Rep. Dave Vella

Filed: 5/20/2024

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 817

2    AMENDMENT NO. ______. Amend House Bill 817 by replacing
3everything after the enacting clause with the following:
 
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,
11services are the storage, management, and processing of
12digital data; and (2) that is used to house (A) computer and
13network systems, including associated components such as
14servers, network equipment and appliances, telecommunications,
15and data storage systems, (B) systems for monitoring and
16managing infrastructure performance, (C) Internet-related

 

 

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1equipment and services, (D) data communications connections,
2(E) environmental controls, (F) fire protection systems, and
3(G) security systems and services.
4    "Full-time equivalent job" means a job in which an
5employee works for a tenant of the quantum campus at a rate of
6at least 35 hours per week. Vacations, paid holidays, and sick
7time are included in this computation. Overtime is not
8considered a part of regular hours.
9    "Quantum computing campus" or "campus" is a contiguous
10area located in the State of Illinois that is designated by the
11Department as a quantum computing campus in order to support
12the demand for quantum computing research, development, and
13implementation for practical use. A quantum computing campus
14may include educational intuitions, nonprofit research and
15development organizations, and for-profit organizations
16serving as anchor tenants and joining tenants that, with
17approval from the Department, may change. Tenants located at
18the campus shall have direct and supporting roles in quantum
19computing activities. Eligible tenants include quantum
20computer operators and research facilities, data centers,
21manufacturers and assemblers of quantum computers and
22component parts, cryogenic or refrigeration facilities, and
23other facilities determined, by industry and academic leaders,
24to be fundamental to the research and development of quantum
25computing for practical solutions. Quantum computing shall
26include the research, development, and use of computing

 

 

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1methods that generate and manipulate quantum bits in a
2controlled quantum state. This includes the use of photons,
3semiconductors, superconductors, trapped ions, and other
4industry and academically regarded methods for simulating
5quantum bits. Additionally, a quantum campus shall meet the
6following criteria:
7        (1) the campus must comprise a minimum of one-half
8    square mile and not more than 4 square miles;
9        (2) the campus must contain tenants that demonstrate a
10    substantial plan for using the designation to encourage
11    participation by organizations owned by minorities, women,
12    and persons with disabilities, as those terms are defined
13    in the Business Enterprise for Minorities, Women, and
14    Persons with Disabilities Act, and the hiring of
15    minorities, women, and persons with disabilities;
16        (3) upon being placed in service, within 60 months
17    after designation or incorporation into a campus, the
18    owners of property located in a campus shall certify to
19    the Department that the property is carbon neutral or has
20    attained certification under one or more of the following
21    green building standards:
22            (A) BREEAM for New Construction or BREEAM, In-Use;
23            (B) ENERGY STAR;
24            (C) Envision;
25            (D) ISO 50001-energy management;
26            (E) LEED for Building Design and Construction, or

 

 

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1        LEED for Operations and Maintenance;
2            (F) Green Globes for New Construction or, Green
3        Globes for Existing Buildings;
4            (G) UL 3223; or
5            (H) an equivalent program approved by the
6        Department.
7    (b) Tenants located in a designated quantum computing
8campus shall qualify for the following exemptions and credits:
9        (1) the Department may certify a taxpayer for an
10    exemption from any State or local use tax or retailers'
11    occupation tax on building materials that will be
12    incorporated into real estate at a quantum computing
13    campus;
14        (2) an exemption from the charges imposed under
15    Section 9-222 of the Public Utilities Act, Section 5-10 of
16    the Gas Use Tax Law, Section 2-4 of the Electricity Excise
17    Tax Law, Section 2 of the Telecommunications Excise Tax
18    Act, Section 10 of the Telecommunications Infrastructure
19    Maintenance Fee Act, and Section 5-7 of the Simplified
20    Municipal Telecommunications Tax Act; and
21        (3) a credit against the taxes imposed under
22    subsections (a) and (b) of Section 201 of the Illinois
23    Income Tax Act as provided in Section 241 of the Illinois
24    Income Tax Act.
25    (c) Certificates of exemption and credit certificates
26under this Section shall be issued by the Department. Upon

 

 

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

 

 

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1    tenant or tenants claiming the exemption shall be
2    required;
3        (5) the duration of the exemptions; and
4        (6) other provisions as deemed necessary by the
5    Department.
6    The Department shall, within 10 days after the
7designation, send a letter of notification to each member of
8the General Assembly whose legislative district or
9representative district contains all or part of the designated
10area.
11    (e) Beginning on July 1, 2025, and each year thereafter,
12the Department shall annually report to the Governor and the
13General Assembly on the outcomes and effectiveness of this
14amendatory Act of the 103rd General Assembly. The report shall
15include the following:
16        (1) the names of each tenant located within the
17    quantum computing campus;
18        (2) the location of each quantum computing campus;
19        (3) the estimated value of the credits to be issued to
20    quantum computing campus tenants;
21        (4) the number of new jobs and, if applicable,
22    retained jobs pledged at each quantum computing campus;
23    and
24        (5) whether or not the quantum computing campus is
25    located in an underserved area, an energy transition zone,
26    or an opportunity zone.

 

 

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1    (f) Tenants at the quantum computing campus seeking a
2certificate of exemption related to the construction of
3required facilities shall require the contractor and all
4subcontractors to:
5        (1) comply with the requirements of Section 30-22 of
6    the Illinois Procurement Code as those requirements apply
7    to responsible bidders and to present satisfactory
8    evidence of that compliance to the Department; and
9        (2) enter into a project labor agreement submitted to
10    the Department.
11    (g) The Department shall not issue any new certificates of
12exemption under the provisions of this Section after July 1,
132030. This sunset shall not affect any existing certificates
14of exemption in effect on July 1, 2030.
15    (h) The Department shall adopt rules to implement and
16administer this Section.
 
17    Section 10. The Illinois Enterprise Zone Act is amended by
18changing Sections 5.5 and 13 as follows:
 
19    (20 ILCS 655/5.5)  (from Ch. 67 1/2, par. 609.1)
20    Sec. 5.5. High Impact Business.
21    (a) In order to respond to unique opportunities to assist
22in the encouragement, development, growth, and expansion of
23the private sector through large scale investment and
24development projects, the Department is authorized to receive

 

 

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1and approve applications for the designation of "High Impact
2Businesses" in Illinois, for an initial term of 20 years with
3an option for renewal for a term not to exceed 20 years,
4subject to the following conditions:
5        (1) such applications may be submitted at any time
6    during the year;
7        (2) such business is not located, at the time of
8    designation, in an enterprise zone designated pursuant to
9    this Act, except for grocery stores, as defined in the
10    Grocery Initiative Act;
11        (3) the business intends to do, commits to do, or is
12    one or more of the following:
13            (A) the business intends to make a minimum
14        investment of $12,000,000 which will be placed in
15        service in qualified property and intends to create
16        500 full-time equivalent jobs at a designated location
17        in Illinois or intends to make a minimum investment of
18        $30,000,000 which will be placed in service in
19        qualified property and intends to retain 1,500
20        full-time retained jobs at a designated location in
21        Illinois. The terms "placed in service" and "qualified
22        property" have the same meanings as described in
23        subsection (h) of Section 201 of the Illinois Income
24        Tax Act; or
25            (B) the business intends to establish a new
26        electric generating facility at a designated location

 

 

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1        in Illinois. "New electric generating facility", for
2        purposes of this Section, means a newly constructed
3        electric generation plant or a newly constructed
4        generation capacity expansion at an existing electric
5        generation plant, including the transmission lines and
6        associated equipment that transfers electricity from
7        points of supply to points of delivery, and for which
8        such new foundation construction commenced not sooner
9        than July 1, 2001. Such facility shall be designed to
10        provide baseload electric generation and shall operate
11        on a continuous basis throughout the year; and (i)
12        shall have an aggregate rated generating capacity of
13        at least 1,000 megawatts for all new units at one site
14        if it uses natural gas as its primary fuel and
15        foundation construction of the facility is commenced
16        on or before December 31, 2004, or shall have an
17        aggregate rated generating capacity of at least 400
18        megawatts for all new units at one site if it uses coal
19        or gases derived from coal as its primary fuel and
20        shall support the creation of at least 150 new
21        Illinois coal mining jobs, or (ii) shall be funded
22        through a federal Department of Energy grant before
23        December 31, 2010 and shall support the creation of
24        Illinois coal mining coal-mining jobs, or (iii) shall
25        use coal gasification or integrated
26        gasification-combined cycle units that generate

 

 

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

 

 

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1        150 new Illinois coal mining jobs as described in
2        subdivision (a)(3)(B) of this Section, and further
3        provided that the coal extracted from such mine is
4        utilized as the predominant source for a new electric
5        generating facility. The term "placed in service" has
6        the same meaning as described in subsection (h) of
7        Section 201 of the Illinois Income Tax Act; or
8            (D) the business intends to construct new
9        transmission facilities or upgrade existing
10        transmission facilities at designated locations in
11        Illinois, for which construction commenced not sooner
12        than July 1, 2001. For the purposes of this Section,
13        "transmission facilities" means transmission lines
14        with a voltage rating of 115 kilovolts or above,
15        including associated equipment, that transfer
16        electricity from points of supply to points of
17        delivery and that transmit a majority of the
18        electricity generated by a new electric generating
19        facility designated as a High Impact Business in
20        accordance with this Section. The term "placed in
21        service" has the same meaning as described in
22        subsection (h) of Section 201 of the Illinois Income
23        Tax Act; or
24            (E) the business intends to establish a new wind
25        power facility at a designated location in Illinois.
26        For purposes of this Section, "new wind power

 

 

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

 

 

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1        photovoltaic cells and (ii) has a nameplate capacity
2        that is greater than 5,000 kilowatts, and such
3        facility shall be deemed to include all associated
4        transmission lines, substations, energy storage
5        facilities, and other equipment related to the
6        generation and storage of electricity from
7        photovoltaic cells; or
8            (F) the business commits to (i) make a minimum
9        investment of $500,000,000, which will be placed in
10        service in a qualified property, (ii) create 125
11        full-time equivalent jobs at a designated location in
12        Illinois, (iii) establish a fertilizer plant at a
13        designated location in Illinois that complies with the
14        set-back standards as described in Table 1: Initial
15        Isolation and Protective Action Distances in the 2012
16        Emergency Response Guidebook published by the United
17        States Department of Transportation, (iv) pay a
18        prevailing wage for employees at that location who are
19        engaged in construction activities, and (v) secure an
20        appropriate level of general liability insurance to
21        protect against catastrophic failure of the fertilizer
22        plant or any of its constituent systems; in addition,
23        the business must agree to enter into a construction
24        project labor agreement including provisions
25        establishing wages, benefits, and other compensation
26        for employees performing work under the project labor

 

 

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1        agreement at that location; for the purposes of this
2        Section, "fertilizer plant" means a newly constructed
3        or upgraded plant utilizing gas used in the production
4        of anhydrous ammonia and downstream nitrogen
5        fertilizer products for resale; for the purposes of
6        this Section, "prevailing wage" means the hourly cash
7        wages plus fringe benefits for training and
8        apprenticeship programs approved by the U.S.
9        Department of Labor, Bureau of Apprenticeship and
10        Training, health and welfare, insurance, vacations and
11        pensions paid generally, in the locality in which the
12        work is being performed, to employees engaged in work
13        of a similar character on public works; this paragraph
14        (F) applies only to businesses that submit an
15        application to the Department within 60 days after
16        July 25, 2013 (the effective date of Public Act
17        98-109); or
18            (G) the business intends to establish a new
19        cultured cell material food production facility at a
20        designated location in Illinois. As used in this
21        paragraph (G):
22            "Cultured cell material food production facility"
23        means a facility (i) at which cultured animal cell
24        food is developed using animal cell culture
25        technology, (ii) at which production processes occur
26        that include the establishment of cell lines and cell

 

 

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1        banks, manufacturing controls, and all components and
2        inputs, and (iii) that complies with all existing
3        registrations, inspections, licensing, and approvals
4        from all applicable and participating State and
5        federal food agencies, including the Department of
6        Agriculture, the Department of Public Health, and the
7        United States Food and Drug Administration, to ensure
8        that all food production is safe and lawful under
9        provisions of the Federal Food, Drug and Cosmetic Act
10        related to the development, production, and storage of
11        cultured animal cell food.
12            "New cultured cell material food production
13        facility" means a newly constructed cultured cell
14        material food production facility that is placed in
15        service on or after June 7, 2023 (the effective date of
16        Public Act 103-9) this amendatory Act of the 103rd
17        General Assembly or a newly constructed expansion of
18        an existing cultured cell material food production
19        facility, in a controlled environment, when the
20        improvements are placed in service on or after June 7,
21        2023 (the effective date of Public Act 103-9) this
22        amendatory Act of the 103rd General Assembly; or and
23            (H) (G) the business is an existing or planned
24        grocery store, as that term is defined in Section 5 of
25        the Grocery Initiative Act, and receives financial
26        support under that Act within the 10 years before

 

 

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1        submitting its application under this Act; or and
2            (I) the business intends to establish a new
3        battery energy storage solution facility at a
4        designated location in Illinois. As used in this
5        paragraph (I):
6            "New battery energy storage solution facility"
7        means a newly constructed battery energy storage
8        facility, a newly constructed expansion of an existing
9        battery energy storage facility, or the replacement of
10        an existing battery energy storage facility that
11        stores electricity using battery devices and other
12        means, and such facility shall be deemed to include
13        any permanent structures associated with the battery
14        energy storage facility and all associated
15        transmission lines, substations, and other equipment
16        related to the storage and transmission of electric
17        power that has a capacity of not less than 100 megawatt
18        and storage capability of not less than 200 megawatt
19        hours of energy; and
20        (4) no later than 90 days after an application is
21    submitted, the Department shall notify the applicant of
22    the Department's determination of the qualification of the
23    proposed High Impact Business under this Section.
24    (b) Businesses designated as High Impact Businesses
25pursuant to subdivision (a)(3)(A) of this Section shall
26qualify for the credits and exemptions described in the

 

 

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

 

 

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1authorized under Section 9-222 and Section 9-222.1A of the
2Public Utilities Act, and subsection (h) of Section 201 of the
3Illinois Income Tax Act shall not be authorized until the new
4electric generating facility, the new gasification facility,
5the new transmission facility, the new, expanded, or reopened
6coal mine, or the new cultured cell material food production
7facility, or the existing or planned grocery store is
8operational, except that a new electric generating facility
9whose primary fuel source is natural gas is eligible only for
10the exemption under Section 5l of the Retailers' Occupation
11Tax Act.
12    (b-6) Businesses designated as High Impact Businesses
13pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this
14Section shall qualify for the exemptions described in Section
155l of the Retailers' Occupation Tax Act; any business so
16designated as a High Impact Business being, for purposes of
17this Section, a "Wind Energy Business".
18    (b-7) Beginning on January 1, 2021, businesses designated
19as High Impact Businesses by the Department shall qualify for
20the High Impact Business construction jobs credit under
21subsection (h-5) of Section 201 of the Illinois Income Tax Act
22if the business meets the criteria set forth in subsection (i)
23of this Section. The total aggregate amount of credits awarded
24under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
25shall not exceed $20,000,000 in any State fiscal year.
26    (c) High Impact Businesses located in federally designated

 

 

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1foreign trade zones or sub-zones are also eligible for
2additional credits, exemptions and deductions as described in
3the following Acts: Section 9-221 and Section 9-222.1 of the
4Public Utilities Act; and subsection (g) of Section 201, and
5Section 203 of the Illinois Income Tax Act.
6    (d) Except for businesses contemplated under subdivision
7(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
8Section, existing Illinois businesses which apply for
9designation as a High Impact Business must provide the
10Department with the prospective plan for which 1,500 full-time
11retained jobs would be eliminated in the event that the
12business is not designated.
13    (e) Except for new businesses contemplated under
14subdivision (a)(3)(E), or subdivision (a)(3)(G), or
15subdivision (a)(3)(H) of this Section, new proposed facilities
16which apply for designation as High Impact Business must
17provide the Department with proof of alternative non-Illinois
18sites which would receive the proposed investment and job
19creation in the event that the business is not designated as a
20High Impact Business.
21    (f) Except for businesses contemplated under subdivision
22(a)(3)(E), or subdivision (a)(3)(G), or subdivision (a)(3)(H)
23of this Section, in the event that a business is designated a
24High Impact Business and it is later determined after
25reasonable notice and an opportunity for a hearing as provided
26under the Illinois Administrative Procedure Act, that the

 

 

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1business would have placed in service in qualified property
2the investments and created or retained the requisite number
3of jobs without the benefits of the High Impact Business
4designation, the Department shall be required to immediately
5revoke the designation and notify the Director of the
6Department of Revenue who shall begin proceedings to recover
7all wrongfully exempted State taxes with interest. The
8business shall also be ineligible for all State funded
9Department programs for a period of 10 years.
10    (g) The Department shall revoke a High Impact Business
11designation if the participating business fails to comply with
12the terms and conditions of the designation.
13    (h) Prior to designating a business, the Department shall
14provide the members of the General Assembly and Commission on
15Government Forecasting and Accountability with a report
16setting forth the terms and conditions of the designation and
17guarantees that have been received by the Department in
18relation to the proposed business being designated.
19    (i) High Impact Business construction jobs credit.
20Beginning on January 1, 2021, a High Impact Business may
21receive a tax credit against the tax imposed under subsections
22(a) and (b) of Section 201 of the Illinois Income Tax Act in an
23amount equal to 50% of the amount of the incremental income tax
24attributable to High Impact Business construction jobs credit
25employees employed in the course of completing a High Impact
26Business construction jobs project. However, the High Impact

 

 

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

 

 

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1of a High Impact Business construction job project.
2    "High Impact Business construction jobs project" means
3building a structure or building or making improvements of any
4kind to real property, undertaken and commissioned by a
5business that was designated as a High Impact Business by the
6Department. The term "High Impact Business construction jobs
7project" does not include the routine operation, routine
8repair, or routine maintenance of existing structures,
9buildings, or real property.
10    "Incremental income tax" means the total amount withheld
11during the taxable year from the compensation of High Impact
12Business construction job employees.
13    "Underserved area" means a geographic area that meets one
14or more of the following conditions:
15        (1) the area has a poverty rate of at least 20%
16    according to the latest American Community Survey;
17        (2) 35% or more of the families with children in the
18    area are living below 130% of the poverty line, according
19    to the latest American Community Survey;
20        (3) at least 20% of the households in the area receive
21    assistance under the Supplemental Nutrition Assistance
22    Program (SNAP); or
23        (4) the area has an average unemployment rate, as
24    determined by the Illinois Department of Employment
25    Security, that is more than 120% of the national
26    unemployment average, as determined by the U.S. Department

 

 

10300HB0817ham002- 23 -LRB103 04410 HLH 73800 a

1    of Labor, for a period of at least 2 consecutive calendar
2    years preceding the date of the application.
3    (j) (Blank). Each contractor and subcontractor who is
4engaged in and executing a High Impact Business Construction
5jobs project, as defined under subsection (i) of this Section,
6for a business that is entitled to a credit pursuant to
7subsection (i) of this Section shall:
8        (1) make and keep, for a period of 5 years from the
9    date of the last payment made on or after June 5, 2019 (the
10    effective date of Public Act 101-9) on a contract or
11    subcontract for a High Impact Business Construction Jobs
12    Project, records for all laborers and other workers
13    employed by the contractor or subcontractor on the
14    project; the records shall include:
15            (A) the worker's name;
16            (B) the worker's address;
17            (C) the worker's telephone number, if available;
18            (D) the worker's social security number;
19            (E) the worker's classification or
20        classifications;
21            (F) the worker's gross and net wages paid in each
22        pay period;
23            (G) the worker's number of hours worked each day;
24            (H) the worker's starting and ending times of work
25        each day;
26            (I) the worker's hourly wage rate;

 

 

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1            (J) the worker's hourly overtime wage rate;
2            (K) the worker's race and ethnicity; and
3            (L) the worker's gender;
4        (2) no later than the 15th day of each calendar month,
5    provide a certified payroll for the immediately preceding
6    month to the taxpayer in charge of the High Impact
7    Business construction jobs project; within 5 business days
8    after receiving the certified payroll, the taxpayer shall
9    file the certified payroll with the Department of Labor
10    and the Department of Commerce and Economic Opportunity; a
11    certified payroll must be filed for only those calendar
12    months during which construction on a High Impact Business
13    construction jobs project has occurred; the certified
14    payroll shall consist of a complete copy of the records
15    identified in paragraph (1) of this subsection (j), but
16    may exclude the starting and ending times of work each
17    day; the certified payroll shall be accompanied by a
18    statement signed by the contractor or subcontractor or an
19    officer, employee, or agent of the contractor or
20    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 High Impact Business
20construction jobs project.
21    The records submitted in accordance with this subsection
22shall be considered public records, except an employee's
23address, telephone number, and social security number, and
24made available in accordance with the Freedom of Information
25Act. The Department of Labor shall share the information with
26the Department in order to comply with the awarding of a High

 

 

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1Impact Business construction jobs credit. A contractor,
2subcontractor, or public body may retain records required
3under this Section in paper or electronic format.
4    (j-5) Annually, until construction is completed, a company
5seeking High Impact Business Construction Job credits shall
6submit a report that, at a minimum, describes the projected
7project scope, timeline, and anticipated budget. Once the
8project has commenced, the annual report shall include actual
9data for the prior year as well as projections for each
10additional year through completion of the project. The
11Department shall issue detailed reporting guidelines
12prescribing the requirements of construction-related reports.
13    In order to receive credit for construction expenses, the
14company must provide the Department with evidence that a
15certified third-party executed an Agreed-Upon Procedure (AUP)
16verifying the construction expenses or accept the standard
17construction wage expense estimated by the Department.
18    Upon review of the final project scope, timeline, budget,
19and AUP, the Department shall issue a tax credit certificate
20reflecting a percentage of the total construction job wages
21paid throughout the completion of the project.
22    (k) Upon 7 business days' notice, each taxpayer contractor
23and subcontractor shall make available to each State agency
24and to federal, State, or local law enforcement agencies and
25prosecutors for inspection and copying at a location within
26this State during reasonable hours, the report under

 

 

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1subsection (j-5) records identified in this subsection (j) to
2the taxpayer in charge of the High Impact Business
3construction jobs project, its officers and agents, the
4Director of the Department of Labor and his or her deputies and
5agents, and to federal, State, or local law enforcement
6agencies and prosecutors.
7    (l) The changes made to this Section by Public Act
8102-1125 this amendatory Act of the 102nd General Assembly,
9other than the changes in subsection (a), apply to High Impact
10Businesses high impact businesses that submit applications on
11or after February 3, 2023 (the effective date of Public Act
12102-1125) this amendatory Act of the 102nd General Assembly.
13(Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21;
14102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff.
1511-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9,
16eff. 6-7-23; 103-561, eff. 1-1-24; revised 3-15-24.)
 
17    (20 ILCS 655/13)
18    Sec. 13. Enterprise Zone construction jobs credit.
19    (a) Beginning on January 1, 2021, a business entity in a
20certified Enterprise Zone that makes a capital investment of
21at least $10,000,000 in an Enterprise Zone construction jobs
22project may receive an Enterprise Zone construction jobs
23credit against the tax imposed under subsections (a) and (b)
24of Section 201 of the Illinois Income Tax Act in an amount
25equal to 50% of the amount of the incremental income tax

 

 

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1attributable to Enterprise Zone construction jobs credit
2employees employed in the course of completing an Enterprise
3Zone construction jobs project. However, the Enterprise Zone
4construction jobs credit may equal 75% of the amount of the
5incremental income tax attributable to Enterprise Zone
6construction jobs credit employees if the project is located
7in an underserved area.
8    (b) A business entity seeking a credit under this Section
9must submit an application to the Department and must receive
10approval from the designating municipality or county and the
11Department for the Enterprise Zone construction jobs credit
12project. The application must describe the nature and benefit
13of the project to the certified Enterprise Zone and its
14potential contributors. The total aggregate amount of credits
15awarded under the Blue Collar Jobs Act (Article 20 of Public
16Act 101-9) shall not exceed $20,000,000 in any State fiscal
17year.
18    Within 45 days after receipt of an application, the
19Department shall give notice to the applicant as to whether
20the application has been approved or disapproved. If the
21Department disapproves the application, it shall specify the
22reasons for this decision and allow 60 days for the applicant
23to amend and resubmit its application. The Department shall
24provide assistance upon request to applicants. Resubmitted
25applications shall receive the Department's approval or
26disapproval within 30 days after the application is

 

 

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1resubmitted. Those resubmitted applications satisfying initial
2Department objectives shall be approved unless reasonable
3circumstances warrant disapproval.
4    On an annual basis, the designated zone organization shall
5furnish a statement to the Department on the programmatic and
6financial status of any approved project and an audited
7financial statement of the project.
8    The Department shall certify to the Department of Revenue
9the identity of taxpayers who are eligible for the credits and
10the amount of credits that are claimed pursuant to
11subparagraph (8) of subsection (f) of Section 201 the Illinois
12Income Tax Act.
13    The Enterprise Zone construction jobs credit project must
14be undertaken by the business entity in the course of
15completing a project that complies with the criteria contained
16in Section 4 of this Act and is undertaken in a certified
17Enterprise Zone. The Department shall adopt any necessary
18rules for the implementation of this subsection (b).
19    (c) (Blank). Any business entity that receives an
20Enterprise Zone construction jobs credit shall maintain a
21certified payroll pursuant to subsection (d) of this Section.
22    (d) Annually, until construction is completed, a company
23seeking Enterprise Zone construction job credits shall submit
24a report that, at a minimum, describes the projected project
25scope, timeline, and anticipated budget. Once the project has
26commenced, the annual report shall include actual data for the

 

 

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1prior year as well as projections for each additional year
2through completion of the project. The Department shall issue
3detailed reporting guidelines prescribing the requirements of
4construction-related reports.
5    In order to receive credit for construction expenses, the
6company must provide the Department with evidence that a
7certified third-party executed an Agreed-Upon Procedure (AUP)
8verifying the construction expenses or accept the standard
9construction wage expense estimated by the Department.
10    Upon review of the final project scope, timeline, budget,
11and AUP, the Department shall issue a tax credit certificate
12reflecting a percentage of the total construction job wages
13paid throughout the completion of the project.
14    Each contractor and subcontractor who is engaged in and is
15executing an Enterprise Zone construction jobs credit project
16for a business that is entitled to a credit pursuant to this
17Section shall:
18        (1) make and keep, for a period of 5 years from the
19    date of the last payment made on or after June 5, 2019 (the
20    effective date of Public Act 101-9) on a contract or
21    subcontract for an Enterprise Zone construction jobs
22    credit project, records for all laborers and other workers
23    employed by them on the project; the records shall
24    include:
25            (A) the worker's name;
26            (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 each day;
8            (H) the worker's starting and ending times of work
9        each day;
10            (I) the worker's hourly wage rate; and
11            (J) the worker's hourly overtime wage rate;
12        (2) no later than the 15th day of each calendar month,
13    provide a certified payroll for the immediately preceding
14    month to the taxpayer in charge of the project; within 5
15    business days after receiving the certified payroll, the
16    taxpayer shall file the certified payroll with the
17    Department of Labor and the Department of Commerce and
18    Economic Opportunity; a certified payroll must be filed
19    for only those calendar months during which construction
20    on an Enterprise Zone construction jobs project has
21    occurred; the certified payroll shall consist of a
22    complete copy of the records identified in paragraph (1)
23    of this subsection (d), but may exclude the starting and
24    ending times of work each day; the certified payroll shall
25    be accompanied by a statement signed by the contractor or
26    subcontractor or an officer, employee, or agent of the

 

 

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1    contractor or 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    Any contractor or subcontractor subject to this
13subsection, and any officer, employee, or agent of such
14contractor or subcontractor whose duty as an officer,
15employee, or agent it is to file a certified payroll under this
16subsection, who willfully fails to file such a certified
17payroll on or before the date such certified payroll is
18required by this paragraph to be filed and any person who
19willfully files a false certified payroll that is false as to
20any material fact is in violation of this Act and guilty of a
21Class A misdemeanor.
22    The taxpayer in charge of the project shall keep the
23records submitted in accordance with this subsection on or
24after June 5, 2019 (the effective date of Public Act 101-9) for
25a period of 5 years from the date of the last payment for work
26on a contract or subcontract for the project.

 

 

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1    The records submitted in accordance with this subsection
2shall be considered public records, except an employee's
3address, telephone number, and social security number, and
4made available in accordance with the Freedom of Information
5Act. The Department of Labor shall accept any reasonable
6submissions by the contractor that meet the requirements of
7this subsection and shall share the information with the
8Department in order to comply with the awarding of Enterprise
9Zone construction jobs credits. A contractor, subcontractor,
10or public body may retain records required under this Section
11in paper or electronic format.
12    Upon 7 business days' notice, the taxpayer contractor and
13each subcontractor shall make available to any State agency
14and to federal, State, or local law enforcement agencies and
15prosecutors for inspection and copying at a location within
16this State during reasonable hours, the report under this
17subsection (d) records identified in paragraph (1) of this
18subsection to the taxpayer in charge of the project, its
19officers and agents, the Director of Labor and his or her
20deputies and agents, and to federal, State, or local law
21enforcement agencies and prosecutors.
22    (e) As used in this Section:
23    "Enterprise Zone construction jobs credit" means an amount
24equal to 50% (or 75% if the project is located in an
25underserved area) of the incremental income tax attributable
26to Enterprise Zone construction jobs credit employees.

 

 

10300HB0817ham002- 34 -LRB103 04410 HLH 73800 a

1    "Enterprise Zone construction jobs credit employee" means
2a laborer or worker who is employed by a an Illinois contractor
3or subcontractor in the actual construction work on the site
4of an Enterprise Zone construction jobs credit project.
5    "Enterprise Zone construction jobs credit project" means
6building a structure or building or making improvements of any
7kind to real property commissioned and paid for by a business
8that has applied and been approved for an Enterprise Zone
9construction jobs credit pursuant to this Section. "Enterprise
10Zone construction jobs credit project" does not include the
11routine operation, routine repair, or routine maintenance of
12existing structures, buildings, or real property.
13    "Incremental income tax" means the total amount withheld
14during the taxable year from the compensation of Enterprise
15Zone construction jobs credit employees.
16    "Underserved area" means a geographic area that meets one
17or more of the following conditions:
18        (1) the area has a poverty rate of at least 20%
19    according to the latest American Community Survey;
20        (2) 35% or more of the families with children in the
21    area are living below 130% of the poverty line, according
22    to the latest American Community Survey;
23        (3) at least 20% of the households in the area receive
24    assistance under the Supplemental Nutrition Assistance
25    Program (SNAP); or
26        (4) the area has an average unemployment rate, as

 

 

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1    determined by the Illinois Department of Employment
2    Security, that is more than 120% of the national
3    unemployment average, as determined by the U.S. Department
4    of Labor, for a period of at least 2 consecutive calendar
5    years preceding the date of the application.
6(Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22;
7102-558, eff. 8-20-21.)
 
8    Section 15. The Reimagining Energy and Vehicles in
9Illinois Act is amended by changing Sections 10, 20, 35, 45,
1065, 95, and 105 as follows:
 
11    (20 ILCS 686/10)
12    Sec. 10. Definitions. As used in this Act:
13    "Advanced battery" means a battery that consists of a
14battery cell that can be integrated into a module, pack, or
15system to be used in energy storage applications, including a
16battery used in an electric vehicle or the electric grid.
17    "Advanced battery component" means a component of an
18advanced battery, including materials, enhancements,
19enclosures, anodes, cathodes, electrolytes, cells, and other
20associated technologies that comprise an advanced battery.
21    "Agreement" means the agreement between a taxpayer and the
22Department under the provisions of Section 45 of this Act.
23    "Applicant" means a taxpayer that (i) operates a business
24in Illinois or is planning to locate a business within the

 

 

10300HB0817ham002- 36 -LRB103 04410 HLH 73800 a

1State of Illinois and (ii) is engaged in interstate or
2intrastate commerce as an electric vehicle manufacturer, an
3electric vehicle component parts manufacturer, or an electric
4vehicle power supply equipment manufacturer. For applications
5for credits under this Act that are submitted on or after the
6effective date of this amendatory Act of the 102nd General
7Assembly, "applicant" also includes a taxpayer that (i)
8operates a business in Illinois or is planning to locate a
9business within the State of Illinois and (ii) is engaged in
10interstate or intrastate commerce as a renewable energy
11manufacturer. "Applicant" does not include a taxpayer who
12closes or substantially reduces by more than 50% operations at
13one location in the State and relocates substantially the same
14operation to another location in the State. This does not
15prohibit a Taxpayer from expanding its operations at another
16location in the State. 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 or county in which the business is located, or,
22in the case of a business located in an incorporated area of
23the county, within the county in which the business is
24located, after conferring with the chief elected official of
25the municipality or county and taking into consideration any
26evidence offered by the municipality or county regarding the

 

 

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1ability to accommodate expansion within the municipality or
2county.
3    "Battery raw materials" means the raw and processed form
4of a mineral, metal, chemical, or other material used in an
5advanced battery component.
6    "Battery raw materials refining service provider" means a
7business that operates a facility that filters, sifts, and
8treats battery raw materials for use in an advanced battery.
9    "Battery recycling and reuse manufacturer" means a
10manufacturer that is primarily engaged in the recovery,
11retrieval, processing, recycling, or recirculating of battery
12raw materials for new use in electric vehicle batteries.
13    "Capital improvements" means the purchase, renovation,
14rehabilitation, or construction of permanent tangible land,
15buildings, structures, equipment, and furnishings in an
16approved project sited in Illinois and expenditures for goods
17or services that are normally capitalized, including
18organizational costs and research and development costs
19incurred in Illinois. For land, buildings, structures, and
20equipment that are leased, the lease must equal or exceed the
21term of the agreement, and the cost of the property shall be
22determined from the present value, using the corporate
23interest rate prevailing at the time of the application, of
24the lease payments.
25    "Credit" means either a "REV Illinois Credit" or a "REV
26Construction Jobs Credit" agreed to between the Department and

 

 

10300HB0817ham002- 38 -LRB103 04410 HLH 73800 a

1applicant under this Act.
2    "Department" means the Department of Commerce and Economic
3Opportunity.
4    "Director" means the Director of Commerce and Economic
5Opportunity.
6    "Electric vehicle" means a vehicle that is exclusively
7powered by and refueled by electricity, including electricity
8generated through a hydrogen fuel cells or solar technology.
9"Electric vehicle", except when referencing aircraft with
10hybrid electric propulsion systems, does not include hybrid
11electric vehicles, electric bicycles, or extended-range
12electric vehicles that are also equipped with conventional
13fueled propulsion or auxiliary engines.
14    "Electric vehicle manufacturer" means a new or existing
15manufacturer that is primarily focused on reequipping,
16expanding, or establishing a manufacturing facility in
17Illinois that produces electric vehicles as defined in this
18Section.
19    "Electric vehicle component parts manufacturer" means a
20new or existing manufacturer that is focused on reequipping,
21expanding, or establishing a manufacturing facility in
22Illinois that produces parts or accessories used in electric
23vehicles, as defined by this Section, including advanced
24battery component parts. The changes to this definition of
25"electric vehicle component parts manufacturer" apply to
26agreements under this Act that are entered into on or after the

 

 

10300HB0817ham002- 39 -LRB103 04410 HLH 73800 a

1effective date of this amendatory Act of the 102nd General
2Assembly.
3    "Electric vehicle power supply equipment" means the
4equipment used specifically for the purpose of delivering
5electricity to an electric vehicle, including hydrogen fuel
6cells or solar refueling infrastructure.
7    "Electric vehicle power supply manufacturer" means a new
8or existing manufacturer that is focused on reequipping,
9expanding, or establishing a manufacturing facility in
10Illinois that produces electric vehicle power supply equipment
11used for the purpose of delivering electricity to an electric
12vehicle, including hydrogen fuel cell or solar refueling
13infrastructure.
14    "Electric vehicle powertrain technology" means equipment
15used to convert electricity for use in aerospace propulsion.
16    "Electric vehicle powertrain technology manufacturer"
17means a new or existing manufacturer that is focused on
18reequipping, expanding or establishing a manufacturing
19facility in Illinois that develops and validates electric
20vehicle powertrain technology for use in aerospace propulsion.
21    "Electric vertical takeoff and landing aircraft" or "eVTOL
22aircraft" means a fully electric aircraft that lands and takes
23off vertically.
24    "Energy Transition Area" means a county with less than
25100,000 people or a municipality that contains one or more of
26the following:

 

 

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1        (1) a fossil fuel plant that was retired from service
2    or has significant reduced service within 6 years before
3    the time of the application or will be retired or have
4    service significantly reduced within 6 years following the
5    time of the application; or
6        (2) a coal mine that was closed or had operations
7    significantly reduced within 6 years before the time of
8    the application or is anticipated to be closed or have
9    operations significantly reduced within 6 years following
10    the time of the application.
11    "Full-time employee" means an individual who is employed
12for consideration for at least 35 hours each week or who
13renders any other standard of service generally accepted by
14industry custom or practice as full-time employment. An
15individual for whom a W-2 is issued by a Professional Employer
16Organization (PEO) is a full-time employee if employed in the
17service of the applicant for consideration for at least 35
18hours each week.
19    "Green steel manufacturer" means an entity that
20manufactures steel without the use of fossil fuels and with
21zero net carbon emissions.
22    "Incremental income tax" means the total amount withheld
23during the taxable year from the compensation of new employees
24and, if applicable, retained employees under Article 7 of the
25Illinois Income Tax Act arising from employment at a project
26that is the subject of an agreement.

 

 

10300HB0817ham002- 41 -LRB103 04410 HLH 73800 a

1    "Institution of higher education" or "institution" means
2any accredited public or private university, college,
3community college, business, technical, or vocational school,
4or other accredited educational institution offering degrees
5and instruction beyond the secondary school level.
6    "Minority person" means a minority person as defined in
7the Business Enterprise for Minorities, Women, and Persons
8with Disabilities Act.
9    "New employee" means a newly-hired full-time employee
10employed to work at the project site and whose work is directly
11related to the project.
12    "Noncompliance date" means, in the case of a taxpayer that
13is not complying with the requirements of the agreement or the
14provisions of this Act, the day following the last date upon
15which the taxpayer was in compliance with the requirements of
16the agreement and the provisions of this Act, as determined by
17the Director, pursuant to Section 70.
18    "Pass-through entity" means an entity that is exempt from
19the tax under subsection (b) or (c) of Section 205 of the
20Illinois Income Tax Act.
21    "Placed in service" means the state or condition of
22readiness, availability for a specifically assigned function,
23and the facility is constructed and ready to conduct its
24facility operations to manufacture goods.
25    "Professional employer organization" (PEO) means an
26employee leasing company, as defined in Section 206.1 of the

 

 

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

 

 

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

 

 

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1resources are generated.
2    "Renewable energy manufacturer" means a manufacturer whose
3primary function is to manufacture or assemble: (i) equipment,
4systems, or products used to produce renewable or nuclear
5energy; (ii) products used for energy conservation, storage,
6or grid efficiency purposes; or (iii) component parts for that
7equipment or those systems or products.
8    "Renewable energy resources" has the meaning ascribed to
9that term in Section 1-10 of the Illinois Power Agency Act.
10    "Research and development" means work directed toward the
11innovation, introduction, and improvement of products and
12processes. "Research and development" includes all levels of
13research and development that directly result in the potential
14manufacturing and marketability of renewable energy, electric
15vehicles, electric vehicle component parts, and electric or
16hybrid aircraft.
17    "Retained employee" means a full-time employee employed by
18the taxpayer prior to the term of the Agreement who continues
19to be employed during the term of the agreement whose job
20duties are directly related to the project. The term "retained
21employee" does not include any individual who has a direct or
22an indirect ownership interest of at least 5% in the profits,
23equity, capital, or value of the taxpayer or a child,
24grandchild, parent, or spouse, other than a spouse who is
25legally separated from the individual, of any individual who
26has a direct or indirect ownership of at least 5% in the

 

 

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1profits, equity, capital, or value of the taxpayer. The
2changes to this definition of "retained employee" apply to
3agreements for credits under this Act that are entered into on
4or after the effective date of this amendatory Act of the 102nd
5General Assembly.
6    "REV Illinois credit" means a credit agreed to between the
7Department and the applicant under this Act that is based on
8the incremental income tax attributable to new employees and,
9if applicable, retained employees, and on training costs for
10such employees at the applicant's project.
11    "REV construction jobs credit" means a credit agreed to
12between the Department and the applicant under this Act that
13is based on the incremental income tax attributable to
14construction wages paid in connection with construction of the
15project facilities.
16    "Statewide baseline" means the total number of full-time
17employees of the applicant and any related member employed by
18such entities at the time of application for incentives under
19this Act.
20    "Taxpayer" means an individual, corporation, partnership,
21or other entity that has a legal obligation to pay Illinois
22income taxes and file an Illinois income tax return.
23    "Training costs" means costs incurred to upgrade the
24technological skills of full-time employees in Illinois and
25includes: curriculum development; training materials
26(including scrap product costs); trainee domestic travel

 

 

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1expenses; instructor costs (including wages, fringe benefits,
2tuition and domestic travel expenses); rent, purchase or lease
3of training equipment; and other usual and customary training
4costs. "Training costs" do not include costs associated with
5travel outside the United States (unless the Taxpayer receives
6prior written approval for the travel by the Director based on
7a showing of substantial need or other proof the training is
8not reasonably available within the United States), wages and
9fringe benefits of employees during periods of training, or
10administrative cost related to full-time employees of the
11taxpayer.
12    "Underserved area" means any geographic area areas as
13defined in Section 5-5 of the Economic Development for a
14Growing Economy Tax Credit Act.
15(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
16102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23.)
 
17    (20 ILCS 686/20)
18    Sec. 20. REV Illinois Program; project applications.
19    (a) The Reimagining Energy and Vehicles in Illinois (REV
20Illinois) Program is hereby established and shall be
21administered by the Department. The Program will provide
22financial incentives to any one or more of the following: (1)
23eligible manufacturers of electric vehicles, electric vehicle
24component parts, and electric vehicle power supply equipment;
25(2) battery recycling and reuse manufacturers; (3) battery raw

 

 

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1materials refining service providers; or (4) renewable energy
2manufacturers.
3    (b) Any taxpayer planning a project to be located in
4Illinois may request consideration for designation of its
5project as a REV Illinois Project, by formal written letter of
6request or by formal application to the Department, in which
7the applicant states its intent to make at least a specified
8level of investment and intends to hire a specified number of
9full-time employees at a designated location in Illinois. As
10circumstances require, the Department shall require a formal
11application from an applicant and a formal letter of request
12for assistance.
13    (c) In order to qualify for credits under the REV Illinois
14Program, an applicant must:
15        (1) if the applicant is an electric vehicle
16    manufacturer:
17            (A) make an investment of at least $1,500,000,000
18        in capital improvements at the project site;
19            (B) to be placed in service within the State
20        within a 60-month period after approval of the
21        application; and
22            (C) create at least 500 new full-time employee
23        jobs; or
24        (2) if the applicant is an electric vehicle component
25    parts manufacturer, or a renewable energy manufacturer, a
26    green steel manufacturer, or an entity engaged in

 

 

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1    research, development, or manufacturing of eVTOL aircraft
2    or hybrid-electric or fully electric propulsion systems
3    for airliners:
4            (A) make an investment of at least $300,000,000 in
5        capital improvements at the project site;
6            (B) manufacture one or more parts that are
7        primarily used for electric vehicle, renewable energy,
8        or green steel manufacturing;
9            (C) to be placed in service within the State
10        within a 60-month period after approval of the
11        application; and
12            (D) create at least 150 new full-time employee
13        jobs; or
14        (3) if the agreement is entered into before the
15    effective date of this amendatory Act of the 102nd General
16    Assembly and the applicant is an electric vehicle
17    manufacturer, an electric vehicle power supply equipment
18    manufacturer, an electric vehicle component part
19    manufacturer, renewable energy manufacturer, or green
20    steel manufacturer that does not qualify under paragraph
21    (2) above, a battery recycling and reuse manufacturer, or
22    a battery raw materials refining service provider:
23            (A) make an investment of at least $20,000,000 in
24        capital improvements at the project site;
25            (B) for electric vehicle component part
26        manufacturers, manufacture one or more parts that are

 

 

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1        primarily used for electric vehicle manufacturing;
2            (C) to be placed in service within the State
3        within a 48-month period after approval of the
4        application; and
5            (D) create at least 50 new full-time employee
6        jobs; or
7        (3.1) if the agreement is entered into on or after 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, a renewable energy manufacturer, a green
13    steel manufacturer, or an entity engaged in research,
14    development, or manufacturing of eVTOL aircraft or
15    hybrid-electric or fully electric propulsion systems for
16    airliners that does not qualify under paragraph (2) above,
17    a renewable energy manufacturer that does not qualify
18    under paragraph (2) above, a battery recycling and reuse
19    manufacturer, or a battery raw materials refining service
20    provider:
21            (A) make an investment of at least $2,500,000 in
22        capital improvements at the project site;
23            (B) in the case of electric vehicle component part
24        manufacturers, manufacture one or more parts that are
25        used for electric vehicle manufacturing;
26            (C) to be placed in service within the State

 

 

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

 

 

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1        (4.1) if the agreement is entered into on or after the
2    effective date of this amendatory Act of the 102nd General
3    Assembly and the applicant (i) is an electric vehicle
4    manufacturer, an electric vehicle component parts
5    manufacturer, or a renewable energy manufacturer, a green
6    steel manufacturer, or an entity engaged in research,
7    development, or manufacturing of eVTOL aircraft or hybrid
8    electric or fully electric propulsion systems for
9    airliners and (ii) has existing operations within Illinois
10    that the applicant intends to convert or expand, in whole
11    or in part, from traditional manufacturing to electric
12    vehicle manufacturing, electric vehicle component parts
13    manufacturing, renewable energy manufacturing, or electric
14    vehicle power supply equipment manufacturing:
15            (A) make an investment of at least $100,000,000 in
16        capital improvements at the project site;
17            (B) to be placed in service within the State
18        within a 60-month period after approval of the
19        application; and
20            (C) create the lesser of 50 new full-time employee
21        jobs or new full-time employee jobs equivalent to 10%
22        of the Statewide baseline applicable to the taxpayer
23        and any related member at the time of application; or
24        (5) if the agreement is entered into on or after the
25    effective date of the changes made to this Section by this
26    amendatory Act of the 103rd General Assembly and before

 

 

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1    June 1, 2024 and the applicant (i) is an electric vehicle
2    manufacturer, an electric vehicle component parts
3    manufacturer, or a renewable energy manufacturer or (ii)
4    has existing operations within Illinois that the applicant
5    intends to convert or expand, in whole or in part, from
6    traditional manufacturing to electric vehicle
7    manufacturing, electric vehicle component parts
8    manufacturing, renewable energy manufacturing, or electric
9    vehicle power supply equipment manufacturing:
10            (A) make an investment of at least $500,000,000 in
11        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) retain at least 800 full-time employee jobs at
16        the project.
17    (d) For agreements entered into prior to April 19, 2022
18(the effective date of Public Act 102-700), for any applicant
19creating the full-time employee jobs noted in subsection (c),
20those jobs must have a total compensation equal to or greater
21than 120% of the average wage paid to full-time employees in
22the county where the project is located, as determined by the
23U.S. Bureau of Labor Statistics. For agreements entered into
24on or after April 19, 2022 (the effective date of Public Act
25102-700), for any applicant creating the full-time employee
26jobs noted in subsection (c), those jobs must have a

 

 

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

 

 

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

 

 

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1agreement under this Act with respect to a single address or
2location for the same period of time for which the taxpayer
3currently holds an active agreement under the Economic
4Development for a Growing Economy Tax Credit Act. This
5provision does not preclude the applicant from entering into
6an additional agreement after the expiration or voluntary
7termination of an earlier agreement under this Act or under
8the Economic Development for a Growing Economy Tax Credit Act
9to the extent that the taxpayer's application otherwise
10satisfies the terms and conditions of this Act and is approved
11by the Department. An applicant with an existing agreement
12under the Economic Development for a Growing Economy Tax
13Credit Act may submit an application for an agreement under
14this Act after it terminates any existing agreement under the
15Economic Development for a Growing Economy Tax Credit Act with
16respect to the same address or location. If a project that is
17subject to an existing agreement under the Economic
18Development for a Growing Economy Tax Credit Act meets the
19requirements to be designated as a REV Illinois project under
20this Act, including for actions undertaken prior to the
21effective date of this Act, the taxpayer that is subject to
22that existing agreement under the Economic Development for a
23Growing Economy Tax Credit Act may apply to the Department to
24amend the agreement to allow the project to become a
25designated REV Illinois project. Following the amendment, time
26accrued during which the project was eligible for credits

 

 

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1under the existing agreement under the Economic Development
2for a Growing Economy Tax Credit Act shall count toward the
3duration of the credit subject to limitations described in
4Section 40 of this Act.
5    (i) If, at any time following the designation of a project
6as a REV Illinois Project by the Department and prior to the
7termination or expiration of an agreement under this Act, the
8project ceases to qualify as a REV Illinois project because
9the taxpayer is no longer an electric vehicle manufacturer, an
10electric vehicle component manufacturer, an electric vehicle
11power supply equipment manufacturer, a battery recycling and
12reuse manufacturer, or a battery raw materials refining
13service provider, or an entity engaged in eVTOL or hybrid
14electric or fully electric propulsion systems for airliners
15research, development, or manufacturing, that project may
16receive tax credit awards as described in Section 5-15 and
17Section 5-51 of the Economic Development for a Growing Economy
18Tax Credit Act, as long as the project continues to meet
19requirements to obtain those credits as described in the
20Economic Development for a Growing Economy Tax Credit Act and
21remains compliant with terms contained in the Agreement under
22this Act not related to their status as an electric vehicle
23manufacturer, an electric vehicle component manufacturer, an
24electric vehicle power supply equipment manufacturer, a
25battery recycling and reuse manufacturer, or a battery raw
26materials refining service provider, or an entity engaged in

 

 

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1eVTOL or hybrid-electric or fully electric propulsion systems
2for airliners research, development, or manufacturing. Time
3accrued during which the project was eligible for credits
4under an agreement under this Act shall count toward the
5duration of the credit subject to limitations described in
6Section 5-45 of the Economic Development for a Growing Economy
7Tax 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; 103-9, eff.
106-7-23.)
 
11    (20 ILCS 686/35)
12    Sec. 35. Relocation of jobs in Illinois. A taxpayer is not
13entitled to claim a credit provided by this Act with respect to
14any jobs that the Taxpayer relocates from one site in Illinois
15to another site in Illinois unless the taxpayer has agreed to
16hire the minimum number of new employees and the Department
17has determined that the expansion cannot reasonably be
18accommodated within the municipality in which the business is
19located. Any full-time employee relocated to Illinois in
20connection with a qualifying project is deemed to be a new
21employee for purposes of this Act. Determinations under this
22Section shall be made by the Department.
23(Source: P.A. 102-669, eff. 11-16-21.)
 
24    (20 ILCS 686/45)

 

 

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1    Sec. 45. Contents of agreements with applicants.
2    (a) The Department shall enter into an agreement with an
3applicant that is awarded a credit under this Act. The
4agreement shall include all of the following:
5        (1) A detailed description of the project that is the
6    subject of the agreement, including the location and
7    amount of the investment and jobs created or retained.
8        (2) The duration of the credit, the first taxable year
9    for which the credit may be awarded, and the first taxable
10    year in which the credit may be used by the taxpayer.
11        (3) The credit amount that will be allowed for each
12    taxable year.
13        (4) For a project qualified under paragraphs (1), (2),
14    (4), or (5) of subsection (c) of Section 20, a requirement
15    that the taxpayer shall maintain operations at the project
16    location a minimum number of years not to exceed 15. For a
17    project qualified under paragraph (3) of subsection (c) of
18    Section 20, a requirement that the taxpayer shall maintain
19    operations at the project location a minimum number of
20    years not to exceed 10.
21        (5) A specific method for determining the number of
22    new employees and if applicable, retained employees,
23    employed during a taxable year.
24        (6) A requirement that the taxpayer shall annually
25    report to the Department the number of new employees, the
26    incremental income tax withheld in connection with the new

 

 

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1    employees, and any other information the Department deems
2    necessary and appropriate to perform its duties under this
3    Act.
4        (7) A requirement that the Director is authorized to
5    verify with the appropriate State agencies the amounts
6    reported under paragraph (6), and after doing so shall
7    issue a certificate to the taxpayer stating that the
8    amounts have been verified.
9        (8) A requirement that the taxpayer shall provide
10    written notification to the Director not more than 30 days
11    after the taxpayer makes or receives a proposal that would
12    transfer the taxpayer's State tax liability obligations to
13    a successor taxpayer.
14        (9) A detailed description of the number of new
15    employees to be hired, and the occupation and payroll of
16    full-time jobs to be created or retained because of the
17    project.
18        (10) The minimum investment the taxpayer will make in
19    capital improvements, the time period for placing the
20    property in service, and the designated location in
21    Illinois for the investment.
22        (11) A requirement that the taxpayer shall provide
23    written notification to the Director and the Director's
24    designee not more than 30 days after the taxpayer
25    determines that the minimum job creation or retention,
26    employment payroll, or investment no longer is or will be

 

 

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1    achieved or maintained as set forth in the terms and
2    conditions of the agreement. Additionally, the
3    notification should outline to the Department the number
4    of layoffs, date of the layoffs, and detail taxpayer's
5    efforts to provide career and training counseling for the
6    impacted workers with industry-related certifications and
7    trainings.
8        (12) If applicable, a provision that, if the total
9    number of new employees falls below a specified level, the
10    allowance of credit shall be suspended until the number of
11    new employees equals or exceeds the agreement amount.
12        (13) If applicable, a provision that specifies the
13    statewide baseline at the time of application for retained
14    employees. The agreement must have a provision addressing
15    if the total number of retained employees falls below the
16    lesser of the statewide baseline or the retention
17    requirements specified in the agreement, the allowance of
18    the credit shall be suspended until the number of retained
19    employees equals or exceeds the agreement amount.
20        (14) A detailed description of the items for which the
21    costs incurred by the Taxpayer will be included in the
22    limitation on the Credit provided in Section 40.
23        (15) If the agreement is entered into before the
24    effective date of the changes made to this Section by this
25    amendatory Act of the 103rd General Assembly, a provision
26    stating that if the taxpayer fails to meet either the

 

 

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1    investment or job creation and retention requirements
2    specified in the agreement during the entire 5-year period
3    beginning on the first day of the first taxable year in
4    which the agreement is executed and ending on the last day
5    of the fifth taxable year after the agreement is executed,
6    then the agreement is automatically terminated on the last
7    day of the fifth taxable year after the agreement is
8    executed, and the taxpayer is not entitled to the award of
9    any credits for any of that 5-year period. If the
10    agreement is entered into on or after the effective date
11    of the changes made to this Section by this amendatory Act
12    of the 103rd General Assembly, a provision stating that if
13    the taxpayer fails to meet either the investment or job
14    creation and retention requirements specified in the
15    agreement during the entire 10-year period beginning on
16    the effective date of the agreement and ending 10 years
17    after the effective date of the agreement, then the
18    agreement is automatically terminated, and the taxpayer is
19    not entitled to the award of any credits for any of that
20    10-year period.
21        (16) A provision stating that if the taxpayer ceases
22    principal operations with the intent to permanently shut
23    down the project in the State during the term of the
24    Agreement, then the entire credit amount awarded to the
25    taxpayer prior to the date the taxpayer ceases principal
26    operations shall be returned to the Department and shall

 

 

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1    be reallocated to the local workforce investment area in
2    which the project was located.
3        (17) A provision stating that the Taxpayer must
4    provide the reports outlined in Sections 50 and 55 on or
5    before April 15 each year.
6        (18) A provision requiring the taxpayer to report
7    annually its contractual obligations or otherwise with a
8    recycling facility for its operations.
9        (19) Any other performance conditions or contract
10    provisions the Department determines are necessary or
11    appropriate.
12        (20) Each taxpayer under paragraph (1) of subsection
13    (c) of Section 20 above shall maintain labor neutrality
14    toward any union organizing campaign for any employees of
15    the taxpayer assigned to work on the premises of the REV
16    Illinois Project Site. This paragraph shall not apply to
17    an electric vehicle manufacturer, electric vehicle
18    component part manufacturer, electric vehicle power supply
19    manufacturer, or renewable energy manufacturer, or any
20    joint venture including an electric vehicle manufacturer,
21    electric vehicle component part manufacturer, electric
22    vehicle power supply manufacturer, or renewable energy
23    manufacturer, or an entity engaged in eVTOL or
24    hybrid-electric or fully electric propulsion systems for
25    airliners research, development, or manufacturing, who is
26    subject to collective bargaining agreement entered into

 

 

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1    prior to the taxpayer filing an application pursuant to
2    this Act.
3    (b) The Department shall post on its website the terms of
4each agreement entered into under this Act. Such information
5shall be posted within 10 days after entering into the
6agreement and must include the following:
7        (1) the name of the taxpayer;
8        (2) the location of the project;
9        (3) the estimated value of the credit;
10        (4) the number of new employee jobs and, if
11    applicable, number of retained employee jobs at the
12    project; and
13        (5) whether or not the project is in an underserved
14    area or energy transition area.
15(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23;
16103-9, eff. 6-7-23.)
 
17    (20 ILCS 686/65)
18    Sec. 65. REV Construction Jobs Credits Certified payroll.
19    (a) Each REV program participant contractor and
20subcontractor that is engaged in construction work on project
21facilities for a taxpayer who seeks to apply for a REV
22Construction Jobs credit shall annually, until construction is
23completed, submit a report that, at a minimum, describes the
24projected project scope, timeline, and anticipated budget.
25Once the project has commenced, the annual report shall

 

 

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1include actual data for the prior year as well as projections
2for each additional year through completion of the project.
3The Department shall issue detailed reporting guidelines
4prescribing the requirements of construction related reports. :
5    In order to receive credit for construction expenses, the
6company must provide the Department with evidence that a
7certified third-party executed an Agreed-Upon Procedure (AUP)
8verifying the construction expenses or accept the standard
9construction wage expense estimated by the Department.
10    Upon review of the final project scope, timeline, budget,
11and AUP, the Department shall issue a tax credit certificate
12reflecting a percentage of the total construction job wages
13paid throughout the completion of the project.
14        (1) make and keep, for a period of 5 years from the
15    date of the last payment made on a contract or subcontract
16    for construction of facilities for a REV Illinois Project
17    pursuant to an agreement, records of all laborers and
18    other workers employed by the contractor or subcontractor
19    on the project; the records shall include:
20            (A) the worker's name;
21            (B) the worker's address;
22            (C) the worker's telephone number, if available;
23            (D) the worker's social security number;
24            (E) the worker's classification or
25        classifications;
26            (F) the worker's gross and net wages paid in each

 

 

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

 

 

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

 

 

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1publicly available in accordance with the Freedom of
2Information Act. The contractor or subcontractor shall submit
3reports to the Department of Labor electronically that meet
4the requirements of this subsection and shall share the
5information with the Department to comply with the awarding of
6the REV Construction Jobs Credit. A contractor, subcontractor,
7or public body may retain records required under this Section
8in paper or electronic format.
9    (e) Upon 7 business days' notice, the taxpayer contractor
10and each subcontractor shall make available to any State
11agency and to federal, State, or local law enforcement
12agencies and prosecutors for inspection and copying at a
13location within this State during reasonable hours, the report
14described in subsection (a) records identified in paragraph
15(1) of this subsection to the Taxpayer in charge of the
16Project, its officers and agents, the Director of the
17Department of Labor and his/her deputies and agents, and to
18federal, State, or local law enforcement agencies and
19prosecutors.
20(Source: P.A. 102-669, eff. 11-16-21.)
 
21    (20 ILCS 686/95)
22    Sec. 95. Utility tax exemptions for REV Illinois Project
23sites. The Department may certify a taxpayer with a REV
24Illinois credit for a Project that meets the qualifications
25under Section paragraphs (1), (2), and (4), (4.1), or (5) of

 

 

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1subsection (c) of Section 20, subject to an agreement under
2this Act for an exemption from the tax imposed at the project
3site by Section 2-4 of the Electricity Excise Tax Law. To
4receive such certification, the taxpayer must be registered to
5self-assess that tax. The taxpayer is also exempt from any
6additional charges added to the taxpayer's utility bills at
7the project site as a pass-on of State utility taxes under
8Section 9-222 of the Public Utilities Act. The taxpayer must
9meet any other the criteria for certification set by the
10Department.
11    The Department shall determine the period during which the
12exemption from the Electricity Excise Tax Law and the charges
13imposed under Section 9-222 of the Public Utilities Act are in
14effect, which shall not exceed 30 10 years from the date of the
15taxpayer's initial receipt of certification from the
16Department under this Section.
17    The Department is authorized to adopt rules to carry out
18the provisions of this Section, including procedures to apply
19for the exemptions; to define the amounts and types of
20eligible investments that an applicant must make in order to
21receive electricity excise tax exemptions or exemptions from
22the additional charges imposed under Section 9-222 and the
23Public Utilities Act; to approve such electricity excise tax
24exemptions for applicants whose investments are not yet placed
25in service; and to require that an applicant granted an
26electricity excise tax exemption or an exemption from

 

 

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1additional charges under Section 9-222 of the Public Utilities
2Act repay the exempted amount if the Applicant fails to comply
3with the terms and conditions of the agreement.
4    Upon certification by the Department under this Section,
5the Department shall notify the Department of Revenue of the
6certification. The Department of Revenue shall notify the
7public utilities of the exempt status of any taxpayer
8certified for exemption under this Act from the electricity
9excise tax or pass-on charges. The exemption status shall take
10effect within 3 months after certification of the taxpayer and
11notice to the Department of Revenue by the Department.
12(Source: P.A. 102-669, eff. 11-16-21.)
 
13    (20 ILCS 686/105)
14    Sec. 105. Building materials exemptions for REV Illinois
15Project sites.
16    (a) The Department may certify a Taxpayer with a REV
17Illinois Project that meets the qualifications under
18paragraphs (1), (2), or (4), (4.1), or (5) of subsection (c) of
19Section 20, subject to an agreement under this Act, for an
20exemption from any State or local use tax or retailers'
21occupation tax on building materials for the construction of
22its project facilities. The taxpayer must meet any criteria
23for certification set by the Department under this Act.
24    The Department shall determine the period during which the
25exemption from State and local use tax and retailers'

 

 

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1occupation tax are in effect, but in no event shall exceed 5
2years in accordance with Section 5m of the Retailers'
3Occupation Tax Act.
4    The Department is authorized to promulgate rules and
5regulations to carry out the provisions of this Section,
6including procedures to apply for the exemption; to define the
7amounts and types of eligible investments that an applicant
8must make in order to receive tax exemption; to approve such
9tax exemption for an applicant whose investments are not yet
10placed in service; and to require that an applicant granted
11exemption repay the exempted amount if the applicant fails to
12comply with the terms and conditions of the agreement with the
13Department.
14    Upon certification by the Department under this Section,
15the Department shall notify the Department of Revenue of the
16certification. The exemption status shall take effect within 3
17months after certification of the taxpayer and notice to the
18Department of Revenue by the Department.
19(Source: P.A. 102-669, eff. 11-16-21.)
 
20    Section 20. The Illinois Income Tax Act is amended by
21changing Section 201 and by adding Section 241 as follows:
 
22    (35 ILCS 5/201)
23    Sec. 201. Tax imposed.
24    (a) In general. A tax measured by net income is hereby

 

 

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1imposed on every individual, corporation, trust and estate for
2each taxable year ending after July 31, 1969 on the privilege
3of earning or receiving income in or as a resident of this
4State. Such tax shall be in addition to all other occupation or
5privilege taxes imposed by this State or by any municipal
6corporation or political subdivision thereof.
7    (b) Rates. The tax imposed by subsection (a) of this
8Section shall be determined as follows, except as adjusted by
9subsection (d-1):
10        (1) In the case of an individual, trust or estate, for
11    taxable years ending prior to July 1, 1989, an amount
12    equal to 2 1/2% of the taxpayer's net income for the
13    taxable year.
14        (2) In the case of an individual, trust or estate, for
15    taxable years beginning prior to July 1, 1989 and ending
16    after June 30, 1989, an amount equal to the sum of (i) 2
17    1/2% of the taxpayer's net income for the period prior to
18    July 1, 1989, as calculated under Section 202.3, and (ii)
19    3% of the taxpayer's net income for the period after June
20    30, 1989, as calculated under Section 202.3.
21        (3) In the case of an individual, trust or estate, for
22    taxable years beginning after June 30, 1989, and ending
23    prior to January 1, 2011, an amount equal to 3% of the
24    taxpayer's net income for the taxable year.
25        (4) In the case of an individual, trust, or estate,
26    for taxable years beginning prior to January 1, 2011, and

 

 

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1    ending after December 31, 2010, an amount equal to the sum
2    of (i) 3% of the taxpayer's net income for the period prior
3    to January 1, 2011, as calculated under Section 202.5, and
4    (ii) 5% of the taxpayer's net income for the period after
5    December 31, 2010, as calculated under Section 202.5.
6        (5) In the case of an individual, trust, or estate,
7    for taxable years beginning on or after January 1, 2011,
8    and ending prior to January 1, 2015, an amount equal to 5%
9    of the taxpayer's net income for the taxable year.
10        (5.1) In the case of an individual, trust, or estate,
11    for taxable years beginning prior to January 1, 2015, and
12    ending after December 31, 2014, an amount equal to the sum
13    of (i) 5% of the taxpayer's net income for the period prior
14    to January 1, 2015, as calculated under Section 202.5, and
15    (ii) 3.75% of the taxpayer's net income for the period
16    after December 31, 2014, as calculated under Section
17    202.5.
18        (5.2) In the case of an individual, trust, or estate,
19    for taxable years beginning on or after January 1, 2015,
20    and ending prior to July 1, 2017, an amount equal to 3.75%
21    of the taxpayer's net income for the taxable year.
22        (5.3) In the case of an individual, trust, or estate,
23    for taxable years beginning prior to July 1, 2017, and
24    ending after June 30, 2017, an amount equal to the sum of
25    (i) 3.75% of the taxpayer's net income for the period
26    prior to July 1, 2017, as calculated under Section 202.5,

 

 

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1    and (ii) 4.95% of the taxpayer's net income for the period
2    after June 30, 2017, as calculated under Section 202.5.
3        (5.4) In the case of an individual, trust, or estate,
4    for taxable years beginning on or after July 1, 2017, an
5    amount equal to 4.95% of the taxpayer's net income for the
6    taxable year.
7        (6) In the case of a corporation, for taxable years
8    ending prior to July 1, 1989, an amount equal to 4% of the
9    taxpayer's net income for the taxable year.
10        (7) In the case of a corporation, for taxable years
11    beginning prior to July 1, 1989 and ending after June 30,
12    1989, an amount equal to the sum of (i) 4% of the
13    taxpayer's net income for the period prior to July 1,
14    1989, as calculated under Section 202.3, and (ii) 4.8% of
15    the taxpayer's net income for the period after June 30,
16    1989, as calculated under Section 202.3.
17        (8) In the case of a corporation, for taxable years
18    beginning after June 30, 1989, and ending prior to January
19    1, 2011, an amount equal to 4.8% of the taxpayer's net
20    income for the taxable year.
21        (9) In the case of a corporation, for taxable years
22    beginning prior to January 1, 2011, and ending after
23    December 31, 2010, an amount equal to the sum of (i) 4.8%
24    of the taxpayer's net income for the period prior to
25    January 1, 2011, as calculated under Section 202.5, and
26    (ii) 7% of the taxpayer's net income for the period after

 

 

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1    December 31, 2010, as calculated under Section 202.5.
2        (10) In the case of a corporation, for taxable years
3    beginning on or after January 1, 2011, and ending prior to
4    January 1, 2015, an amount equal to 7% of the taxpayer's
5    net income for the taxable year.
6        (11) In the case of a corporation, for taxable years
7    beginning prior to January 1, 2015, and ending after
8    December 31, 2014, an amount equal to the sum of (i) 7% of
9    the taxpayer's net income for the period prior to January
10    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
11    of the taxpayer's net income for the period after December
12    31, 2014, as calculated under Section 202.5.
13        (12) In the case of a corporation, for taxable years
14    beginning on or after January 1, 2015, and ending prior to
15    July 1, 2017, an amount equal to 5.25% of the taxpayer's
16    net income for the taxable year.
17        (13) In the case of a corporation, for taxable years
18    beginning prior to July 1, 2017, and ending after June 30,
19    2017, an amount equal to the sum of (i) 5.25% of the
20    taxpayer's net income for the period prior to July 1,
21    2017, as calculated under Section 202.5, and (ii) 7% of
22    the taxpayer's net income for the period after June 30,
23    2017, as calculated under Section 202.5.
24        (14) In the case of a corporation, for taxable years
25    beginning on or after July 1, 2017, an amount equal to 7%
26    of the taxpayer's net income for the taxable year.

 

 

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1    The rates under this subsection (b) are subject to the
2provisions of Section 201.5.
3    (b-5) Surcharge; sale or exchange of assets, properties,
4and intangibles of organization gaming licensees. For each of
5taxable years 2019 through 2027, a surcharge is imposed on all
6taxpayers on income arising from the sale or exchange of
7capital assets, depreciable business property, real property
8used in the trade or business, and Section 197 intangibles (i)
9of an organization licensee under the Illinois Horse Racing
10Act of 1975 and (ii) of an organization gaming licensee under
11the Illinois Gambling Act. The amount of the surcharge is
12equal to the amount of federal income tax liability for the
13taxable year attributable to those sales and exchanges. The
14surcharge imposed shall not apply if:
15        (1) the organization gaming license, organization
16    license, or racetrack property is transferred as a result
17    of any of the following:
18            (A) bankruptcy, a receivership, or a debt
19        adjustment initiated by or against the initial
20        licensee or the substantial owners of the initial
21        licensee;
22            (B) cancellation, revocation, or termination of
23        any such license by the Illinois Gaming Board or the
24        Illinois Racing Board;
25            (C) a determination by the Illinois Gaming Board
26        that transfer of the license is in the best interests

 

 

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1        of Illinois gaming;
2            (D) the death of an owner of the equity interest in
3        a licensee;
4            (E) the acquisition of a controlling interest in
5        the stock or substantially all of the assets of a
6        publicly traded company;
7            (F) a transfer by a parent company to a wholly
8        owned subsidiary; or
9            (G) the transfer or sale to or by one person to
10        another person where both persons were initial owners
11        of the license when the license was issued; or
12        (2) the controlling interest in the organization
13    gaming license, organization license, or racetrack
14    property is transferred in a transaction to lineal
15    descendants in which no gain or loss is recognized or as a
16    result of a transaction in accordance with Section 351 of
17    the Internal Revenue Code in which no gain or loss is
18    recognized; or
19        (3) live horse racing was not conducted in 2010 at a
20    racetrack located within 3 miles of the Mississippi River
21    under a license issued pursuant to the Illinois Horse
22    Racing Act of 1975.
23    The transfer of an organization gaming license,
24organization license, or racetrack property by a person other
25than the initial licensee to receive the organization gaming
26license is not subject to a surcharge. The Department shall

 

 

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1adopt rules necessary to implement and administer this
2subsection.
3    (c) Personal Property Tax Replacement Income Tax.
4Beginning on July 1, 1979 and thereafter, in addition to such
5income tax, there is also hereby imposed the Personal Property
6Tax Replacement Income Tax measured by net income on every
7corporation (including Subchapter S corporations), partnership
8and trust, for each taxable year ending after June 30, 1979.
9Such taxes are imposed on the privilege of earning or
10receiving income in or as a resident of this State. The
11Personal Property Tax Replacement Income Tax shall be in
12addition to the income tax imposed by subsections (a) and (b)
13of this Section and in addition to all other occupation or
14privilege taxes imposed by this State or by any municipal
15corporation or political subdivision thereof.
16    (d) Additional Personal Property Tax Replacement Income
17Tax Rates. The personal property tax replacement income tax
18imposed by this subsection and subsection (c) of this Section
19in the case of a corporation, other than a Subchapter S
20corporation and except as adjusted by subsection (d-1), shall
21be an additional amount equal to 2.85% of such taxpayer's net
22income for the taxable year, except that beginning on January
231, 1981, and thereafter, the rate of 2.85% specified in this
24subsection shall be reduced to 2.5%, and in the case of a
25partnership, trust or a Subchapter S corporation shall be an
26additional amount equal to 1.5% of such taxpayer's net income

 

 

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1for the taxable year.
2    (d-1) Rate reduction for certain foreign insurers. In the
3case of a foreign insurer, as defined by Section 35A-5 of the
4Illinois Insurance Code, whose state or country of domicile
5imposes on insurers domiciled in Illinois a retaliatory tax
6(excluding any insurer whose premiums from reinsurance assumed
7are 50% or more of its total insurance premiums as determined
8under paragraph (2) of subsection (b) of Section 304, except
9that for purposes of this determination premiums from
10reinsurance do not include premiums from inter-affiliate
11reinsurance arrangements), beginning with taxable years ending
12on or after December 31, 1999, the sum of the rates of tax
13imposed by subsections (b) and (d) shall be reduced (but not
14increased) to the rate at which the total amount of tax imposed
15under this Act, net of all credits allowed under this Act,
16shall equal (i) the total amount of tax that would be imposed
17on the foreign insurer's net income allocable to Illinois for
18the taxable year by such foreign insurer's state or country of
19domicile if that net income were subject to all income taxes
20and taxes measured by net income imposed by such foreign
21insurer's state or country of domicile, net of all credits
22allowed or (ii) a rate of zero if no such tax is imposed on
23such income by the foreign insurer's state of domicile. For
24the purposes of this subsection (d-1), an inter-affiliate
25includes a mutual insurer under common management.
26        (1) For the purposes of subsection (d-1), in no event

 

 

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1    shall the sum of the rates of tax imposed by subsections
2    (b) and (d) be reduced below the rate at which the sum of:
3            (A) the total amount of tax imposed on such
4        foreign insurer under this Act for a taxable year, net
5        of all credits allowed under this Act, plus
6            (B) the privilege tax imposed by Section 409 of
7        the Illinois Insurance Code, the fire insurance
8        company tax imposed by Section 12 of the Fire
9        Investigation Act, and the fire department taxes
10        imposed under Section 11-10-1 of the Illinois
11        Municipal Code,
12    equals 1.25% for taxable years ending prior to December
13    31, 2003, or 1.75% for taxable years ending on or after
14    December 31, 2003, of the net taxable premiums written for
15    the taxable year, as described by subsection (1) of
16    Section 409 of the Illinois Insurance Code. This paragraph
17    will in no event increase the rates imposed under
18    subsections (b) and (d).
19        (2) Any reduction in the rates of tax imposed by this
20    subsection shall be applied first against the rates
21    imposed by subsection (b) and only after the tax imposed
22    by subsection (a) net of all credits allowed under this
23    Section other than the credit allowed under subsection (i)
24    has been reduced to zero, against the rates imposed by
25    subsection (d).
26    This subsection (d-1) is exempt from the provisions of

 

 

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1Section 250.
2    (e) Investment credit. A taxpayer shall be allowed a
3credit against the Personal Property Tax Replacement Income
4Tax for investment in qualified property.
5        (1) A taxpayer shall be allowed a credit equal to .5%
6    of the basis of qualified property placed in service
7    during the taxable year, provided such property is placed
8    in service on or after July 1, 1984. There shall be allowed
9    an additional credit equal to .5% of the basis of
10    qualified property placed in service during the taxable
11    year, provided such property is placed in service on or
12    after July 1, 1986, and the taxpayer's base employment
13    within Illinois has increased by 1% or more over the
14    preceding year as determined by the taxpayer's employment
15    records filed with the Illinois Department of Employment
16    Security. Taxpayers who are new to Illinois shall be
17    deemed to have met the 1% growth in base employment for the
18    first year in which they file employment records with the
19    Illinois Department of Employment Security. The provisions
20    added to this Section by Public Act 85-1200 (and restored
21    by Public Act 87-895) shall be construed as declaratory of
22    existing law and not as a new enactment. If, in any year,
23    the increase in base employment within Illinois over the
24    preceding year is less than 1%, the additional credit
25    shall be limited to that percentage times a fraction, the
26    numerator of which is .5% and the denominator of which is

 

 

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1    1%, but shall not exceed .5%. The investment credit shall
2    not be allowed to the extent that it would reduce a
3    taxpayer's liability in any tax year below zero, nor may
4    any credit for qualified property be allowed for any year
5    other than the year in which the property was placed in
6    service in Illinois. For tax years ending on or after
7    December 31, 1987, and on or before December 31, 1988, the
8    credit shall be allowed for the tax year in which the
9    property is placed in service, or, if the amount of the
10    credit exceeds the tax liability for that year, whether it
11    exceeds the original liability or the liability as later
12    amended, such excess may be carried forward and applied to
13    the tax liability of the 5 taxable years following the
14    excess credit years if the taxpayer (i) makes investments
15    which cause the creation of a minimum of 2,000 full-time
16    equivalent jobs in Illinois, (ii) is located in an
17    enterprise zone established pursuant to the Illinois
18    Enterprise Zone Act and (iii) is certified by the
19    Department of Commerce and Community Affairs (now
20    Department of Commerce and Economic Opportunity) as
21    complying with the requirements specified in clause (i)
22    and (ii) by July 1, 1986. The Department of Commerce and
23    Community Affairs (now Department of Commerce and Economic
24    Opportunity) shall notify the Department of Revenue of all
25    such certifications immediately. For tax years ending
26    after December 31, 1988, the credit shall be allowed for

 

 

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1    the tax year in which the property is placed in service,
2    or, if the amount of the credit exceeds the tax liability
3    for that year, whether it exceeds the original liability
4    or the liability as later amended, such excess may be
5    carried forward and applied to the tax liability of the 5
6    taxable years following the excess credit years. The
7    credit shall be applied to the earliest year for which
8    there is a liability. If there is credit from more than one
9    tax year that is available to offset a liability, earlier
10    credit shall be applied first.
11        (2) The term "qualified property" means property
12    which:
13            (A) is tangible, whether new or used, including
14        buildings and structural components of buildings and
15        signs that are real property, but not including land
16        or improvements to real property that are not a
17        structural component of a building such as
18        landscaping, sewer lines, local access roads, fencing,
19        parking lots, and other appurtenances;
20            (B) is depreciable pursuant to Section 167 of the
21        Internal Revenue Code, except that "3-year property"
22        as defined in Section 168(c)(2)(A) of that Code is not
23        eligible for the credit provided by this subsection
24        (e);
25            (C) is acquired by purchase as defined in Section
26        179(d) of the Internal Revenue Code;

 

 

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1            (D) is used in Illinois by a taxpayer who is
2        primarily engaged in manufacturing, or in mining coal
3        or fluorite, or in retailing, or was placed in service
4        on or after July 1, 2006 in a River Edge Redevelopment
5        Zone established pursuant to the River Edge
6        Redevelopment Zone Act; and
7            (E) has not previously been used in Illinois in
8        such a manner and by such a person as would qualify for
9        the credit provided by this subsection (e) or
10        subsection (f).
11        (3) For purposes of this subsection (e),
12    "manufacturing" means the material staging and production
13    of tangible personal property by procedures commonly
14    regarded as manufacturing, processing, fabrication, or
15    assembling which changes some existing material into new
16    shapes, new qualities, or new combinations. For purposes
17    of this subsection (e) the term "mining" shall have the
18    same meaning as the term "mining" in Section 613(c) of the
19    Internal Revenue Code. For purposes of this subsection
20    (e), the term "retailing" means the sale of tangible
21    personal property for use or consumption and not for
22    resale, or services rendered in conjunction with the sale
23    of tangible personal property for use or consumption and
24    not for resale. For purposes of this subsection (e),
25    "tangible personal property" has the same meaning as when
26    that term is used in the Retailers' Occupation Tax Act,

 

 

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1    and, for taxable years ending after December 31, 2008,
2    does not include the generation, transmission, or
3    distribution of electricity.
4        (4) The basis of qualified property shall be the basis
5    used to compute the depreciation deduction for federal
6    income tax purposes.
7        (5) If the basis of the property for federal income
8    tax depreciation purposes is increased after it has been
9    placed in service in Illinois by the taxpayer, the amount
10    of such increase shall be deemed property placed in
11    service on the date of such increase in basis.
12        (6) The term "placed in service" shall have the same
13    meaning as under Section 46 of the Internal Revenue Code.
14        (7) If during any taxable year, any property ceases to
15    be qualified property in the hands of the taxpayer within
16    48 months after being placed in service, or the situs of
17    any qualified property is moved outside Illinois within 48
18    months after being placed in service, the Personal
19    Property Tax Replacement Income Tax for such taxable year
20    shall be increased. Such increase shall be determined by
21    (i) recomputing the investment credit which would have
22    been allowed for the year in which credit for such
23    property was originally allowed by eliminating such
24    property from such computation and, (ii) subtracting such
25    recomputed credit from the amount of credit previously
26    allowed. For the purposes of this paragraph (7), a

 

 

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1    reduction of the basis of qualified property resulting
2    from a redetermination of the purchase price shall be
3    deemed a disposition of qualified property to the extent
4    of such reduction.
5        (8) Unless the investment credit is extended by law,
6    the basis of qualified property shall not include costs
7    incurred after December 31, 2018, except for costs
8    incurred pursuant to a binding contract entered into on or
9    before December 31, 2018.
10        (9) Each taxable year ending before December 31, 2000,
11    a partnership may elect to pass through to its partners
12    the credits to which the partnership is entitled under
13    this subsection (e) for the taxable year. A partner may
14    use the credit allocated to him or her under this
15    paragraph only against the tax imposed in subsections (c)
16    and (d) of this Section. If the partnership makes that
17    election, those credits shall be allocated among the
18    partners in the partnership in accordance with the rules
19    set forth in Section 704(b) of the Internal Revenue Code,
20    and the rules promulgated under that Section, and the
21    allocated amount of the credits shall be allowed to the
22    partners for that taxable year. The partnership shall make
23    this election on its Personal Property Tax Replacement
24    Income Tax return for that taxable year. The election to
25    pass through the credits shall be irrevocable.
26        For taxable years ending on or after December 31,

 

 

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1    2000, a partner that qualifies its partnership for a
2    subtraction under subparagraph (I) of paragraph (2) of
3    subsection (d) of Section 203 or a shareholder that
4    qualifies a Subchapter S corporation for a subtraction
5    under subparagraph (S) of paragraph (2) of subsection (b)
6    of Section 203 shall be allowed a credit under this
7    subsection (e) equal to its share of the credit earned
8    under this subsection (e) during the taxable year by the
9    partnership or Subchapter S corporation, determined in
10    accordance with the determination of income and
11    distributive share of income under Sections 702 and 704
12    and Subchapter S of the Internal Revenue Code. This
13    paragraph is exempt from the provisions of Section 250.
14    (f) Investment credit; Enterprise Zone; River Edge
15Redevelopment Zone.
16        (1) A taxpayer shall be allowed a credit against the
17    tax imposed by subsections (a) and (b) of this Section for
18    investment in qualified property which is placed in
19    service in an Enterprise Zone created pursuant to the
20    Illinois Enterprise Zone Act or, for property placed in
21    service on or after July 1, 2006, a River Edge
22    Redevelopment Zone established pursuant to the River Edge
23    Redevelopment Zone Act. For partners, shareholders of
24    Subchapter S corporations, and owners of limited liability
25    companies, if the liability company is treated as a
26    partnership for purposes of federal and State income

 

 

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1    taxation, for taxable years ending before December 31,
2    2023, there shall be allowed a credit under this
3    subsection (f) to be determined in accordance with the
4    determination of income and distributive share of income
5    under Sections 702 and 704 and Subchapter S of the
6    Internal Revenue Code. For taxable years ending on or
7    after December 31, 2023, for partners and shareholders of
8    Subchapter S corporations, the provisions of Section 251
9    shall apply with respect to the credit under this
10    subsection. The credit shall be .5% of the basis for such
11    property. The credit shall be available only in the
12    taxable year in which the property is placed in service in
13    the Enterprise Zone or River Edge Redevelopment Zone and
14    shall not be allowed to the extent that it would reduce a
15    taxpayer's liability for the tax imposed by subsections
16    (a) and (b) of this Section to below zero. For tax years
17    ending on or after December 31, 1985, the credit shall be
18    allowed for the tax year in which the property is placed in
19    service, or, if the amount of the credit exceeds the tax
20    liability for that year, whether it exceeds the original
21    liability or the liability as later amended, such excess
22    may be carried forward and applied to the tax liability of
23    the 5 taxable years following the excess credit year. The
24    credit shall be applied to the earliest year for which
25    there is a liability. If there is credit from more than one
26    tax year that is available to offset a liability, the

 

 

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

 

 

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1        (5) The term "placed in service" shall have the same
2    meaning as under Section 46 of the Internal Revenue Code.
3        (6) If during any taxable year, any property ceases to
4    be qualified property in the hands of the taxpayer within
5    48 months after being placed in service, or the situs of
6    any qualified property is moved outside the Enterprise
7    Zone or River Edge Redevelopment Zone within 48 months
8    after being placed in service, the tax imposed under
9    subsections (a) and (b) of this Section for such taxable
10    year shall be increased. Such increase shall be determined
11    by (i) recomputing the investment credit which would have
12    been allowed for the year in which credit for such
13    property was originally allowed by eliminating such
14    property from such computation, and (ii) subtracting such
15    recomputed credit from the amount of credit previously
16    allowed. For the purposes of this paragraph (6), a
17    reduction of the basis of qualified property resulting
18    from a redetermination of the purchase price shall be
19    deemed a disposition of qualified property to the extent
20    of such reduction.
21        (7) There shall be allowed an additional credit equal
22    to 0.5% of the basis of qualified property placed in
23    service during the taxable year in a River Edge
24    Redevelopment Zone, provided such property is placed in
25    service on or after July 1, 2006, and the taxpayer's base
26    employment within Illinois has increased by 1% or more

 

 

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1    over the preceding year as determined by the taxpayer's
2    employment records filed with the Illinois Department of
3    Employment Security. Taxpayers who are new to Illinois
4    shall be deemed to have met the 1% growth in base
5    employment for the first year in which they file
6    employment records with the Illinois Department of
7    Employment Security. If, in any year, the increase in base
8    employment within Illinois over the preceding year is less
9    than 1%, the additional credit shall be limited to that
10    percentage times a fraction, the numerator of which is
11    0.5% and the denominator of which is 1%, but shall not
12    exceed 0.5%.
13        (8) For taxable years beginning on or after January 1,
14    2021, there shall be allowed an Enterprise Zone
15    construction jobs credit against the taxes imposed under
16    subsections (a) and (b) of this Section as provided in
17    Section 13 of the Illinois Enterprise Zone Act.
18        The credit or credits may not reduce the taxpayer's
19    liability to less than zero. If the amount of the credit or
20    credits exceeds the taxpayer's liability, the excess may
21    be carried forward and applied against the taxpayer's
22    liability in succeeding calendar years in the same manner
23    provided under paragraph (4) of Section 211 of this Act.
24    The credit or credits shall be applied to the earliest
25    year for which there is a tax liability. If there are
26    credits from more than one taxable year that are available

 

 

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1    to offset a liability, the earlier credit shall be applied
2    first.
3        For partners, shareholders of Subchapter S
4    corporations, and owners of limited liability companies,
5    if the liability company is treated as a partnership for
6    the purposes of federal and State income taxation, for
7    taxable years ending before December 31, 2023, there shall
8    be allowed a credit under this Section to be determined in
9    accordance with the determination of income and
10    distributive share of income under Sections 702 and 704
11    and Subchapter S of the Internal Revenue Code. For taxable
12    years ending on or after December 31, 2023, for partners
13    and shareholders of Subchapter S corporations, the
14    provisions of Section 251 shall apply with respect to the
15    credit under this subsection.
16        The total aggregate amount of credits awarded under
17    the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
18    shall not exceed $20,000,000 in any State fiscal year.
19        This paragraph (8) is exempt from the provisions of
20    Section 250.
21    (g) (Blank).
22    (h) Investment credit; High Impact Business.
23        (1) Subject to subsections (b) and (b-5) of Section
24    5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
25    be allowed a credit against the tax imposed by subsections
26    (a) and (b) of this Section for investment in qualified

 

 

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1    property which is placed in service by a Department of
2    Commerce and Economic Opportunity designated High Impact
3    Business. The credit shall be .5% of the basis for such
4    property. The credit shall not be available (i) until the
5    minimum investments in qualified property set forth in
6    subdivision (a)(3)(A) of Section 5.5 of the Illinois
7    Enterprise Zone Act have been satisfied or (ii) until the
8    time authorized in subsection (b-5) of the Illinois
9    Enterprise Zone Act for entities designated as High Impact
10    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
11    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
12    Act, and shall not be allowed to the extent that it would
13    reduce a taxpayer's liability for the tax imposed by
14    subsections (a) and (b) of this Section to below zero. The
15    credit applicable to such investments shall be taken in
16    the taxable year in which such investments have been
17    completed. The credit for additional investments beyond
18    the minimum investment by a designated high impact
19    business authorized under subdivision (a)(3)(A) of Section
20    5.5 of the Illinois Enterprise Zone Act shall be available
21    only in the taxable year in which the property is placed in
22    service and shall not be allowed to the extent that it
23    would reduce a taxpayer's liability for the tax imposed by
24    subsections (a) and (b) of this Section to below zero. For
25    tax years ending on or after December 31, 1987, the credit
26    shall be allowed for the tax year in which the property is

 

 

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1    placed in service, or, if the amount of the credit exceeds
2    the tax liability for that year, whether it exceeds the
3    original liability or the liability as later amended, such
4    excess may be carried forward and applied to the tax
5    liability of the 5 taxable years following the excess
6    credit year. The credit shall be applied to the earliest
7    year for which there is a liability. If there is credit
8    from more than one tax year that is available to offset a
9    liability, the credit accruing first in time shall be
10    applied first.
11        Changes made in this subdivision (h)(1) by Public Act
12    88-670 restore changes made by Public Act 85-1182 and
13    reflect existing law.
14        (2) The term qualified property means property which:
15            (A) is tangible, whether new or used, including
16        buildings and structural components of buildings;
17            (B) is depreciable pursuant to Section 167 of the
18        Internal Revenue Code, except that "3-year property"
19        as defined in Section 168(c)(2)(A) of that Code is not
20        eligible for the credit provided by this subsection
21        (h);
22            (C) is acquired by purchase as defined in Section
23        179(d) of the Internal Revenue Code; and
24            (D) is not eligible for the Enterprise Zone
25        Investment Credit provided by subsection (f) of this
26        Section.

 

 

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1        (3) The basis of qualified property shall be the basis
2    used to compute the depreciation deduction for federal
3    income tax purposes.
4        (4) If the basis of the property for federal income
5    tax depreciation purposes is increased after it has been
6    placed in service in a federally designated Foreign Trade
7    Zone or Sub-Zone located in Illinois by the taxpayer, the
8    amount of such increase shall be deemed property placed in
9    service on the date of such increase in basis.
10        (5) The term "placed in service" shall have the same
11    meaning as under Section 46 of the Internal Revenue Code.
12        (6) If during any taxable year ending on or before
13    December 31, 1996, any property ceases to be qualified
14    property in the hands of the taxpayer within 48 months
15    after being placed in service, or the situs of any
16    qualified property is moved outside Illinois within 48
17    months after being placed in service, the tax imposed
18    under subsections (a) and (b) of this Section for such
19    taxable year shall be increased. Such increase shall be
20    determined by (i) recomputing the investment credit which
21    would have been allowed for the year in which credit for
22    such property was originally allowed by eliminating such
23    property from such computation, and (ii) subtracting such
24    recomputed credit from the amount of credit previously
25    allowed. For the purposes of this paragraph (6), a
26    reduction of the basis of qualified property resulting

 

 

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1    from a redetermination of the purchase price shall be
2    deemed a disposition of qualified property to the extent
3    of such reduction.
4        (7) Beginning with tax years ending after December 31,
5    1996, if a taxpayer qualifies for the credit under this
6    subsection (h) and thereby is granted a tax abatement and
7    the taxpayer relocates its entire facility in violation of
8    the explicit terms and length of the contract under
9    Section 18-183 of the Property Tax Code, the tax imposed
10    under subsections (a) and (b) of this Section shall be
11    increased for the taxable year in which the taxpayer
12    relocated its facility by an amount equal to the amount of
13    credit received by the taxpayer under this subsection (h).
14    (h-5) High Impact Business construction jobs credit. For
15taxable years beginning on or after January 1, 2021, there
16shall also be allowed a High Impact Business construction jobs
17credit against the tax imposed under subsections (a) and (b)
18of this Section as provided in subsections (i) and (j) of
19Section 5.5 of the Illinois Enterprise Zone Act.
20    The credit or credits may not reduce the taxpayer's
21liability to less than zero. If the amount of the credit or
22credits exceeds the taxpayer's liability, the excess may be
23carried forward and applied against the taxpayer's liability
24in succeeding calendar years in the manner provided under
25paragraph (4) of Section 211 of this Act. The credit or credits
26shall be applied to the earliest year for which there is a tax

 

 

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1liability. If there are credits from more than one taxable
2year that are available to offset a liability, the earlier
3credit shall be applied first.
4    For partners, shareholders of Subchapter S corporations,
5and owners of limited liability companies, for taxable years
6ending before December 31, 2023, if the liability company is
7treated as a partnership for the purposes of federal and State
8income taxation, there shall be allowed a credit under this
9Section to be determined in accordance with the determination
10of income and distributive share of income under Sections 702
11and 704 and Subchapter S of the Internal Revenue Code. For
12taxable years ending on or after December 31, 2023, for
13partners and shareholders of Subchapter S corporations, the
14provisions of Section 251 shall apply with respect to the
15credit under this subsection.
16    The total aggregate amount of credits awarded under the
17Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
18exceed $20,000,000 in any State fiscal year.
19    This subsection (h-5) is exempt from the provisions of
20Section 250.
21    (i) Credit for Personal Property Tax Replacement Income
22Tax. For tax years ending prior to December 31, 2003, a credit
23shall be allowed against the tax imposed by subsections (a)
24and (b) of this Section for the tax imposed by subsections (c)
25and (d) of this Section. This credit shall be computed by
26multiplying the tax imposed by subsections (c) and (d) of this

 

 

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1Section by a fraction, the numerator of which is base income
2allocable to Illinois and the denominator of which is Illinois
3base income, and further multiplying the product by the tax
4rate imposed by subsections (a) and (b) of this Section.
5    Any credit earned on or after December 31, 1986 under this
6subsection which is unused in the year the credit is computed
7because it exceeds the tax liability imposed by subsections
8(a) and (b) for that year (whether it exceeds the original
9liability or the liability as later amended) may be carried
10forward and applied to the tax liability imposed by
11subsections (a) and (b) of the 5 taxable years following the
12excess credit year, provided that no credit may be carried
13forward to any year ending on or after December 31, 2003. This
14credit shall be applied first to the earliest year for which
15there is a liability. If there is a credit under this
16subsection from more than one tax year that is available to
17offset a liability the earliest credit arising under this
18subsection shall be applied first.
19    If, during any taxable year ending on or after December
2031, 1986, the tax imposed by subsections (c) and (d) of this
21Section for which a taxpayer has claimed a credit under this
22subsection (i) is reduced, the amount of credit for such tax
23shall also be reduced. Such reduction shall be determined by
24recomputing the credit to take into account the reduced tax
25imposed by subsections (c) and (d). If any portion of the
26reduced amount of credit has been carried to a different

 

 

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1taxable year, an amended return shall be filed for such
2taxable year to reduce the amount of credit claimed.
3    (j) Training expense credit. Beginning with tax years
4ending on or after December 31, 1986 and prior to December 31,
52003, a taxpayer shall be allowed a credit against the tax
6imposed by subsections (a) and (b) under this Section for all
7amounts paid or accrued, on behalf of all persons employed by
8the taxpayer in Illinois or Illinois residents employed
9outside of Illinois by a taxpayer, for educational or
10vocational training in semi-technical or technical fields or
11semi-skilled or skilled fields, which were deducted from gross
12income in the computation of taxable income. The credit
13against the tax imposed by subsections (a) and (b) shall be
141.6% of such training expenses. For partners, shareholders of
15subchapter S corporations, and owners of limited liability
16companies, if the liability company is treated as a
17partnership for purposes of federal and State income taxation,
18for taxable years ending before December 31, 2023, there shall
19be allowed a credit under this subsection (j) to be determined
20in accordance with the determination of income and
21distributive share of income under Sections 702 and 704 and
22subchapter S of the Internal Revenue Code. For taxable years
23ending on or after December 31, 2023, for partners and
24shareholders of Subchapter S corporations, the provisions of
25Section 251 shall apply with respect to the credit under this
26subsection.

 

 

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1    Any credit allowed under this subsection which is unused
2in the year the credit is earned may be carried forward to each
3of the 5 taxable years following the year for which the credit
4is first computed until it is used. This credit shall be
5applied first to the earliest year for which there is a
6liability. If there is a credit under this subsection from
7more than one tax year that is available to offset a liability,
8the earliest credit arising under this subsection shall be
9applied first. No carryforward credit may be claimed in any
10tax year ending on or after December 31, 2003.
11    (k) Research and development credit. For tax years ending
12after July 1, 1990 and prior to December 31, 2003, and
13beginning again for tax years ending on or after December 31,
142004, and ending prior to January 1, 2032 January 1, 2027, a
15taxpayer shall be allowed a credit against the tax imposed by
16subsections (a) and (b) of this Section for increasing
17research activities in this State. The credit allowed against
18the tax imposed by subsections (a) and (b) shall be equal to 6
191/2% of the qualifying expenditures for increasing research
20activities in this State. For partners, shareholders of
21subchapter S corporations, and owners of limited liability
22companies, if the liability company is treated as a
23partnership for purposes of federal and State income taxation,
24for taxable years ending before December 31, 2023, there shall
25be allowed a credit under this subsection to be determined in
26accordance with the determination of income and distributive

 

 

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1share of income under Sections 702 and 704 and subchapter S of
2the Internal Revenue Code. For taxable years ending on or
3after December 31, 2023, for partners and shareholders of
4Subchapter S corporations, the provisions of Section 251 shall
5apply with respect to the credit under this subsection.
6    For purposes of this subsection, "qualifying expenditures"
7means the qualifying expenditures as defined for the federal
8credit for increasing research activities which would be
9allowable under Section 41 of the Internal Revenue Code and
10which are conducted in this State, "qualifying expenditures
11for increasing research activities in this State" means the
12excess of qualifying expenditures for the taxable year in
13which incurred over qualifying expenditures for the base
14period, "qualifying expenditures for the base period" means
15the average of the qualifying expenditures for each year in
16the base period, and "base period" means the 3 taxable years
17immediately preceding the taxable year for which the
18determination is being made.
19    Any credit in excess of the tax liability for the taxable
20year may be carried forward. A taxpayer may elect to have the
21unused credit shown on its final completed return carried over
22as a credit against the tax liability for the following 5
23taxable years or until it has been fully used, whichever
24occurs first; provided that no credit earned in a tax year
25ending prior to December 31, 2003 may be carried forward to any
26year ending on or after December 31, 2003.

 

 

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1    If an unused credit is carried forward to a given year from
22 or more earlier years, that credit arising in the earliest
3year will be applied first against the tax liability for the
4given year. If a tax liability for the given year still
5remains, the credit from the next earliest year will then be
6applied, and so on, until all credits have been used or no tax
7liability for the given year remains. Any remaining unused
8credit or credits then will be carried forward to the next
9following year in which a tax liability is incurred, except
10that no credit can be carried forward to a year which is more
11than 5 years after the year in which the expense for which the
12credit is given was incurred.
13    No inference shall be drawn from Public Act 91-644 in
14construing this Section for taxable years beginning before
15January 1, 1999.
16    It is the intent of the General Assembly that the research
17and development credit under this subsection (k) shall apply
18continuously for all tax years ending on or after December 31,
192004 and ending prior to January 1, 2032 January 1, 2027,
20including, but not limited to, the period beginning on January
211, 2016 and ending on July 6, 2017 (the effective date of
22Public Act 100-22). All actions taken in reliance on the
23continuation of the credit under this subsection (k) by any
24taxpayer are hereby validated.
25    (l) Environmental Remediation Tax Credit.
26        (i) For tax years ending after December 31, 1997 and

 

 

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1    on or before December 31, 2001, a taxpayer shall be
2    allowed a credit against the tax imposed by subsections
3    (a) and (b) of this Section for certain amounts paid for
4    unreimbursed eligible remediation costs, as specified in
5    this subsection. For purposes of this Section,
6    "unreimbursed eligible remediation costs" means costs
7    approved by the Illinois Environmental Protection Agency
8    ("Agency") under Section 58.14 of the Environmental
9    Protection Act that were paid in performing environmental
10    remediation at a site for which a No Further Remediation
11    Letter was issued by the Agency and recorded under Section
12    58.10 of the Environmental Protection Act. The credit must
13    be claimed for the taxable year in which Agency approval
14    of the eligible remediation costs is granted. The credit
15    is not available to any taxpayer if the taxpayer or any
16    related party caused or contributed to, in any material
17    respect, a release of regulated substances on, in, or
18    under the site that was identified and addressed by the
19    remedial action pursuant to the Site Remediation Program
20    of the Environmental Protection Act. After the Pollution
21    Control Board rules are adopted pursuant to the Illinois
22    Administrative Procedure Act for the administration and
23    enforcement of Section 58.9 of the Environmental
24    Protection Act, determinations as to credit availability
25    for purposes of this Section shall be made consistent with
26    those rules. For purposes of this Section, "taxpayer"

 

 

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1    includes a person whose tax attributes the taxpayer has
2    succeeded to under Section 381 of the Internal Revenue
3    Code and "related party" includes the persons disallowed a
4    deduction for losses by paragraphs (b), (c), and (f)(1) of
5    Section 267 of the Internal Revenue Code by virtue of
6    being a related taxpayer, as well as any of its partners.
7    The credit allowed against the tax imposed by subsections
8    (a) and (b) shall be equal to 25% of the unreimbursed
9    eligible remediation costs in excess of $100,000 per site,
10    except that the $100,000 threshold shall not apply to any
11    site contained in an enterprise zone as determined by the
12    Department of Commerce and Community Affairs (now
13    Department of Commerce and Economic Opportunity). The
14    total credit allowed shall not exceed $40,000 per year
15    with a maximum total of $150,000 per site. For partners
16    and shareholders of subchapter S corporations, there shall
17    be allowed a credit under this subsection to be determined
18    in accordance with the determination of income and
19    distributive share of income under Sections 702 and 704
20    and subchapter S of the Internal Revenue Code.
21        (ii) A credit allowed under this subsection that is
22    unused in the year the credit is earned may be carried
23    forward to each of the 5 taxable years following the year
24    for which the credit is first earned until it is used. The
25    term "unused credit" does not include any amounts of
26    unreimbursed eligible remediation costs in excess of the

 

 

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1    maximum credit per site authorized under paragraph (i).
2    This credit shall be applied first to the earliest year
3    for which there is a liability. If there is a credit under
4    this subsection from more than one tax year that is
5    available to offset a liability, the earliest credit
6    arising under this subsection shall be applied first. A
7    credit allowed under this subsection may be sold to a
8    buyer as part of a sale of all or part of the remediation
9    site for which the credit was granted. The purchaser of a
10    remediation site and the tax credit shall succeed to the
11    unused credit and remaining carry-forward period of the
12    seller. To perfect the transfer, the assignor shall record
13    the transfer in the chain of title for the site and provide
14    written notice to the Director of the Illinois Department
15    of Revenue of the assignor's intent to sell the
16    remediation site and the amount of the tax credit to be
17    transferred as a portion of the sale. In no event may a
18    credit be transferred to any taxpayer if the taxpayer or a
19    related party would not be eligible under the provisions
20    of subsection (i).
21        (iii) For purposes of this Section, the term "site"
22    shall have the same meaning as under Section 58.2 of the
23    Environmental Protection Act.
24    (m) Education expense credit. Beginning with tax years
25ending after December 31, 1999, a taxpayer who is the
26custodian of one or more qualifying pupils shall be allowed a

 

 

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1credit against the tax imposed by subsections (a) and (b) of
2this Section for qualified education expenses incurred on
3behalf of the qualifying pupils. The credit shall be equal to
425% of qualified education expenses, but in no event may the
5total credit under this subsection claimed by a family that is
6the custodian of qualifying pupils exceed (i) $500 for tax
7years ending prior to December 31, 2017, and (ii) $750 for tax
8years ending on or after December 31, 2017. In no event shall a
9credit under this subsection reduce the taxpayer's liability
10under this Act to less than zero. Notwithstanding any other
11provision of law, for taxable years beginning on or after
12January 1, 2017, no taxpayer may claim a credit under this
13subsection (m) if the taxpayer's adjusted gross income for the
14taxable year exceeds (i) $500,000, in the case of spouses
15filing a joint federal tax return or (ii) $250,000, in the case
16of all other taxpayers. This subsection is exempt from the
17provisions of Section 250 of this Act.
18    For purposes of this subsection:
19    "Qualifying pupils" means individuals who (i) are
20residents of the State of Illinois, (ii) are under the age of
2121 at the close of the school year for which a credit is
22sought, and (iii) during the school year for which a credit is
23sought were full-time pupils enrolled in a kindergarten
24through twelfth grade education program at any school, as
25defined in this subsection.
26    "Qualified education expense" means the amount incurred on

 

 

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1behalf of a qualifying pupil in excess of $250 for tuition,
2book fees, and lab fees at the school in which the pupil is
3enrolled during the regular school year.
4    "School" means any public or nonpublic elementary or
5secondary school in Illinois that is in compliance with Title
6VI of the Civil Rights Act of 1964 and attendance at which
7satisfies the requirements of Section 26-1 of the School Code,
8except that nothing shall be construed to require a child to
9attend any particular public or nonpublic school to qualify
10for the credit under this Section.
11    "Custodian" means, with respect to qualifying pupils, an
12Illinois resident who is a parent, the parents, a legal
13guardian, or the legal guardians of the qualifying pupils.
14    (n) River Edge Redevelopment Zone site remediation tax
15credit.
16        (i) For tax years ending on or after December 31,
17    2006, a taxpayer shall be allowed a credit against the tax
18    imposed by subsections (a) and (b) of this Section for
19    certain amounts paid for unreimbursed eligible remediation
20    costs, as specified in this subsection. For purposes of
21    this Section, "unreimbursed eligible remediation costs"
22    means costs approved by the Illinois Environmental
23    Protection Agency ("Agency") under Section 58.14a of the
24    Environmental Protection Act that were paid in performing
25    environmental remediation at a site within a River Edge
26    Redevelopment Zone for which a No Further Remediation

 

 

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1    Letter was issued by the Agency and recorded under Section
2    58.10 of the Environmental Protection Act. The credit must
3    be claimed for the taxable year in which Agency approval
4    of the eligible remediation costs is granted. The credit
5    is not available to any taxpayer if the taxpayer or any
6    related party caused or contributed to, in any material
7    respect, a release of regulated substances on, in, or
8    under the site that was identified and addressed by the
9    remedial action pursuant to the Site Remediation Program
10    of the Environmental Protection Act. Determinations as to
11    credit availability for purposes of this Section shall be
12    made consistent with rules adopted by the Pollution
13    Control Board pursuant to the Illinois Administrative
14    Procedure Act for the administration and enforcement of
15    Section 58.9 of the Environmental Protection Act. For
16    purposes of this Section, "taxpayer" includes a person
17    whose tax attributes the taxpayer has succeeded to under
18    Section 381 of the Internal Revenue Code and "related
19    party" includes the persons disallowed a deduction for
20    losses by paragraphs (b), (c), and (f)(1) of Section 267
21    of the Internal Revenue Code by virtue of being a related
22    taxpayer, as well as any of its partners. The credit
23    allowed against the tax imposed by subsections (a) and (b)
24    shall be equal to 25% of the unreimbursed eligible
25    remediation costs in excess of $100,000 per site.
26        (ii) A credit allowed under this subsection that is

 

 

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1    unused in the year the credit is earned may be carried
2    forward to each of the 5 taxable years following the year
3    for which the credit is first earned until it is used. This
4    credit shall be applied first to the earliest year for
5    which there is a liability. If there is a credit under this
6    subsection from more than one tax year that is available
7    to offset a liability, the earliest credit arising under
8    this subsection shall be applied first. A credit allowed
9    under this subsection may be sold to a buyer as part of a
10    sale of all or part of the remediation site for which the
11    credit was granted. The purchaser of a remediation site
12    and the tax credit shall succeed to the unused credit and
13    remaining carry-forward period of the seller. To perfect
14    the transfer, the assignor shall record the transfer in
15    the chain of title for the site and provide written notice
16    to the Director of the Illinois Department of Revenue of
17    the assignor's intent to sell the remediation site and the
18    amount of the tax credit to be transferred as a portion of
19    the sale. In no event may a credit be transferred to any
20    taxpayer if the taxpayer or a related party would not be
21    eligible under the provisions of subsection (i).
22        (iii) For purposes of this Section, the term "site"
23    shall have the same meaning as under Section 58.2 of the
24    Environmental Protection Act.
25    (o) For each of taxable years during the Compassionate Use
26of Medical Cannabis Program, a surcharge is imposed on all

 

 

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1taxpayers on income arising from the sale or exchange of
2capital assets, depreciable business property, real property
3used in the trade or business, and Section 197 intangibles of
4an organization registrant under the Compassionate Use of
5Medical Cannabis Program Act. The amount of the surcharge is
6equal to the amount of federal income tax liability for the
7taxable year attributable to those sales and exchanges. The
8surcharge imposed does not apply if:
9        (1) the medical cannabis cultivation center
10    registration, medical cannabis dispensary registration, or
11    the property of a registration is transferred as a result
12    of any of the following:
13            (A) bankruptcy, a receivership, or a debt
14        adjustment initiated by or against the initial
15        registration or the substantial owners of the initial
16        registration;
17            (B) cancellation, revocation, or termination of
18        any registration by the Illinois Department of Public
19        Health;
20            (C) a determination by the Illinois Department of
21        Public Health that transfer of the registration is in
22        the best interests of Illinois qualifying patients as
23        defined by the Compassionate Use of Medical Cannabis
24        Program Act;
25            (D) the death of an owner of the equity interest in
26        a registrant;

 

 

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1            (E) the acquisition of a controlling interest in
2        the stock or substantially all of the assets of a
3        publicly traded company;
4            (F) a transfer by a parent company to a wholly
5        owned subsidiary; or
6            (G) the transfer or sale to or by one person to
7        another person where both persons were initial owners
8        of the registration when the registration was issued;
9        or
10        (2) the cannabis cultivation center registration,
11    medical cannabis dispensary registration, or the
12    controlling interest in a registrant's property is
13    transferred in a transaction to lineal descendants in
14    which no gain or loss is recognized or as a result of a
15    transaction in accordance with Section 351 of the Internal
16    Revenue Code in which no gain or loss is recognized.
17    (p) Pass-through entity tax.
18        (1) For taxable years ending on or after December 31,
19    2021 and beginning prior to January 1, 2026, a partnership
20    (other than a publicly traded partnership under Section
21    7704 of the Internal Revenue Code) or Subchapter S
22    corporation may elect to apply the provisions of this
23    subsection. A separate election shall be made for each
24    taxable year. Such election shall be made at such time,
25    and in such form and manner as prescribed by the
26    Department, and, once made, is irrevocable.

 

 

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1        (2) Entity-level tax. A partnership or Subchapter S
2    corporation electing to apply the provisions of this
3    subsection shall be subject to a tax for the privilege of
4    earning or receiving income in this State in an amount
5    equal to 4.95% of the taxpayer's net income for the
6    taxable year.
7        (3) Net income defined.
8            (A) In general. For purposes of paragraph (2), the
9        term net income has the same meaning as defined in
10        Section 202 of this Act, except that, for tax years
11        ending on or after December 31, 2023, a deduction
12        shall be allowed in computing base income for
13        distributions to a retired partner to the extent that
14        the partner's distributions are exempt from tax under
15        Section 203(a)(2)(F) of this Act. In addition, the
16        following modifications shall not apply:
17                (i) the standard exemption allowed under
18            Section 204;
19                (ii) the deduction for net losses allowed
20            under Section 207;
21                (iii) in the case of an S corporation, the
22            modification under Section 203(b)(2)(S); and
23                (iv) in the case of a partnership, the
24            modifications under Section 203(d)(2)(H) and
25            Section 203(d)(2)(I).
26            (B) Special rule for tiered partnerships. If a

 

 

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

 

 

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

 

 

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

 

 

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1    Section 709.5 of this Act shall not apply to a partnership
2    or Subchapter S corporation for the taxable year for which
3    an election under paragraph (1) is in effect.
4        (9) Requirement to pay estimated tax. For each taxable
5    year for which an election under paragraph (1) is in
6    effect, a partnership or Subchapter S corporation is
7    required to pay estimated tax for such taxable year under
8    Sections 803 and 804 of this Act if the amount payable as
9    estimated tax can reasonably be expected to exceed $500.
10        (10) The provisions of this subsection shall apply
11    only with respect to taxable years for which the
12    limitation on individual deductions applies under Section
13    164(b)(6) of the Internal Revenue Code.
14(Source: P.A. 102-558, eff. 8-20-21; 102-658, eff. 8-27-21;
15103-9, eff. 6-7-23; 103-396, eff. 1-1-24; revised 12-12-23.)
 
16    (35 ILCS 5/241 new)
17    Sec. 241. Credit for quantum computing campuses.
18    (a) A taxpayer who has been awarded a credit by the
19Department of Commerce and Economic Opportunity under Section
20605-115 of the Department of Commerce and Economic Opportunity
21Law of the Civil Administrative Code of Illinois is entitled
22to a credit against the taxes imposed under subsections (a)
23and (b) of Section 201 of this Act. The amount of the credit
24shall be 20% of the wages paid by the taxpayer during the
25taxable year to a full-time or part-time employee of a

 

 

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1construction contractor employed in the construction of an
2eligible facility located on a quantum computing campus
3designated under Section 605-115 of the Department of Commerce
4and Economic Opportunity Law of the Civil Administrative Code
5of Illinois.
6    (b) In no event shall a credit under this Section reduce
7the taxpayer's liability to less than zero. 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 tax
11credit shall be applied to the earliest year for which there is
12a tax liability. If there are credits for more than one year
13that are available to offset a liability, the earlier credit
14shall be applied first.
15    (c) A person claiming the credit allowed under this
16Section shall attach to its Illinois income tax return for the
17taxable year for which the credit is allowed a copy of the tax
18credit certificate issued by the Department of Commerce and
19Economic Opportunity.
20    (d) Partners and shareholders of Subchapter S corporations
21are entitled to a credit under this Section as provided in
22Section 251.
23    (e) As used in this Section, "eligible facility" means a
24building used primarily to house one or more of the following:
25a quantum computer operator; a research facility; a data
26center; a manufacturer and assembler of quantum computers and

 

 

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1component parts; a cryogenic or refrigeration facility; or any
2other facility determined, by industry and academic leaders,
3to be fundamental to the research and development of quantum
4computing for practical solutions.
5    (f) This Section is exempt from the provisions of Section
6250.
 
7    Section 23. The Illinois Income Tax Act is amended by
8changing Section 213 as follows:
 
9    (35 ILCS 5/213)
10    Sec. 213. Film production services credit.
11    (a) For tax years beginning on or after January 1, 2004, a
12taxpayer who has been awarded a tax credit under the Film
13Production Services Tax Credit Act or under the Film
14Production Services Tax Credit Act of 2008 is entitled to a
15credit against the taxes imposed under subsections (a) and (b)
16of Section 201 of this Act in an amount determined by the
17Department of Commerce and Economic Opportunity under those
18Acts. If the taxpayer is a partnership or Subchapter S
19corporation, the credit is allowed to the partners or
20shareholders in accordance with the determination of income
21and distributive share of income under Sections 702 and 704
22and Subchapter S of the Internal Revenue Code.
23    (b) Beginning July 1, 2024, taxpayers who have been
24awarded a tax credit under the Film Production Services Tax

 

 

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1Credit Act of 2008 shall pay to the Department of Commerce and
2Economic Opportunity, after determination of the tax credit
3amount but prior to the issuance of a tax credit certificate
4pursuant to Section 35 of the Film Production Services Tax
5Credit Act of 2008, a fee equal to 2.5% of the credit amount
6awarded to the taxpayer under the Film Production Services Tax
7Credit Act of 2008 that is attributable to wages paid to
8nonresidents, as described in Section 10 of the Film
9Production Services Tax Credit Act of 2008, and an additional
10fee equal to 0.25% of the amount generated by subtracting the
11credit amount awarded to the taxpayer under the Film
12Production Services Tax Credit Act of 2008 that is
13attributable to wages paid to nonresidents from the total
14credit amount awarded to the taxpayer under that Act. All fees
15collected under this subsection shall be deposited into the
16Illinois Production Workforce Development Fund. No tax credit
17certificate shall be issued by the Department of Commerce and
18Economic Opportunity until the total fees owed according to
19this subsection have been received by the Department of
20Commerce and Economic Opportunity.
21    (c) A transfer of this credit may be made by the taxpayer
22earning the credit within one year after the credit is awarded
23in accordance with rules adopted by the Department of Commerce
24and Economic Opportunity. Beginning July 1, 2023 and through
25June 30, 2024, if a credit is transferred under this Section by
26the taxpayer, then the transferor taxpayer shall pay to the

 

 

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1Department of Commerce and Economic Opportunity, upon
2notification of a transfer, a fee equal to 2.5% of the
3transferred credit amount eligible for nonresident wages, as
4described in Section 10 of the Film Production Services Tax
5Credit Act of 2008, and an additional fee of 0.25% of the total
6amount of the transferred credit that is not calculated on
7nonresident wages, which shall be deposited into the Illinois
8Production Workforce Development Fund.
9    (d) The Department, in cooperation with the Department of
10Commerce and Economic Opportunity, must prescribe rules to
11enforce and administer the provisions of this Section. This
12Section is exempt from the provisions of Section 250 of this
13Act.
14    (e) The credit may not be carried back. If the amount of
15the credit exceeds the tax liability for the year, the excess
16may be carried forward and applied to the tax liability of the
175 taxable years following the excess credit year. The credit
18shall be applied to the earliest year for which there is a tax
19liability. If there are credits from more than one tax year
20that are available to offset a liability, the earlier credit
21shall be applied first. In no event shall a credit under this
22Section reduce the taxpayer's liability to less than zero.
23(Source: P.A. 102-700, eff. 4-19-22.)
 
24    Section 25. The Economic Development for a Growing Economy
25Tax Credit Act is amended by changing Sections 5-5, 5-15,

 

 

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15-20, 5-35, 5-45, and 5-56 as follows:
 
2    (35 ILCS 10/5-5)
3    Sec. 5-5. Definitions. As used in this Act:
4    "Agreement" means the Agreement between a Taxpayer and the
5Department under the provisions of Section 5-50 of this Act.
6    "Applicant" means a Taxpayer that is operating a business
7located or that the Taxpayer plans to locate within the State
8of Illinois and that is engaged in interstate or intrastate
9commerce for the purpose of manufacturing, processing,
10assembling, warehousing, or distributing products, conducting
11research and development, providing tourism services, or
12providing services in interstate commerce, office industries,
13or agricultural processing, but excluding retail, retail food,
14health, or professional services, and services delivered to
15business customer sites. "Applicant" does not include a
16Taxpayer who closes or substantially reduces an operation at
17one location in the State and relocates substantially the same
18operation to another location in the State. This does not
19prohibit a Taxpayer from expanding its operations at another
20location in the State, provided that existing operations of a
21similar nature located within the State are not closed or
22substantially reduced. This also does not prohibit a Taxpayer
23from moving its operations from one location in the State to
24another location in the State for the purpose of expanding the
25operation provided that the Department determines that

 

 

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1expansion cannot reasonably be accommodated within the
2municipality in which the business is located, or in the case
3of a business located in an incorporated area of the county,
4within the county in which the business is located, after
5conferring with the chief elected official of the municipality
6or county and taking into consideration any evidence offered
7by the municipality or county regarding the ability to
8accommodate expansion within the municipality or county.
9    "Credit" means the amount agreed to between the Department
10and Applicant under this Act, but not to exceed the lesser of:
11(1) the sum of (i) 50% of the Incremental Income Tax
12attributable to New Employees at the Applicant's project and
13(ii) 10% of the training costs of New Employees; or (2) 100% of
14the Incremental Income Tax attributable to New Employees at
15the Applicant's project. However, if the project is located in
16an underserved area, then the amount of the Credit may not
17exceed the lesser of: (1) the sum of (i) 75% of the Incremental
18Income Tax attributable to New Employees at the Applicant's
19project and (ii) 10% of the training costs of New Employees; or
20(2) 100% of the Incremental Income Tax attributable to New
21Employees at the Applicant's project. If the project is not
22located in an underserved area and the Applicant agrees to
23hire the required number of New Employees, then the maximum
24amount of the Credit for that Applicant may be increased by an
25amount not to exceed 25% of the Incremental Income Tax
26attributable to retained employees at the Applicant's project.

 

 

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1If the project is located in an underserved area and the
2Applicant agrees to hire the required number of New Employees,
3then the maximum amount of the credit for that Applicant may be
4increased by an amount not to exceed 50% of the Incremental
5Income Tax attributable to retained employees at the
6Applicant's project.
7    "Department" means the Department of Commerce and Economic
8Opportunity.
9    "Director" means the Director of Commerce and Economic
10Opportunity.
11    "Full-time Employee" means an individual who is employed
12for consideration for at least 35 hours each week or who
13renders any other standard of service generally accepted by
14industry custom or practice as full-time employment. An
15individual for whom a W-2 is issued by a Professional Employer
16Organization (PEO) is a full-time employee if employed in the
17service of the Applicant for consideration for at least 35
18hours each week or who renders any other standard of service
19generally accepted by industry custom or practice as full-time
20employment to Applicant. The employee need not be physically
21present at the EDGE project location during the entire
22full-time workweek; however, the agreement shall set forth a
23minimum number of hours during which the employee is scheduled
24to be present at the EDGE project location.
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    "New Construction EDGE Agreement" means the Agreement
5between a Taxpayer and the Department under the provisions of
6Section 5-51 of this Act.
7    "New Construction EDGE Credit" means an amount agreed to
8between the Department and the Applicant under this Act as
9part of a New Construction EDGE Agreement that does not exceed
1050% of the Incremental Income Tax attributable to New
11Construction EDGE Employees at the Applicant's project;
12however, if the New Construction EDGE Project is located in an
13underserved area, then the amount of the New Construction EDGE
14Credit may not exceed 75% of the Incremental Income Tax
15attributable to New Construction EDGE Employees at the
16Applicant's New Construction EDGE Project.
17    "New Construction EDGE Employee" means a laborer or worker
18who is employed by a an Illinois contractor or subcontractor
19in the actual construction work on the site of a New
20Construction EDGE Project, pursuant to a New Construction EDGE
21Agreement.
22    "New Construction EDGE Incremental Income Tax" means the
23total amount withheld during the taxable year from the
24compensation of New Construction EDGE Employees.
25    "New Construction EDGE Project" means the building of a
26Taxpayer's structure or building, or making improvements of

 

 

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1any kind to real property. "New Construction EDGE Project"
2does not include the routine operation, routine repair, or
3routine maintenance of existing structures, buildings, or real
4property.
5    "New Employee" means:
6        (a) A Full-time Employee first employed by a Taxpayer
7    at in the project, or assigned to the project as their
8    primary work location, that is the subject of an Agreement
9    and who is hired after the Taxpayer enters into the tax
10    credit Agreement.
11        (b) The term "New Employee" does not include:
12            (1) an employee of the Taxpayer who performs a job
13        that was previously performed by another employee, if
14        that job existed for at least 6 months before hiring
15        the employee;
16            (2) an employee of the Taxpayer who was previously
17        employed in Illinois by a Related Member of the
18        Taxpayer and whose employment was shifted to the
19        Taxpayer after the Taxpayer entered into the tax
20        credit Agreement; or
21            (3) a child, grandchild, parent, or spouse, other
22        than a spouse who is legally separated from the
23        individual, of any individual who has a direct or an
24        indirect ownership interest of at least 5% in the
25        profits, capital, or value of the Taxpayer.
26        (c) Notwithstanding paragraph (1) of subsection (b),

 

 

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1    an employee may be considered a New Employee under the
2    Agreement if the employee performs a job that was
3    previously performed by an employee who was:
4            (1) treated under the Agreement as a New Employee;
5        and
6            (2) promoted by the Taxpayer to another job.
7        (d) Notwithstanding subsection (a), the Department may
8    award Credit to an Applicant with respect to an employee
9    hired prior to the date of the Agreement if:
10            (1) the Applicant is in receipt of a letter from
11        the Department stating an intent to enter into a
12        credit Agreement;
13            (2) the letter described in paragraph (1) is
14        issued by the Department not later than 15 days after
15        the effective date of this Act; and
16            (3) the employee was hired after the date the
17        letter described in paragraph (1) was issued.
18    "Noncompliance Date" means, in the case of a Taxpayer that
19is not complying with the requirements of the Agreement or the
20provisions of this Act, the day following the last date upon
21which the Taxpayer was in compliance with the requirements of
22the Agreement and the provisions of this Act, as determined by
23the Director, pursuant to Section 5-65.
24    "Pass Through Entity" means an entity that is exempt from
25the tax under subsection (b) or (c) of Section 205 of the
26Illinois Income Tax Act.

 

 

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1    "Professional Employer Organization" (PEO) means an
2employee leasing company, as defined in Section 206.1(A)(2) of
3the Illinois Unemployment Insurance Act.
4    "Related Member" means a person that, with respect to the
5Taxpayer during any portion of the taxable year, is any one of
6the following:
7        (1) An individual stockholder, if the stockholder and
8    the members of the stockholder's family (as defined in
9    Section 318 of the Internal Revenue Code) own directly,
10    indirectly, beneficially, or constructively, in the
11    aggregate, at least 50% of the value of the Taxpayer's
12    outstanding stock.
13        (2) A partnership, estate, or trust and any partner or
14    beneficiary, if the partnership, estate, or trust, and its
15    partners or beneficiaries own directly, indirectly,
16    beneficially, or constructively, in the aggregate, at
17    least 50% of the profits, capital, stock, or value of the
18    Taxpayer.
19        (3) A corporation, and any party related to the
20    corporation in a manner that would require an attribution
21    of stock from the corporation to the party or from the
22    party to the corporation under the attribution rules of
23    Section 318 of the Internal Revenue Code, if the Taxpayer
24    owns directly, indirectly, beneficially, or constructively
25    at least 50% of the value of the corporation's outstanding
26    stock.

 

 

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1        (4) A corporation and any party related to that
2    corporation in a manner that would require an attribution
3    of stock from the corporation to the party or from the
4    party to the corporation under the attribution rules of
5    Section 318 of the Internal Revenue Code, if the
6    corporation and all such related parties own in the
7    aggregate at least 50% of the profits, capital, stock, or
8    value of the Taxpayer.
9        (5) A person to or from whom there is attribution of
10    stock ownership in accordance with Section 1563(e) of the
11    Internal Revenue Code, except, for purposes of determining
12    whether a person is a Related Member under this paragraph,
13    20% shall be substituted for 5% wherever 5% appears in
14    Section 1563(e) of the Internal Revenue Code.
15    "Startup taxpayer" means, for Agreements that are executed
16before the effective date of the changes made to this Section
17by this amendatory Act of the 103rd General Assembly, a
18corporation, partnership, or other entity incorporated or
19organized no more than 5 years before the filing of an
20application for an Agreement that has never had any Illinois
21income tax liability, excluding any Illinois income tax
22liability of a Related Member which shall not be attributed to
23the startup taxpayer. "Startup taxpayer" means, for Agreements
24that are executed on or after the effective date of this
25amendatory Act of the 103rd General Assembly, a corporation,
26partnership, or other entity that is incorporated or organized

 

 

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1no more than 10 years before the filing of an application for
2an Agreement and that has never had any Illinois income tax
3liability. For the purpose of determining whether the taxpayer
4has had any Illinois income tax liability, the Illinois income
5tax liability of a Related Member shall not be attributed to
6the startup taxpayer.
7    "Taxpayer" means an individual, corporation, partnership,
8or other entity that has any Illinois Income Tax liability.
9    Until July 1, 2022, "underserved area" means a geographic
10area that meets one or more of the following conditions:
11        (1) the area has a poverty rate of at least 20%
12    according to the latest federal decennial census;
13        (2) 75% or more of the children in the area
14    participate in the federal free lunch program according to
15    reported statistics from the State Board of Education;
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    On and after July 1, 2022, "underserved area" means a
26geographic area that meets one or more of the following

 

 

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1conditions:
2        (1) the area has a poverty rate of at least 20%
3    according to the latest American Community Survey;
4        (2) 35% or more of the families with children in the
5    area are living below 130% of the poverty line, according
6    to the latest American Community Survey;
7        (3) at least 20% of the households in the area receive
8    assistance under the Supplemental Nutrition Assistance
9    Program (SNAP); or
10        (4) the area has an average unemployment rate, as
11    determined by the Illinois Department of Employment
12    Security, that is more than 120% of the national
13    unemployment average, as determined by the U.S. Department
14    of Labor, for a period of at least 2 consecutive calendar
15    years preceding the date of the application.
16(Source: P.A. 102-330, eff. 1-1-22; 102-700, eff. 4-19-22;
17102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
 
18    (35 ILCS 10/5-15)
19    Sec. 5-15. Tax Credit Awards. Subject to the conditions
20set forth in this Act, a Taxpayer is entitled to a Credit
21against or, as described in subsection (g) of this Section, a
22payment towards taxes imposed pursuant to subsections (a) and
23(b) of Section 201 of the Illinois Income Tax Act that may be
24imposed on the Taxpayer for a taxable year beginning on or
25after January 1, 1999, if the Taxpayer is awarded a Credit by

 

 

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1the Department under this Act for that taxable year.
2    (a) The Department shall make Credit awards under this Act
3to foster job creation and retention in Illinois.
4    (b) A person that proposes a project to create new jobs in
5Illinois must enter into an Agreement with the Department for
6the Credit under this Act.
7    (c) The Credit shall be claimed for the taxable years
8specified in the Agreement.
9    (d) The Credit shall not exceed the Incremental Income Tax
10attributable to the project that is the subject of the
11Agreement.
12    (e) Nothing herein shall prohibit a Tax Credit Award to an
13Applicant that uses a PEO if all other award criteria are
14satisfied.
15    (f) In lieu of the Credit allowed under this Act against
16the taxes imposed pursuant to subsections (a) and (b) of
17Section 201 of the Illinois Income Tax Act for any taxable year
18ending on or after December 31, 2009, for Taxpayers that
19entered into Agreements prior to January 1, 2015 and otherwise
20meet the criteria set forth in this subsection (f), the
21Taxpayer may elect to claim the Credit against its obligation
22to pay over withholding under Section 704A of the Illinois
23Income Tax Act.
24        (1) The election under this subsection (f) may be made
25    only by a Taxpayer that (i) is primarily engaged in one of
26    the following business activities: water purification and

 

 

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1    treatment, motor vehicle metal stamping, automobile
2    manufacturing, automobile and light duty motor vehicle
3    manufacturing, motor vehicle manufacturing, light truck
4    and utility vehicle manufacturing, heavy duty truck
5    manufacturing, motor vehicle body manufacturing, cable
6    television infrastructure design or manufacturing, or
7    wireless telecommunication or computing terminal device
8    design or manufacturing for use on public networks and
9    (ii) meets the following criteria:
10            (A) the Taxpayer (i) had an Illinois net loss or an
11        Illinois net loss deduction under Section 207 of the
12        Illinois Income Tax Act for the taxable year in which
13        the Credit is awarded, (ii) employed a minimum of
14        1,000 full-time employees in this State during the
15        taxable year in which the Credit is awarded, (iii) has
16        an Agreement under this Act on December 14, 2009 (the
17        effective date of Public Act 96-834), and (iv) is in
18        compliance with all provisions of that Agreement;
19            (B) the Taxpayer (i) had an Illinois net loss or an
20        Illinois net loss deduction under Section 207 of the
21        Illinois Income Tax Act for the taxable year in which
22        the Credit is awarded, (ii) employed a minimum of
23        1,000 full-time employees in this State during the
24        taxable year in which the Credit is awarded, and (iii)
25        has applied for an Agreement within 365 days after
26        December 14, 2009 (the effective date of Public Act

 

 

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1        96-834);
2            (C) the Taxpayer (i) had an Illinois net operating
3        loss carryforward under Section 207 of the Illinois
4        Income Tax Act in a taxable year ending during
5        calendar year 2008, (ii) has applied for an Agreement
6        within 150 days after the effective date of this
7        amendatory Act of the 96th General Assembly, (iii)
8        creates at least 400 new jobs in Illinois, (iv)
9        retains at least 2,000 jobs in Illinois that would
10        have been at risk of relocation out of Illinois over a
11        10-year period, and (v) makes a capital investment of
12        at least $75,000,000;
13            (D) the Taxpayer (i) had an Illinois net operating
14        loss carryforward under Section 207 of the Illinois
15        Income Tax Act in a taxable year ending during
16        calendar year 2009, (ii) has applied for an Agreement
17        within 150 days after the effective date of this
18        amendatory Act of the 96th General Assembly, (iii)
19        creates at least 150 new jobs, (iv) retains at least
20        1,000 jobs in Illinois that would have been at risk of
21        relocation out of Illinois over a 10-year period, and
22        (v) makes a capital investment of at least
23        $57,000,000; or
24            (E) the Taxpayer (i) employed at least 2,500
25        full-time employees in the State during the year in
26        which the Credit is awarded, (ii) commits to make at

 

 

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1        least $500,000,000 in combined capital improvements
2        and project costs under the Agreement, (iii) applies
3        for an Agreement between January 1, 2011 and June 30,
4        2011, (iv) executes an Agreement for the Credit during
5        calendar year 2011, and (v) was incorporated no more
6        than 5 years before the filing of an application for an
7        Agreement.
8        (1.5) The election under this subsection (f) may also
9    be made by a Taxpayer for any Credit awarded pursuant to an
10    agreement that was executed between January 1, 2011 and
11    June 30, 2011, if the Taxpayer (i) is primarily engaged in
12    the manufacture of inner tubes or tires, or both, from
13    natural and synthetic rubber, (ii) employs a minimum of
14    2,400 full-time employees in Illinois at the time of
15    application, (iii) creates at least 350 full-time jobs and
16    retains at least 250 full-time jobs in Illinois that would
17    have been at risk of being created or retained outside of
18    Illinois, and (iv) makes a capital investment of at least
19    $200,000,000 at the project location.
20        (1.6) The election under this subsection (f) may also
21    be made by a Taxpayer for any Credit awarded pursuant to an
22    agreement that was executed within 150 days after the
23    effective date of this amendatory Act of the 97th General
24    Assembly, if the Taxpayer (i) is primarily engaged in the
25    operation of a discount department store, (ii) maintains
26    its corporate headquarters in Illinois, (iii) employs a

 

 

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1    minimum of 4,250 full-time employees at its corporate
2    headquarters in Illinois at the time of application, (iv)
3    retains at least 4,250 full-time jobs in Illinois that
4    would have been at risk of being relocated outside of
5    Illinois, (v) had a minimum of $40,000,000,000 in total
6    revenue in 2010, and (vi) makes a capital investment of at
7    least $300,000,000 at the project location.
8        (1.7) Notwithstanding any other provision of law, the
9    election under this subsection (f) may also be made by a
10    Taxpayer for any Credit awarded pursuant to an agreement
11    that was executed or applied for on or after July 1, 2011
12    and on or before March 31, 2012, if the Taxpayer is
13    primarily engaged in the manufacture of original and
14    aftermarket filtration parts and products for automobiles,
15    motor vehicles, light duty motor vehicles, light trucks
16    and utility vehicles, and heavy duty trucks, (ii) employs
17    a minimum of 1,000 full-time employees in Illinois at the
18    time of application, (iii) creates at least 250 full-time
19    jobs in Illinois, (iv) relocates its corporate
20    headquarters to Illinois from another state, and (v) makes
21    a capital investment of at least $4,000,000 at the project
22    location.
23        (1.8) Notwithstanding any other provision of law, the
24    election under this subsection (f) may also be made by a
25    startup taxpayer for any Credit awarded pursuant to an
26    Agreement that was executed on or after the effective date

 

 

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1    of this amendatory Act of the 102nd General Assembly. Any
2    such election under this paragraph (1.8) shall be
3    effective unless and until such startup taxpayer has any
4    Illinois income tax liability. This election under this
5    paragraph (1.8) shall automatically terminate when the
6    startup taxpayer has any Illinois income tax liability at
7    the end of any taxable year during the term of the
8    Agreement. Thereafter, the startup taxpayer may receive a
9    Credit, taking into account any benefits previously
10    enjoyed or received by way of the election under this
11    paragraph (1.8), so long as the startup taxpayer remains
12    in compliance with the terms and conditions of the
13    Agreement.
14        (1.9) Notwithstanding any other provision of law, the
15    election under this subsection (f) may also be made by an
16    applicant qualified under paragraph (1.7) of subsection
17    (b) of Section 5-20 for any Credit awarded pursuant to an
18    Agreement that was executed on or after the effective date
19    of this amendatory Act of the 103rd General Assembly. Any
20    such election under this paragraph (1.9) shall be
21    effective unless and until such taxpayer has any Illinois
22    income tax liability. This election under this paragraph
23    (1.9) shall automatically terminate when the taxpayer has
24    any Illinois income tax liability at the end of any
25    taxable year during the term of the Agreement. Thereafter,
26    the startup taxpayer may receive a Credit, taking into

 

 

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1    account any benefits previously enjoyed or received by way
2    of the election under this paragraph (1.9), so long as the
3    startup taxpayer remains in compliance with the terms and
4    conditions of the Agreement.
5        (2) An election under this subsection shall allow the
6    credit to be taken against payments otherwise due under
7    Section 704A of the Illinois Income Tax Act during the
8    first calendar quarter beginning after the end of the
9    taxable quarter in which the credit is awarded under this
10    Act.
11        (3) The election shall be made in the form and manner
12    required by the Illinois Department of Revenue and, once
13    made, shall be irrevocable.
14        (4) If a Taxpayer who meets the requirements of
15    subparagraph (A) of paragraph (1) of this subsection (f)
16    elects to claim the Credit against its withholdings as
17    provided in this subsection (f), then, on and after the
18    date of the election, the terms of the Agreement between
19    the Taxpayer and the Department may not be further amended
20    during the term of the Agreement.
21    (g) A pass-through entity that has been awarded a credit
22under this Act, its shareholders, or its partners may treat
23some or all of the credit awarded pursuant to this Act as a tax
24payment for purposes of the Illinois Income Tax Act. The term
25"tax payment" means a payment as described in Article 6 or
26Article 8 of the Illinois Income Tax Act or a composite payment

 

 

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1made by a pass-through entity on behalf of any of its
2shareholders or partners to satisfy such shareholders' or
3partners' taxes imposed pursuant to subsections (a) and (b) of
4Section 201 of the Illinois Income Tax Act. In no event shall
5the amount of the award credited pursuant to this Act exceed
6the Illinois income tax liability of the pass-through entity
7or its shareholders or partners for the taxable year.
8(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
9    (35 ILCS 10/5-20)
10    Sec. 5-20. Application for a project to create and retain
11new jobs.
12    (a) Any Taxpayer proposing a project located or planned to
13be located in Illinois may request consideration for
14designation of its project, by formal written letter of
15request or by formal application to the Department, in which
16the Applicant states its intent to make at least a specified
17level of investment and intends to hire or retain a specified
18number of full-time employees at a designated location in
19Illinois. As circumstances require, the Department may require
20a formal application from an Applicant and a formal letter of
21request for assistance.
22    (b) In order to qualify for Credits under this Act, an
23Applicant's project must:
24        (1) if the Applicant has more than 100 employees,
25    involve an investment of at least $2,500,000 in capital

 

 

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1    improvements to be placed in service within the State as a
2    direct result of the project; if the Applicant has 100 or
3    fewer employees, then there is no capital investment
4    requirement;
5        (1.5) if the Applicant has more than 100 employees,
6    employ a number of new employees in the State equal to the
7    lesser of (A) 10% of the number of full-time employees
8    employed by the applicant world-wide on the date the
9    application is filed with the Department or (B) 50 New
10    Employees; and, if the Applicant has 100 or fewer
11    employees, employ a number of new employees in the State
12    equal to the lesser of (A) 5% of the number of full-time
13    employees employed by the applicant world-wide on the date
14    the application is filed with the Department or (B) 50 New
15    Employees;
16        (1.6) if the Applicant is a startup taxpayer, the
17    employees employed by Related Members shall not be
18    attributed to the Applicant for purposes of determining
19    the capital investment or job creation requirements under
20    this subsection (b);
21        (1.7) if the agreement is entered into on or after the
22    effective date of this amendatory Act of the 103rd General
23    Assembly and the Applicant's project:
24            (A) makes an investment of at least $50,000,000 in
25        capital improvements at the project site;
26            (B) is placed in service after approval of the

 

 

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1        application; and
2            (C) creates jobs for at least 100 new full-time
3        employees.
4        (2) (blank);
5        (3) (blank); and
6        (4) include an annual sexual harassment policy report
7    as provided under Section 5-58.
8    (c) After receipt of an application, the Department may
9enter into an Agreement with the Applicant if the application
10is accepted in accordance with Section 5-25.
11(Source: P.A. 101-81, eff. 7-12-19; 102-700, eff. 4-19-22.)
 
12    (35 ILCS 10/5-35)
13    Sec. 5-35. Relocation of jobs in Illinois. A taxpayer is
14not entitled to claim the credit provided by this Act with
15respect to any jobs that the taxpayer relocates from one site
16in Illinois unless the taxpayer has agreed to hire the minimum
17number of new employees and the Department has determined that
18the expansion cannot reasonably be accommodated within the
19municipality in which the business is located to another site
20in Illinois. A taxpayer with respect to a qualifying project
21certified under the Corporate Headquarters Relocation Act,
22however, is not subject to the requirements of this Section
23but is nevertheless considered an applicant for purposes of
24this Act. Moreover, any full-time employee of an eligible
25business relocated to Illinois in connection with that

 

 

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1qualifying project is deemed to be a new employee for purposes
2of this Act. Determinations under this Section shall be made
3by the Department.
4(Source: P.A. 91-476, eff. 8-11-99; 92-207, eff. 8-1-01.)
 
5    (35 ILCS 10/5-45)
6    Sec. 5-45. Amount and duration of the credit.
7    (a) The Department shall determine the amount and duration
8of the credit awarded under this Act. The duration of the
9credit may not exceed 10 taxable years for projects qualified
10under paragraph (1), (1.5), or (1.6) of subsection (b) of
11Section 5-20 or 15 taxable years for projects qualified under
12paragraph (1.7) of subsection (b) of Section 5-20. The credit
13may be stated as a percentage of the Incremental Income Tax
14attributable to the applicant's project and may include a
15fixed dollar limitation.
16    (b) Notwithstanding subsection (a), and except as the
17credit may be applied in a carryover year pursuant to Section
18211(4) of the Illinois Income Tax Act, the credit may be
19applied against the State income tax liability in more than 10
20taxable years but not in more than 15 taxable years for an
21eligible business that (i) qualifies under this Act and the
22Corporate Headquarters Relocation Act and has in fact
23undertaken a qualifying project within the time frame
24specified by the Department of Commerce and Economic
25Opportunity under that Act, and (ii) applies against its State

 

 

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1income tax liability, during the entire 15-year period, no
2more than 60% of the maximum credit per year that would
3otherwise be available under this Act.
4    (c) Nothing in this Section shall prevent the Department,
5in consultation with the Department of Revenue, from adopting
6rules to extend the sunset of any earned, existing, and unused
7tax credit or credits a taxpayer may be in possession of, as
8provided for in Section 605-1070 of the Department of Commerce
9and Economic Opportunity Law of the Civil Administrative Code
10of Illinois, notwithstanding the carry-forward provisions
11pursuant to paragraph (4) of Section 211 of the Illinois
12Income Tax Act.
13(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
 
14    (35 ILCS 10/5-56)
15    Sec. 5-56. Annual report. Certified payroll. Annually,
16until construction is completed, a company seeking New
17Construction EDGE Credits shall submit a report that, at a
18minimum, describes the projected project scope, timeline, and
19anticipated budget. Once the project has commenced, the annual
20report shall include actual data for the prior year as well as
21projections for each additional year through completion of the
22project. The Department shall issue detailed reporting
23guidelines prescribing the requirements of construction
24related reports. In order to receive credit for construction
25expenses, the company must provide the Department with

 

 

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

 

 

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1            (G) the worker's number of hours worked each day;
2            (H) the worker's starting and ending times of work
3        each day;
4            (I) the worker's hourly wage rate; and
5            (J) the worker's hourly overtime wage rate; and
6        (2) no later than the 15th day of each calendar month,
7    provide a certified payroll for the immediately preceding
8    month to the taxpayer in charge of the project; within 5
9    business days after receiving the certified payroll, the
10    taxpayer shall file the certified payroll with the
11    Department of Labor and the Department of Commerce and
12    Economic Opportunity; a certified payroll must be filed
13    for only those calendar months during which construction
14    on a New Construction EDGE Project has occurred; the
15    certified payroll shall consist of a complete copy of the
16    records identified in paragraph (1), but may exclude the
17    starting and ending times of work each day; the certified
18    payroll shall be accompanied by a statement signed by the
19    contractor or subcontractor or an officer, employee, or
20    agent of the 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 Section,
6and any officer, employee, or agent of such contractor or
7subcontractor whose duty as an officer, employee, or agent it
8is to file a certified payroll under this Section, who
9willfully fails to file such a certified payroll on or before
10the date such certified payroll is required to be filed and any
11person who willfully files a false certified payroll that is
12false as to any material fact is in violation of this Act and
13guilty of a Class A misdemeanor.
14    The taxpayer in charge of the project shall keep the
15records submitted in accordance with this Section on or after
16June 5, 2019 (the effective date of Public Act 101-9) for a
17period of 5 years from the date of the last payment for work on
18a contract or subcontract for the project.
19    The records submitted in accordance with this Section
20shall be considered public records, except an employee's
21address, telephone number, and social security number, and
22made available in accordance with the Freedom of Information
23Act. The Department of Labor shall accept any reasonable
24submissions by the contractor that meet the requirements of
25this Section and shall share the information with the
26Department in order to comply with the awarding of New

 

 

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1Construction EDGE Credits. A contractor, subcontractor, or
2public body may retain records required under this Section in
3paper or electronic format.
4    Upon 7 business days' notice, the taxpayer contractor and
5each subcontractor shall make available for inspection and
6copying at a location within this State during reasonable
7hours, the records identified in paragraph (1) of this Section
8to the taxpayer in charge of the project, its officers and
9agents, the Director of Labor and his or her deputies and
10agents, and to federal, State, or local law enforcement
11agencies and prosecutors.
12(Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
 
13    Section 27. The Film Production Services Tax Credit Act of
142008 is amended by changing Sections 10 and 46 as follows:
 
15    (35 ILCS 16/10)
16    Sec. 10. Definitions. As used in this Act:
17    "Accredited production" means: (i) for productions
18commencing before May 1, 2006, a film, video, or television
19production that has been certified by the Department in which
20the aggregate Illinois labor expenditures included in the cost
21of the production, in the period that ends 12 months after the
22time principal filming or taping of the production began,
23exceed $100,000 for productions of 30 minutes or longer, or
24$50,000 for productions of less than 30 minutes; and (ii) for

 

 

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1productions commencing on or after May 1, 2006, a film, video,
2or television production that has been certified by the
3Department in which the Illinois production spending included
4in the cost of production in the period that ends 12 months
5after the time principal filming or taping of the production
6began exceeds $100,000 for productions of 30 minutes or longer
7or exceeds $50,000 for productions of less than 30 minutes.
8"Accredited production" does not include a production that:
9        (1) is news, current events, or public programming, or
10    a program that includes weather or market reports;
11        (2) is a talk show produced for local or regional
12    markets;
13        (3) (blank); is a production in respect of a game,
14    questionnaire, or contest;
15        (4) is a sports event or activity;
16        (5) is a gala presentation or awards show;
17        (6) is a finished production that solicits funds;
18        (7) is a production produced by a film production
19    company if records, as required by 18 U.S.C. 2257, are to
20    be maintained by that film production company with respect
21    to any performer portrayed in that single media or
22    multimedia program; or
23        (8) is a production produced primarily for industrial,
24    corporate, or institutional purposes.
25    "Accredited animated production" means an accredited
26production in which movement and characters' performances are

 

 

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1created using a frame-by-frame technique and a significant
2number of major characters are animated. Motion capture by
3itself is not an animation technique.
4    "Accredited production certificate" means a certificate
5issued by the Department certifying that the production is an
6accredited production that meets the guidelines of this Act.
7    "Applicant" means a taxpayer that is a film production
8company that is operating or has operated an accredited
9production located within the State of Illinois and that (i)
10owns the copyright in the accredited production throughout the
11Illinois production period or (ii) has contracted directly
12with the owner of the copyright in the accredited production
13or a person acting on behalf of the owner to provide services
14for the production, where the owner of the copyright is not an
15eligible production corporation.
16    "Credit" means:
17        (1) for an accredited production approved by the
18    Department on or before January 1, 2005 and commencing
19    before May 1, 2006, the amount equal to 25% of the Illinois
20    labor expenditure approved by the Department. The
21    applicant is deemed to have paid, on its balance due day
22    for the year, an amount equal to 25% of its qualified
23    Illinois labor expenditure for the tax year. For Illinois
24    labor expenditures generated by the employment of
25    residents of geographic areas of high poverty or high
26    unemployment, as determined by the Department, in an

 

 

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1    accredited production commencing before May 1, 2006 and
2    approved by the Department after January 1, 2005, the
3    applicant shall receive an enhanced credit of 10% in
4    addition to the 25% credit; and
5        (2) for an accredited production commencing on or
6    after May 1, 2006 and before January 1, 2009, the amount
7    equal to:
8            (i) 20% of the Illinois production spending for
9        the taxable year; plus
10            (ii) 15% of the Illinois labor expenditures
11        generated by the employment of residents of geographic
12        areas of high poverty or high unemployment, as
13        determined by the Department; and
14        (3) for an accredited production commencing on or
15    after January 1, 2009, the amount equal to:
16            (i) 30% of the Illinois production spending for
17        the taxable year; plus
18            (ii) 15% of the Illinois labor expenditures
19        generated by the employment of residents of geographic
20        areas of high poverty or high unemployment, as
21        determined by the Department.
22    "Department" means the Department of Commerce and Economic
23Opportunity.
24    "Director" means the Director of Commerce and Economic
25Opportunity.
26    "Illinois labor expenditure" means salary or wages paid to

 

 

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1employees of the applicant for services on the accredited
2production.
3    To qualify as an Illinois labor expenditure, the
4expenditure must be:
5        (1) Reasonable in the circumstances.
6        (2) Included in the federal income tax basis of the
7    property.
8        (3) Incurred by the applicant for services on or after
9    January 1, 2004.
10        (4) Incurred for the production stages of the
11    accredited production, from the final script stage to the
12    end of the post-production stage.
13        (5) Limited to the first $25,000 of wages paid or
14    incurred to each employee of a production commencing
15    before May 1, 2006 and the first $100,000 of wages paid or
16    incurred to each employee of a production commencing on or
17    after May 1, 2006 and prior to July 1, 2022. For
18    productions commencing on or after July 1, 2022, limited
19    to the first $500,000 of wages paid or incurred to each
20    eligible nonresident or resident employee of a production
21    company or loan out company that provides in-State
22    services to a production, whether those wages are paid or
23    incurred by the production company, loan out company, or
24    both, subject to withholding payments provided for in
25    Article 7 of the Illinois Income Tax Act. For purposes of
26    calculating Illinois labor expenditures for a television

 

 

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1    series, the eligible nonresident wage limitations provided
2    under this subparagraph are applied to the entire season.
3    For the purpose of this paragraph (5), an eligible
4    nonresident is a nonresident whose wages qualify as an
5    Illinois labor expenditure under the provisions of
6    paragraph (9) that apply to that production.
7        (6) For a production commencing before May 1, 2006,
8    exclusive of the salary or wages paid to or incurred for
9    the 2 highest paid employees of the production.
10        (7) Directly attributable to the accredited
11    production.
12        (8) (Blank).
13        (9) Prior to July 1, 2022, paid to persons resident in
14    Illinois at the time the payments were made. For a
15    production commencing on or after July 1, 2022, paid to
16    persons resident in Illinois and nonresidents at the time
17    the payments were made.
18        For purposes of this subparagraph, if the production
19    is accredited by the Department before the effective date
20    of this amendatory Act of the 102nd General Assembly, only
21    wages paid to nonresidents working in the following
22    positions shall be considered Illinois labor expenditures:
23    Writer, Director, Director of Photography, Production
24    Designer, Costume Designer, Production Accountant, VFX
25    Supervisor, Editor, Composer, and Actor, subject to the
26    limitations set forth under this subparagraph. For an

 

 

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1    accredited Illinois production spending of $25,000,000 or
2    less, no more than 2 nonresident actors' wages shall
3    qualify as an Illinois labor expenditure. For an
4    accredited production with Illinois production spending of
5    more than $25,000,000, no more than 4 nonresident actor's
6    wages shall qualify as Illinois labor expenditures.
7        For purposes of this subparagraph, if the production
8    is accredited by the Department on or after the effective
9    date of this amendatory Act of the 102nd General Assembly,
10    wages paid to nonresidents shall qualify as Illinois labor
11    expenditures only under the following conditions:
12            (A) the nonresident must be employed in a
13        qualified position;
14            (B) for each of those accredited productions, the
15        wages of not more than 9 nonresidents who are employed
16        in a qualified position other than Actor shall qualify
17        as Illinois labor expenditures;
18            (C) for an accredited production with Illinois
19        production spending of $25,000,000 or less, no more
20        than 2 nonresident actors' wages shall qualify as
21        Illinois labor expenditures; and
22            (D) for an accredited production with Illinois
23        production spending of more than $25,000,000, no more
24        than 4 nonresident actors' wages shall qualify as
25        Illinois labor expenditures.
26        As used in this paragraph (9), "qualified position"

 

 

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1    means: Writer, Director, Director of Photography,
2    Production Designer, Costume Designer, Production
3    Accountant, VFX Supervisor, Editor, Composer, or Actor.
4        (10) Paid for services rendered in Illinois.
5    "Illinois production spending" means the expenses incurred
6by the applicant for an accredited production, but does not
7include any monetary prize or the cost of any non-monetary
8prize awarded pursuant to a production in respect of a game,
9questionnaire, or contest. "Illinois production spending"
10includes, including, without limitation, all of the following:
11        (1) expenses to purchase, from vendors within
12    Illinois, tangible personal property that is used in the
13    accredited production;
14        (2) expenses to acquire services, from vendors in
15    Illinois, for film production, editing, or processing; and
16        (3) for a production commencing before July 1, 2022,
17    the compensation, not to exceed $100,000 for any one
18    employee, for contractual or salaried employees who are
19    Illinois residents performing services with respect to the
20    accredited production. For a production commencing on or
21    after July 1, 2022, the compensation, not to exceed
22    $500,000 for any one employee, for contractual or salaried
23    employees who are Illinois residents or nonresident
24    employees, subject to the limitations set forth under
25    Section 10 of this Act.
26    "Loan out company" means a personal service corporation or

 

 

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1other entity that is under contract with the taxpayer to
2provide specified individual personnel, such as artists, crew,
3actors, producers, or directors for the performance of
4services used directly in a production. "Loan out company"
5does not include entities contracted with by the taxpayer to
6provide goods or ancillary contractor services such as
7catering, construction, trailers, equipment, or
8transportation.
9    "Qualified production facility" means stage facilities in
10the State in which television shows and films are or are
11intended to be regularly produced and that contain at least
12one sound stage of at least 15,000 square feet.
13    Rulemaking authority to implement Public Act 95-1006, if
14any, is conditioned on the rules being adopted in accordance
15with all provisions of the Illinois Administrative Procedure
16Act and all rules and procedures of the Joint Committee on
17Administrative Rules; any purported rule not so adopted, for
18whatever reason, is unauthorized.
19(Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22;
20102-1125, eff. 2-3-23.)
 
21    (35 ILCS 16/46)
22    Sec. 46. Illinois Production Workforce Development Fund.
23    (a) The Illinois Production Workforce Development Fund is
24created as a special fund in the State Treasury. Beginning
25July 1, 2023 July 1, 2022, amounts paid to the Department of

 

 

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1Commerce and Economic Opportunity pursuant to Section 213 of
2the Illinois Income Tax Act shall be deposited into the Fund.
3The Fund shall be used exclusively to provide grants to
4community-based organizations, labor organizations, private
5and public universities, community colleges, and other
6organizations and institutions that may be deemed appropriate
7by the Department to administer workforce training programs
8that support efforts to recruit, hire, promote, retain,
9develop, and train a diverse and inclusive workforce in the
10film industry.
11    (b) Pursuant to Section 213 of the Illinois Income Tax
12Act, taxpayers who have been awarded a tax credit under this
13Act shall pay to the Department of Commerce and Economic
14Opportunity, after determination of the tax credit amount but
15prior to the issuance of a tax credit certificate, a fee equal
16to 2.5% of the credit amount awarded to the taxpayer under the
17Film Production Services Tax Credit Act of 2008 that is
18attributable to wages paid to nonresidents, as described in
19Section 10 of the Film Production Services Tax Credit Act of
202008, and an additional fee equal to 0.25% of the amount
21generated by subtracting the credit amount awarded to the
22taxpayer under the Film Production Services Tax Credit Act of
232008 that is attributable to wages paid to nonresidents from
24the total credit amount awarded to the taxpayer under that
25Act. All fees collected under this subsection shall be
26deposited into the Illinois Production Workforce Development

 

 

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1Fund. No tax credit certificate shall be issued by the
2Department of Commerce and Economic Opportunity until the
3total fees owed according to this subsection have been
4received by the Department of Commerce and Economic
5Opportunity. the Fund shall receive deposits in amounts not to
6exceed 0.25% of the amount of each credit certificate issued
7that is not calculated on out-of-state wages and transferred
8or claimed on an Illinois tax return in the quarter such credit
9was transferred or claimed. In addition, such amount shall
10also include 2.5% of the credit amount calculated on wages
11paid to nonresidents that is transferred or claimed on an
12Illinois tax return in the quarter such credit was transferred
13or claimed.
14    (c) At the request of the Department, the State
15Comptroller and the State Treasurer may advance amounts to the
16Fund on an annual basis not to exceed $1,000,000 in any fiscal
17year. The fund from which the moneys are advanced shall be
18reimbursed in the same fiscal year for any such advance
19payments as described in this Section. The method of
20reimbursement shall be set forth in rules.
21    (d) Of the appropriated funds in a given fiscal year, 50%
22of the appropriated funds shall be reserved for organizations
23that meet one of the following criteria. The organization is:
24(1) a minority-owned business, as defined by the Business
25Enterprise for Minorities, Women, and Persons with
26Disabilities Act; (2) located in an underserved area, as

 

 

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1defined by the Economic Development for a Growing Economy Tax
2Credit Act; or (3) on an annual basis, training a cohort of
3program participants where at least 50% of the program
4participants are either a minority person, as defined by the
5Business Enterprise for Minorities, Women, and Persons with
6Disabilities Act, or reside in an underserved area, as defined
7by the Economic Development for a Growing Economy Tax Credit
8Act.
9    (e) The Illinois Production Workforce Development Fund
10shall be administered by the Department. The Department may
11adopt rules necessary to administer the provisions of this
12Section.
13    (f) Notwithstanding any other law to the contrary, the
14Illinois Production Workforce Development Fund is not subject
15to sweeps, administrative charge-backs, or any other fiscal or
16budgetary maneuver that would in any way transfer any amounts
17from the Illinois Production Workforce Development Fund.
18    (g) By June 30 of each fiscal year, the Department must
19submit to the General Assembly a report that includes the
20following information: (1) an identification of the
21organizations and institutions that received funding to
22administer workforce training programs during the fiscal year;
23(2) the number of total persons trained and the number of
24persons trained per workforce training program in the fiscal
25year; and (3) in the aggregate, per organization, the number
26of persons identified as a minority person or that reside in an

 

 

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1underserved area that received training in the fiscal year.
2(Source: P.A. 102-700, eff. 4-19-22.)
 
3    Section 30. The Manufacturing Illinois Chips for Real
4Opportunity (MICRO) Act is amended by changing Sections 110-5,
5110-10, 110-20, 110-35, 110-65, and 110-95 as follows:
 
6    (35 ILCS 45/110-5)
7    Sec. 110-5. Purpose. It is the intent of the General
8Assembly that Illinois should lead the nation in the
9production of quantum computers and the production of
10semiconductors and microchips as they become even more
11prevalent in everyday life. The General Assembly finds that,
12through investments in quantum computing and semiconductors
13and microchips, Illinois will be on the forefront of the
14quantum computing industry and the forefront of reshoring
15semiconductor and microchip production that fuels modern
16technologies that are essential to the operation of computers,
17phones, vehicles and the any electric products product that
18have become essential to modern life. This Act will create
19good paying jobs, and generate long-term economic investment
20in the Illinois business economy, in addition to ensuring a
21vital product is made in the United States. Illinois must
22aggressively adopt new business development investment tools
23so that Illinois can compete with domestic and foreign
24competitors for quantum computer manufacturing and

 

 

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1semiconductor and chip manufacturing.
2(Source: P.A. 102-700, eff. 4-19-22.)
 
3    (35 ILCS 45/110-10)
4    Sec. 110-10. Definitions. As used in this Act:
5    "Agreement" means the agreement between a taxpayer and the
6Department under the provisions of this Act.
7    "Applicant" means a taxpayer that: (i) operates a business
8in Illinois as a quantum computer manufacturer, a
9semiconductor manufacturer, a microchip manufacturer, or a
10manufacturer of quantum computer, semiconductor, or microchip
11component parts or a business in Illinois that primarily
12engages in research and development in the manufacturing of
13quantum computers, semiconductors, or microchips; or (ii) is
14planning to locate a business within the State of Illinois as a
15quantum computer manufacturer, a semiconductor manufacturer, a
16microchip manufacturer, or a manufacturer of quantum computer,
17semiconductor, or microchip component parts or a business
18within the State of Illinois that primarily engages in
19research and development in the manufacturing of quantum
20computers, semiconductors, or microchips. For the purposes of
21this definition, a business primarily engages in research and
22development in the manufacturing of quantum computers,
23semiconductors, or microchips if at least 50% of its business
24activities involve research and development in the
25manufacturing of quantum computers, semiconductors, or

 

 

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1microchips. "Applicant" does not include a taxpayer who closes
2or substantially reduces by more than 50% operations at one
3location in the State and relocates substantially the same
4operation to another location in the State. This does not
5prohibit a taxpayer from expanding its operations at another
6location in the State. This also does not prohibit a taxpayer
7from moving its operations from one location in the State to
8another location in the State for the purpose of expanding the
9operation, provided that the Department determines that
10expansion cannot reasonably be accommodated within the
11municipality or county in which the business is located, or,
12in the case of a business located in an incorporated area of
13the county, within the county in which the business is
14located, after conferring with the chief elected official of
15the municipality or county and taking into consideration any
16evidence offered by the municipality or county regarding the
17ability to accommodate expansion within the municipality or
18county.
19    "Capital improvements" means the purchase, renovation,
20rehabilitation, or construction of permanent tangible land,
21buildings, structures, equipment, and furnishings in an
22approved project sited in Illinois and expenditures for goods
23or services that are normally capitalized, including
24organizational costs and research and development costs
25incurred in Illinois. For land, buildings, structures, and
26equipment that are leased, the lease must equal or exceed the

 

 

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1term of the agreement, and the cost of the property shall be
2determined from the present value, using the corporate
3interest rate prevailing at the time of the application, of
4the lease payments.
5    "Credit" or "MICRO credit" means a credit agreed to
6between the Department and applicant under this Act.
7    "Department" means the Department of Commerce and Economic
8Opportunity.
9    "Director" means the Director of Commerce and Economic
10Opportunity.
11    "Energy Transition Area" means a county with less than
12100,000 people or a municipality that contains one or more of
13the following:
14        (1) a fossil fuel plant that was retired from service
15    or has significant reduced service within 6 years before
16    the time of the application or will be retired or have
17    service significantly reduced within 6 years following the
18    time of the application; or
19        (2) a coal mine that was closed or had operations
20    significantly reduced within 6 years before the time of
21    the application or is anticipated to be closed or have
22    operations significantly reduced within 6 years following
23    the time of the application.
24    "Full-time employee" means an individual who is employed
25for consideration for at least 35 hours each week or who
26renders any other standard of service generally accepted by

 

 

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1industry custom or practice as full-time employment. An
2individual for whom a W-2 is issued by a Professional Employer
3Organization (PEO) is a full-time employee if employed in the
4service of the applicant for consideration for at least 35
5hours each week.
6    "Incremental income tax" means the total amount withheld
7during the taxable year from the compensation of new employees
8and, if applicable, retained employees under Article 7 of the
9Illinois Income Tax Act arising from employment at a project
10that is the subject of an agreement.
11    "Institution of higher education" or "institution" means
12any accredited public or private university, college,
13community college, business, technical, or vocational school,
14or other accredited educational institution offering degrees
15and instruction beyond the secondary school level.
16    "MICRO construction jobs credit" means a credit agreed to
17between the Department and the applicant under this Act that
18is based on the incremental income tax attributable to
19construction wages paid in connection with construction of the
20project facilities.
21    "MICRO credit" means a credit agreed to between the
22Department and the applicant under this Act that is based on
23the incremental income tax attributable to new employees and,
24if applicable, retained employees, and on training costs for
25such employees at the applicant's project.
26    "Microchip" means a wafer of semiconducting material that

 

 

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1is less than 15 millimeters long and less than 5 millimeters
2wide and is used to make an integrated circuit.
3    "Microchip manufacturer" means a new or existing
4manufacturer that is focused on reequipping, expanding, or
5establishing a manufacturing facility in Illinois that
6produces microchips or key components that directly support
7the functions of microchips.
8    "Minority person" means a minority person as defined in
9the Business Enterprise for Minorities, Women, and Persons
10with Disabilities Act.
11    "New employee" means a newly-hired full-time employee
12employed to work at the project site and whose work is directly
13related to the project.
14    "Noncompliance date" means, in the case of a taxpayer that
15is not complying with the requirements of the agreement or the
16provisions of this Act, the day following the last date upon
17which the taxpayer was in compliance with the requirements of
18the agreement and the provisions of this Act, as determined by
19the Director.
20    "Pass-through entity" means an entity that is exempt from
21the tax under subsection (b) or (c) of Section 205 of the
22Illinois Income Tax Act.
23    "Placed in service" means the state or condition of
24readiness, availability for a specifically assigned function,
25and the facility is constructed and ready to conduct its
26facility operations to manufacture goods.

 

 

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1    "Professional employer organization" (PEO) means an
2employee leasing company, as defined in Section 206.1 of the
3Illinois Unemployment Insurance Act.
4    "Program" means the Manufacturing Illinois Chips for Real
5Opportunity (MICRO) program established in this Act.
6    "Project" means a for-profit economic development activity
7for the manufacture of quantum computers, semiconductors, or
8and microchips.
9    "Quantum computer" means a machine that uses the
10properties of quantum physics to perform computations and
11store data, as distinct from classical computing machines.
12    "Quantum computer manufacturer" or "manufacturer of
13quantum computers or quantum computer component parts" means a
14new or existing manufacturer that is focused on reequipping,
15expanding, or establishing a facility in Illinois that
16manufactures a quantum computer, quantum computer prototype
17devices, or components that support the functions of a quantum
18computer.
19    "Related member" means a person that, with respect to the
20taxpayer during any portion of the taxable year, is any one of
21the following:
22        (1) An individual stockholder, if the stockholder and
23    the members of the stockholder's family (as defined in
24    Section 318 of the Internal Revenue Code) own directly,
25    indirectly, beneficially, or constructively, in the
26    aggregate, at least 50% of the value of the taxpayer's

 

 

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

 

 

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1    20% shall be substituted for 5% wherever 5% appears in
2    Section 1563(e) of the Internal Revenue Code.
3    "Research and development in the manufacturing of quantum
4computers, semiconductors, or microchips" means work directed
5toward the innovation, introduction, and improvement of
6products and processes in the space of quantum computing
7manufacturing, semiconductor manufacturing, microchip
8manufacturing, or the manufacturing of semiconductor, quantum
9computer, or microchip component parts.
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 and substantially related to the project.
14For purposes of this definition, "directly and substantially
15related to the project" means at least two-thirds of the
16employee's job duties must be directly related to the project
17and the employee must devote at least two-thirds of his or her
18time to the project. The term "retained employee" does not
19include any individual who has a direct or an indirect
20ownership interest of at least 5% in the profits, equity,
21capital, or value of the taxpayer or a child, grandchild,
22parent, or spouse, other than a spouse who is legally
23separated from the individual, of any individual who has a
24direct or indirect ownership of at least 5% in the profits,
25equity, capital, or value of the taxpayer.
26    "Semiconductor" means any class of crystalline solids

 

 

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1intermediate in electrical conductivity between a conductor
2and an insulator.
3    "Semiconductor manufacturer" means a new or existing
4manufacturer that is focused on reequipping, expanding, or
5establishing a manufacturing facility in Illinois that
6produces semiconductors or key components that directly
7support the functions of semiconductors. Semiconductor
8manufacturing also includes the manufacturing of component
9parts that are required for the development and operation of
10quantum computers and quantum computing facilities.
11    "Statewide baseline" means the total number of full-time
12employees of the applicant and any related member employed by
13such entities at the time of application for incentives under
14this Act.
15    "Taxpayer" means an individual, corporation, partnership,
16or other entity that has a legal obligation to pay Illinois
17income taxes and file an Illinois income tax return.
18    "Training costs" means costs incurred to upgrade the
19technological skills of full-time employees in Illinois and
20includes: curriculum development; training materials
21(including scrap product costs); trainee domestic travel
22expenses; instructor costs (including wages, fringe benefits,
23tuition and domestic travel expenses); rent, purchase or lease
24of training equipment; and other usual and customary training
25costs. "Training costs" do not include costs associated with
26travel outside the United States (unless the taxpayer receives

 

 

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1prior written approval for the travel by the Director based on
2a showing of substantial need or other proof the training is
3not reasonably available within the United States), wages and
4fringe benefits of employees during periods of training, or
5administrative cost related to full-time employees of the
6taxpayer.
7    "Underserved area" means any geographic area areas as
8defined in Section 5-5 of the Economic Development for a
9Growing Economy Tax Credit Act.
10(Source: P.A. 102-700, eff. 4-19-22.)
 
11    (35 ILCS 45/110-20)
12    Sec. 110-20. Manufacturing Illinois Chips for Real
13Opportunity (MICRO) Program; project applications.
14    (a) The Manufacturing Illinois Chips for Real Opportunity
15(MICRO) Program is hereby established and shall be
16administered by the Department. The Program will provide
17financial incentives to eligible semiconductor manufacturers,
18and microchip manufacturers, quantum computer manufacturers,
19and companies that primarily engage in research and
20development in the manufacturing of quantum computers,
21semiconductors, or microchips. For the purposes of this
22Section, a company is primarily engaged in research and
23development in the manufacturing of quantum computers,
24semiconductors, or microchips if at least 50% of its business
25activities involve research and development in the

 

 

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1manufacturing of quantum computers, semiconductors, or
2microchips..
3    (b) Any taxpayer planning a project to be located in
4Illinois may request consideration for designation of its
5project as a MICRO project, by formal written letter of
6request or by formal application to the Department, in which
7the applicant states its intent to make at least a specified
8level of investment and intends to hire a specified number of
9full-time employees at a designated location in Illinois. As
10circumstances require, the Department shall require a formal
11application from an applicant and a formal letter of request
12for assistance.
13    (c) In order to qualify for credits under the program, an
14applicant must:
15        (1) for a semiconductor manufacturer, a or microchip
16    manufacturer, a quantum computer manufacturer, or a
17    company focusing on research and development in the
18    manufacturing of quantum computers, semiconductors, or
19    microchips:
20            (A) make an investment of at least $1,500,000,000
21        in capital improvements at the project site;
22            (B) to be placed in service within the State
23        within a 60-month period after approval of the
24        application; and
25            (C) create at least 500 new full-time employee
26        jobs; or

 

 

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1        (2) for a semiconductor or microchip component parts
2    manufacturer:
3            (A) make an investment of at least $300,000,000 in
4        capital improvements at the project site;
5            (B) manufacture one or more parts that are
6        primarily used for the manufacture of semiconductors
7        or microchips;
8            (C) to be placed in service within the State
9        within a 60-month period after approval of the
10        application; and
11            (D) create at least 150 new full-time employee
12        jobs; or
13        (3) for a semiconductor manufacturer, a or microchip
14    manufacturer, a quantum computer manufacturer, a company
15    focusing on research and development in the manufacturing
16    of quantum computers, semiconductors, or microchips, or or
17    a semiconductor or microchip component parts manufacturer
18    that does not quality under paragraph (2) above:
19            (A) make an investment of at least $2,500,000
20        $20,000,000 in capital improvements at the project
21        site;
22            (B) to be placed in service within the State
23        within a 48-month period after approval of the
24        application; and
25            (C) create at least 50 new full-time employee jobs
26        or new full-time employees equivalent to 10% of the

 

 

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1        number of full-time employees employed by the
2        applicant world-wide on the date the application is
3        filed with the Department; or
4        (4) for a semiconductor manufacturer, quantum computer
5    manufacturer, or microchip manufacturer, or a
6    semiconductor or microchip component parts manufacturer
7    with existing operations in Illinois that intends to
8    convert or expand, in whole or in part, the existing
9    facility from traditional manufacturing to semiconductor
10    manufacturing, quantum computer manufacturing, or
11    microchip manufacturing or semiconductor, quantum
12    computer, or microchip component parts manufacturing, or a
13    company focusing on research and development in the
14    manufacturing of quantum computers, semiconductors, or
15    microchips:
16            (A) make an investment of at least $100,000,000 in
17        capital improvements at the project site;
18            (B) to be placed in service within the State
19        within a 60-month period after approval of the
20        application; and
21            (C) create the lesser of 75 new full-time employee
22        jobs or new full-time employee jobs equivalent to 10%
23        of the Statewide baseline applicable to the taxpayer
24        and any related member at the time of application.
25    (d) For any applicant creating the full-time employee jobs
26noted in subsection (c), those jobs must have a total

 

 

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1compensation equal to or greater than 120% of the average wage
2paid to full-time employees in the county where the project is
3located, as determined by the Department.
4    (e) Each applicant must outline its hiring plan and
5commitment to recruit and hire full-time employee positions at
6the project site. The hiring plan may include a partnership
7with an institution of higher education to provide
8internships, including, but not limited to, internships
9supported by the Clean Jobs Workforce Network Program, or
10full-time permanent employment for students at the project
11site. Additionally, the applicant may create or utilize
12participants from apprenticeship programs that are approved by
13and registered with the United States Department of Labor's
14Bureau of Apprenticeship and Training. The Applicant may apply
15for apprenticeship education expense credits in accordance
16with the provisions set forth in 14 Ill. Admin. Code 522. Each
17applicant is required to report annually, on or before April
1815, on the diversity of its workforce in accordance with
19Section 110-50 of this Act. For existing facilities of
20applicants under paragraph (3) of subsection (b) above, if the
21taxpayer expects a reduction in force due to its transition to
22manufacturing semiconductors, microchips, or semiconductor or
23microchip component parts, the plan submitted under this
24Section must outline the taxpayer's plan to assist with
25retraining its workforce aligned with the taxpayer's adoption
26of new technologies and anticipated efforts to retrain

 

 

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1employees through employment opportunities within the
2taxpayer's workforce.
3    (f) A taxpayer may not enter into more than one agreement
4under this Act with respect to a single address or location for
5the same period of time. Also, a taxpayer may not enter into an
6agreement under this Act with respect to a single address or
7location for the same period of time for which the taxpayer
8currently holds an active agreement under the Economic
9Development for a Growing Economy Tax Credit Act. This
10provision does not preclude the applicant from entering into
11an additional agreement after the expiration or voluntary
12termination of an earlier agreement under this Act or under
13the Economic Development for a Growing Economy Tax Credit Act
14to the extent that the taxpayer's application otherwise
15satisfies the terms and conditions of this Act and is approved
16by the Department. An applicant with an existing agreement
17under the Economic Development for a Growing Economy Tax
18Credit Act may submit an application for an agreement under
19this Act after it terminates any existing agreement under the
20Economic Development for a Growing Economy Tax Credit Act with
21respect to the same address or location.
22(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23.)
 
23    (35 ILCS 45/110-35)
24    Sec. 110-35. Relocation of jobs in Illinois. A taxpayer is
25not entitled to claim a credit provided by this Act with

 

 

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1respect to any jobs that the taxpayer relocates from one site
2in Illinois to another site in Illinois unless the taxpayer
3has agreed to hire the minimum number of new employees and the
4Department has determined that the expansion cannot reasonably
5be accommodated within the municipality in which the business
6is located. Any full-time employee relocated to Illinois in
7connection with a qualifying project is deemed to be a new
8employee for purposes of this Act. Determinations under this
9Section shall be made by the Department.
10(Source: P.A. 102-700, eff. 4-19-22.)
 
11    (35 ILCS 45/110-65)
12    Sec. 110-65. Certified payroll.
13    (a) Annually, until construction is completed, a company
14seeking MICRO Construction Job Credits shall submit a report
15that, at a minimum, describes the projected project scope,
16timeline, and anticipated budget. Once the project has
17commenced, the annual report shall include actual data for the
18prior year as well as projections for each additional year
19through completion of the project. The Department shall issue
20detailed reporting guidelines prescribing the requirements of
21construction-related reports. Each contractor and
22subcontractor that is engaged in construction work on project
23facilities for a taxpayer who seeks to apply for a MICRO
24Construction Jobs Credit shall:
25        (1) make and keep, for a period of 5 years from the

 

 

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1    date of the last payment made on a contract or subcontract
2    for construction of facilities for a project pursuant to
3    an agreement, records of all laborers and other workers
4    employed by the contractor or subcontractor on the
5    project; the records shall include:
6            (A) the worker's name;
7            (B) the worker's address;
8            (C) the worker's telephone number, if available;
9            (D) the worker's social security number;
10            (E) the worker's classification or
11        classifications;
12            (F) the worker's gross and net wages paid in each
13        pay period;
14            (G) the worker's number of hours worked in each
15        day;
16            (H) the worker's starting and ending times of work
17        each day;
18            (I) the worker's hourly wage rate; and
19            (J) the worker's hourly overtime wage rate; and
20        (2) no later than the 15th day of each calendar month,
21    provide a certified payroll for the immediately preceding
22    month to the taxpayer in charge of the project; within 5
23    business days after receiving the certified payroll, the
24    taxpayer shall file the certified payroll with the
25    Department of Labor and the Department; a certified
26    payroll must be filed for only those calendar months

 

 

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1    during which construction on the project facilities has
2    occurred; the certified payroll shall consist of a
3    complete copy of the records identified in paragraph (1),
4    but may exclude the starting and ending times of work each
5    day; the certified payroll shall be accompanied by a
6    statement signed by the contractor or subcontractor or an
7    officer, employee, or agent of the contractor or
8    subcontractor which avers that:
9            (A) he or she has examined the certified payroll
10        records required to be submitted by the Act and such
11        records are true and accurate; and
12            (B) the contractor or subcontractor is aware that
13        filing a certified payroll that he or she knows to be
14        false is a Class A misdemeanor.
15    A general contractor is not prohibited from relying on a
16certified payroll of a lower-tier subcontractor, provided the
17general contractor does not knowingly rely upon a
18subcontractor's false certification.
19    (b) In order to receive credit for construction expenses,
20the company must provide the Department with evidence that a
21certified third party executed an Agreed-Upon Procedure (AUP)
22verifying the construction expenses or accept the standard
23construction wage expense estimated by the Department. Any
24contractor or subcontractor subject to this Section, and any
25officer, 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 as to any
5material fact is in violation of this Act and guilty of a Class
6A misdemeanor and may be enforced by the Illinois Department
7of Labor or the Department. The Attorney General shall
8represented the Illinois Department of Labor or the Department
9in the proceeding.
10    (c) Upon review of the final project scope, timeline,
11budget, and AUP, the Department shall issue a tax credit
12certificate reflecting a percentage of the total construction
13job wages paid throughout the completion of the project. The
14taxpayer in charge of the project shall keep the records
15submitted in accordance with this Section for a period of 5
16years from the date of the last payment for work on a contract
17or subcontract for the project.
18    (d) (Blank). The records submitted in accordance with this
19Section shall be considered public records, except an
20employee's address, telephone number, and social security
21number, which shall be redacted. The records shall be made
22publicly available in accordance with the Freedom of
23Information Act. The contractor or subcontractor shall submit
24reports to the Department of Labor electronically that meet
25the requirements of this subsection and shall share the
26information with the Department to comply with the awarding of

 

 

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1the MICRO Construction Jobs Credit. A contractor,
2subcontractor, or public body may retain records required
3under this Section in paper or electronic format.
4    (e) Upon 7 business days' notice, the taxpayer contractor
5and each subcontractor shall make available to each State
6agency and to federal, State, or local law enforcement
7agencies and prosecutors for inspection and copying at a
8location within this State during reasonable hours, the report
9described in subsection (a) records identified in paragraph
10(1) of this subsection to the taxpayer in charge of the
11Project, its officers and agents, the Director of the
12Department of Labor and his/her deputies and agents, and to
13federal, State, or local law enforcement agencies and
14prosecutors.
15(Source: P.A. 102-700, eff. 4-19-22.)
 
16    (35 ILCS 45/110-95)
17    Sec. 110-95. Utility tax exemptions for MICRO projects.
18The Department may certify a taxpayer with a credit for a
19project that meets the qualifications under paragraphs (1),
20(2), and (4) of subsection (c) of Section 110-20, subject to an
21agreement under this Act, for an exemption from the tax
22imposed at the project site by Section 2-4 of the Electricity
23Excise Tax Law. To receive such certification, the taxpayer
24must be registered to self-assess that tax. The taxpayer is
25also exempt from any additional charges added to the

 

 

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

 

 

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1public utilities of the exempt status of any taxpayer
2certified for exemption under this Act from the electricity
3excise tax or pass-on charges. The exemption status shall take
4effect within 3 months after certification of the taxpayer and
5notice to the Department of Revenue by the Department.
6(Source: P.A. 102-700, eff. 4-19-22.)
 
7    Section 35. The Use Tax Act is amended by changing Section
812 as follows:
 
9    (35 ILCS 105/12)  (from Ch. 120, par. 439.12)
10    Sec. 12. Applicability of Retailers' Occupation Tax Act
11and Uniform Penalty and Interest Act. All of the provisions of
12Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
132-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
14provisions shall run from the date when the tax is due rather
15than from the date when gross receipts are received), 5
16(except that the time limitation provisions on the issuance of
17notices of tax liability shall run from the date when the tax
18is due rather than from the date when gross receipts are
19received and except that in the case of a failure to file a
20return required by this Act, no notice of tax liability shall
21be issued on and after each July 1 and January 1 covering tax
22due with that return during any month or period more than 6
23years before that July 1 or January 1, respectively), 5a, 5b,
245c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and

 

 

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112 of the Retailers' Occupation Tax Act and Section 3-7 of the
2Uniform Penalty and Interest Act, which are not inconsistent
3with this Act, shall apply, as far as practicable, to the
4subject matter of this Act to the same extent as if such
5provisions were included herein.
6(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
7    Section 40. The Service Use Tax Act is amended by changing
8Section 12 as follows:
 
9    (35 ILCS 110/12)  (from Ch. 120, par. 439.42)
10    Sec. 12. Applicability of Retailers' Occupation Tax Act
11and Uniform Penalty and Interest Act. All of the provisions of
12Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
132-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
14Department of the money collected under this Act), 4 (except
15that the time limitation provisions shall run from the date
16when gross receipts are received), 5 (except that the time
17limitation provisions on the issuance of notices of tax
18liability shall run from the date when the tax is due rather
19than from the date when gross receipts are received and except
20that in the case of a failure to file a return required by this
21Act, no notice of tax liability shall be issued on and after
22July 1 and January 1 covering tax due with that return during
23any month or period more than 6 years before that July 1 or
24January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,

 

 

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15l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
2Occupation Tax Act which are not inconsistent with this Act,
3and Section 3-7 of the Uniform Penalty and Interest Act, shall
4apply, as far as practicable, to the subject matter of this Act
5to the same extent as if such provisions were included herein.
6(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
 
7    Section 45. The Service Occupation Tax Act is amended by
8changing Section 12 as follows:
 
9    (35 ILCS 115/12)  (from Ch. 120, par. 439.112)
10    Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
111j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-54, 2a, 2b, 2c, 3
12(except as to the disposition by the Department of the tax
13collected under this Act), 4 (except that the time limitation
14provisions shall run from the date when the tax is due rather
15than from the date when gross receipts are received), 5
16(except that the time limitation provisions on the issuance of
17notices of tax liability shall run from the date when the tax
18is due rather than from the date when gross receipts are
19received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d,
207, 8, 9, 10, 11, and 12 of the "Retailers' Occupation Tax Act"
21which are not inconsistent with this Act, and Section 3-7 of
22the Uniform Penalty and Interest Act shall apply, as far as
23practicable, to the subject matter of this Act to the same
24extent as if such provisions were included herein.

 

 

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1(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
2revised 9-26-23.)
 
3    Section 50. The Retailers' Occupation Tax Act is amended
4by adding Section 2-29 as follows:
 
5    (35 ILCS 120/2-29 new)
6    Sec. 2-29. Quantum computing campus building materials
7exemption.
8    (a) Each retailer who makes a qualified sale of building
9materials to be incorporated into real estate at a quantum
10computing campus certified by the Department of Commerce and
11Economic Opportunity under Section 605-1115 of the Department
12of Commerce and Economic Opportunity Law of the Civil
13Administrative Code of Illinois may deduct receipts from those
14sales when calculating the tax imposed by this Act. Quantum
15Computing Campus Building Materials Exemption Certificates
16shall be issued for an initial period not to exceed 20 years
17and can be renewed once for a period not to exceed 20 years.
18    (b) No retailer who is eligible for the deduction or
19credit for a given sale under Section 5k of this Act related to
20enterprise zones, Section 5l of this Act related to High
21Impact Businesses, Section 5m of this Act related to REV
22Illinois projects, or Section 5n of this Act related to MICRO
23facilities shall be eligible for the deduction or credit
24authorized under this Section for that same sale.

 

 

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1    (c) A construction contractor or other entity shall not
2make tax-free purchases unless it has an active Exemption
3Certificate issued by the Department at the time of the
4purchase.
5    (d) A taxpayer that is certified by the Department of
6Commerce and Economic Opportunity under Section 605-1115 of
7the Department of Commerce and Economic Opportunity Law of the
8Civil Administrative Code of Illinois shall submit a request
9to the Department for an initial or renewal Quantum Computing
10Campus Materials Exemption Certificate. Upon request from the
11certified taxpayer, the Department shall issue a Quantum
12Computing Campus Building Materials Exemption Certificate for
13each construction contractor or other entity identified by the
14certified taxpayer. The Department shall make the Quantum
15Computing Campus Building Materials Exemption Certificates
16available to each construction contractor or other entity
17identified by the certified taxpayer and to the certified
18taxpayer. The request for Quantum Computing Campus Building
19Materials Exemption Certificates under this Section must
20include the following information:
21        (1) the name and address of the construction
22    contractor or other entity;
23        (2) the name and location or address of the building
24    project site;
25        (3) the estimated amount of the exemption for each
26    construction contractor or other entity for which a

 

 

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1    request for a Quantum Computing Campus Building Materials
2    Exemption Certificate is made, based on a stated estimated
3    average tax rate and the percentage of the contract that
4    consists of materials;
5        (4) the period of time over which supplies for the
6    project are expected to be purchased; and
7        (5) other reasonable information as the Department may
8    require, including, but not limited to, FEIN numbers, to
9    determine if the contractor or other entity, or any
10    partner, or a corporate officer, and in the case of a
11    limited liability company, any manager or member, of the
12    construction contractor or other entity, is or has been
13    the owner, a partner, a corporate officer, and, in the
14    case of a limited liability company, a manager or member,
15    of a person that is in default for moneys due to the
16    Department under this Act or any other tax or fee Act
17    administered by the Department.
18    The Department, in its discretion, may require that the
19request for Quantum Computing Campus Building Materials
20Exemption Certificates be submitted electronically. The
21Department may, in its discretion, issue the Exemption
22Certificates electronically.
23    (e) To document the exemption allowed under this Section,
24the retailer must obtain from the purchaser the certification
25required under this Section, which must contain the Quantum
26Computing Campus Building Materials Exemption Certificate

 

 

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1number issued to the purchaser by the Department. In addition,
2the retailer must obtain certification from the purchaser that
3contains:
4        (1) a statement that the building materials are being
5    purchased for incorporation into real estate located in a
6    quantum computing campus;
7        (2) the location or address of the real estate into
8    which the building materials will be incorporated;
9        (3) the name of the quantum computing campus in which
10    that real estate is located;
11        (4) a description of the building materials being
12    purchased;
13        (5) the purchaser's Quantum Computing Campus Building
14    Materials Exemption Certificate number issued by the
15    Department; and
16        6) the purchaser's signature and date of purchase.
17    (f) The Department shall issue the Quantum Computing
18Campus Building Materials Exemption Certificates within 3
19business days after receipt of the request from the certified
20taxpayer. This requirement does not apply in circumstances
21where the Department, for reasonable cause, is unable to issue
22the Exemption Certificate within 3 business days. The
23Department may refuse to issue a Quantum Computing Campus
24Building Materials Exemption Certificate if the owner, any
25partner, or a corporate officer, and in the case of a limited
26liability company, any manager or member, of the construction

 

 

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1contractor or other entity is or has been the owner, a partner,
2a corporate officer, and, in the case of a limited liability
3company, a manager or member, of a person that is in default
4for moneys due to the Department under this Act or any other
5tax or fee Act administered by the Department.
6    (g) The Quantum Computing Campus Building Materials
7Exemption Certificate shall contain:
8        (1) a unique identifying number that shall be designed
9    in such a way that the Department can identify from the
10    unique number on the Exemption Certificate issued to a
11    given construction contractor or other entity, the name of
12    the quantum computing campus and the construction
13    contractor or other entity to whom the Exemption
14    Certificate is issued;
15        (2) the name of the construction contractor or entity
16    to whom the Exemption Certificate is issued;
17        (3) issuance, effective, and expiration dates; and
18        (4) language stating that if the construction
19    contractor or other entity who is issued the Exemption
20    Certificate makes a tax-exempt purchase, as described in
21    this Section, that is not eligible for exemption under
22    this Section or allows another person to make a tax-exempt
23    purchase, as described in this Section, that is not
24    eligible for exemption under this Section, then, in
25    addition to any tax or other penalty imposed, the
26    construction contractor or other entity is subject to a

 

 

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1    penalty equal to the tax that would have been paid by the
2    retailer under this Act as well as any applicable local
3    retailers' occupation tax on the purchase that is not
4    eligible for the exemption.
5    (h) After the Department issues Exemption Certificates for
6a given quantum computing campus, the certified taxpayer may
7notify the Department of additional construction contractors
8or other entities that are eligible for a Quantum Computing
9Campus Building Materials Exemption Certificate. Upon
10receiving such a notification and subject to the other
11provisions of this Section, the Department shall issue a
12Quantum Computing Campus Building Materials Exemption
13Certificate to each additional construction contractor or
14other entity so identified.
15    (i) A certified taxpayer may ask the Department to rescind
16a Quantum Computing Campus Building Materials Exemption
17Certificate previously issued by the Department to a
18construction contractor or other entity working at that
19certified quantum computing campus if that Quantum Computing
20Campus Building Materials Exemption Certificate has not yet
21expired. Upon receiving such a request and subject to the
22other provisions of this Section, the Department shall issue
23the rescission of the Quantum Computing Campus Building
24Materials Exemption Certificate to the construction contractor
25or other entity identified by the certified taxpayer and
26provide a copy of the rescission to the construction

 

 

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1contractor or other entity and to the certified taxpayer.
2    (j) If the Department of Revenue determines that a
3construction contractor or other entity that was issued an
4Exemption Certificate under this Section made a tax-exempt
5purchase, as described in this Section, that was not eligible
6for exemption under this Section or allowed another person to
7make a tax-exempt purchase, as described in this Section, that
8was not eligible for exemption under this Section, then, in
9addition to any tax or other penalty imposed, the construction
10contractor or other entity is subject to a penalty equal to the
11tax that would have been paid by the retailer under this Act as
12well as any applicable local retailers' occupation tax on the
13purchase that was not eligible for the exemption.
14    (k) Each contractor or other entity that has been issued a
15Quantum Computing Campus Building Materials Exemption
16Certificate under this Section shall annually report to the
17Department the total value of the quantum computing campus
18building materials exemption from State taxes. Reports shall
19contain information reasonably required by the Department to
20enable it to verify and calculate the total tax benefits for
21taxes imposed by the State and shall be broken down by quantum
22computing campus site. Reports are due no later than May 31 of
23each year and shall cover the previous calendar year. Failure
24to report data may result in revocation of the Quantum
25Computing Campus Building Materials Exemption Certificate
26issued to the contractor or other entity. The Department is

 

 

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1authorized to adopt rules governing revocation determinations,
2including the length of revocation. Factors to be considered
3in revocations shall include, but are not limited to, prior
4compliance with the reporting requirements, cooperation in
5discontinuing and correcting violations, and whether the
6certificate was used unlawfully during the preceding year. The
7Department, in its discretion, may require that the reports
8filed under this Section be submitted electronically.
9    (l) As used in this Section:
10    "Certified taxpayer" means a person certified by the
11Department of Commerce and Economic Opportunity under Section
12605-1115 of the Department of Commerce and Economic
13Opportunity Law of the Civil Administrative Code of Illinois.
14    "Qualified sale" means a sale of building materials that
15will be incorporated into real estate as part of a building
16project for which a Quantum Computing Campus Building
17Materials Exemption Certificate has been issued to the
18purchaser by the Department.
19    (m) The Department shall have the authority to adopt rules
20as are reasonable and necessary to implement the provisions of
21this Section.
22    (n) This Section is exempt from the provisions of Section
232-70.
24    (o) This exemption also applies to the Use Tax Act, the
25Service Use Tax Act, and the Service Occupation Tax Act and is
26incorporated by reference in Section 12 of each of those

 

 

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1respective Acts.
 
2    Section 53. The Gas Use Tax Law is amended by changing
3Section 5-10 as follows:
 
4    (35 ILCS 173/5-10)
5    Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a
6tax is imposed upon the privilege of using in this State gas
7obtained in a purchase of out-of-state gas at the rate of 2.4
8cents per therm or 5% of the purchase price for the billing
9period, whichever is the lower rate. Such tax rate shall be
10referred to as the "self-assessing purchaser tax rate".
11Beginning with bills issued by delivering suppliers on and
12after October 1, 2003, purchasers may elect an alternative tax
13rate of 2.4 cents per therm to be paid under the provisions of
14Section 5-15 of this Law to a delivering supplier maintaining
15a place of business in this State. Such tax rate shall be
16referred to as the "alternate tax rate". The tax imposed under
17this Section shall not apply to gas used by business
18enterprises certified under Section 9-222.1 of the Public
19Utilities Act or Section 605-1115 of the Department of
20Commerce and Economic Opportunity Law of the Civil
21Administrative Code of Illinois, as amended, to the extent of
22such exemption and during the period of time specified by the
23Department of Commerce and Economic Opportunity.
24(Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.)
 

 

 

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1    Section 55. The Property Tax Code is amended by changing
2Sections 18-184.15 and 18-184.20 as follows:
 
3    (35 ILCS 200/18-184.15)
4    Sec. 18-184.15. REV Illinois project facilities for
5electric vehicles, electric vehicle component parts, or
6electric vehicle power supply equipment; abatement.
7    (a) Any taxing district, upon a majority vote of its
8governing body, may, after determination of the assessed value
9as set forth in this Code, order the clerk of the appropriate
10municipality or county to abate, for a period not to exceed 30
11consecutive years, any portion of real property taxes
12otherwise levied or extended by the taxing district on a REV
13Illinois Project facility owned by an electric vehicle
14manufacturer, electric vehicle component parts manufacturer,
15or an electric vehicle power supply manufacturer that is
16subject to an agreement with the Department of Commerce and
17Economic Opportunity under Section 45 of the Reimagining
18Energy and Vehicles in Illinois Act, during the period of time
19such agreement is in effect as specified by the Department of
20Commerce and Economic Opportunity.
21    (b) Two or more taxing districts, upon a majority vote of
22each of their respective governing bodies, may agree to abate,
23for a period not to exceed 30 consecutive tax years, a portion
24of the real property taxes otherwise levied or extended by

 

 

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1those taxing districts on a REV Illinois Project facility that
2is subject to an agreement with the Department of Commerce and
3Economic Opportunity under Section 45 of the Reimagining
4Energy and Vehicles in Illinois Act. The agreement entered
5into by the taxing districts under this subsection (b) shall
6be filed with the county clerk who shall, for the period the
7agreement remains in effect, abate the portion of the real
8estate taxes levied or extended by those taxing districts as
9directed in the agreement. Any such agreement entered into by
102 or more taxing districts before the effective date of this
11amendatory Act of the 103rd General Assembly that is not
12inconsistent with the provisions of this subsection (b) is
13hereby declared valid and enforceable for the effective period
14of that agreement.
15(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
 
16    (35 ILCS 200/18-184.20)
17    Sec. 18-184.20. MICRO Illinois project facilities. Any
18taxing district, upon a majority vote of its governing body,
19may, after determination of the assessed value as set forth in
20this Code, order the clerk of the appropriate municipality or
21county to abate, for a period not to exceed 30 consecutive
22years, any portion of real property taxes otherwise levied or
23extended by the taxing district on a MICRO Illinois Project
24facility owned by a semiconductor manufacturer or microchip
25manufacturer or a semiconductor or microchip component parts

 

 

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1manufacturer that is subject to an agreement with the
2Department of Commerce and Economic Opportunity under the
3Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
4during the period of time such agreement is in effect as
5specified by the Department of Commerce and Economic
6Opportunity.
7(Source: P.A. 102-700, eff. 4-19-22.)
 
8    Section 60. The Telecommunications Excise Tax Act is
9amended by changing Section 2 as follows:
 
10    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
11    Sec. 2. As used in this Article, unless the context
12clearly requires otherwise:
13    (a) "Gross charge" means the amount paid for the act or
14privilege of originating or receiving telecommunications in
15this State and for all services and equipment provided in
16connection therewith by a retailer, valued in money whether
17paid in money or otherwise, including cash, credits, services
18and property of every kind or nature, and shall be determined
19without any deduction on account of the cost of such
20telecommunications, the cost of materials used, labor or
21service costs or any other expense whatsoever. In case credit
22is extended, the amount thereof shall be included only as and
23when paid. "Gross charges" for private line service shall
24include charges imposed at each channel termination point

 

 

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1within this State, charges for the channel mileage between
2each channel termination point within this State, and charges
3for that portion of the interstate inter-office channel
4provided within Illinois. Charges for that portion of the
5interstate inter-office channel provided in Illinois shall be
6determined by the retailer as follows: (i) for interstate
7inter-office channels having 2 channel termination points,
8only one of which is in Illinois, 50% of the total charge
9imposed; or (ii) for interstate inter-office channels having
10more than 2 channel termination points, one or more of which
11are in Illinois, an amount equal to the total charge
12multiplied by a fraction, the numerator of which is the number
13of channel termination points within Illinois and the
14denominator of which is the total number of channel
15termination points. Prior to January 1, 2004, any method
16consistent with this paragraph or other method that reasonably
17apportions the total charges for interstate inter-office
18channels among the states in which channel terminations points
19are located shall be accepted as a reasonable method to
20determine the charges for that portion of the interstate
21inter-office channel provided within Illinois for that period.
22However, "gross charges" shall not include any of the
23following:
24        (1) Any amounts added to a purchaser's bill because of
25    a charge made pursuant to (i) the tax imposed by this
26    Article; (ii) charges added to customers' bills pursuant

 

 

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1    to the provisions of Sections 9-221 or 9-222 of the Public
2    Utilities Act, as amended, or any similar charges added to
3    customers' bills by retailers who are not subject to rate
4    regulation by the Illinois Commerce Commission for the
5    purpose of recovering any of the tax liabilities or other
6    amounts specified in such provisions of such Act; (iii)
7    the tax imposed by Section 4251 of the Internal Revenue
8    Code; (iv) 911 surcharges; or (v) the tax imposed by the
9    Simplified Municipal Telecommunications Tax Act.
10        (2) Charges for a sent collect telecommunication
11    received outside of the State.
12        (3) Charges for leased time on equipment or charges
13    for the storage of data or information for subsequent
14    retrieval or the processing of data or information
15    intended to change its form or content. Such equipment
16    includes, but is not limited to, the use of calculators,
17    computers, data processing equipment, tabulating equipment
18    or accounting equipment and also includes the usage of
19    computers under a time-sharing agreement.
20        (4) Charges for customer equipment, including such
21    equipment that is leased or rented by the customer from
22    any source, wherein such charges are disaggregated and
23    separately identified from other charges.
24        (5) Charges to business enterprises certified under
25    Section 9-222.1 of the Public Utilities Act, as amended,
26    or under Section 95 of the Reimagining Energy and Vehicles

 

 

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1    in Illinois Act, to the extent of such exemption and
2    during the period of time specified by the Department of
3    Commerce and Economic Opportunity.
4        (5.1) Charges to business enterprises certified under
5    the Manufacturing Illinois Chips for Real Opportunity
6    (MICRO) Act, to the extent of the exemption and during the
7    period of time specified by the Department of Commerce and
8    Economic Opportunity.
9        (5.2) Charges to entities certified under Section
10    605-1115 of the Department of Commerce and Economic
11    Opportunity Law of the Civil Administrative Code of
12    Illinois to the extent of the exemption and during the
13    period of time specified by the Department of Commerce and
14    Economic Opportunity.
15        (6) Charges for telecommunications and all services
16    and equipment provided in connection therewith between a
17    parent corporation and its wholly owned subsidiaries or
18    between wholly owned subsidiaries when the tax imposed
19    under this Article has already been paid to a retailer and
20    only to the extent that the charges between the parent
21    corporation and wholly owned subsidiaries or between
22    wholly owned subsidiaries represent expense allocation
23    between the corporations and not the generation of profit
24    for the corporation rendering such service.
25        (7) Bad debts. Bad debt means any portion of a debt
26    that is related to a sale at retail for which gross charges

 

 

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

 

 

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

 

 

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1the ultimate retail consumer who originates or terminates the
2taxable end-to-end communications. Carrier access charges,
3right of access charges, charges for use of inter-company
4facilities, and all telecommunications resold in the
5subsequent provision of, used as a component of, or integrated
6into end-to-end telecommunications service shall be
7non-taxable as sales for resale.
8    (d) "Interstate telecommunications" means all
9telecommunications that either originate or terminate outside
10this State.
11    (e) "Intrastate telecommunications" means all
12telecommunications that originate and terminate within this
13State.
14    (f) "Department" means the Department of Revenue of the
15State of Illinois.
16    (g) "Director" means the Director of Revenue for the
17Department of Revenue of the State of Illinois.
18    (h) "Taxpayer" means a person who individually or through
19his agents, employees or permittees engages in the act or
20privilege of originating or receiving telecommunications in
21this State and who incurs a tax liability under this Article.
22    (i) "Person" means any natural individual, firm, trust,
23estate, partnership, association, joint stock company, joint
24venture, corporation, limited liability company, or a
25receiver, trustee, guardian or other representative appointed
26by order of any court, the Federal and State governments,

 

 

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

 

 

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

 

 

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1services that must be paid for in advance and enable the
2origination of one or more intrastate, interstate, or
3international telephone calls or other telecommunications
4using an access number, an authorization code, or both,
5whether manually or electronically dialed, for which payment
6to a retailer must be made in advance, provided that, unless
7recharged, no further service is provided once that prepaid
8amount of service has been consumed. Prepaid telephone calling
9arrangements include the recharge of a prepaid calling
10arrangement. For purposes of this subsection, "recharge" means
11the purchase of additional prepaid telephone or
12telecommunications services whether or not the purchaser
13acquires a different access number or authorization code.
14"Prepaid telephone calling arrangement" does not include an
15arrangement whereby a customer purchases a payment card and
16pursuant to which the service provider reflects the amount of
17such purchase as a credit on an invoice issued to that customer
18under an existing subscription plan.
19(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
20102-1125, eff. 2-3-23.)
 
21    Section 65. The Telecommunications Infrastructure
22Maintenance Fee Act is amended by changing Section 10 as
23follows:
 
24    (35 ILCS 635/10)

 

 

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

 

 

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1denominator of which is the total number of channel
2termination points. Prior to January 1, 2004, any method
3consistent with this paragraph or other method that reasonably
4apportions the total charges for interstate inter-office
5channels among the states in which channel terminations points
6are located shall be accepted as a reasonable method to
7determine the charges for that portion of the interstate
8inter-office channel provided within Illinois for that period.
9However, "gross charges" shall not include any of the
10following:
11        (1) Any amounts added to a purchaser's bill because of
12    a charge made under: (i) the fee imposed by this Section,
13    (ii) additional charges added to a purchaser's bill under
14    Section 9-221 or 9-222 of the Public Utilities Act, (iii)
15    the tax imposed by the Telecommunications Excise Tax Act,
16    (iv) 911 surcharges, (v) the tax imposed by Section 4251
17    of the Internal Revenue Code, or (vi) the tax imposed by
18    the Simplified Municipal Telecommunications Tax Act.
19        (2) Charges for a sent collect telecommunication
20    received outside of this State.
21        (3) Charges for leased time on equipment or charges
22    for the storage of data or information or subsequent
23    retrieval or the processing of data or information
24    intended to change its form or content. Such equipment
25    includes, but is not limited to, the use of calculators,
26    computers, data processing equipment, tabulating

 

 

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1    equipment, or accounting equipment and also includes the
2    usage of computers under a time-sharing agreement.
3        (4) Charges for customer equipment, including such
4    equipment that is leased or rented by the customer from
5    any source, wherein such charges are disaggregated and
6    separately identified from other charges.
7        (5) Charges to business enterprises certified under
8    Section 9-222.1 of the Public Utilities Act to the extent
9    of such exemption and during the period of time specified
10    by the Department of Commerce and Economic Opportunity.
11        (5.1) Charges to business enterprises certified under
12    Section 95 of the Reimagining Energy and Vehicles in
13    Illinois Act, to the extent of the exemption and during
14    the period of time specified by the Department of Commerce
15    and Economic Opportunity.
16        (5.2) Charges to business enterprises certified under
17    Section 110-95 of the Manufacturing Illinois Chips for
18    Real Opportunity (MICRO) Act, to the extent of the
19    exemption and during the period of time specified by the
20    Department of Commerce and Economic Opportunity.
21        (5.3) Charges to entities certified under Section
22    605-1115 of the Department of Commerce and Economic
23    Opportunity Law of the Civil Administrative Code of
24    Illinois to the extent of the exemption and during the
25    period of time specified by the Department of Commerce and
26    Economic Opportunity.

 

 

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1        (6) Charges for telecommunications and all services
2    and equipment provided in connection therewith between a
3    parent corporation and its wholly owned subsidiaries or
4    between wholly owned subsidiaries, and only to the extent
5    that the charges between the parent corporation and wholly
6    owned subsidiaries or between wholly owned subsidiaries
7    represent expense allocation between the corporations and
8    not the generation of profit other than a regulatory
9    required profit for the corporation rendering such
10    services.
11        (7) Bad debts ("bad debt" means any portion of a debt
12    that is related to a sale at retail for which gross charges
13    are not otherwise deductible or excludable that has become
14    worthless or uncollectible, as determined under applicable
15    federal income tax standards; if the portion of the debt
16    deemed to be bad is subsequently paid, the retailer shall
17    report and pay the tax on that portion during the
18    reporting period in which the payment is made).
19        (8) Charges paid by inserting coins in coin-operated
20    telecommunication devices.
21        (9) Charges for nontaxable services or
22    telecommunications if (i) those charges are aggregated
23    with other charges for telecommunications that are
24    taxable, (ii) those charges are not separately stated on
25    the customer bill or invoice, and (iii) the retailer can
26    reasonably identify the nontaxable charges on the

 

 

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1    retailer's books and records kept in the regular course of
2    business. If the nontaxable charges cannot reasonably be
3    identified, the gross charge from the sale of both taxable
4    and nontaxable services or telecommunications billed on a
5    combined basis shall be attributed to the taxable services
6    or telecommunications. The burden of proving nontaxable
7    charges shall be on the retailer of the
8    telecommunications.
9    (a-5) "Department" means the Illinois Department of
10Revenue.
11    (b) "Telecommunications" includes, but is not limited to,
12messages or information transmitted through use of local,
13toll, and wide area telephone service, channel services,
14telegraph services, teletypewriter service, computer exchange
15services, private line services, specialized mobile radio
16services, or any other transmission of messages or information
17by electronic or similar means, between or among points by
18wire, cable, fiber optics, laser, microwave, radio, satellite,
19or similar facilities. Unless the context clearly requires
20otherwise, "telecommunications" shall also include wireless
21telecommunications as hereinafter defined.
22"Telecommunications" shall not include value added services in
23which computer processing applications are used to act on the
24form, content, code, and protocol of the information for
25purposes other than transmission. "Telecommunications" shall
26not include purchase of telecommunications by a

 

 

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1telecommunications service provider for use as a component
2part of the service provided by him or her to the ultimate
3retail consumer who originates or terminates the end-to-end
4communications. Retailer access charges, right of access
5charges, charges for use of intercompany facilities, and all
6telecommunications resold in the subsequent provision and used
7as a component of, or integrated into, end-to-end
8telecommunications service shall not be included in gross
9charges as sales for resale. "Telecommunications" shall not
10include the provision of cable services through a cable system
11as defined in the Cable Communications Act of 1984 (47 U.S.C.
12Sections 521 and following) as now or hereafter amended or
13through an open video system as defined in the Rules of the
14Federal Communications Commission (47 C.D.F. 76.1550 and
15following) as now or hereafter amended. Beginning January 1,
162001, prepaid telephone calling arrangements shall not be
17considered "telecommunications" subject to the tax imposed
18under this Act. For purposes of this Section, "prepaid
19telephone calling arrangements" means that term as defined in
20Section 2-27 of the Retailers' Occupation Tax Act.
21    (c) "Wireless telecommunications" includes cellular mobile
22telephone services, personal wireless services as defined in
23Section 704(C) of the Telecommunications Act of 1996 (Public
24Law No. 104-104) as now or hereafter amended, including all
25commercial mobile radio services, and paging services.
26    (d) "Telecommunications retailer" or "retailer" or

 

 

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1"carrier" means and includes every person engaged in the
2business of making sales of telecommunications at retail as
3defined in this Section. The Department may, in its
4discretion, upon applications, authorize the collection of the
5fee hereby imposed by any retailer not maintaining a place of
6business within this State, who, to the satisfaction of the
7Department, furnishes adequate security to insure collection
8and payment of the fee. When so authorized, it shall be the
9duty of such retailer to pay the fee upon all of the gross
10charges for telecommunications in the same manner and subject
11to the same requirements as a retailer maintaining a place of
12business within this State.
13    (e) "Retailer maintaining a place of business in this
14State", or any like term, means and includes any retailer
15having or maintaining within this State, directly or by a
16subsidiary, an office, distribution facilities, transmission
17facilities, sales office, warehouse, or other place of
18business, or any agent or other representative operating
19within this State under the authority of the retailer or its
20subsidiary, irrespective of whether such place of business or
21agent or other representative is located here permanently or
22temporarily, or whether such retailer or subsidiary is
23licensed to do business in this State.
24    (f) "Sale of telecommunications at retail" means the
25transmitting, supplying, or furnishing of telecommunications
26and all services rendered in connection therewith for a

 

 

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1consideration, other than between a parent corporation and its
2wholly owned subsidiaries or between wholly owned
3subsidiaries, when the gross charge made by one such
4corporation to another such corporation is not greater than
5the gross charge paid to the retailer for their use or
6consumption and not for sale.
7    (g) "Service address" means the location of
8telecommunications equipment from which telecommunications
9services are originated or at which telecommunications
10services are received. If this is not a defined location, as in
11the case of wireless telecommunications, paging systems,
12maritime systems, service address means the customer's place
13of primary use as defined in the Mobile Telecommunications
14Sourcing Conformity Act. For air-to-ground systems, and the
15like, "service address" shall mean the location of the
16customer's primary use of the telecommunications equipment as
17defined by the location in Illinois where bills are sent.
18(Source: P.A. 102-1125, eff. 2-3-23.)
 
19    Section 70. The Simplified Municipal Telecommunications
20Tax Act is amended by changing Section 5-7 as follows:
 
21    (35 ILCS 636/5-7)
22    Sec. 5-7. Definitions. For purposes of the taxes
23authorized by this Act:
24    "Amount paid" means the amount charged to the taxpayer's

 

 

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1service address in such municipality regardless of where such
2amount is billed or paid.
3    "Department" means the Illinois Department of Revenue.
4    "Gross charge" means the amount paid for the act or
5privilege of originating or receiving telecommunications in
6such municipality and for all services and equipment provided
7in connection therewith by a retailer, valued in money whether
8paid in money or otherwise, including cash, credits, services
9and property of every kind or nature, and shall be determined
10without any deduction on account of the cost of such
11telecommunications, the cost of the materials used, labor or
12service costs or any other