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Sen. Adriane Johnson
Filed: 4/16/2021
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1 | | AMENDMENT TO SENATE BILL 1084
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1084 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "ARTICLE 1. Findings |
5 | | Section 1-5. Findings. The General Assembly finds that: |
6 | | (a) The growing clean energy economy in Illinois can be a |
7 | | vehicle for expanding equitable access to public health, |
8 | | safety, a cleaner environment, quality jobs, economic |
9 | | opportunity, and wealth-building, particularly in economically |
10 | | disadvantaged communities and communities of black, |
11 | | indigenous, and people of color that have had to bear the |
12 | | disproportionate burden of dirty fossil fuel pollution. |
13 | | (b) Placing Illinois on a path to 100% renewable energy is |
14 | | vital to a clean energy future. To bring this vision to |
15 | | fruition, our energy policy must prioritize a just transition |
16 | | that incentivizes renewable development and other |
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1 | | carbon-reducing policies, such as energy efficiency, |
2 | | beneficial electrification, and peak demand reduction, while |
3 | | ensuring that the benefits and opportunities of a carbon-free |
4 | | future are accessible in economically disadvantaged |
5 | | communities, environmental justice communities, and |
6 | | communities of black, indigenous, and people of color. |
7 | | (c) In the wake of federal reversals on climate action, |
8 | | the State of Illinois should pursue immediate action on |
9 | | policies that will ensure a just and responsible phase out of |
10 | | fossil fuels from the power sector to reduce harmful emissions |
11 | | from Illinois power plants, support power plant communities |
12 | | and workers, and allow the clean energy economy to continue |
13 | | growing in every corner of Illinois. |
14 | | (d) Illinois needs to adopt a broad-based policy approach |
15 | | to decarbonize Illinois' electric sector (including |
16 | | electricity production and consumption) in a just and |
17 | | equitable manner that puts our State on track to phase out |
18 | | carbon dioxide emitting power plants by 2030. |
19 | | (e) Illinois' policy approach must ensure the reduction of |
20 | | co-pollutant emissions that cause serious local health |
21 | | impacts, prioritizing environmental justice communities near |
22 | | power plants. |
23 | | (f) As we decarbonize Illinois' electric sector, Illinois |
24 | | must create new investment to stimulate the economic and |
25 | | environmental well-being of communities disproportionately |
26 | | impacted by the historical operation of, and recent or |
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1 | | expected closures of, fossil fuel power plants and coal mining |
2 | | operations. |
3 | | ARTICLE 5. Energy Community Reinvestment Act |
4 | | Section 5-1. Short title. This Article may be cited as the |
5 | | Energy Community Reinvestment Act. References in this Article |
6 | | to "this Act" mean
this Article. |
7 | | Section 5-5. Findings. The General Assembly finds that, as |
8 | | part of putting Illinois on a path to 100% renewable energy, |
9 | | the State of Illinois should ensure a just transition to that |
10 | | goal, providing support for the transition of Illinois' |
11 | | communities and workers impacted by closures or reduced use of |
12 | | fossil fuel power plants, nuclear power plants, or coal mines |
13 | | by allocating new economic development resources for business |
14 | | tax incentives, workforce training, site clean-up and reuse, |
15 | | and local tax revenue replacement. |
16 | | The General Assembly finds and declares that the health, |
17 | | safety, and welfare of the people of this State are dependent |
18 | | upon a healthy economy and vibrant communities; that the |
19 | | closure of fossil fuel power plants, nuclear power plants, and |
20 | | coal mines across the State have a significant impact on their |
21 | | surrounding communities; that the expansion of renewable |
22 | | energy creates significant job growth and contributes |
23 | | significantly to the health, safety, and welfare of the people |
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1 | | of this State; that the continual encouragement, development, |
2 | | growth, and expansion of renewable energy within the State |
3 | | requires a cooperative and continuous partnership between |
4 | | government and the renewable energy sector; and that there are |
5 | | certain areas in this State that have lost, or will lose, jobs |
6 | | due to the closure of fossil fuel power plants, nuclear power |
7 | | plants, and coal mines and need the particular attention of |
8 | | government, labor, and the residents of Illinois to help |
9 | | attract new investment into these areas and directly aid the |
10 | | local community and its residents. |
11 | | Therefore, it is declared to be the purpose of this Act to |
12 | | explore ways of stimulating the growth of new private |
13 | | investment, including renewable energy investment, in this |
14 | | State and to foster job growth in areas impacted by the closure |
15 | | of coal energy plants, coal mines, and nuclear energy plants.
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16 | | Section 5-10. Definitions. As used in this Act, unless the |
17 | | context otherwise requires:
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18 | | "State agencies" or "agencies" has the same meaning as |
19 | | "State agencies" under Section 1-7 of the Illinois State |
20 | | Auditing Act.
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21 | | "Board" means the Clean Energy Empowerment Zone Board |
22 | | created in Section 5-20.
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23 | | "Clean Energy Empowerment Zone" or "Empowerment Zones" |
24 | | means an area of the State certified by the Department as a |
25 | | Clean Energy Empowerment Zone under this Act.
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1 | | "Commission" means the Energy Transition Workforce |
2 | | Commission created in Section 5-45.
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3 | | "Department" means the Department of Commerce and Economic |
4 | | Opportunity.
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5 | | "Displaced energy worker" means an energy worker who has |
6 | | lost employment, or is anticipated by the Department to lose |
7 | | employment within the next 2 years, due to the reduced |
8 | | operation or closure of a fossil fuel power plant, nuclear |
9 | | power plant, or coal mine. |
10 | | "Energy worker" means a person who has been employed |
11 | | full-time for a period of one year or longer, and within the |
12 | | previous 5 years, at a fossil fuel power plant, a nuclear power |
13 | | plant, or a coal mine located within the State of Illinois, |
14 | | whether or not they are employed by the owner of the power |
15 | | plant or mine. Energy workers are considered to be full-time |
16 | | if they work at least 35 hours per week for 45 weeks a year or |
17 | | the 1,820 work-hour equivalent with vacations, paid holidays, |
18 | | and sick time, but not overtime, included in this computation. |
19 | | Classification of an individual as an energy worker continues |
20 | | for 5 years from the latest date of employment or the effective |
21 | | date of this Act, whichever is later. |
22 | | "Environmental justice communities" means the definition |
23 | | of that term based on existing methodologies and findings, |
24 | | used and as may be updated by the Illinois Power Agency and its |
25 | | program administrator in the Illinois Solar for All Program. |
26 | | "Fossil fuel power plant" means an electric generating |
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1 | | facility powered by gas, coal, other fossil fuels, or a |
2 | | combination thereof. |
3 | | "Low-income" means persons and families whose income does |
4 | | not exceed 80% of area median income, adjusted for family size |
5 | | and revised every 2 years. |
6 | | "Local labor market area" means an economically integrated |
7 | | area within which individuals reside and find employment |
8 | | within a reasonable distance of their places of residence or |
9 | | can readily change jobs without changing their places of |
10 | | residence. |
11 | | "Renewable energy enterprise" means a company that is |
12 | | engaged in the production, manufacturing, distribution, or |
13 | | development of renewable energy resources and associated |
14 | | technologies. |
15 | | "Renewable energy project" means a project conducted by a |
16 | | renewable energy enterprise for the purpose of generating |
17 | | renewable energy resources or energy storage. |
18 | | "Renewable energy resources" has the meaning set forth in |
19 | | Section 1-10 of the Illinois Power Agency Act. |
20 | | "Rule" has the meaning set forth in Section 1-70 of the |
21 | | Illinois Administrative Procedure Act.
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22 | | Section 5-15. Designation of Clean Energy Empowerment |
23 | | Zones.
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24 | | (a) Purpose. It is the intent of the General Assembly that |
25 | | designation of a community as a Clean Energy Empowerment Zone |
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1 | | shall be reserved for communities that have experienced |
2 | | economic or environmental hardship due to the energy |
3 | | transition or fossil fuel power generation and extraction. The |
4 | | purpose of this Section 5-45 is to establish an efficient and |
5 | | equitable process by which the Department and communities |
6 | | across the State may seek the designation of Clean Energy |
7 | | Empowerment Zones, thereby allowing for economic and |
8 | | environmental benefits of the clean energy economy to be |
9 | | obtained by communities that have been deprived of these |
10 | | benefits. The process conducted by the Department, the Board, |
11 | | and participating units of local government shall be as |
12 | | transparent and inclusive as is reasonably practical. |
13 | | (b) Notification of local governments. Within 30 days |
14 | | after the effective date of this Act, the Department shall |
15 | | publish a notice on its website stating its intention to begin |
16 | | the review of potential locations for Clean Energy Empowerment |
17 | | Zone regional designations, and solicit information from the |
18 | | public on this topic. Within 45 days after the effective date |
19 | | of this Act, the Department shall submit a notice to the county |
20 | | board of each jurisdiction in which a fossil fuel power plant, |
21 | | coal mine, or nuclear power plant is located, informing the |
22 | | local governments of their intention to develop a list of |
23 | | Clean Energy Empowerment Zones, providing a basic explanation |
24 | | of the benefits of designation as a Clean Energy Empowerment |
25 | | Zone, and informing them of participation opportunities in the |
26 | | designation process. The Department may notify other persons |
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1 | | or local government units of this process at any time. |
2 | | (c) Proposed list of Clean Energy Empowerment Zones. |
3 | | Within 120 days after the effective date of this Act, the |
4 | | Department of Commerce and Economic Opportunity shall develop |
5 | | a proposed list of geographic regions in Illinois that qualify |
6 | | as Clean Energy Empowerment Zones. The Department shall work |
7 | | with the Illinois Environmental Protection Agency, the |
8 | | Commission on Environmental Justice, the Department of Labor, |
9 | | the Department of Natural Resources, and community |
10 | | organizations to identify regions impacted by the decline of |
11 | | coal generation, gas generation, nuclear generation, and coal |
12 | | mining to develop the recommended list of regions that qualify |
13 | | for Clean Energy Empowerment Zone designations. The Department |
14 | | shall furnish maps that identify the proposed boundaries of |
15 | | proposed Clean Energy Empowerment Zones, and include |
16 | | justification for the inclusion or exclusion of certain |
17 | | locations or regions. The proposed list shall be subject to |
18 | | the notice and comment process established in subsection (e). |
19 | | (d) Criteria for designation as a Clean Energy Empowerment |
20 | | Zone. A region shall be proposed by the Department, and |
21 | | certified by the Board as a Clean Energy Empowerment Zone if it |
22 | | meets all of the following characteristics listed in |
23 | | paragraphs (1) through (3) of this subsection (d). |
24 | | (1) The region is a contiguous area, provided that a |
25 | | Zone area may exclude wholly surrounded territory within |
26 | | its boundaries; |
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1 | | (2) The region satisfies any additional criteria |
2 | | established by the Department consistent with the purposes |
3 | | of this Act; and |
4 | | (3) The region meets one or more of the following: |
5 | | (A) the area contains a fossil fuel or nuclear |
6 | | power plant that was retired from service or has |
7 | | significantly reduced service within 10 years before |
8 | | the application for designation or will be retired or |
9 | | have service significantly reduced within 5 years |
10 | | following the application for designation; |
11 | | (B) the area contains a coal mine that was closed |
12 | | or had operations significantly reduced within 10 |
13 | | years before the application for designation or is |
14 | | anticipated to be closed or have operations |
15 | | significantly reduced within 5 years following the |
16 | | application for designation; or |
17 | | (C) the area contains a nuclear power plant that |
18 | | was decommissioned, but continued storing nuclear |
19 | | waste before the effective date of this Act. |
20 | | (e) Review and comment process. After developing the |
21 | | proposed list of regions to be designated as Clean Energy |
22 | | Empowerment Zones, or proposing additions to the list, the |
23 | | Department shall conduct a 60-day public comment process, in |
24 | | partnership with the other agencies, departments, and units of |
25 | | local government where beneficial for the purposes of this |
26 | | Section. The public comment process shall include, at a |
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1 | | minimum, 2 public hearings that are accessible to working |
2 | | residents, shall prioritize the solicitation of feedback from |
3 | | environmental justice communities and communities directly |
4 | | impacted by the Clean Energy Empowerment Zone designation, and |
5 | | shall provide for the submission of written comments through |
6 | | the Internet. |
7 | | Within 30 days after concluding the public comment |
8 | | process, the Department shall modify or finalize the proposed |
9 | | list of geographic regions that qualify as Clean Energy |
10 | | Empowerment Zones and submit the list to the Clean Energy |
11 | | Empowerment Zone Board for approval or modification as |
12 | | described in Section 5-20. |
13 | | (f) Local government self-designation. After the |
14 | | Department submits its first list of proposed Clean Energy |
15 | | Empowerment Zones to the Board, units of local government may, |
16 | | on an ongoing basis, submit applications to the Department to |
17 | | designate an area wholly or partially in their jurisdiction as |
18 | | a Clean Energy Empowerment Zone if the Department has not |
19 | | proposed the region as a potential Clean Energy Empowerment |
20 | | Zone to the Board. Multiple units of local government may |
21 | | submit a joint application for designation if the proposed |
22 | | region or regions fall partially or wholly within their |
23 | | combined jurisdictions. A unit of local government may submit |
24 | | an application to the Department if: |
25 | | (1) the area meets the criteria for designation as a |
26 | | Clean Energy Empowerment Zone established in subsection |
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1 | | (d); and |
2 | | (2) the unit of local government has conducted at |
3 | | least one public hearing within the proposed Zone area |
4 | | considering all of the following questions: (A) whether to |
5 | | create the Zone; (B) what local plans, tax incentives, and |
6 | | other programs should be established in connection with |
7 | | the zone; and (C) what the boundaries of the Zone should |
8 | | be. Public notice of the hearing shall be published in at |
9 | | least one newspaper of general circulation within the Zone |
10 | | area, not more than 21 days nor less than 7 days before the |
11 | | hearing. |
12 | | An application submitted under this subsection (f) shall |
13 | | include a certified copy of the ordinance designating the |
14 | | proposed Zone; a map of the proposed Clean Energy Empowerment |
15 | | Zone, showing existing streets and highways; an analysis, and |
16 | | any appropriate supporting documents and statistics, |
17 | | demonstrating that the proposed zone area is qualified in |
18 | | accordance with subsection (d); a statement detailing any tax, |
19 | | grant, and other financial incentives or benefits, and any |
20 | | programs, to be provided by the municipality or county to |
21 | | renewable energy enterprises within the Zone, which are not |
22 | | otherwise provided throughout the municipality or county; a |
23 | | statement setting forth the economic development and planning |
24 | | objectives for the Zone; an estimate of the economic impact of |
25 | | the Zone, considering all of the tax incentives, financial |
26 | | benefits and programs contemplated, upon the revenues of the |
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1 | | municipality or county; a specific definition of the |
2 | | applicant's local labor market area; a transcript of all |
3 | | public hearings on the Zone; and any additional information as |
4 | | the Department may by rule require. |
5 | | Within 60 days after receiving an application from a unit |
6 | | of local government, the Department shall review the |
7 | | application to determine whether the designated area qualifies |
8 | | as a Clean Energy Empowerment Zone under this Section, and |
9 | | submit its recommendation to the Clean Energy Empowerment Zone |
10 | | Board including all necessary information and records for the |
11 | | Board to review, as described in Section 5-20. Within 7 days |
12 | | after submitting the recommendation to the Board, the |
13 | | Department shall provide a copy of its recommendation to the |
14 | | applicant, including all supporting documents and information |
15 | | submitted to the Board. |
16 | | (g) Application process. The Department shall, no later |
17 | | than July 1, 2021, develop an ongoing application process for |
18 | | Clean Energy Empowerment Zone applications by units of local |
19 | | government. The application process shall be open during the |
20 | | period of July 1, 2021 through January 1, 2050. The |
21 | | Department, or any predecessor of the Department, may extend |
22 | | the application process beyond that date if it deems it is |
23 | | necessary or prudent to accomplish the purpose of this Act. |
24 | | (h) Length of designation. A Clean Energy Empowerment Zone |
25 | | designation lasts for 10 years from the effective date of the |
26 | | designation and shall be subject to review by the Board after |
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1 | | 10 years for an additional 10-year designation beginning on |
2 | | the expiration date of the Clean Energy Empowerment Zone. |
3 | | During the review process, the Board shall consider the costs |
4 | | incurred by the State and units of local government as a result |
5 | | of benefits received by the Clean Energy Empowerment Zone. |
6 | | (i) Emergency rulemaking. The Department has emergency |
7 | | rulemaking authority for the purpose of implementation of this |
8 | | Section until 12 months after the effective date of this Act as |
9 | | provided under Section 5-45 of the Illinois Administrative |
10 | | Procedure Act. |
11 | | Section 5-20. Clean Energy Empowerment Zone Board.
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12 | | (a) A Clean Energy Empowerment Zone Board is hereby |
13 | | created within the Department.
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14 | | (b) The Board shall consist of 8 voting members, one of |
15 | | whom shall be the Director of Commerce and Economic |
16 | | Opportunity, or his or her designee, who shall serve as |
17 | | chairperson; one of whom shall be the Director of Revenue, or |
18 | | his or her designee; 2 of whom shall be members appointed by |
19 | | the Governor, with the advice and consent of the Senate; one of |
20 | | whom shall be appointed by the Speaker of the House of |
21 | | Representatives; one of whom shall be appointed by the |
22 | | President of the Senate; one of whom shall be appointed by the |
23 | | Minority Leader of the House; and one of whom shall be |
24 | | appointed by the Minority Leader of the Senate. Designees |
25 | | shall be appointed within 60 days after a vacancy. No fewer |
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1 | | than 4 of the 8 voting members shall consist of low-income |
2 | | residents or residents of environmental justice communities. |
3 | | At least one of the Board members shall be a representative of |
4 | | organized labor. All meetings shall be accessible, with |
5 | | rotating locations, call-in options, and materials and agendas |
6 | | circulated well in advance, and there shall also be |
7 | | opportunities for input outside of meetings from those with |
8 | | limited capacity and ability to attend, via one-on-one |
9 | | meetings, surveys, and calls. |
10 | | Board members shall serve without compensation, but may be |
11 | | reimbursed for necessary expenses incurred in the performance |
12 | | of their duties from funds appropriated for that purpose. Each |
13 | | member appointed shall have at least 5 years of experience in |
14 | | business development or economic development. The Department |
15 | | of Commerce and Economic Opportunity shall provide |
16 | | administrative support to the Board, including the selection |
17 | | of a Department staff member to serve as a Board Liaison |
18 | | between the Department and the Advisory Board. |
19 | | (c) All final actions by the Board pursuant to this |
20 | | subsection (c) shall require approval by a simple majority of |
21 | | the Board. The Board shall have the following duties: |
22 | | (1) reviewing applications and extensions for |
23 | | designation as a Clean Energy Empowerment Zone, including |
24 | | Department recommendations, testimony from public |
25 | | hearings, public comment, and supporting materials; |
26 | | (2) voting to approve, disapprove, or modify |
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1 | | applications for designation and extensions as a Clean |
2 | | Energy Empowerment Zones; |
3 | | (3) the approval of tax credits under the Clean Energy |
4 | | Empowerment Zone Tax Credit Act; and |
5 | | (4) modifying applications for designation or |
6 | | extensions as a Clean Energy Empowerment Zone before |
7 | | approval. |
8 | | (d) Deadlines for responses by the Board. Within 60 days |
9 | | after submission of applications or tax credits, pursuant to |
10 | | subsection (c) of this Section, to the Board by the |
11 | | Department, the Board shall approve, disapprove, or modify |
12 | | applications for certification of regions as Clean Energy |
13 | | Empowerment Zones. If the Board does not take final action on a |
14 | | submission within 60 days after the submission, the |
15 | | application submitted by the Department shall be considered |
16 | | approved, and the regions proposed in the application shall be |
17 | | certified as Clean Energy Empowerment Zones. |
18 | | Section 5-25. Incentives for renewable energy enterprises |
19 | | located within a Clean Energy Empowerment Zone.
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20 | | (a) Renewable energy enterprises located in Clean Energy |
21 | | Empowerment Zones are eligible to apply for a State income tax |
22 | | credit under the Clean Energy Empowerment Zone Tax Credit Act.
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23 | | (b) Renewable energy enterprises located in Clean Energy |
24 | | Empowerment Zones are eligible to receive an investment credit |
25 | | subject to the requirements of paragraph (1) of subsection (f) |
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1 | | of Section 201 of the Illinois Income Tax Act.
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2 | | (c) Renewable energy enterprises are eligible to purchase |
3 | | building materials exempt from use and occupation taxes to be |
4 | | incorporated into their renewable energy projects within the |
5 | | Clean Energy Empowerment Zone when purchased from a retailer |
6 | | within the Clean Energy Empowerment Zone under Section 5k-5 of |
7 | | the Retailers' Occupation Tax Act.
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8 | | (d) Renewable energy enterprises located in a Clean Energy |
9 | | Empowerment Zone that meet the qualifications of Section |
10 | | 9-222.1B of the Public Utilities Act are exempt, in part or in |
11 | | whole, from State and local taxes on gas and electricity.
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12 | | (e) Preference for procurements shall be conducted by the |
13 | | Illinois Power Agency as described in subparagraph (P) of |
14 | | paragraph (1) of subsection (c) of Section 1-75 of the |
15 | | Illinois Power Agency Act.
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16 | | Section 5-30. State incentives regarding public services |
17 | | and physical infrastructure.
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18 | | (a) The State Treasurer is authorized and encouraged to |
19 | | place deposits of State funds with financial institutions |
20 | | doing business in a Clean Energy Empowerment Zone.
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21 | | (b) This Act does not restrict tax incentive financing |
22 | | under Division 74.4 of Article 11 of the Illinois Municipal |
23 | | Code.
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24 | | Section 5-35. Supporting impacted communities.
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1 | | (a) No later than July 1, 2021, the Department shall |
2 | | develop a process for accepting applications from units of |
3 | | local government included in Clean Energy Empowerment Zones to |
4 | | mitigate the impact of an annual reduction of at least 30% in |
5 | | the sum of property tax revenue or other direct payments, or |
6 | | both, from fossil fuel power plants or coal mines to local |
7 | | governments due to the retirement, or reduced operation, of |
8 | | the power plant or mine that occurred after January 1, 2016. In |
9 | | the case of reduced operation, the proposal may only be |
10 | | accepted if the reduction in operation is reasonably expected |
11 | | to be permanent. The Department shall accept applications on |
12 | | an ongoing basis after beginning the program. Local government |
13 | | units may submit applications jointly. |
14 | | (b) The Department shall use available funds from the |
15 | | Energy Community Reinvestment Fund, subject to the provisions |
16 | | of subsection (c) of Section 5-70, to provide payments to |
17 | | communities for a period of no longer than 5 years from the |
18 | | approval of their proposal, subject to the following |
19 | | restrictions: |
20 | | (1) Payments shall be assessed based on need, taking |
21 | | into consideration the net amount of any increase in |
22 | | payments from any other State source, including, but not |
23 | | limited to, funding provided based on an evidence-based |
24 | | funding formula developed by the Illinois State Board of |
25 | | Education. |
26 | | (2) The highest annual payment to the unit of local |
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1 | | government cannot exceed the lower value of either (i) the |
2 | | average annual sum of property tax and other direct |
3 | | payments from the fossil fuel power plant or coal mine to |
4 | | the unit of local government from the most recent 3 |
5 | | taxable years before the reduction or cessation of |
6 | | operation of the fossil fuel power plant or coal mine, or |
7 | | (ii) the difference between projected local government |
8 | | revenue for the years for which assistance is requested |
9 | | (taking into account reasonably anticipated new revenue |
10 | | sources) and the average local government revenue from the |
11 | | most recent 3 taxable years before the reduction or |
12 | | cessation of fossil fuel power plant or coal mine |
13 | | operation. The Department may choose to consider budget |
14 | | information from prior years if doing so allows the |
15 | | Department to better measure the revenue impacts of the |
16 | | energy transition. |
17 | | (3) The Department shall not provide funding under |
18 | | this Program that exceeds the amount specified in this |
19 | | paragraph (3) to any local government unit. Each unit of |
20 | | local government shall not be granted by the Department a |
21 | | total amount of funding over the lifetime of this Program, |
22 | | for each fossil fuel power plant or coal mine, that is |
23 | | greater than 5 times the average annual sum of property |
24 | | tax payments and other direct payments from the fossil |
25 | | fuel power plant or coal mine to the unit of local |
26 | | government, calculated based on the most recent 3 taxable |
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1 | | years that occurred before the reduction or cessation of |
2 | | operation of the fossil fuel power plant or coal mine. |
3 | | (4) The Department may develop a payment schedule that |
4 | | phases out support over time, based on its analysis of |
5 | | available present and anticipated future funding in the |
6 | | Energy Community Reinvestment Fund or other reasons |
7 | | consistent with the purposes of this Act. |
8 | | (5) If the total amount of qualified proposals exceeds |
9 | | the available present and anticipated future funding in |
10 | | the Energy Community Reinvestment Fund, the Department may |
11 | | prorate payments to units of local government, or |
12 | | prioritize communities for investment based on an |
13 | | environmental justice screen in coordination with the |
14 | | Commission on Environmental Justice, and input from |
15 | | stakeholders. The Department shall allocate funding in an |
16 | | equitable and effective manner. Nothing in this Act shall |
17 | | be interpreted to infer that units of local government |
18 | | have a right to revenue replacement from the State. |
19 | | (6) Funding allocated under this program may not be |
20 | | used to support fossil fuel power plants, nuclear power |
21 | | plants, or coal mines in any form. Any local government |
22 | | unit that uses funds provided under this Act to support |
23 | | fossil fuel power plants, nuclear power plants, or coal |
24 | | mines shall reimburse the State for all funding used for |
25 | | that purpose. If requested, the Department shall provide |
26 | | guidance to local government units on whether a proposed |
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1 | | use of funds is considered a violation of this |
2 | | requirement. |
3 | | (7) At least once every 2 years following the |
4 | | allocation of funds for this program, the Department shall |
5 | | publish a document available online detailing the |
6 | | allocation of funds, including a map that shows the |
7 | | geographic distribution of the funds and the locations of |
8 | | Clean Energy Empowerment Zones. |
9 | | (c) The Department shall contact all units of local |
10 | | government in Clean Energy Empowerment Zones and provide |
11 | | information on the application process for funding under this |
12 | | Section and a reasonable estimate of total funding that will |
13 | | be available for this program. The Department shall request |
14 | | that applications for funding contain the information |
15 | | necessary for the Department to evaluate the fiscal impact of |
16 | | the energy transition on communities located in Clean Energy |
17 | | Empowerment Zones; however the Department shall allow for |
18 | | reasonable flexibility in the applications to accommodate |
19 | | local government units that may have less resources available |
20 | | to prepare an application. The Department shall, to the extent |
21 | | practical, assist local government units in the application |
22 | | process. |
23 | | (d) The Department shall develop rules to implement the |
24 | | provisions of this Section. |
25 | | Section 5-40. Clean Energy Empowerment Task Forces. |
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1 | | (a) The Department and the Board shall work with local |
2 | | stakeholders in Clean Energy Empowerment Zones to support the |
3 | | convening of local Clean Energy Empowerment Task Forces. |
4 | | (b) Local Clean Energy Empowerment Task Forces shall |
5 | | include a broad range of local stakeholders to inform |
6 | | transition needs and include, at a minimum, elected |
7 | | representatives from municipal and State governments, |
8 | | operators of local power plants or mines, multiple |
9 | | representatives from community-based organizations, local |
10 | | environmental, fish, or wildlife groups, organized labor, and |
11 | | the Illinois Environmental Protection Agency. |
12 | | (c) The Board shall put forward requests for proposals for |
13 | | third-party facilitators for Task Forces in prioritized Clean |
14 | | Energy Empowerment Zones based on need and those facing recent |
15 | | or near-term retirements of plants or mines. |
16 | | (d) The Department shall work with local Task Forces to |
17 | | develop local transition plans that identify economic, |
18 | | workforce, and environmental health needs with strategies to |
19 | | mitigate energy transition impacts and any accompanying |
20 | | funding requests from the Energy Community Reinvestment Fund. |
21 | | (e) As part of developing local transition plans, the |
22 | | Department shall work with third-party facilitators and Task |
23 | | Force members to gather and incorporate public comment and |
24 | | feedback into a finalized transition plan. |
25 | | (f) If the Department determines that a fossil fuel power |
26 | | plant owner has failed to engage productively in stakeholder |
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1 | | meetings and with Clean Energy Empowerment Zone Task Forces, |
2 | | the Department shall submit a notification to the Illinois |
3 | | Environmental Protection Agency for enforcement actions and |
4 | | the assessment of fees as described in Section 9.16 of the |
5 | | Environmental Protection Act. |
6 | | Section 5-45. Energy Transition Workforce Commission.
|
7 | | (a) The Energy Transition Workforce Commission is hereby |
8 | | created within the Department of Commerce and Economic |
9 | | Opportunity.
|
10 | | (b) The Commission shall consist of the following 5 |
11 | | members: |
12 | | (1) the Director of Commerce and Economic Opportunity, |
13 | | or his or her designee, who shall serve as chairperson; |
14 | | (2) the Director of Labor, or his or her designee; and |
15 | | (3) 3 members appointed by the Governor, with the |
16 | | advice and consent of the Senate, of which at least one |
17 | | shall be from organized labor and at least one shall be a |
18 | | resident of an environmental justice community. |
19 | | Designees shall be appointed within 60 days after a |
20 | | vacancy. |
21 | | (c) Members of the Commission shall serve without |
22 | | compensation, but may be reimbursed for necessary expenses |
23 | | incurred in the performance of their duties from funds |
24 | | appropriated for that purpose. The Department of Commerce and |
25 | | Economic Opportunity shall provide administrative support to |
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1 | | the Commission.
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2 | | (d) Within 120 days after the effective date of this Act, |
3 | | the Commission shall produce an Energy Transition Workforce |
4 | | Report regarding the anticipated impact of the energy |
5 | | transition and a comprehensive set of recommendations to |
6 | | address changes to the Illinois workforce during the period of |
7 | | 2020 through 2050, or a later year. The report shall contain |
8 | | the following elements, designed to be used for the programs |
9 | | created in this Act:
|
10 | | (1) Information related to the impact on current |
11 | | workers, including:
|
12 | | (A) a comprehensive accounting of all employees |
13 | | who currently work in fossil fuel energy generation, |
14 | | nuclear energy generation, and coal mining in the |
15 | | State; this shall include information on their |
16 | | location, employer, salary ranges, full-time or |
17 | | part-time status, nature of their work, educational |
18 | | attainment, union status, and other factors the |
19 | | Commission finds relevant; the Commission shall keep a |
20 | | confidential list of these employees and the |
21 | | information necessary to identify them for the purpose |
22 | | of their eligibility to participate in programs |
23 | | designed for their benefit; |
24 | | (B) the anticipated schedule of closures of fossil |
25 | | fuel power plants, nuclear power plants, and coal |
26 | | mines across the State; when information is |
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1 | | unavailable to provide exact data, the report shall |
2 | | include approximations based upon the best available |
3 | | information; |
4 | | (C) an estimate of worker impacts due to scheduled |
5 | | closures, including layoffs, early retirements, salary |
6 | | changes, and other factors the Commission finds |
7 | | relevant; and |
8 | | (D) the likely outcome for workers who are |
9 | | employed by facilities that are anticipated to close |
10 | | or have significant layoffs during their tenure or |
11 | | lifetime. |
12 | | (2) Information regarding impact on communities and |
13 | | local governments, including: |
14 | | (A) changes in the revenue for units of local |
15 | | government in areas that currently or recently have |
16 | | had a closure or reduction in operation of a fossil |
17 | | fuel power plant, nuclear power plant, coal mine, or |
18 | | related industry; |
19 | | (B) environmental impacts in areas that currently |
20 | | or recently have had fossil fuel power plants, coal |
21 | | mines, nuclear power plants, or related industry; and |
22 | | (C) economic impacts of the energy transition, |
23 | | including, but not limited to, the supply chain |
24 | | impacts of the energy transition shift toward new |
25 | | energy sources across the State. |
26 | | (3) Information on emerging industries and State |
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1 | | economic development opportunities in regions that have |
2 | | historically been the site of fossil fuel power plants, |
3 | | nuclear power plants, or coal mining. |
4 | | (e) Following the completion of each report, or if the |
5 | | Department finds that it is prudent to begin before the |
6 | | completion of a report, the Department shall coordinate with |
7 | | the Commission to create a comprehensive draft plan for |
8 | | designing, maintaining, and funding programs established under |
9 | | this Act, including the Energy Workforce Development Program |
10 | | created under Section 5-50, the Energy Community Development |
11 | | Program created under Section 5-55, and the Displaced Energy |
12 | | Workers Bill of Rights provided under Section 5-60. The draft |
13 | | plan shall include, at a minimum, the following information: |
14 | | (1) A detailed accounting of the anticipated costs for |
15 | | each program and the anticipated amount of funding that |
16 | | will be provided for each program. |
17 | | (2) Information on the locations at which each program |
18 | | shall have services provided. If this information is not |
19 | | yet known by the Department at the time of the plan's |
20 | | drafting, the Department shall generally explain how they |
21 | | intend to determine the program locations. |
22 | | Within 120 days after the effective date of this Act, the |
23 | | Department shall publish the draft plan online. The Department |
24 | | shall take public comments on the draft plan for a period of no |
25 | | less than 45 days and publish the final plan within 30 days |
26 | | after the closing of the comment period. |
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1 | | (f) The Department shall periodically review its findings |
2 | | in the developed reports and make modifications to the report |
3 | | and programs based on new findings. The Department shall |
4 | | conduct a comprehensive reevaluation of the report, and |
5 | | publish a modified version along with a new draft plan, on each |
6 | | of the following years following initial publication: 2023; |
7 | | 2027; 2030; 2035; 2040; and any year thereafter which the |
8 | | Department determines is necessary or prudent.
|
9 | | Section 5-50. Energy Workforce Development Program.
|
10 | | (a) The purpose of the Energy Workforce Development |
11 | | Program is to proactively assist energy workers in their |
12 | | search for economic opportunity. |
13 | | (b) The Director of Commerce and Economic Opportunity |
14 | | shall design, develop, and administer the Energy Workforce |
15 | | Development Program. The Energy Workforce Development Program |
16 | | shall include the following elements: |
17 | | (1) comprehensive career services for displaced energy |
18 | | workers, including advising displaced energy workers |
19 | | looking for new positions on finding new employment or |
20 | | preparing for retirement; |
21 | | (2) communication services to provide displaced energy |
22 | | workers advance notice of any power plant or coal mine |
23 | | closures that are likely to result in a loss of employment |
24 | | for the energy worker; |
25 | | (3) administrative assistance for displaced energy |
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1 | | workers in applying for programs provided by the State, |
2 | | the federal government, nonprofit organizations, or other |
3 | | programs that are designed to offer career or financial |
4 | | assistance; |
5 | | (4) the creation and maintenance of a registry of all |
6 | | persons in Illinois who qualify as an energy worker to use |
7 | | for coordination with programs created under this Act or |
8 | | other benefits for those workers, including all |
9 | | information necessary or beneficial for the implementation |
10 | | of this Act; |
11 | | (5) the management of funding for services outlined in |
12 | | this Section; and |
13 | | (6) financial advice for displaced energy workers |
14 | | designed to assist workers with retirement, a change in |
15 | | positions, pursuing an education, or other goals that the |
16 | | energy worker has identified. |
17 | | (c) In administering the Energy Workforce Development |
18 | | Program, the Department shall develop and implement the |
19 | | Program with the following goals:
|
20 | | (1) to use the recommendations and information |
21 | | contained in the report created under Section 5-45 to |
22 | | proactively plan for each phase of the energy transition |
23 | | in Illinois;
|
24 | | (2) to increase access to the services contained in |
25 | | this Program by locating services in different regions of |
26 | | the State as dictated by the anticipated schedule of power |
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1 | | plant and coal mine closures and regional economic |
2 | | changes; |
3 | | (3) to maximize the efficiency of resources used;
|
4 | | (4) to design the Energy Workforce Development Program |
5 | | to work in collaboration with the Displaced Energy Workers |
6 | | Bill of Rights; and
|
7 | | (5) any other goals identified by the Department.
|
8 | | Section 5-55. Energy Community Development Program.
|
9 | | (a) The purpose of the Energy Community Development |
10 | | Program is to proactively assist Clean Energy Empowerment Zone |
11 | | communities in their search for economic opportunities leading |
12 | | up to and after the closure of a fossil fuel power plant, |
13 | | nuclear power plant, or coal mine. |
14 | | (b) The Director of Commerce and Economic Opportunity |
15 | | shall, subject to appropriation, administer the Energy |
16 | | Community Development Program. In administering the Energy |
17 | | Community Development Program, the Department shall: |
18 | | (1) assist local governments in Clean Energy |
19 | | Empowerment Zones in finding private and public sector |
20 | | partners to invest in regional development; |
21 | | (2) assist units of local government in finding and |
22 | | negotiating terms with businesses willing to relocate or |
23 | | open new enterprises in regions impacted; |
24 | | (3) provide coordination services to connect |
25 | | organizations or persons seeking to use tax credits |
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1 | | created under Act with units of local government; |
2 | | (4) conduct outreach and educational events for |
3 | | private sector organizations for the purpose of attracting |
4 | | investment in Clean Energy Empowerment Zones; and |
5 | | (5) gather and incorporate public comment and feedback |
6 | | so that local knowledge, priorities, and strengths help |
7 | | shape and guide private and public development. |
8 | | (c) In administering the Energy Community Development |
9 | | Program, the Department shall develop and implement the |
10 | | Program with the following goals:
|
11 | | (1) to increase private sector development in Clean |
12 | | Energy Empowerment Zones;
|
13 | | (2) to replace and improve employment opportunities in |
14 | | Clean Energy Empowerment Zones for community members;
|
15 | | (3) to provide resources for Clean Energy Empowerment |
16 | | Zone communities across the State, and avoid geographic |
17 | | preferences in the allocation of resources; and
|
18 | | (4) to create a healthful environment for community |
19 | | members in Clean Energy Empowerment Zones.
|
20 | | Section 5-60. Displaced Energy Workers Bill of Rights.
|
21 | | (a) The Department of Commerce and Economic Opportunity |
22 | | shall implement the Displaced Energy Workers Bill of Rights |
23 | | and shall be responsible for the implementation of the |
24 | | Displaced Energy Workers Bill of Rights programs and rights |
25 | | created under this Section. The Department shall provide the |
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1 | | following benefits to displaced energy workers listed in |
2 | | paragraphs (1) through (4) of this subsection: |
3 | | (1) Advance notice of power plant or coal mine |
4 | | closure. |
5 | | (A) The Department of Commerce and Economic |
6 | | Opportunity shall notify all energy workers of the |
7 | | upcoming closure of any qualifying facility at least 2 |
8 | | years in advance of the scheduled closing date. |
9 | | (B) In providing the advance notice described in |
10 | | this paragraph (1), the Department shall take |
11 | | reasonable steps to ensure that all displaced energy |
12 | | workers are educated on the various programs available |
13 | | through the Department to assist with the energy |
14 | | transition. |
15 | | (2) Employment assistance and career services. The |
16 | | Department shall provide displaced energy workers with |
17 | | assistance in finding new sources of employment through |
18 | | the Energy Workforce Development Program established in |
19 | | this Act. |
20 | | (3) Full-tuition scholarship for Illinois institutions |
21 | | and trade schools. |
22 | | (A) The Department shall provide any displaced |
23 | | energy worker with a full-tuition scholarship to any |
24 | | of the following programs: (i) public universities in |
25 | | this State; (ii) trade schools in this State; (iii) |
26 | | community college programs in this State; or (iv) |
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1 | | union training programs in this State. The Department |
2 | | may set cost caps on the maximum amount of tuition that |
3 | | may be funded. |
4 | | (B) The Department shall provide information and |
5 | | consultation to displaced energy workers on the |
6 | | various educational opportunities available through |
7 | | this Program, and advise workers on which |
8 | | opportunities meet their needs and preferences. |
9 | | (C) Displaced energy workers who are eligible for |
10 | | scholarships created under this Section by the date of |
11 | | their enrollment shall be considered eligible for |
12 | | scholarship funding for up to 4 years or until |
13 | | completion of their degree or certification, whichever |
14 | | is the shorter duration. |
15 | | (4) Financial Planning Services. Displaced energy |
16 | | workers shall be entitled to services as described in the |
17 | | energy worker Programs in this subsection, including |
18 | | financial planning services. |
19 | | (b) The owners of power plants with a nameplate capacity |
20 | | of greater than 300 megawatts and the owners of coal mines |
21 | | located in Illinois shall be required to comply with the |
22 | | requirements set out in this subsection (b). The owners shall |
23 | | be required to take the following actions: |
24 | | (1) provide employment information for energy workers; |
25 | | prior to the closure of an electric generating unit or |
26 | | mine, the owners of the power plant or mine shall provide |
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1 | | energy workers information on whether there are employment |
2 | | opportunities provided by their employer; |
3 | | (2) provide extended health insurance for displaced |
4 | | energy workers who are former employees of the power plant |
5 | | owner that (A) costs no more than the average monthly |
6 | | premium paid by the worker over the last 12 months and (B) |
7 | | offers the same level of benefits, including, but not |
8 | | limited to, coverage, in-network providers, deductibles, |
9 | | and copayments covered during the previous 12 months; |
10 | | companies that sell energy into auctions managed by the |
11 | | Illinois Power Agency shall be required to offer 2 years |
12 | | of health insurance following closure of an electric |
13 | | generating unit to employees who are not employed in new |
14 | | positions that offer health insurance upon: (i) plant |
15 | | closure; or (ii) employment termination; the Department |
16 | | may require funding for health insurance to be provided in |
17 | | advance of employment termination; and |
18 | | (3) maintain responsible retirement account |
19 | | portfolios; employees of qualifying facilities shall have |
20 | | their retirement funds backed by financial tools that are |
21 | | not economically dependent upon the success of their |
22 | | employer's business. |
23 | | Section 5-65. Consideration of energy worker employment.
|
24 | | (a) All State departments and agencies shall conduct a |
25 | | review of the Department of Commerce and Economic |
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1 | | Opportunity's registry of energy workers to determine whether |
2 | | any qualified candidates are displaced energy workers before |
3 | | making a final hiring decision for a position in State |
4 | | employment. |
5 | | (b) The Department of Commerce and Economic Opportunity |
6 | | shall inform all State agencies and departments of the |
7 | | obligations created by this Section and take steps to ensure |
8 | | compliance. |
9 | | (c) Nothing in this Section shall be interpreted to |
10 | | indicate that the State is required to hire displaced energy |
11 | | workers for any position. |
12 | | (d) No part of this Section shall be interpreted to be in |
13 | | conflict with federal or State civil rights or employment law. |
14 | | Section 5-70. Energy Community Reinvestment Fund.
|
15 | | (a) The General Assembly hereby declares that management |
16 | | of several economic development programs requires a |
17 | | consolidated funding source to improve resource efficiency. |
18 | | The General Assembly specifically recognizes that properly |
19 | | serving communities and workers impacted by the energy |
20 | | transition requires that the Department of Commerce and |
21 | | Economic Opportunity have access to the resources required for |
22 | | the execution of the programs in this Act.
|
23 | | The intent of the General Assembly is that the Energy |
24 | | Community Reinvestment Fund is able to provide all funding for |
25 | | development programs created in this Act, and that no |
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1 | | additional charge is borne by the taxpayers or ratepayers of |
2 | | Illinois absent a deficiency.
|
3 | | (b) The Energy Community Reinvestment Fund is created as a |
4 | | special fund in the State treasury to be used by the Department |
5 | | of Commerce and Economic Opportunity for purposes provided |
6 | | under this Section. The Fund shall be used to fund programs |
7 | | specified under subsection (c). The objective of the Fund is |
8 | | to bring economic development to communities in this State in |
9 | | a manner that equitably maximizes economic opportunity in all |
10 | | communities by increasing efficiency of resource allocation |
11 | | across the programs listed in subsection (c). The Department |
12 | | shall include a description of its proposed approach to the |
13 | | design, administration, implementation, and evaluation of the |
14 | | Fund, as part of the Energy Transition Workforce Plan |
15 | | described in this Act. Contracts that will be paid with moneys |
16 | | in the Fund shall be executed by the Department.
|
17 | | (c) The Department shall be responsible for the |
18 | | administration of the Fund and shall allocate funding on the |
19 | | basis of priorities established in this Section. Each year, |
20 | | the Department shall determine the available amount of |
21 | | resources in the Fund that can be allocated to the programs |
22 | | identified in this Section, and allocate the funding |
23 | | accordingly. The Department shall, to the extent practical, |
24 | | consider both the short-term and long-term costs of the |
25 | | programs and allocate, save, or invest funding so that the |
26 | | Department is able to cover both the short-term and long-term |
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1 | | costs of these programs using projected revenue. |
2 | | The available funding for each year shall be allocated |
3 | | from the Fund in the following order of priority: |
4 | | (1) for costs related to the Energy Community |
5 | | Development programs in this Act, up to $2,000,000 |
6 | | annually or 2% of the available funding, whichever is |
7 | | less; |
8 | | (2) for costs related to the Energy Workforce |
9 | | Development programs and the Displaced Energy Workers Bill |
10 | | of Rights in this Act, including all programs created by |
11 | | the Energy Transition Workforce Commission, up to |
12 | | $13,000,000 annually or 21% of the available funding, |
13 | | whichever is less. If 21% of the available funding is more |
14 | | than $13,000,000, the amount over $13,000,000 is allocated |
15 | | to the items in (1) through (3) by their relative |
16 | | percentages until those programs are fully funded; |
17 | | (3) for costs, up to $100,000,000 annually, to support |
18 | | units of local government in Clean Energy Empowerment |
19 | | Zones, as described in Section 5-35; |
20 | | (4) if the programs identified in paragraphs (1) |
21 | | through (7) are fully funded and the Department reasonably |
22 | | predicts they will be adequately funded in future years, |
23 | | the Department shall transfer an amount equal to the |
24 | | year's tax credits awarded through the programs of up to |
25 | | $22,500,000 annually go the General Revenue Fund to offset |
26 | | revenue reductions from tax credits provided under the |
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1 | | Clean Energy Empowerment Zone Tax Credit Act; |
2 | | (5) to support the Low Income Home Energy Assistance |
3 | | Program, up to $30,000,000 annually, to support additional |
4 | | costs from the Percentage of Income Payment Program |
5 | | expansion and energy assistance expansion; |
6 | | (6) if the programs identified in paragraphs (1) |
7 | | through (6) are fully funded and the Department reasonably |
8 | | predicts they shall be adequately funded in future years, |
9 | | the Department shall transfer all surplus to the General |
10 | | Revenue Fund. |
11 | | (d) No later than June 1, 2021, and by June 1 of each year |
12 | | thereafter, the Department shall submit a notification to the |
13 | | Illinois Environmental Protection Agency for the purpose of |
14 | | implementing the energy community reinvestment fee as |
15 | | described in Section 9.16 of the Environmental Protection Act. |
16 | | The notification shall include the revenue and spending |
17 | | requirements for the programs identified under the Energy |
18 | | Community Reinvestment Act for the upcoming fiscal year, as |
19 | | well as the projected spending for all program years through |
20 | | Fiscal Year 2036. The projected revenue and spending need |
21 | | identified for any program year shall be no less than |
22 | | $200,000,000 per year for the calendar years 2021 through 2025 |
23 | | and $100,000,000 per year for all calendar years starting in |
24 | | 2026 that the Illinois electric sector generates greenhouse |
25 | | gas emissions. |
26 | | (e) If there is a funding shortfall for items identified |
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1 | | in paragraphs (1) through (4) of subsection (c), the |
2 | | Department shall submit a request for funds to applicable |
3 | | electric utilities for funds collected under subsection (k) of |
4 | | Section 1-75 of the Illinois Power Agency Act up to |
5 | | $25,000,000 per year to cover the shortfall. Upon notification |
6 | | by utilities that sufficient funds are available for use under |
7 | | the terms of paragraph (7) of subsection (k) of Section 1-75 of |
8 | | the Illinois Power Agency Act, the Department shall send an |
9 | | invoice to the applicable utilities for the amount requested. |
10 | | Upon receipt, the funds shall be deposited into the Energy |
11 | | Community Reinvestment Fund. |
12 | | (f) The Department shall, on an ongoing basis, seek out |
13 | | and apply for funding from alternative sources to cover the |
14 | | costs of these programs. Alternative sources may include the |
15 | | federal government, other State programs, private foundations, |
16 | | donors, or other opportunities for funding. The Department |
17 | | shall, as described in subsection (c), use any additional |
18 | | funding obtained for these programs to reduce or eliminate any |
19 | | costs borne by taxpayers and ratepayers. Nothing in this |
20 | | subsection (f) shall be interpreted to reduce or remove the |
21 | | revenue requirements obtained by the Illinois Environmental |
22 | | Protection Agency as described in subsection (d). |
23 | | (g) Notwithstanding any other law to the contrary, the |
24 | | Energy Community Reinvestment Fund is not subject to sweeps, |
25 | | administrative chargebacks, or any other fiscal or budgetary |
26 | | maneuver that would in any way transfer any amounts from the |
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1 | | Energy Community Reinvestment Fund into any other fund of the |
2 | | State. |
3 | | (h) The Department is granted all powers necessary for the |
4 | | implementation of this Section. |
5 | | Section 5-75. Administrative review. All final |
6 | | administrative decisions, including, but not limited to, |
7 | | funding allocation and rules issued by the Department under |
8 | | this Act are subject to judicial review under the |
9 | | Administrative Review Law. No action may be commenced under |
10 | | this Section prior to 60 days after the complainant has given |
11 | | notice in writing of the action to the Department. |
12 | | ARTICLE 10. Clean Energy Empowerment Zone Tax Credit Act |
13 | | Section 10-1. Short title. This Article may be cited as |
14 | | the Clean Energy Empowerment Zone Tax Credit Act. References |
15 | | in this Article to "this Act" mean this Article. |
16 | | Part 1. |
17 | | Section 10-100. Definitions. As used in this Part 1:
|
18 | | "Applicant" means a person that is operating a business |
19 | | located within the State of Illinois and has applied for an |
20 | | income tax credit through a program under this Act.
|
21 | | "Basic wage" means compensation for employment that meets |
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1 | | the prevailing wage standards as defined by the Department.
|
2 | | "Certificate" means the tax credit certificate issued by |
3 | | the Department under Section 10-125.
|
4 | | "Certificate of eligibility" means the certificate issued |
5 | | by the Department under Section 10-110.
|
6 | | "Credit" means the amount awarded by the Department to an |
7 | | applicant by issuance of a certificate under Section 10-125 |
8 | | for each new full-time equivalent employee hired or job |
9 | | created.
|
10 | | "Department" means the Department of Commerce and Economic |
11 | | Opportunity.
|
12 | | "Director" means the Director of Commerce and Economic |
13 | | Opportunity.
|
14 | | "Former energy worker" means an individual who is |
15 | | employed, or was employed, at a fossil fuel power plant, |
16 | | nuclear power plant, or coal mine, and is listed in the |
17 | | registry of energy workers developed by the Department of |
18 | | Commerce and Economic Opportunity pursuant to Section 5-50 of |
19 | | the Energy Community Reinvestment Act. |
20 | | "Full-time employee" means an individual who is employed |
21 | | at a prevailing wage for at least 35 hours each week, and |
22 | | provided standard worker benefits, or who renders any other |
23 | | standard of service generally accepted by industry custom or |
24 | | practice as full-time employment. An individual for whom a W-2 |
25 | | is issued by a Professional Employer Organization is a |
26 | | full-time employee if he or she is employed in the service of |
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1 | | the applicant for a basic wage for at least 35 hours each week |
2 | | or renders any other standard of service generally accepted by |
3 | | industry custom or practice as full-time employment. For the |
4 | | purposes of this Act, such an individual shall be considered a |
5 | | full-time employee of the applicant.
|
6 | | "Incentive period" means the period beginning on July 1 |
7 | | and ending on June 30 of the following year. The first |
8 | | incentive period shall begin on July 1, 2021 and the last |
9 | | incentive period shall end on June 30, 2040.
|
10 | | "New employee" means a full-time employee:
|
11 | | (1) who first became employed by an applicant within |
12 | | the incentive period whose hire results in a net increase |
13 | | in the applicant's full-time Illinois employees and who is |
14 | | receiving a prevailing wage as compensation; and |
15 | | (2) who was previously employed in a fossil fuel power |
16 | | plant, nuclear power plant, or coal mine in the State of |
17 | | Illinois that has since closed. |
18 | | "New employee" does not include:
|
19 | | (1) a person who was previously employed in Illinois |
20 | | by the applicant or a related member prior to the onset of |
21 | | the incentive period, unless the new employee is hired for |
22 | | site remediation work; or |
23 | | (2) a person who has a direct or indirect ownership |
24 | | interest of at least 5% in the profits, capital, or value |
25 | | of the applicant or a related member; or |
26 | | (3) a person who has been hired to assist in the |
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1 | | production of fossil fuel derived energy directly or |
2 | | indirectly, unless that person has been hired to assist in |
3 | | the deconstruction of a fossil fuel power plant, the |
4 | | deconstruction of a coal mine, the remediation of a site |
5 | | formerly used for fossil fuel power production, or the |
6 | | remediation of a coal mine. |
7 | | "Noncompliance date" means, in the case of an applicant |
8 | | that is not complying with the requirements of this Act, the |
9 | | day following the last date upon which the taxpayer was in |
10 | | compliance with the requirements of this Act, as determined by |
11 | | the Director under Section 10-135.
|
12 | | "Professional Employer Organization" has the same meaning |
13 | | as ascribed to that term under Section 5-5 of the Economic |
14 | | Development for a Growing Economy Tax Credit Act. |
15 | | "Professional Employer Organization" does not include a day |
16 | | and temporary labor service agency regulated under the Day and |
17 | | Temporary Labor Services Act.
|
18 | | "Related member" means a person that, with respect to the |
19 | | applicant during any portion of the incentive period, is any |
20 | | one of the following:
|
21 | | (1) An individual, if the individual and the members |
22 | | of the individual's family, as defined in Section 318 of |
23 | | the Internal Revenue Code, own directly, indirectly, |
24 | | beneficially, or constructively, in the aggregate, at |
25 | | least 50% of the value of the outstanding profits, |
26 | | capital, stock, or other ownership interest in the |
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1 | | applicant.
|
2 | | (2) A partnership, estate, or trust and any partner or |
3 | | beneficiary, if the partnership, estate, or trust and its |
4 | | partners or beneficiaries own directly, indirectly, |
5 | | beneficially, or constructively, in the aggregate, at |
6 | | least 50% of the profits, capital, stock, or other |
7 | | ownership interest in the applicant.
|
8 | | (3) A corporation, and any party related to the |
9 | | corporation, in a manner that would require an attribution |
10 | | of stock from the corporation under the attribution rules |
11 | | of Section 318 of the Internal Revenue Code, if the |
12 | | applicant and any other related member own, in the |
13 | | aggregate, directly, indirectly, beneficially, or |
14 | | constructively, at least 50% of the value of the |
15 | | corporation's outstanding stock.
|
16 | | (4) A corporation and any party related to that |
17 | | corporation in a manner that would require an attribution |
18 | | of stock from the corporation to the party or from the |
19 | | party to the corporation under the attribution rules of |
20 | | Section 318 of the Internal Revenue Code, if the |
21 | | corporation and all such related parties own, in the |
22 | | aggregate, at least 50% of the profits, capital, stock, or |
23 | | other ownership interest in the applicant.
|
24 | | (5) A person to or from whom there is attribution of |
25 | | stock ownership in accordance with subsection (e) of |
26 | | Section 1563 of the Internal Revenue Code, except that for |
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1 | | purposes of determining whether a person is a related |
2 | | member under this paragraph (5):
|
3 | | (A) stock owned, directly or indirectly, by or for |
4 | | a partnership shall be considered as owned by any |
5 | | partner having an interest of 20% or more in either the |
6 | | capital or profits of the partnership in proportion to |
7 | | his or her interest in capital or profits, whichever |
8 | | such proportion is the greater;
|
9 | | (B) stock owned, directly or indirectly, by or for |
10 | | an estate or trust shall be considered as owned by any |
11 | | beneficiary who has an actuarial interest of 20% or |
12 | | more in such stock, to the extent of such actuarial |
13 | | interest. For purposes of this subparagraph, the |
14 | | actuarial interest of each beneficiary shall be |
15 | | determined by assuming the maximum exercise of |
16 | | discretion by the fiduciary in favor of such |
17 | | beneficiary and the maximum use of such stock to |
18 | | satisfy his or her rights as a beneficiary; and
|
19 | | (C) stock owned, directly or indirectly, by or for |
20 | | a corporation shall be considered as owned by any |
21 | | person who owns 20% or more in value of its stock in |
22 | | that proportion which the value of the stock which the |
23 | | person so owns bears to the value of all the stock in |
24 | | the corporation. |
25 | | Section 10-105. Powers of the Department. The Department, |
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1 | | in addition to those powers granted under the Civil |
2 | | Administrative Code of Illinois, is granted and shall have all |
3 | | the powers necessary or convenient to carry out and effectuate |
4 | | the purposes and provisions of this Act, including, but not |
5 | | limited to, power and authority to:
|
6 | | (1) Adopt rules deemed necessary and appropriate for |
7 | | the administration of this Act; establish forms for |
8 | | applications, notifications, contracts, or any other |
9 | | agreements; and accept applications at any time during the |
10 | | year and require that all applications be submitted |
11 | | electronically through the Internet.
|
12 | | (2) Provide guidance and assistance to applicants |
13 | | under the provisions of this Act, and cooperate with |
14 | | applicants to promote, foster, and support job creation |
15 | | within this State.
|
16 | | (3) Enter into agreements and memoranda of |
17 | | understanding for participation of and engage in |
18 | | cooperation with agencies of the federal government, units |
19 | | of local government, universities, research foundations or |
20 | | institutions, regional economic development corporations, |
21 | | or other organizations for the purposes of this Act.
|
22 | | (4) Gather information and conduct inquiries, in the |
23 | | manner and by the methods it deems desirable, including, |
24 | | without limitation, gathering information with respect to |
25 | | applicants for the purpose of making any designations or |
26 | | certifications necessary or desirable or to gather |
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1 | | information in furtherance of the purposes of this Act.
|
2 | | (5) Establish, negotiate, and effectuate any term, |
3 | | agreement, or other document with any person necessary or |
4 | | appropriate to accomplish the purposes of this Act, and |
5 | | consent, subject to the provisions of any agreement with |
6 | | another party, to the modification or restructuring of any |
7 | | agreement to which the Department is a party.
|
8 | | (6) Provide for sufficient personnel to permit |
9 | | administration, staffing, operation, and related support |
10 | | required to adequately discharge its duties and |
11 | | responsibilities described in this Act from funds made |
12 | | available through charges to applicants or from funds as |
13 | | may be appropriated by the General Assembly for the |
14 | | administration of this Act.
|
15 | | (7) Require applicants, upon written request, to issue |
16 | | any necessary authorization to the appropriate federal, |
17 | | State, or local authority or any other person for the |
18 | | release to the Department of information requested by the |
19 | | Department, with the information requested to include, but |
20 | | not be limited to, financial reports, returns, or records |
21 | | relating to the applicant or to the amount of credit |
22 | | allowable under this Act.
|
23 | | (8) Require that an applicant shall at all times keep |
24 | | proper books of record and account in accordance with |
25 | | generally accepted accounting principles consistently |
26 | | applied, with the books, records, or papers related to the |
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1 | | agreement in the custody or control of the applicant open |
2 | | for reasonable Department inspection and audits, and |
3 | | including, without limitation, the making of copies of the |
4 | | books, records, or papers.
|
5 | | (9) Take whatever actions are necessary or appropriate |
6 | | to protect the State's interest in the event of |
7 | | bankruptcy, default, foreclosure, or noncompliance with |
8 | | the terms and conditions of financial assistance or |
9 | | participation required under this Act, including the power |
10 | | to sell, dispose of, lease, or rent, upon terms and |
11 | | conditions determined by the Director to be appropriate, |
12 | | real or personal property that the Department may recover |
13 | | as a result of these actions.
|
14 | | Section 10-110. Certificate of eligibility for tax credit.
|
15 | | (a) An applicant that has hired a former energy worker or a |
16 | | graduate or trainee from an equity-focused workforce training |
17 | | program designated by the Illinois Power Agency as a new |
18 | | employee during the incentive period may apply for a |
19 | | certificate of eligibility for the credit with respect to that |
20 | | position on or after the date of hire of the new employee. The |
21 | | date of hire shall be the first day on which the employee |
22 | | begins providing services for basic wage compensation.
|
23 | | (b) An applicant may apply for a certificate of |
24 | | eligibility for the credit for more than one new employee on or |
25 | | after the date of hire of each qualifying new employee.
|
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1 | | (c) After receipt of an application under this Section, |
2 | | the Department shall issue a certificate of eligibility to the |
3 | | applicant that states the following:
|
4 | | (1) the date and time on which the application was |
5 | | received by the Department and an identifying number |
6 | | assigned to the applicant by the Department;
|
7 | | (2) the maximum amount of the credit the applicant |
8 | | could potentially receive under this Act with respect to |
9 | | the new employees listed on the application; and
|
10 | | (3) the maximum amount of the credit potentially |
11 | | allowable on certificates of eligibility issued for |
12 | | applications received prior to the application for which |
13 | | the certificate of eligibility is issued.
|
14 | | Section 10-115. Tax credit.
|
15 | | (a) Subject to the conditions set forth in this Act, an |
16 | | applicant is entitled to a credit against payment of taxes |
17 | | withheld under Section 704A of the Illinois Income Tax Act:
|
18 | | (1) for former energy workers or graduates of Clean |
19 | | Jobs Workforce programs hired as new employees who the |
20 | | applicant hires and retains for a minimum of one year; and
|
21 | | (2) in the amount of:
|
22 | | (A) 20% of the salary paid to the new employee for |
23 | | employees hired and retained for between the time of |
24 | | hiring and one year;
|
25 | | (B) 15% of the salary paid to the new employee for |
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1 | | employees hired and retained between one year and 2 |
2 | | years; and
|
3 | | (C) 10% of the salary paid to the new employee for |
4 | | employees hired and retained between 2 years and 3 |
5 | | years.
|
6 | | (b) The Department shall make credit awards under this Act |
7 | | to further job creation.
|
8 | | (c) The credit shall be claimed for the first calendar |
9 | | year ending on or after the date on which the certificate is |
10 | | issued by the Department.
|
11 | | (d) The net increase in full-time Illinois employees, |
12 | | measured on an annual full-time equivalent basis, shall be the |
13 | | total number of full-time Illinois employees of the applicant |
14 | | on the final day of the incentive period, minus the number of |
15 | | full-time Illinois employees employed by the employer on the |
16 | | first day of that same incentive period. For purposes of the |
17 | | calculation, an employer that begins doing business in this |
18 | | State during the incentive period, as determined by the |
19 | | Director, shall be treated as having zero Illinois employees |
20 | | on the first day of the incentive period.
|
21 | | (e) The net increase in the number of full-time Illinois |
22 | | employees of the applicant under subsection (d) must be |
23 | | sustained continuously for at least 12 months, starting with |
24 | | the date of hire of a new employee during the incentive period. |
25 | | Eligibility for the credit does not depend on the continuous |
26 | | employment of any particular individual. For purposes of this |
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1 | | subsection (e), if a new employee ceases to be employed before |
2 | | the completion of the 12-month period for any reason, the net |
3 | | increase in the number of full-time Illinois employees shall |
4 | | be treated as continuous if a different new employee is hired |
5 | | as a replacement within a reasonable time for the same |
6 | | position. The new employees must be hired to fill positions |
7 | | that the applicant reasonably anticipates will be available |
8 | | for the new employee as a long-term position. For the purposes |
9 | | of this subsection (e), "long-term position" means a position |
10 | | that will be available for 3 years or longer.
|
11 | | (f) The Department shall adopt rules to enable an |
12 | | applicant for which a Professional Employer Organization has |
13 | | been contracted to issue W-2s and make payment of taxes |
14 | | withheld under Section 704A of the Illinois Income Tax Act for |
15 | | new employees to retain the benefit of tax credits to which the |
16 | | applicant is otherwise entitled under this Act.
|
17 | | Section 10-120. Maximum amount of credits allowed. The |
18 | | Department shall limit the monetary amount of credits awarded |
19 | | under this Act to no more than $18,000,000 annually during the |
20 | | incentive period. If applications for a greater amount are |
21 | | received, credits shall be allowed on a first-come, |
22 | | first-served basis, based on the date on which each properly |
23 | | completed application for a certificate of eligibility is |
24 | | received by the Department. If more than one certificate of |
25 | | eligibility is received on the same day, the credits shall be |
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1 | | awarded based on the time of submission for that particular |
2 | | day. |
3 | | Section 10-125. Application for award of tax credit; tax |
4 | | credit certificate.
|
5 | | (a) On or after the conclusion of the 12-month period, or |
6 | | other period, after a new employee has been hired, for the |
7 | | purposes of subsection (a) of Section 10-115, an applicant |
8 | | shall file with the Department an application for award of a |
9 | | credit. The application shall include the following:
|
10 | | (1) the names, Social Security numbers, job |
11 | | descriptions, salary or wage rates, and dates of hire of |
12 | | the new employees with respect to whom the credit is being |
13 | | requested;
|
14 | | (2) a certification that each new employee listed has |
15 | | been retained on the job for at least one year from the |
16 | | date of hire;
|
17 | | (3) the number of new employees hired by the applicant |
18 | | during the incentive period;
|
19 | | (4) the net increase in the number of full-time |
20 | | Illinois employees of the applicant, including the new |
21 | | employees listed in the request, between the beginning of |
22 | | the incentive period and the dates on which the new |
23 | | employees listed in the request were hired;
|
24 | | (5) an agreement that the Director is authorized to |
25 | | verify with the appropriate State agencies the information |
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1 | | contained in the request before issuing a certificate to |
2 | | the applicant; and
|
3 | | (6) any other information the Department determines to |
4 | | be appropriate.
|
5 | | (b) Although an application may be filed at any time after |
6 | | the conclusion of the 12-month period after a new employee was |
7 | | hired, an application filed more than 90 days after the |
8 | | earliest date on which it could have been filed shall not be |
9 | | awarded any credit if, prior to the date it is filed, the |
10 | | Department has received applications under this Section for |
11 | | credits totaling more than $20,000,000.
|
12 | | (c) The Department shall issue a certificate to each |
13 | | applicant awarded a credit under this Act. The certificate |
14 | | shall include the following:
|
15 | | (1) the name and taxpayer identification number of the |
16 | | applicant;
|
17 | | (2) the date on which the certificate is issued;
|
18 | | (3) the credit amount that will be allowed; and
|
19 | | (4) any other information the Department determines to |
20 | | be appropriate.
|
21 | | Section 10-130. Submission of tax credit certificate to |
22 | | the Department of Revenue. An applicant claiming a credit |
23 | | under this Act shall submit to the Department of Revenue a copy |
24 | | of each certificate issued under Section 10-125 with the first |
25 | | tax return for which the credit shown on the certificate is |
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1 | | claimed. Failure to submit a copy of the certificate with the |
2 | | applicant's tax return shall not invalidate a claim for a |
3 | | credit. |
4 | | Section 10-135. Administrative review. |
5 | | (a) If the Director determines that an applicant who has |
6 | | received a credit under this Act is not complying with the |
7 | | requirements of this Act, the Director shall provide notice to |
8 | | the applicant of the alleged noncompliance, and allow the |
9 | | taxpayer a hearing under the provisions of the Illinois |
10 | | Administrative Procedure Act. If, after the notice and |
11 | | hearing, the Director determines that noncompliance exists, |
12 | | the Director shall issue to the Department of Revenue notice |
13 | | to that effect, and state the date of noncompliance. |
14 | | (b) All final administrative decisions, including, but not |
15 | | limited to, funding allocation and rules issued by the |
16 | | Department under this Act are subject to judicial review under |
17 | | the Administrative Review Law. No action may be commenced |
18 | | under this Section prior to 60 days after the complainant has |
19 | | given notice in writing of the action to the Department. |
20 | | Section 10-140. Rules. The Department may adopt rules |
21 | | necessary to implement this Part 1. The rules may provide for |
22 | | recipients of credits under this Part 1 to be charged fees to |
23 | | cover administrative costs of the tax credit program. |
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1 | | Part 2. |
2 | | Section 10-200. Definitions.
As used in this Part 2:
|
3 | | "Agreement" means the agreement between a taxpayer and the |
4 | | Department entered into for a tax credit awarded under Section |
5 | | 10-210.
|
6 | | "Applicant" means a taxpayer operating a renewable energy |
7 | | enterprise, as determined under the Energy Community |
8 | | Reinvestment Act, located within or that the renewable energy |
9 | | enterprise plans to locate within a Clean Energy Empowerment |
10 | | Zone. "Applicant" does not include a taxpayer who closes or |
11 | | substantially reduces an operation at one location in this |
12 | | State and relocates substantially the same operation to a |
13 | | location in a Clean Energy Empowerment Zone. A taxpayer is not |
14 | | prohibited from expanding its operations at a location in a |
15 | | Clean Energy Empowerment Zone, provided that existing |
16 | | operations of a similar nature located within the State are |
17 | | not closed or substantially reduced. A taxpayer is also not |
18 | | prohibited from moving operations from one location in this |
19 | | State to a Clean Energy Empowerment Zone for the purpose of |
20 | | expanding the operation provided that the Department |
21 | | determines that expansion cannot reasonably be accommodated |
22 | | within the municipality in which the business is located, or |
23 | | in the case of a business located in an incorporated area of |
24 | | the county, within the county in which the business is |
25 | | located, after conferring with the chief elected official of |
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1 | | the municipality or county and taking into consideration any |
2 | | evidence offered by the municipality or county regarding the |
3 | | ability to accommodate expansion within the municipality or |
4 | | county.
|
5 | | "Board" means the Clean Energy Empowerment Zone Board |
6 | | created under Section 5-20 of the Illinois Energy Community |
7 | | Reinvestment Act.
|
8 | | "Credit" means the amount agreed to between the Department |
9 | | and the Applicant under this Act, but not to exceed the lesser |
10 | | of: (1) the sum of (i) 50% of the incremental income tax |
11 | | attributable to new employees at the applicant's project and |
12 | | (ii) 10% of the training costs of new employees; or (2) 100% of |
13 | | the incremental income tax attributable to new employees at |
14 | | the applicant's project. If the project is located in an |
15 | | underserved area, then the amount of the credit may not exceed |
16 | | the lesser of: (1) the sum of (i) 75% of the incremental income |
17 | | tax attributable to new employees at the applicant's project |
18 | | and (ii) 10% of the training costs of new employees; or (2) |
19 | | 100% of the incremental income tax attributable to new |
20 | | employees at the applicant's project. If an applicant agrees |
21 | | to hire the required number of new employees, then the maximum |
22 | | amount of the credit for that applicant may be increased by an |
23 | | amount not to exceed 25% of the incremental income tax |
24 | | attributable to retained employees at the applicant's project; |
25 | | provided that, in order to receive the increase for retained |
26 | | employees, the applicant must provide the additional evidence |
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1 | | required under paragraph (3) of subsection (c) of Section |
2 | | 10-215.
|
3 | | "Department" means the Department of Commerce and Economic |
4 | | Opportunity.
|
5 | | "Director" means the Director of Commerce and Economic |
6 | | Opportunity.
|
7 | | "Full-time employee" means an individual who is employed |
8 | | for consideration for at least 35 hours each week or who |
9 | | renders any other standard of service generally accepted by |
10 | | industry custom or practice as full-time employment. An |
11 | | individual for whom a W-2 is issued by a Professional Employer |
12 | | Organization is a full-time employee if employed in the |
13 | | service of the applicant for consideration for at least 35 |
14 | | hours each week or who renders any other standard of service |
15 | | generally accepted by industry custom or practice as full-time |
16 | | employment to the applicant.
|
17 | | "Incremental income tax" means the total amount withheld |
18 | | during the taxable year from the compensation of new employees |
19 | | and, if applicable, retained employees under Article 7 of the |
20 | | Illinois Income Tax Act arising from employment at a project |
21 | | that is the subject of an agreement.
|
22 | | "New employee" means a full-time employee first employed |
23 | | by a taxpayer in the project that is the subject of an |
24 | | agreement and who is hired after the taxpayer enters into the |
25 | | agreement.
|
26 | | "New employee" does not include:
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1 | | (1) an employee of the taxpayer who performs a job |
2 | | that was previously performed by another employee, if that |
3 | | job existed for at least 6 months before hiring the |
4 | | employee;
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5 | | (2) an employee of the taxpayer who was previously |
6 | | employed in Illinois by a related member of the taxpayer |
7 | | and whose employment was shifted to the taxpayer after the |
8 | | taxpayer entered into the agreement; or
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9 | | (3) a child, grandchild, parent, or spouse, other than |
10 | | a spouse who is legally separated from the individual, of |
11 | | any individual who has a direct or an indirect ownership |
12 | | interest of at least 5% in the profits, capital, or value |
13 | | of the taxpayer.
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14 | | Notwithstanding any other provisions of this Section, an |
15 | | employee may be considered a new employee under the agreement |
16 | | if the employee performs a job that was previously performed |
17 | | by an employee who was: (i) treated under the agreement as a |
18 | | new employee; and (ii) promoted by the taxpayer to another |
19 | | job.
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20 | | Notwithstanding any other provisions of this Section, the |
21 | | Department may award a credit to an applicant with respect to |
22 | | an employee hired prior to the date of the agreement if: (i) |
23 | | the applicant is in receipt of a letter from the Department |
24 | | stating an intent to enter into a credit agreement; (ii) the |
25 | | letter described in item (i) of this paragraph is issued by the |
26 | | Department not later than 15 days after the effective date of |
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1 | | this Act; and (iii) the employee was hired after the date the |
2 | | letter described in item (i) of this paragraph was issued.
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3 | | "Pass-through entity" means an entity that is exempt from |
4 | | the tax under subsection (b) or (c) of Section 205 of the |
5 | | Illinois Income Tax Act.
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6 | | "Related member" means a person that, with respect to the |
7 | | taxpayer during any portion of the taxable year, is any one of |
8 | | the following:
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9 | | (1) An individual stockholder, if the stockholder and |
10 | | the members of the stockholder's family, as defined in |
11 | | Section 318 of the Internal Revenue Code, own directly, |
12 | | indirectly, beneficially, or constructively, in the |
13 | | aggregate, at least 50% of the value of the taxpayer's |
14 | | outstanding stock.
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15 | | (2) A partnership, estate, or trust and any partner or |
16 | | beneficiary, if the partnership, estate, or trust, and its |
17 | | partners or beneficiaries own directly, indirectly, |
18 | | beneficially, or constructively, in the aggregate, at |
19 | | least 50% of the profits, capital, stock, or value of the |
20 | | taxpayer.
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21 | | (3) A corporation, and any party related to the |
22 | | corporation in a manner that would require an attribution |
23 | | of stock from the corporation to the party or from the |
24 | | party to the corporation under the attribution rules of |
25 | | Section 318 of the Internal Revenue Code, if the taxpayer |
26 | | owns directly, indirectly, beneficially, or constructively |
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1 | | at least 50% of the value of the corporation's outstanding |
2 | | stock.
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3 | | (4) A corporation and any party related to that |
4 | | corporation in a manner that would require an attribution |
5 | | of stock from the corporation to the party or from the |
6 | | party to the corporation under the attribution rules of |
7 | | Section 318 of the Internal Revenue Code, if the |
8 | | corporation and all such related parties own in the |
9 | | aggregate at least 50% of the profits, capital, stock, or |
10 | | value of the taxpayer.
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11 | | (5) A person to or from whom there is attribution of |
12 | | stock ownership in accordance with subsection (e) of |
13 | | Section 1563 of the Internal Revenue Code, except that for |
14 | | purposes of determining whether a person is a related |
15 | | member under this paragraph (5):
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16 | | (A) stock owned, directly or indirectly, by or for |
17 | | a partnership shall be considered as owned by any |
18 | | partner having an interest of 20% or more in either the |
19 | | capital or profits of the partnership in proportion to |
20 | | his or her interest in capital or profits, whichever |
21 | | such proportion is the greater;
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22 | | (B) stock owned, directly or indirectly, by or for |
23 | | an estate or trust shall be considered as owned by any |
24 | | beneficiary who has an actuarial interest of 20% or |
25 | | more in such stock, to the extent of such actuarial |
26 | | interest. For purposes of this subparagraph, the |
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1 | | actuarial interest of each beneficiary shall be |
2 | | determined by assuming the maximum exercise of |
3 | | discretion by the fiduciary in favor of such |
4 | | beneficiary and the maximum use of such stock to |
5 | | satisfy his or her rights as a beneficiary; and
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6 | | (C) stock owned, directly or indirectly, by or for |
7 | | a corporation shall be considered as owned by any |
8 | | person who owns 20% or more in value of its stock in |
9 | | that proportion which the value of the stock which the |
10 | | person so owns bears to the value of all the stock in |
11 | | the corporation.
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12 | | "Renewable energy" means solar energy, wind energy, water |
13 | | energy, geothermal energy, bioenergy, or hydrogen fuel and |
14 | | cells.
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15 | | "Renewable energy production facility" means a facility |
16 | | owned by a company that is engaged in and used such a facility |
17 | | for the production of solar energy, wind energy, water energy, |
18 | | geothermal energy, bioenergy, or hydrogen fuel and cells.
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19 | | "Taxpayer" means an individual, corporation, partnership, |
20 | | or other entity that has any Illinois income tax liability.
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21 | | "Underserved area" means a geographic area that meets one |
22 | | or more of the following conditions:
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23 | | (1) the area has a poverty rate of at least 20% |
24 | | according to the latest federal decennial census;
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25 | | (2) 75% or more of the children in the area |
26 | | participate in the federal free lunch program according to |
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1 | | reported statistics from the State Board of Education;
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2 | | (3) at least 20% of the households in the area receive |
3 | | assistance under the Supplemental Nutrition Assistance |
4 | | Program; or
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5 | | (4) the area has an average unemployment rate, as |
6 | | determined by the Department of Employment Security, that |
7 | | is more than 120% of the national unemployment average, as |
8 | | determined by the United States Department of Labor, for a |
9 | | period of at least 2 consecutive calendar years preceding |
10 | | the date of the application. |
11 | | Section 10-205. Powers of the Department. The Department, |
12 | | in addition to those powers granted under the Civil |
13 | | Administrative Code of Illinois and Part 1 of this Act, is |
14 | | granted and has all the powers necessary or convenient to |
15 | | carry out and effectuate the purposes and provisions of this |
16 | | Act, including, but not limited to, power and authority to:
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17 | | (a) Adopt rules deemed necessary and appropriate for the |
18 | | administration of programs; establish forms for applications, |
19 | | notifications, contracts, or any other agreements; and accept |
20 | | applications at any time during the year.
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21 | | (b) Provide and assist taxpayers pursuant to the |
22 | | provisions of this Act, and cooperate with taxpayers that are |
23 | | parties to agreements to promote, foster, and support economic |
24 | | development, capital investment, and job creation or retention |
25 | | within the Clean Energy Empowerment Zone.
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1 | | (c) Enter into agreements and memoranda of understanding |
2 | | for participation of and engage in cooperation with agencies |
3 | | of the federal government, units of local government, |
4 | | universities, research foundations or institutions, regional |
5 | | economic development corporations, or other organizations for |
6 | | the purposes of this Act.
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7 | | (d) Gather information and conduct inquiries, in the |
8 | | manner and by the methods as it deems desirable, including, |
9 | | without limitation, gathering information with respect to |
10 | | applicants for the purpose of making any designations or |
11 | | certifications necessary or desirable or to gather information |
12 | | to assist the Board with any recommendation or guidance in the |
13 | | furtherance of the purposes of this Act.
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14 | | (e) Establish, negotiate and effectuate any term, |
15 | | agreement or other document with any person, necessary or |
16 | | appropriate to accomplish the purposes of this Act, and |
17 | | consent, subject to the provisions of any agreement with |
18 | | another party, to the modification or restructuring of any |
19 | | agreement to which the Department is a party.
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20 | | (f) Fix, determine, charge, and collect any premiums, |
21 | | fees, charges, costs, and expenses from applicants, including, |
22 | | without limitation, any application fees, commitment fees, |
23 | | program fees, financing charges, or publication fees as deemed |
24 | | appropriate to pay expenses necessary or incident to the |
25 | | administration, staffing, or operation in connection with the |
26 | | Department's or Board's activities under this Act, or for |
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1 | | preparation, implementation, and enforcement of the terms of |
2 | | the agreement, or for consultation, advisory and legal fees, |
3 | | and other costs. All fees and expenses incident thereto shall |
4 | | be the responsibility of the applicant.
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5 | | (g) Provide for sufficient personnel to permit |
6 | | administration, staffing, operation, and related support |
7 | | required to adequately discharge its duties and |
8 | | responsibilities described in this Act from funds made |
9 | | available through charges to applicants or from funds as may |
10 | | be appropriated by the General Assembly for the administration |
11 | | of this Act.
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12 | | (h) Require applicants, upon written request, to issue any |
13 | | necessary authorization to the appropriate federal, State, or |
14 | | local authority for the release of information concerning a |
15 | | project being considered under the provisions of this Act, |
16 | | with the information requested to include, but not be limited |
17 | | to, financial reports, returns, or records relating to the |
18 | | taxpayer or its project.
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19 | | (i) Require that a taxpayer shall at all times keep proper |
20 | | books of record and account in accordance with generally |
21 | | accepted accounting principles consistently applied, with the |
22 | | books, records, or papers related to the agreement in the |
23 | | custody or control of the taxpayer open for reasonable |
24 | | Department inspection and audits, and including, without |
25 | | limitation, the making of copies of the books, records, or |
26 | | papers, and the inspection or appraisal of any of the taxpayer |
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1 | | or project assets.
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2 | | (j) Take whatever actions are necessary or appropriate to |
3 | | protect the State's interest in the event of bankruptcy, |
4 | | default, foreclosure, or noncompliance with the terms and |
5 | | conditions of financial assistance or participation required |
6 | | under this Act, including the power to sell, dispose, lease, |
7 | | or rent, upon terms and conditions determined by the Director |
8 | | to be appropriate, real or personal property that the |
9 | | Department may receive as a result of these actions. |
10 | | Section 10-210. Tax credit awards.
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11 | | (a) Subject to the conditions set forth in this Act, a |
12 | | taxpayer is entitled to a credit against or, as described in |
13 | | subsection (g), a payment toward taxes imposed pursuant to |
14 | | subsections (a) and (b) of Section 201 of the Illinois Income |
15 | | Tax Act that may be imposed on the taxpayer for a taxable year |
16 | | beginning on or after January 1, 2019, if the taxpayer is |
17 | | awarded a credit by the Department under this Act for that |
18 | | taxable year.
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19 | | (b) The Department shall make credit awards under this Act |
20 | | to foster job creation and the development of renewable energy |
21 | | in Clean Energy Empowerment Zones.
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22 | | (c) A person that proposes a project to create new jobs and |
23 | | to invest in the development of a renewable energy production |
24 | | facility in a Clean Energy Empowerment Zone must enter into an |
25 | | agreement with the Department for the credit under this Act. |
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1 | | (d) The credit shall be claimed for the taxable years |
2 | | specified in the agreement.
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3 | | (e) The credit shall not exceed the incremental income tax |
4 | | attributable to the project that is the subject of the |
5 | | agreement.
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6 | | (f) Nothing herein shall prohibit a tax credit award to an |
7 | | applicant that uses a Professional Employer Organization if |
8 | | all other award criteria are satisfied.
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9 | | (g) A pass-through entity that has been awarded a credit |
10 | | under this Act, its shareholders, or its partners may treat |
11 | | some or all of the credit awarded under this Act as a tax |
12 | | payment for purposes of the Illinois Income Tax Act. In no |
13 | | event shall the amount of the award credited under this Act |
14 | | exceed the Illinois income tax liability of the pass-through |
15 | | entity or its shareholders or partners for the taxable year.
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16 | | For the purposes of this subsection (g), "tax payment" |
17 | | means a payment as described in Article 6 or Article 8 of the |
18 | | Illinois Income Tax Act or a composite payment made by a |
19 | | pass-through entity on behalf of any of its shareholders or |
20 | | partners to satisfy such shareholders' or partners' taxes |
21 | | imposed pursuant to subsections (a) and (b) of Section 201 of |
22 | | the Illinois Income Tax Act.
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23 | | Section 10-215. Application for a project to create and |
24 | | retain new jobs and to develop renewable energy.
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25 | | (a) Any renewable energy enterprise proposing a project to |
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1 | | build a renewable energy production facility located or |
2 | | planned to be located in a Clean Energy Empowerment Zone may |
3 | | request consideration for designation of its project, by |
4 | | formal written letter of request or by formal application to |
5 | | the Department, in which the applicant states its intent to |
6 | | make at least a specified level of investment and intends to |
7 | | hire or retain a specified number of full-time employees at a |
8 | | designated location in Illinois. As circumstances require, the |
9 | | Department may require a formal application from an applicant |
10 | | and a formal letter of request for assistance.
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11 | | (b) In order to qualify for credits under this Act, an |
12 | | applicant's project must:
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13 | | (1) be for the purpose of producing renewable energy;
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14 | | (2) if the applicant has more than 100 employees, |
15 | | involve an investment of at least $2,500,000 in capital |
16 | | improvements to be placed in service within a Clean Energy |
17 | | Empowerment Zone as a direct result of the project. If the |
18 | | applicant has 100 or fewer employees, then there is no |
19 | | capital investment requirement; and
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20 | | (3) if the applicant has more than 100 employees, |
21 | | employ a number of new employees in the Clean Energy |
22 | | Empowerment Zone equal to the lesser of (A) 10% of the |
23 | | number of full-time employees employed by the applicant |
24 | | world-wide on the date the application is filed with the |
25 | | Department; or (B) 50 new employees. If the applicant has |
26 | | 100 or fewer employees, employ a number of new employees |
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1 | | in the State equal to the lesser of (A) 5% of the number of |
2 | | full-time employees employed by the applicant world-wide |
3 | | on the date the application is filed with the Department |
4 | | or (B) 50 New Employees. |
5 | | (c) After receipt of an application, the Department shall |
6 | | review the application, make inquiries, and conduct studies in |
7 | | the manner and by the methods as it deems desirable, and |
8 | | consult with and make a recommendation to the Clean Energy |
9 | | Empowerment Zone Board created under the Energy Community |
10 | | Reinvestment Act. The Department and the Board shall make its |
11 | | recommendations and approvals based on whether they determine |
12 | | that all of the following conditions exist: |
13 | | (1) The applicant's project will make the required |
14 | | investment in the State and the applicant intends to hire |
15 | | the required number of new employees in Illinois as a |
16 | | result of that project, as described in this Act. |
17 | | (2) The applicant's project is economically sound and |
18 | | will benefit the people of the State of Illinois by |
19 | | increasing opportunities for employment and strengthening |
20 | | the economy of Illinois. |
21 | | (3) That, if not for the credit, the project would not |
22 | | occur in Illinois or in the Clean Energy Empowerment Zone, |
23 | | which may be demonstrated by evidence that receipt of the |
24 | | credit is essential to the applicant's decision to create |
25 | | new jobs in the State, such as the magnitude of the cost |
26 | | differential between Illinois and a competing state;
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1 | | (4) The political subdivisions affected by the project |
2 | | have committed local incentives or other support with |
3 | | respect to the project, considering local ability to |
4 | | assist.
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5 | | (5) Awarding the credit will result in an overall |
6 | | positive fiscal impact to the State, as certified by the |
7 | | Board using the best available data.
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8 | | (6) The credit is not prohibited by Section 10-225.
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9 | | (d) After approval by the Board, the Department may enter |
10 | | into an agreement with the applicant.
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11 | | Section 10-220. Relocation of jobs to Clean Energy |
12 | | Empowerment Zone. A taxpayer is not entitled to claim the |
13 | | credit provided by this Act with respect to any jobs that the |
14 | | taxpayer relocates from one site in Illinois to another site |
15 | | in a Clean Energy Empowerment Zone. A taxpayer with respect to |
16 | | a qualifying project certified under the Corporate |
17 | | Headquarters Relocation Act, however, is not subject to the |
18 | | requirements of this Section, but is nevertheless considered |
19 | | an applicant for purposes of this Act. Moreover, any full-time |
20 | | employee of an eligible renewable energy enterprise relocated |
21 | | to a Clean Energy Empowerment Zone in connection with that |
22 | | qualifying project is deemed to be a new employee for purposes |
23 | | of this Act. Determinations under this Section shall be made |
24 | | by the Department. |
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1 | | Section 10-225. Determination of the amount of credit. In |
2 | | determining the amount of credit that should be awarded, the |
3 | | Board shall provide guidance on, and the Department shall take |
4 | | into consideration, all of the following factors:
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5 | | (1) the number and location of jobs created and |
6 | | retained in relation to the economy of the Clean Energy |
7 | | Empowerment Zone where the projected investment is to |
8 | | occur;
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9 | | (2) the potential impact on the economy of the Clean |
10 | | Energy Empowerment Zone;
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11 | | (3) the advancement of renewable energy in the Clean |
12 | | Energy Empowerment Zone;
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13 | | (4) the incremental payroll attributable to the |
14 | | project;
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15 | | (5) the capital investment attributable to the |
16 | | project;
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17 | | (6) the amount of the average wage and benefits paid |
18 | | by the applicant in relation to the wage and benefits of |
19 | | the Clean Energy Empowerment Zone;
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20 | | (7) the costs to Illinois and the affected political |
21 | | subdivisions with respect to the project; and
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22 | | (8) the financial assistance that is otherwise |
23 | | provided by Illinois and the affected political |
24 | | subdivisions.
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25 | | Section 10-230. Amount and duration of credit.
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1 | | (a) The Department shall determine the amount and duration |
2 | | of the credit awarded under this Act. The duration of the |
3 | | credit may not exceed 10 taxable years. The credit may be |
4 | | stated as a percentage of the incremental income tax |
5 | | attributable to the applicant's project and may include a |
6 | | fixed dollar limitation. An agreement for the credit must be |
7 | | finalized and signed by all parties while the area in which the |
8 | | project is located is designated a Clean Energy Empowerment |
9 | | Zone. The credit may last longer than the applicable Clean |
10 | | Energy Empowerment Zone designation. Agreements entered into |
11 | | prior to the de-designation of a Clean Energy Empowerment Zone |
12 | | shall be honored for the length of the agreement.
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13 | | (b) Notwithstanding subsection (a), and except as the |
14 | | credit may be applied in a carryover year as otherwise |
15 | | provided in this subsection (b), the credit may be applied |
16 | | against the State income tax liability in more than 10 taxable |
17 | | years, but not in more than 15 taxable years for an eligible |
18 | | green energy enterprise that: (i) qualifies under this Act and |
19 | | the Corporate Headquarters Relocation Act and has in fact |
20 | | undertaken a qualifying project within the time frame |
21 | | specified by the Department of Commerce and Economic |
22 | | Opportunity under that Act; and (ii) applies against its State |
23 | | income tax liability, during the entire 15-year period, no |
24 | | more than 60% of the maximum credit per year that would |
25 | | otherwise be available under this Act.
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26 | | Any credit that is unused in the year the credit is |
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1 | | computed may be carried forward and applied to the tax |
2 | | liability of the 5 taxable years following the excess credit |
3 | | year. The credit shall be applied to the earliest year for |
4 | | which there is a tax liability. If there are credits from more |
5 | | than one tax year that are available to offset a liability, the |
6 | | earlier credit shall be applied first.
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7 | | Section 10-235. Contents of agreements with applicants. |
8 | | The Department shall enter into an agreement with an applicant |
9 | | that is awarded a credit under this Act. |
10 | | Section 10-240. Certificate of verification; submission to |
11 | | the Department of Revenue. A taxpayer claiming a credit under |
12 | | this Act shall submit to the Department of Revenue a copy of |
13 | | the Director's certificate of verification under this Act for |
14 | | the taxable year. Failure to submit a copy of the certificate |
15 | | with the taxpayer's tax return shall not invalidate a claim |
16 | | for a credit. |
17 | | Section 10-245. Supplier diversity. Each taxpayer claiming |
18 | | a credit under this Act shall, no later than April 15 of each |
19 | | taxable year for which the taxpayer claims a credit under this |
20 | | Act, submit to the Department of Commerce and Economic |
21 | | Opportunity an annual report containing the information |
22 | | described in subsections (b), (c), (d), and (e) of Section |
23 | | 5-117 of the Public Utilities Act. Those reports shall be |
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1 | | submitted in the form and manner required by the Department of |
2 | | Commerce and Economic Opportunity. |
3 | | Section 10-250. Pass-through entity. The shareholders or |
4 | | partners of a taxpayer that is a pass-through entity shall be |
5 | | entitled to the credit allowed under the agreement. The credit |
6 | | is in addition to any credit to which a shareholder or partner |
7 | | is otherwise entitled under a separate agreement under this |
8 | | Act. A pass-through entity and a shareholder or partner of the |
9 | | pass-through entity may not claim more than one credit under |
10 | | the same agreement. |
11 | | Section 10-255. Rules. The Department may adopt rules |
12 | | necessary to implement this Part 2. The rules may provide for |
13 | | recipients of credits under this Part 2 to be charged fees to |
14 | | cover administrative costs of the tax credit program. Fees |
15 | | collected shall be deposited into the Energy Community |
16 | | Reinvestment Fund. |
17 | | Section 10-260. Program terms and conditions.
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18 | | (a) Any documentary materials or data made available or |
19 | | received by any member of a board or any agent or employee of |
20 | | the Department shall be deemed confidential and shall not be |
21 | | deemed public records to the extent that the materials or data |
22 | | consists of trade secrets, commercial or financial information |
23 | | regarding the operation of the business conducted by the |
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1 | | applicant for or recipient of any tax credit under this Act, or |
2 | | any information regarding the competitive position of a |
3 | | business in a particular field of endeavor.
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4 | | (b) Nothing in this Act shall be construed as creating any |
5 | | rights in any applicant to enter into an agreement or in any |
6 | | person to challenge the terms of any agreement.
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7 | | ARTICLE 15. Coal Severance Fee Act |
8 | | Section 15-1. Short title. This Article may be cited as |
9 | | the Coal Severance Fee Act. References in this Article to |
10 | | "this Act" mean
this Article. |
11 | | Section 15-5. Coal severance fee. |
12 | | (a) Definitions. As used in this Act: |
13 | | "Department" means the Department of Revenue. |
14 | | "Person" means any natural individual, firm, partnership, |
15 | | association, joint stock company, joint adventure, public or |
16 | | private corporation, limited liability company, or a receiver, |
17 | | executor, trustee, guardian, or other representative appointed |
18 | | by order of any court. |
19 | | (b) Tax imposed. |
20 | | (1) On and after June 1, 2021, there is hereby imposed |
21 | | a tax upon any person engaged in the business of severing |
22 | | or preparing coal for sale, profit, or commercial use, if |
23 | | the coal is severed from a mine located in this State. The |
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1 | | rate of the tax imposed under this Section is 6% of the |
2 | | gross value of the severed coal. |
3 | | (2) The liability for the tax accrues at the time the |
4 | | coal is severed. |
5 | | (c) Payment and collection of tax. |
6 | | (1) The tax imposed under this Act shall be due and |
7 | | payable on or before the 20th day of the month following |
8 | | the month in which the coal is severed. |
9 | | (2) The State shall have a lien on all coal severed in |
10 | | this State on or after June 1, 2021 to secure the payment |
11 | | of the tax. |
12 | | (d) Registration. A person who is subject to the tax |
13 | | imposed under this Act shall register with the Department. |
14 | | Application for a certificate of registration shall be made to |
15 | | the Department upon forms furnished by the Department and |
16 | | shall contain any reasonable information the Department may |
17 | | require. Upon receipt of the application for a certificate of |
18 | | registration in proper form, the Department shall issue to the |
19 | | applicant a certificate of registration. |
20 | | (e) Inspection of records by Department, subpoena power, |
21 | | contempt. For the purpose of computing the amount of the tax |
22 | | due under this Section, the Department has the following |
23 | | powers: |
24 | | (1) to require any person who is subject to this tax to |
25 | | furnish any additional information deemed to be necessary |
26 | | for the computation of the tax; |
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1 | | (2) to examine books, records, and files of such |
2 | | person; and |
3 | | (3) to issue subpoenas and examine witnesses under |
4 | | oath. If any witness fails or refuses to appear at the |
5 | | request of the Director, or if any witness refuses access |
6 | | to books, records, or files, the circuit court of the |
7 | | proper county, or the judge thereof, on application of the |
8 | | Department, shall compel obedience by proceedings for |
9 | | contempt, as in the case of disobedience of the |
10 | | requirements of a subpoena issued from that court or a |
11 | | refusal to testify therein. |
12 | | (f) Returns. Each taxpayer shall make a return to the |
13 | | Department showing the following: |
14 | | (1) the name of the taxpayer; |
15 | | (2) the address of the taxpayer's principal place of |
16 | | business; |
17 | | (3) the quantity of coal severed or prepared during |
18 | | the month for which the return is filed; |
19 | | (4) the gross value of the severed coal; |
20 | | (5) the amount of tax due; |
21 | | (6) the signature of the taxpayer; and |
22 | | (7) any other reasonable information as the Department |
23 | | may require. |
24 | | (g) The return shall be filed on or before the 20th day of |
25 | | the month after the month during which the coal is severed. The |
26 | | Department may require any additional report or information it |
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1 | | deems necessary for the proper administration of this Act. |
2 | | (h) Returns due under this Section shall be filed |
3 | | electronically in the manner prescribed by the Department. |
4 | | Taxpayers shall make all payments of the tax to the Department |
5 | | under this Act by electronic funds transfer unless, as |
6 | | provided by rule, the Department grants an exception upon |
7 | | petition of a taxpayer. Returns must be accompanied by |
8 | | appropriate computer generated magnetic media supporting |
9 | | schedule data in the format required by the Department, |
10 | | unless, as provided by rule, the Department grants an |
11 | | exception upon petition of a taxpayer. |
12 | | (i) Incorporation by reference. All of the provisions of |
13 | | Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b, |
14 | | 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' |
15 | | Occupation Tax Act which are not inconsistent with this Act, |
16 | | and all provisions of the Uniform Penalty and Interest Act |
17 | | shall apply, as far as practicable, to the subject matter of |
18 | | this Act to the same extent as if such provisions were included |
19 | | herein. |
20 | | (j) Rulemaking. The Department is hereby authorized to |
21 | | adopt rules as may be necessary to administer and enforce the |
22 | | provisions of this Act. |
23 | | (k) Distribution of proceeds. All moneys received by the |
24 | | Department under this Act shall be paid into the Energy |
25 | | Community Reinvestment Fund. |
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1 | | Article 90. Amendatory Provisions |
2 | | Section 90-5. The Illinois Administrative Procedure Act is |
3 | | amended by adding Section 5-45.8 as follows: |
4 | | (5 ILCS 100/5-45.8 new) |
5 | | Sec. 5-45.8. Emergency rulemaking; Energy Community |
6 | | Reinvestment Act. To provide for the expeditious and timely |
7 | | implementation of the Energy Community Reinvestment Act, |
8 | | emergency rules may be adopted in accordance with Section 5-45 |
9 | | by the Department of Commerce and Economic Opportunity to |
10 | | implement Section 5-15 of the Energy Community Reinvestment |
11 | | Act with respect to applications for designation as Clean |
12 | | Energy Empowerment Zones. The adoption of emergency rules
|
13 | | authorized by Section 5-45 and this Section is deemed to be |
14 | | necessary for the public interest, safety, and welfare. |
15 | | Section 90-10. The State Finance Act is amended by adding |
16 | | Section 5.935 as follows: |
17 | | (30 ILCS 105/5.935 new) |
18 | | Sec. 5.935. The Energy Community Reinvestment Fund. |
19 | | Section 90-15. The Illinois Income Tax Act is amended by |
20 | | changing Section 201 as follows:
|
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1 | | (35 ILCS 5/201)
|
2 | | (Text of Section without the changes made by P.A. 101-8, |
3 | | which did not take effect (see Section 99 of P.A. 101-8)) |
4 | | Sec. 201. Tax imposed. |
5 | | (a) In general. A tax measured by net income is hereby |
6 | | imposed on every
individual, corporation, trust and estate for |
7 | | each taxable year ending
after July 31, 1969 on the privilege |
8 | | of earning or receiving income in or
as a resident of this |
9 | | State. Such tax shall be in addition to all other
occupation or |
10 | | privilege taxes imposed by this State or by any municipal
|
11 | | corporation or political subdivision thereof. |
12 | | (b) Rates. The tax imposed by subsection (a) of this |
13 | | Section shall be
determined as follows, except as adjusted by |
14 | | subsection (d-1): |
15 | | (1) In the case of an individual, trust or estate, for |
16 | | taxable years
ending prior to July 1, 1989, an amount |
17 | | equal to 2 1/2% of the taxpayer's
net income for the |
18 | | taxable year. |
19 | | (2) In the case of an individual, trust or estate, for |
20 | | taxable years
beginning prior to July 1, 1989 and ending |
21 | | after June 30, 1989, an amount
equal to the sum of (i) 2 |
22 | | 1/2% of the taxpayer's net income for the period
prior to |
23 | | July 1, 1989, as calculated under Section 202.3, and (ii) |
24 | | 3% of the
taxpayer's net income for the period after June |
25 | | 30, 1989, as calculated
under Section 202.3. |
26 | | (3) In the case of an individual, trust or estate, for |
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1 | | taxable years
beginning after June 30, 1989, and ending |
2 | | prior to January 1, 2011, an amount equal to 3% of the |
3 | | taxpayer's net
income for the taxable year. |
4 | | (4) In the case of an individual, trust, or estate, |
5 | | for taxable years beginning prior to January 1, 2011, and |
6 | | ending after December 31, 2010, an amount equal to the sum |
7 | | of (i) 3% of the taxpayer's net income for the period prior |
8 | | to January 1, 2011, as calculated under Section 202.5, and |
9 | | (ii) 5% of the taxpayer's net income for the period after |
10 | | December 31, 2010, as calculated under Section 202.5. |
11 | | (5) In the case of an individual, trust, or estate, |
12 | | for taxable years beginning on or after January 1, 2011, |
13 | | and ending prior to January 1, 2015, an amount equal to 5% |
14 | | of the taxpayer's net income for the taxable year. |
15 | | (5.1) In the case of an individual, trust, or estate, |
16 | | for taxable years beginning prior to January 1, 2015, and |
17 | | ending after December 31, 2014, an amount equal to the sum |
18 | | of (i) 5% of the taxpayer's net income for the period prior |
19 | | to January 1, 2015, as calculated under Section 202.5, and |
20 | | (ii) 3.75% of the taxpayer's net income for the period |
21 | | after December 31, 2014, as calculated under Section |
22 | | 202.5. |
23 | | (5.2) In the case of an individual, trust, or estate, |
24 | | for taxable years beginning on or after January 1, 2015, |
25 | | and ending prior to July 1, 2017, an amount equal to 3.75% |
26 | | of the taxpayer's net income for the taxable year. |
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1 | | (5.3) In the case of an individual, trust, or estate, |
2 | | for taxable years beginning prior to July 1, 2017, and |
3 | | ending after June 30, 2017, an amount equal to the sum of |
4 | | (i) 3.75% of the taxpayer's net income for the period |
5 | | prior to July 1, 2017, as calculated under Section 202.5, |
6 | | and (ii) 4.95% of the taxpayer's net income for the period |
7 | | after June 30, 2017, as calculated under Section 202.5. |
8 | | (5.4) In the case of an individual, trust, or estate, |
9 | | for taxable years beginning on or after July 1, 2017, an |
10 | | amount equal to 4.95% of the taxpayer's net income for the |
11 | | taxable year. |
12 | | (6) In the case of a corporation, for taxable years
|
13 | | ending prior to July 1, 1989, an amount equal to 4% of the
|
14 | | taxpayer's net income for the taxable year. |
15 | | (7) In the case of a corporation, for taxable years |
16 | | beginning prior to
July 1, 1989 and ending after June 30, |
17 | | 1989, an amount equal to the sum of
(i) 4% of the |
18 | | taxpayer's net income for the period prior to July 1, |
19 | | 1989,
as calculated under Section 202.3, and (ii) 4.8% of |
20 | | the taxpayer's net
income for the period after June 30, |
21 | | 1989, as calculated under Section
202.3. |
22 | | (8) In the case of a corporation, for taxable years |
23 | | beginning after
June 30, 1989, and ending prior to January |
24 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net |
25 | | income for the
taxable year. |
26 | | (9) In the case of a corporation, for taxable years |
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1 | | beginning prior to January 1, 2011, and ending after |
2 | | December 31, 2010, an amount equal to the sum of (i) 4.8% |
3 | | of the taxpayer's net income for the period prior to |
4 | | January 1, 2011, as calculated under Section 202.5, and |
5 | | (ii) 7% of the taxpayer's net income for the period after |
6 | | December 31, 2010, as calculated under Section 202.5. |
7 | | (10) In the case of a corporation, for taxable years |
8 | | beginning on or after January 1, 2011, and ending prior to |
9 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
10 | | net income for the taxable year. |
11 | | (11) In the case of a corporation, for taxable years |
12 | | beginning prior to January 1, 2015, and ending after |
13 | | December 31, 2014, an amount equal to the sum of (i) 7% of |
14 | | the taxpayer's net income for the period prior to January |
15 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% |
16 | | of the taxpayer's net income for the period after December |
17 | | 31, 2014, as calculated under Section 202.5. |
18 | | (12) In the case of a corporation, for taxable years |
19 | | beginning on or after January 1, 2015, and ending prior to |
20 | | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
21 | | net income for the taxable year. |
22 | | (13) In the case of a corporation, for taxable years |
23 | | beginning prior to July 1, 2017, and ending after June 30, |
24 | | 2017, an amount equal to the sum of (i) 5.25% of the |
25 | | taxpayer's net income for the period prior to July 1, |
26 | | 2017, as calculated under Section 202.5, and (ii) 7% of |
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1 | | the taxpayer's net income for the period after June 30, |
2 | | 2017, as calculated under Section 202.5. |
3 | | (14) In the case of a corporation, for taxable years |
4 | | beginning on or after July 1, 2017, an amount equal to 7% |
5 | | of the taxpayer's net income for the taxable year. |
6 | | The rates under this subsection (b) are subject to the |
7 | | provisions of Section 201.5. |
8 | | (b-5) Surcharge; sale or exchange of assets, properties, |
9 | | and intangibles of organization gaming licensees. For each of |
10 | | taxable years 2019 through 2027, a surcharge is imposed on all |
11 | | taxpayers on income arising from the sale or exchange of |
12 | | capital assets, depreciable business property, real property |
13 | | used in the trade or business, and Section 197 intangibles (i) |
14 | | of an organization licensee under the Illinois Horse Racing |
15 | | Act of 1975 and (ii) of an organization gaming licensee under |
16 | | the Illinois Gambling Act. The amount of the surcharge is |
17 | | equal to the amount of federal income tax liability for the |
18 | | taxable year attributable to those sales and exchanges. The |
19 | | surcharge imposed shall not apply if: |
20 | | (1) the organization gaming license, organization |
21 | | license, or racetrack property is transferred as a result |
22 | | of any of the following: |
23 | | (A) bankruptcy, a receivership, or a debt |
24 | | adjustment initiated by or against the initial |
25 | | licensee or the substantial owners of the initial |
26 | | licensee; |
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1 | | (B) cancellation, revocation, or termination of |
2 | | any such license by the Illinois Gaming Board or the |
3 | | Illinois Racing Board; |
4 | | (C) a determination by the Illinois Gaming Board |
5 | | that transfer of the license is in the best interests |
6 | | of Illinois gaming; |
7 | | (D) the death of an owner of the equity interest in |
8 | | a licensee; |
9 | | (E) the acquisition of a controlling interest in |
10 | | the stock or substantially all of the assets of a |
11 | | publicly traded company; |
12 | | (F) a transfer by a parent company to a wholly |
13 | | owned subsidiary; or |
14 | | (G) the transfer or sale to or by one person to |
15 | | another person where both persons were initial owners |
16 | | of the license when the license was issued; or |
17 | | (2) the controlling interest in the organization |
18 | | gaming license, organization license, or racetrack |
19 | | property is transferred in a transaction to lineal |
20 | | descendants in which no gain or loss is recognized or as a |
21 | | result of a transaction in accordance with Section 351 of |
22 | | the Internal Revenue Code in which no gain or loss is |
23 | | recognized; or |
24 | | (3) live horse racing was not conducted in 2010 at a |
25 | | racetrack located within 3 miles of the Mississippi River |
26 | | under a license issued pursuant to the Illinois Horse |
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1 | | Racing Act of 1975. |
2 | | The transfer of an organization gaming license, |
3 | | organization license, or racetrack property by a person other |
4 | | than the initial licensee to receive the organization gaming |
5 | | license is not subject to a surcharge. The Department shall |
6 | | adopt rules necessary to implement and administer this |
7 | | subsection. |
8 | | (c) Personal Property Tax Replacement Income Tax.
|
9 | | Beginning on July 1, 1979 and thereafter, in addition to such |
10 | | income
tax, there is also hereby imposed the Personal Property |
11 | | Tax Replacement
Income Tax measured by net income on every |
12 | | corporation (including Subchapter
S corporations), partnership |
13 | | and trust, for each taxable year ending after
June 30, 1979. |
14 | | Such taxes are imposed on the privilege of earning or
|
15 | | receiving income in or as a resident of this State. The |
16 | | Personal Property
Tax Replacement Income Tax shall be in |
17 | | addition to the income tax imposed
by subsections (a) and (b) |
18 | | of this Section and in addition to all other
occupation or |
19 | | privilege taxes imposed by this State or by any municipal
|
20 | | corporation or political subdivision thereof. |
21 | | (d) Additional Personal Property Tax Replacement Income |
22 | | Tax Rates.
The personal property tax replacement income tax |
23 | | imposed by this subsection
and subsection (c) of this Section |
24 | | in the case of a corporation, other
than a Subchapter S |
25 | | corporation and except as adjusted by subsection (d-1),
shall |
26 | | be an additional amount equal to
2.85% of such taxpayer's net |
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1 | | income for the taxable year, except that
beginning on January |
2 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
3 | | subsection shall be reduced to 2.5%, and in the case of a
|
4 | | partnership, trust or a Subchapter S corporation shall be an |
5 | | additional
amount equal to 1.5% of such taxpayer's net income |
6 | | for the taxable year. |
7 | | (d-1) Rate reduction for certain foreign insurers. In the |
8 | | case of a
foreign insurer, as defined by Section 35A-5 of the |
9 | | Illinois Insurance Code,
whose state or country of domicile |
10 | | imposes on insurers domiciled in Illinois
a retaliatory tax |
11 | | (excluding any insurer
whose premiums from reinsurance assumed |
12 | | are 50% or more of its total insurance
premiums as determined |
13 | | under paragraph (2) of subsection (b) of Section 304,
except |
14 | | that for purposes of this determination premiums from |
15 | | reinsurance do
not include premiums from inter-affiliate |
16 | | reinsurance arrangements),
beginning with taxable years ending |
17 | | on or after December 31, 1999,
the sum of
the rates of tax |
18 | | imposed by subsections (b) and (d) shall be reduced (but not
|
19 | | increased) to the rate at which the total amount of tax imposed |
20 | | under this Act,
net of all credits allowed under this Act, |
21 | | shall equal (i) the total amount of
tax that would be imposed |
22 | | on the foreign insurer's net income allocable to
Illinois for |
23 | | the taxable year by such foreign insurer's state or country of
|
24 | | domicile if that net income were subject to all income taxes |
25 | | and taxes
measured by net income imposed by such foreign |
26 | | insurer's state or country of
domicile, net of all credits |
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1 | | allowed or (ii) a rate of zero if no such tax is
imposed on |
2 | | such income by the foreign insurer's state of domicile.
For |
3 | | the purposes of this subsection (d-1), an inter-affiliate |
4 | | includes a
mutual insurer under common management. |
5 | | (1) For the purposes of subsection (d-1), in no event |
6 | | shall the sum of the
rates of tax imposed by subsections |
7 | | (b) and (d) be reduced below the rate at
which the sum of: |
8 | | (A) the total amount of tax imposed on such |
9 | | foreign insurer under
this Act for a taxable year, net |
10 | | of all credits allowed under this Act, plus |
11 | | (B) the privilege tax imposed by Section 409 of |
12 | | the Illinois Insurance
Code, the fire insurance |
13 | | company tax imposed by Section 12 of the Fire
|
14 | | Investigation Act, and the fire department taxes |
15 | | imposed under Section 11-10-1
of the Illinois |
16 | | Municipal Code, |
17 | | equals 1.25% for taxable years ending prior to December |
18 | | 31, 2003, or
1.75% for taxable years ending on or after |
19 | | December 31, 2003, of the net
taxable premiums written for |
20 | | the taxable year,
as described by subsection (1) of |
21 | | Section 409 of the Illinois Insurance Code.
This paragraph |
22 | | will in no event increase the rates imposed under |
23 | | subsections
(b) and (d). |
24 | | (2) Any reduction in the rates of tax imposed by this |
25 | | subsection shall be
applied first against the rates |
26 | | imposed by subsection (b) and only after the
tax imposed |
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1 | | by subsection (a) net of all credits allowed under this |
2 | | Section
other than the credit allowed under subsection (i) |
3 | | has been reduced to zero,
against the rates imposed by |
4 | | subsection (d). |
5 | | This subsection (d-1) is exempt from the provisions of |
6 | | Section 250. |
7 | | (e) Investment credit. A taxpayer shall be allowed a |
8 | | credit
against the Personal Property Tax Replacement Income |
9 | | Tax for
investment in qualified property. |
10 | | (1) A taxpayer shall be allowed a credit equal to .5% |
11 | | of
the basis of qualified property placed in service |
12 | | during the taxable year,
provided such property is placed |
13 | | in service on or after
July 1, 1984. There shall be allowed |
14 | | an additional credit equal
to .5% of the basis of |
15 | | qualified property placed in service during the
taxable |
16 | | year, provided such property is placed in service on or
|
17 | | after July 1, 1986, and the taxpayer's base employment
|
18 | | within Illinois has increased by 1% or more over the |
19 | | preceding year as
determined by the taxpayer's employment |
20 | | records filed with the
Illinois Department of Employment |
21 | | Security. Taxpayers who are new to
Illinois shall be |
22 | | deemed to have met the 1% growth in base employment for
the |
23 | | first year in which they file employment records with the |
24 | | Illinois
Department of Employment Security. The provisions |
25 | | added to this Section by
Public Act 85-1200 (and restored |
26 | | by Public Act 87-895) shall be
construed as declaratory of |
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1 | | existing law and not as a new enactment. If,
in any year, |
2 | | the increase in base employment within Illinois over the
|
3 | | preceding year is less than 1%, the additional credit |
4 | | shall be limited to that
percentage times a fraction, the |
5 | | numerator of which is .5% and the denominator
of which is |
6 | | 1%, but shall not exceed .5%. The investment credit shall |
7 | | not be
allowed to the extent that it would reduce a |
8 | | taxpayer's liability in any tax
year below zero, nor may |
9 | | any credit for qualified property be allowed for any
year |
10 | | other than the year in which the property was placed in |
11 | | service in
Illinois. For tax years ending on or after |
12 | | December 31, 1987, and on or
before December 31, 1988, the |
13 | | credit shall be allowed for the tax year in
which the |
14 | | property is placed in service, or, if the amount of the |
15 | | credit
exceeds the tax liability for that year, whether it |
16 | | exceeds the original
liability or the liability as later |
17 | | amended, such excess may be carried
forward and applied to |
18 | | the tax liability of the 5 taxable years following
the |
19 | | excess credit years if the taxpayer (i) makes investments |
20 | | which cause
the creation of a minimum of 2,000 full-time |
21 | | equivalent jobs in Illinois,
(ii) is located in an |
22 | | enterprise zone established pursuant to the Illinois
|
23 | | Enterprise Zone Act and (iii) is certified by the |
24 | | Department of Commerce
and Community Affairs (now |
25 | | Department of Commerce and Economic Opportunity) as |
26 | | complying with the requirements specified in
clause (i) |
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1 | | and (ii) by July 1, 1986. The Department of Commerce and
|
2 | | Community Affairs (now Department of Commerce and Economic |
3 | | Opportunity) shall notify the Department of Revenue of all |
4 | | such
certifications immediately. For tax years ending |
5 | | after December 31, 1988,
the credit shall be allowed for |
6 | | the tax year in which the property is
placed in service, |
7 | | or, if the amount of the credit exceeds the tax
liability |
8 | | for that year, whether it exceeds the original liability |
9 | | or the
liability as later amended, such excess may be |
10 | | carried forward and applied
to the tax liability of the 5 |
11 | | taxable years following the excess credit
years. The |
12 | | credit shall be applied to the earliest year for which |
13 | | there is
a liability. If there is credit from more than one |
14 | | tax year that is
available to offset a liability, earlier |
15 | | credit shall be applied first. |
16 | | (2) The term "qualified property" means property |
17 | | which: |
18 | | (A) is tangible, whether new or used, including |
19 | | buildings and structural
components of buildings and |
20 | | signs that are real property, but not including
land |
21 | | or improvements to real property that are not a |
22 | | structural component of a
building such as |
23 | | landscaping, sewer lines, local access roads, fencing, |
24 | | parking
lots, and other appurtenances; |
25 | | (B) is depreciable pursuant to Section 167 of the |
26 | | Internal Revenue Code,
except that "3-year property" |
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1 | | as defined in Section 168(c)(2)(A) of that
Code is not |
2 | | eligible for the credit provided by this subsection |
3 | | (e); |
4 | | (C) is acquired by purchase as defined in Section |
5 | | 179(d) of
the Internal Revenue Code; |
6 | | (D) is used in Illinois by a taxpayer who is |
7 | | primarily engaged in
manufacturing, or in mining coal |
8 | | or fluorite, or in retailing, or was placed in service |
9 | | on or after July 1, 2006 in a River Edge Redevelopment |
10 | | Zone established pursuant to the River Edge |
11 | | Redevelopment Zone Act; and |
12 | | (E) has not previously been used in Illinois in |
13 | | such a manner and by
such a person as would qualify for |
14 | | the credit provided by this subsection
(e) or |
15 | | subsection (f). |
16 | | (3) For purposes of this subsection (e), |
17 | | "manufacturing" means
the material staging and production |
18 | | of tangible personal property by
procedures commonly |
19 | | regarded as manufacturing, processing, fabrication, or
|
20 | | assembling which changes some existing material into new |
21 | | shapes, new
qualities, or new combinations. For purposes |
22 | | of this subsection
(e) the term "mining" shall have the |
23 | | same meaning as the term "mining" in
Section 613(c) of the |
24 | | Internal Revenue Code. For purposes of this subsection
|
25 | | (e), the term "retailing" means the sale of tangible |
26 | | personal property for use or consumption and not for |
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1 | | resale, or
services rendered in conjunction with the sale |
2 | | of tangible personal property for use or consumption and |
3 | | not for resale. For purposes of this subsection (e), |
4 | | "tangible personal property" has the same meaning as when |
5 | | that term is used in the Retailers' Occupation Tax Act, |
6 | | and, for taxable years ending after December 31, 2008, |
7 | | does not include the generation, transmission, or |
8 | | distribution of electricity. |
9 | | (4) The basis of qualified property shall be the basis
|
10 | | used to compute the depreciation deduction for federal |
11 | | income tax purposes. |
12 | | (5) If the basis of the property for federal income |
13 | | tax depreciation
purposes is increased after it has been |
14 | | placed in service in Illinois by
the taxpayer, the amount |
15 | | of such increase shall be deemed property placed
in |
16 | | service on the date of such increase in basis. |
17 | | (6) The term "placed in service" shall have the same
|
18 | | meaning as under Section 46 of the Internal Revenue Code. |
19 | | (7) If during any taxable year, any property ceases to
|
20 | | be qualified property in the hands of the taxpayer within |
21 | | 48 months after
being placed in service, or the situs of |
22 | | any qualified property is
moved outside Illinois within 48 |
23 | | months after being placed in service, the
Personal |
24 | | Property Tax Replacement Income Tax for such taxable year |
25 | | shall be
increased. Such increase shall be determined by |
26 | | (i) recomputing the
investment credit which would have |
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1 | | been allowed for the year in which
credit for such |
2 | | property was originally allowed by eliminating such
|
3 | | property from such computation and, (ii) subtracting such |
4 | | recomputed credit
from the amount of credit previously |
5 | | allowed. For the purposes of this
paragraph (7), a |
6 | | reduction of the basis of qualified property resulting
|
7 | | from a redetermination of the purchase price shall be |
8 | | deemed a disposition
of qualified property to the extent |
9 | | of such reduction. |
10 | | (8) Unless the investment credit is extended by law, |
11 | | the
basis of qualified property shall not include costs |
12 | | incurred after
December 31, 2018, except for costs |
13 | | incurred pursuant to a binding
contract entered into on or |
14 | | before December 31, 2018. |
15 | | (9) Each taxable year ending before December 31, 2000, |
16 | | a partnership may
elect to pass through to its
partners |
17 | | the credits to which the partnership is entitled under |
18 | | this subsection
(e) for the taxable year. A partner may |
19 | | use the credit allocated to him or her
under this |
20 | | paragraph only against the tax imposed in subsections (c) |
21 | | and (d) of
this Section. If the partnership makes that |
22 | | election, those credits shall be
allocated among the |
23 | | partners in the partnership in accordance with the rules
|
24 | | set forth in Section 704(b) of the Internal Revenue Code, |
25 | | and the rules
promulgated under that Section, and the |
26 | | allocated amount of the credits shall
be allowed to the |
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1 | | partners for that taxable year. The partnership shall make
|
2 | | this election on its Personal Property Tax Replacement |
3 | | Income Tax return for
that taxable year. The election to |
4 | | pass through the credits shall be
irrevocable. |
5 | | For taxable years ending on or after December 31, |
6 | | 2000, a
partner that qualifies its
partnership for a |
7 | | subtraction under subparagraph (I) of paragraph (2) of
|
8 | | subsection (d) of Section 203 or a shareholder that |
9 | | qualifies a Subchapter S
corporation for a subtraction |
10 | | under subparagraph (S) of paragraph (2) of
subsection (b) |
11 | | of Section 203 shall be allowed a credit under this |
12 | | subsection
(e) equal to its share of the credit earned |
13 | | under this subsection (e) during
the taxable year by the |
14 | | partnership or Subchapter S corporation, determined in
|
15 | | accordance with the determination of income and |
16 | | distributive share of
income under Sections 702 and 704 |
17 | | and Subchapter S of the Internal Revenue
Code. This |
18 | | paragraph is exempt from the provisions of Section 250. |
19 | | (f) Investment credit; Enterprise Zone; River Edge |
20 | | Redevelopment Zone. |
21 | | (1) A taxpayer shall be allowed a credit against the |
22 | | tax imposed
by subsections (a) and (b) of this Section for |
23 | | investment in qualified
property which is placed in |
24 | | service in an Enterprise Zone created
pursuant to the |
25 | | Illinois Enterprise Zone Act or, for property placed in |
26 | | service on or after July 1, 2006, a River Edge |
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1 | | Redevelopment Zone established pursuant to the River Edge |
2 | | Redevelopment Zone Act. For partners, shareholders
of |
3 | | Subchapter S corporations, and owners of limited liability |
4 | | companies,
if the liability company is treated as a |
5 | | partnership for purposes of
federal and State income |
6 | | taxation, there shall be allowed a credit under
this |
7 | | subsection (f) to be determined in accordance with the |
8 | | determination
of income and distributive share of income |
9 | | under Sections 702 and 704 and
Subchapter S of the |
10 | | Internal Revenue Code. The credit shall be .5% of the
|
11 | | basis for such property. The credit shall be available |
12 | | only in the taxable
year in which the property is placed in |
13 | | service in the Enterprise Zone or River Edge Redevelopment |
14 | | Zone and
shall not be allowed to the extent that it would |
15 | | reduce a taxpayer's
liability for the tax imposed by |
16 | | subsections (a) and (b) of this Section to
below zero. For |
17 | | tax years ending on or after December 31, 1985, the credit
|
18 | | shall be allowed for the tax year in which the property is |
19 | | placed in
service, or, if the amount of the credit exceeds |
20 | | the tax liability for that
year, whether it exceeds the |
21 | | original liability or the liability as later
amended, such |
22 | | excess may be carried forward and applied to the tax
|
23 | | liability of the 5 taxable years following the excess |
24 | | credit year.
The credit shall be applied to the earliest |
25 | | year for which there is a
liability. If there is credit |
26 | | from more than one tax year that is available
to offset a |
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1 | | liability, the credit accruing first in time shall be |
2 | | 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 |
23 | | tax depreciation
purposes is increased after it has been |
24 | | placed 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 |
8 | | Zone or River Edge Redevelopment Zone within 48 months |
9 | | after being placed in service, the tax
imposed under |
10 | | subsections (a) and (b) of this Section for such taxable |
11 | | year
shall be increased. Such increase shall be determined |
12 | | by (i) recomputing
the investment credit which would have |
13 | | been allowed for the year in which
credit for such |
14 | | property was originally allowed by eliminating such
|
15 | | property from such computation, and (ii) subtracting such |
16 | | recomputed credit
from the amount of credit previously |
17 | | allowed. For the purposes of this
paragraph (6), a |
18 | | reduction of the basis of qualified property resulting
|
19 | | from a redetermination of the purchase price shall be |
20 | | deemed a disposition
of qualified property to the extent |
21 | | of such reduction. |
22 | | (7) There shall be allowed an additional credit equal |
23 | | to 0.5% of the basis of qualified property placed in |
24 | | service during the taxable year in a River Edge |
25 | | Redevelopment Zone, provided such property is placed in |
26 | | service on or after July 1, 2006, and the taxpayer's base |
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1 | | employment within Illinois has increased by 1% or more |
2 | | over the preceding year as determined by the taxpayer's |
3 | | employment records filed with the Illinois Department of |
4 | | Employment Security. Taxpayers who are new to Illinois |
5 | | shall be deemed to have met the 1% growth in base |
6 | | employment for the first year in which they file |
7 | | employment records with the Illinois Department of |
8 | | Employment Security. If, in any year, the increase in base |
9 | | employment within Illinois over the preceding year is less |
10 | | than 1%, the additional credit shall be limited to that |
11 | | percentage times a fraction, the numerator of which is |
12 | | 0.5% and the denominator of which is 1%, but shall not |
13 | | exceed 0.5%.
|
14 | | (8) For taxable years beginning on or after January 1, |
15 | | 2021, there shall be allowed an Enterprise Zone |
16 | | construction jobs credit against the taxes imposed under |
17 | | subsections (a) and (b) of this Section as provided in |
18 | | Section 13 of the Illinois Enterprise Zone Act. |
19 | | The credit or credits may not reduce the taxpayer's |
20 | | liability to less than zero. If the amount of the credit or |
21 | | credits exceeds the taxpayer's liability, the excess may |
22 | | be carried forward and applied against the taxpayer's |
23 | | liability in succeeding calendar years in the same manner |
24 | | provided under paragraph (4) of Section 211 of this Act. |
25 | | The credit or credits shall be applied to the earliest |
26 | | year for which there is a tax liability. If there are |
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1 | | credits from more than one taxable year that are available |
2 | | to offset a liability, the earlier credit shall be applied |
3 | | first. |
4 | | For partners, shareholders of Subchapter S |
5 | | corporations, and owners of limited liability companies, |
6 | | if the liability company is treated as a partnership for |
7 | | the purposes of federal and State income taxation, there |
8 | | shall be allowed a credit under this Section to be |
9 | | determined in accordance with the determination of income |
10 | | and distributive share of income under Sections 702 and |
11 | | 704 and Subchapter S of the Internal Revenue Code. |
12 | | The total aggregate amount of credits awarded under |
13 | | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 |
14 | | this amendatory Act of the 101st General Assembly ) shall |
15 | | not exceed $20,000,000 in any State fiscal year . |
16 | | This paragraph (8) is exempt from the provisions of |
17 | | Section 250. |
18 | | (g) (Blank). |
19 | | (h) Investment credit; High Impact Business. |
20 | | (1) Subject to subsections (b) and (b-5) of Section
|
21 | | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall |
22 | | be allowed a credit
against the tax imposed by subsections |
23 | | (a) and (b) of this Section for
investment in qualified
|
24 | | property which is placed in service by a Department of |
25 | | Commerce and Economic Opportunity
designated High Impact |
26 | | Business. The credit shall be .5% of the basis
for such |
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1 | | property. The credit shall not be available (i) until the |
2 | | minimum
investments in qualified property set forth in |
3 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
4 | | Enterprise Zone Act have been satisfied
or (ii) until the |
5 | | time authorized in subsection (b-5) of the Illinois
|
6 | | Enterprise Zone Act for entities designated as High Impact |
7 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and |
8 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone |
9 | | Act, and shall not be allowed to the extent that it would
|
10 | | reduce a taxpayer's liability for the tax imposed by |
11 | | subsections (a) and (b) of
this Section to below zero. The |
12 | | credit applicable to such investments shall be
taken in |
13 | | the taxable year in which such investments have been |
14 | | completed. The
credit for additional investments beyond |
15 | | the minimum investment by a designated
high impact |
16 | | business authorized under subdivision (a)(3)(A) of Section |
17 | | 5.5 of
the Illinois Enterprise Zone Act shall be available |
18 | | only in the taxable year in
which the property is placed in |
19 | | service and shall not be allowed to the extent
that it |
20 | | would reduce a taxpayer's liability for the tax imposed by |
21 | | subsections
(a) and (b) of this Section to below zero.
For |
22 | | tax years ending on or after December 31, 1987, the credit |
23 | | shall be
allowed for the tax year in which the property is |
24 | | placed in service, or, if
the amount of the credit exceeds |
25 | | the tax liability for that year, whether
it exceeds the |
26 | | original liability or the liability as later amended, such
|
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1 | | excess may be carried forward and applied to the tax |
2 | | liability of the 5
taxable years following the excess |
3 | | credit year. The credit shall be
applied to the earliest |
4 | | year for which there is a liability. If there is
credit |
5 | | from more than one tax year that is available to offset a |
6 | | liability,
the credit accruing first in time shall be |
7 | | applied first. |
8 | | Changes made in this subdivision (h)(1) by Public Act |
9 | | 88-670
restore changes made by Public Act 85-1182 and |
10 | | reflect existing law. |
11 | | (2) The term qualified property means property which: |
12 | | (A) is tangible, whether new or used, including |
13 | | buildings and
structural components of buildings; |
14 | | (B) is depreciable pursuant to Section 167 of the |
15 | | Internal Revenue
Code, except that "3-year property" |
16 | | as defined in Section 168(c)(2)(A) of
that Code is not |
17 | | eligible for the credit provided by this subsection |
18 | | (h); |
19 | | (C) is acquired by purchase as defined in Section |
20 | | 179(d) of the
Internal Revenue Code; and |
21 | | (D) is not eligible for the Enterprise Zone |
22 | | Investment Credit provided
by subsection (f) of this |
23 | | Section. |
24 | | (3) The basis of qualified property shall be the basis |
25 | | used to compute
the depreciation deduction for federal |
26 | | income tax purposes. |
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1 | | (4) If the basis of the property for federal income |
2 | | tax depreciation
purposes is increased after it has been |
3 | | placed in service in a federally
designated Foreign Trade |
4 | | Zone or Sub-Zone located in Illinois by the taxpayer,
the |
5 | | amount of such increase shall be deemed property placed in |
6 | | service on
the date of such increase in basis. |
7 | | (5) The term "placed in service" shall have the same |
8 | | meaning as under
Section 46 of the Internal Revenue Code. |
9 | | (6) If during any taxable year ending on or before |
10 | | December 31, 1996,
any property ceases to be qualified
|
11 | | property in the hands of the taxpayer within 48 months |
12 | | after being placed
in service, or the situs of any |
13 | | qualified property is moved outside
Illinois within 48 |
14 | | months after being placed in service, the tax imposed
|
15 | | under subsections (a) and (b) of this Section for such |
16 | | taxable year shall
be increased. Such increase shall be |
17 | | determined by (i) recomputing the
investment credit which |
18 | | would have been allowed for the year in which
credit for |
19 | | such property was originally allowed by eliminating such
|
20 | | property from such computation, and (ii) subtracting such |
21 | | recomputed credit
from the amount of credit previously |
22 | | allowed. For the purposes of this
paragraph (6), a |
23 | | reduction of the basis of qualified property resulting
|
24 | | from a redetermination of the purchase price shall be |
25 | | deemed a disposition
of qualified property to the extent |
26 | | of such reduction. |
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1 | | (7) Beginning with tax years ending after December 31, |
2 | | 1996, if a
taxpayer qualifies for the credit under this |
3 | | subsection (h) and thereby is
granted a tax abatement and |
4 | | the taxpayer relocates its entire facility in
violation of |
5 | | the explicit terms and length of the contract under |
6 | | Section
18-183 of the Property Tax Code, the tax imposed |
7 | | under subsections
(a) and (b) of this Section shall be |
8 | | increased for the taxable year
in which the taxpayer |
9 | | relocated its facility by an amount equal to the
amount of |
10 | | credit received by the taxpayer under this subsection (h). |
11 | | (h-5) High Impact Business construction constructions jobs |
12 | | credit. For taxable years beginning on or after January 1, |
13 | | 2021, there shall also be allowed a High Impact Business |
14 | | construction jobs credit against the tax imposed under |
15 | | subsections (a) and (b) of this Section as provided in |
16 | | subsections (i) and (j) of Section 5.5 of the Illinois |
17 | | Enterprise Zone Act. |
18 | | The credit or credits may not reduce the taxpayer's |
19 | | liability to less than zero. If the amount of the credit or |
20 | | credits exceeds the taxpayer's liability, the excess may be |
21 | | carried forward and applied against the taxpayer's liability |
22 | | in succeeding calendar years in the manner provided under |
23 | | paragraph (4) of Section 211 of this Act. The credit or credits |
24 | | shall be applied to the earliest year for which there is a tax |
25 | | liability. If there are credits from more than one taxable |
26 | | year that are available to offset a liability, the earlier |
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1 | | credit shall be applied first. |
2 | | For partners, shareholders of Subchapter S corporations, |
3 | | and owners of limited liability companies, if the liability |
4 | | company is treated as a partnership for the purposes of |
5 | | federal and State income taxation, there shall be allowed a |
6 | | credit under this Section to be determined in accordance with |
7 | | the determination of income and distributive share of income |
8 | | under Sections 702 and 704 and Subchapter S of the Internal |
9 | | Revenue Code. |
10 | | The total aggregate amount of credits awarded under the |
11 | | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this |
12 | | amendatory Act of the 101st General Assembly ) shall not exceed |
13 | | $20,000,000 in any State fiscal year . |
14 | | This subsection (h-5) is exempt from the provisions of |
15 | | Section 250. |
16 | | (i) Credit for Personal Property Tax Replacement Income |
17 | | Tax.
For tax years ending prior to December 31, 2003, a credit |
18 | | shall be allowed
against the tax imposed by
subsections (a) |
19 | | and (b) of this Section for the tax imposed by subsections (c)
|
20 | | and (d) of this Section. This credit shall be computed by |
21 | | multiplying the tax
imposed by subsections (c) and (d) of this |
22 | | Section by a fraction, the numerator
of which is base income |
23 | | allocable to Illinois and the denominator of which is
Illinois |
24 | | base income, and further multiplying the product by the tax |
25 | | rate
imposed by subsections (a) and (b) of this Section. |
26 | | Any credit earned on or after December 31, 1986 under
this |
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1 | | subsection which is unused in the year
the credit is computed |
2 | | because it exceeds the tax liability imposed by
subsections |
3 | | (a) and (b) for that year (whether it exceeds the original
|
4 | | liability or the liability as later amended) may be carried |
5 | | forward and
applied to the tax liability imposed by |
6 | | subsections (a) and (b) of the 5
taxable years following the |
7 | | excess credit year, provided that no credit may
be carried |
8 | | forward to any year ending on or
after December 31, 2003. This |
9 | | credit shall be
applied first to the earliest year for which |
10 | | there is a liability. If
there is a credit under this |
11 | | subsection from more than one tax year that is
available to |
12 | | offset a liability the earliest credit arising under this
|
13 | | subsection shall be applied first. |
14 | | If, during any taxable year ending on or after December |
15 | | 31, 1986, the
tax imposed by subsections (c) and (d) of this |
16 | | Section for which a taxpayer
has claimed a credit under this |
17 | | subsection (i) is reduced, the amount of
credit for such tax |
18 | | shall also be reduced. Such reduction shall be
determined by |
19 | | recomputing the credit to take into account the reduced tax
|
20 | | imposed by subsections (c) and (d). If any portion of the
|
21 | | reduced amount of credit has been carried to a different |
22 | | taxable year, an
amended return shall be filed for such |
23 | | taxable year to reduce the amount of
credit claimed. |
24 | | (j) Training expense credit. Beginning with tax years |
25 | | ending on or
after December 31, 1986 and prior to December 31, |
26 | | 2003, a taxpayer shall be
allowed a credit against the
tax |
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1 | | imposed by subsections (a) and (b) under this Section
for all |
2 | | amounts paid or accrued, on behalf of all persons
employed by |
3 | | the taxpayer in Illinois or Illinois residents employed
|
4 | | outside of Illinois by a taxpayer, for educational or |
5 | | vocational training in
semi-technical or technical fields or |
6 | | semi-skilled or skilled fields, which
were deducted from gross |
7 | | income in the computation of taxable income. The
credit |
8 | | against the tax imposed by subsections (a) and (b) shall be |
9 | | 1.6% of
such training expenses. For partners, shareholders of |
10 | | subchapter S
corporations, and owners of limited liability |
11 | | companies, if the liability
company is treated as a |
12 | | partnership for purposes of federal and State income
taxation, |
13 | | there shall be allowed a credit under this subsection (j) to be
|
14 | | determined in accordance with the determination of income and |
15 | | distributive
share of income under Sections 702 and 704 and |
16 | | subchapter S of the Internal
Revenue Code. |
17 | | Any credit allowed under this subsection which is unused |
18 | | in the year
the credit is earned may be carried forward to each |
19 | | of the 5 taxable
years following the year for which the credit |
20 | | is first computed until it is
used. This credit shall be |
21 | | applied first to the earliest year for which
there is a |
22 | | liability. If there is a credit under this subsection from |
23 | | more
than one tax year that is available to offset a liability , |
24 | | the earliest
credit arising under this subsection shall be |
25 | | applied first. No carryforward
credit may be claimed in any |
26 | | tax year ending on or after
December 31, 2003. |
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1 | | (k) Research and development credit. For tax years ending |
2 | | after July 1, 1990 and prior to
December 31, 2003, and |
3 | | beginning again for tax years ending on or after December 31, |
4 | | 2004, and ending prior to January 1, 2027, a taxpayer shall be
|
5 | | allowed a credit against the tax imposed by subsections (a) |
6 | | and (b) of this
Section for increasing research activities in |
7 | | this State. The credit
allowed against the tax imposed by |
8 | | subsections (a) and (b) shall be equal
to 6 1/2% of the |
9 | | qualifying expenditures for increasing research activities
in |
10 | | this State. For partners, shareholders of subchapter S |
11 | | corporations, and
owners of limited liability companies, if |
12 | | the liability company is treated as a
partnership for purposes |
13 | | of federal and State income taxation, there shall be
allowed a |
14 | | credit under this subsection to be determined in accordance |
15 | | with the
determination of income and distributive share of |
16 | | income under Sections 702 and
704 and subchapter S of the |
17 | | Internal Revenue Code. |
18 | | For purposes of this subsection, "qualifying expenditures" |
19 | | means the
qualifying expenditures as defined for the federal |
20 | | credit for increasing
research activities which would be |
21 | | allowable under Section 41 of the
Internal Revenue Code and |
22 | | which are conducted in this State, "qualifying
expenditures |
23 | | for increasing research activities in this State" means the
|
24 | | excess of qualifying expenditures for the taxable year in |
25 | | which incurred
over qualifying expenditures for the base |
26 | | period, "qualifying expenditures
for the base period" means |
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1 | | the average of the qualifying expenditures for
each year in |
2 | | the base period, and "base period" means the 3 taxable years
|
3 | | immediately preceding the taxable year for which the |
4 | | determination is
being made. |
5 | | Any credit in excess of the tax liability for the taxable |
6 | | year
may be carried forward. A taxpayer may elect to have the
|
7 | | unused credit shown on its final completed return carried over |
8 | | as a credit
against the tax liability for the following 5 |
9 | | taxable years or until it has
been fully used, whichever |
10 | | occurs first; provided that no credit earned in a tax year |
11 | | ending prior to December 31, 2003 may be carried forward to any |
12 | | year ending on or after December 31, 2003. |
13 | | If an unused credit is carried forward to a given year from |
14 | | 2 or more
earlier years, that credit arising in the earliest |
15 | | year will be applied
first against the tax liability for the |
16 | | given year. If a tax liability for
the given year still |
17 | | remains, the credit from the next earliest year will
then be |
18 | | applied, and so on, until all credits have been used or no tax
|
19 | | liability for the given year remains. Any remaining unused |
20 | | credit or
credits then will be carried forward to the next |
21 | | following year in which a
tax liability is incurred, except |
22 | | that no credit can be carried forward to
a year which is more |
23 | | than 5 years after the year in which the expense for
which the |
24 | | credit is given was incurred. |
25 | | No inference shall be drawn from Public Act 91-644 this |
26 | | amendatory Act of the 91st General
Assembly in construing this |
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1 | | Section for taxable years beginning before January
1, 1999. |
2 | | It is the intent of the General Assembly that the research |
3 | | and development credit under this subsection (k) shall apply |
4 | | continuously for all tax years ending on or after December 31, |
5 | | 2004 and ending prior to January 1, 2027, including, but not |
6 | | limited to, the period beginning on January 1, 2016 and ending |
7 | | on July 6, 2017 ( the effective date of Public Act 100-22) this |
8 | | amendatory Act of the 100th General Assembly . All actions |
9 | | taken in reliance on the continuation of the credit under this |
10 | | subsection (k) by any taxpayer are hereby validated. |
11 | | (l) Environmental Remediation Tax Credit. |
12 | | (i) For tax years ending after December 31, 1997 and |
13 | | on or before
December 31, 2001, a taxpayer shall be |
14 | | allowed a credit against the tax
imposed by subsections |
15 | | (a) and (b) of this Section for certain amounts paid
for |
16 | | unreimbursed eligible remediation costs, as specified in |
17 | | this subsection.
For purposes of this Section, |
18 | | "unreimbursed eligible remediation costs" means
costs |
19 | | approved by the Illinois Environmental Protection Agency |
20 | | ("Agency") under
Section 58.14 of the Environmental |
21 | | Protection Act that were paid in performing
environmental |
22 | | remediation at a site for which a No Further Remediation |
23 | | Letter
was issued by the Agency and recorded under Section |
24 | | 58.10 of the Environmental
Protection Act. The credit must |
25 | | be claimed for the taxable year in which
Agency approval |
26 | | of the eligible remediation costs is granted. The credit |
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1 | | is
not available to any taxpayer if the taxpayer or any |
2 | | related party caused or
contributed to, in any material |
3 | | respect, a release of regulated substances on,
in, or |
4 | | under the site that was identified and addressed by the |
5 | | remedial
action pursuant to the Site Remediation Program |
6 | | of the Environmental Protection
Act. After the Pollution |
7 | | Control Board rules are adopted pursuant to the
Illinois |
8 | | Administrative Procedure Act for the administration and |
9 | | enforcement of
Section 58.9 of the Environmental |
10 | | Protection Act, determinations as to credit
availability |
11 | | for purposes of this Section shall be made consistent with |
12 | | those
rules. For purposes of this Section, "taxpayer" |
13 | | includes a person whose tax
attributes the taxpayer has |
14 | | succeeded to under Section 381 of the Internal
Revenue |
15 | | Code and "related party" includes the persons disallowed a |
16 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of |
17 | | Section 267 of the Internal
Revenue Code by virtue of |
18 | | being a related taxpayer, as well as any of its
partners. |
19 | | The credit allowed against the tax imposed by subsections |
20 | | (a) and
(b) shall be equal to 25% of the unreimbursed |
21 | | eligible remediation costs in
excess of $100,000 per site, |
22 | | except that the $100,000 threshold shall not apply
to any |
23 | | site contained in an enterprise zone as determined by the |
24 | | Department of
Commerce and Community Affairs (now |
25 | | Department of Commerce and Economic Opportunity). The |
26 | | total credit allowed shall not exceed
$40,000 per year |
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1 | | with a maximum total of $150,000 per site. For partners |
2 | | and
shareholders of subchapter S corporations, there shall |
3 | | be allowed a credit
under this subsection to be determined |
4 | | in accordance with the determination of
income and |
5 | | distributive share of income under Sections 702 and 704 |
6 | | and
subchapter S of the Internal Revenue Code. |
7 | | (ii) A credit allowed under this subsection that is |
8 | | unused in the year
the credit is earned may be carried |
9 | | forward to each of the 5 taxable years
following the year |
10 | | for which the credit is first earned until it is used.
The |
11 | | term "unused credit" does not include any amounts of |
12 | | unreimbursed eligible
remediation costs in excess of the |
13 | | maximum credit per site authorized under
paragraph (i). |
14 | | This credit shall be applied first to the earliest year
|
15 | | for which there is a liability. If there is a credit under |
16 | | this subsection
from more than one tax year that is |
17 | | available to offset a liability, the
earliest credit |
18 | | arising under this subsection shall be applied first. A
|
19 | | credit allowed under this subsection may be sold to a |
20 | | buyer as part of a sale
of all or part of the remediation |
21 | | site for which the credit was granted. The
purchaser of a |
22 | | remediation site and the tax credit shall succeed to the |
23 | | unused
credit and remaining carry-forward period of the |
24 | | seller. To perfect the
transfer, the assignor shall record |
25 | | the transfer in the chain of title for the
site and provide |
26 | | written notice to the Director of the Illinois Department |
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1 | | of
Revenue of the assignor's intent to sell the |
2 | | remediation site and the amount of
the tax credit to be |
3 | | transferred as a portion of the sale. In no event may a
|
4 | | credit be transferred to any taxpayer if the taxpayer or a |
5 | | related party would
not be eligible under the provisions |
6 | | of subsection (i). |
7 | | (iii) For purposes of this Section, the term "site" |
8 | | shall have the same
meaning as under Section 58.2 of the |
9 | | Environmental Protection Act. |
10 | | (m) Education expense credit. Beginning with tax years |
11 | | ending after
December 31, 1999, a taxpayer who
is the |
12 | | custodian of one or more qualifying pupils shall be allowed a |
13 | | credit
against the tax imposed by subsections (a) and (b) of |
14 | | this Section for
qualified education expenses incurred on |
15 | | behalf of the qualifying pupils.
The credit shall be equal to |
16 | | 25% of qualified education expenses, but in no
event may the |
17 | | total credit under this subsection claimed by a
family that is |
18 | | the
custodian of qualifying pupils exceed (i) $500 for tax |
19 | | years ending prior to December 31, 2017, and (ii) $750 for tax |
20 | | years ending on or after December 31, 2017. In no event shall a |
21 | | credit under
this subsection reduce the taxpayer's liability |
22 | | under this Act to less than
zero. Notwithstanding any other |
23 | | provision of law, for taxable years beginning on or after |
24 | | January 1, 2017, no taxpayer may claim a credit under this |
25 | | subsection (m) if the taxpayer's adjusted gross income for the |
26 | | taxable year exceeds (i) $500,000, in the case of spouses |
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1 | | filing a joint federal tax return or (ii) $250,000, in the case |
2 | | of all other taxpayers. This subsection is exempt from the |
3 | | provisions of Section 250 of this
Act. |
4 | | For purposes of this subsection: |
5 | | "Qualifying pupils" means individuals who (i) are |
6 | | residents of the State of
Illinois, (ii) are under the age of |
7 | | 21 at the close of the school year for
which a credit is |
8 | | sought, and (iii) during the school year for which a credit
is |
9 | | sought were full-time pupils enrolled in a kindergarten |
10 | | through twelfth
grade education program at any school, as |
11 | | defined in this subsection. |
12 | | "Qualified education expense" means the amount incurred
on |
13 | | behalf of a qualifying pupil in excess of $250 for tuition, |
14 | | book fees, and
lab fees at the school in which the pupil is |
15 | | enrolled during the regular school
year. |
16 | | "School" means any public or nonpublic elementary or |
17 | | secondary school in
Illinois that is in compliance with Title |
18 | | VI of the Civil Rights Act of 1964
and attendance at which |
19 | | satisfies the requirements of Section 26-1 of the
School Code, |
20 | | except that nothing shall be construed to require a child to
|
21 | | attend any particular public or nonpublic school to qualify |
22 | | for the credit
under this Section. |
23 | | "Custodian" means, with respect to qualifying pupils, an |
24 | | Illinois resident
who is a parent, the parents, a legal |
25 | | guardian, or the legal guardians of the
qualifying pupils. |
26 | | (n) River Edge Redevelopment Zone site remediation tax |
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1 | | credit.
|
2 | | (i) For tax years ending on or after December 31, |
3 | | 2006, a taxpayer shall be allowed a credit against the tax |
4 | | imposed by subsections (a) and (b) of this Section for |
5 | | certain amounts paid for unreimbursed eligible remediation |
6 | | costs, as specified in this subsection. For purposes of |
7 | | this Section, "unreimbursed eligible remediation costs" |
8 | | means costs approved by the Illinois Environmental |
9 | | Protection Agency ("Agency") under Section 58.14a of the |
10 | | Environmental Protection Act that were paid in performing |
11 | | environmental remediation at a site within a River Edge |
12 | | Redevelopment Zone for which a No Further Remediation |
13 | | Letter was issued by the Agency and recorded under Section |
14 | | 58.10 of the Environmental Protection Act. The credit must |
15 | | be claimed for the taxable year in which Agency approval |
16 | | of the eligible remediation costs is granted. The credit |
17 | | is not available to any taxpayer if the taxpayer or any |
18 | | related party caused or contributed to, in any material |
19 | | respect, a release of regulated substances on, in, or |
20 | | under the site that was identified and addressed by the |
21 | | remedial action pursuant to the Site Remediation Program |
22 | | of the Environmental Protection Act. Determinations as to |
23 | | credit availability for purposes of this Section shall be |
24 | | made consistent with rules adopted by the Pollution |
25 | | Control Board pursuant to the Illinois Administrative |
26 | | Procedure Act for the administration and enforcement of |
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1 | | Section 58.9 of the Environmental Protection Act. For |
2 | | purposes of this Section, "taxpayer" includes a person |
3 | | whose tax attributes the taxpayer has succeeded to under |
4 | | Section 381 of the Internal Revenue Code and "related |
5 | | party" includes the persons disallowed a deduction for |
6 | | losses by paragraphs (b), (c), and (f)(1) of Section 267 |
7 | | of the Internal Revenue Code by virtue of being a related |
8 | | taxpayer, as well as any of its partners. The credit |
9 | | allowed against the tax imposed by subsections (a) and (b) |
10 | | shall be equal to 25% of the unreimbursed eligible |
11 | | remediation costs in excess of $100,000 per site. |
12 | | (ii) A credit allowed under this subsection that is |
13 | | unused in the year the credit is earned may be carried |
14 | | forward to each of the 5 taxable years following the year |
15 | | for which the credit is first earned until it is used. This |
16 | | credit shall be applied first to the earliest year for |
17 | | which there is a liability. If there is a credit under this |
18 | | subsection from more than one tax year that is available |
19 | | to offset a liability, the earliest credit arising under |
20 | | this subsection shall be applied first. A credit allowed |
21 | | under this subsection may be sold to a buyer as part of a |
22 | | sale of all or part of the remediation site for which the |
23 | | credit was granted. The purchaser of a remediation site |
24 | | and the tax credit shall succeed to the unused credit and |
25 | | remaining carry-forward period of the seller. To perfect |
26 | | the transfer, the assignor shall record the transfer in |
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1 | | the chain of title for the site and provide written notice |
2 | | to the Director of the Illinois Department of Revenue of |
3 | | the assignor's intent to sell the remediation site and the |
4 | | amount of the tax credit to be transferred as a portion of |
5 | | the sale. In no event may a credit be transferred to any |
6 | | taxpayer if the taxpayer or a related party would not be |
7 | | eligible under the provisions of subsection (i). |
8 | | (iii) For purposes of this Section, the term "site" |
9 | | shall have the same meaning as under Section 58.2 of the |
10 | | Environmental Protection Act. |
11 | | (o) For each of taxable years during the Compassionate Use |
12 | | of Medical Cannabis Program, a surcharge is imposed on all |
13 | | taxpayers on income arising from the sale or exchange of |
14 | | capital assets, depreciable business property, real property |
15 | | used in the trade or business, and Section 197 intangibles of |
16 | | an organization registrant under the Compassionate Use of |
17 | | Medical Cannabis Program Act. The amount of the surcharge is |
18 | | equal to the amount of federal income tax liability for the |
19 | | taxable year attributable to those sales and exchanges. The |
20 | | surcharge imposed does not apply if: |
21 | | (1) the medical cannabis cultivation center |
22 | | registration, medical cannabis dispensary registration, or |
23 | | the property of a registration is transferred as a result |
24 | | of any of the following: |
25 | | (A) bankruptcy, a receivership, or a debt |
26 | | adjustment initiated by or against the initial |
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1 | | registration or the substantial owners of the initial |
2 | | registration; |
3 | | (B) cancellation, revocation, or termination of |
4 | | any registration by the Illinois Department of Public |
5 | | Health; |
6 | | (C) a determination by the Illinois Department of |
7 | | Public Health that transfer of the registration is in |
8 | | the best interests of Illinois qualifying patients as |
9 | | defined by the Compassionate Use of Medical Cannabis |
10 | | Program Act; |
11 | | (D) the death of an owner of the equity interest in |
12 | | a registrant; |
13 | | (E) the acquisition of a controlling interest in |
14 | | the stock or substantially all of the assets of a |
15 | | publicly traded company; |
16 | | (F) a transfer by a parent company to a wholly |
17 | | owned subsidiary; or |
18 | | (G) the transfer or sale to or by one person to |
19 | | another person where both persons were initial owners |
20 | | of the registration when the registration was issued; |
21 | | or |
22 | | (2) the cannabis cultivation center registration, |
23 | | medical cannabis dispensary registration, or the |
24 | | controlling interest in a registrant's property is |
25 | | transferred in a transaction to lineal descendants in |
26 | | which no gain or loss is recognized or as a result of a |
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1 | | transaction in accordance with Section 351 of the Internal |
2 | | Revenue Code in which no gain or loss is recognized. |
3 | | (Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31, |
4 | | eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; |
5 | | revised 11-18-20.) |
6 | | (Text of Section with the changes made by P.A. 101-8, |
7 | | which did not take effect (see Section 99 of P.A. 101-8))
|
8 | | Sec. 201. Tax imposed. |
9 | | (a) In general. A tax measured by net income is hereby |
10 | | imposed on every
individual, corporation, trust and estate for |
11 | | each taxable year ending
after July 31, 1969 on the privilege |
12 | | of earning or receiving income in or
as a resident of this |
13 | | State. Such tax shall be in addition to all other
occupation or |
14 | | privilege taxes imposed by this State or by any municipal
|
15 | | corporation or political subdivision thereof. |
16 | | (b) Rates. The tax imposed by subsection (a) of this |
17 | | Section shall be
determined as follows, except as adjusted by |
18 | | subsection (d-1): |
19 | | (1) In the case of an individual, trust or estate, for |
20 | | taxable years
ending prior to July 1, 1989, an amount |
21 | | equal to 2 1/2% of the taxpayer's
net income for the |
22 | | taxable year. |
23 | | (2) In the case of an individual, trust or estate, for |
24 | | taxable years
beginning prior to July 1, 1989 and ending |
25 | | after June 30, 1989, an amount
equal to the sum of (i) 2 |
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1 | | 1/2% of the taxpayer's net income for the period
prior to |
2 | | July 1, 1989, as calculated under Section 202.3, and (ii) |
3 | | 3% of the
taxpayer's net income for the period after June |
4 | | 30, 1989, as calculated
under Section 202.3. |
5 | | (3) In the case of an individual, trust or estate, for |
6 | | taxable years
beginning after June 30, 1989, and ending |
7 | | prior to January 1, 2011, an amount equal to 3% of the |
8 | | taxpayer's net
income for the taxable year. |
9 | | (4) In the case of an individual, trust, or estate, |
10 | | for taxable years beginning prior to January 1, 2011, and |
11 | | ending after December 31, 2010, an amount equal to the sum |
12 | | of (i) 3% of the taxpayer's net income for the period prior |
13 | | to January 1, 2011, as calculated under Section 202.5, and |
14 | | (ii) 5% of the taxpayer's net income for the period after |
15 | | December 31, 2010, as calculated under Section 202.5. |
16 | | (5) In the case of an individual, trust, or estate, |
17 | | for taxable years beginning on or after January 1, 2011, |
18 | | and ending prior to January 1, 2015, an amount equal to 5% |
19 | | of the taxpayer's net income for the taxable year. |
20 | | (5.1) In the case of an individual, trust, or estate, |
21 | | for taxable years beginning prior to January 1, 2015, and |
22 | | ending after December 31, 2014, an amount equal to the sum |
23 | | of (i) 5% of the taxpayer's net income for the period prior |
24 | | to January 1, 2015, as calculated under Section 202.5, and |
25 | | (ii) 3.75% of the taxpayer's net income for the period |
26 | | after December 31, 2014, as calculated under Section |
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1 | | 202.5. |
2 | | (5.2) In the case of an individual, trust, or estate, |
3 | | for taxable years beginning on or after January 1, 2015, |
4 | | and ending prior to July 1, 2017, an amount equal to 3.75% |
5 | | of the taxpayer's net income for the taxable year. |
6 | | (5.3) In the case of an individual, trust, or estate, |
7 | | for taxable years beginning prior to July 1, 2017, and |
8 | | ending after June 30, 2017, an amount equal to the sum of |
9 | | (i) 3.75% of the taxpayer's net income for the period |
10 | | prior to July 1, 2017, as calculated under Section 202.5, |
11 | | and (ii) 4.95% of the taxpayer's net income for the period |
12 | | after June 30, 2017, as calculated under Section 202.5. |
13 | | (5.4) In the case of an individual, trust, or estate, |
14 | | for taxable years beginning on or after July 1, 2017 and |
15 | | beginning prior to January 1, 2021, an amount equal to |
16 | | 4.95% of the taxpayer's net income for the taxable year. |
17 | | (5.5) In the case of an individual, trust, or estate, |
18 | | for taxable years beginning on or after January 1, 2021, |
19 | | an amount calculated under the rate structure set forth in |
20 | | Section 201.1. |
21 | | (6) In the case of a corporation, for taxable years
|
22 | | ending prior to July 1, 1989, an amount equal to 4% of the
|
23 | | taxpayer's net income for the taxable year. |
24 | | (7) In the case of a corporation, for taxable years |
25 | | beginning prior to
July 1, 1989 and ending after June 30, |
26 | | 1989, an amount equal to the sum of
(i) 4% of the |
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1 | | taxpayer's net income for the period prior to July 1, |
2 | | 1989,
as calculated under Section 202.3, and (ii) 4.8% of |
3 | | the taxpayer's net
income for the period after June 30, |
4 | | 1989, as calculated under Section
202.3. |
5 | | (8) In the case of a corporation, for taxable years |
6 | | beginning after
June 30, 1989, and ending prior to January |
7 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net |
8 | | income for the
taxable year. |
9 | | (9) In the case of a corporation, for taxable years |
10 | | beginning prior to January 1, 2011, and ending after |
11 | | December 31, 2010, an amount equal to the sum of (i) 4.8% |
12 | | of the taxpayer's net income for the period prior to |
13 | | January 1, 2011, as calculated under Section 202.5, and |
14 | | (ii) 7% of the taxpayer's net income for the period after |
15 | | December 31, 2010, as calculated under Section 202.5. |
16 | | (10) In the case of a corporation, for taxable years |
17 | | beginning on or after January 1, 2011, and ending prior to |
18 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
19 | | net income for the taxable year. |
20 | | (11) In the case of a corporation, for taxable years |
21 | | beginning prior to January 1, 2015, and ending after |
22 | | December 31, 2014, an amount equal to the sum of (i) 7% of |
23 | | the taxpayer's net income for the period prior to January |
24 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% |
25 | | of the taxpayer's net income for the period after December |
26 | | 31, 2014, as calculated under Section 202.5. |
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1 | | (12) In the case of a corporation, for taxable years |
2 | | beginning on or after January 1, 2015, and ending prior to |
3 | | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
4 | | net income for the taxable year. |
5 | | (13) In the case of a corporation, for taxable years |
6 | | beginning prior to July 1, 2017, and ending after June 30, |
7 | | 2017, an amount equal to the sum of (i) 5.25% of the |
8 | | taxpayer's net income for the period prior to July 1, |
9 | | 2017, as calculated under Section 202.5, and (ii) 7% of |
10 | | the taxpayer's net income for the period after June 30, |
11 | | 2017, as calculated under Section 202.5. |
12 | | (14) In the case of a corporation, for taxable years |
13 | | beginning on or after July 1, 2017 and beginning prior to |
14 | | January 1, 2021, an amount equal to 7% of the taxpayer's |
15 | | net income for the taxable year. |
16 | | (15) In the case of a corporation, for taxable years |
17 | | beginning on or after January 1, 2021, an amount equal to |
18 | | 7.99% of the taxpayer's net income for the taxable year. |
19 | | The rates under this subsection (b) are subject to the |
20 | | provisions of Section 201.5. |
21 | | (b-5) Surcharge; sale or exchange of assets, properties, |
22 | | and intangibles of organization gaming licensees. For each of |
23 | | taxable years 2019 through 2027, a surcharge is imposed on all |
24 | | taxpayers on income arising from the sale or exchange of |
25 | | capital assets, depreciable business property, real property |
26 | | used in the trade or business, and Section 197 intangibles (i) |
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1 | | of an organization licensee under the Illinois Horse Racing |
2 | | Act of 1975 and (ii) of an organization gaming licensee under |
3 | | the Illinois Gambling Act. The amount of the surcharge is |
4 | | equal to the amount of federal income tax liability for the |
5 | | taxable year attributable to those sales and exchanges. The |
6 | | surcharge imposed shall not apply if: |
7 | | (1) the organization gaming license, organization |
8 | | license, or racetrack property is transferred as a result |
9 | | of any of the following: |
10 | | (A) bankruptcy, a receivership, or a debt |
11 | | adjustment initiated by or against the initial |
12 | | licensee or the substantial owners of the initial |
13 | | licensee; |
14 | | (B) cancellation, revocation, or termination of |
15 | | any such license by the Illinois Gaming Board or the |
16 | | Illinois Racing Board; |
17 | | (C) a determination by the Illinois Gaming Board |
18 | | that transfer of the license is in the best interests |
19 | | of Illinois gaming; |
20 | | (D) the death of an owner of the equity interest in |
21 | | a licensee; |
22 | | (E) the acquisition of a controlling interest in |
23 | | the stock or substantially all of the assets of a |
24 | | publicly traded company; |
25 | | (F) a transfer by a parent company to a wholly |
26 | | owned subsidiary; or |
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1 | | (G) the transfer or sale to or by one person to |
2 | | another person where both persons were initial owners |
3 | | of the license when the license was issued; or |
4 | | (2) the controlling interest in the organization |
5 | | gaming license, organization license, or racetrack |
6 | | property is transferred in a transaction to lineal |
7 | | descendants in which no gain or loss is recognized or as a |
8 | | result of a transaction in accordance with Section 351 of |
9 | | the Internal Revenue Code in which no gain or loss is |
10 | | recognized; or |
11 | | (3) live horse racing was not conducted in 2010 at a |
12 | | racetrack located within 3 miles of the Mississippi River |
13 | | under a license issued pursuant to the Illinois Horse |
14 | | Racing Act of 1975. |
15 | | The transfer of an organization gaming license, |
16 | | organization license, or racetrack property by a person other |
17 | | than the initial licensee to receive the organization gaming |
18 | | license is not subject to a surcharge. The Department shall |
19 | | adopt rules necessary to implement and administer this |
20 | | subsection. |
21 | | (c) Personal Property Tax Replacement Income Tax.
|
22 | | Beginning on July 1, 1979 and thereafter, in addition to such |
23 | | income
tax, there is also hereby imposed the Personal Property |
24 | | Tax Replacement
Income Tax measured by net income on every |
25 | | corporation (including Subchapter
S corporations), partnership |
26 | | and trust, for each taxable year ending after
June 30, 1979. |
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1 | | Such taxes are imposed on the privilege of earning or
|
2 | | receiving income in or as a resident of this State. The |
3 | | Personal Property
Tax Replacement Income Tax shall be in |
4 | | addition to the income tax imposed
by subsections (a) and (b) |
5 | | of this Section and in addition to all other
occupation or |
6 | | privilege taxes imposed by this State or by any municipal
|
7 | | corporation or political subdivision thereof. |
8 | | (d) Additional Personal Property Tax Replacement Income |
9 | | Tax Rates.
The personal property tax replacement income tax |
10 | | imposed by this subsection
and subsection (c) of this Section |
11 | | in the case of a corporation, other
than a Subchapter S |
12 | | corporation and except as adjusted by subsection (d-1),
shall |
13 | | be an additional amount equal to
2.85% of such taxpayer's net |
14 | | income for the taxable year, except that
beginning on January |
15 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this |
16 | | subsection shall be reduced to 2.5%, and in the case of a
|
17 | | partnership, trust or a Subchapter S corporation shall be an |
18 | | additional
amount equal to 1.5% of such taxpayer's net income |
19 | | for the taxable year. |
20 | | (d-1) Rate reduction for certain foreign insurers. In the |
21 | | case of a
foreign insurer, as defined by Section 35A-5 of the |
22 | | Illinois Insurance Code,
whose state or country of domicile |
23 | | imposes on insurers domiciled in Illinois
a retaliatory tax |
24 | | (excluding any insurer
whose premiums from reinsurance assumed |
25 | | are 50% or more of its total insurance
premiums as determined |
26 | | under paragraph (2) of subsection (b) of Section 304,
except |
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1 | | that for purposes of this determination premiums from |
2 | | reinsurance do
not include premiums from inter-affiliate |
3 | | reinsurance arrangements),
beginning with taxable years ending |
4 | | on or after December 31, 1999,
the sum of
the rates of tax |
5 | | imposed by subsections (b) and (d) shall be reduced (but not
|
6 | | increased) to the rate at which the total amount of tax imposed |
7 | | under this Act,
net of all credits allowed under this Act, |
8 | | shall equal (i) the total amount of
tax that would be imposed |
9 | | on the foreign insurer's net income allocable to
Illinois for |
10 | | the taxable year by such foreign insurer's state or country of
|
11 | | domicile if that net income were subject to all income taxes |
12 | | and taxes
measured by net income imposed by such foreign |
13 | | insurer's state or country of
domicile, net of all credits |
14 | | allowed or (ii) a rate of zero if no such tax is
imposed on |
15 | | such income by the foreign insurer's state of domicile.
For |
16 | | the purposes of this subsection (d-1), an inter-affiliate |
17 | | includes a
mutual insurer under common management. |
18 | | (1) For the purposes of subsection (d-1), in no event |
19 | | shall the sum of the
rates of tax imposed by subsections |
20 | | (b) and (d) be reduced below the rate at
which the sum of: |
21 | | (A) the total amount of tax imposed on such |
22 | | foreign insurer under
this Act for a taxable year, net |
23 | | of all credits allowed under this Act, plus |
24 | | (B) the privilege tax imposed by Section 409 of |
25 | | the Illinois Insurance
Code, the fire insurance |
26 | | company tax imposed by Section 12 of the Fire
|
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1 | | Investigation Act, and the fire department taxes |
2 | | imposed under Section 11-10-1
of the Illinois |
3 | | Municipal Code, |
4 | | equals 1.25% for taxable years ending prior to December |
5 | | 31, 2003, or
1.75% for taxable years ending on or after |
6 | | December 31, 2003, of the net
taxable premiums written for |
7 | | the taxable year,
as described by subsection (1) of |
8 | | Section 409 of the Illinois Insurance Code.
This paragraph |
9 | | will in no event increase the rates imposed under |
10 | | subsections
(b) and (d). |
11 | | (2) Any reduction in the rates of tax imposed by this |
12 | | subsection shall be
applied first against the rates |
13 | | imposed by subsection (b) and only after the
tax imposed |
14 | | by subsection (a) net of all credits allowed under this |
15 | | Section
other than the credit allowed under subsection (i) |
16 | | has been reduced to zero,
against the rates imposed by |
17 | | subsection (d). |
18 | | This subsection (d-1) is exempt from the provisions of |
19 | | Section 250. |
20 | | (e) Investment credit. A taxpayer shall be allowed a |
21 | | credit
against the Personal Property Tax Replacement Income |
22 | | Tax for
investment in qualified property. |
23 | | (1) A taxpayer shall be allowed a credit equal to .5% |
24 | | of
the basis of qualified property placed in service |
25 | | during the taxable year,
provided such property is placed |
26 | | in service on or after
July 1, 1984. There shall be allowed |
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1 | | an additional credit equal
to .5% of the basis of |
2 | | qualified property placed in service during the
taxable |
3 | | year, provided such property is placed in service on or
|
4 | | after July 1, 1986, and the taxpayer's base employment
|
5 | | within Illinois has increased by 1% or more over the |
6 | | preceding year as
determined by the taxpayer's employment |
7 | | records filed with the
Illinois Department of Employment |
8 | | Security. Taxpayers who are new to
Illinois shall be |
9 | | deemed to have met the 1% growth in base employment for
the |
10 | | first year in which they file employment records with the |
11 | | Illinois
Department of Employment Security. The provisions |
12 | | added to this Section by
Public Act 85-1200 (and restored |
13 | | by Public Act 87-895) shall be
construed as declaratory of |
14 | | existing law and not as a new enactment. If,
in any year, |
15 | | the increase in base employment within Illinois over the
|
16 | | preceding year is less than 1%, the additional credit |
17 | | shall be limited to that
percentage times a fraction, the |
18 | | numerator of which is .5% and the denominator
of which is |
19 | | 1%, but shall not exceed .5%. The investment credit shall |
20 | | not be
allowed to the extent that it would reduce a |
21 | | taxpayer's liability in any tax
year below zero, nor may |
22 | | any credit for qualified property be allowed for any
year |
23 | | other than the year in which the property was placed in |
24 | | service in
Illinois. For tax years ending on or after |
25 | | December 31, 1987, and on or
before December 31, 1988, the |
26 | | credit shall be allowed for the tax year in
which the |
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1 | | property is placed in service, or, if the amount of the |
2 | | credit
exceeds the tax liability for that year, whether it |
3 | | exceeds the original
liability or the liability as later |
4 | | amended, such excess may be carried
forward and applied to |
5 | | the tax liability of the 5 taxable years following
the |
6 | | excess credit years if the taxpayer (i) makes investments |
7 | | which cause
the creation of a minimum of 2,000 full-time |
8 | | equivalent jobs in Illinois,
(ii) is located in an |
9 | | enterprise zone established pursuant to the Illinois
|
10 | | Enterprise Zone Act and (iii) is certified by the |
11 | | Department of Commerce
and Community Affairs (now |
12 | | Department of Commerce and Economic Opportunity) as |
13 | | complying with the requirements specified in
clause (i) |
14 | | and (ii) by July 1, 1986. The Department of Commerce and
|
15 | | Community Affairs (now Department of Commerce and Economic |
16 | | Opportunity) shall notify the Department of Revenue of all |
17 | | such
certifications immediately. For tax years ending |
18 | | after December 31, 1988,
the credit shall be allowed for |
19 | | the tax year in which the property is
placed in service, |
20 | | or, if the amount of the credit exceeds the tax
liability |
21 | | for that year, whether it exceeds the original liability |
22 | | or the
liability as later amended, such excess may be |
23 | | carried forward and applied
to the tax liability of the 5 |
24 | | taxable years following the excess credit
years. The |
25 | | credit shall be applied to the earliest year for which |
26 | | there is
a liability. If there is credit from more than one |
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1 | | tax year that is
available to offset a liability, earlier |
2 | | credit shall be applied first. |
3 | | (2) The term "qualified property" means property |
4 | | which: |
5 | | (A) is tangible, whether new or used, including |
6 | | buildings and structural
components of buildings and |
7 | | signs that are real property, but not including
land |
8 | | or improvements to real property that are not a |
9 | | structural component of a
building such as |
10 | | landscaping, sewer lines, local access roads, fencing, |
11 | | parking
lots, and other appurtenances; |
12 | | (B) is depreciable pursuant to Section 167 of the |
13 | | Internal Revenue Code,
except that "3-year property" |
14 | | as defined in Section 168(c)(2)(A) of that
Code is not |
15 | | eligible for the credit provided by this subsection |
16 | | (e); |
17 | | (C) is acquired by purchase as defined in Section |
18 | | 179(d) of
the Internal Revenue Code; |
19 | | (D) is used in Illinois by a taxpayer who is |
20 | | primarily engaged in
manufacturing, or in mining coal |
21 | | or fluorite, or in retailing, or was placed in service |
22 | | on or after July 1, 2006 in a River Edge Redevelopment |
23 | | Zone established pursuant to the River Edge |
24 | | Redevelopment Zone Act; and |
25 | | (E) has not previously been used in Illinois in |
26 | | such a manner and by
such a person as would qualify for |
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1 | | the credit provided by this subsection
(e) or |
2 | | subsection (f). |
3 | | (3) For purposes of this subsection (e), |
4 | | "manufacturing" means
the material staging and production |
5 | | of tangible personal property by
procedures commonly |
6 | | regarded as manufacturing, processing, fabrication, or
|
7 | | assembling which changes some existing material into new |
8 | | shapes, new
qualities, or new combinations. For purposes |
9 | | of this subsection
(e) the term "mining" shall have the |
10 | | same meaning as the term "mining" in
Section 613(c) of the |
11 | | Internal Revenue Code. For purposes of this subsection
|
12 | | (e), the term "retailing" means the sale of tangible |
13 | | personal property for use or consumption and not for |
14 | | resale, or
services rendered in conjunction with the sale |
15 | | of tangible personal property for use or consumption and |
16 | | not for resale. For purposes of this subsection (e), |
17 | | "tangible personal property" has the same meaning as when |
18 | | that term is used in the Retailers' Occupation Tax Act, |
19 | | and, for taxable years ending after December 31, 2008, |
20 | | does not include the generation, transmission, or |
21 | | distribution of electricity. |
22 | | (4) The basis of qualified property shall be the basis
|
23 | | used to compute the depreciation deduction for federal |
24 | | income tax purposes. |
25 | | (5) If the basis of the property for federal income |
26 | | tax depreciation
purposes is increased after it has been |
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1 | | placed in service in Illinois by
the taxpayer, the amount |
2 | | of such increase shall be deemed property placed
in |
3 | | service on the date of such increase in basis. |
4 | | (6) The term "placed in service" shall have the same
|
5 | | meaning as under Section 46 of the Internal Revenue Code. |
6 | | (7) If during any taxable year, any property ceases to
|
7 | | be qualified property in the hands of the taxpayer within |
8 | | 48 months after
being placed in service, or the situs of |
9 | | any qualified property is
moved outside Illinois within 48 |
10 | | months after being placed in service, the
Personal |
11 | | Property Tax Replacement Income Tax for such taxable year |
12 | | shall be
increased. Such increase shall be determined by |
13 | | (i) recomputing the
investment credit which would have |
14 | | been allowed for the year in which
credit for such |
15 | | property was originally allowed by eliminating such
|
16 | | property from such computation and, (ii) subtracting such |
17 | | recomputed credit
from the amount of credit previously |
18 | | allowed. For the purposes of this
paragraph (7), a |
19 | | reduction of the basis of qualified property resulting
|
20 | | from a redetermination of the purchase price shall be |
21 | | deemed a disposition
of qualified property to the extent |
22 | | of such reduction. |
23 | | (8) Unless the investment credit is extended by law, |
24 | | the
basis of qualified property shall not include costs |
25 | | incurred after
December 31, 2018, except for costs |
26 | | incurred pursuant to a binding
contract entered into on or |
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1 | | before December 31, 2018. |
2 | | (9) Each taxable year ending before December 31, 2000, |
3 | | a partnership may
elect to pass through to its
partners |
4 | | the credits to which the partnership is entitled under |
5 | | this subsection
(e) for the taxable year. A partner may |
6 | | use the credit allocated to him or her
under this |
7 | | paragraph only against the tax imposed in subsections (c) |
8 | | and (d) of
this Section. If the partnership makes that |
9 | | election, those credits shall be
allocated among the |
10 | | partners in the partnership in accordance with the rules
|
11 | | set forth in Section 704(b) of the Internal Revenue Code, |
12 | | and the rules
promulgated under that Section, and the |
13 | | allocated amount of the credits shall
be allowed to the |
14 | | partners for that taxable year. The partnership shall make
|
15 | | this election on its Personal Property Tax Replacement |
16 | | Income Tax return for
that taxable year. The election to |
17 | | pass through the credits shall be
irrevocable. |
18 | | For taxable years ending on or after December 31, |
19 | | 2000, a
partner that qualifies its
partnership for a |
20 | | subtraction under subparagraph (I) of paragraph (2) of
|
21 | | subsection (d) of Section 203 or a shareholder that |
22 | | qualifies a Subchapter S
corporation for a subtraction |
23 | | under subparagraph (S) of paragraph (2) of
subsection (b) |
24 | | of Section 203 shall be allowed a credit under this |
25 | | subsection
(e) equal to its share of the credit earned |
26 | | under this subsection (e) during
the taxable year by the |
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1 | | partnership or Subchapter S corporation, determined in
|
2 | | accordance with the determination of income and |
3 | | distributive share of
income under Sections 702 and 704 |
4 | | and Subchapter S of the Internal Revenue
Code. This |
5 | | paragraph is exempt from the provisions of Section 250. |
6 | | (f) Investment credit; Enterprise Zone; River Edge |
7 | | Redevelopment Zone ; Clean Energy Empowerment Zone . |
8 | | (1) A taxpayer shall be allowed a credit against the |
9 | | tax imposed
by subsections (a) and (b) of this Section for |
10 | | investment in qualified
property which is placed in |
11 | | service in an Enterprise Zone created
pursuant to the |
12 | | Illinois Enterprise Zone Act or, for property placed in |
13 | | service on or after July 1, 2006, a River Edge |
14 | | Redevelopment Zone established pursuant to the River Edge |
15 | | Redevelopment Zone Act , or for investment in renewable |
16 | | energy enterprises located in Clean Energy Empowerment |
17 | | Zones created pursuant to the Energy Community |
18 | | Reinvestment Act . For partners, shareholders
of Subchapter |
19 | | S corporations, and owners of limited liability companies,
|
20 | | if the liability company is treated as a partnership for |
21 | | purposes of
federal and State income taxation, there shall |
22 | | be allowed a credit under
this subsection (f) to be |
23 | | determined in accordance with the determination
of income |
24 | | and distributive share of income under Sections 702 and |
25 | | 704 and
Subchapter S of the Internal Revenue Code. The |
26 | | credit shall be .5% of the
basis for such property. The |
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1 | | credit shall be available only in the taxable
year in |
2 | | which the property is placed in service in the Enterprise |
3 | | Zone or River Edge Redevelopment Zone and
shall not be |
4 | | allowed to the extent that it would reduce a taxpayer's
|
5 | | liability for the tax imposed by subsections (a) and (b) |
6 | | of this Section to
below zero. For tax years ending on or |
7 | | after December 31, 1985, 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 |
11 | | or the liability as later
amended, such excess may be |
12 | | carried forward and applied to the tax
liability of the 5 |
13 | | taxable years following the excess credit year.
The credit |
14 | | shall 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, the credit |
17 | | accruing first in time shall be applied
first. |
18 | | (2) The term qualified property means property which: |
19 | | (A) is tangible, whether new or used, including |
20 | | buildings and
structural components of buildings; |
21 | | (B) is depreciable pursuant to Section 167 of the |
22 | | Internal Revenue
Code, except that "3-year property" |
23 | | as defined in Section 168(c)(2)(A) of
that Code is not |
24 | | eligible for the credit provided by this subsection |
25 | | (f); |
26 | | (C) is acquired by purchase as defined in Section |
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1 | | 179(d) of
the Internal Revenue Code; |
2 | | (D) is used in the Enterprise Zone or River Edge |
3 | | Redevelopment Zone by the taxpayer; and |
4 | | (E) has not been previously used in Illinois in |
5 | | such a manner and by
such a person as would qualify for |
6 | | the credit provided by this subsection
(f) or |
7 | | subsection (e). |
8 | | (3) The basis of qualified property shall be the basis |
9 | | used to compute
the depreciation deduction for federal |
10 | | income tax purposes. |
11 | | (4) If the basis of the property for federal income |
12 | | tax depreciation
purposes is increased after it has been |
13 | | placed in service in the Enterprise
Zone or River Edge |
14 | | Redevelopment Zone by the taxpayer, the amount of such |
15 | | increase shall be deemed property
placed in service on the |
16 | | date of such increase in basis. |
17 | | (5) The term "placed in service" shall have the same |
18 | | meaning as under
Section 46 of the Internal Revenue Code. |
19 | | (6) If during any taxable year, any property ceases to |
20 | | be qualified
property in the hands of the taxpayer within |
21 | | 48 months after being placed
in service, or the situs of |
22 | | any qualified property is moved outside the
Enterprise |
23 | | Zone or River Edge Redevelopment Zone within 48 months |
24 | | after being placed in service, the tax
imposed under |
25 | | subsections (a) and (b) of this Section for such taxable |
26 | | year
shall be increased. Such increase shall be determined |
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1 | | by (i) recomputing
the investment credit which would have |
2 | | been allowed for the year in which
credit for such |
3 | | property was originally allowed by eliminating such
|
4 | | property from such computation, and (ii) subtracting such |
5 | | recomputed credit
from the amount of credit previously |
6 | | allowed. For the purposes of this
paragraph (6), a |
7 | | reduction of the basis of qualified property resulting
|
8 | | from a redetermination of the purchase price shall be |
9 | | deemed a disposition
of qualified property to the extent |
10 | | of such reduction. |
11 | | (7) There shall be allowed an additional credit equal |
12 | | to 0.5% of the basis of qualified property placed in |
13 | | service during the taxable year in a River Edge |
14 | | Redevelopment Zone, provided such property is placed in |
15 | | service on or after July 1, 2006, and the taxpayer's base |
16 | | employment within Illinois has increased by 1% or more |
17 | | over the preceding year as determined by the taxpayer's |
18 | | employment records filed with the Illinois Department of |
19 | | Employment Security. Taxpayers who are new to Illinois |
20 | | shall be deemed to have met the 1% growth in base |
21 | | employment for the first year in which they file |
22 | | employment records with the Illinois Department of |
23 | | Employment Security. If, in any year, the increase in base |
24 | | employment within Illinois over the preceding year is less |
25 | | than 1%, the additional credit shall be limited to that |
26 | | percentage times a fraction, the numerator of which is |
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1 | | 0.5% and the denominator of which is 1%, but shall not |
2 | | exceed 0.5%.
|
3 | | (8) For taxable years beginning on or after January 1, |
4 | | 2021, there shall be allowed an Enterprise Zone |
5 | | construction jobs credit against the taxes imposed under |
6 | | subsections (a) and (b) of this Section as provided in |
7 | | Section 13 of the Illinois Enterprise Zone Act. |
8 | | The credit or credits may not reduce the taxpayer's |
9 | | liability to less than zero. If the amount of the credit or |
10 | | credits exceeds the taxpayer's liability, the excess may |
11 | | be carried forward and applied against the taxpayer's |
12 | | liability in succeeding calendar years in the same manner |
13 | | provided under paragraph (4) of Section 211 of this Act. |
14 | | The credit or credits shall be applied to the earliest |
15 | | year for which there is a tax liability. If there are |
16 | | credits from more than one taxable year that are available |
17 | | to offset a liability, the earlier credit shall be applied |
18 | | first. |
19 | | For partners, shareholders of Subchapter S |
20 | | corporations, and owners of limited liability companies, |
21 | | if the liability company is treated as a partnership for |
22 | | the purposes of federal and State income taxation, there |
23 | | shall be allowed a credit under this Section to be |
24 | | determined in accordance with the determination of income |
25 | | and distributive share of income under Sections 702 and |
26 | | 704 and Subchapter S of the Internal Revenue Code. |
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1 | | The total aggregate amount of credits awarded under |
2 | | the Blue Collar Jobs Act (Article 20 of Public Act 101-9 |
3 | | this amendatory Act of the 101st General Assembly ) shall |
4 | | not exceed $20,000,000 in any State fiscal year . |
5 | | This paragraph (8) is exempt from the provisions of |
6 | | Section 250. |
7 | | (g) (Blank). |
8 | | (h) Investment credit; High Impact Business. |
9 | | (1) Subject to subsections (b) and (b-5) of Section
|
10 | | 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall |
11 | | be allowed a credit
against the tax imposed by subsections |
12 | | (a) and (b) of this Section for
investment in qualified
|
13 | | property which is placed in service by a Department of |
14 | | Commerce and Economic Opportunity
designated High Impact |
15 | | Business. The credit shall be .5% of the basis
for such |
16 | | property. The credit shall not be available (i) until the |
17 | | minimum
investments in qualified property set forth in |
18 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
19 | | Enterprise Zone Act have been satisfied
or (ii) until the |
20 | | time authorized in subsection (b-5) of the Illinois
|
21 | | Enterprise Zone Act for entities designated as High Impact |
22 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and |
23 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone |
24 | | Act, and shall not be allowed to the extent that it would
|
25 | | reduce a taxpayer's liability for the tax imposed by |
26 | | subsections (a) and (b) of
this Section to below zero. The |
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1 | | credit applicable to such investments shall be
taken in |
2 | | the taxable year in which such investments have been |
3 | | completed. The
credit for additional investments beyond |
4 | | the minimum investment by a designated
high impact |
5 | | business authorized under subdivision (a)(3)(A) of Section |
6 | | 5.5 of
the Illinois Enterprise Zone Act shall be available |
7 | | only in the taxable year in
which the property is placed in |
8 | | service and shall not be allowed to the extent
that it |
9 | | would reduce a taxpayer's liability for the tax imposed by |
10 | | subsections
(a) and (b) of this Section to below zero.
For |
11 | | tax years ending on or after December 31, 1987, the credit |
12 | | shall be
allowed for the tax year in which the property is |
13 | | placed in service, or, if
the amount of the credit exceeds |
14 | | the tax liability for that year, whether
it exceeds the |
15 | | original liability or the liability as later amended, such
|
16 | | excess may be carried forward and applied to the tax |
17 | | liability of the 5
taxable years following the excess |
18 | | credit year. The credit shall be
applied to the earliest |
19 | | year for which there is a liability. If there is
credit |
20 | | from more than one tax year that is available to offset a |
21 | | liability,
the credit accruing first in time shall be |
22 | | applied first. |
23 | | Changes made in this subdivision (h)(1) by Public Act |
24 | | 88-670
restore changes made by Public Act 85-1182 and |
25 | | reflect existing law. |
26 | | (2) The term qualified property means property which: |
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1 | | (A) is tangible, whether new or used, including |
2 | | buildings and
structural components of buildings; |
3 | | (B) is depreciable pursuant to Section 167 of the |
4 | | Internal Revenue
Code, except that "3-year property" |
5 | | as defined in Section 168(c)(2)(A) of
that Code is not |
6 | | eligible for the credit provided by this subsection |
7 | | (h); |
8 | | (C) is acquired by purchase as defined in Section |
9 | | 179(d) of the
Internal Revenue Code; and |
10 | | (D) is not eligible for the Enterprise Zone |
11 | | Investment Credit provided
by subsection (f) of this |
12 | | Section. |
13 | | (3) The basis of qualified property shall be the basis |
14 | | used to compute
the depreciation deduction for federal |
15 | | income tax purposes. |
16 | | (4) If the basis of the property for federal income |
17 | | tax depreciation
purposes is increased after it has been |
18 | | placed in service in a federally
designated Foreign Trade |
19 | | Zone or Sub-Zone located in Illinois by the taxpayer,
the |
20 | | amount of such increase shall be deemed property placed in |
21 | | service on
the date of such increase in basis. |
22 | | (5) The term "placed in service" shall have the same |
23 | | meaning as under
Section 46 of the Internal Revenue Code. |
24 | | (6) If during any taxable year ending on or before |
25 | | December 31, 1996,
any property ceases to be qualified
|
26 | | property in the hands of the taxpayer within 48 months |
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1 | | after being placed
in service, or the situs of any |
2 | | qualified property is moved outside
Illinois within 48 |
3 | | months after being placed in service, the tax imposed
|
4 | | under subsections (a) and (b) of this Section for such |
5 | | taxable year shall
be increased. Such increase shall be |
6 | | determined by (i) recomputing the
investment credit which |
7 | | would have been allowed for the year in which
credit for |
8 | | such property was originally allowed by eliminating such
|
9 | | property from such computation, and (ii) subtracting such |
10 | | recomputed credit
from the amount of credit previously |
11 | | allowed. For the purposes of this
paragraph (6), a |
12 | | reduction of the basis of qualified property resulting
|
13 | | from a redetermination of the purchase price shall be |
14 | | deemed a disposition
of qualified property to the extent |
15 | | of such reduction. |
16 | | (7) Beginning with tax years ending after December 31, |
17 | | 1996, if a
taxpayer qualifies for the credit under this |
18 | | subsection (h) and thereby is
granted a tax abatement and |
19 | | the taxpayer relocates its entire facility in
violation of |
20 | | the explicit terms and length of the contract under |
21 | | Section
18-183 of the Property Tax Code, the tax imposed |
22 | | under subsections
(a) and (b) of this Section shall be |
23 | | increased for the taxable year
in which the taxpayer |
24 | | relocated its facility by an amount equal to the
amount of |
25 | | credit received by the taxpayer under this subsection (h). |
26 | | (h-5) High Impact Business construction constructions jobs |
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1 | | credit. For taxable years beginning on or after January 1, |
2 | | 2021, there shall also be allowed a High Impact Business |
3 | | construction jobs credit against the tax imposed under |
4 | | subsections (a) and (b) of this Section as provided in |
5 | | subsections (i) and (j) of Section 5.5 of the Illinois |
6 | | Enterprise Zone Act. |
7 | | The credit or credits may not reduce the taxpayer's |
8 | | liability to less than zero. If the amount of the credit or |
9 | | credits exceeds the taxpayer's liability, the excess may be |
10 | | carried forward and applied against the taxpayer's liability |
11 | | in succeeding calendar years in the manner provided under |
12 | | paragraph (4) of Section 211 of this Act. The credit or credits |
13 | | shall be applied to the earliest year for which there is a tax |
14 | | liability. If there are credits from more than one taxable |
15 | | year that are available to offset a liability, the earlier |
16 | | credit shall be applied first. |
17 | | For partners, shareholders of Subchapter S corporations, |
18 | | and owners of limited liability companies, if the liability |
19 | | company is treated as a partnership for the purposes of |
20 | | federal and State income taxation, there shall be allowed a |
21 | | credit under this Section to be determined in accordance with |
22 | | the determination of income and distributive share of income |
23 | | under Sections 702 and 704 and Subchapter S of the Internal |
24 | | Revenue Code. |
25 | | The total aggregate amount of credits awarded under the |
26 | | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this |
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1 | | amendatory Act of the 101st General Assembly ) shall not exceed |
2 | | $20,000,000 in any State fiscal year . |
3 | | This subsection (h-5) is exempt from the provisions of |
4 | | Section 250. |
5 | | (i) Credit for Personal Property Tax Replacement Income |
6 | | Tax.
For tax years ending prior to December 31, 2003, a credit |
7 | | shall be allowed
against the tax imposed by
subsections (a) |
8 | | and (b) of this Section for the tax imposed by subsections (c)
|
9 | | and (d) of this Section. This credit shall be computed by |
10 | | multiplying the tax
imposed by subsections (c) and (d) of this |
11 | | Section by a fraction, the numerator
of which is base income |
12 | | allocable to Illinois and the denominator of which is
Illinois |
13 | | base income, and further multiplying the product by the tax |
14 | | rate
imposed by subsections (a) and (b) of this Section. |
15 | | Any credit earned on or after December 31, 1986 under
this |
16 | | subsection which is unused in the year
the credit is computed |
17 | | because it exceeds the tax liability imposed by
subsections |
18 | | (a) and (b) for that year (whether it exceeds the original
|
19 | | liability or the liability as later amended) may be carried |
20 | | forward and
applied to the tax liability imposed by |
21 | | subsections (a) and (b) of the 5
taxable years following the |
22 | | excess credit year, provided that no credit may
be carried |
23 | | forward to any year ending on or
after December 31, 2003. This |
24 | | credit shall be
applied first to the earliest year for which |
25 | | there is a liability. If
there is a credit under this |
26 | | subsection from more than one tax year that is
available to |
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1 | | offset a liability the earliest credit arising under this
|
2 | | subsection shall be applied first. |
3 | | If, during any taxable year ending on or after December |
4 | | 31, 1986, the
tax imposed by subsections (c) and (d) of this |
5 | | Section for which a taxpayer
has claimed a credit under this |
6 | | subsection (i) is reduced, the amount of
credit for such tax |
7 | | shall also be reduced. Such reduction shall be
determined by |
8 | | recomputing the credit to take into account the reduced tax
|
9 | | imposed by subsections (c) and (d). If any portion of the
|
10 | | reduced amount of credit has been carried to a different |
11 | | taxable year, an
amended return shall be filed for such |
12 | | taxable year to reduce the amount of
credit claimed. |
13 | | (j) Training expense credit. Beginning with tax years |
14 | | ending on or
after December 31, 1986 and prior to December 31, |
15 | | 2003, a taxpayer shall be
allowed a credit against the
tax |
16 | | imposed by subsections (a) and (b) under this Section
for all |
17 | | amounts paid or accrued, on behalf of all persons
employed by |
18 | | the taxpayer in Illinois or Illinois residents employed
|
19 | | outside of Illinois by a taxpayer, for educational or |
20 | | vocational training in
semi-technical or technical fields or |
21 | | semi-skilled or skilled fields, which
were deducted from gross |
22 | | income in the computation of taxable income. The
credit |
23 | | against the tax imposed by subsections (a) and (b) shall be |
24 | | 1.6% of
such training expenses. For partners, shareholders of |
25 | | subchapter S
corporations, and owners of limited liability |
26 | | companies, if the liability
company is treated as a |
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1 | | partnership for purposes of federal and State income
taxation, |
2 | | there shall be allowed a credit under this subsection (j) to be
|
3 | | determined in accordance with the determination of income and |
4 | | distributive
share of income under Sections 702 and 704 and |
5 | | subchapter S of the Internal
Revenue Code. |
6 | | Any credit allowed under this subsection which is unused |
7 | | in the year
the credit is earned may be carried forward to each |
8 | | of the 5 taxable
years following the year for which the credit |
9 | | is first computed until it is
used. This credit shall be |
10 | | applied first to the earliest year for which
there is a |
11 | | liability. If there is a credit under this subsection from |
12 | | more
than one tax year that is available to offset a liability , |
13 | | the earliest
credit arising under this subsection shall be |
14 | | applied first. No carryforward
credit may be claimed in any |
15 | | tax year ending on or after
December 31, 2003. |
16 | | (k) Research and development credit. For tax years ending |
17 | | after July 1, 1990 and prior to
December 31, 2003, and |
18 | | beginning again for tax years ending on or after December 31, |
19 | | 2004, and ending prior to January 1, 2027, a taxpayer shall be
|
20 | | allowed a credit against the tax imposed by subsections (a) |
21 | | and (b) of this
Section for increasing research activities in |
22 | | this State. The credit
allowed against the tax imposed by |
23 | | subsections (a) and (b) shall be equal
to 6 1/2% of the |
24 | | qualifying expenditures for increasing research activities
in |
25 | | this State. For partners, shareholders of subchapter S |
26 | | corporations, and
owners of limited liability companies, if |
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1 | | the liability company is treated as a
partnership for purposes |
2 | | of federal and State income taxation, there shall be
allowed a |
3 | | credit under this subsection to be determined in accordance |
4 | | with the
determination of income and distributive share of |
5 | | income under Sections 702 and
704 and subchapter S of the |
6 | | Internal Revenue Code. |
7 | | For purposes of this subsection, "qualifying expenditures" |
8 | | means the
qualifying expenditures as defined for the federal |
9 | | credit for increasing
research activities which would be |
10 | | allowable under Section 41 of the
Internal Revenue Code and |
11 | | which are conducted in this State, "qualifying
expenditures |
12 | | for increasing research activities in this State" means the
|
13 | | excess of qualifying expenditures for the taxable year in |
14 | | which incurred
over qualifying expenditures for the base |
15 | | period, "qualifying expenditures
for the base period" means |
16 | | the average of the qualifying expenditures for
each year in |
17 | | the base period, and "base period" means the 3 taxable years
|
18 | | immediately preceding the taxable year for which the |
19 | | determination is
being made. |
20 | | Any credit in excess of the tax liability for the taxable |
21 | | year
may be carried forward. A taxpayer may elect to have the
|
22 | | unused credit shown on its final completed return carried over |
23 | | as a credit
against the tax liability for the following 5 |
24 | | taxable years or until it has
been fully used, whichever |
25 | | occurs first; provided that no credit earned in a tax year |
26 | | ending prior to December 31, 2003 may be carried forward to any |
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1 | | year ending on or after December 31, 2003. |
2 | | If an unused credit is carried forward to a given year from |
3 | | 2 or more
earlier years, that credit arising in the earliest |
4 | | year will be applied
first against the tax liability for the |
5 | | given year. If a tax liability for
the given year still |
6 | | remains, the credit from the next earliest year will
then be |
7 | | applied, and so on, until all credits have been used or no tax
|
8 | | liability for the given year remains. Any remaining unused |
9 | | credit or
credits then will be carried forward to the next |
10 | | following year in which a
tax liability is incurred, except |
11 | | that no credit can be carried forward to
a year which is more |
12 | | than 5 years after the year in which the expense for
which the |
13 | | credit is given was incurred. |
14 | | No inference shall be drawn from Public Act 91-644 this |
15 | | amendatory Act of the 91st General
Assembly in construing this |
16 | | Section for taxable years beginning before January
1, 1999. |
17 | | It is the intent of the General Assembly that the research |
18 | | and development credit under this subsection (k) shall apply |
19 | | continuously for all tax years ending on or after December 31, |
20 | | 2004 and ending prior to January 1, 2027, including, but not |
21 | | limited to, the period beginning on January 1, 2016 and ending |
22 | | on July 6, 2017 ( the effective date of Public Act 100-22) this |
23 | | amendatory Act of the 100th General Assembly . All actions |
24 | | taken in reliance on the continuation of the credit under this |
25 | | subsection (k) by any taxpayer are hereby validated. |
26 | | (l) Environmental Remediation Tax Credit. |
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1 | | (i) For tax years ending after December 31, 1997 and |
2 | | on or before
December 31, 2001, a taxpayer shall be |
3 | | allowed a credit against the tax
imposed by subsections |
4 | | (a) and (b) of this Section for certain amounts paid
for |
5 | | unreimbursed eligible remediation costs, as specified in |
6 | | this subsection.
For purposes of this Section, |
7 | | "unreimbursed eligible remediation costs" means
costs |
8 | | approved by the Illinois Environmental Protection Agency |
9 | | ("Agency") under
Section 58.14 of the Environmental |
10 | | Protection Act that were paid in performing
environmental |
11 | | remediation at a site for which a No Further Remediation |
12 | | Letter
was issued by the Agency and recorded under Section |
13 | | 58.10 of the Environmental
Protection Act. The credit must |
14 | | be claimed for the taxable year in which
Agency approval |
15 | | of the eligible remediation costs is granted. The credit |
16 | | is
not available to any taxpayer if the taxpayer or any |
17 | | related party caused or
contributed to, in any material |
18 | | respect, a release of regulated substances on,
in, or |
19 | | under the site that was identified and addressed by the |
20 | | remedial
action pursuant to the Site Remediation Program |
21 | | of the Environmental Protection
Act. After the Pollution |
22 | | Control Board rules are adopted pursuant to the
Illinois |
23 | | Administrative Procedure Act for the administration and |
24 | | enforcement of
Section 58.9 of the Environmental |
25 | | Protection Act, determinations as to credit
availability |
26 | | for purposes of this Section shall be made consistent with |
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1 | | those
rules. For purposes of this Section, "taxpayer" |
2 | | includes a person whose tax
attributes the taxpayer has |
3 | | succeeded to under Section 381 of the Internal
Revenue |
4 | | Code and "related party" includes the persons disallowed a |
5 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of |
6 | | Section 267 of the Internal
Revenue Code by virtue of |
7 | | being a related taxpayer, as well as any of its
partners. |
8 | | The credit allowed against the tax imposed by subsections |
9 | | (a) and
(b) shall be equal to 25% of the unreimbursed |
10 | | eligible remediation costs in
excess of $100,000 per site, |
11 | | except that the $100,000 threshold shall not apply
to any |
12 | | site contained in an enterprise zone as determined by the |
13 | | Department of
Commerce and Community Affairs (now |
14 | | Department of Commerce and Economic Opportunity). The |
15 | | total credit allowed shall not exceed
$40,000 per year |
16 | | with a maximum total of $150,000 per site. For partners |
17 | | and
shareholders of subchapter S corporations, there shall |
18 | | be allowed a credit
under this subsection to be determined |
19 | | in accordance with the determination of
income and |
20 | | distributive share of income under Sections 702 and 704 |
21 | | and
subchapter S of the Internal Revenue Code. |
22 | | (ii) A credit allowed under this subsection that is |
23 | | unused in the year
the credit is earned may be carried |
24 | | forward to each of the 5 taxable years
following the year |
25 | | for which the credit is first earned until it is used.
The |
26 | | term "unused credit" does not include any amounts of |
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1 | | unreimbursed eligible
remediation costs in excess of the |
2 | | maximum credit per site authorized under
paragraph (i). |
3 | | This credit shall be applied first to the earliest year
|
4 | | for which there is a liability. If there is a credit under |
5 | | this subsection
from more than one tax year that is |
6 | | available to offset a liability, the
earliest credit |
7 | | arising under this subsection shall be applied first. A
|
8 | | credit allowed under this subsection may be sold to a |
9 | | buyer as part of a sale
of all or part of the remediation |
10 | | site for which the credit was granted. The
purchaser of a |
11 | | remediation site and the tax credit shall succeed to the |
12 | | unused
credit and remaining carry-forward period of the |
13 | | seller. To perfect the
transfer, the assignor shall record |
14 | | the transfer in the chain of title for the
site and provide |
15 | | written notice to the Director of the Illinois Department |
16 | | of
Revenue of the assignor's intent to sell the |
17 | | remediation site and the amount of
the tax credit to be |
18 | | transferred as a portion of the sale. In no event may a
|
19 | | credit be transferred to any taxpayer if the taxpayer or a |
20 | | related party would
not be eligible under the provisions |
21 | | of subsection (i). |
22 | | (iii) For purposes of this Section, the term "site" |
23 | | shall have the same
meaning as under Section 58.2 of the |
24 | | Environmental Protection Act. |
25 | | (m) Education expense credit. Beginning with tax years |
26 | | ending after
December 31, 1999, a taxpayer who
is the |
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1 | | custodian of one or more qualifying pupils shall be allowed a |
2 | | credit
against the tax imposed by subsections (a) and (b) of |
3 | | this Section for
qualified education expenses incurred on |
4 | | behalf of the qualifying pupils.
The credit shall be equal to |
5 | | 25% of qualified education expenses, but in no
event may the |
6 | | total credit under this subsection claimed by a
family that is |
7 | | the
custodian of qualifying pupils exceed (i) $500 for tax |
8 | | years ending prior to December 31, 2017, and (ii) $750 for tax |
9 | | years ending on or after December 31, 2017. In no event shall a |
10 | | credit under
this subsection reduce the taxpayer's liability |
11 | | under this Act to less than
zero. Notwithstanding any other |
12 | | provision of law, for taxable years beginning on or after |
13 | | January 1, 2017, no taxpayer may claim a credit under this |
14 | | subsection (m) if the taxpayer's adjusted gross income for the |
15 | | taxable year exceeds (i) $500,000, in the case of spouses |
16 | | filing a joint federal tax return or (ii) $250,000, in the case |
17 | | of all other taxpayers. This subsection is exempt from the |
18 | | provisions of Section 250 of this
Act. |
19 | | For purposes of this subsection: |
20 | | "Qualifying pupils" means individuals who (i) are |
21 | | residents of the State of
Illinois, (ii) are under the age of |
22 | | 21 at the close of the school year for
which a credit is |
23 | | sought, and (iii) during the school year for which a credit
is |
24 | | sought were full-time pupils enrolled in a kindergarten |
25 | | through twelfth
grade education program at any school, as |
26 | | defined in this subsection. |
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1 | | "Qualified education expense" means the amount incurred
on |
2 | | behalf of a qualifying pupil in excess of $250 for tuition, |
3 | | book fees, and
lab fees at the school in which the pupil is |
4 | | enrolled during the regular school
year. |
5 | | "School" means any public or nonpublic elementary or |
6 | | secondary school in
Illinois that is in compliance with Title |
7 | | VI of the Civil Rights Act of 1964
and attendance at which |
8 | | satisfies the requirements of Section 26-1 of the
School Code, |
9 | | except that nothing shall be construed to require a child to
|
10 | | attend any particular public or nonpublic school to qualify |
11 | | for the credit
under this Section. |
12 | | "Custodian" means, with respect to qualifying pupils, an |
13 | | Illinois resident
who is a parent, the parents, a legal |
14 | | guardian, or the legal guardians of the
qualifying pupils. |
15 | | (n) River Edge Redevelopment Zone site remediation tax |
16 | | credit.
|
17 | | (i) For tax years ending on or after December 31, |
18 | | 2006, a taxpayer shall be allowed a credit against the tax |
19 | | imposed by subsections (a) and (b) of this Section for |
20 | | certain amounts paid for unreimbursed eligible remediation |
21 | | costs, as specified in this subsection. For purposes of |
22 | | this Section, "unreimbursed eligible remediation costs" |
23 | | means costs approved by the Illinois Environmental |
24 | | Protection Agency ("Agency") under Section 58.14a of the |
25 | | Environmental Protection Act that were paid in performing |
26 | | environmental remediation at a site within a River Edge |
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1 | | Redevelopment Zone for which a No Further Remediation |
2 | | Letter was issued by the Agency and recorded under Section |
3 | | 58.10 of the Environmental Protection Act. The credit must |
4 | | be claimed for the taxable year in which Agency approval |
5 | | of the eligible remediation costs is granted. The credit |
6 | | is not available to any taxpayer if the taxpayer or any |
7 | | related party caused or contributed to, in any material |
8 | | respect, a release of regulated substances on, in, or |
9 | | under the site that was identified and addressed by the |
10 | | remedial action pursuant to the Site Remediation Program |
11 | | of the Environmental Protection Act. Determinations as to |
12 | | credit availability for purposes of this Section shall be |
13 | | made consistent with rules adopted by the Pollution |
14 | | Control Board pursuant to the Illinois Administrative |
15 | | Procedure Act for the administration and enforcement of |
16 | | Section 58.9 of the Environmental Protection Act. For |
17 | | purposes of this Section, "taxpayer" includes a person |
18 | | whose tax attributes the taxpayer has succeeded to under |
19 | | Section 381 of the Internal Revenue Code and "related |
20 | | party" includes the persons disallowed a deduction for |
21 | | losses by paragraphs (b), (c), and (f)(1) of Section 267 |
22 | | of the Internal Revenue Code by virtue of being a related |
23 | | taxpayer, as well as any of its partners. The credit |
24 | | allowed against the tax imposed by subsections (a) and (b) |
25 | | shall be equal to 25% of the unreimbursed eligible |
26 | | remediation costs in excess of $100,000 per site. |
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1 | | (ii) A credit allowed under this subsection that is |
2 | | unused in the year the credit is earned may be carried |
3 | | forward to each of the 5 taxable years following the year |
4 | | for which the credit is first earned until it is used. This |
5 | | credit shall be applied first to the earliest year for |
6 | | which there is a liability. If there is a credit under this |
7 | | subsection from more than one tax year that is available |
8 | | to offset a liability, the earliest credit arising under |
9 | | this subsection shall be applied first. A credit allowed |
10 | | under this subsection may be sold to a buyer as part of a |
11 | | sale of all or part of the remediation site for which the |
12 | | credit was granted. The purchaser of a remediation site |
13 | | and the tax credit shall succeed to the unused credit and |
14 | | remaining carry-forward period of the seller. To perfect |
15 | | the transfer, the assignor shall record the transfer in |
16 | | the chain of title for the site and provide written notice |
17 | | to the Director of the Illinois Department of Revenue of |
18 | | the assignor's intent to sell the remediation site and the |
19 | | amount of the tax credit to be transferred as a portion of |
20 | | the sale. In no event may a credit be transferred to any |
21 | | taxpayer if the taxpayer or a related party would not be |
22 | | eligible under the provisions of subsection (i). |
23 | | (iii) For purposes of this Section, the term "site" |
24 | | shall have the same meaning as under Section 58.2 of the |
25 | | Environmental Protection Act. |
26 | | (o) For each of taxable years during the Compassionate Use |
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1 | | of Medical Cannabis Program, a surcharge is imposed on all |
2 | | taxpayers on income arising from the sale or exchange of |
3 | | capital assets, depreciable business property, real property |
4 | | used in the trade or business, and Section 197 intangibles of |
5 | | an organization registrant under the Compassionate Use of |
6 | | Medical Cannabis Program Act. The amount of the surcharge is |
7 | | equal to the amount of federal income tax liability for the |
8 | | taxable year attributable to those sales and exchanges. The |
9 | | surcharge imposed does not apply if: |
10 | | (1) the medical cannabis cultivation center |
11 | | registration, medical cannabis dispensary registration, or |
12 | | the property of a registration is transferred as a result |
13 | | of any of the following: |
14 | | (A) bankruptcy, a receivership, or a debt |
15 | | adjustment initiated by or against the initial |
16 | | registration or the substantial owners of the initial |
17 | | registration; |
18 | | (B) cancellation, revocation, or termination of |
19 | | any registration by the Illinois Department of Public |
20 | | Health; |
21 | | (C) a determination by the Illinois Department of |
22 | | Public Health that transfer of the registration is in |
23 | | the best interests of Illinois qualifying patients as |
24 | | defined by the Compassionate Use of Medical Cannabis |
25 | | Program Act; |
26 | | (D) the death of an owner of the equity interest in |
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1 | | a registrant; |
2 | | (E) the acquisition of a controlling interest in |
3 | | the stock or substantially all of the assets of a |
4 | | publicly traded company; |
5 | | (F) a transfer by a parent company to a wholly |
6 | | owned subsidiary; or |
7 | | (G) the transfer or sale to or by one person to |
8 | | another person where both persons were initial owners |
9 | | of the registration when the registration was issued; |
10 | | or |
11 | | (2) the cannabis cultivation center registration, |
12 | | medical cannabis dispensary registration, or the |
13 | | controlling interest in a registrant's property is |
14 | | transferred in a transaction to lineal descendants in |
15 | | which no gain or loss is recognized or as a result of a |
16 | | transaction in accordance with Section 351 of the Internal |
17 | | Revenue Code in which no gain or loss is recognized. |
18 | | (Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for |
19 | | effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; |
20 | | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.) |
21 | | Section 90-20. The Retailers' Occupation Tax Act is |
22 | | amended by adding Section 5k-5 as follows: |
23 | | (35 ILCS 120/5k-5 new) |
24 | | Sec. 5k-5. Building materials exemption; Clean Energy |
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1 | | Empowerment Zone. Each retailer who makes a sale of building |
2 | | materials to be incorporated into renewable energy projects in |
3 | | a Clean Energy Empowerment Zone established under the Energy |
4 | | Community Reinvestment Act may deduct receipts from such sales |
5 | | when calculating the tax imposed by this Act. A renewable |
6 | | energy enterprise or other entity shall not make tax-free |
7 | | purchases under this Section unless it has an active exemption |
8 | | certificate at the time of purchase, which shall be issued by |
9 | | the Department in a form prescribed by the Department. The |
10 | | Department shall adopt by rule all other requirements |
11 | | necessary for the implementation and operation of this |
12 | | Section. |
13 | | Section 90-25. The Public Utilities Act is amended by |
14 | | adding Sections 9-222.1B and 16-108.9 as follows: |
15 | | (220 ILCS 5/9-222.1B new) |
16 | | Sec. 9-222.1B. Clean Energy Empowerment Zone exemption. A |
17 | | renewable energy enterprise that is located within a Clean |
18 | | Energy Empowerment Zone established under the Energy Community |
19 | | Reinvestment Act shall be exempt from the additional charges |
20 | | added to the renewable energy enterprise's utility bills as a |
21 | | pass-on of municipal and State utility taxes under Sections |
22 | | 9-221 and 9-222 of this Act, to the extent such charges are |
23 | | exempted by ordinance adopted in accordance with paragraph (e) |
24 | | of Section 8-11-2 of the Illinois Municipal Code in the case of |
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1 | | municipal utility taxes, and to the extent such charges are |
2 | | exempted by the percentage specified by the Department of |
3 | | Commerce and Economic Opportunity in the case of State utility |
4 | | taxes, provided such renewable energy enterprise meets the |
5 | | following criteria: |
6 | | (1) it (i) makes investments that cause the creation
|
7 | | of a minimum of 200 full-time equivalent jobs in Illinois; |
8 | | (ii) makes investments of at least $175,000,000 that cause |
9 | | the creation of a minimum of 150 full-time equivalent jobs |
10 | | in Illinois; (iii) makes investments that cause the |
11 | | retention of a minimum of 300 full-time equivalent jobs in |
12 | | the manufacturing sector, as defined by the North American |
13 | | Industry Classification System, in an area in Illinois in |
14 | | which the unemployment rate is above 9% and makes an |
15 | | application to the Department within 3 months after the |
16 | | effective date of this amendatory Act of the 102nd General |
17 | | Assembly and certifies relocation of the 300 full-time |
18 | | equivalent jobs within 48 months after the application; or |
19 | | (iv) makes investments that cause the retention of a |
20 | | minimum of 1,000 full-time jobs in Illinois; |
21 | | (2) it is located in a Clean Energy Empowerment Zone |
22 | | established under the Energy Community Reinvestment Act; |
23 | | and |
24 | | (3) it is certified by the Department of Commerce and
|
25 | | Economic Opportunity as complying with the requirements |
26 | | specified in clauses (1) and (2) of this Section. |
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1 | | The Department of Commerce and Economic Opportunity shall |
2 | | determine the period during which such exemption from the |
3 | | charges imposed under Section 9-222 is in effect which shall |
4 | | not exceed 30 years or the term of the Clean Energy Empowerment |
5 | | Zone, whichever period is shorter, except that the exemption |
6 | | period for a renewable energy enterprise qualifying under item |
7 | | (iii) of clause (1) of this Section shall not exceed 30 years. |
8 | | The Department of Commerce and Economic Opportunity has |
9 | | the power to adopt rules to carry out the provisions of this |
10 | | Section including procedures for complying with the |
11 | | requirements specified in clauses (1) and (2) of this Section |
12 | | and procedures for applying for the exemptions authorized |
13 | | under this Section; to define the amounts and types of |
14 | | eligible investments that a renewable energy enterprise must |
15 | | make in order to receive State utility tax exemptions pursuant |
16 | | to Sections 9-222 and 9-222.1 of this Act; to approve such |
17 | | utility tax exemptions for renewable energy enterprise whose |
18 | | investments are not yet placed in service; and to require that |
19 | | renewable energy enterprise granted tax exemptions repay the |
20 | | exempted tax should the renewable energy enterprise fail to |
21 | | comply with the terms and conditions of the certification. |
22 | | However, no renewable energy enterprise shall be required, as |
23 | | a condition for certification under clause (3) of this |
24 | | Section, to attest that its decision to invest under clause |
25 | | (1) of this Section and to locate under clause (2) of this |
26 | | Section is predicated upon the availability of the exemptions |
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1 | | authorized by this Section. |
2 | | A renewable energy enterprise shall be exempt, in whole or |
3 | | in part, from the pass-on charges of municipal utility taxes |
4 | | imposed under Section 9-221, only if it meets the criteria |
5 | | specified in clauses (1) through (3) of this Section and the |
6 | | municipality has adopted an ordinance authorizing the |
7 | | exemption under paragraph (e) of Section 8-11-2 of the |
8 | | Illinois Municipal Code. Upon certification of the renewable |
9 | | energy enterprise by the Department of Commerce and Economic |
10 | | Opportunity, the Department of Commerce and Economic |
11 | | Opportunity shall notify the Department of Revenue of such |
12 | | certification. The Department of Revenue shall notify the |
13 | | public utilities of the exemption status of renewable energy |
14 | | enterprises from the pass-on charges of State and municipal |
15 | | utility taxes. Such exemption status shall be effective within |
16 | | 3 months after certification of the renewable energy |
17 | | enterprise. |
18 | | (220 ILCS 5/16-108.9 new) |
19 | | Sec. 16-108.9. Clean Energy Empowerment Zone pilot |
20 | | projects. |
21 | | (a) The General Assembly finds that it is important to |
22 | | support the rapid transition in the energy sector to put |
23 | | Illinois on a path to 100% renewable energy. This will require |
24 | | leveraging new technologies and solutions to support grid |
25 | | reliability to address issues such as the shift from large, |
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1 | | centralized, fossil generation to wind, solar, and distributed |
2 | | energy resources. To that end, the General Assembly sees the |
3 | | need for developing pilot projects in Clean Energy Empowerment |
4 | | Zones that enhance reliability while facilitating the |
5 | | transition toward clean energy. |
6 | | (b) An electric utility serving more than 100,000 retail |
7 | | customers may propose one or more Clean Energy Empowerment |
8 | | Zone pilot projects to the Illinois Commerce Commission to |
9 | | conduct a competitive procurement for independently owned |
10 | | energy storage systems to be located in Clean Energy |
11 | | Empowerment Zones. The Commission shall evaluate the projects |
12 | | based on their ability to address present and future |
13 | | reliability needs identified by the Midcontinent Independent |
14 | | System Operator, PJM Interconnection, electric utilities, or |
15 | | independent analysts. In addition to supporting reliability, a |
16 | | qualifying project must support the transition toward or |
17 | | development of clean energy. |
18 | | (c) The Clean Energy Empowerment Zones described in this |
19 | | Section shall be the same as defined by the Department of |
20 | | Commerce and Economic Opportunity in the Energy Community |
21 | | Reinvestment Act. |
22 | | (d) The Clean Energy Empowerment Zone pilot projects shall |
23 | | closely coordinate with actual and expected development of new |
24 | | wind projects and new solar projects as described in Section |
25 | | 1-75 of the Illinois Power Agency Act, electric vehicle |
26 | | adoption, and Community Energy, Climate, and Jobs Plans as |
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1 | | defined in the Community Energy, Climate, and Jobs Planning |
2 | | Act. |
3 | | (e) Upon approval of a Clean Energy Empowerment Zone pilot |
4 | | project by the Illinois Commerce Commission, an electric |
5 | | utility is authorized to enter into a distribution services |
6 | | contract with new energy storage system projects in accordance |
7 | | with the approved project. Nothing in this Section or in the |
8 | | distribution services contract shall preclude the energy |
9 | | storage project from providing additional wholesale market |
10 | | services. |
11 | | (f) An electric utility that elects to undertake the |
12 | | investment described in subsection (b) of this Section may, at |
13 | | its election, recover the costs of such investment through an |
14 | | automatic adjustment clause tariff or through a delivery |
15 | | services charge regardless of how the costs are classified on |
16 | | the utility's books and records of account. |
17 | | (g) To the extent feasible and consistent with State and |
18 | | federal law, the investments made pursuant to this Section |
19 | | shall provide employment opportunities for former workers in |
20 | | fossil fuel industries. |
21 | | (h) Nothing in this Section is intended to limit the |
22 | | ability of any other entity to develop, construct, or install |
23 | | an energy storage system. In addition, nothing in this Section |
24 | | is intended to limit or alter otherwise applicable |
25 | | interconnection requirements. |
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1 | | Section 90-30. The Environmental Protection Act is amended |
2 | | by changing Section 9.10 and by adding Section 9.18 as |
3 | | follows:
|
4 | | (415 ILCS 5/9.10)
|
5 | | Sec. 9.10. Fossil fuel-powered electric generating units |
6 | | Fossil fuel-fired electric generating plants .
|
7 | | (a) As used in this Section: |
8 | | "Board" means the Illinois Pollution Control Board. |
9 | | "BIPOC" and "black, indigenous, and people of color" are |
10 | | defined as people who are members of the groups described in |
11 | | subparagraphs (a) through (e) of paragraph (A) of subsection |
12 | | (1) of Section 2 of the Business Enterprise for Minorities, |
13 | | Women, and Persons with Disabilities Act. |
14 | | "Emissions" means greenhouse gases, particulate matter, |
15 | | mercury, nitrogen oxides, sulfur dioxide, and any other |
16 | | pollutant that the Agency deems appropriate for regulation to |
17 | | protect health or land in the State. |
18 | | "Frontline community" means any community or municipality |
19 | | within a 3-mile radius of a fossil fuel-powered electric |
20 | | generating unit. |
21 | | "Meaningful involvement" means: (1) potentially affected |
22 | | populations have an appropriate opportunity to participate in |
23 | | decisions about a proposed regulatory action that may affect |
24 | | their environment or health; (2) the populations' |
25 | | contributions can influence the EPA's rulemaking decisions; |
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1 | | (3) the concerns of all participants involved shall be |
2 | | considered in the decision-making process; and (4) the IEPA |
3 | | shall seek out and facilitate the involvement of populations |
4 | | potentially affected by the IEPA's proposed regulatory action. |
5 | | (a-1) (a) The General Assembly finds and declares that:
|
6 | | (1) fossil fuel-powered electric generating units |
7 | | fossil fuel-fired electric generating plants are a |
8 | | significant source
of air emissions in this State and have |
9 | | become the subject of a number of
important new studies of |
10 | | their effects on the public health;
|
11 | | (2) existing state and federal policies, that allow |
12 | | older plants that meet
federal standards to operate |
13 | | without meeting the more stringent requirements
applicable |
14 | | to new plants, are being questioned on the basis of their
|
15 | | environmental impacts and the economic distortions such |
16 | | policies cause in
a deregulated energy market;
|
17 | | (3) fossil fuel-powered electric generating units |
18 | | fossil fuel-fired electric generating plants are, or may |
19 | | be,
affected by a number of regulatory programs, some of |
20 | | which are under review
or development on the state and |
21 | | national levels, and to a certain extent the
international |
22 | | level, including the federal acid rain program, |
23 | | tropospheric
ozone, mercury
and other hazardous pollutant |
24 | | control requirements, regional haze, and global
warming;
|
25 | | (4) scientific uncertainty regarding the formation of |
26 | | certain components
of regional haze and the air quality |
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1 | | modeling that predict impacts of
control measures requires |
2 | | careful consideration of the timing of the
control of some |
3 | | of the pollutants from these facilities, particularly |
4 | | sulfur
dioxides and nitrogen oxides that each interact |
5 | | with ammonia and other
substances in the atmosphere;
|
6 | | (5) the development of energy policies to promote a |
7 | | safe, sufficient,
reliable, and affordable energy supply |
8 | | on the state and national levels is
being affected by the |
9 | | on-going deregulation of the power generation industry
and |
10 | | the evolving energy markets;
|
11 | | (6) the Governor's formation of an Energy Cabinet and |
12 | | the development of a
State energy policy calls for actions |
13 | | by the Agency and the Board that are in
harmony with the |
14 | | energy needs and policy of the State, while protecting the
|
15 | | public health and the environment;
|
16 | | (7) reducing greenhouse gas emissions and other air |
17 | | pollutants such as particulate matter, sulfur dioxide, and |
18 | | nitrogen oxide is critical to improving the health and |
19 | | welfare of Illinois residents by decreasing respiratory |
20 | | diseases, cardiovascular diseases, and related |
21 | | mortalities; lowering customers' energy costs; and |
22 | | responding to the growing impacts of climate change from |
23 | | fossil fuel generation; |
24 | | (8) through reductions in harmful emissions and |
25 | | strategic planning for Illinois residents currently |
26 | | employed by and communities reliant on fossil fuel-powered |
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1 | | electric generating units, eliminating greenhouse gas |
2 | | emissions from the electricity generation sector is a |
3 | | priority for the State; |
4 | | (9) The House of Representatives of the 100th General |
5 | | Assembly recognized this problem and, in adopting House |
6 | | Resolution 490 on June 26, 2017, it supported the Paris |
7 | | Climate Agreement and urged the State of Illinois to join |
8 | | the United States Climate Alliance and develop a plan to |
9 | | achieve 100% clean energy by 2045;
|
10 | | (7) Illinois coal is an abundant resource and an |
11 | | important component of
Illinois' economy whose use should |
12 | | be encouraged to the greatest extent
possible consistent |
13 | | with protecting the public health and the environment;
|
14 | | (8) renewable forms of energy should be promoted as an |
15 | | important element
of the energy and environmental policies |
16 | | of the State and that it is a goal of
the State that at |
17 | | least 5% of the State's energy production and use be |
18 | | derived
from renewable forms of energy by 2010 and at |
19 | | least 15% from renewable forms
of energy by 2020;
|
20 | | (10) (9) efforts on the state and federal levels are |
21 | | underway to consider the
multiple environmental |
22 | | regulations affecting electric generating plants in
order |
23 | | to improve the ability of government and the affected |
24 | | industry to engage
in effective planning through the use |
25 | | of multi-pollutant strategies; and
|
26 | | (11) (10) these issues, taken together, call for a |
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1 | | comprehensive review of the
impact of these facilities on |
2 | | the public health, considering also the energy
supply, |
3 | | reliability, and costs, the role of renewable forms of |
4 | | energy, and the
developments in federal law and |
5 | | regulations that may affect any state actions,
prior to |
6 | | making final decisions in Illinois.
|
7 | | (b) Taking into account the findings and declarations of |
8 | | the General
Assembly contained in subsection (a) of this |
9 | | Section, the Agency shall, within 180 days after the effective |
10 | | date of this amendatory Act of the 102nd General Assembly, |
11 | | initiate a rulemaking to amend Title 35 of the Illinois |
12 | | Administrative Code to establish annual declining greenhouse |
13 | | gas pollution caps and caps on co-pollutants, including, but |
14 | | not limited to, particulate matter (including both PM 10 and |
15 | | PM 2.5 ), mercury, nitrogen oxides, and sulfur dioxide, beginning |
16 | | in 2023 from all fossil fuel-powered electric generating units |
17 | | (including, but not limited to, coal-fired, coal-derived, |
18 | | oil-fired, combustion turbine, integrated gasification |
19 | | combined cycle, and cogeneration facilities with a nameplate |
20 | | capacity that exceeds 25 MW) so as to progressively eliminate |
21 | | all emissions of those pollutants from Illinois' electric |
22 | | sector by the year 2030. No later than one year after receipt |
23 | | of the Agency's proposal under this Section, the Board shall |
24 | | adopt rules setting out declining annual emissions caps for |
25 | | greenhouse gases (CO 2 equivalent) and co-pollutants, |
26 | | including, but not limited to, particulate matter (including |
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1 | | both PM 10 and PM 2.5 ), mercury, nitrogen oxides, and sulfur |
2 | | dioxide, for each individual fossil fuel-powered electric |
3 | | generating unit in Illinois as well as aggregate annual |
4 | | statewide emissions caps. The Board may set different |
5 | | declining caps for each plant, but caps must decline to zero |
6 | | emissions for all plants by 2030. As part of its rulemaking |
7 | | proposal, the Agency shall: |
8 | | (1) ensure that power plants located near densely |
9 | | populated and environmental justice communities and those |
10 | | with sulfur dioxide emission rates above 0.0007 pounds per |
11 | | million Btu are prioritized for more rapid, mandatory, |
12 | | plant-specific emissions reductions for both greenhouse |
13 | | gases and co-pollutants; |
14 | | (2) develop an environmental justice analysis, in |
15 | | partnership with the Illinois Commission on Environmental |
16 | | Justice and with frontline community feedback, to inform a |
17 | | draft rule proposal and identification of power plants of |
18 | | particular concern requiring priority emissions |
19 | | reductions. This analysis shall include a cumulative |
20 | | impacts assessment and use existing methodologies and |
21 | | findings, used and as may be updated by the Illinois Power |
22 | | Agency and its Administrator in its Illinois Solar for All |
23 | | Program, taking into account the following factors: |
24 | | (A) Population density; |
25 | | (B) National-Scale Air Toxics Assessment (NATA) |
26 | | air toxics cancer risk; |
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1 | | (C) NATA respiratory hazard index; |
2 | | (D) NATA diesel PM; |
3 | | (E) particulate matter; |
4 | | (F) ozone; |
5 | | (G) traffic proximity and volume; |
6 | | (H) lead paint indicator; |
7 | | (I) proximity to Risk Management Plan sites; |
8 | | (J) proximity to Hazardous Waste Treatment, |
9 | | Storage, and Disposal Facilities; |
10 | | (K) proximity to National Priorities List sites; |
11 | | (L) Wastewater Dischargers Indicator; |
12 | | (M) percent low-income; |
13 | | (N) percent black, indigenous, and people of |
14 | | color; |
15 | | (O) percent less than a high school education; |
16 | | (P) linguistic isolation; |
17 | | (Q) age (individuals under age 5 or over 64); |
18 | | (R) number of asthma-related emergency department |
19 | | visits; and |
20 | | (S) frequency of low birth weight infants; |
21 | | (3) conduct a robust and inclusive stakeholder process |
22 | | prior to initiating a rulemaking proceeding before the |
23 | | Illinois Pollution Control Board that ensures the |
24 | | meaningful participation of Illinois residents, especially |
25 | | those most impacted by fossil fuel-powered electric |
26 | | generating units. To ensure meaningful involvement in its |
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1 | | stakeholder process, the agency shall: |
2 | | (A) include a formal public comment period with at |
3 | | least 4 public hearings located in communities |
4 | | geographically dispersed, where fossil fuel-powered |
5 | | electric generating units are located; |
6 | | (B) ensure full and fair access for working |
7 | | residents by providing opportunity for public comment |
8 | | outside the workday; and |
9 | | (C) issue a responsiveness summary with a draft |
10 | | rulemaking briefly describing and responding to, at a |
11 | | minimum, all frontline community comments raised |
12 | | during the stakeholder process and public comment |
13 | | period; |
14 | | (4) participate in strategic planning efforts with the |
15 | | Department of Commerce and Economic Opportunity to |
16 | | identify needs and initiatives for communities and workers |
17 | | economically impacted by the decline in fossil fuel |
18 | | generation; |
19 | | (5) evaluate individual units using the criteria above |
20 | | and set appropriate annually declining caps for emission |
21 | | reductions, which ultimately result in caps of zero |
22 | | emissions from all fossil fuel-powered electric generating |
23 | | units by January 1, 2030; |
24 | | (6) include provisions to allow owners or operators of |
25 | | fossil fuel-powered electric generating units to continue |
26 | | operating while using their best efforts to resolve any |
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1 | | reliability requirements with regional grid operators and |
2 | | cease operations as soon as practicable in situations |
3 | | where achieving the emission reductions required by the |
4 | | Agency's rulemaking proposal necessitates that a |
5 | | particular unit cease operations and a regional grid |
6 | | operator determines that operation of that unit is |
7 | | required to continue to maintain transmission reliability. |
8 | | The Agency's rulemaking proposal shall include mechanisms |
9 | | designed to limit, to the extent possible, any such |
10 | | disruption to the State's emission reduction program, |
11 | | including an evaluation of when and how advanced notice of |
12 | | intended unit closures should be given to regional grid |
13 | | operators; and |
14 | | (7) establish emissions caps for (i) individual fossil |
15 | | fuel-powered electric generating units and (ii) the entire |
16 | | electric sector. The emissions caps shall include all |
17 | | emissions, including greenhouse gases and co-pollutants. |
18 | | (A) Annual aggregate electric sector emissions |
19 | | caps. The aggregate emissions cap shall apply to the |
20 | | entire Illinois electric sector and include the sum of |
21 | | emissions from all fossil fuel-powered electric |
22 | | generating units. The Agency shall establish a |
23 | | schedule through which the aggregate cap shall decline |
24 | | annually. A baseline amount shall be calculated by |
25 | | averaging the emissions from 2017, 2018, and 2019 of |
26 | | plants operating as of the effective date of this |
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1 | | amendatory Act of the 102nd General Assembly. To |
2 | | ensure consistent progress toward the goal of |
3 | | eliminating all emissions from Illinois' electric |
4 | | sector by 2030, the annual aggregate emissions cap |
5 | | shall decrease each year by no less than 7% of the |
6 | | baseline amount. |
7 | | (B) Annual unit-specific emissions caps. Annual |
8 | | emissions caps shall apply to each fossil fuel-powered |
9 | | electric generating unit in the State and be |
10 | | consistent with achieving the aggregate emissions cap. |
11 | | Starting in 2023, the annual emissions cap for each |
12 | | plant shall be no greater than the highest emissions |
13 | | amount from any of the 3 previous years of operation. |
14 | | If a plant first became operational less than 3 years |
15 | | before being subject to a unit-specific emissions cap, |
16 | | then the annual emissions cap for such a plant shall be |
17 | | no greater than its previous year of operation; or if a |
18 | | fossil fuel-powered electric generating unit has been |
19 | | operational less than one year, then the Agency shall |
20 | | set a cap that is consistent with achieving the |
21 | | aggregate emissions cap and the goal of eliminating |
22 | | all emissions from Illinois' electric sector by 2030. |
23 | | (C) Annual report. Each year, the Agency shall |
24 | | prepare and publish a report on the implementation, |
25 | | review, and updating of the schedules regulating |
26 | | annual emissions caps as described in this subsection. |
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1 | | This report shall include: |
2 | | (i) an accounting of all greenhouse gas and |
3 | | co-pollutant caps on, and actual emissions from, |
4 | | individual plants demonstrating the Agency's |
5 | | implementation of the requirements in this |
6 | | subsection; and |
7 | | (ii) an accounting of the aggregate declining |
8 | | cap schedules demonstrating the adequacy of the |
9 | | schedules to achieve net-zero emissions in the |
10 | | electric sector by 2030, and any changes to the |
11 | | schedules. |
12 | | In addition to the information required under |
13 | | items (i) and (ii), the 2025 report shall include a |
14 | | review of the Agency's rules regulating annual |
15 | | greenhouse gas pollution and co-pollutant caps in |
16 | | light of projected emissions for the remaining years |
17 | | until 2030 and demonstrate the adequacy of its rules |
18 | | and policies to achieve net-zero emissions in the |
19 | | electric sector by 2030. Should the Agency conclude |
20 | | its current rules and policies are insufficient to |
21 | | eliminate emissions from all fossil fuel-powered |
22 | | electric generating units by January 1, 2030 and |
23 | | comply with all other requirements in this Section, it |
24 | | shall initiate a rulemaking no later than 180 days |
25 | | from reaching this conclusion amending its rules to do |
26 | | so. |
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1 | | before
September 30, 2004, but not before September 30, 2003, |
2 | | issue to the House and
Senate Committees on Environment and |
3 | | Energy findings that address the potential
need for the |
4 | | control or reduction of emissions from fossil fuel-fired |
5 | | electric
generating plants, including the following |
6 | | provisions:
|
7 | | (1) reduction of nitrogen oxide emissions, as |
8 | | appropriate, with
consideration of maximum annual |
9 | | emissions rate limits or establishment of an
emissions |
10 | | trading program and with consideration of the developments |
11 | | in federal
law and
regulations that may affect any State |
12 | | action, prior to making final decisions
in Illinois;
|
13 | | (2) reduction of sulfur dioxide emissions, as |
14 | | appropriate, with
consideration of maximum annual |
15 | | emissions rate limits or establishment of an
emissions |
16 | | trading program and with consideration of the developments |
17 | | in federal
law and regulations that may affect any State |
18 | | action, prior to making final
decisions in Illinois;
|
19 | | (3) incentives to promote renewable sources of energy |
20 | | consistent with
item (8) of subsection (a) of this |
21 | | Section;
|
22 | | (4) reduction of mercury as appropriate, consideration |
23 | | of
the availability of control technology, industry |
24 | | practice requirements, or
incentive programs, or some |
25 | | combination of these approaches that are sufficient
to |
26 | | prevent unacceptable local impacts from individual |
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1 | | facilities and with
consideration of the developments in |
2 | | federal law and
regulations that may affect any state |
3 | | action, prior to making final decisions
in Illinois; and
|
4 | | (5) establishment of a banking system, consistent with |
5 | | the United States
Department of Energy's voluntary |
6 | | reporting system, for certifying credits for
voluntary |
7 | | offsets of emissions of greenhouse gases, as identified by |
8 | | the United
States Environmental Protection Agency, or |
9 | | other voluntary reductions of
greenhouse gases. Such |
10 | | reduction efforts may include, but are not limited to,
|
11 | | carbon sequestration, technology-based control measures, |
12 | | energy efficiency
measures, and the use of renewable |
13 | | energy sources.
|
14 | | The Agency shall consider the impact on the public health, |
15 | | considering also
energy supply, reliability and costs, the |
16 | | role of renewable forms of energy,
and developments in federal |
17 | | law and regulations that may affect any state
actions, prior |
18 | | to making final decisions in Illinois.
|
19 | | (c) Nothing in this Section is intended to or should be |
20 | | interpreted in a
manner to limit or restrict the authority of |
21 | | the Illinois Environmental
Protection Agency to propose, or |
22 | | the Illinois Pollution Control Board to
adopt, any regulations |
23 | | applicable or that may become applicable to the
facilities |
24 | | covered by this Section that are required by federal law and |
25 | | other Illinois laws .
|
26 | | (d) The Agency may file proposed rules with the Board to |
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1 | | effectuate the goals set forth in subsection (b) its
findings |
2 | | provided to the Senate Committee on Environment and Energy and |
3 | | the
House Committee on Environment and Energy in accordance |
4 | | with subsection (b) of
this Section. Any such proposal shall |
5 | | not be submitted sooner than 90 days
after the issuance of the |
6 | | findings provided for in subsection (b) of this
Section . The |
7 | | Board shall take action on any such proposal within one year of
|
8 | | the Agency's filing of the proposed rules.
|
9 | | (e) Enforcement. |
10 | | (1) Any person may file with the Board a complaint, |
11 | | following the procedures contained in subsection (d) of |
12 | | Section 31 of this Act, against any person, the State of |
13 | | Illinois, or any government official for failure to |
14 | | perform any act or nondiscretionary duty under this |
15 | | Section or for allegedly violating this Section, any rule |
16 | | or regulation adopted under this Section, any permit or |
17 | | term or condition of a permit related to this Section, or |
18 | | any Board order issued pursuant to this Section. Any |
19 | | person shall have standing in an action under this Section |
20 | | before the Board. Any person may intervene as a party as a |
21 | | matter of right in any legal action concerning this |
22 | | Section, whichever the forum, if he or she is or may be |
23 | | adversely affected by any failure to perform any act or |
24 | | nondiscretionary duty under this Section or any alleged |
25 | | violation of this Section, any rule or regulation adopted |
26 | | under this Section, any permit or term or condition of a |
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1 | | permit, or any Board order, by any person, the State of |
2 | | Illinois, or any government official. |
3 | | (2) In an action brought pursuant to this Section, any |
4 | | person may request, and the Board or court may grant, |
5 | | injunctive relief, damages (including reasonable attorney |
6 | | and expert witness fees), and any other remedy available |
7 | | pursuant to Sections 33 or 42 of this Act. The Board or |
8 | | court may, if a temporary restraining order or preliminary |
9 | | injunction is sought, require the filing of a bond or |
10 | | equivalent security in accordance with the Illinois Code |
11 | | of Civil Procedure. |
12 | | (3) No existing civil or criminal remedy shall be |
13 | | excluded or impaired by this Section. This Section shall |
14 | | apply only to those electrical generating units
that are |
15 | | subject to the provisions of Subpart W of Part 217 of Title |
16 | | 35 of
the Illinois Administrative Code, as promulgated by |
17 | | the Illinois Pollution
Control Board on December 21, 2000.
|
18 | | (Source: P.A. 92-12, eff. 7-1-01; 92-279, eff. 8-7-01.)
|
19 | | (415 ILCS 5/9.18 new) |
20 | | Sec. 9.18. Energy community reinvestment fee. |
21 | | (a) As used in this Section: |
22 | | "Carbon dioxide equivalent" means a unit of measure |
23 | | denoting the amount of emissions from a greenhouse gas, |
24 | | expressed as the amount of carbon dioxide by weight that |
25 | | produces the same global warming impact. |
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1 | | "Fossil fuel generating plant" means an electric |
2 | | generating unit or a co-generating unit that produces |
3 | | electricity using fossil fuels. |
4 | | "Payment period" means the three-month period of time |
5 | | during which emissions are measured for the purpose of |
6 | | quarterly fee calculation. |
7 | | (b) The General Assembly finds and declares that: |
8 | | (1) the negative effects of fossil fuel-powered |
9 | | electric generating units on human health, environmental |
10 | | quality, and the climate of our planet require Illinois to |
11 | | swiftly retire all such plants and shift to 100% renewable |
12 | | energy; |
13 | | (2) communities located near fossil fuel-powered |
14 | | electric generating units have experienced these health |
15 | | and environmental impacts most acutely; |
16 | | (3) communities located near fossil fuel-powered |
17 | | electric generating units will also experience economic |
18 | | challenges as these plants retire; |
19 | | (4) the assessment of a fee on the emissions of fossil |
20 | | fuel generating plants will lower the exposure of |
21 | | surrounding communities to harmful air pollutants by |
22 | | providing incentive for fossil fuel generating plants to |
23 | | reduce emissions; |
24 | | (5) it is in the public interest that communities |
25 | | located near fossil fuel-fired electric generating plants |
26 | | should receive support in the form of economic |
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1 | | reinvestment, as recompense for the negative impacts of |
2 | | the operation of fossil fuel-fired electric generating |
3 | | plants, to invest in clean energy developments that reduce |
4 | | the cumulative impacts of air pollution thus protecting |
5 | | the public health, and as a means for creating new |
6 | | economic growth and opportunity which is needed when the |
7 | | plants retire; and |
8 | | (6) this support should be paid for by the owners and |
9 | | operators of fossil fuel-fired electric generating plants, |
10 | | the operation of which caused harm to the surrounding |
11 | | communities. |
12 | | (c) Calculation of the Energy Community Reinvestment Fee. |
13 | | The Agency shall establish procedures for the collection of |
14 | | energy community reinvestment fees. Energy community |
15 | | reinvestment fees shall be paid at least quarterly (once every |
16 | | 3 months) by owners of all fossil fuel generating plants in |
17 | | Illinois, based on the share of each plant's contribution to |
18 | | the total amount of air pollution emitted by all fossil fuel |
19 | | generating plants in that payment period, as determined by the |
20 | | Agency and described in this subsection (c). |
21 | | (1) Pollution Calculation. The energy community |
22 | | reinvestment fee shall be calculated to reflect the |
23 | | pollution burden from fossil fuel generating plants, based |
24 | | on the total emissions of greenhouse gases. The fee shall |
25 | | be calculated based solely on emissions of carbon dioxide, |
26 | | methane, and nitrous oxide measured in carbon dioxide |
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1 | | equivalent tons. The exclusive use of carbon dioxide, |
2 | | methane, and nitrous oxide in the calculation of the fee |
3 | | is designed to reflect the overall pollution impact from |
4 | | each fossil fuel generating plant by using these |
5 | | pollutants as a proximate measurement of overall |
6 | | emissions. |
7 | | (2) Fee Calculation. The Agency shall calculate the |
8 | | fee owed by each fossil fuel generating plant owner for |
9 | | each payment period by dividing (A) the total emissions of |
10 | | carbon dioxide equivalents in tons by each plant as |
11 | | described under paragraph (1) of this subsection (c) by |
12 | | (B) the total emissions of carbon dioxide equivalents in |
13 | | tons of all fossil fuel generating plants subject to the |
14 | | energy community reinvestment fee, and multiplying that |
15 | | figure by (C) the portion of the annual revenue |
16 | | requirements, established in subsection (d) of Section |
17 | | 5-70 of the Energy Community Reinvestment Act, for that |
18 | | payment period. |
19 | | (3) Right to Fee Reduction. The owner of each plant |
20 | | liable to pay the energy community reinvestment fee shall |
21 | | have the right to reduce its liability based on |
22 | | electricity production as described in this paragraph (3). |
23 | | If requested, the total amount owed each payment period |
24 | | for any plant shall be no greater than the total amount of |
25 | | kilowatt hours of electricity produced by the plant during |
26 | | the payment period multiplied by one cent per kilowatt |
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1 | | hour, adjusted for inflation from the year this Act takes |
2 | | effect. Upon request by a plant owner the Agency shall |
3 | | adjust the total amount owed for each payment period by |
4 | | the amount necessary to reflect a maximum cost calculated |
5 | | based on electricity production. |
6 | | (4) Notification by the Agency. The first payment |
7 | | period shall begin June 1, 2021. No later than September |
8 | | 1, 2021, and every 3 months thereafter on the first of the |
9 | | month, the Agency shall notify each fossil fuel generating |
10 | | plant owner of the fee calculated pursuant to paragraph |
11 | | (2) of this subsection (c) for the quarterly period just |
12 | | concluded. |
13 | | (5) Fee Collection. Plant owners shall remit payment |
14 | | of their fee to the Agency within 30 days after the close |
15 | | of each payment period, as established by the Agency. |
16 | | Funds collected from the energy community reinvestment fee |
17 | | shall be deposited into the Energy Community Reinvestment |
18 | | Fund. |
19 | | (d) Clean Energy Empowerment Zone Task Force involvement. |
20 | | If the Agency receives notification from the Department of |
21 | | Commerce and Economic Opportunity that a plant owner has |
22 | | failed to engage productively in stakeholder meetings and with |
23 | | Clean Energy Empowerment Zone Task Forces, as described in the |
24 | | Energy Community Reinvestment Act, an enforcement action may |
25 | | be brought under Section 31 of this Act. In addition to any |
26 | | other relief that may be obtained as part of the enforcement |
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1 | | action, the Agency may seek to recover the avoided engagement |
2 | | fees. The avoided engagement fees shall be calculated as |
3 | | double the amount that is owed by the plant owner under |
4 | | subsection (c) for the current payment period, and subsequent |
5 | | payment periods, until the Department of Commerce and Economic |
6 | | Opportunity sends notification to the Agency that the plant |
7 | | owner is in compliance with the stakeholder engagement |
8 | | requirements of the Energy Community Reinvestment Act. Avoided |
9 | | engagement fees (which, for clarity, are in addition to fees |
10 | | collected under subsection (c)) shall be deposited into the |
11 | | Energy Community Reinvestment Fund to be directed solely to |
12 | | support the local community's own planning efforts and |
13 | | investments, and the Agency shall transmit a notification to |
14 | | the Department of Commerce and Economic Opportunity of the |
15 | | amount collected, and the plant owner responsible. |
16 | | (e) If a plant owner subject to a fee under this Section |
17 | | fails to pay the fee within 90 days after its due date, or |
18 | | makes the fee payment from an account with insufficient funds |
19 | | to cover the amount of the fee payment, the Agency shall notify |
20 | | the plant owner of the failure to pay the fee. If the plant |
21 | | owner fails to pay the fee within 60 days after such |
22 | | notification, the Agency may, by written notice, immediately |
23 | | revoke the air pollution operating permit. Failure of the |
24 | | Agency to notify the plant owner of failure to pay a fee due |
25 | | under this Section, or the payment of the fee from an account |
26 | | with insufficient funds to cover the amount of the fee |
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1 | | payment, does not excuse or alter the duty of the plant owner |
2 | | to comply with the provisions of this Section. |
3 | | (f) No later than November 30 of each year, the Agency |
4 | | shall submit a report to the Department of Commerce and |
5 | | Economic Opportunity describing the amount of fees collected |
6 | | from each fossil fuel-powered electric generating unit, the |
7 | | status of any delinquencies, and the total amount expected to |
8 | | be collected. |
9 | | (g) Nothing in this Section shall be interpreted to mean |
10 | | that the sum owed by each fossil fuel generating plant due to |
11 | | the energy community reinvestment fee is equal to or greater |
12 | | than the financial valuation of the total harm created by air |
13 | | pollution from each plant. |
14 | | (h) Enforcement. |
15 | | (1) Any person may file with the Board a complaint, |
16 | | following the procedures contained in subsection (d) of |
17 | | Section 31 of this Act, against any person, the State of |
18 | | Illinois, or any government official for failure to |
19 | | perform any act or nondiscretionary duty under this |
20 | | Section or for allegedly violating this Section, any rule |
21 | | or regulation adopted under this Section, any permit or |
22 | | term or condition of a permit related to this Section, or |
23 | | any Board order issued pursuant to this Section. Any |
24 | | person shall have standing in an action under this Section |
25 | | before the Board. Any person may intervene as a party as a |
26 | | matter of right in any legal action concerning this |
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1 | | Section, whichever the forum, if he or she is or may be |
2 | | adversely affected by any failure to perform any act or |
3 | | nondiscretionary duty under this Section or any alleged |
4 | | violation of this Section, any rule or regulation adopted |
5 | | under this Section, any permit or term or condition of a |
6 | | permit, or any Board order, by any person, the State of |
7 | | Illinois, or any government official. Any person with |
8 | | standing to commence an action pursuant to subsection (e) |
9 | | of Section 9.10 shall have standing to pursue enforcement |
10 | | under this Section. |
11 | | (2) In an action brought pursuant to this Section, any |
12 | | person may request, and the Board or court may grant, |
13 | | injunctive relief, damages (including reasonable attorney |
14 | | and expert witness fees), and any other remedy available |
15 | | pursuant to Sections 33 or 42 of this Act. The Board or |
16 | | court may, if a temporary restraining order or preliminary |
17 | | injunction is sought, require the filing of a bond or |
18 | | equivalent security in accordance with the Illinois Code |
19 | | of Civil Procedure. |
20 | | (3) No existing civil or criminal remedy shall be |
21 | | excluded or impaired by this Section. |
22 | | (415 ILCS 5/9.15 rep.) |
23 | | Section 90-35. The Environmental Protection Act is amended |
24 | | by repealing Section 9.15. |
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1 | | Section 90-40. The Illinois Nuclear Facility Safety Act is |
2 | | amended by adding Section 10 as follows: |
3 | | (420 ILCS 10/10 new) |
4 | | Sec. 10. Local government nuclear impact fees. |
5 | | (a) As used in this Section: |
6 | | "Local taxing body" means any unit of government that |
7 | | assesses and collects property taxes. |
8 | | "Qualifying Nuclear Facility" means a facility playing or |
9 | | having played a direct role in the operation of commercial |
10 | | nuclear power reactors for the generation of electricity; |
11 | | including facilities used to process radioactive materials for |
12 | | nuclear fuel fabrication, nuclear power reactors, high-level |
13 | | and low-level radioactive waste treatment sites, and storage |
14 | | and disposal locations. |
15 | | "Qualifying Nuclear Operator" means any entity that |
16 | | operates or has in the past 50 years operated a Qualifying |
17 | | Nuclear Facility. |
18 | | (b) Notwithstanding any other provision of law to the |
19 | | contrary, any local taxing body may establish and collect an |
20 | | annual Nuclear Impact Fee from Qualifying Nuclear Facility |
21 | | within the boundaries of that local taxing body. |
22 | | (c) The Nuclear Impact Fee shall be charged to the |
23 | | Qualifying Nuclear Operator. |
24 | | (d) The Nuclear Impact Fee may only be applied |
25 | | prospectively on or after the effective date of this |
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1 | | amendatory Act of the 102nd General Assembly, and may not be |
2 | | applied retroactively to a date before which this amendatory |
3 | | Act is passed. |
4 | | (e) The Nuclear Impact Fee permission granted to local |
5 | | taxing bodies under these rules shall expire separately for |
6 | | each individual local taxing body. That date of expiration of |
7 | | the Nuclear Impact Fee permission for each local taxing body |
8 | | shall be either exactly 30 years after the effective date of |
9 | | this amendatory Act of the 102nd General Assembly, or 10 years |
10 | | following the permanent shutdown of the Qualifying Nuclear |
11 | | Facility from which the local taxing body collected property |
12 | | taxes, whichever date is later. |
13 | | (f) In any calendar year, a local taxing body may not |
14 | | impose a Nuclear Impact Fee that exceeds 25% of the average |
15 | | annual amount of property taxes, or payments in lieu of taxes, |
16 | | paid to that local taxing body by the Qualifying Nuclear |
17 | | Facility over the most recent 5-year period that the |
18 | | Qualifying Nuclear Facility has been operational. |
19 | | (g) Any failure by the Qualifying Nuclear Operator to pay |
20 | | a Nuclear Impact Fee within 180 days after the fee payment |
21 | | deadline shall be deemed a failure to comply, and shall |
22 | | automatically require the Qualifying Nuclear Operator to pay |
23 | | the Local Entity double the otherwise-allowable property |
24 | | taxes, up to 50% of the average annual amount of property taxes |
25 | | paid over the most recent 5-year period that the Qualifying |
26 | | Nuclear Facility was operational. |
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1 | | (h) To establish a Nuclear Impact Fee, the local taxing |
2 | | body shall adopt a resolution or ordinance describing the |
3 | | public need for economic transition, the annual amount of the |
4 | | fee, the Qualifying Nuclear Facility, the Qualifying Nuclear |
5 | | Operator to be assessed, and a description of projected |
6 | | expenses for the fee for the period the fee is in effect. The |
7 | | local taxing body shall conduct a public hearing before |
8 | | adopting a resolution or ordinance imposing a Nuclear Impact |
9 | | Fee permitted under this Section. The hearing shall be held |
10 | | within the boundaries of the local taxing body. Public notice |
11 | | of the time, place, and purpose of the hearing shall be given |
12 | | at least 10 business days before the date of the hearing. |
13 | | (i) A local taxing body shall include in its resolution or |
14 | | ordinance the method for collection of payment of a Nuclear |
15 | | Impact Fee. A county which has adopted a resolution or |
16 | | ordinance imposing a Nuclear Impact Fee may collect such Fees |
17 | | in the regular property tax bills of the county. The county |
18 | | collector of the county in which a local taxing body has |
19 | | adopted a resolution or ordinance imposing a Nuclear Impact |
20 | | Fee may bill and collect such Fees with the regular property |
21 | | tax bills of the county if requested by a local taxing body |
22 | | within its jurisdiction. |
23 | | (j) The revenue collected through the Nuclear Impact Fee |
24 | | by a local taxing body shall only be used for the purposes of |
25 | | supporting the "economic transition" of local communities that |
26 | | have experienced the closure of a Qualifying Nuclear Facility |
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1 | | or will experience a Qualifying Nuclear Facility in the |
2 | | future. "Economic transition" uses may include tax base |
3 | | replacement, workforce development, public school funding, |
4 | | essential public service, or sustainable infrastructure |
5 | | projects. |
6 | | (k) The revenue collected under this Section shall not be |
7 | | used either directly or indirectly to aid, subsidize, enact, |
8 | | support, or otherwise enable investment in any electricity |
9 | | generation infrastructure that processes or can process fossil |
10 | | or nuclear fuels. |
11 | | (l) No later than November 30 of each calendar year, each |
12 | | local taxing body collecting a Nuclear Impact Fee pursuant to |
13 | | this Section shall remit to the Department of Revenue for |
14 | | deposit in the Energy Community Reinvestment Fund 20% of the |
15 | | annual revenue collection from any Nuclear Impact Fees in |
16 | | order to help fund state programs that support economic |
17 | | transition and workforce development, showing such information |
18 | | as the Department of Revenue may reasonably require. |
19 | | (m) No later than November 30 of each calendar year, each |
20 | | local taxing body collecting a Nuclear Impact Fee pursuant to |
21 | | this Section shall submit to the Department of Commerce and |
22 | | Economic Opportunity and the Agency a report detailing the |
23 | | total amount of funds collected from any Nuclear Impact Fees, |
24 | | the planned expenditure of the funds, the coordination of |
25 | | expenditure with any Department economic transition activities |
26 | | and investments, copies of any adoption of or amendments to |