Public Act 102-0669
 
HB1769 EnrolledLRB102 10422 HLH 15750 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Reimagining Electric Vehicles in Illinois Act.
 
    Section 5. Purpose. It is the intent of the General
Assembly that Illinois should lead the nation in the
production of electric vehicles. The General Assembly finds
that, through investments in electric vehicle manufacturing,
Illinois will be on the forefront of emerging technologies
that are currently transforming the auto manufacturing
industry. This Act will reduce carbon emissions, create good
paying jobs, and generate long-term economic investment in the
Illinois business economy. Illinois must aggressively adopt
new business development investment tools so that Illinois is
more competitive in site location decision-making for
manufacturing facilities directly related to the electric
vehicle industry. Illinois' long-term development benefits
from rational, strategic use of State resources in support of
development and growth in the electric vehicle industry.
    The General Assembly finds that workers are essential to
the prosperity of our State's economy and play a critical role
in Illinois becoming leader in manufacturing. The General
Assembly further finds that, for the prosperity of our State,
workers in this industry must be afforded high quality jobs
that honor the dignity of work. Therefore, the General
Assembly finds that it is in the best interest of Illinois to
protect the work conditions, worker safety, and worker rights
in the manufacturing industry and further finds that employer
workplace policies shall be interpreted broadly to protect
employees.
 
    Section 10. Definitions. As used in this Act:
    "Agreement" means the agreement between a taxpayer and the
Department under the provisions of Section 45 of this Act.
    "Applicant" means a taxpayer that (i) operates a business
in Illinois or is planning to locate a business within the
State of Illinois and (ii) is engaged in interstate or
intrastate commerce for the purpose of manufacturing electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment. "Applicant" does not include a
taxpayer who closes or substantially reduces by more than 50%
operations at one location in the State and relocates
substantially the same operation to another location in the
State. This does not prohibit a Taxpayer from expanding its
operations at another location in the State. This also does
not prohibit a Taxpayer from moving its operations from one
location in the State to another location in the State for the
purpose of expanding the operation, provided that the
Department determines that expansion cannot reasonably be
accommodated within the municipality or county in which the
business is located, or, in the case of a business located in
an incorporated area of the county, within the county in which
the business is located, after conferring with the chief
elected official of the municipality or county and taking into
consideration any evidence offered by the municipality or
county regarding the ability to accommodate expansion within
the municipality or county.
    "Capital improvements" means the purchase, renovation,
rehabilitation, or construction of permanent tangible land,
buildings, structures, equipment, and furnishings in an
approved project sited in Illinois and expenditures for goods
or services that are normally capitalized, including
organizational costs and research and development costs
incurred in Illinois. For land, buildings, structures, and
equipment that are leased, the lease must equal or exceed the
term of the agreement, and the cost of the property shall be
determined from the present value, using the corporate
interest rate prevailing at the time of the application, of
the lease payments.
    "Credit" means either a "REV Illinois Credit" or a "REV
Construction Jobs Credit" agreed to between the Department and
applicant under this Act.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of Commerce and Economic
Opportunity.
    "Electric vehicle" means a vehicle that is exclusively
powered by and refueled by electricity, must be plugged in to
charge or utilize a pre-charged battery, and is permitted to
operate on public roadways. "Electric vehicle" does not
include hybrid electric vehicles and extended-range electric
vehicles that are also equipped with conventional fueled
propulsion or auxiliary engines.
    "Electric vehicle manufacturer" means a new or existing
manufacturer that is focused on reequipping, expanding, or
establishing a manufacturing facility in Illinois that
produces electric vehicles as defined in this Section.
    "Electric vehicle component parts manufacturer" means a
new or existing manufacturer that is primarily focused on
reequipping, expanding, or establishing a manufacturing
facility in Illinois that produces key components that
directly support the electric functions of electric vehicles,
as defined by this Section.
    "Electric vehicle power supply equipment" means the
equipment used specifically for the purpose of delivering
electricity to an electric vehicle.
    "Electric vehicle power supply manufacturer" means a new
or existing manufacturer that is focused on reequipping,
expanding, or establishing a manufacturing facility in
Illinois that produces electric vehicle power supply equipment
used for the purpose of delivering electricity to an electric
vehicle.
    "Energy Transition Area" means a county with less than
100,000 people or a municipality that contains one or more of
the following:
        (1)a fossil fuel plant that was retired from service
    or has significant reduced service within 6 years before
    the time of the application or will be retired or have
    service significantly reduced within 6 years following the
    time of the application; or
        (2) a coal mine that was closed or had operations
    significantly reduced within 6 years before the time of
    the application or is anticipated to be closed or have
    operations significantly reduced within 6 years following
    the time of the application.
    "Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week.
    "Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
    "Institution of higher education" or "institution" means
any accredited public or private university, college,
community college, business, technical, or vocational school,
or other accredited educational institution offering degrees
and instruction beyond the secondary school level.
    "Minority person" means a minority person as defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act.
    "New employee" means a newly-hired full-time employee
employed to work at the project site and whose work is directly
related to the project.
    "Noncompliance date" means, in the case of a taxpayer that
is not complying with the requirements of the agreement or the
provisions of this Act, the day following the last date upon
which the taxpayer was in compliance with the requirements of
the agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 70.
    "Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
    "Placed in service" means the state or condition of
readiness, availability for a specifically assigned function,
and the facility is constructed and ready to conduct its
facility operations to manufacture goods.
    "Professional employer organization" (PEO) means an
employee leasing company, as defined in Section 206.1 of the
Illinois Unemployment Insurance Act.
    "Program" means the Reimagining Electric Vehicles in
Illinois Program (the REV Illinois Program) established in
this Act.
    "Project" or "REV Illinois Project" means a for-profit
economic development activity for the manufacture of electric
vehicles, electric vehicle component parts, or electric
vehicle power supply equipment which is designated by the
Department as a REV Illinois Project and is the subject of an
agreement.
    "Recycling facility" means a location at which the
taxpayer disposes of batteries and other component parts in
manufacturing of electric vehicles, electric vehicle component
parts, or electric vehicle power supply equipment.
    "Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of
the following:
        (1) An individual stockholder, if the stockholder and
    the members of the stockholder's family (as defined in
    Section 318 of the Internal Revenue Code) own directly,
    indirectly, beneficially, or constructively, in the
    aggregate, at least 50% of the value of the taxpayer's
    outstanding stock.
        (2) A partnership, estate, trust and any partner or
    beneficiary, if the partnership, estate, or trust, and its
    partners or beneficiaries own directly, indirectly,
    beneficially, or constructively, in the aggregate, at
    least 50% of the profits, capital, stock, or value of the
    taxpayer.
        (3) A corporation, and any party related to the
    corporation in a manner that would require an attribution
    of stock from the corporation under the attribution rules
    of Section 318 of the Internal Revenue Code, if the
    Taxpayer owns directly, indirectly, beneficially, or
    constructively at least 50% of the value of the
    corporation's outstanding stock.
        (4) A corporation and any party related to that
    corporation in a manner that would require an attribution
    of stock from the corporation to the party or from the
    party to the corporation under the attribution rules of
    Section 318 of the Internal Revenue Code, if the
    corporation and all such related parties own in the
    aggregate at least 50% of the profits, capital, stock, or
    value of the taxpayer.
        (5) A person to or from whom there is an attribution of
    stock ownership in accordance with Section 1563(e) of the
    Internal Revenue Code, except, for purposes of determining
    whether a person is a related member under this paragraph,
    20% shall be substituted for 5% wherever 5% appears in
    Section 1563(e) of the Internal Revenue Code.
    "Retained employee" means a full-time employee employed by
the taxpayer prior to the term of the Agreement who continues
to be employed during the term of the agreement whose job
duties are directly and substantially related to the project.
For purposes of this definition, "directly and substantially
related to the project" means at least two-thirds of the
employee's job duties must be directly related to the project
and the employee must devote at least two-thirds of his or her
time to the project. The term "retained employee" does not
include any individual who has a direct or an indirect
ownership interest of at least 5% in the profits, equity,
capital, or value of the taxpayer or a child, grandchild,
parent, or spouse, other than a spouse who is legally
separated from the individual, of any individual who has a
direct or indirect ownership of at least 5% in the profits,
equity, capital, or value of the taxpayer.
    "REV Illinois credit" means a credit agreed to between the
Department and the applicant under this Act that is based on
the incremental income tax attributable to new employees and,
if applicable, retained employees, and on training costs for
such employees at the applicant's project.
    "REV construction jobs credit" means a credit agreed to
between the Department and the applicant under this Act that
is based on the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities.
    "Statewide baseline" means the total number of full-time
employees of the applicant and any related member employed by
such entities at the time of application for incentives under
this Act.
    "Taxpayer" means an individual, corporation, partnership,
or other entity that has a legal obligation to pay Illinois
income taxes and file an Illinois income tax return.
    "Training costs" means costs incurred to upgrade the
technological skills of full-time employees in Illinois and
includes: curriculum development; training materials
(including scrap product costs); trainee domestic travel
expenses; instructor costs (including wages, fringe benefits,
tuition and domestic travel expenses); rent, purchase or lease
of training equipment; and other usual and customary training
costs. "Training costs" do not include costs associated with
travel outside the United States (unless the Taxpayer receives
prior written approval for the travel by the Director based on
a showing of substantial need or other proof the training is
not reasonably available within the United States), wages and
fringe benefits of employees during periods of training, or
administrative cost related to Full-Time Employees of the
Taxpayer.
    "Underserved area" means any geographic areas as defined
in Section 5-5 of the Economic Development for a Growing
Economy Tax Credit Act.
 
    Section 15. Powers of the Department. The Department, in
addition to those powers granted under the Civil
Administrative Code of Illinois, is granted and shall have all
the powers necessary or convenient to administer the program
under this Act and to carry out and effectuate the purposes and
provisions of this Act, including, but not limited to, the
power and authority to:
        (1) adopt rules deemed necessary and appropriate for
    the administration of the REV Illinois Program, the
    designation of REV Illinois Projects, and the awarding of
    credits;
        (2) establish forms for applications, notifications,
    contracts, or any other agreements and accept applications
    at any time during the year;
        (3) assist taxpayers pursuant to the provisions of
    this Act and cooperate with taxpayers that are parties to
    agreements under this Act to promote, foster, and support
    economic development, capital investment, and job creation
    or retention within the State;
        (4) enter into agreements and memoranda of
    understanding for participation of, and engage in
    cooperation with, agencies of the federal government,
    units of local government, universities, research
    foundations or institutions, regional economic development
    corporations, or other organizations to implement the
    requirements and purposes of this Act;
        (5) gather information and conduct inquiries, in the
    manner and by the methods it deems desirable, including
    without limitation, gathering information with respect to
    applicants for the purpose of making any designations or
    certifications necessary or desirable or to gather
    information to assist the Department with any
    recommendation or guidance in the furtherance of the
    purposes of this Act;
        (6) establish, negotiate and effectuate agreements and
    any term, agreement, or other document with any person,
    necessary or appropriate to accomplish the purposes of
    this Act; and to consent, subject to the provisions of any
    agreement with another party, to the modification or
    restructuring of any agreement to which the Department is
    a party;
        (7) fix, determine, charge, and collect any premiums,
    fees, charges, costs, and expenses from applicants,
    including, without limitation, any application fees,
    commitment fees, program fees, financing charges, or
    publication fees as deemed appropriate to pay expenses
    necessary or incident to the administration, staffing, or
    operation in connection with the Department's activities
    under this Act, or for preparation, implementation, and
    enforcement of the terms of the agreement, or for
    consultation, advisory and legal fees, and other costs;
    however, all fees and expenses incident thereto shall be
    the responsibility of the applicant;
        (8) provide for sufficient personnel to permit
    administration, staffing, operation, and related support
    required to adequately discharge its duties and
    responsibilities described in this Act from funds made
    available through charges to applicants or from funds as
    may be appropriated by the General Assembly for the
    administration of this Act;
        (9) require applicants, upon written request, to issue
    any necessary authorization to the appropriate federal,
    State, or local authority for the release of information
    concerning a project being considered under the provisions
    of this Act, with the information requested to include,
    but not be limited to, financial reports, returns, or
    records relating to the taxpayer or its project;
        (10) require that a taxpayer shall at all times keep
    proper books of record and account in accordance with
    generally accepted accounting principles consistently
    applied, with the books, records, or papers related to the
    agreement in the custody or control of the taxpayer open
    for reasonable Department inspection and audits, and
    including, without limitation, the making of copies of the
    books, records, or papers, and the inspection or appraisal
    of any of the taxpayer or project assets;
        (11) take whatever actions are necessary or
    appropriate to protect the State's interest in the event
    of bankruptcy, default, foreclosure, or noncompliance with
    the terms and conditions of financial assistance or
    participation required under this Act, including the power
    to sell, dispose, lease, or rent, upon terms and
    conditions determined by the Director to be appropriate,
    real or personal property that the Department may receive
    as a result of these actions.
 
    Section 20. REV Illinois Program; project applications.
    (a) The Reimagining Electric Vehicles in Illinois (REV
Illinois) Program is hereby established and shall be
administered by the Department. The Program will provide
financial incentives to eligible manufacturers of electric
vehicles, electric vehicle component parts, and electric
vehicle power supply equipment.
    (b) Any taxpayer planning a project to be located in
Illinois may request consideration for designation of its
project as a REV Illinois Project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire a specified number of
full-time employees at a designated location in Illinois. As
circumstances require, the Department shall require a formal
application from an applicant and a formal letter of request
for assistance.
    (c) In order to qualify for credits under the REV Illinois
Program, an Applicant must:
        (1) for an electric vehicle manufacturer:
            (A) make an investment of at least $1,500,000,000
        in capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create at least 500 new full-time employee
        jobs; or
        (2) for an electric vehicle component parts
    manufacturer:
            (A) make an investment of at least $300,000,000 in
        capital improvements at the project site;
            (B) manufacture one or more parts that are
        primarily used for electric vehicle manufacturing;
            (C) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (D) create at least 150 new full-time employee
        jobs; or
        (3) for an electric vehicle manufacturer, electric
    vehicle power supply equipment Manufacturer, or electric
    vehicle component part manufacturer that does not quality
    under paragraph (2) above:
            (A) make an investment of at least $20,000,000 in
        capital improvements at the project site;
            (B) for electric vehicle component part
        manufacturers, manufacture one or more parts that are
        primarily used for electric vehicle manufacturing;
            (C) to be placed in service within the State
        within a 48-month period after approval of the
        application; and
            (D) create at least 50 new full-time employee
        jobs; or
        (4) for an electric vehicle manufacturer or electric
    vehicle component parts manufacturer with existing
    operations within Illinois that intends to convert or
    expand, in whole or in part, the existing facility from
    traditional manufacturing to electric vehicle
    manufacturing, electric vehicle component parts
    manufacturing, or electric vehicle power supply equipment
    manufacturing:
            (A) make an investment of at least $100,000,000 in
        capital improvements at the project site;
            (B) to be placed in service within the State
        within a 60-month period after approval of the
        application; and
            (C) create the lesser of 75 new full-time employee
        jobs or new full-time employee jobs equivalent to 10%
        of the Statewide baseline applicable to the taxpayer
        and any related member at the time of application.
    (d) For any applicant creating the full-time employee jobs
noted in subsection (c), 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 project is
located, as determined by the U.S. Bureau of Labor Statistics.
    (e) For any applicant, within 24 months after being placed
in service, it must certify to the Department that it is carbon
neutral or has attained certification under one of more of the
following green building standards:
        (1) BREEAM for New Construction or BREEAM In-Use;
        (2) ENERGY STAR;
        (3) Envision;
        (4) ISO 50001 energy management;
        (5) LEED for Building Design and Construction or LEED
    for Building Operations and Maintenance;
        (6) Green Globes for New Construction or Green Globes
    for Existing Buildings; or
        (7) UL 3223.
    (f) Each applicant must outline its hiring plan and
commitment to recruit and hire full-time employee positions at
the project site. The hiring plan may include a partnership
with an institution of higher education to provide
internships, including, but not limited to, internships
supported by the Clean Jobs Workforce Network Program, or
full-time permanent employment for students at the project
site. Additionally, the applicant may create or utilize
participants from apprenticeship programs that are approved by
and registered with the United States Department of Labor's
Bureau of Apprenticeship and Training. The Applicant may apply
for apprenticeship education expense credits in accordance
with the provisions set forth in 14 Ill. Admin. Code 522. Each
applicant is required to report annually, on or before April
15, on the diversity of its workforce in accordance with
Section 50 of this Act. For existing facilities of applicants
under paragraph (3) of subsection (b) above, if the taxpayer
expects a reduction in force due to its transition to
manufacturing electric vehicle, electric vehicle component
parts, or electric vehicle power supply equipment, the plan
submitted under this Section must outline the taxpayer's plan
to assist with retraining its workforce aligned with the
taxpayer's adoption of new technologies and anticipated
efforts to retrain employees through employment opportunities
within the taxpayer's workforce.
    (g) Each applicant must demonstrate a contractual or other
relationship with a recycling facility, or demonstrate its own
recycling capabilities, at the time of application and report
annually a continuing contractual or other relationship with a
recycling facility and the percentage of batteries used in
electric vehicles recycled throughout the term of the
agreement.
    (h) A taxpayer may not enter into more than one agreement
under this Act with respect to a single address or location for
the same period of time. Also, a taxpayer may not enter into an
agreement under this Act with respect to a single address or
location for the same period of time for which the taxpayer
currently holds an active agreement under the Economic
Development for a Growing Economy Tax Credit Act. This
provision does not preclude the applicant from entering into
an additional agreement after the expiration or voluntary
termination of an earlier agreement under this Act or under
the Economic Development for a Growing Economy Tax Credit Act
to the extent that the taxpayer's application otherwise
satisfies the terms and conditions of this Act and is approved
by the Department. An applicant with an existing agreement
under the Economic Development for a Growing Economy Tax
Credit Act may submit an application for an agreement under
this Act after it terminates any existing agreement under the
Economic Development for a Growing Economy Tax Credit Act with
respect to the same address or location.
 
    Section 25. Review of application. The Department shall
determine which projects will benefit the State. In making its
recommendation that an applicant's application for credit
should or should not be accepted, which shall occur within a
reasonable time frame as determined by the nature of the
application, the Department shall determine that all the
following conditions exist:
        (1) the applicant intends to make the required
    investment in the State and intends to hire the required
    number of full-time employees;
        (2) the applicant's project is economically sound,
    will benefit the people of the State by increasing
    opportunities for employment, and will strengthen the
    economy of the State;
        (3) awarding the credit will result in an overall
    positive fiscal impact to the State, as certified by the
    Department using the best available data; and
        (4) the credit is not prohibited under this Act.
 
    Section 30. Tax credit awards.
    (a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against the tax imposed
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act for a taxable year beginning on or
after January 1, 2025 if the taxpayer is awarded a credit by
the Department in accordance with an agreement under this Act.
The Department has authority to award credits under this Act
on and after January 1, 2022.
    (b) REV Illinois Credits. A taxpayer may receive a tax
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act, not to exceed
the sum of (i) 75% of the incremental income tax attributable
to new employees at the applicant's project and (ii) 10% of the
training costs of the new employees. If the project is located
in an underserved area or an energy transition area, then the
amount of the credit may not exceed the sum of (i) 100% of the
incremental income tax attributable to new employees at the
applicant's project; and (ii) 10% of the training costs of the
new employees. The percentage of training costs includable in
the calculation may be increased by an additional 15% for
training costs associated with new employees that are recent
(2 years or less) graduates, certificate holders, or
credential recipients from an institution of higher education
in Illinois, or, if the training is provided by an institution
of higher education in Illinois, the Clean Jobs Workforce
Network Program, or an apprenticeship and training program
located in Illinois and approved by and registered with the
United States Department of Labor's Bureau of Apprenticeship
and Training. An applicant is also eligible for a training
credit that shall not exceed 10% of the training costs of
retained employees for the purpose of upskilling to meet the
operational needs of the applicant or the REV Illinois
Project. The percentage of training costs includable in the
calculation shall not exceed a total of 25%. If an applicant
agrees to hire the required number of new employees, then the
maximum amount of the credit for that applicant may be
increased by an amount not to exceed 25% of the incremental
income tax attributable to retained employees at the
applicant's project; provided that, in order to receive the
increase for retained employees, the applicant must, if
applicable, meet or exceed the statewide baseline. If the
Project is in an underserved area or an energy transition
area, the maximum amount of the credit attributable to
retained employees for the applicant may be increased to an
amount not to exceed 50% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must meet or exceed the statewide
baseline. REV Illinois Credits awarded may include credit
earned for incremental income tax withheld and training costs
incurred by the taxpayer beginning on or after January 1,
2022. Credits so earned and certified by the Department may be
applied against the tax imposed by subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for taxable years
beginning on or after January 1, 2025.
    (c) REV Construction Jobs Credit. For construction wages
associated with a project that qualified for a REV Illinois
Credit under subsection (b), the taxpayer may receive a tax
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act in an amount
equal to 50% of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities, as a jobs credit for workers hired to
construct the project.
    The REV Construction Jobs Credit may not exceed 75% of the
amount of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities if the project is in an underserved area or
an energy transition area.
    (d) The Department shall certify to the Department of
Revenue: (1) the identity of Taxpayers that are eligible for
the REV Illinois Credit and REV Construction Jobs Credit; (2)
the amount of the REV Illinois Credits and REV Construction
Jobs Credits awarded in each calendar year; and (3) the amount
of the REV Illinois Credit and REV Construction Jobs Credit
claimed in each calendar year. REV Illinois Credits awarded
may include credit earned for Incremental Income Tax withheld
and Training Costs incurred by the Taxpayer beginning on or
after January 1, 2022. Credits so earned and certified by the
Department may be applied against the tax imposed by Section
201(a) and (b) of the Illinois Income Tax Act for taxable years
beginning on or after January 1, 2025.
    (e) Applicants seeking certification for a tax credits
related to the construction of the project facilities in the
State shall require the contractor to enter into a project
labor agreement that conforms with the Project Labor
Agreements Act.
    (f) Any applicant issued a certificate for a tax credit or
tax exemption under this Act must annually report to the
Department the total project tax benefits received. Reports
are due no later than May 31 of each year and shall cover the
previous calendar year. The first report is for the 2022
calendar year and is due no later than May 31, 2023.
    (g) Nothing in this Act shall prohibit an award of credit
to an applicant that uses a PEO if all other award criteria are
satisfied.
    (h) With respect to any portion of a REV Illinois Credit
that is based on the incremental income tax attributable to
new employees or retained employees, in lieu of the Credit
allowed under this Act against the taxes imposed pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, a taxpayer that otherwise meets the criteria set
forth in this Section, the taxpayer may elect to claim the
credit, on or after January 1, 2025, against its obligation to
pay over withholding under Section 704A of the Illinois Income
Tax Act. The election shall be made in the manner prescribed by
the Department of Revenue and once made shall be irrevocable.
 
    Section 35. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim a credit provided by this Act with
respect to any jobs that the Taxpayer relocates from one site
in Illinois to another site in Illinois. Any full-time
employee relocated to Illinois in connection with a qualifying
project is deemed to be a new employee for purposes of this
Act. Determinations under this Section shall be made by the
Department.
 
    Section 40. Amount and duration of the credits; limitation
to amount of costs of specified items. The Department shall
determine the amount and duration of the REV Illinois Credit
awarded under this Act, subject to the limitations set forth
in this Act. For a project that qualified under paragraph (1),
(2), or (4) of subsection (c) of Section 20, the duration of
the credit may not exceed 15 taxable years. For project that
qualified under paragraph (3) of subsection (c) of Section 20,
the duration of the credit may not exceed 10 taxable years. The
credit may be stated as a percentage of the incremental income
tax and training costs attributable to the applicant's project
and may include a fixed dollar limitation.
    Nothing in this Section shall prevent the Department, in
consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits a taxpayer may be in possession of, as
provided for in Section 605-1055 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois, notwithstanding the carry-forward provisions
pursuant to paragraph (4) of Section 211 of the Illinois
Income Tax Act.
 
    Section 45. Contents of agreements with applicants.
    (a) The Department shall enter into an agreement with an
applicant that is awarded a credit under this Act. The
agreement shall include all of the following:
        (1) A detailed description of the project that is the
    subject of the agreement, including the location and
    amount of the investment and jobs created or retained.
        (2) The duration of the credit, the first taxable year
    for which the credit may be awarded, and the first taxable
    year in which the credit may be used by the taxpayer.
        (3) The credit amount that will be allowed for each
    taxable year.
        (4) For a project qualified under paragraphs (1), (2),
    or (4) of subsection (c) of Section 20, a requirement that
    the taxpayer shall maintain operations at the project
    location a minimum number of years not to exceed 15. For
    project qualified under paragraph (3) of subsection (c) of
    Section 20, a requirement that the taxpayer shall maintain
    operations at the project location a minimum number of
    years not to exceed 10.
        (5) A specific method for determining the number of
    new employees and if applicable, retained employees,
    employed during a taxable year.
        (6) A requirement that the taxpayer shall annually
    report to the Department the number of new employees, the
    incremental income tax withheld in connection with the new
    employees, and any other information the Department deems
    necessary and appropriate to perform its duties under this
    Act.
        (7) A requirement that the Director is authorized to
    verify with the appropriate State agencies the amounts
    reported under paragraph (6), and after doing so shall
    issue a certificate to the taxpayer stating that the
    amounts have been verified.
        (8) A requirement that the taxpayer shall provide
    written notification to the Director not more than 30 days
    after the taxpayer makes or receives a proposal that would
    transfer the taxpayer's State tax liability obligations to
    a successor taxpayer.
        (9) A detailed description of the number of new
    employees to be hired, and the occupation and payroll of
    full-time jobs to be created or retained because of the
    project.
        (10) The minimum investment the taxpayer will make in
    capital improvements, the time period for placing the
    property in service, and the designated location in
    Illinois for the investment.
        (11) A requirement that the taxpayer shall provide
    written notification to the Director and the Director's
    designee not more than 30 days after the taxpayer
    determines that the minimum job creation or retention,
    employment payroll, or investment no longer is or will be
    achieved or maintained as set forth in the terms and
    conditions of the agreement. Additionally, the
    notification should outline to the Department the number
    of layoffs, date of the layoffs, and detail taxpayer's
    efforts to provide career and training counseling for the
    impacted workers with industry-related certifications and
    trainings.
        (12) A provision that, if the total number of new
    employees falls below a specified level, the allowance of
    credit shall be suspended until the number of new
    employees equals or exceeds the agreement amount.
        (13) If applicable, a provision that specifies the
    statewide baseline at the time of application for retained
    employees. Additionally, the agreement must have a
    provision addressing if the total number retained
    employees falls below the statewide baseline, the
    allowance of the credit shall be suspended until the
    number of retained employees equals or exceeds the
    agreement amount.
        (14) A detailed description of the items for which the
    costs incurred by the Taxpayer will be included in the
    limitation on the Credit provided in Section 40.
        (15) A provision stating that if the taxpayer fails to
    meet either the investment or job creation and retention
    requirements specified in the agreement during the entire
    5-year period beginning on the first day of the first
    taxable year in which the agreement is executed and ending
    on the last day of the fifth taxable year after the
    agreement is executed, then the agreement is automatically
    terminated on the last day of the fifth taxable year after
    the agreement is executed, and the taxpayer is not
    entitled to the award of any credits for any of that 5-year
    period.
        (16) A provision stating that if the taxpayer ceases
    principal operations with the intent to permanently shut
    down the project in the State during the term of the
    Agreement, then the entire credit amount awarded to the
    taxpayer prior to the date the taxpayer ceases principal
    operations shall be returned to the Department and shall
    be reallocated to the local workforce investment area in
    which the project was located.
        (17) A provision stating that the Taxpayer must
    provide the reports outlined in Sections 50 and 55 on or
    before April 15 each year.
        (18) A provision requiring the taxpayer to report
    annually its contractual obligations or otherwise with a
    recycling facility for its operations.
        (19) Any other performance conditions or contract
    provisions the Department determines are necessary or
    appropriate.
        (20) Each taxpayer under paragraph (1) of subsection
    (c) of Section 20 above shall maintain labor neutrality
    toward any union organizing campaign for any employees of
    the taxpayer assigned to work on the premises of the REV
    Illinois Project Site. This paragraph shall not apply to
    an electric vehicle manufacturer, electric vehicle
    component part manufacturer, electric vehicle power supply
    manufacturer or any joint venture including an electric
    vehicle manufacturer, electric vehicle component part
    manufacturer, and electric vehicle power supply
    manufacturer, who is subject to collective bargaining
    agreement entered into prior to the taxpayer filing an
    application pursuant to this Act.
    (b) The Department shall post on its website the terms of
each agreement entered into under this Act. Such information
shall be posted within 10 days after entering into the
agreement and must include the following:
        (1) the name of the taxpayer;
        (2) the location of the project;
        (3) the estimated value of the credit;
        (4) the number of new employee jobs and, if
    applicable, number of retained employee jobs at the
    project; and
        (5) whether or not the project is in an underserved
    area or energy transition area.
 
    Section 50. Diversity report on the taxpayer's workforce,
board of directors, and vendors.
    (a) Each taxpayer with a workforce of 100 or more
employees and with an agreement for a REV Illinois project
under this Act shall, starting on April 15, 2025, and every
year thereafter prior to April 15, for which the Taxpayer has
an Agreement under this Act, submit to the Department an
annual report detailing the diversity of the taxpayer's own
workforce, including full-time and part-time employees,
contractors, and board of directors' membership. Any taxpayer
seeking to claim a credit under this Act that fails to timely
submit the required report shall not receive a credit for that
taxable year unless and until such report is finalized and
submitted to the Department. The report should also address
the Taxpayer's best efforts to meet or exceed the recruitment
and hiring plan outlined in the application referenced in
Section 20. Those reports shall be submitted in the form and
manner required by the Department.
    (b) Vendor diversity and annual report. Each taxpayer with
a workforce of 100 or more full-time employees shall, starting
on April 15, 2025 and every year thereafter for which the
taxpayer has an Agreement under this Act, report on the
diversity of the vendors that it utilizes, for publication on
the Department's website, and include the following
information:
        (1) a point of contact for potential vendors to
    register with the taxpayer's REV Illinois Project;
        (2) certifications that the taxpayer accepts or
    recognizes for minority and women-owned businesses as
    entities;
        (3) the taxpayers goals to contract with diverse
    vendors, if any, for the next fiscal year for the entire
    budget of the Taxpayer's REV Illinois Project;
        (4) for the last fiscal year, the actual contractual
    spending for the entire budget of the REV Illinois Project
    and the actual spending for minority-owned businesses and
    women-owned businesses, expressed as a percentage of the
    total budget for actual spending for the REV Illinois
    project;
        (5) A narrative explaining the results of the report
    and the taxpayer's plan to address the voluntary goals for
    the next fiscal year; and
        (6) A copy of the taxpayer's submission of vendor
    diversity information to the federal government, including
    but not limited to vendor diversity goals and actual
    contractual spending for minority-and women-owned
    businesses, if the Taxpayer is a federal contractor and is
    required by the federal government to submit such
    information.
 
    Section 55. Sexual harassment policy report. Each taxpayer
claiming a credit under this Act shall, prior to April 15 of
each taxable year for which the taxpayer claims a credit under
this Act, submit to the Department a report detailing that
taxpayer's sexual harassment policy, which contains, at a
minimum, the following information: (i) the illegality of
sexual harassment; (ii) the definition of sexual harassment
under State law; (iii) a description of sexual harassment,
utilizing examples; (iv) the vendor's internal complaint
process, including penalties; (v) the legal recourse and
investigative and complaint processes available through the
Department; (vi) directions on how to contact the Department;
and (vii) protection against retaliation as provided by
Section 6-101 of the Illinois Human Rights Act. A copy of the
policy shall be provided to the Department upon request. The
reports required under this Section shall be submitted in a
form and manner determined by the Department.
 
    Section 60. Certificate of verification; submission to the
Department of Revenue.
    (a) A taxpayer claiming a credit under this Act shall
submit to the Department of Revenue a copy of the Director's
certificate of verification under this Act for the taxable
year. However, failure to submit a copy of the certificate
with the taxpayer's tax return shall not invalidate a claim
for a credit.
    (b) For a taxpayer to be eligible for a certificate of
verification, the taxpayer shall provide proof as required by
the Department, prior to the end of each calendar year,
including, but not limited to, attestation by the taxpayer
that:
        (1) The project has achieved the level of new employee
    jobs specified in the agreement.
        (2) The project has achieved the level of annual
    payroll in Illinois specified in its agreement.
        (3) The project has achieved the level of capital
    improvements in Illinois specified in its agreement.
        (4) The project has achieved and maintained carbon
    neutrality or one of the certifications specified in this
    Act.
 
    Section 65. Certified payroll.
    (a) Each contractor and subcontractor that is engaged in
construction work on project facilities for a taxpayer who
seeks to apply for a REV Construction Jobs credit shall:
        (1) make and keep, for a period of 5 years from the
    date of the last payment made on a contract or subcontract
    for construction of facilities for a REV Illinois Project
    pursuant to an agreement, records of all laborers and
    other workers employed by the contractor or subcontractor
    on the project; the records shall include:
            (A) the worker's name;
            (B) the worker's address;
            (C) the worker's telephone number, if available;
            (D) the worker's social security number;
            (E) the worker's classification or
        classifications;
            (F) the worker's gross and net wages paid in each
        pay period;
            (G) the worker's number of hours worked in each
        day;
            (H) the worker's starting and ending times of work
        each day;
            (I) the worker's hourly wage rate; and
            (J) the worker's hourly overtime wage rate; and
        (2) no later than the 15th day of each calendar month,
    provide a certified payroll for the immediately preceding
    month to the taxpayer in charge of the project; within 5
    business days after receiving the certified payroll, the
    Taxpayer shall file the certified payroll with the
    Department of Labor and the Department; a certified
    payroll must be filed for only those calendar months
    during which construction on the REV Illinois Project
    facilities has occurred; the certified payroll shall
    consist of a complete copy of the records identified in
    paragraph (1), but may exclude the starting and ending
    times of work each day; the certified payroll shall be
    accompanied by a statement signed by the contractor or
    subcontractor or an officer, employee, or agent of the
    contractor or subcontractor which avers that:
            (A) he or she has examined the certified payroll
        records required to be submitted by the Act and such
        records are true and accurate; and
            (B) the contractor or subcontractor is aware that
        filing a certified payroll that he or she knows to be
        false is a Class A misdemeanor.
    A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
    (b) Any contractor or subcontractor subject to this
Section, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
Section, who willfully fails to file such a certified payroll,
on or before the date such certified payroll is required to be
filed and any person who willfully files a false certified
payroll as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor and may be enforced by the
Illinois Department of Labor or the Department. The Attorney
General shall represented the Illinois Department of Labor or
the Department in the proceeding.
    (c) The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section for a period
of 5 years from the date of the last payment for work on a
contract or subcontract for the project.
    (d) The records submitted in accordance with this Section
shall be considered public records, except an employee's
address, telephone number, and social security number, which
shall be redacted. The records shall be made publicly
available in accordance with the Freedom of Information Act.
The contractor or subcontractor shall submit reports to the
Department of Labor electronically that meet the requirements
of this subsection and shall share the information with the
Department to comply with the awarding of the REV Construction
Jobs Credit. A contractor, subcontractor, or public body may
retain records required under this Section in paper or
electronic format.
    (e) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of this subsection to the
Taxpayer in charge of the Project, its officers and agents,
the Director of the Department of Labor and his/her deputies
and agents, and to federal, State, or local law enforcement
agencies and prosecutors.
 
    Section 70. Noncompliance; notice; assessment. If the
Director determines that a taxpayer who has received a credit
under this Act is not complying with the requirements of the
agreement or all of the provisions of this Act, the Director
shall provide notice to the taxpayer of the alleged
noncompliance and allow the taxpayer a hearing under the
provisions of the Illinois Administrative Procedure Act. If,
after such notice and any hearing, the Director determines
that a noncompliance exists, the Director shall issue to the
Department of Revenue notice to that effect, stating the
noncompliance date. If, during the term of an agreement, the
taxpayer ceases operations at a project location that is the
subject of that agreement with the intent to terminate
operations in the State, the Department and the Department of
Revenue shall recapture from the taxpayer the entire credit
amount awarded under that agreement prior to the date the
taxpayer ceases operations. The Department shall, subject to
appropriation, reallocate the recaptured amounts within 6
months to the local workforce investment area in which the
project was located for purposes of workforce development,
expanded opportunities for unemployed persons, and expanded
opportunities for women and minority persons in the workforce.
The taxpayer will be ineligible for future funding under other
State tax credit or exemption programs for a 36-month period.
Noncompliance of the agreement with result in a default of
other agreements for State tax credits and exemption programs
for the project.
 
    Section 75. Annual report.
    (a) On or before July 1 each year, the Department shall
submit a report on the tax credit program under this Act to the
Governor and the General Assembly. The report shall include
information on the number of agreements that were entered into
under this Act during the preceding calendar year, a
description of the project that is the subject of each
agreement, an update on the status of projects under
agreements entered into before the preceding calendar year,
and the sum of the credits awarded under this Act. A copy of
the report shall be delivered to the Governor and to each
member of the General Assembly.
    (b) The report must include, for each agreement:
        (1) the original estimates of the value of the credit
    and the number of new employee jobs to be created and, if
    applicable, the number of retained employee jobs;
        (2) any relevant modifications to existing agreements;
        (3) a statement of the progress made by each taxpayer
    in meeting the terms of the original agreement;
        (4) a statement of wages paid to new employees and, if
    applicable, retained employees in the State; and
        (5) a copy of the original agreement or link to the
    agreement on the Department's website.
 
    Section 80. Evaluation of tax credit program. The
Department shall evaluate the tax credit program every three
years and issue a report. The evaluation shall include an
assessment of the effectiveness of the program in creating new
jobs in Illinois and of the revenue impact of the program and
may include a review of the practices and experiences of other
states with similar programs. The Director shall submit a
report on the evaluation to the Governor and the General
Assembly three years after the Effective Date of the Act and
every three years thereafter.
 
    Section 85. Sunset of new agreements. The Department shall
not enter into any new Agreements under the provisions of this
Act after December 31, 2027.
 
    Section 90. Prioritization of project review with the
Department of Transportation. A project that would directly
assist in the feasibility of locating an electric vehicle
manufacturing facility, component parts manufacturing
facility, or electric vehicle power supply manufacturing
facility may be prioritized by the Secretary of Transportation
if: (i) such project is included in the Highway Improvement
Program; and (ii) the company will operate the facility that
was approved to receive a REV Construction Jobs credit or a REV
Illinois credit. Under no circumstances should a project be
prioritized if it would compromise the delivery of a project
to remediate an immediate threat to safety.
 
    Section 95. Utility tax exemptions for REV Illinois
Project sites. The Department may certify a taxpayer with a
REV Illinois credit for a Project that meets the
qualifications under Section paragraphs (1), (2), and (4) of
subsection (c) of Section 20, subject to an agreement under
this Act for an exemption from the tax imposed at the project
site by Section 2-4 of the Electricity Excise Tax Law. To
receive such certification, the taxpayer must be registered to
self-assess that tax. The taxpayer is also exempt from any
additional charges added to the taxpayer's utility bills at
the project site as a pass-on of State utility taxes under
Section 9-222 of the Public Utilities Act. The taxpayer must
meet any other the criteria for certification set by the
Department.
    The Department shall determine the period during which the
exemption from the Electricity Excise Tax Law and the charges
imposed under Section 9-222 of the Public Utilities Act are in
effect, which shall not exceed 10 years from the date of the
taxpayer's initial receipt of certification from the
Department under this Section.
    The Department is authorized to adopt rules to carry out
the provisions of this Section, including procedures to apply
for the exemptions; to define the amounts and types of
eligible investments that an applicant must make in order to
receive electricity excise tax exemptions or exemptions from
the additional charges imposed under Section 9-222 and the
Public Utilities Act; to approve such electricity excise tax
exemptions for applicants whose investments are not yet placed
in service; and to require that an applicant granted an
electricity excise tax exemption or an exemption from
additional charges under Section 9-222 of the Public Utilities
Act repay the exempted amount if the Applicant fails to comply
with the terms and conditions of the agreement.
    Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The Department of Revenue shall notify the
public utilities of the exempt status of any taxpayer
certified for exemption under this Act from the electricity
excise tax or pass-on charges. The exemption status shall take
effect within 3 months after certification of the taxpayer and
notice to the Department of Revenue by the Department.
 
    Section 100. Investment tax credits for REV Illinois
Projects. Subject to the conditions set forth in this Act, a
Taxpayer is entitled to an investment tax credit toward taxes
imposed pursuant to subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act for a taxable year in which the
Taxpayer, in accordance with an Agreement under this Act for
that taxable year, invests in qualified property which is
placed in service at the site of a REV Illinois Project. The
Department has authority to certify the amount of such
investment tax credits to the Department of Revenue. The
credit shall be 0.5% of the basis for such property and shall
be determined in accordance with Section 237 of the Illinois
Income Tax Act. The credit shall be available only in the
taxable year in which the property is placed in service and
shall not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections (a)
and (b) of Section 201 of the Illinois Income Tax Act to below
zero. Unused credit may be carried forward in accordance with
Section 237 of the Illinois Income Tax Act for use in future
taxable years. Any taxpayer qualifying for the REV Illinois
Investment Tax Credit shall not be eligible for either the
investment tax credits in Section 201(e), (f), or (h) of the
Illinois Income Tax Act.
 
    Section 105. Building materials exemptions for REV
Illinois Project sites.
    (a) The Department may certify a Taxpayer with a REV
Illinois Project that meets the qualifications under
paragraphs (1), (2), or (4) of subsection (c) of Section 20,
subject to an agreement under this Act, for an exemption from
any State or local use tax or retailers' occupation tax on
building materials for the construction of its project
facilities. The taxpayer must meet any criteria for
certification set by the Department under this Act.
    The Department shall determine the period during which the
exemption from State and local use tax and retailers'
occupation tax are in effect, but in no event shall exceed 5
years in accordance with Section 5m of the Retailers'
Occupation Tax Act.
    The Department is authorized to promulgate rules and
regulations to carry out the provisions of this Section,
including procedures to apply for the exemption; to define the
amounts and types of eligible investments that an applicant
must make in order to receive tax exemption; to approve such
tax exemption for an applicant whose investments are not yet
placed in service; and to require that an applicant granted
exemption repay the exempted amount if the applicant fails to
comply with the terms and conditions of the agreement with the
Department.
    Upon certification by the Department under this Section,
the Department shall notify the Department of Revenue of the
certification. The exemption status shall take effect within 3
months after certification of the taxpayer and notice to the
Department of Revenue by the Department.
 
    Section 900. The Illinois Procurement Code is amended by
adding Section 45-100 as follows:
 
    (30 ILCS 500/45-100 new)
    Sec. 45-100. Electric vehicles. For purposes of this
Section, "electric vehicle" means a vehicle that is
exclusively powered by and refueled by electricity, must be
plugged in to charge or utilize a pre-charged battery, and is
permitted to operate on public roadways. "Electric vehicle"
does not include hybrid electric vehicles and extended-range
electric vehicles that are also equipped with conventional
fueled propulsion or auxiliary engines. For purposes of this
section, "Manufactured in Illinois" means, in the case of
electric vehicles, that design, final assembly, processing,
packaging, testing, or other process that adds value, quality,
or reliability occurs in Illinois.
    In awarding contracts requiring the procurement of
electric vehicles, preference shall be given to an otherwise
qualified bidder or offeror who will fulfill the contract
through the use of electric vehicles manufactured in Illinois.
Specifications for contracts for electric vehicles shall
include a price preference of 20% for electric vehicles
manufactured in Illinois. The purchasing agency may require
additional information from bidders or offerors to verify
whether an electric vehicle is manufactured in Illinois as
defined by this Section.
 
    Section 905. The Illinois Income Tax Act is amended by
changing Sections 207 and 704A and by adding Sections 236 and
237 as follows:
 
    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)
    Sec. 207. Net Losses.
    (a) If after applying all of the (i) modifications
provided for in paragraph (2) of Section 203(b), paragraph (2)
of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
the allocation and apportionment provisions of Article 3 of
this Act and subsection (c) of this Section, the taxpayer's
net income results in a loss;
        (1) for any taxable year ending prior to December 31,
    1999, such loss shall be allowed as a carryover or
    carryback deduction in the manner allowed under Section
    172 of the Internal Revenue Code;
        (2) for any taxable year ending on or after December
    31, 1999 and prior to December 31, 2003, such loss shall be
    allowed as a carryback to each of the 2 taxable years
    preceding the taxable year of such loss and shall be a net
    operating loss carryover to each of the 20 taxable years
    following the taxable year of such loss; and
        (3) for any taxable year ending on or after December
    31, 2003 and prior to December 31, 2021, such loss shall be
    allowed as a net operating loss carryover to each of the 12
    taxable years following the taxable year of such loss,
    except as provided in subsection (d); and .
        (4) for any taxable year ending on or after December
    31, 2021, and for any net loss incurred in a taxable year
    prior to a taxable year ending on or after December 31,
    2021 for which the statute of limitation for utilization
    of such net loss has not expired, such loss shall be
    allowed as a net operating loss carryover to each of the 20
    taxable years following the taxable year of such loss,
    except as provided in subsection (d).
    (a-5) Election to relinquish carryback and order of
application of losses.
            (A) For losses incurred in tax years ending prior
        to December 31, 2003, the taxpayer may elect to
        relinquish the entire carryback period with respect to
        such loss. Such election shall be made in the form and
        manner prescribed by the Department and shall be made
        by the due date (including extensions of time) for
        filing the taxpayer's return for the taxable year in
        which such loss is incurred, and such election, once
        made, shall be irrevocable.
            (B) The entire amount of such loss shall be
        carried to the earliest taxable year to which such
        loss may be carried. The amount of such loss which
        shall be carried to each of the other taxable years
        shall be the excess, if any, of the amount of such loss
        over the sum of the deductions for carryback or
        carryover of such loss allowable for each of the prior
        taxable years to which such loss may be carried.
    (b) Any loss determined under subsection (a) of this
Section must be carried back or carried forward in the same
manner for purposes of subsections (a) and (b) of Section 201
of this Act as for purposes of subsections (c) and (d) of
Section 201 of this Act.
    (c) Notwithstanding any other provision of this Act, for
each taxable year ending on or after December 31, 2008, for
purposes of computing the loss for the taxable year under
subsection (a) of this Section and the deduction taken into
account for the taxable year for a net operating loss
carryover under paragraphs (1), (2), and (3) of subsection (a)
of this Section, the loss and net operating loss carryover
shall be reduced in an amount equal to the reduction to the net
operating loss and net operating loss carryover to the taxable
year, respectively, required under Section 108(b)(2)(A) of the
Internal Revenue Code, multiplied by a fraction, the numerator
of which is the amount of discharge of indebtedness income
that is excluded from gross income for the taxable year (but
only if the taxable year ends on or after December 31, 2008)
under Section 108(a) of the Internal Revenue Code and that
would have been allocated and apportioned to this State under
Article 3 of this Act but for that exclusion, and the
denominator of which is the total amount of discharge of
indebtedness income excluded from gross income under Section
108(a) of the Internal Revenue Code for the taxable year. The
reduction required under this subsection (c) shall be made
after the determination of Illinois net income for the taxable
year in which the indebtedness is discharged.
    (d) In the case of a corporation (other than a Subchapter S
corporation), no carryover deduction shall be allowed under
this Section for any taxable year ending after December 31,
2010 and prior to December 31, 2012, and no carryover
deduction shall exceed $100,000 for any taxable year ending on
or after December 31, 2012 and prior to December 31, 2014 and
for any taxable year ending on or after December 31, 2021 and
prior to December 31, 2024; provided that, for purposes of
determining the taxable years to which a net loss may be
carried under subsection (a) of this Section, no taxable year
for which a deduction is disallowed under this subsection, or
for which the deduction would exceed $100,000 if not for this
subsection, shall be counted.
    (e) In the case of a residual interest holder in a real
estate mortgage investment conduit subject to Section 860E of
the Internal Revenue Code, the net loss in subsection (a)
shall be equal to:
        (1) the amount computed under subsection (a), without
    regard to this subsection (e), or if that amount is
    positive, zero;
        (2) minus an amount equal to the amount computed under
    subsection (a), without regard to this subsection (e),
    minus the amount that would be computed under subsection
    (a) if the taxpayer's federal taxable income were computed
    without regard to Section 860E of the Internal Revenue
    Code and without regard to this subsection (e).
    The modification in this subsection (e) is exempt from the
provisions of Section 250.
(Source: P.A. 102-16, eff. 6-17-21.)
 
    (35 ILCS 5/236 new)
    Sec. 236. Reimagining Electric Vehicles in Illinois Tax
credits.
    (a) For tax years beginning on or after January 1, 2025, a
taxpayer who has entered into an agreement under the
Reimagining Electric Vehicles in Illinois Act is entitled to a
credit against the taxes imposed under subsections (a) and (b)
of Section 201 of this Act in an amount to be determined in the
Agreement. The taxpayer may elect to claim the credit, on or
after January 1, 2025, against its obligation to pay over
withholding under Section 704A of this Act as provided in
paragraph (6) of subsection (b). If the taxpayer is a
partnership or Subchapter S corporation, the credit shall be
allowed to the partners or shareholders in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code. The Department, in cooperation with the Department of
Commerce and Economic Opportunity, shall adopt rules to
enforce and administer the provisions of this Section. This
Section is exempt from the provisions of Section 250 of this
Act.
    (b) The credit is subject to the conditions set forth in
the agreement and the following limitations:
        (1) The tax credit may be in the form of either or both
    the REV Illinois Credit or the REV Construction Jobs
    Credit (as defined in the Reimagining Electric Vehicles in
    Illinois Act) and shall not exceed the percentage of
    incremental income tax and percentage of training costs
    permitted in that Act and in the agreement with respect to
    the project.
        (2) The amount of the credit allowed during a tax year
    plus the sum of all amounts allowed in prior tax years
    shall not exceed the maximum amount of credit established
    in the agreement.
        (3) The amount of the credit shall be determined on an
    annual basis. Except as applied in a carryover year
    pursuant to paragraph (4), the credit may not be applied
    against any State income tax liability in more than 15
    taxable years.
        (4) The credit may not exceed the amount of taxes
    imposed pursuant to subsections (a) and (b) of Section 201
    of this Act. Any credit that is unused in the year the
    credit is computed may be carried forward and applied to
    the tax liability of the 5 taxable years following the
    excess credit year. The credit shall be applied to the
    earliest year for which there is a tax liability. If there
    are credits from more than one tax year that are available
    to offset a liability, the earlier credit shall be applied
    first.
        (5) No credit shall be allowed with respect to any
    agreement for any taxable year ending after the
    noncompliance date. Upon receiving notification by the
    Department of Commerce and Economic Opportunity of the
    noncompliance of a taxpayer with an agreement, the
    Department shall notify the taxpayer that no credit is
    allowed with respect to that agreement for any taxable
    year ending after the noncompliance date, as stated in
    such notification. If any credit has been allowed with
    respect to an agreement for a taxable year ending after
    the noncompliance date for that agreement, any refund paid
    to the taxpayer for that taxable year shall, to the extent
    of that credit allowed, be an erroneous refund within the
    meaning of Section 912 of this Act.
        If, during any taxable year, a taxpayer ceases
    operations at a project location that is the subject of
    that agreement with the intent to terminate operations in
    the State, the tax imposed under subsections (a) and (b)
    of Section 201 of this Act for such taxable year shall be
    increased by the amount of any credit allowed under the
    Agreement for that Project location prior to the date the
    Taxpayer ceases operations.
        (6) Instead of claiming the credit against the taxes
    imposed under subsections (a) and (b) of Section 201 of
    this Act, with respect to the portion of a REV Illinois
    Credit that is calculated based on the Incremental Income
    Tax attributable to new employees and retained employees,
    the taxpayer may elect, in accordance with the Reimagining
    Electric Vehicles in Illinois Act, to claim the credit, on
    or after January 1, 2025, against its obligation to pay
    over withholding under Section 704A of the Illinois Income
    Tax Act. Any credit for which a Taxpayer makes such an
    election shall not be claimed against the taxes imposed
    under subsections (a) and (b) of Section 201 of this Act.
 
    (35 ILCS 5/237 new)
    Sec. 237. REV Illinois Investment Tax credits.
    (a) For tax years beginning on or after the effective date
of this amendatory Act of the 102nd General Assembly, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of Section 201 for investment in
qualified property which is placed in service at the site of a
REV Illinois Project subject to an agreement between the
taxpayer and the Department of Commerce and Economic
Opportunity pursuant to the Reimagining Electric Vehicles in
Illinois Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code. The credit shall be 0.5% of the basis for such
property. The credit shall be available only in the taxable
year in which the property is placed in service and shall not
be allowed to the extent that it would reduce a taxpayer's
liability for the tax imposed by subsections (a) and (b) of
Section 201 to below zero. The credit shall be allowed for the
tax year in which the property is placed in service, or, if the
amount of the credit exceeds the tax liability for that year,
whether it exceeds the original liability or the liability as
later amended, such excess may be carried forward and applied
to the tax liability of the 5 taxable years following the
excess credit year. The credit shall be applied to the
earliest year for which there is a liability. If there is
credit from more than one tax year that is available to offset
a liability, the credit accruing first in time shall be
applied first.
    (b) The term qualified property means property which:
        (1) is tangible, whether new or used, including
    buildings and structural components of buildings;
        (2) is depreciable pursuant to Section 167 of the
    Internal Revenue Code, except that "3-year property" as
    defined in Section 168(c)(2)(A) of that Code is not
    eligible for the credit provided by this Section;
        (3) is acquired by purchase as defined in Section
    179(d) of the Internal Revenue Code;
        (4) is used at the site of the REV Illinois Project by
    the taxpayer; and
        (5) has not been previously used in Illinois in such a
    manner and by such a person as would qualify for the credit
    provided by this Section.
    (c) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal income
tax purposes.
    (d) If the basis of the property for federal income tax
depreciation purposes is increased after it has been placed in
service at the site of the REV Illinois Project by the
taxpayer, the amount of such increase shall be deemed property
placed in service on the date of such increase in basis.
    (e) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
    (f) If during any taxable year, any property ceases to be
qualified property in the hands of the taxpayer within 48
months after being placed in service, or the situs of any
qualified property is moved from the REV Illinois Project site
within 48 months after being placed in service, the tax
imposed under subsections (a) and (b) of Section 201 for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for such
property was originally allowed by eliminating such property
from such computation, and (ii) subtracting such recomputed
credit from the amount of credit previously allowed. For the
purposes of this subsection (f), a reduction of the basis of
qualified property resulting from a redetermination of the
purchase price shall be deemed a disposition of qualified
property to the extent of such reduction.
 
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds
or is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more
    than $12,000 during the one-year period ending on June 30
    of the immediately preceding calendar year, payment must
    be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        Beginning with calendar year 2011, payments made under
    this paragraph (1) of subsection (c) must be made by
    electronic funds transfer.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any
    quarter of a calendar year is required to make payments on
    the dates set forth under item (1) of this subsection (c)
    for each remaining quarter of that calendar year and for
    the subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the year for taxes withheld or
    required to be withheld during the previous calendar year
    and, if the aggregate amounts required to be withheld by
    the employer under this Article 7 (other than amounts
    required to be withheld under Section 709.5) do not exceed
    $1,000 for the previous calendar year, to pay the taxes
    required to be shown on each such return no later than the
    due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld
    from, or federal employment taxes due with respect to, the
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which
    payment of taxes required to be withheld under this
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return
to be submitted with the employer's individual income tax
return or to be submitted with a return due from the employer
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to
taxes withheld in calendar years prior to 2017, any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    With respect to taxes withheld in 2017 and subsequent
calendar years, the Department may, by rule, require that any
return (including any amended return) under this Section and
any W-2 Form that is required to be submitted to the Department
must be submitted on magnetic media or electronically.
    The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule.
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as
provided in subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act. The credit
or credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
calendar year, the excess may be carried forward and applied
against the taxpayer's liability under this Section in the
succeeding calendar years as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest year for which there
is a tax liability. If there are credits from more than one
taxable year that are available to offset a liability, the
earlier credit shall be applied first. Each employer who
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
under subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act. No credit awarded
under the Economic Development for a Growing Economy Tax
Credit Act for agreements entered into on or after January 1,
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Reimagining
Electric Vehicles in Illinois Act shall be allowed a credit
against payments due under this Section for amounts withheld
during the first quarterly reporting period beginning after
the certificate is issued equal to the portion of the REV
Illinois Credit attributable to the incremental income tax
attributable to new employees and retained employees as
certified by the Department of Commerce and Economic
Opportunity pursuant to an agreement with the taxpayer under
the Reimagining Electric Vehicles in Illinois Act for the
taxable year. The credit or credits may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit or credits
exceeds the total payments due under this Section with respect
to amounts withheld during the quarterly reporting period, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
quarterly reporting period as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest quarterly reporting
period for which there is a tax liability. If there are credits
from more than one quarterly reporting period that are
available to offset a liability, the earlier credit shall be
applied first. Each employer who deducts and withholds or is
required to deduct and withhold tax under this Act and who
retains income tax withholdings this subsection must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g-1), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after the date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit exceeds the
total payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under
this Section in the 5 succeeding calendar years. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
    (i) Each employer with 50 or fewer full-time equivalent
employees during the reporting period may claim a credit
against the payments due under this Section for each qualified
employee in an amount equal to the maximum credit allowable.
The credit may be taken against payments due for reporting
periods that begin on or after January 1, 2020, and end on or
before December 31, 2027. An employer may not claim a credit
for an employee who has worked fewer than 90 consecutive days
immediately preceding the reporting period; however, such
credits may accrue during that 90-day period and be claimed
against payments under this Section for future reporting
periods after the employee has worked for the employer at
least 90 consecutive days. In no event may the credit exceed
the employer's liability for the reporting period. Each
employer who deducts and withholds or is required to deduct
and withhold tax under this Act and who retains income tax
withholdings under this subsection must make a return with
respect to such taxes and retained amounts in the form and
manner that the Department, by rule, requires and pay to the
Department or to a depositary designated by the Department
those withheld taxes not retained by the employer.
    For each reporting period, the employer may not claim a
credit or credits for more employees than the number of
employees making less than the minimum or reduced wage for the
current calendar year during the last reporting period of the
preceding calendar year. Notwithstanding any other provision
of this subsection, an employer shall not be eligible for
credits for a reporting period unless the average wage paid by
the employer per employee for all employees making less than
$55,000 during the reporting period is greater than the
average wage paid by the employer per employee for all
employees making less than $55,000 during the same reporting
period of the prior calendar year.
    For purposes of this subsection (i):
    "Compensation paid in Illinois" has the meaning ascribed
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to
those terms in the Minimum Wage Law, except that "employee"
also includes employees who work for an employer with fewer
than 4 employees. Employers that operate more than one
establishment pursuant to a franchise agreement or that
constitute members of a unitary business group shall aggregate
their employees for purposes of determining eligibility for
the credit.
    "Full-time equivalent employees" means the ratio of the
number of paid hours during the reporting period and the
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the
difference between the amount of compensation paid in Illinois
to employees who are paid not more than the required minimum
wage reduced by the amount of compensation paid in Illinois to
employees who were paid less than the current required minimum
wage during the reporting period prior to each increase in the
required minimum wage on January 1. If an employer pays an
employee more than the required minimum wage and that employee
previously earned less than the required minimum wage, the
employer may include the portion that does not exceed the
required minimum wage as compensation paid in Illinois to
employees who are paid not more than the required minimum
wage.
        (1) 25% for reporting periods beginning on or after
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to
be claimed for reporting periods beginning on or after January
1, 2026 and:
        (A) ending on or before December 31, 2026 for
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for
    employers with no more than 5 employees.
    "Qualified employee" means an employee who is paid not
more than the required minimum wage and has an average wage
paid per hour by the employer during the reporting period
equal to or greater than his or her average wage paid per hour
by the employer during each reporting period for the
immediately preceding 12 months. A new qualified employee is
deemed to have earned the required minimum wage in the
preceding reporting period.
    "Reporting period" means the quarter for which a return is
required to be filed under subsection (b) of this Section.
(Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17;
100-863, eff. 8-14-18; 101-1, eff. 2-19-19.)
 
    Section 910. The Retailers' Occupation Tax Act is amended
by adding Section 5m as follows:
 
    (35 ILCS 120/5m new)
    Sec. 5m. Building materials exemption; electric vehicle
manufacturer, electric vehicle component parts manufacturer,
and electric vehicle power supply manufacturer. Each retailer
who makes a sale of building materials that will be
incorporated into real estate in an electric vehicle
manufacturing facility, an electric vehicle component parts
manufacturing facility, or an electric vehicle power supply
manufacturing facility REV Illinois Project which meets the
qualifications under paragraphs (1), (2), or (4) of subsection
(c) of Section 20 of the Reimagining Electric Vehicles in
Illinois Act for which a certificate of exemption has been
issued by the Department of Commerce and Economic Opportunity
under the Reimagining Electric Vehicles in Illinois Act, may
deduct receipts from such sales when calculating any State or
local use and occupation taxes. No retailer who is eligible
for the deduction or credit under Section 5k of this Act
related to enterprise zones or Section 5l of this Act related
to High Impact Businesses for a given sale shall be eligible
for the deduction or credit authorized under this Section for
that same sale.
    In addition to any other requirements to document the
exemption allowed under this Section, the retailer must obtain
from the purchaser's REV Illinois Building Materials Exemption
certificate number issued by the Department. A construction
contractor or other entity shall not make tax-free purchases
unless it has an active REV Illinois Building Materials
Exemption Certificate issued by the Department at the time of
purchase.
    Upon request from the electric vehicle manufacturer,
electric vehicle component parts manufacturer, or electric
vehicle power supply manufacturer certified by the Department
of Commerce and Economic Opportunity under REV Illinois Act,
the Department shall issue a REV Illinois Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the certified electric vehicle
manufacturer, electric vehicle component parts manufacturer,
or electric vehicle power supply manufacturer. The Department
shall make the REV Illinois Building Materials Exemption
Certificates available to each construction contractor or
other entity and the certified electric vehicle manufacturer,
electric vehicle component parts manufacturer, or electric
vehicle power supply manufacturer. The request for REV
Illinois Building Materials Exemption Certificates from the
certified electric vehicle manufacturer, electric vehicle
component parts manufacturer, or electric vehicle power supply
manufacturer to the Department must include the following
information:
        (1) the name and address of the construction
    contractor or other entity;
        (2) the name and location or address of the building
    project site;
        (3) the estimated amount of the exemption for each
    construction contractor or other entity for which a
    request for a REV Illinois Building Materials Exemption
    Certificate is made, based on a stated estimated average
    tax rate and the percentage of the contract that consists
    of materials;
        (4) the period of time over which supplies for the
    project are expected to be purchased; and
        (5) other reasonable information as the Department may
    require, including but not limited to FEIN numbers, to
    determine if the contractor or other entity, or any
    partner, or a corporate officer, and in the case of a
    limited liability company, any manager or member, of the
    construction contractor or other entity, is or has been
    the owner, a partner, a corporate officer, and in the case
    of a limited liability company, a manager or member, of a
    person that is in default for moneys due to the Department
    under this Act or any other tax or fee Act administered by
    the Department.
    The Department shall issue the REV Illinois Building
Materials Exemption Certificates within 3 business days after
receipt of request from the certified electric vehicle
manufacturer, electric vehicle component parts manufacturer,
or electric vehicle power supply manufacturer. This
requirement does not apply in circumstances where the
Department, for reasonable cause, is unable to issue the
Exemption Certificate within 3 business days. The Department
may refuse to issue a REV Illinois Building Materials
Exemption Certificate if the owner, any partner, or a
corporate officer, and in the case of a limited liability
company, any manager or member, of the construction contractor
or other entity is or has been the owner, a partner, a
corporate officer, and in the case of a limited liability
company, a manager or member, of a person that is in default
for moneys due to the Department under this Act or any other
tax or fee Act administered by the Department.
    The REV Illinois Building Materials Exemption Certificate
shall contain language stating that if the construction
contractor or other entity who is issued the Exemption
Certificate makes a tax-exempt purchase, as described in this
Section, that is not eligible for exemption under this Section
or allows another person to make a tax-exempt purchase, as
described in this Section, that is not eligible for exemption
under this Section, then, in addition to any tax or other
penalty imposed, the construction contractor or other entity
is subject to a penalty equal to the tax that would have been
paid by the retailer under this Act as well as any applicable
local retailers' occupation tax on the purchase that is not
eligible for the exemption.
    The Department, in its discretion, may require that the
request for REV Illinois Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue the Exemption Certificates
electronically. The REV Illinois Building Materials Exemption
Certificate number shall be designed in such a way that the
Department can identify from the unique number on the
Exemption Certificate issued to a given construction
contractor or other entity, the name of the designated
electric vehicle manufacturing, electric vehicle component
parts manufacturing, or electric vehicle power supply
manufacturing site and the construction contractor or other
entity to whom the Exemption Certificate is issued. The REV
Illinois Building Materials Exemption Certificate shall
contain an expiration date, which shall be no more than 5 years
after the date of issuance. At the request of the designated
certified electric vehicle manufacturer, electric vehicle
component parts manufacturer, or electric vehicle power supply
manufacturer, the Department may renew a REV Illinois Building
Materials Exemption Certificate. After the Department issues
Exemption Certificates for a given designated electric vehicle
manufacturing, electric vehicle component parts manufacturing,
or electric vehicle power supply manufacturing site, the
certified electric vehicle manufacturer, electric vehicle
component parts manufacturer, or electric vehicle power supply
manufacturer may notify the Department of additional
construction contractors or other entities eligible for a REV
Illinois Building Materials Exemption Certificate. Upon
notification by the certified electric vehicle manufacturer,
electric vehicle component parts manufacturer, or electric
vehicle power supply manufacturer and subject to the other
provisions of this Section, the Department shall issue a REV
Illinois Building Materials Exemption Certificate to each
additional construction contractor or other entity identified
by the certified electric vehicle manufacturer, electric
vehicle component parts manufacturer, or electric vehicle
power supply manufacturer. A certified electric vehicle
manufacturer, electric vehicle component parts manufacturer,
or electric vehicle power supply manufacturer may notify the
Department to rescind a REV Illinois Building Materials
Exemption Certificate previously issued by the Department but
that has not yet expired. Upon notification by the certified
electric vehicle manufacturer, electric vehicle component
parts manufacturer, or electric vehicle power supply
manufacturer and subject to the other provisions of this
Section, the Department shall issue the rescission of the REV
Illinois Building Materials Exemption Certificate to the
construction contractor or other entity identified by the
certified electric vehicle manufacturer, electric vehicle
component parts manufacturer, or electric vehicle power supply
manufacturer and provide a copy to the certified electric
vehicle manufacturer, electric vehicle component parts
manufacturer, or electric vehicle power supply manufacturer.
    If the Department of Revenue determines that a
construction contractor or other entity that was issued an
Exemption Certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
    This Section is exempt from the provisions of Section
2-70.
 
    Section 915. The Property Tax Code is amended by adding
Section 18-184.15 as follows:
 
    (35 ILCS 200/18-184.15 new)
    Sec. 18-184.15. REV Illinois project facilities for
electric vehicles, electric vehicle component parts, or
electric vehicle power supply equipment; abatement. Any taxing
district, upon a majority vote of its governing body, may,
after determination of the assessed value as set forth in this
Code, order the clerk of the appropriate municipality or
county to abate any portion of real property taxes otherwise
levied or extended by the taxing district on a REV Illinois
Project facility owned by an electric vehicle manufacturer,
electric vehicle component parts manufacturer, or an electric
vehicle power supply manufacturer that is subject to an
agreement with the Department of Commerce and Economic
Opportunity under Section 45 of the Reimagining Electric
Vehicles in Illinois Act, during the period of time such
agreement is in effect as specified by the Department of
Commerce and Economic Opportunity.
 
    Section 920. The Telecommunications Excise Tax Act is
amended by changing Section 2 as follows:
 
    (35 ILCS 630/2)  (from Ch. 120, par. 2002)
    Sec. 2. As used in this Article, unless the context
clearly requires otherwise:
    (a) "Gross charge" means the amount paid for the act or
privilege of originating or receiving telecommunications in
this State and for all services and equipment provided in
connection therewith by a retailer, valued in money whether
paid in money or otherwise, including cash, credits, services
and property of every kind or nature, and shall be determined
without any deduction on account of the cost of such
telecommunications, the cost of materials used, labor or
service costs or any other expense whatsoever. In case credit
is extended, the amount thereof shall be included only as and
when paid. "Gross charges" for private line service shall
include charges imposed at each channel termination point
within this State, charges for the channel mileage between
each channel termination point within this State, and charges
for that portion of the interstate inter-office channel
provided within Illinois. Charges for that portion of the
interstate inter-office channel provided in Illinois shall be
determined by the retailer as follows: (i) for interstate
inter-office channels having 2 channel termination points,
only one of which is in Illinois, 50% of the total charge
imposed; or (ii) for interstate inter-office channels having
more than 2 channel termination points, one or more of which
are in Illinois, an amount equal to the total charge
multiplied by a fraction, the numerator of which is the number
of channel termination points within Illinois and the
denominator of which is the total number of channel
termination points. Prior to January 1, 2004, any method
consistent with this paragraph or other method that reasonably
apportions the total charges for interstate inter-office
channels among the states in which channel terminations points
are located shall be accepted as a reasonable method to
determine the charges for that portion of the interstate
inter-office channel provided within Illinois for that period.
However, "gross charges" shall not include any of the
following:
        (1) Any amounts added to a purchaser's bill because of
    a charge made pursuant to (i) the tax imposed by this
    Article; (ii) charges added to customers' bills pursuant
    to the provisions of Sections 9-221 or 9-222 of the Public
    Utilities Act, as amended, or any similar charges added to
    customers' bills by retailers who are not subject to rate
    regulation by the Illinois Commerce Commission for the
    purpose of recovering any of the tax liabilities or other
    amounts specified in such provisions of such Act; (iii)
    the tax imposed by Section 4251 of the Internal Revenue
    Code; (iv) 911 surcharges; or (v) the tax imposed by the
    Simplified Municipal Telecommunications Tax Act.
        (2) Charges for a sent collect telecommunication
    received outside of the State.
        (3) Charges for leased time on equipment or charges
    for the storage of data or information for subsequent
    retrieval or the processing of data or information
    intended to change its form or content. Such equipment
    includes, but is not limited to, the use of calculators,
    computers, data processing equipment, tabulating equipment
    or accounting equipment and also includes the usage of
    computers under a time-sharing agreement.
        (4) Charges for customer equipment, including such
    equipment that is leased or rented by the customer from
    any source, wherein such charges are disaggregated and
    separately identified from other charges.
        (5) Charges to business enterprises certified under
    Section 9-222.1 of the Public Utilities Act, as amended,
    or to electric vehicle manufacturers, electric vehicle
    component parts manufacturers, or electric vehicle power
    supply manufacturers at REV Illinois Project sites for
    which a certificate of exemption has been issued by the
    Department of Commerce and Economic Opportunity under
    Section 95 of the Reimagining Electric Vehicles in
    Illinois Act, to the extent of such exemption and during
    the period of time specified by the Department of Commerce
    and Economic Opportunity.
        (6) Charges for telecommunications and all services
    and equipment provided in connection therewith between a
    parent corporation and its wholly owned subsidiaries or
    between wholly owned subsidiaries when the tax imposed
    under this Article has already been paid to a retailer and
    only to the extent that the charges between the parent
    corporation and wholly owned subsidiaries or between
    wholly owned subsidiaries represent expense allocation
    between the corporations and not the generation of profit
    for the corporation rendering such service.
        (7) Bad debts. Bad debt means any portion of a debt
    that is related to a sale at retail for which gross charges
    are not otherwise deductible or excludable that has become
    worthless or uncollectable, as determined under applicable
    federal income tax standards. If the portion of the debt
    deemed to be bad is subsequently paid, the retailer shall
    report and pay the tax on that portion during the
    reporting period in which the payment is made.
        (8) Charges paid by inserting coins in coin-operated
    telecommunication devices.
        (9) Amounts paid by telecommunications retailers under
    the Telecommunications Municipal Infrastructure
    Maintenance Fee Act.
        (10) Charges for nontaxable services or
    telecommunications if (i) those charges are aggregated
    with other charges for telecommunications that are
    taxable, (ii) those charges are not separately stated on
    the customer bill or invoice, and (iii) the retailer can
    reasonably identify the nontaxable charges on the
    retailer's books and records kept in the regular course of
    business. If the nontaxable charges cannot reasonably be
    identified, the gross charge from the sale of both taxable
    and nontaxable services or telecommunications billed on a
    combined basis shall be attributed to the taxable services
    or telecommunications. The burden of proving nontaxable
    charges shall be on the retailer of the
    telecommunications.
    (b) "Amount paid" means the amount charged to the
taxpayer's service address in this State regardless of where
such amount is billed or paid.
    (c) "Telecommunications", in addition to the meaning
ordinarily and popularly ascribed to it, includes, without
limitation, messages or information transmitted through use of
local, toll and wide area telephone service; private line
services; channel services; telegraph services;
teletypewriter; computer exchange services; cellular mobile
telecommunications service; specialized mobile radio;
stationary two way radio; paging service; or any other form of
mobile and portable one-way or two-way communications; or any
other transmission of messages or information by electronic or
similar means, between or among points by wire, cable,
fiber-optics, laser, microwave, radio, satellite or similar
facilities. As used in this Act, "private line" means a
dedicated non-traffic sensitive service for a single customer,
that entitles the customer to exclusive or priority use of a
communications channel or group of channels, from one or more
specified locations to one or more other specified locations.
The definition of "telecommunications" shall not include value
added services in which computer processing applications are
used to act on the form, content, code and protocol of the
information for purposes other than transmission.
"Telecommunications" shall not include purchases of
telecommunications by a telecommunications service provider
for use as a component part of the service provided by him to
the ultimate retail consumer who originates or terminates the
taxable end-to-end communications. Carrier access charges,
right of access charges, charges for use of inter-company
facilities, and all telecommunications resold in the
subsequent provision of, used as a component of, or integrated
into end-to-end telecommunications service shall be
non-taxable as sales for resale.
    (d) "Interstate telecommunications" means all
telecommunications that either originate or terminate outside
this State.
    (e) "Intrastate telecommunications" means all
telecommunications that originate and terminate within this
State.
    (f) "Department" means the Department of Revenue of the
State of Illinois.
    (g) "Director" means the Director of Revenue for the
Department of Revenue of the State of Illinois.
    (h) "Taxpayer" means a person who individually or through
his agents, employees or permittees engages in the act or
privilege of originating or receiving telecommunications in
this State and who incurs a tax liability under this Article.
    (i) "Person" means any natural individual, firm, trust,
estate, partnership, association, joint stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian or other representative appointed
by order of any court, the Federal and State governments,
including State universities created by statute or any city,
town, county or other political subdivision of this State.
    (j) "Purchase at retail" means the acquisition,
consumption or use of telecommunication through a sale at
retail.
    (k) "Sale at retail" means the transmitting, supplying or
furnishing of telecommunications and all services and
equipment provided in connection therewith for a consideration
to persons other than the Federal and State governments, and
State universities created by statute and other than between a
parent corporation and its wholly owned subsidiaries or
between wholly owned subsidiaries for their use or consumption
and not for resale.
    (l) "Retailer" means and includes every person engaged in
the business of making sales at retail as defined in this
Article. The Department may, in its discretion, upon
application, authorize the collection of the tax hereby
imposed by any retailer not maintaining a place of business
within this State, who, to the satisfaction of the Department,
furnishes adequate security to insure collection and payment
of the tax. Such retailer shall be issued, without charge, a
permit to collect such tax. When so authorized, it shall be the
duty of such retailer to collect the tax upon all of the gross
charges for telecommunications in this State in the same
manner and subject to the same requirements as a retailer
maintaining a place of business within this State. The permit
may be revoked by the Department at its discretion.
    (m) "Retailer maintaining a place of business in this
State", or any like term, means and includes any retailer
having or maintaining within this State, directly or by a
subsidiary, an office, distribution facilities, transmission
facilities, sales office, warehouse or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent or other representative is located here permanently or
temporarily, or whether such retailer or subsidiary is
licensed to do business in this State.
    (n) "Service address" means the location of
telecommunications equipment from which the telecommunications
services are originated or at which telecommunications
services are received by a taxpayer. In the event this may not
be a defined location, as in the case of mobile phones, paging
systems, maritime systems, service address means the
customer's place of primary use as defined in the Mobile
Telecommunications Sourcing Conformity Act. For air-to-ground
systems and the like, service address shall mean the location
of a taxpayer's primary use of the telecommunications
equipment as defined by telephone number, authorization code,
or location in Illinois where bills are sent.
    (o) "Prepaid telephone calling arrangements" mean the
right to exclusively purchase telephone or telecommunications
services that must be paid for in advance and enable the
origination of one or more intrastate, interstate, or
international telephone calls or other telecommunications
using an access number, an authorization code, or both,
whether manually or electronically dialed, for which payment
to a retailer must be made in advance, provided that, unless
recharged, no further service is provided once that prepaid
amount of service has been consumed. Prepaid telephone calling
arrangements include the recharge of a prepaid calling
arrangement. For purposes of this subsection, "recharge" means
the purchase of additional prepaid telephone or
telecommunications services whether or not the purchaser
acquires a different access number or authorization code.
"Prepaid telephone calling arrangement" does not include an
arrangement whereby a customer purchases a payment card and
pursuant to which the service provider reflects the amount of
such purchase as a credit on an invoice issued to that customer
under an existing subscription plan.
(Source: P.A. 93-286, 1-1-04; 94-793, eff. 5-19-06.)
 
    Section 925. The Electricity Excise Tax Law is amended by
changing Section 2-4 as follows:
 
    (35 ILCS 640/2-4)
    Sec. 2-4. Tax imposed.
    (a) Except as provided in subsection (b), a tax is imposed
on the privilege of using in this State electricity purchased
for use or consumption and not for resale, other than by
municipal corporations owning and operating a local
transportation system for public service, at the following
rates per kilowatt-hour delivered to the purchaser:
        (i) For the first 2000 kilowatt-hours used or consumed
    in a month: 0.330 cents per kilowatt-hour;
        (ii) For the next 48,000 kilowatt-hours used or
    consumed in a month: 0.319 cents per kilowatt-hour;
        (iii) For the next 50,000 kilowatt-hours used or
    consumed in a month: 0.303 cents per kilowatt-hour;
        (iv) For the next 400,000 kilowatt-hours used or
    consumed in a month: 0.297 cents per kilowatt-hour;
        (v) For the next 500,000 kilowatt-hours used or
    consumed in a month: 0.286 cents per kilowatt-hour;
        (vi) For the next 2,000,000 kilowatt-hours used or
    consumed in a month: 0.270 cents per kilowatt-hour;
        (vii) For the next 2,000,000 kilowatt-hours used or
    consumed in a month: 0.254 cents per kilowatt-hour;
        (viii) For the next 5,000,000 kilowatt-hours used or
    consumed in a month: 0.233 cents per kilowatt-hour;
        (ix) For the next 10,000,000 kilowatt-hours used or
    consumed in a month: 0.207 cents per kilowatt-hour;
        (x) For all electricity in excess of 20,000,000
    kilowatt-hours used or consumed in a month: 0.202 cents
    per kilowatt-hour.
    Provided, that in lieu of the foregoing rates, the tax is
imposed on a self-assessing purchaser at the rate of 5.1% of
the self-assessing purchaser's purchase price for all
electricity distributed, supplied, furnished, sold,
transmitted and delivered to the self-assessing purchaser in a
month.
    (b) A tax is imposed on the privilege of using in this
State electricity purchased from a municipal system or
electric cooperative, as defined in Article XVII of the Public
Utilities Act, which has not made an election as permitted by
either Section 17-200 or Section 17-300 of such Act, at the
lesser of 0.32 cents per kilowatt hour of all electricity
distributed, supplied, furnished, sold, transmitted, and
delivered by such municipal system or electric cooperative to
the purchaser or 5% of each such purchaser's purchase price
for all electricity distributed, supplied, furnished, sold,
transmitted, and delivered by such municipal system or
electric cooperative to the purchaser, whichever is the lower
rate as applied to each purchaser in each billing period.
    (c) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity by business enterprises
certified under Section 9-222.1 or 9-222.1A of the Public
Utilities Act, as amended, to the extent of such exemption and
during the time specified by the Department of Commerce and
Economic Opportunity; or with respect to any transaction in
interstate commerce, or otherwise, to the extent to which such
transaction may not, under the Constitution and statutes of
the United States, be made the subject of taxation by this
State.
    (d) The tax imposed by this Section 2-4 is not imposed with
respect to any use of electricity at a REV Illinois Project
site that has received a certification for tax exemption from
the Department of Commerce and Economic Opportunity pursuant
to Section 95 of the Reimagining Electric Vehicles in Illinois
Act, to the extent of such exemption, which shall be no more
than 10 years.
(Source: P.A. 94-793, eff. 5-19-06.)
 
    Section 930. The Public Utilities Act is amended by
changing Section 9-222 as follows:
 
    (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
    Sec. 9-222. Whenever a tax is imposed upon a public
utility engaged in the business of distributing, supplying,
furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is
required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, electric vehicle
manufacturers, electric vehicle component parts manufacturers,
or electric vehicle power supply equipment manufacturers at
REV Illinois Project sites as certified under Section 95 of
the Reimagining Electric Vehicles in Illinois Act, or
certified business enterprises under Section 9-222.1 of this
Act, to the extent of such exemption and during the period in
which such exemption is in effect, in addition to any rate
authorized by this Act, an additional charge equal to the
total amount of such taxes. The exemption of this Section
relating to high impact businesses shall be subject to the
provisions of subsections (a), (b), and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act. This requirement shall
not apply to taxes on invested capital imposed pursuant to the
Messages Tax Act, the Gas Revenue Tax Act and the Public
Utilities Revenue Act. Such utility shall file with the
Commission a supplemental schedule which shall specify such
additional charge and which shall become effective upon filing
without further notice. Such additional charge shall be shown
separately on the utility bill to each customer. The
Commission shall have the power to investigate whether or not
such supplemental schedule correctly specifies such additional
charge, but shall have no power to suspend such supplemental
schedule. If the Commission finds, after a hearing, that such
supplemental schedule does not correctly specify such
additional charge, it shall by order require a refund to the
appropriate customers of the excess, if any, with interest, in
such manner as it shall deem just and reasonable, and in and by
such order shall require the utility to file an amended
supplemental schedule corresponding to the finding and order
of the Commission. Except with respect to taxes imposed on
invested capital, such tax liabilities shall be recovered from
customers solely by means of the additional charges authorized
by this Section.
(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
 
    Section 935. The Environmental Protection Act is amended
by adding Section 52.10 as follows:
 
    (415 ILCS 5/52.10 new)
    Sec. 52.10. Electric Vehicle Permitting Task Force.
    (a) The Electric Vehicle Permitting Task Force is hereby
created within the Environmental Protection Agency.
    (b) The Task Force shall consist of the following members,
which shall represent the diversity of the people of Illinois:
        (1) The Director of the Environmental Protection
    Agency or his or her designee;
        (2) The Director of Natural Resources or his or her
    designee;
        (3) The Secretary of Transportation or their designee;
        (4) 8 members appointed by the Governor as follows:
            (A) one member of a statewide organization
        representing manufacturers;
            (B) one member of a statewide organization
        representing business interests;
            (C) one member representing an environmental
        justice organization;
            (D) one member representing a statewide
        environmental advocacy organization;
            (E) one member representing the electric vehicle
        industry;
            (F) one member representing the waste management
        industry;
            (G) one member of a statewide organization
        representing agricultural interests; and
            (H) one member representing a labor organization.
    (c) The duties and responsibilities of the Task Force
include the following:
        (1) identify existing and potential challenges faced
    by the electric vehicle industry with respect to the
    process for obtaining necessary permits from the
    Environmental Protection Agency, the Department of Natural
    Resources, and the Department of Transportation, and
    potential solutions;
        (2) conduct an assessment of State permitting fees,
    including those necessary for electric vehicle investment
    in Illinois, and the revenue generated by those fees;
        (3) assess the permitting needs of the electric
    vehicle industry, including electric vehicle
    manufacturers, electric vehicle power supply equipment
    manufacturers, and electric vehicle component parts
    manufacturers;
        (4) recommend changes to expedite permitting processes
    to support the rapid growth of the electric vehicle
    industry in Illinois, including support for electric
    vehicle businesses locating or relocating in Illinois;
        (5) analyze anticipated staffing needs across State
    agencies to support expedited permitting efforts;
        (6) recommend adjustments to the fee structure for
    state permits, including those permits necessary for
    electric vehicle investment in Illinois, that will support
    increased staffing at state agencies;
        (7) Consider the impact of State and local permitting
    issues on electric vehicle charging station deployments,
    and make recommendations on best practices to streamline
    permitting related to electric vehicle charging stations;
    and
        (8) recommend legislative and regulatory actions that
    are necessary to support changes to permitting processes.
    (d) The Task Force shall not consider or recommend changes
to environmental permitting standards outside of the scope of
the duties and responsibilities outlined in subsection (c).
    (e) Appointments for the Task Force shall be made no later
than December 15, 2021. The Task Force shall issue a final
report based upon its findings and recommendations and submit
the report to the Governor and the General Assembly no later
than March 1, 2022.
    (f) Members of the Task Force shall serve without
compensation. The Environmental Protection Agency shall
provide administrative support to the Task Force.
    (g) The Task Force shall be dissolved upon the filing of
its report.
    (h) This Section is repealed on December 31, 2022.
 
    Section 940. The Motor Vehicle Franchise Act is amended by
changing Section 6 as follows:
 
    (815 ILCS 710/6)  (from Ch. 121 1/2, par. 756)
    (Text of Section before amendment by P.A. 102-232)
    Sec. 6. Warranty agreements; claims; approval; payment;
written disapproval.
    (a) Every manufacturer, distributor, wholesaler,
distributor branch or division, factory branch or division, or
wholesale branch or division shall properly fulfill any
warranty agreement and adequately and fairly compensate each
of its motor vehicle dealers for labor and parts.
    (b) In no event shall such compensation fail to include
reasonable compensation for diagnostic work, as well as repair
service, labor, and parts. Time allowances for the diagnosis
and performance of warranty work and service shall be
reasonable and adequate for the work to be performed. In the
determination of what constitutes reasonable compensation
under this Section, the principal factor to be given
consideration shall be the prevailing wage rates being paid by
the dealer in the relevant market area in which the motor
vehicle dealer is doing business, and in no event shall such
compensation of a motor vehicle dealer for warranty service be
less than the rates charged by such dealer for like service to
retail customers for nonwarranty service and repairs. The
franchiser shall reimburse the franchisee for any parts
provided in satisfaction of a warranty at the prevailing
retail price charged by that dealer for the same parts when not
provided in satisfaction of a warranty; provided that such
motor vehicle franchisee's prevailing retail price is not
unreasonable when compared with that of the holders of motor
vehicle franchises from the same motor vehicle franchiser for
identical merchandise in the geographic area in which the
motor vehicle franchisee is engaged in business. All claims,
either original or resubmitted, made by motor vehicle dealers
hereunder and under Section 5 for such labor and parts shall be
either approved or disapproved within 30 days following their
submission. All approved claims shall be paid within 30 days
following their approval. The motor vehicle dealer who submits
a claim which is disapproved shall be notified in writing of
the disapproval within the same period, and each such notice
shall state the specific grounds upon which the disapproval is
based. The motor vehicle dealer shall be permitted to correct
and resubmit such disapproved claims within 30 days of receipt
of disapproval. Any claims not specifically disapproved in
writing within 30 days from their submission shall be deemed
approved and payment shall follow within 30 days. The
manufacturer or franchiser shall have the right to require
reasonable documentation for claims and to audit such claims
within a one year period from the date the claim was paid or
credit issued by the manufacturer or franchiser, and to charge
back any false or unsubstantiated claims. The audit and charge
back provisions of this Section also apply to all other
incentive and reimbursement programs for a period of one year
after the date the claim was paid or credit issued by the
manufacturer or franchiser. However, the manufacturer retains
the right to charge back any fraudulent claim if the
manufacturer establishes in a court of competent jurisdiction
in this State that the claim is fraudulent.
    (c) The motor vehicle franchiser shall not, by agreement,
by restrictions upon reimbursement, or otherwise, restrict the
nature and extent of services to be rendered or parts to be
provided so that such restriction prevents the motor vehicle
franchisee from satisfying the warranty by rendering services
in a good and workmanlike manner and providing parts which are
required in accordance with generally accepted standards. Any
such restriction shall constitute a prohibited practice.
    (d) For the purposes of this Section, the "prevailing
retail price charged by that dealer for the same parts" means
the price paid by the motor vehicle franchisee for parts,
including all shipping and other charges, multiplied by the
sum of 1.0 and the franchisee's average percentage markup over
the price paid by the motor vehicle franchisee for parts
purchased by the motor vehicle franchisee from the motor
vehicle franchiser and sold at retail. The motor vehicle
franchisee may establish average percentage markup under this
Section by submitting to the motor vehicle franchiser 100
sequential customer paid service repair orders or 90 days of
customer paid service repair orders, whichever is less,
covering repairs made no more than 180 days before the
submission, and declaring what the average percentage markup
is. The average percentage markup so declared shall go into
effect 30 days following the declaration, subject to audit of
the submitted repair orders by the motor vehicle franchiser
and adjustment of the average percentage markup based on that
audit. Any audit must be conducted within 30 days following
the declaration. Only retail sales not involving warranty
repairs, parts covered by subsection (e) of this Section, or
parts supplied for routine vehicle maintenance, shall be
considered in calculating average percentage markup. No motor
vehicle franchiser shall require a motor vehicle franchisee to
establish average percentage markup by a methodology, or by
requiring information, that is unduly burdensome or time
consuming to provide, including, but not limited to, part by
part or transaction by transaction calculations. A motor
vehicle franchisee shall not request a change in the average
percentage markup more than twice in one calendar year.
    (e) If a motor vehicle franchiser supplies a part or parts
for use in a repair rendered under a warranty other than by
sale of that part or parts to the motor vehicle franchisee, the
motor vehicle franchisee shall be entitled to compensation
equivalent to the motor vehicle franchisee's average
percentage markup on the part or parts, as if the part or parts
had been sold to the motor vehicle franchisee by the motor
vehicle franchiser. The requirements of this subsection (e)
shall not apply to entire engine assemblies and entire
transmission assemblies. In the case of those assemblies, the
motor vehicle franchiser shall reimburse the motor vehicle
franchisee in the amount of 30% of what the motor vehicle
franchisee would have paid the motor vehicle franchiser for
the assembly if the assembly had not been supplied by the
franchiser other than by the sale of that assembly to the motor
vehicle franchisee.
    (f) The obligations imposed on motor vehicle franchisers
by this Section shall apply to any parent, subsidiary,
affiliate, or agent of the motor vehicle franchiser, any
person under common ownership or control, any employee of the
motor vehicle franchiser, and any person holding 1% or more of
the shares of any class of securities or other ownership
interest in the motor vehicle franchiser, if a warranty or
service or repair plan is issued by that person instead of or
in addition to one issued by the motor vehicle franchiser.
    (g) (1) Any motor vehicle franchiser and at least a
majority of its Illinois franchisees of the same line make may
agree in an express written contract citing this Section upon
a uniform warranty reimbursement policy used by contracting
franchisees to perform warranty repairs. The policy shall only
involve either reimbursement for parts used in warranty
repairs or the use of a Uniform Time Standards Manual, or both.
Reimbursement for parts under the agreement shall be used
instead of the franchisees' "prevailing retail price charged
by that dealer for the same parts" as defined in this Section
to calculate compensation due from the franchiser for parts
used in warranty repairs. This Section does not authorize a
franchiser and its Illinois franchisees to establish a uniform
hourly labor reimbursement.
    Each franchiser shall only have one such agreement with
each line make. Any such agreement shall:
        (A) Establish a uniform parts reimbursement rate. The
    uniform parts reimbursement rate shall be greater than the
    franchiser's nationally established parts reimbursement
    rate in effect at the time the first such agreement
    becomes effective; however, any subsequent agreement shall
    result in a uniform reimbursement rate that is greater or
    equal to the rate set forth in the immediately prior
    agreement.
        (B) Apply to all warranty repair orders written during
    the period that the agreement is effective.
        (C) Be available, during the period it is effective,
    to any motor vehicle franchisee of the same line make at
    any time and on the same terms.
        (D) Be for a term not to exceed 3 years so long as any
    party to the agreement may terminate the agreement upon
    the annual anniversary of the agreement and with 30 days'
    prior written notice; however, the agreement shall remain
    in effect for the term of the agreement regardless of the
    number of dealers of the same line make that may terminate
    the agreement.
    (2) A franchiser that enters into an agreement with its
franchisees pursuant to paragraph (1) of this subsection (g)
may seek to recover its costs from only those franchisees that
are receiving their "prevailing retail price charged by that
dealer" under subsections (a) through (f) of this Section,
subject to the following requirements:
        (A) "costs" means the difference between the uniform
    reimbursement rate set forth in an agreement entered into
    pursuant to paragraph (1) of this subsection (g) and the
    "prevailing retail price charged by that dealer" received
    by those franchisees of the same line make. "Costs" do not
    include the following: legal fees or expenses;
    administrative expenses; a profit mark-up; or any other
    item;
        (B) the costs shall be recovered only by increasing
    the invoice price on new vehicles received by those
    franchisees; and
        (C) price increases imposed for the purpose of
    recovering costs imposed by this Section may vary from
    time to time and from model to model, but shall apply
    uniformly to all franchisees of the same line make in the
    State of Illinois that have requested reimbursement for
    warranty repairs at their "prevailing retail price charged
    by that dealer", except that a franchiser may make an
    exception for vehicles that are titled in the name of a
    consumer in another state.
    (3) If a franchiser contracts with its Illinois dealers
pursuant to paragraph (1) of this subsection (g), the
franchiser shall certify under oath to the Motor Vehicle
Review Board that a majority of the franchisees of that line
make did agree to such an agreement and file a sample copy of
the agreement. On an annual basis, each franchiser shall
certify under oath to the Motor Vehicle Review Board that the
reimbursement costs it recovers under paragraph (2) of this
subsection (g) do not exceed the amounts authorized by
paragraph (2) of this subsection (g). The franchiser shall
maintain for a period of 3 years a file that contains the
information upon which its certification is based.
    (3.1) A franchiser subject to subdivision (g)(2) of this
Section, upon request of a dealer subject to that subdivision,
shall disclose to the dealer, in writing or in person if
requested by the dealer, the method by which the franchiser
calculated the amount of the costs to be reimbursed by the
dealer. The franchiser shall also provide aggregate data
showing (i) the total costs the franchiser incurred and (ii)
the total number of new vehicles invoiced to each dealer that
received the "prevailing retail price charged by that dealer"
during the relevant period of time. In responding to a
dealer's request under this subdivision (g)(3.1), a franchiser
may not disclose any confidential or competitive information
regarding any other dealer. Any dealer who receives
information from a franchiser under this subdivision (g)(3.1)
may not disclose that information to any third party unless
the disclosure occurs in the course of a lawful proceeding
before, or upon the order of, the Motor Vehicle Review Board or
a court of competent jurisdiction.
    (4) If a franchiser and its franchisees do not enter into
an agreement pursuant to paragraph (1) of this subsection (g),
and for any matter that is not the subject of an agreement,
this subsection (g) shall have no effect whatsoever.
    (5) For purposes of this subsection (g), a Uniform Time
Standard Manual is a document created by a franchiser that
establishes the time allowances for the diagnosis and
performance of warranty work and service. The allowances shall
be reasonable and adequate for the work and service to be
performed. Each franchiser shall have a reasonable and fair
process that allows a franchisee to request a modification or
adjustment of a standard or standards included in such a
manual.
    (6) A franchiser may not take any adverse action against a
franchisee for not having executed an agreement contemplated
by this subsection (g) or for receiving the "prevailing retail
price charged by that dealer". Nothing in this subsection
shall be construed to prevent a franchiser from making a
determination of a franchisee's "prevailing retail price
charged by that dealer", as provided by this Section.
(Source: P.A. 96-11, eff. 5-22-09.)
 
    (Text of Section after amendment by P.A. 102-232)
    Sec. 6. Warranty agreements; claims; approval; payment;
written disapproval.
    (a) Every manufacturer, distributor, wholesaler,
distributor branch or division, factory branch or division, or
wholesale branch or division shall properly fulfill any
warranty agreement and adequately and fairly compensate each
of its motor vehicle dealers for labor and parts.
    (b) Adequate and fair compensation requires the
manufacturer to pay each dealer no less than the amount the
retail customer pays for the same services with regard to rate
and time.
    Any time guide previously agreed to by the manufacturer
and the dealer for extended warranty repairs may be used in
lieu of actual time expended. In the event that a time guide
has not been agreed to for warranty repairs, or said time guide
does not define time for an applicable warranty repair, the
manufacturer's time guide shall be used, multiplied by 1.5.
    In no event shall such compensation fail to include full
compensation for diagnostic work, as well as repair service,
labor, and parts. Time allowances for the diagnosis and
performance of warranty work and service shall be no less than
charged to retail customers for the same work to be performed.
    No warranty or factory compensated repairs shall be
excluded from this requirement, including recalls or other
voluntary stop-sell repairs required by the manufacturer. If a
manufacturer is required to issue a recall, the dealer will be
compensated for labor time as above stated.
    Furthermore, manufacturers shall pay the dealer the same
effective labor rate (using the 100 sequential repair orders
chosen and submitted by the dealer less simple maintenance
repair orders) that the dealer receives for customer-pay
repairs. This requirement includes vehicle diagnostic times
for all warranty repairs. Additionally, if a technician is
required to communicate with a Technical Assistance
Center/Engineering/or some external manufacturer source in
order to provide a warranty repair, the manufacturer shall pay
for the time from start of communications (including hold
time) until the communication is complete.
    The dealer may submit a request to the manufacturer for
warranty labor rate increases a maximum of once per calendar
year.
    A claim made by a franchised motor vehicle dealer for
compensation under this Section shall be either approved or
disapproved within 30 days after the claim is submitted to the
manufacturer in the manner and on the forms the manufacturer
reasonably prescribes. An approved claim shall be paid within
30 days after its approval. If a claim is not specifically
disapproved in writing or by electronic transmission within 30
days after the date on which the manufacturer receives it, the
claim shall be considered to be approved and payment shall
follow within 30 days.
    In no event shall compensation to a motor vehicle dealer
for labor times and labor rates be less than the rates charged
by such dealer for like service to retail customers for
nonwarranty service and repairs. Additionally, the
manufacturer shall reimburse the dealer for any parts provided
in satisfaction of a warranty at the prevailing retail price
charged by that dealer for the same parts when not provided in
satisfaction of a warranty; provided that such dealer's
prevailing retail price is not unreasonable when compared with
that of the holders of motor vehicle franchises from the same
manufacturer for identical parts in the geographic area in
which the dealer is engaged in business. Additionally, the
manufacturer shall reimburse the dealer for any parts provided
in satisfaction of a warranty at the prevailing retail price
charged by that dealer for the same parts when sold to a retail
customer.
    There shall be no reduction in payments due to
preestablished market norms or market averages. Manufacturers
are prohibited from establishing restrictions or limitations
of customer repair frequency due to failure rate indexes or
national failure averages.
    No debit reduction or charge back of any item on a warranty
repair order may be made absent a finding of fraud or illegal
actions by the dealer.
    A warranty claim timely made shall not be deemed invalid
solely because unavailable parts cause additional use and
mileage on the vehicle.
    If a manufacturer imposes a recall or stop sale on any new
vehicle in a dealer's inventory that prevents the sale of the
vehicle, the manufacturer shall compensate the dealer for any
interest and storage until the vehicle is repaired and made
ready for sale.
    Manufacturers are not permitted to impose any form of cost
recovery fees or surcharges against a franchised auto
dealership for payments made in accordance with this Section.
    All claims, either original or resubmitted, made by motor
vehicle dealers hereunder and under Section 5 for such labor
and parts shall be either approved or disapproved within 30
days following their submission. All approved claims shall be
paid within 30 days following their approval. The motor
vehicle dealer who submits a claim which is disapproved shall
be notified in writing of the disapproval within the same
period, and each such notice shall state the specific grounds
upon which the disapproval is based. The motor vehicle dealer
shall be permitted to correct and resubmit such disapproved
claims within 30 days of receipt of disapproval. Any claims
not specifically disapproved in writing within 30 days from
their submission shall be deemed approved and payment shall
follow within 30 days. The manufacturer or franchiser shall
have the right to require reasonable documentation for claims
and to audit such claims within a one year period from the date
the claim was paid or credit issued by the manufacturer or
franchiser, and to charge back any false or unsubstantiated
claims. The audit and charge back provisions of this Section
also apply to all other incentive and reimbursement programs
for a period of one year after the date the claim was paid or
credit issued by the manufacturer or franchiser. However, the
manufacturer retains the right to charge back any fraudulent
claim if the manufacturer establishes in a court of competent
jurisdiction in this State that the claim is fraudulent.
    (c) The motor vehicle franchiser shall not, by agreement,
by restrictions upon reimbursement, or otherwise, restrict the
nature and extent of services to be rendered or parts to be
provided so that such restriction prevents the motor vehicle
franchisee from satisfying the warranty by rendering services
in a good and workmanlike manner and providing parts which are
required in accordance with generally accepted standards. Any
such restriction shall constitute a prohibited practice.
    (d) For the purposes of this Section, the "prevailing
retail price charged by that dealer for the same parts" means
the price paid by the motor vehicle franchisee for parts,
including all shipping and other charges, multiplied by the
sum of 1.0 and the franchisee's average percentage markup over
the price paid by the motor vehicle franchisee for parts
purchased by the motor vehicle franchisee from the motor
vehicle franchiser and sold at retail. The motor vehicle
franchisee may establish average percentage markup under this
Section by submitting to the motor vehicle franchiser 100
sequential customer paid service repair orders or 90 days of
customer paid service repair orders, whichever is less,
covering repairs made no more than 180 days before the
submission, and declaring what the average percentage markup
is. The average percentage markup so declared shall go into
effect 30 days following the declaration, subject to audit of
the submitted repair orders by the motor vehicle franchiser
and adjustment of the average percentage markup based on that
audit. Any audit must be conducted within 30 days following
the declaration. Only retail sales not involving warranty
repairs, parts covered by subsection (e) of this Section, or
parts supplied for routine vehicle maintenance, shall be
considered in calculating average percentage markup. No motor
vehicle franchiser shall require a motor vehicle franchisee to
establish average percentage markup by a methodology, or by
requiring information, that is unduly burdensome or time
consuming to provide, including, but not limited to, part by
part or transaction by transaction calculations. A motor
vehicle franchisee shall not request a change in the average
percentage markup more than twice in one calendar year.
    (e) If a motor vehicle franchiser supplies a part or parts
for use in a repair rendered under a warranty other than by
sale of that part or parts to the motor vehicle franchisee, the
motor vehicle franchisee shall be entitled to compensation
equivalent to the motor vehicle franchisee's average
percentage markup on the part or parts, as if the part or parts
had been sold to the motor vehicle franchisee by the motor
vehicle franchiser. The requirements of this subsection (e)
shall not apply to entire engine assemblies, propulsion engine
assemblies, including electric vehicle batteries, and entire
transmission assemblies. In the case of those assemblies, the
motor vehicle franchiser shall reimburse the motor vehicle
franchisee up to and including 30% of what the motor vehicle
franchisee would have paid the motor vehicle franchiser for
the assembly if the assembly had not been supplied by the
franchiser other than by the sale of that assembly to the motor
vehicle franchisee and entire transmission assemblies.
    (f) The obligations imposed on motor vehicle franchisers
by this Section shall apply to any parent, subsidiary,
affiliate, or agent of the motor vehicle franchiser, any
person under common ownership or control, any employee of the
motor vehicle franchiser, and any person holding 1% or more of
the shares of any class of securities or other ownership
interest in the motor vehicle franchiser, if a warranty or
service or repair plan is issued by that person instead of or
in addition to one issued by the motor vehicle franchiser.
    (g) (Blank).
(Source: P.A. 102-232, eff. 1-1-22.)
 
    Section 995. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.