98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2496

 

Introduced , by Rep. Adam Brown

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1
35 ILCS 200/18-165

    Amends the Illinois Enterprise Zone Act. Provides that a business that intends to establish a fertilizer plant at a designated location in Illinois may be designated as a high impact business. Provides that a business that intends to make a minimum investment of $500,000,000, which will be placed in service in a qualified property, and intends to create 125 full-time equivalent jobs at a designated location in Illinois may be designated as a high impact business. Amends the Property Tax Code to provide for an abatement of property taxes for property of any commercial or industrial development of at least 225 (instead of 500) acres. Effective immediately.


LRB098 10739 HLH 41084 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2496LRB098 10739 HLH 41084 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth and expansion of the
10private sector through large scale investment and development
11projects, the Department is authorized to receive and approve
12applications for the designation of "High Impact Businesses" in
13Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of
17    designation, in an enterprise zone designated pursuant to
18    this Act;
19        (3) the business intends to do one or more of the
20    following:
21            (A) the business intends to make a minimum
22        investment of $12,000,000 which will be placed in
23        service in qualified property and intends to create 500

 

 

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1        full-time equivalent jobs at a designated location in
2        Illinois, or intends to make a minimum investment of
3        $500,000,000, which will be placed in service in a
4        qualified property and intends to create 125 full-time
5        equivalent jobs at a designated location in Illinois,
6        or intends to make a minimum investment of $30,000,000
7        which will be placed in service in qualified property
8        and intends to retain 1,500 full-time retained jobs at
9        a designated location in Illinois. The business must
10        certify in writing that the investments would not be
11        placed in service in qualified property and the job
12        creation or job retention would not occur without the
13        tax credits and exemptions set forth in subsection (b)
14        of this Section. The terms "placed in service" and
15        "qualified property" have the same meanings as
16        described in subsection (h) of Section 201 of the
17        Illinois Income Tax Act; or
18            (B) the business intends to establish a new
19        electric generating facility at a designated location
20        in Illinois. "New electric generating facility", for
21        purposes of this Section, means a newly-constructed
22        electric generation plant or a newly-constructed
23        generation capacity expansion at an existing electric
24        generation plant, including the transmission lines and
25        associated equipment that transfers electricity from
26        points of supply to points of delivery, and for which

 

 

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1        such new foundation construction commenced not sooner
2        than July 1, 2001. Such facility shall be designed to
3        provide baseload electric generation and shall operate
4        on a continuous basis throughout the year; and (i)
5        shall have an aggregate rated generating capacity of at
6        least 1,000 megawatts for all new units at one site if
7        it uses natural gas as its primary fuel and foundation
8        construction of the facility is commenced on or before
9        December 31, 2004, or shall have an aggregate rated
10        generating capacity of at least 400 megawatts for all
11        new units at one site if it uses coal or gases derived
12        from coal as its primary fuel and shall support the
13        creation of at least 150 new Illinois coal mining jobs,
14        or (ii) shall be funded through a federal Department of
15        Energy grant before December 31, 2010 and shall support
16        the creation of Illinois coal-mining jobs, or (iii)
17        shall use coal gasification or integrated
18        gasification-combined cycle units that generate
19        electricity or chemicals, or both, and shall support
20        the creation of Illinois coal-mining jobs. The
21        business must certify in writing that the investments
22        necessary to establish a new electric generating
23        facility would not be placed in service and the job
24        creation in the case of a coal-fueled plant would not
25        occur without the tax credits and exemptions set forth
26        in subsection (b-5) of this Section. The term "placed

 

 

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1        in service" has the same meaning as described in
2        subsection (h) of Section 201 of the Illinois Income
3        Tax Act; or
4            (B-5) the business intends to establish a new
5        gasification facility at a designated location in
6        Illinois. As used in this Section, "new gasification
7        facility" means a newly constructed coal gasification
8        facility that generates chemical feedstocks or
9        transportation fuels derived from coal (which may
10        include, but are not limited to, methane, methanol, and
11        nitrogen fertilizer), that supports the creation or
12        retention of Illinois coal-mining jobs, and that
13        qualifies for financial assistance from the Department
14        before December 31, 2010. A new gasification facility
15        does not include a pilot project located within
16        Jefferson County or within a county adjacent to
17        Jefferson County for synthetic natural gas from coal;
18        or
19            (C) the business intends to establish production
20        operations at a new coal mine, re-establish production
21        operations at a closed coal mine, or expand production
22        at an existing coal mine at a designated location in
23        Illinois not sooner than July 1, 2001; provided that
24        the production operations result in the creation of 150
25        new Illinois coal mining jobs as described in
26        subdivision (a)(3)(B) of this Section, and further

 

 

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1        provided that the coal extracted from such mine is
2        utilized as the predominant source for a new electric
3        generating facility. The business must certify in
4        writing that the investments necessary to establish a
5        new, expanded, or reopened coal mine would not be
6        placed in service and the job creation would not occur
7        without the tax credits and exemptions set forth in
8        subsection (b-5) of this Section. The term "placed in
9        service" has the same meaning as described in
10        subsection (h) of Section 201 of the Illinois Income
11        Tax Act; or
12            (D) the business intends to construct new
13        transmission facilities or upgrade existing
14        transmission facilities at designated locations in
15        Illinois, for which construction commenced not sooner
16        than July 1, 2001. For the purposes of this Section,
17        "transmission facilities" means transmission lines
18        with a voltage rating of 115 kilovolts or above,
19        including associated equipment, that transfer
20        electricity from points of supply to points of delivery
21        and that transmit a majority of the electricity
22        generated by a new electric generating facility
23        designated as a High Impact Business in accordance with
24        this Section. The business must certify in writing that
25        the investments necessary to construct new
26        transmission facilities or upgrade existing

 

 

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1        transmission facilities would not be placed in service
2        without the tax credits and exemptions set forth in
3        subsection (b-5) of this Section. The term "placed in
4        service" has the same meaning as described in
5        subsection (h) of Section 201 of the Illinois Income
6        Tax Act; or
7            (E) the business intends to establish a new wind
8        power facility at a designated location in Illinois.
9        For purposes of this Section, "new wind power facility"
10        means a newly constructed electric generation
11        facility, or a newly constructed expansion of an
12        existing electric generation facility, placed in
13        service on or after July 1, 2009, that generates
14        electricity using wind energy devices, and such
15        facility shall be deemed to include all associated
16        transmission lines, substations, and other equipment
17        related to the generation of electricity from wind
18        energy devices. For purposes of this Section, "wind
19        energy device" means any device, with a nameplate
20        capacity of at least 0.5 megawatts, that is used in the
21        process of converting kinetic energy from the wind to
22        generate electricity; or and
23            (F) the business intends to establish a fertilizer
24        plant at a designated location in Illinois; for the
25        purposes of this Section, "fertilizer plant" means a
26        newly constructed or upgraded plant facilitating gas

 

 

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1        used in the production of anhydrous ammonia and
2        downstream nitrogen fertilizer products for resale;
3        and
4        (4) no later than 90 days after an application is
5    submitted, the Department shall notify the applicant of the
6    Department's determination of the qualification of the
7    proposed High Impact Business under this Section.
8    (b) Businesses designated as High Impact Businesses
9pursuant to subdivision (a)(3)(A) of this Section shall qualify
10for the credits and exemptions described in the following Acts:
11Section 9-222 and Section 9-222.1A of the Public Utilities Act,
12subsection (h) of Section 201 of the Illinois Income Tax Act,
13and Section 1d of the Retailers' Occupation Tax Act; provided
14that these credits and exemptions described in these Acts shall
15not be authorized until the minimum investments set forth in
16subdivision (a)(3)(A) of this Section have been placed in
17service in qualified properties and, in the case of the
18exemptions described in the Public Utilities Act and Section 1d
19of the Retailers' Occupation Tax Act, the minimum full-time
20equivalent jobs or full-time retained jobs set forth in
21subdivision (a)(3)(A) of this Section have been created or
22retained. Businesses designated as High Impact Businesses
23under this Section shall also qualify for the exemption
24described in Section 5l of the Retailers' Occupation Tax Act.
25The credit provided in subsection (h) of Section 201 of the
26Illinois Income Tax Act shall be applicable to investments in

 

 

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1qualified property as set forth in subdivision (a)(3)(A) of
2this Section.
3    (b-5) Businesses designated as High Impact Businesses
4pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
5and (a)(3)(D) of this Section shall qualify for the credits and
6exemptions described in the following Acts: Section 51 of the
7Retailers' Occupation Tax Act, Section 9-222 and Section
89-222.1A of the Public Utilities Act, and subsection (h) of
9Section 201 of the Illinois Income Tax Act; however, the
10credits and exemptions authorized under Section 9-222 and
11Section 9-222.1A of the Public Utilities Act, and subsection
12(h) of Section 201 of the Illinois Income Tax Act shall not be
13authorized until the new electric generating facility, the new
14gasification facility, the new transmission facility, or the
15new, expanded, or reopened coal mine is operational, except
16that a new electric generating facility whose primary fuel
17source is natural gas is eligible only for the exemption under
18Section 5l of the Retailers' Occupation Tax Act.
19    (b-6) Businesses designated as High Impact Businesses
20pursuant to subdivision (a)(3)(E) of this Section shall qualify
21for the exemptions described in Section 5l of the Retailers'
22Occupation Tax Act; any business so designated as a High Impact
23Business being, for purposes of this Section, a "Wind Energy
24Business".
25    (c) High Impact Businesses located in federally designated
26foreign trade zones or sub-zones are also eligible for

 

 

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1additional credits, exemptions and deductions as described in
2the following Acts: Section 9-221 and Section 9-222.1 of the
3Public Utilities Act; and subsection (g) of Section 201, and
4Section 203 of the Illinois Income Tax Act.
5    (d) Except for businesses contemplated under subdivision
6(a)(3)(E) of this Section, existing Illinois businesses which
7apply for designation as a High Impact Business must provide
8the Department with the prospective plan for which 1,500
9full-time retained jobs would be eliminated in the event that
10the business is not designated.
11    (e) Except for new wind power facilities contemplated under
12subdivision (a)(3)(E) of this Section, new proposed facilities
13which apply for designation as High Impact Business must
14provide the Department with proof of alternative non-Illinois
15sites which would receive the proposed investment and job
16creation in the event that the business is not designated as a
17High Impact Business.
18    (f) Except for businesses contemplated under subdivision
19(a)(3)(E) of this Section, in the event that a business is
20designated a High Impact Business and it is later determined
21after reasonable notice and an opportunity for a hearing as
22provided under the Illinois Administrative Procedure Act, that
23the business would have placed in service in qualified property
24the investments and created or retained the requisite number of
25jobs without the benefits of the High Impact Business
26designation, the Department shall be required to immediately

 

 

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1revoke the designation and notify the Director of the
2Department of Revenue who shall begin proceedings to recover
3all wrongfully exempted State taxes with interest. The business
4shall also be ineligible for all State funded Department
5programs for a period of 10 years.
6    (g) The Department shall revoke a High Impact Business
7designation if the participating business fails to comply with
8the terms and conditions of the designation. However, the
9penalties for new wind power facilities or Wind Energy
10Businesses for failure to comply with any of the terms or
11conditions of the Illinois Prevailing Wage Act shall be only
12those penalties identified in the Illinois Prevailing Wage Act,
13and the Department shall not revoke a High Impact Business
14designation as a result of the failure to comply with any of
15the terms or conditions of the Illinois Prevailing Wage Act in
16relation to a new wind power facility or a Wind Energy
17Business.
18    (h) Prior to designating a business, the Department shall
19provide the members of the General Assembly and Commission on
20Government Forecasting and Accountability with a report
21setting forth the terms and conditions of the designation and
22guarantees that have been received by the Department in
23relation to the proposed business being designated.
24(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
 
25    Section 10. The Property Tax Code is amended by changing

 

 

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1Section 18-165 as follows:
 
2    (35 ILCS 200/18-165)
3    Sec. 18-165. Abatement of taxes.
4    (a) Any taxing district, upon a majority vote of its
5governing authority, may, after the determination of the
6assessed valuation of its property, order the clerk of that
7county to abate any portion of its taxes on the following types
8of property:
9        (1) Commercial and industrial.
10            (A) The property of any commercial or industrial
11        firm, including but not limited to the property of (i)
12        any firm that is used for collecting, separating,
13        storing, or processing recyclable materials, locating
14        within the taxing district during the immediately
15        preceding year from another state, territory, or
16        country, or having been newly created within this State
17        during the immediately preceding year, or expanding an
18        existing facility, or (ii) any firm that is used for
19        the generation and transmission of electricity
20        locating within the taxing district during the
21        immediately preceding year or expanding its presence
22        within the taxing district during the immediately
23        preceding year by construction of a new electric
24        generating facility that uses natural gas as its fuel,
25        or any firm that is used for production operations at a

 

 

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1        new, expanded, or reopened coal mine within the taxing
2        district, that has been certified as a High Impact
3        Business by the Illinois Department of Commerce and
4        Economic Opportunity. The property of any firm used for
5        the generation and transmission of electricity shall
6        include all property of the firm used for transmission
7        facilities as defined in Section 5.5 of the Illinois
8        Enterprise Zone Act. The abatement shall not exceed a
9        period of 10 years and the aggregate amount of abated
10        taxes for all taxing districts combined shall not
11        exceed $4,000,000.
12            (A-5) Any property in the taxing district of a new
13        electric generating facility, as defined in Section
14        605-332 of the Department of Commerce and Economic
15        Opportunity Law of the Civil Administrative Code of
16        Illinois. The abatement shall not exceed a period of 10
17        years. The abatement shall be subject to the following
18        limitations:
19                (i) if the equalized assessed valuation of the
20            new electric generating facility is equal to or
21            greater than $25,000,000 but less than
22            $50,000,000, then the abatement may not exceed (i)
23            over the entire term of the abatement, 5% of the
24            taxing district's aggregate taxes from the new
25            electric generating facility and (ii) in any one
26            year of abatement, 20% of the taxing district's

 

 

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1            taxes from the new electric generating facility;
2                (ii) if the equalized assessed valuation of
3            the new electric generating facility is equal to or
4            greater than $50,000,000 but less than
5            $75,000,000, then the abatement may not exceed (i)
6            over the entire term of the abatement, 10% of the
7            taxing district's aggregate taxes from the new
8            electric generating facility and (ii) in any one
9            year of abatement, 35% of the taxing district's
10            taxes from the new electric generating facility;
11                (iii) if the equalized assessed valuation of
12            the new electric generating facility is equal to or
13            greater than $75,000,000 but less than
14            $100,000,000, then the abatement may not exceed
15            (i) over the entire term of the abatement, 20% of
16            the taxing district's aggregate taxes from the new
17            electric generating facility and (ii) in any one
18            year of abatement, 50% of the taxing district's
19            taxes from the new electric generating facility;
20                (iv) if the equalized assessed valuation of
21            the new electric generating facility is equal to or
22            greater than $100,000,000 but less than
23            $125,000,000, then the abatement may not exceed
24            (i) over the entire term of the abatement, 30% of
25            the taxing district's aggregate taxes from the new
26            electric generating facility and (ii) in any one

 

 

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1            year of abatement, 60% of the taxing district's
2            taxes from the new electric generating facility;
3                (v) if the equalized assessed valuation of the
4            new electric generating facility is equal to or
5            greater than $125,000,000 but less than
6            $150,000,000, then the abatement may not exceed
7            (i) over the entire term of the abatement, 40% of
8            the taxing district's aggregate taxes from the new
9            electric generating facility and (ii) in any one
10            year of abatement, 60% of the taxing district's
11            taxes from the new electric generating facility;
12                (vi) if the equalized assessed valuation of
13            the new electric generating facility is equal to or
14            greater than $150,000,000, then the abatement may
15            not exceed (i) over the entire term of the
16            abatement, 50% of the taxing district's aggregate
17            taxes from the new electric generating facility
18            and (ii) in any one year of abatement, 60% of the
19            taxing district's taxes from the new electric
20            generating facility.
21            The abatement is not effective unless the owner of
22        the new electric generating facility agrees to repay to
23        the taxing district all amounts previously abated,
24        together with interest computed at the rate and in the
25        manner provided for delinquent taxes, in the event that
26        the owner of the new electric generating facility

 

 

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1        closes the new electric generating facility before the
2        expiration of the entire term of the abatement.
3            The authorization of taxing districts to abate
4        taxes under this subdivision (a)(1)(A-5) expires on
5        January 1, 2010.
6            (B) The property of any commercial or industrial
7        development of at least 225 500 acres having been
8        created within the taxing district. The abatement
9        shall not exceed a period of 20 years and the aggregate
10        amount of abated taxes for all taxing districts
11        combined shall not exceed $12,000,000.
12            (C) The property of any commercial or industrial
13        firm currently located in the taxing district that
14        expands a facility or its number of employees. The
15        abatement shall not exceed a period of 10 years and the
16        aggregate amount of abated taxes for all taxing
17        districts combined shall not exceed $4,000,000. The
18        abatement period may be renewed at the option of the
19        taxing districts.
20        (2) Horse racing. Any property in the taxing district
21    which is used for the racing of horses and upon which
22    capital improvements consisting of expansion, improvement
23    or replacement of existing facilities have been made since
24    July 1, 1987. The combined abatements for such property
25    from all taxing districts in any county shall not exceed
26    $5,000,000 annually and shall not exceed a period of 10

 

 

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1    years.
2        (3) Auto racing. Any property designed exclusively for
3    the racing of motor vehicles. Such abatement shall not
4    exceed a period of 10 years.
5        (4) Academic or research institute. The property of any
6    academic or research institute in the taxing district that
7    (i) is an exempt organization under paragraph (3) of
8    Section 501(c) of the Internal Revenue Code, (ii) operates
9    for the benefit of the public by actually and exclusively
10    performing scientific research and making the results of
11    the research available to the interested public on a
12    non-discriminatory basis, and (iii) employs more than 100
13    employees. An abatement granted under this paragraph shall
14    be for at least 15 years and the aggregate amount of abated
15    taxes for all taxing districts combined shall not exceed
16    $5,000,000.
17        (5) Housing for older persons. Any property in the
18    taxing district that is devoted exclusively to affordable
19    housing for older households. For purposes of this
20    paragraph, "older households" means those households (i)
21    living in housing provided under any State or federal
22    program that the Department of Human Rights determines is
23    specifically designed and operated to assist elderly
24    persons and is solely occupied by persons 55 years of age
25    or older and (ii) whose annual income does not exceed 80%
26    of the area gross median income, adjusted for family size,

 

 

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1    as such gross income and median income are determined from
2    time to time by the United States Department of Housing and
3    Urban Development. The abatement shall not exceed a period
4    of 15 years, and the aggregate amount of abated taxes for
5    all taxing districts shall not exceed $3,000,000.
6        (6) Historical society. For assessment years 1998
7    through 2018, the property of an historical society
8    qualifying as an exempt organization under Section
9    501(c)(3) of the federal Internal Revenue Code.
10        (7) Recreational facilities. Any property in the
11    taxing district (i) that is used for a municipal airport,
12    (ii) that is subject to a leasehold assessment under
13    Section 9-195 of this Code and (iii) which is sublet from a
14    park district that is leasing the property from a
15    municipality, but only if the property is used exclusively
16    for recreational facilities or for parking lots used
17    exclusively for those facilities. The abatement shall not
18    exceed a period of 10 years.
19        (8) Relocated corporate headquarters. If approval
20    occurs within 5 years after the effective date of this
21    amendatory Act of the 92nd General Assembly, any property
22    or a portion of any property in a taxing district that is
23    used by an eligible business for a corporate headquarters
24    as defined in the Corporate Headquarters Relocation Act.
25    Instead of an abatement under this paragraph (8), a taxing
26    district may enter into an agreement with an eligible

 

 

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1    business to make annual payments to that eligible business
2    in an amount not to exceed the property taxes paid directly
3    or indirectly by that eligible business to the taxing
4    district and any other taxing districts for premises
5    occupied pursuant to a written lease and may make those
6    payments without the need for an annual appropriation. No
7    school district, however, may enter into an agreement with,
8    or abate taxes for, an eligible business unless the
9    municipality in which the corporate headquarters is
10    located agrees to provide funding to the school district in
11    an amount equal to the amount abated or paid by the school
12    district as provided in this paragraph (8). Any abatement
13    ordered or agreement entered into under this paragraph (8)
14    may be effective for the entire term specified by the
15    taxing district, except the term of the abatement or annual
16    payments may not exceed 20 years.
17        (9) United States Military Public/Private Residential
18    Developments. Each building, structure, or other
19    improvement designed, financed, constructed, renovated,
20    managed, operated, or maintained after January 1, 2006
21    under a "PPV Lease", as set forth under Division 14 of
22    Article 10, and any such PPV Lease.
23        (10) Property located in a business corridor that
24    qualifies for an abatement under Section 18-184.10.
25    (b) Upon a majority vote of its governing authority, any
26municipality may, after the determination of the assessed

 

 

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1valuation of its property, order the county clerk to abate any
2portion of its taxes on any property that is located within the
3corporate limits of the municipality in accordance with Section
48-3-18 of the Illinois Municipal Code.
5(Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12;
697-636, eff. 6-1-12.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.