Public Act 098-0109
 
SB0020 EnrolledLRB098 04192 JDS 34215 b

    AN ACT concerning government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
ARTICLE 1.
SHORT TITLE

 
    Section 1-1. Short title. This Act may be cited as the
Economic Development Act of 2013.
 
ARTICLE 2.
PUBLIC-PRIVATE AGREEMENTS FOR THE SOUTH SUBURBAN AIRPORT ACT

 
    Section 2-1. Short title. This Article may be cited as the
Public-Private Agreements for the South Suburban Airport Act.
References in this Article to "this Act" mean this Article.
 
    Section 2-5. Legislative findings.
    (a) Providing facilities for air travel to and from the
State of Illinois through the South Suburban Airport is
essential for the health and welfare of the people of the State
of Illinois and economic development of the State of Illinois.
    (b) Airport development has significant regional impacts
with regard to economic development, public infrastructure
requirements, traffic, noise, and other concerns.
    (c) The South Suburban Airport will promote development and
investment in the State of Illinois and serve as a critical
transportation hub in the region.
    (d) Existing requirements of procurement and financing of
airports by the Department impose limitations on the methods by
which airports may be developed and operated within the State.
    (e) Public-private agreements between the State of
Illinois and one or more private entities to develop, finance,
construct, manage, operate, maintain, or any combination
thereof, the South Suburban Airport have the potential of
maximizing value and benefit to the People of the State of
Illinois and the public at large.
    (f) Public-private agreements may enable the South
Suburban Airport to be developed, financed, constructed,
managed, operated, and maintained in an entrepreneurial and
business-like manner.
    (g) In the event that the State of Illinois enters into one
or more public-private agreements to develop, finance,
construct, manage, operate, or maintain the South Suburban
Airport, the private parties to the agreements should be
accountable to the People of Illinois through a comprehensive
system of oversight, regulation, auditing, and reporting.
    (h) It is the intent of this Act to use Illinois design
professionals, construction companies, and workers to the
greatest extent permitted by law by offering them the right to
compete for this work.
    (i) It is the intent of this Act for the Department to
collaborate with affected municipalities, counties, citizens,
elected officials, interest groups, and other stakeholders to
foster economic development around the South Suburban Airport
and the region, and to insure that the communities near the
South Suburban Airport have an ongoing opportunity to provide
input on the development and operation of the South Suburban
Airport.
 
    Section 2-10. Definitions. As used in this Act:
    "Agreement" means a public-private agreement.
    "Airport" means a facility for all types of air service,
including, without limitation, landing fields, taxiways,
aprons, runways, runway clear areas, heliports, hangars,
aircraft service facilities, approaches, navigational aids,
air traffic control facilities, terminals, inspection
facilities, security facilities, parking, internal transit
facilities, fueling facilities, cargo handling facilities,
concessions, rapid transit and roadway access, land and
interests in land, public waters, submerged land under public
waters and reclaimed land located on previously submerged land
under public waters, and all other property and appurtenances
necessary or useful for development, ownership, and operation
of any such facilities. "Airport" includes commercial or
industrial facilities related to the functioning of the airport
or to providing services to users of the airport.
    "Contractor" means a person that has been selected to enter
or has entered into a public-private agreement with the
Department on behalf of the State for the development,
financing, construction, management, or operation of the South
Suburban Airport under this Act.
    "Department" means the Illinois Department of
Transportation.
    "Inaugural airport" means all airport facilities,
equipment, property, and appurtenances necessary or useful to
the development and operation of the South Suburban Airport
that are constructed, developed, installed, or acquired as of
the commencement of public operations of the South Suburban
Airport.
    "Inaugural airport boundary" means the property limits of
the inaugural airport as determined by the Department, as may
be adjusted and reconfigured from time to time.
    "Maintain" or "maintenance" includes ordinary maintenance,
repair, rehabilitation, capital maintenance, maintenance
replacement, and any other categories of maintenance that may
be designated by the Department.
    "Metropolitan planning organization" means a metropolitan
planning organization designated under 23 U.S.C. Section 134.
    "Offeror" means a person that responds to a request for
proposals under this Act.
    "Operate" or "operation" means to do one or more of the
following: maintain, improve, equip, modify, or otherwise
operate.
    "Person" means any individual, firm, association, joint
venture, partnership, estate, trust, syndicate, fiduciary,
corporation, or any other legal entity, group, or combination
thereof.
    "Public-private agreement" means an agreement or contract
between the Department on behalf of the State and all
schedules, exhibits, and attachments thereto, entered into
pursuant to a competitive request for proposals process
governed by this Act, for the development, financing,
construction, management, or operation of the South Suburban
Airport under this Act.
    "Revenues" means all revenues, including any combination
of, but not limited to: income; user fees; earnings; interest;
lease payments; allocations; moneys from the federal
government, the State, and units of local government, including
but not limited to federal, State, and local appropriations,
grants, loans, lines of credit, and credit guarantees; bond
proceeds; equity investments; service payments; or other
receipts arising out of or in connection with the financing,
development, construction, management, or operation of the
South Suburban Airport.
    "State" means the State of Illinois.
    "Secretary" means the Secretary of the Illinois Department
of Transportation.
    "South Suburban Airport" means the airport to be developed
on a site located in Will County and approved by the Federal
Aviation Administration in the Record of Decision for Tier 1:
FAA Site Approval And Land Acquisition By The State Of
Illinois, Proposed South Suburban Airport, Will County,
Illinois, dated July 2002, and all property within the
inaugural airport boundary and the ultimate airport boundary.
    "Ultimate airport boundary" means the development and
property limits of the South Suburban Airport beyond the
inaugural airport boundary as determined by the Department, as
may be adjusted and reconfigured from time to time.
    "Unit of local government" has the meaning ascribed to that
term in Article VII, Section 1 of the Constitution of the State
of Illinois, and, for purposes of this Act, includes school
districts.
    "User fees" means the rates, fees, or other charges imposed
by the State or the contractor for use of all or a portion of
the South Suburban Airport under a public-private agreement.
 
    Section 2-15. General airport powers.
    (a) The Department has the power to plan, develop, secure
permits, licenses, and approvals for, acquire, develop,
construct, equip, own, and operate the South Suburban Airport.
The Department also has the power to own, operate, acquire
facilities for, construct, improve, repair, maintain,
renovate, and expand the South Suburban Airport, including any
facilities located on the site of the South Suburban Airport
for use by any individual or entity other than the Department.
The development of the South Suburban Airport shall also
include all land, highways, waterways, mass transit
facilities, and other infrastructure that, in the
determination of the Department, are necessary or appropriate
in connection with the development or operation of the South
Suburban Airport. The development of the South Suburban Airport
also includes acquisition and development of any land or
facilities for (i) relocation of persons, including providing
replacement housing or facilities for persons and entities
displaced by that development, (ii) protecting or reclaiming
the environment with respect to the South Suburban Airport,
(iii) providing substitute or replacement property or
facilities, including without limitation, for areas of
recreation, conservation, open space, and wetlands, (iv)
providing navigational aids, or (v) utilities to serve the
airport, whether or not located on the site of the South
Suburban Airport.
    (b) The Department shall have the authority to undertake
and complete all ongoing projects related to the South Suburban
Airport, including the South Suburban Airport Master Plan, and
assisting the Federal Aviation Administration in preparing and
approving the Environmental Impact Statement and Record of
Decision.
    (c) The Department has the power to enter into all
contracts useful for carrying out its purposes and powers,
including, without limitation, public-private agreements
pursuant to the provisions of this Act; leases of any of its
property or facilities, use agreements with airlines or other
airport users relating to the South Suburban Airport,
agreements with South Suburban Airport concessionaires, and
franchise agreements for use of or access to South Suburban
Airport facilities.
    (d) The Department has the power to apply to the proper
authorities of the United States, the State of Illinois, and
other governmental entities, as permitted or authorized by
applicable law, to obtain any licenses, approvals, or permits
reasonably necessary to achieve the purposes of this Act. All
applications to the Federal Aviation Administration, or any
successor agency, shall be made by the Department.
    (e) The Department may take all steps consistent with
applicable laws to maximize funding for the costs of the South
Suburban Airport from grants by the Federal Aviation
Administration or any successor agency, or any other federal
governmental agency.
    (f) The Department has the power to apply to the proper
authorities of the United States pursuant to appropriate law
for permission to establish, operate, maintain, and lease
foreign trade zones and sub-zones within the areas of the South
Suburban Airport and to establish, operate, maintain, and lease
foreign trade zones and sub-zones.
    (g) The Department may publicize, advertise, and promote
the activities of the South Suburban Airport, including, to
make known the advantages, facilities, resources, products,
attractions, and attributes of the South Suburban Airport.
    (h) The Department may, at any time, acquire any land, any
interests in land, other property, and interests in property
needed for the South Suburban Airport or necessary to carry out
the Department's powers and functions under this Act, including
by exercise of the power of eminent domain pursuant to Section
2-100 of this Act. The Department shall also have the power to
dispose of any such lands, interests, and property upon terms
it deems appropriate.
    (i) The Department may adopt any reasonable rules for the
administration of this Act in accordance with the Illinois
Administrative Procedure Act.
 
    Section 2-20. Public-private agreement authorized.
    (a) Notwithstanding any provision of law to the contrary,
the Department may, on behalf of the State, and pursuant to a
competitive request for proposals process governed by Section
2-30 of this Act, enter into one or more public-private
agreements with one or more contractors to develop, finance,
construct, manage, operate, or maintain, or any combination
thereof, the South Suburban Airport. Pursuant to those
agreements, the contractors may receive the right to certain
revenues including user fees in consideration of the payment of
moneys to the State for that right.
    (b) Before taking any action in connection with the
development, financing, operation, or maintenance of the South
Suburban Airport that is not authorized by an interim agreement
under Section 2-40 of this Act, a contractor shall enter into a
public-private agreement.
    (c) The term of a public-private agreement, including all
extensions, shall be no more than 75 years.
    (d) The term of a public-private agreement may be extended,
but only if the extension is specifically authorized by the
General Assembly by law.
 
    Section 2-25. Prequalification to enter into
public-private agreements. The Department may establish a
process for prequalification of offerors. If the Department
creates a prequalification process, it shall: (i) provide a
public notice of the prequalification at least 30 days before
the date on which applications are due; (ii) set forth
requirements and evaluation criteria in order to become
prequalified; (iii) determine which offerors that have
submitted prequalification applications, if any, meet the
requirements and evaluation criteria; and (iv) allow only those
offerors that have been prequalified to respond to the request
for proposals.
 
    Section 2-30. Request for proposals process to enter into
public-private agreements.
    (a) Notwithstanding any provisions of the Illinois
Procurement Code, the Department, on behalf of the State, shall
select a contractor through a competitive request for proposals
process governed by Section 2-30 of this Act. The Department
will consult with the chief procurement officer for
construction or construction-related activities designated
pursuant to clause (2) of Section 1-15.15 of the Illinois
Procurement Code on the competitive request for proposals
process, and the Secretary will determine, in consultation with
the chief procurement officer, which procedures to adopt and
apply to the competitive request for proposals process in order
to ensure an open, transparent, and efficient process that
accomplishes the purposes of this Act.
    (b) The competitive request for proposals process shall, at
a minimum, solicit statements of qualification and proposals
from offerors.
    (c) The competitive request for proposals process shall, at
a minimum, take into account the following criteria:
        (1) the offeror's plans for the South Suburban Airport
    project;
        (2) the offeror's current and past business practices;
        (3) the offeror's poor or inadequate past performance
    in developing, financing, constructing, managing, or
    operating airports or other public assets;
        (4) the offeror's ability to meet the utilization goals
    for business enterprises established in the Business
    Enterprise for Minorities, Females, and Persons with
    Disabilities Act;
        (5) the offeror's ability to comply with Section 2-105
    of the Illinois Human Rights Act; and
        (6) the offeror's plans to comply with the Business
    Enterprise for Minorities, Females, and Persons with
    Disabilities Act and Section 2-105 of the Illinois Human
    Rights Act.
    (d) The Department shall retain the services of an advisor
or advisors with significant experience in the development,
financing, construction, management, or operation of public
assets to assist in the preparation of the request for
proposals.
    (e) The Department shall not include terms in the request
for proposals that provide an advantage, whether directly or
indirectly, to any contractor presently providing goods,
services, or equipment to the Department.
    (f) The Department shall select one or more offerors as
finalists. The Department shall submit the offeror's
statements of qualification and proposals to the Commission on
Government Forecasting and Accountability and the Procurement
Policy Board, which shall, within 30 days after the submission,
complete a review of the statements of qualification and
proposals and, jointly or separately, report on, at a minimum,
the satisfaction of the criteria contained in the request for
proposals, the qualifications of the offerors, and the value of
the proposals to the State. The Department shall not select an
offeror as the contractor for the South Suburban Airport
project until it has received and considered the findings of
the Commission on Government Forecasting and Accountability
and the Procurement Policy Board as set forth in their
respective reports.
    (g) Before awarding a public-private agreement to an
offeror, the Department shall schedule and hold a public
hearing or hearings on the proposed public-private agreement
and publish notice of the hearing or hearings at least 7 days
before the hearing. The notice shall include the following:
        (1) the date, time, and place of the hearing and the
    address of the Department;
        (2) the subject matter of the hearing;
        (3) a description of the agreement that may be awarded;
        and
        (4) the recommendation that has been made to select an
        offeror as the contractor for the South Suburban
        Airport project.
    At the hearing, the Department shall allow the public to be
heard on the subject of the hearing.
    (h) After the procedures required in this Section have been
completed, the Department shall make a determination as to
whether the offeror should be designated as the contractor for
the South Suburban Airport project and shall submit the
decision to the Governor and to the Governor's Office of
Management and Budget. After review of the Department's
determination, the Governor may accept or reject the
determination. If the Governor accepts the determination of the
Department, the Governor shall designate the offeror for the
South Suburban Airport project.
 
    Section 2-35. Provisions of the public-private agreement.
    (a) The public-private agreement shall include all of the
following:
        (1) the term of the public-private agreement that is
    consistent with Section 2-20 of this Act;
        (2) the powers, duties, responsibilities, obligations,
    and functions of the Department and the contractor;
        (3) compensation or payments to the Department;
        (4) compensation or payments to the contractor;
        (5) a provision specifying that the Department has:
            (A) ready access to information regarding the
        contractor's powers, duties, responsibilities,
        obligations, and functions under the public-private
        agreement;
            (B) the right to demand and receive information
        from the contractor concerning any aspect of the
        contractor's powers, duties, responsibilities,
        obligations, and functions under the public-private
        agreement; and
            (C) the authority to direct or countermand
        decisions by the contractor at any time;
        (6) a provision imposing an affirmative duty on the
    contractor to provide the Department with any information
    the Department reasonably would want to know or would need
    to know to enable the Department to exercise its powers,
    carry out its duties, responsibilities, and obligations,
    and perform its functions under this Act or the
    public-private agreement or as otherwise required by law;
        (7) a provision requiring the contractor to provide the
    Department with advance written notice of any decision that
    bears significantly on the public interest so the
    Department has a reasonable opportunity to evaluate and
    countermand that decision under this Section;
        (8) a requirement that the Department monitor and
    oversee the contractor's practices and take action that the
    Department considers appropriate to ensure that the
    contractor is in compliance with the terms of the
    public-private agreement;
        (9) the authority of the Department to enter into
    contracts with third parties pursuant to Section 2-65 of
    this Act;
        (10) a provision governing the contractor's authority
    to negotiate and execute subcontracts with third parties;
        (11) the authority of the contractor to impose user
    fees and the amounts of those fees;
        (12) a provision governing the deposit and allocation
    of revenues including user fees;
        (13) a provision governing rights to real and personal
    property of the State, the Department, the contractor, and
    other third parties;
        (14) a provision stating that the contractor shall,
    pursuant to Section 2-85 of this Act, pay the costs of an
    independent audit if the construction costs under the
    contract exceed $50,000,000;
        (15) a provision regarding the implementation and
    delivery of a comprehensive system of internal audits;
        (16) a provision regarding the implementation and
    delivery of reports, which shall include a requirement that
    the contractor file with the Department, at least on an
    annual basis, financial statements containing information
    required by generally accepted accounting principles
    (GAAP);
        (17) procedural requirements for obtaining the prior
    approval of the Department when rights that are the subject
    of the agreement, including, but not limited to development
    rights, construction rights, property rights, and rights
    to certain revenues, are sold, assigned, transferred, or
    pledged as collateral to secure financing or for any other
    reason;
        (18) grounds for termination of the agreement by the
    Department or the contractor and a restatement of the
    Department's rights under Section 2-45 of this Act;
        (19) a requirement that the contractor enter into a
    project labor agreement under Section 2-120 of this Act;
        (20) a provision stating that construction contractors
    shall comply with Section 2-120 of this Act;
        (21) timelines, deadlines, and scheduling;
        (22) review of plans, including development,
    financing, construction, management, operations, or
    maintenance plans, by the Department;
        (23) a provision regarding inspections by the
    Department, including inspections of construction work and
    improvements;
        (24) rights and remedies of the Department in the event
    that the contractor defaults or otherwise fails to comply
    with the terms of the public-private agreement;
        (25) a code of ethics for the contractor's officers and
    employees; and
        (26) procedures for amendment to the agreement.
    (b) The public-private agreement may include any or all of
the following:
        (1) a provision regarding the extension of the
    agreement that is consistent with Section 2-20 of this Act;
        (2) provisions leasing to the contractor all or any
    portion of the South Suburban Airport, provided that the
    lease may not extend beyond the term of the public-private
    agreement.
        (3) cash reserves requirements;
        (4) delivery of performance and payment bonds or other
    performance security in a form and amount that is
    satisfactory to the Department;
        (5) maintenance of public liability insurance;
        (6) maintenance of self-insurance;
        (7) provisions governing grants and loans, pursuant to
    which the Department may agree to make grants or loans for
    the development, financing, construction, management, or
    operation of the South Suburban Airport project from time
    to time from amounts received from the federal government
    or any agency or instrumentality of the federal government
    or from any State or local agency;
        (8) reimbursements to the Department for work
    performed and goods, services, and equipment provided by
    the Department;
        (9) provisions allowing the Department to submit any
    contractual disputes with the contractor relating to the
    public-private agreement to non-binding alternative
    dispute resolution proceedings; and
        (10) any other terms, conditions, and provisions
    acceptable to the Department that the Department deems
    necessary and proper and in the public interest.
 
    Section 2-40. Interim agreements.
    (a) Prior to or in connection with the negotiation of the
public-private agreement, the Department may enter into an
interim agreement with the contractor.
    (b) The interim agreement may not authorize the contractor
to perform construction work prior to the execution of the
public-private agreement.
    (c) The interim agreement may include any or all of the
following:
        (1) timelines, deadlines, and scheduling;
        (2) compensation including the payment of costs and
    fees in the event the Department terminates the interim
    agreement or declines to proceed with negotiation of the
    public-private agreement;
        (3) a provision governing the contractor's authority
    to commence activities related to the South Suburban
    Airport project including, but not limited to, project
    planning, advance property acquisition, design and
    engineering, environmental analysis and mitigation,
    surveying, conducting studies including revenue and
    transportation studies, and ascertaining the availability
    of financing;
        (4) procurement procedures;
        (5) a provision governing rights to real and personal
    property of the State, the Department, the contractor, and
    other third parties;
        (6) all other terms, conditions, and provisions
    acceptable to the Department that the Department deems
    necessary and proper and in the public interest.
    (d) The Department may enter into one or more interim
agreements with one or more contractors if the Department
determines in writing that it is in the public interest to do
so.
 
    Section 2-45. Termination of the public-private agreement.
The Department may terminate a public-private agreement or
interim agreement entered into by the Department under Section
2-40 of this Act if the contractor or any executive employee of
the contractor is found guilty of any criminal offense related
to the conduct of its business or the regulation thereof in any
jurisdiction. For purposes of this Section, an "executive
employee" is the President, Chairman, Chief Executive Officer,
or Chief Financial Officer; any employee with executive
decision-making authority over the long-term or day-to-day
affairs of the contractor; or any employee whose compensation
or evaluation is determined in whole or in part by the award of
the public-private agreement.
 
    Section 2-50. Public-private agreement proceeds. After the
payment of all transaction costs, including payments for legal,
accounting, financial, consultation, and other professional
services, all moneys received by the State as compensation for
the public-private agreement shall be deposited into the South
Suburban Airport Improvement Fund, which is hereby created as a
special fund in the State treasury. Expenditures may be made
from the South Suburban Airport Improvement Fund only in the
manner as appropriated by the General Assembly by law.
 
    Section 2-55. User fees. No user fees may be imposed by the
contractor except as set forth in the public-private agreement.
 
    Section 2-60. Selection of professional design firms.
Notwithstanding any provision of law to the contrary, the
selection of professional design firms by the Department for
South Suburban Airport projects, other than the selection of a
contractor for a public-private agreement or interim
agreement, shall comply with the Architectural, Engineering,
and Land Surveying Qualifications Based Selection Act.
 
    Section 2-65. Other contracts. Except as otherwise
provided in a public-private agreement entered into pursuant to
this Act, the Department may, pursuant to the Illinois
Procurement Code and its rules, award contracts for goods,
services, or equipment, or lease all or any portion of the
South Suburban Airport.
 
    Section 2-70. Planning for the South Suburban Airport
project. The South Suburban Airport project shall be subject to
all applicable planning requirements otherwise required by
law, including land use planning, regional planning,
transportation planning, and environmental compliance
requirements.
 
    Section 2-75. Illinois Department of Transportation
reporting requirements and information requests.
    (a) The Department shall submit written progress reports to
the Procurement Policy Board and the General Assembly on the
South Suburban Airport project. These progress reports shall be
provided quarterly prior to the commencement of the
construction of the South Suburban Airport, and shall be
provided monthly thereafter until construction is complete.
The reports shall include the status of any public-private
agreements or other contracting and any ongoing or completed
studies. The Procurement Policy Board may determine the format
for the written progress reports.
    (b) Upon request, the Department shall appear and testify
before the Procurement Policy Board and produce information
requested by the Procurement Policy Board.
    (c) At least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written progress report on the South Suburban Airport
project. The report shall include the status of any
public-private agreements or other contracting and any ongoing
or completed studies. The report shall be delivered to the
Procurement Policy Board and each county, municipality, and
metropolitan planning organization whose territory includes or
lies within 5 miles from the ultimate airport boundary.
 
    Section 2-80. Illinois Department of Transportation
publication requirements.
    (a) The Department shall publish a notice of the execution
of the public-private agreement on its website and in a
newspaper of general circulation within the county or counties
whose territory includes or lies within 5 miles of the ultimate
airport boundary.
    (b) The Department shall publish the full text of the
public-private agreement on its website.
 
    Section 2-85. Independent audits. If the public-private
agreement provides for the construction of all or part of the
South Suburban Airport project and the estimated construction
costs under the public-private agreement exceed $50,000,000,
the Department shall also require the contractor to pay the
costs for an independent audit of any and all cost estimates
associated with the public-private agreement as well as a
review of all public costs and potential liabilities to which
taxpayers could be exposed (including improvements to other
transportation facilities that may be needed as a result of the
public-private agreement, failure by the contractor to
reimburse the Department for services provided, and potential
risk and liability in the event of default on the agreement or
default on other types of financing). The independent audit
shall be conducted by an independent consultant selected by the
Department.
 
    Section 2-90. Establishment of planning boundaries.
    (a) The Department shall establish and provide public
notice of the approximate location of the inaugural airport
boundary and the ultimate airport boundary to inform the public
and prevent costly and conflicting development of the land
involved. The Department shall hold a public hearing when it
desires to formally provide public notice of the approximate
locations of the inaugural airport boundary and the ultimate
airport boundary. The hearing shall be held in Will County and
notice of the hearing shall be published in a newspaper or
newspapers of general circulation in Will County. Any
interested person or his representative shall be heard. The
Department shall evaluate the testimony given at the hearing.
The Department shall make a survey and prepare maps showing the
location of the inaugural airport boundary and the ultimate
airport boundary. The maps shall show the property lines and
owners of record of all land within the inaugural airport
boundary and the ultimate airport boundary and all other
pertinent information. Approval of the maps with any changes
resulting from the hearing shall be indicated in the record of
the hearing and a notice of the approval and a copy of the maps
shall be filed in the office of the recorder for Will County.
Public notice of the approval and filing shall be given in
newspapers of general circulation in Will County and shall be
served by registered mail within 60 days thereafter on all
owners of record of the land needed for future additions.
    (b) The Department may approve changes in the maps of the
inaugural airport boundary and the ultimate airport boundary
from time to time. The changes shall be filed and notice given
in the manner provided for the original maps. After the maps
are filed and notice thereof given to the owners of record of
the land needed for future additions, no one shall incur
development costs or place improvements in, upon, or under the
land involved, nor rebuild, alter, or add to any existing
structure without first giving 60 days' notice by registered
mail to the Department. This prohibition shall not apply to any
normal or emergency repairs to existing structures. The
Department has 45 days after receipt of that notice to inform
the owner of the Department's intention to acquire the land
involved. After informing the owner, the Department shall have
120 days to acquire the land by purchase or to initiate action
to acquire the land through the exercise of the right of
eminent domain. When the land is acquired by the State no
compensation shall be allowed for any construction,
alteration, or addition in violation of this Section unless the
Department has failed to acquire the land by purchase or has
abandoned an eminent domain proceeding initiated under the
provisions of this paragraph. Any land needed for modifications
to the inaugural airport boundary or the ultimate airport
boundary may be acquired at any time by the State. The time of
determination of the value of the property to be taken under
this Section for additions to the South Suburban Airport shall
be the date of the actual taking, if the property is acquired
by purchase, or the date of the filing of a complaint for
condemnation or as established by Section 10-5-60 of the
Eminent Domain Act, if the property is acquired through the
exercise of the right of eminent domain, rather than the date
when the maps of the inaugural airport boundary or the ultimate
airport boundary were filed of record.
 
    Section 2-95. Relocation. The Department has the power to
provide for the relocation of all persons and entities
displaced by the development of the South Suburban Airport.
Except when federal funds are available for the payment of
direct financial assistance to persons displaced by the
acquisition of their real property, the Department shall pay to
displaced persons reimbursement for their reasonable
relocation costs, determined in the same manner as under the
federal Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, and as implemented by rules
adopted under that Act.
 
    Section 2-100. Property acquisition.
    (a) In addition to any other powers the Department may have
under Sections 72 and 74 of the Illinois Aeronautics Act or any
other applicable law, and notwithstanding any other law to the
contrary, the Department may acquire by gift, grant, lease,
purchase, condemnation, or otherwise, any right, title, or
interest in any private property, property held in the name of
or belonging to any public body or unit of government, or any
property devoted to a public use, or any other rights or
easements, including any property, rights, or easements owned
by the State, units of local government, or school districts,
including forest preserve districts, for purposes related to
the South Suburban Airport. The powers given to the Department
under this Section include the power to acquire, by
condemnation or otherwise, any property used for cemetery
purposes within or outside of inaugural airport boundary, and
to require that the cemetery be removed to a different
location. The powers given to the Department under this Section
include the power to condemn or otherwise acquire, and to
convey, substitute property when the Department reasonably
determines that monetary compensation will not be sufficient or
practical just compensation for property acquired by the
Department in connection with the South Suburban Airport. The
acquisition of substitute property is declared to be for public
use. The powers given by this Section to the Department to
condemn property include the power of condemnation by
quick-take under Article 20 of the Eminent Domain Act. Property
acquired under this Section includes property that the
Department reasonably determines will be necessary for future
use, regardless of whether final regulatory or funding
decisions have been made; provided, however, that quick-take of
such property is subject to Section 25-5-45 of the Eminent
Domain Act.
    (b) With respect to any land acquired or sought to be
acquired by the Department by condemnation for the South
Suburban Airport pursuant to the powers granted by Section 72
or 74 of the Aeronautics Act, the phrase "within the limitation
of available appropriations" shall be deemed to require that
the Department have, on the date of filing the condemnation
complaint, unexpended appropriations equal to the amount of the
Department's most recent offer to purchase the property.
    (c) No property owned by the Department may be subject to
taking by condemnation or otherwise by any unit of local
government, any other airport authority, or by any agency,
instrumentality, or political subdivision of the State.
 
    Section 2-105. Rights of the Illinois Department of
Transportation upon expiration or termination of the
agreement.
    (a) Upon the termination or expiration of the
public-private agreement, including a termination for default,
the Department shall have the right to take over the South
Suburban Airport project and to succeed to all of the right,
title, and interest in the South Suburban Airport project,
subject to any liens on revenues previously granted by the
contractor to any person providing financing for the South
Suburban Airport project.
    (b) If the Department elects to take over the South
Suburban Airport project as provided in subsection (a) of this
Section, the Department may, without limitation, do the
following:
        (1) develop, finance, construct, maintain, or operate
    the project, including through another public-private
    agreement entered into in accordance with this Act; or
        (2) impose, collect, retain, and use user fees, if any,
    for the project.
    (c) If the Department elects to take over the South
Suburban Airport project as provided in subsection (a) of this
Section, the Department may, without limitation, use the
revenues, if any, for any lawful purpose, including to:
        (1) make payments to individuals or entities in
    connection with any financing of the South Suburban Airport
    project;
        (2) permit a contractor or third party to receive some
    or all of the revenues under the public-private agreement
    entered into under this Act;
        (3) pay development costs of the South Suburban
    Airport;
        (4) pay current operation costs of the South Suburban
    Airport; and
        (5) pay the contractor for any compensation or payment
    owing upon termination.
    (d) All real property acquired as a part of the South
Suburban Airport shall be held in the name of the State of
Illinois upon termination of the South Suburban Airport
project.
    (e) The full faith and credit of the State or any political
subdivision of the State or the Department is not pledged to
secure any financing of the contractor by the election to take
over the South Suburban Airport project. Assumption of
development, operation, or both, of the South Suburban Airport
project does not obligate the State or any political
subdivision of the State or the Department to pay any
obligation of the contractor.
 
    Section 2-110. Standards for the South Suburban Airport
project. The plans and specifications for the South Suburban
Airport project shall comply with the following:
            (1) the Department's standards for other projects
        of a similar nature or as otherwise provided in the
        public-private agreement;
            (2) the Professional Engineering Practice Act of
        1989, the Structural Engineering Practice Act of 1989,
        the Illinois Architecture Practice Act of 1989, and the
        Illinois Professional Land Surveyor Act of 1989; and
            (3) any other applicable State or federal
        standards.
 
    Section 2-115. Financial arrangements.
    (a) The Department may apply for, execute, or endorse
applications submitted by contractors and other third parties
to obtain federal, State, or local credit assistance to
develop, finance, maintain, or operate the South Suburban
Airport project.
    (b) The Department may take any action to obtain federal,
State, or local assistance for the South Suburban Airport
project that serves the public purpose of this Act and may
enter into any contracts required to receive the federal
assistance. The Department may determine that it serves the
public purpose of this Act for all or any portion of the costs
of the South Suburban Airport project to be paid, directly or
indirectly, from the proceeds of a grant or loan, line of
credit, or loan guarantee made by a local, State, or federal
government or any agency or instrumentality of a local, State,
or federal government. This assistance may include, but not be
limited to, federal credit assistance under the Transportation
Infrastructure Finance and Innovation Act (TIFIA).
    (c) The Department may agree to make grants or loans for
the development, financing, construction, management,
operation, or maintenance of the South Suburban Airport project
from time to time, from amounts received from the federal,
State, or local government or any agency or instrumentality of
the federal, State, or local government.
    (d) Any financing of the South Suburban Airport project may
be in the amounts and subject to the terms and conditions
contained in the public-private agreement.
    (e) For the purpose of financing the South Suburban Airport
project, the contractor and the Department may do the
following:
        (1) propose to use any and all revenues that may be
    available to them;
        (2) enter into grant agreements;
        (3) access any other funds available to the Department;
    and
        (4) accept grants from any public or private agency or
    entity.
    (f) For the purpose of financing the South Suburban Airport
project, public funds may be used, mixed, and aggregated with
funds provided by or on behalf of the contractor or other
private entities.
    (g) For the purpose of financing the South Suburban Airport
project, the Department is authorized to apply for, execute, or
endorse applications for an allocation of tax-exempt bond
financing authorization provided by Section 142(m) of the
United States Internal Revenue Code, as well as financing
available under any other federal law or program.
    (h) Any bonds, debt, other securities, or other financing
issued or incurred by the contractor for the purposes of this
Act shall not be deemed to constitute a debt of the State or
any political subdivision of the State or a pledge of the faith
and credit of the State or any political subdivision of the
State.
 
    Section 2-120. Labor.
    (a) The public-private agreement shall require the
contractor to enter into a project labor agreement.
    (b) The public-private agreement shall require all
construction contractors to comply with the requirements of
Section 30-22 of the Illinois Procurement Code as they apply to
responsible bidders and to present satisfactory evidence of
that compliance to the Department, unless the South Suburban
Airport project is federally funded and the application of
those requirements would jeopardize the receipt or use of
federal funds in support of the South Suburban Airport project.
 
    Section 2-125. Law enforcement.
    (a) All law enforcement officers of the State and of each
affected local jurisdiction have the same powers and
jurisdiction within the boundaries of the South Suburban
Airport as they have in their respective areas of jurisdiction.
    (b) Law enforcement officers shall have access to the South
Suburban Airport at any time for the purpose of exercising the
law enforcement officers' powers and jurisdiction.
 
    Section 2-130. Term of agreement; reversion of property to
the Department.
    (a) The Department shall terminate the contractor's
authority and duties under the public-private agreement on the
date set forth in the public-private agreement.
    (b) Upon termination of the public-private agreement, the
authority and duties of the contractor under this Act cease,
except for those duties and obligations that extend beyond the
termination, as set forth in the public-private agreement, and
all interests in the South Suburban Airport shall revert to the
Department.
 
    Section 2-135. Additional powers of the Department with
respect to the South Suburban Airport.
    (a) The Department may exercise any powers provided under
this Act in participation or cooperation with any governmental
entity and enter into any contracts to facilitate that
participation or cooperation. The Department shall cooperate
with other governmental entities under this Act.
    (b) The Department may make and enter into all contracts
and agreements necessary or incidental to the performance of
the Department's duties and the execution of the Department's
powers under this Act. Except as otherwise required by law,
these contracts or agreements are not subject to any approvals
other than the approval of the Department, Governor, or federal
agencies and may contain any terms that are considered
reasonable by the Department and not in conflict with any
provisions of this Act or other statutes, rules, or laws.
    (c) The Department may pay the costs incurred under the
public-private agreement entered into under this Act from any
funds available to the Department for the purpose of the South
Suburban Airport under this Act or any other statute.
    (d) The Department and other State agencies shall not take
any action that would impair the public-private agreement
entered into under this Act, except as provided by law.
    (e) The Department may enter into an agreement between and
among the contractor, the Department, and the Department of
State Police concerning the provision of law enforcement
assistance with respect to the South Suburban Airport under
this Act.
    (f) The Department is authorized to enter into arrangements
with the Illinois State Police related to costs incurred in
providing law enforcement assistance under this Act.
 
    Section 2-140. Prohibited local action; home rule. A unit
of local government, including a home rule unit, may not take
any action that would have the effect of impairing the
development, construction management operation, or maintenance
of the South Suburban Airport pursuant to the public-private
agreement authorized under this Act. This Section is a denial
and limitation of home rule powers and functions under
subsection (h) of Section 6 of Article VII of the Illinois
Constitution.
 
    Section 2-145. Powers liberally construed. The powers
conferred by this Act shall be liberally construed in order to
accomplish their purposes and shall be in addition and
supplemental to the powers conferred to the Department by any
other law. If any other law or rule is inconsistent with this
Act, this Act is controlling as to the authority of the
Department and any public-private agreement entered into under
this Act.
 
    Section 2-150. Full and complete authority. This Act
contains full and complete authority for (i) agreements and
leases with private entities to carry out the activities
described in this Act and (ii) the Department to take any and
all actions authorized by this Act. Notwithstanding any
provision of any other law to the contrary, no procedure,
proceedings, publications, notices, consents, approvals,
orders, or acts by the Department or any other State or local
agency or official are required to enter into an agreement or
lease.
 
    Section 2-155. Prior actions. Nothing in this Act shall be
deemed to invalidate any actions previously taken or commenced
by the Department prior to the adoption of this Act that relate
to the development of the South Suburban Airport or any
acquisition of property related thereto.
 
ARTICLE 3.
BROWNFIELDS REDEVELOPMENT AND INTERMODAL PROMOTION ACT

 
    Section 3-1. Short title. This Article may be cited as the
Brownfields Redevelopment and Intermodal Promotion Act.
References in this Article to "this Act" mean this Article.
 
    Section 3-5. Findings. The General Assembly has determined
that it is in the interest of the State of Illinois to
facilitate remediation and productive re-use of brownfield
sites located within specified areas and communities in
Illinois; to capitalize on current trends in international
trade routes by encouraging the redevelopment of brownfield
sites located near existing freight assets into scattered site
logistics parks and related facilities and businesses; and
furthermore that it is in the interest of the State to
encourage the hiring of minority and other historically
disadvantaged individuals in new businesses or facilities
developed with State assistance, and especially to encourage
the hiring of individuals who reside in high-unemployment
communities where such businesses or facilities are developed.
 
    Section 3-10. Definitions. As used in this Act:
    "Affected Municipality" means a municipality whose
boundaries are partially or completely within the Brownfields
Redevelopment Zone and where an Eligible Project will take
place.
    "Developer Agreement" means the agreement between an
eligible developer or eligible employer and the Department
under this Act.
    "Brownfield" means real property, the expansion,
redevelopment, or reuse of which may be complicated by the
presence or potential presence of a hazardous substance,
pollutant, or contaminant; for the purposes of this Act, a
property will be considered a brownfield if a prospective
purchaser seeking financing from a private financial
institution is required by that institution to conduct a Phase
I Environmental Site Assessment (ESA), as defined by ASTM
Standard E-1527-05 ("Standard Practice for Environmental Site
Assessments: Phase I Environmental Site Assessment Process").
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Director" means the Director of the Department of Commerce
and Economic Opportunity.
    "Eligible Developer" means an individual, partnership,
corporation, or other entity, currently and actively engaged in
the development of logistics, warehousing, distribution, or
light manufacturing facilities in North America, including the
Managing Partner of the South Suburban Brownfields
Redevelopment Zone, that owns, options, or otherwise directly
controls a parcel of land that is included in a South Suburban
Brownfields Redevelopment Zone Project.
    "Eligible employer" means an individual, partnership,
corporation, or other entity that employs or will employ
full-time employees at finished facilities on property that is
within the South Suburban Brownfields Redevelopment Zone.
    "Employment goal" means the goal of achieving a minimum
percentage of labor hours to be performed by employees who are
a member of a minority group and who reside in one of the
municipalities containing property that is part of the South
Suburban Brownfields Redevelopment Zone.
    "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 is a full-time employee if employed in the service
of the eligible employer 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.
    "Eligible Project" means those projects described in
Section 3-35 of this Act.
    "Incremental income tax" means the total amount withheld
from the compensation of new employees under Article 7 of the
Illinois Income Tax Act arising from employment by an eligible
employer.
    "Infrastructure" means roads and streets, bridges,
sidewalks, street lights, water and sewer line extensions or
improvements, storm water drainage and retention facilities,
gas and electric utility line extensions or improvements, and
rail improvements including signalization and siding
construction or repair, on publicly owned land or other public
improvements that are essential to the development of a
Redevelopment Zone Project.
    "Intermodal" means a type of international freight system
that permits transshipping among sea, highway, rail and air
modes of transportation through use of ANSI/International
Organization for Standardization containers, line haul assets,
and handling equipment.
    "Intermodal terminal" means an integrated facility where
trailers and containers are transferred between intermodal
railcars and highway carriers, including domestic and
international container shipments; or an integrated facility
where dry or liquid bulk and packaged commodities are
transferred between conventional railroad freight cars and
highway carriers.
    "Managing Partner" means a representative of Cook County
appointed by the President of the Board of Commissioners of
Cook County or a duly created instrumentality of the County
which enters into an agreement with the Department as described
in subsection (c) of Section 3-30 of this Act regarding the
overall management and use of Increment Funds and which is
authorized by the County to undertake, or to enter into
Development agreements with third parties to undertake,
activities necessary for the redevelopment of parcels
designated under this Act as part of a South Suburban
Brownfields Redevelopment Zone. For the purposes of this
definition, a "duly created instrumentality of the county" is a
company that:
        (1) is licensed to conduct business in the State of
    Illinois;
        (2) has (i) executed industrial developments of the
    type described as "eligible projects" in Section 3-35 and
    duly met all of its financial obligations entailed in those
    projects and (ii) managed each of the types of tasks
    described in Section 3-45 of this Act as "eligible
    activities", performing those activities with results that
    met or exceeded the objectives of the project, or otherwise
    possesses the business experience described in this item
    (2);
        (3) is selected through a competitive Request for
    Proposals process conducted according to rules and
    standards generally applicable to the selection of
    professional service contractors by the government of Cook
    County.
    "Minority" means a person who is a citizen or lawful
permanent resident of the United States and who is:
        (i) African American, meaning a person whose origins
    are in any of the Black racial groups of Africa, and who
    has historically and consistently identified himself or
    herself as being such a person;
        (ii) Hispanic American or Latino American, meaning a
    person whose origins are in Mexico, Central or South
    America, or any of the Spanish speaking islands of the
    Caribbean (for example Cuba and Puerto Rico), regardless of
    race, and who has historically and consistently identified
    himself or herself as being such a person;
        (iii) Asian or Pacific Islander American, meaning a
    person whose origins are in any of the original peoples of
    the Far East, Southeast Asia, the islands of the Pacific or
    the Northern Marianas, or the Indian Subcontinent, and who
    has historically and consistently identified himself or
    herself as being such a person; or
        (iv) Native American, meaning a person having origins
    in any of the original peoples of North America, and who
    maintain tribal affiliation or demonstrate at least
    one-quarter descent from such groups, and who has
    historically and consistently identified himself or
    herself as being such a person.
    "New employee" means a full-time employee first employed by
an eligible employer for a project that is the subject of an
agreement between the Managing Partner and an eligible
developer or eligible employer and who is hired after the
eligible developer enters into the agreement, but does not
include:
        (1) an employee of the eligible employer who performs a
    job that (i) existed for at least 6 months before the
    employee was hired and (ii) was previously performed by
    another employee;
        (2) an employee of the eligible employer who was
    previously employed in Illinois by a related member of the
    eligible employer and whose employment was shifted to the
    eligible employer after the eligible employer entered into
    the agreement; or
        (3) 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 an indirect ownership
    interest of at least 5% in the profits, capital, or value
    of the eligible employer.
    Notwithstanding item (2) of this definition, an employee
may be considered a new employee under the agreement if the
employee performs a job that was previously performed by an
employee who was: (i) treated under the agreement as a new
employee and (ii) promoted by the eligible employer to another
job.
    "Professional Employer Organization" means an employee
leasing company, as defined in Section 206.1(A)(2) of the
Unemployment Insurance Act.
    "Related member" means a person or entity that, with
respect to the eligible employer 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 eligible
    employer's outstanding stock;
        (2) a partnership, estate, or 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
    eligible employer;
        (3) a corporation, and any party related to the
    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 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 eligible employer; or
        (5) a person to or from whom there is 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 definition,
    20% shall be substituted for 5% wherever 5% appears in
    Section 1563(e) of the Internal Revenue Code.
    "South Suburban Brownfields Advisory Council" or "Advisory
Council" means a body comprised of representatives of Affected
Municipalities, along with experts appointed by the President
of the Cook County Board of Commissioners and the Governor of
Illinois, created to guide development within the South
Suburban Brownfields Redevelopment Zone.
    "South Suburban Brownfields Redevelopment Zone Project" or
"Project" means an Eligible Project, as described in Section
3-35, to coordinate the redevelopment and re-use of industrial
sites within the South Suburban Brownfields Redevelopment Zone
in southern Cook County.
    "South Suburban Brownfields Redevelopment Zone",
"Brownfields Redevelopment Zone" or "Zone" means the area fully
encompassing all properties, acreage, and structures,
including sites that conform to the Environmental Protection
Agency definition of Brownfield Industrial Sites, that are
zoned for industrial uses by the applicable local zoning agency
and which are located within the following South Suburban Cook
County municipalities that surround the Canadian National and
Union Pacific intermodal freight terminals in Harvey and
Dolton, Illinois respectively: Dixmoor, Dolton, East
Hazelcrest, Harvey, Hazelcrest, Homewood, Markham, Phoenix,
Posen, Riverdale, South Holland and Thornton. The South
Suburban Brownfields Advisory Council shall advise the
Managing Partner in regard to the selection of Projects. The
composition of the Advisory Council is determined as set forth
in subsection (a) of Section 3-30 of this Act.
 
    Section 3-15. South Suburban Brownfields Redevelopment
Zone Fund. The South Suburban Brownfields Redevelopment Zone
Fund is created as a special fund in the State treasury. Upon
certification of the Department of Revenue following review of
the amounts contained in the quarter-annual report required
under paragraph 4 of Section 3-50 of this Act and subject to
the limits set forth in Section 3-25 of this Act, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the South Suburban
Brownfields Redevelopment Fund an amount equal to the
incremental income tax for the previous month attributable to
new employees at finished facilities on property that was
redeveloped as part of the South Suburban Brownfields
Redevelopment Zone. These revenues may be used to pay the
Managing Partner for its administrative expenses pursuant to
Section 3-45 of this Act or to reimburse Eligible Developers or
Eligible Employers for the cost of the activities detailed
under Section 3-45 of this Act for Projects being undertaken
within the South Suburban Brownfields Redevelopment Zone.
 
    Section 3-20. South Suburban Brownfields Redevelopment
Fund; eligible projects. In State fiscal years 2015 through
2021, all moneys in the South Suburban Brownfields
Redevelopment Zone Fund shall be held solely to fund eligible
projects undertaken pursuant to the provisions of Section 3-35
of this Act and performed either directly by Cook County
through a development agreement with the Department, by an
entity designated by Cook County through a development
agreement with the Department to perform specific tasks, or by
an Eligible Developer or an Eligible Employer through a
development agreement. All Eligible Projects are subject to
review and approval by the Managing Partner and by the
Department. The life span of the Fund may be extended past 2026
by law.
 
    Section 3-25. Limitation on amounts for eligible projects.
The total amount of tax increment to be transferred to the
South Suburban Increment Fund shall not exceed $3,000,000 in
each State fiscal year. Any increment generated in a given
State fiscal year in excess of $3,000,000 shall be retained by
the State. Any revenues in the South Suburban Brownfields
Redevelopment Fund not used in a given fiscal year may be
rolled over into subsequent fiscal years. Use of the Fund to
pay or reimburse eligible expenses shall not preclude the
receipt of benefits from any Enterprise Zone, Tax Increment
Finance District, property tax abatement program, or other
business development program of a federal, State, or local
economic development program that may be available to the
project, and any brownfield site included in an agreement with
an eligible developer or eligible employer shall remain fully
eligible for all State and Federal tax incentives and grants
specifically related to brownfield remediation.
 
    Section 3-30. Managing Partner; Advisory Council;
responsibilities.
    (a) The Managing Partner shall report its recommendations
to the Advisory Council. The Advisory Council consists of two
members appointed by the Governor of the State of Illinois, two
members appointed by the President of the Cook County Board of
Commissioners and five members selected by the Affected
Municipalities to represent them. All members shall serve for a
term of 3 years. Upon expiration of each member's term, a
successor shall be appointed for a term of 3 years. Vacancies
on the Advisory Council shall be filled in the same manner as
the original appointments and any members so appointed shall
serve during the remainder of the term for which the vacancy
occurred. The appointments shall be made within 90 days of the
effective date of this Act. Five members shall constitute a
quorum. The Council shall elect a Chairperson amongst its
members by simple majority vote. Members shall serve without
compensation and accurate minutes shall be kept of all meetings
of the Advisory Council. The Advisory Council shall meet no
less frequently than quarterly and a meeting may be called by
the Chairperson or any four members of the Board. The
relationship between the Managing Partner and the Advisory
Council shall be set forth in an agreement among the parties.
    (b) The Managing Partner is responsible for ensuring that,
in consultation with the Advisory Board, the acreage designated
as part of the Zone is redeveloped to simultaneously maximize
the following:
        (1) Protection and improvement of the natural
    environment and the remediation of brownfield industrial
    property within the Brownfield Redevelopment Zone.
        (2) Restoration of industrially zoned land to its best
    and highest use, defined here as the highest possible
    number of new jobs in logistics or manufacturing operations
    and the highest levels of new business revenues.
        (3) Employment of local low and moderate income
    residents of the Zone and minority residents of the Zone
    and contracting with local minority-owned firms, to the
    extent consistent with Cook County policies and existing
    law.
    (c) In order to fulfill the responsibilities set forth in
subsection (b) of this Section, the Managing Partner has the
following powers and duties, which shall collectively comprise
its program administration tasks:
        (1) Create, gain approval from the Director for, and
    regularly update, a master plan for the redevelopment of
    properties and the use of the Fund, for review by the
    Advisory Board and the Director, including the following
    elements:
            (A) An explanation of how the features of the
        master plan allow the Managing Partner to fulfill the
        broad responsibility outlined in this Section.
            (B) The tasks that the Managing Partner will
        undertake, directly or through assistance in the
        negotiation of development agreements with eligible
        developers or eligible employers, to acquire,
        assemble, remediate, prepare for development,
        redevelop, or market parcels that are part of the Zone.
            (C) The criteria by which the Managing Partner will
        evaluate and select from among potential eligible
        projects to carry out its basic responsibilities as
        outlined in this Section, including criteria that will
        fulfill the following programmatic goals: (i) at least
        30% of labor hours must be performed by members of
        minority groups who reside in the municipalities where
        the Zone operates, and (ii) at least 20% of the dollar
        value of contracts and subcontracts must be held by
        minority-owned firms that are based in the
        municipalities where the Zone operates.
            (D) Methods the Managing Partner employed to
        receive and incorporate input on the master plan from a
        broad range of residents and stakeholders within the
        municipalities where the Zone operates, and methods it
        will employ to publicize the master plan so that it is
        constantly available for public review.
            (E) Documentation of the master plan's consistency
        with the applicable metropolitan planning
        organization's current regional comprehensive plan and
        regional Transportation Improvement Plan (TIP), and
        with the current State Transportation Improvement Plan
        (STIP).
        (2) Develop and maintain a current database or set of
    databases with detailed information including:
            (A) All industrially zoned real estate properties
        that are part of the Zone, including information
        concerning each property's ownership; current or
        delinquent tax status; proximity to major elements of
        freight infrastructure; status as a potential or
        designated brownfield; and any other information to
        support the marketing and redevelopment of properties
        that are part of the Zone.
            (B) All major elements of infrastructure that
        serve the properties that are part of the Zone,
        including the capacity and state of repair of rail
        lines and spurs, roadways, water, sewage, and power
        systems.
            (C) Names of minority-owned contracting firms that
        are based in municipalities containing property that
        is included in the Zone and wish to be hired by
        eligible developers or eligible employers, including
        the qualifications and contact information for these
        contractors.
            (D) Names of individuals who are residents of
        municipalities containing property that is part of the
        Zone and are members of a minority group, who wish to
        be employed by eligible developers or eligible
        employers, including the qualifications and contact
        information for these residents.
        (3) Execute its master plan through a series of
    eligible activities as outlined in Section 3-45 of this
    Act, governed by agreements.
        (4) Evaluate project proposals to determine their
    appropriateness and priority for funding based on the
    evaluation criteria defined in the master plan.
        (5) Negotiate and monitor agreements with Affected
    Municipalities, eligible developers and eligible
    employers.
        (6) Maintain records of activities and financial
    transactions including regular reports to the Department
    and an annual certified public audit.
        (7) Publish and make publicly available an annual
    report detailing local minority hiring and contracting
    that has resulted from the use of revenues in the Fund, to
    include the following: (A) the total number of labor hours
    performed by new employees who work at finished facilities
    located on property that is part of the Zone and who (i)
    are members of a minority group, and (ii) reside in one of
    the municipalities containing property that is part of the
    Zone; (B) the total number of labor hours performed by all
    new employees who work at finished facilities located on
    property that is part of the Zone; (C) the total dollar
    value of contracted or subcontracted services reimbursed
    with revenues from the Fund and that were performed by
    firms that are (i) minority-owned, and (ii) based in one of
    the municipalities containing property that is part of the
    Zone; (D) the total dollar value of contracted or
    subcontracted services reimbursed with revenues from the
    Fund; and (E) an explanation of concrete steps that will be
    taken if these values do not meet the programmatic goals
    that (i) at least 30% of labor hours must be performed by
    members of local minority groups, and (ii) at least 20% of
    the dollar value of contracts and subcontracts must be held
    by local minority-owned firms.
        (8) Report to the Director quarterly on the progress of
    executing the master plan and eligible activities.
    (d) The Department shall manage and allocate all South
Suburban Brownfields Redevelopment Fund revenues subject to
the Director's finding that funds are being used to execute the
master plan for redevelopment of properties that are part of
the Zone.
    The Managing Partner may, at its discretion, contract with
an entity of its choosing to support these program
administration tasks.
 
    Section 3-35. Eligible projects. Funds may be used only for
projects that are necessary for the establishment of a facility
classified under the current edition of the Urban Land
Institute's "Guide to Classifying Industrial Property" in one
of the following primary categories: warehouse distribution,
manufacturing (light or metal fabrication), or freight
forwarding; where the secondary categories under warehouse
distribution include regional, bulk, and rack-supported
warehouses as well as both heavy and refrigerated distribution
facilities; and where the secondary categories under
manufacturing include parts assembly or packaging plants, food
processing plants, and metal working plants that fashion
complete products or components of machinery, transportation
equipment, appliances, or construction elements and where the
secondary category under freight forwarding includes truck
terminals. Projects must adhere to applicable local and
regional zoning regulations. Projects may consist of new
construction or expansion of existing facilities so long as the
expansion results in the creation of new jobs. Projects must
consist of a set of activities undertaken as part of an
agreement to bring back into productive use a brownfield
property that is part of the Zone, including activities defined
as eligible purposes of funds in Section 3-45 of this Act.
 
    Section 3-40. Prohibited projects. Funds shall not be used
to support projects that create the following types of
permanent facilities and structures:
    (i) any type or kind of processing, handling, or sorting
facility for any kind of municipal or private liquid or solid
waste;
    (ii) any type or kind of intermodal or multimodal transfer
station for any kind of municipal or private liquid or solid
waste; or
    (iii) container storage yards that are not part of a larger
facility whose primary function is the maintenance, repair, and
rebuilding of transportation equipment including intermodal
containers and trailers, container chassis, mechanical lift
equipment, hoisting tractors, and over-the-road tractors.
    Temporary or short-term processing or transfer facilities
specifically used as part of an approved environmental
remediation plan for a specific site or parcel under an
agreement are permitted.
 
    Section 3-45. Eligible activities. Funds held in the South
Suburban Brownfields Redevelopment Fund may be expended for the
following purposes:
        (1) Payment of costs undertaken directly by the
    Managing Partner or reimbursement of costs incurred by an
    eligible developer or eligible employer as part of the
    execution of an agreement, any of which services may be
    subcontracted out to third parties for the following
    activities:
            (A) environmental site assessments, site
        investigations, remediation action plans, and
        remediation of brownfield sites located on property
        where any portion of an eligible project is taking
        place;
            (B) land acquisition and site assembly, site
        development plans, and demolition of derelict or
        outdated structures.
            (C) recruiting and training of individuals who are
        both (i) members of a minority group, and (ii) residing
        in one of the municipalities containing property that
        is part of the Zone, for employment in logistics or
        light manufacturing, such as through pre-employment
        services, pre-apprenticeship training, apprenticeship
        training, and skills training; expenditures for these
        recruiting or training activities shall not exceed 20%
        of the total dollars transferred to the South Suburban
        Increment Fund in any fiscal year or 15% of the total
        dollars transferred to this Fund during the entire
        period of the Fund's existence.
        (2) Payment of the costs of repairing or upgrading
    public infrastructure on publicly owned land within the
    Zone, including rights of way, provided such
    infrastructure is on public property that is either
    included within the Brownfields Redevelopment Zone or
    which is essential to the development of a Project.
    In agreements with for-profit eligible developers and
employers governing redevelopment of privately held land,
reimbursements must first and foremost prioritize the
activities described in item (A).
        (3) Program administration costs. The Managing Partner
    may request up to a total of 15% of amounts in the Fund
    over the course of the fiscal year to support its
    responsibilities in that fiscal year or in prior years as
    detailed in Section 3-30 of this Act. The Managing Partner
    must find additional funds for any program administration
    costs not covered by the 15%. Subject to the Department's
    approval, the Managing Partner may impose a reasonable fee
    upon eligible developers and eligible employers who submit
    proposals, for purposes of processing these applications
    and performing such due diligence as may be necessary to
    assess overall feasibility of the proposed projects and
    their consistency with the development objectives of this
    Act and the Zone Master Plan as discussed in Section 3-30
    of this Act. Those fees may not exceed 2% of the dollar
    amount requested from the Fund for the proposed project,
    and the Managing Partner may use these fees to support
    program administration. The income to the Managing Partner
    generated by those fees shall be counted as part of the 15%
    of total transfers to the Fund permitted for the Managing
    Partner's compensation.
 
    Section 3-50. Agreements with Eligible Developers and
Affected Municipalities. Prior to the expenditure of any
amounts from the Fund (except for administration costs of the
Managing Partner which may be requested periodically), the
Department and the Affected Municipality shall enter into an
agreement which has been recommended by the Managing Partner
with an Eligible Developer or Eligible Employer who is seeking
reimbursement under this Act. The agreement must contain all of
the following:
        (1) A detailed description of the project that is the
    subject of the agreement, including the location of the
    project, the expected number of jobs to be created by the
    project, and a list of the costs incurred or to be incurred
    by the eligible developer or employer for eligible
    activities, excluding any amounts that are to be funded
    through other public sources.
        (2) A requirement that the eligible developer or
    eligible employer maintain operations at the project
    location, stated as a minimum number of years not to exceed
    10 years.
        (3) A specific method for determining the number of new
    employees attributable to the project.
        (4) A requirement that the eligible developer or
    eligible employer report on a quarterly basis to the
    Managing Partner, the Department, and the Department of
    Revenue the number of new employees and the incremental
    income tax withheld in connection with the new employees.
        (5) A provision authorizing the Department to verify
    with the Department of Revenue the amounts reported under
    paragraph (4) and to report this information to the
    Managing Partner.
        (6) A provision authorizing the Department of Revenue
    to audit the information reported under paragraph (4).
        (7) A plan for how the eligible developer or eligible
    employer will encourage local low and moderate income and
    minority hiring and minority contracting, including
    specific employment and contracting goals; plans for
    recruiting, training, and retaining local minority
    employees; plans for identifying and soliciting bids from
    local minority-owned firms for contracted or subcontracted
    services; a list of two or more community organizations
    that it plans to work with to achieve those goals and
    plans; and a specific method for determining and reporting
    on the fulfillment of local minority and low and moderate
    income hiring and minority contracting goals.
        (8) A commitment from the eligible developer or
    eligible employer to work with the City-County Office of
    Workforce Employment and to consider referrals of trained
    workers from such Office on a timely and non-discriminatory
    basis.
        (9) Documentation that any road improvements that are
    part of the agreement are consistent with the current
    regional Transportation Improvement Plan (TIP) and the
    State Transportation Improvement Plan (STIP).
        (10) Evidence of approval of the Eligible Project by
    the Affected Municipality or Municipalities following such
    public hearings and public notice as may be required by
    Illinois law in regard to such Eligible Projects.
 
    Section 3-55. Rules. The Department and the Department of
Revenue may promulgate rules necessary to implement this Act.
 
ARTICLE 4.
SOUTH SUBURBAN AIRPORT AMENDATORY PROVISIONS

 
    Section 4-5. The Department of Transportation Law of the
Civil Administrative Code of Illinois is amended by changing
Section 2705-220 as follows:
 
    (20 ILCS 2705/2705-220)
    Sec. 2705-220. Public private partnerships for
transportation. The Department may exercise all powers granted
to it under the Public Private Agreements for the Illiana
Expressway Act and the Public-Private Agreements for the South
Suburban Airport Act.
(Source: P.A. 96-913, eff. 6-9-10.)
 
    Section 4-10. The Archaeological and Paleontological
Resources Protection Act is amended by adding Section 1.75 as
follows:
 
    (20 ILCS 3435/1.75 new)
    Sec. 1.75. South Suburban Airport. The Illinois Department
of Transportation, and any person acting on its behalf under a
public-private agreement entered into in accordance with the
Public-Private Agreements for the South Suburban Airport Act,
is exempt from the permit requirements of this Act, provided
that the Illinois Department of Transportation, or any such
person, takes reasonable steps to comply with the provisions of
this Act so long as compliance does not interfere with the
design, development, operation, or maintenance of the South
Suburban Airport or the exercise of their powers under the
Public-Private Agreements for the South Suburban Airport Act.
 
    Section 4-15. The Human Skeletal Remains Protection Act is
amended by adding Section 4.75 as follows:
 
    (20 ILCS 3440/4.75 new)
    Sec. 4.75. South Suburban Airport. The Illinois Department
of Transportation, and any person acting on its behalf under a
public-private agreement entered into in accordance with the
Public-Private Agreements for the South Suburban Airport Act,
is exempt from the permit requirements of this Act, provided
that the Illinois Department of Transportation, or any such
person, takes reasonable steps to comply with the provisions of
this Act so long as compliance does not interfere with the
design, development, operation, or maintenance of the South
Suburban Airport or the exercise of their powers under the
Public-Private Agreements for the South Suburban Airport Act.
 
    Section 4-20. The Illinois Finance Authority Act is amended
by adding Section 825-106.5 as follows:
 
    (20 ILCS 3501/825-106.5 new)
    Sec. 825-106.5. South Suburban Airport financing. For the
purpose of financing the South Suburban Airport under the
Public-Private Agreements for the South Suburban Airport Act,
the Authority is authorized to apply for an allocation of
tax-exempt bond financing authorization provided by Section
142(m) of the United States Internal Revenue Code, as well as
financing available under any other federal law or program.
 
    Section 4-25. The State Finance Act is amended by adding
Section 5.826 as follows:
 
    (30 ILCS 105/5.826 new)
    Sec. 5.826. The South Suburban Airport Improvement Fund.
 
    Section 4-30. The Public Construction Bond Act is amended
by changing Section 1.5 as follows:
 
    (30 ILCS 550/1.5)
    Sec. 1.5. Public private agreements. This Act applies to
any public private agreement entered into under the Public
Private Agreements for the Illiana Expressway Act or the
Public-Private Agreements for the South Suburban Airport Act.
(Source: P.A. 96-913, eff. 6-9-10.)
 
    Section 4-35. The Employment of Illinois Workers on Public
Works Act is amended by changing Section 2.5 as follows:
 
    (30 ILCS 570/2.5)
    Sec. 2.5. Public private agreements. This Act applies to
any public private agreement entered into under the Public
Private Agreements for the Illiana Expressway Act and the
Public-Private Agreements for the South Suburban Airport Act.
(Source: P.A. 96-913, eff. 6-9-10.)
 
    Section 4-40. The Business Enterprise for Minorities,
Females, and Persons with Disabilities Act is amended by
changing Section 2.5 as follows:
 
    (30 ILCS 575/2.5)
    (Section scheduled to be repealed on June 30, 2016)
    Sec. 2.5. Public private agreements. This Act applies to
any public private agreement entered into under the Public
Private Agreements for the Illiana Expressway Act and the
Public-Private Agreements for the South Suburban Airport Act.
(Source: P.A. 96-913, eff. 6-9-10.)
 
    Section 4-45. The Retailers' Occupation Tax Act is amended
by adding Section 1s as follows:
 
    (35 ILCS 120/1s new)
    Sec. 1s. Building materials exemption; South Suburban
Airport public-private partnership.
    (a) Each retailer that makes a qualified sale of building
materials to be incorporated into the South Suburban Airport as
defined in the Public-Private Agreements for the South Suburban
Airport Act, by remodeling, rehabilitating, or new
construction, may deduct receipts from those sales when
calculating the tax imposed by this Act.
    (b) As used in this Section, "qualified sale" means a sale
of building materials that will be incorporated into the South
Suburban Airport for which a Certificate of Eligibility for
Sales Tax Exemption has been issued by the Illinois Department
of Transportation, which has authority over the project.
    (c) To document the exemption allowed under this Section,
the retailer must obtain from the purchaser a copy of the
Certificate of Eligibility for Sales Tax Exemption issued by
the Illinois Department of Transportation, which has
jurisdiction over the project into which the building materials
will be incorporated is located. The Certificate of Eligibility
for Sales Tax Exemption must contain all of the following:
        (1) statement that the project identified in the
    Certificate meets all the requirements of the Illinois
    Department of Transportation;
        (2) the location or address of the project; and
        (3) the signature of the Secretary of the Illinois
    Department of Transportation, which has authority over the
    South Suburban Airport or the Secretary's delegate.
    (d) In addition to meeting the requirements of subsection
(c) of this Act, the retailer must obtain a certificate from
the purchaser that contains all of the following:
        (1) a statement that the building materials are being
    purchased for incorporation into the South Suburban
    Airport in accordance with the Public-Private Agreements
    for the South Suburban Airport Act;
        (2) the location or address of the project into which
    the building materials will be incorporated;
        (3) the name of the project;
        (4) a description of the building materials being
    purchased; and
        (5) the purchaser's signature and date of purchase.
    (e) This Section is exempt from Section 2-70 of this Act.
 
    Section 4-50. The Property Tax Code is amended by changing
Section 15-55 as follows:
 
    (35 ILCS 200/15-55)
    Sec. 15-55. State property.
    (a) All property belonging to the State of Illinois is
exempt. However, the State agency holding title shall file the
certificate of ownership and use required by Section 15-10,
together with a copy of any written lease or agreement, in
effect on March 30 of the assessment year, concerning parcels
of 1 acre or more, or an explanation of the terms of any oral
agreement under which the property is leased, subleased or
rented.
    The leased property shall be assessed to the lessee and the
taxes thereon extended and billed to the lessee, and collected
in the same manner as for property which is not exempt. The
lessee shall be liable for the taxes and no lien shall attach
to the property of the State.
    For the purposes of this Section, the word "leases"
includes licenses, franchises, operating agreements and other
arrangements under which private individuals, associations or
corporations are granted the right to use property of the
Illinois State Toll Highway Authority and includes all property
of the Authority used by others without regard to the size of
the leased parcel.
    (b) However, all property of every kind belonging to the
State of Illinois, which is or may hereafter be leased to the
Illinois Prairie Path Corporation, shall be exempt from all
assessments, taxation or collection, despite the making of any
such lease, if it is used for:
        (1) conservation, nature trail or any other
    charitable, scientific, educational or recreational
    purposes with public benefit, including the preserving and
    aiding in the preservation of natural areas, objects,
    flora, fauna or biotic communities;
        (2) the establishment of footpaths, trails and other
    protected areas;
        (3) the conservation of the proper use of natural
    resources or the promotion of the study of plant and animal
    communities and of other phases of ecology, natural history
    and conservation;
        (4) the promotion of education in the fields of nature,
    preservation and conservation; or
        (5) similar public recreational activities conducted
    by the Illinois Prairie Path Corporation.
    No lien shall attach to the property of the State. No tax
liability shall become the obligation of or be enforceable
against Illinois Prairie Path Corporation.
    (c) If the State sells the James R. Thompson Center or the
Elgin Mental Health Center and surrounding land located at 750
S. State Street, Elgin, Illinois, as provided in subdivision
(a)(2) of Section 7.4 of the State Property Control Act, to
another entity whose property is not exempt and immediately
thereafter enters into a leaseback or other agreement that
directly or indirectly gives the State a right to use, control,
and possess the property, that portion of the property leased
and occupied exclusively by the State shall remain exempt under
this Section. For the property to remain exempt under this
subsection (c), the State must retain an option to purchase the
property at a future date or, within the limitations period for
reverters, the property must revert back to the State.
    If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
        (1) the right of the State to use, control, and possess
    the property has been terminated; or
        (2) the State no longer has an option to purchase or
    otherwise acquire the property and there is no provision
    for a reverter of the property to the State within the
    limitations period for reverters.
    Pursuant to Sections 15-15 and 15-20 of this Code, the
State shall notify the chief county assessment officer of any
transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
15-20 of this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the
exemption, notwithstanding any other provision of this Code.
    (c-1) If the Illinois State Toll Highway Authority sells
the Illinois State Toll Highway Authority headquarters
building and surrounding land, located at 2700 Ogden Avenue,
Downers Grove, Illinois as provided in subdivision (a)(2) of
Section 7.5 of the State Property Control Act, to another
entity whose property is not exempt and immediately thereafter
enters into a leaseback or other agreement that directly or
indirectly gives the State or the Illinois State Toll Highway
Authority a right to use, control, and possess the property,
that portion of the property leased and occupied exclusively by
the State or the Authority shall remain exempt under this
Section. For the property to remain exempt under this
subsection (c), the Authority must retain an option to purchase
the property at a future date or, within the limitations period
for reverters, the property must revert back to the Authority.
    If the property has been conveyed as described in this
subsection (c), the property is no longer exempt pursuant to
this Section as of the date when:
        (1) the right of the State or the Authority to use,
    control, and possess the property has been terminated; or
        (2) the Authority no longer has an option to purchase
    or otherwise acquire the property and there is no provision
    for a reverter of the property to the Authority within the
    limitations period for reverters.
    Pursuant to Sections 15-15 and 15-20 of this Code, the
Authority shall notify the chief county assessment officer of
any transaction under this subsection (c). The chief county
assessment officer shall determine initial and continuing
compliance with the requirements of this Section for tax
exemption. Failure to notify the chief county assessment
officer of a transaction under this subsection (c) or to
otherwise comply with the requirements of Sections 15-15 and
15-20 of this Code shall, in the discretion of the chief county
assessment officer, constitute cause to terminate the
exemption, notwithstanding any other provision of this Code.
    (d) The fair market rent of each parcel of real property in
Will County owned by the State of Illinois for the purpose of
developing an airport by the Department of Transportation shall
include the assessed value of leasehold tax. The lessee of each
parcel of real property in Will County owned by the State of
Illinois for the purpose of developing an airport by the
Department of Transportation shall not be liable for the taxes
thereon. In order for the State to compensate taxing districts
for the leasehold tax under this paragraph the Will County
Supervisor of Assessments shall certify, in writing, to the
Department of Transportation, the amount of leasehold taxes
extended for the 2002 property tax year for each such exempt
parcel. The Department of Transportation shall pay to the Will
County Treasurer, from the Tax Recovery Fund, on or before July
1 of each year, the amount of leasehold taxes for each such
exempt parcel as certified by the Will County Supervisor of
Assessments. The tax compensation shall terminate on December
31, 2020. It is the duty of the Department of Transportation to
file with the Office of the Will County Supervisor of
Assessments an affidavit stating the termination date for
rental of each such parcel due to airport construction. The
affidavit shall include the property identification number for
each such parcel. In no instance shall tax compensation for
property owned by the State be deemed delinquent or bear
interest. In no instance shall a lien attach to the property of
the State. In no instance shall the State be required to pay
leasehold tax compensation in excess of the Tax Recovery Fund's
balance.
    (e) Public Act 81-1026 applies to all leases or agreements
entered into or renewed on or after September 24, 1979.
    (f) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the Illiana Expressway,
as defined in the Public Private Agreements for the Illiana
Expressway Act, and that is used for transportation purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.
    (g) Notwithstanding anything to the contrary in this
Section, all property owned by the State or the Illinois State
Toll Highway Authority that is defined as a transportation
project under the Public-Private Partnerships for
Transportation Act and that is used for transportation purposes
and that is leased for those purposes to another entity whose
property is not exempt shall remain exempt, and any leasehold
interest in the property shall not be subject to taxation under
Section 9-195 of this Act.
    (h) Notwithstanding anything to the contrary in this Code,
all property owned by the State that is the South Suburban
Airport, as defined in the Public-Private Agreements for the
South Suburban Airport Act, and that is used for airport
purposes and that is leased for those purposes to another
entity whose property is not exempt shall remain exempt, and
any leasehold interest in the property shall not be subject to
taxation under Section 9-195 of this Act.
(Source: P.A. 96-192, eff. 8-10-09; 96-913, eff. 6-9-10;
97-502, eff. 8-23-11.)
 
    Section 4-55. The Foreign Trade Zones Act is amended by
changing Section 1 as follows:
 
    (50 ILCS 40/1)  (from Ch. 24, par. 1361)
    Sec. 1. Each of the following units of State or local
government and public or private corporations shall have the
power to apply to proper authorities of the United States of
America pursuant to appropriate law for the right to establish,
operate, maintain and lease foreign trade zones and sub-zones
within its corporate limits or within limits established
pursuant to agreement with proper authorities of the United
States of America, as the case may be, and to establish,
operate, maintain and lease such foreign trade zones and
sub-zones:
    (a) The City of East St. Louis.
    (b) The Bi-State Authority, Lawrenceville - Vincennes
Airport.
    (c) The Waukegan Port district.
    (d) The Illinois Valley Regional Port District.
    (e) The Economic Development Council, Inc. located in the
area of the United States Customs Port of Entry for Peoria,
pursuant to authorization granted by the county boards in the
geographic area served by the proposed foreign trade zone.
    (f) The Greater Rockford Airport Authority.
    (f-5) The Illinois Department of Transportation, with
respect to the South Suburban Airport.
    (g) After the effective date of this amendatory Act of
1984, any county, city, village or town within the State or a
public or private corporation authorized or licensed to do
business in the State or any combination thereof may apply to
the Foreign Trade Zones Board, United States Department of
Commerce, for the right to establish, operate and maintain a
foreign trade zone and sub-zones. For the purposes of this
Section, such foreign trade zone or sub-zones may be
incorporated outside the corporate boundaries or be made up of
areas from adjoining counties or states.
    (h) No foreign trade zone may be established within 50
miles of an existing zone situated in a county with 3,000,000
or more inhabitants or within 35 miles of an existing zone
situated in a county with less than 3,000,000 inhabitants, such
zones having been created pursuant to this Act without the
permission of the authorities which established the existing
zone.
(Source: P.A. 85-471.)
 
    Section 4-60. The Downstate Forest Preserve District Act is
amended by changing Section 5e as follows:
 
    (70 ILCS 805/5e)  (from Ch. 96 1/2, par. 6308e)
    Sec. 5e. Property owned by a forest preserve district and
property in which a forest preserve district is the grantee of
a conservation easement or the grantee of a conservation right
as defined in Section 1(a) of the Real Property Conservation
Rights Act shall not be subject to eminent domain or
condemnation proceedings, except as otherwise provided in
Section 15 of the O'Hare Modernization Act and Section 2-100 of
the Public-Private Agreements for the South Suburban Airport
Act.
(Source: P.A. 95-111, eff. 8-13-07.)
 
    Section 4-65. The Vital Records Act is amended by changing
Section 21 as follows:
 
    (410 ILCS 535/21)  (from Ch. 111 1/2, par. 73-21)
    Sec. 21. (1) The funeral director or person acting as such
who first assumes custody of a dead body or fetus shall make a
written report to the registrar of the district in which death
occurred or in which the body or fetus was found within 24
hours after taking custody of the body or fetus on a form
prescribed and furnished by the State Registrar and in
accordance with the rules promulgated by the State Registrar.
Except as specified in paragraph (2) of this Section, the
written report shall serve as a permit to transport, bury or
entomb the body or fetus within this State, provided that the
funeral director or person acting as such shall certify that
the physician in charge of the patient's care for the illness
or condition which resulted in death has been contacted and has
affirmatively stated that he will sign the medical certificate
of death or the fetal death certificate. If a funeral director
fails to file written reports under this Section in a timely
manner, the local registrar may suspend the funeral director's
privilege of filing written reports by mail. In a county with a
population greater than 3,000,000, if a funeral director or
person acting as such inters or entombs a dead body without
having previously certified that the physician in charge of the
patient's care for the illness or condition that resulted in
death has been contacted and has affirmatively stated that he
or she will sign the medical certificate of death, then that
funeral director or person acting as such is responsible for
payment of the specific costs incurred by the county medical
examiner in disinterring and reinterring or reentombing the
dead body.
    (2) The written report as specified in paragraph (1) of
this Section shall not serve as a permit to:
        (a) Remove body or fetus from this State;
        (b) Cremate the body or fetus; or
        (c) Make disposal of any body or fetus in any manner
    when death is subject to the coroner's or medical
    examiner's investigation.
    (3) In accordance with the provisions of paragraph (2) of
this Section the funeral director or person acting as such who
first assumes custody of a dead body or fetus shall obtain a
permit for disposition of such dead human body prior to final
disposition or removal from the State of the body or fetus.
Such permit shall be issued by the registrar of the district
where death occurred or the body or fetus was found. No such
permit shall be issued until a properly completed certificate
of death has been filed with the registrar. The registrar shall
insure the issuance of a permit for disposition within an
expedited period of time to accommodate Sunday or holiday
burials of decedents whose time of death and religious tenets
or beliefs necessitate Sunday or holiday burials.
    (4) A permit which accompanies a dead body or fetus brought
into this State shall be authority for final disposition of the
body or fetus in this State, except in municipalities where
local ordinance requires the issuance of a local permit prior
to disposition.
    (5) A permit for disposition of a dead human body shall be
required prior to disinterment of a dead body or fetus, and
when the disinterred body is to be shipped by a common carrier.
Such permit shall be issued to a licensed funeral director or
person acting as such, upon proper application, by the local
registrar of the district in which disinterment is to be made.
In the case of disinterment, proper application shall include a
statement providing the name and address of any surviving
spouse of the deceased, or, if none, any surviving children of
the deceased, or if no surviving spouse or children, a parent,
brother, or sister of the deceased. The application shall
indicate whether the applicant is one of these parties and, if
so, whether the applicant is a surviving spouse or a surviving
child. Prior to the issuance of a permit for disinterment, the
local registrar shall, by certified mail, notify the surviving
spouse, unless he or she is the applicant, or if there is no
surviving spouse, all surviving children except for the
applicant, of the application for the permit. The person or
persons notified shall have 30 days from the mailing of the
notice to object by obtaining an injunction enjoining the
issuance of the permit. After the 30-day period has expired,
the local registrar shall issue the permit unless he or she has
been enjoined from doing so or there are other statutory
grounds for refusal. The notice to the spouse or surviving
children shall inform the person or persons being notified of
the right to seek an injunction within 30 days. Notwithstanding
any other provision of this subsection (5), a court may order
issuance of a permit for disinterment without notice or prior
to the expiration of the 30-day period where the petition is
made by an agency of any governmental unit and good cause is
shown for disinterment without notice or for the early order.
Nothing in this subsection (5) limits the authority of the City
of Chicago to acquire property or otherwise exercise its powers
under the O'Hare Modernization Act or requires that City, or
any person acting on behalf of that City, to obtain a permit
under this subsection (5) when exercising powers under the
O'Hare Modernization Act. The Illinois Department of
Transportation, and any person acting on its behalf under a
public-private agreement entered into in accordance with the
Public-Private Agreements for the South Suburban Airport Act,
is exempt from this subsection (5), provided that the Illinois
Department of Transportation, or any such person, takes
reasonable steps to comply with the provisions of this
subsection (5) so long as compliance does not interfere with
the design, development, operation, or maintenance of the South
Suburban Airport or the exercise of their powers under the
Public-Private Agreements for the South Suburban Airport Act.
(Source: P.A. 93-450, eff. 8-6-03.)
 
    Section 4-70. The Eminent Domain Act is amended by changing
Section 10-5-10 and by adding Sections 15-5-47 and 25-5-45 as
follows:
 
    (735 ILCS 30/10-5-10)  (was 735 ILCS 5/7-102)
    Sec. 10-5-10. Parties.
    (a) When the right (i) to take private property for public
use, without the owner's consent, (ii) to construct or maintain
any public road, railroad, plankroad, turnpike road, canal, or
other public work or improvement, or (iii) to damage property
not actually taken has been or is conferred by general law or
special charter upon any corporate or municipal authority,
public body, officer or agent, person, commissioner, or
corporation and when (i) the compensation to be paid for or in
respect of the property sought to be appropriated or damaged
for the purposes mentioned cannot be agreed upon by the parties
interested, (ii) the owner of the property is incapable of
consenting, (iii) the owner's name or residence is unknown, or
(iv) the owner is a nonresident of the State, then the party
authorized to take or damage the property so required, or to
construct, operate, and maintain any public road, railroad,
plankroad, turnpike road, canal, or other public work or
improvement, may apply to the circuit court of the county where
the property or any part of the property is situated, by filing
with the clerk a complaint. The complaint shall set forth, by
reference, (i) the complainant's authority in the premises,
(ii) the purpose for which the property is sought to be taken
or damaged, (iii) a description of the property, and (iv) the
names of all persons interested in the property as owners or
otherwise, as appearing of record, if known, or if not known
stating that fact; and shall pray the court to cause the
compensation to be paid to the owner to be assessed.
    (b) If it appears that any person not in being, upon coming
into being, is, or may become or may claim to be, entitled to
any interest in the property sought to be appropriated or
damaged, the court shall appoint some competent and
disinterested person as guardian ad litem to appear for and
represent that interest in the proceeding and to defend the
proceeding on behalf of the person not in being. Any judgment
entered in the proceeding shall be as effectual for all
purposes as though the person was in being and was a party to
the proceeding.
    (c) If the proceeding seeks to affect the property of
persons under guardianship, the guardians shall be made parties
defendant.
    (d) Any interested persons whose names are unknown may be
made parties defendant by the same descriptions and in the same
manner as provided in other civil cases.
    (e) When the property to be taken or damaged is a common
element of property subject to a declaration of condominium
ownership, pursuant to the Condominium Property Act, or of a
common interest community, the complaint shall name the unit
owners' association in lieu of naming the individual unit
owners and lienholders on individual units. Unit owners,
mortgagees, and other lienholders may intervene as parties
defendant. For the purposes of this Section, "common interest
community" has the same meaning as set forth in subsection (c)
of Section 9-102 of the Code of Civil Procedure. "Unit owners'
association" or "association" shall refer to both the
definition contained in Section 2 of the Condominium Property
Act and subsection (c) of Section 9-102 of the Code of Civil
Procedure.
    (f) When the property is sought to be taken or damaged by
the State for the purposes of establishing, operating, or
maintaining any State house or State charitable or other
institutions or improvements, the complaint shall be signed by
the Governor, or the Governor's designee, or as otherwise
provided by law.
    (g) No property, except property described in Section 3 of
the Sports Stadium Act, property to be acquired in furtherance
of actions under Article 11, Divisions 124, 126, 128, 130, 135,
136, and 139, of the Illinois Municipal Code, property to be
acquired in furtherance of actions under Section 3.1 of the
Intergovernmental Cooperation Act, property to be acquired
that is a water system or waterworks pursuant to the home rule
powers of a unit of local government, and property described as
Site B in Section 2 of the Metropolitan Pier and Exposition
Authority Act, and property that may be taken as provided in
the Public-Private Agreements for the South Suburban Airport
Act belonging to a railroad or other public utility subject to
the jurisdiction of the Illinois Commerce Commission may be
taken or damaged, pursuant to the provisions of this Act,
without the prior approval of the Illinois Commerce Commission.
(Source: P.A. 94-1055, eff. 1-1-07; incorporates P.A. 94-1007,
eff. 1-1-07; 95-331, eff. 8-21-07.)
 
    (735 ILCS 30/15-5-47 new)
    Sec. 15-5-47. Eminent domain powers in new Acts. The
following provisions of law may include express grants of the
power to acquire property by condemnation or eminent domain:
 
    Public-Private Agreements for the South Suburban Airport Act;
    Department of Transportation; for South Suburban Airport
    purposes.
 
    (735 ILCS 30/25-5-45 new)
    Sec. 25-5-45. Quick-take; South Suburban Airport.
Quick-take proceedings under Article 20 may be used by the
Department of Transportation for the purpose of development of
the South Suburban Airport within the boundaries designated on
the map filed with the Secretary of State on May 28, 2013 and
known as file number 98-GA-D01.
 
    Section 4-75. The Religious Freedom Restoration Act is
amended by changing Section 30 as follows:
 
    (775 ILCS 35/30)
    Sec. 30. O'Hare Modernization and South Suburban Airport.
Nothing in this Act limits the authority of the City of Chicago
to exercise its powers under the O'Hare Modernization Act, or
the Department of Transportation to exercise its powers under
the Public-Private Agreements for the South Suburban Airport
Act, for the purposes of relocation of cemeteries or the graves
located therein.
(Source: P.A. 93-450, eff. 8-6-03.)
 
ARTICLE 5.
AMENDATORY PROVISIONS

 
    Section 5-5. The Illinois Enterprise Zone Act is amended by
changing Sections 4.1, 5.2, 5.2.1, 5.3, 5.5, 8.1, and 8.2 as
follows:
 
    (20 ILCS 655/4.1)
    Sec. 4.1. Department recommendations.
    (a) For all applications that qualify under Section 4 of
this Act, the Department shall issue recommendations by
assigning a score to each applicant. The scores will be
determined by the Department, based on the extent to which an
applicant meets the criteria points under subsection (f) of
Section 4 of this Act. Scores will be determined using the
following scoring system:
        (1) Up to 50 points for the extent to which the
    applicant meets or exceeds the criteria in item (1) of
    subsection (f) of Section 4 of this Act, with points
    awarded according to the severity of the unemployment.
        (2) Up to 50 points for the extent to which the
    applicant meets or exceeds the criteria in item (2) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the number of jobs created and
    the aggregate amount of investment promised.
        (3) Up to 40 points for the extent to which the
    applicant meets or exceeds the criteria in item (3) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the severity of the unemployment
    rate according to the latest federal decennial census.
        (4) Up to 30 points for the extent to which the
    applicant meets or exceeds the criteria in item (4) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the severity of the
    environmental impact of the abandoned coal mine,
    brownfield, or federal disaster area.
        (5) Up to 50 points for the extent to which the
    applicant meets or exceeds the criteria in item (5) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the severity of the applicable
    facility closures or downsizing.
        (6) Up to 40 points for the extent to which the
    applicant meets or exceeds the criteria in item (6) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the severity and extent of the
    high floor vacancy or deterioration.
        (7) Up to 30 points for the extent to which the
    applicant meets or exceeds the criteria in item (7) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the extent to which the
    application addresses a plan to improve the State and local
    government tax base.
        (8) Up to 50 points for the extent to which the
    applicant meets or exceeds the criteria in item (8) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the existence of significant
    public infrastructure.
        (9) Up to 40 points for the extent to which the
    applicant meets or exceeds the criteria in item (9) of
    subsection (f) of Section 4 of this Act, with points
    awarded in accordance with the extent to which educational
    programs exist for career preparation.
        (10) Up to 40 points for the extent to which the
    applicant meets or exceeds the criteria in item (10) of
    subsection (f) of Section 4 of this Act, with points
    awarded according to the severity of the change in
    equalized assessed valuation.
    (b) After assigning a score for each of the individual
criteria using the point system as described in subsection (a),
the Department shall then take the sum of the scores for each
applicant and assign a final score. The Department shall then
submit this information to the Board, as required in subsection
(c) of Section 5.2, as its recommendation.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
    Sec. 5.2. Department Review of Enterprise Zone
Applications.
    (a) All applications which are to be considered and acted
upon by the Department during a calendar year must be received
by the Department no later than December 31 of the preceding
calendar year.
    Any application received after December 31 of any calendar
year shall be held by the Department for consideration and
action during the following calendar year.
    Each enterprise zone application shall include a specific
definition of the applicant's local labor market area.
    (a-5) The Department shall, no later than July March 31,
2013, develop an application process for an enterprise zone
application. The Department has emergency rulemaking authority
for the purpose of application development only until 12 9
months after the effective date of this amendatory Act of the
97th General Assembly.
    (b) Upon receipt of an application from a county or
municipality the Department shall review the application to
determine whether the designated area qualifies as an
enterprise zone under Section 4 of this Act.
    (c) No later than June 30, the Department shall notify all
applicant municipalities and counties of the Department's
determination of the qualification of their respective
designated enterprise zone areas, and shall send qualifying
applications, including the applicant's scores for items (1)
through (10) of subsection (a) of Section 4.1 and the
applicant's final score under that Section, to the Board for
the Board's consideration, along with supporting documentation
of the basis for the Department's decision.
    (d) If any such designated area is found to be qualified to
be an enterprise zone by the Department under subsection (c) of
this Section, the Department shall, no later than July 15, send
a letter of notification to each member of the General Assembly
whose legislative district or representative district contains
all or part of the designated area and publish a notice in at
least one newspaper of general circulation within the proposed
zone area to notify the general public of the application and
their opportunity to comment. Such notice shall include a
description of the area and a brief summary of the application
and shall indicate locations where the applicant has provided
copies of the application for public inspection. The notice
shall also indicate appropriate procedures for the filing of
written comments from zone residents, business, civic and other
organizations and property owners to the Department.
    (e) (Blank).
    (f) (Blank).
    (g) (Blank).
    (h) (Blank).
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/5.2.1)
    Sec. 5.2.1. Enterprise Zone Board.
    (a) An Enterprise Zone Board is hereby created within the
Department.
    (b) The Board shall consist of the following 5 members:
        (1) the Director of Commerce and Economic Opportunity,
    or his or her designee, who shall serve as chairperson;
        (2) the Director of Revenue, or his or her designee;
    and
        (3) three members appointed by the Governor, with the
    advice and consent of the Senate.
    Board members shall serve without compensation but may be
reimbursed for necessary expenses incurred in the performance
of their duties.
    (c) Each member appointed under item (3) of subsection (b)
shall have at least 5 years of experience in business, economic
development, or site location. Of the members appointed under
item (3) of subsection (b): one member shall reside in Cook
County; one member shall reside in DuPage, Kane, Lake, McHenry,
or Will County; and one member shall reside in a county other
than Cook, DuPage, Kane, Lake, McHenry, or Will.
    (d) Of the initial members appointed under item (3) of
subsection (b): one member shall serve for a term of 2 years;
one member shall serve for a term of 3 years; and one member
shall serve for a term of 4 years. Thereafter, all members
appointed under item (3) of subsection (b) shall serve for
terms of 4 years. Members appointed under item (3) of
subsection (b) may be reappointed. The Governor may remove a
member appointed under item (3) of subsection (b) for
incompetence, neglect of duty, or malfeasance in office.
    (e) By September 30, 2015 2014, and September 30 of each
year thereafter, all applications filed by December 31 of the
preceding calendar year and deemed qualified by the Department
shall be approved or denied by the Board. If such application
is not approved by September 30, the application shall be
considered denied. If an application is denied, the Board shall
inform the applicant of the specific reasons for the denial.
    (f) A majority of the Board will determine whether an
application is approved or denied. The Board is not, at any
time, required to designate an enterprise zone.
    (g) In determining which designated areas shall be approved
and certified as enterprise zones, the Board shall give
preference to the extent to which the area meets the criteria
set forth in Section 4.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
    Sec. 5.3. Certification of Enterprise Zones; Effective
date.
    (a) Certification of Board-approved designated Enterprise
Zones shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each Enterprise Zone upon approval by the
Board. The certificate shall be signed by the Director of the
Department, shall make specific reference to the designating
ordinance, which shall be attached thereto, and shall be filed
in the office of the Secretary of State. A certified copy of
the Enterprise Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of recorder of deeds
of the county in which the Enterprise Zone lies.
    (b) An Enterprise Zone shall be effective on January 1 of
the first calendar year after Department certification. The
Department shall transmit a copy of the certification to the
Department of Revenue, and to the designating municipality or
county.
    Upon certification of an Enterprise Zone, the terms and
provisions of the designating ordinance shall be in effect, and
may not be amended or repealed except in accordance with
Section 5.4.
    (c) With the exception of Enterprise Zones scheduled to
expire before December 31, 2018, an Enterprise Zone designated
before the effective date of this amendatory Act of the 97th
General Assembly shall be in effect for 30 calendar years, or
for a lesser number of years specified in the certified
designating ordinance. Notwithstanding the foregoing, any
Enterprise Zone in existence on the effective date of this
amendatory Act of the 98th General Assembly that has a term of
20 calendar years may be extended for an additional 10 calendar
years upon amendment of the designating ordinance by the
designating municipality or county and submission of the
ordinance to the Department. The amended ordinance must be
properly recorded in the Office of Recorder of Deeds of each
county in which the Enterprise Zone lies. Each Enterprise Zone
in existence on the effective date of this amendatory Act of
the 97th General Assembly that is scheduled to expire before
July 1, 2016 may will have its termination date extended until
July 1, 2016 upon amendment of the designating ordinance by the
designating municipality or county extending the termination
date to July 1, 2016 and submission of the ordinance to the
Department. The amended ordinance must be properly recorded in
the Office of Recorder of Deeds of each county in which the
Enterprise Zone lies. An Enterprise Zone designated on or after
the effective date of this amendatory Act of the 97th General
Assembly shall be in effect for a term of 15 calendar years, or
for a lesser number of years specified in the certified
designating ordinance. An enterprise zone designated on or
after the effective date of this amendatory Act of the 97th
General Assembly shall be subject to review by the Board after
13 years for an additional 10-year designation beginning on the
expiration date of the enterprise zone. During the review
process, the Board shall consider the costs incurred by the
State and units of local government as a result of tax benefits
received by the enterprise zone. Enterprise Zones shall
terminate at midnight of December 31 of the final calendar year
of the certified term, except as provided in Section 5.4.
    (d) No more than 12 Enterprise Zones may be certified by
the Department in calendar year 1984, no more than 12
Enterprise Zones may be certified by the Department in calendar
year 1985, no more than 13 Enterprise Zones may be certified by
the Department in calendar year 1986, no more than 15
Enterprise Zones may be certified by the Department in calendar
year 1987, and no more than 20 Enterprise Zones may be
certified by the Department in calendar year 1990. In other
calendar years, no more than 13 Enterprise Zones may be
certified by the Department. The Department may also designate
up to 8 additional Enterprise Zones outside the regular
application cycle if warranted by the extreme economic
circumstances as determined by the Department. The Department
may also designate one additional Enterprise Zone outside the
regular application cycle if an aircraft manufacturer agrees to
locate an aircraft manufacturing facility in the proposed
Enterprise Zone. Notwithstanding any other provision of this
Act, no more than 89 Enterprise Zones may be certified by the
Department for the 10 calendar years commencing with 1983. The
7 additional Enterprise Zones authorized by Public Act 86-15
shall not lie within municipalities or unincorporated areas of
counties that abut or are contiguous to Enterprise Zones
certified pursuant to this Section prior to June 30, 1989. The
7 additional Enterprise Zones (excluding the additional
Enterprise Zone which may be designated outside the regular
application cycle) authorized by Public Act 86-1030 shall not
lie within municipalities or unincorporated areas of counties
that abut or are contiguous to Enterprise Zones certified
pursuant to this Section prior to February 28, 1990. Beginning
in calendar year 2004 and until December 31, 2008, one
additional enterprise zone may be certified by the Department.
In any calendar year, the Department may not certify more than
3 Zones located within the same municipality. The Department
may certify Enterprise Zones in each of the 10 calendar years
commencing with 1983. The Department may not certify more than
a total of 18 Enterprise Zones located within the same county
(whether within municipalities or within unincorporated
territory) for the 10 calendar years commencing with 1983.
Thereafter, the Department may not certify any additional
Enterprise Zones, but may amend and rescind certifications of
existing Enterprise Zones in accordance with Section 5.4.
    (e) Notwithstanding any other provision of law, if (i) the
county board of any county in which a current military base is
located, in part or in whole, or in which a military base that
has been closed within 20 years of the effective date of this
amendatory Act of 1998 is located, in part or in whole, adopts
a designating ordinance in accordance with Section 5 of this
Act to designate the military base in that county as an
enterprise zone and (ii) the property otherwise meets the
qualifications for an enterprise zone as prescribed in Section
4 of this Act, then the Department may certify the designating
ordinance or ordinances, as the case may be.
    (f) Applications for Enterprise Zones that are scheduled to
expire in 2016, 2017, or 2018, including Enterprise Zones that
have been extended until 2016 by this amendatory Act of the
97th General Assembly, shall be submitted to the Department no
later than December 31, 2014 the date established by the
Department by rule pursuant to Section 5.2. At that time, the
Zone becomes available for either the previously designated
area or a different area to compete for designation. No
preference for designation as a Zone will be given to the
previously designated area.
    For Enterprise Zones that are scheduled to expire on or
after January 1, 2017 2019, an application process shall begin
2 years prior to the year in which the Zone expires. At that
time, the Zone becomes available for either the previously
designated area or a different area to compete for designation.
No preference for designation as a Zone will be given to the
previously designated area.
    Each Enterprise Zone that reapplies for certification but
does not receive a new certification shall expire on its
scheduled termination date.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
    Sec. 5.5. High Impact Business.
    (a) In order to respond to unique opportunities to assist
in the encouragement, development, growth and expansion of the
private sector through large scale investment and development
projects, the Department is authorized to receive and approve
applications for the designation of "High Impact Businesses" in
Illinois subject to the following conditions:
        (1) such applications may be submitted at any time
    during the year;
        (2) such business is not located, at the time of
    designation, in an enterprise zone designated pursuant to
    this Act;
        (3) the business intends to do one or more of the
    following:
            (A) the business intends to make a minimum
        investment of $12,000,000 which will be placed in
        service in qualified property and intends to create 500
        full-time equivalent jobs at a designated location in
        Illinois or intends to make a minimum investment of
        $30,000,000 which will be placed in service in
        qualified property and intends to retain 1,500
        full-time retained jobs at a designated location in
        Illinois. The business must certify in writing that the
        investments would not be placed in service in qualified
        property and the job creation or job retention would
        not occur without the tax credits and exemptions set
        forth in subsection (b) of this Section. The terms
        "placed in service" and "qualified property" have the
        same meanings as described in subsection (h) of Section
        201 of the Illinois Income Tax Act; or
            (B) the business intends to establish a new
        electric generating facility at a designated location
        in Illinois. "New electric generating facility", for
        purposes of this Section, means a newly-constructed
        electric generation plant or a newly-constructed
        generation capacity expansion at an existing electric
        generation plant, including the transmission lines and
        associated equipment that transfers electricity from
        points of supply to points of delivery, and for which
        such new foundation construction commenced not sooner
        than July 1, 2001. Such facility shall be designed to
        provide baseload electric generation and shall operate
        on a continuous basis throughout the year; and (i)
        shall have an aggregate rated generating capacity of at
        least 1,000 megawatts for all new units at one site if
        it uses natural gas as its primary fuel and foundation
        construction of the facility is commenced on or before
        December 31, 2004, or shall have an aggregate rated
        generating capacity of at least 400 megawatts for all
        new units at one site if it uses coal or gases derived
        from coal as its primary fuel and shall support the
        creation of at least 150 new Illinois coal mining jobs,
        or (ii) shall be funded through a federal Department of
        Energy grant before December 31, 2010 and shall support
        the creation of Illinois coal-mining jobs, or (iii)
        shall use coal gasification or integrated
        gasification-combined cycle units that generate
        electricity or chemicals, or both, and shall support
        the creation of Illinois coal-mining jobs. The
        business must certify in writing that the investments
        necessary to establish a new electric generating
        facility would not be placed in service and the job
        creation in the case of a coal-fueled plant would not
        occur without the tax credits and exemptions set forth
        in subsection (b-5) of this Section. The term "placed
        in service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (B-5) the business intends to establish a new
        gasification facility at a designated location in
        Illinois. As used in this Section, "new gasification
        facility" means a newly constructed coal gasification
        facility that generates chemical feedstocks or
        transportation fuels derived from coal (which may
        include, but are not limited to, methane, methanol, and
        nitrogen fertilizer), that supports the creation or
        retention of Illinois coal-mining jobs, and that
        qualifies for financial assistance from the Department
        before December 31, 2010. A new gasification facility
        does not include a pilot project located within
        Jefferson County or within a county adjacent to
        Jefferson County for synthetic natural gas from coal;
        or
            (C) the business intends to establish production
        operations at a new coal mine, re-establish production
        operations at a closed coal mine, or expand production
        at an existing coal mine at a designated location in
        Illinois not sooner than July 1, 2001; provided that
        the production operations result in the creation of 150
        new Illinois coal mining jobs as described in
        subdivision (a)(3)(B) of this Section, and further
        provided that the coal extracted from such mine is
        utilized as the predominant source for a new electric
        generating facility. The business must certify in
        writing that the investments necessary to establish a
        new, expanded, or reopened coal mine would not be
        placed in service and the job creation would not occur
        without the tax credits and exemptions set forth in
        subsection (b-5) of this Section. The term "placed in
        service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (D) the business intends to construct new
        transmission facilities or upgrade existing
        transmission facilities at designated locations in
        Illinois, for which construction commenced not sooner
        than July 1, 2001. For the purposes of this Section,
        "transmission facilities" means transmission lines
        with a voltage rating of 115 kilovolts or above,
        including associated equipment, that transfer
        electricity from points of supply to points of delivery
        and that transmit a majority of the electricity
        generated by a new electric generating facility
        designated as a High Impact Business in accordance with
        this Section. The business must certify in writing that
        the investments necessary to construct new
        transmission facilities or upgrade existing
        transmission facilities would not be placed in service
        without the tax credits and exemptions set forth in
        subsection (b-5) of this Section. The term "placed in
        service" has the same meaning as described in
        subsection (h) of Section 201 of the Illinois Income
        Tax Act; or
            (E) the business intends to establish a new wind
        power facility at a designated location in Illinois.
        For purposes of this Section, "new wind power facility"
        means a newly constructed electric generation
        facility, or a newly constructed expansion of an
        existing electric generation facility, placed in
        service on or after July 1, 2009, that generates
        electricity using wind energy devices, and such
        facility shall be deemed to include all associated
        transmission lines, substations, and other equipment
        related to the generation of electricity from wind
        energy devices. For purposes of this Section, "wind
        energy device" means any device, with a nameplate
        capacity of at least 0.5 megawatts, that is used in the
        process of converting kinetic energy from the wind to
        generate electricity; or and
            (F) the business commits to (i) make a minimum
        investment of $500,000,000, which will be placed in
        service in a qualified property, (ii) create 125
        full-time equivalent jobs at a designated location in
        Illinois, (iii) establish a fertilizer plant at a
        designated location in Illinois that complies with the
        set-back standards as described in Table 1: Initial
        Isolation and Protective Action Distances in the 2012
        Emergency Response Guidebook published by the United
        States Department of Transportation, (iv) pay a
        prevailing wage for employees at that location who are
        engaged in construction activities, and (v) secure an
        appropriate level of general liability insurance to
        protect against catastrophic failure of the fertilizer
        plant or any of its constituent systems; in addition,
        the business must agree to enter into a construction
        project labor agreement including provisions
        establishing wages, benefits, and other compensation
        for employees performing work under the project labor
        agreement at that location; for the purposes of this
        Section, "fertilizer plant" means a newly constructed
        or upgraded plant utilizing gas used in the production
        of anhydrous ammonia and downstream nitrogen
        fertilizer products for resale; for the purposes of
        this Section, "prevailing wage" means the hourly cash
        wages plus fringe benefits for training and
        apprenticeship programs approved by the U.S.
        Department of Labor, Bureau of Apprenticeship and
        Training, health and welfare, insurance, vacations and
        pensions paid generally, in the locality in which the
        work is being performed, to employees engaged in work
        of a similar character on public works; this paragraph
        (F) applies only to businesses that submit an
        application to the Department within 60 days after the
        effective date of this amendatory Act of the 98th
        General Assembly; and
        (4) no later than 90 days after an application is
    submitted, the Department shall notify the applicant of the
    Department's determination of the qualification of the
    proposed High Impact Business under this Section.
    (b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall qualify
for the credits and exemptions described in the following Acts:
Section 9-222 and Section 9-222.1A of the Public Utilities Act,
subsection (h) of Section 201 of the Illinois Income Tax Act,
and Section 1d of the Retailers' Occupation Tax Act; provided
that these credits and exemptions described in these Acts shall
not be authorized until the minimum investments set forth in
subdivision (a)(3)(A) of this Section have been placed in
service in qualified properties and, in the case of the
exemptions described in the Public Utilities Act and Section 1d
of the Retailers' Occupation Tax Act, the minimum full-time
equivalent jobs or full-time retained jobs set forth in
subdivision (a)(3)(A) of this Section have been created or
retained. Businesses designated as High Impact Businesses
under this Section shall also qualify for the exemption
described in Section 5l of the Retailers' Occupation Tax Act.
The credit provided in subsection (h) of Section 201 of the
Illinois Income Tax Act shall be applicable to investments in
qualified property as set forth in subdivision (a)(3)(A) of
this Section.
    (b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits and
exemptions described in the following Acts: Section 51 of the
Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
    (b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall qualify
for the exemptions described in Section 5l of the Retailers'
Occupation Tax Act; any business so designated as a High Impact
Business being, for purposes of this Section, a "Wind Energy
Business".
    (c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
    (d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Illinois businesses which
apply for designation as a High Impact Business must provide
the Department with the prospective plan for which 1,500
full-time retained jobs would be eliminated in the event that
the business is not designated.
    (e) Except for new wind power facilities contemplated under
subdivision (a)(3)(E) of this Section, new proposed facilities
which apply for designation as High Impact Business must
provide the Department with proof of alternative non-Illinois
sites which would receive the proposed investment and job
creation in the event that the business is not designated as a
High Impact Business.
    (f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in the event that a business is
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified property
the investments and created or retained the requisite number of
jobs without the benefits of the High Impact Business
designation, the Department shall be required to immediately
revoke the designation and notify the Director of the
Department of Revenue who shall begin proceedings to recover
all wrongfully exempted State taxes with interest. The business
shall also be ineligible for all State funded Department
programs for a period of 10 years.
    (g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage Act,
and the Department shall not revoke a High Impact Business
designation as a result of the failure to comply with any of
the terms or conditions of the Illinois Prevailing Wage Act in
relation to a new wind power facility or a Wind Energy
Business.
    (h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(Source: P.A. 96-28, eff. 7-1-09; 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/8.1)
    Sec. 8.1. Accounting.
    (a) Any business receiving tax incentives due to its
location within an Enterprise Zone or its designation as a High
Impact Business must annually report to the Department of
Revenue information reasonably required by the Department of
Revenue to enable the Department to verify and calculate the
total Enterprise Zone or High Impact Business tax benefits for
property taxes and taxes imposed by the State that are received
by the business, broken down by incentive category and
enterprise zone, if applicable, annually to the Department of
Revenue. Reports will be due no later than May 31 March 30 of
each year and shall cover the previous calendar year. The first
report will be for the 2012 calendar year and will be due no
later than May 31, 2013 March 30, 2013. Failure to report data
may shall result in ineligibility to receive incentives. To the
extent that a business receiving tax incentives has obtained an
Enterprise Zone Building Materials Exemption Certificate or a
High Impact Business Building Materials Exemption Certificate,
that business is required to report those building materials
exemption benefits only under subsection (a-5) of this Section.
No additional reporting for those building materials exemption
benefits is required under this subsection (a). The Department,
in consultation with the Department of Revenue, is authorized
to adopt rules governing ineligibility to receive exemptions,
including the length of ineligibility. Factors to be considered
in determining whether a business is ineligible shall include,
but are not limited to, prior compliance with the reporting
requirements, cooperation in discontinuing and correcting
violations, the extent of the violation, and whether the
violation was willful or inadvertent For the first offense, a
business shall be given 60 days to comply.
    (a-5) Each contractor or other entity that has been issued
an Enterprise Zone Building Materials Exemption Certificate
under Section 5k of the Retailers' Occupation Tax Act or a High
Impact Business Building Materials Exemption Certificate under
Section 5l of the Retailers' Occupation Tax Act shall annually
report to the Department of Revenue the total value of the
Enterprise Zone or High Impact Business building materials
exemption from State taxes. Reports shall contain information
reasonably required by the Department of Revenue to enable it
to verify and calculate the total tax benefits for taxes
imposed by the State, and shall be broken down by Enterprise
Zone. Reports are due no later than May 31 of each year and
shall cover the previous calendar year. The first report will
be for the 2013 calendar year and will be due no later than May
31, 2014. Failure to report data may result in revocation of
the Enterprise Zone Building Materials Exemption Certificate
or High Impact Business Building Materials Exemption
Certificate issued to the contractor or other entity.
    The Department of Revenue is authorized to adopt rules
governing revocation determinations, including the length of
revocation. Factors to be considered in revocations shall
include, but are not limited to, prior compliance with the
reporting requirements, cooperation in discontinuing and
correcting violations, and whether the certificate was used
unlawfully during the preceding year.
    (b) Each person required to file a return under the Gas
Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
Tax Act, or the Telecommunications Excise Tax Act shall file,
on or before May 31 March 30 of each year, a report with the
Department of Revenue, in the manner and form required by the
Department of Revenue, containing information reasonably
required by the Department of Revenue to enable the Department
of Revenue to calculate itemizing the amount of the deduction
for taxes imposed by the State that is taken under each Act,
respectively, due to the location of a business in an
Enterprise Zone or its designation as a High Impact Business.
The report shall be itemized by business and the business
location address.
    (c) Employers shall report their job creation, retention,
and capital investment numbers within the zone annually to the
administrator, which will compile the information and report it
to the Department of Revenue no later than May 31 March 30 of
each calendar year. High Impact Businesses shall report their
job creation, retention, and capital investment numbers
directly to the Department of Revenue no later than May 31
March 30 of each year.
    (d) The Department of Revenue will aggregate and collect
the tax, job, and capital investment data by Enterprise Zone
and High Impact Business and report this information, formatted
to exclude company-specific proprietary information, to the
Department and the Board by August May 1, 2013, and by August
May 1 of every calendar year thereafter. The Department will
include this information in their required reports under
Section 6 of this Act. The Board shall consider this
information during the reviews required under subsection (d-5)
of Section 5.4 of this Act and subsection (c) of Section 5.3 of
this Act.
    (e) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted
electronically.
    (f) The Department of Revenue shall have the authority to
adopt rules as are reasonable and necessary to implement the
provisions of this Section.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (20 ILCS 655/8.2)
    Sec. 8.2. Zone Administrator.
    (a) Each Zone Administrator designated under Section 8 of
this Act shall post a copy of the boundaries of the Enterprise
Zone on its official Internet website and shall provide an
electronic copy to the Department. The Department shall post
each copy of the boundaries of an Enterprise Zone that it
receives from a Zone Administrator on its official Internet
website.
    (b) The Zone Administrator shall collect and aggregate the
following information:
        (1) the estimated cost of each building project, broken
    down into labor and materials; and
        (2) within 60 days after the end of the project, the
    estimated cost of each building project, broken down into
    labor and materials.
    (c) By April 1 of each year, each Zone Administrator shall
file a copy of its fee schedule with the Department, and the
Department shall post the fee schedule on its website review
and approve the fee schedule. Zone Administrators shall charge
no more than 0.5% of the cost of building materials of the
project associated with the specific Enterprise Zone, with a
maximum fee of no more than $50,000.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    Section 5-10. The Corporate Accountability for Tax
Expenditures Act is amended by changing Section 25 as follows:
 
    (20 ILCS 715/25)
    Sec. 25. Recapture.
    (a) All development assistance agreements shall contain,
at a minimum, the following recapture provisions:
        (1) The recipient must (i) make the level of capital
    investment in the economic development project specified
    in the development assistance agreement; (ii) create or
    retain, or both, the requisite number of jobs, paying not
    less than specified wages for the created and retained
    jobs, within and for the duration of the time period
    specified in the legislation authorizing, or the
    administrative rules implementing, the development
    assistance programs and the development assistance
    agreement.
        (2) If the recipient fails to create or retain the
    requisite number of jobs within and for the time period
    specified, in the legislation authorizing, or the
    administrative rules implementing, the development
    assistance programs and the development assistance
    agreement, the recipient shall be deemed to no longer
    qualify for the State economic assistance and the
    applicable recapture provisions shall take effect.
        (3) If the recipient receives State economic
    assistance in the form of a High Impact Business
    designation pursuant to Section 5.5 of the Illinois
    Enterprise Zone Act and the business receives the benefit
    of the exemption authorized under Section 5l of the
    Retailers' Occupation Tax Act (for the sale of building
    materials incorporated into a High Impact Business
    location) or the utility tax exemption authorized under
    Section 9-222.1A of the Public Utilities Act and the
    recipient fails to create or retain the requisite number of
    jobs, as determined by the legislation authorizing the
    development assistance programs or the administrative
    rules implementing such legislation, or both, within the
    requisite period of time, the recipient shall be required
    to pay to the State the full amount of both the State tax
    exemption and the utility tax exemption that it received as
    a result of the High Impact Business designation.
        (4) If the recipient receives a grant or loan pursuant
    to the Large Business Development Program, the Business
    Development Public Infrastructure Program, or the
    Industrial Training Program and the recipient fails to
    create or retain the requisite number of jobs for the
    requisite time period, as provided in the legislation
    authorizing the development assistance programs or the
    administrative rules implementing such legislation, or
    both, or in the development assistance agreement, the
    recipient shall be required to repay to the State a pro
    rata amount of the grant; that amount shall reflect the
    percentage of the deficiency between the requisite number
    of jobs to be created or retained by the recipient and the
    actual number of such jobs in existence as of the date the
    Department determines the recipient is in breach of the job
    creation or retention covenants contained in the
    development assistance agreement. If the recipient of
    development assistance under the Large Business
    Development Program, the Business Development Public
    Infrastructure Program, or the Industrial Training Program
    ceases operations at the specific project site, during the
    5-year period commencing on the date of assistance, the
    recipient shall be required to repay the entire amount of
    the grant or to accelerate repayment of the loan back to
    the State.
        (5) If the recipient receives a tax credit under the
    Economic Development for a Growing Economy tax credit
    program, the development assistance agreement must provide
    that (i) if the number of new or retained employees falls
    below the requisite number set forth in the development
    assistance agreement, the allowance of the credit shall be
    automatically suspended until the number of new and
    retained employees equals or exceeds the requisite number
    in the development assistance agreement; (ii) if the
    recipient discontinues operations at the specific project
    site during the 5-year period after the beginning of the
    first tax year for which the Department issues a tax credit
    certificate, the recipient shall forfeit all credits taken
    by the recipient during such 5-year period; and (iii) in
    the event of a revocation or suspension of the credit, the
    Department shall contact the Director of Revenue to
    initiate proceedings against the recipient to recover
    wrongfully exempted Illinois State income taxes and the
    recipient shall promptly repay to the Department of Revenue
    any wrongfully exempted Illinois State income taxes. The
    forfeited amount of credits shall be deemed assessed on the
    date the Department contacts the Department of Revenue and
    the recipient shall promptly repay to the Department of
    Revenue any wrongfully exempted Illinois State income
    taxes.
    (b) The Director may elect to waive enforcement of any
contractual provision arising out of the development
assistance agreement required by this Act based on a finding
that the waiver is necessary to avert an imminent and
demonstrable hardship to the recipient that may result in such
recipient's insolvency or discharge of workers. If a waiver is
granted, the recipient must agree to a contractual
modification, including recapture provisions, to the
development assistance agreement. The existence of any waiver
granted pursuant to this subsection (b) (c), the date of the
granting of such waiver, and a brief summary of the reasons
supporting the granting of such waiver shall be disclosed
consistent with the provisions of Section 25 of this Act.
    (b-5) The Department shall post, on its website, (i) the
identity of each recipient from whom amounts were recaptured
under this Section on or after the effective date of this
amendatory Act of the 97th General Assembly, (ii) the date of
the recapture, (iii) a summary of the reasons supporting the
recapture, and (iv) the amount recaptured from those
recipients.
    (c) Beginning June 1, 2004, the Department shall annually
compile a report on the outcomes and effectiveness of recapture
provisions by program, including but not limited to: (i) the
total number of companies that receive development assistance
as defined in this Act; (ii) the total number of recipients in
violation of development agreements with the Department; (iii)
the total number of completed recapture efforts; (iv) the total
number of recapture efforts initiated; and (v) the number of
waivers granted. This report shall be disclosed consistent with
the provisions of Section 20 of this Act.
    (d) For the purposes of this Act, recapture provisions do
not include the Illinois Department of Transportation Economic
Development Program, any grants under the Industrial Training
Program that are not given as an incentive to a recipient
business organization, or any successor programs as described
in the term "development assistance" in Section 5 of this Act.
(Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; revised
10-10-12.)
 
    Section 5-20. The State Finance Act is amended by adding
Section 5.827 and 5.829 as follows:
 
    (30 ILCS 105/5.827 new)
    Sec. 5.827. The South Suburban Brownfields Redevelopment
Fund.
 
    (30 ILCS 105/5.829 new)
    Sec. 5.829. The Riverfront Development Fund.
 
    Section 5-25. The Project Labor Agreements Act is amended
by changing Section 10 as follows:
 
    (30 ILCS 571/10)
    Sec. 10. Public works projects. On a project-by-project
basis, a State department, agency, authority, board, or
instrumentality that is under the control of the Governor shall
include a project labor agreement on a public works project
when that department, agency, authority, board, or
instrumentality has determined that the agreement advances the
State's interests of cost, efficiency, quality, safety,
timeliness, skilled labor force, labor stability, or the
State's policy to advance minority-owned and women-owned
businesses and minority and female employment. For purposes of
this Act, any corrective action performed pursuant to Title XVI
of the Environmental Protection Act for which payment from the
Underground Storage Tank Fund is requested shall be considered
a public works project.
(Source: P.A. 97-199, eff. 7-27-11.)
 
    Section 5-30. The Illinois Income Tax Act is amended by
changing Section 201 as follows:
 
    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
    Sec. 201. Tax Imposed.
    (a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
    (b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
        (1) In the case of an individual, trust or estate, for
    taxable years ending prior to July 1, 1989, an amount equal
    to 2 1/2% of the taxpayer's net income for the taxable
    year.
        (2) In the case of an individual, trust or estate, for
    taxable years beginning prior to July 1, 1989 and ending
    after June 30, 1989, an amount equal to the sum of (i) 2
    1/2% of the taxpayer's net income for the period prior to
    July 1, 1989, as calculated under Section 202.3, and (ii)
    3% of the taxpayer's net income for the period after June
    30, 1989, as calculated under Section 202.3.
        (3) In the case of an individual, trust or estate, for
    taxable years beginning after June 30, 1989, and ending
    prior to January 1, 2011, an amount equal to 3% of the
    taxpayer's net income for the taxable year.
        (4) In the case of an individual, trust, or estate, for
    taxable years beginning prior to January 1, 2011, and
    ending after December 31, 2010, an amount equal to the sum
    of (i) 3% of the taxpayer's net income for the period prior
    to January 1, 2011, as calculated under Section 202.5, and
    (ii) 5% of the taxpayer's net income for the period after
    December 31, 2010, as calculated under Section 202.5.
        (5) In the case of an individual, trust, or estate, for
    taxable years beginning on or after January 1, 2011, and
    ending prior to January 1, 2015, an amount equal to 5% of
    the taxpayer's net income for the taxable year.
        (5.1) In the case of an individual, trust, or estate,
    for taxable years beginning prior to January 1, 2015, and
    ending after December 31, 2014, an amount equal to the sum
    of (i) 5% of the taxpayer's net income for the period prior
    to January 1, 2015, as calculated under Section 202.5, and
    (ii) 3.75% of the taxpayer's net income for the period
    after December 31, 2014, as calculated under Section 202.5.
        (5.2) In the case of an individual, trust, or estate,
    for taxable years beginning on or after January 1, 2015,
    and ending prior to January 1, 2025, an amount equal to
    3.75% of the taxpayer's net income for the taxable year.
        (5.3) In the case of an individual, trust, or estate,
    for taxable years beginning prior to January 1, 2025, and
    ending after December 31, 2024, an amount equal to the sum
    of (i) 3.75% of the taxpayer's net income for the period
    prior to January 1, 2025, as calculated under Section
    202.5, and (ii) 3.25% of the taxpayer's net income for the
    period after December 31, 2024, as calculated under Section
    202.5.
        (5.4) In the case of an individual, trust, or estate,
    for taxable years beginning on or after January 1, 2025, an
    amount equal to 3.25% of the taxpayer's net income for the
    taxable year.
        (6) In the case of a corporation, for taxable years
    ending prior to July 1, 1989, an amount equal to 4% of the
    taxpayer's net income for the taxable year.
        (7) In the case of a corporation, for taxable years
    beginning prior to July 1, 1989 and ending after June 30,
    1989, an amount equal to the sum of (i) 4% of the
    taxpayer's net income for the period prior to July 1, 1989,
    as calculated under Section 202.3, and (ii) 4.8% of the
    taxpayer's net income for the period after June 30, 1989,
    as calculated under Section 202.3.
        (8) In the case of a corporation, for taxable years
    beginning after June 30, 1989, and ending prior to January
    1, 2011, an amount equal to 4.8% of the taxpayer's net
    income for the taxable year.
        (9) In the case of a corporation, for taxable years
    beginning prior to January 1, 2011, and ending after
    December 31, 2010, an amount equal to the sum of (i) 4.8%
    of the taxpayer's net income for the period prior to
    January 1, 2011, as calculated under Section 202.5, and
    (ii) 7% of the taxpayer's net income for the period after
    December 31, 2010, as calculated under Section 202.5.
        (10) In the case of a corporation, for taxable years
    beginning on or after January 1, 2011, and ending prior to
    January 1, 2015, an amount equal to 7% of the taxpayer's
    net income for the taxable year.
        (11) In the case of a corporation, for taxable years
    beginning prior to January 1, 2015, and ending after
    December 31, 2014, an amount equal to the sum of (i) 7% of
    the taxpayer's net income for the period prior to January
    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
    of the taxpayer's net income for the period after December
    31, 2014, as calculated under Section 202.5.
        (12) In the case of a corporation, for taxable years
    beginning on or after January 1, 2015, and ending prior to
    January 1, 2025, an amount equal to 5.25% of the taxpayer's
    net income for the taxable year.
        (13) In the case of a corporation, for taxable years
    beginning prior to January 1, 2025, and ending after
    December 31, 2024, an amount equal to the sum of (i) 5.25%
    of the taxpayer's net income for the period prior to
    January 1, 2025, as calculated under Section 202.5, and
    (ii) 4.8% of the taxpayer's net income for the period after
    December 31, 2024, as calculated under Section 202.5.
        (14) In the case of a corporation, for taxable years
    beginning on or after January 1, 2025, an amount equal to
    4.8% of the taxpayer's net income for the taxable year.
    The rates under this subsection (b) are subject to the
provisions of Section 201.5.
    (c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
    (d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
    (d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
        (1) For the purposes of subsection (d-1), in no event
    shall the sum of the rates of tax imposed by subsections
    (b) and (d) be reduced below the rate at which the sum of:
            (A) the total amount of tax imposed on such foreign
        insurer under this Act for a taxable year, net of all
        credits allowed under this Act, plus
            (B) the privilege tax imposed by Section 409 of the
        Illinois Insurance Code, the fire insurance company
        tax imposed by Section 12 of the Fire Investigation
        Act, and the fire department taxes imposed under
        Section 11-10-1 of the Illinois Municipal Code,
    equals 1.25% for taxable years ending prior to December 31,
    2003, or 1.75% for taxable years ending on or after
    December 31, 2003, of the net taxable premiums written for
    the taxable year, as described by subsection (1) of Section
    409 of the Illinois Insurance Code. This paragraph will in
    no event increase the rates imposed under subsections (b)
    and (d).
        (2) Any reduction in the rates of tax imposed by this
    subsection shall be applied first against the rates imposed
    by subsection (b) and only after the tax imposed by
    subsection (a) net of all credits allowed under this
    Section other than the credit allowed under subsection (i)
    has been reduced to zero, against the rates imposed by
    subsection (d).
    This subsection (d-1) is exempt from the provisions of
Section 250.
    (e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
        (1) A taxpayer shall be allowed a credit equal to .5%
    of the basis of qualified property placed in service during
    the taxable year, provided such property is placed in
    service on or after July 1, 1984. There shall be allowed an
    additional credit equal to .5% of the basis of qualified
    property placed in service during the taxable year,
    provided such property is placed in service on or after
    July 1, 1986, and the taxpayer's base employment within
    Illinois has increased by 1% or more over the preceding
    year as determined by the taxpayer's employment records
    filed with the Illinois Department of Employment Security.
    Taxpayers who are new to Illinois shall be deemed to have
    met the 1% growth in base employment for the first year in
    which they file employment records with the Illinois
    Department of Employment Security. The provisions added to
    this Section by Public Act 85-1200 (and restored by Public
    Act 87-895) shall be construed as declaratory of existing
    law and not as a new enactment. If, in any year, the
    increase in base employment within Illinois over the
    preceding year is less than 1%, the additional credit shall
    be limited to that percentage times a fraction, the
    numerator of which is .5% and the denominator of which is
    1%, but shall not exceed .5%. The investment credit shall
    not be allowed to the extent that it would reduce a
    taxpayer's liability in any tax year below zero, nor may
    any credit for qualified property be allowed for any year
    other than the year in which the property was placed in
    service in Illinois. For tax years ending on or after
    December 31, 1987, and on or before December 31, 1988, 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 years if the taxpayer (i) makes investments
    which cause the creation of a minimum of 2,000 full-time
    equivalent jobs in Illinois, (ii) is located in an
    enterprise zone established pursuant to the Illinois
    Enterprise Zone Act and (iii) is certified by the
    Department of Commerce and Community Affairs (now
    Department of Commerce and Economic Opportunity) as
    complying with the requirements specified in clause (i) and
    (ii) by July 1, 1986. The Department of Commerce and
    Community Affairs (now Department of Commerce and Economic
    Opportunity) shall notify the Department of Revenue of all
    such certifications immediately. For tax years ending
    after December 31, 1988, 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 years. 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, earlier credit
    shall be applied first.
        (2) The term "qualified property" means property
    which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings and
        signs that are real property, but not including land or
        improvements to real property that are not a structural
        component of a building such as landscaping, sewer
        lines, local access roads, fencing, parking lots, and
        other appurtenances;
            (B) 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 subsection
        (e);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code;
            (D) is used in Illinois by a taxpayer who is
        primarily engaged in manufacturing, or in mining coal
        or fluorite, or in retailing, or was placed in service
        on or after July 1, 2006 in a River Edge Redevelopment
        Zone established pursuant to the River Edge
        Redevelopment Zone Act; and
            (E) has not previously been used in Illinois in
        such a manner and by such a person as would qualify for
        the credit provided by this subsection (e) or
        subsection (f).
        (3) For purposes of this subsection (e),
    "manufacturing" means the material staging and production
    of tangible personal property by procedures commonly
    regarded as manufacturing, processing, fabrication, or
    assembling which changes some existing material into new
    shapes, new qualities, or new combinations. For purposes of
    this subsection (e) the term "mining" shall have the same
    meaning as the term "mining" in Section 613(c) of the
    Internal Revenue Code. For purposes of this subsection (e),
    the term "retailing" means the sale of tangible personal
    property for use or consumption and not for resale, or
    services rendered in conjunction with the sale of tangible
    personal property for use or consumption and not for
    resale. For purposes of this subsection (e), "tangible
    personal property" has the same meaning as when that term
    is used in the Retailers' Occupation Tax Act, and, for
    taxable years ending after December 31, 2008, does not
    include the generation, transmission, or distribution of
    electricity.
        (4) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (5) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in Illinois by the taxpayer, the amount of such
    increase shall be deemed property placed in service on the
    date of such increase in basis.
        (6) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (7) 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 outside Illinois within 48
    months after being placed in service, the Personal Property
    Tax Replacement Income Tax 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 paragraph (7), 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.
        (8) Unless the investment credit is extended by law,
    the basis of qualified property shall not include costs
    incurred after December 31, 2018, except for costs incurred
    pursuant to a binding contract entered into on or before
    December 31, 2018.
        (9) Each taxable year ending before December 31, 2000,
    a partnership may elect to pass through to its partners the
    credits to which the partnership is entitled under this
    subsection (e) for the taxable year. A partner may use the
    credit allocated to him or her under this paragraph only
    against the tax imposed in subsections (c) and (d) of this
    Section. If the partnership makes that election, those
    credits shall be allocated among the partners in the
    partnership in accordance with the rules set forth in
    Section 704(b) of the Internal Revenue Code, and the rules
    promulgated under that Section, and the allocated amount of
    the credits shall be allowed to the partners for that
    taxable year. The partnership shall make this election on
    its Personal Property Tax Replacement Income Tax return for
    that taxable year. The election to pass through the credits
    shall be irrevocable.
        For taxable years ending on or after December 31, 2000,
    a partner that qualifies its partnership for a subtraction
    under subparagraph (I) of paragraph (2) of subsection (d)
    of Section 203 or a shareholder that qualifies a Subchapter
    S corporation for a subtraction under subparagraph (S) of
    paragraph (2) of subsection (b) of Section 203 shall be
    allowed a credit under this subsection (e) equal to its
    share of the credit earned under this subsection (e) during
    the taxable year by the partnership or Subchapter S
    corporation, 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. This paragraph is exempt from the provisions
    of Section 250.
    (f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
        (1) A taxpayer shall be allowed a credit against the
    tax imposed by subsections (a) and (b) of this Section for
    investment in qualified property which is placed in service
    in an Enterprise Zone created pursuant to the Illinois
    Enterprise Zone Act or, for property placed in service on
    or after July 1, 2006, a River Edge Redevelopment Zone
    established pursuant to the River Edge Redevelopment Zone
    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 subsection (f) 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 .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 in the Enterprise Zone or
    River Edge Redevelopment Zone 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 this Section
    to below zero. For tax years ending on or after December
    31, 1985, 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.
        (2) The term qualified property means property which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings;
            (B) 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 subsection
        (f);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code;
            (D) is used in the Enterprise Zone or River Edge
        Redevelopment Zone by the taxpayer; and
            (E) 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 subsection (f) or
        subsection (e).
        (3) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (4) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in the Enterprise Zone or River Edge
    Redevelopment Zone by the taxpayer, the amount of such
    increase shall be deemed property placed in service on the
    date of such increase in basis.
        (5) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (6) 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 outside the Enterprise Zone
    or River Edge Redevelopment Zone within 48 months after
    being placed in service, the tax imposed under subsections
    (a) and (b) of this Section 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 paragraph (6), 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.
        (7) There shall be allowed an additional credit equal
    to 0.5% of the basis of qualified property placed in
    service during the taxable year in a River Edge
    Redevelopment Zone, provided such property is placed in
    service on or after July 1, 2006, and the taxpayer's base
    employment within Illinois has increased by 1% or more over
    the preceding year as determined by the taxpayer's
    employment records filed with the Illinois Department of
    Employment Security. Taxpayers who are new to Illinois
    shall be deemed to have met the 1% growth in base
    employment for the first year in which they file employment
    records with the Illinois Department of Employment
    Security. If, in any year, the increase in base employment
    within Illinois over the preceding year is less than 1%,
    the additional credit shall be limited to that percentage
    times a fraction, the numerator of which is 0.5% and the
    denominator of which is 1%, but shall not exceed 0.5%.
    (g) (Blank). Jobs Tax Credit; River Edge Redevelopment Zone
and Foreign Trade Zone or Sub-Zone.
        (1) A taxpayer conducting a trade or business, for
    taxable years ending on or after December 31, 2006, in a
    River Edge Redevelopment Zone or conducting a trade or
    business in a federally designated Foreign Trade Zone or
    Sub-Zone shall be allowed a credit against the tax imposed
    by subsections (a) and (b) of this Section in the amount of
    $500 per eligible employee hired to work in the zone during
    the taxable year.
        (2) To qualify for the credit:
            (A) the taxpayer must hire 5 or more eligible
        employees to work in a River Edge Redevelopment Zone or
        federally designated Foreign Trade Zone or Sub-Zone
        during the taxable year;
            (B) the taxpayer's total employment within the
        River Edge Redevelopment Zone or federally designated
        Foreign Trade Zone or Sub-Zone must increase by 5 or
        more full-time employees beyond the total employed in
        that zone at the end of the previous tax year for which
        a jobs tax credit under this Section was taken, or
        beyond the total employed by the taxpayer as of
        December 31, 1985, whichever is later; and
            (C) the eligible employees must be employed 180
        consecutive days in order to be deemed hired for
        purposes of this subsection.
        (3) An "eligible employee" means an employee who is:
            (A) Certified by the Department of Commerce and
        Economic Opportunity as "eligible for services"
        pursuant to regulations promulgated in accordance with
        Title II of the Job Training Partnership Act, Training
        Services for the Disadvantaged or Title III of the Job
        Training Partnership Act, Employment and Training
        Assistance for Dislocated Workers Program.
            (B) Hired after the River Edge Redevelopment Zone
        or federally designated Foreign Trade Zone or Sub-Zone
        was designated or the trade or business was located in
        that zone, whichever is later.
            (C) Employed in the River Edge Redevelopment Zone
        or Foreign Trade Zone or Sub-Zone. An employee is
        employed in a federally designated Foreign Trade Zone
        or Sub-Zone if his services are rendered there or it is
        the base of operations for the services performed.
            (D) A full-time employee working 30 or more hours
        per week.
        (4) For tax years ending on or after December 31, 1985
    and prior to December 31, 1988, the credit shall be allowed
    for the tax year in which the eligible employees are hired.
    For tax years ending on or after December 31, 1988, the
    credit shall be allowed for the tax year immediately
    following the tax year in which the eligible employees are
    hired. 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, earlier
    credit shall be applied first.
        (5) The Department of Revenue shall promulgate such
    rules and regulations as may be deemed necessary to carry
    out the purposes of this subsection (g).
        (6) The credit shall be available for eligible
    employees hired on or after January 1, 1986.
    (h) Investment credit; High Impact Business.
        (1) Subject to subsections (b) and (b-5) of Section 5.5
    of the Illinois Enterprise Zone Act, a taxpayer shall be
    allowed a credit against the tax imposed by subsections (a)
    and (b) of this Section for investment in qualified
    property which is placed in service by a Department of
    Commerce and Economic Opportunity designated High Impact
    Business. The credit shall be .5% of the basis for such
    property. The credit shall not be available (i) until the
    minimum investments in qualified property set forth in
    subdivision (a)(3)(A) of Section 5.5 of the Illinois
    Enterprise Zone Act have been satisfied or (ii) until the
    time authorized in subsection (b-5) of the Illinois
    Enterprise Zone Act for entities designated as High Impact
    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
    Act, 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 this Section to below zero. The
    credit applicable to such investments shall be taken in the
    taxable year in which such investments have been completed.
    The credit for additional investments beyond the minimum
    investment by a designated high impact business authorized
    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
    Enterprise Zone Act 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 this Section to below zero. For tax years ending
    on or after December 31, 1987, 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.
        Changes made in this subdivision (h)(1) by Public Act
    88-670 restore changes made by Public Act 85-1182 and
    reflect existing law.
        (2) The term qualified property means property which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings;
            (B) 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 subsection
        (h);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code; and
            (D) is not eligible for the Enterprise Zone
        Investment Credit provided by subsection (f) of this
        Section.
        (3) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (4) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in a federally designated Foreign Trade Zone or
    Sub-Zone located in Illinois by the taxpayer, the amount of
    such increase shall be deemed property placed in service on
    the date of such increase in basis.
        (5) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (6) If during any taxable year ending on or before
    December 31, 1996, 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 outside Illinois within 48
    months after being placed in service, the tax imposed under
    subsections (a) and (b) of this Section 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 paragraph (6), 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.
        (7) Beginning with tax years ending after December 31,
    1996, if a taxpayer qualifies for the credit under this
    subsection (h) and thereby is granted a tax abatement and
    the taxpayer relocates its entire facility in violation of
    the explicit terms and length of the contract under Section
    18-183 of the Property Tax Code, the tax imposed under
    subsections (a) and (b) of this Section shall be increased
    for the taxable year in which the taxpayer relocated its
    facility by an amount equal to the amount of credit
    received by the taxpayer under this subsection (h).
    (i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
    Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
    If, during any taxable year ending on or after December 31,
1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such taxable
year to reduce the amount of credit claimed.
    (j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or semi-skilled
or skilled fields, which were deducted from gross income in the
computation of taxable income. The credit against the tax
imposed by subsections (a) and (b) shall be 1.6% of such
training expenses. 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 subsection (j) 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.
    Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
    (k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2016, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a) and
(b) of this Section for increasing research activities in this
State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. 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 subsection 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.
    For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
    Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
    If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
    No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
    (l) Environmental Remediation Tax Credit.
        (i) For tax years ending after December 31, 1997 and on
    or before December 31, 2001, a taxpayer shall be allowed a
    credit against the tax imposed by subsections (a) and (b)
    of this Section for certain amounts paid for unreimbursed
    eligible remediation costs, as specified in this
    subsection. For purposes of this Section, "unreimbursed
    eligible remediation costs" means costs approved by the
    Illinois Environmental Protection Agency ("Agency") under
    Section 58.14 of the Environmental Protection Act that were
    paid in performing environmental remediation at a site for
    which a No Further Remediation Letter was issued by the
    Agency and recorded under Section 58.10 of the
    Environmental Protection Act. The credit must be claimed
    for the taxable year in which Agency approval of the
    eligible remediation costs is granted. The credit is not
    available to any taxpayer if the taxpayer or any related
    party caused or contributed to, in any material respect, a
    release of regulated substances on, in, or under the site
    that was identified and addressed by the remedial action
    pursuant to the Site Remediation Program of the
    Environmental Protection Act. After the Pollution Control
    Board rules are adopted pursuant to the Illinois
    Administrative Procedure Act for the administration and
    enforcement of Section 58.9 of the Environmental
    Protection Act, determinations as to credit availability
    for purposes of this Section shall be made consistent with
    those rules. For purposes of this Section, "taxpayer"
    includes a person whose tax attributes the taxpayer has
    succeeded to under Section 381 of the Internal Revenue Code
    and "related party" includes the persons disallowed a
    deduction for losses by paragraphs (b), (c), and (f)(1) of
    Section 267 of the Internal Revenue Code by virtue of being
    a related taxpayer, as well as any of its partners. The
    credit allowed against the tax imposed by subsections (a)
    and (b) shall be equal to 25% of the unreimbursed eligible
    remediation costs in excess of $100,000 per site, except
    that the $100,000 threshold shall not apply to any site
    contained in an enterprise zone as determined by the
    Department of Commerce and Community Affairs (now
    Department of Commerce and Economic Opportunity). The
    total credit allowed shall not exceed $40,000 per year with
    a maximum total of $150,000 per site. For partners and
    shareholders of subchapter S corporations, there shall be
    allowed a credit under this subsection 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.
        (ii) A credit allowed under this subsection that is
    unused in the year the credit is earned may be carried
    forward to each of the 5 taxable years following the year
    for which the credit is first earned until it is used. The
    term "unused credit" does not include any amounts of
    unreimbursed eligible remediation costs in excess of the
    maximum credit per site authorized under paragraph (i).
    This credit shall be applied first to the earliest year for
    which there is a liability. If there is a credit under this
    subsection from more than one tax year that is available to
    offset a liability, the earliest credit arising under this
    subsection shall be applied first. A credit allowed under
    this subsection may be sold to a buyer as part of a sale of
    all or part of the remediation site for which the credit
    was granted. The purchaser of a remediation site and the
    tax credit shall succeed to the unused credit and remaining
    carry-forward period of the seller. To perfect the
    transfer, the assignor shall record the transfer in the
    chain of title for the site and provide written notice to
    the Director of the Illinois Department of Revenue of the
    assignor's intent to sell the remediation site and the
    amount of the tax credit to be transferred as a portion of
    the sale. In no event may a credit be transferred to any
    taxpayer if the taxpayer or a related party would not be
    eligible under the provisions of subsection (i).
        (iii) For purposes of this Section, the term "site"
    shall have the same meaning as under Section 58.2 of the
    Environmental Protection Act.
    (m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed $500. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. This subsection is exempt
from the provisions of Section 250 of this Act.
    For purposes of this subsection:
    "Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
    "Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
    "School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
    "Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
    (n) River Edge Redevelopment Zone site remediation tax
credit.
        (i) For tax years ending on or after December 31, 2006,
    a taxpayer shall be allowed a credit against the tax
    imposed by subsections (a) and (b) of this Section for
    certain amounts paid for unreimbursed eligible remediation
    costs, as specified in this subsection. For purposes of
    this Section, "unreimbursed eligible remediation costs"
    means costs approved by the Illinois Environmental
    Protection Agency ("Agency") under Section 58.14a of the
    Environmental Protection Act that were paid in performing
    environmental remediation at a site within a River Edge
    Redevelopment Zone for which a No Further Remediation
    Letter was issued by the Agency and recorded under Section
    58.10 of the Environmental Protection Act. The credit must
    be claimed for the taxable year in which Agency approval of
    the eligible remediation costs is granted. The credit is
    not available to any taxpayer if the taxpayer or any
    related party caused or contributed to, in any material
    respect, a release of regulated substances on, in, or under
    the site that was identified and addressed by the remedial
    action pursuant to the Site Remediation Program of the
    Environmental Protection Act. Determinations as to credit
    availability for purposes of this Section shall be made
    consistent with rules adopted by the Pollution Control
    Board pursuant to the Illinois Administrative Procedure
    Act for the administration and enforcement of Section 58.9
    of the Environmental Protection Act. For purposes of this
    Section, "taxpayer" includes a person whose tax attributes
    the taxpayer has succeeded to under Section 381 of the
    Internal Revenue Code and "related party" includes the
    persons disallowed a deduction for losses by paragraphs
    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
    Code by virtue of being a related taxpayer, as well as any
    of its partners. The credit allowed against the tax imposed
    by subsections (a) and (b) shall be equal to 25% of the
    unreimbursed eligible remediation costs in excess of
    $100,000 per site.
        (ii) A credit allowed under this subsection that is
    unused in the year the credit is earned may be carried
    forward to each of the 5 taxable years following the year
    for which the credit is first earned until it is used. This
    credit shall be applied first to the earliest year for
    which there is a liability. If there is a credit under this
    subsection from more than one tax year that is available to
    offset a liability, the earliest credit arising under this
    subsection shall be applied first. A credit allowed under
    this subsection may be sold to a buyer as part of a sale of
    all or part of the remediation site for which the credit
    was granted. The purchaser of a remediation site and the
    tax credit shall succeed to the unused credit and remaining
    carry-forward period of the seller. To perfect the
    transfer, the assignor shall record the transfer in the
    chain of title for the site and provide written notice to
    the Director of the Illinois Department of Revenue of the
    assignor's intent to sell the remediation site and the
    amount of the tax credit to be transferred as a portion of
    the sale. In no event may a credit be transferred to any
    taxpayer if the taxpayer or a related party would not be
    eligible under the provisions of subsection (i).
        (iii) For purposes of this Section, the term "site"
    shall have the same meaning as under Section 58.2 of the
    Environmental Protection Act.
(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
1-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
8-7-12.)
 
    Section 5-33. The Use Tax Act is amended by changing
Section 9 as follows:
 
    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. A retailer
need not remit that part of any tax collected by him to the
extent that he is required to remit and does remit the tax
imposed by the Retailers' Occupation Tax Act, with respect to
the sale of the same property.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
    Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
    If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle or trailer retailer for the purpose
of resale or (ii) a retailer of aircraft, watercraft, motor
vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 3-55 of this
Act, then that seller may report the transfer of all the
aircraft, watercraft, motor vehicles or trailers involved in
that transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
    The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
    Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act (CAA) Permit Fund under this Act
and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
97-333, eff. 8-12-11.)
 
    Section 5-35. The Service Use Tax Act is amended by
changing Section 9 as follows:
 
    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. A serviceman need
not remit that part of any tax collected by him to the extent
that he is required to pay and does pay the tax imposed by the
Service Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
    Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
    Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
    Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    All remaining moneys received by the Department pursuant to
this Act shall be paid into the General Revenue Fund of the
State Treasury.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
eff. 5-27-10.)
 
    Section 5-37. The Service Occupation Tax Act is amended by
changing Section 9 as follows:
 
    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
    Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request.
    Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
    Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in business as a serviceman in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month, including receipts
    from charge and time sales, but less all deductions allowed
    by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due;
        5-5. The signature of the taxpayer; and
        6. Such other reasonable information as the Department
    may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
    If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being
due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
    If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
    Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax on sales of food for human
consumption which is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks and food
which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in the
Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Remaining moneys received by the Department pursuant to
this Act shall be paid into the General Revenue Fund of the
State Treasury.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
eff. 5-27-10.)
 
    Section 5-40. The Retailers' Occupation Tax Act is amended
by changing Sections 2-54, 3, 5k, 5l, and 9 as follows:
 
    (35 ILCS 120/2-54)
    Sec. 2-54. Building materials exemption; River Edge
Redevelopment Zones.
    (a) Each retailer that makes a qualified sale of building
materials to be incorporated into real estate within a River
Edge Redevelopment Zone in accordance with the River Edge
Redevelopment Zone Act by remodeling, rehabilitating, or new
construction may deduct receipts from those sales when
calculating the tax imposed by this Act. For purposes of this
Section, "qualified sale" means a sale of building materials
that will be incorporated into real estate as part of an
industrial or commercial project for which a Certificate of
Eligibility for Sales Tax Exemption has been issued by the
corporate authorities of the municipality in which the building
project is located.
    (b) Before July 1, 2013, to To document the exemption
allowed under this Section, the retailer must obtain from the
purchaser a copy of the Certificate of Eligibility for Sales
Tax Exemption issued by the corporate authorities of the
municipality in which the real estate into which the building
materials will be incorporated is located. The Certificate of
Eligibility for Sales Tax Exemption must contain all of the
following:
        (1) A statement that the commercial or industrial
    project identified in the Certificate meets all the
    requirements of the jurisdiction in which the project is
    located.
        (2) The location or address of the building project.
        (3) The signature of the chief executive officer of the
    municipality in which the building project is located, or
    the chief executive officer's delegate.
    (c) Before July 1, 2013, in In addition, the retailer must
obtain a certificate from the purchaser that contains all of
the following:
        (1) A statement that the building materials are being
    purchased for incorporation into real estate located in a
    River Edge Redevelopment Zone included in a redevelopment
    project area in accordance with River Edge Redevelopment
    Zone Act.
        (2) The location or address of the real estate into
    which the building materials will be incorporated.
        (3) The name of the River Edge Redevelopment Zone in
    which that real estate is located.
        (4) A description of the building materials being
    purchased.
        (5) The purchaser's signature and date of purchase.
    (d) On and after July 1, 2013, to document the exemption
allowed under this Section the retailer must obtain from the
purchaser the purchaser's River Edge 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 Exemption Certificate issued
by the Department at the time of purchase.
    Upon request from the corporate authorities of the
municipality in which the building project is located, the
Department shall issue a River Edge Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the corporate authorities of the
municipality in which the building project is located. The
Department shall make the Exemption Certificates available to
the corporate authorities of the municipality in which the
building project is located and each construction contractor or
other entity. The request for River Edge Building Materials
Exemption Certificates from the corporate authorities of the
municipality in which the building project is located to the
Department must include the following information:
        (1) the name and address of the construction contractor
    or other entity;
        (2) the name and number of the River Edge Redevelopment
    Zone in which the building project is located;
        (3) the name and location or address of the building
    project in the River Edge Redevelopment Zone;
        (4) the estimated amount of the exemption for each
    construction contractor or other entity for which a request
    for Exemption Certificate is made, based on a stated
    estimated average tax rate and the percentage of the
    contract that consists of materials;
        (5) the period of time over which supplies for the
    project are expected to be purchased; and
        (6) 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 River Edge Building
Materials Exemption Certificates within 3 business days after
receipt of request from the corporate authorities of the
municipality in which the building project is located. 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 an 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 River Edge
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 River Edge Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue the Exemption Certificates
electronically. The River Edge 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 River Edge Redevelopment Zone in which
the building project is located, the project for which the
Exemption Certificate is issued, and the construction
contractor or other entity to whom the Exemption Certificate is
issued. The Exemption Certificate shall contain an expiration
date, which shall be no more than 2 years after the date of
issuance. At the request of the corporate authorities of the
municipality in which the building project is located, the
Department may renew an Exemption Certificate. After the
Department issues Exemption Certificates for a given River Edge
building project, the corporate authorities of the
municipality in which the building project is located may
notify the Department of additional construction contractors
or other entities eligible for a River Edge Building Materials
Exemption Certificate. Upon notification by the corporate
authorities of the municipality in which the building project
is located, and subject to the other provisions of this
subsection (d), the Department shall issue a River Edge
Building Materials Exemption Certificate to each additional
construction contractor or other entity identified by the
corporate authorities of the municipality in which the building
project is located. The corporate authorities of the
municipality in which the building project is located may
notify the Department to rescind a Building Materials Exemption
Certificate previously issued by the Department but that has
not yet expired. Upon notification by the corporate authorities
of the municipality in which the building project is located,
and subject to the other provisions of this subsection (d), the
Department shall issue the rescission of the River Edge
Building Materials Exemption Certificate to the construction
contractor or other entity identified by the corporate
authorities of the municipality in which the building project
is located and provide a copy to the corporate authorities of
the municipality in which the building project is located.
    If the Department of Revenue determines that a construction
contractor or other entity that was issued an Exemption
Certificate under this subsection (d) 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.
    Notwithstanding anything to the contrary in this Section,
for River Edge building projects already in existence and for
which construction contracts are already in place on July 1,
2013, the request for River Edge Building Materials Exemption
Certificates from the corporate authorities of the
municipality in which the building project is located to the
Department for these pre-existing construction contractors and
other entities must include the information required under
subsection (d), but not including the information listed in
items (4) and (5). For any new construction contract entered
into on or after July 1, 2013, however, all of the information
in this subsection (d) must be provided.
    (e) The provisions of this Section are exempt from Section
2-70.
(Source: P.A. 94-1021, eff. 7-12-06.)
 
    (35 ILCS 120/3)  (from Ch. 120, par. 442)
    Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
        1. The name of the seller;
        2. His residence address and the address of his
    principal place of business and the address of the
    principal place of business (if that is a different
    address) from which he engages in the business of selling
    tangible personal property at retail in this State;
        3. Total amount of receipts received by him during the
    preceding calendar month or quarter, as the case may be,
    from sales of tangible personal property, and from services
    furnished, by him during such preceding calendar month or
    quarter;
        4. Total amount received by him during the preceding
    calendar month or quarter on charge and time sales of
    tangible personal property, and from services furnished,
    by him prior to the month or quarter for which the return
    is filed;
        5. Deductions allowed by law;
        6. Gross receipts which were received by him during the
    preceding calendar month or quarter and upon the basis of
    which the tax is imposed;
        7. The amount of credit provided in Section 2d of this
    Act;
        8. The amount of tax due;
        9. The signature of the taxpayer; and
        10. Such other reasonable information as the
    Department may require.
    If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
    Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
    Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
    The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
        1. The name of the seller;
        2. The address of the principal place of business from
    which he engages in the business of selling tangible
    personal property at retail in this State;
        3. The total amount of taxable receipts received by him
    during the preceding calendar month from sales of tangible
    personal property by him during such preceding calendar
    month, including receipts from charge and time sales, but
    less all deductions allowed by law;
        4. The amount of credit provided in Section 2d of this
    Act;
        5. The amount of tax due; and
        6. Such other reasonable information as the Department
    may require.
    Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
    Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
    If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
    Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
    Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
    Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
    All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
    The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
    Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
    If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
    If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
    Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
    Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
    Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
    In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor
vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle retailer or trailer retailer for the
purpose of resale or (ii) a retailer of aircraft, watercraft,
motor vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 2-5 of this
Act, then that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that
transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
    Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
    The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
    The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
    Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
    With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
    No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
    If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
    Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
    Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
    Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
    Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return.
    Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
    The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to the
effective date of this amendatory Act of 1985, each payment
shall be in an amount not less than 22.5% of the taxpayer's
actual liability under Section 2d. If the month during which
such tax liability is incurred begins on or after January 1,
1986, each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 27.5% of the
taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
    The provisions of this paragraph apply on and after October
1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
    If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
    If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax on sales of
food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics.
    Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
    Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
    Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
    Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
    Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
is now taxed at 6.25%.
    Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act (CAA) Permit Fund under this Act
and the Use Tax Act shall not exceed $2,000,000 in any fiscal
year.
    Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
    Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal YearAnnual Specified Amount
1986$54,800,000
1987$76,650,000
1988$80,480,000
1989$88,510,000
1990$115,330,000
1991$145,470,000
1992$182,730,000
1993$206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
    Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal YearTotal Deposit
1993         $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004103,000,000
2005108,000,000
2006113,000,000
2007119,000,000
2008126,000,000
2009132,000,000
2010139,000,000
2011146,000,000
2012153,000,000
2013161,000,000
2014170,000,000
2015179,000,000
2016189,000,000
2017199,000,000
2018210,000,000
2019221,000,000
2020233,000,000
2021246,000,000
2022260,000,000
2023275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
    Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993, the Department shall each
month pay into the Illinois Tax Increment Fund 0.27% of 80% of
the net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
    Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
    Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
    The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
    If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
        (i) Until January 1, 1994, the taxpayer shall be liable
    for a penalty equal to 1/6 of 1% of the tax due from such
    taxpayer under this Act during the period to be covered by
    the annual return for each month or fraction of a month
    until such return is filed as required, the penalty to be
    assessed and collected in the same manner as any other
    penalty provided for in this Act.
        (ii) On and after January 1, 1994, the taxpayer shall
    be liable for a penalty as described in Section 3-4 of the
    Uniform Penalty and Interest Act.
    The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
    The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
    As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
    Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
    For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
    Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
    Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 96-34, eff. 7-13-09; 96-38, eff. 7-13-09; 96-898,
eff. 5-27-10; 96-1012, eff. 7-7-10; 97-95, eff. 7-12-11;
97-333, eff. 8-12-11.)
 
    (35 ILCS 120/5k)  (from Ch. 120, par. 444k)
    Sec. 5k. Building materials exemption; enterprise zone.
    (a) Each retailer who makes a qualified sale of building
materials to be incorporated into real estate in an enterprise
zone established by a county or municipality under the Illinois
Enterprise Zone Act by remodeling, rehabilitation or new
construction, may deduct receipts from such sales when
calculating the tax imposed by this Act. For purposes of this
Section, before July 1, 2013, "qualified sale" means a sale of
building materials that will be incorporated into real estate
as part of a building project for which a Certificate of
Eligibility for Sales Tax Exemption has been issued by the
administrator of the enterprise zone in which the building
project is located, and on and after July 1, 2013, "qualified
sale" means a sale of building materials that will be
incorporated into real estate as part of a building project for
which an Enterprise Zone Building Materials Exemption
Certificate has been issued to the purchaser by the Department.
A construction contractor or other entity shall not make
tax-free purchases unless it has an active Exemption
Certificate issued by the Department at the time of the
purchase.
    (b) Before July 1, 2013, to document the exemption allowed
under this Section, the retailer must obtain from the purchaser
a copy of the Certificate of Eligibility for Sales Tax
Exemption issued by the administrator of the enterprise zone
into which the building materials will be incorporated. On and
after July 1, 2013, to document the exemption allowed under
this Section, the retailer must obtain from the purchaser the
certification required under subsection (c), which must
contain the Enterprise Zone Building Materials Exemption
Certificate number issued to the purchaser by the Department.
Upon request from the enterprise zone administrator, the
Department shall issue an Enterprise Zone Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the enterprise zone administrator.
The Department shall make issue the Exemption Certificates
available directly to each enterprise zone administrator,
construction contractor, or other entity. The Department shall
also provide the enterprise zone administrator with a copy of
each Exemption Certificate issued. The request for Enterprise
Zone Building Materials Exemption Certificates from the
enterprise zone administrator to the Department must include
the following information:
        (1) the name and address of the construction contractor
    or other entity;
        (2) the name and number of the enterprise zone;
        (3) the name and location or address of the building
    project in the enterprise zone;
        (4) the estimated amount of the exemption for each
    construction contractor or other entity for which a request
    for Exemption Certificate is made, based on a stated
    estimated average tax rate and the percentage of the
    contract that consists of materials;
        (5) the period of time over which supplies for the
    project are expected to be purchased; and
        (6) 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 Enterprise Zone Building
Materials Exemption Certificates within 3 business days after
receipt of request from the zone administrator. 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 an 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 Enterprise
Zone 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 Enterprise Zone Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue the Exemption Certificates
electronically. The Enterprise Zone 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 Enterprise Zone,
the project for which the Exemption Certificate is issued, and
the construction contractor or other entity to whom the
Exemption Certificate is issued. The Exemption Certificate
shall contain an expiration date, which shall be no more than 2
years after the date of issuance. At the request of the zone
administrator, the Department may renew an Exemption
Certificate. After the Department issues Exemption
Certificates for a given enterprise zone project, the
enterprise zone administrator may notify the Department of
additional construction contractors or other entities eligible
for an Enterprise Zone Building Materials Exemption
Certificate. Upon notification by the enterprise zone
administrator and subject to the other provisions of this
subsection (b), the Department shall issue an Enterprise Zone
Building Materials Exemption Certificate to each additional
construction contractor or other entity identified by the
enterprise zone administrator. An enterprise zone
administrator may notify the Department to rescind an
Enterprise Zone Building Materials Exemption Certificate
previously issued by the Department but that has not yet
expired. Upon notification by the enterprise zone
administrator and subject to the other provisions of this
subsection (b), the Department shall issue the rescission of
the Enterprise Zone Building Materials Exemption Certificate
to the construction contractor or other entity identified by
the enterprise zone administrator and provide a copy to the
enterprise zone administrator.
    If the Department of Revenue determines that a construction
contractor or other entity that was issued an Exemption
Certificate under this subsection (b) 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.
    (c) In addition, the retailer must obtain certification
from the purchaser that contains:
        (1) a statement that the building materials are being
    purchased for incorporation into real estate located in an
    Illinois enterprise zone;
        (2) the location or address of the real estate into
    which the building materials will be incorporated;
        (3) the name of the enterprise zone in which that real
    estate is located;
        (4) a description of the building materials being
    purchased;
        (5) on and after July 1, 2013, the purchaser's
    Enterprise Zone Building Materials Exemption Certificate
    number issued by the Department; and
        (6) the purchaser's signature and date of purchase.
    (d) The deduction allowed by this Section for the sale of
building materials may be limited, to the extent authorized by
ordinance, adopted after the effective date of this amendatory
Act of 1992, by the municipality or county that created the
enterprise zone into which the building materials will be
incorporated. The ordinance, however, may neither require nor
prohibit the purchase of building materials from any retailer
or class of retailers in order to qualify for the exemption
allowed under this Section. The provisions of this Section are
exempt from Section 2-70.
    (e) Notwithstanding anything to the contrary in this
Section, for enterprise zone projects already in existence and
for which construction contracts are already in place on July
1, 2013, the request for Enterprise Zone Building Materials
Exemption Certificates from the enterprise zone administrator
to the Department for these pre-existing construction
contractors and other entities must include the information
required under subsection (b), but not including the
information listed in items (4) and (5). For any new
construction contract entered into on or after July 1, 2013,
however, all of the information in subsection (b) must be
provided.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (35 ILCS 120/5l)  (from Ch. 120, par. 444l)
    Sec. 5l. Building materials exemption; High Impact
Business.
    (a) Beginning January 1, 1995, each retailer who makes a
sale of building materials that will be incorporated into a
High Impact Business location as designated by the Department
of Commerce and Economic Opportunity under Section 5.5 of the
Illinois Enterprise Zone Act may deduct receipts from such
sales when calculating only the 6.25% State rate of tax imposed
by this Act. Beginning on the effective date of this amendatory
Act of 1995, a retailer may also deduct receipts from such
sales when calculating any applicable local taxes. However,
until the effective date of this amendatory Act of 1995, a
retailer may file claims for credit or refund to recover the
amount of any applicable local tax paid on such sales. No
retailer who is eligible for the deduction or credit under
Section 5k of this Act for making a sale of building materials
to be incorporated into real estate in an enterprise zone by
rehabilitation, remodeling or new construction shall be
eligible for the deduction or credit authorized under this
Section.
    (b) On and after July 1, 2013, in In addition to any other
requirements to document the exemption allowed under this
Section, the retailer must obtain from the purchaser the
purchaser's High Impact Business 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 Exemption Certificate issued by the
Department at the time of purchase.
    Upon request from the designated High Impact Business, the
Department shall issue a High Impact Business Building
Materials Exemption Certificate for each construction
contractor or other entity identified by the designated High
Impact Business. The Department shall make issue the Exemption
Certificates available directly to each construction
contractor or other entity and the designated High Impact
Business. The Department shall also provide the designated High
Impact Business with a copy of each Exemption Certificate
issued. The request for Building Materials Exemption
Certificates from the designated High Impact Business 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 designated
    High Impact Business;
        (3) the estimated amount of the exemption for each
    construction contractor or other entity for which a request
    for 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 High Impact Business
Building Materials Exemption Certificates within 3 business
days after receipt of request from the designated High Impact
Business. 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 an 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 High Impact Business 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 High Impact Business Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue the Exemption Certificates
electronically. The High Impact Business 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 High
Impact Business and the construction contractor or other entity
to whom the Exemption Certificate is issued. The Exemption
Certificate shall contain an expiration date, which shall be no
more than 2 years after the date of issuance. At the request of
the designated High Impact Business, the Department may renew
an Exemption Certificate. After the Department issues
Exemption Certificates for a given designated High Impact
Business, the designated High Impact Business may notify the
Department of additional construction contractors or other
entities eligible for a Building Materials Exemption
Certificate. Upon notification by the designated High Impact
Business and subject to the other provisions of this subsection
(b), the Department shall issue a High Impact Business Building
Materials Exemption Certificate to each additional
construction contractor or other entity identified by the
designated High Impact Business. A designated High Impact
Business may notify the Department to rescind a Building
Materials Exemption Certificate previously issued by the
Department but that has not yet expired. Upon notification by
the designated High Impact Business and subject to the other
provisions of this subsection (b), the Department shall issue
the rescission of the Building Materials Exemption Certificate
to the construction contractor or other entity identified by
the designated High Impact Business and provide a copy to the
designated High Impact Business.
    If the Department of Revenue determines that a construction
contractor or other entity that was issued an Exemption
Certificate under this subsection (b) 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.
    (c) Notwithstanding anything to the contrary in this
Section, for High Impact Businesses for which projects are
already in existence and for which construction contracts are
already in place on July 1, 2013, the request for High Impact
Business Building Materials Exemption Certificates from the
High Impact Business to the Department for these pre-existing
construction contractors and other entities must include the
information required under subsection (b), but not including
the information listed in items (3) and (4). For any new
construction contract entered into on or after July 1, 2013,
however, all of the information in subsection (b) must be
provided.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    Section 5-50. The Property Tax Code is amended by changing
Sections 10-115 and 18-165 as follows:
 
    (35 ILCS 200/10-115)
    Sec. 10-115. Department guidelines and valuations for
farmland. The Department shall issue guidelines and
recommendations for the valuation of farmland to achieve
equitable assessment within and between counties.
    The Director of Revenue shall appoint a five-person
Farmland Assessment Technical Advisory Board, consisting of
technical experts from the colleges or schools of agriculture
of the State universities and State and federal agricultural
agencies, to advise in and provide data and technical
information needed for implementation of this Section.
    By May 1 of each year, the Department shall certify to each
chief county assessment officer the following, calculated from
data provided by the Farmland Technical Advisory Board, on a
per acre basis by soil productivity index for harvested
cropland, using moving averages for the most recent 5-year
period for which data are available:
        (a) gross income, estimated by using yields per acre as
    assigned to soil productivity indices, the crop mix for
    each soil productivity index as determined by the College
    of Agriculture of the University of Illinois and average
    prices received by farmers for principal crops as published
    by the Illinois Crop Reporting Service;
        (b) production costs, other than land costs, provided
    by the College of Agriculture of the University of
    Illinois;
        (c) net return to land, which shall be the difference
    between (a) and (b) above;
        (d) a proposed agricultural economic value determined
    by dividing the net return to land by the moving average of
    the Federal Land Bank farmland mortgage interest rate as
    calculated by the Department;
        (e) the equalized assessed value per acre of farmland
    for each soil productivity index, which shall be 33-1/3% of
    the agricultural economic value, or the percentage as
    provided under Section 17-5; but any increase or decrease
    in the equalized assessed value per acre by soil
    productivity index shall not exceed 10% from the immediate
    preceding year's soil productivity index certified
    assessed value of the median cropped soil; in tax year 2015
    only, that 10% limitation shall be reduced by $5 per acre;
        (f) a proposed average equalized assessed value per
    acre of cropland for each individual county, weighted by
    the distribution of soils by productivity index in the
    county; and
        (g) a proposed average equalized assessed value per
    acre for all farmland in each county, weighted (i) to
    consider the proportions of all farmland acres in the
    county which are cropland, permanent pasture, and other
    farmland, and (ii) to reflect the valuations for those
    types of land and debasements for slope and erosion as
    required by Section 10-125.
(Source: P.A. 91-357, eff. 7-29-99.)
 
    (35 ILCS 200/18-165)
    Sec. 18-165. Abatement of taxes.
    (a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following types
of property:
        (1) Commercial and industrial.
            (A) The property of any commercial or industrial
        firm, including but not limited to the property of (i)
        any firm that is used for collecting, separating,
        storing, or processing recyclable materials, locating
        within the taxing district during the immediately
        preceding year from another state, territory, or
        country, or having been newly created within this State
        during the immediately preceding year, or expanding an
        existing facility, or (ii) any firm that is used for
        the generation and transmission of electricity
        locating within the taxing district during the
        immediately preceding year or expanding its presence
        within the taxing district during the immediately
        preceding year by construction of a new electric
        generating facility that uses natural gas as its fuel,
        or any firm that is used for production operations at a
        new, expanded, or reopened coal mine within the taxing
        district, that has been certified as a High Impact
        Business by the Illinois Department of Commerce and
        Economic Opportunity. The property of any firm used for
        the generation and transmission of electricity shall
        include all property of the firm used for transmission
        facilities as defined in Section 5.5 of the Illinois
        Enterprise Zone Act. The abatement shall not exceed a
        period of 10 years and the aggregate amount of abated
        taxes for all taxing districts combined shall not
        exceed $4,000,000.
            (A-5) Any property in the taxing district of a new
        electric generating facility, as defined in Section
        605-332 of the Department of Commerce and Economic
        Opportunity Law of the Civil Administrative Code of
        Illinois. The abatement shall not exceed a period of 10
        years. The abatement shall be subject to the following
        limitations:
                (i) if the equalized assessed valuation of the
            new electric generating facility is equal to or
            greater than $25,000,000 but less than
            $50,000,000, then the abatement may not exceed (i)
            over the entire term of the abatement, 5% of the
            taxing district's aggregate taxes from the new
            electric generating facility and (ii) in any one
            year of abatement, 20% of the taxing district's
            taxes from the new electric generating facility;
                (ii) if the equalized assessed valuation of
            the new electric generating facility is equal to or
            greater than $50,000,000 but less than
            $75,000,000, then the abatement may not exceed (i)
            over the entire term of the abatement, 10% of the
            taxing district's aggregate taxes from the new
            electric generating facility and (ii) in any one
            year of abatement, 35% of the taxing district's
            taxes from the new electric generating facility;
                (iii) if the equalized assessed valuation of
            the new electric generating facility is equal to or
            greater than $75,000,000 but less than
            $100,000,000, then the abatement may not exceed
            (i) over the entire term of the abatement, 20% of
            the taxing district's aggregate taxes from the new
            electric generating facility and (ii) in any one
            year of abatement, 50% of the taxing district's
            taxes from the new electric generating facility;
                (iv) if the equalized assessed valuation of
            the new electric generating facility is equal to or
            greater than $100,000,000 but less than
            $125,000,000, then the abatement may not exceed
            (i) over the entire term of the abatement, 30% of
            the taxing district's aggregate taxes from the new
            electric generating facility and (ii) in any one
            year of abatement, 60% of the taxing district's
            taxes from the new electric generating facility;
                (v) if the equalized assessed valuation of the
            new electric generating facility is equal to or
            greater than $125,000,000 but less than
            $150,000,000, then the abatement may not exceed
            (i) over the entire term of the abatement, 40% of
            the taxing district's aggregate taxes from the new
            electric generating facility and (ii) in any one
            year of abatement, 60% of the taxing district's
            taxes from the new electric generating facility;
                (vi) if the equalized assessed valuation of
            the new electric generating facility is equal to or
            greater than $150,000,000, then the abatement may
            not exceed (i) over the entire term of the
            abatement, 50% of the taxing district's aggregate
            taxes from the new electric generating facility
            and (ii) in any one year of abatement, 60% of the
            taxing district's taxes from the new electric
            generating facility.
            The abatement is not effective unless the owner of
        the new electric generating facility agrees to repay to
        the taxing district all amounts previously abated,
        together with interest computed at the rate and in the
        manner provided for delinquent taxes, in the event that
        the owner of the new electric generating facility
        closes the new electric generating facility before the
        expiration of the entire term of the abatement.
            The authorization of taxing districts to abate
        taxes under this subdivision (a)(1)(A-5) expires on
        January 1, 2010.
            (B) The property of any commercial or industrial
        development of at least (i) 500 acres or (ii) 225 acres
        in the case of a commercial or industrial development
        that applies for and is granted designation as a High
        Impact Business under paragraph (F) of item (3) of
        subsection (a) of Section 5.5 of the Illinois
        Enterprise Zone Act, having been created within the
        taxing district. The abatement shall not exceed a
        period of 20 years and the aggregate amount of abated
        taxes for all taxing districts combined shall not
        exceed $12,000,000.
            (C) The property of any commercial or industrial
        firm currently located in the taxing district that
        expands a facility or its number of employees. The
        abatement shall not exceed a period of 10 years and the
        aggregate amount of abated taxes for all taxing
        districts combined shall not exceed $4,000,000. The
        abatement period may be renewed at the option of the
        taxing districts.
        (2) Horse racing. Any property in the taxing district
    which is used for the racing of horses and upon which
    capital improvements consisting of expansion, improvement
    or replacement of existing facilities have been made since
    July 1, 1987. The combined abatements for such property
    from all taxing districts in any county shall not exceed
    $5,000,000 annually and shall not exceed a period of 10
    years.
        (3) Auto racing. Any property designed exclusively for
    the racing of motor vehicles. Such abatement shall not
    exceed a period of 10 years.
        (4) Academic or research institute. The property of any
    academic or research institute in the taxing district that
    (i) is an exempt organization under paragraph (3) of
    Section 501(c) of the Internal Revenue Code, (ii) operates
    for the benefit of the public by actually and exclusively
    performing scientific research and making the results of
    the research available to the interested public on a
    non-discriminatory basis, and (iii) employs more than 100
    employees. An abatement granted under this paragraph shall
    be for at least 15 years and the aggregate amount of abated
    taxes for all taxing districts combined shall not exceed
    $5,000,000.
        (5) Housing for older persons. Any property in the
    taxing district that is devoted exclusively to affordable
    housing for older households. For purposes of this
    paragraph, "older households" means those households (i)
    living in housing provided under any State or federal
    program that the Department of Human Rights determines is
    specifically designed and operated to assist elderly
    persons and is solely occupied by persons 55 years of age
    or older and (ii) whose annual income does not exceed 80%
    of the area gross median income, adjusted for family size,
    as such gross income and median income are determined from
    time to time by the United States Department of Housing and
    Urban Development. The abatement shall not exceed a period
    of 15 years, and the aggregate amount of abated taxes for
    all taxing districts shall not exceed $3,000,000.
        (6) Historical society. For assessment years 1998
    through 2018, the property of an historical society
    qualifying as an exempt organization under Section
    501(c)(3) of the federal Internal Revenue Code.
        (7) Recreational facilities. Any property in the
    taxing district (i) that is used for a municipal airport,
    (ii) that is subject to a leasehold assessment under
    Section 9-195 of this Code and (iii) which is sublet from a
    park district that is leasing the property from a
    municipality, but only if the property is used exclusively
    for recreational facilities or for parking lots used
    exclusively for those facilities. The abatement shall not
    exceed a period of 10 years.
        (8) Relocated corporate headquarters. If approval
    occurs within 5 years after the effective date of this
    amendatory Act of the 92nd General Assembly, any property
    or a portion of any property in a taxing district that is
    used by an eligible business for a corporate headquarters
    as defined in the Corporate Headquarters Relocation Act.
    Instead of an abatement under this paragraph (8), a taxing
    district may enter into an agreement with an eligible
    business to make annual payments to that eligible business
    in an amount not to exceed the property taxes paid directly
    or indirectly by that eligible business to the taxing
    district and any other taxing districts for premises
    occupied pursuant to a written lease and may make those
    payments without the need for an annual appropriation. No
    school district, however, may enter into an agreement with,
    or abate taxes for, an eligible business unless the
    municipality in which the corporate headquarters is
    located agrees to provide funding to the school district in
    an amount equal to the amount abated or paid by the school
    district as provided in this paragraph (8). Any abatement
    ordered or agreement entered into under this paragraph (8)
    may be effective for the entire term specified by the
    taxing district, except the term of the abatement or annual
    payments may not exceed 20 years.
        (9) United States Military Public/Private Residential
    Developments. Each building, structure, or other
    improvement designed, financed, constructed, renovated,
    managed, operated, or maintained after January 1, 2006
    under a "PPV Lease", as set forth under Division 14 of
    Article 10, and any such PPV Lease.
        (10) Property located in a business corridor that
    qualifies for an abatement under Section 18-184.10.
    (b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate any
portion of its taxes on any property that is located within the
corporate limits of the municipality in accordance with Section
8-3-18 of the Illinois Municipal Code.
(Source: P.A. 96-1136, eff. 7-21-10; 97-577, eff. 1-1-12;
97-636, eff. 6-1-12.)
 
    Section 5-55. The County Economic Development Project Area
Property Tax Allocation Act is amended by changing Section 3 as
follows:
 
    (55 ILCS 85/3)  (from Ch. 34, par. 7003)
    Sec. 3. Definitions. In this Act, words or terms shall have
the following meanings unless the context usage clearly
indicates that another meaning is intended.
    (a) "Department" means the Department of Commerce and
Economic Opportunity.
    (b) "Economic development plan" means the written plan of a
county which sets forth an economic development program for an
economic development project area. Each economic development
plan shall include but not be limited to (1) estimated economic
development project costs, (2) the sources of funds to pay such
costs, (3) the nature and term of any obligations to be issued
by the county to pay such costs, (4) the most recent equalized
assessed valuation of the economic development project area,
(5) an estimate of the equalized assessed valuation of the
economic development project area after completion of the
economic development plan, (6) the estimated date of completion
of any economic development project proposed to be undertaken,
(7) a general description of any proposed developer, user, or
tenant of any property to be located or improved within the
economic development project area, (8) a description of the
type, structure and general character of the facilities to be
developed or improved in the economic development project area,
(9) a description of the general land uses to apply in the
economic development project area, (10) a description of the
type, class and number of employees to be employed in the
operation of the facilities to be developed or improved in the
economic development project area and (11) a commitment by the
county to fair employment practices and an affirmative action
plan with respect to any economic development program to be
undertaken by the county. The economic development plan for an
economic development project area authorized by subsection
(a-15) of Section 4 of this Act must additionally include (1)
evidence indicating that the redevelopment project area on the
whole has not been subject to growth and development through
investment by private enterprise and is not reasonably expected
to be subject to such growth and development without the
assistance provided through the implementation of the economic
development plan and (2) evidence that portions of the economic
development project area have incurred Illinois Environmental
Protection Agency or United States Environmental Protection
Agency remediation costs for, or a study conducted by an
independent consultant recognized as having expertise in
environmental remediation has determined a need for, the
clean-up of hazardous waste, hazardous substances, or
underground storage tanks required by State or federal law,
provided that the remediation costs constitute a material
impediment to the development or redevelopment of the project
area.
    (c) "Economic development project" means any development
project in furtherance of the objectives of this Act.
    (d) "Economic development project area" means any improved
or vacant area which is located within the corporate limits of
a county and which (1) is within the unincorporated area of
such county, or, with the consent of any affected municipality,
is located partially within the unincorporated area of such
county and partially within one or more municipalities, (2) is
contiguous, (3) is not less in the aggregate than 100 acres
and, for an economic development project area authorized by
subsection (a-15) of Section 4 of this Act, not more than 2,000
acres, (4) is suitable for siting by any commercial,
manufacturing, industrial, research or transportation
enterprise of facilities to include but not be limited to
commercial businesses, offices, factories, mills, processing
plants, assembly plants, packing plants, fabricating plants,
industrial or commercial distribution centers, warehouses,
repair overhaul or service facilities, freight terminals,
research facilities, test facilities or transportation
facilities, whether or not such area has been used at any time
for such facilities and whether or not the area has been used
or is suitable for such facilities and whether or not the area
has been used or is suitable for other uses, including
commercial agricultural purposes, and (5) which has been
certified by the Department pursuant to this Act.
    (e) "Economic development project costs" means and
includes the sum total of all reasonable or necessary costs
incurred by a county incidental to an economic development
project, including, without limitation, the following:
        (1) Costs of studies, surveys, development of plans and
    specifications, implementation and administration of an
    economic development plan, personnel and professional
    service costs for architectural, engineering, legal,
    marketing, financial, planning, sheriff, fire, public
    works or other services, provided that no charges for
    professional services may be based on a percentage of
    incremental tax revenue;
        (2) Property assembly costs within an economic
    development project area, including but not limited to
    acquisition of land and other real or personal property or
    rights or interests therein, and specifically including
    payments to developers or other non-governmental persons
    as reimbursement for property assembly costs incurred by
    such developer or other non-governmental person;
        (3) Site preparation costs, including but not limited
    to clearance of any area within an economic development
    project area by demolition or removal of any existing
    buildings, structures, fixtures, utilities and
    improvements and clearing and grading; site improvement
    addressing ground level or below ground environmental
    contamination; and including installation, repair,
    construction, reconstruction, or relocation of public
    streets, public utilities, and other public site
    improvements within or without an economic development
    project area which are essential to the preparation of the
    economic development project area for use in accordance
    with an economic development plan; and specifically
    including payments to developers or other non-governmental
    persons as reimbursement for site preparation costs
    incurred by such developer or non-governmental person;
        (4) Costs of renovation, rehabilitation,
    reconstruction, relocation, repair or remodeling of any
    existing buildings, improvements, and fixtures within an
    economic development project area, and specifically
    including payments to developers or other non-governmental
    persons as reimbursement for such costs incurred by such
    developer or non-governmental person;
        (5) Costs of construction within an economic
    development project area of public improvements, including
    but not limited to, buildings, structures, works,
    improvements, utilities or fixtures;
        (6) Financing costs, including but not limited to all
    necessary and incidental expenses related to the issuance
    of obligations, payment of any interest on any obligations
    issued hereunder which accrues during the estimated period
    of construction of any economic development project for
    which such obligations are issued and for not exceeding 36
    months thereafter, and any reasonable reserves related to
    the issuance of such obligations;
        (7) All or a portion of a taxing district's capital
    costs resulting from an economic development project
    necessarily incurred or estimated to be incurred by a
    taxing district in the furtherance of the objectives of an
    economic development project, to the extent that the county
    by written agreement accepts, approves and agrees to incur
    or to reimburse such costs;
        (8) Relocation costs to the extent that a county
    determines that relocation costs shall be paid or is
    required to make payment of relocation costs by federal or
    State law;
        (9) The estimated tax revenues from real property in an
    economic development project area acquired by a county
    which, according to the economic development plan, is to be
    used for a private use and which any taxing district would
    have received had the county not adopted property tax
    allocation financing for an economic development project
    area and which would result from such taxing district's
    levies made after the time of the adoption by the county of
    property tax allocation financing to the time the current
    equalized assessed value of real property in the economic
    development project area exceeds the total initial
    equalized value of real property in that area;
        (10) Costs of rebating ad valorem taxes paid by any
    developer or other nongovernmental person in whose name the
    general taxes were paid for the last preceding year on any
    lot, block, tract or parcel of land in the economic
    development project area, provided that:
            (i) such economic development project area is
        located in an enterprise zone created pursuant to the
        Illinois Enterprise Zone Act; beginning on the
        effective date of this amendatory Act of the 98th
        General Assembly and ending on the date occurring 3
        years later, compliance with this provision (i) is not
        required in Grundy County;
            (ii) such ad valorem taxes shall be rebated only in
        such amounts and for such tax year or years as the
        county and any one or more affected taxing districts
        shall have agreed by prior written agreement;
        beginning on the effective date of this amendatory Act
        of the 98th General Assembly and ending on the date
        occurring 3 years later, compliance with this
        provision (ii) is not required in Grundy County if the
        county receives approval from 2/3 of the taxing
        districts representing no less than 75% of the
        aggregate tax levy for all of the affected taxing
        districts for the levy year;
            (iii) any amount of rebate of taxes shall not
        exceed the portion, if any, of taxes levied by the
        county or such taxing district or districts which is
        attributable to the increase in the current equalized
        assessed valuation of each taxable lot, block, tract or
        parcel of real property in the economic development
        project area over and above the initial equalized
        assessed value of each property existing at the time
        property tax allocation financing was adopted for said
        economic development project area; and
            (iv) costs of rebating ad valorem taxes shall be
        paid by a county solely from the special tax allocation
        fund established pursuant to this Act and shall be paid
        from the proceeds of any obligations issued by a
        county.
        
        (11) Costs of job training, advanced vocational
    education or career education programs, including but not
    limited to courses in occupational, semi-technical or
    technical fields leading directly to employment, incurred
    by one or more taxing districts, provided that such costs
    are related to the establishment and maintenance of
    additional job training, advanced vocational education or
    career education programs for persons employed or to be
    employed by employers located in an economic development
    project area, and further provided, that when such costs
    are incurred by a taxing district or taxing districts other
    than the county, they shall be set forth in a written
    agreement by or among the county and the taxing district or
    taxing districts, which agreement describes the program to
    be undertaken, including, but not limited to, the number of
    employees to be trained, a description of the training and
    services to be provided, the number and type of positions
    available or to be available, itemized costs of the program
    and sources of funds to pay the same, and the term of the
    agreement. Such costs include, specifically, the payment
    by community college districts of costs pursuant to Section
    3-37, 3-38, 3-40 and 3-40.1 of the Public Community College
    Act and by school districts of costs pursuant to Sections
    10-22.20 and 10-23.3a of the School Code;
        (12) Private financing costs incurred by developers or
    other non-governmental persons in connection with an
    economic development project, and specifically including
    payments to developers or other non-governmental persons
    as reimbursement for such costs incurred by such developer
    or other non-governmental persons provided that:
            (A) private financing costs shall be paid or
        reimbursed by a county only pursuant to the prior
        official action of the county evidencing an intent to
        pay such private financing costs;
            (B) except as provided in subparagraph (D) of this
        Section, the aggregate amount of such costs paid or
        reimbursed by a county in any one year shall not exceed
        30% of such costs paid or incurred by such developer or
        other non-governmental person in that year;
            (C) private financing costs shall be paid or
        reimbursed by a county solely from the special tax
        allocation fund established pursuant to this Act and
        shall not be paid or reimbursed from the proceeds of
        any obligations issued by a county;
            (D) if there are not sufficient funds available in
        the special tax allocation fund in any year to make
        such payment or reimbursement in full, any amount of
        such private financing costs remaining to be paid or
        reimbursed by a county shall accrue and be payable when
        funds are available in the special tax allocation fund
        to make such payment; and
            (E) in connection with its approval and
        certification of an economic development project
        pursuant to Section 5 of this Act, the Department shall
        review any agreement authorizing the payment or
        reimbursement by a county of private financing costs in
        its consideration of the impact on the revenues of the
        county and the affected taxing districts of the use of
        property tax allocation financing.
    (f) "Obligations" means any instrument evidencing the
obligation of a county to pay money, including without
limitation, bonds, notes, installment or financing contracts,
certificates, tax anticipation warrants or notes, vouchers,
and any other evidence of indebtedness.
    (g) "Taxing districts" means municipalities, townships,
counties, and school, road, park, sanitary, mosquito
abatement, forest preserve, public health, fire protection,
river conservancy, tuberculosis sanitarium and any other
county corporations or districts with the power to levy taxes
on real property.
(Source: P.A. 96-1262, eff. 7-26-10.)
 
    Section 5-60. The Illinois Municipal Code is amended by
changing Sections 11-65-10 and 11-74.4-3.5 as follows:
 
    (65 ILCS 5/11-65-10)
    Sec. 11-65-10. Public-facilities corporations authorized.
    (a) Each municipality referenced in Section 11-65-2 is
authorized to incorporate a public-facilities corporation to
exercise, as business agent of the municipality, the powers of
the municipality set forth in Section 11-65-2, Section 11-65-6,
and Section 11-65-7, and also the power of the municipality to
acquire by dedication, gift, lease, contract, or purchase all
property and rights, necessary or proper, within the corporate
limits of the municipality, for municipal convention hall
purposes.
    (b) In this Division 65, unless the context otherwise
requires, a "public-facilities corporation" means an Illinois
not-for-profit corporation whose purpose is charitable and
civic, organized solely for the purpose of (i) acquiring a site
or sites appropriate for a municipal convention hall; (ii)
constructing, building, and equipping thereon a municipal
convention hall; and (iii) collecting the revenues therefrom,
entirely without profit to the public-facilities corporation,
its officers, or directors. A public-facilities corporation
shall assist the municipality it serves in the municipality's
essential governmental purposes.
    (c) The municipality shall retain control of the
public-facilities corporation by means of the municipality's
expressed legal right, set forth in the articles of
incorporation of the public-facilities corporation, to
appoint, remove, and replace the members of the board of
directors of the public-facilities corporation. The directors
and officers of the public-facilities corporation shall serve
without compensation but may be reimbursed for their reasonable
expenses that are incurred on behalf of the public-facilities
corporation. Upon retirement or redemption of any bonds or
other debt instruments issued by the public-facilities
corporation in connection with the development of the municipal
convention hall, the legal title to the municipal convention
hall shall be transferred to the municipality without any
further consideration by or on behalf of the municipality.
    (d) The municipality may designate a public-facilities
corporation to include a facility that operates for the benefit
of multiple units of local government through a management
board created by a duly executed intergovernmental cooperation
agreement and ratified by each duly elected board.
(Source: P.A. 95-672, eff. 10-11-07.)
 
    (65 ILCS 5/11-74.4-3.5)
    Sec. 11-74.4-3.5. Completion dates for redevelopment
projects.
    (a) Unless otherwise stated in this Section, the estimated
dates of completion of the redevelopment project and retirement
of obligations issued to finance redevelopment project costs
(including refunding bonds under Section 11-74.4-7) may not be
later than December 31 of the year in which the payment to the
municipal treasurer, as provided in subsection (b) of Section
11-74.4-8 of this Act, is to be made with respect to ad valorem
taxes levied in the 23rd calendar year after the year in which
the ordinance approving the redevelopment project area was
adopted if the ordinance was adopted on or after January 15,
1981.
    (b) The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 32nd
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted, if the ordinance
was adopted on September 9, 1999 by the Village of Downs.
    The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 33rd
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted, if the ordinance
was adopted on May 20, 1985 by the Village of Wheeling.
    The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 28th
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted, if the ordinance
was adopted on October 12, 1989 by the City of Lawrenceville.
    (c) The estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may not be later than December 31 of the
year in which the payment to the municipal treasurer as
provided in subsection (b) of Section 11-74.4-8 of this Act is
to be made with respect to ad valorem taxes levied in the 35th
calendar year after the year in which the ordinance approving
the redevelopment project area was adopted:
        (1) if the ordinance was adopted before January 15,
    1981;
        (2) if the ordinance was adopted in December 1983,
    April 1984, July 1985, or December 1989;
        (3) if the ordinance was adopted in December 1987 and
    the redevelopment project is located within one mile of
    Midway Airport;
        (4) if the ordinance was adopted before January 1, 1987
    by a municipality in Mason County;
        (5) if the municipality is subject to the Local
    Government Financial Planning and Supervision Act or the
    Financially Distressed City Law;
        (6) if the ordinance was adopted in December 1984 by
    the Village of Rosemont;
        (7) if the ordinance was adopted on December 31, 1986
    by a municipality located in Clinton County for which at
    least $250,000 of tax increment bonds were authorized on
    June 17, 1997, or if the ordinance was adopted on December
    31, 1986 by a municipality with a population in 1990 of
    less than 3,600 that is located in a county with a
    population in 1990 of less than 34,000 and for which at
    least $250,000 of tax increment bonds were authorized on
    June 17, 1997;
        (8) if the ordinance was adopted on October 5, 1982 by
    the City of Kankakee, or if the ordinance was adopted on
    December 29, 1986 by East St. Louis;
        (9) if the ordinance was adopted on November 12, 1991
    by the Village of Sauget;
        (10) if the ordinance was adopted on February 11, 1985
    by the City of Rock Island;
        (11) if the ordinance was adopted before December 18,
    1986 by the City of Moline;
        (12) if the ordinance was adopted in September 1988 by
    Sauk Village;
        (13) if the ordinance was adopted in October 1993 by
    Sauk Village;
        (14) if the ordinance was adopted on December 29, 1986
    by the City of Galva;
        (15) if the ordinance was adopted in March 1991 by the
    City of Centreville;
        (16) if the ordinance was adopted on January 23, 1991
    by the City of East St. Louis;
        (17) if the ordinance was adopted on December 22, 1986
    by the City of Aledo;
        (18) if the ordinance was adopted on February 5, 1990
    by the City of Clinton;
        (19) if the ordinance was adopted on September 6, 1994
    by the City of Freeport;
        (20) if the ordinance was adopted on December 22, 1986
    by the City of Tuscola;
        (21) if the ordinance was adopted on December 23, 1986
    by the City of Sparta;
        (22) if the ordinance was adopted on December 23, 1986
    by the City of Beardstown;
        (23) if the ordinance was adopted on April 27, 1981,
    October 21, 1985, or December 30, 1986 by the City of
    Belleville;
        (24) if the ordinance was adopted on December 29, 1986
    by the City of Collinsville;
        (25) if the ordinance was adopted on September 14, 1994
    by the City of Alton;
        (26) if the ordinance was adopted on November 11, 1996
    by the City of Lexington;
        (27) if the ordinance was adopted on November 5, 1984
    by the City of LeRoy;
        (28) if the ordinance was adopted on April 3, 1991 or
    June 3, 1992 by the City of Markham;
        (29) if the ordinance was adopted on November 11, 1986
    by the City of Pekin;
        (30) if the ordinance was adopted on December 15, 1981
    by the City of Champaign;
        (31) if the ordinance was adopted on December 15, 1986
    by the City of Urbana;
        (32) if the ordinance was adopted on December 15, 1986
    by the Village of Heyworth;
        (33) if the ordinance was adopted on February 24, 1992
    by the Village of Heyworth;
        (34) if the ordinance was adopted on March 16, 1995 by
    the Village of Heyworth;
        (35) if the ordinance was adopted on December 23, 1986
    by the Town of Cicero;
        (36) if the ordinance was adopted on December 30, 1986
    by the City of Effingham;
        (37) if the ordinance was adopted on May 9, 1991 by the
    Village of Tilton;
        (38) if the ordinance was adopted on October 20, 1986
    by the City of Elmhurst;
        (39) if the ordinance was adopted on January 19, 1988
    by the City of Waukegan;
        (40) if the ordinance was adopted on September 21, 1998
    by the City of Waukegan;
        (41) if the ordinance was adopted on December 31, 1986
    by the City of Sullivan;
        (42) if the ordinance was adopted on December 23, 1991
    by the City of Sullivan;
        (43) if the ordinance was adopted on December 31, 1986
    by the City of Oglesby;
        (44) if the ordinance was adopted on July 28, 1987 by
    the City of Marion;
        (45) if the ordinance was adopted on April 23, 1990 by
    the City of Marion;
        (46) if the ordinance was adopted on August 20, 1985 by
    the Village of Mount Prospect;
        (47) if the ordinance was adopted on February 2, 1998
    by the Village of Woodhull;
        (48) if the ordinance was adopted on April 20, 1993 by
    the Village of Princeville;
        (49) if the ordinance was adopted on July 1, 1986 by
    the City of Granite City;
        (50) if the ordinance was adopted on February 2, 1989
    by the Village of Lombard;
        (51) if the ordinance was adopted on December 29, 1986
    by the Village of Gardner;
        (52) if the ordinance was adopted on July 14, 1999 by
    the Village of Paw Paw;
        (53) if the ordinance was adopted on November 17, 1986
    by the Village of Franklin Park;
        (54) if the ordinance was adopted on November 20, 1989
    by the Village of South Holland;
        (55) if the ordinance was adopted on July 14, 1992 by
    the Village of Riverdale;
        (56) if the ordinance was adopted on December 29, 1986
    by the City of Galesburg;
        (57) if the ordinance was adopted on April 1, 1985 by
    the City of Galesburg;
        (58) if the ordinance was adopted on May 21, 1990 by
    the City of West Chicago;
        (59) if the ordinance was adopted on December 16, 1986
    by the City of Oak Forest;
        (60) if the ordinance was adopted in 1999 by the City
    of Villa Grove;
        (61) if the ordinance was adopted on January 13, 1987
    by the Village of Mt. Zion;
        (62) if the ordinance was adopted on December 30, 1986
    by the Village of Manteno;
        (63) if the ordinance was adopted on April 3, 1989 by
    the City of Chicago Heights;
        (64) if the ordinance was adopted on January 6, 1999 by
    the Village of Rosemont;
        (65) if the ordinance was adopted on December 19, 2000
    by the Village of Stone Park;
        (66) if the ordinance was adopted on December 22, 1986
    by the City of DeKalb;
        (67) if the ordinance was adopted on December 2, 1986
    by the City of Aurora;
        (68) if the ordinance was adopted on December 31, 1986
    by the Village of Milan;
        (69) if the ordinance was adopted on September 8, 1994
    by the City of West Frankfort;
        (70) if the ordinance was adopted on December 23, 1986
    by the Village of Libertyville;
        (71) if the ordinance was adopted on December 22, 1986
    by the Village of Hoffman Estates;
        (72) if the ordinance was adopted on September 17, 1986
    by the Village of Sherman;
        (73) if the ordinance was adopted on December 16, 1986
    by the City of Macomb;
        (74) if the ordinance was adopted on June 11, 2002 by
    the City of East Peoria to create the West Washington
    Street TIF;
        (75) if the ordinance was adopted on June 11, 2002 by
    the City of East Peoria to create the Camp Street TIF;
        (76) if the ordinance was adopted on August 7, 2000 by
    the City of Des Plaines;
        (77) if the ordinance was adopted on December 22, 1986
    by the City of Washington to create the Washington Square
    TIF #2;
        (78) if the ordinance was adopted on December 29, 1986
    by the City of Morris;
        (79) if the ordinance was adopted on July 6, 1998 by
    the Village of Steeleville;
        (80) if the ordinance was adopted on December 29, 1986
    by the City of Pontiac to create TIF I (the Main St TIF);
        (81) if the ordinance was adopted on December 29, 1986
    by the City of Pontiac to create TIF II (the Interstate
    TIF);
        (82) if the ordinance was adopted on November 6, 2002
    by the City of Chicago to create the Madden/Wells TIF
    District;
        (83) if the ordinance was adopted on November 4, 1998
    by the City of Chicago to create the Roosevelt/Racine TIF
    District;
        (84) if the ordinance was adopted on June 10, 1998 by
    the City of Chicago to create the Stony Island
    Commercial/Burnside Industrial Corridors TIF District;
        (85) if the ordinance was adopted on November 29, 1989
    by the City of Chicago to create the Englewood Mall TIF
    District;
        (86) if the ordinance was adopted on December 27, 1986
    by the City of Mendota;
        (87) if the ordinance was adopted on December 31, 1986
    by the Village of Cahokia;
        (88) if the ordinance was adopted on September 20, 1999
    by the City of Belleville;
        (89) if the ordinance was adopted on December 30, 1986
    by the Village of Bellevue to create the Bellevue TIF
    District 1;
        (90) if the ordinance was adopted on December 13, 1993
    by the Village of Crete;
        (91) if the ordinance was adopted on February 12, 2001
    by the Village of Crete;
        (92) if the ordinance was adopted on April 23, 2001 by
    the Village of Crete;
        (93) if the ordinance was adopted on December 16, 1986
    by the City of Champaign;
        (94) if the ordinance was adopted on December 20, 1986
    by the City of Charleston;
        (95) if the ordinance was adopted on June 6, 1989 by
    the Village of Romeoville;
        (96) if the ordinance was adopted on October 14, 1993
    and amended on August 2, 2010 by the City of Venice;
        (97) if the ordinance was adopted on June 1, 1994 by
    the City of Markham;
        (98) if the ordinance was adopted on May 19, 1998 by
    the Village of Bensenville;
        (99) if the ordinance was adopted on November 12, 1987
    by the City of Dixon;
        (100) if the ordinance was adopted on December 20, 1988
    by the Village of Lansing;
        (101) if the ordinance was adopted on October 27, 1998
    by the City of Moline; or
        (102) if the ordinance was adopted on May 21, 1991 by
    the Village of Glenwood; .
        (103) (102) if the ordinance was adopted on January 28,
    1992 by the City of East Peoria; or
        (104) (103) if the ordinance was adopted on December
    14, 1998 by the City of Carlyle; .
        (105) if the ordinance was adopted on May 17, 2000, as
    subsequently amended, by the City of Chicago to create the
    Midwest Redevelopment TIF District; or
        (106) if the ordinance was adopted on September 13,
    1989 by the City of Chicago to create the Michigan/Cermak
    Area TIF District.
    (d) For redevelopment project areas for which bonds were
issued before July 29, 1991, or for which contracts were
entered into before June 1, 1988, in connection with a
redevelopment project in the area within the State Sales Tax
Boundary, the estimated dates of completion of the
redevelopment project and retirement of obligations to finance
redevelopment project costs (including refunding bonds under
Section 11-74.4-7) may be extended by municipal ordinance to
December 31, 2013. The termination procedures of subsection (b)
of Section 11-74.4-8 are not required for these redevelopment
project areas in 2009 but are required in 2013. The extension
allowed by Public Act 87-1272 shall not apply to real property
tax increment allocation financing under Section 11-74.4-8.
    (e) Those dates, for purposes of real property tax
increment allocation financing pursuant to Section 11-74.4-8
only, shall be not more than 35 years for redevelopment project
areas that were adopted on or after December 16, 1986 and for
which at least $8 million worth of municipal bonds were
authorized on or after December 19, 1989 but before January 1,
1990; provided that the municipality elects to extend the life
of the redevelopment project area to 35 years by the adoption
of an ordinance after at least 14 but not more than 30 days'
written notice to the taxing bodies, that would otherwise
constitute the joint review board for the redevelopment project
area, before the adoption of the ordinance.
    (f) Those dates, for purposes of real property tax
increment allocation financing pursuant to Section 11-74.4-8
only, shall be not more than 35 years for redevelopment project
areas that were established on or after December 1, 1981 but
before January 1, 1982 and for which at least $1,500,000 worth
of tax increment revenue bonds were authorized on or after
September 30, 1990 but before July 1, 1991; provided that the
municipality elects to extend the life of the redevelopment
project area to 35 years by the adoption of an ordinance after
at least 14 but not more than 30 days' written notice to the
taxing bodies, that would otherwise constitute the joint review
board for the redevelopment project area, before the adoption
of the ordinance.
    (g) In consolidating the material relating to completion
dates from Sections 11-74.4-3 and 11-74.4-7 into this Section,
it is not the intent of the General Assembly to make any
substantive change in the law, except for the extension of the
completion dates for the City of Aurora, the Village of Milan,
the City of West Frankfort, the Village of Libertyville, and
the Village of Hoffman Estates set forth under items (67),
(68), (69), (70), and (71) of subsection (c) of this Section.
(Source: P.A. 96-127, eff. 8-4-09; 96-182, eff. 8-10-09;
96-208, eff. 8-10-09; 96-209, eff. 1-1-10; 96-213, eff.
8-10-09; 96-264, eff. 8-11-09; 96-328, eff. 8-11-09; 96-439,
eff. 8-14-09; 96-454, eff. 8-14-09; 96-722, eff. 8-25-09;
96-773, eff. 8-28-09; 96-830, eff. 12-4-09; 96-837, eff.
12-16-09; 96-1000, eff. 7-2-10; 96-1359, eff. 7-28-10;
96-1494, eff. 12-30-10; 96-1514, eff. 2-4-11; 96-1552, eff.
3-10-11; 97-93, eff. 1-1-12; 97-372, eff. 8-15-11; 97-600, eff.
8-26-11; 97-633, eff. 12-16-11; 97-635, eff. 12-16-11; 97-807,
eff. 7-13-12; 97-1114, eff. 8-27-12; revised 9-20-12.)
 
    Section 5-65. The River Edge Redevelopment Zone Act is
amended by changing Section 10-10.2 and by adding Section 10-15
as follows:
 
    (65 ILCS 115/10-10.2)
    Sec. 10-10.2. Accounting.
    (a) Any business receiving tax incentives due to its
location within a River Edge Redevelopment Zone must annually
report to the Department of Revenue information reasonably
required by the Department to enable the Department of Revenue
to verify and calculate the total tax benefits for property
taxes and taxes imposed by the State that are received by the
business, broken down by incentive category, annually to the
Department of Revenue. To the extent that a business receiving
tax incentives has obtained a River Edge Building Materials
Exemption Certificate, that business is required to report
those building materials exemption benefits only under
subsection (a-5) of this Section. No additional reporting for
those building materials exemption benefits is required under
this subsection (a). Reports will be due no later than May 31
March 30 of each year and shall cover the previous calendar
year. The first report will be for the 2012 calendar year and
will be due no later than May 31 March 30, 2013. Failure to
report data may shall result in ineligibility to receive
incentives. The Department, in consultation with the
Department of Revenue, is authorized to adopt rules governing
ineligibility to receive exemptions, including the length of
ineligibility. Factors to be considered in determining whether
a business is ineligible shall include, but are not limited to,
prior compliance with the reporting requirements, cooperation
in discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or inadvertent
For the first offense, a business shall be given 60 days to
comply.
    (a-5) Each contractor or other entity that has been issued
a River Edge Building Materials Exemption Certificate under
Section 2-54 of the Retailers' Occupation Tax Act shall
annually report to the Department of Revenue the total tax
benefits for taxes imposed by the State that are received under
River Edge building materials exemption. Reports shall contain
information reasonably required by the Department of Revenue to
enable it to verify and calculate the total tax benefits for
taxes imposed by the State, and shall be broken down by River
Edge Redevelopment Zone. Reports are due no later than May 31
of each year and shall cover the previous calendar year. The
first report will be for the 2013 calendar year and will be due
no later than May 31, 2014. Failure to report data may result
in revocation of the River Edge Building Materials Exemption
Certificate issued to the contractor or other entity. The
Department of Revenue is authorized to adopt rules governing
revocation determinations, including the length of
revocations. Factors to be considered in revocations shall
include, but are not limited to, prior compliance with the
reporting requirements, cooperation in discontinuing and
correcting violations, and whether the certificate was used
unlawfully during the preceding year.
    (b) Each person required to file a return under the Gas
Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
Tax Act, or the Telecommunications Excise Tax Act shall file,
on or before May 31 March 30 of each year, a report with the
Department of Revenue, in the manner and form required by the
Department of Revenue, containing information reasonably
required by the Department of Revenue to enable the Department
of Revenue to verify and calculate itemizing the amount of the
deduction for taxes imposed by the State that is taken under
each Act, respectively, due to the location of a business in a
River Edge Redevelopment Zone. The report shall be itemized by
business and the business location address.
    (c) Employers shall report their job creation, retention,
and capital investment numbers within the River Edge
Redevelopment Zone annually to the administrator which will
compile the information and report it to the Department of
Revenue no later than May 31 March 30 of each calendar year.
    (d) The Department of Revenue will aggregate and collect
the tax, job, and capital investment data by River Edge
Redevelopment Zone and report this information, formatted to
exclude company-specific proprietary information, to the
Department by August May 1, 2013, and by August May 1 of every
calendar year thereafter. The Department will include this
information in their required reports under Section 6 of this
Act.
    (e) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted
electronically.
    (f) The Department of Revenue shall have the authority to
adopt rules as are reasonable and necessary to implement the
provisions of this Section.
(Source: P.A. 97-905, eff. 8-7-12.)
 
    (65 ILCS 115/10-15 new)
    Sec. 10-15. Riverfront Development Fund.
    (a) Purpose. The General Assembly has determined that it is
in the interest of the State of Illinois to promote development
that will protect, promote, and improve the riverfront areas of
a financially distressed city designated under the Financially
Distressed City Law.
    (b) Definitions. As used in this Section:
        "Agreement" means the agreement between an eligible
    employer and the Department under the provisions of
    subsection (f) of this Section.
        "Department" means the Department of Commerce and
    Economic Opportunity.
        "Director" means the Director of Commerce and Economic
    Opportunity.
        "Eligible developer" means an individual, partnership,
    corporation, or other entity that develops within a river
    edge redevelopment zone that is located within a
    municipality designated as a financially distressed city.
        "Eligible employer" means an individual, partnership,
    corporation, or other entity that employs full-time
    employees within a river edge redevelopment zone that is
    located within a municipality designated as a financially
    distressed city.
        "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 eligible
    employer 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.
        "Incremental income tax" means the total amount
    withheld from the compensation of new employees under
    Article 7 of the Illinois Income Tax Act arising from
    employment by an eligible employer.
        "Infrastructure" means roads, access roads, streets,
    bridges, sidewalks, water and sewer line extensions, water
    distribution and purification facilities, waste disposal
    systems, sewage treatment facilities, stormwater drainage
    and retention facilities, gas and electric utility line
    extensions, or other improvements that are essential to the
    development of the project that is the subject of an
    agreement.
        "New employee" means a full-time employee first
    employed by an eligible employer in the project that is the
    subject of an agreement between the Department and an
    eligible developer and who is hired after the eligible
    developer enters into the agreement, but does not include:
            (1) an employee of the eligible employer who
        performs a job that (i) existed for at least 6 months
        before the employee was hired and (ii) was previously
        performed by another employee;
            (2) an employee of the eligible employer who was
        previously employed in Illinois by a related member of
        the eligible employer and whose employment was shifted
        to the eligible employer after the eligible employer
        entered into the agreement; or
            (3) 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 an
        indirect ownership interest of at least 5% in the
        profits, capital, or value of the eligible employer.
        Notwithstanding item (2) of this definition, an
    employee may be considered a new employee under the
    agreement if the employee performs a job that was
    previously performed by an employee who was:
            (A) treated under the agreement as a new employee;
        and
            (B) promoted by the eligible employer to another
        job.
        "Professional Employer Organization" (PEO) means an
    employee leasing company, as defined in Section
    206.1(A)(2) of the Illinois Unemployment Insurance Act.
        "Related member" means a person or entity that, with
    respect to the eligible employer 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
        eligible employer's outstanding stock;
            (2) a partnership, estate, or trust and any partner
        or beneficiary, if the partnership, estate, or trust,
        and its partners or beneficiaries own directly,
        indirectly, or beneficially, or constructively, in the
        aggregate, at least 50% of the profits, capital, stock,
        or value of the eligible employer;
            (3) a corporation, and any party related to the
        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 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 eligible
        employer; or
            (5) a person to or from whom there is 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 definition, 20% shall be substituted for 5%
        wherever 5% appears in Section 1563(e) of the Internal
        Revenue Code.
    (c) The Riverfront Development Fund. The Riverfront
Development Fund is created as a special fund in the State
treasury. As soon as possible after the first day of each
month, upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Riverfront
Development Fund an amount equal to the incremental income tax
for the previous month attributable to a project that is the
subject of an agreement. The total amount transferred under
this subsection may not exceed $3,000,000 in any State fiscal
year.
    (d) Grants from the Riverfront Development Fund. In State
fiscal years 2015 through 2021, all moneys in the Riverfront
Development Fund, held solely for the benefit of eligible
developers, shall be appropriated to the Department to make
infrastructure grants to eligible developers pursuant to
agreements.
    (e) Limitation on grant amounts. The total aggregate amount
of grants awarded to all eligible developers shall not exceed
$3,000,000 in each State fiscal year. The total amount of a
grant awarded to an eligible developer shall not exceed the
total amount of infrastructure costs incurred by that eligible
developer with respect to a project that is the subject of an
agreement. No eligible developer shall receive moneys that are
attributable to a project that is not the subject of the
developer's agreement with the Department.
    (f) Agreements with applicants. The Department shall enter
into an agreement with an eligible developer who is entitled to
grants under this Section. The agreement must include all of
the following:
        (1) A detailed description of the project that is the
    subject of the agreement, including the location of the
    project, the number of jobs created by the project, and
    project costs. For purposes of this subsection, "project
    costs" includes the costs of the project incurred or to be
    incurred by the eligible developer, including
    infrastructure costs, but excludes the value of State or
    local incentives, including tax increment financing and
    deductions, credits, or exemptions afforded to an employer
    located in an enterprise zone.
        (2) A requirement that the eligible developer shall
    maintain operations at the project location, stated as a
    minimum number of years not to exceed 10 years.
        (3) A specific method for determining the number of new
    employees attributable to the project.
        (4) A requirement that the eligible developer shall
    report monthly to the Department and the Department of
    Revenue the number of new employees and the incremental
    income tax withheld in connection with the new employees.
        (5) A requirement that the Department is authorized to
    verify with the Department of Revenue the amounts reported
    under paragraph (4).
 
    Section 5-67. The Metropolitan Pier and Exposition
Authority Act is amended by changing Sections 5, 5.4, and 13.2
as follows:
 
    (70 ILCS 210/5)  (from Ch. 85, par. 1225)
    Sec. 5. The Metropolitan Pier and Exposition Authority
shall also have the following rights and powers:
        (a) To accept from Chicago Park Fair, a corporation, an
    assignment of whatever sums of money it may have received
    from the Fair and Exposition Fund, allocated by the
    Department of Agriculture of the State of Illinois, and
    Chicago Park Fair is hereby authorized to assign, set over
    and transfer any of those funds to the Metropolitan Pier
    and Exposition Authority. The Authority has the right and
    power hereafter to receive sums as may be distributed to it
    by the Department of Agriculture of the State of Illinois
    from the Fair and Exposition Fund pursuant to the
    provisions of Sections 5, 6i, and 28 of the State Finance
    Act. All sums received by the Authority shall be held in
    the sole custody of the secretary-treasurer of the
    Metropolitan Pier and Exposition Board.
        (b) To accept the assignment of, assume and execute any
    contracts heretofore entered into by Chicago Park Fair.
        (c) To acquire, own, construct, equip, lease, operate
    and maintain grounds, buildings and facilities to carry out
    its corporate purposes and duties, and to carry out or
    otherwise provide for the recreational, cultural,
    commercial or residential development of Navy Pier, and to
    fix and collect just, reasonable and nondiscriminatory
    charges for the use thereof. The charges so collected shall
    be made available to defray the reasonable expenses of the
    Authority and to pay the principal of and the interest upon
    any revenue bonds issued by the Authority. The Authority
    shall be subject to and comply with the Lake Michigan and
    Chicago Lakefront Protection Ordinance, the Chicago
    Building Code, the Chicago Zoning Ordinance, and all
    ordinances and regulations of the City of Chicago contained
    in the following Titles of the Municipal Code of Chicago:
    Businesses, Occupations and Consumer Protection; Health
    and Safety; Fire Prevention; Public Peace, Morals and
    Welfare; Utilities and Environmental Protection; Streets,
    Public Ways, Parks, Airports and Harbors; Electrical
    Equipment and Installation; Housing and Economic
    Development (only Chapter 5-4 thereof); and Revenue and
    Finance (only so far as such Title pertains to the
    Authority's duty to collect taxes on behalf of the City of
    Chicago).
        (d) To enter into contracts treating in any manner with
    the objects and purposes of this Act.
        (e) To lease any buildings to the Adjutant General of
    the State of Illinois for the use of the Illinois National
    Guard or the Illinois Naval Militia.
        (f) To exercise the right of eminent domain by
    condemnation proceedings in the manner provided by the
    Eminent Domain Act, including, with respect to Site B only,
    the authority to exercise quick take condemnation by
    immediate vesting of title under Article 20 of the Eminent
    Domain Act, to acquire any privately owned real or personal
    property and, with respect to Site B only, public property
    used for rail transportation purposes (but no such taking
    of such public property shall, in the reasonable judgment
    of the owner, interfere with such rail transportation) for
    the lawful purposes of the Authority in Site A, at Navy
    Pier, and at Site B. Just compensation for property taken
    or acquired under this paragraph shall be paid in money or,
    notwithstanding any other provision of this Act and with
    the agreement of the owner of the property to be taken or
    acquired, the Authority may convey substitute property or
    interests in property or enter into agreements with the
    property owner, including leases, licenses, or
    concessions, with respect to any property owned by the
    Authority, or may provide for other lawful forms of just
    compensation to the owner. Any property acquired in
    condemnation proceedings shall be used only as provided in
    this Act. Except as otherwise provided by law, the City of
    Chicago shall have a right of first refusal prior to any
    sale of any such property by the Authority to a third party
    other than substitute property. The Authority shall
    develop and implement a relocation plan for businesses
    displaced as a result of the Authority's acquisition of
    property. The relocation plan shall be substantially
    similar to provisions of the Uniform Relocation Assistance
    and Real Property Acquisition Act and regulations
    promulgated under that Act relating to assistance to
    displaced businesses. To implement the relocation plan the
    Authority may acquire property by purchase or gift or may
    exercise the powers authorized in this subsection (f),
    except the immediate vesting of title under Article 20 of
    the Eminent Domain Act, to acquire substitute private
    property within one mile of Site B for the benefit of
    displaced businesses located on property being acquired by
    the Authority. However, no such substitute property may be
    acquired by the Authority unless the mayor of the
    municipality in which the property is located certifies in
    writing that the acquisition is consistent with the
    municipality's land use and economic development policies
    and goals. The acquisition of substitute property is
    declared to be for public use. In exercising the powers
    authorized in this subsection (f), the Authority shall use
    its best efforts to relocate businesses within the area of
    McCormick Place or, failing that, within the City of
    Chicago.
        (g) To enter into contracts relating to construction
    projects which provide for the delivery by the contractor
    of a completed project, structure, improvement, or
    specific portion thereof, for a fixed maximum price, which
    contract may provide that the delivery of the project,
    structure, improvement, or specific portion thereof, for
    the fixed maximum price is insured or guaranteed by a third
    party capable of completing the construction.
        (h) To enter into agreements with any person with
    respect to the use and occupancy of the grounds, buildings,
    and facilities of the Authority, including concession,
    license, and lease agreements on terms and conditions as
    the Authority determines. Notwithstanding Section 24,
    agreements with respect to the use and occupancy of the
    grounds, buildings, and facilities of the Authority for a
    term of more than one year shall be entered into in
    accordance with the procurement process provided for in
    Section 25.1.
        (i) To enter into agreements with any person with
    respect to the operation and management of the grounds,
    buildings, and facilities of the Authority or the provision
    of goods and services on terms and conditions as the
    Authority determines.
        (j) After conducting the procurement process provided
    for in Section 25.1, to enter into one or more contracts to
    provide for the design and construction of all or part of
    the Authority's Expansion Project grounds, buildings, and
    facilities. Any contract for design and construction of the
    Expansion Project shall be in the form authorized by
    subsection (g), shall be for a fixed maximum price not in
    excess of the funds that are authorized to be made
    available for those purposes during the term of the
    contract, and shall be entered into before commencement of
    construction.
        (k) To enter into agreements, including project
    agreements with labor unions, that the Authority deems
    necessary to complete the Expansion Project or any other
    construction or improvement project in the most timely and
    efficient manner and without strikes, picketing, or other
    actions that might cause disruption or delay and thereby
    add to the cost of the project.
        (l) To provide incentives to organizations and
    entities that agree to make use of the grounds, buildings,
    and facilities of the Authority for conventions, meetings,
    or trade shows. The incentives may take the form of
    discounts from regular fees charged by the Authority,
    subsidies for or assumption of the costs incurred with
    respect to the convention, meeting, or trade show, or other
    inducements. The Authority shall award incentives to
    attract large conventions, meetings, and trade shows to its
    facilities under the terms set forth in this subsection (l)
    from amounts appropriated to the Authority from the
    Metropolitan Pier and Exposition Authority Incentive Fund
    for this purpose.
        No later than May 15 of each year, the Chief Executive
    Officer of the Metropolitan Pier and Exposition Authority
    shall certify to the State Comptroller and the State
    Treasurer the amounts of incentive grant funds used during
    the current fiscal year to provide incentives for
    conventions, meetings, or trade shows that (i) have been
    approved by the Authority, in consultation with an
    organization meeting the qualifications set out in Section
    5.6 of this Act, provided the Authority has entered into a
    marketing agreement with such an organization, (ii)
    demonstrate registered attendance in excess of 5,000
    individuals or in excess of 10,000 individuals, as
    appropriate, and (iii) but for the incentive, would not
    have used the facilities of the Authority for the
    convention, meeting, or trade show. The State Comptroller
    may request that the Auditor General conduct an audit of
    the accuracy of the certification. If the State Comptroller
    determines by this process of certification that incentive
    funds, in whole or in part, were disbursed by the Authority
    by means other than in accordance with the standards of
    this subsection (l), then any amount transferred to the
    Metropolitan Pier and Exposition Authority Incentive Fund
    shall be reduced during the next subsequent transfer in
    direct proportion to that amount determined to be in
    violation of the terms set forth in this subsection (l).
        On July 15, 2012, the Comptroller shall order
    transferred, and the Treasurer shall transfer, into the
    Metropolitan Pier and Exposition Authority Incentive Fund
    from the General Revenue Fund the sum of $7,500,000 plus an
    amount equal to the incentive grant funds certified by the
    Chief Executive Officer as having been lawfully paid under
    the provisions of this Section in the previous 2 fiscal
    years that have not otherwise been transferred into the
    Metropolitan Pier and Exposition Authority Incentive Fund,
    provided that transfers in excess of $15,000,000 shall not
    be made in any fiscal year.
        On July 15, 2013, the Comptroller shall order
    transferred, and the Treasurer shall transfer, into the
    Metropolitan Pier and Exposition Authority Incentive Fund
    from the General Revenue Fund the sum of $7,500,000 plus an
    amount equal to the incentive grant funds certified by the
    Chief Executive Officer as having been lawfully paid under
    the provisions of this Section in the previous fiscal year
    that have not otherwise been transferred into the
    Metropolitan Pier and Exposition Authority Incentive Fund,
    provided that transfers in excess of $15,000,000 shall not
    be made in any fiscal year.
        On July 15, 2014, and every year thereafter, the
    Comptroller shall order transferred, and the Treasurer
    shall transfer, into the Metropolitan Pier and Exposition
    Authority Incentive Fund from the General Revenue Fund an
    amount equal to the incentive grant funds certified by the
    Chief Executive Officer as having been lawfully paid under
    the provisions of this Section in the previous fiscal year
    that have not otherwise been transferred into the
    Metropolitan Pier and Exposition Authority Incentive Fund,
    provided that transfers in excess of $15,000,000 shall not
    be made in any fiscal year.
        After a transfer has been made under this subsection
    (l), the Chief Executive Officer shall file a request for
    payment with the Comptroller evidencing that the incentive
    grants have been made and the Comptroller shall thereafter
    order paid, and the Treasurer shall pay, the requested
    amounts to the Metropolitan Pier and Exposition Authority.
         In no case shall more than $5,000,000 be used in any
    one year by the Authority for incentives granted
    conventions, meetings, or trade shows with a registered
    attendance of more than 5,000 and less than 10,000. Amounts
    in the Metropolitan Pier and Exposition Authority
    Incentive Fund shall only be used by the Authority for
    incentives paid to attract large conventions, meetings,
    and trade shows to its facilities as provided in this
    subsection (l).
        (l-5) The Village of Rosemont shall provide incentives
    from amounts transferred into the Convention Center
    Support Fund to retain and attract conventions, meetings,
    or trade shows to the Donald E. Stephens Convention Center
    under the terms set forth in this subsection (l-5).
        No later than May 15 of each year, the Mayor of the
    Village of Rosemont or his or her designee shall certify to
    the State Comptroller and the State Treasurer the amounts
    of incentive grant funds used during the previous fiscal
    year to provide incentives for conventions, meetings, or
    trade shows that (1) have been approved by the Village, (2)
    demonstrate registered attendance in excess of 5,000
    individuals, and (3) but for the incentive, would not have
    used the Donald E. Stephens Convention Center facilities
    for the convention, meeting, or trade show. The State
    Comptroller may request that the Auditor General conduct an
    audit of the accuracy of the certification.
        If the State Comptroller determines by this process of
    certification that incentive funds, in whole or in part,
    were disbursed by the Village by means other than in
    accordance with the standards of this subsection (l-5),
    then the amount transferred to the Convention Center
    Support Fund shall be reduced during the next subsequent
    transfer in direct proportion to that amount determined to
    be in violation of the terms set forth in this subsection
    (l-5).
        On July 15, 2012, and each year thereafter, the
    Comptroller shall order transferred, and the Treasurer
    shall transfer, into the Convention Center Support Fund
    from the General Revenue Fund the amount of $5,000,000 for
    (i) incentives to attract large conventions, meetings, and
    trade shows to the Donald E. Stephens Convention Center,
    and (ii) to be used by the Village of Rosemont for the
    repair, maintenance, and improvement of the Donald E.
    Stephens Convention Center and for debt service on debt
    instruments issued for those purposes by the village. No
    later than 30 days after the transfer, the Comptroller
    shall order paid, and the Treasurer shall pay, to the
    Village of Rosemont the amounts transferred.
        (m) To enter into contracts with any person conveying
    the naming rights or other intellectual property rights
    with respect to the grounds, buildings, and facilities of
    the Authority.
        (n) To enter into grant agreements with the Chicago
    Convention and Tourism Bureau providing for the marketing
    of the convention facilities to large and small
    conventions, meetings, and trade shows and the promotion of
    the travel industry in the City of Chicago, provided such
    agreements meet the requirements of Section 5.6 of this
    Act. Receipts of the Authority from the increase in the
    airport departure tax authorized by Section 13(f) of this
    amendatory Act of the 96th General Assembly and, subject to
    appropriation to the Authority, funds deposited in the
    Chicago Travel Industry Promotion Fund pursuant to Section
    6 of the Hotel Operators' Occupation Tax Act shall be
    granted to the Bureau for such purposes.
    Nothing in this Act shall be construed to authorize the
Authority to spend the proceeds of any bonds or notes issued
under Section 13.2 or any taxes levied under Section 13 to
construct a stadium to be leased to or used by professional
sports teams.
(Source: P.A. 96-739, eff. 1-1-10; 96-898, eff. 5-27-10;
97-617, eff. 10-26-11.)
 
    (70 ILCS 210/5.4)
    Sec. 5.4. Exhibitor rights and work rule reforms.
 
(a) Legislative findings.
        (1) The Authority is a political subdivision of the
    State of Illinois subject to the plenary authority of the
    General Assembly and was created for the benefit of the
    general public to promote business, industry, commerce,
    and tourism within the City of Chicago and the State of
    Illinois.
        (2) The Authority owns and operates McCormick Place and
    Navy Pier, which have collectively 2.8 million square feet
    of exhibit hall space, 700,000 square feet of meeting room
    space.
        (3) The Authority is a vital economic engine that
    annually generates 65,000 jobs and $8 billion of economic
    activity for the State of Illinois through the trade shows,
    conventions, and other meetings held and attended at
    McCormick Place and Navy Pier.
        (4) The Authority supports the operation of McCormick
    Place and Navy Pier through not only fees on the rental of
    exhibit and meeting room space, electrical and utility
    service, food and beverage services, and parking, but also
    hotel room rates paid by persons staying at the
    Authority-owned hotel.
        (5) The Authority has a compelling and proprietary
    interest in the success, competitiveness, and continued
    viability of McCormick Place and Navy Pier as the owner and
    operator of the convention facilities and its obligation to
    ensure that these facilities produce sufficient operating
    revenues.
        (6) The Authority's convention facilities were
    constructed and renovated through the issuance of public
    bonds that are directly repaid by State hotel, auto rental,
    food and beverage, and airport and departure taxes paid
    principally by persons who attend, work at, exhibit, and
    provide goods and services to conventions, shows,
    exhibitions, and meetings at McCormick Place and Navy Pier.
        (7) State law also dedicates State occupation and use
    tax revenues to fulfill debt service obligations on these
    bonds should State hotel, auto rental, food and beverage,
    and airport and departure taxes fail to generate sufficient
    revenue.
        (8) Through fiscal year 2010, $55 million in State
    occupation and use taxes will have been allocated to make
    debt service payments on the Authority's bonds due to
    shortfalls in State hotel, auto rental, food and beverage,
    and airport and departure taxes. These shortfalls are
    expected to continue in future fiscal years and would
    require the annual dedication of approximately $40 million
    in State occupation and use taxes to fulfill debt service
    payments.
        (9) In 2009, managers of the International Plastics
    Showcase announced that 2009 was the last year they would
    host their exhibition at McCormick Place, as they had since
    1971, because union labor work rules and electric and food
    service costs make it uneconomical for the show managers
    and exhibitors to use McCormick Place as a convention venue
    as compared to convention facilities in Orlando, Florida
    and Las Vegas, Nevada. The exhibition used over 740,000
    square feet of exhibit space, attracted over 43,000
    attendees, generated $4.8 million of revenues to McCormick
    Place, and raised over $200,000 in taxes to pay debt
    service on convention facility bonds.
        (10) After the International Plastics Showcase
    exhibition announced its departure, other conventions and
    exhibitions managers and exhibitors also stated that they
    would not return to McCormick Place and Navy Pier for the
    same reasons cited by the International Plastics Showcase
    exhibition. In addition, still other managers and
    exhibitors stated that they would not select McCormick
    Place as a convention venue unless the union labor work
    rules and electrical and food service costs were made
    competitive with those in Orlando and Las Vegas.
        (11) The General Assembly created the Joint Committee
    on the Metropolitan Pier and Exposition Authority to
    conduct hearings and obtain facts to determine how union
    labor work rules and electrical and food service costs make
    McCormick Place and Navy Pier uneconomical as a convention
    venue.
        (12) Witness testimony and fact-gathering revealed
    that while the skilled labor provided by trade unions at
    McCormick Place and Navy Pier is second to none and is
    actually "exported" to work on conventions and exhibitions
    held in Orlando and Las Vegas, restrictive work rules on
    the activities show exhibitors may perform present
    exhibitors and show managers with an uninviting atmosphere
    and result in significantly higher costs than competing
    convention facilities.
        (13) Witness testimony and fact-gathering also
    revealed that the mark-up on electrical and food service
    imposed by the Authority to generate operating revenue for
    McCormick Place and Navy Pier also substantially increased
    exhibitor and show organizer costs to the point of excess
    when compared to competing convention facilities.
        (14) Witness testimony and fact-gathering further
    revealed that the additional departure of conventions,
    exhibitions, and trade shows from Authority facilities
    threatens the continued economic viability of these
    facilities and the stability of sufficient tax revenues
    necessary to support debt service.
        (15) In order to safeguard the Authority's and State of
    Illinois' shared compelling and proprietary interests in
    McCormick Place and Navy Pier and in response to local
    economic needs, the provisions contained in this Section
    set forth mandated changes and reforms to restore and
    ensure that (i) the Authority's facilities remain
    economically competitive with other convention venues and
    (ii) conventions, exhibitions, trade shows, and other
    meetings are attracted to and retained at Authority
    facilities by producing an exhibitor-friendly environment
    and by reducing costs for exhibitors and show managers.
        (16) The provisions set forth in this Section are
    reasonable, necessary, and narrowly tailored to safeguard
    the Authority's and State of Illinois' shared and
    compelling proprietary interests and respond to local
    economic needs as compared to the available alternative set
    forth in House Bill 4900 of the 96th General Assembly and
    proposals submitted to the Joint Committee on the
    Metropolitan Pier and Exposition Authority. Action by the
    State offers the only comprehensive means to remedy the
    circumstances set forth in these findings, despite the
    concerted and laudable voluntary efforts of the Authority,
    labor unions, show contractors, show managers, and
    exhibitors.
 
(b) Definitions. As used in this Section:
        "Booth" means the demarcated exhibit space of an
    exhibitor on Authority premises.
        "Contractor" or "show contractor" means any person who
    contracts with the Authority, an exhibitor, or with the
    manager of a show to provide any services related to
    drayage, rigging, carpentry, decorating, electrical,
    maintenance, mechanical, and food and beverage services or
    related trades and duties for shows on Authority premises.
        "Exhibitor" or "show exhibitor" means any person who
    contracts with the Authority or with a manager or
    contractor of a show held or to be held on Authority
    premises.
        "Exhibitor employee" means any person who has been
    employed by the exhibitor as a full-time employee for a
    minimum of 6 months before the show's opening date.
        "Hand tools" means cordless tools, power tools, and
    other tools as determined by the Authority.
        "Licensee" means any entity that uses the Authority's
    premises.
        "Manager" or "show manager" means any person that owns
    or manages a show held or to be held on Authority premises.
        "Personally owned vehicles" means the vehicles owned
    by show exhibitors or the show management, excluding
    commercially registered trucks, vans, and other vehicles
    as determined by the Authority.
        "Premises" means grounds, buildings, and facilities of
    the Authority.
        "Show" means a convention, exposition, trade show,
    event, or meeting held on Authority premises by a show
    manager or show contractor on behalf of a show manager.
        "2011 Settlement Agreement" means the agreement that
    the Authority made and entered into with the Chicago
    Regional Council of Carpenters, not including any
    revisions or amendments, and filed with the Illinois
    Secretary of State Index Department and designated as
    97-GA-A01.
        "Union employees" means workers represented by a labor
    organization, as defined in the National Labor Relations
    Act, providing skilled labor services to exhibitors, a show
    manager, or a show contractor on Authority premises.
 
(c) Exhibitor rights.
        In order to control costs, increase the
    competitiveness, and promote and provide for the economic
    stability of Authority premises, all Authority contracts
    with exhibitors, contractors, and managers shall include
    the following minimum terms and conditions:
        (1) Consistent with safety and the skills and training
    necessary to perform the task, as determined by the
    Authority, an exhibitor and exhibitor employees are
    permitted in a booth of any size with the use of the
    exhibitor's ladders and hand tools to:
            (i) set-up and dismantle exhibits displayed on
        Authority premises;
            (ii) assemble and disassemble materials,
        machinery, or equipment on Authority premises; and
            (iii) install all signs, graphics, props,
        balloons, other decorative items, and the exhibitor's
        own drapery, including the skirting of exhibitor
        tables, on the Authority's premises.
        (2) An exhibitor and exhibitor employees are permitted
    in a booth of any size to deliver, set-up, plug in,
    interconnect, and operate an exhibitor's electrical
    equipment, computers, audio-visual devices, and other
    equipment.
        (3) An exhibitor and exhibitor employees are permitted
    in a booth of any size to skid, position, and re-skid all
    exhibitor material, machinery, and equipment on Authority
    premises.
        (4) An exhibitor and exhibitor employees are
    prohibited at any time from using scooters, forklifts,
    pallet jacks, condors, scissors lifts, motorized dollies,
    or similar motorized or hydraulic equipment on Authority
    premises.
        (5) The Authority shall designate areas, in its
    discretion, where exhibitors may unload and load exhibitor
    materials from privately owned vehicles at Authority
    premises with the use of non-motorized hand trucks and
    dollies.
        (6) On Monday through Friday for any consecutive 8-hour
    period during the hours of 6:00 a.m. and 10:00 p.m., union
    employees on Authority premises shall be paid
    straight-time hourly wages plus fringe benefits. Union
    employees shall be paid straight-time and a half hourly
    wages plus fringe benefits for labor services provided
    after any consecutive 8-hour period; provided, however,
    that between the hours of midnight and 6:00 a.m. union
    employees shall be paid double straight-time wages plus
    fringe benefits for labor services.
        (7) On Monday through Friday for any consecutive 8-hour
    period during the hours of 6:00 a.m. and 10:00 p.m., a show
    manager or contractor shall charge an exhibitor only for
    labor services provided by union employees on Authority
    premises based on straight-time hourly wages plus fringe
    benefits along with a reasonable mark-up. After any
    consecutive 8-hour period, a show manager or contractor
    shall charge an exhibitor only for labor services provided
    by union employees based on straight-time and a half hourly
    wages plus fringe benefits along with a reasonable mark-up;
    provided, however, that between the hours of midnight and
    6:00 a.m. a show manager or contractor shall charge an
    exhibitor only for labor services provided by union
    employees based on double straight-time wages plus fringe
    benefits along with a reasonable mark-up.
        (8) (Blank).
        (9) (Blank).
        (10) (Blank).
        (11) (Blank).
        (12) The Authority has the power to determine, after
    consultation with the Advisory Council, the work
    jurisdiction and scope of work of union employees on
    Authority premises during the move-in, move-out, and run of
    a show, provided that any affected labor organization may
    contest the Authority's determination through a binding
    decision of an independent, third-party arbitrator. When
    making the determination, the Authority or arbitrator, as
    the case may be, shall consider the training and skills
    required to perform the task, past practices on Authority
    premises, safety, and the need for efficiency and exhibitor
    satisfaction. These factors shall be considered in their
    totality and not in isolation. The Authority's
    determination must be made in writing, set forth an
    explanation and statement of the reason or reasons
    supporting the determination, and be provided to each
    affected labor organization. The changes in this item (12)
    by this amendatory Act of the 97th General Assembly are
    declarative of existing law and shall not be construed as a
    new enactment. Nothing in this item