Rep. Jack D. Franks

Filed: 3/5/2012





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2    AMENDMENT NO. ______. Amend House Bill 3934, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The Economic Development for a Growing Economy
6Tax Credit Act is amended by changing Section 5-50 as follows:
7    (35 ILCS 10/5-50)
8    Sec. 5-50. Contents of Agreements with Applicants. The
9Department shall enter into an Agreement with an Applicant that
10is awarded a Credit under this Act. The Agreement must include
11all of the following:
12        (1) A detailed description of the project that is the
13    subject of the Agreement, including the location and amount
14    of the investment and jobs created or retained.
15        (2) The duration of the Credit and the first taxable
16    year for which the Credit may be claimed.



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1        (3) The Credit amount that will be allowed for each
2    taxable year.
3        (4) A requirement that the Taxpayer shall maintain
4    operations at the project location that shall be stated as
5    a minimum number of years not to exceed 10.
6        (5) A specific method for determining the number of New
7    Employees employed during a taxable year.
8        (6) A requirement that the Taxpayer shall annually
9    report to the Department the number of New Employees, the
10    Incremental Income Tax withheld in connection with the New
11    Employees, and any other information the Director needs to
12    perform the Director's duties under this Act.
13        (7) A requirement that the Director is authorized to
14    verify with the appropriate State agencies the amounts
15    reported under paragraph (6), and after doing so shall
16    issue a certificate to the Taxpayer stating that the
17    amounts have been verified.
18        (8) A requirement that the Taxpayer shall provide
19    written notification to the Director not more than 30 days
20    after the Taxpayer makes or receives a proposal that would
21    transfer the Taxpayer's State tax liability obligations to
22    a successor Taxpayer.
23        (9) A detailed description of the number of New
24    Employees to be hired, and the occupation and payroll of
25    the full-time jobs to be created or retained as a result of
26    the project.



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1        (10) The minimum investment the business enterprise
2    will make in capital improvements, the time period for
3    placing the property in service, and the designated
4    location in Illinois for the investment.
5        (11) A requirement that the Taxpayer shall provide
6    written notification to the Director and the Committee not
7    more than 30 days after the Taxpayer determines that the
8    minimum job creation or retention, employment payroll, or
9    investment no longer is being or will be achieved or
10    maintained as set forth in the terms and conditions of the
11    Agreement.
12        (12) A provision that, if the total number of New
13    Employees falls below a specified level, the allowance of
14    Credit shall be suspended until the number of New Employees
15    equals or exceeds the Agreement amount.
16        (13) A detailed description of the items for which the
17    costs incurred by the Taxpayer will be included in the
18    limitation on the Credit provided in Section 5-30.
19        (13.5) A provision that, if the Taxpayer never meets
20    either the investment or job creation and retention
21    requirements specified in the Agreement during the entire
22    5-year period beginning on the first day of the first
23    taxable year in which the Agreement is executed and ending
24    on the last day of the fifth taxable year after the
25    Agreement is executed, then the Agreement is automatically
26    terminated on the last day of the fifth taxable year after



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1    the Agreement is executed and the Taxpayer is not entitled
2    to the award of any credits for any of that 5-year period.
3        (14) Any other performance conditions or contract
4    provisions as the Department determines are appropriate.
5    The Department shall post on its website the terms of each
6Agreement entered into under this Act on or after the effective
7date of this amendatory Act of the 97th General Assembly.
8(Source: P.A. 97-2, eff. 5-6-11.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".