91st General Assembly
Summary of SB0040
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Short description: 
ECONOMIC DEVEL TAX CREDIT ACT                                              

Synopsis of Bill as introduced:
        Creates the Economic Development for a Growing Economy Tax Credit      
   Act.  Provides that the Department of Commerce and  Community  Affairs      
   (DCCA), in cooperation with the Department of Revenue, shall grant tax      
   credits  against  Illinois income tax liability to applicants creating      
   new jobs in Illinois if the applicant's project  to  create  new  jobs      
   meets  certain  criteria,  including the creation of 100 new full-time      
   jobs in Illinois.  Provides that DCCA shall enter into agreements with      
   the qualifying applicants.  Provides that credit awards under the  Act      
   shall   be  used  for  certain purposes, including capital investment,      
   infrastructure development, debt service,  research  and  development,      
   job   training  and  education,  lease  costs,  or  relocation  costs.      
   Provides that DCCA shall determine the  duration  and  amount  of  the      
   credit.   Provides  that the duration may not exceed 15 taxable years.      
   Provides that the credit may be stated as  a  percentage  of  the  new      
   employees'  income  tax  withholdings  attributable to the applicant's      
   project and may include a fixed dollar limitation.  Provides  that  if      
   the  Director of DCCA determines that an applicant is in noncompliance      
   with  the    provisions  of   this  Act, the Director shall notify the      
   taxpayer of  the  alleged  noncompliance  and  allow  the  taxpayer  a      
   reasonable opportunity to explain the noncompliance.  Provides that if      
   after  this  period  the Director determines the applicant is still in      
   noncompliance, the Director shall instruct the Department  of  Revenue      
   to  issue  a  notice  of  deficiency  to  the  taxpayer.  Requires the      
   Director to submit an annual report on the tax  credit  program  under      
   this  Act  to the Governor and the General Assembly.  Requires DCCA to      
   evaluate the tax credit program biennially and submit  its  findings        
   to  the  Governor  and  the  General Assembly.  Provides that DCCA may      
   adopt rules to implement the provisions of the Act, including charging      
   a fee to recipients of tax credit awards for administration of the tax      
   credit program.  Provides that the charges collected, if any, shall be      
   deposited into the Economic Development for a  Growing  Economy  Fund.      
   Amends the State  Finance Act to create the Fund.  Amends the Illinois      
   Income  Tax  Act  to  create  the  Economic  Development for a Growing      
   Economy Tax Credit.  Exempts the credit from the  sunset provisions.        
        SENATE AMENDMENT NO. 1.                                                
          Adds reference to:                                                   
          20 ILCS 605/46.62               from Ch. 127, par. 46.62             
          30 ILCS 105/5.490 new                                                
          35 ILCS 5/211 new                                                    
          20 ILCS 700/1002                from Ch. 127, par. 3701-2            
          20 ILCS 700/1003                from Ch. 127, par. 3701-3            
          20 ILCS 700/1004                from Ch. 127, par. 3701-4            
          20 ILCS 700/2001                from Ch. 127, par. 3702-1            
          20 ILCS 700/2002                from Ch. 127, par. 3702-2            
          20 ILCS 700/2003                from Ch. 127, par. 3702-3            
          20 ILCS 700/Art. 3 heading                                           
          20 ILCS 700/3001                from Ch. 127, par. 3703-1            
          20 ILCS 700/3002                from Ch. 127, par. 3703-2            
          20 ILCS 700/3003                from Ch. 127, par. 3703-3            
          20 ILCS 700/3004                from Ch. 127, par. 3703-4            
          20 ILCS 700/3004.5 new                                               
          20 ILCS 700/Art. 3.5 heading new                                     
          20 ILCS 700/3501 new                                                 
          20 ILCS 700/3505 new                                                 
          20 ILCS 700/3510 new                                                 
          20 ILCS 700/3515 new                                                 
          20 ILCS 700/3520 new                                                 
          20 ILCS 700/3525 new                                                 
          20 ILCS 700/3530 new                                                 
          20 ILCS 700/4003                from Ch. 127, par. 3704-3            
          20 ILCS 605/46.32a              from Ch. 127, par. 46.32a            
          20 ILCS 605/46.19a              from Ch. 127, par. 46.19a            
          20 ILCS 705/20                                                       
          20 ILCS 3965/3                  from Ch. 127, par. 3953              
          20 ILCS 3965/4.5 new                                                 
          30 ILCS 575/9                   from Ch. 127, par. 132.609           
          20 ILCS 605/46.44 rep.                                               
        Deletes  everything.   Reinserts  the  provisions  of  the  bill.      
   Specifies certain duties and powers of the Department of Commerce  and      
   Community Affairs under the Economic Development for a Growing Economy      
   Tax  Credit  Act.    Establishes  additional  requirements for the tax      
   credit. Amends the Technology Advancement and Development Act. Changes      
   the name of the Advanced Technology Investment Program to the Illinois      
   Technology Enterprise Development and  Investment  Program.   Provides      
   that  the  Department  of  Commerce  and  Community  Affairs  may fund      
   regional technology enterprise development centers and provide  grants      
   under  the  program  with intermediary organizations and participating      
   lenders  or  investors.   Establishes  Technology  Enterprise  Centers      
   requirements.  Amends the Civil Administrative  Code  of  Illinois  to      
   make  a  corresponding  program title change. Establishes the Business      
   Modernization  Initiative  and  Manufacturing  Extension  Program   to      
   develop,  commercialize,  and fund the transfer of new technologies to      
   public  and  private   entities   with   assistance   from   financial      
   intermediaries.  Further  amends  the  Civil  Administrative  Code  of      
   Illinois  concerning the Department of Commerce and Community Affairs.      
   Creates  a  Labor-Management-Community  Cooperation   Committee   (now      
   Labor-Management)  within  the  Department.   Adds  to the Committee 6      
   community leadership appointees and the Secretary of  Human  Services,      
   and Directors of Public Health and Employment Security.  Provides that      
   the  committee  shall  support  the development of local coalitions to      
   implement family-friendly workplace policies and advise the Department      
   on dependent care and  other  employment-related  family  initiatives.      
   Authorizes the Committee to make $5,000 grants to support the planning      
   of  regional  community  conferences  and  to  make  grants to support      
   employer pilot projects that promote work and  family  issues  and  to      
   support  local  workforce  dependent  care  services.   Authorizes the      
   Department to establish an Illinois  Work  and  Family  Clearinghouse.      
   Creates  the  Illinois  Business  Regulatory  Review  Act  to  form an      
   Economic Development Board Committee to make recommendations to revise      
   agency rules that  burden  small  businesses.  Authorizes  grants  for      
   entrepreneurial education and training initiatives for youth and adult      
   learners.   Amends  the  Women's  Business Ownership Act to change the      
   repeal date to September 1, 2004  (now  1999).   Amends  the  Illinois      
   Economic  Development Board Act to change the membership of the Board.      
   Mandates that the  board  establish  a  Business  Investment  Location      
   Development  Committee  and  a  Business  Regulatory Review Committee.      
   Amends the Business Enterprise for  Minorities,  Females  and  Persons      
   with  Disabilities  Act to change the repeal date to September 6, 2004      
   (now 1999). Creates the State and Regional Development Strategy Act to      
   mandate that the Department of Commerce and Community Affairs  prepare      
   an  economic  development  strategy  for  the  State  every  4  years.      
   Provides  that  the  strategy  shall contain components concerning the      
   State's  needs  for  competitive  commerce  and   industry   and   for      
   partnerships  between  the  public and private sectors.  Provides that      
   the  strategy  must  be  published  and  submitted  to  the  Governor,      
   President and Minority Leader of  the  Senate,  Speaker  and  Minority      
   Leader   of  the  House  of  Representatives,  the  Illinois  Economic      
   Development Board, and the Economic and Fiscal Commission.  Amends the      
   Civil Administrative Code of Illinois  concerning  the  Department  of      
   Commerce  and  Community Affairs. Deletes the provisions mandating the      
   preparation of a similar economic development  strategy.  Makes  other      
   changes. Effective immediately.                                             
        SENATE AMENDMENT NO. 2.                                                
        In the new Economic Development for a Growing Economy Tax Credit       
   Act, provides that "noncompliance date" means the day following the         
   last date (instead of the last date) upon which the taxpayer was in         
   compliance with the agreement under the Act. Provides that in con-          
   sidering an applicant's project for a credit, the political sub-            
   divisions affected by the project must have committed local incentives      
   considering the local ability to assist. Provides that the applicant's      
   agreement must include a requirement that project operations shall be       
   stated as a minimum number of years not to exceed 10 (now may be stat-      
   ed as a minimum number of years or a multiple of the credit dura-           
   tion). In the Development Corporation Program of the Technology Ad-         
   vancement and Development Act, provides that financial assistance may       
   be in the form of qualified security investments (now qualified             
   securities). Makes other changes.                                           
        HOUSE AMENDMENT NO. 1.                                                 
        Provides  that  to  qualify  for  a  credit  under  the  Economic      
   Development for a  Growing  Economy  Tax  Credit  Act  an  applicant's      
   project  must meet the Act's investment and employment requirements or      
   (now and) meet the  Department  of  Commerce  and  Community  Affairs'      
   investment and employment requirements.                                     
Last action on Bill: PUBLIC ACT.............................. 91-0476

   Last action date: 99-08-11

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   2


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