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Sen. Elgie R. Sims, Jr.
Filed: 4/5/2018
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1 | | AMENDMENT TO SENATE BILL 3284
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2 | | AMENDMENT NO. ______. Amend Senate Bill 3284 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 1. Short title. This Act may be cited as the |
5 | | Community Renewal and Revitalization Act. |
6 | | Section 5. Intent. The intent of this Act is to spur |
7 | | investment in areas of high unemployment and high crime through |
8 | | various economic development tools intended to incentivize |
9 | | businesses to relocate, expand, and develop within those |
10 | | communities. It is the hope and belief of the General Assembly |
11 | | that through the creation of Health, Opportunity, Prosperity, |
12 | | and Empowerment (HOPE) Zones, economic growth and vitality can |
13 | | foster in impoverished communities of this State. |
14 | | Section 10. Definitions.
As used in this Act:
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15 | | "Department" means the Department of Commerce and Economic |
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1 | | Opportunity.
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2 | | "Director" means the Director of Commerce and Economic |
3 | | Opportunity.
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4 | | "HOPE Zone" or "Zone" means a Health, Opportunity, |
5 | | Prosperity, and Empowerment Zone established under this Act. |
6 | | Section 15. Qualifications for HOPE Zones.
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7 | | (a) An area is qualified to become a HOPE Zone if:
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8 | | (1) it is a contiguous area, provided that a zone area
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9 | | may exclude wholly surrounded territory within its |
10 | | boundaries;
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11 | | (2) it is comprised of a minimum of one-half square |
12 | | mile and
not more than 15 square miles, in total area, |
13 | | exclusive of lakes and waterways;
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14 | | (3) it is entirely within a municipality or entirely |
15 | | within the unincorporated areas of a county, except where |
16 | | reasonable need is established for such zone to cover |
17 | | portions of more than one municipality or county;
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18 | | (4) all or part of the area to be designated as a HOPE |
19 | | Zone has had an annual average unemployment rate of at |
20 | | least 120% of the State's annual average unemployment rate |
21 | | for the most recent calendar year or the most recent fiscal |
22 | | year as reported by the Department of Employment Security; |
23 | | and
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24 | | (5) all or part of the area to be designated as a HOPE |
25 | | Zone has a poverty rate of at least 20% according to the |
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1 | | latest federal decennial census, and a census tract crime |
2 | | rate higher than the State average.
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3 | | (b) Any criteria established by the Department or by law |
4 | | which utilizes the rate of unemployment for a particular area |
5 | | shall provide that all persons who are not presently employed |
6 | | and have exhausted all unemployment benefits shall be |
7 | | considered unemployed, whether or not such persons are actively |
8 | | seeking employment.
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9 | | Section 20. Designation of HOPE Zones.
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10 | | (a) Any area determined by the Director of the Department |
11 | | of Commerce and Economic Opportunity as meeting the |
12 | | qualifications established under Section 15 shall be |
13 | | designated a HOPE Zone, and be eligible for benefits under this |
14 | | Act.
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15 | | (b) Upon designation of a HOPE Zone, the Director shall |
16 | | provide:
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17 | | (1) a precise description of the area comprising the |
18 | | Zone, either in the form of a legal description or by |
19 | | reference to roadways, lakes and waterways, and township |
20 | | and county boundaries;
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21 | | (2) a finding that the Zone area meets the |
22 | | qualifications established under Section 10;
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23 | | (3) provisions for any tax incentives or reimbursement |
24 | | for taxes, which under State and federal law apply to |
25 | | businesses within the designated Zone;
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1 | | (4) the duration or term of the HOPE Zone, which shall |
2 | | be no less than 10 years in duration; and
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3 | | (5) any other information the Director deems necessary |
4 | | to the establishment of HOPE Zones under this Act.
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5 | | (c) Nothing in this Section shall prohibit a municipality |
6 | | or county from extending additional tax incentives or |
7 | | reimbursement for businesses in HOPE Zones or throughout their |
8 | | territory by separate ordinance. Nothing in this Section shall |
9 | | prohibit a municipality or county from applying to be an |
10 | | Enterprise Zone under the Illinois Enterprise Zone Act.
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11 | | Section 25. HOPE Zone tax credits.
The following credits |
12 | | shall be granted in connection with HOPE Zones under this Act: |
13 | | (1) a business maintaining operations within a HOPE |
14 | | Zone is eligible to receive a 50% tax credit against (i) |
15 | | its annual corporate income tax as provided in Section 227 |
16 | | of the Illinois Income Tax Act and (ii) all fees and |
17 | | franchise taxes paid to the Secretary of State for |
18 | | organizing and maintaining any business organization |
19 | | within the Zone; |
20 | | (2) individuals living within a HOPE Zone are eligible |
21 | | to receive a 50% tax credit against their annual individual |
22 | | Illinois income tax as provided in Section 228 of the |
23 | | Illinois Income Tax Act; |
24 | | (3) taxpayers are eligible for a remediation tax credit |
25 | | as provided in subsection (n-1) of Section 201 of the |
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1 | | Illinois Income Tax Act; |
2 | | (4) a business maintaining operations in a HOPE Zone is |
3 | | allowed an increased credit under Section 216 of the |
4 | | Illinois Income Tax Act; |
5 | | (5) a retailer who makes a sale of building materials |
6 | | to be incorporated into real estate located in a HOPE Zone |
7 | | is entitled to a credit as provided in Section 5k of the |
8 | | Retailers' Occupation Tax Act; and |
9 | | (6) any business designated as a "High Impact Business" |
10 | | under Section 5.5 of the Illinois Enterprise Zone Act that |
11 | | intends to invest in a HOPE Zone, in a manner specified in |
12 | | subparagraphs (A) through (F) of that Section, shall be |
13 | | eligible for the credits and benefits provided in that |
14 | | Section; all provisions and procedures in Section 5.5 of |
15 | | the Illinois Enterprise Zone Act with respect to the |
16 | | application and designation of High Impact Businesses |
17 | | shall apply.
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18 | | Section 30. Powers and duties of the Department.
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19 | | (a) General powers. The Department shall administer this |
20 | | Act and shall have the following powers and duties:
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21 | | (1) To monitor the implementation of this Act and
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22 | | submit reports evaluating the effectiveness of the program |
23 | | and any suggestions for legislation to the Governor and |
24 | | General Assembly by October 1 of every year preceding a |
25 | | regular Session of the General Assembly and to annually |
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1 | | report to the General Assembly initial and current |
2 | | population, employment, per capita income, number of |
3 | | business establishments, dollar value of new construction |
4 | | and improvements, and the aggregate value of each tax |
5 | | incentive, based on information provided by the Department |
6 | | of Revenue, for each HOPE Zone.
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7 | | (2) To adopt all necessary rules and regulations
to |
8 | | carry out the purposes of this Act in accordance with The |
9 | | Illinois Administrative Procedure Act.
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10 | | (3) To assist municipalities and counties in
obtaining |
11 | | federal status as a HOPE Zone. |
12 | | (b) Specific duties:
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13 | | (1) The Department shall provide information and
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14 | | appropriate assistance to persons desiring to locate and |
15 | | engage in business in a HOPE Zone, to persons engaged in |
16 | | business in a HOPE Zone, and to designated Zone |
17 | | organizations operating there.
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18 | | (2) The Department shall, in cooperation with
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19 | | appropriate units of local government and State agencies, |
20 | | coordinate and streamline existing State business |
21 | | assistance programs and permit and license application |
22 | | procedures for HOPE Zone businesses.
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23 | | (3) The Department shall publicize existing tax
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24 | | incentives and economic development programs within the |
25 | | Zone and upon request, offer technical assistance in |
26 | | abatement and alternative revenue source development to |
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1 | | local units of government which have HOPE Zones within |
2 | | their jurisdiction.
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3 | | (4) The Department shall work together with the
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4 | | responsible State and federal agencies to promote the |
5 | | coordination of other relevant programs, including, but |
6 | | not limited to, housing, community and economic |
7 | | development, small business, banking, financial |
8 | | assistance, and employment training programs which are |
9 | | carried on in a HOPE Zone.
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10 | | (5) In order to stimulate employment opportunities
for |
11 | | Zone residents, the Department, in cooperation with the |
12 | | Department of Human Services and the Department of |
13 | | Employment Security, is to initiate a test of the following |
14 | | 2 programs within the 12 month period following designation |
15 | | and approval by the Department of the first HOPE Zones: (i) |
16 | | the use of aid to families with dependent children benefits |
17 | | payable under Article IV of the Illinois Public Aid Code, |
18 | | General Assistance benefits payable under Article VI of the |
19 | | Illinois Public Aid Code, the unemployment insurance |
20 | | benefits payable under the Unemployment Insurance Act as |
21 | | training or employment subsidies leading to unsubsidized |
22 | | employment; and (ii) a program for voucher reimbursement of |
23 | | the cost of training Zone residents eligible under the |
24 | | Targeted Jobs Tax Credit provisions of the Internal Revenue |
25 | | Code for employment in private industry. These programs |
26 | | shall not be designed to subsidize businesses, but are |
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1 | | intended to open up job and training opportunities not |
2 | | otherwise available. Nothing in this paragraph (5) shall be |
3 | | deemed to require Zone businesses to utilize these |
4 | | programs. These programs should be designed (i) for those |
5 | | individuals whose opportunities for job-finding are |
6 | | minimal without program participation; (ii) to minimize |
7 | | the period of benefit collection by such individuals; and |
8 | | (iii) to accelerate the transition of those individuals to |
9 | | unsubsidized employment. The Department is to seek |
10 | | agreement with business, organized labor and the |
11 | | appropriate State Department, and agencies on the design, |
12 | | operation, and evaluation of the test programs.
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13 | | A report with recommendations including representative |
14 | | comments of these groups shall be submitted by the Department |
15 | | to the Governor and General Assembly not later than 12 months |
16 | | after such test programs have commenced, or not later than 3 |
17 | | months following the termination of such test programs, |
18 | | whichever first occurs. |
19 | | Section 35. State incentives regarding public services and |
20 | | physical infrastructure.
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21 | | (a) Industrial development bonds. Priority in the use of |
22 | | industrial development bonds issued by the Illinois Finance |
23 | | Authority shall be given to businesses located in HOPE Zones.
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24 | | (b) Deposit of State funds by the State Treasurer. The |
25 | | State Treasurer is authorized and encouraged to place deposits |
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1 | | of State funds with financial institutions doing business in |
2 | | HOPE Zones.
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3 | | Section 40. State regulatory exemptions in HOPE Zones.
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4 | | (a) The Department shall conduct an ongoing review of such |
5 | | agency rules and regulations that may be identified by the |
6 | | Department as businesses and preliminarily appearing to the |
7 | | Department to:
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8 | | (i) affect the conduct of business, industry, and |
9 | | commerce;
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10 | | (ii) impose excessive costs on either the creation or |
11 | | conduct of such businesses; and
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12 | | (iii) inhibit the development and expansions of |
13 | | businesses within HOPE Zones.
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14 | | The Department shall conduct hearings, pursuant to public |
15 | | notice, to solicit public comment on such identified rules and |
16 | | regulations as part of this review process.
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17 | | (b) No later than August 1 of each calendar year, the |
18 | | Department shall publish in the Illinois Register a list of |
19 | | such rules and regulations identified under subsection (a). The |
20 | | Department shall transmit a copy of the list to each agency |
21 | | which has adopted rules or regulations on the list.
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22 | | (c) Within 90 days of the publication of the list by the |
23 | | Department, each agency which adopted rules or regulations |
24 | | identified therein shall file a written report with the |
25 | | Department detailing for each identified rule or regulation:
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1 | | (i) the need or justification;
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2 | | (ii) whether the rule or regulation is mandated by |
3 | | State or federal law, or is discretionary, and to what |
4 | | extent;
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5 | | (iii) a synopsis of the history of the rule, including |
6 | | any internal agency review after its original adoption; and
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7 | | (iv) any appropriate explanation of its relationship |
8 | | to other regulatory requirements.
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9 | | The adopting agency shall also include any available data, |
10 | | analysis, and studies concerning the economic impact of the |
11 | | identified rules and regulations. The agency responses shall be |
12 | | public records.
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13 | | (d) No later than January 1 of the following calendar year, |
14 | | the Department shall file proposed rules exempting businesses |
15 | | within HOPE Zones from those agency rules and regulations |
16 | | contained in the published list, for which the Department finds |
17 | | that the job creation or business development incentives for |
18 | | HOPE Zone development engendered by the exemption outweigh the |
19 | | need and justification for the rule or regulation. In making |
20 | | its findings, the Department shall consider all information, |
21 | | data, and opinions submitted to it by the public, as well as by |
22 | | adopting agencies, as well as information otherwise available |
23 | | to it.
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24 | | (e) The proposed rules and regulations adopted by the |
25 | | Department shall be in the form of amendments to the existing |
26 | | rules and regulations to be affected, and shall be subject to |
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1 | | the Illinois Administrative Procedure Act.
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2 | | (f) Upon its effective date, any exempting rule or |
3 | | regulation of the Department shall supersede the exempted |
4 | | agency rule or regulation in accordance with the terms of the |
5 | | exemption. Such exemptions may apply only to businesses within |
6 | | HOPE Zones during the effective term of the respective Zones. |
7 | | Agencies may not adopt emergency rules to circumvent an |
8 | | exemption effected by a Department exemption rule; any such |
9 | | emergency rules shall not be effective within HOPE Zones to the |
10 | | extent inconsistent with the terms of such an exemption.
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11 | | Section 45. State and local regulatory alternatives.
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12 | | (a) Agencies may provide in their rules and regulations for |
13 | | (i) the exemption of businesses within HOPE Zones; or (ii) |
14 | | modifications or alternatives specifically applicable to |
15 | | businesses within HOPE Zones, which impose less stringent |
16 | | standards or alternative standards for compliance, including |
17 | | performance-based standards as a substitute for specific |
18 | | mandates of methods, procedures, or equipment.
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19 | | Such exemptions, modifications, or alternatives shall be |
20 | | effected by rule or regulation adopted in accordance with the |
21 | | Illinois Administrative Procedure Act. The agency adopting |
22 | | exemptions, modifications, or alternatives shall file with its |
23 | | proposed rule or regulation its findings that the proposed rule |
24 | | or regulation provides economic incentives within HOPE Zones |
25 | | which promote the purposes of this Act, and which, to the |
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1 | | extent they include any exemptions or reductions in regulatory |
2 | | standards or requirements, outweigh the need or justification |
3 | | for the existing rule or regulation.
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4 | | (b) If any agency adopts a rule or regulation under |
5 | | subsection (a) of this Section affecting a rule or regulation |
6 | | contained on the list published by the Department under Section |
7 | | 35 of this Act, prior to the completion of the rule making |
8 | | process for the Department's rules under that Section, the |
9 | | agency shall immediately transmit a copy of its proposed rule |
10 | | or regulation to the Department, together with a statement of |
11 | | reasons as to why the Department should defer to the agency's |
12 | | proposed rule or regulation. Agency rules adopted under |
13 | | subsection (a) of this Section shall, however, be subject to |
14 | | the exemption rules and regulations of the Department adopted |
15 | | under Section 35 of this Act.
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16 | | (c) The county or municipality containing a HOPE Zone may |
17 | | modify all local ordinances and regulations regarding (1) |
18 | | zoning; (2) licensing; (3) building codes, excluding however, |
19 | | any regulations treating building defects; and (4) rent control |
20 | | and price controls; except for the minimum wage. |
21 | | Notwithstanding any shorter statute of limitation to the |
22 | | contrary, actions against any contractor or architect who |
23 | | designs, constructs, or rehabilitates a building or structure |
24 | | in a HOPE Zone in accordance with local standards specifically |
25 | | applicable within Zones which have been relaxed may be |
26 | | commenced within 10 years from the time of beneficial occupancy |
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1 | | of the building or use of the structure.
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2 | | Section 900. The Illinois Income Tax Act is amended by |
3 | | changing Sections 201 and 216 and by adding Sections 227 and |
4 | | 228 as follows: |
5 | | (35 ILCS 5/201) (from Ch. 120, par. 2-201) |
6 | | Sec. 201. Tax imposed. |
7 | | (a) In general. A tax measured by net income is hereby |
8 | | imposed on every
individual, corporation, trust and estate for |
9 | | each taxable year ending
after July 31, 1969 on the privilege |
10 | | of earning or receiving income in or
as a resident of this |
11 | | State. Such tax shall be in addition to all other
occupation or |
12 | | privilege taxes imposed by this State or by any municipal
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13 | | corporation or political subdivision thereof. |
14 | | (b) Rates. The tax imposed by subsection (a) of this |
15 | | Section shall be
determined as follows, except as adjusted by |
16 | | subsection (d-1): |
17 | | (1) In the case of an individual, trust or estate, for |
18 | | taxable years
ending prior to July 1, 1989, an amount equal |
19 | | to 2 1/2% of the taxpayer's
net income for the taxable |
20 | | year. |
21 | | (2) In the case of an individual, trust or estate, for |
22 | | taxable years
beginning prior to July 1, 1989 and ending |
23 | | after June 30, 1989, an amount
equal to the sum of (i) 2 |
24 | | 1/2% of the taxpayer's net income for the period
prior to |
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1 | | July 1, 1989, as calculated under Section 202.3, and (ii) |
2 | | 3% of the
taxpayer's net income for the period after June |
3 | | 30, 1989, as calculated
under Section 202.3. |
4 | | (3) In the case of an individual, trust or estate, for |
5 | | taxable years
beginning after June 30, 1989, and ending |
6 | | prior to January 1, 2011, an amount equal to 3% of the |
7 | | taxpayer's net
income for the taxable year. |
8 | | (4) In the case of an individual, trust, or estate, for |
9 | | taxable years beginning prior to January 1, 2011, and |
10 | | ending after December 31, 2010, an amount equal to the sum |
11 | | of (i) 3% of the taxpayer's net income for the period prior |
12 | | to January 1, 2011, as calculated under Section 202.5, and |
13 | | (ii) 5% of the taxpayer's net income for the period after |
14 | | December 31, 2010, as calculated under Section 202.5. |
15 | | (5) In the case of an individual, trust, or estate, for |
16 | | taxable years beginning on or after January 1, 2011, and |
17 | | ending prior to January 1, 2015, an amount equal to 5% of |
18 | | the taxpayer's net income for the taxable year. |
19 | | (5.1) In the case of an individual, trust, or estate, |
20 | | for taxable years beginning prior to January 1, 2015, and |
21 | | ending after December 31, 2014, an amount equal to the sum |
22 | | of (i) 5% of the taxpayer's net income for the period prior |
23 | | to January 1, 2015, as calculated under Section 202.5, and |
24 | | (ii) 3.75% of the taxpayer's net income for the period |
25 | | after December 31, 2014, as calculated under Section 202.5. |
26 | | (5.2) In the case of an individual, trust, or estate, |
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1 | | for taxable years beginning on or after January 1, 2015, |
2 | | and ending prior to July 1, 2017, an amount equal to 3.75% |
3 | | of the taxpayer's net income for the taxable year. |
4 | | (5.3) In the case of an individual, trust, or estate, |
5 | | for taxable years beginning prior to July 1, 2017, and |
6 | | ending after June 30, 2017, an amount equal to the sum of |
7 | | (i) 3.75% of the taxpayer's net income for the period prior |
8 | | to July 1, 2017, as calculated under Section 202.5, and |
9 | | (ii) 4.95% of the taxpayer's net income for the period |
10 | | after June 30, 2017, as calculated under Section 202.5. |
11 | | (5.4) In the case of an individual, trust, or estate, |
12 | | for taxable years beginning on or after July 1, 2017, an |
13 | | amount equal to 4.95% of the taxpayer's net income for the |
14 | | taxable year. |
15 | | (6) In the case of a corporation, for taxable years
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16 | | ending prior to July 1, 1989, an amount equal to 4% of the
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17 | | taxpayer's net income for the taxable year. |
18 | | (7) In the case of a corporation, for taxable years |
19 | | beginning prior to
July 1, 1989 and ending after June 30, |
20 | | 1989, an amount equal to the sum of
(i) 4% of the |
21 | | taxpayer's net income for the period prior to July 1, 1989,
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22 | | as calculated under Section 202.3, and (ii) 4.8% of the |
23 | | taxpayer's net
income for the period after June 30, 1989, |
24 | | as calculated under Section
202.3. |
25 | | (8) In the case of a corporation, for taxable years |
26 | | beginning after
June 30, 1989, and ending prior to January |
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1 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net |
2 | | income for the
taxable year. |
3 | | (9) In the case of a corporation, for taxable years |
4 | | beginning prior to January 1, 2011, and ending after |
5 | | December 31, 2010, an amount equal to the sum of (i) 4.8% |
6 | | of the taxpayer's net income for the period prior to |
7 | | January 1, 2011, as calculated under Section 202.5, and |
8 | | (ii) 7% of the taxpayer's net income for the period after |
9 | | December 31, 2010, as calculated under Section 202.5. |
10 | | (10) In the case of a corporation, for taxable years |
11 | | beginning on or after January 1, 2011, and ending prior to |
12 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
13 | | net income for the taxable year. |
14 | | (11) In the case of a corporation, for taxable years |
15 | | beginning prior to January 1, 2015, and ending after |
16 | | December 31, 2014, an amount equal to the sum of (i) 7% of |
17 | | the taxpayer's net income for the period prior to January |
18 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% |
19 | | of the taxpayer's net income for the period after December |
20 | | 31, 2014, as calculated under Section 202.5. |
21 | | (12) In the case of a corporation, for taxable years |
22 | | beginning on or after January 1, 2015, and ending prior to |
23 | | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
24 | | net income for the taxable year. |
25 | | (13) In the case of a corporation, for taxable years |
26 | | beginning prior to July 1, 2017, and ending after June 30, |
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1 | | 2017, an amount equal to the sum of (i) 5.25% of the |
2 | | taxpayer's net income for the period prior to July 1, 2017, |
3 | | as calculated under Section 202.5, and (ii) 7% of the |
4 | | taxpayer's net income for the period after June 30, 2017, |
5 | | as calculated under Section 202.5. |
6 | | (14) In the case of a corporation, for taxable years |
7 | | beginning on or after July 1, 2017, an amount equal to 7% |
8 | | of the taxpayer's net income for the taxable year. |
9 | | The rates under this subsection (b) are subject to the |
10 | | provisions of Section 201.5. |
11 | | (c) Personal Property Tax Replacement Income Tax.
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12 | | Beginning on July 1, 1979 and thereafter, in addition to such |
13 | | income
tax, there is also hereby imposed the Personal Property |
14 | | Tax Replacement
Income Tax measured by net income on every |
15 | | corporation (including Subchapter
S corporations), partnership |
16 | | and trust, for each taxable year ending after
June 30, 1979. |
17 | | Such taxes are imposed on the privilege of earning or
receiving |
18 | | income in or as a resident of this State. The Personal Property
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19 | | Tax Replacement Income Tax shall be in addition to the income |
20 | | tax imposed
by subsections (a) and (b) of this Section and in |
21 | | addition to all other
occupation or privilege taxes imposed by |
22 | | this State or by any municipal
corporation or political |
23 | | subdivision thereof. |
24 | | (d) Additional Personal Property Tax Replacement Income |
25 | | Tax Rates.
The personal property tax replacement income tax |
26 | | imposed by this subsection
and subsection (c) of this Section |
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1 | | in the case of a corporation, other
than a Subchapter S |
2 | | corporation and except as adjusted by subsection (d-1),
shall |
3 | | be an additional amount equal to
2.85% of such taxpayer's net |
4 | | income for the taxable year, except that
beginning on January |
5 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
6 | | subsection shall be reduced to 2.5%, and in the case of a
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7 | | partnership, trust or a Subchapter S corporation shall be an |
8 | | additional
amount equal to 1.5% of such taxpayer's net income |
9 | | for the taxable year. |
10 | | (d-1) Rate reduction for certain foreign insurers. In the |
11 | | case of a
foreign insurer, as defined by Section 35A-5 of the |
12 | | Illinois Insurance Code,
whose state or country of domicile |
13 | | imposes on insurers domiciled in Illinois
a retaliatory tax |
14 | | (excluding any insurer
whose premiums from reinsurance assumed |
15 | | are 50% or more of its total insurance
premiums as determined |
16 | | under paragraph (2) of subsection (b) of Section 304,
except |
17 | | that for purposes of this determination premiums from |
18 | | reinsurance do
not include premiums from inter-affiliate |
19 | | reinsurance arrangements),
beginning with taxable years ending |
20 | | on or after December 31, 1999,
the sum of
the rates of tax |
21 | | imposed by subsections (b) and (d) shall be reduced (but not
|
22 | | increased) to the rate at which the total amount of tax imposed |
23 | | under this Act,
net of all credits allowed under this Act, |
24 | | shall equal (i) the total amount of
tax that would be imposed |
25 | | on the foreign insurer's net income allocable to
Illinois for |
26 | | the taxable year by such foreign insurer's state or country of
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1 | | domicile if that net income were subject to all income taxes |
2 | | and taxes
measured by net income imposed by such foreign |
3 | | insurer's state or country of
domicile, net of all credits |
4 | | allowed or (ii) a rate of zero if no such tax is
imposed on such |
5 | | income by the foreign insurer's state of domicile.
For the |
6 | | purposes of this subsection (d-1), an inter-affiliate includes |
7 | | a
mutual insurer under common management. |
8 | | (1) For the purposes of subsection (d-1), in no event |
9 | | shall the sum of the
rates of tax imposed by subsections |
10 | | (b) and (d) be reduced below the rate at
which the sum of: |
11 | | (A) the total amount of tax imposed on such foreign |
12 | | insurer under
this Act for a taxable year, net of all |
13 | | credits allowed under this Act, plus |
14 | | (B) the privilege tax imposed by Section 409 of the |
15 | | Illinois Insurance
Code, the fire insurance company |
16 | | tax imposed by Section 12 of the Fire
Investigation |
17 | | Act, and the fire department taxes imposed under |
18 | | Section 11-10-1
of the Illinois Municipal Code, |
19 | | equals 1.25% for taxable years ending prior to December 31, |
20 | | 2003, or
1.75% for taxable years ending on or after |
21 | | December 31, 2003, of the net
taxable premiums written for |
22 | | the taxable year,
as described by subsection (1) of Section |
23 | | 409 of the Illinois Insurance Code.
This paragraph will in |
24 | | no event increase the rates imposed under subsections
(b) |
25 | | and (d). |
26 | | (2) Any reduction in the rates of tax imposed by this |
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1 | | subsection shall be
applied first against the rates imposed |
2 | | by subsection (b) and only after the
tax imposed by |
3 | | subsection (a) net of all credits allowed under this |
4 | | Section
other than the credit allowed under subsection (i) |
5 | | has been reduced to zero,
against the rates imposed by |
6 | | subsection (d). |
7 | | This subsection (d-1) is exempt from the provisions of |
8 | | Section 250. |
9 | | (e) Investment credit. A taxpayer shall be allowed a credit
|
10 | | against the Personal Property Tax Replacement Income Tax for
|
11 | | investment in qualified property. |
12 | | (1) A taxpayer shall be allowed a credit equal to .5% |
13 | | of
the basis of qualified property placed in service during |
14 | | the taxable year,
provided such property is placed in |
15 | | service on or after
July 1, 1984. There shall be allowed an |
16 | | additional credit equal
to .5% of the basis of qualified |
17 | | property placed in service during the
taxable year, |
18 | | provided such property is placed in service on or
after |
19 | | July 1, 1986, and the taxpayer's base employment
within |
20 | | Illinois has increased by 1% or more over the preceding |
21 | | year as
determined by the taxpayer's employment records |
22 | | filed with the
Illinois Department of Employment Security. |
23 | | Taxpayers who are new to
Illinois shall be deemed to have |
24 | | met the 1% growth in base employment for
the first year in |
25 | | which they file employment records with the Illinois
|
26 | | Department of Employment Security. The provisions added to |
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1 | | this Section by
Public Act 85-1200 (and restored by Public |
2 | | Act 87-895) shall be
construed as declaratory of existing |
3 | | law and not as a new enactment. If,
in any year, the |
4 | | increase in base employment within Illinois over the
|
5 | | preceding year is less than 1%, the additional credit shall |
6 | | be limited to that
percentage times a fraction, the |
7 | | numerator of which is .5% and the denominator
of which is |
8 | | 1%, but shall not exceed .5%. The investment credit shall |
9 | | not be
allowed to the extent that it would reduce a |
10 | | taxpayer's liability in any tax
year below zero, nor may |
11 | | any credit for qualified property be allowed for any
year |
12 | | other than the year in which the property was placed in |
13 | | service in
Illinois. For tax years ending on or after |
14 | | December 31, 1987, and on or
before December 31, 1988, the |
15 | | credit shall be allowed for the tax year in
which the |
16 | | property is placed in service, or, if the amount of the |
17 | | credit
exceeds the tax liability for that year, whether it |
18 | | exceeds the original
liability or the liability as later |
19 | | amended, such excess may be carried
forward and applied to |
20 | | the tax liability of the 5 taxable years following
the |
21 | | excess credit years if the taxpayer (i) makes investments |
22 | | which cause
the creation of a minimum of 2,000 full-time |
23 | | equivalent jobs in Illinois,
(ii) is located in an |
24 | | enterprise zone established pursuant to the Illinois
|
25 | | Enterprise Zone Act and (iii) is certified by the |
26 | | Department of Commerce
and Community Affairs (now |
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1 | | Department of Commerce and Economic Opportunity) as |
2 | | complying with the requirements specified in
clause (i) and |
3 | | (ii) by July 1, 1986. The Department of Commerce and
|
4 | | Community Affairs (now Department of Commerce and Economic |
5 | | Opportunity) shall notify the Department of Revenue of all |
6 | | such
certifications immediately. For tax years ending |
7 | | after December 31, 1988,
the credit shall be allowed for |
8 | | the tax year in which the property is
placed in service, |
9 | | or, if the amount of the credit exceeds the tax
liability |
10 | | for that year, whether it exceeds the original liability or |
11 | | the
liability as later amended, such excess may be carried |
12 | | forward and applied
to the tax liability of the 5 taxable |
13 | | years following the excess credit
years. The credit shall |
14 | | be applied to the earliest year for which there is
a |
15 | | liability. If there is credit from more than one tax year |
16 | | that is
available to offset a liability, earlier credit |
17 | | shall be applied first. |
18 | | (2) The term "qualified property" means property |
19 | | which: |
20 | | (A) is tangible, whether new or used, including |
21 | | buildings and structural
components of buildings and |
22 | | signs that are real property, but not including
land or |
23 | | improvements to real property that are not a structural |
24 | | component of a
building such as landscaping, sewer |
25 | | lines, local access roads, fencing, parking
lots, and |
26 | | other appurtenances; |
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1 | | (B) is depreciable pursuant to Section 167 of the |
2 | | Internal Revenue Code,
except that "3-year property" |
3 | | as defined in Section 168(c)(2)(A) of that
Code is not |
4 | | eligible for the credit provided by this subsection |
5 | | (e); |
6 | | (C) is acquired by purchase as defined in Section |
7 | | 179(d) of
the Internal Revenue Code; |
8 | | (D) is used in Illinois by a taxpayer who is |
9 | | primarily engaged in
manufacturing, or in mining coal |
10 | | or fluorite, or in retailing, or was placed in service |
11 | | on or after July 1, 2006 in a River Edge Redevelopment |
12 | | Zone established pursuant to the River Edge |
13 | | Redevelopment Zone Act; and |
14 | | (E) has not previously been used in Illinois in |
15 | | such a manner and by
such a person as would qualify for |
16 | | the credit provided by this subsection
(e) or |
17 | | subsection (f). |
18 | | (3) For purposes of this subsection (e), |
19 | | "manufacturing" means
the material staging and production |
20 | | of tangible personal property by
procedures commonly |
21 | | regarded as manufacturing, processing, fabrication, or
|
22 | | assembling which changes some existing material into new |
23 | | shapes, new
qualities, or new combinations. For purposes of |
24 | | this subsection
(e) the term "mining" shall have the same |
25 | | meaning as the term "mining" in
Section 613(c) of the |
26 | | Internal Revenue Code. For purposes of this subsection
(e), |
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1 | | the term "retailing" means the sale of tangible personal |
2 | | property for use or consumption and not for resale, or
|
3 | | services rendered in conjunction with the sale of tangible |
4 | | personal property for use or consumption and not for |
5 | | resale. For purposes of this subsection (e), "tangible |
6 | | personal property" has the same meaning as when that term |
7 | | is used in the Retailers' Occupation Tax Act, and, for |
8 | | taxable years ending after December 31, 2008, does not |
9 | | include the generation, transmission, or distribution of |
10 | | electricity. |
11 | | (4) The basis of qualified property shall be the basis
|
12 | | used to compute the depreciation deduction for federal |
13 | | income tax purposes. |
14 | | (5) If the basis of the property for federal income tax |
15 | | depreciation
purposes is increased after it has been placed |
16 | | in service in Illinois by
the taxpayer, the amount of such |
17 | | increase shall be deemed property placed
in service on the |
18 | | date of such increase in basis. |
19 | | (6) The term "placed in service" shall have the same
|
20 | | meaning as under Section 46 of the Internal Revenue Code. |
21 | | (7) If during any taxable year, any property ceases to
|
22 | | be qualified property in the hands of the taxpayer within |
23 | | 48 months after
being placed in service, or the situs of |
24 | | any qualified property is
moved outside Illinois within 48 |
25 | | months after being placed in service, the
Personal Property |
26 | | Tax Replacement Income Tax for such taxable year shall be
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1 | | increased. Such increase shall be determined by (i) |
2 | | recomputing the
investment credit which would have been |
3 | | allowed for the year in which
credit for such property was |
4 | | originally allowed by eliminating such
property from such |
5 | | computation and, (ii) subtracting such recomputed credit
|
6 | | from the amount of credit previously allowed. For the |
7 | | purposes of this
paragraph (7), a reduction of the basis of |
8 | | qualified property resulting
from a redetermination of the |
9 | | purchase price shall be deemed a disposition
of qualified |
10 | | property to the extent of such reduction. |
11 | | (8) Unless the investment credit is extended by law, |
12 | | the
basis of qualified property shall not include costs |
13 | | incurred after
December 31, 2018, except for costs incurred |
14 | | pursuant to a binding
contract entered into on or before |
15 | | December 31, 2018. |
16 | | (9) Each taxable year ending before December 31, 2000, |
17 | | a partnership may
elect to pass through to its
partners the |
18 | | credits to which the partnership is entitled under this |
19 | | subsection
(e) for the taxable year. A partner may use the |
20 | | credit allocated to him or her
under this paragraph only |
21 | | against the tax imposed in subsections (c) and (d) of
this |
22 | | Section. If the partnership makes that election, those |
23 | | credits shall be
allocated among the partners in the |
24 | | partnership in accordance with the rules
set forth in |
25 | | Section 704(b) of the Internal Revenue Code, and the rules
|
26 | | promulgated under that Section, and the allocated amount of |
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1 | | the credits shall
be allowed to the partners for that |
2 | | taxable year. The partnership shall make
this election on |
3 | | its Personal Property Tax Replacement Income Tax return for
|
4 | | that taxable year. The election to pass through the credits |
5 | | shall be
irrevocable. |
6 | | For taxable years ending on or after December 31, 2000, |
7 | | a
partner that qualifies its
partnership for a subtraction |
8 | | under subparagraph (I) of paragraph (2) of
subsection (d) |
9 | | of Section 203 or a shareholder that qualifies a Subchapter |
10 | | S
corporation for a subtraction under subparagraph (S) of |
11 | | paragraph (2) of
subsection (b) of Section 203 shall be |
12 | | allowed a credit under this subsection
(e) equal to its |
13 | | share of the credit earned under this subsection (e) during
|
14 | | the taxable year by the partnership or Subchapter S |
15 | | corporation, determined in
accordance with the |
16 | | determination of income and distributive share of
income |
17 | | under Sections 702 and 704 and Subchapter S of the Internal |
18 | | Revenue
Code. This paragraph is exempt from the provisions |
19 | | of Section 250. |
20 | | (f) Investment credit; Enterprise Zone; River Edge |
21 | | Redevelopment Zone. |
22 | | (1) A taxpayer shall be allowed a credit against the |
23 | | tax imposed
by subsections (a) and (b) of this Section for |
24 | | investment in qualified
property which is placed in service |
25 | | in an Enterprise Zone created
pursuant to the Illinois |
26 | | Enterprise Zone Act or, for property placed in service on |
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1 | | or after July 1, 2006, a River Edge Redevelopment Zone |
2 | | established pursuant to the River Edge Redevelopment Zone |
3 | | Act. For partners, shareholders
of Subchapter S |
4 | | corporations, and owners of limited liability companies,
|
5 | | if the liability company is treated as a partnership for |
6 | | purposes of
federal and State income taxation, there shall |
7 | | be allowed a credit under
this subsection (f) to be |
8 | | determined in accordance with the determination
of income |
9 | | and distributive share of income under Sections 702 and 704 |
10 | | and
Subchapter S of the Internal Revenue Code. The credit |
11 | | shall be .5% of the
basis for such property. The credit |
12 | | shall be available only in the taxable
year in which the |
13 | | property is placed in service in the Enterprise Zone or |
14 | | River Edge Redevelopment Zone and
shall not be allowed to |
15 | | the extent that it would reduce a taxpayer's
liability for |
16 | | the tax imposed by subsections (a) and (b) of this Section |
17 | | to
below zero. For tax years ending on or after December |
18 | | 31, 1985, the credit
shall be allowed for the tax year in |
19 | | which the property is placed in
service, or, if the amount |
20 | | of the credit exceeds the tax liability for that
year, |
21 | | whether it exceeds the original liability or the liability |
22 | | as later
amended, such excess may be carried forward and |
23 | | applied to the tax
liability of the 5 taxable years |
24 | | following the excess credit year.
The credit shall be |
25 | | applied to the earliest year for which there is a
|
26 | | liability. If there is credit from more than one tax year |
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1 | | that is available
to offset a liability, the credit |
2 | | accruing first in time shall be applied
first. |
3 | | (2) The term qualified property means property which: |
4 | | (A) is tangible, whether new or used, including |
5 | | buildings and
structural components of buildings; |
6 | | (B) is depreciable pursuant to Section 167 of the |
7 | | Internal Revenue
Code, except that "3-year property" |
8 | | as defined in Section 168(c)(2)(A) of
that Code is not |
9 | | eligible for the credit provided by this subsection |
10 | | (f); |
11 | | (C) is acquired by purchase as defined in Section |
12 | | 179(d) of
the Internal Revenue Code; |
13 | | (D) is used in the Enterprise Zone or River Edge |
14 | | Redevelopment Zone by the taxpayer; and |
15 | | (E) has not been previously used in Illinois in |
16 | | such a manner and by
such a person as would qualify for |
17 | | the credit provided by this subsection
(f) or |
18 | | subsection (e). |
19 | | (3) The basis of qualified property shall be the basis |
20 | | used to compute
the depreciation deduction for federal |
21 | | income tax purposes. |
22 | | (4) If the basis of the property for federal income tax |
23 | | depreciation
purposes is increased after it has been placed |
24 | | in service in the Enterprise
Zone or River Edge |
25 | | Redevelopment Zone by the taxpayer, the amount of such |
26 | | increase shall be deemed property
placed in service on the |
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1 | | date of such increase in basis. |
2 | | (5) The term "placed in service" shall have the same |
3 | | meaning as under
Section 46 of the Internal Revenue Code. |
4 | | (6) If during any taxable year, any property ceases to |
5 | | be qualified
property in the hands of the taxpayer within |
6 | | 48 months after being placed
in service, or the situs of |
7 | | any qualified property is moved outside the
Enterprise Zone |
8 | | or River Edge Redevelopment Zone within 48 months after |
9 | | being placed in service, the tax
imposed under subsections |
10 | | (a) and (b) of this Section for such taxable year
shall be |
11 | | increased. Such increase shall be determined by (i) |
12 | | recomputing
the investment credit which would have been |
13 | | allowed for the year in which
credit for such property was |
14 | | originally allowed by eliminating such
property from such |
15 | | computation, and (ii) subtracting such recomputed credit
|
16 | | from the amount of credit previously allowed. For the |
17 | | purposes of this
paragraph (6), a reduction of the basis of |
18 | | qualified property resulting
from a redetermination of the |
19 | | purchase price shall be deemed a disposition
of qualified |
20 | | property to the extent of such reduction. |
21 | | (7) There shall be allowed an additional credit equal |
22 | | to 0.5% of the basis of qualified property placed in |
23 | | service during the taxable year in a River Edge |
24 | | Redevelopment Zone, provided such property is placed in |
25 | | service on or after July 1, 2006, and the taxpayer's base |
26 | | employment within Illinois has increased by 1% or more over |
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1 | | the preceding year as determined by the taxpayer's |
2 | | employment records filed with the Illinois Department of |
3 | | Employment Security. Taxpayers who are new to Illinois |
4 | | shall be deemed to have met the 1% growth in base |
5 | | employment for the first year in which they file employment |
6 | | records with the Illinois Department of Employment |
7 | | Security. If, in any year, the increase in base employment |
8 | | within Illinois over the preceding year is less than 1%, |
9 | | the additional credit shall be limited to that percentage |
10 | | times a fraction, the numerator of which is 0.5% and the |
11 | | denominator of which is 1%, but shall not exceed 0.5%.
|
12 | | (g) (Blank). |
13 | | (h) Investment credit; High Impact Business. |
14 | | (1) Subject to subsections (b) and (b-5) of Section
5.5 |
15 | | of the Illinois Enterprise Zone Act, a taxpayer shall be |
16 | | allowed a credit
against the tax imposed by subsections (a) |
17 | | and (b) of this Section for
investment in qualified
|
18 | | property which is placed in service by a Department of |
19 | | Commerce and Economic Opportunity
designated High Impact |
20 | | Business. The credit shall be .5% of the basis
for such |
21 | | property. The credit shall not be available (i) until the |
22 | | minimum
investments in qualified property set forth in |
23 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
24 | | Enterprise Zone Act have been satisfied
or (ii) until the |
25 | | time authorized in subsection (b-5) of the Illinois
|
26 | | Enterprise Zone Act for entities designated as High Impact |
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1 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and |
2 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone |
3 | | Act, and shall not be allowed to the extent that it would
|
4 | | reduce a taxpayer's liability for the tax imposed by |
5 | | subsections (a) and (b) of
this Section to below zero. The |
6 | | credit applicable to such investments shall be
taken in the |
7 | | taxable year in which such investments have been completed. |
8 | | The
credit for additional investments beyond the minimum |
9 | | investment by a designated
high impact business authorized |
10 | | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois |
11 | | Enterprise Zone Act shall be available only in the taxable |
12 | | year in
which the property is placed in service and shall |
13 | | not be allowed to the extent
that it would reduce a |
14 | | taxpayer's liability for the tax imposed by subsections
(a) |
15 | | and (b) of this Section to below zero.
For tax years ending |
16 | | on or after December 31, 1987, the credit shall be
allowed |
17 | | for the tax year in which the property is placed in |
18 | | service, or, if
the amount of the credit exceeds the tax |
19 | | liability for that year, whether
it exceeds the original |
20 | | liability or the liability as later amended, such
excess |
21 | | may be carried forward and applied to the tax liability of |
22 | | the 5
taxable years following the excess credit year. The |
23 | | credit shall be
applied to the earliest year for which |
24 | | there is a liability. If there is
credit from more than one |
25 | | tax year that is available to offset a liability,
the |
26 | | credit accruing first in time shall be applied first. |
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1 | | Changes made in this subdivision (h)(1) by Public Act |
2 | | 88-670
restore changes made by Public Act 85-1182 and |
3 | | reflect existing law. |
4 | | (2) The term qualified property means property which: |
5 | | (A) is tangible, whether new or used, including |
6 | | buildings and
structural components of buildings; |
7 | | (B) is depreciable pursuant to Section 167 of the |
8 | | Internal Revenue
Code, except that "3-year property" |
9 | | as defined in Section 168(c)(2)(A) of
that Code is not |
10 | | eligible for the credit provided by this subsection |
11 | | (h); |
12 | | (C) is acquired by purchase as defined in Section |
13 | | 179(d) of the
Internal Revenue Code; and |
14 | | (D) is not eligible for the Enterprise Zone |
15 | | Investment Credit provided
by subsection (f) of this |
16 | | Section. |
17 | | (3) The basis of qualified property shall be the basis |
18 | | used to compute
the depreciation deduction for federal |
19 | | income tax purposes. |
20 | | (4) If the basis of the property for federal income tax |
21 | | depreciation
purposes is increased after it has been placed |
22 | | in service in a federally
designated Foreign Trade Zone or |
23 | | Sub-Zone located in Illinois by the taxpayer,
the amount of |
24 | | such increase shall be deemed property placed in service on
|
25 | | the date of such increase in basis. |
26 | | (5) The term "placed in service" shall have the same |
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1 | | meaning as under
Section 46 of the Internal Revenue Code. |
2 | | (6) If during any taxable year ending on or before |
3 | | December 31, 1996,
any property ceases to be qualified
|
4 | | property in the hands of the taxpayer within 48 months |
5 | | after being placed
in service, or the situs of any |
6 | | qualified property is moved outside
Illinois within 48 |
7 | | months after being placed in service, the tax imposed
under |
8 | | subsections (a) and (b) of this Section for such taxable |
9 | | year shall
be increased. Such increase shall be determined |
10 | | by (i) recomputing the
investment credit which would have |
11 | | been allowed for the year in which
credit for such property |
12 | | was originally allowed by eliminating such
property from |
13 | | such computation, and (ii) subtracting such recomputed |
14 | | credit
from the amount of credit previously allowed. For |
15 | | the purposes of this
paragraph (6), a reduction of the |
16 | | basis of qualified property resulting
from a |
17 | | redetermination of the purchase price shall be deemed a |
18 | | disposition
of qualified property to the extent of such |
19 | | reduction. |
20 | | (7) Beginning with tax years ending after December 31, |
21 | | 1996, if a
taxpayer qualifies for the credit under this |
22 | | subsection (h) and thereby is
granted a tax abatement and |
23 | | the taxpayer relocates its entire facility in
violation of |
24 | | the explicit terms and length of the contract under Section
|
25 | | 18-183 of the Property Tax Code, the tax imposed under |
26 | | subsections
(a) and (b) of this Section shall be increased |
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1 | | for the taxable year
in which the taxpayer relocated its |
2 | | facility by an amount equal to the
amount of credit |
3 | | received by the taxpayer under this subsection (h). |
4 | | (i) Credit for Personal Property Tax Replacement Income |
5 | | Tax.
For tax years ending prior to December 31, 2003, a credit |
6 | | shall be allowed
against the tax imposed by
subsections (a) and |
7 | | (b) of this Section for the tax imposed by subsections (c)
and |
8 | | (d) of this Section. This credit shall be computed by |
9 | | multiplying the tax
imposed by subsections (c) and (d) of this |
10 | | Section by a fraction, the numerator
of which is base income |
11 | | allocable to Illinois and the denominator of which is
Illinois |
12 | | base income, and further multiplying the product by the tax |
13 | | rate
imposed by subsections (a) and (b) of this Section. |
14 | | Any credit earned on or after December 31, 1986 under
this |
15 | | subsection which is unused in the year
the credit is computed |
16 | | because it exceeds the tax liability imposed by
subsections (a) |
17 | | and (b) for that year (whether it exceeds the original
|
18 | | liability or the liability as later amended) may be carried |
19 | | forward and
applied to the tax liability imposed by subsections |
20 | | (a) and (b) of the 5
taxable years following the excess credit |
21 | | year, provided that no credit may
be carried forward to any |
22 | | year ending on or
after December 31, 2003. This credit shall be
|
23 | | applied first to the earliest year for which there is a |
24 | | liability. If
there is a credit under this subsection from more |
25 | | than one tax year that is
available to offset a liability the |
26 | | earliest credit arising under this
subsection shall be applied |
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1 | | first. |
2 | | If, during any taxable year ending on or after December 31, |
3 | | 1986, the
tax imposed by subsections (c) and (d) of this |
4 | | Section for which a taxpayer
has claimed a credit under this |
5 | | subsection (i) is reduced, the amount of
credit for such tax |
6 | | shall also be reduced. Such reduction shall be
determined by |
7 | | recomputing the credit to take into account the reduced tax
|
8 | | imposed by subsections (c) and (d). If any portion of the
|
9 | | reduced amount of credit has been carried to a different |
10 | | taxable year, an
amended return shall be filed for such taxable |
11 | | year to reduce the amount of
credit claimed. |
12 | | (j) Training expense credit. Beginning with tax years |
13 | | ending on or
after December 31, 1986 and prior to December 31, |
14 | | 2003, a taxpayer shall be
allowed a credit against the
tax |
15 | | imposed by subsections (a) and (b) under this Section
for all |
16 | | amounts paid or accrued, on behalf of all persons
employed by |
17 | | the taxpayer in Illinois or Illinois residents employed
outside |
18 | | of Illinois by a taxpayer, for educational or vocational |
19 | | training in
semi-technical or technical fields or semi-skilled |
20 | | or skilled fields, which
were deducted from gross income in the |
21 | | computation of taxable income. The
credit against the tax |
22 | | imposed by subsections (a) and (b) shall be 1.6% of
such |
23 | | training expenses. For partners, shareholders of subchapter S
|
24 | | corporations, and owners of limited liability companies, if the |
25 | | liability
company is treated as a partnership for purposes of |
26 | | federal and State income
taxation, there shall be allowed a |
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1 | | credit under this subsection (j) to be
determined in accordance |
2 | | with the determination of income and distributive
share of |
3 | | income under Sections 702 and 704 and subchapter S of the |
4 | | Internal
Revenue Code. |
5 | | Any credit allowed under this subsection which is unused in |
6 | | the year
the credit is earned may be carried forward to each of |
7 | | the 5 taxable
years following the year for which the credit is |
8 | | first computed until it is
used. This credit shall be applied |
9 | | first to the earliest year for which
there is a liability. If |
10 | | there is a credit under this subsection from more
than one tax |
11 | | year that is available to offset a liability the earliest
|
12 | | credit arising under this subsection shall be applied first. No |
13 | | carryforward
credit may be claimed in any tax year ending on or |
14 | | after
December 31, 2003. |
15 | | (k) Research and development credit. For tax years ending |
16 | | after July 1, 1990 and prior to
December 31, 2003, and |
17 | | beginning again for tax years ending on or after December 31, |
18 | | 2004, and ending prior to January 1, 2022, a taxpayer shall be
|
19 | | allowed a credit against the tax imposed by subsections (a) and |
20 | | (b) of this
Section for increasing research activities in this |
21 | | State. The credit
allowed against the tax imposed by |
22 | | subsections (a) and (b) shall be equal
to 6 1/2% of the |
23 | | qualifying expenditures for increasing research activities
in |
24 | | this State. For partners, shareholders of subchapter S |
25 | | corporations, and
owners of limited liability companies, if the |
26 | | liability company is treated as a
partnership for purposes of |
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1 | | federal and State income taxation, there shall be
allowed a |
2 | | credit under this subsection to be determined in accordance |
3 | | with the
determination of income and distributive share of |
4 | | income under Sections 702 and
704 and subchapter S of the |
5 | | Internal Revenue Code. |
6 | | For purposes of this subsection, "qualifying expenditures" |
7 | | means the
qualifying expenditures as defined for the federal |
8 | | credit for increasing
research activities which would be |
9 | | allowable under Section 41 of the
Internal Revenue Code and |
10 | | which are conducted in this State, "qualifying
expenditures for |
11 | | increasing research activities in this State" means the
excess |
12 | | of qualifying expenditures for the taxable year in which |
13 | | incurred
over qualifying expenditures for the base period, |
14 | | "qualifying expenditures
for the base period" means the average |
15 | | of the qualifying expenditures for
each year in the base |
16 | | period, and "base period" means the 3 taxable years
immediately |
17 | | preceding the taxable year for which the determination is
being |
18 | | made. |
19 | | Any credit in excess of the tax liability for the taxable |
20 | | year
may be carried forward. A taxpayer may elect to have the
|
21 | | unused credit shown on its final completed return carried over |
22 | | as a credit
against the tax liability for the following 5 |
23 | | taxable years or until it has
been fully used, whichever occurs |
24 | | first; provided that no credit earned in a tax year ending |
25 | | prior to December 31, 2003 may be carried forward to any year |
26 | | ending on or after December 31, 2003. |
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1 | | If an unused credit is carried forward to a given year from |
2 | | 2 or more
earlier years, that credit arising in the earliest |
3 | | year will be applied
first against the tax liability for the |
4 | | given year. If a tax liability for
the given year still |
5 | | remains, the credit from the next earliest year will
then be |
6 | | applied, and so on, until all credits have been used or no tax
|
7 | | liability for the given year remains. Any remaining unused |
8 | | credit or
credits then will be carried forward to the next |
9 | | following year in which a
tax liability is incurred, except |
10 | | that no credit can be carried forward to
a year which is more |
11 | | than 5 years after the year in which the expense for
which the |
12 | | credit is given was incurred. |
13 | | No inference shall be drawn from this amendatory Act of the |
14 | | 91st General
Assembly in construing this Section for taxable |
15 | | years beginning before January
1, 1999. |
16 | | It is the intent of the General Assembly that the research |
17 | | and development credit under this subsection (k) shall apply |
18 | | continuously for all tax years ending on or after December 31, |
19 | | 2004 and ending prior to January 1, 2022, including, but not |
20 | | limited to, the period beginning on January 1, 2016 and ending |
21 | | on the effective date of this amendatory Act of the 100th |
22 | | General Assembly. All actions taken in reliance on the |
23 | | continuation of the credit under this subsection (k) by any |
24 | | taxpayer are hereby validated. |
25 | | (l) Environmental Remediation Tax Credit. |
26 | | (i) For tax years ending after December 31, 1997 and on |
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1 | | or before
December 31, 2001, a taxpayer shall be allowed a |
2 | | credit against the tax
imposed by subsections (a) and (b) |
3 | | of this Section for certain amounts paid
for unreimbursed |
4 | | eligible remediation costs, as specified in this |
5 | | subsection.
For purposes of this Section, "unreimbursed |
6 | | eligible remediation costs" means
costs approved by the |
7 | | Illinois Environmental Protection Agency ("Agency") under
|
8 | | Section 58.14 of the Environmental Protection Act that were |
9 | | paid in performing
environmental remediation at a site for |
10 | | which a No Further Remediation Letter
was issued by the |
11 | | Agency and recorded under Section 58.10 of the |
12 | | Environmental
Protection Act. The credit must be claimed |
13 | | for the taxable year in which
Agency approval of the |
14 | | eligible remediation costs is granted. The credit is
not |
15 | | available to any taxpayer if the taxpayer or any related |
16 | | party caused or
contributed to, in any material respect, a |
17 | | release of regulated substances on,
in, or under the site |
18 | | that was identified and addressed by the remedial
action |
19 | | pursuant to the Site Remediation Program of the |
20 | | Environmental Protection
Act. After the Pollution Control |
21 | | Board rules are adopted pursuant to the
Illinois |
22 | | Administrative Procedure Act for the administration and |
23 | | enforcement of
Section 58.9 of the Environmental |
24 | | Protection Act, determinations as to credit
availability |
25 | | for purposes of this Section shall be made consistent with |
26 | | those
rules. For purposes of this Section, "taxpayer" |
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1 | | includes a person whose tax
attributes the taxpayer has |
2 | | succeeded to under Section 381 of the Internal
Revenue Code |
3 | | and "related party" includes the persons disallowed a |
4 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of |
5 | | Section 267 of the Internal
Revenue Code by virtue of being |
6 | | a related taxpayer, as well as any of its
partners. The |
7 | | credit allowed against the tax imposed by subsections (a) |
8 | | and
(b) shall be equal to 25% of the unreimbursed eligible |
9 | | remediation costs in
excess of $100,000 per site, except |
10 | | that the $100,000 threshold shall not apply
to any site |
11 | | contained in an enterprise zone as determined by the |
12 | | Department of
Commerce and Community Affairs (now |
13 | | Department of Commerce and Economic Opportunity). The |
14 | | total credit allowed shall not exceed
$40,000 per year with |
15 | | a maximum total of $150,000 per site. For partners and
|
16 | | shareholders of subchapter S corporations, there shall be |
17 | | allowed a credit
under this subsection to be determined in |
18 | | accordance with the determination of
income and |
19 | | distributive share of income under Sections 702 and 704 and
|
20 | | subchapter S of the Internal Revenue Code. |
21 | | (ii) A credit allowed under this subsection that is |
22 | | unused in the year
the credit is earned may be carried |
23 | | forward to each of the 5 taxable years
following the year |
24 | | for which the credit is first earned until it is used.
The |
25 | | term "unused credit" does not include any amounts of |
26 | | unreimbursed eligible
remediation costs in excess of the |
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1 | | maximum credit per site authorized under
paragraph (i). |
2 | | This credit shall be applied first to the earliest year
for |
3 | | which there is a liability. If there is a credit under this |
4 | | subsection
from more than one tax year that is available to |
5 | | offset a liability, the
earliest credit arising under this |
6 | | subsection shall be applied first. A
credit allowed under |
7 | | this subsection may be sold to a buyer as part of a sale
of |
8 | | all or part of the remediation site for which the credit |
9 | | was granted. The
purchaser of a remediation site and the |
10 | | tax credit shall succeed to the unused
credit and remaining |
11 | | carry-forward period of the seller. To perfect the
|
12 | | transfer, the assignor shall record the transfer in the |
13 | | chain of title for the
site and provide written notice to |
14 | | the Director of the Illinois Department of
Revenue of the |
15 | | assignor's intent to sell the remediation site and the |
16 | | amount of
the tax credit to be transferred as a portion of |
17 | | the sale. In no event may a
credit be transferred to any |
18 | | taxpayer if the taxpayer or a related party would
not be |
19 | | eligible under the provisions of subsection (i). |
20 | | (iii) For purposes of this Section, the term "site" |
21 | | shall have the same
meaning as under Section 58.2 of the |
22 | | Environmental Protection Act. |
23 | | (m) Education expense credit. Beginning with tax years |
24 | | ending after
December 31, 1999, a taxpayer who
is the custodian |
25 | | of one or more qualifying pupils shall be allowed a credit
|
26 | | against the tax imposed by subsections (a) and (b) of this |
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1 | | Section for
qualified education expenses incurred on behalf of |
2 | | the qualifying pupils.
The credit shall be equal to 25% of |
3 | | qualified education expenses, but in no
event may the total |
4 | | credit under this subsection claimed by a
family that is the
|
5 | | custodian of qualifying pupils exceed (i) $500 for tax years |
6 | | ending prior to December 31, 2017, and (ii) $750 for tax years |
7 | | ending on or after December 31, 2017. In no event shall a |
8 | | credit under
this subsection reduce the taxpayer's liability |
9 | | under this Act to less than
zero. Notwithstanding any other |
10 | | provision of law, for taxable years beginning on or after |
11 | | January 1, 2017, no taxpayer may claim a credit under this |
12 | | subsection (m) if the taxpayer's adjusted gross income for the |
13 | | taxable year exceeds (i) $500,000, in the case of spouses |
14 | | filing a joint federal tax return or (ii) $250,000, in the case |
15 | | of all other taxpayers. This subsection is exempt from the |
16 | | provisions of Section 250 of this
Act. |
17 | | For purposes of this subsection: |
18 | | "Qualifying pupils" means individuals who (i) are |
19 | | residents of the State of
Illinois, (ii) are under the age of |
20 | | 21 at the close of the school year for
which a credit is |
21 | | sought, and (iii) during the school year for which a credit
is |
22 | | sought were full-time pupils enrolled in a kindergarten through |
23 | | twelfth
grade education program at any school, as defined in |
24 | | this subsection. |
25 | | "Qualified education expense" means the amount incurred
on |
26 | | behalf of a qualifying pupil in excess of $250 for tuition, |
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1 | | book fees, and
lab fees at the school in which the pupil is |
2 | | enrolled during the regular school
year. |
3 | | "School" means any public or nonpublic elementary or |
4 | | secondary school in
Illinois that is in compliance with Title |
5 | | VI of the Civil Rights Act of 1964
and attendance at which |
6 | | satisfies the requirements of Section 26-1 of the
School Code, |
7 | | except that nothing shall be construed to require a child to
|
8 | | attend any particular public or nonpublic school to qualify for |
9 | | the credit
under this Section. |
10 | | "Custodian" means, with respect to qualifying pupils, an |
11 | | Illinois resident
who is a parent, the parents, a legal |
12 | | guardian, or the legal guardians of the
qualifying pupils. |
13 | | (n) River Edge Redevelopment Zone site remediation tax |
14 | | credit.
|
15 | | (i) For tax years ending on or after December 31, 2006, |
16 | | a taxpayer shall be allowed a credit against the tax |
17 | | imposed by subsections (a) and (b) of this Section for |
18 | | certain amounts paid for unreimbursed eligible remediation |
19 | | costs, as specified in this subsection. For purposes of |
20 | | this Section, "unreimbursed eligible remediation costs" |
21 | | means costs approved by the Illinois Environmental |
22 | | Protection Agency ("Agency") under Section 58.14a of the |
23 | | Environmental Protection Act that were paid in performing |
24 | | environmental remediation at a site within a River Edge |
25 | | Redevelopment Zone for which a No Further Remediation |
26 | | Letter was issued by the Agency and recorded under Section |
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1 | | 58.10 of the Environmental Protection Act. The credit must |
2 | | be claimed for the taxable year in which Agency approval of |
3 | | the eligible remediation costs is granted. The credit is |
4 | | not available to any taxpayer if the taxpayer or any |
5 | | related party caused or contributed to, in any material |
6 | | respect, a release of regulated substances on, in, or under |
7 | | the site that was identified and addressed by the remedial |
8 | | action pursuant to the Site Remediation Program of the |
9 | | Environmental Protection Act. Determinations as to credit |
10 | | availability for purposes of this Section shall be made |
11 | | consistent with rules adopted by the Pollution Control |
12 | | Board pursuant to the Illinois Administrative Procedure |
13 | | Act for the administration and enforcement of Section 58.9 |
14 | | of the Environmental Protection Act. For purposes of this |
15 | | Section, "taxpayer" includes a person whose tax attributes |
16 | | the taxpayer has succeeded to under Section 381 of the |
17 | | Internal Revenue Code and "related party" includes the |
18 | | persons disallowed a deduction for losses by paragraphs |
19 | | (b), (c), and (f)(1) of Section 267 of the Internal Revenue |
20 | | Code by virtue of being a related taxpayer, as well as any |
21 | | of its partners. The credit allowed against the tax imposed |
22 | | by subsections (a) and (b) shall be equal to 25% of the |
23 | | unreimbursed eligible remediation costs in excess of |
24 | | $100,000 per site. |
25 | | (ii) A credit allowed under this subsection that is |
26 | | unused in the year the credit is earned may be carried |
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1 | | forward to each of the 5 taxable years following the year |
2 | | for which the credit is first earned until it is used. This |
3 | | credit shall be applied first to the earliest year for |
4 | | which there is a liability. If there is a credit under this |
5 | | subsection from more than one tax year that is available to |
6 | | offset a liability, the earliest credit arising under this |
7 | | subsection shall be applied first. A credit allowed under |
8 | | this subsection may be sold to a buyer as part of a sale of |
9 | | all or part of the remediation site for which the credit |
10 | | was granted. The purchaser of a remediation site and the |
11 | | tax credit shall succeed to the unused credit and remaining |
12 | | carry-forward period of the seller. To perfect the |
13 | | transfer, the assignor shall record the transfer in the |
14 | | chain of title for the site and provide written notice to |
15 | | the Director of the Illinois Department of Revenue of the |
16 | | assignor's intent to sell the remediation site and the |
17 | | amount of the tax credit to be transferred as a portion of |
18 | | the sale. In no event may a credit be transferred to any |
19 | | taxpayer if the taxpayer or a related party would not be |
20 | | eligible under the provisions of subsection (i). |
21 | | (iii) For purposes of this Section, the term "site" |
22 | | shall have the same meaning as under Section 58.2 of the |
23 | | Environmental Protection Act. |
24 | | (n-1) HOPE zone site remediation tax credit. |
25 | | (1) For tax years beginning on or after January 1, |
26 | | 2018, a taxpayer shall be allowed a credit against the tax |
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1 | | imposed by subsections (a) and (b) of this Section for |
2 | | certain amounts paid for unreimbursed eligible remediation |
3 | | costs, as specified in this subsection. For purposes of |
4 | | this Section, "unreimbursed eligible remediation costs" |
5 | | means costs approved by the Illinois Environmental |
6 | | Protection Agency ("Agency") under Section 58.14a of the |
7 | | Environmental Protection Act that were paid in performing |
8 | | environmental remediation at a site within a HOPE Zone |
9 | | designated under the Community Renewal and Revitalization |
10 | | Act for which a No Further Remediation Letter was issued by |
11 | | the Agency and recorded under Section 58.10 of the |
12 | | Environmental Protection Act. The credit must be claimed |
13 | | for the taxable year in which Agency approval of the |
14 | | eligible remediation costs is granted. The credit is not |
15 | | available to any taxpayer if the taxpayer or any related |
16 | | party caused or contributed to, in any material respect, a |
17 | | release of regulated substances on, in, or under the site |
18 | | that was identified and addressed by the remedial action |
19 | | pursuant to the Site Remediation Program of the |
20 | | Environmental Protection Act. Determinations as to credit |
21 | | availability for purposes of this Section shall be made |
22 | | consistent with rules adopted by the Pollution Control |
23 | | Board pursuant to the Illinois Administrative Procedure |
24 | | Act for the administration and enforcement of Section 58.9 |
25 | | of the Environmental Protection Act. For purposes of this |
26 | | Section, "taxpayer" includes a person whose tax attributes |
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1 | | the taxpayer has succeeded to under Section 381 of the |
2 | | Internal Revenue Code and "related party" includes the |
3 | | persons disallowed a deduction for losses by paragraphs |
4 | | (b), (c), and (f)(1) of Section 267 of the Internal Revenue |
5 | | Code by virtue of being a related taxpayer, as well as any |
6 | | of its partners. The credit allowed against the tax imposed |
7 | | by subsections (a) and (b) shall be equal to 25% of the |
8 | | unreimbursed eligible remediation costs in excess of |
9 | | $100,000 per site. |
10 | | (2) A credit allowed under this subsection that is |
11 | | unused in the year the credit is earned may be carried |
12 | | forward to each of the 5 taxable years following the year |
13 | | for which the credit is first earned until it is used. This |
14 | | credit shall be applied first to the earliest year for |
15 | | which there is a liability. If there is a credit under this |
16 | | subsection from more than one tax year that is available to |
17 | | offset a liability, the earliest credit arising under this |
18 | | subsection shall be applied first. A credit allowed under |
19 | | this subsection may be sold to a buyer as part of a sale of |
20 | | all or part of the remediation site for which the credit |
21 | | was granted. The purchaser of a remediation site and the |
22 | | tax credit shall succeed to the unused credit and remaining |
23 | | carry-forward period of the seller. To perfect the |
24 | | transfer, the assignor shall record the transfer in the |
25 | | chain of title for the site and provide written notice to |
26 | | the Director of Revenue of the assignor's intent to sell |
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1 | | the remediation site and the amount of the tax credit to be |
2 | | transferred as a portion of the sale. In no event may a |
3 | | credit be transferred to any taxpayer if the taxpayer or a |
4 | | related party would not be eligible under the provisions of |
5 | | subsection (i). |
6 | | (3) For the purposes of this subsection, "HOPE Zone" |
7 | | means an area designated as a HOPE Zone by the Department |
8 | | of Commerce and Economic Opportunity under the Community |
9 | | Renewal and Revitalization Act. |
10 | | (4) The credit under this subsection (n-1) is exempt |
11 | | from the provisions of Section 250. |
12 | | (o) For each of taxable years during the Compassionate Use |
13 | | of Medical Cannabis Pilot Program, a surcharge is imposed on |
14 | | all taxpayers on income arising from the sale or exchange of |
15 | | capital assets, depreciable business property, real property |
16 | | used in the trade or business, and Section 197 intangibles of |
17 | | an organization registrant under the Compassionate Use of |
18 | | Medical Cannabis Pilot Program Act. The amount of the surcharge |
19 | | is equal to the amount of federal income tax liability for the |
20 | | taxable year attributable to those sales and exchanges. The |
21 | | surcharge imposed does not apply if: |
22 | | (1) the medical cannabis cultivation center |
23 | | registration, medical cannabis dispensary registration, or |
24 | | the property of a registration is transferred as a result |
25 | | of any of the following: |
26 | | (A) bankruptcy, a receivership, or a debt |
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1 | | adjustment initiated by or against the initial |
2 | | registration or the substantial owners of the initial |
3 | | registration; |
4 | | (B) cancellation, revocation, or termination of |
5 | | any registration by the Illinois Department of Public |
6 | | Health; |
7 | | (C) a determination by the Illinois Department of |
8 | | Public Health that transfer of the registration is in |
9 | | the best interests of Illinois qualifying patients as |
10 | | defined by the Compassionate Use of Medical Cannabis |
11 | | Pilot Program Act; |
12 | | (D) the death of an owner of the equity interest in |
13 | | a registrant; |
14 | | (E) the acquisition of a controlling interest in |
15 | | the stock or substantially all of the assets of a |
16 | | publicly traded company; |
17 | | (F) a transfer by a parent company to a wholly |
18 | | owned subsidiary; or |
19 | | (G) the transfer or sale to or by one person to |
20 | | another person where both persons were initial owners |
21 | | of the registration when the registration was issued; |
22 | | or |
23 | | (2) the cannabis cultivation center registration, |
24 | | medical cannabis dispensary registration, or the |
25 | | controlling interest in a registrant's property is |
26 | | transferred in a transaction to lineal descendants in which |
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1 | | no gain or loss is recognized or as a result of a |
2 | | transaction in accordance with Section 351 of the Internal |
3 | | Revenue Code in which no gain or loss is recognized. |
4 | | (Source: P.A. 100-22, eff. 7-6-17.) |
5 | | (35 ILCS 5/216) |
6 | | Sec. 216. Credit for wages paid to ex-felons. |
7 | | (a) For each taxable year beginning on or after January 1, |
8 | | 2007, each taxpayer is entitled to a credit against the tax |
9 | | imposed by subsections (a) and (b) of Section 201 of this Act |
10 | | in an amount equal to 5% of qualified wages paid by the |
11 | | taxpayer during the taxable year to one or more Illinois |
12 | | residents who are qualified ex-offenders. The total credit |
13 | | allowed to a taxpayer with respect to each qualified |
14 | | ex-offender may not exceed $1,500 for all taxable years , except |
15 | | that a taxpayer operating a business in a HOPE Zone under the |
16 | | Community Renewal and Revitalization Act shall be allowed a |
17 | | total credit up to $3,000 with respect to each qualified |
18 | | ex-offender for all taxable years . For partners, shareholders |
19 | | of Subchapter S corporations, and owners of limited liability |
20 | | companies, if the liability company is treated as a partnership |
21 | | for purposes of federal and State income taxation, there shall |
22 | | be allowed a credit under this Section to be determined in |
23 | | accordance with the determination of income and distributive |
24 | | share of income under Sections 702 and 704 and Subchapter S of |
25 | | the Internal Revenue Code. |
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1 | | (b) For purposes of this Section, "qualified wages": |
2 | | (1) includes only wages that are subject to federal |
3 | | unemployment tax under Section 3306 of the Internal Revenue |
4 | | Code, without regard to any dollar limitation contained in |
5 | | that Section;
|
6 | | (2) does not include any amounts paid or incurred by an |
7 | | employer for any period to any qualified ex-offender for |
8 | | whom the employer receives federally funded payments for |
9 | | on-the-job training of that qualified ex-offender for that |
10 | | period;
and
|
11 | | (3) includes only wages attributable to service |
12 | | rendered during the one-year period beginning with the day |
13 | | the qualified ex-offender begins work for the employer.
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14 | | If the taxpayer has received any payment from a program |
15 | | established under Section 482(e)(1) of the federal Social |
16 | | Security Act with respect to a qualified ex-offender, then, for |
17 | | purposes of calculating the credit under this Section, the |
18 | | amount of the qualified wages paid to that qualified |
19 | | ex-offender must be reduced by the amount of the payment.
|
20 | | (c) For purposes of this Section, "qualified ex-offender" |
21 | | means any person who:
|
22 | | (1) has been convicted of a crime in this State or of |
23 | | an offense in any other jurisdiction, not including any |
24 | | offense or attempted offense that would subject a person to |
25 | | registration under the Sex Offender Registration Act; |
26 | | (2) was sentenced to a period of incarceration in an |
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1 | | Illinois adult correctional center; and |
2 | | (3) was hired by the taxpayer within 5 3 years after |
3 | | being released from an Illinois adult correctional center. |
4 | | (d) In no event shall a credit under this Section reduce |
5 | | the taxpayer's liability to less than zero. If the amount of |
6 | | the credit exceeds the tax liability for the year, the excess |
7 | | may be carried forward and applied to the tax liability of the |
8 | | 5 taxable years following the excess credit year. The tax |
9 | | credit shall be applied to the earliest year for which there is |
10 | | a tax liability. If there are credits for more than one year |
11 | | that are available to offset a liability, the earlier credit |
12 | | shall be applied first.
|
13 | | (e) This Section is exempt from the provisions of Section |
14 | | 250. |
15 | | (Source: P.A. 98-165, eff. 8-5-13.) |
16 | | (35 ILCS 5/227 new) |
17 | | Sec. 227. Business credit; HOPE Zone. |
18 | | (a) A business that, during the taxable year, maintains |
19 | | operations within a HOPE Zone designated by the Department of |
20 | | Commerce and Economic Opportunity under the Community Renewal |
21 | | and Revitalization Act is entitled to a credit against the |
22 | | taxes imposed under subsections (a) and (b) of Section 201 in |
23 | | an amount equal to 50% of the taxpayer's liability for the |
24 | | taxable year, calculated without regard to the application of |
25 | | this credit. |
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1 | | (b) For partners, shareholders of subchapter S |
2 | | corporations, and members of limited liability companies that |
3 | | are treated as partnerships for purposes of federal and State |
4 | | income taxation, there shall be allowed a credit under this |
5 | | subsection to be determined in accordance with the |
6 | | determination of income and distributive share of income under |
7 | | Sections 702 and 704 and subchapter S of the Internal Revenue |
8 | | Code. |
9 | | (c) In no event shall a credit under this Section reduce |
10 | | the taxpayer's liability to less than zero. If the amount of |
11 | | the credit exceeds the tax liability for the year, the excess |
12 | | may be carried forward and applied to the tax liability of the |
13 | | 5 taxable years following the excess credit year. The tax |
14 | | credit shall be applied to the earliest year for which there is |
15 | | a tax liability. If there are credits for more than one year |
16 | | that are available to offset a liability, the earlier credit |
17 | | shall be applied first. |
18 | | (d) This Section is exempt from the provisions of Section |
19 | | 250. |
20 | | (35 ILCS 5/228 new) |
21 | | Sec. 228. Individual credit; HOPE Zone. |
22 | | (a) An individual taxpayer with a principal place of |
23 | | residence within a HOPE Zone designated by the Department of |
24 | | Commerce and Economic Opportunity under the Community Renewal |
25 | | and Revitalization Act is entitled to a credit against the |
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1 | | taxes imposed under subsections (a) and (b) of Section 201 in |
2 | | an amount equal to 50% of the taxpayer's liability for the |
3 | | taxable year, calculated without regard to the application of |
4 | | this credit. |
5 | | (b) In no event shall a credit under this Section reduce |
6 | | the taxpayer's liability to less than zero. If the amount of |
7 | | the credit exceeds the tax liability for the year, the excess |
8 | | may be carried forward and applied to the tax liability of the |
9 | | 5 taxable years following the excess credit year. The tax |
10 | | credit shall be applied to the earliest year for which there is |
11 | | a tax liability. If there are credits for more than one year |
12 | | that are available to offset a liability, the earlier credit |
13 | | shall be applied first. |
14 | | (c) This Section is exempt from the provisions of Section |
15 | | 250. |
16 | | Section 905. The Small Business Job Creation Tax Credit Act |
17 | | is amended by changing Sections 25 and 30 as follows: |
18 | | (35 ILCS 25/25)
|
19 | | Sec. 25. Tax credit. |
20 | | (a) Subject to the conditions set forth in this Act, an |
21 | | applicant is entitled to a credit against payment of taxes |
22 | | withheld under Section 704A of the Illinois Income Tax Act: |
23 | | (1) for new employees who participated as |
24 | | worker-trainees in the Put Illinois to Work Program during |
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1 | | 2010: |
2 | | (A) in the first calendar year ending on or after |
3 | | the date that is 6 months after December 31, 2010, or |
4 | | the date of hire, whichever is later. Under this |
5 | | subparagraph, the applicant is entitled to one-half of |
6 | | the credit allowable for each new employee who is |
7 | | employed for at least 6 months after the date of hire; |
8 | | and |
9 | | (B) in the first calendar year ending on or after |
10 | | the date that is 12 months after December 31, 2010, or |
11 | | the date of hire, whichever is later. Under this |
12 | | subparagraph, the applicant is entitled to one-half of |
13 | | the credit allowable for each new employee who is |
14 | | employed for at least 12 months after the date of hire; |
15 | | (2) for all other new employees, in the first calendar |
16 | | year ending on or after the date that is 12 months after |
17 | | the date of hire of a new employee. The credit shall be |
18 | | allowed as a credit to an applicant for each full-time |
19 | | employee hired during the incentive period that results in |
20 | | a net increase in full-time Illinois employees, where the |
21 | | net increase in the employer's full-time Illinois |
22 | | employees is maintained for at least 12 months. |
23 | | (b) The Department shall make credit awards under this Act |
24 | | to further job creation. |
25 | | (c) The credit shall be claimed for the first calendar year |
26 | | ending on or after the date on which the certificate is issued |
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1 | | by the Department. |
2 | | (d) The credit shall not exceed $2,500 per new employee |
3 | | hired ; however, businesses operating within HOPE Zones under |
4 | | the Community Renewal and Revitalization Act shall be allowed a |
5 | | credit up to $5,000 per new employee hired . |
6 | | (e) The net increase in full-time Illinois employees, |
7 | | measured on an annual full-time equivalent basis, shall be the |
8 | | total number of full-time Illinois employees of the applicant |
9 | | on the final day of the incentive period, minus the number of |
10 | | full-time Illinois employees employed by the employer on the |
11 | | first day of that same incentive period. For purposes of the |
12 | | calculation, an employer that begins doing business in this |
13 | | State during the incentive period, as determined by the |
14 | | Director, shall be treated as having zero Illinois employees on |
15 | | the first day of the incentive period. |
16 | | (f) The net increase in the number of full-time Illinois |
17 | | employees of the applicant under subsection (e) must be |
18 | | sustained continuously for at least 12 months, starting with |
19 | | the date of hire of a new employee during the incentive period. |
20 | | Eligibility for the credit does not depend on the continuous |
21 | | employment of any particular individual. For purposes of this |
22 | | subsection (f), if a new employee ceases to be employed before |
23 | | the completion of the 12-month period for any reason, the net |
24 | | increase in the number of full-time Illinois employees shall be |
25 | | treated as continuous if a different new employee is hired as a |
26 | | replacement within a reasonable time for the same position.
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1 | | (g) The Department shall promulgate rules to enable an |
2 | | applicant for which a PEO has been contracted to issue W-2s and |
3 | | make payment of taxes withheld under Section 704A of the |
4 | | Illinois Income Tax Act for new employees to retain the benefit |
5 | | of tax credits to which the applicant is otherwise entitled |
6 | | under this Act. |
7 | | (Source: P.A. 96-888, eff. 4-13-10; 96-1498, eff. 1-18-11; |
8 | | 97-636, eff. 6-1-12; 97-1052, eff. 8-23-12.) |
9 | | (35 ILCS 25/30)
|
10 | | Sec. 30. Maximum amount of credits allowed. The Department |
11 | | shall limit the monetary amount of credits awarded under this |
12 | | Act to no more than $100,000,000 $50,000,000 . If applications |
13 | | for a greater amount are received, credits shall be allowed on |
14 | | a first-come-first-served basis, based on the date on which |
15 | | each properly completed application for a certificate of |
16 | | eligibility is received by the Department. If more than one |
17 | | certificate of eligibility is received on the same day, the |
18 | | credits will be awarded based on the time of submission for |
19 | | that particular day.
|
20 | | (Source: P.A. 96-888, eff. 4-13-10.) |
21 | | Section 910. The Retailers' Occupation Tax Act is amended |
22 | | by changing Section 5k as follows:
|
23 | | (35 ILCS 120/5k) (from Ch. 120, par. 444k)
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1 | | Sec. 5k. Building materials exemption; enterprise zone. |
2 | | (a) Each retailer who makes a qualified sale of building
|
3 | | materials
to be incorporated into real estate in a HOPE Zone |
4 | | established under the Community Renewal and Revitalization Act |
5 | | or an enterprise zone
established by a county or municipality |
6 | | under the Illinois Enterprise Zone
Act
by remodeling,
|
7 | | rehabilitation or new construction, may deduct receipts from |
8 | | such sales
when calculating the tax imposed by this Act.
For |
9 | | purposes of this Section, before July 1, 2013, "qualified sale" |
10 | | means a sale of building
materials that will be incorporated |
11 | | into real estate as part of a building
project for which a |
12 | | Certificate of Eligibility for Sales Tax Exemption has been
|
13 | | issued by the administrator of the enterprise zone in which the |
14 | | building
project is located, and on and after July 1, 2013, |
15 | | "qualified sale" means a sale of building materials that will |
16 | | be incorporated into real estate as part of a building project |
17 | | for which an Enterprise Zone Building Materials Exemption |
18 | | Certificate or a HOPE Zone Building Materials Exemption |
19 | | Certificate has been issued to the purchaser by the Department. |
20 | | A construction contractor or other entity shall not make |
21 | | tax-free purchases unless it has an active Exemption |
22 | | Certificate issued by the Department at the time of the |
23 | | purchase. |
24 | | (b) Before July 1, 2013, to document the exemption allowed |
25 | | under this Section, the
retailer must obtain from the purchaser |
26 | | a copy of the Certificate of
Eligibility for Sales Tax |
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1 | | Exemption issued by the administrator of the
enterprise zone |
2 | | into which the building materials will be incorporated. On and |
3 | | after July 1, 2013, to document the exemption allowed under |
4 | | this Section, the retailer must obtain from the purchaser the |
5 | | certification required under subsection (c), which must |
6 | | contain the Enterprise Zone Building Materials Exemption |
7 | | Certificate number issued to the purchaser by the Department.
|
8 | | Upon request from the enterprise zone administrator, the |
9 | | Department shall issue an Enterprise Zone Building Materials |
10 | | Exemption Certificate for each construction contractor or |
11 | | other entity identified by the enterprise zone administrator. |
12 | | Upon request from the corporate authorities of the municipality |
13 | | in which a HOPE Zone is located, the Department shall issue a |
14 | | HOPE Zone Building Materials Exemption Certificate for each |
15 | | construction contractor or other entity identified by the |
16 | | corporate authorities. The Department shall make the Exemption |
17 | | Certificates available directly to each enterprise zone |
18 | | administrator, construction contractor, or other entity. The |
19 | | request for Enterprise Zone Building Materials Exemption |
20 | | Certificates from the enterprise zone administrator or the |
21 | | corporate authorities to the Department must include the |
22 | | following information: |
23 | | (1) the name and address of the construction contractor |
24 | | or other entity; |
25 | | (2) the name and number of the enterprise zone or HOPE |
26 | | Zone ; |
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1 | | (3) the name and location or address of the building |
2 | | project in the enterprise zone or HOPE Zone ; |
3 | | (4) the estimated amount of the exemption for each |
4 | | construction contractor or other entity for which a request |
5 | | for Exemption Certificate is made, based on a stated |
6 | | estimated average tax rate and the percentage of the |
7 | | contract that consists of materials; |
8 | | (5) the period of time over which supplies for the |
9 | | project are expected to be purchased; and |
10 | | (6) other reasonable information as the Department may |
11 | | require, including, but not limited to FEIN numbers, to |
12 | | determine if the contractor or other entity, or any |
13 | | partner, or a corporate officer, and in the case of a |
14 | | limited liability company, any manager or member, of the |
15 | | construction contractor or other entity, is or has been the |
16 | | owner, a partner, a corporate officer, and in the case of a |
17 | | limited liability company, a manager or member, of a person |
18 | | that is in default for moneys due to the Department under |
19 | | this Act or any other tax or fee Act administered by the |
20 | | Department. |
21 | | The Department shall issue the Enterprise Zone Building |
22 | | Materials Exemption Certificates within 3 business days after |
23 | | receipt of request from the zone administrator or corporate |
24 | | authorities . This requirement does not apply in circumstances |
25 | | where the Department, for reasonable cause, is unable to issue |
26 | | the Exemption Certificate within 3 business days. The |
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1 | | Department may refuse to issue an Exemption Certificate if the |
2 | | owner, any partner, or a corporate officer, and in the case of |
3 | | a limited liability company, any manager or member, of the |
4 | | construction contractor or other entity is or has been the |
5 | | owner, a partner, a corporate officer, and in the case of a |
6 | | limited liability company, a manager or member, of a person |
7 | | that is in default for moneys due to the Department under this |
8 | | Act or any other tax or fee Act administered by the Department. |
9 | | The Enterprise Zone Building Materials Exemption Certificate |
10 | | shall contain language stating that if the construction |
11 | | contractor or other entity who is issued the Exemption |
12 | | Certificate makes a tax-exempt purchase, as described in this |
13 | | Section, that is not eligible for exemption under this Section |
14 | | or allows another person to make a tax-exempt purchase, as |
15 | | described in this Section, that is not eligible for exemption |
16 | | under this Section, then, in addition to any tax or other |
17 | | penalty imposed, the construction contractor or other entity is |
18 | | subject to a penalty equal to the tax that would have been paid |
19 | | by the retailer under this Act as well as any applicable local |
20 | | retailers' occupation tax on the purchase that is not eligible |
21 | | for the exemption. |
22 | | The Department, in its discretion, may require that |
23 | | requests the request for Enterprise Zone Building Materials |
24 | | Exemption Certificates be submitted electronically. The |
25 | | Department may, in its discretion, issue the Exemption |
26 | | Certificates electronically. The Enterprise Zone Building |
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1 | | Materials Exemption Certificate number shall be designed in |
2 | | such a way that the Department can identify from the unique |
3 | | number on the Exemption Certificate issued to a given |
4 | | construction contractor or other entity, the name of the |
5 | | Enterprise Zone or HOPE Zone , the project for which the |
6 | | Exemption Certificate is issued, and the construction |
7 | | contractor or other entity to whom the Exemption Certificate is |
8 | | issued. The Exemption Certificate shall contain an expiration |
9 | | date, which shall be no more than 2 years after the date of |
10 | | issuance. At the request of the zone administrator, the |
11 | | Department may renew an Exemption Certificate. After the |
12 | | Department issues Exemption Certificates for a given |
13 | | enterprise zone project, the enterprise zone administrator or |
14 | | corporate authorities may notify the Department of additional |
15 | | construction contractors or other entities eligible for an |
16 | | Enterprise Zone Building Materials Exemption Certificate. Upon |
17 | | notification by the enterprise zone administrator or corporate |
18 | | authorities and subject to the other provisions of this |
19 | | subsection (b), the Department shall issue an Enterprise Zone |
20 | | Building Materials Exemption Certificate to each additional |
21 | | construction contractor or other entity identified by the |
22 | | enterprise zone administrator or corporate authorities . An |
23 | | enterprise zone administrator may notify the Department to |
24 | | rescind an Enterprise Zone Building Materials Exemption |
25 | | Certificate previously issued by the Department but that has |
26 | | not yet expired ; the corporate authorities of the municipality |
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1 | | may notify the Department to rescind a HOPE Zone Building |
2 | | Materials Exemption Certificate previously issued by the |
3 | | Department but that has not yet expired . Upon such notification |
4 | | by the enterprise zone administrator and subject to the other |
5 | | provisions of this subsection (b), the Department shall issue |
6 | | the rescission of the Enterprise Zone Building Materials |
7 | | Exemption Certificate to the construction contractor or other |
8 | | entity identified by the enterprise zone administrator or |
9 | | corporate authorities and provide a copy to the enterprise zone |
10 | | administrator or corporate authorities . |
11 | | If the Department of Revenue determines that a construction |
12 | | contractor or other entity that was issued an Exemption |
13 | | Certificate under this subsection (b) made a tax-exempt |
14 | | purchase, as described in this Section, that was not eligible |
15 | | for exemption under this Section or allowed another person to |
16 | | make a tax-exempt purchase, as described in this Section, that |
17 | | was not eligible for exemption under this Section, then, in |
18 | | addition to any tax or other penalty imposed, the construction |
19 | | contractor or other entity is subject to a penalty equal to the |
20 | | tax that would have been paid by the retailer under this Act as |
21 | | well as any applicable local retailers' occupation tax on the |
22 | | purchase that was not eligible for the exemption.
|
23 | | (c) In addition, the retailer must obtain certification |
24 | | from the purchaser that
contains:
|
25 | | (1) a statement that the building materials are being |
26 | | purchased for
incorporation into real estate located in an |
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1 | | Illinois enterprise zone or HOPE Zone ;
|
2 | | (2) the location or address of the real estate into |
3 | | which the building
materials will be incorporated;
|
4 | | (3) the name of the enterprise zone in which that real |
5 | | estate is located;
|
6 | | (4) a description of the building materials being |
7 | | purchased;
|
8 | | (5) on and after July 1, 2013, the purchaser's |
9 | | Enterprise Zone Building Materials Exemption Certificate |
10 | | number issued by the Department; and |
11 | | (6) the purchaser's signature and date of purchase.
|
12 | | (d) The deduction allowed by
this Section for the sale of |
13 | | building materials may be limited, to the
extent authorized by |
14 | | ordinance, adopted after the effective date of this
amendatory |
15 | | Act of 1992, by the municipality or county that created the
|
16 | | enterprise zone
into which the
building materials will be |
17 | | incorporated.
The ordinance, however, may neither require nor |
18 | | prohibit the purchase of
building materials from any retailer |
19 | | or class of retailers in order to qualify
for the exemption |
20 | | allowed under this Section. The provisions of this Section
are |
21 | | exempt from Section
2-70.
|
22 | | (e) Notwithstanding anything to the contrary in this |
23 | | Section, for enterprise zone projects already in existence and |
24 | | for which construction contracts are already in place on July |
25 | | 1, 2013, the request for Enterprise Zone Building Materials |
26 | | Exemption Certificates from the enterprise zone administrator |
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1 | | to the Department for these pre-existing construction |
2 | | contractors and other entities must include the information |
3 | | required under subsection (b), but not including the |
4 | | information listed in items (4) and (5). For any new |
5 | | construction contract entered into on or after July 1, 2013, |
6 | | however, all of the information in subsection (b) must be |
7 | | provided. |
8 | | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
|
9 | | Section 915. The Environmental Protection Act is amended by |
10 | | changing Section 58.14a as follows: |
11 | | (415 ILCS 5/58.14a) |
12 | | Sec. 58.14a. River Edge Redevelopment Zone Site |
13 | | Remediation Tax Credit Review. |
14 | | (a) Prior to applying for the River Edge Redevelopment Zone |
15 | | site remediation tax credit under subsection (n) of Section 201 |
16 | | of the Illinois Income Tax Act or a HOPE Zone site remediation |
17 | | tax credit under subsection (n-1) of Section 201 of the |
18 | | Illinois Income Tax Act , a Remediation Applicant must first |
19 | | submit to the Agency an application for review of remediation |
20 | | costs. The Agency shall review the application in consultation |
21 | | with the Department of Commerce and Economic Opportunity. The |
22 | | application and review process must be conducted in accordance |
23 | | with the requirements of this Section and the rules adopted |
24 | | under subsection (g). A preliminary review of the estimated |
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1 | | remediation costs for development and implementation of the |
2 | | Remedial Action Plan may be obtained in accordance with |
3 | | subsection (d). |
4 | | (b) No application for review may be submitted until a No |
5 | | Further Remediation Letter has been issued by the Agency and |
6 | | recorded in the chain of title for the site in accordance with |
7 | | Section 58.10. The Agency shall review the application to |
8 | | determine whether the costs submitted are remediation costs and |
9 | | whether the costs incurred are reasonable. The application must |
10 | | be on forms prescribed and provided by the Agency. At a |
11 | | minimum, the application must include the following: |
12 | | (1) information identifying the Remediation Applicant, |
13 | | the site for which the tax credit is being sought, and the |
14 | | date of acceptance of the site into the Site Remediation |
15 | | Program; |
16 | | (2) a copy of the No Further Remediation Letter with |
17 | | official verification that the letter has been recorded in |
18 | | the chain of title for the site and a demonstration that |
19 | | the site for which the application is submitted is the same |
20 | | site as the one for which the No Further Remediation Letter |
21 | | is issued; |
22 | | (3) a demonstration that the release of the regulated |
23 | | substances of concern for which the No Further Remediation |
24 | | Letter was issued were not caused or contributed to in any |
25 | | material respect by the Remediation Applicant. |
26 | | Determinations as to credit availability shall be made |
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1 | | consistent with the Pollution Control Board rules for the |
2 | | administration and enforcement of Section 58.9 of this Act; |
3 | | (4) an itemization and documentation, including |
4 | | receipts, of the remediation costs incurred; |
5 | | (5) a demonstration that the costs incurred are |
6 | | remediation costs as defined in this Act and its rules; |
7 | | (6) a demonstration that the costs submitted for review |
8 | | were incurred by the Remediation Applicant who received the |
9 | | No Further Remediation Letter; |
10 | | (7) an application fee in the amount set forth in |
11 | | subsection (e) for each site for which review of |
12 | | remediation costs is requested and, if applicable, |
13 | | certification from the Department of Commerce and Economic |
14 | | Opportunity that the site is located in a River Edge |
15 | | Redevelopment Zone or a HOPE Zone ; and |
16 | | (8) any other information deemed appropriate by the |
17 | | Agency. |
18 | | (c) Within 60 days after receipt by the Agency of an |
19 | | application meeting the requirements of subsection (b), the |
20 | | Agency shall issue a letter to the applicant approving, |
21 | | disapproving, or modifying the remediation costs submitted in |
22 | | the application. If the remediation costs are approved as |
23 | | submitted, then the Agency's letter must state the amount of |
24 | | the remediation costs to be applied toward the River Edge |
25 | | Redevelopment Zone site remediation tax credit. If an |
26 | | application is disapproved or approved with modification of |
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1 | | remediation costs, then the Agency's letter must set forth the |
2 | | reasons for the disapproval or modification and must state the |
3 | | amount of the remediation costs, if any, to be applied toward |
4 | | the River Edge Redevelopment Zone site remediation tax credit. |
5 | | If a preliminary review of a budget plan has been obtained |
6 | | under subsection (d), then the Remediation Applicant may |
7 | | submit, with the application and supporting documentation |
8 | | under subsection (b), a copy of the Agency's final |
9 | | determination accompanied by a certification that the actual |
10 | | remediation costs incurred for the development and |
11 | | implementation of the Remedial Action Plan are equal to or less |
12 | | than the costs approved in the Agency's final determination on |
13 | | the budget plan. The certification must be signed by the |
14 | | Remediation Applicant and notarized. Based on that submission, |
15 | | the Agency is not required to conduct further review of the |
16 | | costs incurred for development and implementation of the |
17 | | Remedial Action Plan, and it may approve the costs as |
18 | | submitted.
Within 35 days after the receipt of an Agency letter |
19 | | disapproving or modifying an application for approval of |
20 | | remediation costs, the Remediation Applicant may appeal the |
21 | | Agency's decision to the Board in the manner provided for the |
22 | | review of permits under Section 40 of this Act. |
23 | | (d) A Remediation Applicant may obtain a preliminary review |
24 | | of estimated remediation costs for the development and |
25 | | implementation of the Remedial Action Plan by submitting a |
26 | | budget plan along with the Remedial Action Plan. The budget |
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1 | | plan must be set forth on forms prescribed and provided by the |
2 | | Agency and must include, without limitation, line-item |
3 | | estimates of the costs associated with each line item (such as |
4 | | personnel, equipment, and materials) that the Remediation |
5 | | Applicant anticipates will be incurred for the development and |
6 | | implementation of the Remedial Action Plan. The Agency shall |
7 | | review the budget plan along with the Remedial Action Plan to |
8 | | determine whether the estimated costs submitted are |
9 | | remediation costs and whether the costs estimated for the |
10 | | activities are reasonable. |
11 | | If the Remedial Action Plan is amended by the Remediation |
12 | | Applicant or as a result of Agency action, then the |
13 | | corresponding budget plan must be revised accordingly and |
14 | | resubmitted for Agency review. |
15 | | The budget plan must be accompanied by the applicable fee |
16 | | as set forth in subsection (e). |
17 | | The submittal of a budget plan is deemed to be an automatic |
18 | | 60-day waiver of the Remedial Action Plan review deadlines set |
19 | | forth in this Section and its rules. |
20 | | Within the applicable period of review, the Agency shall |
21 | | issue a letter to the Remediation Applicant approving, |
22 | | disapproving, or modifying the estimated remediation costs |
23 | | submitted in the budget plan. If a budget plan is disapproved |
24 | | or approved with modification of estimated remediation costs, |
25 | | then the Agency's letter must set forth the reasons for the |
26 | | disapproval or modification. |
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1 | | Within 35 days after receipt of an Agency letter |
2 | | disapproving or modifying a budget plan, the Remediation |
3 | | Applicant may appeal the Agency's decision to the Board in the |
4 | | manner provided for the review of permits under Section 40 of |
5 | | this Act. |
6 | | (e) Any fee for a review conducted under this Section is in |
7 | | addition to any other fees or payments for Agency services |
8 | | rendered under the Site Remediation Program. The fees under |
9 | | this Section are as follows: |
10 | | (1) the fee for an application for review of |
11 | | remediation costs is $250 for each site reviewed; and |
12 | | (2) there is no fee for the review of the budget plan |
13 | | submitted under subsection (d). |
14 | | The application fee must be made payable to the State of |
15 | | Illinois, for deposit into the Hazardous Waste Fund.
Pursuant |
16 | | to appropriation, the Agency shall use the fees collected under |
17 | | this subsection for development and administration of the |
18 | | review program. |
19 | | (f) The Agency has the authority to enter into any |
20 | | contracts or agreements that may be necessary to carry out its |
21 | | duties and responsibilities under this Section. |
22 | | (g) The Agency shall adopt rules prescribing procedures and |
23 | | standards for its administration of this Section. Prior to the
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24 | | effective date of rules adopted under this Section, the Agency |
25 | | may conduct reviews of applications under this Section. The |
26 | | Agency may publish informal guidelines concerning this Section |