SB1149sam001 97TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 3/17/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1149

2    AMENDMENT NO. ______. Amend Senate Bill 1149 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Illinois Quality Jobs Act.
 
6    Section 5. Definitions. As used in this Act:
7    (1) "Approval" means a document submitted by the Department
8to the qualified company that states the benefits that may be
9provided by this program.
10    (2) "Average wage" means the new payroll divided by the
11number of new jobs.
12    (3) "Commencement of operations" means the starting date
13for the qualified company's first new employee, which must be
14no later than 12 months from the date of the approval.
15    (4) "County average wage" means the average wage in each
16county as determined by the Department for the most recently

 

 

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1completed full calendar year. However, if the computed county
2average wage is above the statewide average wage, the statewide
3average wage shall be deemed the county average wage for such
4county for the purpose of determining eligibility. The
5Department shall publish the county average wage for each
6county at least annually. Notwithstanding the provisions of
7this Act to the contrary, for any qualified company that in
8conjunction with its project is relocating employees from an
9Illinois county with a higher county average wage, the company
10shall obtain the endorsement of the governing body of the
11community from which jobs are being relocated or the county
12average wage for its project shall be the county average wage
13for the county from which the employees are being relocated.
14    (5) "Department" means the Department of Commerce and
15Economic Opportunity.
16    (6) "Director" means the Director of Commerce and Economic
17Opportunity.
18    (7) "Employee" means a person employed by a qualified
19company.
20    (8) "Full-time employee" means an employee of the qualified
21company who is scheduled to work an average of at least 35
22hours per week for a 12-month period, and one for which the
23qualified company offers health insurance and pays at least 50%
24of such insurance premiums.
25    (9) "High-impact project" means a qualified company that,
26within 2 years from commencement of operations, creates 100 or

 

 

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1more new jobs.
2    (10) "Local incentives" means the present value of the
3dollar amount of direct benefit received by a qualified company
4for a project facility from one or more units of local
5government, but does not include loans or other funds provided
6to the qualified company that must be repaid by the qualified
7company to the unit of local government.
8    (11) "NAICS" means the 1997 edition of the North American
9Industry Classification System as prepared by the Executive
10Office of the President, Office of Management and Budget. Any
11NAICS sector, subsector, industry group or industry identified
12in this section shall include its corresponding classification
13in subsequent federal industry classification systems.
14    (12) "New direct local revenue" means the present value of
15the dollar amount of direct net new tax revenues of the local
16political subdivisions likely to be produced by the project
17over a 10-year period, as calculated by the Department,
18excluding net new utility revenues, provided the local
19incentives include a discount or other direct incentives from
20utilities owned or operated by the political subdivision.
21    (13) "New investment" means the purchase or leasing of new
22tangible assets to be placed in operation at the project
23facility, which will be directly related to the new jobs.
24    (14) "New job" means the number of full-time employees
25located at the project facility that exceeds the project
26facility base employment less any decrease in the number of

 

 

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1full-time employees at related facilities below the related
2facility base employment. No job that was created prior to the
3date of the notice of intent shall be deemed a new job. An
4employee that spends less than 50% of the employee's work time
5at the facility is still considered to be located at a facility
6if the employee receives his or her directions and control from
7that facility, the employee is on the facility's payroll, 100%
8of the employee's income from such employment is Illinois
9income, and the employee is paid at or above the State average
10wage.
11    (15) "New payroll" means the amount of taxable wages of
12full-time employees, excluding owners, located at the project
13facility that exceeds the project facility base payroll. If
14full-time employment at related facilities is below the related
15facility base employment, any decrease in payroll for full-time
16employees at the related facilities below that related facility
17base payroll shall also be subtracted to determine new payroll.
18    (16) "Notice of intent" means a form developed by the
19Department, completed by the qualified company, and submitted
20to the Department which states the qualified company's intent
21to hire new jobs and request benefits under this program.
22    (17) "Percent of local incentives" means the amount of
23local incentives divided by the amount of new direct local
24revenue.
25    (18) "Program" means the Illinois quality jobs program
26provided for in this Act.

 

 

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1    (19) "Project facility" means the building used by a
2qualified company at which the new jobs and new investment will
3be located. A project facility may include separate buildings
4that are located within 15 miles of each other or within the
5same county such that their purpose and operations are
6interrelated.
7    (20) "Project facility base employment" means the greater
8of the number of full-time employees located at the project
9facility on the date of the notice of intent or for the 12
10month period prior to the date of the notice of intent, the
11average number of full-time employees located at the project
12facility. If the project facility has not been in operation for
13a full 12 month period, "project facility base employment"
14means the average number of full-time employees for the number
15of months the project facility has been in operation prior to
16the date of the notice of intent.
17    (21) "Project facility base payroll" means the total amount
18of taxable wages paid by the qualified company to full-time
19employees of the qualified company located at the project
20facility in the 12 months prior to the notice of intent, not
21including the payroll of the owners of the qualified company
22unless the qualified company is participating in an employee
23stock ownership plan. For purposes of calculating the benefits
24under this program, the amount of base payroll shall increase
25each year based on an appropriate measure, as determined by the
26Department.

 

 

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1    (22) "Project period" means the time period that the
2benefits are provided to a qualified company.
3    (23) "Qualified company" means a firm, partnership, joint
4venture, association, private or public corporation whether
5organized for profit or not, or headquarters of such entity
6registered to do business in Illinois that is the owner or
7operator of a project facility that offers health insurance to
8all full-time employees of all facilities located in this State
9and pays at least 50% of such insurance premiums. "Qualified
10company", however, does not include:
11        (A) gambling establishments (NAICS industry group
12    7132);
13        (B) retail trade establishments (NAICS sectors 44 and
14    45);
15        (C) food and drinking places (NAICS subsector 722);
16        (D) public utilities (NAICS 221 including water and
17    sewer services);
18        (E) any company that is delinquent in the payment of
19    any nonprotested taxes or any other amounts due the State
20    or federal government or any other political subdivision of
21    this State;
22        (F) any company that has filed for or has publicly
23    announced its intention to file for bankruptcy protection;
24    however, a company that has filed for or has publicly
25    announced its intention to file for bankruptcy between
26    January 1, 2009, and December 31, 2009, may be a qualified

 

 

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1    company provided that the company:
2            (i) Certifies to the Department that it plans to
3        reorganize and not to liquidate; and
4            (ii) After its bankruptcy petition has been filed,
5        it produces proof, in a form and at times satisfactory
6        to the Department, that it is not delinquent in filing
7        any tax returns or making any payment due to the State
8        of Illinois, including but not limited to all tax
9        payments due after the filing of the bankruptcy
10        petition and under the terms of the plan of
11        reorganization;
12        any taxpayer who is awarded benefits under this
13    subsection and who files for bankruptcy under Chapter 7 of
14    the United States Bankruptcy Code shall immediately notify
15    the Department and shall forfeit the benefits and shall
16    repay the State an amount equal to any State tax credits
17    already redeemed and any withholding taxes already
18    retained;
19        (G) educational services (NAICS sector 61);
20        (H) religious organizations (NAICS industry group
21    8131);
22        (I) public administration (NAICS sector 92);
23        (J) ethanol distillation or production; or
24        (K) biodiesel production.
25    Notwithstanding any provision of this Section to the
26contrary, the headquarters or administrative offices of an

 

 

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1otherwise excluded business may qualify for benefits if the
2offices serve a multistate territory. In the event a national,
3state, or regional headquarters operation is not the
4predominant activity of a project facility, the new jobs and
5investment of such headquarters operation is considered
6eligible for benefits under this Section if the other
7requirements are satisfied.
8    (24) "Qualified renewable energy sources" shall not be
9construed to include ethanol distillation or production or
10biodiesel production; however, it shall include:
11        (A) open-looped biomass;
12        (B) close-looped biomass;
13        (C) solar;
14        (D) wind;
15        (E) geothermal; and
16        (F) hydropower.
17    (25) "Related company" means:
18        (A) a corporation, partnership, trust, or association
19    controlled by the qualified company;
20        (B) an individual, corporation, partnership, trust, or
21    association in control of the qualified company; or
22        (C) corporations, partnerships, trusts, or
23    associations controlled by an individual, corporation,
24    partnership, trust or association in control of the
25    qualified company. As used in this item (C), "control of a
26    corporation" shall mean ownership, directly or indirectly,

 

 

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1    of stock possessing at least 50% of the total combined
2    voting power of all classes of stock entitled to vote,
3    "control of a partnership or association" shall mean
4    ownership of at least 50% of the capital or profits
5    interest in such partnership or association, "control of a
6    trust" shall mean ownership, directly or indirectly, of at
7    least 50% of the beneficial interest in the principal or
8    income of such trust, and ownership shall be determined as
9    provided in Section 318 of the Internal Revenue Code of
10    1986, as amended.
11    (26) "Related facility" means a facility operated by the
12qualified company or a related company located in this State
13that is directly related to the operations of the project
14facility.
15    (27) "Related facility base employment" means the greater
16of the number of full-time employees located at all related
17facilities on the date of the notice of intent or for the 12
18month period prior to the date of the notice of intent, the
19average number of full-time employees located at all related
20facilities of the qualified company or a related company
21located in this State.
22    (28) "Related facility base payroll" means the total amount
23of taxable wages paid by the qualified company to full-time
24employees of the qualified company located at a related
25facility in the 12 months prior to the filing of the notice of
26intent, not including the payroll of the owners of the

 

 

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1qualified company unless the qualified company is
2participating in an employee stock ownership plan. For purposes
3of calculating the benefits under this program, the amount of
4related facility base payroll shall increase each year based on
5an appropriate measure, as determined by the Department.
6    (29) "Rural area" means a county in Illinois with a
7population less than 75,000 or that does not contain an
8individual city with a population greater than 50,000 according
9to the most recent federal decennial census.
10    (30) "Small and expanding business project" means a
11qualified company that within 2 years of the date of the
12approval creates a minimum of 20 new jobs if the project
13facility is located in a rural area or a minimum of 40 new jobs
14if the project facility is not located in a rural area and
15creates fewer than 100 new jobs regardless of the location of
16the project facility.
17    (31) "Tax credits" means tax credits issued by the
18Department to offset the State income taxes imposed by the
19Illinois Income Tax Act, or which may be refunded as provided
20for in this program.
21    (32) "Technology business project" means a qualified
22company that within 2 years of the date of the approval creates
23a minimum of 10 new jobs involved in the operations of a
24company that:
25        (A) is a technology company, as determined by a rule
26    adopted by the Department under the provisions of Section

 

 

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1    15 or classified by NAICS codes;
2        (B) owns or leases a facility which produces
3    electricity derived from qualified renewable energy
4    sources, or produces fuel for the generation of electricity
5    from qualified renewable energy sources, but does not
6    include any company that has received the alcohol mixture
7    credit, alcohol credit, or small ethanol producer credit
8    pursuant to Section 40 of the Internal Revenue Code of 1986
9    in the previous tax year;
10        (C) researches, develops, or manufactures power system
11    technology for: aerospace; space; defense; hybrid
12    vehicles; or implantable or wearable medical devices; or
13        (D) is a clinical molecular diagnostic laboratory
14    focused on detecting and monitoring infections in
15    immunocompromised patient populations.
16    (33) "Withholding tax" means the State tax imposed by
17Article 7 of the Illinois Income Tax Act. For purposes of this
18program, the withholding tax shall be computed using a schedule
19as determined by the Department based on average wages.
 
20    Section 10. Notice of intent; benefits.
21    (a) The Department shall respond within 30 days to a
22company that provides a notice of intent with either an
23approval or a rejection of the notice of intent. The Department
24shall give preference to qualified companies and projects
25targeted at an area of the State which has recently been

 

 

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1classified as a disaster area by the federal government.
2Failure to respond on behalf of the Department shall result in
3the notice of intent being deemed an approval for the purposes
4of this Section. A qualified company that is provided an
5approval for a project shall be allowed a benefit as provided
6in this program in the amount and duration provided in this
7Section. A qualified company may receive additional periods for
8subsequent new jobs at the same facility after the full initial
9period if the minimum thresholds are met as set forth in this
10Act. There is no limit on the number of periods a qualified
11company may participate in the program, as long as the minimum
12thresholds are achieved and the qualified company provides the
13Department with the required reporting and is in proper
14compliance for this program or other State programs. A
15qualified company may elect to file a notice of intent to start
16a new project period concurrently with an existing project
17period if the minimum thresholds are achieved and the qualified
18company provides the Department with the required reporting and
19is in proper compliance for this program and other State
20programs; however, the qualified company may not receive any
21further benefit under the original approval for jobs created
22after the date of the new notice of intent, and any jobs
23created before the new notice of intent may not be included as
24new jobs for the purpose of benefit calculation in relation to
25the new approval. When a qualified company has filed and
26received approval of a notice of intent and subsequently files

 

 

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1another notice of intent, the Department shall apply the
2definition of project facility under subdivision (19) of
3Section 5 to the new notice of intent as well as all previously
4approved notices of intent and shall determine the application
5of the definitions of new job, new payroll, project facility
6base employment, and project facility base payroll
7accordingly.
8    (b) Notwithstanding any provision of law to the contrary,
9any qualified company that is awarded benefits under this
10program may not simultaneously receive tax credits or
11exemptions under the Economic Development for a Growing Economy
12Tax Credit Act, the Business Location Efficiency Incentive Act,
13and the Small Business Job Creation Tax Credit Act. Any
14taxpayer who is awarded benefits under this program who
15knowingly hires individuals who are not allowed to work legally
16in the United States shall immediately forfeit those benefits
17and shall repay the State an amount equal to any State tax
18credits already redeemed and any withholding taxes already
19retained.
20    (c) The types of projects and the amount of benefits to be
21provided are:
22        (1) Small and expanding business projects. In exchange
23    for the consideration provided by the new tax revenues and
24    other economic stimuli that will be generated by the new
25    jobs created by the program, a qualified company engaged in
26    a small and expanding business project may retain from the

 

 

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1    amounts required to be withheld and remitted under Article
2    7 of the Illinois Income Tax Act an amount equal to the
3    witholding tax, as calculated under item (33) of Section 5,
4    attributable to the new jobs created by the program. Those
5    amounts may be retained for a period of 3 years from the
6    date the required number of new jobs were created if the
7    average wage of the new payroll equals or exceeds the
8    county average wage or for a period of 5 years from the
9    date the required number of new jobs were created if the
10    average wage of the new payroll equals or exceeds 120% of
11    the county average wage.
12        (2) Technology business projects. In exchange for the
13    consideration provided by the new tax revenues and other
14    economic stimuli that will be generated by the new jobs
15    created by the program, a qualified company engaged in a
16    technology business project may retain an amount equal to a
17    maximum of 5% of new payroll for a period of 5 years from
18    the date the required number of jobs were created from the
19    withholding tax of the new jobs that would otherwise be
20    required to be withheld and remitted by the qualified
21    company under the provisions of Article 7 of the Illinois
22    Income Tax Act if the average wage of the new payroll
23    equals or exceeds the county average wage. An additional
24    one-half percent of new payroll may be added to the 5%
25    maximum if the average wage of the new payroll in any year
26    exceeds 120% of the county average wage in the county in

 

 

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1    which the project facility is located, plus an additional
2    one-half percent of new payroll may be added if the average
3    wage of the new payroll in any year exceeds 140% of the
4    average wage in the county in which the project facility is
5    located. The Department shall issue a refundable tax credit
6    for any difference between the amount of benefit allowed
7    under this item and the amount of withholding tax retained
8    by the company, in the event the withholding tax is not
9    sufficient to provide the entire amount of benefit due to
10    the qualified company under this subdivision.
11        (3) High impact projects. In exchange for the
12    consideration provided by the new tax revenues and other
13    economic stimuli that will be generated by the new jobs
14    created by the program, a qualified company engaged in a
15    high impact project may retain, from the withholding tax of
16    the new jobs that would otherwise be required to be
17    withheld and remitted by the qualified company under the
18    provisions of Article 7 of the Illinois Income Tax Act, an
19    amount equal to 3% of new payroll for a period of 5 years
20    from the date the required number of jobs were created if
21    the average wage of the new payroll equals or exceeds the
22    county average wage of the county in which the project
23    facility is located. For high-impact projects in a facility
24    located within 2 adjacent counties, the new payroll shall
25    equal or exceed the higher county average wage of the
26    adjacent counties. The percentage of payroll allowed under

 

 

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1    this subdivision shall be 3.5% of new payroll if the
2    average wage of the new payroll in any year exceeds 120% of
3    the county average wage in the county in which the project
4    facility is located. The percentage of payroll allowed
5    under this subdivision shall be 4% of new payroll if the
6    average wage of the new payroll in any year exceeds 140% of
7    the county average wage in the county in which the project
8    facility is located. An additional 1% of new payroll may be
9    added to these percentages if local incentives equal
10    between 10% and 24% of the new direct local revenue; an
11    additional 2% of new payroll is added to these percentages
12    if the local incentives equal between 25% and 49% of the
13    new direct local revenue; and an additional 3% of payroll
14    is added to these percentages if the local incentives equal
15    50% or more of the new direct local revenue. The Department
16    shall issue a refundable tax credit for any difference
17    between the amount of benefit allowed under this item and
18    the amount of withholding tax retained by the company, in
19    the event the withholding tax is not sufficient to provide
20    the entire amount of benefit due to the qualified company
21    under this subdivision.
22        (4) Job retention projects. A qualified company may
23    receive a tax credit for the retention of jobs in this
24    State, provided that the qualified company and the project
25    meets all of the following conditions:
26            (A) for each of the 24 months preceding the year in

 

 

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1        which application for the program is made the qualified
2        company must have maintained at least 1,000 full-time
3        employees at the employer's site in the State at which
4        the jobs are based, and the average wage of such
5        employees must meet or exceed the county average wage;
6            (B) the qualified company retained at the project
7        facility the level of full-time employees that existed
8        in the taxable year immediately preceding the year in
9        which application for the program is made;
10            (C) the qualified company is considered to have a
11        significant statewide effect on the economy, and has
12        been determined to represent a substantial risk of
13        relocation from the State by the Quality Jobs Advisory
14        Task Force established in Section 20; provided,
15        however, that until such time as the initial at-large
16        members of the Quality Jobs Advisory Task Force are
17        appointed, this determination shall be made by the
18        Director;
19            (D) the qualified company in the project facility
20        shall cause to be invested a minimum of $70,000,000 in
21        new investment prior to the end of 2 years or shall
22        cause to be invested a minimum of $30,000,000 in new
23        investment prior to the end of 2 years and maintain an
24        annual payroll of at least $70,000,000 during each of
25        the years for which a credit is claimed; and
26            (E) the local taxing entities shall provide local

 

 

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1        incentives of at least 50% of the new direct local
2        revenues created by the project over a 10-year period.
3        The Quality Jobs Advisory Task Force may recommend to
4        the Department that appropriate penalties be applied
5        to the company for violating the agreement. The amount
6        of the job retention credit granted may be equal to up
7        to 50% of the amount of withholding tax generated by
8        the full-time jobs at the project facility for a period
9        of 5 years. The calendar year annual maximum amount of
10        tax credit that may be issued to any qualified company
11        for a job retention project or combination of job
12        retention projects shall be $750,000 per year, but the
13        maximum amount may be increased up to $1,000,000 if the
14        increase is proposed by the Department and approved by
15        the Quality Jobs Advisory Task Force established in
16        Section 20; until such time as the initial at-large
17        members of the Quality Jobs Advisory Task Force are
18        appointed, this determination shall be made by the
19        Director; in considering such a request, the Task Force
20        shall rely on economic modeling and other information
21        supplied by the Department when requesting the
22        increased limit on behalf of the job retention project;
23        in no event shall the total amount of all tax credits
24        issued for the entire job retention program under this
25        item exceed $3,000,000 annually; no tax credits shall
26        be issued for job retention projects approved by the

 

 

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1        Department after August 30, 2014.
2        (5) Small business job retention and flood survivor
3    relief. A qualified company may receive a tax credit under
4    this Act for the retention of jobs and flood survivor
5    relief in this State for each job retained over a 3 year
6    period, provided that:
7            (A) the qualified company did not receive any State
8        or federal benefits, incentives, or tax relief or
9        abatement in locating its facility in a flood plain;
10            (B) the qualified company and related companies
11        have fewer than 100 employees at the time an
12        application for the program is made;
13            (C) the average wage of the qualified company's and
14        related companies' employees must meet or exceed the
15        county average wage;
16            (D) all of the qualified company's and related
17        companies' facilities are located in this State;
18            (E) the facilities at the primary business site in
19        this State have been directly damaged by floodwater
20        rising above the level of a 500-year flood at least 2
21        years, but fewer than 8 years, prior to the time
22        application is made;
23            (F) the qualified company made significant efforts
24        to protect the facilities prior to any impending danger
25        from rising floodwaters;
26            (G) for each year it receives tax credits under

 

 

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1        this Act, the qualified company and related companies
2        retained, at the company's facilities in this State, at
3        least the level of full-time, year-round employees
4        that existed in the taxable year immediately preceding
5        the year in which application for the program is made;
6        and
7            (H) in the years it receives tax credits under this
8        Act, the company cumulatively invests at least
9        $2,000,000 in capital improvements in facilities and
10        equipment located at those facilities that are not
11        located within a 500 year flood plain as designated by
12        the Federal Emergency Management Agency, and amended
13        from time to time. The amount of the small business job
14        retention and flood survivor relief credit granted may
15        be equal to up to 100% of the amount of withholding tax
16        generated by the full-time jobs at the project facility
17        for a period of 3 years; the calendar year annual
18        maximum amount of tax credit that may be issued to any
19        qualified company for a small business job retention
20        and survivor relief project shall be $250,000 per year,
21        but the maximum amount may be increased up to $500,000
22        if the increase is proposed by the Department and
23        approved by the Quality Jobs Advisory Task Force
24        established in Section 20; in considering such a
25        request, the Task Force shall rely on economic modeling
26        and other information supplied by the Department when

 

 

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1        requesting an increase in the limit on behalf of the
2        small business job retention and flood survivor relief
3        project; in no event shall the total amount of all tax
4        credits issued for the entire small business job
5        retention and flood survivor relief program under this
6        item exceed $500,000 annually; notwithstanding the
7        provisions of this item to the contrary, no tax credits
8        shall be issued for small business job retention and
9        flood survivor relief projects approved by the
10        Department after August 30, 2014.
11    (d) The qualified company shall provide an annual report of
12the number of jobs and such other information as may be
13required by the Department to document the basis for the
14benefits of this program. The Department may withhold the
15approval of any benefits until it is satisfied that proper
16documentation has been provided, and shall reduce the benefits
17to reflect any reduction in full-time employees or new payroll.
18Upon approval by the Department, the qualified company may
19begin the retention of the withholding taxes when it reaches
20the minimum number of new jobs and the average wage exceeds the
21county average wage. Tax credits, if any, may be issued upon
22satisfaction by the Department that the qualified company has
23exceeded the county average wage and the minimum number of new
24jobs. In such annual report, if the average wage is below the
25county average wage, the qualified company has not maintained
26the employee insurance as required, or if the number of new

 

 

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1jobs is below the minimum, the qualified company shall not
2receive tax credits or retain the withholding tax for the
3balance of the benefit period. In the case of a qualified
4company that initially filed a notice of intent and received an
5approval from the Department for high-impact benefits and the
6minimum number of new jobs in an annual report is below the
7minimum for high-impact projects, the company shall not receive
8tax credits for the balance of the benefit period but may
9continue to retain the withholding taxes if it otherwise meets
10the requirements of a small and expanding business under this
11program.
12    (e) The maximum calendar year annual tax credits issued for
13the entire program shall not exceed $80,000,000. There shall be
14no limit on the amount of withholding taxes that may be
15retained by approved companies under this program.
16    (f) The Department shall allocate the annual tax credits
17based on the date of the approval, reserving such tax credits
18based on the Department's best estimate of new jobs and new
19payroll of the project, and the other factors in the
20determination of benefits of this program. However, the annual
21issuance of tax credits is subject to the annual verification
22of the actual new payroll. The allocation of tax credits for
23the period assigned to a project shall expire if, within 2
24years from the date of commencement of operations, or approval
25if applicable, the minimum thresholds have not been achieved.
26The qualified company may retain authorized amounts from the

 

 

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1withholding tax under this Section once the minimum new jobs
2thresholds are met for the duration of the project period. No
3benefits shall be provided under this program until the
4qualified company meets the minimum new jobs thresholds. In the
5event the qualified company does not meet the minimum new job
6threshold, the qualified company may submit a new notice of
7intent or the Department may provide a new approval for a new
8project of the qualified company at the project facility or
9other facilities.
10    (g) For a qualified company with flow-through tax treatment
11to its members, partners, or shareholders, the tax credit shall
12be allowed to members, partners, or shareholders in proportion
13to their share of ownership on the last day of the qualified
14company's tax period.
15    (h) Tax credits may be claimed against taxes otherwise
16imposed by the Illinois Income Tax Act, and may not be carried
17forward but shall be claimed within one year of the close of
18the taxable year for which they were issued, except as provided
19under item (4) of subsection (c) of this Section.
20    (i) Prior to the issuance of tax credits, the Department
21shall verify through the Department of Revenue, or any other
22State agency, that the tax credit applicant does not owe any
23delinquent income, sales, or use tax, or interest or penalties
24on such taxes, or any delinquent fees or assessments levied by
25any State agency. Such delinquency shall not affect the
26authorization of the application for such tax credits, except

 

 

09700SB1149sam001- 24 -LRB097 04873 AEK 52199 a

1that at issuance credits shall be first applied to the
2delinquency and any amount issued shall be reduced by the
3applicant's tax delinquency. If the Department of Revenue or
4any other State agency, concludes that a taxpayer is delinquent
5after June 15 but before July 1 of any year and the application
6of tax credits to such delinquency causes a tax deficiency on
7behalf of the taxpayer to arise, then the taxpayer shall be
8granted 30 days to satisfy the deficiency, during which time
9interest, penalties, and additions to tax shall be tolled.
10After applying all available credits toward a tax delinquency,
11the administering agency shall notify the appropriate agency
12and that agency shall update the amount of outstanding
13delinquent tax owed by the applicant. If any credits remain
14after satisfying all insurance, income, sales, and use tax
15delinquencies, the remaining credits shall be issued to the
16applicant, subject to the restrictions of other provisions of
17law.
18    (j) Except as provided under subdivision (4) of subsection
19(c) of this Section, the Department of Revenue shall issue a
20refund to the qualified company to the extent that the amount
21of credits allowed in this Section exceeds the amount of the
22qualified company's income tax.
23    (k) An employee of a qualified company shall receive full
24credit for the amount of tax withheld as provided in Article 7
25of the Illinois Income Tax Act.
26    (l) If any provision of this Act or application thereof to

 

 

09700SB1149sam001- 25 -LRB097 04873 AEK 52199 a

1any person or circumstance is held invalid, the invalidity
2shall not affect other provisions or application of this Act
3which can be given effect without the invalid provision or
4application, and to this end, the provisions of this Act are
5hereby declared severable.
 
6    Section 15. Rulemaking authority. The Department may adopt
7such rules as may be necessary to carry out the provisions of
8this Act.
 
9    Section 20. Quality Jobs Advisory Task Force. There is
10hereby created a volunteer task force, to be known as the
11Quality Jobs Advisory Task Force, which shall consist of the
12Chairperson of the Commerce Committee of the Senate or his or
13her designee, a member of the Commerce Committee of the Senate
14appointed by the Minority Leader of the Senate, the Chairperson
15of the Small Business Empowerment & Workforce Development
16Committee of the House of Representatives or his or her
17designee, a member of the Small Business Empowerment &
18Workforce Development Committee of the House of
19Representatives appointed by the Minority Leader of the House
20of Representatives, the Director of the Department of Commerce
21and Economic Opportunity or his or her designee, and 2 members
22to be appointed by the Governor with the advice and consent of
23the Senate.
 

 

 

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1    Section 25. Report to the General Assembly. Prior to March
21 of each year, the Department shall provide a report on the
3program to the General Assembly including the names of
4participating companies, location of such companies, the
5annual amount of benefits provided, the estimated net State
6fiscal impact (direct and indirect new State taxes derived from
7the project), the number of new jobs created or jobs retained,
8the average wages of each project, and the types of qualified
9companies using the program.
 
10    Section 80. The Illinois Income Tax Act is amended by
11changing Section 704A and by adding Section 221 as follows:
 
12    (35 ILCS 5/221 new)
13    Sec. 221. Illinois Quality Jobs Tax Credit. A taxpayer is
14entitled to a credit against the tax imposed by subsections (a)
15and (b) of Section 201 of this Act as provided in the Illinois
16Quality Jobs Act.
 
17    (35 ILCS 5/704A)
18    Sec. 704A. Employer's return and payment of tax withheld.
19    (a) In general, every employer who deducts and withholds or
20is required to deduct and withhold tax under this Act on or
21after January 1, 2008 shall make those payments and returns as
22provided in this Section.
23    (b) Returns. Every employer shall, in the form and manner

 

 

09700SB1149sam001- 27 -LRB097 04873 AEK 52199 a

1required by the Department, make returns with respect to taxes
2withheld or required to be withheld under this Article 7 for
3each quarter beginning on or after January 1, 2008, on or
4before the last day of the first month following the close of
5that quarter.
6    (c) Payments. With respect to amounts withheld or required
7to be withheld on or after January 1, 2008:
8        (1) Semi-weekly payments. For each calendar year, each
9    employer who withheld or was required to withhold more than
10    $12,000 during the one-year period ending on June 30 of the
11    immediately preceding calendar year, payment must be made:
12            (A) on or before each Friday of the calendar year,
13        for taxes withheld or required to be withheld on the
14        immediately preceding Saturday, Sunday, Monday, or
15        Tuesday;
16            (B) on or before each Wednesday of the calendar
17        year, for taxes withheld or required to be withheld on
18        the immediately preceding Wednesday, Thursday, or
19        Friday.
20        Beginning with calendar year 2011, payments payment
21    made under this paragraph (1) of subsection (c) must be
22    made by electronic funds transfer.
23        (2) Semi-weekly payments. Any employer who withholds
24    or is required to withhold more than $12,000 in any quarter
25    of a calendar year is required to make payments on the
26    dates set forth under item (1) of this subsection (c) for

 

 

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1    each remaining quarter of that calendar year and for the
2    subsequent calendar year.
3        (3) Monthly payments. Each employer, other than an
4    employer described in items (1) or (2) of this subsection,
5    shall pay to the Department, on or before the 15th day of
6    each month the taxes withheld or required to be withheld
7    during the immediately preceding month.
8        (4) Payments with returns. Each employer shall pay to
9    the Department, on or before the due date for each return
10    required to be filed under this Section, any tax withheld
11    or required to be withheld during the period for which the
12    return is due and not previously paid to the Department.
13    (d) Regulatory authority. The Department may, by rule:
14        (1) Permit employers, in lieu of the requirements of
15    subsections (b) and (c), to file annual returns due on or
16    before January 31 of the year for taxes withheld or
17    required to be withheld during the previous calendar year
18    and, if the aggregate amounts required to be withheld by
19    the employer under this Article 7 (other than amounts
20    required to be withheld under Section 709.5) do not exceed
21    $1,000 for the previous calendar year, to pay the taxes
22    required to be shown on each such return no later than the
23    due date for such return.
24        (2) Provide that any payment required to be made under
25    subsection (c)(1) or (c)(2) is deemed to be timely to the
26    extent paid by electronic funds transfer on or before the

 

 

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1    due date for deposit of federal income taxes withheld from,
2    or federal employment taxes due with respect to, the wages
3    from which the Illinois taxes were withheld.
4        (3) Designate one or more depositories to which payment
5    of taxes required to be withheld under this Article 7 must
6    be paid by some or all employers.
7        (4) Increase the threshold dollar amounts at which
8    employers are required to make semi-weekly payments under
9    subsection (c)(1) or (c)(2).
10    (e) Annual return and payment. Every employer who deducts
11and withholds or is required to deduct and withhold tax from a
12person engaged in domestic service employment, as that term is
13defined in Section 3510 of the Internal Revenue Code, may
14comply with the requirements of this Section with respect to
15such employees by filing an annual return and paying the taxes
16required to be deducted and withheld on or before the 15th day
17of the fourth month following the close of the employer's
18taxable year. The Department may allow the employer's return to
19be submitted with the employer's individual income tax return
20or to be submitted with a return due from the employer under
21Section 1400.2 of the Unemployment Insurance Act.
22    (f) Magnetic media and electronic filing. Any W-2 Form
23that, under the Internal Revenue Code and regulations
24promulgated thereunder, is required to be submitted to the
25Internal Revenue Service on magnetic media or electronically
26must also be submitted to the Department on magnetic media or

 

 

09700SB1149sam001- 30 -LRB097 04873 AEK 52199 a

1electronically for Illinois purposes, if required by the
2Department.
3    (g) For amounts deducted or withheld after December 31,
42009, a taxpayer who makes an election under subsection (f) of
5Section 5-15 of the Economic Development for a Growing Economy
6Tax Credit Act for a taxable year shall be allowed a credit
7against payments due under this Section for amounts withheld
8during the first calendar year beginning after the end of that
9taxable year equal to the amount of the credit for the
10incremental income tax attributable to full-time employees of
11the taxpayer awarded to the taxpayer by the Department of
12Commerce and Economic Opportunity under the Economic
13Development for a Growing Economy Tax Credit Act for the
14taxable year and credits not previously claimed and allowed to
15be carried forward under Section 211(4) of this Act as provided
16in subsection (f) of Section 5-15 of the Economic Development
17for a Growing Economy Tax Credit Act. The credit or credits may
18not reduce the taxpayer's obligation for any payment due under
19this Section to less than zero. If the amount of the credit or
20credits exceeds the total payments due under this Section with
21respect to amounts withheld during the calendar year, the
22excess may be carried forward and applied against the
23taxpayer's liability under this Section in the succeeding
24calendar years as allowed to be carried forward under paragraph
25(4) of Section 211 of this Act. The credit or credits shall be
26applied to the earliest year for which there is a tax

 

 

09700SB1149sam001- 31 -LRB097 04873 AEK 52199 a

1liability. If there are credits from more than one taxable year
2that are available to offset a liability, the earlier credit
3shall be applied first. Each employer who deducts and withholds
4or is required to deduct and withhold tax under this Act and
5who retains income tax withholdings under subsection (f) of
6Section 5-15 of the Economic Development for a Growing Economy
7Tax Credit Act must make a return with respect to such taxes
8and retained amounts in the form and manner that the
9Department, by rule, requires and pay to the Department or to a
10depositary designated by the Department those withheld taxes
11not retained by the taxpayer. For purposes of this subsection
12(g), the term taxpayer shall include taxpayer and members of
13the taxpayer's unitary business group as defined under
14paragraph (27) of subsection (a) of Section 1501 of this Act.
15This Section is exempt from the provisions of Section 250 of
16this Act.
17    (h) An employer may claim a credit against payments due
18under this Section for amounts withheld during the first
19calendar year ending after date on which a tax credit
20certificate was issued under Section 35 of the Small Business
21Job Creation Tax Credit Act. The credit shall be equal to the
22amount shown on the certificate, but may not reduce the
23taxpayer's obligation for any payment due under this Section to
24less than zero. If the amount of the credit exceeds the total
25payments due under this Section with respect to amounts
26withheld during the calendar year, the excess may be carried

 

 

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1forward and applied against the taxpayer's liability under this
2Section in the 5 succeeding calendar years. The credit shall be
3applied to the earliest year for which there is a tax
4liability. If there are credits from more than one calendar
5year that are available to offset a liability, the earlier
6credit shall be applied first. This Section is exempt from the
7provisions of Section 250 of this Act.
8    (i) An employer may claim a credit against payments due
9under this Article for the amount of credit awarded under
10Section 10 of the Illinois Quality Jobs Act. This Section is
11exempt from the provisions of Section 250 of this Act.
12(Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834,
13eff. 12-14-09; 96-888, eff. 4-13-10; 96-905, eff. 6-4-10;
1496-1027, eff. 7-12-10; revised 9-16-10.)".