Full Text of HB3318 101st General Assembly
HB3318ham002 101ST GENERAL ASSEMBLY | Rep. Mark L. Walker Filed: 3/6/2020
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| 1 | | AMENDMENT TO HOUSE BILL 3318
| 2 | | AMENDMENT NO. ______. Amend House Bill 3318 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Department of Commerce and Economic | 5 | | Opportunity Law of the
Civil Administrative Code of Illinois is | 6 | | amended by adding Section 605-470 as follows: | 7 | | (20 ILCS 605/605-470 new) | 8 | | Sec. 605-470. Online central repository. The Department | 9 | | shall provide on its website a central repository for new and | 10 | | existing businesses that shall contain all permitting, | 11 | | licensing, and registration forms and documents needed to | 12 | | conduct business in Illinois, as well as content about how to | 13 | | start a business, industry-specific programming, connections | 14 | | to mentors, and referrals to investors. When submitting | 15 | | applications for tax credits administered by the Department, | 16 | | applicants may choose to allow the Department to share their |
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| 1 | | contact information on the central repository. The Department | 2 | | may adopt rules necessary to implement this Section. | 3 | | Section 10. The Illinois Enterprise Zone Act is amended by | 4 | | changing Sections 5.4 and 8.1 as follows:
| 5 | | (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
| 6 | | Sec. 5.4.
Amendment and Decertification of Enterprise
| 7 | | Zones.
| 8 | | (a) The terms of a certified enterprise zone designating | 9 | | ordinance
may be amended to
| 10 | | (i) alter the boundaries of the Enterprise Zone, or
| 11 | | (ii) expand, limit or repeal tax incentives or benefits | 12 | | provided in
the ordinance, or
| 13 | | (iii) alter the termination date of the zone, or
| 14 | | (iv) make technical corrections in the enterprise zone | 15 | | designating
ordinance; but such amendment shall not be | 16 | | effective unless the
Department issues an amended | 17 | | certificate for the Enterprise Zone, approving
the amended | 18 | | designating ordinance. Upon the adoption of any ordinance
| 19 | | amending or repealing the
terms of a certified enterprise | 20 | | zone designating ordinance, the municipality
or county | 21 | | shall promptly file with the Department an application for | 22 | | approval
thereof, containing substantially the same | 23 | | information as required for an
application under Section | 24 | | 5.1 insofar as material to the proposed changes.
The |
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| 1 | | municipality or county must hold a public hearing on the | 2 | | proposed changes
as specified in Section 5 and, if the | 3 | | amendment is to effectuate the
limitation of tax abatements | 4 | | under Section 5.4.1, then the public notice of the
hearing | 5 | | shall state that property that is in both the enterprise | 6 | | zone and a
redevelopment project area may not receive tax | 7 | | abatements unless within 60 days
after the adoption of the | 8 | | amendment to the designating ordinance the
municipality | 9 | | has determined that eligibility for tax abatements has been
| 10 | | established,
| 11 | | (v) include an area within another municipality or | 12 | | county as part of
the designated enterprise zone provided | 13 | | the requirements of Section 4 are
complied with, or
| 14 | | (vi) effectuate the limitation of tax abatements under | 15 | | Section
5.4.1.
| 16 | | (b) The Department shall approve or disapprove a proposed | 17 | | amendment to
a certified enterprise zone within 90 days of its | 18 | | receipt of the application
from the municipality or county. The | 19 | | Department may not approve changes
in a Zone which are not in | 20 | | conformity with this Act, as now or hereafter
amended, or with | 21 | | other applicable laws. If the Department issues an amended
| 22 | | certificate for an Enterprise Zone, the amended certificate, | 23 | | together with
the amended zone designating ordinance, shall be | 24 | | filed, recorded and
transmitted as provided in Section 5.3.
| 25 | | (c) An Enterprise Zone may be decertified by joint action | 26 | | of the
Department and the designating county or municipality in |
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| 1 | | accordance with this
Section.
The designating county or | 2 | | municipality shall conduct at least one public
hearing within | 3 | | the zone prior to its adoption of an ordinance of
| 4 | | de-designation. The mayor of the designating municipality or | 5 | | the chairman of
the county
board of the designating county | 6 | | shall execute a joint decertification
agreement with the | 7 | | Department. A decertification of an Enterprise Zone shall
not
| 8 | | become effective until at least 6 months after the execution of | 9 | | the
decertification
agreement, which shall be filed in the | 10 | | office of the Secretary of State.
| 11 | | (d) An Enterprise Zone may be decertified for cause by
the | 12 | | Department in accordance with this Section. Prior to
| 13 | | decertification: (1) the Department shall notify the chief | 14 | | elected official
of the designating county or municipality in | 15 | | writing of the specific
deficiencies which provide cause for | 16 | | decertification; (2) the Department
shall place the | 17 | | designating county or municipality on probationary status for
| 18 | | at least 6 months during which time corrective action may be
| 19 | | achieved in the enterprise zone by the designating county or | 20 | | municipality;
and, (3) the Department
shall conduct at least | 21 | | one public hearing within the zone. If such
corrective action | 22 | | is not achieved during the probationary period, the
Department | 23 | | shall issue an amended certificate
signed by the Director of | 24 | | the Department decertifying the enterprise zone,
which | 25 | | certificate shall be filed in the
office of the Secretary of | 26 | | State. A certified copy of the amended
enterprise zone |
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| 1 | | certificate, or a duplicate original thereof, shall be
recorded | 2 | | in the office of recorder of the county in which the enterprise
| 3 | | zone lies, and shall be provided to the chief elected official | 4 | | of the
designating county or municipality. Decertification of | 5 | | an Enterprise Zone
shall not become effective until 60 days | 6 | | after the date of filing.
| 7 | | (d-5) The Department shall decertify any Enterprise Zone | 8 | | that fails to report any capital investment, job creation or | 9 | | retention, or State tax expenditures for 3 consecutive calendar | 10 | | years. Prior to decertification: (1) the Department shall | 11 | | notify the chief elected official of the designating county or | 12 | | municipality in writing of the specific deficiencies which | 13 | | provide cause for decertification; (2) the Department shall | 14 | | place the designating county or municipality on probationary | 15 | | status for at least 6 months during which time corrective | 16 | | action may be achieved in the Enterprise Zone by the | 17 | | designating county or municipality; and (3) the Department | 18 | | shall conduct at least one public hearing within the Zone. If | 19 | | such corrective action is not achieved during the probationary | 20 | | period, the Department shall issue an amended certificate | 21 | | signed by the Director of the Department decertifying the | 22 | | Enterprise Zone as of the scheduled termination date of the | 23 | | then-current designation. If the decertified Zone was approved | 24 | | and designated after the 101st General Assembly and has been in | 25 | | existence for less than 15 years, such Zone shall not be | 26 | | eligible for an additional 10-year designation after the |
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| 1 | | expiration date of the original Zone set forth in subsection | 2 | | (c) of Section 5.3. Further, if such corrective action is not | 3 | | achieved during the probationary period provided for in this | 4 | | Section, following such probationary period the Zone becomes | 5 | | available for a different area to compete for designation. | 6 | | (e) In the event of a decertification, or an amendment | 7 | | reducing the length
of the term or the area of an Enterprise | 8 | | Zone or the adoption of an ordinance
reducing or eliminating | 9 | | tax benefits in an Enterprise Zone, all benefits
previously | 10 | | extended within the Zone pursuant to this Act or pursuant to
| 11 | | any other Illinois law providing benefits specifically to or | 12 | | within Enterprise
Zones shall remain in effect for the original | 13 | | stated term of the Enterprise
Zone, with respect to business | 14 | | enterprises within the Zone on the effective
date of such | 15 | | decertification or amendment, and with respect to individuals
| 16 | | participating in urban homestead
programs under this Act.
| 17 | | (f) Except as otherwise provided in Section 5.4.1, with | 18 | | respect to
business enterprises (or expansions thereof) which
| 19 | | are proposed or under development within a Zone at the time of | 20 | | a
decertification
or an amendment reducing the length of the | 21 | | term of the Zone, or excluding
from the Zone area the site of | 22 | | the proposed enterprise, or an ordinance
reducing or | 23 | | eliminating tax benefits in a Zone, such business enterprise
| 24 | | shall be entitled to the benefits previously applicable within | 25 | | the Zone
for the original stated term of the Zone, if the | 26 | | business enterprise
establishes:
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| 1 | | (i) that the proposed business enterprise or expansion
| 2 | | has been committed
to be located within the Zone;
| 3 | | (ii) that substantial and binding financial | 4 | | obligations have been made
towards the development of such | 5 | | enterprise; and
| 6 | | (iii) that such commitments have been made in | 7 | | reasonable reliance on
the benefits and programs which were | 8 | | to have been applicable to the enterprise
by reason of the | 9 | | Zone, including in the case of a reduction in term of a
| 10 | | zone, the original length of the term.
| 11 | | In declaratory judgment actions under this paragraph, the | 12 | | Department and
the designating municipality or county shall be | 13 | | necessary parties defendant.
| 14 | | (Source: P.A. 90-258, eff. 7-30-97.)
| 15 | | (20 ILCS 655/8.1) | 16 | | Sec. 8.1. Accounting. | 17 | | (a) Any business receiving tax incentives due to its | 18 | | location within an Enterprise Zone or its designation as a High | 19 | | Impact Business must annually report to the Department of | 20 | | Revenue information reasonably required by the Department of | 21 | | Revenue to enable the Department to verify and calculate the | 22 | | total Enterprise Zone or High Impact Business tax benefits for | 23 | | property taxes and taxes imposed by the State that are received | 24 | | by the business, broken down by incentive category and | 25 | | enterprise zone, if applicable. Reports will be due no later |
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| 1 | | than May 31 of each year and shall cover the previous calendar | 2 | | year. The first report will be for the 2012 calendar year and | 3 | | will be due no later than May 31, 2013. Failure to report data | 4 | | may result in ineligibility to receive incentives. To the | 5 | | extent that a business receiving tax incentives has obtained an | 6 | | Enterprise Zone Building Materials Exemption Certificate or a | 7 | | High Impact Business Building Materials Exemption Certificate, | 8 | | that business is required to report those building materials | 9 | | exemption benefits only under subsection (a-5) of this Section. | 10 | | No additional reporting for those building materials exemption | 11 | | benefits is required under this subsection (a). In addition, if | 12 | | the Department determines that 60% or more of the businesses | 13 | | receiving tax incentives because of their location within a | 14 | | particular Enterprise Zone failed to submit the information | 15 | | required under this subsection (a) to the Department in any | 16 | | calendar year, then the Enterprise Zone may be decertified by | 17 | | the Department. The Department, in consultation with the | 18 | | Department of Revenue, is authorized to adopt rules governing | 19 | | ineligibility to receive exemptions, including the length of | 20 | | ineligibility. Factors to be considered in determining whether | 21 | | a business is ineligible shall include, but are not limited to, | 22 | | prior compliance with the reporting requirements, cooperation | 23 | | in discontinuing and correcting violations, the extent of the | 24 | | violation, and whether the violation was willful or | 25 | | inadvertent. | 26 | | (a-5) Each contractor or other entity that has been issued |
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| 1 | | an Enterprise Zone Building Materials Exemption Certificate | 2 | | under Section 5k of the Retailers' Occupation Tax Act or a High | 3 | | Impact Business Building Materials Exemption Certificate under | 4 | | Section 5l of the Retailers' Occupation Tax Act shall annually | 5 | | report to the Department of Revenue the total value of the | 6 | | Enterprise Zone or High Impact Business building materials | 7 | | exemption from State taxes. Reports shall contain information | 8 | | reasonably required by the Department of Revenue to enable it | 9 | | to verify and calculate the total tax benefits for taxes | 10 | | imposed by the State, and shall be broken down by Enterprise | 11 | | Zone. Reports are due no later than May 31 of each year and | 12 | | shall cover the previous calendar year. The first report will | 13 | | be for the 2013 calendar year and will be due no later than May | 14 | | 31, 2014. Failure to report data may result in revocation of | 15 | | the Enterprise Zone Building Materials Exemption Certificate | 16 | | or High Impact Business Building Materials Exemption | 17 | | Certificate issued to the contractor or other entity. | 18 | | The Department of Revenue is authorized to adopt rules | 19 | | governing revocation determinations, including the length of | 20 | | revocation. Factors to be considered in revocations shall | 21 | | include, but are not limited to, prior compliance with the | 22 | | reporting requirements, cooperation in discontinuing and | 23 | | correcting violations, and whether the certificate was used | 24 | | unlawfully during the preceding year. | 25 | | (b) Each person required to file a return under the Gas | 26 | | Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise |
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| 1 | | Tax Act, or the Telecommunications Excise Tax Act shall file, | 2 | | on or before May 31 of each year, a report with the Department | 3 | | of Revenue, in the manner and form required by the Department | 4 | | of Revenue, containing information reasonably required by the | 5 | | Department of Revenue to enable the Department of Revenue to | 6 | | calculate the amount of the deduction for taxes imposed by the | 7 | | State that is taken under each Act, respectively, due to the | 8 | | location of a business in an Enterprise Zone or its designation | 9 | | as a High Impact Business. The report shall be itemized by | 10 | | business and the business location address. | 11 | | (c) Employers shall report their job creation, retention, | 12 | | and capital investment numbers within the zone annually to the | 13 | | Department of Revenue no later than May 31 of each calendar | 14 | | year. High Impact Businesses shall report their job creation, | 15 | | retention, and capital investment numbers to the Department of | 16 | | Revenue no later than May 31 of each year. | 17 | | (d) The Department of Revenue will aggregate and collect | 18 | | the tax, job, and capital investment data by Enterprise Zone | 19 | | and High Impact Business and report this information, formatted | 20 | | to exclude company-specific proprietary information, to the | 21 | | Department and the Board by August 1, 2013, and by August 1 of | 22 | | every calendar year thereafter. The Department will include | 23 | | this information in their required reports under Section 6 of | 24 | | this Act. The Board shall consider this information during the | 25 | | reviews required under subsection (d-5) of Section 5.4 of this | 26 | | Act and subsection (c) of Section 5.3 of this Act. |
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| 1 | | (e) The Department of Revenue, in its discretion, may | 2 | | require that the reports filed under this Section be submitted | 3 | | electronically. | 4 | | (f) The Department of Revenue shall have the authority to | 5 | | adopt rules as are reasonable and necessary to implement the | 6 | | provisions of this Section.
| 7 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.) | 8 | | Section 15. The Illinois Income Tax Act is amended by | 9 | | changing Section 220 and by adding Sections 232 and 233 as | 10 | | follows: | 11 | | (35 ILCS 5/220) | 12 | | Sec. 220. Angel investment credit. | 13 | | (a) As used in this Section: | 14 | | "Applicant" means a corporation, partnership, limited | 15 | | liability company, or a natural person that makes an investment | 16 | | in a qualified new business venture. The term "applicant" does | 17 | | not include (i) a corporation, partnership, limited liability | 18 | | company, or a natural person who has a direct or indirect | 19 | | ownership interest of at least 33% 51% in the profits, capital, | 20 | | or value of the qualified new business venture receiving the | 21 | | investment or (ii) a related member. | 22 | | "Claimant" means an applicant certified by the Department | 23 | | who files a claim for a credit under this Section. | 24 | | "Department" means the Department of Commerce and Economic |
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| 1 | | Opportunity. | 2 | | "Investment" means money (or its equivalent) given to a | 3 | | qualified new business venture, at a risk of loss, in | 4 | | consideration for an equity interest of the qualified new | 5 | | business venture. The Department may adopt rules to permit | 6 | | certain forms of contingent equity investments to be considered | 7 | | eligible for a tax credit under this Section. | 8 | | "Qualified new business venture" means a business that is | 9 | | registered with the Department under this Section. | 10 | | "Related member" means a person that, with respect to the
| 11 | | applicant, is any one of the following: | 12 | | (1) An individual, if the individual and the members of | 13 | | the individual's family (as defined in Section 318 of the | 14 | | Internal Revenue Code) own directly, indirectly,
| 15 | | beneficially, or constructively, in the aggregate, at | 16 | | least 50% of the value of the outstanding profits, capital, | 17 | | stock, or other ownership interest in the qualified new | 18 | | business venture that is the recipient of the applicant's | 19 | | investment. | 20 | | (2) A partnership, estate, or trust and any partner or | 21 | | beneficiary, if the partnership, estate, or trust and its | 22 | | partners or beneficiaries own directly, indirectly, | 23 | | beneficially, or constructively, in the aggregate, at | 24 | | least 50% of the profits, capital, stock, or other | 25 | | ownership interest in the qualified new business venture | 26 | | that is the recipient of the applicant's investment. |
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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 under the attribution rules
| 4 | | of Section 318 of the Internal Revenue Code, if the | 5 | | applicant and any other related member own, in the | 6 | | aggregate, directly, indirectly, beneficially, or | 7 | | constructively, at least 50% of the value of the | 8 | | outstanding stock of the qualified new business venture | 9 | | that is the recipient of the applicant's investment. | 10 | | (4) A corporation and any party related to that | 11 | | corporation in a manner that would require an attribution | 12 | | of stock from the corporation to the party or from the
| 13 | | party to the corporation under the attribution rules of | 14 | | Section 318 of the Internal Revenue Code, if the | 15 | | corporation and all such related parties own, in the | 16 | | aggregate, at least 50% of the profits, capital, stock, or | 17 | | other ownership interest in the qualified new business | 18 | | venture that is the recipient of the applicant's | 19 | | investment. | 20 | | (5) A person to or from whom there is attribution of | 21 | | ownership of stock in the qualified new business venture | 22 | | that is the recipient of the applicant's investment in | 23 | | accordance with Section 1563(e) of the Internal Revenue | 24 | | Code, except that for purposes of determining whether a | 25 | | person is a related member under this paragraph, "20%" | 26 | | shall be substituted for "5%" whenever "5%" appears in |
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| 1 | | Section 1563(e) of the Internal Revenue Code. | 2 | | "Social equity business" means a business that is a | 3 | | qualified social equity applicant, as defined in Section 1-10 | 4 | | of the Cannabis Regulation and Tax Act. | 5 | | (b) For taxable years beginning after December 31, 2010, | 6 | | and ending on or before December 31, 2021, subject to the | 7 | | limitations provided in this Section, a claimant may claim, as | 8 | | a credit against the tax imposed under subsections (a) and (b) | 9 | | of Section 201 of this Act, an amount equal to 25% of the | 10 | | claimant's investment made directly in a qualified new business | 11 | | venture. However, if the investment is made in: (1) a qualified | 12 | | new business venture that is minority-owned, women-owned, or is | 13 | | a business owned a person with a disability (as those terms are | 14 | | used and defined in the Business Enterprise for Minorities, | 15 | | Women, and Persons with Disabilities Act); or (2) a qualified | 16 | | new business venture in which the principal place of business | 17 | | is located in a county with a population of not more than | 18 | | 250,000, then the amount of the credit is 35% of the claimant's | 19 | | investment made directly in a qualified new business venture. | 20 | | In order for an investment in a qualified new business venture | 21 | | to be eligible for tax credits, the business must have applied | 22 | | for and received certification under subsection (e) for the | 23 | | taxable year in which the investment was made prior to the date | 24 | | on which the investment was made. The credit under this Section | 25 | | may not exceed the taxpayer's Illinois income tax liability for | 26 | | the taxable year. If the amount of the credit exceeds the tax |
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| 1 | | liability for the year, the excess may be carried forward and | 2 | | applied to the tax liability of the 5 taxable years following | 3 | | the excess credit year. The credit shall be applied to the | 4 | | earliest year for which there is a tax liability. If there are | 5 | | credits from more than one tax year that are available to | 6 | | offset a liability, the earlier credit shall be applied first. | 7 | | In the case of a partnership or Subchapter S Corporation, the | 8 | | credit is allowed to the partners or shareholders in accordance | 9 | | with the determination of income and distributive share of | 10 | | income under Sections 702 and 704 and Subchapter S of the | 11 | | Internal Revenue Code. | 12 | | (c) The minimum amount an applicant must invest in any | 13 | | single qualified new business venture in order to be eligible | 14 | | for a credit under this Section is $10,000. The maximum amount | 15 | | of an applicant's total investment made in any single qualified | 16 | | new business venture that may be used as the basis for a credit | 17 | | under this Section is $1,000,000 $2,000,000 . | 18 | | (d) The Department shall implement a program to certify an | 19 | | applicant for an angel investment credit. Upon satisfactory | 20 | | review, the Department shall issue a tax credit certificate | 21 | | stating the amount of the tax credit to which the applicant is | 22 | | entitled. The Department shall annually certify that: (i) each | 23 | | qualified new business venture that receives an angel | 24 | | investment under this Section has maintained a minimum | 25 | | employment threshold, as defined by rule, in the State (and | 26 | | continues to maintain a minimum employment threshold in the |
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| 1 | | State for a period of no less than 3 years from the issue date | 2 | | of the last tax credit certificate issued by the Department | 3 | | with respect to such business pursuant to this Section); and | 4 | | (ii) the claimant's investment has been made and remains, | 5 | | except in the event of a qualifying liquidity event, in the | 6 | | qualified new business venture for no less than 3 years. | 7 | | If an investment for which a claimant is allowed a credit | 8 | | under subsection (b) is held by the claimant for less than 3 | 9 | | years, other than as a result of a permitted sale of the | 10 | | investment to person who is not a related member, the claimant | 11 | | shall pay to the Department of Revenue, in the manner | 12 | | prescribed by the Department of Revenue, the aggregate amount | 13 | | of the disqualified credits that the claimant received related | 14 | | to the subject investment. | 15 | | If the Department determines that a qualified new business | 16 | | venture failed to maintain a minimum employment threshold in | 17 | | the State through the date which is 3 years from the issue date | 18 | | of the last tax credit certificate issued by the Department | 19 | | with respect to the subject business pursuant to this Section, | 20 | | the claimant or claimants shall pay to the Department of | 21 | | Revenue, in the manner prescribed by the Department of Revenue, | 22 | | the aggregate amount of the disqualified credits that claimant | 23 | | or claimants received related to investments in that business. | 24 | | (e) The Department shall implement a program to register | 25 | | qualified new business ventures for purposes of this Section. A | 26 | | business desiring registration under this Section shall be |
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| 1 | | required to submit a full and complete application to the | 2 | | Department. A submitted application shall be effective only for | 3 | | the taxable year in which it is submitted, and a business | 4 | | desiring registration under this Section shall be required to | 5 | | submit a separate application in and for each taxable year for | 6 | | which the business desires registration. Further, if at any | 7 | | time prior to the acceptance of an application for registration | 8 | | under this Section by the Department one or more events occurs | 9 | | which makes the information provided in that application | 10 | | materially false or incomplete (in whole or in part), the | 11 | | business shall promptly notify the Department of the same. Any | 12 | | failure of a business to promptly provide the foregoing | 13 | | information to the Department may, at the discretion of the | 14 | | Department, result in a revocation of a previously approved | 15 | | application for that business, or disqualification of the | 16 | | business from future registration under this Section, or both. | 17 | | The Department may register the business only if all of the | 18 | | following conditions are satisfied: | 19 | | (1) it has its principal place of business in this | 20 | | State; | 21 | | (2) at least 51% of the employees employed by the | 22 | | business are employed in this State; | 23 | | (3) the business has the potential for increasing jobs | 24 | | in this State, increasing capital investment in this State, | 25 | | or both, as determined by the Department, and any either of | 26 | | the following apply: |
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| 1 | | (A) it is principally engaged in innovation in any | 2 | | of the following: manufacturing; biotechnology; | 3 | | nanotechnology; communications; agricultural sciences; | 4 | | clean energy creation or storage technology; | 5 | | processing or assembling products, including medical | 6 | | devices, pharmaceuticals, computer software, computer | 7 | | hardware, semiconductors, other innovative technology | 8 | | products, or other products that are produced using | 9 | | manufacturing methods that are enabled by applying | 10 | | proprietary technology; or providing services that are | 11 | | enabled by applying proprietary technology; or | 12 | | (B) it is undertaking pre-commercialization | 13 | | activity related to proprietary technology that | 14 | | includes conducting research, developing a new product | 15 | | or business process, or developing a service that is | 16 | | principally reliant on applying proprietary | 17 | | technology; or | 18 | | (C) the business is a social equity business and is | 19 | | engaged in innovation in the field of cannabis | 20 | | cultivation, extraction, processing, distribution, | 21 | | infusion, or dispensing, or is undertaking | 22 | | pre-commercialization activity within the adult use | 23 | | cannabis industry related to proprietary technology | 24 | | that includes conducting research, developing a new | 25 | | product or business process, or developing a service | 26 | | that is principally reliant on applying proprietary |
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| 1 | | technology; | 2 | | (4) it is not principally engaged in real estate | 3 | | development, insurance, banking, lending, lobbying, | 4 | | political consulting, professional services provided by | 5 | | attorneys, accountants, business consultants, physicians, | 6 | | or health care consultants, wholesale or retail trade, | 7 | | leisure, hospitality, transportation, or construction, | 8 | | except construction of power production plants that derive | 9 | | energy from a renewable energy resource, as defined in | 10 | | Section 1 of the Illinois Power Agency Act; however, the | 11 | | restrictions in this Section relating to wholesale or | 12 | | retail trade and transportation shall not apply to social | 13 | | equity businesses; | 14 | | (5) at the time it is first certified: | 15 | | (A) it has fewer than 100 employees; | 16 | | (B) it has been in operation in Illinois for not | 17 | | more than 10 consecutive years prior to the year of | 18 | | certification; and | 19 | | (C) it has received not more than $5,000,000 | 20 | | $10,000,000 in aggregate investments; | 21 | | (5.1) it agrees to maintain a minimum employment | 22 | | threshold in the State of Illinois prior to the date which | 23 | | is 3 years from the issue date of the last tax credit | 24 | | certificate issued by the Department with respect to that | 25 | | business pursuant to this Section; | 26 | | (6) (blank); and |
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| 1 | | (7) it has received not more than $2,000,000 $4,000,000 | 2 | | in investments that qualified for tax credits under this | 3 | | Section. | 4 | | (f) The Department, in consultation with the Department of | 5 | | Revenue, shall adopt rules to administer this Section. The | 6 | | aggregate amount of the tax credits that may be claimed under | 7 | | this Section for investments made in qualified new business | 8 | | ventures shall be limited at $10,000,000 per calendar year, of | 9 | | which $1,500,000 $500,000 shall be reserved for investments | 10 | | made in qualified new business ventures which are | 11 | | minority-owned businesses, women-owned businesses, or | 12 | | businesses owned by a person with a disability (as those terms | 13 | | are used and defined in the Business Enterprise for Minorities, | 14 | | Women, and Persons with Disabilities Act), and an additional | 15 | | $1,500,000 $500,000 shall be reserved for investments made in | 16 | | qualified new business ventures with their principal place of | 17 | | business in counties with a population of not more than | 18 | | 250,000. The foregoing annual allowable amounts shall be | 19 | | allocated by the Department, on a per calendar quarter basis | 20 | | and prior to the commencement of each calendar year, in such | 21 | | proportion as determined by the Department, provided that: (i) | 22 | | the amount initially allocated by the Department for any one | 23 | | calendar quarter shall not exceed 35% of the total allowable | 24 | | amount; (ii) any portion of the allocated allowable amount | 25 | | remaining unused as of the end of any of the first 3 calendar | 26 | | quarters of a given calendar year shall be rolled into, and |
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| 1 | | added to, the total allocated amount for the next available | 2 | | calendar quarter; and (iii) the reservation of tax credits for | 3 | | investments in minority-owned businesses, women-owned | 4 | | businesses, businesses owned by a person with a disability, and | 5 | | in businesses in counties with a population of not more than | 6 | | 250,000 is limited to the first 3 calendar quarters of a given | 7 | | calendar year, after which they may be claimed by investors in | 8 | | any qualified new business venture. | 9 | | (g) A claimant may not sell or otherwise transfer a credit | 10 | | awarded under this Section to another person. | 11 | | (h) On or before March 1 of each year, the Department shall | 12 | | report to the Governor and to the General Assembly on the tax | 13 | | credit certificates awarded under this Section for the prior | 14 | | calendar year. | 15 | | (1) This report must include, for each tax credit | 16 | | certificate awarded: | 17 | | (A) the name of the claimant and the amount of | 18 | | credit awarded or allocated to that claimant; | 19 | | (B) the name and address (including the county) of | 20 | | the qualified new business venture that received the | 21 | | investment giving rise to the credit, the North | 22 | | American Industry Classification System (NAICS) code | 23 | | applicable to that qualified new business venture, and | 24 | | the number of employees of the qualified new business | 25 | | venture; and | 26 | | (C) the date of approval by the Department of each |
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| 1 | | claimant's tax credit certificate. | 2 | | (2) The report must also include: | 3 | | (A) the total number of applicants and the total | 4 | | number of claimants, including the amount of each tax | 5 | | credit certificate awarded to a claimant under this | 6 | | Section in the prior calendar year; | 7 | | (B) the total number of applications from | 8 | | businesses seeking registration under this Section, | 9 | | the total number of new qualified business ventures | 10 | | registered by the Department, and the aggregate amount | 11 | | of investment upon which tax credit certificates were | 12 | | issued in the prior calendar year; and | 13 | | (C) the total amount of tax credit certificates | 14 | | sought by applicants, the amount of each tax credit | 15 | | certificate issued to a claimant, the aggregate amount | 16 | | of all tax credit certificates issued in the prior | 17 | | calendar year and the aggregate amount of tax credit | 18 | | certificates issued as authorized under this Section | 19 | | for all calendar years.
| 20 | | (i) For each business seeking registration under this | 21 | | Section after December 31, 2016, the Department shall require | 22 | | the business to include in its application the North American | 23 | | Industry Classification System (NAICS) code applicable to the | 24 | | business and the number of employees of the business at the | 25 | | time of application. Each business registered by the Department | 26 | | as a qualified new business venture that receives an investment |
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| 1 | | giving rise to the issuance of a tax credit certificate | 2 | | pursuant to this Section shall, for each of the 3 years | 3 | | following the issue date of the last tax credit certificate | 4 | | issued by the Department with respect to such business pursuant | 5 | | to this Section, report to the Department the following: | 6 | | (1) the number of employees and the location at which | 7 | | those employees are employed, both as of the end of each | 8 | | year; | 9 | | (2) the amount of additional new capital investment | 10 | | raised as of the end of each year, if any; and | 11 | | (3) the terms of any liquidity event occurring during | 12 | | such year; for the purposes of this Section, a "liquidity | 13 | | event" means any event that would be considered an exit for | 14 | | an illiquid investment, including any event that allows the | 15 | | equity holders of the business (or any material portion | 16 | | thereof) to cash out some or all of their respective equity | 17 | | interests. | 18 | | (Source: P.A. 100-328, eff. 1-1-18; 100-686, eff. 1-1-19; | 19 | | 100-863, eff. 8-14-18; 101-81, eff. 7-12-19.) | 20 | | (35 ILCS 5/232 new) | 21 | | Sec. 232. Credit for full-time employees in a county with | 22 | | fewer than 250,000 inhabitants. | 23 | | (a) For taxable years beginning on or after January 1, | 24 | | 2021, each taxpayer that hires a full-time employee to fill a | 25 | | position at a location in a county with fewer than 250,000 |
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| 1 | | inhabitants is entitled to a credit against the taxes imposed | 2 | | by subsections (a) and (b) of Section 201 of this Act in an | 3 | | amount not to exceed $5,000 per eligible employee in any | 4 | | taxable year. The credit may be taken for the taxable year in | 5 | | which the employee is hired and for the next taxable year if | 6 | | the employee remains employed with that taxpayer in the next | 7 | | taxable year. The amount of the credit shall be $5,000 in each | 8 | | taxable year, multiplied by a fraction the numerator of which | 9 | | is the number of days the employee is employed by the taxpayer | 10 | | during the taxable year and the denominator of which is 365. | 11 | | (b) For partners, shareholders of Subchapter S | 12 | | corporations, and owners of limited liability companies, if the | 13 | | liability company is treated as a partnership for purposes of | 14 | | federal and State income taxation, there shall be allowed a | 15 | | credit under this Section to be determined in accordance with | 16 | | the determination of income and distributive share of income | 17 | | under Sections 702 and 704 and Subchapter S of the Internal | 18 | | Revenue Code. | 19 | | (c) In no event shall a credit under this Section reduce | 20 | | the taxpayer's liability to less than zero. If the amount of | 21 | | the credit exceeds the tax liability for the year, the excess | 22 | | may be carried forward and applied to the tax liability of the | 23 | | 5 taxable years following the excess credit year. The tax | 24 | | credit shall be applied to the earliest year for which there is | 25 | | a tax liability. If there are credits for more than one year | 26 | | that are available to offset a liability, the earlier credit |
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| 1 | | shall be applied first. | 2 | | (d) As used in this Section, "full-time employee" means an | 3 | | individual who is employed for consideration for at least 35 | 4 | | hours each week or who renders any other standard of service | 5 | | generally accepted by industry custom or practice as full-time | 6 | | employment. An individual for whom a W-2 is issued by a | 7 | | Professional Employer Organization (PEO) is a full-time | 8 | | employee if employed in the service of the taxpayer for | 9 | | consideration for at least 35 hours each week or who renders | 10 | | any other standard of service generally accepted by industry | 11 | | custom or practice as full-time employment to the taxpayer. | 12 | | (e) This Section is exempt from the provisions of Section | 13 | | 250. | 14 | | (35 ILCS 5/233 new) | 15 | | Sec. 233. Student loan repayment credit. | 16 | | (a) For taxable years beginning on or after January 1, | 17 | | 2021, a qualified taxpayer may apply to the Department for a | 18 | | credit against the tax imposed by subsections (a) and (b) of | 19 | | Section 201. The amount of the credit shall be equal to the | 20 | | taxpayer's student loan repayment expenses for each qualified | 21 | | education loan for the taxable year, but not to exceed the | 22 | | maximum credit amount set forth in subsection (b) for the | 23 | | taxpayer's highest level of education. | 24 | | (b) The maximum credit amount shall be: | 25 | | (1) $6,000 per taxable year for a taxpayer with a |
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| 1 | | master's degree or higher; | 2 | | (2) $4,000 per taxable year for a taxpayer with a | 3 | | bachelor's degree; or | 4 | | (3) $1,000 per taxable year for a taxpayer with an | 5 | | associate's degree. | 6 | | In no event shall a credit under this Section reduce the | 7 | | taxpayer's liability to less than zero. If the amount of the | 8 | | credit exceeds the tax liability for the year, the excess may | 9 | | be carried forward and applied to the tax liability of the 5 | 10 | | taxable years following the excess credit year. The tax credit | 11 | | shall be applied to the earliest year for which there is a tax | 12 | | liability. If there are credits for more than one year that are | 13 | | available to offset a liability, the earlier credit shall be | 14 | | applied first. | 15 | | (c) As used in this Section: | 16 | | "Qualified education loan" has the meaning given to that | 17 | | term in Section 221 of the Internal Revenue Code. | 18 | | "Qualified taxpayer" means a taxpayer who (i) has an | 19 | | Associate's degree, a Bachelor's degree, or a graduate degree | 20 | | from an institution of higher education accredited by the U.S. | 21 | | Department of Education; (ii) has annual student loan repayment | 22 | | expenses; and (iii) is employed full-time in the State in one | 23 | | or more of the following fields: life, natural, or | 24 | | environmental sciences; computer, information, or software | 25 | | technology; advanced mathematics or finance; engineering; | 26 | | industrial design or other commercially related design field; |
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| 1 | | or medicine or medical device technology. For the purposes of | 2 | | this Section, a taxpayer is employed full-time if the taxpayer | 3 | | works in any of the listed fields at a rate of at least 35 hours | 4 | | per week. | 5 | | (d) The Department of Revenue may adopt rules to implement | 6 | | this Section.
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.".
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