Full Text of SB3619 97th General Assembly
SB3619enr 97TH GENERAL ASSEMBLY |
| | SB3619 Enrolled | | LRB097 18931 HLH 64169 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 220 as follows: | 6 | | (35 ILCS 5/220) | 7 | | Sec. 220. Angel investment credit. | 8 | | (a) As used in this Section: | 9 | | "Applicant" means a corporation, partnership, limited | 10 | | liability company, or a natural person that makes an investment | 11 | | in a qualified new business venture. The term "applicant" does | 12 | | not include a corporation, partnership, limited liability | 13 | | company, or a natural person who has a direct or indirect | 14 | | ownership interest of at least 51% in the profits, capital, or | 15 | | value of the investment or a related member. | 16 | | "Claimant" means an applicant certified by the Department | 17 | | who files a claim for a credit under this Section. | 18 | | "Department" means the Department of Commerce and Economic | 19 | | Opportunity. | 20 | | "Qualified new business venture" means a business that is | 21 | | registered with the Department under this Section. | 22 | | "Related member" means a person that, with respect to the
| 23 | | investment, is any one of the following: |
| | | SB3619 Enrolled | - 2 - | LRB097 18931 HLH 64169 b |
|
| 1 | | (1) An individual, if the individual and the members of | 2 | | the individual's family (as defined in Section 318 of the | 3 | | Internal Revenue Code) own directly, indirectly,
| 4 | | beneficially, or constructively, in the aggregate, at | 5 | | least 50% of the value of the outstanding profits, capital, | 6 | | stock, or other ownership interest in the applicant. | 7 | | (2) A partnership, estate, or trust and any partner or | 8 | | beneficiary, if the partnership, estate, or trust and its | 9 | | partners or beneficiaries own directly, indirectly, | 10 | | beneficially, or constructively, in the aggregate, at | 11 | | least 50% of the profits, capital, stock, or other | 12 | | ownership interest in the applicant. | 13 | | (3) A corporation, and any party related to the | 14 | | corporation in a manner that would require an attribution | 15 | | of stock from the corporation under the attribution rules
| 16 | | of Section 318 of the Internal Revenue Code, if the | 17 | | applicant and any other related member own, in the | 18 | | aggregate, directly, indirectly, beneficially, or | 19 | | constructively, at least 50% of the value of the | 20 | | corporation's outstanding stock. | 21 | | (4) A corporation and any party related to that | 22 | | corporation in a manner that would require an attribution | 23 | | of stock from the corporation to the party or from the
| 24 | | party to the corporation under the attribution rules of | 25 | | Section 318 of the Internal Revenue Code, if the | 26 | | corporation and all such related parties own, in the |
| | | SB3619 Enrolled | - 3 - | LRB097 18931 HLH 64169 b |
|
| 1 | | aggregate, at least 50% of the profits, capital, stock, or | 2 | | other ownership interest in the applicant. | 3 | | (5) A person to or from whom there is attribution of | 4 | | stock ownership in accordance with Section 1563(e) of the | 5 | | Internal Revenue Code, except that for purposes of | 6 | | determining whether a person is a related member under this | 7 | | paragraph, "20%" shall be substituted for "5%" whenever | 8 | | "5%" appears in Section 1563(e) of the Internal Revenue | 9 | | Code. | 10 | | (b) For taxable years beginning after December 31, 2010, | 11 | | and ending on or before December 31, 2016, subject to the | 12 | | limitations provided in this Section, a claimant may claim, as | 13 | | a credit against the tax imposed under subsections (a) and (b) | 14 | | of Section 201 of this Act, an amount equal to 25% of the | 15 | | claimant's investment made directly in a qualified new business | 16 | | venture. In order for an investment in a qualified new business | 17 | | venture to be eligible for tax credits, the business must have | 18 | | applied for and received certification under subsection (e) for | 19 | | the taxable year in which the investment was made prior to the | 20 | | date on which the investment was made. The credit under this | 21 | | Section may not exceed the taxpayer's Illinois income tax | 22 | | liability for the taxable year. If the amount of the credit | 23 | | exceeds the tax liability for the year, the excess may be | 24 | | carried forward and applied to the tax liability of the 5 | 25 | | taxable years following the excess credit year. The credit | 26 | | shall be applied to the earliest year for which there is a tax |
| | | SB3619 Enrolled | - 4 - | LRB097 18931 HLH 64169 b |
|
| 1 | | liability. If there are credits from more than one tax year | 2 | | that are available to offset a liability, the earlier credit | 3 | | shall be applied first. In the case of a partnership or | 4 | | Subchapter S Corporation, the credit is allowed to the partners | 5 | | or shareholders in accordance with the determination of income | 6 | | and distributive share of income under Sections 702 and 704 and | 7 | | Subchapter S of the Internal Revenue Code. | 8 | | (c) The maximum amount of an applicant's investment that | 9 | | may be used as the basis for a credit under this Section is | 10 | | $2,000,000 for each investment made directly in a qualified new | 11 | | business venture. | 12 | | (d) The Department shall implement a program to certify an | 13 | | applicant for an angel investment credit. Upon satisfactory | 14 | | review, the Department shall issue a tax credit certificate | 15 | | stating the amount of the tax credit to which the applicant is | 16 | | entitled. The Department shall annually certify that the | 17 | | claimant's investment has been made and remains in the | 18 | | qualified new business venture for no less than 3 years. | 19 | | If an investment for which a claimant is allowed a credit | 20 | | under subsection (b) is held by the claimant for less than 3 | 21 | | years, or, if within that period of time the qualified new | 22 | | business venture is moved from the State of Illinois, the | 23 | | claimant shall pay to the Department of Revenue, in the manner | 24 | | prescribed by the Department of Revenue, the amount of the | 25 | | credit that the claimant received related to the investment. | 26 | | (e) The Department shall implement a program to register |
| | | SB3619 Enrolled | - 5 - | LRB097 18931 HLH 64169 b |
|
| 1 | | qualified new business ventures for purposes of this Section. A | 2 | | business desiring registration shall submit an application to | 3 | | the Department in each taxable year for which the business | 4 | | desires registration. The Department may register the business | 5 | | only if the business satisfies all of the following conditions: | 6 | | (1) it has its headquarters in this State; | 7 | | (2) at least 51% of the employees employed by the | 8 | | business are employed in this State; | 9 | | (3) it has the potential for increasing jobs in this | 10 | | State, increasing capital investment in this State, or | 11 | | both, and either of the following apply: | 12 | | (A) it is principally engaged in innovation in any | 13 | | of the following: manufacturing; biotechnology; | 14 | | nanotechnology; communications; agricultural sciences; | 15 | | clean energy creation or storage technology; | 16 | | processing or assembling products, including medical | 17 | | devices, pharmaceuticals, computer software, computer | 18 | | hardware, semiconductors, other innovative technology | 19 | | products, or other products that are produced using | 20 | | manufacturing methods that are enabled by applying | 21 | | proprietary technology; or providing services that are | 22 | | enabled by applying proprietary technology; or | 23 | | (B) it is undertaking pre-commercialization | 24 | | activity related to proprietary technology that | 25 | | includes conducting research, developing a new product | 26 | | or business process, or developing a service that is |
| | | SB3619 Enrolled | - 6 - | LRB097 18931 HLH 64169 b |
|
| 1 | | principally reliant on applying proprietary | 2 | | technology; | 3 | | (4) it is not principally engaged in real estate | 4 | | development, insurance, banking, lending, lobbying, | 5 | | political consulting, professional services provided by | 6 | | attorneys, accountants, business consultants, physicians, | 7 | | or health care consultants, wholesale or retail trade, | 8 | | leisure, hospitality, transportation, or construction, | 9 | | except construction of power production plants that derive | 10 | | energy from a renewable energy resource, as defined in | 11 | | Section 1 of the Illinois Power Agency Act; | 12 | | (5) at the time it is first certified: | 13 | | (A) it has fewer than 100 employees; | 14 | | (B) it has been in operation in Illinois for not | 15 | | more than 10 consecutive years prior to the year of | 16 | | certification; and | 17 | | (C) it has received not more than $10,000,000 in | 18 | | aggregate private equity investment in cash; | 19 | | (6) (blank); it has been in operation in Illinois for | 20 | | not more than 10 consecutive years prior to the year of | 21 | | certification; and | 22 | | (7) it has received not more than (i) $10,000,000 in | 23 | | aggregate private equity investment in cash or (ii) | 24 | | $4,000,000 in investments that qualified for tax credits | 25 | | under this Section. | 26 | | (f) The Department, in consultation with the Department of |
| | | SB3619 Enrolled | - 7 - | LRB097 18931 HLH 64169 b |
|
| 1 | | Revenue, shall adopt rules to administer this Section. The | 2 | | aggregate amount of the tax credits that may be claimed under | 3 | | this Section for investments made in qualified new business | 4 | | ventures shall be limited at $10,000,000 per calendar year. | 5 | | (g) A claimant may not sell or otherwise transfer a credit | 6 | | awarded under this Section to another person. | 7 | | (h) On or before March 1 of each year, the Department shall | 8 | | report to the Governor and to the General Assembly on the tax | 9 | | credit certificates awarded under this Section for the prior | 10 | | calendar year. | 11 | | (1) This report must include, for each tax credit | 12 | | certificate awarded: | 13 | | (A) the name of the claimant and the amount of | 14 | | credit awarded or allocated to that claimant; | 15 | | (B) the name and address of the qualified new | 16 | | business venture that received the investment giving | 17 | | rise to the credit and the county in which the | 18 | | qualified new business venture is located; and | 19 | | (C) the date of approval by the Department of the | 20 | | applications for the tax credit certificate. | 21 | | (2) The report must also include: | 22 | | (A) the total number of applicants and amount for | 23 | | tax credit certificates awarded under this Section in | 24 | | the prior calendar year; | 25 | | (B) the total number of applications and amount for | 26 | | which tax credit certificates were issued in the prior |
| | | SB3619 Enrolled | - 8 - | LRB097 18931 HLH 64169 b |
|
| 1 | | calendar year; and | 2 | | (C) the total tax credit certificates and amount | 3 | | authorized under this Section for all calendar years.
| 4 | | (Source: P.A. 96-939, eff. 1-1-11; 97-507, eff. 8-23-11.)
| 5 | | Section 10. The Business Location Efficiency Incentive Act | 6 | | is amended by adding Section 21 as follows: | 7 | | (35 ILCS 11/21 new) | 8 | | Sec. 21. Continuation of Act; validation. | 9 | | (a) The General Assembly finds and declares that: | 10 | | (1) Public Act 97-636, which takes effect on June 1, | 11 | | 2012, changed the repeal date set for the Business Location | 12 | | Efficiency Incentive Act from December 31, 2011 to December | 13 | | 31, 2016. | 14 | | (2) The Statute on Statutes sets forth general
rules on | 15 | | the repeal of statutes and the construction of
multiple | 16 | | amendments, but Section 1 of that Act also
states that | 17 | | these rules will not be observed when the
result would be | 18 | | "inconsistent with the manifest intent of
the General | 19 | | Assembly or repugnant to the context of the
statute". | 20 | | (3) This amendatory Act of the 97th General Assembly | 21 | | manifests
the intention of the General Assembly to extend | 22 | | the repeal of the Business Location Efficiency Incentive | 23 | | Act and have the Business Location Efficiency Incentive Act | 24 | | continue in effect
until December 31, 2016. |
| | | SB3619 Enrolled | - 9 - | LRB097 18931 HLH 64169 b |
|
| 1 | | (4) The Business Location Efficiency Incentive Act was | 2 | | originally enacted to protect, promote, and preserve the | 3 | | general welfare. Any construction of this Act that results | 4 | | in
the repeal of this Act on December 31, 2011 would be
| 5 | | inconsistent with the manifest intent of the General
| 6 | | Assembly and repugnant to the context of the Business | 7 | | Location Efficiency Incentive Act. | 8 | | (b) It is hereby declared to have been the intent of the
| 9 | | General Assembly that the Business Location Efficiency | 10 | | Incentive Act not be subject to repeal on December 31, 2011. | 11 | | (c) The Business Location Efficiency Incentive Act
shall be | 12 | | deemed to have been in continuous effect since January 1, 2007 | 13 | | (the effective date of Public Act 94-966), and it shall | 14 | | continue to be in effect henceforward
until it is otherwise | 15 | | lawfully repealed. All previously
enacted amendments to the Act | 16 | | taking effect on or after
December 31, 2011, are hereby | 17 | | validated. | 18 | | (d) All actions taken in reliance on or pursuant to the
| 19 | | Business Location Efficiency Incentive Act by the Department of | 20 | | Revenue, the Department of Commerce and Economic Opportunity, | 21 | | or any other person or entity are
hereby validated. | 22 | | (e) In order to ensure the continuing effectiveness of
the | 23 | | Business Location Efficiency Incentive Act, it is set forth in | 24 | | full and re-enacted by this
amendatory Act of the 97th General | 25 | | Assembly. This re-enactment is intended as a
continuation of | 26 | | the Act. It is not intended to supersede any
amendment to the |
| | | SB3619 Enrolled | - 10 - | LRB097 18931 HLH 64169 b |
|
| 1 | | Act that is enacted by the 97th General
Assembly. | 2 | | (f) The Business Location Efficiency Incentive Act applies | 3 | | to all claims, civil actions, and
proceedings pending on or | 4 | | filed on or before the effective
date of this Act. | 5 | | Section 15. The Business Location Efficiency Incentive Act | 6 | | is re-enacted as follows: | 7 | | (35 ILCS 11/Act title) | 8 | | An Act concerning business incentives. | 9 | | (35 ILCS 11/1) | 10 | | (Section scheduled to be repealed on December 31, 2011)
| 11 | | Sec. 1. Short title. This Act may be cited as the Business | 12 | | Location Efficiency Incentive Act.
| 13 | | (Source: P.A. 94-966, eff. 1-1-07.) | 14 | | (35 ILCS 11/5) | 15 | | (Section scheduled to be repealed on December 31, 2011)
| 16 | | Sec. 5. Definitions. In this Act: | 17 | | "Location efficient" means a project that maximizes the use | 18 | | of existing investments in infrastructure, avoids or minimizes | 19 | | additional government expenditures for new infrastructure, and | 20 | | has nearby housing affordable to the permanent workforce of the | 21 | | project or has accessible and affordable mass transit or its | 22 | | equivalent or some combination of both. |
| | | SB3619 Enrolled | - 11 - | LRB097 18931 HLH 64169 b |
|
| 1 | | "Location efficiency report" means a report that is | 2 | | prepared by an applicant for increased State economic | 3 | | development assistance under Section 10 and follows this Act | 4 | | and any related Department guidelines, and that describes the | 5 | | existence of (i) affordable workforce housing or (ii) | 6 | | accessible and affordable mass transit or its equivalent. | 7 | | "Employee housing or transportation remediation plan" | 8 | | means a plan to increase affordable housing or transportation | 9 | | options, or both, for employees earning up to the median annual | 10 | | salary of the workforce at the project. The plan may include, | 11 | | but is not limited to, an employer-financed or assisted housing | 12 | | program that can be supplemented by State or federal grants, | 13 | | shuttle services between the place of employment and existing | 14 | | transit stops or other reasonably accessible places, | 15 | | facilitation of employee carpooling, or similar services. | 16 | | "Accessible and affordable mass transit" means access to | 17 | | transit stops with regular and frequent service within one mile | 18 | | from the project site and pedestrian access to transit stops. | 19 | | "Affordable workforce housing" means owner-occupied or | 20 | | rental housing that costs, based on current census data for the | 21 | | municipality where the project is located or any municipality | 22 | | within 3 miles of the municipality where the project is | 23 | | located, no more than 35% of the median salary at the project | 24 | | site, exclusive of the highest 10% of the site's salaries. If | 25 | | the project is located in an unincorporated area, "affordable | 26 | | workforce housing" means no more than 35% of the median salary |
| | | SB3619 Enrolled | - 12 - | LRB097 18931 HLH 64169 b |
|
| 1 | | at the project site, excluding the highest 10% of the site's | 2 | | salaries, based on the median cost of rental or of | 3 | | owner-occupied housing in the county where the unincorporated | 4 | | area is located. | 5 | | "Department" means the Department of Commerce and Economic | 6 | | Opportunity (DCEO) or its successor agency. | 7 | | "Applicant" means a company or its representative that | 8 | | negotiates or applies for economic development assistance from | 9 | | DCEO. | 10 | | "Economic development assistance" means State tax credits | 11 | | and tax exemptions given as an incentive to an eligible company | 12 | | after certification by DCEO under the Economic Development for | 13 | | a Growing Economy Tax Credit Act (EDGE). | 14 | | "Existence of infrastructure" means the existence within | 15 | | 1,500 feet of the proposed site of roads, sewers, sidewalks, | 16 | | and other utilities and a description of the investments or | 17 | | improvements, if any, that an applicant expects State or local | 18 | | government to make to that infrastructure.
| 19 | | (Source: P.A. 94-966, eff. 1-1-07.) | 20 | | (35 ILCS 11/10) | 21 | | (Section scheduled to be repealed on December 31, 2011)
| 22 | | Sec. 10. Economic development assistance awards. | 23 | | (a) An applicant that also wants to be considered for | 24 | | increased economic development assistance under this Act shall | 25 | | submit a location efficiency report. |
| | | SB3619 Enrolled | - 13 - | LRB097 18931 HLH 64169 b |
|
| 1 | | (b) DCEO may give an applicant an increased tax credit or | 2 | | extension if the applicant's location efficiency report | 3 | | demonstrates that the applicant is seeking assistance for a | 4 | | project to be located in an area that satisfies this Act's | 5 | | standards for affordable workforce housing or affordable and | 6 | | accessible mass transit. If the Department determines from the | 7 | | location efficiency report that the applicant is seeking | 8 | | assistance in an area that is not location efficient, the | 9 | | Department may award an increase in State economic development | 10 | | assistance if an applicant (i) submits, and the Department | 11 | | accepts, an applicant's employee housing and transportation | 12 | | remediation plan or (ii) creates jobs in a labor surplus area | 13 | | as defined by the Department of Employment Security at the end | 14 | | of each calendar year. | 15 | | (c) Applicants locating or expanding at location-efficient | 16 | | sites, with approved location efficiency plans, or creating | 17 | | jobs in labor surplus areas may receive (i) up to 10% more than | 18 | | the maximum allowable tax credits for which they are eligible | 19 | | under the Economic Development for a Growing Economy Tax Credit | 20 | | Act (EDGE), but not to equal or exceed 100% of the applicant's | 21 | | tax liability, or (ii) such other adjustment of those tax | 22 | | credits, including but not limited to extensions, as the | 23 | | Department deems appropriate. | 24 | | (d) The Department may provide technical assistance to | 25 | | employers requesting assistance in developing an appropriate | 26 | | employee housing or transportation plan.
|
| | | SB3619 Enrolled | - 14 - | LRB097 18931 HLH 64169 b |
|
| 1 | | (Source: P.A. 94-966, eff. 1-1-07.) | 2 | | (35 ILCS 11/15) | 3 | | (Section scheduled to be repealed on December 31, 2011)
| 4 | | Sec. 15. Summaries; progress reports. | 5 | | (a) DCEO shall include summaries of the initial employee | 6 | | housing or transportation plans for each assisted project in | 7 | | the annual compilation and publication of project progress | 8 | | reports required under subsection (d) of Section 20 of the | 9 | | Corporate Accountability for Tax Expenditures Act. Companies | 10 | | that fail to do so or that make inadequate progress shall have | 11 | | their increased tax credit or extension eliminated. Applicants | 12 | | and submitted data are subject to all disclosure, reporting, | 13 | | and recapture provisions set forth in Public Act 93-552. | 14 | | (b) By June 1, 2008 and by June 1 of each year thereafter | 15 | | through 2011, the Department shall include, when appropriate, | 16 | | data on the outcomes or status of approved employee housing or | 17 | | transportation plans in the project progress reports required | 18 | | under the Corporate Accountability for Tax Expenditure Act.
| 19 | | (Source: P.A. 94-966, eff. 1-1-07.) | 20 | | (35 ILCS 11/20) | 21 | | (Section scheduled to be repealed on December 31, 2011)
| 22 | | Sec. 20. Duration of incentives; report to General | 23 | | Assembly. | 24 | | (a) Any multi-year incentive awarded under this Act shall |
| | | SB3619 Enrolled | - 15 - | LRB097 18931 HLH 64169 b |
|
| 1 | | continue for the time period called for in the agreement with | 2 | | the Department and shall not be altered by the repeal of this | 3 | | Act. | 4 | | (b) By January 1, 2011, the Department shall submit to the | 5 | | Speaker of the House of Representatives and the President of | 6 | | the Senate, for assignment to the appropriate committees, a | 7 | | report on the incentives awarded under this Act and the | 8 | | Department's activities, findings, and recommendations with | 9 | | respect to this Act and its extension, amendment, or repeal. | 10 | | The report, when acted upon by those committees, shall be | 11 | | distributed to each member of the General Assembly.
| 12 | | (Source: P.A. 94-966, eff. 1-1-07.) | 13 | | (35 ILCS 11/25) | 14 | | (Section scheduled to be repealed on December 31, 2011)
| 15 | | Sec. 25. Repeal. This Act is repealed on December 31, 2016.
| 16 | | (Source: P.A. 97-636, eff. 6-1-12.) | 17 | | (35 ILCS 11/99) | 18 | | (Section scheduled to be repealed on December 31, 2011)
| 19 | | Sec. 99. Effective date. This Act takes effect January 1, | 20 | | 2007.
| 21 | | (Source: P.A. 94-966, eff. 1-1-07.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law. |
|