in Illinois.
24    "Illinois production spending" means the expenses incurred
25by the applicant for an accredited production, but does not
26include any monetary prize or the cost of any non-monetary

 

 

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1prize awarded pursuant to a production in respect of a game,
2questionnaire, or contest. "Illinois production spending"
3includes, including, without limitation, all of the following:
4        (1) expenses to purchase, from vendors within
5    Illinois, tangible personal property that is used in the
6    accredited production;
7        (2) expenses to acquire services, from vendors in
8    Illinois, for film production, editing, or processing; and
9        (3) for a production commencing before July 1, 2022,
10    the compensation, not to exceed $100,000 for any one
11    employee, for contractual or salaried employees who are
12    Illinois residents performing services with respect to the
13    accredited production. For a production commencing on or
14    after July 1, 2022, the compensation, not to exceed
15    $500,000 for any one employee, for contractual or salaried
16    employees who are Illinois residents or nonresident
17    employees, subject to the limitations set forth under
18    Section 10 of this Act.
19    "Loan out company" means a personal service corporation or
20other entity that is under contract with the taxpayer to
21provide specified individual personnel, such as artists, crew,
22actors, producers, or directors for the performance of
23services used directly in a production. "Loan out company"
24does not include entities contracted with by the taxpayer to
25provide goods or ancillary contractor services such as
26catering, construction, trailers, equipment, or

 

 

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1transportation.
2    "Qualified production facility" means stage facilities in
3the State in which television shows and films are or are
4intended to be regularly produced and that contain at least
5one sound stage of at least 15,000 square feet.
6    Rulemaking authority to implement Public Act 95-1006, if
7any, is conditioned on the rules being adopted in accordance
8with all provisions of the Illinois Administrative Procedure
9Act and all rules and procedures of the Joint Committee on
10Administrative Rules; any purported rule not so adopted, for
11whatever reason, is unauthorized.
12(Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
13102-1125, eff. 2-3-23.)
 
14    (35 ILCS 16/46)
15    Sec. 46. Illinois Production Workforce Development Fund.
16    (a) The Illinois Production Workforce Development Fund is
17created as a special fund in the State Treasury. Beginning
18July 1, 2023 July 1, 2022, amounts paid to the Department of
19Commerce and Economic Opportunity pursuant to Section 213 of
20the Illinois Income Tax Act shall be deposited into the Fund.
21The Fund shall be used exclusively to provide grants to
22community-based organizations, labor organizations, private
23and public universities, community colleges, and other
24organizations and institutions that may be deemed appropriate
25by the Department to administer workforce training programs

 

 

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1that support efforts to recruit, hire, promote, retain,
2develop, and train a diverse and inclusive workforce in the
3film industry.
4    (b) Pursuant to Section 213 of the Illinois Income Tax
5Act, taxpayers who have been awarded a tax credit under this
6Act shall pay to the Department of Commerce and Economic
7Opportunity, after determination of the tax credit amount but
8prior to the issuance of a tax credit certificate, a fee equal
9to 2.5% of the credit amount awarded to the taxpayer under the
10Film Production Services Tax Credit Act of 2008 that is
11attributable to wages paid to nonresidents, as described in
12Section 10 of the Film Production Services Tax Credit Act of
132008, and an additional fee equal to 0.25% of the amount
14generated by subtracting the credit amount awarded to the
15taxpayer under the Film Production Services Tax Credit Act of
162008 that is attributable to wages paid to nonresidents from
17the total credit amount awarded to the taxpayer under that
18Act. All fees collected under this subsection shall be
19deposited into the Illinois Production Workforce Development
20Fund. No tax credit certificate shall be issued by the
21Department of Commerce and Economic Opportunity until the
22total fees owed according to this subsection have been
23received by the Department of Commerce and Economic
24Opportunity. the Fund shall receive deposits in amounts not to
25exceed 0.25% of the amount of each credit certificate issued
26that is not calculated on out-of-state wages and transferred

 

 

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1or claimed on an Illinois tax return in the quarter such credit
2was transferred or claimed. In addition, such amount shall
3also include 2.5% of the credit amount calculated on wages
4paid to nonresidents that is transferred or claimed on an
5Illinois tax return in the quarter such credit was transferred
6or claimed.
7    (c) At the request of the Department, the State
8Comptroller and the State Treasurer may advance amounts to the
9Fund on an annual basis not to exceed $1,000,000 in any fiscal
10year. The fund from which the moneys are advanced shall be
11reimbursed in the same fiscal year for any such advance
12payments as described in this Section. The method of
13reimbursement shall be set forth in rules.
14    (d) Of the appropriated funds in a given fiscal year, 50%
15of the appropriated funds shall be reserved for organizations
16that meet one of the following criteria. The organization is:
17(1) a minority-owned business, as defined by the Business
18Enterprise for Minorities, Women, and Persons with
19Disabilities Act; (2) located in an underserved area, as
20defined by the Economic Development for a Growing Economy Tax
21Credit Act; or (3) on an annual basis, training a cohort of
22program participants where at least 50% of the program
23participants are either a minority person, as defined by the
24Business Enterprise for Minorities, Women, and Persons with
25Disabilities Act, or reside in an underserved area, as defined
26by the Economic Development for a Growing Economy Tax Credit

 

 

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1Act.
2    (e) The Illinois Production Workforce Development Fund
3shall be administered by the Department. The Department may
4adopt rules necessary to administer the provisions of this
5Section.
6    (f) Notwithstanding any other law to the contrary, the
7Illinois Production Workforce Development Fund is not subject
8to sweeps, administrative charge-backs, or any other fiscal or
9budgetary maneuver that would in any way transfer any amounts
10from the Illinois Production Workforce Development Fund.
11    (g) By June 30 of each fiscal year, the Department must
12submit to the General Assembly a report that includes the
13following information: (1) an identification of the
14organizations and institutions that received funding to
15administer workforce training programs during the fiscal year;
16(2) the number of total persons trained and the number of
17persons trained per workforce training program in the fiscal
18year; and (3) in the aggregate, per organization, the number
19of persons identified as a minority person or that reside in an
20underserved area that received training in the fiscal year.
21(Source: P.A. 102-700, eff. 4-19-22.)
 
22    Section 30. The Manufacturing Illinois Chips for Real
23Opportunity (MICRO) Act is amended by changing Sections 110-5,
24110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
 

 

 

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1    (35 ILCS 45/110-5)
2    Sec. 110-5. Purpose. It is the intent of the General
3Assembly that Illinois should lead the nation in the
4production of quantum computers and the production of
5semiconductors and microchips as they become even more
6prevalent in everyday life. The General Assembly finds that,
7through investments in quantum computing and semiconductors
8and microchips, Illinois will be on the forefront of the
9quantum computing industry and the forefront of reshoring
10semiconductor and microchip production that fuels modern
11technologies that are essential to the operation of computers,
12phones, vehicles and the any electric products product that
13have become essential to modern life. This Act will create
14good paying jobs, and generate long-term economic investment
15in the Illinois business economy, in addition to ensuring a
16vital product is made in the United States. Illinois must
17aggressively adopt new business development investment tools
18so that Illinois can compete with domestic and foreign
19competitors for quantum computer manufacturing and
20semiconductor and chip manufacturing.
21(Source: P.A. 102-700, eff. 4-19-22.)
 
22    (35 ILCS 45/110-10)
23    Sec. 110-10. Definitions. As used in this Act:
24    "Agreement" means the agreement between a taxpayer and the
25Department under the provisions of this Act.

 

 

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1    "Applicant" means a taxpayer that: (i) operates a business
2in Illinois as a quantum computer manufacturer, a
3semiconductor manufacturer, a microchip manufacturer, or a
4manufacturer of quantum computer, semiconductor, or microchip
5component parts or a business in Illinois that primarily
6engages in research and development in the manufacturing of
7quantum computers, semiconductors, or microchips; or (ii) is
8planning to locate a business within the State of Illinois as a
9quantum computer manufacturer, a semiconductor manufacturer, a
10microchip manufacturer, or a manufacturer of quantum computer,
11semiconductor, or microchip component parts or a business
12within the State of Illinois that primarily engages in
13research and development in the manufacturing of quantum
14computers, semiconductors, or microchips. For the purposes of
15this definition, a business primarily engages in research and
16development in the manufacturing of quantum computers,
17semiconductors, or microchips if at least 50% of its business
18activities involve research and development in the
19manufacturing of quantum computers, semiconductors, or
20microchips. "Applicant" does not include a taxpayer who closes
21or substantially reduces by more than 50% operations at one
22location in the State and relocates substantially the same
23operation to another location in the State. This does not
24prohibit a taxpayer from expanding its operations at another
25location in the State. This also does not prohibit a taxpayer
26from moving its operations from one location in the State to

 

 

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

 

 

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1Opportunity.
2    "Director" means the Director of Commerce and Economic
3Opportunity.
4    "Energy Transition Area" means a county with less than
5100,000 people or a municipality that contains one or more of
6the following:
7        (1) a fossil fuel plant that was retired from service
8    or has significant reduced service within 6 years before
9    the time of the application or will be retired or have
10    service significantly reduced within 6 years following the
11    time of the application; or
12        (2) a coal mine that was closed or had operations
13    significantly reduced within 6 years before the time of
14    the application or is anticipated to be closed or have
15    operations significantly reduced within 6 years following
16    the time of the application.
17    "Full-time employee" means an individual who is employed
18for consideration for at least 35 hours each week or who
19renders any other standard of service generally accepted by
20industry custom or practice as full-time employment. An
21individual for whom a W-2 is issued by a Professional Employer
22Organization (PEO) is a full-time employee if employed in the
23service of the applicant for consideration for at least 35
24hours each week.
25    "Incremental income tax" means the total amount withheld
26during the taxable year from the compensation of new employees

 

 

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1and, if applicable, retained employees under Article 7 of the
2Illinois Income Tax Act arising from employment at a project
3that is the subject of an agreement.
4    "Institution of higher education" or "institution" means
5any accredited public or private university, college,
6community college, business, technical, or vocational school,
7or other accredited educational institution offering degrees
8and instruction beyond the secondary school level.
9    "MICRO construction jobs credit" means a credit agreed to
10between the Department and the applicant under this Act that
11is based on the incremental income tax attributable to
12construction wages paid in connection with construction of the
13project facilities.
14    "MICRO credit" means a credit agreed to between the
15Department and the applicant under this Act that is based on
16the incremental income tax attributable to new employees and,
17if applicable, retained employees, and on training costs for
18such employees at the applicant's project.
19    "Microchip" means a wafer of semiconducting material that
20is less than 15 millimeters long and less than 5 millimeters
21wide and is used to make an integrated circuit.
22    "Microchip manufacturer" means a new or existing
23manufacturer that is focused on reequipping, expanding, or
24establishing a manufacturing facility in Illinois that
25produces microchips or key components that directly support
26the functions of microchips.

 

 

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1    "Minority person" means a minority person as defined in
2the Business Enterprise for Minorities, Women, and Persons
3with Disabilities Act.
4    "New employee" means a newly-hired full-time employee
5employed to work at the project site and whose work is directly
6related to the project.
7    "Noncompliance date" means, in the case of a taxpayer that
8is not complying with the requirements of the agreement or the
9provisions of this Act, the day following the last date upon
10which the taxpayer was in compliance with the requirements of
11the agreement and the provisions of this Act, as determined by
12the Director.
13    "Pass-through entity" means an entity that is exempt from
14the tax under subsection (b) or (c) of Section 205 of the
15Illinois Income Tax Act.
16    "Placed in service" means the state or condition of
17readiness, availability for a specifically assigned function,
18and the facility is constructed and ready to conduct its
19facility operations to manufacture goods.
20    "Professional employer organization" (PEO) means an
21employee leasing company, as defined in Section 206.1 of the
22Illinois Unemployment Insurance Act.
23    "Program" means the Manufacturing Illinois Chips for Real
24Opportunity (MICRO) program established in this Act.
25    "Project" means a for-profit economic development activity
26for the manufacture of quantum computers, semiconductors, or

 

 

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1and microchips.
2    "Quantum computer" means a machine that uses the
3properties of quantum physics to perform computations and
4store data, as distinct from classical computing machines.
5    "Quantum computer manufacturer" or "manufacturer of
6quantum computers or quantum computer component parts" means a
7new or existing manufacturer that is focused on reequipping,
8expanding, or establishing a facility in Illinois that
9manufactures a quantum computer, quantum computer prototype
10devices, or components that support the functions of a quantum
11computer.
12    "Related member" means a person that, with respect to the
13taxpayer during any portion of the taxable year, is any one of
14the following:
15        (1) An individual stockholder, if the stockholder and
16    the members of the stockholder's family (as defined in
17    Section 318 of the Internal Revenue Code) own directly,
18    indirectly, beneficially, or constructively, in the
19    aggregate, at least 50% of the value of the taxpayer's
20    outstanding stock.
21        (2) A partnership, estate, trust and any partner or
22    beneficiary, if the partnership, estate, or trust, and its
23    partners or beneficiaries own directly, indirectly,
24    beneficially, or constructively, in the aggregate, at
25    least 50% of the profits, capital, stock, or value of the
26    taxpayer.

 

 

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1        (3) A corporation, and any party related to the
2    corporation in a manner that would require an attribution
3    of stock from the corporation under the attribution rules
4    of Section 318 of the Internal Revenue Code, if the
5    taxpayer owns directly, indirectly, beneficially, or
6    constructively at least 50% of the value of the
7    corporation's outstanding stock.
8        (4) A corporation and any party related to that
9    corporation in a manner that would require an attribution
10    of stock from the corporation to the party or from the
11    party to the corporation under the attribution rules of
12    Section 318 of the Internal Revenue Code, if the
13    corporation and all such related parties own in the
14    aggregate at least 50% of the profits, capital, stock, or
15    value of the taxpayer.
16        (5) A person to or from whom there is an attribution of
17    stock ownership in accordance with Section 1563(e) of the
18    Internal Revenue Code, except, for purposes of determining
19    whether a person is a related member under this paragraph,
20    20% shall be substituted for 5% wherever 5% appears in
21    Section 1563(e) of the Internal Revenue Code.
22    "Research and development in the manufacturing of quantum
23computers, semiconductors, or microchips" means work directed
24toward the innovation, introduction, and improvement of
25products and processes in the space of quantum computing
26manufacturing, semiconductor manufacturing, microchip

 

 

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1manufacturing, or the manufacturing of semiconductor, quantum
2computer, or microchip component parts.
3    "Retained employee" means a full-time employee employed by
4the taxpayer prior to the term of the agreement who continues
5to be employed during the term of the agreement whose job
6duties are directly and substantially related to the project.
7For purposes of this definition, "directly and substantially
8related to the project" means at least two-thirds of the
9employee's job duties must be directly related to the project
10and the employee must devote at least two-thirds of his or her
11time to the project. The term "retained employee" does not
12include any individual who has a direct or an indirect
13ownership interest of at least 5% in the profits, equity,
14capital, or value of the taxpayer or a child, grandchild,
15parent, or spouse, other than a spouse who is legally
16separated from the individual, of any individual who has a
17direct or indirect ownership of at least 5% in the profits,
18equity, capital, or value of the taxpayer.
19    "Semiconductor" means any class of crystalline solids
20intermediate in electrical conductivity between a conductor
21and an insulator.
22    "Semiconductor manufacturer" means a new or existing
23manufacturer that is focused on reequipping, expanding, or
24establishing a manufacturing facility in Illinois that
25produces semiconductors or key components that directly
26support the functions of semiconductors. Semiconductor

 

 

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

 

 

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1defined in Section 5-5 of the Economic Development for a
2Growing Economy Tax Credit Act.
3(Source: P.A. 102-700, eff. 4-19-22.)
 
4    (35 ILCS 45/110-20)
5    Sec. 110-20. Manufacturing Illinois Chips for Real
6Opportunity (MICRO) Program; project applications.
7    (a) The Manufacturing Illinois Chips for Real Opportunity
8(MICRO) Program is hereby established and shall be
9administered by the Department. The Program will provide
10financial incentives to eligible semiconductor manufacturers,
11and microchip manufacturers, quantum computer manufacturers,
12and companies that primarily engage in research and
13development in the manufacturing of quantum computers,
14semiconductors, or microchips. For the purposes of this
15Section, a company is primarily engaged in research and
16development in the manufacturing of quantum computers,
17semiconductors, or microchips if at least 50% of its business
18activities involve research and development in the
19manufacturing of quantum computers, semiconductors, or
20microchips..
21    (b) Any taxpayer planning a project to be located in
22Illinois may request consideration for designation of its
23project as a MICRO project, by formal written letter of
24request or by formal application to the Department, in which
25the applicant states its intent to make at least a specified

 

 

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1level of investment and intends to hire a specified number of
2full-time employees at a designated location in Illinois. As
3circumstances require, the Department shall require a formal
4application from an applicant and a formal letter of request
5for assistance.
6    (c) In order to qualify for credits under the program, an
7applicant must:
8        (1) for a semiconductor manufacturer, a or microchip
9    manufacturer, a quantum computer manufacturer, or a
10    company focusing on research and development in the
11    manufacturing of quantum computers, semiconductors, or
12    microchips:
13            (A) make an investment of at least $1,500,000,000
14        in 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 at least 500 new full-time employee
19        jobs; or
20        (2) for a semiconductor or microchip component parts
21    manufacturer:
22            (A) make an investment of at least $300,000,000 in
23        capital improvements at the project site;
24            (B) manufacture one or more parts that are
25        primarily used for the manufacture of semiconductors
26        or microchips;

 

 

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1            (C) to be placed in service within the State
2        within a 60-month period after approval of the
3        application; and
4            (D) create at least 150 new full-time employee
5        jobs; or
6        (3) for a semiconductor manufacturer, a or microchip
7    manufacturer, a quantum computer manufacturer, a company
8    focusing on research and development in the manufacturing
9    of quantum computers, semiconductors, or microchips, or or
10    a semiconductor or microchip component parts manufacturer
11    that does not quality under paragraph (2) above:
12            (A) make an investment of at least $2,500,000
13        $20,000,000 in capital improvements at the project
14        site;
15            (B) to be placed in service within the State
16        within a 48-month period after approval of the
17        application; and
18            (C) create at least 50 new full-time employee jobs
19        or new full-time employees equivalent to 10% of the
20        number of full-time employees employed by the
21        applicant world-wide on the date the application is
22        filed with the Department; or
23        (4) for a semiconductor manufacturer, quantum computer
24    manufacturer, or microchip manufacturer, or a
25    semiconductor or microchip component parts manufacturer
26    with existing operations in Illinois that intends to

 

 

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1    convert or expand, in whole or in part, the existing
2    facility from traditional manufacturing to semiconductor
3    manufacturing, quantum computer manufacturing, or
4    microchip manufacturing or semiconductor, quantum
5    computer, or microchip component parts manufacturing, or a
6    company focusing on research and development in the
7    manufacturing of quantum computers, semiconductors, or
8    microchips:
9            (A) make an investment of at least $100,000,000 in
10        capital improvements at the project site;
11            (B) to be placed in service within the State
12        within a 60-month period after approval of the
13        application; and
14            (C) create the lesser of 75 new full-time employee
15        jobs or new full-time employee jobs equivalent to 10%
16        of the Statewide baseline applicable to the taxpayer
17        and any related member at the time of application.
18    (d) For any applicant creating the full-time employee jobs
19noted in subsection (c), those jobs must have a total
20compensation equal to or greater than 120% of the average wage
21paid to full-time employees in the county where the project is
22located, as determined by the Department.
23    (e) Each applicant must outline its hiring plan and
24commitment to recruit and hire full-time employee positions at
25the project site. The hiring plan may include a partnership
26with an institution of higher education to provide

 

 

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1internships, including, but not limited to, internships
2supported by the Clean Jobs Workforce Network Program, or
3full-time permanent employment for students at the project
4site. Additionally, the applicant may create or utilize
5participants from apprenticeship programs that are approved by
6and registered with the United States Department of Labor's
7Bureau of Apprenticeship and Training. The Applicant may apply
8for apprenticeship education expense credits in accordance
9with the provisions set forth in 14 Ill. Admin. Code 522. Each
10applicant is required to report annually, on or before April
1115, on the diversity of its workforce in accordance with
12Section 110-50 of this Act. For existing facilities of
13applicants under paragraph (3) of subsection (b) above, if the
14taxpayer expects a reduction in force due to its transition to
15manufacturing semiconductors, microchips, or semiconductor or
16microchip component parts, the plan submitted under this
17Section must outline the taxpayer's plan to assist with
18retraining its workforce aligned with the taxpayer's adoption
19of new technologies and anticipated efforts to retrain
20employees through employment opportunities within the
21taxpayer's workforce.
22    (f) A taxpayer may not enter into more than one agreement
23under this Act with respect to a single address or location for
24the same period of time. Also, a taxpayer may not enter into an
25agreement under this Act with respect to a single address or
26location for the same period of time for which the taxpayer

 

 

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1currently holds an active agreement under the Economic
2Development for a Growing Economy Tax Credit Act. This
3provision does not preclude the applicant from entering into
4an additional agreement after the expiration or voluntary
5termination of an earlier agreement under this Act or under
6the Economic Development for a Growing Economy Tax Credit Act
7to the extent that the taxpayer's application otherwise
8satisfies the terms and conditions of this Act and is approved
9by the Department. An applicant with an existing agreement
10under the Economic Development for a Growing Economy Tax
11Credit Act may submit an application for an agreement under
12this Act after it terminates any existing agreement under the
13Economic Development for a Growing Economy Tax Credit Act with
14respect to the same address or location.
15(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
 
16    (35 ILCS 45/110-35)
17    Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
18not entitled to claim a credit provided by this Act with
19respect to any jobs that the taxpayer relocates from one site
20in Illinois to another site in Illinois unless the taxpayer
21has agreed to hire the minimum number of new employees and the
22Department has determined that the expansion cannot reasonably
23be accommodated within the municipality in which the business
24is located. Any full-time employee relocated to Illinois in
25connection with a qualifying project is deemed to be a new

 

 

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1employee for purposes of this Act. Determinations under this
2Section shall be made by the Department.
3(Source: P.A. 102-700, eff. 4-19-22.)
 
4    (35 ILCS 45/110-65)
5    Sec. 110-65. Certified payroll.
6    (a) Annually, until construction is completed, a company
7seeking MICRO Construction Job Credits shall submit a report
8that, at a minimum, describes the projected project scope,
9timeline, and anticipated budget. Once the project has
10commenced, the annual report shall include actual data for the
11prior year as well as projections for each additional year
12through completion of the project. The Department shall issue
13detailed reporting guidelines prescribing the requirements of
14construction-related reports. Each contractor and
15subcontractor that is engaged in construction work on project
16facilities for a taxpayer who seeks to apply for a MICRO
17Construction Jobs Credit shall:
18        (1) make and keep, for a period of 5 years from the
19    date of the last payment made on a contract or subcontract
20    for construction of facilities for a project pursuant to
21    an agreement, records of all laborers and other workers
22    employed by the contractor or subcontractor on the
23    project; the records shall include:
24            (A) the worker's name;
25            (B) the worker's address;

 

 

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1            (C) the worker's telephone number, if available;
2            (D) the worker's social security number;
3            (E) the worker's classification or
4        classifications;
5            (F) the worker's gross and net wages paid in each
6        pay period;
7            (G) the worker's number of hours worked in each
8        day;
9            (H) the worker's starting and ending times of work
10        each day;
11            (I) the worker's hourly wage rate; and
12            (J) the worker's hourly overtime wage rate; and
13        (2) no later than the 15th day of each calendar month,
14    provide a certified payroll for the immediately preceding
15    month to the taxpayer in charge of the project; within 5
16    business days after receiving the certified payroll, the
17    taxpayer shall file the certified payroll with the
18    Department of Labor and the Department; a certified
19    payroll must be filed for only those calendar months
20    during which construction on the project facilities has
21    occurred; the certified payroll shall consist of a
22    complete copy of the records identified in paragraph (1),
23    but may exclude the starting and ending times of work each
24    day; the certified payroll shall be accompanied by a
25    statement signed by the contractor or subcontractor or an
26    officer, employee, or agent of the contractor or

 

 

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1    subcontractor which avers that:
2            (A) he or she has examined the certified payroll
3        records required to be submitted by the Act and such
4        records are true and accurate; and
5            (B) the contractor or subcontractor is aware that
6        filing a certified payroll that he or she knows to be
7        false is a Class A misdemeanor.
8    A general contractor is not prohibited from relying on a
9certified payroll of a lower-tier subcontractor, provided the
10general contractor does not knowingly rely upon a
11subcontractor's false certification.
12    (b) In order to receive credit for construction expenses,
13the company must provide the Department with evidence that a
14certified third party executed an Agreed-Upon Procedure (AUP)
15verifying the construction expenses or accept the standard
16construction wage expense estimated by the Department. Any
17contractor or subcontractor subject to this Section, and any
18officer, employee, or agent of such contractor or
19subcontractor whose duty as an officer, employee, or agent it
20is to file a certified payroll under this Section, who
21willfully fails to file such a certified payroll, on or before
22the date such certified payroll is required to be filed and any
23person who willfully files a false certified payroll as to any
24material fact is in violation of this Act and guilty of a Class
25A misdemeanor and may be enforced by the Illinois Department
26of Labor or the Department. The Attorney General shall

 

 

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1represented the Illinois Department of Labor or the Department
2in the proceeding.
3    (c) Upon review of the final project scope, timeline,
4budget, and AUP, the Department shall issue a tax credit
5certificate reflecting a percentage of the total construction
6job wages paid throughout the completion of the project. The
7taxpayer in charge of the project shall keep the records
8submitted in accordance with this Section for a period of 5
9years from the date of the last payment for work on a contract
10or subcontract for the project.
11    (d) (Blank). The records submitted in accordance with this
12Section shall be considered public records, except an
13employee's address, telephone number, and social security
14number, which shall be redacted. The records shall be made
15publicly available in accordance with the Freedom of
16Information Act. The contractor or subcontractor shall submit
17reports to the Department of Labor electronically that meet
18the requirements of this subsection and shall share the
19information with the Department to comply with the awarding of
20the MICRO Construction Jobs Credit. A contractor,
21subcontractor, or public body may retain records required
22under this Section in paper or electronic format.
23    (e) Upon 7 business days' notice, the taxpayer contractor
24and each subcontractor shall make available to each State
25agency and to federal, State, or local law enforcement
26agencies and prosecutors for inspection and copying at a

 

 

HB0817 Engrossed- 177 -LRB103 04410 HLH 49416 b

1location within this State during reasonable hours, the report
2described in subsection (a) records identified in paragraph
3(1) of this subsection to the taxpayer in charge of the
4Project, its officers and agents, the Director of the
5Department of Labor and his/her deputies and agents, and to
6federal, State, or local law enforcement agencies and
7prosecutors.
8(Source: P.A. 102-700, eff. 4-19-22.)
 
9    (35 ILCS 45/110-95)
10    Sec. 110-95. Utility tax exemptions for MICRO projects.
11The Department may certify a taxpayer with a credit for a
12project that meets the qualifications under paragraphs (1),
13(2), and (4) of subsection (c) of Section 110-20, subject to an
14agreement under this Act, for an exemption from the tax
15imposed at the project site by Section 2-4 of the Electricity
16Excise Tax Law. To receive such certification, the taxpayer
17must be registered to self-assess that tax. The taxpayer is
18also exempt from any additional charges added to the
19taxpayer's utility bills at the project site as a pass-on of
20State utility taxes under Section 9-222 of the Public
21Utilities Act. The taxpayer must meet any other the criteria
22for certification set by the Department.
23    The Department shall determine the period during which the
24exemption from the Electricity Excise Tax Law and the charges
25imposed under Section 9-222 of the Public Utilities Act are in

 

 

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1effect, which shall not exceed 30 10 years from the date of the
2taxpayer's initial receipt of certification from the
3Department under this Section.
4    The Department is authorized to adopt rules to carry out
5the provisions of this Section, including procedures to apply
6for the exemptions; to define the amounts and types of
7eligible investments that an applicant must make in order to
8receive electricity excise tax exemptions or exemptions from
9the additional charges imposed under Section 9-222 and the
10Public Utilities Act; to approve such electricity excise tax
11exemptions for applicants whose investments are not yet placed
12in service; and to require that an applicant granted an
13electricity excise tax exemption or an exemption from
14additional charges under Section 9-222 of the Public Utilities
15Act repay the exempted amount if the applicant fails to comply
16with the terms and conditions of the agreement.
17    Upon certification by the Department under this Section,
18the Department shall notify the Department of Revenue of the
19certification. The Department of Revenue shall notify the
20public utilities of the exempt status of any taxpayer
21certified for exemption under this Act from the electricity
22excise tax or pass-on charges. The exemption status shall take
23effect within 3 months after certification of the taxpayer and
24notice to the Department of Revenue by the Department.
25(Source: P.A. 102-700, eff. 4-19-22.)
 

 

 

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1    Section 35. The Use Tax Act is amended by changing Section
212 as follows:
 
3    (35 ILCS 105/12)  (from Ch. 120, par. 439.12)
4    Sec. 12. Applicability of Retailers' Occupation Tax Act
5and Uniform Penalty and Interest Act. All of the provisions of
6Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
72-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
8provisions shall run from the date when the tax is due rather
9than from the date when gross receipts are received), 5
10(except that the time limitation provisions on the issuance of
11notices of tax liability shall run from the date when the tax
12is due rather than from the date when gross receipts are
13received and except that in the case of a failure to file a
14return required by this Act, no notice of tax liability shall
15be issued on and after each July 1 and January 1 covering tax
16due with that return during any month or period more than 6
17years before that July 1 or January 1, respectively), 5a, 5b,
185c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
1912 of the Retailers' Occupation Tax Act and Section 3-7 of the
20Uniform Penalty and Interest Act, which are not inconsistent
21with this Act, shall apply, as far as practicable, to the
22subject matter of this Act to the same extent as if such
23provisions were included herein.
24(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 

 

 

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1    Section 40. The Service Use Tax Act is amended by changing
2Section 12 as follows:
 
3    (35 ILCS 110/12)  (from Ch. 120, par. 439.42)
4    Sec. 12. Applicability of Retailers' Occupation Tax Act
5and Uniform Penalty and Interest Act. All of the provisions of
6Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
72-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
8Department of the money collected under this Act), 4 (except
9that the time limitation provisions shall run from the date
10when gross receipts are received), 5 (except that the time
11limitation provisions on the issuance of notices of tax
12liability shall run from the date when the tax is due rather
13than from the date when gross receipts are received and except
14that in the case of a failure to file a return required by this
15Act, no notice of tax liability shall be issued on and after
16July 1 and January 1 covering tax due with that return during
17any month or period more than 6 years before that July 1 or
18January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
195l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
20Occupation Tax Act which are not inconsistent with this Act,
21and Section 3-7 of the Uniform Penalty and Interest Act, shall
22apply, as far as practicable, to the subject matter of this Act
23to the same extent as if such provisions were included herein.
24(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 

 

 

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1    Section 45. The Service Occupation Tax Act is amended by
2changing Section 12 as follows:
 
3    (35 ILCS 115/12)  (from Ch. 120, par. 439.112)
4    Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
51j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
6(except as to the disposition by the Department of the tax
7collected under this Act), 4 (except that the time limitation
8provisions shall run from the date when the tax is due rather
9than from the date when gross receipts are received), 5
10(except that the time limitation provisions on the issuance of
11notices of tax liability shall run from the date when the tax
12is due rather than from the date when gross receipts are
13received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
147, 8, 9, 10, 11, and 12 of the "Retailers' Occupation Tax Act"
15which are not inconsistent with this Act, and Section 3-7 of
16the Uniform Penalty and Interest Act shall apply, as far as
17practicable, to the subject matter of this Act to the same
18extent as if such provisions were included herein.
19(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
20revised 9-26-23.)
 
21    Section 50. The Retailers' Occupation Tax Act is amended
22by adding Section 2-29 as follows:
 
23    (35 ILCS 120/2-29 new)

 

 

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1    Sec. 2-29. Quantum computing campus building materials
2exemption.
3    (a) Each retailer who makes a qualified sale of building
4materials to be incorporated into real estate at a quantum
5computing campus certified by the Department of Commerce and
6Economic Opportunity under Section 605-1115 of the Department
7of Commerce and Economic Opportunity Law of the Civil
8Administrative Code of Illinois may deduct receipts from those
9sales when calculating the tax imposed by this Act. Quantum
10Computing Campus Building Materials Exemption Certificates
11shall be issued for an initial period not to exceed 20 years
12and can be renewed once for a period not to exceed 20 years.
13    (b) No retailer who is eligible for the deduction or
14credit for a given sale under Section 5k of this Act related to
15enterprise zones, Section 5l of this Act related to High
16Impact Businesses, Section 5m of this Act related to REV
17Illinois projects, or Section 5n of this Act related to MICRO
18facilities shall be eligible for the deduction or credit
19authorized under this Section for that same sale.
20    (c) A construction contractor or other entity shall not
21make tax-free purchases unless it has an active Exemption
22Certificate issued by the Department at the time of the
23purchase.
24    (d) A taxpayer that is certified by the Department of
25Commerce and Economic Opportunity under Section 605-1115 of
26the Department of Commerce and Economic Opportunity Law of the

 

 

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1Civil Administrative Code of Illinois shall submit a request
2to the Department for an initial or renewal Quantum Computing
3Campus Materials Exemption Certificate. Upon request from the
4certified taxpayer, the Department shall issue a Quantum
5Computing Campus Building Materials Exemption Certificate for
6each construction contractor or other entity identified by the
7certified taxpayer. The Department shall make the Quantum
8Computing Campus Building Materials Exemption Certificates
9available to each construction contractor or other entity
10identified by the certified taxpayer and to the certified
11taxpayer. The request for Quantum Computing Campus Building
12Materials Exemption Certificates under this Section must
13include the following information:
14        (1) the name and address of the construction
15    contractor or other entity;
16        (2) the name and location or address of the building
17    project site;
18        (3) the estimated amount of the exemption for each
19    construction contractor or other entity for which a
20    request for a Quantum Computing Campus Building Materials
21    Exemption Certificate is made, based on a stated estimated
22    average tax rate and the percentage of the contract that
23    consists of materials;
24        (4) the period of time over which supplies for the
25    project are expected to be purchased; and
26        (5) other reasonable information as the Department may

 

 

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1    require, including, but not limited to, FEIN numbers, to
2    determine if the contractor or other entity, or any
3    partner, or a corporate officer, and in the case of a
4    limited liability company, any manager or member, of the
5    construction contractor or other entity, is or has been
6    the owner, a partner, a corporate officer, and, in the
7    case of a limited liability company, a manager or member,
8    of a person that is in default for moneys due to the
9    Department under this Act or any other tax or fee Act
10    administered by the Department.
11    The Department, in its discretion, may require that the
12request for Quantum Computing Campus Building Materials
13Exemption Certificates be submitted electronically. The
14Department may, in its discretion, issue the Exemption
15Certificates electronically.
16    (e) To document the exemption allowed under this Section,
17the retailer must obtain from the purchaser the certification
18required under this Section, which must contain the Quantum
19Computing Campus Building Materials Exemption Certificate
20number issued to the purchaser by the Department. In addition,
21the retailer must obtain certification from the purchaser that
22contains:
23        (1) a statement that the building materials are being
24    purchased for incorporation into real estate located in a
25    quantum computing campus;
26        (2) the location or address of the real estate into

 

 

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1    which the building materials will be incorporated;
2        (3) the name of the quantum computing campus in which
3    that real estate is located;
4        (4) a description of the building materials being
5    purchased;
6        (5) the purchaser's Quantum Computing Campus Building
7    Materials Exemption Certificate number issued by the
8    Department; and
9        (6) the purchaser's signature and date of purchase.
10    (f) The Department shall issue the Quantum Computing
11Campus Building Materials Exemption Certificates within 3
12business days after receipt of the request from the certified
13taxpayer. This requirement does not apply in circumstances
14where the Department, for reasonable cause, is unable to issue
15the Exemption Certificate within 3 business days. The
16Department may refuse to issue a Quantum Computing Campus
17Building Materials Exemption Certificate if the owner, any
18partner, or a corporate officer, and in the case of a limited
19liability company, any manager or member, of the construction
20contractor or other entity is or has been the owner, a partner,
21a corporate officer, and, in the case of a limited liability
22company, a manager or member, of a person that is in default
23for moneys due to the Department under this Act or any other
24tax or fee Act administered by the Department.
25    (g) The Quantum Computing Campus Building Materials
26Exemption Certificate shall contain:

 

 

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1        (1) a unique identifying number that shall be designed
2    in such a way that the Department can identify from the
3    unique number on the Exemption Certificate issued to a
4    given construction contractor or other entity, the name of
5    the quantum computing campus and the construction
6    contractor or other entity to whom the Exemption
7    Certificate is issued;
8        (2) the name of the construction contractor or entity
9    to whom the Exemption Certificate is issued;
10        (3) issuance, effective, and expiration dates; and
11        (4) language stating that if the construction
12    contractor or other entity who is issued the Exemption
13    Certificate makes a tax-exempt purchase, as described in
14    this Section, that is not eligible for exemption under
15    this Section or allows another person to make a tax-exempt
16    purchase, as described in this Section, that is not
17    eligible for exemption under this Section, then, in
18    addition to any tax or other penalty imposed, the
19    construction contractor or other entity is subject to a
20    penalty equal to the tax that would have been paid by the
21    retailer under this Act as well as any applicable local
22    retailers' occupation tax on the purchase that is not
23    eligible for the exemption.
24    (h) After the Department issues Exemption Certificates for
25a given quantum computing campus, the certified taxpayer may
26notify the Department of additional construction contractors

 

 

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1or other entities that are eligible for a Quantum Computing
2Campus Building Materials Exemption Certificate. Upon
3receiving such a notification and subject to the other
4provisions of this Section, the Department shall issue a
5Quantum Computing Campus Building Materials Exemption
6Certificate to each additional construction contractor or
7other entity so identified.
8    (i) A certified taxpayer may ask the Department to rescind
9a Quantum Computing Campus Building Materials Exemption
10Certificate previously issued by the Department to a
11construction contractor or other entity working at that
12certified quantum computing campus if that Quantum Computing
13Campus Building Materials Exemption Certificate has not yet
14expired. Upon receiving such a request and subject to the
15other provisions of this Section, the Department shall issue
16the rescission of the Quantum Computing Campus Building
17Materials Exemption Certificate to the construction contractor
18or other entity identified by the certified taxpayer and
19provide a copy of the rescission to the construction
20contractor or other entity and to the certified taxpayer.
21    (j) If the Department of Revenue determines that a
22construction contractor or other entity that was issued an
23Exemption Certificate under this Section made a tax-exempt
24purchase, as described in this Section, that was not eligible
25for exemption under this Section or allowed another person to
26make a tax-exempt purchase, as described in this Section, that

 

 

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1was not eligible for exemption under this Section, then, in
2addition to any tax or other penalty imposed, the construction
3contractor or other entity is subject to a penalty equal to the
4tax that would have been paid by the retailer under this Act as
5well as any applicable local retailers' occupation tax on the
6purchase that was not eligible for the exemption.
7    (k) Each contractor or other entity that has been issued a
8Quantum Computing Campus Building Materials Exemption
9Certificate under this Section shall annually report to the
10Department the total value of the quantum computing campus
11building materials exemption from State taxes. Reports shall
12contain information reasonably required by the Department to
13enable it to verify and calculate the total tax benefits for
14taxes imposed by the State and shall be broken down by quantum
15computing campus site. Reports are due no later than May 31 of
16each year and shall cover the previous calendar year. Failure
17to report data may result in revocation of the Quantum
18Computing Campus Building Materials Exemption Certificate
19issued to the contractor or other entity. The Department is
20authorized to adopt rules governing revocation determinations,
21including the length of revocation. Factors to be considered
22in revocations shall include, but are not limited to, prior
23compliance with the reporting requirements, cooperation in
24discontinuing and correcting violations, and whether the
25certificate was used unlawfully during the preceding year. The
26Department, in its discretion, may require that the reports

 

 

HB0817 Engrossed- 189 -LRB103 04410 HLH 49416 b

1filed under this Section be submitted electronically.
2    (l) As used in this Section:
3    "Certified taxpayer" means a person certified by the
4Department of Commerce and Economic Opportunity under Section
5605-1115 of the Department of Commerce and Economic
6Opportunity Law of the Civil Administrative Code of Illinois.
7    "Qualified sale" means a sale of building materials that
8will be incorporated into real estate as part of a building
9project for which a Quantum Computing Campus Building
10Materials Exemption Certificate has been issued to the
11purchaser by the Department.
12    (m) The Department shall have the authority to adopt rules
13as are reasonable and necessary to implement the provisions of
14this Section.
15    (n) This Section is exempt from the provisions of Section
162-70.
17    (o) This exemption also applies to the Use Tax Act, the
18Service Use Tax Act, and the Service Occupation Tax Act and is
19incorporated by reference in Section 12 of each of those
20respective Acts.
 
21    Section 53. The Gas Use Tax Law is amended by changing
22Section 5-10 as follows:
 
23    (35 ILCS 173/5-10)
24    Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a

 

 

HB0817 Engrossed- 190 -LRB103 04410 HLH 49416 b

1tax is imposed upon the privilege of using in this State gas
2obtained in a purchase of out-of-state gas at the rate of 2.4
3cents per therm or 5% of the purchase price for the billing
4period, whichever is the lower rate. Such tax rate shall be
5referred to as the "self-assessing purchaser tax rate".
6Beginning with bills issued by delivering suppliers on and
7after October 1, 2003, purchasers may elect an alternative tax
8rate of 2.4 cents per therm to be paid under the provisions of
9Section 5-15 of this Law to a delivering supplier maintaining
10a place of business in this State. Such tax rate shall be
11referred to as the "alternate tax rate". The tax imposed under
12this Section shall not apply to gas used by business
13enterprises certified under Section 9-222.1 of the Public
14Utilities Act or Section 605-1115 of the Department of
15Commerce and Economic Opportunity Law of the Civil
16Administrative Code of Illinois, as amended, to the extent of
17such exemption and during the period of time specified by the
18Department of Commerce and Economic Opportunity.
19(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
 
20    Section 55. The Property Tax Code is amended by changing
21Sections 18-184.15 and 18-184.20 as follows:
 
22    (35 ILCS 200/18-184.15)
23    Sec. 18-184.15. REV Illinois project facilities for
24electric vehicles, electric vehicle component parts, or

 

 

HB0817 Engrossed- 191 -LRB103 04410 HLH 49416 b

1electric vehicle power supply equipment; abatement.
2    (a) Any taxing district, upon a majority vote of its
3governing body, may, after determination of the assessed value
4as set forth in this Code, order the clerk of the appropriate
5municipality or county to abate, for a period not to exceed 30
6consecutive years, any portion of real property taxes
7otherwise levied or extended by the taxing district on a REV
8Illinois Project facility owned by an electric vehicle
9manufacturer, electric vehicle component parts manufacturer,
10or an electric vehicle power supply manufacturer that is
11subject to an agreement with the Department of Commerce and
12Economic Opportunity under Section 45 of the Reimagining
13Energy and Vehicles in Illinois Act, during the period of time
14such agreement is in effect as specified by the Department of
15Commerce and Economic Opportunity.
16    (b) Two or more taxing districts, upon a majority vote of
17each of their respective governing bodies, may agree to abate,
18for a period not to exceed 30 consecutive tax years, a portion
19of the real property taxes otherwise levied or extended by
20those taxing districts on a REV Illinois Project facility that
21is subject to an agreement with the Department of Commerce and
22Economic Opportunity under Section 45 of the Reimagining
23Energy and Vehicles in Illinois Act. The agreement entered
24into by the taxing districts under this subsection (b) shall
25be filed with the county clerk who shall, for the period the
26agreement remains in effect, abate the portion of the real

 

 

HB0817 Engrossed- 192 -LRB103 04410 HLH 49416 b

1estate taxes levied or extended by those taxing districts as
2directed in the agreement. Any such agreement entered into by
32 or more taxing districts before the effective date of this
4amendatory Act of the 103rd General Assembly that is not
5inconsistent with the provisions of this subsection (b) is
6hereby declared valid and enforceable for the effective period
7of that agreement.
8(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
 
9    (35 ILCS 200/18-184.20)
10    Sec. 18-184.20. MICRO Illinois project facilities. Any
11taxing district, upon a majority vote of its governing body,
12may, after determination of the assessed value as set forth in
13this Code, order the clerk of the appropriate municipality or
14county to abate, for a period not to exceed 30 consecutive
15years, any portion of real property taxes otherwise levied or
16extended by the taxing district on a MICRO Illinois Project
17facility owned by a semiconductor manufacturer or microchip
18manufacturer or a semiconductor or microchip component parts
19manufacturer that is subject to an agreement with the
20Department of Commerce and Economic Opportunity under the
21Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
22during the period of time such agreement is in effect as
23specified by the Department of Commerce and Economic
24Opportunity.
25(Source: P.A. 102-700, eff. 4-19-22.)
 

 

 

HB0817 Engrossed- 193 -LRB103 04410 HLH 49416 b

1    Section 60. The Telecommunications Excise Tax Act is
2amended by changing Section 2 as follows:
 
3    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
4    Sec. 2. As used in this Article, unless the context
5clearly requires otherwise:
6    (a) "Gross charge" means the amount paid for the act or
7privilege of originating or receiving telecommunications in
8this State and for all services and equipment provided in
9connection therewith by a retailer, valued in money whether
10paid in money or otherwise, including cash, credits, services
11and property of every kind or nature, and shall be determined
12without any deduction on account of the cost of such
13telecommunications, the cost of materials used, labor or
14service costs or any other expense whatsoever. In case credit
15is extended, the amount thereof shall be included only as and
16when paid. "Gross charges" for private line service shall
17include charges imposed at each channel termination point
18within this State, charges for the channel mileage between
19each channel termination point within this State, and charges
20for that portion of the interstate inter-office channel
21provided within Illinois. Charges for that portion of the
22interstate inter-office channel provided in Illinois shall be
23determined by the retailer as follows: (i) for interstate
24inter-office channels having 2 channel termination points,

 

 

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1only one of which is in Illinois, 50% of the total charge
2imposed; or (ii) for interstate inter-office channels having
3more than 2 channel termination points, one or more of which
4are in Illinois, an amount equal to the total charge
5multiplied by a fraction, the numerator of which is the number
6of channel termination points within Illinois and the
7denominator of which is the total number of channel
8termination points. Prior to January 1, 2004, any method
9consistent with this paragraph or other method that reasonably
10apportions the total charges for interstate inter-office
11channels among the states in which channel terminations points
12are located shall be accepted as a reasonable method to
13determine the charges for that portion of the interstate
14inter-office channel provided within Illinois for that period.
15However, "gross charges" shall not include any of the
16following:
17        (1) Any amounts added to a purchaser's bill because of
18    a charge made pursuant to (i) the tax imposed by this
19    Article; (ii) charges added to customers' bills pursuant
20    to the provisions of Sections 9-221 or 9-222 of the Public
21    Utilities Act, as amended, or any similar charges added to
22    customers' bills by retailers who are not subject to rate
23    regulation by the Illinois Commerce Commission for the
24    purpose of recovering any of the tax liabilities or other
25    amounts specified in such provisions of such Act; (iii)
26    the tax imposed by Section 4251 of the Internal Revenue

 

 

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1    Code; (iv) 911 surcharges; or (v) the tax imposed by the
2    Simplified Municipal Telecommunications Tax Act.
3        (2) Charges for a sent collect telecommunication
4    received outside of the State.
5        (3) Charges for leased time on equipment or charges
6    for the storage of data or information for subsequent
7    retrieval or the processing of data or information
8    intended to change its form or content. Such equipment
9    includes, but is not limited to, the use of calculators,
10    computers, data processing equipment, tabulating equipment
11    or accounting equipment and also includes the usage of
12    computers under a time-sharing agreement.
13        (4) Charges for customer equipment, including such
14    equipment that is leased or rented by the customer from
15    any source, wherein such charges are disaggregated and
16    separately identified from other charges.
17        (5) Charges to business enterprises certified under
18    Section 9-222.1 of the Public Utilities Act, as amended,
19    or under Section 95 of the Reimagining Energy and Vehicles
20    in Illinois Act, to the extent of such exemption and
21    during the period of time specified by the Department of
22    Commerce and Economic Opportunity.
23        (5.1) Charges to business enterprises certified under
24    the Manufacturing Illinois Chips for Real Opportunity
25    (MICRO) Act, to the extent of the exemption and during the
26    period of time specified by the Department of Commerce and

 

 

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1    Economic Opportunity.
2        (5.2) Charges to entities certified under Section
3    605-1115 of the Department of Commerce and Economic
4    Opportunity Law of the Civil Administrative Code of
5    Illinois to the extent of the exemption and during the
6    period of time specified by the Department of Commerce and
7    Economic Opportunity.
8        (6) Charges for telecommunications and all services
9    and equipment provided in connection therewith between a
10    parent corporation and its wholly owned subsidiaries or
11    between wholly owned subsidiaries when the tax imposed
12    under this Article has already been paid to a retailer and
13    only to the extent that the charges between the parent
14    corporation and wholly owned subsidiaries or between
15    wholly owned subsidiaries represent expense allocation
16    between the corporations and not the generation of profit
17    for the corporation rendering such service.
18        (7) Bad debts. Bad debt means any portion of a debt
19    that is related to a sale at retail for which gross charges
20    are not otherwise deductible or excludable that has become
21    worthless or uncollectable, as determined under applicable
22    federal income tax standards. If the portion of the debt
23    deemed to be bad is subsequently paid, the retailer shall
24    report and pay the tax on that portion during the
25    reporting period in which the payment is made.
26        (8) Charges paid by inserting coins in coin-operated

 

 

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

 

 

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

 

 

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

 

 

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1equipment provided in connection therewith for a consideration
2to persons other than the Federal and State governments, and
3State universities created by statute and other than between a
4parent corporation and its wholly owned subsidiaries or
5between wholly owned subsidiaries for their use or consumption
6and not for resale.
7    (l) "Retailer" means and includes every person engaged in
8the business of making sales at retail as defined in this
9Article. The Department may, in its discretion, upon
10application, authorize the collection of the tax hereby
11imposed by any retailer not maintaining a place of business
12within this State, who, to the satisfaction of the Department,
13furnishes adequate security to insure collection and payment
14of the tax. Such retailer shall be issued, without charge, a
15permit to collect such tax. When so authorized, it shall be the
16duty of such retailer to collect the tax upon all of the gross
17charges for telecommunications in this State in the same
18manner and subject to the same requirements as a retailer
19maintaining a place of business within this State. The permit
20may be revoked by the Department at its discretion.
21    (m) "Retailer maintaining a place of business in this
22State", or any like term, means and includes any retailer
23having or maintaining within this State, directly or by a
24subsidiary, an office, distribution facilities, transmission
25facilities, sales office, warehouse or other place of
26business, or any agent or other representative operating

 

 

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

 

 

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1amount of service has been consumed. Prepaid telephone calling
2arrangements include the recharge of a prepaid calling
3arrangement. For purposes of this subsection, "recharge" means
4the purchase of additional prepaid telephone or
5telecommunications services whether or not the purchaser
6acquires a different access number or authorization code.
7"Prepaid telephone calling arrangement" does not include an
8arrangement whereby a customer purchases a payment card and
9pursuant to which the service provider reflects the amount of
10such purchase as a credit on an invoice issued to that customer
11under an existing subscription plan.
12(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
13102-1125, eff. 2-3-23.)
 
14    Section 65. The Telecommunications Infrastructure
15Maintenance Fee Act is amended by changing Section 10 as
16follows:
 
17    (35 ILCS 635/10)
18    Sec. 10. Definitions.
19    (a) "Gross charges" means the amount paid to a
20telecommunications retailer for the act or privilege of
21originating or receiving telecommunications in this State and
22for all services rendered in connection therewith, valued in
23money whether paid in money or otherwise, including cash,
24credits, services, and property of every kind or nature, and

 

 

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

 

 

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1inter-office channel provided within Illinois for that period.
2However, "gross charges" shall not include any of the
3following:
4        (1) Any amounts added to a purchaser's bill because of
5    a charge made under: (i) the fee imposed by this Section,
6    (ii) additional charges added to a purchaser's bill under
7    Section 9-221 or 9-222 of the Public Utilities Act, (iii)
8    the tax imposed by the Telecommunications Excise Tax Act,
9    (iv) 911 surcharges, (v) the tax imposed by Section 4251
10    of the Internal Revenue Code, or (vi) the tax imposed by
11    the Simplified Municipal Telecommunications Tax Act.
12        (2) Charges for a sent collect telecommunication
13    received outside of this State.
14        (3) Charges for leased time on equipment or charges
15    for the storage of data or information or subsequent
16    retrieval or the processing of data or information
17    intended to change its form or content. Such equipment
18    includes, but is not limited to, the use of calculators,
19    computers, data processing equipment, tabulating
20    equipment, or accounting equipment and also includes the
21    usage of computers under a time-sharing agreement.
22        (4) Charges for customer equipment, including such
23    equipment that is leased or rented by the customer from
24    any source, wherein such charges are disaggregated and
25    separately identified from other charges.
26        (5) Charges to business enterprises certified under

 

 

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1    Section 9-222.1 of the Public Utilities Act to the extent
2    of such exemption and during the period of time specified
3    by the Department of Commerce and Economic Opportunity.
4        (5.1) Charges to business enterprises certified under
5    Section 95 of the Reimagining Energy and Vehicles in
6    Illinois Act, to the extent of the exemption and during
7    the period of time specified by the Department of Commerce
8    and Economic Opportunity.
9        (5.2) Charges to business enterprises certified under
10    Section 110-95 of the Manufacturing Illinois Chips for
11    Real Opportunity (MICRO) Act, to the extent of the
12    exemption and during the period of time specified by the
13    Department of Commerce and Economic Opportunity.
14        (5.3) Charges to entities certified under Section
15    605-1115 of the Department of Commerce and Economic
16    Opportunity Law of the Civil Administrative Code of
17    Illinois to the extent of the exemption and during the
18    period of time specified by the Department of Commerce and
19    Economic Opportunity.
20        (6) Charges for telecommunications and all services
21    and equipment provided in connection therewith between a
22    parent corporation and its wholly owned subsidiaries or
23    between wholly owned subsidiaries, and only to the extent
24    that the charges between the parent corporation and wholly
25    owned subsidiaries or between wholly owned subsidiaries
26    represent expense allocation between the corporations and

 

 

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

 

 

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1    telecommunications.
2    (a-5) "Department" means the Illinois Department of
3Revenue.
4    (b) "Telecommunications" includes, but is not limited to,
5messages or information transmitted through use of local,
6toll, and wide area telephone service, channel services,
7telegraph services, teletypewriter service, computer exchange
8services, private line services, specialized mobile radio
9services, or any other transmission of messages or information
10by electronic or similar means, between or among points by
11wire, cable, fiber optics, laser, microwave, radio, satellite,
12or similar facilities. Unless the context clearly requires
13otherwise, "telecommunications" shall also include wireless
14telecommunications as hereinafter defined.
15"Telecommunications" shall not include value added services in
16which computer processing applications are used to act on the
17form, content, code, and protocol of the information for
18purposes other than transmission. "Telecommunications" shall
19not include purchase of telecommunications by a
20telecommunications service provider for use as a component
21part of the service provided by him or her to the ultimate
22retail consumer who originates or terminates the end-to-end
23communications. Retailer access charges, right of access
24charges, charges for use of intercompany facilities, and all
25telecommunications resold in the subsequent provision and used
26as a component of, or integrated into, end-to-end

 

 

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1telecommunications service shall not be included in gross
2charges as sales for resale. "Telecommunications" shall not
3include the provision of cable services through a cable system
4as defined in the Cable Communications Act of 1984 (47 U.S.C.
5Sections 521 and following) as now or hereafter amended or
6through an open video system as defined in the Rules of the
7Federal Communications Commission (47 C.D.F. 76.1550 and
8following) as now or hereafter amended. Beginning January 1,
92001, prepaid telephone calling arrangements shall not be
10considered "telecommunications" subject to the tax imposed
11under this Act. For purposes of this Section, "prepaid
12telephone calling arrangements" means that term as defined in
13Section 2-27 of the Retailers' Occupation Tax Act.
14    (c) "Wireless telecommunications" includes cellular mobile
15telephone services, personal wireless services as defined in
16Section 704(C) of the Telecommunications Act of 1996 (Public
17Law No. 104-104) as now or hereafter amended, including all
18commercial mobile radio services, and paging services.
19    (d) "Telecommunications retailer" or "retailer" or
20"carrier" means and includes every person engaged in the
21business of making sales of telecommunications at retail as
22defined in this Section. The Department may, in its
23discretion, upon applications, authorize the collection of the
24fee hereby imposed by any retailer not maintaining a place of
25business within this State, who, to the satisfaction of the
26Department, furnishes adequate security to insure collection

 

 

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1and payment of the fee. When so authorized, it shall be the
2duty of such retailer to pay the fee upon all of the gross
3charges for telecommunications in the same manner and subject
4to the same requirements as a retailer maintaining a place of
5business within this State.
6    (e) "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    (f) "Sale of telecommunications at retail" means the
18transmitting, supplying, or furnishing of telecommunications
19and all services rendered in connection therewith for a
20consideration, other than between a parent corporation and its
21wholly owned subsidiaries or between wholly owned
22subsidiaries, when the gross charge made by one such
23corporation to another such corporation is not greater than
24the gross charge paid to the retailer for their use or
25consumption and not for sale.
26    (g) "Service address" means the location of

 

 

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1telecommunications equipment from which telecommunications
2services are originated or at which telecommunications
3services are received. If this is not a defined location, as in
4the case of wireless telecommunications, paging systems,
5maritime systems, service address means the customer's place
6of primary use as defined in the Mobile Telecommunications
7Sourcing Conformity Act. For air-to-ground systems, and the
8like, "service address" shall mean the location of the
9customer's primary use of the telecommunications equipment as
10defined by the location in Illinois where bills are sent.
11(Source: P.A. 102-1125, eff. 2-3-23.)
 
12    Section 70. The Simplified Municipal Telecommunications
13Tax Act is amended by changing Section 5-7 as follows:
 
14    (35 ILCS 636/5-7)
15    Sec. 5-7. Definitions. For purposes of the taxes
16authorized by this Act:
17    "Amount paid" means the amount charged to the taxpayer's
18service address in such municipality regardless of where such
19amount is billed or paid.
20    "Department" means the Illinois Department of Revenue.
21    "Gross charge" means the amount paid for the act or
22privilege of originating or receiving telecommunications in
23such municipality and for all services and equipment provided
24in connection therewith by a retailer, valued in money whether

 

 

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1paid in money or otherwise, including cash, credits, services
2and property of every kind or nature, and shall be determined
3without any deduction on account of the cost of such
4telecommunications, the cost of the materials used, labor or
5service costs or any other expense whatsoever. In case credit
6is extended, the amount thereof shall be included only as and
7