Rep. Jack D. Franks

Filed: 2/21/2012





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2    AMENDMENT NO. ______. Amend House Bill 3934 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Sections 5-10, 5-20,
65-45, and 5-50 and by adding Section 5-26 as follows:
7    (35 ILCS 10/5-10)
8    Sec. 5-10. Powers of the Department. The Department, in
9addition to those powers granted under the Civil Administrative
10Code of Illinois, is granted and shall have all the powers
11necessary or convenient to carry out and effectuate the
12purposes and provisions of this Act, including, but not limited
13to, power and authority to:
14    (a) Promulgate procedures, rules, or regulations deemed
15necessary and appropriate for the administration of the
16programs; establish forms for applications, notifications,



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1contracts, or any other agreements; and accept applications at
2any time during the year.
3    (b) Provide and assist Taxpayers pursuant to the provisions
4of this Act, and cooperate with Taxpayers that are parties to
5Agreements to promote, foster, and support economic
6development, capital investment, and job creation or retention
7within the State.
8    (c) Enter into agreements and memoranda of understanding
9for participation of and engage in cooperation with agencies of
10the federal government, local units of government,
11universities, research foundations or institutions, regional
12economic development corporations, or other organizations for
13the purposes of this Act.
14    (d) Gather information and conduct inquiries, in the manner
15and by the methods as it deems desirable, including without
16limitation, gathering information with respect to Applicants
17for the purpose of making any designations or certifications
18necessary or desirable or to gather information to assist the
19Committee with any recommendation or guidance in the
20furtherance of the purposes of this Act.
21    (e) Establish, negotiate and effectuate any term,
22agreement or other document with any person, necessary or
23appropriate to accomplish the purposes of this Act; and to
24consent, subject to the provisions of any Agreement with
25another party, to the modification or restructuring of any
26Agreement to which the Department is a party, provided that all



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1Agreements entered into on or after the effective date of this
2amendatory Act of the 97th General Assembly, and all
3modifications to or restructuring of Agreements occurring on or
4after the effective date of this amendatory Act of the 97th
5General Assembly, require the approval of the Economic
6Incentive Committee established under Section 5-26 of this Act.
7    (f) Fix, determine, charge, and collect any premiums, fees,
8charges, costs, and expenses from Applicants, including,
9without limitation, any application fees, commitment fees,
10program fees, financing charges, or publication fees as deemed
11appropriate to pay expenses necessary or incident to the
12administration, staffing, or operation in connection with the
13Department's or Committee's activities under this Act, or for
14preparation, implementation, and enforcement of the terms of
15the Agreement, or for consultation, advisory and legal fees,
16and other costs; however, all fees and expenses incident
17thereto shall be the responsibility of the Applicant.
18    (g) Provide for sufficient personnel to permit
19administration, staffing, operation, and related support
20required to adequately discharge its duties and
21responsibilities described in this Act from funds made
22available through charges to Applicants or from funds as may be
23appropriated by the General Assembly for the administration of
24this Act.
25    (h) Require Applicants, upon written request, to issue any
26necessary authorization to the appropriate federal, state, or



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1local authority for the release of information concerning a
2project being considered under the provisions of this Act, with
3the information requested to include, but not be limited to,
4financial reports, returns, or records relating to the
5Taxpayers' or its project.
6    (i) Require that a Taxpayer shall at all times keep proper
7books of record and account in accordance with generally
8accepted accounting principles consistently applied, with the
9books, records, or papers related to the Agreement in the
10custody or control of the Taxpayer open for reasonable
11Department inspection and audits, and including, without
12limitation, the making of copies of the books, records, or
13papers, and the inspection or appraisal of any of the Taxpayer
14or project assets.
15    (j) Take whatever actions are necessary or appropriate to
16protect the State's interest in the event of bankruptcy,
17default, foreclosure, or noncompliance with the terms and
18conditions of financial assistance or participation required
19under this Act, including the power to sell, dispose, lease, or
20rent, upon terms and conditions determined by the Director to
21be appropriate, real or personal property that the Department
22may receive as a result of these actions.
23(Source: P.A. 91-476, eff. 8-11-99.)
24    (35 ILCS 10/5-20)
25    Sec. 5-20. Application for a project to create and retain



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1new jobs.
2    (a) Any Taxpayer proposing a project located or planned to
3be located in Illinois may request consideration for
4designation of its project, by formal written letter of request
5or by formal application to the Department, in which the
6Applicant states its intent to make at least a specified level
7of investment and intends to hire or retain a specified number
8of full-time employees at a designated location in Illinois. As
9circumstances require, the Department may require a formal
10application from an Applicant and a formal letter of request
11for assistance.
12    (b) In order to qualify for Credits under this Act, an
13Applicant's project must:
14        (1) involve an investment of at least $5,000,000 in
15    capital improvements to be placed in service and to employ
16    at least 25 New Employees within the State as a direct
17    result of the project;
18        (2) involve an investment of at least an amount (to be
19    expressly specified by the Department and the Committee) in
20    capital improvements to be placed in service and will
21    employ at least an amount (to be expressly specified by the
22    Department and the Committee) of New Employees within the
23    State, provided that the Department and the Committee have
24    determined that the project will provide a substantial
25    economic benefit to the State; or
26        (3) if the applicant has 100 or fewer employees,



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1    involve an investment of at least $1,000,000 in capital
2    improvements to be placed in service and to employ at least
3    5 New Employees within the State as a direct result of the
4    project.
5    (c) After receipt of an application, the Department may
6enter into an Agreement with the Applicant if the application
7is accepted in accordance with Section 5-25 and the Agreement
8is approved by the Economic Incentive Committee established
9under Section 5-26 of this Act.
10(Source: P.A. 93-882, eff. 1-1-05.)
11    (35 ILCS 10/5-26 new)
12    Sec. 5-26. Economic Incentive Committee; creation; duties.
13An Economic Incentive Committee is created within the
14Department for the purpose of approving Agreements entered into
15under this Act. The Committee shall consist of 5 members
16appointed by the Governor with the advice and consent of the
17Senate. Each member of the Committee shall be a business owner
18or shall have expertise in economic development or academia.
19    The Committee shall approve or deny each Agreement within 5
20days after the Agreement is submitted to the Committee. Members
21shall serve without compensation, but may be reimbursed for
22their necessary expenses. If a member has a conflict of
23interest with respect to any Agreement, he or she shall recuse
24himself or herself from consideration of that Agreement. The
25Committee shall consider each Agreement submitted on or before



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1December 31, 2016 and shall be dissolved as soon after that
2date as possible.
3    (35 ILCS 10/5-45)
4    Sec. 5-45. Amount and duration of the credit.
5    (a) The Department shall determine the amount and duration
6of the credit awarded under this Act. The duration of the
7credit may not exceed 10 taxable years. The credit may be
8stated as a percentage of the Incremental Income Tax
9attributable to the applicant's project and may include a fixed
10dollar limitation. With respect to Agreements entered into or
11modified on or after the effective date of this amendatory Act
12of the 97th General Assembly, the amount and duration of the
13credit is subject to final approval by the Economic Incentive
14Committee established under Section 5-26 of this Act.
15    (b) Notwithstanding subsection (a), and except as the
16credit may be applied in a carryover year pursuant to Section
17211(4) of the Illinois Income Tax Act, the credit may be
18applied against the State income tax liability in more than 10
19taxable years but not in more than 15 taxable years for an
20eligible business that (i) qualifies under this Act and the
21Corporate Headquarters Relocation Act and has in fact
22undertaken a qualifying project within the time frame specified
23by the Department of Commerce and Economic Opportunity under
24that Act, and (ii) applies against its State income tax
25liability, during the entire 15-year period, no more than 60%



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1of the maximum credit per year that would otherwise be
2available under this Act.
3(Source: P.A. 94-793, eff. 5-19-06.)
4    (35 ILCS 10/5-50)
5    Sec. 5-50. Contents of Agreements with Applicants. The
6Department shall enter into an Agreement with an Applicant that
7is awarded a Credit under this Act. The Agreement must include
8all of the following:
9        (1) A detailed description of the project that is the
10    subject of the Agreement, including the location and amount
11    of the investment and jobs created or retained.
12        (2) The duration of the Credit and the first taxable
13    year for which the Credit may be claimed.
14        (3) The Credit amount that will be allowed for each
15    taxable year.
16        (4) A requirement that the Taxpayer shall maintain
17    operations at the project location that shall be stated as
18    a minimum number of years not to exceed 10.
19        (5) A specific method for determining the number of New
20    Employees employed during a taxable year.
21        (6) A requirement that the Taxpayer shall annually
22    report to the Department the number of New Employees, the
23    Incremental Income Tax withheld in connection with the New
24    Employees, and any other information the Director needs to
25    perform the Director's duties under this Act.



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1        (7) A requirement that the Director is authorized to
2    verify with the appropriate State agencies the amounts
3    reported under paragraph (6), and after doing so shall
4    issue a certificate to the Taxpayer stating that the
5    amounts have been verified.
6        (8) A requirement that the Taxpayer shall provide
7    written notification to the Director not more than 30 days
8    after the Taxpayer makes or receives a proposal that would
9    transfer the Taxpayer's State tax liability obligations to
10    a successor Taxpayer.
11        (9) A detailed description of the number of New
12    Employees to be hired, and the occupation and payroll of
13    the full-time jobs to be created or retained as a result of
14    the project.
15        (10) The minimum investment the business enterprise
16    will make in capital improvements, the time period for
17    placing the property in service, and the designated
18    location in Illinois for the investment.
19        (11) A requirement that the Taxpayer shall provide
20    written notification to the Director and the Committee not
21    more than 30 days after the Taxpayer determines that the
22    minimum job creation or retention, employment payroll, or
23    investment no longer is being or will be achieved or
24    maintained as set forth in the terms and conditions of the
25    Agreement.
26        (12) A provision that, if the total number of New



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1    Employees falls below a specified level, the allowance of
2    Credit shall be suspended until the number of New Employees
3    equals or exceeds the Agreement amount.
4        (13) A detailed description of the items for which the
5    costs incurred by the Taxpayer will be included in the
6    limitation on the Credit provided in Section 5-30.
7        (13.5) A provision that, if the Taxpayer never meets
8    either the investment or job creation and retention
9    requirements specified in the Agreement during the entire
10    5-year period beginning on the first day of the first
11    taxable year in which the Agreement is executed and ending
12    on the last day of the fifth taxable year after the
13    Agreement is executed, then the Agreement is automatically
14    terminated on the last day of the fifth taxable year after
15    the Agreement is executed and the Taxpayer is not entitled
16    to the award of any credits for any of that 5-year period.
17        (14) Any other performance conditions or contract
18    provisions as the Department determines are appropriate.
19    The Department shall post on its website a copy of each
20Agreement entered into under this Act on or after the effective
21date of this amendatory Act of the 97th General Assembly.
22    Any Agreement entered into on or after the effective date
23of this amendatory Act of the 97th General Assembly is subject
24to the approval of the Economic Incentive Committee established
25under Section 5-26 of this Act. Any modifications to an
26existing Agreement that take effect on or after the effective



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1date of this amendatory Act of the 97th General Assembly are
2subject to the approval of the Economic Incentive Committee
3established under Section 5-26 of this Act. The Department must
4forward any proposed Agreements or modifications to the
5Economic Incentive Committee within 15 days after the terms of
6the Agreement or modification are finalized.
7(Source: P.A. 97-2, eff. 5-6-11.)
8    Section 99. Effective date. This Act takes effect July 1,