Rep. Stephanie A. Kifowit

Filed: 4/11/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5172

2    AMENDMENT NO. ______. Amend House Bill 5172 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth and expansion of the
10private sector through large scale investment and development
11projects, the Department is authorized to receive and approve
12applications for the designation of "High Impact Businesses" in
13Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of

 

 

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1    designation, in an enterprise zone designated pursuant to
2    this Act;
3        (3) the business intends to do one or more of the
4    following:
5            (A) the business intends to make a minimum
6        investment of $12,000,000 which will be placed in
7        service in qualified property and intends to create 500
8        full-time equivalent jobs at a designated location in
9        Illinois or intends to make a minimum investment of
10        $30,000,000 which will be placed in service in
11        qualified property and intends to retain 1,500
12        full-time retained jobs at a designated location in
13        Illinois. The business must certify in writing that the
14        investments would not be placed in service in qualified
15        property and the job creation or job retention would
16        not occur without the tax credits and exemptions set
17        forth in subsection (b) of this Section. The terms
18        "placed in service" and "qualified property" have the
19        same meanings as described in subsection (h) of Section
20        201 of the Illinois Income Tax Act; or
21            (B) the business intends to establish a new
22        electric generating facility at a designated location
23        in Illinois. "New electric generating facility", for
24        purposes of this Section, means a newly-constructed
25        electric generation plant or a newly-constructed
26        generation capacity expansion at an existing electric

 

 

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1        generation plant, including the transmission lines and
2        associated equipment that transfers electricity from
3        points of supply to points of delivery, and for which
4        such new foundation construction commenced not sooner
5        than July 1, 2001. Such facility shall be designed to
6        provide baseload electric generation and shall operate
7        on a continuous basis throughout the year; and (i)
8        shall have an aggregate rated generating capacity of at
9        least 1,000 megawatts for all new units at one site if
10        it uses natural gas as its primary fuel and foundation
11        construction of the facility is commenced on or before
12        December 31, 2004, or shall have an aggregate rated
13        generating capacity of at least 400 megawatts for all
14        new units at one site if it uses coal or gases derived
15        from coal as its primary fuel and shall support the
16        creation of at least 150 new Illinois coal mining jobs,
17        or (ii) shall be funded through a federal Department of
18        Energy grant before December 31, 2010 and shall support
19        the creation of Illinois coal-mining jobs, or (iii)
20        shall use coal gasification or integrated
21        gasification-combined cycle units that generate
22        electricity or chemicals, or both, and shall support
23        the creation of Illinois coal-mining jobs. The
24        business must certify in writing that the investments
25        necessary to establish a new electric generating
26        facility would not be placed in service and the job

 

 

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1        creation in the case of a coal-fueled plant would not
2        occur without the tax credits and exemptions set forth
3        in subsection (b-5) of this Section. The term "placed
4        in service" has the same meaning as described in
5        subsection (h) of Section 201 of the Illinois Income
6        Tax Act; or
7            (B-5) the business intends to establish a new
8        gasification facility at a designated location in
9        Illinois. As used in this Section, "new gasification
10        facility" means a newly constructed coal gasification
11        facility that generates chemical feedstocks or
12        transportation fuels derived from coal (which may
13        include, but are not limited to, methane, methanol, and
14        nitrogen fertilizer), that supports the creation or
15        retention of Illinois coal-mining jobs, and that
16        qualifies for financial assistance from the Department
17        before December 31, 2010. A new gasification facility
18        does not include a pilot project located within
19        Jefferson County or within a county adjacent to
20        Jefferson County for synthetic natural gas from coal;
21        or
22            (C) the business intends to establish production
23        operations at a new coal mine, re-establish production
24        operations at a closed coal mine, or expand production
25        at an existing coal mine at a designated location in
26        Illinois not sooner than July 1, 2001; provided that

 

 

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1        the production operations result in the creation of 150
2        new Illinois coal mining jobs as described in
3        subdivision (a)(3)(B) of this Section, and further
4        provided that the coal extracted from such mine is
5        utilized as the predominant source for a new electric
6        generating facility. The business must certify in
7        writing that the investments necessary to establish a
8        new, expanded, or reopened coal mine would not be
9        placed in service and the job creation would not occur
10        without the tax credits and exemptions set forth in
11        subsection (b-5) of this Section. The term "placed in
12        service" has the same meaning as described in
13        subsection (h) of Section 201 of the Illinois Income
14        Tax Act; or
15            (D) the business intends to construct new
16        transmission facilities or upgrade existing
17        transmission facilities at designated locations in
18        Illinois, for which construction commenced not sooner
19        than July 1, 2001. For the purposes of this Section,
20        "transmission facilities" means transmission lines
21        with a voltage rating of 115 kilovolts or above,
22        including associated equipment, that transfer
23        electricity from points of supply to points of delivery
24        and that transmit a majority of the electricity
25        generated by a new electric generating facility
26        designated as a High Impact Business in accordance with

 

 

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1        this Section. The business must certify in writing that
2        the investments necessary to construct new
3        transmission facilities or upgrade existing
4        transmission facilities would not be placed in service
5        without the tax credits and exemptions set forth in
6        subsection (b-5) of this Section. The term "placed in
7        service" has the same meaning as described in
8        subsection (h) of Section 201 of the Illinois Income
9        Tax Act; or
10            (E) the business intends to establish a new wind
11        power facility at a designated location in Illinois.
12        For purposes of this Section, "new wind power facility"
13        means a newly constructed electric generation
14        facility, or a newly constructed expansion of an
15        existing electric generation facility, placed in
16        service on or after July 1, 2009, that generates
17        electricity using wind energy devices, and such
18        facility shall be deemed to include all associated
19        transmission lines, substations, and other equipment
20        related to the generation of electricity from wind
21        energy devices. For purposes of this Section, "wind
22        energy device" means any device, with a nameplate
23        capacity of at least 0.5 megawatts, that is used in the
24        process of converting kinetic energy from the wind to
25        generate electricity; or
26            (F) the business commits to (i) make a minimum

 

 

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1        investment of $500,000,000, which will be placed in
2        service in a qualified property, (ii) create 125
3        full-time equivalent jobs at a designated location in
4        Illinois, (iii) establish a fertilizer plant at a
5        designated location in Illinois that complies with the
6        set-back standards as described in Table 1: Initial
7        Isolation and Protective Action Distances in the 2012
8        Emergency Response Guidebook published by the United
9        States Department of Transportation, (iv) pay a
10        prevailing wage for employees at that location who are
11        engaged in construction activities, and (v) secure an
12        appropriate level of general liability insurance to
13        protect against catastrophic failure of the fertilizer
14        plant or any of its constituent systems; in addition,
15        the business must agree to enter into a construction
16        project labor agreement including provisions
17        establishing wages, benefits, and other compensation
18        for employees performing work under the project labor
19        agreement at that location; for the purposes of this
20        Section, "fertilizer plant" means a newly constructed
21        or upgraded plant utilizing gas used in the production
22        of anhydrous ammonia and downstream nitrogen
23        fertilizer products for resale; for the purposes of
24        this Section, "prevailing wage" means the hourly cash
25        wages plus fringe benefits for training and
26        apprenticeship programs approved by the U.S.

 

 

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1        Department of Labor, Bureau of Apprenticeship and
2        Training, health and welfare, insurance, vacations and
3        pensions paid generally, in the locality in which the
4        work is being performed, to employees engaged in work
5        of a similar character on public works; this paragraph
6        (F) applies only to businesses that submit an
7        application to the Department within 60 days after the
8        effective date of this amendatory Act of the 98th
9        General Assembly; or and
10            (G) the business intends to establish a new
11        qualified hydroponics facility or expand production at
12        an existing qualified hydroponics facility to engage
13        in the practice of hydroponics, provided that the
14        production operations result in the creation of at
15        least 25 full-time-equivalent Illinois jobs; for the
16        purposes of this paragraph:
17                "hydroponics" means a system in which
18            water-soluble nutrients are placed in intimate
19            contact with a plant's root system, being grown in
20            an inert supportive medium, which inert supportive
21            medium itself supplies physical support for the
22            roots and does not add or subtract plant nutrients;
23            and
24                "qualified hydroponics facility" means real
25            property used for an indoor agriculture production
26            operation using hydroponics techniques or

 

 

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1            practices for growing plants produced by
2            agriculture that are useful for human beings,
3            including, but not limited to, forages, field
4            crops, sod, berries, herbs, fruits, vegetables,
5            flowers, seeds, and nursery stock; "qualified
6            hydroponics facility" does not include an indoor
7            agriculture production operation for growing
8            plants that are illegal under federal law; and
9        (4) no later than 90 days after an application is
10    submitted, the Department shall notify the applicant of the
11    Department's determination of the qualification of the
12    proposed High Impact Business under this Section.
13    (b) Businesses designated as High Impact Businesses
14pursuant to subdivision (a)(3)(A) of this Section shall qualify
15for the credits and exemptions described in the following Acts:
16Section 9-222 and Section 9-222.1A of the Public Utilities Act,
17subsection (h) of Section 201 of the Illinois Income Tax Act,
18and Section 1d of the Retailers' Occupation Tax Act; provided
19that these credits and exemptions described in these Acts shall
20not be authorized until the minimum investments set forth in
21subdivision (a)(3)(A) of this Section have been placed in
22service in qualified properties and, in the case of the
23exemptions described in the Public Utilities Act and Section 1d
24of the Retailers' Occupation Tax Act, the minimum full-time
25equivalent jobs or full-time retained jobs set forth in
26subdivision (a)(3)(A) of this Section have been created or

 

 

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1retained. Businesses designated as High Impact Businesses
2under this Section shall also qualify for the exemption
3described in Section 5l of the Retailers' Occupation Tax Act.
4The credit provided in subsection (h) of Section 201 of the
5Illinois Income Tax Act shall be applicable to investments in
6qualified property as set forth in subdivision (a)(3)(A) of
7this Section.
8    (b-5) Businesses designated as High Impact Businesses
9pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
10and (a)(3)(D) of this Section shall qualify for the credits and
11exemptions described in the following Acts: Section 51 of the
12Retailers' Occupation Tax Act, Section 9-222 and Section
139-222.1A of the Public Utilities Act, and subsection (h) of
14Section 201 of the Illinois Income Tax Act; however, the
15credits and exemptions authorized under Section 9-222 and
16Section 9-222.1A of the Public Utilities Act, and subsection
17(h) of Section 201 of the Illinois Income Tax Act shall not be
18authorized until the new electric generating facility, the new
19gasification facility, the new transmission facility, or the
20new, expanded, or reopened coal mine is operational, except
21that a new electric generating facility whose primary fuel
22source is natural gas is eligible only for the exemption under
23Section 5l of the Retailers' Occupation Tax Act.
24    (b-6) Businesses designated as High Impact Businesses
25pursuant to subdivision (a)(3)(E) of this Section shall qualify
26for the exemptions described in Section 5l of the Retailers'

 

 

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1Occupation Tax Act; any business so designated as a High Impact
2Business being, for purposes of this Section, a "Wind Energy
3Business".
4    (c) High Impact Businesses located in federally designated
5foreign trade zones or sub-zones are also eligible for
6additional credits, exemptions and deductions as described in
7the following Acts: Section 9-221 and Section 9-222.1 of the
8Public Utilities Act; and subsection (g) of Section 201, and
9Section 203 of the Illinois Income Tax Act.
10    (d) Except for businesses contemplated under subdivision
11(a)(3)(E) of this Section, existing Illinois businesses which
12apply for designation as a High Impact Business must provide
13the Department with the prospective plan for which 1,500
14full-time retained jobs would be eliminated in the event that
15the business is not designated.
16    (e) Except for new wind power facilities contemplated under
17subdivision (a)(3)(E) of this Section, new proposed facilities
18which apply for designation as High Impact Business must
19provide the Department with proof of alternative non-Illinois
20sites which would receive the proposed investment and job
21creation in the event that the business is not designated as a
22High Impact Business.
23    (f) Except for businesses contemplated under subdivision
24(a)(3)(E) of this Section, in the event that a business is
25designated a High Impact Business and it is later determined
26after reasonable notice and an opportunity for a hearing as

 

 

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1provided under the Illinois Administrative Procedure Act, that
2the business would have placed in service in qualified property
3the investments and created or retained the requisite number of
4jobs without the benefits of the High Impact Business
5designation, the Department shall be required to immediately
6revoke the designation and notify the Director of the
7Department of Revenue who shall begin proceedings to recover
8all wrongfully exempted State taxes with interest. The business
9shall also be ineligible for all State funded Department
10programs for a period of 10 years.
11    (g) The Department shall revoke a High Impact Business
12designation if the participating business fails to comply with
13the terms and conditions of the designation. However, the
14penalties for new wind power facilities or Wind Energy
15Businesses for failure to comply with any of the terms or
16conditions of the Illinois Prevailing Wage Act shall be only
17those penalties identified in the Illinois Prevailing Wage Act,
18and the Department shall not revoke a High Impact Business
19designation as a result of the failure to comply with any of
20the terms or conditions of the Illinois Prevailing Wage Act in
21relation to a new wind power facility or a Wind Energy
22Business.
23    (h) Prior to designating a business, the Department shall
24provide the members of the General Assembly and Commission on
25Government Forecasting and Accountability with a report
26setting forth the terms and conditions of the designation and

 

 

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1guarantees that have been received by the Department in
2relation to the proposed business being designated.
3(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.".