Illinois General Assembly - Full Text of SB1147
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Full Text of SB1147  98th General Assembly

SB1147eng 98TH GENERAL ASSEMBLY



 


 
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1    AN ACT concerning economic development.
 
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        $30,000,000 which will be placed in service in
4        qualified property and intends to retain 1,500
5        full-time retained jobs at a designated location in
6        Illinois. The business must certify in writing that the
7        investments would not be placed in service in qualified
8        property and the job creation or job retention would
9        not occur without the tax credits and exemptions set
10        forth in subsection (b) of this Section. The terms
11        "placed in service" and "qualified property" have the
12        same meanings as described in subsection (h) of Section
13        201 of the Illinois Income Tax Act; or
14            (B) the business intends to establish a new
15        electric generating facility at a designated location
16        in Illinois. "New electric generating facility", for
17        purposes of this Section, means a newly-constructed
18        electric generation plant or a newly-constructed
19        generation capacity expansion at an existing electric
20        generation plant, including the transmission lines and
21        associated equipment that transfers electricity from
22        points of supply to points of delivery, and for which
23        such new foundation construction commenced not sooner
24        than July 1, 2001. Such facility shall be designed to
25        provide baseload electric generation and shall operate
26        on a continuous basis throughout the year; and (i)

 

 

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1        shall have an aggregate rated generating capacity of at
2        least 1,000 megawatts for all new units at one site if
3        it uses natural gas as its primary fuel and foundation
4        construction of the facility is commenced on or before
5        December 31, 2004, or shall have an aggregate rated
6        generating capacity of at least 400 megawatts for all
7        new units at one site if it uses coal or gases derived
8        from coal as its primary fuel and shall support the
9        creation of at least 150 new Illinois coal mining jobs,
10        or (ii) shall be funded through a federal Department of
11        Energy grant before December 31, 2010 and shall support
12        the creation of Illinois coal-mining jobs, or (iii)
13        shall use coal gasification or integrated
14        gasification-combined cycle units that generate
15        electricity or chemicals, or both, and shall support
16        the creation of Illinois coal-mining jobs. The
17        business must certify in writing that the investments
18        necessary to establish a new electric generating
19        facility would not be placed in service and the job
20        creation in the case of a coal-fueled plant would not
21        occur without the tax credits and exemptions set forth
22        in subsection (b-5) of this Section. The term "placed
23        in service" has the same meaning as described in
24        subsection (h) of Section 201 of the Illinois Income
25        Tax Act; or
26            (B-5) the business intends to establish a new

 

 

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

 

 

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

 

 

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1        subsection (h) of Section 201 of the Illinois Income
2        Tax Act; or
3            (E) the business intends to establish a new wind
4        power facility at a designated location in Illinois.
5        For purposes of this Section, "new wind power facility"
6        means a newly constructed electric generation
7        facility, or a newly constructed expansion of an
8        existing electric generation facility, placed in
9        service on or after July 1, 2009, that generates
10        electricity using wind energy devices, and such
11        facility shall be deemed to include all associated
12        transmission lines, substations, and other equipment
13        related to the generation of electricity from wind
14        energy devices. For purposes of this Section, "wind
15        energy device" means any device, with a nameplate
16        capacity of at least 0.5 megawatts, that is used in the
17        process of converting kinetic energy from the wind to
18        generate electricity; or and
19            (F) the business intends to (i) make a minimum
20        investment of $500,000,000, which will be placed in
21        service in a qualified property, (ii) create 125
22        full-time equivalent jobs at a designated location in
23        Illinois, and (iii) establish a fertilizer plant at a
24        designated location in Illinois; for the purposes of
25        this Section, "fertilizer plant" means a newly
26        constructed or upgraded plant facilitating gas used in

 

 

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

 

 

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1this Section.
2    (b-5) Businesses designated as High Impact Businesses
3pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
4and (a)(3)(D) of this Section shall qualify for the credits and
5exemptions described in the following Acts: Section 51 of the
6Retailers' Occupation Tax Act, Section 9-222 and Section
79-222.1A of the Public Utilities Act, and subsection (h) of
8Section 201 of the Illinois Income Tax Act; however, the
9credits and exemptions authorized under Section 9-222 and
10Section 9-222.1A of the Public Utilities Act, and subsection
11(h) of Section 201 of the Illinois Income Tax Act shall not be
12authorized until the new electric generating facility, the new
13gasification facility, the new transmission facility, or the
14new, expanded, or reopened coal mine is operational, except
15that a new electric generating facility whose primary fuel
16source is natural gas is eligible only for the exemption under
17Section 5l of the Retailers' Occupation Tax Act.
18    (b-6) Businesses designated as High Impact Businesses
19pursuant to subdivision (a)(3)(E) of this Section shall qualify
20for the exemptions described in Section 5l of the Retailers'
21Occupation Tax Act; any business so designated as a High Impact
22Business being, for purposes of this Section, a "Wind Energy
23Business".
24    (c) High Impact Businesses located in federally designated
25foreign trade zones or sub-zones are also eligible for
26additional credits, exemptions and deductions as described in

 

 

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

 

 

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1Department of Revenue who shall begin proceedings to recover
2all wrongfully exempted State taxes with interest. The business
3shall also be ineligible for all State funded Department
4programs for a period of 10 years.
5    (g) The Department shall revoke a High Impact Business
6designation if the participating business fails to comply with
7the terms and conditions of the designation. However, the
8penalties for new wind power facilities or Wind Energy
9Businesses for failure to comply with any of the terms or
10conditions of the Illinois Prevailing Wage Act shall be only
11those penalties identified in the Illinois Prevailing Wage Act,
12and the Department shall not revoke a High Impact Business
13designation as a result of the failure to comply with any of
14the terms or conditions of the Illinois Prevailing Wage Act in
15relation to a new wind power facility or a Wind Energy
16Business.
17    (h) Prior to designating a business, the Department shall
18provide the members of the General Assembly and Commission on
19Government Forecasting and Accountability with a report
20setting forth the terms and conditions of the designation and
21guarantees that have been received by the Department in
22relation to the proposed business being designated.
23(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
 
24    Section 10. The Property Tax Code is amended by changing
25Section 18-165 as follows:
 

 

 

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

 

 

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

 

 

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1                (ii) if the equalized assessed valuation of
2            the new electric generating facility is equal to or
3            greater than $50,000,000 but less than
4            $75,000,000, then the abatement may not exceed (i)
5            over the entire term of the abatement, 10% of the
6            taxing district's aggregate taxes from the new
7            electric generating facility and (ii) in any one
8            year of abatement, 35% of the taxing district's
9            taxes from the new electric generating facility;
10                (iii) if the equalized assessed valuation of
11            the new electric generating facility is equal to or
12            greater than $75,000,000 but less than
13            $100,000,000, then the abatement may not exceed
14            (i) over the entire term of the abatement, 20% of
15            the taxing district's aggregate taxes from the new
16            electric generating facility and (ii) in any one
17            year of abatement, 50% of the taxing district's
18            taxes from the new electric generating facility;
19                (iv) if the equalized assessed valuation of
20            the new electric generating facility is equal to or
21            greater than $100,000,000 but less than
22            $125,000,000, then the abatement may not exceed
23            (i) over the entire term of the abatement, 30% of
24            the taxing district's aggregate taxes from the new
25            electric generating facility and (ii) in any one
26            year of abatement, 60% of the taxing district's

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1portion of its taxes on any property that is located within the
2corporate limits of the municipality in accordance with Section
38-3-18 of the Illinois Municipal Code.
4(Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12;
597-636, eff. 6-1-12.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.