Full Text of HB3890 98th General Assembly
HB3890ham001 98TH GENERAL ASSEMBLY | Rep. Michael J. Madigan Filed: 5/13/2014
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| 1 | | AMENDMENT TO HOUSE BILL 3890
| 2 | | AMENDMENT NO. ______. Amend House Bill 3890 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Economic Development for a Growing Economy | 5 | | Tax Credit Act is amended by changing Sections 5-5, 5-15, 5-20, | 6 | | and 5-50 as follows:
| 7 | | (35 ILCS 10/5-5)
| 8 | | Sec. 5-5. Definitions. As used in this Act:
| 9 | | "Agreement" means the Agreement between a Taxpayer and the | 10 | | Department under
the provisions of Section 5-50 of this Act.
| 11 | | "Applicant" means a Taxpayer that is operating a business | 12 | | located or that
the Taxpayer plans to locate within the State | 13 | | of Illinois and that is engaged
in interstate or intrastate | 14 | | commerce for the purpose of manufacturing,
processing, | 15 | | assembling, warehousing, or distributing products, conducting
| 16 | | research and development, providing tourism services, or |
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| 1 | | providing services
in interstate commerce, office industries, | 2 | | or agricultural processing, but
excluding retail, retail food, | 3 | | health, or professional services.
"Applicant" does not include | 4 | | a Taxpayer who closes or
substantially reduces an operation at | 5 | | one location in the State and relocates
substantially the same | 6 | | operation to another location in the State. This does
not | 7 | | prohibit a Taxpayer from expanding its operations at another | 8 | | location in
the State, provided that existing operations of a | 9 | | similar nature located within
the State are not closed or | 10 | | substantially reduced. This also does not prohibit
a Taxpayer | 11 | | from moving its operations from one location in the State to | 12 | | another
location in the State for the purpose of expanding the | 13 | | operation provided that
the Department determines that | 14 | | expansion cannot reasonably be accommodated
within the | 15 | | municipality in which the business is located, or in the case | 16 | | of a
business located in an incorporated area of the county, | 17 | | within the county in
which the business is located, after | 18 | | conferring with the chief elected
official of the municipality | 19 | | or county and taking into consideration any
evidence offered by | 20 | | the municipality or county regarding the ability to
accommodate | 21 | | expansion within the municipality or county.
| 22 | | "Committee" means the Illinois Business Investment | 23 | | Committee created under
Section 5-25 of this Act within the | 24 | | Illinois Economic Development Board.
| 25 | | "Credit" means the amount agreed to between the Department | 26 | | and Applicant
under this Act, but not to exceed the Incremental |
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| 1 | | Income Tax attributable to
the Applicant's project. However, if | 2 | | the Applicant's project includes retained employees, then the | 3 | | amount of the Credit may also include an amount agreed to | 4 | | between the Department and the Applicant based on the severity | 5 | | of the poverty or unemployment in the geographic area in which | 6 | | the Applicant's project is located or the retained employees | 7 | | reside. That amount may not be more than 40% of the total | 8 | | amount withheld during the taxable
year under Article 7 of the | 9 | | Illinois Income Tax Act from the compensation of retained | 10 | | employees. For the purposes of this definition, "retained | 11 | | employee" means a full-time employee of the Applicant who is | 12 | | employed at the project location and whose job is identified in | 13 | | the application as being at risk of being relocated outside of | 14 | | Illinois if the Applicant does not receive a credit under this | 15 | | Act.
| 16 | | "Department" means the Department of Commerce and Economic | 17 | | Opportunity.
| 18 | | "Director" means the Director of Commerce and Economic | 19 | | Opportunity.
| 20 | | "Full-time Employee" means an individual who is employed | 21 | | for consideration
for at least 35 hours each week or who | 22 | | renders any other standard of service
generally accepted by | 23 | | industry custom or practice as full-time employment. An | 24 | | individual for whom a W-2 is issued by a Professional Employer | 25 | | Organization (PEO) is a full-time employee if employed in the | 26 | | service of the Applicant for consideration for at least 35 |
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| 1 | | hours each week or who renders any other standard of service | 2 | | generally accepted by industry custom or practice as full-time | 3 | | employment to Applicant.
| 4 | | "Geographic area of high poverty or high unemployment" | 5 | | means a census tract in which more than 20% of the
residents | 6 | | live below the poverty level, as determined by the most recent | 7 | | data from the United States Census Bureau, or the average | 8 | | unemployment rate for that census tract exceeds the average | 9 | | unemployment rate for the State by 3% or more. | 10 | | "Incremental Income Tax" means the total amount withheld | 11 | | during the taxable
year from the compensation of New Employees | 12 | | under Article 7 of the Illinois
Income Tax Act arising from | 13 | | employment at a project that is the subject of an
Agreement.
| 14 | | "New Employee" means:
| 15 | | (a) A Full-time Employee first employed by a Taxpayer | 16 | | in the project
that is the subject of an Agreement and who | 17 | | is hired after the Taxpayer
enters into the tax credit | 18 | | Agreement.
| 19 | | (b) The term "New Employee" does not include:
| 20 | | (1) an employee of the Taxpayer who performs a job | 21 | | that was previously
performed by another employee, if | 22 | | that job existed for at least 6
months before hiring | 23 | | the employee;
| 24 | | (2) an employee of the Taxpayer who was previously | 25 | | employed in
Illinois by a Related Member of the | 26 | | Taxpayer and whose employment was
shifted to the |
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| 1 | | Taxpayer after the Taxpayer entered into the tax credit
| 2 | | Agreement; or
| 3 | | (3) a child, grandchild, parent, or spouse, other | 4 | | than a spouse who
is legally separated from the | 5 | | individual, of any individual who has a direct
or an | 6 | | indirect ownership interest of at least 5% in the | 7 | | profits, capital, or
value of the Taxpayer.
| 8 | | (c) Notwithstanding paragraph (1) of subsection (b), | 9 | | an employee may be
considered a New Employee under the | 10 | | Agreement if the employee performs a job
that was | 11 | | previously performed by an employee who was:
| 12 | | (1) treated under the Agreement as a New Employee; | 13 | | and
| 14 | | (2) promoted by the Taxpayer to another job.
| 15 | | (d) Notwithstanding subsection (a), the Department may | 16 | | award Credit to an
Applicant with respect to an employee | 17 | | hired prior to the date of the Agreement
if:
| 18 | | (1) the Applicant is in receipt of a letter from | 19 | | the Department stating
an
intent to enter into a credit | 20 | | Agreement;
| 21 | | (2) the letter described in paragraph (1) is issued | 22 | | by the
Department not later than 15 days after the | 23 | | effective date of this Act; and
| 24 | | (3) the employee was hired after the date the | 25 | | letter described in
paragraph (1) was issued.
| 26 | | "Noncompliance Date" means, in the case of a Taxpayer that |
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| 1 | | is not complying
with the requirements of the Agreement or the | 2 | | provisions of this Act, the day
following the last date upon | 3 | | which the Taxpayer was in compliance with the
requirements of | 4 | | the Agreement and the provisions of this Act, as determined
by | 5 | | the Director, pursuant to Section 5-65.
| 6 | | "Pass Through Entity" means an entity that is exempt from | 7 | | the tax under
subsection (b) or (c) of Section 205 of the | 8 | | Illinois Income Tax Act.
| 9 | | "Professional Employer Organization" (PEO) means an | 10 | | employee leasing company, as defined in Section 206.1(A)(2) of | 11 | | the Illinois Unemployment Insurance Act.
| 12 | | "Related Member" means a person that, with respect to the | 13 | | Taxpayer during
any portion of the taxable year, is any one of | 14 | | the following:
| 15 | | (1) An individual stockholder, if the stockholder and | 16 | | the members of the
stockholder's family (as defined in | 17 | | Section 318 of the Internal Revenue Code)
own directly, | 18 | | indirectly, beneficially, or constructively, in the | 19 | | aggregate,
at least 50% of the value of the Taxpayer's | 20 | | outstanding stock.
| 21 | | (2) A partnership, estate, or trust and any partner or | 22 | | beneficiary,
if the partnership, estate, or trust, and its | 23 | | partners or beneficiaries own
directly, indirectly, | 24 | | beneficially, or constructively, in the aggregate, at
| 25 | | least 50% of the profits, capital, stock, or value of the
| 26 | | Taxpayer.
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| 1 | | (3) A corporation, and any party related to the | 2 | | corporation in a manner
that would require an attribution | 3 | | of stock from the corporation to the
party or from the | 4 | | party to the corporation under the attribution rules
of | 5 | | Section 318 of the Internal Revenue Code, if the Taxpayer | 6 | | owns
directly, indirectly, beneficially, or constructively | 7 | | at least
50% of the value of the corporation's outstanding | 8 | | stock.
| 9 | | (4) A corporation and any party related to that | 10 | | corporation in a manner
that would require an attribution | 11 | | of stock from the corporation to the party or
from the | 12 | | party to the corporation under the attribution rules of | 13 | | Section 318 of
the Internal Revenue Code, if the | 14 | | corporation and all such related parties own
in the | 15 | | aggregate at least 50% of the profits, capital, stock, or | 16 | | value of the
Taxpayer.
| 17 | | (5) A person to or from whom there is attribution of | 18 | | stock ownership
in accordance with Section 1563(e) of the | 19 | | Internal Revenue Code, except,
for purposes of determining | 20 | | whether a person is a Related Member under
this paragraph, | 21 | | 20% shall be substituted for 5% wherever 5% appears in
| 22 | | Section 1563(e) of the Internal Revenue Code.
| 23 | | "Taxpayer" means an individual, corporation, partnership, | 24 | | or other entity
that has any Illinois Income Tax liability.
| 25 | | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
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| 1 | | (35 ILCS 10/5-15) | 2 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 3 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 4 | | or, as described in subsection (g) of this Section, a payment | 5 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 6 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 7 | | on the Taxpayer for a taxable year beginning
on or
after | 8 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 9 | | Department under this Act for that
taxable year. | 10 | | (a) The Department shall make Credit awards under this Act | 11 | | to foster job
creation and retention in Illinois. | 12 | | (b) A person that proposes a project to create new jobs in | 13 | | Illinois must
enter into an Agreement with the
Department for | 14 | | the Credit under this Act. | 15 | | (c) The Credit shall be claimed for the taxable years | 16 | | specified in the
Agreement. | 17 | | (d) The Credit shall not exceed the Incremental Income Tax | 18 | | attributable to
the project that is the subject of the | 19 | | Agreement. | 20 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 21 | | Applicant that uses a PEO if all other award criteria are | 22 | | satisfied.
| 23 | | (f) Subject to the requirements of paragraph (5) of this | 24 | | subsection (f), in In lieu of the Credit allowed under this Act | 25 | | against the taxes imposed pursuant to subsections (a) and (b) | 26 | | of Section 201 of the Illinois Income Tax Act for any taxable |
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| 1 | | year ending on or after December 31, 2009, the Taxpayer may | 2 | | elect to claim the Credit against its obligation to pay over | 3 | | withholding under Section 704A of the Illinois Income Tax Act. | 4 | | (1) The election under this subsection (f) may be made | 5 | | only by a Taxpayer that (i) is primarily engaged in one of | 6 | | the following business activities: water purification and | 7 | | treatment, motor vehicle metal stamping, automobile | 8 | | manufacturing, automobile and light duty motor vehicle | 9 | | manufacturing, motor vehicle manufacturing, light truck | 10 | | and utility vehicle manufacturing, heavy duty truck | 11 | | manufacturing, motor vehicle body manufacturing, cable | 12 | | television infrastructure design or manufacturing, or | 13 | | wireless telecommunication or computing terminal device | 14 | | design or manufacturing for use on public networks and (ii) | 15 | | meets the following criteria: | 16 | | (A) the Taxpayer (i) had an Illinois net loss or an | 17 | | Illinois net loss deduction under Section 207 of the | 18 | | Illinois Income Tax Act for the taxable year in which | 19 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 20 | | full-time employees in this State during the taxable | 21 | | year in which the Credit is awarded, (iii) has an | 22 | | Agreement under this Act on December 14, 2009 (the | 23 | | effective date of Public Act 96-834), and (iv) is in | 24 | | compliance with all provisions of that Agreement; | 25 | | (B) the Taxpayer (i) had an Illinois net loss or an | 26 | | Illinois net loss deduction under Section 207 of the |
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| 1 | | Illinois Income Tax Act for the taxable year in which | 2 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 3 | | full-time employees in this State during the taxable | 4 | | year in which the Credit is awarded, and (iii) has | 5 | | applied for an Agreement within 365 days after December | 6 | | 14, 2009 (the effective date of Public Act 96-834); | 7 | | (C) the Taxpayer (i) had an Illinois net operating | 8 | | loss carryforward under Section 207 of the Illinois | 9 | | Income Tax Act in a taxable year ending during calendar | 10 | | year 2008, (ii) has applied for an Agreement within 150 | 11 | | days after the effective date of this amendatory Act of | 12 | | the 96th General Assembly, (iii) creates at least 400 | 13 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 14 | | in Illinois that would have been at risk of relocation | 15 | | out of Illinois over a 10-year period, and (v) makes a | 16 | | capital investment of at least $75,000,000; | 17 | | (D) the Taxpayer (i) had an Illinois net operating | 18 | | loss carryforward under Section 207 of the Illinois | 19 | | Income Tax Act in a taxable year ending during calendar | 20 | | year 2009, (ii) has applied for an Agreement within 150 | 21 | | days after the effective date of this amendatory Act of | 22 | | the 96th General Assembly, (iii) creates at least 150 | 23 | | new jobs, (iv) retains at least 1,000 jobs in Illinois | 24 | | that would have been at risk of relocation out of | 25 | | Illinois over a 10-year period, and (v) makes a capital | 26 | | investment of at least $57,000,000; or |
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| 1 | | (E) the Taxpayer (i) employed at least 2,500 | 2 | | full-time employees in the State during the year in | 3 | | which the Credit is awarded, (ii) commits to make at | 4 | | least $500,000,000 in combined capital improvements | 5 | | and project costs under the Agreement, (iii) applies | 6 | | for an Agreement between January 1, 2011 and June 30, | 7 | | 2011, (iv) executes an Agreement for the Credit during | 8 | | calendar year 2011, and (v) was incorporated no more | 9 | | than 5 years before the filing of an application for an | 10 | | Agreement. | 11 | | (1.5) The election under this subsection (f) may also | 12 | | be made by a Taxpayer for any Credit awarded pursuant to an | 13 | | agreement that was executed between January 1, 2011 and | 14 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 15 | | the manufacture of inner tubes or tires, or both, from | 16 | | natural and synthetic rubber, (ii) employs a minimum of | 17 | | 2,400 full-time employees in Illinois at the time of | 18 | | application, (iii) creates at least 350 full-time jobs and | 19 | | retains at least 250 full-time jobs in Illinois that would | 20 | | have been at risk of being created or retained outside of | 21 | | Illinois, and (iv) makes a capital investment of at least | 22 | | $200,000,000 at the project location. | 23 | | (1.6) The election under this subsection (f) may also | 24 | | be made by a Taxpayer for any Credit awarded pursuant to an | 25 | | agreement that was executed within 150 days after the | 26 | | effective date of this amendatory Act of the 97th General |
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| 1 | | Assembly, if the Taxpayer (i) is primarily engaged in the | 2 | | operation of a discount department store, (ii) maintains | 3 | | its corporate headquarters in Illinois, (iii) employs a | 4 | | minimum of 4,250 full-time employees at its corporate | 5 | | headquarters in Illinois at the time of application, (iv) | 6 | | retains at least 4,250 full-time jobs in Illinois that | 7 | | would have been at risk of being relocated outside of | 8 | | Illinois, (v) had a minimum of $40,000,000,000 in total | 9 | | revenue in 2010, and (vi) makes a capital investment of at | 10 | | least $300,000,000 at the project location. | 11 | | (1.7) Notwithstanding any other provision of law, the | 12 | | election under this subsection (f) may also be made by a | 13 | | Taxpayer for any Credit awarded pursuant to an agreement | 14 | | that was executed or applied for on or after July 1, 2011 | 15 | | and on or before March 31, 2012, if the Taxpayer is | 16 | | primarily engaged in the manufacture of original and | 17 | | aftermarket filtration parts and products for automobiles, | 18 | | motor vehicles, light duty motor vehicles, light trucks and | 19 | | utility vehicles, and heavy duty trucks, (ii) employs a | 20 | | minimum of 1,000 full-time employees in Illinois at the | 21 | | time of application, (iii) creates at least 250 full-time | 22 | | jobs in Illinois, (iv) relocates its corporate | 23 | | headquarters to Illinois from another state, and (v) makes | 24 | | a capital investment of at least $4,000,000 at the project | 25 | | location. | 26 | | (2) An election under this subsection shall allow the |
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| 1 | | credit to be taken against payments otherwise due under | 2 | | Section 704A of the Illinois Income Tax Act during the | 3 | | first calendar year beginning after the end of the taxable | 4 | | year in which the credit is awarded under this Act. | 5 | | (3) The election shall be made in the form and manner | 6 | | required by the Illinois Department of Revenue and, once | 7 | | made, shall be irrevocable. | 8 | | (4) If a Taxpayer who meets the requirements of | 9 | | subparagraph (A) of paragraph (1) of this subsection (f) | 10 | | elects to claim the Credit against its withholdings as | 11 | | provided in this subsection (f), then, on and after the | 12 | | date of the election, the terms of the Agreement between | 13 | | the Taxpayer and the Department may not be further amended | 14 | | during the term of the Agreement. | 15 | | (5) With respect to Agreements entered into on or after | 16 | | the effective date of this amendatory Act of the 98th | 17 | | General Assembly, no Taxpayer may make an election under | 18 | | this subsection (f) unless all of the following conditions | 19 | | are met: | 20 | | (A) The General Assembly authorizes that election | 21 | | by law. | 22 | | (B) The Taxpayer applies with the Department for a | 23 | | Credit prior to the date the General Assembly | 24 | | authorizes the election. | 25 | | (C) The Taxpayer (i) agrees to hire a specified | 26 | | number of New Employees at a project location in a |
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| 1 | | geographic area of high poverty or high unemployment or | 2 | | (ii) agrees to hire a specified number of New Employees | 3 | | at least 65% of whom reside in a geographic area of | 4 | | high poverty or high unemployment; the number of New | 5 | | Employees hired under item (ii) shall be verified | 6 | | annually by the Department through payroll information | 7 | | submitted by the Taxpayer; for the purposes of this | 8 | | subparagraph (C), an employee who is retained by the | 9 | | Taxpayer is not considered a New Employee. | 10 | | (D) The Taxpayer files a statement with the | 11 | | Department at the time of the application for the | 12 | | Credit containing the following information from the | 13 | | Taxpayer's Illinois income tax return for the 2 years | 14 | | immediately preceding the date of the application; in | 15 | | addition, the Taxpayer shall file an additional | 16 | | statement with the Department containing the same | 17 | | information for the first taxable year with respect to | 18 | | which an election is made under this subsection (f) and | 19 | | for each subsequent tax year covered by the Agreement: | 20 | | (i) the Taxpayer's base income, as calculated | 21 | | under Section 203 of the Illinois Income Tax Act; | 22 | | (ii) the apportionment factor to the State for | 23 | | the Taxpayer; | 24 | | (iii) the total business income of the | 25 | | Taxpayer apportioned to the State; | 26 | | (iv) the Illinois net operating loss deduction |
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| 1 | | for the Taxpayer, if any; | 2 | | (v) the total non-business income of the | 3 | | Taxpayer and the amount of the Taxpayer's | 4 | | non-business income allocated to the State; | 5 | | (vi) the net income of the Taxpayer; | 6 | | (vii) the Taxpayer's total State income tax | 7 | | liability before credits; | 8 | | (viii) the Taxpayer's net income tax | 9 | | liability; | 10 | | (ix) the Taxpayer's total personal property | 11 | | tax replacement tax liability before credits; | 12 | | (x) the Taxpayer's net personal property tax | 13 | | replacement tax liability; and | 14 | | (xi) tax credits claimed by the Taxpayer, with | 15 | | each credit individually enumerated. | 16 | | Each additional statement required under this | 17 | | subparagraph (D) for a taxable year shall be filed no | 18 | | later than the earlier of 30 days after (i) the | 19 | | Taxpayer files its Illinois income tax return for that | 20 | | taxable year, (ii) the due date (including extensions) | 21 | | for the filing of that return, or (iii) in the case of | 22 | | the additional statement covering the taxable year in | 23 | | which an election is made, the date the election is | 24 | | made under this subsection (f). | 25 | | (E) The Taxpayer files a statement with the | 26 | | Department reporting any changes to the information |
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| 1 | | required to be reported under subparagraph (D) that | 2 | | were reported by the Taxpayer on an amended return for | 3 | | the taxable year or that were made by the Department of | 4 | | Revenue; the report required under this subparagraph | 5 | | (E) must be filed within 30 days after the Taxpayer | 6 | | files the amended return or within 30 days after the | 7 | | date on which all proceedings in court for review of | 8 | | the changes made by the Department of Revenue have | 9 | | terminated or the time for taking thereof has expired | 10 | | without such proceedings being instituted. | 11 | | (F) The Agreement includes a consent by the | 12 | | Taxpayer to allow the Department to confirm with the | 13 | | Department of Revenue the accuracy of the information | 14 | | required to be reported under subparagraphs (D) and | 15 | | (E). | 16 | | (g) A pass-through entity that has been awarded a credit | 17 | | under this Act, its shareholders, or its partners may treat | 18 | | some or all of the credit awarded pursuant to this Act as a tax | 19 | | payment for purposes of the Illinois Income Tax Act. The term | 20 | | "tax payment" means a payment as described in Article 6 or | 21 | | Article 8 of the Illinois Income Tax Act or a composite payment | 22 | | made by a pass-through entity on behalf of any of its | 23 | | shareholders or partners to satisfy such shareholders' or | 24 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 25 | | Section 201 of the Illinois Income Tax Act. In no event shall | 26 | | the amount of the award credited pursuant to this Act exceed |
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| 1 | | the Illinois income tax liability of the pass-through entity or | 2 | | its shareholders or partners for the taxable year. | 3 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 4 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 5 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| 6 | | (35 ILCS 10/5-20)
| 7 | | Sec. 5-20. Application for a project to create and retain | 8 | | new jobs.
| 9 | | (a) Any Taxpayer proposing a project located or planned to | 10 | | be located in
Illinois may request consideration
for | 11 | | designation of its project, by formal written letter of request | 12 | | or by
formal application to the Department,
in which the | 13 | | Applicant states its intent to make at least a specified level | 14 | | of
investment and
intends to hire or retain a
specified number | 15 | | of full-time employees at a designated location in Illinois.
As
| 16 | | circumstances require, the
Department may require a formal | 17 | | application from an Applicant and a formal
letter of request | 18 | | for
assistance. Each application must contain an affidavit | 19 | | signed by the Taxpayer's chief executive officer or chief | 20 | | financial officer, or an individual holding an equivalent | 21 | | position in the organization, stating that, but for the Credit, | 22 | | the Taxpayer would not locate the project in the State.
| 23 | | (b) In order to qualify for Credits under this Act, an | 24 | | Applicant's project
must:
| 25 | | (1) except as provided in paragraphs (2) and (3), |
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| 1 | | involve an investment of at least $5,000,000 in capital | 2 | | improvements
to be placed in service and to employ at least | 3 | | 25 New Employees within the
State as a direct result of the | 4 | | project;
| 5 | | (2) involve an investment of at least an amount (to be | 6 | | expressly specified
by the Department and the Committee) in | 7 | | capital improvements to be placed in
service and will | 8 | | employ at least an amount (to be expressly specified by the
| 9 | | Department and the Committee) of New Employees
within the | 10 | | State, provided that the Department and the Committee have
| 11 | | determined that the project will provide a substantial | 12 | | economic benefit to the
State; or | 13 | | (3) if the applicant has 100 or fewer employees, then | 14 | | the applicant is not subject to the capital improvement | 15 | | requirements set forth in paragraph (1) of this subsection, | 16 | | but the applicant's project must involve an investment of | 17 | | at least $1,000,000 in capital improvements to be placed in | 18 | | service and to employ at least 5 New Employees within the | 19 | | State as a direct result of the project.
| 20 | | (c) After receipt of an application, the Department may | 21 | | enter into an
Agreement with the Applicant if the
application | 22 | | is accepted in accordance with Section 5-25.
| 23 | | (Source: P.A. 93-882, eff. 1-1-05.)
| 24 | | (35 ILCS 10/5-50)
| 25 | | Sec. 5-50. Contents of Agreements with Applicants. The |
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| 1 | | Department shall
enter into an Agreement with an
Applicant that | 2 | | is awarded a Credit under this Act. The Agreement
must include | 3 | | all of the following:
| 4 | | (1) A detailed description of the project that is the | 5 | | subject of the
Agreement, including the location and amount | 6 | | of the investment and jobs created
or retained.
| 7 | | (2) The duration of the Credit and the first taxable | 8 | | year for which
the Credit may be claimed.
| 9 | | (3) The Credit amount that will be allowed for each | 10 | | taxable year.
| 11 | | (4) A requirement that the Taxpayer shall maintain | 12 | | operations at the
project location that shall be stated as | 13 | | a minimum number of years not to
exceed 10.
| 14 | | (5) A specific method for determining the number of New | 15 | | Employees
employed during a taxable year.
| 16 | | (6) A requirement that the Taxpayer shall annually | 17 | | report to the
Department the number of New Employees,
the | 18 | | home addresses of any retained employees, the Incremental | 19 | | Income Tax
withheld in connection with the New Employees | 20 | | and retained employees , and any other
information the | 21 | | Director needs to perform the Director's duties under
this | 22 | | Act.
| 23 | | (7) A requirement that the Director is authorized to | 24 | | verify with the
appropriate State agencies the amounts | 25 | | reported under paragraph
(6), and after doing so shall | 26 | | issue a certificate to the Taxpayer
stating that the |
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| 1 | | amounts have been verified.
| 2 | | (8) A requirement that the Taxpayer shall provide | 3 | | written
notification to the Director not more than 30
days | 4 | | after the Taxpayer makes or receives a proposal that would
| 5 | | transfer the Taxpayer's State tax liability obligations to | 6 | | a
successor Taxpayer.
| 7 | | (9) A detailed description of the number of New | 8 | | Employees to be
hired, and the occupation and
payroll of | 9 | | the full-time jobs to be created or retained as a result of | 10 | | the
project.
| 11 | | (10) The minimum investment the business enterprise | 12 | | will make in
capital improvements, the time period
for | 13 | | placing the property in service, and the designated | 14 | | location in Illinois
for the investment.
| 15 | | (11) A requirement that the Taxpayer shall provide | 16 | | written
notification to the Director and
the Committee not | 17 | | more than 30 days after the Taxpayer determines
that the | 18 | | minimum
job creation or retention, employment payroll, or | 19 | | investment no longer is being
or will be achieved or
| 20 | | maintained as set forth in the terms and conditions of the
| 21 | | Agreement.
| 22 | | (12) A provision that, if the total number of New | 23 | | Employees falls
below a specified level, the
allowance of | 24 | | Credit shall be suspended until the number of New
Employees | 25 | | equals or exceeds
the Agreement amount.
| 26 | | (13) A detailed description of the items for which the |
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| 1 | | costs incurred by
the Taxpayer will be included
in the | 2 | | limitation on the Credit provided in Section 5-30.
| 3 | | (13.5) A provision that, if the Taxpayer never meets | 4 | | either the investment or job creation and retention | 5 | | requirements specified in the Agreement during the entire | 6 | | 5-year period beginning on the first day of the first | 7 | | taxable year in which the Agreement is executed and ending | 8 | | on the last day of the fifth taxable year after the | 9 | | Agreement is executed, then the Agreement is automatically | 10 | | terminated on the last day of the fifth taxable year after | 11 | | the Agreement is executed and the Taxpayer is not entitled | 12 | | to the award of any credits for any of that 5-year period.
| 13 | | (14) Any other performance conditions or contract | 14 | | provisions as the
Department determines are
appropriate.
| 15 | | The Department shall post on its website (i) the terms of | 16 | | each Agreement entered into under this Act on or after the | 17 | | effective date of this amendatory Act of the 97th General | 18 | | Assembly and (ii) the tax information provided to the | 19 | | Department under subparagraphs (D) and (E) of paragraph (5) of | 20 | | subsection (f) . | 21 | | (Source: P.A. 97-2, eff. 5-6-11; 97-749, eff. 7-6-12.)
| 22 | | Section 10. The Illinois Income Tax Act is amended by | 23 | | changing Section 917 as follows:
| 24 | | (35 ILCS 5/917) (from Ch. 120, par. 9-917)
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| 1 | | Sec. 917. Confidentiality and information sharing.
| 2 | | (a) Confidentiality.
Except as provided in this Section, | 3 | | all information received by the Department
from returns filed | 4 | | under this Act, or from any investigation conducted under
the | 5 | | provisions of this Act, shall be confidential, except for | 6 | | official purposes
within the Department or pursuant to official | 7 | | procedures for collection
of any State tax or pursuant to an | 8 | | investigation or audit by the Illinois
State Scholarship | 9 | | Commission of a delinquent student loan or monetary award
or | 10 | | enforcement of any civil or criminal penalty or sanction
| 11 | | imposed by this Act or by another statute imposing a State tax, | 12 | | and any
person who divulges any such information in any manner, | 13 | | except for such
purposes and pursuant to order of the Director | 14 | | or in accordance with a proper
judicial order, shall be guilty | 15 | | of a Class A misdemeanor. However, the
provisions of this | 16 | | paragraph are not applicable to information furnished
to (i) | 17 | | the Department of Healthcare and Family Services (formerly
| 18 | | Department of Public Aid), State's Attorneys, and the Attorney | 19 | | General for child support enforcement purposes and (ii) a | 20 | | licensed attorney representing the taxpayer where an appeal or | 21 | | a protest
has been filed on behalf of the taxpayer. If it is | 22 | | necessary to file information obtained pursuant to this Act in | 23 | | a child support enforcement proceeding, the information shall | 24 | | be filed under seal.
| 25 | | (b) Public information. Nothing contained in this Act shall | 26 | | prevent
the Director from publishing or making available to the |
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| 1 | | public the names
and addresses of persons filing returns under | 2 | | this Act, or from publishing
or making available reasonable | 3 | | statistics concerning the operation of the
tax wherein the | 4 | | contents of returns are grouped into aggregates in such a
way | 5 | | that the information contained in any individual return shall | 6 | | not be
disclosed.
| 7 | | (c) Governmental agencies. The Director may make available | 8 | | to the
Secretary of the Treasury of the United States or his | 9 | | delegate, or the
proper officer or his delegate of any other | 10 | | state imposing a tax upon or
measured by income, for | 11 | | exclusively official purposes, information received
by the | 12 | | Department in the administration of this Act, but such | 13 | | permission
shall be granted only if the United States or such | 14 | | other state, as the case
may be, grants the Department | 15 | | substantially similar privileges. The Director
may exchange | 16 | | information with the Department of Healthcare and Family | 17 | | Services and the
Department of Human Services (acting as | 18 | | successor to the Department of Public
Aid under the Department | 19 | | of Human Services Act) for
the purpose of verifying sources and | 20 | | amounts of income and for other purposes
directly connected | 21 | | with the administration of this Act, the Illinois Public Aid | 22 | | Code, and any other health benefit program administered by the | 23 | | State. The Director may exchange information with the Director | 24 | | of
the Department of Employment Security for the purpose of | 25 | | verifying sources
and amounts of income and for other purposes | 26 | | directly connected with the
administration of this Act and Acts |
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| 1 | | administered by the Department of
Employment
Security.
The | 2 | | Director may make available to the Illinois Workers' | 3 | | Compensation Commission
information regarding employers for | 4 | | the purpose of verifying the insurance
coverage required under | 5 | | the Workers' Compensation Act and Workers'
Occupational | 6 | | Diseases Act. The Director may exchange information with the | 7 | | Illinois Department on Aging for the purpose of verifying | 8 | | sources and amounts of income for purposes directly related to | 9 | | confirming eligibility for participation in the programs of | 10 | | benefits authorized by the Senior Citizens and Disabled Persons | 11 | | Property Tax Relief and Pharmaceutical Assistance Act.
| 12 | | The Director may make available to any State agency, | 13 | | including the
Illinois Supreme Court, which licenses persons to | 14 | | engage in any occupation,
information that a person licensed by | 15 | | such agency has failed to file
returns under this Act or pay | 16 | | the tax, penalty and interest shown therein,
or has failed to | 17 | | pay any final assessment of tax, penalty or interest due
under | 18 | | this Act.
The Director may make available to any State agency, | 19 | | including the Illinois
Supreme
Court, information regarding | 20 | | whether a bidder, contractor, or an affiliate of a
bidder or
| 21 | | contractor has failed to file returns under this Act or pay the | 22 | | tax, penalty,
and interest
shown therein, or has failed to pay | 23 | | any final assessment of tax, penalty, or
interest due
under | 24 | | this Act, for the limited purpose of enforcing bidder and | 25 | | contractor
certifications.
For purposes of this Section, the | 26 | | term "affiliate" means any entity that (1)
directly,
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| 1 | | indirectly, or constructively controls another entity, (2) is | 2 | | directly,
indirectly, or
constructively controlled by another | 3 | | entity, or (3) is subject to the control
of
a common
entity. | 4 | | For purposes of this subsection (a), an entity controls another | 5 | | entity
if
it owns,
directly or individually, more than 10% of | 6 | | the voting securities of that
entity.
As used in
this | 7 | | subsection (a), the term "voting security" means a security | 8 | | that (1)
confers upon the
holder the right to vote for the | 9 | | election of members of the board of directors
or similar
| 10 | | governing body of the business or (2) is convertible into, or | 11 | | entitles the
holder to receive
upon its exercise, a security | 12 | | that confers such a right to vote. A general
partnership
| 13 | | interest is a voting security.
| 14 | | The Director may make available to any State agency, | 15 | | including the
Illinois
Supreme Court, units of local | 16 | | government, and school districts, information
regarding
| 17 | | whether a bidder or contractor is an affiliate of a person who | 18 | | is not
collecting
and
remitting Illinois Use taxes, for the | 19 | | limited purpose of enforcing bidder and
contractor
| 20 | | certifications.
| 21 | | The Director may also make available to the Secretary of | 22 | | State
information that a corporation which has been issued a | 23 | | certificate of
incorporation by the Secretary of State has | 24 | | failed to file returns under
this Act or pay the tax, penalty | 25 | | and interest shown therein, or has failed
to pay any final | 26 | | assessment of tax, penalty or interest due under this Act.
An |
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| 1 | | assessment is final when all proceedings in court for
review of | 2 | | such assessment have terminated or the time for the taking
| 3 | | thereof has expired without such proceedings being instituted. | 4 | | For
taxable years ending on or after December 31, 1987, the | 5 | | Director may make
available to the Director or principal | 6 | | officer of any Department of the
State of Illinois, information | 7 | | that a person employed by such Department
has failed to file | 8 | | returns under this Act or pay the tax, penalty and
interest | 9 | | shown therein. For purposes of this paragraph, the word
| 10 | | "Department" shall have the same meaning as provided in Section | 11 | | 3 of the
State Employees Group Insurance Act of 1971.
| 12 | | The Director may provide information to the Department of | 13 | | Commerce and Economic Opportunity for the purpose of confirming | 14 | | information provided by a taxpayer under subparagraphs (D) and | 15 | | (E) of item (5) of subsection (f) of Section 5-15 of the | 16 | | Economic Development for a Growing Economy Tax Credit Act if | 17 | | the taxpayer consents to that disclosure in the Agreement under | 18 | | that Act. | 19 | | (d) The Director shall make available for public
inspection | 20 | | in the Department's principal office and for publication, at | 21 | | cost,
administrative decisions issued on or after January
1, | 22 | | 1995. These decisions are to be made available in a manner so | 23 | | that the
following
taxpayer information is not disclosed:
| 24 | | (1) The names, addresses, and identification numbers | 25 | | of the taxpayer,
related entities, and employees.
| 26 | | (2) At the sole discretion of the Director, trade |
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| 1 | | secrets
or other confidential information identified as | 2 | | such by the taxpayer, no later
than 30 days after receipt | 3 | | of an administrative decision, by such means as the
| 4 | | Department shall provide by rule.
| 5 | | The Director shall determine the
appropriate extent of the
| 6 | | deletions allowed in paragraph (2). In the event the taxpayer | 7 | | does not submit
deletions,
the Director shall make only the | 8 | | deletions specified in paragraph (1).
| 9 | | The Director shall make available for public inspection and | 10 | | publication an
administrative decision within 180 days after | 11 | | the issuance of the
administrative
decision. The term | 12 | | "administrative decision" has the same meaning as defined in
| 13 | | Section 3-101 of Article III of the Code of Civil Procedure. | 14 | | Costs collected
under this Section shall be paid into the Tax | 15 | | Compliance and Administration
Fund.
| 16 | | (e) Nothing contained in this Act shall prevent the | 17 | | Director from
divulging
information to any person pursuant to a | 18 | | request or authorization made by the
taxpayer, by an authorized | 19 | | representative of the taxpayer, or, in the case of
information | 20 | | related to a joint return, by the spouse filing the joint | 21 | | return
with the taxpayer.
| 22 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1501, eff. 1-25-11.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.".
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