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1 | AMENDMENT TO HOUSE BILL 0621
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2 | AMENDMENT NO. ____ . Amend House Bill 0621 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Department of Commerce and Economic | ||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
6 | amended by changing
Section 605-332 as follows:
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7 | (20 ILCS 605/605-332)
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8 | Sec. 605-332. Financial assistance to energy generation | ||||||
9 | facilities.
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10 | (a) As used in this Section:
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11 | "New electric generating facility" means a | ||||||
12 | newly-constructed electric
generation plant or a newly | ||||||
13 | constructed generation capacity expansion at an
existing | ||||||
14 | facility, including the transmission lines and associated | ||||||
15 | equipment
that transfers electricity from points of supply to | ||||||
16 | points of delivery, and for
which foundation construction | ||||||
17 | commenced not sooner than July 1, 2001, which is
designed to | ||||||
18 | provide baseload electric generation operating on a continuous
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19 | basis throughout the year ; and :
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20 | (1)
which has an aggregate rated generating capacity
of | ||||||
21 | at
least 400 megawatts for all new units at one site, uses | ||||||
22 | coal or gases derived
from coal as its primary fuel
source, | ||||||
23 | and supports the creation of at least 150 new Illinois coal | ||||||
24 | mining
jobs ; or
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1 | (2) uses coal gasification or integrated | ||||||
2 | gasification-combined cycle
units that generate | ||||||
3 | electricity or chemicals, or both, and that supports the
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4 | creation of
Illinois
coal-mining jobs; or
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5 | (3) is a public utility that is owned and operated by | ||||||
6 | any political
subdivision or municipal corporation or that | ||||||
7 | is owned by such an entity and is
operated by any lessee or | ||||||
8 | any operating agent of that entity and that supports
the
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9 | creation of Illinois coal-mining jobs; or
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10 | (4) is owned in whole or in part by an electric | ||||||
11 | cooperative, as
defined
in Section 3.4 of the Electric | ||||||
12 | Supplier Act, and supports the creation of
Illinois
| ||||||
13 | coal-mining jobs; or
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14 | (5) is a State-owned facility and supports the creation | ||||||
15 | of
Illinois
coal-mining jobs .
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16 | "Eligible business" means an entity that proposes to | ||||||
17 | construct a new electric
generating facility and that has | ||||||
18 | applied to the Department to receive financial
assistance | ||||||
19 | pursuant to this Section.
With respect to use and occupation | ||||||
20 | taxes, wherever there is a reference to
taxes, that reference | ||||||
21 | means only those taxes paid on Illinois-mined coal used
in
a | ||||||
22 | new electric generating facility.
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23 | "Department" means the Illinois Department of Commerce and
| ||||||
24 | Economic Opportunity
Community Affairs .
| ||||||
25 | (b) The Department is authorized to
provide financial | ||||||
26 | assistance to eligible businesses for new electric generating
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27 | facilities from funds appropriated by the General Assembly as | ||||||
28 | further provided
in this Section.
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29 | An eligible business seeking qualification for financial | ||||||
30 | assistance for
a new electric generating facility, for purposes | ||||||
31 | of this Section only, shall
apply to the Department in the | ||||||
32 | manner specified by the Department. Any
projections provided by | ||||||
33 | an eligible business as part of the application shall
be | ||||||
34 | independently verified in a manner as set forth by the |
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1 | Department. An
application shall include, but not
be limited | ||||||
2 | to:
| ||||||
3 | (1) the projected or actual completion date of the new | ||||||
4 | electric
generating facility
for which financial | ||||||
5 | assistance is sought;
| ||||||
6 | (2) copies of documentation deemed
acceptable by the | ||||||
7 | Department establishing either (i) the total State
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8 | occupation
and use taxes paid on Illinois-mined coal used | ||||||
9 | at the new electric
generating facility for a minimum of 4 | ||||||
10 | preceding calendar quarters or (ii)
the projected amount of | ||||||
11 | State occupation and use taxes paid on Illinois-mined
coal | ||||||
12 | used at the new electric generating facility in 4 calendar | ||||||
13 | year quarters
after completion of the new electric | ||||||
14 | generating facility.
Bond proceeds subject to this Section | ||||||
15 | shall not be allocated to an
eligible business until the | ||||||
16 | eligible business has demonstrated the revenue
stream | ||||||
17 | sufficient to service the debt on the bonds; and
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18 | (3) the actual or projected amount of capital | ||||||
19 | investment by the
eligible business
in the new electric | ||||||
20 | generating facility.
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21 | The Department shall determine the maximum amount of | ||||||
22 | financial
assistance for eligible businesses in accordance | ||||||
23 | with this paragraph. The
Department shall not provide financial | ||||||
24 | assistance from general obligation bond
funds to any eligible | ||||||
25 | business
unless it receives a written certification from the | ||||||
26 | Director of the
Bureau of
the Budget
(now Governor's Office of | ||||||
27 | Management and Budget)
that 80% of the State occupation and use | ||||||
28 | tax receipts for a minimum
of the
preceding 4 calendar quarters | ||||||
29 | for all eligible businesses or as included in
projections on | ||||||
30 | approved applications by eligible businesses equal or exceed
| ||||||
31 | 110% of the maximum annual debt service required with respect | ||||||
32 | to general
obligation bonds issued for that purpose. The | ||||||
33 | Department may provide
financial assistance not to exceed the | ||||||
34 | amount of State general obligation
debt calculated as above, |
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1 | the amount of actual or projected capital
investment in the | ||||||
2 | energy
generation facility, or $100,000,000, whichever is | ||||||
3 | less.
Financial assistance received pursuant to this Section | ||||||
4 | may be used
for capital facilities consisting of buildings, | ||||||
5 | structures, durable equipment,
and land at the new electric | ||||||
6 | generating facility. Subject to the provisions
of the agreement | ||||||
7 | covering the financial assistance, a portion of the financial
| ||||||
8 | assistance may be required to be repaid to the State if certain | ||||||
9 | conditions for
the governmental purpose of the assistance were | ||||||
10 | not met.
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11 | An eligible business shall file a monthly report with the
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12 | Illinois Department of Revenue stating the amount of | ||||||
13 | Illinois-mined coal
purchased during
the previous month for use | ||||||
14 | in the new electric generating facility, the
purchase price of | ||||||
15 | that coal, the amount of State
occupation and use taxes paid on | ||||||
16 | that purchase to the seller of the
Illinois-mined coal, and
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17 | such other
information as that Department may reasonably | ||||||
18 | require. In sales of
Illinois-mined coal between related | ||||||
19 | parties, the purchase price of the coal
must have been | ||||||
20 | determined in an arms-length transaction. The report shall be
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21 | filed with the Illinois Department of Revenue on or before the | ||||||
22 | 20th day of
each month on a form provided by that Department. | ||||||
23 | However, no report
need be filed by an eligible business in a | ||||||
24 | month when it made
no reportable purchases of coal in the | ||||||
25 | previous month.
The Illinois Department of Revenue shall | ||||||
26 | provide a summary of such reports to
the
Governor's Office of | ||||||
27 | Management and Budget
Bureau of the Budget .
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28 | Upon granting financial assistance to an eligible | ||||||
29 | business, the Department
shall certify the name of the eligible | ||||||
30 | business to the Illinois Department of
Revenue. Beginning with | ||||||
31 | the receipt of the first report of State occupation
and use | ||||||
32 | taxes paid by an
eligible business and continuing for a 25-year | ||||||
33 | period, the Illinois Department
of Revenue shall each month pay | ||||||
34 | into the Energy Infrastructure Fund 80% of the
net revenue |
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1 | realized from the 6.25% general rate on the selling price of
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2 | Illinois-mined coal that was sold to an eligible business.
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3 | (Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; revised | ||||||
4 | 8-23-03.)
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5 | Section 10. The Illinois Enterprise Zone Act is amended by | ||||||
6 | changing
Section 5.5 as follows:
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7 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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8 | Sec. 5.5. High Impact Business.
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9 | (a) In order to respond to unique opportunities to assist | ||||||
10 | in the
encouragement, development, growth and expansion of the | ||||||
11 | private sector through
large scale investment and development | ||||||
12 | projects, the Department is authorized
to receive and approve | ||||||
13 | applications for the designation of "High Impact
Businesses" in | ||||||
14 | Illinois subject to the following conditions:
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15 | (1) such applications may be submitted at any time | ||||||
16 | during the year;
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17 | (2) such business is not located, at the time of | ||||||
18 | designation, in
an enterprise zone designated pursuant to | ||||||
19 | this Act;
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20 | (3) (A) the business intends to make a minimum | ||||||
21 | investment of
$12,000,000 which will be placed in | ||||||
22 | service in qualified property and
intends to create 500 | ||||||
23 | full-time equivalent jobs at a designated location
in | ||||||
24 | Illinois or intends to make a minimum investment of | ||||||
25 | $30,000,000 which
will be placed in service in | ||||||
26 | qualified property and intends to retain 1,500
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27 | full-time jobs at a designated location in Illinois.
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28 | The business must certify in writing that the | ||||||
29 | investments would not be
placed in service in qualified | ||||||
30 | property and the job creation or job
retention would | ||||||
31 | not occur without the tax credits and exemptions set | ||||||
32 | forth
in subsection (b) of this Section. The terms |
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1 | "placed in service" and
"qualified property" have the | ||||||
2 | same meanings as described in subsection (h)
of Section | ||||||
3 | 201 of the Illinois Income Tax Act; or
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4 | (B) the business intends to establish a new | ||||||
5 | electric generating
facility at a designated location | ||||||
6 | in Illinois. "New electric generating
facility" , for | ||||||
7 | purposes of this Section , means a newly-constructed
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8 | electric
generation plant
or a newly-constructed | ||||||
9 | generation capacity expansion at an existing electric
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10 | generation
plant, including the transmission lines and | ||||||
11 | associated
equipment that transfers electricity from | ||||||
12 | points of supply to points of
delivery, and for which | ||||||
13 | such new foundation construction commenced not sooner
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14 | than July 1,
2001. Such facility shall be designed to | ||||||
15 | provide baseload electric
generation and shall operate | ||||||
16 | on a continuous basis throughout the year;
and shall | ||||||
17 | have an aggregate rated generating capacity of at least | ||||||
18 | 1,000
megawatts for all new units at one site if it | ||||||
19 | uses natural gas as its primary
fuel and foundation | ||||||
20 | construction of the facility is commenced on
or before | ||||||
21 | December 31, 2004, or shall have an aggregate rated | ||||||
22 | generating
capacity of at least 400 megawatts for all | ||||||
23 | new units at one site if it uses
coal or gases derived | ||||||
24 | from coal
as its primary fuel and
shall support the | ||||||
25 | creation of at least 150 new Illinois coal mining jobs , | ||||||
26 | or
shall use coal gasification or integrated | ||||||
27 | gasification-combined cycle units
that generate
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28 | electricity or chemicals, or both, and shall support | ||||||
29 | the creation of Illinois
coal-mining
jobs, or shall be | ||||||
30 | a
public utility that is owned and operated by any | ||||||
31 | political subdivision or
municipal
corporation or that | ||||||
32 | is owned by such an entity and operated by any lessee | ||||||
33 | or
any
operating agent of that entity and supports the | ||||||
34 | creation of Illinois
coal-mining jobs, or shall be
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1 | owned in whole or in part by an electric cooperative, | ||||||
2 | as defined in Section 3.4
of the
Electric Supplier Act, | ||||||
3 | and support the creation of Illinois coal-mining jobs,
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4 | or shall be a
State-owned facility and supports the | ||||||
5 | creation of Illinois coal mining jobs .
The
business | ||||||
6 | must certify in writing that the investments necessary | ||||||
7 | to establish
a new electric generating facility would | ||||||
8 | not be placed in service and the
job creation in the | ||||||
9 | case of a coal-fueled plant
would not occur without the | ||||||
10 | tax credits and exemptions set forth in
subsection | ||||||
11 | (b-5) of this Section. The term "placed in service" has
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12 | the same meaning as described in subsection
(h) of | ||||||
13 | Section 201 of the Illinois Income Tax Act; or
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14 | (C) the business intends to establish
production | ||||||
15 | operations at a new coal mine, re-establish production | ||||||
16 | operations at
a closed coal mine, or expand production | ||||||
17 | at an existing coal mine
at a designated location in | ||||||
18 | Illinois not sooner than July 1, 2001;
provided that | ||||||
19 | the
production operations result in the creation of 150 | ||||||
20 | new Illinois coal mining
jobs as described in | ||||||
21 | subdivision (a)(3)(B) of this Section, and further
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22 | provided that the coal extracted from such mine is | ||||||
23 | utilized as the predominant
source for a new electric | ||||||
24 | generating facility.
The business must certify in | ||||||
25 | writing that the
investments necessary to establish a | ||||||
26 | new, expanded, or reopened coal mine would
not
be | ||||||
27 | placed in service and the job creation would not
occur | ||||||
28 | without the tax credits and exemptions set forth in | ||||||
29 | subsection (b-5) of
this Section. The term "placed in | ||||||
30 | service" has
the same meaning as described in | ||||||
31 | subsection (h) of Section 201 of the
Illinois Income | ||||||
32 | Tax Act; or
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33 | (D) the business intends to construct new | ||||||
34 | transmission facilities or
upgrade existing |
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1 | transmission facilities at designated locations in | ||||||
2 | Illinois,
for which construction commenced not sooner | ||||||
3 | than July 1, 2001. For the
purposes of this Section, | ||||||
4 | "transmission facilities" means transmission lines
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5 | with a voltage rating of 115 kilovolts or above, | ||||||
6 | including associated
equipment, that transfer | ||||||
7 | electricity from points of supply to points of
delivery | ||||||
8 | and that transmit a majority of the electricity | ||||||
9 | generated by a new
electric generating facility | ||||||
10 | designated as a High Impact Business in accordance
with | ||||||
11 | this Section. The business must certify in writing that | ||||||
12 | the investments
necessary to construct new | ||||||
13 | transmission facilities or upgrade existing
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14 | transmission facilities would not be placed in service
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15 | without the tax credits and exemptions set forth in | ||||||
16 | subsection (b-5) of this
Section. The term "placed in | ||||||
17 | service" has the
same meaning as described in | ||||||
18 | subsection (h) of Section 201 of the Illinois
Income | ||||||
19 | Tax Act; and
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20 | (4) no later than 90 days after an application is | ||||||
21 | submitted, the
Department shall notify the applicant of the | ||||||
22 | Department's determination of
the qualification of the | ||||||
23 | proposed High Impact Business under this Section.
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24 | (b) Businesses designated as High Impact Businesses | ||||||
25 | pursuant to
subdivision (a)(3)(A) of this Section shall qualify | ||||||
26 | for the credits and
exemptions described in the
following Acts: | ||||||
27 | Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
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28 | subsection (h)
of Section 201 of the Illinois Income Tax Act , ;
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29 | and , Section 1d of
the
Retailers' Occupation Tax Act ; , provided | ||||||
30 | that these credits and
exemptions
described in these Acts shall | ||||||
31 | not be authorized until the minimum
investments set forth in | ||||||
32 | subdivision (a)(3)(A) of this
Section have been placed in
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33 | service in qualified properties and, in the case of the | ||||||
34 | exemptions
described in the Public Utilities Act and Section 1d |
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1 | of the Retailers'
Occupation Tax Act, the minimum full-time | ||||||
2 | equivalent jobs or full-time jobs set
forth in subdivision | ||||||
3 | (a)(3)(A) of this Section have been
created or retained.
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4 | Businesses designated as High Impact Businesses under
this | ||||||
5 | Section shall also
qualify for the exemption described in | ||||||
6 | Section 5l of the Retailers' Occupation
Tax Act. The credit | ||||||
7 | provided in subsection (h) of Section 201 of the Illinois
| ||||||
8 | Income Tax Act shall be applicable to investments in qualified | ||||||
9 | property as set
forth in subdivision (a)(3)(A) of this Section.
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10 | (b-5) Businesses designated as High Impact Businesses | ||||||
11 | pursuant to
subdivisions (a)(3)(B), (a)(3)(C), and (a)(3)(D) | ||||||
12 | of this Section shall qualify
for the credits and exemptions | ||||||
13 | described in the following Acts: Section 51 of
the Retailers' | ||||||
14 | Occupation Tax Act, Section 9-222 and Section 9-222.1A of the
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15 | Public Utilities Act, and subsection (h) of Section 201 of the | ||||||
16 | Illinois Income
Tax Act; however, the credits and exemptions | ||||||
17 | authorized under Section 9-222 and
Section 9-222.1A of the | ||||||
18 | Public Utilities Act, and subsection (h) of Section 201
of the | ||||||
19 | Illinois Income Tax Act shall not be authorized until the new | ||||||
20 | electric
generating facility, the new transmission facility, | ||||||
21 | or the new, expanded, or
reopened coal mine is operational,
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22 | except that a new electric generating facility whose primary | ||||||
23 | fuel source is
natural gas is eligible only for the exemption | ||||||
24 | under Section 5l of the
Retailers' Occupation Tax Act.
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25 | (c) High Impact Businesses located in federally designated | ||||||
26 | foreign trade
zones or sub-zones are also eligible for | ||||||
27 | additional credits, exemptions and
deductions as described in | ||||||
28 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
29 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
30 | Section 203
of the Illinois Income Tax Act.
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31 | (d) Existing Illinois businesses which apply for | ||||||
32 | designation as a
High Impact Business must provide the | ||||||
33 | Department with the prospective plan
for which 1,500 full-time | ||||||
34 | jobs would be eliminated in the event that the
business is not |
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1 | designated.
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2 | (e) New proposed facilities which apply for designation as | ||||||
3 | High Impact
Business must provide the Department with proof of | ||||||
4 | alternative non-Illinois
sites which would receive the | ||||||
5 | proposed investment and job creation in the
event that the | ||||||
6 | business is not designated as a High Impact Business.
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7 | (f) In the event that a business is designated a High | ||||||
8 | Impact Business
and it is later determined after reasonable | ||||||
9 | notice and an opportunity for a
hearing as provided under the | ||||||
10 | Illinois Administrative Procedure Act, that
the business would | ||||||
11 | have placed in service in qualified property the
investments | ||||||
12 | and created or retained the requisite number of jobs without
| ||||||
13 | the benefits of the High Impact Business designation, the | ||||||
14 | Department shall
be required to immediately revoke the | ||||||
15 | designation and notify the Director
of the Department of | ||||||
16 | Revenue who shall begin proceedings to recover all
wrongfully | ||||||
17 | exempted State taxes with interest. The business shall also be
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18 | ineligible for all State funded Department programs for a | ||||||
19 | period of 10 years.
| ||||||
20 | (g) The Department shall revoke a High Impact Business | ||||||
21 | designation if
the participating business fails to comply with | ||||||
22 | the terms and conditions of
the designation.
| ||||||
23 | (h) Prior to designating a business, the Department shall | ||||||
24 | provide the
members of the General Assembly and Illinois | ||||||
25 | Economic and Fiscal Commission
with a report setting forth the | ||||||
26 | terms and conditions of the designation and
guarantees that | ||||||
27 | have been received by the Department in relation to the
| ||||||
28 | proposed business being designated.
| ||||||
29 | (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01; revised | ||||||
30 | 3-7-02.)".
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