99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2184

 

Introduced 10/20/2015, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 10/5-15
35 ILCS 10/5-55

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall not enter into any new Agreements under the Act, nor shall it issue any certificates of verification under the Act, in any State fiscal year if an Act containing appropriations for the Department of Commerce and Economic Opportunity for that fiscal year has not become law. Removes a provision from the Act providing that failure to submit a copy of the certificate of verification with the taxpayer's tax return shall not invalidate a claim for a credit. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2184LRB099 14566 HLH 38692 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Sections 5-15 and 5-55 as
6follows:
 
7    (35 ILCS 10/5-15)
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
17to foster job creation and retention in Illinois.
18    (b) A person that proposes a project to create new jobs in
19Illinois must enter into an Agreement with the Department for
20the Credit under this Act.
21    (c) The Credit shall be claimed for the taxable years
22specified in the Agreement.
23    (d) The Credit shall not exceed the Incremental Income Tax

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    utility vehicles, and heavy duty trucks, (ii) employs a
2    minimum of 1,000 full-time employees in Illinois at the
3    time of application, (iii) creates at least 250 full-time
4    jobs in Illinois, (iv) relocates its corporate
5    headquarters to Illinois from another state, and (v) makes
6    a capital investment of at least $4,000,000 at the project
7    location.
8        (2) An election under this subsection shall allow the
9    credit to be taken against payments otherwise due under
10    Section 704A of the Illinois Income Tax Act during the
11    first calendar year beginning after the end of the taxable
12    year in which the credit is awarded under this Act.
13        (3) The election shall be made in the form and manner
14    required by the Illinois Department of Revenue and, once
15    made, shall be irrevocable.
16        (4) If a Taxpayer who meets the requirements of
17    subparagraph (A) of paragraph (1) of this subsection (f)
18    elects to claim the Credit against its withholdings as
19    provided in this subsection (f), then, on and after the
20    date of the election, the terms of the Agreement between
21    the Taxpayer and the Department may not be further amended
22    during the term of the Agreement.
23    (g) A pass-through entity that has been awarded a credit
24under this Act, its shareholders, or its partners may treat
25some or all of the credit awarded pursuant to this Act as a tax
26payment for purposes of the Illinois Income Tax Act. The term

 

 

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1"tax payment" means a payment as described in Article 6 or
2Article 8 of the Illinois Income Tax Act or a composite payment
3made by a pass-through entity on behalf of any of its
4shareholders or partners to satisfy such shareholders' or
5partners' taxes imposed pursuant to subsections (a) and (b) of
6Section 201 of the Illinois Income Tax Act. In no event shall
7the amount of the award credited pursuant to this Act exceed
8the Illinois income tax liability of the pass-through entity or
9its shareholders or partners for the taxable year.
10    (h) Notwithstanding any other provision of law, the
11Department shall not enter into any new Agreements under this
12Act, nor shall it issue any certificates of verification under
13this Act, in any State fiscal year if "An Act making
14appropriations" containing appropriations for the ordinary and
15contingent expenses of the Department for that fiscal year has
16not become law.
17(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
1896-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
193-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
20    (35 ILCS 10/5-55)
21    Sec. 5-55. Certificate of verification; submission to the
22Department of Revenue. A Taxpayer claiming a Credit under this
23Act shall submit to the Department of Revenue a copy of the
24Director's certificate of verification under this Act for the
25taxable year. However, failure to submit a copy of the

 

 

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1certificate with the Taxpayer's tax return shall not invalidate
2a claim for a Credit.
3    For a Taxpayer to be eligible for a certificate of
4verification, the Taxpayer shall provide proof as required by
5the Department prior to the end of each calendar year,
6including, but not limited to, attestation by the Taxpayer
7that:
8        (1) The project has substantially achieved the level of
9    new full-time jobs specified in its Agreement.
10        (2) The project has substantially achieved the level of
11    annual payroll in Illinois specified in its Agreement.
12        (3) The project has substantially achieved the level of
13    capital investment in Illinois specified in its Agreement.
14(Source: P.A. 91-476, eff. 8-11-99.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.