HB4189ham001 97TH GENERAL ASSEMBLY

Rep. John E. Bradley

Filed: 3/30/2012

09700HB4189ham001 LRB097 15180 HLH 68227 a

AMENDMENT TO HOUSE BILL 4189

AMENDMENT NO. ______. Amend House Bill 4189 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Enterprise Zone Act is amended by changing Sections 3, 4, 5.2, 5.3, and 5.4 and by adding Sections 5.2.1, 8.1, and 8.2 as follows:

(20 ILCS 655/3) (from Ch. 67 1/2, par. 603)

Sec. 3. Definition. As used in this Act, the following words shall have the meanings ascribed to them, unless the context otherwise requires:

(a) "Department" means the Department of Commerce and Economic Opportunity.

(b) "Enterprise Zone" means an area of the State certified by the Department as an Enterprise Zone pursuant to this Act.

(c) "Depressed Area" means an area in which pervasive poverty, unemployment and economic distress exist.

(d) "Designated Zone Organization" means an association or entity: (1) the members of which are substantially all residents of the Enterprise Zone; (2) the board of directors of which is elected by the members of the organization; (3) which satisfies the criteria set forth in Section 501(c) (3) or 501(c) (4) of the Internal Revenue Code; and (4) which exists primarily for the purpose of performing within such area or zone for the benefit of the residents and businesses thereof any of the functions set forth in Section 8 of this Act.

(e) "Agency" means each officer, board, commission and agency created by the Constitution, in the executive branch of State government, other than the State Board of Elections; each officer, department, board, commission, agency, institution, authority, university, body politic and corporate of the State; and each administrative unit or corporate outgrowth of the State government which is created by or pursuant to statute, other than units of local government and their officers, school districts and boards of election commissioners; each administrative unit or corporate outgrowth of the above and as may be created by executive order of the Governor. No entity shall be considered an "agency" for the purposes of this Act unless authorized by law to make rules or regulations.

(f) "Rule" means each agency statement of general applicability that implements, applies, interprets or prescribes law or policy, but does not include (i) statements concerning only the internal management of an agency and not affecting private rights or procedures available to persons or entities outside the agency, (ii) intra-agency memoranda, or (iii) the prescription of standardized forms.

(g) "Board" means the Enterprise Zone Board created in Section 5.2.1.

(Source: P.A. 94-793, eff. 5-19-06.)

(20 ILCS 655/4) (from Ch. 67 1/2, par. 604)

Sec. 4. Qualifications for Enterprise Zones. (1) An area is qualified to become an enterprise zone which:

(a) is a contiguous area, provided that a zone area may exclude wholly surrounded territory within its boundaries;

(b) comprises a minimum of one-half square mile and not more than 12 square miles, or 15 square miles if the zone is located within the jurisdiction of 4 or more counties or municipalities, in total area, exclusive of lakes and waterways; however, in such cases where the enterprise zone is a joint effort of three or more units of government, or two or more units of government if situated in a township which is divided by a municipality of 1,000,000 or more inhabitants, and where the certification has been in effect at least one year, the total area shall comprise a minimum of one-half square mile and not more than thirteen square miles in total area exclusive of lakes and waterways;

(c) (blank); is a depressed area;

(d) (blank); satisfies any additional criteria established by regulation of the Department consistent with the purposes of this Act; and

(e) is (1) entirely within a municipality or (2) entirely within the unincorporated areas of a county, except where reasonable need is established for such zone to cover portions of more than one municipality or county or (3) both comprises (i) all or part of a municipality and (ii) an unincorporated area of a county; and .

(f) meets at least 3 out of 5 of the following requirements:

(1) the proposed enterprise zone has an annual average unemployment rate of at least 120% of the State's annual average unemployment rate for either the most recent calendar year or the most recent State fiscal year period for which data is available, as reported by the Department of Employment Security;

(2) the poverty rate for each census tract, minor civil division, or county civil division that contains any part of the area proposed as an enterprise zone was at least 20% calculated using the latest federal decennial census;

(3) at least 70% of the households in the proposed enterprise zone have incomes equal to or less than 80% of the median household income of next largest geographic unit in which the enterprise zone is located;

(4) the proposed enterprise zone suffered a population decrease of 20% or more between 2000 and 2010, or as determined by the most recent decennial federal census data; or

(5) designation as an enterprise zone will result in the development of substantial employment opportunities by creating or retaining a minimum of 1,000 full-time equivalent jobs due to an investment of $100 million or more, and help alleviate the effects of poverty and unemployment within the zone or in the vicinity of the zone; this item (5) is subject to performance reviews by the Board, and the enterprise zone will be subject to decertification under Section 5.4 of this Act if job and investment targets are not met.

(2) Any criteria established by the Department or by law which utilize the rate of unemployment for a particular area shall provide that all persons who are not presently employed and have exhausted all unemployment benefits shall be considered unemployed, whether or not such persons are actively seeking employment.

(Source: P.A. 86-803.)

(20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)

Sec. 5.2. Department Review of Enterprise Zone Applications. (a) All applications which are to be considered and acted upon by the Department during a calendar year must be received by the Department no later than December 31 of the preceding calendar year.

Any application received on or after January 1 of any calendar year shall be held by the Department for consideration and action during the following calendar year.

(b) Upon receipt of an application from a county or municipality the Department shall review the application to determine whether the designated area qualifies as an enterprise zone under Section 4 of this Act.

(b-5) If an area is qualified under Section 4, the Department shall then assign a score to each qualified area using the following scoring system.

(1) Five points shall be given for an area that meets the unemployment requirement under item (1) of subsection (f) of Section 4 of this Act.

(2) Five points shall be given for an area that meets the poverty level requirement under item (2) of subsection (f) of Section 4 of this Act.

(3) Five points shall be given for an area that meets the household income requirement under item (3) of subsection (f) of Section 4 of this Act.

(4) Five points shall be given for an area that meets the population decrease requirement under item (4) of subsection (f) of Section 4 of this Act.

(5) Five points shall be given for an area that meets the employment development requirement under item (5) of subsection (f) of Section 4 of this Act.

(6) Four points shall be given for a proposed enterprise zone area in which 70% or more of children in that area participate in the federal free lunch program.

(7) Four points shall be given for a proposed enterprise zone area in which 10% or more of the housing units are vacant.

(8) Three points shall be given for a proposed enterprise zone area in which the area has a demonstrated floor area vacancy rate for industrial and commercial properties of 20% or more.

(9) Three points shall be given for a proposed enterprise zone area in which 20% or more of households receive food stamps or participate in the Federal Supplemental Nutrition Assistance Program (SNAP) according to the latest federal census.

(10) Three points shall be given for a proposed enterprise zone area in which a brownfield, as defined under Section 58.2 of the Environmental Protection Act, is located.

(11) Three points shall be given for a proposed enterprise zone area in which an abandoned coal mine is located on the date of application.

If a proposed enterprise zone area scores at least 20 points, the Department shall declare the area as qualified for review by the Board. If a proposed enterprise zone area scores fewer than 20 points, the proposed area is not qualified for review by the Board and is not qualified for designation.

(c) No later than May 1, the Department shall notify all applicant municipalities and counties of the Department's determination of the qualification of their respective designated enterprise zone areas, and shall notify the applicant when the application for an enterprise zone has been sent to the Board for further review and determination.

(c-5) In addition to the notification of counties and municipalities, the Department shall, no later than May 1 of each year, transmit the determinations on the proposed zone applications, along with any materials included in the applications by the applicant, to the members of the Senate Revenue Committee and the members of the House Revenue Committee. The General Assembly may, by joint resolution, make recommendations to the Board.

(d) If any such designated area is found to be qualified to be an enterprise zone, the Department shall, no later than May 15, publish a notice in at least one newspaper of general circulation within the proposed zone area to notify the general public of the application and their opportunity to comment. Such notice shall include a description of the area and a brief summary of the application and shall indicate locations where the applicant has provided copies of the application for public inspection. The notice shall also indicate appropriate procedures for the filing of written comments from zone residents, business, civic and other organizations and property owners to the Department.

(e) (Blank). By July 1 of each calendar year, the Department shall either approve or deny all applications filed by December 31 of the preceding calendar year. If approval of an application filed by December 31 of any calendar year is not received by July 1 of the following calendar year, the application shall be considered denied. If an application is denied, the Department shall inform the county or municipality of the specific reasons for the denial.

(f) (Blank). Preference in Designation. In determining which designated areas shall be approved and certified as Enterprise Zones, the Department shall give preference to:

(1) Areas with high levels of poverty, unemployment, job and population loss, and general distress; and

(2) Areas which have evidenced with widest support from the county or municipality seeking to have such areas designated as Enterprise Zones, community residents, local business, labor and neighborhood organizations and where there are plans for the disposal of publicly owned real property as described in Section 10; and

(3) Areas for which a specific plan has been submitted to effect economic growth and expansion and neighborhood revitalization for the benefit of Zone residents and existing business through efforts which may include but need not be limited to a reduction of tax rates or fees, an increase in the level and efficiency of local services, and a simplification or streamlining of governmental requirements applicable to employers or employees, taking into account the resources available to the county or municipality seeking to have an area designated as an Enterprise Zone to make such efforts; and

(4) Areas for which there is evidence of prior consultation between the county or municipality seeking designation of an area as an Enterprise Zone and business, labor and neighborhood organizations within the proposed Zone;

(5) Areas for which a specific plan has been submitted which will or may be expected to benefit zone residents and workers by increasing their ownership opportunities and participation in enterprise zone development;

(6) Areas in which specific governmental functions are to be performed by designated neighborhood organizations in partnership with the county or municipality seeking designation of an area as an Enterprise Zone.

(g) (Blank). At least 2/5 of all new enterprise zones approved and certified by the Department during any calendar year shall be located wholly or partially within counties with unemployment rates of or above 8% for at least one month during the 12-month calendar year preceding the calendar year in which the applications are to be considered and acted upon by the Department.

(h) (Blank). The Department's determination of whether to certify an enterprise zone shall be based on the purposes of this Act, the criteria set forth in Section 4 and subsections (f) and (g) of Section 5.2, and any additional criteria adopted by regulation of the Department under paragraph (d) of Section 4.

(Source: P.A. 85-870.)

(20 ILCS 655/5.2.1 new)

Sec. 5.2.1. Enterprise Zone Board.

(a) An Enterprise Zone Board consisting of 6 members is hereby created within the Department. The Board shall consist of one individual appointed by each executive branch constitutional officer. Members of the Board shall serve at the pleasure of the appointing authority. Board members shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties.

(b) Beginning in 2013 and each year thereafter, by July 1 of each calendar year, the Board shall either approve or deny all applications filed by December 31 of the preceding calendar year. If an application filed by December 31 of any calendar year is not approved by July 1 of the following calendar year, the application shall be considered denied. If an application is denied, the Board shall inform the county or municipality of the specific reasons for the denial.

(c) In determining which designated areas shall be approved and certified as enterprise zones, the Board shall give preference to:

(1) areas with high levels of poverty, unemployment, job and population loss, and general distress; and

(2) areas which have demonstrated evidence of the widest support from (i) the county or municipality seeking to have the area designated as an enterprise zone, (ii) community residents, (iii) local business, and (iv) labor and neighborhood organizations;

(3) areas where there are plans for the disposal of publicly owned real property as described in Section 10;

(4) areas for which a specific plan has been submitted to effect economic growth and expansion and neighborhood revitalization for the benefit of zone residents and existing business through efforts which may include, but need not be limited to, a reduction of tax rates or fees, an increase in the level and efficiency of local services, and a simplification or streamlining of governmental requirements applicable to employers or employees, taking into account the resources available to the county or municipality seeking to have an area designated as an enterprise zone;

(5) areas for which there is evidence of prior consultation between the county or municipality seeking designation of an area as an enterprise zone and business, labor and neighborhood organizations within the proposed zone;

(6) areas for which a specific plan has been submitted which will or may be expected to benefit zone residents and workers by increasing their ownership opportunities and participation in enterprise zone development; and

(7) areas in which specific governmental functions are to be performed by designated neighborhood organizations in partnership with the county or municipality seeking designation of an area as an enterprise zone.

(d) At least two-fifths of all new enterprise zones approved by the Board and certified by the Department during any calendar year shall be located wholly or partially within counties with unemployment rates of or above 8% for at least one month during the 12-month calendar year preceding the calendar year in which the applications are to be considered and acted upon by the Department.

(e) The Board's determination of whether to approve certification by the Department for an enterprise zone shall be based on the purposes of this Act, together with the criteria set forth in Section 4 and subsections (b) and (c) of this Section.

(f) Immediately after the Board's decision of whether the Department shall issue a certification for an enterprise zone, the Board will report that decision to the Department.

(g) The Board is not, at any time, required to designate an enterprise zone.

(h) As used in this Section, "executive branch constitutional officer" means the Governor, Lieutenant Governor, Attorney General, Secretary of State, Comptroller, and Treasurer.

(20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)

Sec. 5.3. Certification of Enterprise Zones; Effective date.

(a) Approval of designated Enterprise Zones shall be made by the Department by certification of the designating ordinance. The Department shall promptly issue a certificate for each Enterprise Zone upon its approval. The certificate shall be signed by the Director of the Department, shall make specific reference to the designating ordinance, which shall be attached thereto, and shall be filed in the office of the Secretary of State. A certified copy of the Enterprise Zone Certificate, or a duplicate original thereof, shall be recorded in the office of recorder of deeds of the county in which the Enterprise Zone lies.

(b) An Enterprise Zone shall be effective upon its certification. The Department shall transmit a copy of the certification to the Department of Revenue, and to the designating municipality or county.

Upon certification of an Enterprise Zone, the terms and provisions of the designating ordinance shall be in effect, and may not be amended or repealed except in accordance with Section 5.4.

(c) An Enterprise Zone designated before the effective date of this amendatory Act of the 97th General Assembly shall be in effect for 30 calendar years, or for a lesser number of years specified in the certified designating ordinance. An Enterprise Zone designated on or after the effective date of this amendatory Act of the 97th General Assembly shall be in effect for 10 calendar years, or for a lesser number of years specified in the certified designating ordinance. Enterprise Zones shall terminate at midnight of December 31 of the final calendar year of the certified term, except as provided in Section 5.4.

(d) No more than 12 Enterprise Zones may be certified by the Department in calendar year 1984, no more than 12 Enterprise Zones may be certified by the Department in calendar year 1985, no more than 13 Enterprise Zones may be certified by the Department in calendar year 1986, no more than 15 Enterprise Zones may be certified by the Department in calendar year 1987, and no more than 20 Enterprise Zones may be certified by the Department in calendar year 1990. In other calendar years, no more than 13 Enterprise Zones may be certified by the Department. The Department may also designate up to 8 additional Enterprise Zones outside the regular application cycle if warranted by the extreme economic circumstances as determined by the Department. The Department may also designate one additional Enterprise Zone outside the regular application cycle if an aircraft manufacturer agrees to locate an aircraft manufacturing facility in the proposed Enterprise Zone. Notwithstanding any other provision of this Act, no more than 89 Enterprise Zones may be certified by the Department for the 10 calendar years commencing with 1983. The 7 additional Enterprise Zones authorized by Public Act 86-15 shall not lie within municipalities or unincorporated areas of counties that abut or are contiguous to Enterprise Zones certified pursuant to this Section prior to June 30, 1989. The 7 additional Enterprise Zones (excluding the additional Enterprise Zone which may be designated outside the regular application cycle) authorized by Public Act 86-1030 shall not lie within municipalities or unincorporated areas of counties that abut or are contiguous to Enterprise Zones certified pursuant to this Section prior to February 28, 1990. Beginning in calendar year 2004 and until December 31, 2008, one additional enterprise zone may be certified by the Department. In any calendar year, the Department may not certify more than 3 Zones located within the same municipality. The Department may certify Enterprise Zones in each of the 10 calendar years commencing with 1983. The Department may not certify more than a total of 18 Enterprise Zones located within the same county (whether within municipalities or within unincorporated territory) for the 10 calendar years commencing with 1983. Thereafter, the Department may not certify any additional Enterprise Zones, but may amend and rescind certifications of existing Enterprise Zones in accordance with Section 5.4.

(e) Notwithstanding any other provision of law, if (i) the county board of any county in which a current military base is located, in part or in whole, or in which a military base that has been closed within 20 years of the effective date of this amendatory Act of 1998 is located, in part or in whole, adopts a designating ordinance in accordance with Section 5 of this Act to designate the military base in that county as an enterprise zone and (ii) the property otherwise meets the qualifications for an enterprise zone as prescribed in Section 4 of this Act, then the Department may certify the designating ordinance or ordinances, as the case may be.

(f) Upon expiration of a zone designation, the zone then becomes available for either its previous designee, or a new competitor, to compete for designation. No preference for designation will be given to the previous designee of the zone.

(Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436, eff. 1-1-04.)

(20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)

Sec. 5.4. Amendment and Decertification of Enterprise Zones.

(a) The terms of a certified enterprise zone designating ordinance may be amended to

(i) alter the boundaries of the Enterprise Zone, or

(ii) expand, limit or repeal tax incentives or benefits provided in the ordinance, or

(iii) extend alter the termination date of the zone, or

(iv) make technical corrections in the enterprise zone designating ordinance; but such amendment shall not be effective unless the Department issues an amended certificate for the Enterprise Zone, approving the amended designating ordinance. Upon the adoption of any ordinance amending or repealing the terms of a certified enterprise zone designating ordinance, the municipality or county shall promptly file with the Department an application for approval thereof, containing substantially the same information as required for an application under Section 5.1 insofar as material to the proposed changes. The municipality or county must hold a public hearing on the proposed changes as specified in Section 5 and, if the amendment is to effectuate the limitation of tax abatements under Section 5.4.1, then the public notice of the hearing shall state that property that is in both the enterprise zone and a redevelopment project area may not receive tax abatements unless within 60 days after the adoption of the amendment to the designating ordinance the municipality has determined that eligibility for tax abatements has been established,

(v) include an area within another municipality or county as part of the designated enterprise zone provided the requirements of Section 4 are complied with, or

(vi) effectuate the limitation of tax abatements under Section 5.4.1.

(b) The Department shall approve or disapprove a proposed amendment to a certified enterprise zone within 90 days of its receipt of the application from the municipality or county. The Department may not approve changes in a Zone which are not in conformity with this Act, as now or hereafter amended, or with other applicable laws. If the Department issues an amended certificate for an Enterprise Zone, the amended certificate, together with the amended zone designating ordinance, shall be filed, recorded and transmitted as provided in Section 5.3.

(c) An Enterprise Zone may be decertified by joint action of the Department and the designating county or municipality in accordance with this Section. The designating county or municipality shall conduct at least one public hearing within the zone prior to its adoption of an ordinance of de-designation. The mayor of the designating municipality or the chairman of the county board of the designating county shall execute a joint decertification agreement with the Department. A decertification of an Enterprise Zone shall not become effective until at least 6 months after the execution of the decertification agreement, which shall be filed in the office of the Secretary of State.

(d) An Enterprise Zone may be decertified for cause by the Department in accordance with this Section. Prior to decertification: (1) the Department shall notify the chief elected official of the designating county or municipality in writing of the specific deficiencies which provide cause for decertification; (2) the Department shall place the designating county or municipality on probationary status for at least 6 months during which time corrective action may be achieved in the enterprise zone by the designating county or municipality; and, (3) the Department shall conduct at least one public hearing within the zone. If such corrective action is not achieved during the probationary period, the Department shall issue an amended certificate signed by the Director of the Department decertifying the enterprise zone, which certificate shall be filed in the office of the Secretary of State. A certified copy of the amended enterprise zone certificate, or a duplicate original thereof, shall be recorded in the office of recorder of the county in which the enterprise zone lies, and shall be provided to the chief elected official of the designating county or municipality. Decertification of an Enterprise Zone shall not become effective until 60 days after the date of filing.

(e) In the event of a decertification, or an amendment reducing the length of the term or the area of an Enterprise Zone or the adoption of an ordinance reducing or eliminating tax benefits in an Enterprise Zone, all benefits previously extended within the Zone pursuant to this Act or pursuant to any other Illinois law providing benefits specifically to or within Enterprise Zones shall remain in effect for the original stated term of the Enterprise Zone, with respect to business enterprises within the Zone on the effective date of such decertification or amendment, and with respect to individuals participating in urban homestead programs under this Act.

(f) Except as otherwise provided in Section 5.4.1, with respect to business enterprises (or expansions thereof) which are proposed or under development within a Zone at the time of a decertification or an amendment reducing the length of the term of the Zone, or excluding from the Zone area the site of the proposed enterprise, or an ordinance reducing or eliminating tax benefits in a Zone, such business enterprise shall be entitled to the benefits previously applicable within the Zone for the original stated term of the Zone, if the business enterprise establishes:

(i) that the proposed business enterprise or expansion has been committed to be located within the Zone;

(ii) that substantial and binding financial obligations have been made towards the development of such enterprise; and

(iii) that such commitments have been made in reasonable reliance on the benefits and programs which were to have been applicable to the enterprise by reason of the Zone, including in the case of a reduction in term of a zone, the original length of the term.

In declaratory judgment actions under this paragraph, the Department and the designating municipality or county shall be necessary parties defendant.

(g) An enterprise zone designated on or after the effective date of this amendatory Act of the 97th General Assembly shall be decertified if: (i) the zone fails to meet the obligations listed in paragraph (5) of subsection (f) of Section 4 of this Act; and (ii) the zone does not otherwise meet 3 of the 5 criteria set forth in subsection (f).

(Source: P.A. 90-258, eff. 7-30-97.)

(20 ILCS 655/8.1 new)

Sec. 8.1. Accounting. Any business receiving tax incentives due to their location within an Enterprise Zone must keep itemized records of each transaction to which a tax incentive was applied. The business must, no less than monthly, present a copy of their itemized record to the Zone Administrator. The Zone Administrator must then, as received, send a copy of the itemized report to the Department. The Department will compile a report for each Enterprise Zone that includes these itemized records, categorized by the names of the businesses within the Zone. The Department will issue these reports to the Board on a quarterly basis.

(20 ILCS 655/8.2 new)

Sec. 8.2. Zone Administrator.

(a) Each Zone Administrator designated under Section 8 of this Act shall post a copy of the boundaries of the Enterprise Zone on its official Internet website and shall provide an electronic copy to the Department. The Department shall post each copy of the boundaries of an Enterprise Zone that it receives from a Zone Administrator on its official Internet website.

(b) The Zone Administrator shall collect and aggregate the following information:

(1) the estimated cost of each building project, broken down into labor and materials; new estimates shall be provided each time an applicant requests an extension of the sales tax exemption certificate; and

(2) within 60 days after the end of the project, the actual cost of each building project, broken down into labor and materials.

(c) By April 1 of each year, each Zone Administrator shall file a copy of its fee schedule with the Department, and the Department shall review and approve the fee schedule. Zone Administrators shall charge no more than 0.1% of the actual cost of the project, with a maximum fee of no more than $100,000.

Section 10. The Retailers' Occupation Tax Act is amended by changing Sections 1d, 1e, 1f, 1j, 1j.1, 1m, 1n, 5k, and 5l and by adding Section 6d as follows:

(35 ILCS 120/1d) (from Ch. 120, par. 440d)

Sec. 1d. Enterprise zone exemptions.

(a) Until January 1, 2013, subject Subject to the provisions of Section 1f, all tangible personal property to be used or consumed within an enterprise zone established pursuant to the "Illinois Enterprise Zone Act", as amended, or subject to the provisions of Section 5.5 of the Illinois Enterprise Zone Act, all tangible personal property to be used or consumed by any High Impact Business, in the process of the manufacturing or assembly of tangible personal property for wholesale or retail sale or lease or in the process of graphic arts production if used or consumed at a facility which is a Department of Commerce and Economic Opportunity certified business and located in a county of more than 4,000 persons and less than 45,000 persons is exempt from the tax imposed by this Act.

(b) Beginning on January 1, 2013, taxpayers who purchase (i) tangible personal property to be used or consumed within an enterprise zone established pursuant to the Illinois Enterprise Zone Act or (ii) tangible personal property to be used or consumed by any High Impact Business in the process of the manufacturing or assembly of tangible personal property for wholesale or retail sale or lease or in the process of graphic arts production that is used or consumed at a facility which is a Department of Commerce and Economic Opportunity certified business and located in a county of more than 4,000 persons and less than 45,000 persons are entitled to a refund under Section 6d.

(c) This exemption includes repair and replacement parts for machinery and equipment used primarily in the process of manufacturing or assembling tangible personal property or in the process of graphic arts production if used or consumed at a facility which is a Department of Commerce and Economic Opportunity certified business and located in a county of more than 4,000 persons and less than 45,000 persons for wholesale or retail sale, or lease, and equipment, manufacturing or graphic arts fuels, material and supplies for the maintenance, repair or operation of such manufacturing or assembling or graphic arts machinery or equipment.

(Source: P.A. 94-793, eff. 5-19-06.)

(35 ILCS 120/1e) (from Ch. 120, par. 440e)

Sec. 1e. Enterprise zone exemptions.

(a) Until January 1, 2013, subject Subject to the provisions of Section 1f, or subject to the provisions of Section 5.5 of the Illinois Enterprise Zone Act, all tangible personal property to be used or consumed in the operation of pollution control facilities, as defined in Section 1a of this Act, within an enterprise zone established pursuant to the "Illinois Enterprise Zone Act", as amended, shall be exempt from the tax imposed by this Act.

(b) Beginning on January 1, 2013, taxpayers who purchase tangible personal property to be used or consumed in the operation of pollution control facilities, as defined in Section 1a of this Act, within an enterprise zone established pursuant to the Illinois Enterprise Zone Act are entitled to a refund under Section 6d.

(Source: P.A. 85-1182.)

(35 ILCS 120/1f) (from Ch. 120, par. 440f)

Sec. 1f. Except for High Impact Businesses, the exemption stated in Sections 1d and 1e of this Act shall only apply to business enterprises which:

(1) either (i) make investments which cause the creation of a minimum of 200 full-time equivalent jobs in Illinois or (ii) make investments which cause the retention of a minimum of 2000 full-time jobs in Illinois or (iii) make investments of a minimum of $40,000,000 and retain at least 90% of the jobs in place on the date on which the exemption is granted and for the duration of the exemption; and

(2) are located in an Enterprise Zone established pursuant to the Illinois Enterprise Zone Act; and

(3) are certified by the Department of Commerce and Economic Opportunity as complying with the requirements specified in clauses (1), (2) and (3).

Any business enterprise seeking to avail itself of the exemptions stated in Sections 1d or 1e, or both, shall make application to the Department of Commerce and Economic Opportunity in such form and providing such information as may be prescribed by the Department of Commerce and Economic Opportunity. However, no business enterprise shall be required, as a condition for certification under clause (4) of this Section, to attest that its decision to invest under clause (1) of this Section and to locate under clause (2) of this Section is predicated upon the availability of the exemptions authorized by Sections 1d or 1e.

The Department of Commerce and Economic Opportunity shall determine whether the business enterprise meets the criteria prescribed in this Section. If the Department of Commerce and Economic Opportunity determines that such business enterprise meets the criteria, it shall issue a certificate of eligibility for exemption to the business enterprise in such form as is prescribed by the Department of Revenue. The Department of Commerce and Economic Opportunity shall act upon such certification requests within 60 days after receipt of the application, and shall file with the Department of Revenue a copy of each certificate of eligibility for exemption.

The Department of Commerce and Economic Opportunity shall have the power to promulgate rules and regulations to carry out the provisions of this Section including the power to define the amounts and types of eligible investments not specified in this Section which business enterprises must make in order to receive the exemptions stated in Sections 1d and 1e of this Act; and to require that any business enterprise that is granted a tax exemption repay the exempted tax if the business enterprise fails to comply with the terms and conditions of the certification.

Such certificate of eligibility for exemption shall be presented by the business enterprise to its supplier when making the initial purchase of tangible personal property for which an exemption is granted by Section 1d or Section 1e, or both, together with a certification by the business enterprise that such tangible personal property is exempt from taxation under Section 1d or Section 1e and by indicating the exempt status of each subsequent purchase on the face of the purchase order.

The Department of Commerce and Economic Opportunity shall determine the period during which such exemption from the taxes imposed under this Act is in effect which shall not exceed 20 years.

This Section is subject to the provisions of Section 6d.

(Source: P.A. 94-793, eff. 5-19-06.)

(35 ILCS 120/1j) (from Ch. 120, par. 440j)

Sec. 1j. Exemption - Machinery or equipment used in the operation of high impact service facilities.

(a) Until January 1, 2013, subject Exemption - Machinery or Equipment used in the operation of high impact service facilities. Subject to the provisions of Section 1i of this Act, machinery or equipment used in the operation of a high impact service facility, as defined in Section 1i of this Act, located within an enterprise zone established pursuant to the Illinois Enterprise Zone Act shall be exempt from the tax imposed by this Act.

(b) Beginning on January 1, 2013, purchasers of machinery or equipment used in the operation of a high impact service facility, as defined in Section 1i of this Act, located within an enterprise zone established pursuant to the Illinois Enterprise Zone Act are entitled to a refund under Section 6d of this Act.

(c) Machinery and equipment, new and replacement, shall include, but not be limited to: (i) motor driven heavy equipment not considered rolling stock which is used for the purpose of transporting parcels, machinery, or equipment, or trailers used for the shipment of parcels, and equipment used to maintain and provide in-house services, within the confines of the facility, and (ii) automated machinery and equipment used for the purposes of transporting parcels within the facility, along with all components, parts, pieces, and computer software or hardware contained in the electronic control systems related thereto. The Department of Revenue shall promulgate such rules and regulations as necessary to further define machinery and equipment eligible for exemption or a refund in a high impact service facility.

(Source: P.A. 85-1409.)

(35 ILCS 120/1j.1)

Sec. 1j.1. Exemption; jet fuel used in the operation of high impact service facilities.

(a) January 1, 2013, subject Exemption; jet fuel used in the operation of high impact service facilities. Subject to the provisions of Section 1i of this Act, jet fuel and petroleum products sold to and used in the conduct of its business of sorting, handling and redistribution of mail, freight, cargo or other parcels in the operation of a high impact service facility, as defined in Section 1i of this Act, located within an enterprise zone established pursuant to the Illinois Enterprise Zone Act shall be exempt from the tax imposed by this Act, provided that the business enterprise has waived its right to a tax exemption of the charges imposed under Section 9-222.1 of the Public Utilities Act.

(b) Beginning on January 1, 2013, purchasers of jet fuel and petroleum products sold to and used in the conduct of the purchaser's business of sorting, handling and redistribution of mail, freight, cargo or other parcels in the operation of a high impact service facility, as defined in Section 1i of this Act, located within an enterprise zone established pursuant to the Illinois Enterprise Zone Act are entitled to a refund under Section 6d of this Act.

(c) The Department of Commerce and Economic Opportunity shall promulgate rules necessary to further define jet fuel and petroleum products sold to, used, and eligible for exemption in a high impact service facility. The minimum period for which an exemption or reduction from taxes is granted by this Section is 10 years, regardless of the duration of the enterprise zone in which the project is located.

(Source: P.A. 94-793, eff. 5-19-06.)

(35 ILCS 120/1m) (from Ch. 120, par. 440m)

Sec. 1m. Aircraft maintenance facilities; machinery and equipment.

(a) Until January 1, 2013, subject Subject to the provisions of Section 1k of this Act, machinery and equipment used in the operation of an aircraft maintenance facility as defined in Section 1k, located within an enterprise zone shall be exempt from the tax imposed by this Act. The machinery and equipment exempted by this Section is limited to machinery and equipment used primarily to maintain, rebuild or repair aircraft used as rolling stock moving in interstate commerce for hire by the operator of the facility.

(b) Beginning on January 1, 2013, purchasers of machinery and equipment used in the operation of an aircraft maintenance facility, as defined in Section 1k, located within an enterprise zone are entitled to a refund under Section 6d of this Act. The refund is limited to machinery and equipment used primarily to maintain, rebuild or repair aircraft used as rolling stock moving in interstate commerce for hire by the operator of the facility.

(c) The Department of Revenue shall promulgate any rules and regulations necessary to further define machinery and equipment eligible for exemption in an aircraft maintenance facility.

(Source: P.A. 86-1490.)

(35 ILCS 120/1n) (from Ch. 120, par. 440n)

Sec. 1n. Aircraft maintenance facilities; tangible personal property.

(a) Until January 1, 2013, subject Subject to the provisions of Section 1k, all tangible personal property to be used or consumed, within an enterprise zone established pursuant to the Illinois Enterprise Zone Act, by any aircraft maintenance facility, directly in the process of maintaining, rebuilding or repairing aircraft is exempt from the tax imposed by this Act. The exemption includes repair and replacement parts for machinery and equipment used primarily in the process of maintaining, rebuilding or repairing aircraft, and also includes equipment, fuels, material and supplies for the maintenance, repair or operation of such machinery or equipment.

(b) Beginning on January 1, 2013, purchasers of tangible personal property to be used or consumed, within an enterprise zone established pursuant to the Illinois Enterprise Zone Act, by any aircraft maintenance facility, directly in the process of maintaining, rebuilding or repairing aircraft are entitled to a refund under Section 6d of this Act. The refund includes repair and replacement parts for machinery and equipment used primarily in the process of maintaining, rebuilding or repairing aircraft, and also includes equipment, fuels, material and supplies for the maintenance, repair or operation of such machinery or equipment.

(Source: P.A. 86-1490.)

(35 ILCS 120/5k) (from Ch. 120, par. 444k)

Sec. 5k. Enterprise Zone; Building materials exemption and refund.

(a) Until January 1, 2013, each Each retailer who makes a qualified sale of building materials to be incorporated into real estate in an enterprise zone established by a county or municipality under the Illinois Enterprise Zone Act by remodeling, rehabilitation or new construction, may deduct receipts from such sales when calculating the tax imposed by this Act. For purposes of this Section, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of a building project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the administrator of the enterprise zone in which the building project is located. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the administrator of the enterprise zone into which the building materials will be incorporated. The Certificate of Eligibility for Sales Tax Exemption must contain:

(1) a statement that the building project identified in the Certificate meets all the requirements for the building material exemption contained in the enterprise zone ordinance of the jurisdiction in which the building project is located;

(2) the location or address of the building project; and

(3) the signature of the administrator of the enterprise zone in which the building project is located.

In addition, the retailer must obtain certification from the purchaser that contains:

(1) a statement that the building materials are being purchased for incorporation into real estate located in an Illinois enterprise zone;

(2) the location or address of the real estate into which the building materials will be incorporated;

(3) the name of the enterprise zone in which that real estate is located;

(4) a description of the building materials being purchased; and

(5) the purchaser's signature and date of purchase.

The deduction allowed by this Section for the sale of building materials may be limited, to the extent authorized by ordinance, adopted after the effective date of this amendatory Act of 1992, by the municipality or county that created the enterprise zone into which the building materials will be incorporated. The ordinance, however, may neither require nor prohibit the purchase of building materials from any retailer or class of retailers in order to qualify for the exemption allowed under this Section. The provisions of this Section are exempt from Section 2-70.

(b) Beginning January 1, 2013, qualified purchasers may apply for a refund under Section 6d of this Act for taxes paid on building materials incorporated, by remodeling, rehabilitation, or new construction, into real estate in an enterprise zone established by a county or municipality under the Illinois Enterprise Zone Act. For purposes of this Section, "qualified purchaser" means a purchaser of building materials that have been incorporated into real estate as part of a building project for which a Certificate of Eligibility for Sales Tax Refund has been issued by the administrator of the enterprise zone in which the building project is located. The refund allowed by this subsection (b) for a qualified purchaser of building materials may be limited, to the extent authorized by ordinance, by the municipality or county that created the enterprise zone into which the building materials will be incorporated. The ordinance, however, may neither require nor prohibit the purchase of building materials from any retailer or class of retailers in order to apply for the refunds allowed under this Section.

A business enterprise that possesses an effective Certificate of Eligibility for Sales Tax Exemption under subsection (a) of this Section need not apply for a Certificate of Eligibility for Sales Tax Refund under this subsection (b). However, the administrator of the enterprise zone in which the building project is located shall replace all certificates issued under subsection (a) with Certificates of Eligibility for Sales Tax Refund and shall provide the Department of Revenue with copies of those certificates. The issuance of new certificates shall not extend the termination dates of the certificates issued under subsection (a).

Any business enterprise that applies for a refund shall repay the amount of any refund received to the Department of Revenue if the business enterprise fails to comply with the terms and conditions of the certification, and pay all penalties and interest on the amount of refunds as determined by the Department of Revenue. The Department of Revenue shall have the power to promulgate rules and regulations to administer and enforce this requirement.

(Source: P.A. 91-51, eff. 6-30-99; 91-954, eff. 1-1-02; 92-484, eff. 8-23-01; 92-779, eff. 8-6-02.)

(35 ILCS 120/5l) (from Ch. 120, par. 444l)

Sec. 5l. High impact businesses; building materials.

(a) Beginning January 1, 1995, and until January 1, 2013, each retailer who makes a sale of building materials that will be incorporated into a High Impact Business location as designated by the Department of Commerce and Economic Opportunity under Section 5.5 of the Illinois Enterprise Zone Act may deduct receipts from such sales when calculating only the 6.25% State rate of tax imposed by this Act. Beginning on the effective date of this amendatory Act of 1995, a retailer may also deduct receipts from such sales when calculating any applicable local taxes. However, until the effective date of this amendatory Act of 1995, a retailer may file claims for credit or refund to recover the amount of any applicable local tax paid on such sales. No retailer who is eligible for the deduction or credit under Section 5k of this Act for making a sale of building materials to be incorporated into real estate in an enterprise zone by rehabilitation, remodeling or new construction shall be eligible for the deduction or credit authorized under this Section.

(b) Beginning on January 1, 2013, purchasers of building materials that will be incorporated into a High Impact Business location as designated by the Department of Commerce and Economic Opportunity under Section 5.5 of the Illinois Enterprise Zone Act are entitled to a refund under Section 6d of this Act.

(Source: P.A. 94-793, eff. 5-19-06.)

(35 ILCS 120/6d new)

Sec. 6d. Refunds; enterprise zones.

(a) On and after January 1, 2013, purchasers of tangible personal property described in Section 1d, 1e, 1f, 1i, 1j, 1j.1, 1j.2, 1k, 1m, 1n, 5k, or 5l may apply to the Department for a refund of the taxes paid under this Act with respect to that property. Claims for refunds shall be prepared and filed quarterly upon forms provided by the Department. Each claim shall provide:

(1) the name and principal business address of the claimant;

(2) the period covered by the claim;

(3) the amount of refund claimed and the Section of the Act under which the refund is claimed;

(4) the amount of tax paid;

(5) for each qualifying retail transaction, the transaction date, the name and address of the retailer, the item or items purchased, the price of each item purchased, the name of the enterprise zone or location where the item or items are used or consumed; and

(6) such other information as the Department may reasonably require.

(b) A claim for refund may not be made more than 2 years after the date the tax is paid.

(c) Upon receipt of any claim for refund filed under this Section, any officer or employee of the Department who is authorized in writing by the Director of Revenue to acknowledge receipt of those claims on behalf of the Department shall execute on behalf of the Department, and shall deliver or mail to the claimant or his duly authorized agent, a written receipt acknowledging that the claim has been filed with the Department, describing the claim in sufficient detail to identify it, and stating the date upon which the claim was received by the Department. That written receipt shall be prima facie evidence that the Department received the claim described in such receipt and shall be prima facie evidence of the date when such claim was received by the Department. In the absence of such a written receipt, the records of the Department as to when the claim was received by the Department, or as to whether or not the claim was received at all by the Department, shall be deemed to be prima facie correct upon these questions in the event of any dispute between the claimant (or his legal representative) and the Department concerning these questions. The Department may adopt rules requiring persons to file claims for refunds electronically.

As soon as practicable after a claim for refund is filed, the Department shall examine the claim and determine the amount of refund to which the claimant or, if the taxpayer has died or become incompetent, the taxpayer's legal representative, is entitled and shall, by its Notice of Tentative Determination of Claim, notify the claimant or his legal representative of that determination. The determination shall be prima facie correct. Proof of such a determination by the Department may be made at any hearing before the Department or in any legal proceeding by a reproduced copy of the Department's record relating thereto, in the name of the Department under the certificate of the Director of Revenue. Such reproduced copy shall, without further proof, be admitted into evidence before the Department or in any legal proceeding, and shall be prima facie proof of the correctness of the Department's determination, as shown therein. If such claimant, or the legal representative of a deceased or incompetent taxpayer, within 60 days after the Department's Notice of Tentative Determination of Claim, files a protest thereto and requests a hearing thereon, the Department shall give notice to the claimant, or the legal representative of a deceased taxpayer or a taxpayer who is under legal disability, of the time and place fixed for a hearing, and shall hold a hearing in conformity with the provisions of this Act, and following that hearing shall issue its final determination of the amount, if any, found to be due as a result of the hearing, to such claimant, or the legal representative of a deceased taxpayer, or a taxpayer who is under legal disability. The Department's final determination may be reviewed by the proper Circuit Court, in the same manner, within the same time, upon the same terms and conditions, and to the same extent as provided by Section 12 of this Act.

If there has been an erroneous refund of tax payable under this Act, a notice of tax liability may be issued at any time within 4 years from the making of that refund, or within 6 years from the making of that refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact. The amount of any proposed assessment set forth in the notice shall be limited to the amount of the erroneous refund.

If a protest to the Department's Notice of Tentative Determination of Claim is not filed within 60 days and a request for a hearing thereon is not made as provided in Section 6b of this Act, that notice shall become and operate as a final determination upon the expiration of that 60-day period; and, if the Department's Notice of Tentative Determination, upon becoming a final determination, indicates no amount due to the claimant, or, upon issuance of a credit memorandum or refund for the amount, if any, found by the Department to be due, the claim in all its aspects shall be closed and no longer open to protest, hearing, judicial review, or by any other proceeding or action whatever, either before the Department or in any court of this State. Claims for credit or refund hereunder must be filed with and initially determined by the Department, the remedy herein provided being exclusive; and no court shall have jurisdiction to determine the merits of any claim except upon review as provided herein.

Section 99. Effective date. This Act takes effect upon becoming law.".