HB3934 EnrolledLRB097 15154 HLH 60254 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 Section 5-50 as follows:
6    (35 ILCS 10/5-50)
7    Sec. 5-50. Contents of Agreements with Applicants. The
8Department shall enter into an Agreement with an Applicant that
9is awarded a Credit under this Act. The Agreement must include
10all of the following:
11        (1) A detailed description of the project that is the
12    subject of the Agreement, including the location and amount
13    of the investment and jobs created or retained.
14        (2) The duration of the Credit and the first taxable
15    year for which the Credit may be claimed.
16        (3) The Credit amount that will be allowed for each
17    taxable year.
18        (4) A requirement that the Taxpayer shall maintain
19    operations at the project location that shall be stated as
20    a minimum number of years not to exceed 10.
21        (5) A specific method for determining the number of New
22    Employees employed during a taxable year.
23        (6) A requirement that the Taxpayer shall annually



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1    report to the Department the number of New Employees, the
2    Incremental Income Tax withheld in connection with the New
3    Employees, and any other information the Director needs to
4    perform the Director's duties under this Act.
5        (7) A requirement that the Director is authorized to
6    verify with the appropriate State agencies the amounts
7    reported under paragraph (6), and after doing so shall
8    issue a certificate to the Taxpayer stating that the
9    amounts have been verified.
10        (8) A requirement that the Taxpayer shall provide
11    written notification to the Director not more than 30 days
12    after the Taxpayer makes or receives a proposal that would
13    transfer the Taxpayer's State tax liability obligations to
14    a successor Taxpayer.
15        (9) A detailed description of the number of New
16    Employees to be hired, and the occupation and payroll of
17    the full-time jobs to be created or retained as a result of
18    the project.
19        (10) The minimum investment the business enterprise
20    will make in capital improvements, the time period for
21    placing the property in service, and the designated
22    location in Illinois for the investment.
23        (11) A requirement that the Taxpayer shall provide
24    written notification to the Director and the Committee not
25    more than 30 days after the Taxpayer determines that the
26    minimum job creation or retention, employment payroll, or



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1    investment no longer is being or will be achieved or
2    maintained as set forth in the terms and conditions of the
3    Agreement.
4        (12) A provision that, if the total number of New
5    Employees falls below a specified level, the allowance of
6    Credit shall be suspended until the number of New Employees
7    equals or exceeds the Agreement amount.
8        (13) A detailed description of the items for which the
9    costs incurred by the Taxpayer will be included in the
10    limitation on the Credit provided in Section 5-30.
11        (13.5) A provision that, if the Taxpayer never meets
12    either the investment or job creation and retention
13    requirements specified in the Agreement during the entire
14    5-year period beginning on the first day of the first
15    taxable year in which the Agreement is executed and ending
16    on the last day of the fifth taxable year after the
17    Agreement is executed, then the Agreement is automatically
18    terminated on the last day of the fifth taxable year after
19    the Agreement is executed and the Taxpayer is not entitled
20    to the award of any credits for any of that 5-year period.
21        (14) Any other performance conditions or contract
22    provisions as the Department determines are appropriate.
23    The Department shall post on its website the terms of each
24Agreement entered into under this Act on or after the effective
25date of this amendatory Act of the 97th General Assembly.
26(Source: P.A. 97-2, eff. 5-6-11.)



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.