Rep. Jim Sacia

Filed: 3/21/2012

 

 


 

 


 
09700HB4941ham001LRB097 18482 HLH 66590 a

1
AMENDMENT TO HOUSE BILL 4941

2    AMENDMENT NO. ______. Amend House Bill 4941 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 Section 5-15 as follows:
 
6    (35 ILCS 10/5-15)
7    (Text of Section before amendment by P.A. 97-636)
8    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
9forth in this Act, a Taxpayer is entitled to a Credit against
10or, as described in subsection (g) of this Section, a payment
11towards taxes imposed pursuant to subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act that may be imposed
13on the Taxpayer for a taxable year beginning on or after
14January 1, 1999, if the Taxpayer is awarded a Credit by the
15Department under this Act for that taxable year.
16    (a) The Department shall make Credit awards under this Act

 

 

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

 

 

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1    television infrastructure design or manufacturing, or
2    wireless telecommunication or computing terminal device
3    design or manufacturing for use on public networks and (ii)
4    meets the following criteria:
5            (A) the Taxpayer (i) had an Illinois net loss or an
6        Illinois net loss deduction under Section 207 of the
7        Illinois Income Tax Act for the taxable year in which
8        the Credit is awarded, (ii) employed a minimum of 1,000
9        full-time employees in this State during the taxable
10        year in which the Credit is awarded, (iii) has an
11        Agreement under this Act on December 14, 2009 (the
12        effective date of Public Act 96-834), and (iv) is in
13        compliance with all provisions of that Agreement;
14            (B) the Taxpayer (i) had an Illinois net loss or an
15        Illinois net loss deduction under Section 207 of the
16        Illinois Income Tax Act for the taxable year in which
17        the Credit is awarded, (ii) employed a minimum of 1,000
18        full-time employees in this State during the taxable
19        year in which the Credit is awarded, and (iii) has
20        applied for an Agreement within 365 days after December
21        14, 2009 (the effective date of Public Act 96-834);
22            (C) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during calendar
25        year 2008, (ii) has applied for an Agreement within 150
26        days after the effective date of this amendatory Act of

 

 

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1        the 96th General Assembly, (iii) creates at least 400
2        new jobs in Illinois, (iv) retains at least 2,000 jobs
3        in Illinois that would have been at risk of relocation
4        out of Illinois over a 10-year period, and (v) makes a
5        capital investment of at least $75,000,000;
6            (D) the Taxpayer (i) had an Illinois net operating
7        loss carryforward under Section 207 of the Illinois
8        Income Tax Act in a taxable year ending during calendar
9        year 2009, (ii) has applied for an Agreement within 150
10        days after the effective date of this amendatory Act of
11        the 96th General Assembly, (iii) creates at least 150
12        new jobs, (iv) retains at least 1,000 jobs in Illinois
13        that would have been at risk of relocation out of
14        Illinois over a 10-year period, and (v) makes a capital
15        investment of at least $57,000,000; or
16            (E) the Taxpayer (i) employed at least 2,500
17        full-time employees in the State during the year in
18        which the Credit is awarded, (ii) commits to make at
19        least $500,000,000 in combined capital improvements
20        and project costs under the Agreement, (iii) applies
21        for an Agreement between January 1, 2011 and June 30,
22        2011, (iv) executes an Agreement for the Credit during
23        calendar year 2011, and (v) was incorporated no more
24        than 5 years before the filing of an application for an
25        Agreement.
26        (1.5) The election under this subsection (f) may also

 

 

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1    be made by a Taxpayer for any Credit awarded pursuant to an
2    agreement that was executed between January 1, 2011 and
3    June 30, 2011, if the Taxpayer (i) is primarily engaged in
4    the manufacture of inner tubes or tires, or both, from
5    natural and synthetic rubber, (ii) employs a minimum of
6    2,400 full-time employees in Illinois at the time of
7    application, (iii) creates at least 350 full-time jobs and
8    retains at least 250 full-time jobs in Illinois that would
9    have been at risk of being created or retained outside of
10    Illinois, and (iv) makes a capital investment of at least
11    $200,000,000 at the project location.
12        (1.8) The election under this subsection (f) may also
13    be made by a Taxpayer that is primarily engaged in the
14    manufacturing of food products if the Taxpayer: (i) employs
15    a minimum of 300 full-time employees in Illinois at the
16    time of application; (ii) intends to create at least 5
17    additional jobs in Illinois after the approval of the
18    Taxpayer's application; (iii) pledges to make a capital
19    investment of at least $4,000,000 at either the project
20    location or elsewhere in Illinois; (iv) states, as a part
21    of its application, that, as a consequence of tax laws in
22    jurisdictions located outside of Illinois, the election is
23    necessary for the Taxpayer's maximum enjoyment of net
24    benefits under this Act; and (v) states, as a part of its
25    application, that it has received an offer of tax
26    incentives to relocate the facility to another state. The

 

 

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1    election under this item (1.8) must be made between
2    September 1, 2012 and December 31, 2012.
3        (2) An election under this subsection shall allow the
4    credit to be taken against payments otherwise due under
5    Section 704A of the Illinois Income Tax Act during the
6    first calendar year beginning after the end of the taxable
7    year in which the credit is awarded under this Act.
8        (3) The election shall be made in the form and manner
9    required by the Illinois Department of Revenue and, once
10    made, shall be irrevocable.
11        (4) If a Taxpayer who meets the requirements of
12    subparagraph (A) of paragraph (1) of this subsection (f)
13    elects to claim the Credit against its withholdings as
14    provided in this subsection (f), then, on and after the
15    date of the election, the terms of the Agreement between
16    the Taxpayer and the Department may not be further amended
17    during the term of the Agreement.
18    (g) A pass-through entity that has been awarded a credit
19under this Act, its shareholders, or its partners may treat
20some or all of the credit awarded pursuant to this Act as a tax
21payment for purposes of the Illinois Income Tax Act. The term
22"tax payment" means a payment as described in Article 6 or
23Article 8 of the Illinois Income Tax Act or a composite payment
24made by a pass-through entity on behalf of any of its
25shareholders or partners to satisfy such shareholders' or
26partners' taxes imposed pursuant to subsections (a) and (b) of

 

 

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1Section 201 of the Illinois Income Tax Act. In no event shall
2the amount of the award credited pursuant to this Act exceed
3the Illinois income tax liability of the pass-through entity or
4its shareholders or partners for the taxable year.
5(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
696-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
73-4-11; 97-2, eff. 5-6-11.)
 
8    (Text of Section after amendment by P.A. 97-636)
9    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
10forth in this Act, a Taxpayer is entitled to a Credit against
11or, as described in subsection (g) of this Section, a payment
12towards taxes imposed pursuant to subsections (a) and (b) of
13Section 201 of the Illinois Income Tax Act that may be imposed
14on the Taxpayer for a taxable year beginning on or after
15January 1, 1999, if the Taxpayer is awarded a Credit by the
16Department under this Act for that taxable year.
17    (a) The Department shall make Credit awards under this Act
18to foster job creation and retention in Illinois.
19    (b) A person that proposes a project to create new jobs in
20Illinois must enter into an Agreement with the Department for
21the Credit under this Act.
22    (c) The Credit shall be claimed for the taxable years
23specified in the Agreement.
24    (d) The Credit shall not exceed the Incremental Income Tax
25attributable to the project that is the subject of the

 

 

09700HB4941ham001- 8 -LRB097 18482 HLH 66590 a

1Agreement.
2    (e) Nothing herein shall prohibit a Tax Credit Award to an
3Applicant that uses a PEO if all other award criteria are
4satisfied.
5    (f) In lieu of the Credit allowed under this Act against
6the taxes imposed pursuant to subsections (a) and (b) of
7Section 201 of the Illinois Income Tax Act for any taxable year
8ending on or after December 31, 2009, the Taxpayer may elect to
9claim the Credit against its obligation to pay over withholding
10under Section 704A of the Illinois Income Tax Act.
11        (1) The election under this subsection (f) may be made
12    only by a Taxpayer that (i) is primarily engaged in one of
13    the following business activities: water purification and
14    treatment, motor vehicle metal stamping, automobile
15    manufacturing, automobile and light duty motor vehicle
16    manufacturing, motor vehicle manufacturing, light truck
17    and utility vehicle manufacturing, heavy duty truck
18    manufacturing, motor vehicle body manufacturing, cable
19    television infrastructure design or manufacturing, or
20    wireless telecommunication or computing terminal device
21    design or manufacturing for use on public networks and (ii)
22    meets the following criteria:
23            (A) the Taxpayer (i) had an Illinois net loss or an
24        Illinois net loss deduction under Section 207 of the
25        Illinois Income Tax Act for the taxable year in which
26        the Credit is awarded, (ii) employed a minimum of 1,000

 

 

09700HB4941ham001- 9 -LRB097 18482 HLH 66590 a

1        full-time employees in this State during the taxable
2        year in which the Credit is awarded, (iii) has an
3        Agreement under this Act on December 14, 2009 (the
4        effective date of Public Act 96-834), and (iv) is in
5        compliance with all provisions of that Agreement;
6            (B) the Taxpayer (i) had an Illinois net loss or an
7        Illinois net loss deduction under Section 207 of the
8        Illinois Income Tax Act for the taxable year in which
9        the Credit is awarded, (ii) employed a minimum of 1,000
10        full-time employees in this State during the taxable
11        year in which the Credit is awarded, and (iii) has
12        applied for an Agreement within 365 days after December
13        14, 2009 (the effective date of Public Act 96-834);
14            (C) the Taxpayer (i) had an Illinois net operating
15        loss carryforward under Section 207 of the Illinois
16        Income Tax Act in a taxable year ending during calendar
17        year 2008, (ii) has applied for an Agreement within 150
18        days after the effective date of this amendatory Act of
19        the 96th General Assembly, (iii) creates at least 400
20        new jobs in Illinois, (iv) retains at least 2,000 jobs
21        in Illinois that would have been at risk of relocation
22        out of Illinois over a 10-year period, and (v) makes a
23        capital investment of at least $75,000,000;
24            (D) the Taxpayer (i) had an Illinois net operating
25        loss carryforward under Section 207 of the Illinois
26        Income Tax Act in a taxable year ending during calendar

 

 

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1        year 2009, (ii) has applied for an Agreement within 150
2        days after the effective date of this amendatory Act of
3        the 96th General Assembly, (iii) creates at least 150
4        new jobs, (iv) retains at least 1,000 jobs in Illinois
5        that would have been at risk of relocation out of
6        Illinois over a 10-year period, and (v) makes a capital
7        investment of at least $57,000,000; or
8            (E) the Taxpayer (i) employed at least 2,500
9        full-time employees in the State during the year in
10        which the Credit is awarded, (ii) commits to make at
11        least $500,000,000 in combined capital improvements
12        and project costs under the Agreement, (iii) applies
13        for an Agreement between January 1, 2011 and June 30,
14        2011, (iv) executes an Agreement for the Credit during
15        calendar year 2011, and (v) was incorporated no more
16        than 5 years before the filing of an application for an
17        Agreement.
18        (1.5) The election under this subsection (f) may also
19    be made by a Taxpayer for any Credit awarded pursuant to an
20    agreement that was executed between January 1, 2011 and
21    June 30, 2011, if the Taxpayer (i) is primarily engaged in
22    the manufacture of inner tubes or tires, or both, from
23    natural and synthetic rubber, (ii) employs a minimum of
24    2,400 full-time employees in Illinois at the time of
25    application, (iii) creates at least 350 full-time jobs and
26    retains at least 250 full-time jobs in Illinois that would

 

 

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1    have been at risk of being created or retained outside of
2    Illinois, and (iv) makes a capital investment of at least
3    $200,000,000 at the project location.
4        (1.6) The election under this subsection (f) may also
5    be made by a Taxpayer for any Credit awarded pursuant to an
6    agreement that was executed within 150 days after the
7    effective date of this amendatory Act of the 97th General
8    Assembly, if the Taxpayer (i) is primarily engaged in the
9    operation of a discount department store, (ii) maintains
10    its corporate headquarters in Illinois, (iii) employs a
11    minimum of 4,250 full-time employees at its corporate
12    headquarters in Illinois at the time of application, (iv)
13    retains at least 4,250 full-time jobs in Illinois that
14    would have been at risk of being relocated outside of
15    Illinois, (v) had a minimum of $40,000,000,000 in total
16    revenue in 2010, and (vi) makes a capital investment of at
17    least $300,000,000 at the project location.
18        (1.7) Notwithstanding any other provision of law, the
19    election under this subsection (f) may also be made by a
20    Taxpayer for any Credit awarded pursuant to an agreement
21    that was executed or applied for on or after July 1, 2011
22    and on or before March 31, 2012, if the Taxpayer is
23    primarily engaged in the manufacture of original and
24    aftermarket filtration parts and products for automobiles,
25    motor vehicles, light duty motor vehicles, light trucks and
26    utility vehicles, and heavy duty trucks, (ii) employs a

 

 

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1    minimum of 1,000 full-time employees in Illinois at the
2    time of application, (iii) creates at least 250 full-time
3    jobs in Illinois, (iv) relocates its corporate
4    headquarters to Illinois from another state, and (v) makes
5    a capital investment of at least $4,000,000 at the project
6    location.
7        (1.8) The election under this subsection (f) may also
8    be made by a Taxpayer that is primarily engaged in the
9    manufacturing of food products if the Taxpayer: (i) employs
10    a minimum of 300 full-time employees in Illinois at the
11    time of application; (ii) intends to create at least 5
12    additional jobs in Illinois after the approval of the
13    Taxpayer's application; (iii) pledges to make a capital
14    investment of at least $4,000,000 at either the project
15    location or elsewhere in Illinois; (iv) states, as a part
16    of its application, that, as a consequence of tax laws in
17    jurisdictions located outside of Illinois, the election is
18    necessary for the Taxpayer's maximum enjoyment of net
19    benefits under this Act; and (v) states, as a part of its
20    application, that it has received an offer of tax
21    incentives to relocate the facility to another state. The
22    election under this item (1.8) must be made between
23    September 1, 2012 and December 31, 2012.
24        (2) An election under this subsection shall allow the
25    credit to be taken against payments otherwise due under
26    Section 704A of the Illinois Income Tax Act during the

 

 

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1    first calendar year beginning after the end of the taxable
2    year in which the credit is awarded under this Act.
3        (3) The election shall be made in the form and manner
4    required by the Illinois Department of Revenue and, once
5    made, shall be irrevocable.
6        (4) If a Taxpayer who meets the requirements of
7    subparagraph (A) of paragraph (1) of this subsection (f)
8    elects to claim the Credit against its withholdings as
9    provided in this subsection (f), then, on and after the
10    date of the election, the terms of the Agreement between
11    the Taxpayer and the Department may not be further amended
12    during the term of the Agreement.
13    (g) A pass-through entity that has been awarded a credit
14under this Act, its shareholders, or its partners may treat
15some or all of the credit awarded pursuant to this Act as a tax
16payment for purposes of the Illinois Income Tax Act. The term
17"tax payment" means a payment as described in Article 6 or
18Article 8 of the Illinois Income Tax Act or a composite payment
19made by a pass-through entity on behalf of any of its
20shareholders or partners to satisfy such shareholders' or
21partners' taxes imposed pursuant to subsections (a) and (b) of
22Section 201 of the Illinois Income Tax Act. In no event shall
23the amount of the award credited pursuant to this Act exceed
24the Illinois income tax liability of the pass-through entity or
25its shareholders or partners for the taxable year.
26(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;

 

 

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196-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
23-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
3    Section 95. No acceleration or delay. Where this Act makes
4changes in a statute that is represented in this Act by text
5that is not yet or no longer in effect (for example, a Section
6represented by multiple versions), the use of that text does
7not accelerate or delay the taking effect of (i) the changes
8made by this Act or (ii) provisions derived from any other
9Public Act.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".