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(20 ILCS 605/605-1025)
(Text of Section from P.A. 101-31 and 101-604)
Data center investment.
(a) The Department shall issue certificates of exemption from the Retailers' Occupation Tax Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act, all locally-imposed retailers' occupation taxes administered and collected by the Department, the Chicago non-titled Use Tax, and a credit certification against the taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act to qualifying Illinois data centers.
(b) For taxable years beginning on or after January 1, 2019, the Department shall award credits against the taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act as provided in Section 229 of the Illinois Income Tax Act.
(c) For purposes of this Section:
"Data center" means a facility: (1) whose primary
services are the storage, management, and processing of digital data; and (2) that is used to house (i) computer and network systems, including associated components such as servers, network equipment and appliances, telecommunications, and data storage systems, (ii) systems for monitoring and managing infrastructure performance, (iii) Internet-related equipment and services, (iv) data communications connections, (v) environmental controls, (vi) fire protection systems, and (vii) security systems and services.
"Qualifying Illinois data center" means a new or
existing data center that:
(1) is located in the State of Illinois;
(2) in the case of an existing data center, made
a capital investment of at least $250,000,000 collectively by the data center operator and the tenants of the data center over the 60-month period immediately prior to January 1, 2020 or committed to make a capital investment of at least $250,000,000 over a 60-month period commencing before January 1, 2020 and ending after January 1, 2020; or
(3) in the case of a new data center, or an
existing data center making an upgrade, makes a capital investment of at least $250,000,000 over a 60-month period beginning on or after January 1, 2020; and
(4) in the case of both existing and new data
centers, results in the creation of at least 20 full-time or full-time equivalent new jobs over a period of 60 months by the data center operator and the tenants of the data center, collectively, associated with the operation or maintenance of the data center; those jobs must have a total compensation equal to or greater than 120% of the average wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and
(5) within 90 days after being placed in service,
certifies to the Department that it is carbon neutral or has attained certification under one or more of the following green building standards:
(A) BREEAM for New Construction or BREEAM
(B) ENERGY STAR;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction
or LEED for Operations and Maintenance;
(F) Green Globes for New Construction or
Green Globes for Existing Buildings;
(G) UL 3223; or
(H) an equivalent program approved by the
Department of Commerce and Economic Opportunity.
"Full-time equivalent job" means a job in which the
new employee works for the owner, operator, contractor, or tenant of a data center or for a corporation under contract with the owner, operator or tenant of a data center at a rate of at least 35 hours per week. An owner, operator or tenant who employs labor or services at a specific site or facility under contract with another may declare one full-time, permanent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and chilling equipment and systems; mechanical systems and equipment; monitoring and secure systems; emergency generators; hardware; computers; servers; data storage devices; network connectivity equipment; racks; cabinets; telecommunications cabling infrastructure; raised floor systems; peripheral components or systems; software; mechanical, electrical, or plumbing systems; battery systems; cooling systems and towers; temperature control systems; other cabling; and other data center infrastructure equipment and systems necessary to operate qualified tangible personal property, including fixtures; and component parts of any of the foregoing, including installation, maintenance, repair, refurbishment, and replacement of qualified tangible personal property to generate, transform, transmit, distribute, or manage electricity necessary to operate qualified tangible personal property; and all other tangible personal property that is essential to the operations of a computer data center. "Qualified tangible personal property" also includes building materials physically incorporated in to the qualifying data center.
To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the certificate of eligibility issued by the Department.
(d) New and existing data centers seeking a certificate of exemption for new or existing facilities shall apply to the Department in the manner specified by the Department. The Department shall determine the duration of the certificate of exemption awarded under this Act. The duration of the certificate of exemption may not exceed 20 calendar years. The Department and any data center seeking the exemption, including a data center operator on behalf of itself and its tenants, must enter into a memorandum of understanding that at a minimum provides:
(1) the details for determining the amount of capital
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
(4) the repayment obligation should those goals not
be achieved and any conditions under which repayment by the qualifying data center or data center tenant claiming the exemption will be required;
(5) the duration of the exemption; and
(6) other provisions as deemed necessary by the
(e) Beginning July 1, 2021, and each year thereafter, the Department shall annually report to the Governor and the General Assembly on the outcomes and effectiveness of Public Act 101-31 that shall include the following:
(1) the name of each recipient business;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new jobs and, if applicable,
retained jobs pledged as a result of the project; and
(5) whether or not the project is located in an
(f) New and existing data centers seeking a certificate of exemption related to the rehabilitation or construction of data centers in the State shall require the contractor and all subcontractors to comply with the requirements of Section 30-22 of the Illinois Procurement Code as they apply to responsible bidders and to present satisfactory evidence of that compliance to the Department.
(g) New and existing data centers seeking a certificate of exemption for the rehabilitation or construction of data centers in the State shall require the contractor to enter into a project labor agreement approved by the Department.
(h) Any qualifying data center issued a certificate of exemption under this Section must annually report to the Department the total data center tax benefits that are received by the business. Reports are due no later than May 31 of each year and shall cover the previous calendar year. The first report is for the 2019 calendar year and is due no later than May 31, 2020.
To the extent that a business issued a certificate of exemption under this Section has obtained an Enterprise Zone Building Materials Exemption Certificate or a High Impact Business Building Materials Exemption Certificate, no additional reporting for those building materials exemption benefits is required under this Section.
Failure to file a report under this subsection (h) may result in suspension or revocation of the certificate of exemption. Factors to be considered in determining whether a data center certificate of exemption shall be suspended or revoked include, but are not limited to, prior compliance with the reporting requirements, cooperation in discontinuing and correcting violations, the extent of the violation, and whether the violation was willful or inadvertent.
(i) The Department shall not issue any new certificates of exemption under the provisions of this Section after July 1, 2029. This sunset shall not affect any existing certificates of exemption in effect on July 1, 2029.
(j) The Department shall adopt rules to implement and administer this Section.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
(Text of Section from P.A. 101-469)
Training in the Building Trades Program.
(a) Subject to appropriation, the Department of Commerce and Economic Opportunity may establish a Training in the Building Trades Program to award grants to community-based organizations for the purpose of establishing training programs for persons who are 18 through 35 years of age and have an interest in the building trades. Persons eligible to participate in the Program shall include youth who have aged out of foster care and have an interest in the building trades. The Department of Children and Family Services, in consultation with the Department of Commerce and Economic Opportunity, shall identify and refer eligible youth to those community-based organizations that receive grants under this Section. Under the training programs, each participating person shall receive the following:
(1) Formal training and education in the fundamentals
and core competencies in the person's chosen trade. Such training and education shall be provided by a trained and skilled tradesman or journeyman who is a member of a trade union and who is paid the general prevailing rate of hourly wages in the locality in which the work is to be performed.
(2) Hands-on experience to further develop the
person's building trade skills by participating in community improvement projects involving the rehabilitation of vacant and abandoned residential property in economically depressed areas of the State.
Selected organizations shall also use the grant money to establish an entrepreneurship program to provide eligible persons with the capital and business management skills necessary to successfully launch their own businesses as contractors, subcontractors, real estate agents, or property managers or as any other entrepreneurs in the building trades. Eligibility under the entrepreneurship program shall be restricted to persons who reside in one of the economically depressed areas selected to receive community improvement projects in accordance with this subsection and who have obtained the requisite skill set for a particular building trade after successfully completing a training program established in accordance with this subsection. Grants provided under this Section may also be used to purchase the equipment and materials needed to rehabilitate any vacant and abandoned residential property that is eligible for acquisition as described in subsection (b).
(b) Property eligible for acquisition and rehabilitation under the Training in the Building Trades Program.
(1) A community-based organization that is selected
to participate in the Training in the Building Trades Program may enter into an agreement with a financial institution to rehabilitate abandoned residential property in foreclosure with the express condition that, after the rehabilitation project is complete, the financial institution shall:
(A) sell the residential property for no less
than its fair market value; and
(B) use any proceeds from the sale to (i)
reimburse the community-based organization for all costs associated with rehabilitating the property and (ii) make satisfactory payment for any other claims against the property. Any remaining sale proceeds of the residential property shall be retained by the financial institution.
(2)(A) A unit of local government may enact an
ordinance that permits the acquisition and rehabilitation of abandoned residential property under the Training in the Building Trades Program. Under the ordinance, any owner of residential property that has been abandoned for at least 3 years shall be notified that the abandoned property is subject to acquisition and rehabilitation under the Program and that if the owner does not respond to the notice within the time period prescribed by the unit of local government, the owner shall lose all right, title, and interest in the property. Such notice shall be given as follows:
(i) by mailing a copy of the notice by certified
mail to the owner's last known mailing address;
(ii) by publication in a newspaper published in
the municipality or county where the property is located; and
(iii) by recording the notice with the office of
the recorder of the county in which the property is located.
(B) If the owner responds to the notice within the
time period prescribed by the unit of local government, the owner shall be given the option to either bring the property into compliance with all applicable fire, housing, and building codes within 6 months or enter into an agreement with a community-based organization under the Program to rehabilitate the residential property. If the owner chooses to enter into an agreement with a community-based organization to rehabilitate the residential property, such agreement shall be made with the express condition that, after the rehabilitation project is complete, the owner shall:
(i) sell the residential property for no less
than its fair market value; and
(ii) use any proceeds from the sale to (a)
reimburse the community-based organization for all costs associated with rehabilitating the property and (b) make satisfactory payment for any other claims against the property. Any remaining sale proceeds of the residential property shall be distributed as follows:
(I) 20% shall be distributed to the owner.
(II) 80% shall be deposited into the Training
in the Building Trades Fund created under subsection (e).
(c) The Department of Commerce and Economic Opportunity shall select from each of the following geographical regions of the State a community-based organization with experience working with the building trades:
(1) Central Illinois.
(2) Northeastern Illinois.
(3) Southern (Metro-East) Illinois.
(4) Southern Illinois.
(5) Western Illinois.
(d) Grants awarded under this Section shall be funded through appropriations from the Training in the Building Trades Fund created under subsection (e). The Department of Commerce and Economic Opportunity may adopt any rules necessary to implement the provisions of this Section.
(e) The Training in the Building Trades Fund is created as a special fund in the State treasury. The Fund shall consist of any moneys deposited into the Fund as provided in subparagraph (B) of paragraph (2) of subsection (b) and any moneys appropriated to the Department of Commerce and Economic Opportunity for the Training in the Building Trades Program. Moneys in the Fund shall be expended for the Training in the Building Trades Program under subsection (a) and for no other purpose. All interest earned on moneys in the Fund shall be deposited into the Fund.
(Source: P.A. 101-469, eff. 1-1-20.)
(Text of Section from P.A. 101-497)
Assessment of marketing programs.
The Department shall, in consultation with the General Assembly, complete an assessment of its current practices related to marketing programs administered by the Department and the extent to which the Department assists Illinois residents in the use and coordination of programs offered by the Department. That assessment shall be completed by December 31, 2019.
Upon review of the assessment, if the Department, in consultation with the General Assembly, concludes that a Citizens Services Coordinator is needed to assist Illinois residents in obtaining services and programs offered by the Department, then the Department may, subject to appropriation, hire an individual to serve as a Citizens Services Coordinator. The Citizens Services Coordinator shall assist Illinois residents seeking out and obtaining services and programs offered by the Department and shall monitor resident inquiries to determine which services are most in demand on a regional basis.
(Source: P.A. 101-497, eff. 1-1-20.)