Illinois General Assembly - Full Text of SB2182
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Full Text of SB2182  102nd General Assembly

SB2182sam001 102ND GENERAL ASSEMBLY

Sen. Elgie R. Sims, Jr.

Filed: 3/18/2021

 

 


 

 


 
10200SB2182sam001LRB102 16377 RJF 23626 a

1
AMENDMENT TO SENATE BILL 2182

2    AMENDMENT NO. ______. Amend Senate Bill 2182 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by changing Section 605-1025 as follows:
 
7    (20 ILCS 605/605-1025)
8    Sec. 605-1025. Data center investment.
9    (a) The Department shall issue certificates of exemption
10from the Retailers' Occupation Tax Act, the Use Tax Act, the
11Service Use Tax Act, and the Service Occupation Tax Act, all
12locally-imposed retailers' occupation taxes administered and
13collected by the Department, the Chicago non-titled Use Tax,
14and a credit certification against the taxes imposed under
15subsections (a) and (b) of Section 201 of the Illinois Income
16Tax Act to qualifying Illinois data centers.

 

 

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1    (b) For taxable years beginning on or after January 1,
22019, the Department shall award credits against the taxes
3imposed under subsections (a) and (b) of Section 201 of the
4Illinois Income Tax Act as provided in Section 229 of the
5Illinois Income Tax Act.
6    (c) For purposes of this Section:
7        "Data center" means a facility: (1) whose primary
8    services are the storage, management, and processing of
9    digital data; and (2) that is used to house (i) computer
10    and network systems, including associated components such
11    as servers, network equipment and appliances,
12    telecommunications, and data storage systems, (ii) systems
13    for monitoring and managing infrastructure performance,
14    (iii) Internet-related equipment and services, (iv) data
15    communications connections, (v) environmental controls,
16    (vi) fire protection systems, and (vii) security systems
17    and services.
18        "Qualifying Illinois data center" means a new or
19    existing data center that:
20            (1) is located in the State of Illinois, is
21        located within a 5-mile geographic radius, and is
22        connected by common infrastructure;
23            (2) in the case of an existing data center, made a
24        capital investment of at least $250,000,000
25        collectively by the data center operator and the
26        tenants of the data center over the 60-month period

 

 

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1        immediately prior to January 1, 2020 or committed to
2        make a capital investment of at least $250,000,000
3        over a 60-month period commencing before January 1,
4        2020 and ending after January 1, 2020; or
5            (3) in the case of a new data center, or an
6        existing data center making an upgrade, makes a
7        capital investment of at least $250,000,000 over a
8        60-month period beginning on or after January 1, 2020;
9        and
10            (4) in the case of both existing and new data
11        centers, results in the creation of at least 20
12        full-time or full-time equivalent new jobs over a
13        period of 60 months by the data center operator and the
14        tenants of the data center, collectively, associated
15        with the operation or maintenance of the data center;
16        all jobs associated with a qualifying data center
17        meeting its job creation requirements those jobs must
18        have a total compensation equal to or greater than
19        120% of the average wage paid to full-time employees
20        in the county where the data center is located, as
21        determined by the U.S. Bureau of Labor Statistics; and
22            (5) within 2 years 90 days after being placed in
23        service, certifies to the Department that it is carbon
24        neutral or has attained certification under one or
25        more of the following green building standards:
26                (A) BREEAM for New Construction or BREEAM

 

 

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1            In-Use;
2                (B) ENERGY STAR;
3                (C) Envision;
4                (D) ISO 50001-energy management;
5                (E) LEED for Building Design and Construction
6            or LEED for Operations and Maintenance;
7                (F) Green Globes for New Construction or Green
8            Globes for Existing Buildings;
9                (G) UL 3223; or
10                (H) an equivalent program approved by the
11            Department of Commerce and Economic Opportunity,
12            except that entering into an agreement with an
13            independent business or entity unrelated to the
14            data center for the purchase, sale, or transfer of
15            carbon credits that would not result in carbon
16            neutral outcomes at the actual site of the data
17            center shall not qualify as an eligible program
18            for the purposes of this Section.
19        "Full-time equivalent job" means a job in which the
20    new employee works for the owner, operator, contractor, or
21    tenant of a data center or for a corporation under
22    contract with the owner, operator or tenant of a data
23    center at a rate of at least 35 hours per week. An owner,
24    operator or tenant who employs labor or services at a
25    specific site or facility under contract with another may
26    declare one full-time, permanent job for every 1,820 man

 

 

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1    hours worked per year under that contract. Vacations, paid
2    holidays, and sick time are included in this computation.
3    Overtime is not considered a part of regular hours.
4        "Qualified tangible personal property" means:
5    electrical systems and equipment; climate control and
6    chilling equipment and systems; mechanical systems and
7    equipment; monitoring and secure systems; emergency
8    generators; hardware; computers; servers; data storage
9    devices; network connectivity equipment; racks; cabinets;
10    telecommunications cabling infrastructure; raised floor
11    systems; peripheral components or systems; software;
12    mechanical, electrical, or plumbing systems; battery
13    systems; cooling systems and towers; temperature control
14    systems; other cabling; and other data center
15    infrastructure equipment and systems necessary to operate
16    qualified tangible personal property, including fixtures;
17    and component parts of any of the foregoing, including
18    installation, maintenance, repair, refurbishment, and
19    replacement of qualified tangible personal property to
20    generate, transform, transmit, distribute, or manage
21    electricity necessary to operate qualified tangible
22    personal property; and all other tangible personal
23    property that is essential to the operations of a computer
24    data center. "Qualified tangible personal property" also
25    includes building materials physically incorporated in to
26    the qualifying data center.

 

 

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1        "Tenant" means an entity that leases, subleases, or
2    licenses with the owner or operator of a qualified data
3    center that is certified under this Section to use or
4    occupy all or part of the data center for a period of at
5    least of one year.
6    To document the exemption allowed under this Section, the
7retailer must obtain from the purchaser a copy of the
8certificate of eligibility issued by the Department.
9    (d) New and existing data centers seeking a certificate of
10exemption for new or existing facilities shall apply to the
11Department in the manner specified by the Department. The
12Department shall determine the duration of the certificate of
13exemption awarded under this Act. The duration of the
14certificate of exemption may not exceed 20 calendar years. The
15Department and any data center seeking the exemption,
16including a data center operator on behalf of itself and its
17tenants, must enter into a memorandum of understanding that at
18a minimum provides:
19        (1) the details for determining the amount of capital
20    investment to be made;
21        (2) the number of new jobs created;
22        (3) the timeline for achieving the capital investment
23    and new job goals;
24        (4) the repayment obligation should those goals not be
25    achieved and any conditions under which repayment by the
26    qualifying data center or data center tenant claiming the

 

 

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1    exemption will be required;
2        (5) the duration of the exemption; and
3        (6) other provisions as deemed necessary by the
4    Department.
5    A data center and an associated tenant may also enter into
6an ancillary memorandum of understanding, as prescribed by the
7Department, for purposes of receipt of the exemption.
8    (e) Beginning July 1, 2021, and each year thereafter, the
9Department shall annually report to the Governor and the
10General Assembly on the outcomes and effectiveness of Public
11Act 101-31 that shall include the following:
12        (1) the name of each recipient business;
13        (2) the location of the project;
14        (3) the estimated value of the credit;
15        (4) the number of new jobs and, if applicable,
16    retained jobs pledged as a result of the project; and
17        (5) whether or not the project is located in an
18    underserved area.
19    (f) New and existing data centers seeking a certificate of
20exemption related to the rehabilitation or construction of
21data centers in the State shall require the contractor and all
22subcontractors to comply with the requirements of Section
2330-22 of the Illinois Procurement Code as they apply to
24responsible bidders and to present satisfactory evidence of
25that compliance to the Department.
26    (g) New and existing data centers seeking a certificate of

 

 

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1exemption for the rehabilitation or construction of data
2centers in the State shall require the contractor to enter
3into a project labor agreement approved by the Department.
4    (h) Any qualifying data center issued a certificate of
5exemption under this Section must annually report to the
6Department the total data center tax benefits that are
7received by the business. Reports are due no later than May 31
8of each year and shall cover the previous calendar year. The
9first report is for the 2019 calendar year and is due no later
10than May 31, 2020.
11    To the extent that a business issued a certificate of
12exemption under this Section has obtained an Enterprise Zone
13Building Materials Exemption Certificate or a High Impact
14Business Building Materials Exemption Certificate, no
15additional reporting for those building materials exemption
16benefits is required under this Section.
17    Failure to file a report under this subsection (h) may
18result in suspension or revocation of the certificate of
19exemption. Factors to be considered in determining whether a
20data center certificate of exemption shall be suspended or
21revoked include, but are not limited to, prior compliance with
22the reporting requirements, cooperation in discontinuing and
23correcting violations, the extent of the violation, and
24whether the violation was willful or inadvertent.
25    (i) The Department shall not issue any new certificates of
26exemption under the provisions of this Section after July 1,

 

 

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12029. This sunset shall not affect any existing certificates
2of exemption in effect on July 1, 2029.
3    (j) The Department shall adopt rules to implement and
4administer this Section.
5    (k) The Department is authorized to conform existing
6memorandums of understanding with the provisions of this
7Section.
8(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".