|
Rep. Dave Vella
Filed: 5/20/2024
| | 10300HB0817ham002 | | LRB103 04410 HLH 73800 a |
|
|
1 | | AMENDMENT TO HOUSE BILL 817
|
2 | | AMENDMENT NO. ______. Amend House Bill 817 by replacing |
3 | | everything after the enacting clause with the following: |
4 | | "Section 5. The Department of Commerce and Economic |
5 | | Opportunity Law of the Civil Administrative Code of Illinois |
6 | | is 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, |
11 | | services are the storage, management, and processing of |
12 | | digital data; and (2) that is used to house (A) computer and |
13 | | network systems, including associated components such as |
14 | | servers, network equipment and appliances, telecommunications, |
15 | | and data storage systems, (B) systems for monitoring and |
16 | | managing infrastructure performance, (C) Internet-related |
|
| | 10300HB0817ham002 | - 2 - | LRB103 04410 HLH 73800 a |
|
|
1 | | equipment 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 |
5 | | employee works for a tenant of the quantum campus at a rate of |
6 | | at least 35 hours per week. Vacations, paid holidays, and sick |
7 | | time are included in this computation. Overtime is not |
8 | | considered a part of regular hours. |
9 | | "Quantum computing campus" or "campus" is a contiguous |
10 | | area located in the State of Illinois that is designated by the |
11 | | Department as a quantum computing campus in order to support |
12 | | the demand for quantum computing research, development, and |
13 | | implementation for practical use. A quantum computing campus |
14 | | may include educational intuitions, nonprofit research and |
15 | | development organizations, and for-profit organizations |
16 | | serving as anchor tenants and joining tenants that, with |
17 | | approval from the Department, may change. Tenants located at |
18 | | the campus shall have direct and supporting roles in quantum |
19 | | computing activities. Eligible tenants include quantum |
20 | | computer operators and research facilities, data centers, |
21 | | manufacturers and assemblers of quantum computers and |
22 | | component parts, cryogenic or refrigeration facilities, and |
23 | | other facilities determined, by industry and academic leaders, |
24 | | to be fundamental to the research and development of quantum |
25 | | computing for practical solutions. Quantum computing shall |
26 | | include the research, development, and use of computing |
|
| | 10300HB0817ham002 | - 3 - | LRB103 04410 HLH 73800 a |
|
|
1 | | methods that generate and manipulate quantum bits in a |
2 | | controlled quantum state. This includes the use of photons, |
3 | | semiconductors, superconductors, trapped ions, and other |
4 | | industry and academically regarded methods for simulating |
5 | | quantum bits. Additionally, a quantum campus shall meet the |
6 | | following 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 |
|
| | 10300HB0817ham002 | - 4 - | LRB103 04410 HLH 73800 a |
|
|
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 |
8 | | campus 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 |
26 | | under this Section shall be issued by the Department. Upon |
|
| | 10300HB0817ham002 | - 5 - | LRB103 04410 HLH 73800 a |
|
|
1 | | certification by the Department under this Section, the |
2 | | Department shall notify the Department of Revenue of the |
3 | | certification. The exemption status shall take effect within 3 |
4 | | months after certification of the taxpayer and notice to the |
5 | | Department of Revenue by the Department. |
6 | | (d) Entities seeking to form a quantum computing campus |
7 | | must apply to the Department in the manner specified by the |
8 | | Department. Entities seeking to join an established campus |
9 | | must apply for an amendment to the existing campus. This |
10 | | application for amendment must be submitted to the Department |
11 | | with support from other campus members. |
12 | | The Department shall determine the duration of |
13 | | certificates of exemption awarded under this Act. The duration |
14 | | of the certificates of exemption may not exceed 20 calendar |
15 | | years and one renewal for an additional 20 years. |
16 | | The Department and any tenant located in a quantum |
17 | | computing campus seeking the benefits under this Section must |
18 | | enter into a memorandum of understanding that, at a minimum, |
19 | | provides: |
20 | | (1) the details for determining the amount of capital |
21 | | investment to be made; |
22 | | (2) the number of new jobs created; |
23 | | (3) the timeline for achieving the capital investment |
24 | | and new job goals; |
25 | | (4) the repayment obligation should those goals not be |
26 | | achieved and any conditions under which repayment by the |
|
| | 10300HB0817ham002 | - 6 - | LRB103 04410 HLH 73800 a |
|
|
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 |
7 | | designation, send a letter of notification to each member of |
8 | | the General Assembly whose legislative district or |
9 | | representative district contains all or part of the designated |
10 | | area. |
11 | | (e) Beginning on July 1, 2025, and each year thereafter, |
12 | | the Department shall annually report to the Governor and the |
13 | | General Assembly on the outcomes and effectiveness of this |
14 | | amendatory Act of the 103rd General Assembly. The report shall |
15 | | include 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. |
|
| | 10300HB0817ham002 | - 7 - | LRB103 04410 HLH 73800 a |
|
|
1 | | (f) Tenants at the quantum computing campus seeking a |
2 | | certificate of exemption related to the construction of |
3 | | required facilities shall require the contractor and all |
4 | | subcontractors 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 |
12 | | exemption under the provisions of this Section after July 1, |
13 | | 2030. This sunset shall not affect any existing certificates |
14 | | of exemption in effect on July 1, 2030. |
15 | | (h) The Department shall adopt rules to implement and |
16 | | administer this Section. |
17 | | Section 10. The Illinois Enterprise Zone Act is amended by |
18 | | changing 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 |
22 | | in the encouragement, development, growth, and expansion of |
23 | | the private sector through large scale investment and |
24 | | development projects, the Department is authorized to receive |
|
| | 10300HB0817ham002 | - 8 - | LRB103 04410 HLH 73800 a |
|
|
1 | | and approve applications for the designation of "High Impact |
2 | | Businesses" in Illinois, for an initial term of 20 years with |
3 | | an option for renewal for a term not to exceed 20 years, |
4 | | subject 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 |
|
| | 10300HB0817ham002 | - 9 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 10 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 11 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 12 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 13 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 14 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 15 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 16 - | LRB103 04410 HLH 73800 a |
|
|
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 |
25 | | pursuant to subdivision (a)(3)(A) of this Section shall |
26 | | qualify for the credits and exemptions described in the |
|
| | 10300HB0817ham002 | - 17 - | LRB103 04410 HLH 73800 a |
|
|
1 | | following Acts: Section 9-222 and Section 9-222.1A of the |
2 | | Public Utilities Act, subsection (h) of Section 201 of the |
3 | | Illinois Income Tax Act, and Section 1d of the Retailers' |
4 | | Occupation Tax Act; provided that these credits and exemptions |
5 | | described in these Acts shall not be authorized until the |
6 | | minimum investments set forth in subdivision (a)(3)(A) of this |
7 | | Section have been placed in service in qualified properties |
8 | | and, in the case of the exemptions described in the Public |
9 | | Utilities Act and Section 1d of the Retailers' Occupation Tax |
10 | | Act, the minimum full-time equivalent jobs or full-time |
11 | | retained jobs set forth in subdivision (a)(3)(A) of this |
12 | | Section have been created or retained. Businesses designated |
13 | | as High Impact Businesses under this Section shall also |
14 | | qualify for the exemption described in Section 5l of the |
15 | | Retailers' Occupation Tax Act. The credit provided in |
16 | | subsection (h) of Section 201 of the Illinois Income Tax Act |
17 | | shall be applicable to investments in qualified property as |
18 | | set forth in subdivision (a)(3)(A) of this Section. |
19 | | (b-5) Businesses designated as High Impact Businesses |
20 | | pursuant 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 |
22 | | qualify for the credits and exemptions described in the |
23 | | following Acts: Section 51 of the Retailers' Occupation Tax |
24 | | Act, Section 9-222 and Section 9-222.1A of the Public |
25 | | Utilities Act, and subsection (h) of Section 201 of the |
26 | | Illinois Income Tax Act; however, the credits and exemptions |
|
| | 10300HB0817ham002 | - 18 - | LRB103 04410 HLH 73800 a |
|
|
1 | | authorized under Section 9-222 and Section 9-222.1A of the |
2 | | Public Utilities Act, and subsection (h) of Section 201 of the |
3 | | Illinois Income Tax Act shall not be authorized until the new |
4 | | electric generating facility, the new gasification facility, |
5 | | the new transmission facility, the new, expanded, or reopened |
6 | | coal mine, or the new cultured cell material food production |
7 | | facility, or the existing or planned grocery store is |
8 | | operational, except that a new electric generating facility |
9 | | whose primary fuel source is natural gas is eligible only for |
10 | | the exemption under Section 5l of the Retailers' Occupation |
11 | | Tax Act. |
12 | | (b-6) Businesses designated as High Impact Businesses |
13 | | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this |
14 | | Section shall qualify for the exemptions described in Section |
15 | | 5l of the Retailers' Occupation Tax Act; any business so |
16 | | designated as a High Impact Business being, for purposes of |
17 | | this Section, a "Wind Energy Business". |
18 | | (b-7) Beginning on January 1, 2021, businesses designated |
19 | | as High Impact Businesses by the Department shall qualify for |
20 | | the High Impact Business construction jobs credit under |
21 | | subsection (h-5) of Section 201 of the Illinois Income Tax Act |
22 | | if the business meets the criteria set forth in subsection (i) |
23 | | of this Section. The total aggregate amount of credits awarded |
24 | | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) |
25 | | shall not exceed $20,000,000 in any State fiscal year. |
26 | | (c) High Impact Businesses located in federally designated |
|
| | 10300HB0817ham002 | - 19 - | LRB103 04410 HLH 73800 a |
|
|
1 | | foreign trade zones or sub-zones are also eligible for |
2 | | additional credits, exemptions and deductions as described in |
3 | | the following Acts: Section 9-221 and Section 9-222.1 of the |
4 | | Public Utilities Act; and subsection (g) of Section 201, and |
5 | | Section 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 |
8 | | Section, existing Illinois businesses which apply for |
9 | | designation as a High Impact Business must provide the |
10 | | Department with the prospective plan for which 1,500 full-time |
11 | | retained jobs would be eliminated in the event that the |
12 | | business is not designated. |
13 | | (e) Except for new businesses contemplated under |
14 | | subdivision (a)(3)(E) , or subdivision (a)(3)(G) , or |
15 | | subdivision (a)(3)(H) of this Section, new proposed facilities |
16 | | which apply for designation as High Impact Business must |
17 | | provide the Department with proof of alternative non-Illinois |
18 | | sites which would receive the proposed investment and job |
19 | | creation in the event that the business is not designated as a |
20 | | High Impact Business. |
21 | | (f) Except for businesses contemplated under subdivision |
22 | | (a)(3)(E) , or subdivision (a)(3)(G) , or subdivision (a)(3)(H) |
23 | | of this Section, in the event that a business is designated a |
24 | | High Impact Business and it is later determined after |
25 | | reasonable notice and an opportunity for a hearing as provided |
26 | | under the Illinois Administrative Procedure Act, that the |
|
| | 10300HB0817ham002 | - 20 - | LRB103 04410 HLH 73800 a |
|
|
1 | | business would have placed in service in qualified property |
2 | | the investments and created or retained the requisite number |
3 | | of jobs without the benefits of the High Impact Business |
4 | | designation, the Department shall be required to immediately |
5 | | revoke the designation and notify the Director of the |
6 | | Department of Revenue who shall begin proceedings to recover |
7 | | all wrongfully exempted State taxes with interest. The |
8 | | business shall also be ineligible for all State funded |
9 | | Department programs for a period of 10 years. |
10 | | (g) The Department shall revoke a High Impact Business |
11 | | designation if the participating business fails to comply with |
12 | | the terms and conditions of the designation. |
13 | | (h) Prior to designating a business, the Department shall |
14 | | provide the members of the General Assembly and Commission on |
15 | | Government Forecasting and Accountability with a report |
16 | | setting forth the terms and conditions of the designation and |
17 | | guarantees that have been received by the Department in |
18 | | relation to the proposed business being designated. |
19 | | (i) High Impact Business construction jobs credit. |
20 | | Beginning on January 1, 2021, a High Impact Business may |
21 | | receive a tax credit against the tax imposed under subsections |
22 | | (a) and (b) of Section 201 of the Illinois Income Tax Act in an |
23 | | amount equal to 50% of the amount of the incremental income tax |
24 | | attributable to High Impact Business construction jobs credit |
25 | | employees employed in the course of completing a High Impact |
26 | | Business construction jobs project. However, the High Impact |
|
| | 10300HB0817ham002 | - 21 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Business construction jobs credit may equal 75% of the amount |
2 | | of the incremental income tax attributable to High Impact |
3 | | Business construction jobs credit employees if the High Impact |
4 | | Business construction jobs credit project is located in an |
5 | | underserved area. |
6 | | The Department shall certify to the Department of Revenue: |
7 | | (1) the identity of taxpayers that are eligible for the High |
8 | | Impact Business construction jobs credit; and (2) the amount |
9 | | of High Impact Business construction jobs credits that are |
10 | | claimed pursuant to subsection (h-5) of Section 201 of the |
11 | | Illinois Income Tax Act in each taxable year. Any business |
12 | | entity that receives a High Impact Business construction jobs |
13 | | credit shall maintain a certified payroll pursuant to |
14 | | subsection (j) of this Section. |
15 | | As used in this subsection (i): |
16 | | "High Impact Business construction jobs credit" means an |
17 | | amount equal to 50% (or 75% if the High Impact Business |
18 | | construction project is located in an underserved area) of the |
19 | | incremental income tax attributable to High Impact Business |
20 | | construction job employees. The total aggregate amount of |
21 | | credits awarded under the Blue Collar Jobs Act (Article 20 of |
22 | | Public Act 101-9) shall not exceed $20,000,000 in any State |
23 | | fiscal year |
24 | | "High Impact Business construction job employee" means a |
25 | | laborer or worker who is employed by a an Illinois contractor |
26 | | or subcontractor in the actual construction work on the site |
|
| | 10300HB0817ham002 | - 22 - | LRB103 04410 HLH 73800 a |
|
|
1 | | of a High Impact Business construction job project. |
2 | | "High Impact Business construction jobs project" means |
3 | | building a structure or building or making improvements of any |
4 | | kind to real property, undertaken and commissioned by a |
5 | | business that was designated as a High Impact Business by the |
6 | | Department. The term "High Impact Business construction jobs |
7 | | project" does not include the routine operation, routine |
8 | | repair, or routine maintenance of existing structures, |
9 | | buildings, or real property. |
10 | | "Incremental income tax" means the total amount withheld |
11 | | during the taxable year from the compensation of High Impact |
12 | | Business construction job employees. |
13 | | "Underserved area" means a geographic area that meets one |
14 | | or 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 |
4 | | engaged in and executing a High Impact Business Construction |
5 | | jobs project, as defined under subsection (i) of this Section, |
6 | | for a business that is entitled to a credit pursuant to |
7 | | subsection (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; |
|
| | 10300HB0817ham002 | - 24 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 25 - | LRB103 04410 HLH 73800 a |
|
|
1 | | A general contractor is not prohibited from relying on a |
2 | | certified payroll of a lower-tier subcontractor, provided the |
3 | | general contractor does not knowingly rely upon a |
4 | | subcontractor's false certification. |
5 | | Any contractor or subcontractor subject to this |
6 | | subsection, and any officer, employee, or agent of such |
7 | | contractor or subcontractor whose duty as an officer, |
8 | | employee, or agent it is to file a certified payroll under this |
9 | | subsection, who willfully fails to file such a certified |
10 | | payroll on or before the date such certified payroll is |
11 | | required by this paragraph to be filed and any person who |
12 | | willfully files a false certified payroll that is false as to |
13 | | any material fact is in violation of this Act and guilty of a |
14 | | Class A misdemeanor. |
15 | | The taxpayer in charge of the project shall keep the |
16 | | records submitted in accordance with this subsection on or |
17 | | after June 5, 2019 (the effective date of Public Act 101-9) for |
18 | | a period of 5 years from the date of the last payment for work |
19 | | on a contract or subcontract for the High Impact Business |
20 | | construction jobs project. |
21 | | The records submitted in accordance with this subsection |
22 | | shall be considered public records, except an employee's |
23 | | address, telephone number, and social security number, and |
24 | | made available in accordance with the Freedom of Information |
25 | | Act. The Department of Labor shall share the information with |
26 | | the Department in order to comply with the awarding of a High |
|
| | 10300HB0817ham002 | - 26 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Impact Business construction jobs credit. A contractor, |
2 | | subcontractor, or public body may retain records required |
3 | | under this Section in paper or electronic format. |
4 | | (j-5) Annually, until construction is completed, a company |
5 | | seeking High Impact Business Construction Job credits shall |
6 | | submit a report that, at a minimum, describes the projected |
7 | | project scope, timeline, and anticipated budget. Once the |
8 | | project has commenced, the annual report shall include actual |
9 | | data for the prior year as well as projections for each |
10 | | additional year through completion of the project. The |
11 | | Department shall issue detailed reporting guidelines |
12 | | prescribing the requirements of construction-related reports. |
13 | | In order to receive credit for construction expenses, the |
14 | | company must provide the Department with evidence that a |
15 | | certified third-party executed an Agreed-Upon Procedure (AUP) |
16 | | verifying the construction expenses or accept the standard |
17 | | construction wage expense estimated by the Department. |
18 | | Upon review of the final project scope, timeline, budget, |
19 | | and AUP, the Department shall issue a tax credit certificate |
20 | | reflecting a percentage of the total construction job wages |
21 | | paid throughout the completion of the project. |
22 | | (k) Upon 7 business days' notice, each taxpayer contractor |
23 | | and subcontractor shall make available to each State agency |
24 | | and to federal, State, or local law enforcement agencies and |
25 | | prosecutors for inspection and copying at a location within |
26 | | this State during reasonable hours, the report under |
|
| | 10300HB0817ham002 | - 27 - | LRB103 04410 HLH 73800 a |
|
|
1 | | subsection (j-5) records identified in this subsection (j) to |
2 | | the taxpayer in charge of the High Impact Business |
3 | | construction jobs project, its officers and agents, the |
4 | | Director of the Department of Labor and his or her deputies and |
5 | | agents, and to federal, State, or local law enforcement |
6 | | agencies and prosecutors . |
7 | | (l) The changes made to this Section by Public Act |
8 | | 102-1125 this amendatory Act of the 102nd General Assembly , |
9 | | other than the changes in subsection (a), apply to High Impact |
10 | | Businesses high impact businesses that submit applications on |
11 | | or after February 3, 2023 ( the effective date of Public Act |
12 | | 102-1125) this amendatory Act of the 102nd General Assembly . |
13 | | (Source: P.A. 102-108, eff. 1-1-22; 102-558, eff. 8-20-21; |
14 | | 102-605, eff. 8-27-21; 102-662, eff. 9-15-21; 102-673, eff. |
15 | | 11-30-21; 102-813, eff. 5-13-22; 102-1125, eff. 2-3-23; 103-9, |
16 | | eff. 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 |
20 | | certified Enterprise Zone that makes a capital investment of |
21 | | at least $10,000,000 in an Enterprise Zone construction jobs |
22 | | project may receive an Enterprise Zone construction jobs |
23 | | credit against the tax imposed under subsections (a) and (b) |
24 | | of Section 201 of the Illinois Income Tax Act in an amount |
25 | | equal to 50% of the amount of the incremental income tax |
|
| | 10300HB0817ham002 | - 28 - | LRB103 04410 HLH 73800 a |
|
|
1 | | attributable to Enterprise Zone construction jobs credit |
2 | | employees employed in the course of completing an Enterprise |
3 | | Zone construction jobs project. However, the Enterprise Zone |
4 | | construction jobs credit may equal 75% of the amount of the |
5 | | incremental income tax attributable to Enterprise Zone |
6 | | construction jobs credit employees if the project is located |
7 | | in an underserved area. |
8 | | (b) A business entity seeking a credit under this Section |
9 | | must submit an application to the Department and must receive |
10 | | approval from the designating municipality or county and the |
11 | | Department for the Enterprise Zone construction jobs credit |
12 | | project. The application must describe the nature and benefit |
13 | | of the project to the certified Enterprise Zone and its |
14 | | potential contributors. The total aggregate amount of credits |
15 | | awarded under the Blue Collar Jobs Act (Article 20 of Public |
16 | | Act 101-9) shall not exceed $20,000,000 in any State fiscal |
17 | | year. |
18 | | Within 45 days after receipt of an application, the |
19 | | Department shall give notice to the applicant as to whether |
20 | | the application has been approved or disapproved. If the |
21 | | Department disapproves the application, it shall specify the |
22 | | reasons for this decision and allow 60 days for the applicant |
23 | | to amend and resubmit its application. The Department shall |
24 | | provide assistance upon request to applicants. Resubmitted |
25 | | applications shall receive the Department's approval or |
26 | | disapproval within 30 days after the application is |
|
| | 10300HB0817ham002 | - 29 - | LRB103 04410 HLH 73800 a |
|
|
1 | | resubmitted. Those resubmitted applications satisfying initial |
2 | | Department objectives shall be approved unless reasonable |
3 | | circumstances warrant disapproval. |
4 | | On an annual basis, the designated zone organization shall |
5 | | furnish a statement to the Department on the programmatic and |
6 | | financial status of any approved project and an audited |
7 | | financial statement of the project. |
8 | | The Department shall certify to the Department of Revenue |
9 | | the identity of taxpayers who are eligible for the credits and |
10 | | the amount of credits that are claimed pursuant to |
11 | | subparagraph (8) of subsection (f) of Section 201 the Illinois |
12 | | Income Tax Act. |
13 | | The Enterprise Zone construction jobs credit project must |
14 | | be undertaken by the business entity in the course of |
15 | | completing a project that complies with the criteria contained |
16 | | in Section 4 of this Act and is undertaken in a certified |
17 | | Enterprise Zone. The Department shall adopt any necessary |
18 | | rules for the implementation of this subsection (b). |
19 | | (c) (Blank). Any business entity that receives an |
20 | | Enterprise Zone construction jobs credit shall maintain a |
21 | | certified payroll pursuant to subsection (d) of this Section. |
22 | | (d) Annually, until construction is completed, a company |
23 | | seeking Enterprise Zone construction job credits shall submit |
24 | | a report that, at a minimum, describes the projected project |
25 | | scope, timeline, and anticipated budget. Once the project has |
26 | | commenced, the annual report shall include actual data for the |
|
| | 10300HB0817ham002 | - 30 - | LRB103 04410 HLH 73800 a |
|
|
1 | | prior year as well as projections for each additional year |
2 | | through completion of the project. The Department shall issue |
3 | | detailed reporting guidelines prescribing the requirements of |
4 | | construction-related reports. |
5 | | In order to receive credit for construction expenses, the |
6 | | company must provide the Department with evidence that a |
7 | | certified third-party executed an Agreed-Upon Procedure (AUP) |
8 | | verifying the construction expenses or accept the standard |
9 | | construction wage expense estimated by the Department. |
10 | | Upon review of the final project scope, timeline, budget, |
11 | | and AUP, the Department shall issue a tax credit certificate |
12 | | reflecting a percentage of the total construction job wages |
13 | | paid throughout the completion of the project. |
14 | | Each contractor and subcontractor who is engaged in and is |
15 | | executing an Enterprise Zone construction jobs credit project |
16 | | for a business that is entitled to a credit pursuant to this |
17 | | Section 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; |
|
| | 10300HB0817ham002 | - 31 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 32 - | LRB103 04410 HLH 73800 a |
|
|
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 |
9 | | certified payroll of a lower-tier subcontractor, provided the |
10 | | general contractor does not knowingly rely upon a |
11 | | subcontractor's false certification. |
12 | | Any contractor or subcontractor subject to this |
13 | | subsection, and any officer, employee, or agent of such |
14 | | contractor or subcontractor whose duty as an officer, |
15 | | employee, or agent it is to file a certified payroll under this |
16 | | subsection, who willfully fails to file such a certified |
17 | | payroll on or before the date such certified payroll is |
18 | | required by this paragraph to be filed and any person who |
19 | | willfully files a false certified payroll that is false as to |
20 | | any material fact is in violation of this Act and guilty of a |
21 | | Class A misdemeanor. |
22 | | The taxpayer in charge of the project shall keep the |
23 | | records submitted in accordance with this subsection on or |
24 | | after June 5, 2019 (the effective date of Public Act 101-9) for |
25 | | a period of 5 years from the date of the last payment for work |
26 | | on a contract or subcontract for the project. |
|
| | 10300HB0817ham002 | - 33 - | LRB103 04410 HLH 73800 a |
|
|
1 | | The records submitted in accordance with this subsection |
2 | | shall be considered public records, except an employee's |
3 | | address, telephone number, and social security number, and |
4 | | made available in accordance with the Freedom of Information |
5 | | Act. The Department of Labor shall accept any reasonable |
6 | | submissions by the contractor that meet the requirements of |
7 | | this subsection and shall share the information with the |
8 | | Department in order to comply with the awarding of Enterprise |
9 | | Zone construction jobs credits. A contractor, subcontractor, |
10 | | or public body may retain records required under this Section |
11 | | in paper or electronic format. |
12 | | Upon 7 business days' notice, the taxpayer contractor and |
13 | | each subcontractor shall make available to any State agency |
14 | | and to federal, State, or local law enforcement agencies and |
15 | | prosecutors for inspection and copying at a location within |
16 | | this State during reasonable hours, the report under this |
17 | | subsection (d) records identified in paragraph (1) of this |
18 | | subsection to the taxpayer in charge of the project, its |
19 | | officers and agents, the Director of Labor and his or her |
20 | | deputies and agents, and to federal, State, or local law |
21 | | enforcement agencies and prosecutors . |
22 | | (e) As used in this Section: |
23 | | "Enterprise Zone construction jobs credit" means an amount |
24 | | equal to 50% (or 75% if the project is located in an |
25 | | underserved area) of the incremental income tax attributable |
26 | | to Enterprise Zone construction jobs credit employees. |
|
| | 10300HB0817ham002 | - 34 - | LRB103 04410 HLH 73800 a |
|
|
1 | | "Enterprise Zone construction jobs credit employee" means |
2 | | a laborer or worker who is employed by a an Illinois contractor |
3 | | or subcontractor in the actual construction work on the site |
4 | | of an Enterprise Zone construction jobs credit project. |
5 | | "Enterprise Zone construction jobs credit project" means |
6 | | building a structure or building or making improvements of any |
7 | | kind to real property commissioned and paid for by a business |
8 | | that has applied and been approved for an Enterprise Zone |
9 | | construction jobs credit pursuant to this Section. "Enterprise |
10 | | Zone construction jobs credit project" does not include the |
11 | | routine operation, routine repair, or routine maintenance of |
12 | | existing structures, buildings, or real property. |
13 | | "Incremental income tax" means the total amount withheld |
14 | | during the taxable year from the compensation of Enterprise |
15 | | Zone construction jobs credit employees. |
16 | | "Underserved area" means a geographic area that meets one |
17 | | or 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 |
|
| | 10300HB0817ham002 | - 35 - | LRB103 04410 HLH 73800 a |
|
|
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; |
7 | | 102-558, eff. 8-20-21 .) |
8 | | Section 15. The Reimagining Energy and Vehicles in |
9 | | Illinois Act is amended by changing Sections 10, 20, 35, 45, |
10 | | 65, 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 |
14 | | battery cell that can be integrated into a module, pack, or |
15 | | system to be used in energy storage applications, including a |
16 | | battery used in an electric vehicle or the electric grid. |
17 | | "Advanced battery component" means a component of an |
18 | | advanced battery, including materials, enhancements, |
19 | | enclosures, anodes, cathodes, electrolytes, cells, and other |
20 | | associated technologies that comprise an advanced battery. |
21 | | "Agreement" means the agreement between a taxpayer and the |
22 | | Department under the provisions of Section 45 of this Act. |
23 | | "Applicant" means a taxpayer that (i) operates a business |
24 | | in Illinois or is planning to locate a business within the |
|
| | 10300HB0817ham002 | - 36 - | LRB103 04410 HLH 73800 a |
|
|
1 | | State of Illinois and (ii) is engaged in interstate or |
2 | | intrastate commerce as an electric vehicle manufacturer, an |
3 | | electric vehicle component parts manufacturer, or an electric |
4 | | vehicle power supply equipment manufacturer. For applications |
5 | | for credits under this Act that are submitted on or after the |
6 | | effective date of this amendatory Act of the 102nd General |
7 | | Assembly, "applicant" also includes a taxpayer that (i) |
8 | | operates a business in Illinois or is planning to locate a |
9 | | business within the State of Illinois and (ii) is engaged in |
10 | | interstate or intrastate commerce as a renewable energy |
11 | | manufacturer. "Applicant" does not include a taxpayer who |
12 | | closes or substantially reduces by more than 50% operations at |
13 | | one location in the State and relocates substantially the same |
14 | | operation to another location in the State. This does not |
15 | | prohibit a Taxpayer from expanding its operations at another |
16 | | location in the State. This also does not prohibit a Taxpayer |
17 | | from moving its operations from one location in the State to |
18 | | another location in the State for the purpose of expanding the |
19 | | operation, provided that the Department determines that |
20 | | expansion cannot reasonably be accommodated within the |
21 | | municipality or county in which the business is located, or, |
22 | | in the case of a business located in an incorporated area of |
23 | | the county, within the county in which the business is |
24 | | located, after conferring with the chief elected official of |
25 | | the municipality or county and taking into consideration any |
26 | | evidence offered by the municipality or county regarding the |
|
| | 10300HB0817ham002 | - 37 - | LRB103 04410 HLH 73800 a |
|
|
1 | | ability to accommodate expansion within the municipality or |
2 | | county. |
3 | | "Battery raw materials" means the raw and processed form |
4 | | of a mineral, metal, chemical, or other material used in an |
5 | | advanced battery component. |
6 | | "Battery raw materials refining service provider" means a |
7 | | business that operates a facility that filters, sifts, and |
8 | | treats battery raw materials for use in an advanced battery. |
9 | | "Battery recycling and reuse manufacturer" means a |
10 | | manufacturer that is primarily engaged in the recovery, |
11 | | retrieval, processing, recycling, or recirculating of battery |
12 | | raw materials for new use in electric vehicle batteries. |
13 | | "Capital improvements" means the purchase, renovation, |
14 | | rehabilitation, or construction of permanent tangible land, |
15 | | buildings, structures, equipment, and furnishings in an |
16 | | approved project sited in Illinois and expenditures for goods |
17 | | or services that are normally capitalized, including |
18 | | organizational costs and research and development costs |
19 | | incurred in Illinois. For land, buildings, structures, and |
20 | | equipment that are leased, the lease must equal or exceed the |
21 | | term of the agreement, and the cost of the property shall be |
22 | | determined from the present value, using the corporate |
23 | | interest rate prevailing at the time of the application, of |
24 | | the lease payments. |
25 | | "Credit" means either a "REV Illinois Credit" or a "REV |
26 | | Construction Jobs Credit" agreed to between the Department and |
|
| | 10300HB0817ham002 | - 38 - | LRB103 04410 HLH 73800 a |
|
|
1 | | applicant under this Act. |
2 | | "Department" means the Department of Commerce and Economic |
3 | | Opportunity. |
4 | | "Director" means the Director of Commerce and Economic |
5 | | Opportunity. |
6 | | "Electric vehicle" means a vehicle that is exclusively |
7 | | powered by and refueled by electricity, including electricity |
8 | | generated through a hydrogen fuel cells or solar technology. |
9 | | "Electric vehicle" , except when referencing aircraft with |
10 | | hybrid electric propulsion systems, does not include hybrid |
11 | | electric vehicles, electric bicycles, or extended-range |
12 | | electric vehicles that are also equipped with conventional |
13 | | fueled propulsion or auxiliary engines. |
14 | | "Electric vehicle manufacturer" means a new or existing |
15 | | manufacturer that is primarily focused on reequipping, |
16 | | expanding, or establishing a manufacturing facility in |
17 | | Illinois that produces electric vehicles as defined in this |
18 | | Section. |
19 | | "Electric vehicle component parts manufacturer" means a |
20 | | new or existing manufacturer that is focused on reequipping, |
21 | | expanding, or establishing a manufacturing facility in |
22 | | Illinois that produces parts or accessories used in electric |
23 | | vehicles, as defined by this Section, including advanced |
24 | | battery component parts. The changes to this definition of |
25 | | "electric vehicle component parts manufacturer" apply to |
26 | | agreements under this Act that are entered into on or after the |
|
| | 10300HB0817ham002 | - 39 - | LRB103 04410 HLH 73800 a |
|
|
1 | | effective date of this amendatory Act of the 102nd General |
2 | | Assembly. |
3 | | "Electric vehicle power supply equipment" means the |
4 | | equipment used specifically for the purpose of delivering |
5 | | electricity to an electric vehicle, including hydrogen fuel |
6 | | cells or solar refueling infrastructure. |
7 | | "Electric vehicle power supply manufacturer" means a new |
8 | | or existing manufacturer that is focused on reequipping, |
9 | | expanding, or establishing a manufacturing facility in |
10 | | Illinois that produces electric vehicle power supply equipment |
11 | | used for the purpose of delivering electricity to an electric |
12 | | vehicle, including hydrogen fuel cell or solar refueling |
13 | | infrastructure. |
14 | | "Electric vehicle powertrain technology" means equipment |
15 | | used to convert electricity for use in aerospace propulsion. |
16 | | "Electric vehicle powertrain technology manufacturer" |
17 | | means a new or existing manufacturer that is focused on |
18 | | reequipping, expanding or establishing a manufacturing |
19 | | facility in Illinois that develops and validates electric |
20 | | vehicle powertrain technology for use in aerospace propulsion. |
21 | | "Electric vertical takeoff and landing aircraft" or "eVTOL |
22 | | aircraft" means a fully electric aircraft that lands and takes |
23 | | off vertically. |
24 | | "Energy Transition Area" means a county with less than |
25 | | 100,000 people or a municipality that contains one or more of |
26 | | the following: |
|
| | 10300HB0817ham002 | - 40 - | LRB103 04410 HLH 73800 a |
|
|
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 |
12 | | for consideration for at least 35 hours each week or who |
13 | | renders any other standard of service generally accepted by |
14 | | industry custom or practice as full-time employment. An |
15 | | individual for whom a W-2 is issued by a Professional Employer |
16 | | Organization (PEO) is a full-time employee if employed in the |
17 | | service of the applicant for consideration for at least 35 |
18 | | hours each week. |
19 | | "Green steel manufacturer" means an entity that |
20 | | manufactures steel without the use of fossil fuels and with |
21 | | zero net carbon emissions. |
22 | | "Incremental income tax" means the total amount withheld |
23 | | during the taxable year from the compensation of new employees |
24 | | and, if applicable, retained employees under Article 7 of the |
25 | | Illinois Income Tax Act arising from employment at a project |
26 | | that is the subject of an agreement. |
|
| | 10300HB0817ham002 | - 41 - | LRB103 04410 HLH 73800 a |
|
|
1 | | "Institution of higher education" or "institution" means |
2 | | any accredited public or private university, college, |
3 | | community college, business, technical, or vocational school, |
4 | | or other accredited educational institution offering degrees |
5 | | and instruction beyond the secondary school level. |
6 | | "Minority person" means a minority person as defined in |
7 | | the Business Enterprise for Minorities, Women, and Persons |
8 | | with Disabilities Act. |
9 | | "New employee" means a newly-hired full-time employee |
10 | | employed to work at the project site and whose work is directly |
11 | | related to the project. |
12 | | "Noncompliance date" means, in the case of a taxpayer that |
13 | | is not complying with the requirements of the agreement or the |
14 | | provisions of this Act, the day following the last date upon |
15 | | which the taxpayer was in compliance with the requirements of |
16 | | the agreement and the provisions of this Act, as determined by |
17 | | the Director, pursuant to Section 70. |
18 | | "Pass-through entity" means an entity that is exempt from |
19 | | the tax under subsection (b) or (c) of Section 205 of the |
20 | | Illinois Income Tax Act. |
21 | | "Placed in service" means the state or condition of |
22 | | readiness, availability for a specifically assigned function, |
23 | | and the facility is constructed and ready to conduct its |
24 | | facility operations to manufacture goods. |
25 | | "Professional employer organization" (PEO) means an |
26 | | employee leasing company, as defined in Section 206.1 of the |
|
| | 10300HB0817ham002 | - 42 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Illinois Unemployment Insurance Act. |
2 | | "Program" means the Reimagining Energy and Vehicles in |
3 | | Illinois Program (the REV Illinois Program) established in |
4 | | this Act. |
5 | | "Project" or "REV Illinois Project" means a for-profit |
6 | | economic development activity for the manufacture of electric |
7 | | vehicles, electric vehicle component parts, electric vehicle |
8 | | power supply equipment, or renewable energy products, which is |
9 | | designated by the Department as a REV Illinois Project and is |
10 | | the subject of an agreement. |
11 | | "Recycling facility" means a location at which the |
12 | | taxpayer disposes of batteries and other component parts in |
13 | | manufacturing of electric vehicles, electric vehicle component |
14 | | parts, or electric vehicle power supply equipment. |
15 | | "Related member" means a person that, with respect to the |
16 | | taxpayer during any portion of the taxable year, is any one of |
17 | | the 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, |
|
| | 10300HB0817ham002 | - 43 - | LRB103 04410 HLH 73800 a |
|
|
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 |
26 | | materials and sources of energy through which renewable energy |
|
| | 10300HB0817ham002 | - 44 - | LRB103 04410 HLH 73800 a |
|
|
1 | | resources are generated. |
2 | | "Renewable energy manufacturer" means a manufacturer whose |
3 | | primary function is to manufacture or assemble: (i) equipment, |
4 | | systems, or products used to produce renewable or nuclear |
5 | | energy; (ii) products used for energy conservation, storage, |
6 | | or grid efficiency purposes; or (iii) component parts for that |
7 | | equipment or those systems or products. |
8 | | "Renewable energy resources" has the meaning ascribed to |
9 | | that term in Section 1-10 of the Illinois Power Agency Act. |
10 | | "Research and development" means work directed toward the |
11 | | innovation, introduction, and improvement of products and |
12 | | processes. "Research and development" includes all levels of |
13 | | research and development that directly result in the potential |
14 | | manufacturing and marketability of renewable energy, electric |
15 | | vehicles, electric vehicle component parts, and electric or |
16 | | hybrid aircraft. |
17 | | "Retained employee" means a full-time employee employed by |
18 | | the taxpayer prior to the term of the Agreement who continues |
19 | | to be employed during the term of the agreement whose job |
20 | | duties are directly related to the project. The term "retained |
21 | | employee" does not include any individual who has a direct or |
22 | | an indirect ownership interest of at least 5% in the profits, |
23 | | equity, capital, or value of the taxpayer or a child, |
24 | | grandchild, parent, or spouse, other than a spouse who is |
25 | | legally separated from the individual, of any individual who |
26 | | has a direct or indirect ownership of at least 5% in the |
|
| | 10300HB0817ham002 | - 45 - | LRB103 04410 HLH 73800 a |
|
|
1 | | profits, equity, capital, or value of the taxpayer. The |
2 | | changes to this definition of "retained employee" apply to |
3 | | agreements for credits under this Act that are entered into on |
4 | | or after the effective date of this amendatory Act of the 102nd |
5 | | General Assembly. |
6 | | "REV Illinois credit" means a credit agreed to between the |
7 | | Department and the applicant under this Act that is based on |
8 | | the incremental income tax attributable to new employees and, |
9 | | if applicable, retained employees, and on training costs for |
10 | | such employees at the applicant's project. |
11 | | "REV construction jobs credit" means a credit agreed to |
12 | | between the Department and the applicant under this Act that |
13 | | is based on the incremental income tax attributable to |
14 | | construction wages paid in connection with construction of the |
15 | | project facilities. |
16 | | "Statewide baseline" means the total number of full-time |
17 | | employees of the applicant and any related member employed by |
18 | | such entities at the time of application for incentives under |
19 | | this Act. |
20 | | "Taxpayer" means an individual, corporation, partnership, |
21 | | or other entity that has a legal obligation to pay Illinois |
22 | | income taxes and file an Illinois income tax return. |
23 | | "Training costs" means costs incurred to upgrade the |
24 | | technological skills of full-time employees in Illinois and |
25 | | includes: curriculum development; training materials |
26 | | (including scrap product costs); trainee domestic travel |
|
| | 10300HB0817ham002 | - 46 - | LRB103 04410 HLH 73800 a |
|
|
1 | | expenses; instructor costs (including wages, fringe benefits, |
2 | | tuition and domestic travel expenses); rent, purchase or lease |
3 | | of training equipment; and other usual and customary training |
4 | | costs. "Training costs" do not include costs associated with |
5 | | travel outside the United States (unless the Taxpayer receives |
6 | | prior written approval for the travel by the Director based on |
7 | | a showing of substantial need or other proof the training is |
8 | | not reasonably available within the United States), wages and |
9 | | fringe benefits of employees during periods of training, or |
10 | | administrative cost related to full-time employees of the |
11 | | taxpayer. |
12 | | "Underserved area" means any geographic area areas as |
13 | | defined in Section 5-5 of the Economic Development for a |
14 | | Growing Economy Tax Credit Act. |
15 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
16 | | 102-1112, 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 |
20 | | Illinois) Program is hereby established and shall be |
21 | | administered by the Department. The Program will provide |
22 | | financial incentives to any one or more of the following: (1) |
23 | | eligible manufacturers of electric vehicles, electric vehicle |
24 | | component parts, and electric vehicle power supply equipment; |
25 | | (2) battery recycling and reuse manufacturers; (3) battery raw |
|
| | 10300HB0817ham002 | - 47 - | LRB103 04410 HLH 73800 a |
|
|
1 | | materials refining service providers; or (4) renewable energy |
2 | | manufacturers. |
3 | | (b) Any taxpayer planning a project to be located in |
4 | | Illinois may request consideration for designation of its |
5 | | project as a REV Illinois Project, by formal written letter of |
6 | | request or by formal application to the Department, in which |
7 | | the applicant states its intent to make at least a specified |
8 | | level of investment and intends to hire a specified number of |
9 | | full-time employees at a designated location in Illinois. As |
10 | | circumstances require, the Department shall require a formal |
11 | | application from an applicant and a formal letter of request |
12 | | for assistance. |
13 | | (c) In order to qualify for credits under the REV Illinois |
14 | | Program, 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 |
|
| | 10300HB0817ham002 | - 48 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 49 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 50 - | LRB103 04410 HLH 73800 a |
|
|
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; |
|
| | 10300HB0817ham002 | - 51 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 52 - | LRB103 04410 HLH 73800 a |
|
|
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 |
19 | | creating the full-time employee jobs noted in subsection (c), |
20 | | those jobs must have a total compensation equal to or greater |
21 | | than 120% of the average wage paid to full-time employees in |
22 | | the county where the project is located, as determined by the |
23 | | U.S. Bureau of Labor Statistics. For agreements entered into |
24 | | on or after April 19, 2022 (the effective date of Public Act |
25 | | 102-700), for any applicant creating the full-time employee |
26 | | jobs noted in subsection (c), those jobs must have a |
|
| | 10300HB0817ham002 | - 53 - | LRB103 04410 HLH 73800 a |
|
|
1 | | compensation equal to or greater than 120% of the average wage |
2 | | paid to full-time employees in a similar position within an |
3 | | occupational group in the county where the project is located, |
4 | | as determined by the Department. |
5 | | (e) For any applicant, within 24 months after being placed |
6 | | in service, it must certify to the Department that it is carbon |
7 | | neutral or has attained certification under one of more of the |
8 | | following 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 |
19 | | commitment to recruit and hire full-time employee positions at |
20 | | the project site. The hiring plan may include a partnership |
21 | | with an institution of higher education to provide |
22 | | internships, including, but not limited to, internships |
23 | | supported by the Clean Jobs Workforce Network Program, or |
24 | | full-time permanent employment for students at the project |
25 | | site. Additionally, the applicant may create or utilize |
26 | | participants from apprenticeship programs that are approved by |
|
| | 10300HB0817ham002 | - 54 - | LRB103 04410 HLH 73800 a |
|
|
1 | | and registered with the United States Department of Labor's |
2 | | Bureau of Apprenticeship and Training. The applicant may apply |
3 | | for apprenticeship education expense credits in accordance |
4 | | with the provisions set forth in 14 Ill. Adm. Code 522. Each |
5 | | applicant is required to report annually, on or before April |
6 | | 15, on the diversity of its workforce in accordance with |
7 | | Section 50 of this Act. For existing facilities of applicants |
8 | | under paragraph (3) of subsection (b) above, if the taxpayer |
9 | | expects a reduction in force due to its transition to |
10 | | manufacturing electric vehicle, electric vehicle component |
11 | | parts, or electric vehicle power supply equipment, the plan |
12 | | submitted under this Section must outline the taxpayer's plan |
13 | | to assist with retraining its workforce aligned with the |
14 | | taxpayer's adoption of new technologies and anticipated |
15 | | efforts to retrain employees through employment opportunities |
16 | | within the taxpayer's workforce. |
17 | | (g) Each applicant must demonstrate a contractual or other |
18 | | relationship with a recycling facility, or demonstrate its own |
19 | | recycling capabilities, at the time of application and report |
20 | | annually a continuing contractual or other relationship with a |
21 | | recycling facility and the percentage of batteries used in |
22 | | electric vehicles recycled throughout the term of the |
23 | | agreement. |
24 | | (h) A taxpayer may not enter into more than one agreement |
25 | | under this Act with respect to a single address or location for |
26 | | the same period of time. Also, a taxpayer may not enter into an |
|
| | 10300HB0817ham002 | - 55 - | LRB103 04410 HLH 73800 a |
|
|
1 | | agreement under this Act with respect to a single address or |
2 | | location for the same period of time for which the taxpayer |
3 | | currently holds an active agreement under the Economic |
4 | | Development for a Growing Economy Tax Credit Act. This |
5 | | provision does not preclude the applicant from entering into |
6 | | an additional agreement after the expiration or voluntary |
7 | | termination of an earlier agreement under this Act or under |
8 | | the Economic Development for a Growing Economy Tax Credit Act |
9 | | to the extent that the taxpayer's application otherwise |
10 | | satisfies the terms and conditions of this Act and is approved |
11 | | by the Department. An applicant with an existing agreement |
12 | | under the Economic Development for a Growing Economy Tax |
13 | | Credit Act may submit an application for an agreement under |
14 | | this Act after it terminates any existing agreement under the |
15 | | Economic Development for a Growing Economy Tax Credit Act with |
16 | | respect to the same address or location. If a project that is |
17 | | subject to an existing agreement under the Economic |
18 | | Development for a Growing Economy Tax Credit Act meets the |
19 | | requirements to be designated as a REV Illinois project under |
20 | | this Act, including for actions undertaken prior to the |
21 | | effective date of this Act, the taxpayer that is subject to |
22 | | that existing agreement under the Economic Development for a |
23 | | Growing Economy Tax Credit Act may apply to the Department to |
24 | | amend the agreement to allow the project to become a |
25 | | designated REV Illinois project. Following the amendment, time |
26 | | accrued during which the project was eligible for credits |
|
| | 10300HB0817ham002 | - 56 - | LRB103 04410 HLH 73800 a |
|
|
1 | | under the existing agreement under the Economic Development |
2 | | for a Growing Economy Tax Credit Act shall count toward the |
3 | | duration of the credit subject to limitations described in |
4 | | Section 40 of this Act. |
5 | | (i) If, at any time following the designation of a project |
6 | | as a REV Illinois Project by the Department and prior to the |
7 | | termination or expiration of an agreement under this Act, the |
8 | | project ceases to qualify as a REV Illinois project because |
9 | | the taxpayer is no longer an electric vehicle manufacturer, an |
10 | | electric vehicle component manufacturer, an electric vehicle |
11 | | power supply equipment manufacturer, a battery recycling and |
12 | | reuse manufacturer, or a battery raw materials refining |
13 | | service provider, or an entity engaged in eVTOL or hybrid |
14 | | electric or fully electric propulsion systems for airliners |
15 | | research, development, or manufacturing, that project may |
16 | | receive tax credit awards as described in Section 5-15 and |
17 | | Section 5-51 of the Economic Development for a Growing Economy |
18 | | Tax Credit Act, as long as the project continues to meet |
19 | | requirements to obtain those credits as described in the |
20 | | Economic Development for a Growing Economy Tax Credit Act and |
21 | | remains compliant with terms contained in the Agreement under |
22 | | this Act not related to their status as an electric vehicle |
23 | | manufacturer, an electric vehicle component manufacturer, an |
24 | | electric vehicle power supply equipment manufacturer, a |
25 | | battery recycling and reuse manufacturer, or a battery raw |
26 | | materials refining service provider , or an entity engaged in |
|
| | 10300HB0817ham002 | - 57 - | LRB103 04410 HLH 73800 a |
|
|
1 | | eVTOL or hybrid-electric or fully electric propulsion systems |
2 | | for airliners research, development, or manufacturing . Time |
3 | | accrued during which the project was eligible for credits |
4 | | under an agreement under this Act shall count toward the |
5 | | duration of the credit subject to limitations described in |
6 | | Section 5-45 of the Economic Development for a Growing Economy |
7 | | Tax Credit Act. |
8 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
9 | | 102-1112, eff. 12-21-22; 102-1125, eff. 2-3-23; 103-9, eff. |
10 | | 6-7-23.) |
11 | | (20 ILCS 686/35) |
12 | | Sec. 35. Relocation of jobs in Illinois. A taxpayer is not |
13 | | entitled to claim a credit provided by this Act with respect to |
14 | | any jobs that the Taxpayer relocates from one site in Illinois |
15 | | to another site in Illinois unless the taxpayer has agreed to |
16 | | hire the minimum number of new employees and the Department |
17 | | has determined that the expansion cannot reasonably be |
18 | | accommodated within the municipality in which the business is |
19 | | located . Any full-time employee relocated to Illinois in |
20 | | connection with a qualifying project is deemed to be a new |
21 | | employee for purposes of this Act. Determinations under this |
22 | | Section shall be made by the Department. |
23 | | (Source: P.A. 102-669, eff. 11-16-21.) |
24 | | (20 ILCS 686/45) |
|
| | 10300HB0817ham002 | - 58 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Sec. 45. Contents of agreements with applicants. |
2 | | (a) The Department shall enter into an agreement with an |
3 | | applicant that is awarded a credit under this Act. The |
4 | | agreement 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 |
|
| | 10300HB0817ham002 | - 59 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 60 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 61 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 62 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 63 - | LRB103 04410 HLH 73800 a |
|
|
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 |
4 | | each agreement entered into under this Act. Such information |
5 | | shall be posted within 10 days after entering into the |
6 | | agreement 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; |
16 | | 103-9, 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 |
20 | | subcontractor that is engaged in construction work on project |
21 | | facilities for a taxpayer who seeks to apply for a REV |
22 | | Construction Jobs credit shall annually, until construction is |
23 | | completed, submit a report that, at a minimum, describes the |
24 | | projected project scope, timeline, and anticipated budget. |
25 | | Once the project has commenced, the annual report shall |
|
| | 10300HB0817ham002 | - 64 - | LRB103 04410 HLH 73800 a |
|
|
1 | | include actual data for the prior year as well as projections |
2 | | for each additional year through completion of the project. |
3 | | The Department shall issue detailed reporting guidelines |
4 | | prescribing the requirements of construction related reports. : |
5 | | In order to receive credit for construction expenses, the |
6 | | company must provide the Department with evidence that a |
7 | | certified third-party executed an Agreed-Upon Procedure (AUP) |
8 | | verifying the construction expenses or accept the standard |
9 | | construction wage expense estimated by the Department. |
10 | | Upon review of the final project scope, timeline, budget, |
11 | | and AUP, the Department shall issue a tax credit certificate |
12 | | reflecting a percentage of the total construction job wages |
13 | | paid 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 |
|
| | 10300HB0817ham002 | - 65 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 66 - | LRB103 04410 HLH 73800 a |
|
|
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 |
4 | | certified payroll of a lower-tier subcontractor, provided the |
5 | | general contractor does not knowingly rely upon a |
6 | | subcontractor's false certification. |
7 | | (b) (Blank). Any contractor or subcontractor subject to |
8 | | this Section, and any officer, employee, or agent of such |
9 | | contractor or subcontractor whose duty as an officer, |
10 | | employee, or agent it is to file a certified payroll under this |
11 | | Section, who willfully fails to file such a certified payroll, |
12 | | on or before the date such certified payroll is required to be |
13 | | filed and any person who willfully files a false certified |
14 | | payroll as to any material fact is in violation of this Act and |
15 | | guilty of a Class A misdemeanor and may be enforced by the |
16 | | Illinois Department of Labor or the Department. The Attorney |
17 | | General shall represented the Illinois Department of Labor or |
18 | | the Department in the proceeding. |
19 | | (c) (Blank). The taxpayer in charge of the project shall |
20 | | keep the records submitted in accordance with this Section for |
21 | | a period of 5 years from the date of the last payment for work |
22 | | on a contract or subcontract for the project. |
23 | | (d) (Blank). The records submitted in accordance with this |
24 | | Section shall be considered public records, except an |
25 | | employee's address, telephone number, and social security |
26 | | number, which shall be redacted. The records shall be made |
|
| | 10300HB0817ham002 | - 67 - | LRB103 04410 HLH 73800 a |
|
|
1 | | publicly available in accordance with the Freedom of |
2 | | Information Act. The contractor or subcontractor shall submit |
3 | | reports to the Department of Labor electronically that meet |
4 | | the requirements of this subsection and shall share the |
5 | | information with the Department to comply with the awarding of |
6 | | the REV Construction Jobs Credit. A contractor, subcontractor, |
7 | | or public body may retain records required under this Section |
8 | | in paper or electronic format. |
9 | | (e) Upon 7 business days' notice, the taxpayer contractor |
10 | | and each subcontractor shall make available to any State |
11 | | agency and to federal, State, or local law enforcement |
12 | | agencies and prosecutors for inspection and copying at a |
13 | | location within this State during reasonable hours, the report |
14 | | described in subsection (a) records identified in paragraph |
15 | | (1) of this subsection to the Taxpayer in charge of the |
16 | | Project, its officers and agents, the Director of the |
17 | | Department of Labor and his/her deputies and agents, and to |
18 | | federal, State, or local law enforcement agencies and |
19 | | prosecutors . |
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 |
23 | | sites. The Department may certify a taxpayer with a REV |
24 | | Illinois credit for a Project that meets the qualifications |
25 | | under Section paragraphs (1), (2), and (4) , (4.1), or (5) of |
|
| | 10300HB0817ham002 | - 68 - | LRB103 04410 HLH 73800 a |
|
|
1 | | subsection (c) of Section 20, subject to an agreement under |
2 | | this Act for an exemption from the tax imposed at the project |
3 | | site by Section 2-4 of the Electricity Excise Tax Law. To |
4 | | receive such certification, the taxpayer must be registered to |
5 | | self-assess that tax. The taxpayer is also exempt from any |
6 | | additional charges added to the taxpayer's utility bills at |
7 | | the project site as a pass-on of State utility taxes under |
8 | | Section 9-222 of the Public Utilities Act. The taxpayer must |
9 | | meet any other the criteria for certification set by the |
10 | | Department. |
11 | | The Department shall determine the period during which the |
12 | | exemption from the Electricity Excise Tax Law and the charges |
13 | | imposed under Section 9-222 of the Public Utilities Act are in |
14 | | effect, which shall not exceed 30 10 years from the date of the |
15 | | taxpayer's initial receipt of certification from the |
16 | | Department under this Section. |
17 | | The Department is authorized to adopt rules to carry out |
18 | | the provisions of this Section, including procedures to apply |
19 | | for the exemptions; to define the amounts and types of |
20 | | eligible investments that an applicant must make in order to |
21 | | receive electricity excise tax exemptions or exemptions from |
22 | | the additional charges imposed under Section 9-222 and the |
23 | | Public Utilities Act; to approve such electricity excise tax |
24 | | exemptions for applicants whose investments are not yet placed |
25 | | in service; and to require that an applicant granted an |
26 | | electricity excise tax exemption or an exemption from |
|
| | 10300HB0817ham002 | - 69 - | LRB103 04410 HLH 73800 a |
|
|
1 | | additional charges under Section 9-222 of the Public Utilities |
2 | | Act repay the exempted amount if the Applicant fails to comply |
3 | | with the terms and conditions of the agreement. |
4 | | Upon certification by the Department under this Section, |
5 | | the Department shall notify the Department of Revenue of the |
6 | | certification. The Department of Revenue shall notify the |
7 | | public utilities of the exempt status of any taxpayer |
8 | | certified for exemption under this Act from the electricity |
9 | | excise tax or pass-on charges. The exemption status shall take |
10 | | effect within 3 months after certification of the taxpayer and |
11 | | notice 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 |
15 | | Project sites. |
16 | | (a) The Department may certify a Taxpayer with a REV |
17 | | Illinois Project that meets the qualifications under |
18 | | paragraphs (1), (2), or (4) , (4.1), or (5) of subsection (c) of |
19 | | Section 20, subject to an agreement under this Act, for an |
20 | | exemption from any State or local use tax or retailers' |
21 | | occupation tax on building materials for the construction of |
22 | | its project facilities. The taxpayer must meet any criteria |
23 | | for certification set by the Department under this Act. |
24 | | The Department shall determine the period during which the |
25 | | exemption from State and local use tax and retailers' |
|
| | 10300HB0817ham002 | - 70 - | LRB103 04410 HLH 73800 a |
|
|
1 | | occupation tax are in effect, but in no event shall exceed 5 |
2 | | years in accordance with Section 5m of the Retailers' |
3 | | Occupation Tax Act. |
4 | | The Department is authorized to promulgate rules and |
5 | | regulations to carry out the provisions of this Section, |
6 | | including procedures to apply for the exemption; to define the |
7 | | amounts and types of eligible investments that an applicant |
8 | | must make in order to receive tax exemption; to approve such |
9 | | tax exemption for an applicant whose investments are not yet |
10 | | placed in service; and to require that an applicant granted |
11 | | exemption repay the exempted amount if the applicant fails to |
12 | | comply with the terms and conditions of the agreement with the |
13 | | Department. |
14 | | Upon certification by the Department under this Section, |
15 | | the Department shall notify the Department of Revenue of the |
16 | | certification. The exemption status shall take effect within 3 |
17 | | months after certification of the taxpayer and notice to the |
18 | | Department 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 |
21 | | changing 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 |
|
| | 10300HB0817ham002 | - 71 - | LRB103 04410 HLH 73800 a |
|
|
1 | | imposed on every individual, corporation, trust and estate for |
2 | | each taxable year ending after July 31, 1969 on the privilege |
3 | | of earning or receiving income in or as a resident of this |
4 | | State. Such tax shall be in addition to all other occupation or |
5 | | privilege taxes imposed by this State or by any municipal |
6 | | corporation or political subdivision thereof. |
7 | | (b) Rates. The tax imposed by subsection (a) of this |
8 | | Section shall be determined as follows, except as adjusted by |
9 | | subsection (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 |
|
| | 10300HB0817ham002 | - 72 - | LRB103 04410 HLH 73800 a |
|
|
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, |
|
| | 10300HB0817ham002 | - 73 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 74 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 75 - | LRB103 04410 HLH 73800 a |
|
|
1 | | The rates under this subsection (b) are subject to the |
2 | | provisions of Section 201.5. |
3 | | (b-5) Surcharge; sale or exchange of assets, properties, |
4 | | and intangibles of organization gaming licensees. For each of |
5 | | taxable years 2019 through 2027, a surcharge is imposed on all |
6 | | taxpayers on income arising from the sale or exchange of |
7 | | capital assets, depreciable business property, real property |
8 | | used in the trade or business, and Section 197 intangibles (i) |
9 | | of an organization licensee under the Illinois Horse Racing |
10 | | Act of 1975 and (ii) of an organization gaming licensee under |
11 | | the Illinois Gambling Act. The amount of the surcharge is |
12 | | equal to the amount of federal income tax liability for the |
13 | | taxable year attributable to those sales and exchanges. The |
14 | | surcharge 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 |
|
| | 10300HB0817ham002 | - 76 - | LRB103 04410 HLH 73800 a |
|
|
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, |
24 | | organization license, or racetrack property by a person other |
25 | | than the initial licensee to receive the organization gaming |
26 | | license is not subject to a surcharge. The Department shall |
|
| | 10300HB0817ham002 | - 77 - | LRB103 04410 HLH 73800 a |
|
|
1 | | adopt rules necessary to implement and administer this |
2 | | subsection. |
3 | | (c) Personal Property Tax Replacement Income Tax. |
4 | | Beginning on July 1, 1979 and thereafter, in addition to such |
5 | | income tax, there is also hereby imposed the Personal Property |
6 | | Tax Replacement Income Tax measured by net income on every |
7 | | corporation (including Subchapter S corporations), partnership |
8 | | and trust, for each taxable year ending after June 30, 1979. |
9 | | Such taxes are imposed on the privilege of earning or |
10 | | receiving income in or as a resident of this State. The |
11 | | Personal Property Tax Replacement Income Tax shall be in |
12 | | addition to the income tax imposed by subsections (a) and (b) |
13 | | of this Section and in addition to all other occupation or |
14 | | privilege taxes imposed by this State or by any municipal |
15 | | corporation or political subdivision thereof. |
16 | | (d) Additional Personal Property Tax Replacement Income |
17 | | Tax Rates. The personal property tax replacement income tax |
18 | | imposed by this subsection and subsection (c) of this Section |
19 | | in the case of a corporation, other than a Subchapter S |
20 | | corporation and except as adjusted by subsection (d-1), shall |
21 | | be an additional amount equal to 2.85% of such taxpayer's net |
22 | | income for the taxable year, except that beginning on January |
23 | | 1, 1981, and thereafter, the rate of 2.85% specified in this |
24 | | subsection shall be reduced to 2.5%, and in the case of a |
25 | | partnership, trust or a Subchapter S corporation shall be an |
26 | | additional amount equal to 1.5% of such taxpayer's net income |
|
| | 10300HB0817ham002 | - 78 - | LRB103 04410 HLH 73800 a |
|
|
1 | | for the taxable year. |
2 | | (d-1) Rate reduction for certain foreign insurers. In the |
3 | | case of a foreign insurer, as defined by Section 35A-5 of the |
4 | | Illinois Insurance Code, whose state or country of domicile |
5 | | imposes on insurers domiciled in Illinois a retaliatory tax |
6 | | (excluding any insurer whose premiums from reinsurance assumed |
7 | | are 50% or more of its total insurance premiums as determined |
8 | | under paragraph (2) of subsection (b) of Section 304, except |
9 | | that for purposes of this determination premiums from |
10 | | reinsurance do not include premiums from inter-affiliate |
11 | | reinsurance arrangements), beginning with taxable years ending |
12 | | on or after December 31, 1999, the sum of the rates of tax |
13 | | imposed by subsections (b) and (d) shall be reduced (but not |
14 | | increased) to the rate at which the total amount of tax imposed |
15 | | under this Act, net of all credits allowed under this Act, |
16 | | shall equal (i) the total amount of tax that would be imposed |
17 | | on the foreign insurer's net income allocable to Illinois for |
18 | | the taxable year by such foreign insurer's state or country of |
19 | | domicile if that net income were subject to all income taxes |
20 | | and taxes measured by net income imposed by such foreign |
21 | | insurer's state or country of domicile, net of all credits |
22 | | allowed or (ii) a rate of zero if no such tax is imposed on |
23 | | such income by the foreign insurer's state of domicile. For |
24 | | the purposes of this subsection (d-1), an inter-affiliate |
25 | | includes a mutual insurer under common management. |
26 | | (1) For the purposes of subsection (d-1), in no event |
|
| | 10300HB0817ham002 | - 79 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 80 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Section 250. |
2 | | (e) Investment credit. A taxpayer shall be allowed a |
3 | | credit against the Personal Property Tax Replacement Income |
4 | | Tax 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 |
|
| | 10300HB0817ham002 | - 81 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 82 - | LRB103 04410 HLH 73800 a |
|
|
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; |
|
| | 10300HB0817ham002 | - 83 - | LRB103 04410 HLH 73800 a |
|
|
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, |
|
| | 10300HB0817ham002 | - 84 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 85 - | LRB103 04410 HLH 73800 a |
|
|
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, |
|
| | 10300HB0817ham002 | - 86 - | LRB103 04410 HLH 73800 a |
|
|
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 |
15 | | Redevelopment 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 |
|
| | 10300HB0817ham002 | - 87 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 88 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 89 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 90 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 91 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 92 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 93 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 94 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 95 - | LRB103 04410 HLH 73800 a |
|
|
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 |
15 | | taxable years beginning on or after January 1, 2021, there |
16 | | shall also be allowed a High Impact Business construction jobs |
17 | | credit against the tax imposed under subsections (a) and (b) |
18 | | of this Section as provided in subsections (i) and (j) of |
19 | | Section 5.5 of the Illinois Enterprise Zone Act. |
20 | | The credit or credits may not reduce the taxpayer's |
21 | | liability to less than zero. If the amount of the credit or |
22 | | credits exceeds the taxpayer's liability, the excess may be |
23 | | carried forward and applied against the taxpayer's liability |
24 | | in succeeding calendar years in the manner provided under |
25 | | paragraph (4) of Section 211 of this Act. The credit or credits |
26 | | shall be applied to the earliest year for which there is a tax |
|
| | 10300HB0817ham002 | - 96 - | LRB103 04410 HLH 73800 a |
|
|
1 | | liability. If there are credits from more than one taxable |
2 | | year that are available to offset a liability, the earlier |
3 | | credit shall be applied first. |
4 | | For partners, shareholders of Subchapter S corporations, |
5 | | and owners of limited liability companies, for taxable years |
6 | | ending before December 31, 2023, if the liability company is |
7 | | treated as a partnership for the purposes of federal and State |
8 | | income taxation, there shall be allowed a credit under this |
9 | | Section to be determined in accordance with the determination |
10 | | of income and distributive share of income under Sections 702 |
11 | | and 704 and Subchapter S of the Internal Revenue Code. For |
12 | | taxable years ending on or after December 31, 2023, for |
13 | | partners 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 the |
17 | | Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not |
18 | | exceed $20,000,000 in any State fiscal year. |
19 | | This subsection (h-5) is exempt from the provisions of |
20 | | Section 250. |
21 | | (i) Credit for Personal Property Tax Replacement Income |
22 | | Tax. For tax years ending prior to December 31, 2003, a credit |
23 | | shall be allowed against the tax imposed by subsections (a) |
24 | | and (b) of this Section for the tax imposed by subsections (c) |
25 | | and (d) of this Section. This credit shall be computed by |
26 | | multiplying the tax imposed by subsections (c) and (d) of this |
|
| | 10300HB0817ham002 | - 97 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Section by a fraction, the numerator of which is base income |
2 | | allocable to Illinois and the denominator of which is Illinois |
3 | | base income, and further multiplying the product by the tax |
4 | | rate imposed by subsections (a) and (b) of this Section. |
5 | | Any credit earned on or after December 31, 1986 under this |
6 | | subsection which is unused in the year the credit is computed |
7 | | because it exceeds the tax liability imposed by subsections |
8 | | (a) and (b) for that year (whether it exceeds the original |
9 | | liability or the liability as later amended) may be carried |
10 | | forward and applied to the tax liability imposed by |
11 | | subsections (a) and (b) of the 5 taxable years following the |
12 | | excess credit year, provided that no credit may be carried |
13 | | forward to any year ending on or after December 31, 2003. This |
14 | | credit shall be applied first to the earliest year for which |
15 | | there is a liability. If there is a credit under this |
16 | | subsection from more than one tax year that is available to |
17 | | offset a liability the earliest credit arising under this |
18 | | subsection shall be applied first. |
19 | | If, during any taxable year ending on or after December |
20 | | 31, 1986, the tax imposed by subsections (c) and (d) of this |
21 | | Section for which a taxpayer has claimed a credit under this |
22 | | subsection (i) is reduced, the amount of credit for such tax |
23 | | shall also be reduced. Such reduction shall be determined by |
24 | | recomputing the credit to take into account the reduced tax |
25 | | imposed by subsections (c) and (d). If any portion of the |
26 | | reduced amount of credit has been carried to a different |
|
| | 10300HB0817ham002 | - 98 - | LRB103 04410 HLH 73800 a |
|
|
1 | | taxable year, an amended return shall be filed for such |
2 | | taxable year to reduce the amount of credit claimed. |
3 | | (j) Training expense credit. Beginning with tax years |
4 | | ending on or after December 31, 1986 and prior to December 31, |
5 | | 2003, a taxpayer shall be allowed a credit against the tax |
6 | | imposed by subsections (a) and (b) under this Section for all |
7 | | amounts paid or accrued, on behalf of all persons employed by |
8 | | the taxpayer in Illinois or Illinois residents employed |
9 | | outside of Illinois by a taxpayer, for educational or |
10 | | vocational training in semi-technical or technical fields or |
11 | | semi-skilled or skilled fields, which were deducted from gross |
12 | | income in the computation of taxable income. The credit |
13 | | against the tax imposed by subsections (a) and (b) shall be |
14 | | 1.6% of such training expenses. For partners, shareholders of |
15 | | subchapter S corporations, and owners of limited liability |
16 | | companies, if the liability company is treated as a |
17 | | partnership for purposes of federal and State income taxation, |
18 | | for taxable years ending before December 31, 2023, there shall |
19 | | be allowed a credit under this subsection (j) to be determined |
20 | | in accordance with the determination of income and |
21 | | distributive share of income under Sections 702 and 704 and |
22 | | subchapter S of the Internal Revenue Code. For taxable years |
23 | | ending on or after December 31, 2023, for partners and |
24 | | shareholders of Subchapter S corporations, the provisions of |
25 | | Section 251 shall apply with respect to the credit under this |
26 | | subsection. |
|
| | 10300HB0817ham002 | - 99 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Any credit allowed under this subsection which is unused |
2 | | in the year the credit is earned may be carried forward to each |
3 | | of the 5 taxable years following the year for which the credit |
4 | | is first computed until it is used. This credit shall be |
5 | | applied first to the earliest year for which there is a |
6 | | liability. If there is a credit under this subsection from |
7 | | more than one tax year that is available to offset a liability, |
8 | | the earliest credit arising under this subsection shall be |
9 | | applied first. No carryforward credit may be claimed in any |
10 | | tax year ending on or after December 31, 2003. |
11 | | (k) Research and development credit. For tax years ending |
12 | | after July 1, 1990 and prior to December 31, 2003, and |
13 | | beginning again for tax years ending on or after December 31, |
14 | | 2004, and ending prior to January 1, 2032 January 1, 2027 , a |
15 | | taxpayer shall be allowed a credit against the tax imposed by |
16 | | subsections (a) and (b) of this Section for increasing |
17 | | research activities in this State. The credit allowed against |
18 | | the tax imposed by subsections (a) and (b) shall be equal to 6 |
19 | | 1/2% of the qualifying expenditures for increasing research |
20 | | activities in this State. For partners, shareholders of |
21 | | subchapter S corporations, and owners of limited liability |
22 | | companies, if the liability company is treated as a |
23 | | partnership for purposes of federal and State income taxation, |
24 | | for taxable years ending before December 31, 2023, there shall |
25 | | be allowed a credit under this subsection to be determined in |
26 | | accordance with the determination of income and distributive |
|
| | 10300HB0817ham002 | - 100 - | LRB103 04410 HLH 73800 a |
|
|
1 | | share of income under Sections 702 and 704 and subchapter S of |
2 | | the Internal Revenue Code. For taxable years ending on or |
3 | | after December 31, 2023, for partners and shareholders of |
4 | | Subchapter S corporations, the provisions of Section 251 shall |
5 | | apply with respect to the credit under this subsection. |
6 | | For purposes of this subsection, "qualifying expenditures" |
7 | | means the qualifying expenditures as defined for the federal |
8 | | credit for increasing research activities which would be |
9 | | allowable under Section 41 of the Internal Revenue Code and |
10 | | which are conducted in this State, "qualifying expenditures |
11 | | for increasing research activities in this State" means the |
12 | | excess of qualifying expenditures for the taxable year in |
13 | | which incurred over qualifying expenditures for the base |
14 | | period, "qualifying expenditures for the base period" means |
15 | | the average of the qualifying expenditures for each year in |
16 | | the base period, and "base period" means the 3 taxable years |
17 | | immediately preceding the taxable year for which the |
18 | | determination is being made. |
19 | | Any credit in excess of the tax liability for the taxable |
20 | | year may be carried forward. A taxpayer may elect to have the |
21 | | unused credit shown on its final completed return carried over |
22 | | as a credit against the tax liability for the following 5 |
23 | | taxable years or until it has been fully used, whichever |
24 | | occurs first; provided that no credit earned in a tax year |
25 | | ending prior to December 31, 2003 may be carried forward to any |
26 | | year ending on or after December 31, 2003. |
|
| | 10300HB0817ham002 | - 101 - | LRB103 04410 HLH 73800 a |
|
|
1 | | If an unused credit is carried forward to a given year from |
2 | | 2 or more earlier years, that credit arising in the earliest |
3 | | year will be applied first against the tax liability for the |
4 | | given year. If a tax liability for the given year still |
5 | | remains, the credit from the next earliest year will then be |
6 | | applied, and so on, until all credits have been used or no tax |
7 | | liability for the given year remains. Any remaining unused |
8 | | credit or credits then will be carried forward to the next |
9 | | following year in which a tax liability is incurred, except |
10 | | that no credit can be carried forward to a year which is more |
11 | | than 5 years after the year in which the expense for which the |
12 | | credit is given was incurred. |
13 | | No inference shall be drawn from Public Act 91-644 in |
14 | | construing this Section for taxable years beginning before |
15 | | January 1, 1999. |
16 | | It is the intent of the General Assembly that the research |
17 | | and development credit under this subsection (k) shall apply |
18 | | continuously for all tax years ending on or after December 31, |
19 | | 2004 and ending prior to January 1, 2032 January 1, 2027 , |
20 | | including, but not limited to, the period beginning on January |
21 | | 1, 2016 and ending on July 6, 2017 (the effective date of |
22 | | Public Act 100-22). All actions taken in reliance on the |
23 | | continuation of the credit under this subsection (k) by any |
24 | | taxpayer are hereby validated. |
25 | | (l) Environmental Remediation Tax Credit. |
26 | | (i) For tax years ending after December 31, 1997 and |
|
| | 10300HB0817ham002 | - 102 - | LRB103 04410 HLH 73800 a |
|
|
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" |
|
| | 10300HB0817ham002 | - 103 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 104 - | LRB103 04410 HLH 73800 a |
|
|
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 |
25 | | ending after December 31, 1999, a taxpayer who is the |
26 | | custodian of one or more qualifying pupils shall be allowed a |
|
| | 10300HB0817ham002 | - 105 - | LRB103 04410 HLH 73800 a |
|
|
1 | | credit against the tax imposed by subsections (a) and (b) of |
2 | | this Section for qualified education expenses incurred on |
3 | | behalf of the qualifying pupils. The credit shall be equal to |
4 | | 25% of qualified education expenses, but in no event may the |
5 | | total credit under this subsection claimed by a family that is |
6 | | the custodian of qualifying pupils exceed (i) $500 for tax |
7 | | years ending prior to December 31, 2017, and (ii) $750 for tax |
8 | | years ending on or after December 31, 2017. In no event shall a |
9 | | credit under this subsection reduce the taxpayer's liability |
10 | | under this Act to less than zero. Notwithstanding any other |
11 | | provision of law, for taxable years beginning on or after |
12 | | January 1, 2017, no taxpayer may claim a credit under this |
13 | | subsection (m) if the taxpayer's adjusted gross income for the |
14 | | taxable year exceeds (i) $500,000, in the case of spouses |
15 | | filing a joint federal tax return or (ii) $250,000, in the case |
16 | | of all other taxpayers. This subsection is exempt from the |
17 | | provisions of Section 250 of this Act. |
18 | | For purposes of this subsection: |
19 | | "Qualifying pupils" means individuals who (i) are |
20 | | residents of the State of Illinois, (ii) are under the age of |
21 | | 21 at the close of the school year for which a credit is |
22 | | sought, and (iii) during the school year for which a credit is |
23 | | sought were full-time pupils enrolled in a kindergarten |
24 | | through twelfth grade education program at any school, as |
25 | | defined in this subsection. |
26 | | "Qualified education expense" means the amount incurred on |
|
| | 10300HB0817ham002 | - 106 - | LRB103 04410 HLH 73800 a |
|
|
1 | | behalf of a qualifying pupil in excess of $250 for tuition, |
2 | | book fees, and lab fees at the school in which the pupil is |
3 | | enrolled during the regular school year. |
4 | | "School" means any public or nonpublic elementary or |
5 | | secondary school in Illinois that is in compliance with Title |
6 | | VI of the Civil Rights Act of 1964 and attendance at which |
7 | | satisfies the requirements of Section 26-1 of the School Code, |
8 | | except that nothing shall be construed to require a child to |
9 | | attend any particular public or nonpublic school to qualify |
10 | | for the credit under this Section. |
11 | | "Custodian" means, with respect to qualifying pupils, an |
12 | | Illinois resident who is a parent, the parents, a legal |
13 | | guardian, or the legal guardians of the qualifying pupils. |
14 | | (n) River Edge Redevelopment Zone site remediation tax |
15 | | credit. |
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 |
|
| | 10300HB0817ham002 | - 107 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 108 - | LRB103 04410 HLH 73800 a |
|
|
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 |
26 | | of Medical Cannabis Program, a surcharge is imposed on all |
|
| | 10300HB0817ham002 | - 109 - | LRB103 04410 HLH 73800 a |
|
|
1 | | taxpayers on income arising from the sale or exchange of |
2 | | capital assets, depreciable business property, real property |
3 | | used in the trade or business, and Section 197 intangibles of |
4 | | an organization registrant under the Compassionate Use of |
5 | | Medical Cannabis Program Act. The amount of the surcharge is |
6 | | equal to the amount of federal income tax liability for the |
7 | | taxable year attributable to those sales and exchanges. The |
8 | | surcharge 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; |
|
| | 10300HB0817ham002 | - 110 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 111 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 112 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 113 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 114 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 115 - | LRB103 04410 HLH 73800 a |
|
|
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; |
15 | | 103-9, 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 |
19 | | Department of Commerce and Economic Opportunity under Section |
20 | | 605-115 of the Department of Commerce and Economic Opportunity |
21 | | Law of the Civil Administrative Code of Illinois is entitled |
22 | | to a credit against the taxes imposed under subsections (a) |
23 | | and (b) of Section 201 of this Act. The amount of the credit |
24 | | shall be 20% of the wages paid by the taxpayer during the |
25 | | taxable year to a full-time or part-time employee of a |
|
| | 10300HB0817ham002 | - 116 - | LRB103 04410 HLH 73800 a |
|
|
1 | | construction contractor employed in the construction of an |
2 | | eligible facility located on a quantum computing campus |
3 | | designated under Section 605-115 of the Department of Commerce |
4 | | and Economic Opportunity Law of the Civil Administrative Code |
5 | | of Illinois. |
6 | | (b) In no event shall a credit under this Section reduce |
7 | | the taxpayer's liability to less than zero. If the amount of |
8 | | the credit exceeds the tax liability for the year, the excess |
9 | | may be carried forward and applied to the tax liability of the |
10 | | 5 taxable years following the excess credit year. The tax |
11 | | credit shall be applied to the earliest year for which there is |
12 | | a tax liability. If there are credits for more than one year |
13 | | that are available to offset a liability, the earlier credit |
14 | | shall be applied first. |
15 | | (c) A person claiming the credit allowed under this |
16 | | Section shall attach to its Illinois income tax return for the |
17 | | taxable year for which the credit is allowed a copy of the tax |
18 | | credit certificate issued by the Department of Commerce and |
19 | | Economic Opportunity. |
20 | | (d) Partners and shareholders of Subchapter S corporations |
21 | | are entitled to a credit under this Section as provided in |
22 | | Section 251. |
23 | | (e) As used in this Section, "eligible facility" means a |
24 | | building used primarily to house one or more of the following: |
25 | | a quantum computer operator; a research facility; a data |
26 | | center; a manufacturer and assembler of quantum computers and |
|
| | 10300HB0817ham002 | - 117 - | LRB103 04410 HLH 73800 a |
|
|
1 | | component parts; a cryogenic or refrigeration facility; or any |
2 | | other facility determined, by industry and academic leaders, |
3 | | to be fundamental to the research and development of quantum |
4 | | computing for practical solutions. |
5 | | (f) This Section is exempt from the provisions of Section |
6 | | 250. |
7 | | Section 23. The Illinois Income Tax Act is amended by |
8 | | changing 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 |
12 | | taxpayer who has been awarded a tax credit under the Film |
13 | | Production Services Tax Credit Act or under the Film |
14 | | Production Services Tax Credit Act of 2008 is entitled to a |
15 | | credit against the taxes imposed under subsections (a) and (b) |
16 | | of Section 201 of this Act in an amount determined by the |
17 | | Department of Commerce and Economic Opportunity under those |
18 | | Acts. If the taxpayer is a partnership or Subchapter S |
19 | | corporation, the credit is allowed to the partners or |
20 | | shareholders in accordance with the determination of income |
21 | | and distributive share of income under Sections 702 and 704 |
22 | | and Subchapter S of the Internal Revenue Code. |
23 | | (b) Beginning July 1, 2024, taxpayers who have been |
24 | | awarded a tax credit under the Film Production Services Tax |
|
| | 10300HB0817ham002 | - 118 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Credit Act of 2008 shall pay to the Department of Commerce and |
2 | | Economic Opportunity, after determination of the tax credit |
3 | | amount but prior to the issuance of a tax credit certificate |
4 | | pursuant to Section 35 of the Film Production Services Tax |
5 | | Credit Act of 2008, a fee equal to 2.5% of the credit amount |
6 | | awarded to the taxpayer under the Film Production Services Tax |
7 | | Credit Act of 2008 that is attributable to wages paid to |
8 | | nonresidents, as described in Section 10 of the Film |
9 | | Production Services Tax Credit Act of 2008, and an additional |
10 | | fee equal to 0.25% of the amount generated by subtracting the |
11 | | credit amount awarded to the taxpayer under the Film |
12 | | Production Services Tax Credit Act of 2008 that is |
13 | | attributable to wages paid to nonresidents from the total |
14 | | credit amount awarded to the taxpayer under that Act. All fees |
15 | | collected under this subsection shall be deposited into the |
16 | | Illinois Production Workforce Development Fund. No tax credit |
17 | | certificate shall be issued by the Department of Commerce and |
18 | | Economic Opportunity until the total fees owed according to |
19 | | this subsection have been received by the Department of |
20 | | Commerce and Economic Opportunity. |
21 | | (c) A transfer of this credit may be made by the taxpayer |
22 | | earning the credit within one year after the credit is awarded |
23 | | in accordance with rules adopted by the Department of Commerce |
24 | | and Economic Opportunity. Beginning July 1, 2023 and through |
25 | | June 30, 2024 , if a credit is transferred under this Section by |
26 | | the taxpayer, then the transferor taxpayer shall pay to the |
|
| | 10300HB0817ham002 | - 119 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Department of Commerce and Economic Opportunity, upon |
2 | | notification of a transfer, a fee equal to 2.5% of the |
3 | | transferred credit amount eligible for nonresident wages, as |
4 | | described in Section 10 of the Film Production Services Tax |
5 | | Credit Act of 2008, and an additional fee of 0.25% of the total |
6 | | amount of the transferred credit that is not calculated on |
7 | | nonresident wages, which shall be deposited into the Illinois |
8 | | Production Workforce Development Fund. |
9 | | (d) The Department, in cooperation with the Department of |
10 | | Commerce and Economic Opportunity, must prescribe rules to |
11 | | enforce and administer the provisions of this Section. This |
12 | | Section is exempt from the provisions of Section 250 of this |
13 | | Act. |
14 | | (e) The credit may not be carried back. If the amount of |
15 | | the credit exceeds the tax liability for the year, the excess |
16 | | may be carried forward and applied to the tax liability of the |
17 | | 5 taxable years following the excess credit year. The credit |
18 | | shall be applied to the earliest year for which there is a tax |
19 | | liability. If there are credits from more than one tax year |
20 | | that are available to offset a liability, the earlier credit |
21 | | shall be applied first. In no event shall a credit under this |
22 | | Section 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 |
25 | | Tax Credit Act is amended by changing Sections 5-5, 5-15, |
|
| | 10300HB0817ham002 | - 120 - | LRB103 04410 HLH 73800 a |
|
|
1 | | 5-20, 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 |
5 | | Department under the provisions of Section 5-50 of this Act. |
6 | | "Applicant" means a Taxpayer that is operating a business |
7 | | located or that the Taxpayer plans to locate within the State |
8 | | of Illinois and that is engaged in interstate or intrastate |
9 | | commerce for the purpose of manufacturing, processing, |
10 | | assembling, warehousing, or distributing products, conducting |
11 | | research and development, providing tourism services, or |
12 | | providing services in interstate commerce, office industries, |
13 | | or agricultural processing, but excluding retail, retail food, |
14 | | health, or professional services , and services delivered to |
15 | | business customer sites . "Applicant" does not include a |
16 | | Taxpayer who closes or substantially reduces an operation at |
17 | | one location in the State and relocates substantially the same |
18 | | operation to another location in the State. This does not |
19 | | prohibit a Taxpayer from expanding its operations at another |
20 | | location in the State, provided that existing operations of a |
21 | | similar nature located within the State are not closed or |
22 | | substantially reduced. This also does not prohibit a Taxpayer |
23 | | from moving its operations from one location in the State to |
24 | | another location in the State for the purpose of expanding the |
25 | | operation provided that the Department determines that |
|
| | 10300HB0817ham002 | - 121 - | LRB103 04410 HLH 73800 a |
|
|
1 | | expansion cannot reasonably be accommodated within the |
2 | | municipality in which the business is located, or in the case |
3 | | of a business located in an incorporated area of the county, |
4 | | within the county in which the business is located, after |
5 | | conferring with the chief elected official of the municipality |
6 | | or county and taking into consideration any evidence offered |
7 | | by the municipality or county regarding the ability to |
8 | | accommodate expansion within the municipality or county. |
9 | | "Credit" means the amount agreed to between the Department |
10 | | and Applicant under this Act, but not to exceed the lesser of: |
11 | | (1) the sum of (i) 50% of the Incremental Income Tax |
12 | | attributable to New Employees at the Applicant's project and |
13 | | (ii) 10% of the training costs of New Employees; or (2) 100% of |
14 | | the Incremental Income Tax attributable to New Employees at |
15 | | the Applicant's project. However, if the project is located in |
16 | | an underserved area, then the amount of the Credit may not |
17 | | exceed the lesser of: (1) the sum of (i) 75% of the Incremental |
18 | | Income Tax attributable to New Employees at the Applicant's |
19 | | project and (ii) 10% of the training costs of New Employees; or |
20 | | (2) 100% of the Incremental Income Tax attributable to New |
21 | | Employees at the Applicant's project. If the project is not |
22 | | located in an underserved area and the Applicant agrees to |
23 | | hire the required number of New Employees, then the maximum |
24 | | amount of the Credit for that Applicant may be increased by an |
25 | | amount not to exceed 25% of the Incremental Income Tax |
26 | | attributable to retained employees at the Applicant's project. |
|
| | 10300HB0817ham002 | - 122 - | LRB103 04410 HLH 73800 a |
|
|
1 | | If the project is located in an underserved area and the |
2 | | Applicant agrees to hire the required number of New Employees, |
3 | | then the maximum amount of the credit for that Applicant may be |
4 | | increased by an amount not to exceed 50% of the Incremental |
5 | | Income Tax attributable to retained employees at the |
6 | | Applicant's project. |
7 | | "Department" means the Department of Commerce and Economic |
8 | | Opportunity. |
9 | | "Director" means the Director of Commerce and Economic |
10 | | Opportunity. |
11 | | "Full-time Employee" means an individual who is employed |
12 | | for consideration for at least 35 hours each week or who |
13 | | renders any other standard of service generally accepted by |
14 | | industry custom or practice as full-time employment. An |
15 | | individual for whom a W-2 is issued by a Professional Employer |
16 | | Organization (PEO) is a full-time employee if employed in the |
17 | | service of the Applicant for consideration for at least 35 |
18 | | hours each week or who renders any other standard of service |
19 | | generally accepted by industry custom or practice as full-time |
20 | | employment to Applicant. The employee need not be physically |
21 | | present at the EDGE project location during the entire |
22 | | full-time workweek; however, the agreement shall set forth a |
23 | | minimum number of hours during which the employee is scheduled |
24 | | to be present at the EDGE project location. |
25 | | "Incremental Income Tax" means the total amount withheld |
26 | | during the taxable year from the compensation of New Employees |
|
| | 10300HB0817ham002 | - 123 - | LRB103 04410 HLH 73800 a |
|
|
1 | | and, if applicable, retained employees under Article 7 of the |
2 | | Illinois Income Tax Act arising from employment at a project |
3 | | that is the subject of an Agreement. |
4 | | "New Construction EDGE Agreement" means the Agreement |
5 | | between a Taxpayer and the Department under the provisions of |
6 | | Section 5-51 of this Act. |
7 | | "New Construction EDGE Credit" means an amount agreed to |
8 | | between the Department and the Applicant under this Act as |
9 | | part of a New Construction EDGE Agreement that does not exceed |
10 | | 50% of the Incremental Income Tax attributable to New |
11 | | Construction EDGE Employees at the Applicant's project; |
12 | | however, if the New Construction EDGE Project is located in an |
13 | | underserved area, then the amount of the New Construction EDGE |
14 | | Credit may not exceed 75% of the Incremental Income Tax |
15 | | attributable to New Construction EDGE Employees at the |
16 | | Applicant's New Construction EDGE Project. |
17 | | "New Construction EDGE Employee" means a laborer or worker |
18 | | who is employed by a an Illinois contractor or subcontractor |
19 | | in the actual construction work on the site of a New |
20 | | Construction EDGE Project, pursuant to a New Construction EDGE |
21 | | Agreement. |
22 | | "New Construction EDGE Incremental Income Tax" means the |
23 | | total amount withheld during the taxable year from the |
24 | | compensation of New Construction EDGE Employees. |
25 | | "New Construction EDGE Project" means the building of a |
26 | | Taxpayer's structure or building, or making improvements of |
|
| | 10300HB0817ham002 | - 124 - | LRB103 04410 HLH 73800 a |
|
|
1 | | any kind to real property. "New Construction EDGE Project" |
2 | | does not include the routine operation, routine repair, or |
3 | | routine maintenance of existing structures, buildings, or real |
4 | | property. |
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), |
|
| | 10300HB0817ham002 | - 125 - | LRB103 04410 HLH 73800 a |
|
|
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 |
19 | | is not complying with the requirements of the Agreement or the |
20 | | provisions of this Act, the day following the last date upon |
21 | | which the Taxpayer was in compliance with the requirements of |
22 | | the Agreement and the provisions of this Act, as determined by |
23 | | the Director, pursuant to Section 5-65. |
24 | | "Pass Through Entity" means an entity that is exempt from |
25 | | the tax under subsection (b) or (c) of Section 205 of the |
26 | | Illinois Income Tax Act. |
|
| | 10300HB0817ham002 | - 126 - | LRB103 04410 HLH 73800 a |
|
|
1 | | "Professional Employer Organization" (PEO) means an |
2 | | employee leasing company, as defined in Section 206.1(A)(2) of |
3 | | the Illinois Unemployment Insurance Act. |
4 | | "Related Member" means a person that, with respect to the |
5 | | Taxpayer during any portion of the taxable year, is any one of |
6 | | the 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. |
|
| | 10300HB0817ham002 | - 127 - | LRB103 04410 HLH 73800 a |
|
|
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 |
16 | | before the effective date of the changes made to this Section |
17 | | by this amendatory Act of the 103rd General Assembly, a |
18 | | corporation, partnership, or other entity incorporated or |
19 | | organized no more than 5 years before the filing of an |
20 | | application for an Agreement that has never had any Illinois |
21 | | income tax liability, excluding any Illinois income tax |
22 | | liability of a Related Member which shall not be attributed to |
23 | | the startup taxpayer. "Startup taxpayer" means, for Agreements |
24 | | that are executed on or after the effective date of this |
25 | | amendatory Act of the 103rd General Assembly, a corporation, |
26 | | partnership, or other entity that is incorporated or organized |
|
| | 10300HB0817ham002 | - 128 - | LRB103 04410 HLH 73800 a |
|
|
1 | | no more than 10 years before the filing of an application for |
2 | | an Agreement and that has never had any Illinois income tax |
3 | | liability. For the purpose of determining whether the taxpayer |
4 | | has had any Illinois income tax liability, the Illinois income |
5 | | tax liability of a Related Member shall not be attributed to |
6 | | the startup taxpayer. |
7 | | "Taxpayer" means an individual, corporation, partnership, |
8 | | or other entity that has any Illinois Income Tax liability. |
9 | | Until July 1, 2022, "underserved area" means a geographic |
10 | | area 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 |
26 | | geographic area that meets one or more of the following |
|
| | 10300HB0817ham002 | - 129 - | LRB103 04410 HLH 73800 a |
|
|
1 | | conditions: |
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; |
17 | | 102-1125, 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 |
20 | | set forth in this Act, a Taxpayer is entitled to a Credit |
21 | | against or, as described in subsection (g) of this Section, a |
22 | | payment towards taxes imposed pursuant to subsections (a) and |
23 | | (b) of Section 201 of the Illinois Income Tax Act that may be |
24 | | imposed on the Taxpayer for a taxable year beginning on or |
25 | | after January 1, 1999, if the Taxpayer is awarded a Credit by |
|
| | 10300HB0817ham002 | - 130 - | LRB103 04410 HLH 73800 a |
|
|
1 | | the Department under this Act for that taxable year. |
2 | | (a) The Department shall make Credit awards under this Act |
3 | | to foster job creation and retention in Illinois. |
4 | | (b) A person that proposes a project to create new jobs in |
5 | | Illinois must enter into an Agreement with the Department for |
6 | | the Credit under this Act. |
7 | | (c) The Credit shall be claimed for the taxable years |
8 | | specified in the Agreement. |
9 | | (d) The Credit shall not exceed the Incremental Income Tax |
10 | | attributable to the project that is the subject of the |
11 | | Agreement. |
12 | | (e) Nothing herein shall prohibit a Tax Credit Award to an |
13 | | Applicant that uses a PEO if all other award criteria are |
14 | | satisfied. |
15 | | (f) In lieu of the Credit allowed under this Act against |
16 | | the taxes imposed pursuant to subsections (a) and (b) of |
17 | | Section 201 of the Illinois Income Tax Act for any taxable year |
18 | | ending on or after December 31, 2009, for Taxpayers that |
19 | | entered into Agreements prior to January 1, 2015 and otherwise |
20 | | meet the criteria set forth in this subsection (f), the |
21 | | Taxpayer may elect to claim the Credit against its obligation |
22 | | to pay over withholding under Section 704A of the Illinois |
23 | | Income 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 |
|
| | 10300HB0817ham002 | - 131 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 132 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 133 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 134 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 135 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 136 - | LRB103 04410 HLH 73800 a |
|
|
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 |
22 | | under this Act, its shareholders, or its partners may treat |
23 | | some or all of the credit awarded pursuant to this Act as a tax |
24 | | payment for purposes of the Illinois Income Tax Act. The term |
25 | | "tax payment" means a payment as described in Article 6 or |
26 | | Article 8 of the Illinois Income Tax Act or a composite payment |
|
| | 10300HB0817ham002 | - 137 - | LRB103 04410 HLH 73800 a |
|
|
1 | | made by a pass-through entity on behalf of any of its |
2 | | shareholders or partners to satisfy such shareholders' or |
3 | | partners' taxes imposed pursuant to subsections (a) and (b) of |
4 | | Section 201 of the Illinois Income Tax Act. In no event shall |
5 | | the amount of the award credited pursuant to this Act exceed |
6 | | the Illinois income tax liability of the pass-through entity |
7 | | or 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 |
11 | | new jobs. |
12 | | (a) Any Taxpayer proposing a project located or planned to |
13 | | be located in Illinois may request consideration for |
14 | | designation of its project, by formal written letter of |
15 | | request or by formal application to the Department, in which |
16 | | the Applicant states its intent to make at least a specified |
17 | | level of investment and intends to hire or retain a specified |
18 | | number of full-time employees at a designated location in |
19 | | Illinois. As circumstances require, the Department may require |
20 | | a formal application from an Applicant and a formal letter of |
21 | | request for assistance. |
22 | | (b) In order to qualify for Credits under this Act, an |
23 | | Applicant'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 |
|
| | 10300HB0817ham002 | - 138 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 139 - | LRB103 04410 HLH 73800 a |
|
|
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 |
9 | | enter into an Agreement with the Applicant if the application |
10 | | is 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 |
14 | | not entitled to claim the credit provided by this Act with |
15 | | respect to any jobs that the taxpayer relocates from one site |
16 | | in Illinois unless the taxpayer has agreed to hire the minimum |
17 | | number of new employees and the Department has determined that |
18 | | the expansion cannot reasonably be accommodated within the |
19 | | municipality in which the business is located to another site |
20 | | in Illinois. A taxpayer with respect to a qualifying project |
21 | | certified under the Corporate Headquarters Relocation Act, |
22 | | however, is not subject to the requirements of this Section |
23 | | but is nevertheless considered an applicant for purposes of |
24 | | this Act. Moreover, any full-time employee of an eligible |
25 | | business relocated to Illinois in connection with that |
|
| | 10300HB0817ham002 | - 140 - | LRB103 04410 HLH 73800 a |
|
|
1 | | qualifying project is deemed to be a new employee for purposes |
2 | | of this Act . Determinations under this Section shall be made |
3 | | by 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 |
8 | | of the credit awarded under this Act. The duration of the |
9 | | credit may not exceed 10 taxable years for projects qualified |
10 | | under paragraph (1), (1.5), or (1.6) of subsection (b) of |
11 | | Section 5-20 or 15 taxable years for projects qualified under |
12 | | paragraph (1.7) of subsection (b) of Section 5-20 . The credit |
13 | | may be stated as a percentage of the Incremental Income Tax |
14 | | attributable to the applicant's project and may include a |
15 | | fixed dollar limitation. |
16 | | (b) Notwithstanding subsection (a), and except as the |
17 | | credit may be applied in a carryover year pursuant to Section |
18 | | 211(4) of the Illinois Income Tax Act, the credit may be |
19 | | applied against the State income tax liability in more than 10 |
20 | | taxable years but not in more than 15 taxable years for an |
21 | | eligible business that (i) qualifies under this Act and the |
22 | | Corporate Headquarters Relocation Act and has in fact |
23 | | undertaken a qualifying project within the time frame |
24 | | specified by the Department of Commerce and Economic |
25 | | Opportunity under that Act, and (ii) applies against its State |
|
| | 10300HB0817ham002 | - 141 - | LRB103 04410 HLH 73800 a |
|
|
1 | | income tax liability, during the entire 15-year period, no |
2 | | more than 60% of the maximum credit per year that would |
3 | | otherwise be available under this Act. |
4 | | (c) Nothing in this Section shall prevent the Department, |
5 | | in consultation with the Department of Revenue, from adopting |
6 | | rules to extend the sunset of any earned, existing, and unused |
7 | | tax credit or credits a taxpayer may be in possession of, as |
8 | | provided for in Section 605-1070 of the Department of Commerce |
9 | | and Economic Opportunity Law of the Civil Administrative Code |
10 | | of Illinois, notwithstanding the carry-forward provisions |
11 | | pursuant to paragraph (4) of Section 211 of the Illinois |
12 | | Income 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, |
16 | | until construction is completed, a company seeking New |
17 | | Construction EDGE Credits shall submit a report that, at a |
18 | | minimum, describes the projected project scope, timeline, and |
19 | | anticipated budget. Once the project has commenced, the annual |
20 | | report shall include actual data for the prior year as well as |
21 | | projections for each additional year through completion of the |
22 | | project. The Department shall issue detailed reporting |
23 | | guidelines prescribing the requirements of construction |
24 | | related reports. In order to receive credit for construction |
25 | | expenses, the company must provide the Department with |
|
| | 10300HB0817ham002 | - 142 - | LRB103 04410 HLH 73800 a |
|
|
1 | | evidence that a certified third-party executed an Agreed-Upon |
2 | | Procedure (AUP) verifying the construction expenses or accept |
3 | | the standard construction wage expense estimated by the |
4 | | Department. |
5 | | Upon review of the final project scope, timeline, budget, |
6 | | and AUP, the Department shall issue a tax credit certificate |
7 | | reflecting a percentage of the total construction job wages |
8 | | paid throughout the completion of the project. |
9 | | Each contractor and subcontractor that is engaged in and is |
10 | | executing a New Construction EDGE Project for a Taxpayer, |
11 | | pursuant 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; |
|
| | 10300HB0817ham002 | - 143 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 144 - | LRB103 04410 HLH 73800 a |
|
|
1 | | A general contractor is not prohibited from relying on a |
2 | | certified payroll of a lower-tier subcontractor, provided the |
3 | | general contractor does not knowingly rely upon a |
4 | | subcontractor's false certification. |
5 | | Any contractor or subcontractor subject to this Section, |
6 | | and any officer, employee, or agent of such contractor or |
7 | | subcontractor whose duty as an officer, employee, or agent it |
8 | | is to file a certified payroll under this Section, who |
9 | | willfully fails to file such a certified payroll on or before |
10 | | the date such certified payroll is required to be filed and any |
11 | | person who willfully files a false certified payroll that is |
12 | | false as to any material fact is in violation of this Act and |
13 | | guilty of a Class A misdemeanor. |
14 | | The taxpayer in charge of the project shall keep the |
15 | | records submitted in accordance with this Section on or after |
16 | | June 5, 2019 (the effective date of Public Act 101-9) for a |
17 | | period of 5 years from the date of the last payment for work on |
18 | | a contract or subcontract for the project. |
19 | | The records submitted in accordance with this Section |
20 | | shall be considered public records, except an employee's |
21 | | address, telephone number, and social security number, and |
22 | | made available in accordance with the Freedom of Information |
23 | | Act. The Department of Labor shall accept any reasonable |
24 | | submissions by the contractor that meet the requirements of |
25 | | this Section and shall share the information with the |
26 | | Department in order to comply with the awarding of New |
|
| | 10300HB0817ham002 | - 145 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Construction EDGE Credits. A contractor, subcontractor, or |
2 | | public body may retain records required under this Section in |
3 | | paper or electronic format. |
4 | | Upon 7 business days' notice, the taxpayer contractor and |
5 | | each subcontractor shall make available for inspection and |
6 | | copying at a location within this State during reasonable |
7 | | hours, the records identified in paragraph (1) of this Section |
8 | | to the taxpayer in charge of the project, its officers and |
9 | | agents, the Director of Labor and his or her deputies and |
10 | | agents, and to federal, State, or local law enforcement |
11 | | agencies 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 |
14 | | 2008 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 |
18 | | commencing before May 1, 2006, a film, video, or television |
19 | | production that has been certified by the Department in which |
20 | | the aggregate Illinois labor expenditures included in the cost |
21 | | of the production, in the period that ends 12 months after the |
22 | | time principal filming or taping of the production began, |
23 | | exceed $100,000 for productions of 30 minutes or longer, or |
24 | | $50,000 for productions of less than 30 minutes; and (ii) for |
|
| | 10300HB0817ham002 | - 146 - | LRB103 04410 HLH 73800 a |
|
|
1 | | productions commencing on or after May 1, 2006, a film, video, |
2 | | or television production that has been certified by the |
3 | | Department in which the Illinois production spending included |
4 | | in the cost of production in the period that ends 12 months |
5 | | after the time principal filming or taping of the production |
6 | | began exceeds $100,000 for productions of 30 minutes or longer |
7 | | or 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 |
26 | | production in which movement and characters' performances are |
|
| | 10300HB0817ham002 | - 147 - | LRB103 04410 HLH 73800 a |
|
|
1 | | created using a frame-by-frame technique and a significant |
2 | | number of major characters are animated. Motion capture by |
3 | | itself is not an animation technique. |
4 | | "Accredited production certificate" means a certificate |
5 | | issued by the Department certifying that the production is an |
6 | | accredited production that meets the guidelines of this Act. |
7 | | "Applicant" means a taxpayer that is a film production |
8 | | company that is operating or has operated an accredited |
9 | | production located within the State of Illinois and that (i) |
10 | | owns the copyright in the accredited production throughout the |
11 | | Illinois production period or (ii) has contracted directly |
12 | | with the owner of the copyright in the accredited production |
13 | | or a person acting on behalf of the owner to provide services |
14 | | for the production, where the owner of the copyright is not an |
15 | | eligible 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 |
|
| | 10300HB0817ham002 | - 148 - | LRB103 04410 HLH 73800 a |
|
|
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 |
23 | | Opportunity. |
24 | | "Director" means the Director of Commerce and Economic |
25 | | Opportunity. |
26 | | "Illinois labor expenditure" means salary or wages paid to |
|
| | 10300HB0817ham002 | - 149 - | LRB103 04410 HLH 73800 a |
|
|
1 | | employees of the applicant for services on the accredited |
2 | | production. |
3 | | To qualify as an Illinois labor expenditure, the |
4 | | expenditure 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 |
|
| | 10300HB0817ham002 | - 150 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 151 - | LRB103 04410 HLH 73800 a |
|
|
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" |
|
| | 10300HB0817ham002 | - 152 - | LRB103 04410 HLH 73800 a |
|
|
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 |
6 | | by the applicant for an accredited production, but does not |
7 | | include any monetary prize or the cost of any non-monetary |
8 | | prize awarded pursuant to a production in respect of a game, |
9 | | questionnaire, or contest. "Illinois production spending" |
10 | | includes, 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 |
|
| | 10300HB0817ham002 | - 153 - | LRB103 04410 HLH 73800 a |
|
|
1 | | other entity that is under contract with the taxpayer to |
2 | | provide specified individual personnel, such as artists, crew, |
3 | | actors, producers, or directors for the performance of |
4 | | services used directly in a production. "Loan out company" |
5 | | does not include entities contracted with by the taxpayer to |
6 | | provide goods or ancillary contractor services such as |
7 | | catering, construction, trailers, equipment, or |
8 | | transportation. |
9 | | "Qualified production facility" means stage facilities in |
10 | | the State in which television shows and films are or are |
11 | | intended to be regularly produced and that contain at least |
12 | | one sound stage of at least 15,000 square feet. |
13 | | Rulemaking authority to implement Public Act 95-1006, if |
14 | | any, is conditioned on the rules being adopted in accordance |
15 | | with all provisions of the Illinois Administrative Procedure |
16 | | Act and all rules and procedures of the Joint Committee on |
17 | | Administrative Rules; any purported rule not so adopted, for |
18 | | whatever reason, is unauthorized. |
19 | | (Source: P.A. 102-558, eff. 8-20-21; 102-700, eff. 4-19-22; |
20 | | 102-1125, 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 |
24 | | created as a special fund in the State Treasury. Beginning |
25 | | July 1, 2023 July 1, 2022 , amounts paid to the Department of |
|
| | 10300HB0817ham002 | - 154 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Commerce and Economic Opportunity pursuant to Section 213 of |
2 | | the Illinois Income Tax Act shall be deposited into the Fund. |
3 | | The Fund shall be used exclusively to provide grants to |
4 | | community-based organizations, labor organizations, private |
5 | | and public universities, community colleges, and other |
6 | | organizations and institutions that may be deemed appropriate |
7 | | by the Department to administer workforce training programs |
8 | | that support efforts to recruit, hire, promote, retain, |
9 | | develop, and train a diverse and inclusive workforce in the |
10 | | film industry. |
11 | | (b) Pursuant to Section 213 of the Illinois Income Tax |
12 | | Act, taxpayers who have been awarded a tax credit under this |
13 | | Act shall pay to the Department of Commerce and Economic |
14 | | Opportunity, after determination of the tax credit amount but |
15 | | prior to the issuance of a tax credit certificate, a fee equal |
16 | | to 2.5% of the credit amount awarded to the taxpayer under the |
17 | | Film Production Services Tax Credit Act of 2008 that is |
18 | | attributable to wages paid to nonresidents, as described in |
19 | | Section 10 of the Film Production Services Tax Credit Act of |
20 | | 2008, and an additional fee equal to 0.25% of the amount |
21 | | generated by subtracting the credit amount awarded to the |
22 | | taxpayer under the Film Production Services Tax Credit Act of |
23 | | 2008 that is attributable to wages paid to nonresidents from |
24 | | the total credit amount awarded to the taxpayer under that |
25 | | Act. All fees collected under this subsection shall be |
26 | | deposited into the Illinois Production Workforce Development |
|
| | 10300HB0817ham002 | - 155 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Fund. No tax credit certificate shall be issued by the |
2 | | Department of Commerce and Economic Opportunity until the |
3 | | total fees owed according to this subsection have been |
4 | | received by the Department of Commerce and Economic |
5 | | Opportunity. the Fund shall receive deposits in amounts not to |
6 | | exceed 0.25% of the amount of each credit certificate issued |
7 | | that is not calculated on out-of-state wages and transferred |
8 | | or claimed on an Illinois tax return in the quarter such credit |
9 | | was transferred or claimed. In addition, such amount shall |
10 | | also include 2.5% of the credit amount calculated on wages |
11 | | paid to nonresidents that is transferred or claimed on an |
12 | | Illinois tax return in the quarter such credit was transferred |
13 | | or claimed. |
14 | | (c) At the request of the Department, the State |
15 | | Comptroller and the State Treasurer may advance amounts to the |
16 | | Fund on an annual basis not to exceed $1,000,000 in any fiscal |
17 | | year. The fund from which the moneys are advanced shall be |
18 | | reimbursed in the same fiscal year for any such advance |
19 | | payments as described in this Section. The method of |
20 | | reimbursement shall be set forth in rules. |
21 | | (d) Of the appropriated funds in a given fiscal year, 50% |
22 | | of the appropriated funds shall be reserved for organizations |
23 | | that meet one of the following criteria. The organization is: |
24 | | (1) a minority-owned business, as defined by the Business |
25 | | Enterprise for Minorities, Women, and Persons with |
26 | | Disabilities Act; (2) located in an underserved area, as |
|
| | 10300HB0817ham002 | - 156 - | LRB103 04410 HLH 73800 a |
|
|
1 | | defined by the Economic Development for a Growing Economy Tax |
2 | | Credit Act; or (3) on an annual basis, training a cohort of |
3 | | program participants where at least 50% of the program |
4 | | participants are either a minority person, as defined by the |
5 | | Business Enterprise for Minorities, Women, and Persons with |
6 | | Disabilities Act, or reside in an underserved area, as defined |
7 | | by the Economic Development for a Growing Economy Tax Credit |
8 | | Act. |
9 | | (e) The Illinois Production Workforce Development Fund |
10 | | shall be administered by the Department. The Department may |
11 | | adopt rules necessary to administer the provisions of this |
12 | | Section. |
13 | | (f) Notwithstanding any other law to the contrary, the |
14 | | Illinois Production Workforce Development Fund is not subject |
15 | | to sweeps, administrative charge-backs, or any other fiscal or |
16 | | budgetary maneuver that would in any way transfer any amounts |
17 | | from the Illinois Production Workforce Development Fund. |
18 | | (g) By June 30 of each fiscal year, the Department must |
19 | | submit to the General Assembly a report that includes the |
20 | | following information: (1) an identification of the |
21 | | organizations and institutions that received funding to |
22 | | administer workforce training programs during the fiscal year; |
23 | | (2) the number of total persons trained and the number of |
24 | | persons trained per workforce training program in the fiscal |
25 | | year; and (3) in the aggregate, per organization, the number |
26 | | of persons identified as a minority person or that reside in an |
|
| | 10300HB0817ham002 | - 157 - | LRB103 04410 HLH 73800 a |
|
|
1 | | underserved 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 |
4 | | Opportunity (MICRO) Act is amended by changing Sections 110-5, |
5 | | 110-10, 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 |
8 | | Assembly that Illinois should lead the nation in the |
9 | | production of quantum computers and the production of |
10 | | semiconductors and microchips as they become even more |
11 | | prevalent in everyday life. The General Assembly finds that, |
12 | | through investments in quantum computing and semiconductors |
13 | | and microchips, Illinois will be on the forefront of the |
14 | | quantum computing industry and the forefront of reshoring |
15 | | semiconductor and microchip production that fuels modern |
16 | | technologies that are essential to the operation of computers, |
17 | | phones, vehicles and the any electric products product that |
18 | | have become essential to modern life. This Act will create |
19 | | good paying jobs, and generate long-term economic investment |
20 | | in the Illinois business economy, in addition to ensuring a |
21 | | vital product is made in the United States. Illinois must |
22 | | aggressively adopt new business development investment tools |
23 | | so that Illinois can compete with domestic and foreign |
24 | | competitors for quantum computer manufacturing and |
|
| | 10300HB0817ham002 | - 158 - | LRB103 04410 HLH 73800 a |
|
|
1 | | semiconductor 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 |
6 | | Department under the provisions of this Act. |
7 | | "Applicant" means a taxpayer that: (i) operates a business |
8 | | in Illinois as a quantum computer manufacturer, a |
9 | | semiconductor manufacturer, a microchip manufacturer, or a |
10 | | manufacturer of quantum computer, semiconductor , or microchip |
11 | | component parts or a business in Illinois that primarily |
12 | | engages in research and development in the manufacturing of |
13 | | quantum computers, semiconductors, or microchips ; or (ii) is |
14 | | planning to locate a business within the State of Illinois as a |
15 | | quantum computer manufacturer, a semiconductor manufacturer, a |
16 | | microchip manufacturer, or a manufacturer of quantum computer, |
17 | | semiconductor , or microchip component parts or a business |
18 | | within the State of Illinois that primarily engages in |
19 | | research and development in the manufacturing of quantum |
20 | | computers, semiconductors, or microchips. For the purposes of |
21 | | this definition, a business primarily engages in research and |
22 | | development in the manufacturing of quantum computers, |
23 | | semiconductors, or microchips if at least 50% of its business |
24 | | activities involve research and development in the |
25 | | manufacturing of quantum computers, semiconductors, or |
|
| | 10300HB0817ham002 | - 159 - | LRB103 04410 HLH 73800 a |
|
|
1 | | microchips . "Applicant" does not include a taxpayer who closes |
2 | | or substantially reduces by more than 50% operations at one |
3 | | location in the State and relocates substantially the same |
4 | | operation to another location in the State. This does not |
5 | | prohibit a taxpayer from expanding its operations at another |
6 | | location in the State. This also does not prohibit a taxpayer |
7 | | from moving its operations from one location in the State to |
8 | | another location in the State for the purpose of expanding the |
9 | | operation, provided that the Department determines that |
10 | | expansion cannot reasonably be accommodated within the |
11 | | municipality or county in which the business is located, or, |
12 | | in the case of a business located in an incorporated area of |
13 | | the county, within the county in which the business is |
14 | | located, after conferring with the chief elected official of |
15 | | the municipality or county and taking into consideration any |
16 | | evidence offered by the municipality or county regarding the |
17 | | ability to accommodate expansion within the municipality or |
18 | | county. |
19 | | "Capital improvements" means the purchase, renovation, |
20 | | rehabilitation, or construction of permanent tangible land, |
21 | | buildings, structures, equipment, and furnishings in an |
22 | | approved project sited in Illinois and expenditures for goods |
23 | | or services that are normally capitalized, including |
24 | | organizational costs and research and development costs |
25 | | incurred in Illinois. For land, buildings, structures, and |
26 | | equipment that are leased, the lease must equal or exceed the |
|
| | 10300HB0817ham002 | - 160 - | LRB103 04410 HLH 73800 a |
|
|
1 | | term of the agreement, and the cost of the property shall be |
2 | | determined from the present value, using the corporate |
3 | | interest rate prevailing at the time of the application, of |
4 | | the lease payments. |
5 | | "Credit" or "MICRO credit" means a credit agreed to |
6 | | between the Department and applicant under this Act. |
7 | | "Department" means the Department of Commerce and Economic |
8 | | Opportunity. |
9 | | "Director" means the Director of Commerce and Economic |
10 | | Opportunity. |
11 | | "Energy Transition Area" means a county with less than |
12 | | 100,000 people or a municipality that contains one or more of |
13 | | the 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 |
25 | | for consideration for at least 35 hours each week or who |
26 | | renders any other standard of service generally accepted by |
|
| | 10300HB0817ham002 | - 161 - | LRB103 04410 HLH 73800 a |
|
|
1 | | industry custom or practice as full-time employment. An |
2 | | individual for whom a W-2 is issued by a Professional Employer |
3 | | Organization (PEO) is a full-time employee if employed in the |
4 | | service of the applicant for consideration for at least 35 |
5 | | hours each week. |
6 | | "Incremental income tax" means the total amount withheld |
7 | | during the taxable year from the compensation of new employees |
8 | | and, if applicable, retained employees under Article 7 of the |
9 | | Illinois Income Tax Act arising from employment at a project |
10 | | that is the subject of an agreement. |
11 | | "Institution of higher education" or "institution" means |
12 | | any accredited public or private university, college, |
13 | | community college, business, technical, or vocational school, |
14 | | or other accredited educational institution offering degrees |
15 | | and instruction beyond the secondary school level. |
16 | | "MICRO construction jobs credit" means a credit agreed to |
17 | | between the Department and the applicant under this Act that |
18 | | is based on the incremental income tax attributable to |
19 | | construction wages paid in connection with construction of the |
20 | | project facilities. |
21 | | "MICRO credit" means a credit agreed to between the |
22 | | Department and the applicant under this Act that is based on |
23 | | the incremental income tax attributable to new employees and, |
24 | | if applicable, retained employees, and on training costs for |
25 | | such employees at the applicant's project. |
26 | | "Microchip" means a wafer of semiconducting material that |
|
| | 10300HB0817ham002 | - 162 - | LRB103 04410 HLH 73800 a |
|
|
1 | | is less than 15 millimeters long and less than 5 millimeters |
2 | | wide and is used to make an integrated circuit. |
3 | | "Microchip manufacturer" means a new or existing |
4 | | manufacturer that is focused on reequipping, expanding, or |
5 | | establishing a manufacturing facility in Illinois that |
6 | | produces microchips or key components that directly support |
7 | | the functions of microchips. |
8 | | "Minority person" means a minority person as defined in |
9 | | the Business Enterprise for Minorities, Women, and Persons |
10 | | with Disabilities Act. |
11 | | "New employee" means a newly-hired full-time employee |
12 | | employed to work at the project site and whose work is directly |
13 | | related to the project. |
14 | | "Noncompliance date" means, in the case of a taxpayer that |
15 | | is not complying with the requirements of the agreement or the |
16 | | provisions of this Act, the day following the last date upon |
17 | | which the taxpayer was in compliance with the requirements of |
18 | | the agreement and the provisions of this Act, as determined by |
19 | | the Director. |
20 | | "Pass-through entity" means an entity that is exempt from |
21 | | the tax under subsection (b) or (c) of Section 205 of the |
22 | | Illinois Income Tax Act. |
23 | | "Placed in service" means the state or condition of |
24 | | readiness, availability for a specifically assigned function, |
25 | | and the facility is constructed and ready to conduct its |
26 | | facility operations to manufacture goods. |
|
| | 10300HB0817ham002 | - 163 - | LRB103 04410 HLH 73800 a |
|
|
1 | | "Professional employer organization" (PEO) means an |
2 | | employee leasing company, as defined in Section 206.1 of the |
3 | | Illinois Unemployment Insurance Act. |
4 | | "Program" means the Manufacturing Illinois Chips for Real |
5 | | Opportunity (MICRO) program established in this Act. |
6 | | "Project" means a for-profit economic development activity |
7 | | for the manufacture of quantum computers, semiconductors , or |
8 | | and microchips. |
9 | | "Quantum computer" means a machine that uses the |
10 | | properties of quantum physics to perform computations and |
11 | | store data, as distinct from classical computing machines. |
12 | | "Quantum computer manufacturer" or "manufacturer of |
13 | | quantum computers or quantum computer component parts" means a |
14 | | new or existing manufacturer that is focused on reequipping, |
15 | | expanding, or establishing a facility in Illinois that |
16 | | manufactures a quantum computer, quantum computer prototype |
17 | | devices, or components that support the functions of a quantum |
18 | | computer. |
19 | | "Related member" means a person that, with respect to the |
20 | | taxpayer during any portion of the taxable year, is any one of |
21 | | the 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 |
|
| | 10300HB0817ham002 | - 164 - | LRB103 04410 HLH 73800 a |
|
|
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, |
|
| | 10300HB0817ham002 | - 165 - | LRB103 04410 HLH 73800 a |
|
|
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 |
4 | | computers, semiconductors, or microchips" means work directed |
5 | | toward the innovation, introduction, and improvement of |
6 | | products and processes in the space of quantum computing |
7 | | manufacturing, semiconductor manufacturing, microchip |
8 | | manufacturing, or the manufacturing of semiconductor, quantum |
9 | | computer, or microchip component parts. |
10 | | "Retained employee" means a full-time employee employed by |
11 | | the taxpayer prior to the term of the agreement who continues |
12 | | to be employed during the term of the agreement whose job |
13 | | duties are directly and substantially related to the project. |
14 | | For purposes of this definition, "directly and substantially |
15 | | related to the project" means at least two-thirds of the |
16 | | employee's job duties must be directly related to the project |
17 | | and the employee must devote at least two-thirds of his or her |
18 | | time to the project. The term "retained employee" does not |
19 | | include any individual who has a direct or an indirect |
20 | | ownership interest of at least 5% in the profits, equity, |
21 | | capital, or value of the taxpayer or a child, grandchild, |
22 | | parent, or spouse, other than a spouse who is legally |
23 | | separated from the individual, of any individual who has a |
24 | | direct or indirect ownership of at least 5% in the profits, |
25 | | equity, capital, or value of the taxpayer. |
26 | | "Semiconductor" means any class of crystalline solids |
|
| | 10300HB0817ham002 | - 166 - | LRB103 04410 HLH 73800 a |
|
|
1 | | intermediate in electrical conductivity between a conductor |
2 | | and an insulator. |
3 | | "Semiconductor manufacturer" means a new or existing |
4 | | manufacturer that is focused on reequipping, expanding, or |
5 | | establishing a manufacturing facility in Illinois that |
6 | | produces semiconductors or key components that directly |
7 | | support the functions of semiconductors. Semiconductor |
8 | | manufacturing also includes the manufacturing of component |
9 | | parts that are required for the development and operation of |
10 | | quantum computers and quantum computing facilities. |
11 | | "Statewide baseline" means the total number of full-time |
12 | | employees of the applicant and any related member employed by |
13 | | such entities at the time of application for incentives under |
14 | | this Act. |
15 | | "Taxpayer" means an individual, corporation, partnership, |
16 | | or other entity that has a legal obligation to pay Illinois |
17 | | income taxes and file an Illinois income tax return. |
18 | | "Training costs" means costs incurred to upgrade the |
19 | | technological skills of full-time employees in Illinois and |
20 | | includes: curriculum development; training materials |
21 | | (including scrap product costs); trainee domestic travel |
22 | | expenses; instructor costs (including wages, fringe benefits, |
23 | | tuition and domestic travel expenses); rent, purchase or lease |
24 | | of training equipment; and other usual and customary training |
25 | | costs. "Training costs" do not include costs associated with |
26 | | travel outside the United States (unless the taxpayer receives |
|
| | 10300HB0817ham002 | - 167 - | LRB103 04410 HLH 73800 a |
|
|
1 | | prior written approval for the travel by the Director based on |
2 | | a showing of substantial need or other proof the training is |
3 | | not reasonably available within the United States), wages and |
4 | | fringe benefits of employees during periods of training, or |
5 | | administrative cost related to full-time employees of the |
6 | | taxpayer. |
7 | | "Underserved area" means any geographic area areas as |
8 | | defined in Section 5-5 of the Economic Development for a |
9 | | Growing 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 |
13 | | Opportunity (MICRO) Program; project applications. |
14 | | (a) The Manufacturing Illinois Chips for Real Opportunity |
15 | | (MICRO) Program is hereby established and shall be |
16 | | administered by the Department. The Program will provide |
17 | | financial incentives to eligible semiconductor manufacturers , |
18 | | and microchip manufacturers , quantum computer manufacturers, |
19 | | and companies that primarily engage in research and |
20 | | development in the manufacturing of quantum computers, |
21 | | semiconductors, or microchips. For the purposes of this |
22 | | Section, a company is primarily engaged in research and |
23 | | development in the manufacturing of quantum computers, |
24 | | semiconductors, or microchips if at least 50% of its business |
25 | | activities involve research and development in the |
|
| | 10300HB0817ham002 | - 168 - | LRB103 04410 HLH 73800 a |
|
|
1 | | manufacturing of quantum computers, semiconductors, or |
2 | | microchips. . |
3 | | (b) Any taxpayer planning a project to be located in |
4 | | Illinois may request consideration for designation of its |
5 | | project as a MICRO project, by formal written letter of |
6 | | request or by formal application to the Department, in which |
7 | | the applicant states its intent to make at least a specified |
8 | | level of investment and intends to hire a specified number of |
9 | | full-time employees at a designated location in Illinois. As |
10 | | circumstances require, the Department shall require a formal |
11 | | application from an applicant and a formal letter of request |
12 | | for assistance. |
13 | | (c) In order to qualify for credits under the program, an |
14 | | applicant 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 |
|
| | 10300HB0817ham002 | - 169 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 170 - | LRB103 04410 HLH 73800 a |
|
|
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 |
26 | | noted in subsection (c), those jobs must have a total |
|
| | 10300HB0817ham002 | - 171 - | LRB103 04410 HLH 73800 a |
|
|
1 | | compensation equal to or greater than 120% of the average wage |
2 | | paid to full-time employees in the county where the project is |
3 | | located, as determined by the Department. |
4 | | (e) Each applicant must outline its hiring plan and |
5 | | commitment to recruit and hire full-time employee positions at |
6 | | the project site. The hiring plan may include a partnership |
7 | | with an institution of higher education to provide |
8 | | internships, including, but not limited to, internships |
9 | | supported by the Clean Jobs Workforce Network Program, or |
10 | | full-time permanent employment for students at the project |
11 | | site. Additionally, the applicant may create or utilize |
12 | | participants from apprenticeship programs that are approved by |
13 | | and registered with the United States Department of Labor's |
14 | | Bureau of Apprenticeship and Training. The Applicant may apply |
15 | | for apprenticeship education expense credits in accordance |
16 | | with the provisions set forth in 14 Ill. Admin. Code 522. Each |
17 | | applicant is required to report annually, on or before April |
18 | | 15, on the diversity of its workforce in accordance with |
19 | | Section 110-50 of this Act. For existing facilities of |
20 | | applicants under paragraph (3) of subsection (b) above, if the |
21 | | taxpayer expects a reduction in force due to its transition to |
22 | | manufacturing semiconductors, microchips, or semiconductor or |
23 | | microchip component parts, the plan submitted under this |
24 | | Section must outline the taxpayer's plan to assist with |
25 | | retraining its workforce aligned with the taxpayer's adoption |
26 | | of new technologies and anticipated efforts to retrain |
|
| | 10300HB0817ham002 | - 172 - | LRB103 04410 HLH 73800 a |
|
|
1 | | employees through employment opportunities within the |
2 | | taxpayer's workforce. |
3 | | (f) A taxpayer may not enter into more than one agreement |
4 | | under this Act with respect to a single address or location for |
5 | | the same period of time. Also, a taxpayer may not enter into an |
6 | | agreement under this Act with respect to a single address or |
7 | | location for the same period of time for which the taxpayer |
8 | | currently holds an active agreement under the Economic |
9 | | Development for a Growing Economy Tax Credit Act. This |
10 | | provision does not preclude the applicant from entering into |
11 | | an additional agreement after the expiration or voluntary |
12 | | termination of an earlier agreement under this Act or under |
13 | | the Economic Development for a Growing Economy Tax Credit Act |
14 | | to the extent that the taxpayer's application otherwise |
15 | | satisfies the terms and conditions of this Act and is approved |
16 | | by the Department. An applicant with an existing agreement |
17 | | under the Economic Development for a Growing Economy Tax |
18 | | Credit Act may submit an application for an agreement under |
19 | | this Act after it terminates any existing agreement under the |
20 | | Economic Development for a Growing Economy Tax Credit Act with |
21 | | respect 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 |
25 | | not entitled to claim a credit provided by this Act with |
|
| | 10300HB0817ham002 | - 173 - | LRB103 04410 HLH 73800 a |
|
|
1 | | respect to any jobs that the taxpayer relocates from one site |
2 | | in Illinois to another site in Illinois unless the taxpayer |
3 | | has agreed to hire the minimum number of new employees and the |
4 | | Department has determined that the expansion cannot reasonably |
5 | | be accommodated within the municipality in which the business |
6 | | is located . Any full-time employee relocated to Illinois in |
7 | | connection with a qualifying project is deemed to be a new |
8 | | employee for purposes of this Act. Determinations under this |
9 | | Section 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 |
14 | | seeking MICRO Construction Job Credits shall submit a report |
15 | | that, at a minimum, describes the projected project scope, |
16 | | timeline, and anticipated budget. Once the project has |
17 | | commenced, the annual report shall include actual data for the |
18 | | prior year as well as projections for each additional year |
19 | | through completion of the project. The Department shall issue |
20 | | detailed reporting guidelines prescribing the requirements of |
21 | | construction-related reports. Each contractor and |
22 | | subcontractor that is engaged in construction work on project |
23 | | facilities for a taxpayer who seeks to apply for a MICRO |
24 | | Construction Jobs Credit shall: |
25 | | (1) make and keep, for a period of 5 years from the |
|
| | 10300HB0817ham002 | - 174 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 175 - | LRB103 04410 HLH 73800 a |
|
|
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 |
16 | | certified payroll of a lower-tier subcontractor, provided the |
17 | | general contractor does not knowingly rely upon a |
18 | | subcontractor's false certification. |
19 | | (b) In order to receive credit for construction expenses, |
20 | | the company must provide the Department with evidence that a |
21 | | certified third party executed an Agreed-Upon Procedure (AUP) |
22 | | verifying the construction expenses or accept the standard |
23 | | construction wage expense estimated by the Department. Any |
24 | | contractor or subcontractor subject to this Section, and any |
25 | | officer, employee, or agent of such contractor or |
26 | | subcontractor whose duty as an officer, employee, or agent it |
|
| | 10300HB0817ham002 | - 176 - | LRB103 04410 HLH 73800 a |
|
|
1 | | is to file a certified payroll under this Section, who |
2 | | willfully fails to file such a certified payroll, on or before |
3 | | the date such certified payroll is required to be filed and any |
4 | | person who willfully files a false certified payroll as to any |
5 | | material fact is in violation of this Act and guilty of a Class |
6 | | A misdemeanor and may be enforced by the Illinois Department |
7 | | of Labor or the Department. The Attorney General shall |
8 | | represented the Illinois Department of Labor or the Department |
9 | | in the proceeding. |
10 | | (c) Upon review of the final project scope, timeline, |
11 | | budget, and AUP, the Department shall issue a tax credit |
12 | | certificate reflecting a percentage of the total construction |
13 | | job wages paid throughout the completion of the project. The |
14 | | taxpayer in charge of the project shall keep the records |
15 | | submitted in accordance with this Section for a period of 5 |
16 | | years from the date of the last payment for work on a contract |
17 | | or subcontract for the project. |
18 | | (d) (Blank). The records submitted in accordance with this |
19 | | Section shall be considered public records, except an |
20 | | employee's address, telephone number, and social security |
21 | | number, which shall be redacted. The records shall be made |
22 | | publicly available in accordance with the Freedom of |
23 | | Information Act. The contractor or subcontractor shall submit |
24 | | reports to the Department of Labor electronically that meet |
25 | | the requirements of this subsection and shall share the |
26 | | information with the Department to comply with the awarding of |
|
| | 10300HB0817ham002 | - 177 - | LRB103 04410 HLH 73800 a |
|
|
1 | | the MICRO Construction Jobs Credit. A contractor, |
2 | | subcontractor, or public body may retain records required |
3 | | under this Section in paper or electronic format. |
4 | | (e) Upon 7 business days' notice, the taxpayer contractor |
5 | | and each subcontractor shall make available to each State |
6 | | agency and to federal, State, or local law enforcement |
7 | | agencies and prosecutors for inspection and copying at a |
8 | | location within this State during reasonable hours, the report |
9 | | described in subsection (a) records identified in paragraph |
10 | | (1) of this subsection to the taxpayer in charge of the |
11 | | Project, its officers and agents, the Director of the |
12 | | Department of Labor and his/her deputies and agents, and to |
13 | | federal, State, or local law enforcement agencies and |
14 | | prosecutors . |
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. |
18 | | The Department may certify a taxpayer with a credit for a |
19 | | project that meets the qualifications under paragraphs (1), |
20 | | (2), and (4) of subsection (c) of Section 110-20, subject to an |
21 | | agreement under this Act, for an exemption from the tax |
22 | | imposed at the project site by Section 2-4 of the Electricity |
23 | | Excise Tax Law. To receive such certification, the taxpayer |
24 | | must be registered to self-assess that tax. The taxpayer is |
25 | | also exempt from any additional charges added to the |
|
| | 10300HB0817ham002 | - 178 - | LRB103 04410 HLH 73800 a |
|
|
1 | | taxpayer's utility bills at the project site as a pass-on of |
2 | | State utility taxes under Section 9-222 of the Public |
3 | | Utilities Act. The taxpayer must meet any other the criteria |
4 | | for certification set by the Department. |
5 | | The Department shall determine the period during which the |
6 | | exemption from the Electricity Excise Tax Law and the charges |
7 | | imposed under Section 9-222 of the Public Utilities Act are in |
8 | | effect, which shall not exceed 30 10 years from the date of the |
9 | | taxpayer's initial receipt of certification from the |
10 | | Department under this Section. |
11 | | The Department is authorized to adopt rules to carry out |
12 | | the provisions of this Section, including procedures to apply |
13 | | for the exemptions; to define the amounts and types of |
14 | | eligible investments that an applicant must make in order to |
15 | | receive electricity excise tax exemptions or exemptions from |
16 | | the additional charges imposed under Section 9-222 and the |
17 | | Public Utilities Act; to approve such electricity excise tax |
18 | | exemptions for applicants whose investments are not yet placed |
19 | | in service; and to require that an applicant granted an |
20 | | electricity excise tax exemption or an exemption from |
21 | | additional charges under Section 9-222 of the Public Utilities |
22 | | Act repay the exempted amount if the applicant fails to comply |
23 | | with the terms and conditions of the agreement. |
24 | | Upon certification by the Department under this Section, |
25 | | the Department shall notify the Department of Revenue of the |
26 | | certification. The Department of Revenue shall notify the |
|
| | 10300HB0817ham002 | - 179 - | LRB103 04410 HLH 73800 a |
|
|
1 | | public utilities of the exempt status of any taxpayer |
2 | | certified for exemption under this Act from the electricity |
3 | | excise tax or pass-on charges. The exemption status shall take |
4 | | effect within 3 months after certification of the taxpayer and |
5 | | notice 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 |
8 | | 12 as follows: |
9 | | (35 ILCS 105/12) (from Ch. 120, par. 439.12) |
10 | | Sec. 12. Applicability of Retailers' Occupation Tax Act |
11 | | and Uniform Penalty and Interest Act. All of the provisions of |
12 | | Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, |
13 | | 2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation |
14 | | provisions shall run from the date when the tax is due rather |
15 | | than from the date when gross receipts are received), 5 |
16 | | (except that the time limitation provisions on the issuance of |
17 | | notices of tax liability shall run from the date when the tax |
18 | | is due rather than from the date when gross receipts are |
19 | | received and except that in the case of a failure to file a |
20 | | return required by this Act, no notice of tax liability shall |
21 | | be issued on and after each July 1 and January 1 covering tax |
22 | | due with that return during any month or period more than 6 |
23 | | years before that July 1 or January 1, respectively), 5a, 5b, |
24 | | 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and |
|
| | 10300HB0817ham002 | - 180 - | LRB103 04410 HLH 73800 a |
|
|
1 | | 12 of the Retailers' Occupation Tax Act and Section 3-7 of the |
2 | | Uniform Penalty and Interest Act, which are not inconsistent |
3 | | with this Act, shall apply, as far as practicable, to the |
4 | | subject matter of this Act to the same extent as if such |
5 | | provisions 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 |
8 | | Section 12 as follows: |
9 | | (35 ILCS 110/12) (from Ch. 120, par. 439.42) |
10 | | Sec. 12. Applicability of Retailers' Occupation Tax Act |
11 | | and Uniform Penalty and Interest Act. All of the provisions of |
12 | | Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, |
13 | | 2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the |
14 | | Department of the money collected under this Act), 4 (except |
15 | | that the time limitation provisions shall run from the date |
16 | | when gross receipts are received), 5 (except that the time |
17 | | limitation provisions on the issuance of notices of tax |
18 | | liability shall run from the date when the tax is due rather |
19 | | than from the date when gross receipts are received and except |
20 | | that in the case of a failure to file a return required by this |
21 | | Act, no notice of tax liability shall be issued on and after |
22 | | July 1 and January 1 covering tax due with that return during |
23 | | any month or period more than 6 years before that July 1 or |
24 | | January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, |
|
| | 10300HB0817ham002 | - 181 - | LRB103 04410 HLH 73800 a |
|
|
1 | | 5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' |
2 | | Occupation Tax Act which are not inconsistent with this Act, |
3 | | and Section 3-7 of the Uniform Penalty and Interest Act, shall |
4 | | apply, as far as practicable, to the subject matter of this Act |
5 | | to 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 |
8 | | changing 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, |
11 | | 1j, 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 |
13 | | collected under this Act), 4 (except that the time limitation |
14 | | provisions shall run from the date when the tax is due rather |
15 | | than from the date when gross receipts are received), 5 |
16 | | (except that the time limitation provisions on the issuance of |
17 | | notices of tax liability shall run from the date when the tax |
18 | | is due rather than from the date when gross receipts are |
19 | | received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 6d, |
20 | | 7, 8, 9, 10, 11 , and 12 of the " Retailers' Occupation Tax Act " |
21 | | which are not inconsistent with this Act, and Section 3-7 of |
22 | | the Uniform Penalty and Interest Act shall apply, as far as |
23 | | practicable, to the subject matter of this Act to the same |
24 | | extent as if such provisions were included herein. |
|
| | 10300HB0817ham002 | - 182 - | LRB103 04410 HLH 73800 a |
|
|
1 | | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; |
2 | | revised 9-26-23.) |
3 | | Section 50. The Retailers' Occupation Tax Act is amended |
4 | | by adding Section 2-29 as follows: |
5 | | (35 ILCS 120/2-29 new) |
6 | | Sec. 2-29. Quantum computing campus building materials |
7 | | exemption. |
8 | | (a) Each retailer who makes a qualified sale of building |
9 | | materials to be incorporated into real estate at a quantum |
10 | | computing campus certified by the Department of Commerce and |
11 | | Economic Opportunity under Section 605-1115 of the Department |
12 | | of Commerce and Economic Opportunity Law of the Civil |
13 | | Administrative Code of Illinois may deduct receipts from those |
14 | | sales when calculating the tax imposed by this Act. Quantum |
15 | | Computing Campus Building Materials Exemption Certificates |
16 | | shall be issued for an initial period not to exceed 20 years |
17 | | and can be renewed once for a period not to exceed 20 years. |
18 | | (b) No retailer who is eligible for the deduction or |
19 | | credit for a given sale under Section 5k of this Act related to |
20 | | enterprise zones, Section 5l of this Act related to High |
21 | | Impact Businesses, Section 5m of this Act related to REV |
22 | | Illinois projects, or Section 5n of this Act related to MICRO |
23 | | facilities shall be eligible for the deduction or credit |
24 | | authorized under this Section for that same sale. |
|
| | 10300HB0817ham002 | - 183 - | LRB103 04410 HLH 73800 a |
|
|
1 | | (c) A construction contractor or other entity shall not |
2 | | make tax-free purchases unless it has an active Exemption |
3 | | Certificate issued by the Department at the time of the |
4 | | purchase. |
5 | | (d) A taxpayer that is certified by the Department of |
6 | | Commerce and Economic Opportunity under Section 605-1115 of |
7 | | the Department of Commerce and Economic Opportunity Law of the |
8 | | Civil Administrative Code of Illinois shall submit a request |
9 | | to the Department for an initial or renewal Quantum Computing |
10 | | Campus Materials Exemption Certificate. Upon request from the |
11 | | certified taxpayer, the Department shall issue a Quantum |
12 | | Computing Campus Building Materials Exemption Certificate for |
13 | | each construction contractor or other entity identified by the |
14 | | certified taxpayer. The Department shall make the Quantum |
15 | | Computing Campus Building Materials Exemption Certificates |
16 | | available to each construction contractor or other entity |
17 | | identified by the certified taxpayer and to the certified |
18 | | taxpayer. The request for Quantum Computing Campus Building |
19 | | Materials Exemption Certificates under this Section must |
20 | | include 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 |
|
| | 10300HB0817ham002 | - 184 - | LRB103 04410 HLH 73800 a |
|
|
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 |
19 | | request for Quantum Computing Campus Building Materials |
20 | | Exemption Certificates be submitted electronically. The |
21 | | Department may, in its discretion, issue the Exemption |
22 | | Certificates electronically. |
23 | | (e) To document the exemption allowed under this Section, |
24 | | the retailer must obtain from the purchaser the certification |
25 | | required under this Section, which must contain the Quantum |
26 | | Computing Campus Building Materials Exemption Certificate |
|
| | 10300HB0817ham002 | - 185 - | LRB103 04410 HLH 73800 a |
|
|
1 | | number issued to the purchaser by the Department. In addition, |
2 | | the retailer must obtain certification from the purchaser that |
3 | | contains: |
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 |
18 | | Campus Building Materials Exemption Certificates within 3 |
19 | | business days after receipt of the request from the certified |
20 | | taxpayer. This requirement does not apply in circumstances |
21 | | where the Department, for reasonable cause, is unable to issue |
22 | | the Exemption Certificate within 3 business days. The |
23 | | Department may refuse to issue a Quantum Computing Campus |
24 | | Building Materials Exemption Certificate if the owner, any |
25 | | partner, or a corporate officer, and in the case of a limited |
26 | | liability company, any manager or member, of the construction |
|
| | 10300HB0817ham002 | - 186 - | LRB103 04410 HLH 73800 a |
|
|
1 | | contractor or other entity is or has been the owner, a partner, |
2 | | a corporate officer, and, in the case of a limited liability |
3 | | company, a manager or member, of a person that is in default |
4 | | for moneys due to the Department under this Act or any other |
5 | | tax or fee Act administered by the Department. |
6 | | (g) The Quantum Computing Campus Building Materials |
7 | | Exemption 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 |
|
| | 10300HB0817ham002 | - 187 - | LRB103 04410 HLH 73800 a |
|
|
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 |
6 | | a given quantum computing campus, the certified taxpayer may |
7 | | notify the Department of additional construction contractors |
8 | | or other entities that are eligible for a Quantum Computing |
9 | | Campus Building Materials Exemption Certificate. Upon |
10 | | receiving such a notification and subject to the other |
11 | | provisions of this Section, the Department shall issue a |
12 | | Quantum Computing Campus Building Materials Exemption |
13 | | Certificate to each additional construction contractor or |
14 | | other entity so identified. |
15 | | (i) A certified taxpayer may ask the Department to rescind |
16 | | a Quantum Computing Campus Building Materials Exemption |
17 | | Certificate previously issued by the Department to a |
18 | | construction contractor or other entity working at that |
19 | | certified quantum computing campus if that Quantum Computing |
20 | | Campus Building Materials Exemption Certificate has not yet |
21 | | expired. Upon receiving such a request and subject to the |
22 | | other provisions of this Section, the Department shall issue |
23 | | the rescission of the Quantum Computing Campus Building |
24 | | Materials Exemption Certificate to the construction contractor |
25 | | or other entity identified by the certified taxpayer and |
26 | | provide a copy of the rescission to the construction |
|
| | 10300HB0817ham002 | - 188 - | LRB103 04410 HLH 73800 a |
|
|
1 | | contractor or other entity and to the certified taxpayer. |
2 | | (j) If the Department of Revenue determines that a |
3 | | construction contractor or other entity that was issued an |
4 | | Exemption Certificate under this Section made a tax-exempt |
5 | | purchase, as described in this Section, that was not eligible |
6 | | for exemption under this Section or allowed another person to |
7 | | make a tax-exempt purchase, as described in this Section, that |
8 | | was not eligible for exemption under this Section, then, in |
9 | | addition to any tax or other penalty imposed, the construction |
10 | | contractor or other entity is subject to a penalty equal to the |
11 | | tax that would have been paid by the retailer under this Act as |
12 | | well as any applicable local retailers' occupation tax on the |
13 | | purchase that was not eligible for the exemption. |
14 | | (k) Each contractor or other entity that has been issued a |
15 | | Quantum Computing Campus Building Materials Exemption |
16 | | Certificate under this Section shall annually report to the |
17 | | Department the total value of the quantum computing campus |
18 | | building materials exemption from State taxes. Reports shall |
19 | | contain information reasonably required by the Department to |
20 | | enable it to verify and calculate the total tax benefits for |
21 | | taxes imposed by the State and shall be broken down by quantum |
22 | | computing campus site. Reports are due no later than May 31 of |
23 | | each year and shall cover the previous calendar year. Failure |
24 | | to report data may result in revocation of the Quantum |
25 | | Computing Campus Building Materials Exemption Certificate |
26 | | issued to the contractor or other entity. The Department is |
|
| | 10300HB0817ham002 | - 189 - | LRB103 04410 HLH 73800 a |
|
|
1 | | authorized to adopt rules governing revocation determinations, |
2 | | including the length of revocation. Factors to be considered |
3 | | in revocations shall include, but are not limited to, prior |
4 | | compliance with the reporting requirements, cooperation in |
5 | | discontinuing and correcting violations, and whether the |
6 | | certificate was used unlawfully during the preceding year. The |
7 | | Department, in its discretion, may require that the reports |
8 | | filed under this Section be submitted electronically. |
9 | | (l) As used in this Section: |
10 | | "Certified taxpayer" means a person certified by the |
11 | | Department of Commerce and Economic Opportunity under Section |
12 | | 605-1115 of the Department of Commerce and Economic |
13 | | Opportunity Law of the Civil Administrative Code of Illinois. |
14 | | "Qualified sale" means a sale of building materials that |
15 | | will be incorporated into real estate as part of a building |
16 | | project for which a Quantum Computing Campus Building |
17 | | Materials Exemption Certificate has been issued to the |
18 | | purchaser by the Department. |
19 | | (m) The Department shall have the authority to adopt rules |
20 | | as are reasonable and necessary to implement the provisions of |
21 | | this Section. |
22 | | (n) This Section is exempt from the provisions of Section |
23 | | 2-70. |
24 | | (o) This exemption also applies to the Use Tax Act, the |
25 | | Service Use Tax Act, and the Service Occupation Tax Act and is |
26 | | incorporated by reference in Section 12 of each of those |
|
| | 10300HB0817ham002 | - 190 - | LRB103 04410 HLH 73800 a |
|
|
1 | | respective Acts. |
2 | | Section 53. The Gas Use Tax Law is amended by changing |
3 | | Section 5-10 as follows: |
4 | | (35 ILCS 173/5-10) |
5 | | Sec. 5-10. Imposition of tax. Beginning October 1, 2003, a |
6 | | tax is imposed upon the privilege of using in this State gas |
7 | | obtained in a purchase of out-of-state gas at the rate of 2.4 |
8 | | cents per therm or 5% of the purchase price for the billing |
9 | | period, whichever is the lower rate. Such tax rate shall be |
10 | | referred to as the "self-assessing purchaser tax rate". |
11 | | Beginning with bills issued by delivering suppliers on and |
12 | | after October 1, 2003, purchasers may elect an alternative tax |
13 | | rate of 2.4 cents per therm to be paid under the provisions of |
14 | | Section 5-15 of this Law to a delivering supplier maintaining |
15 | | a place of business in this State. Such tax rate shall be |
16 | | referred to as the "alternate tax rate". The tax imposed under |
17 | | this Section shall not apply to gas used by business |
18 | | enterprises certified under Section 9-222.1 of the Public |
19 | | Utilities Act or Section 605-1115 of the Department of |
20 | | Commerce and Economic Opportunity Law of the Civil |
21 | | Administrative Code of Illinois , as amended, to the extent of |
22 | | such exemption and during the period of time specified by the |
23 | | Department of Commerce and Economic Opportunity. |
24 | | (Source: P.A. 93-31, eff. 10-1-03; 94-793, eff. 5-19-06.) |
|
| | 10300HB0817ham002 | - 191 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Section 55. The Property Tax Code is amended by changing |
2 | | Sections 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 |
5 | | electric vehicles, electric vehicle component parts, or |
6 | | electric vehicle power supply equipment; abatement. |
7 | | (a) Any taxing district, upon a majority vote of its |
8 | | governing body, may, after determination of the assessed value |
9 | | as set forth in this Code, order the clerk of the appropriate |
10 | | municipality or county to abate , for a period not to exceed 30 |
11 | | consecutive years, any portion of real property taxes |
12 | | otherwise levied or extended by the taxing district on a REV |
13 | | Illinois Project facility owned by an electric vehicle |
14 | | manufacturer, electric vehicle component parts manufacturer, |
15 | | or an electric vehicle power supply manufacturer that is |
16 | | subject to an agreement with the Department of Commerce and |
17 | | Economic Opportunity under Section 45 of the Reimagining |
18 | | Energy and Vehicles in Illinois Act, during the period of time |
19 | | such agreement is in effect as specified by the Department of |
20 | | Commerce and Economic Opportunity. |
21 | | (b) Two or more taxing districts, upon a majority vote of |
22 | | each of their respective governing bodies, may agree to abate, |
23 | | for a period not to exceed 30 consecutive tax years, a portion |
24 | | of the real property taxes otherwise levied or extended by |
|
| | 10300HB0817ham002 | - 192 - | LRB103 04410 HLH 73800 a |
|
|
1 | | those taxing districts on a REV Illinois Project facility that |
2 | | is subject to an agreement with the Department of Commerce and |
3 | | Economic Opportunity under Section 45 of the Reimagining |
4 | | Energy and Vehicles in Illinois Act. The agreement entered |
5 | | into by the taxing districts under this subsection (b) shall |
6 | | be filed with the county clerk who shall, for the period the |
7 | | agreement remains in effect, abate the portion of the real |
8 | | estate taxes levied or extended by those taxing districts as |
9 | | directed in the agreement. Any such agreement entered into by |
10 | | 2 or more taxing districts before the effective date of this |
11 | | amendatory Act of the 103rd General Assembly that is not |
12 | | inconsistent with the provisions of this subsection (b) is |
13 | | hereby declared valid and enforceable for the effective period |
14 | | of 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 |
18 | | taxing district, upon a majority vote of its governing body, |
19 | | may, after determination of the assessed value as set forth in |
20 | | this Code, order the clerk of the appropriate municipality or |
21 | | county to abate , for a period not to exceed 30 consecutive |
22 | | years, any portion of real property taxes otherwise levied or |
23 | | extended by the taxing district on a MICRO Illinois Project |
24 | | facility owned by a semiconductor manufacturer or microchip |
25 | | manufacturer or a semiconductor or microchip component parts |
|
| | 10300HB0817ham002 | - 193 - | LRB103 04410 HLH 73800 a |
|
|
1 | | manufacturer that is subject to an agreement with the |
2 | | Department of Commerce and Economic Opportunity under the |
3 | | Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, |
4 | | during the period of time such agreement is in effect as |
5 | | specified by the Department of Commerce and Economic |
6 | | Opportunity. |
7 | | (Source: P.A. 102-700, eff. 4-19-22.) |
8 | | Section 60. The Telecommunications Excise Tax Act is |
9 | | amended 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 |
12 | | clearly requires otherwise: |
13 | | (a) "Gross charge" means the amount paid for the act or |
14 | | privilege of originating or receiving telecommunications in |
15 | | this State and for all services and equipment provided in |
16 | | connection therewith by a retailer, valued in money whether |
17 | | paid in money or otherwise, including cash, credits, services |
18 | | and property of every kind or nature, and shall be determined |
19 | | without any deduction on account of the cost of such |
20 | | telecommunications, the cost of materials used, labor or |
21 | | service costs or any other expense whatsoever. In case credit |
22 | | is extended, the amount thereof shall be included only as and |
23 | | when paid. "Gross charges" for private line service shall |
24 | | include charges imposed at each channel termination point |
|
| | 10300HB0817ham002 | - 194 - | LRB103 04410 HLH 73800 a |
|
|
1 | | within this State, charges for the channel mileage between |
2 | | each channel termination point within this State, and charges |
3 | | for that portion of the interstate inter-office channel |
4 | | provided within Illinois. Charges for that portion of the |
5 | | interstate inter-office channel provided in Illinois shall be |
6 | | determined by the retailer as follows: (i) for interstate |
7 | | inter-office channels having 2 channel termination points, |
8 | | only one of which is in Illinois, 50% of the total charge |
9 | | imposed; or (ii) for interstate inter-office channels having |
10 | | more than 2 channel termination points, one or more of which |
11 | | are in Illinois, an amount equal to the total charge |
12 | | multiplied by a fraction, the numerator of which is the number |
13 | | of channel termination points within Illinois and the |
14 | | denominator of which is the total number of channel |
15 | | termination points. Prior to January 1, 2004, any method |
16 | | consistent with this paragraph or other method that reasonably |
17 | | apportions the total charges for interstate inter-office |
18 | | channels among the states in which channel terminations points |
19 | | are located shall be accepted as a reasonable method to |
20 | | determine the charges for that portion of the interstate |
21 | | inter-office channel provided within Illinois for that period. |
22 | | However, "gross charges" shall not include any of the |
23 | | following: |
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 |
|
| | 10300HB0817ham002 | - 195 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 196 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 197 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 198 - | LRB103 04410 HLH 73800 a |
|
|
1 | | taxpayer's service address in this State regardless of where |
2 | | such amount is billed or paid. |
3 | | (c) "Telecommunications", in addition to the meaning |
4 | | ordinarily and popularly ascribed to it, includes, without |
5 | | limitation, messages or information transmitted through use of |
6 | | local, toll and wide area telephone service; private line |
7 | | services; channel services; telegraph services; |
8 | | teletypewriter; computer exchange services; cellular mobile |
9 | | telecommunications service; specialized mobile radio; |
10 | | stationary two way radio; paging service; or any other form of |
11 | | mobile and portable one-way or two-way communications; or any |
12 | | other transmission of messages or information by electronic or |
13 | | similar means, between or among points by wire, cable, |
14 | | fiber-optics, laser, microwave, radio, satellite or similar |
15 | | facilities. As used in this Act, "private line" means a |
16 | | dedicated non-traffic sensitive service for a single customer, |
17 | | that entitles the customer to exclusive or priority use of a |
18 | | communications channel or group of channels, from one or more |
19 | | specified locations to one or more other specified locations. |
20 | | The definition of "telecommunications" shall not include value |
21 | | added services in which computer processing applications are |
22 | | used to act on the form, content, code and protocol of the |
23 | | information for purposes other than transmission. |
24 | | "Telecommunications" shall not include purchases of |
25 | | telecommunications by a telecommunications service provider |
26 | | for use as a component part of the service provided by him to |
|
| | 10300HB0817ham002 | - 199 - | LRB103 04410 HLH 73800 a |
|
|
1 | | the ultimate retail consumer who originates or terminates the |
2 | | taxable end-to-end communications. Carrier access charges, |
3 | | right of access charges, charges for use of inter-company |
4 | | facilities, and all telecommunications resold in the |
5 | | subsequent provision of, used as a component of, or integrated |
6 | | into end-to-end telecommunications service shall be |
7 | | non-taxable as sales for resale. |
8 | | (d) "Interstate telecommunications" means all |
9 | | telecommunications that either originate or terminate outside |
10 | | this State. |
11 | | (e) "Intrastate telecommunications" means all |
12 | | telecommunications that originate and terminate within this |
13 | | State. |
14 | | (f) "Department" means the Department of Revenue of the |
15 | | State of Illinois. |
16 | | (g) "Director" means the Director of Revenue for the |
17 | | Department of Revenue of the State of Illinois. |
18 | | (h) "Taxpayer" means a person who individually or through |
19 | | his agents, employees or permittees engages in the act or |
20 | | privilege of originating or receiving telecommunications in |
21 | | this State and who incurs a tax liability under this Article. |
22 | | (i) "Person" means any natural individual, firm, trust, |
23 | | estate, partnership, association, joint stock company, joint |
24 | | venture, corporation, limited liability company, or a |
25 | | receiver, trustee, guardian or other representative appointed |
26 | | by order of any court, the Federal and State governments, |
|
| | 10300HB0817ham002 | - 200 - | LRB103 04410 HLH 73800 a |
|
|
1 | | including State universities created by statute or any city, |
2 | | town, county or other political subdivision of this State. |
3 | | (j) "Purchase at retail" means the acquisition, |
4 | | consumption or use of telecommunication through a sale at |
5 | | retail. |
6 | | (k) "Sale at retail" means the transmitting, supplying or |
7 | | furnishing of telecommunications and all services and |
8 | | equipment provided in connection therewith for a consideration |
9 | | to persons other than the Federal and State governments, and |
10 | | State universities created by statute and other than between a |
11 | | parent corporation and its wholly owned subsidiaries or |
12 | | between wholly owned subsidiaries for their use or consumption |
13 | | and not for resale. |
14 | | (l) "Retailer" means and includes every person engaged in |
15 | | the business of making sales at retail as defined in this |
16 | | Article. The Department may, in its discretion, upon |
17 | | application, authorize the collection of the tax hereby |
18 | | imposed by any retailer not maintaining a place of business |
19 | | within this State, who, to the satisfaction of the Department, |
20 | | furnishes adequate security to insure collection and payment |
21 | | of the tax. Such retailer shall be issued, without charge, a |
22 | | permit to collect such tax. When so authorized, it shall be the |
23 | | duty of such retailer to collect the tax upon all of the gross |
24 | | charges for telecommunications in this State in the same |
25 | | manner and subject to the same requirements as a retailer |
26 | | maintaining a place of business within this State. The permit |
|
| | 10300HB0817ham002 | - 201 - | LRB103 04410 HLH 73800 a |
|
|
1 | | may be revoked by the Department at its discretion. |
2 | | (m) "Retailer maintaining a place of business in this |
3 | | State", or any like term, means and includes any retailer |
4 | | having or maintaining within this State, directly or by a |
5 | | subsidiary, an office, distribution facilities, transmission |
6 | | facilities, sales office, warehouse or other place of |
7 | | business, or any agent or other representative operating |
8 | | within this State under the authority of the retailer or its |
9 | | subsidiary, irrespective of whether such place of business or |
10 | | agent or other representative is located here permanently or |
11 | | temporarily, or whether such retailer or subsidiary is |
12 | | licensed to do business in this State. |
13 | | (n) "Service address" means the location of |
14 | | telecommunications equipment from which the telecommunications |
15 | | services are originated or at which telecommunications |
16 | | services are received by a taxpayer. In the event this may not |
17 | | be a defined location, as in the case of mobile phones, paging |
18 | | systems, maritime systems, service address means the |
19 | | customer's place of primary use as defined in the Mobile |
20 | | Telecommunications Sourcing Conformity Act. For air-to-ground |
21 | | systems and the like, service address shall mean the location |
22 | | of a taxpayer's primary use of the telecommunications |
23 | | equipment as defined by telephone number, authorization code, |
24 | | or location in Illinois where bills are sent. |
25 | | (o) "Prepaid telephone calling arrangements" mean the |
26 | | right to exclusively purchase telephone or telecommunications |
|
| | 10300HB0817ham002 | - 202 - | LRB103 04410 HLH 73800 a |
|
|
1 | | services that must be paid for in advance and enable the |
2 | | origination of one or more intrastate, interstate, or |
3 | | international telephone calls or other telecommunications |
4 | | using an access number, an authorization code, or both, |
5 | | whether manually or electronically dialed, for which payment |
6 | | to a retailer must be made in advance, provided that, unless |
7 | | recharged, no further service is provided once that prepaid |
8 | | amount of service has been consumed. Prepaid telephone calling |
9 | | arrangements include the recharge of a prepaid calling |
10 | | arrangement. For purposes of this subsection, "recharge" means |
11 | | the purchase of additional prepaid telephone or |
12 | | telecommunications services whether or not the purchaser |
13 | | acquires a different access number or authorization code. |
14 | | "Prepaid telephone calling arrangement" does not include an |
15 | | arrangement whereby a customer purchases a payment card and |
16 | | pursuant to which the service provider reflects the amount of |
17 | | such purchase as a credit on an invoice issued to that customer |
18 | | under an existing subscription plan. |
19 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; |
20 | | 102-1125, eff. 2-3-23.) |
21 | | Section 65. The Telecommunications Infrastructure |
22 | | Maintenance Fee Act is amended by changing Section 10 as |
23 | | follows: |
24 | | (35 ILCS 635/10) |
|
| | 10300HB0817ham002 | - 203 - | LRB103 04410 HLH 73800 a |
|
|
1 | | Sec. 10. Definitions. |
2 | | (a) "Gross charges" means the amount paid to a |
3 | | telecommunications retailer for the act or privilege of |
4 | | originating or receiving telecommunications in this State and |
5 | | for all services rendered in connection therewith, valued in |
6 | | money whether paid in money or otherwise, including cash, |
7 | | credits, services, and property of every kind or nature, and |
8 | | shall be determined without any deduction on account of the |
9 | | cost of such telecommunications, the cost of the materials |
10 | | used, labor or service costs, or any other expense whatsoever. |
11 | | In case credit is extended, the amount thereof shall be |
12 | | included only as and when paid. "Gross charges" for private |
13 | | line service shall include charges imposed at each channel |
14 | | termination point within this State, charges for the channel |
15 | | mileage between each channel termination point within this |
16 | | State, and charges for that portion of the interstate |
17 | | inter-office channel provided within Illinois. Charges for |
18 | | that portion of the interstate inter-office channel provided |
19 | | in Illinois shall be determined by the retailer as follows: |
20 | | (i) for interstate inter-office channels having 2 channel |
21 | | termination points, only one of which is in Illinois, 50% of |
22 | | the total charge imposed; or (ii) for interstate inter-office |
23 | | channels having more than 2 channel termination points, one or |
24 | | more of which are in Illinois, an amount equal to the total |
25 | | charge multiplied by a fraction, the numerator of which is the |
26 | | number of channel termination points within Illinois and the |
|
| | 10300HB0817ham002 | - 204 - | LRB103 04410 HLH 73800 a |
|
|
1 | | denominator of which is the total number of channel |
2 | | termination points. Prior to January 1, 2004, any method |
3 | | consistent with this paragraph or other method that reasonably |
4 | | apportions the total charges for interstate inter-office |
5 | | channels among the states in which channel terminations points |
6 | | are located shall be accepted as a reasonable method to |
7 | | determine the charges for that portion of the interstate |
8 | | inter-office channel provided within Illinois for that period. |
9 | | However, "gross charges" shall not include any of the |
10 | | following: |
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 |
|
| | 10300HB0817ham002 | - 205 - | LRB103 04410 HLH 73800 a |
|
|
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. |
|
| | 10300HB0817ham002 | - 206 - | LRB103 04410 HLH 73800 a |
|
|
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 |
|
| | 10300HB0817ham002 | - 207 - | LRB103 04410 HLH 73800 a |
|
|
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 |
10 | | Revenue. |
11 | | (b) "Telecommunications" includes, but is not limited to, |
12 | | messages or information transmitted through use of local, |
13 | | toll, and wide area telephone service, channel services, |
14 | | telegraph services, teletypewriter service, computer exchange |
15 | | services, private line services, specialized mobile radio |
16 | | services, or any other transmission of messages or information |
17 | | by electronic or similar means, between or among points by |
18 | | wire, cable, fiber optics, laser, microwave, radio, satellite, |
19 | | or similar facilities. Unless the context clearly requires |
20 | | otherwise, "telecommunications" shall also include wireless |
21 | | telecommunications as hereinafter defined. |
22 | | "Telecommunications" shall not include value added services in |
23 | | which computer processing applications are used to act on the |
24 | | form, content, code, and protocol of the information for |
25 | | purposes other than transmission. "Telecommunications" shall |
26 | | not include purchase of telecommunications by a |
|
| | 10300HB0817ham002 | - 208 - | LRB103 04410 HLH 73800 a |
|
|
1 | | telecommunications service provider for use as a component |
2 | | part of the service provided by him or her to the ultimate |
3 | | retail consumer who originates or terminates the end-to-end |
4 | | communications. Retailer access charges, right of access |
5 | | charges, charges for use of intercompany facilities, and all |
6 | | telecommunications resold in the subsequent provision and used |
7 | | as a component of, or integrated into, end-to-end |
8 | | telecommunications service shall not be included in gross |
9 | | charges as sales for resale. "Telecommunications" shall not |
10 | | include the provision of cable services through a cable system |
11 | | as defined in the Cable Communications Act of 1984 (47 U.S.C. |
12 | | Sections 521 and following) as now or hereafter amended or |
13 | | through an open video system as defined in the Rules of the |
14 | | Federal Communications Commission (47 C.D.F. 76.1550 and |
15 | | following) as now or hereafter amended. Beginning January 1, |
16 | | 2001, prepaid telephone calling arrangements shall not be |
17 | | considered "telecommunications" subject to the tax imposed |
18 | | under this Act. For purposes of this Section, "prepaid |
19 | | telephone calling arrangements" means that term as defined in |
20 | | Section 2-27 of the Retailers' Occupation Tax Act. |
21 | | (c) "Wireless telecommunications" includes cellular mobile |
22 | | telephone services, personal wireless services as defined in |
23 | | Section 704(C) of the Telecommunications Act of 1996 (Public |
24 | | Law No. 104-104) as now or hereafter amended, including all |
25 | | commercial mobile radio services, and paging services. |
26 | | (d) "Telecommunications retailer" or "retailer" or |
|
| | 10300HB0817ham002 | - 209 - | LRB103 04410 HLH 73800 a |
|
|
1 | | "carrier" means and includes every person engaged in the |
2 | | business of making sales of telecommunications at retail as |
3 | | defined in this Section. The Department may, in its |
4 | | discretion, upon applications, authorize the collection of the |
5 | | fee hereby imposed by any retailer not maintaining a place of |
6 | | business within this State, who, to the satisfaction of the |
7 | | Department, furnishes adequate security to insure collection |
8 | | and payment of the fee. When so authorized, it shall be the |
9 | | duty of such retailer to pay the fee upon all of the gross |
10 | | charges for telecommunications in the same manner and subject |
11 | | to the same requirements as a retailer maintaining a place of |
12 | | business within this State. |
13 | | (e) "Retailer maintaining a place of business in this |
14 | | State", or any like term, means and includes any retailer |
15 | | having or maintaining within this State, directly or by a |
16 | | subsidiary, an office, distribution facilities, transmission |
17 | | facilities, sales office, warehouse, or other place of |
18 | | business, or any agent or other representative operating |
19 | | within this State under the authority of the retailer or its |
20 | | subsidiary, irrespective of whether such place of business or |
21 | | agent or other representative is located here permanently or |
22 | | temporarily, or whether such retailer or subsidiary is |
23 | | licensed to do business in this State. |
24 | | (f) "Sale of telecommunications at retail" means the |
25 | | transmitting, supplying, or furnishing of telecommunications |
26 | | and all services rendered in connection therewith for a |
|
| | 10300HB0817ham002 | - 210 - | LRB103 04410 HLH 73800 a |
|
|
1 | | consideration, other than between a parent corporation and its |
2 | | wholly owned subsidiaries or between wholly owned |
3 | | subsidiaries, when the gross charge made by one such |
4 | | corporation to another such corporation is not greater than |
5 | | the gross charge paid to the retailer for their use or |
6 | | consumption and not for sale. |
7 | | (g) "Service address" means the location of |
8 | | telecommunications equipment from which telecommunications |
9 | | services are originated or at which telecommunications |
10 | | services are received. If this is not a defined location, as in |
11 | | the case of wireless telecommunications, paging systems, |
12 | | maritime systems, service address means the customer's place |
13 | | of primary use as defined in the Mobile Telecommunications |
14 | | Sourcing Conformity Act. For air-to-ground systems, and the |
15 | | like, "service address" shall mean the location of the |
16 | | customer's primary use of the telecommunications equipment as |
17 | | defined 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 |
20 | | Tax 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 |
23 | | authorized by this Act: |
24 | | "Amount paid" means the amount charged to the taxpayer's |
|
| | 10300HB0817ham002 | - 211 - | LRB103 04410 HLH 73800 a |
|
|
1 | | service address in such municipality regardless of where such |
2 | | amount is billed or paid. |
3 | | "Department" means the Illinois Department of Revenue. |
4 | | "Gross charge" means the amount paid for the act or |
5 | | privilege of originating or receiving telecommunications in |
6 | | such municipality and for all services and equipment provided |
7 | | in connection therewith by a retailer, valued in money whether |
8 | | paid in money or otherwise, including cash, credits, services |
9 | | and property of every kind or nature, and shall be determined |
10 | | without any deduction on account of the cost of such |
11 | | telecommunications, the cost of the materials used, labor or |
12 | | service costs or any other |