HB4991 93RD GENERAL ASSEMBLY

LRB093 15931 SJM 46411 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4991

Introduced 02/05/04, by Donald L. Moffitt

SYNOPSIS AS INTRODUCED:

35 ILCS 10/5-16 new

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that in lieu of an income tax credit, an applicant may opt to receive economic development incentive payments under the Act. Defines "applicant" as any employer located or that plans to locate in Illinois. Provides that for each new employee, the applicant shall receive an incentive payment equal to or greater than the incremental income tax for that employee, as determined by the Department of Commerce and Community Affairs. Provides that, in addition, the applicant shall receive a supplemental incentive payment, in an amount determined by the Department, if the applicant provides health benefits for the new employees. Provides that agreements for the payments may last up to 10 years and that payments shall be made on a quarterly basis. Requires application for the payments on or before December 31, 2008. Requires the Department to report each January 1 to the Governor and the General Assembly on the progress of the incentive payment program. Effective January 1, 2005.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning economic development.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Economic Development for a Growing Economy Tax Credit Act is amended by adding Section 5-16 as follows:

(35 ILCS 10/5-16 new)

Sec. 5-16. Economic development incentive payments.

(a) In lieu of an income tax credit as provided under Section 5-15, an applicant may opt to receive economic development incentive payments under this Act.

(b) For purposes of this Section, "applicant" means any employer located or that plans to locate in Illinois.

(c) Notwithstanding any provision to the contrary under this Act, an applicant is not required to meet a minimum threshold for the amount invested or the number of new employees hired to be eligible to receive incentive payments under this Section. Incentive payments shall instead be related to the number of new employees. For each new employee, the applicant shall receive an incentive payment equal to or greater than the incremental income tax for that employee, as determined by the Department. In addition, the applicant shall receive a supplemental incentive payment, in an amount determined by the Department, if the applicant provides health benefits for the new employees. The amount of the supplemental incentive payment shall be related to the cost and value of the health benefits provided by the applicant.

(d) An agreement to provide economic development incentive payments under this Section shall be entered into in the same manner as agreements for income tax credits under this Act, to the extent possible, and in conformance with the requirements of this Section. Incentive payment agreements under this Section shall be entered into for a period not to exceed 10 years, with incentive payments to be made by the Department in quarterly installments throughout the agreement period. To qualify to enter into an agreement for economic development incentive payments an applicant must file an application with the Department on or before December 31, 2008.

(e) The Department shall file annual reports with General Assembly and the Governor on or before January 1 each year concerning the progress of the economic development incentive payment program.

(f) All provisions of this Act not in conflict with this Section govern the economic development incentive payments.

Section 99. Effective date. This Act takes effect January 1, 2005.