SB2141 94TH GENERAL ASSEMBLY

LRB094 14435 BDD 49368 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2141

Introduced 10/26/2005, by Sen. Dale A. Righter

SYNOPSIS AS INTRODUCED:

35 ILCS 10/5-25

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that an Applicant for the tax credit under the Act may demonstrate that the project would not occur in Illinois by presenting evidence that the Applicant, currently located in the State, is in competition for production or for a contract to provide goods or services to a vendee who has the option of awarding the production or contract, instead, to a vendor in another state.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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 changing Section 5-25 as follows:

(35 ILCS 10/5-25)

Sec. 5-25. Review of Application.

(a) In addition to those duties granted under the Illinois Economic Development Board Act, the Illinois Economic Development Board shall form a Business Investment Committee for the purpose of making recommendations for applications. At the request of the Board, the Director of Commerce and Economic Opportunity Community Affairs or his or her designee, the Director of the Governor's Office of Management and Budget Bureau of the Budget or his or her designee, the Director of Revenue or his or her designee, the Director of Employment Security or his or her designee, and an elected official of the affected locality, such as the chair of the county board or the mayor, may serve as members of the Committee to assist with its analysis and deliberations.

(b) At the Department's request, the Committee shall convene, make inquiries, and conduct studies in the manner and by the methods as it deems desirable, review information with respect to Applicants, and make recommendations for projects to benefit the State. In making its recommendation that an Applicant's application for Credit should or should not be accepted, which shall occur within a reasonable time frame as determined by the nature of the application, the Committee shall determine that all the following conditions exist:

(1) The Applicant's project intends, as required by subsection (b) of Section 5-20 to make the required investment in the State and intends to hire the required number of New Employees in Illinois as a result of that project.

(2) The Applicant's project is economically sound and will benefit the people of the State of Illinois by increasing opportunities for employment and strengthen the economy of Illinois.

(3) That, if not for the Credit, the project would not occur in Illinois, which may be demonstrated by any means including, but not limited to: ,

(A) evidence the Applicant has multi-state location options and could reasonably and efficiently locate outside of the State; , or

(B) a demonstration that at least one other state is being considered for the project; , or

(C) evidence that the receipt of the Credit is a major factor in the Applicant's decision and that, without the Credit, the Applicant likely would not create new jobs in Illinois; , or

(D) evidence that the Applicant, currently located in the State, is in competition for production or for a contract to provide goods or services to a vendee who has the option of awarding the production or contract, instead, to a vendor in another state; or

(E) a demonstration that receiving the Credit is essential to the Applicant's decision to create or retain new jobs in the State.

(4) A cost differential is identified, using best available data, in the projected costs for the Applicant's project compared to the costs in the competing state, including the impact of the competing state's incentive programs. The competing state's incentive programs shall include state, local, private, and federal funds available.

(5) The political subdivisions affected by the project have committed local incentives with respect to the project, considering local ability to assist.

(6) Awarding the Credit will result in an overall positive fiscal impact to the State, as certified by the Committee using the best available data.

(7) The Credit is not prohibited by Section 5-35 of this Act.

(Source: P.A. 91-476, eff. 8-11-99; revised 8-23-03.)