94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2203

 

Introduced 1/11/2006, by Sen. Frank C. Watson - Dale A. Righter

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 10/5-25

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that, if an applicant for a credit under the Act (i) is an Illinois-based company that is competing with an out-of-state company to supply parts or components to another Illinois manufacturer and (ii) signs an affidavit attesting that, without the credit, the applicant will likely lose the parts or components work to the out-of-state competitor, then the application need not demonstrate that the applicant has multi-state location options and need not identify a cost differential in the projected costs for the applicant's project compared to the costs in the competing state. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Economic Development for a Growing Economy
5 Tax Credit Act is amended by changing Section 5-25 as follows:
 
6     (35 ILCS 10/5-25)
7     Sec. 5-25. Review of Application.
8     (a) In addition to those duties granted under the Illinois
9 Economic Development Board Act, the Illinois Economic
10 Development Board shall form a Business Investment Committee
11 for the purpose of making recommendations for applications. At
12 the request of the Board, the Director of Commerce and Economic
13 Opportunity Community Affairs or his or her designee, the
14 Director of the Governor's Office of Management and Budget
15 Bureau of the Budget or his or her designee, the Director of
16 Revenue or his or her designee, the Director of Employment
17 Security or his or her designee, and an elected official of the
18 affected locality, such as the chair of the county board or the
19 mayor, may serve as members of the Committee to assist with its
20 analysis and deliberations.
21     (b) At the Department's request, the Committee shall
22 convene, make inquiries, and conduct studies in the manner and
23 by the methods as it deems desirable, review information with
24 respect to Applicants, and make recommendations for projects to
25 benefit the State. In making its recommendation that an
26 Applicant's application for Credit should or should not be
27 accepted, which shall occur within a reasonable time frame as
28 determined by the nature of the application, the Committee
29 shall determine that all the following conditions exist:
30         (1) The Applicant's project intends, as required by
31     subsection (b) of Section 5-20 to make the required
32     investment in the State and intends to hire the required

 

 

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1     number of New Employees in Illinois as a result of that
2     project.
3         (2) The Applicant's project is economically sound and
4     will benefit the people of the State of Illinois by
5     increasing opportunities for employment and strengthen the
6     economy of Illinois.
7         (3) That, if not for the Credit, the project would not
8     occur in Illinois, which may be demonstrated by any means
9     including, but not limited to, evidence the Applicant has
10     multi-state location options and could reasonably and
11     efficiently locate outside of the State, or demonstration
12     that at least one other state is being considered for the
13     project, or evidence the receipt of the Credit is a major
14     factor in the Applicant's decision and that without the
15     Credit, the Applicant likely would not create new jobs in
16     Illinois, or demonstration that receiving the Credit is
17     essential to the Applicant's decision to create or retain
18     new jobs in the State. If the Applicant is an
19     Illinois-based company that is competing with an
20     out-of-state company to supply parts or components to
21     another Illinois manufacturer, then no multi-state
22     location option under this item (3) or cost differential
23     under item (4) is required if the Applicant signs an
24     affidavit attesting that, without the Credit, the
25     Applicant will likely lose the parts or components work to
26     the out-of-state competitor.
27         (4) A cost differential is identified, using best
28     available data, in the projected costs for the Applicant's
29     project compared to the costs in the competing state,
30     including the impact of the competing state's incentive
31     programs. The competing state's incentive programs shall
32     include state, local, private, and federal funds
33     available. If the Applicant is an Illinois-based company
34     that is competing with an out-of-state company to supply
35     parts or components to another Illinois manufacturer, then
36     no multi-state location option under item (3) or cost

 

 

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1     differential under this item (4) is required if the
2     Applicant signs an affidavit attesting that, without the
3     Credit, the Applicant will likely lose the parts or
4     components work to the out-of-state competitor.
5         (5) The political subdivisions affected by the project
6     have committed local incentives with respect to the
7     project, considering local ability to assist.
8         (6) Awarding the Credit will result in an overall
9     positive fiscal impact to the State, as certified by the
10     Committee using the best available data.
11         (7) The Credit is not prohibited by Section 5-35 of
12     this Act.
13 (Source: P.A. 91-476, eff. 8-11-99; revised 8-23-03.)
 
14     Section 99. Effective date. This Act takes effect upon
15 becoming law.