97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4491

 

Introduced 1/31/2012, by Rep. Jim Sacia

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 10/5-15

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the transportation of motor freight are eligible to claim the Credit against their obligation to pay over withholding taxes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4491LRB097 19429 HLH 64682 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Economic Development for a Growing Economy
5Tax Credit Act is amended by changing Section 5-15 as follows:
 
6    (35 ILCS 10/5-15)
7    (Text of Section before amendment by P.A. 97-636)
8    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
9forth in this Act, a Taxpayer is entitled to a Credit against
10or, as described in subsection (g) of this Section, a payment
11towards taxes imposed pursuant to subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act that may be imposed
13on the Taxpayer for a taxable year beginning on or after
14January 1, 1999, if the Taxpayer is awarded a Credit by the
15Department under this Act for that taxable year.
16    (a) The Department shall make Credit awards under this Act
17to foster job creation and retention in Illinois.
18    (b) A person that proposes a project to create new jobs in
19Illinois must enter into an Agreement with the Department for
20the Credit under this Act.
21    (c) The Credit shall be claimed for the taxable years
22specified in the Agreement.
23    (d) The Credit shall not exceed the Incremental Income Tax

 

 

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1attributable to the project that is the subject of the
2Agreement.
3    (e) Nothing herein shall prohibit a Tax Credit Award to an
4Applicant that uses a PEO if all other award criteria are
5satisfied.
6    (f) In lieu of the Credit allowed under this Act against
7the taxes imposed pursuant to subsections (a) and (b) of
8Section 201 of the Illinois Income Tax Act for any taxable year
9ending on or after December 31, 2009, the Taxpayer may elect to
10claim the Credit against its obligation to pay over withholding
11under Section 704A of the Illinois Income Tax Act.
12        (1) The election under this subsection (f) may be made
13    only by a Taxpayer that (i) is primarily engaged in one of
14    the following business activities: water purification and
15    treatment, motor vehicle metal stamping, automobile
16    manufacturing, automobile and light duty motor vehicle
17    manufacturing, motor vehicle manufacturing, light truck
18    and utility vehicle manufacturing, heavy duty truck
19    manufacturing, motor vehicle body manufacturing, cable
20    television infrastructure design or manufacturing, or
21    wireless telecommunication or computing terminal device
22    design or manufacturing for use on public networks and (ii)
23    meets the following criteria:
24            (A) the Taxpayer (i) had an Illinois net loss or an
25        Illinois net loss deduction under Section 207 of the
26        Illinois Income Tax Act for the taxable year in which

 

 

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1        the Credit is awarded, (ii) employed a minimum of 1,000
2        full-time employees in this State during the taxable
3        year in which the Credit is awarded, (iii) has an
4        Agreement under this Act on December 14, 2009 (the
5        effective date of Public Act 96-834), and (iv) is in
6        compliance with all provisions of that Agreement;
7            (B) the Taxpayer (i) had an Illinois net loss or an
8        Illinois net loss deduction under Section 207 of the
9        Illinois Income Tax Act for the taxable year in which
10        the Credit is awarded, (ii) employed a minimum of 1,000
11        full-time employees in this State during the taxable
12        year in which the Credit is awarded, and (iii) has
13        applied for an Agreement within 365 days after December
14        14, 2009 (the effective date of Public Act 96-834);
15            (C) the Taxpayer (i) had an Illinois net operating
16        loss carryforward under Section 207 of the Illinois
17        Income Tax Act in a taxable year ending during calendar
18        year 2008, (ii) has applied for an Agreement within 150
19        days after the effective date of this amendatory Act of
20        the 96th General Assembly, (iii) creates at least 400
21        new jobs in Illinois, (iv) retains at least 2,000 jobs
22        in Illinois that would have been at risk of relocation
23        out of Illinois over a 10-year period, and (v) makes a
24        capital investment of at least $75,000,000;
25            (D) the Taxpayer (i) had an Illinois net operating
26        loss carryforward under Section 207 of the Illinois

 

 

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1        Income Tax Act in a taxable year ending during calendar
2        year 2009, (ii) has applied for an Agreement within 150
3        days after the effective date of this amendatory Act of
4        the 96th General Assembly, (iii) creates at least 150
5        new jobs, (iv) retains at least 1,000 jobs in Illinois
6        that would have been at risk of relocation out of
7        Illinois over a 10-year period, and (v) makes a capital
8        investment of at least $57,000,000; or
9            (E) the Taxpayer (i) employed at least 2,500
10        full-time employees in the State during the year in
11        which the Credit is awarded, (ii) commits to make at
12        least $500,000,000 in combined capital improvements
13        and project costs under the Agreement, (iii) applies
14        for an Agreement between January 1, 2011 and June 30,
15        2011, (iv) executes an Agreement for the Credit during
16        calendar year 2011, and (v) was incorporated no more
17        than 5 years before the filing of an application for an
18        Agreement.
19        (1.5) The election under this subsection (f) may also
20    be made by a Taxpayer for any Credit awarded pursuant to an
21    agreement that was executed between January 1, 2011 and
22    June 30, 2011, if the Taxpayer (i) is primarily engaged in
23    the manufacture of inner tubes or tires, or both, from
24    natural and synthetic rubber, (ii) employs a minimum of
25    2,400 full-time employees in Illinois at the time of
26    application, (iii) creates at least 350 full-time jobs and

 

 

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1    retains at least 250 full-time jobs in Illinois that would
2    have been at risk of being created or retained outside of
3    Illinois, and (iv) makes a capital investment of at least
4    $200,000,000 at the project location.
5        (1.8) The election under this subsection (f) may also
6    be made by a Taxpayer that is primarily engaged in the
7    transportation of motor freight if (i) the Taxpayer employs
8    a minimum of 50 full-time employees in Illinois at the time
9    of application, (ii) the Taxpayer intends to create at
10    least 40 additional jobs in Illinois subsequent to the
11    approval of the Taxpayer's application, (iii) the Taxpayer
12    pledges to make a capital investment of at least $2,000,000
13    comprising both moneys invested at the project location and
14    moneys invested in motor vehicles that use the project
15    location, and (iv) the Taxpayer's project location is
16    physically located within 5 miles of at least 2 other
17    states that could also physically house the project
18    location. The election under this item (1.8) must be made
19    between September 1, 2012 and December 31, 2012.
20        (2) An election under this subsection shall allow the
21    credit to be taken against payments otherwise due under
22    Section 704A of the Illinois Income Tax Act during the
23    first calendar year beginning after the end of the taxable
24    year in which the credit is awarded under this Act.
25        (3) The election shall be made in the form and manner
26    required by the Illinois Department of Revenue and, once

 

 

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1    made, shall be irrevocable.
2        (4) If a Taxpayer who meets the requirements of
3    subparagraph (A) of paragraph (1) of this subsection (f)
4    elects to claim the Credit against its withholdings as
5    provided in this subsection (f), then, on and after the
6    date of the election, the terms of the Agreement between
7    the Taxpayer and the Department may not be further amended
8    during the term of the Agreement.
9    (g) A pass-through entity that has been awarded a credit
10under this Act, its shareholders, or its partners may treat
11some or all of the credit awarded pursuant to this Act as a tax
12payment for purposes of the Illinois Income Tax Act. The term
13"tax payment" means a payment as described in Article 6 or
14Article 8 of the Illinois Income Tax Act or a composite payment
15made by a pass-through entity on behalf of any of its
16shareholders or partners to satisfy such shareholders' or
17partners' taxes imposed pursuant to subsections (a) and (b) of
18Section 201 of the Illinois Income Tax Act. In no event shall
19the amount of the award credited pursuant to this Act exceed
20the Illinois income tax liability of the pass-through entity or
21its shareholders or partners for the taxable year.
22(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
2396-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
243-4-11; 97-2, eff. 5-6-11.)
 
25    (Text of Section after amendment by P.A. 97-636)

 

 

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1    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
2forth in this Act, a Taxpayer is entitled to a Credit against
3or, as described in subsection (g) of this Section, a payment
4towards taxes imposed pursuant to subsections (a) and (b) of
5Section 201 of the Illinois Income Tax Act that may be imposed
6on the Taxpayer for a taxable year beginning on or after
7January 1, 1999, if the Taxpayer is awarded a Credit by the
8Department under this Act for that taxable year.
9    (a) The Department shall make Credit awards under this Act
10to foster job creation and retention in Illinois.
11    (b) A person that proposes a project to create new jobs in
12Illinois must enter into an Agreement with the Department for
13the Credit under this Act.
14    (c) The Credit shall be claimed for the taxable years
15specified in the Agreement.
16    (d) The Credit shall not exceed the Incremental Income Tax
17attributable to the project that is the subject of the
18Agreement.
19    (e) Nothing herein shall prohibit a Tax Credit Award to an
20Applicant that uses a PEO if all other award criteria are
21satisfied.
22    (f) In lieu of the Credit allowed under this Act against
23the taxes imposed pursuant to subsections (a) and (b) of
24Section 201 of the Illinois Income Tax Act for any taxable year
25ending on or after December 31, 2009, the Taxpayer may elect to
26claim the Credit against its obligation to pay over withholding

 

 

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1under Section 704A of the Illinois Income Tax Act.
2        (1) The election under this subsection (f) may be made
3    only by a Taxpayer that (i) is primarily engaged in one of
4    the following business activities: water purification and
5    treatment, motor vehicle metal stamping, automobile
6    manufacturing, automobile and light duty motor vehicle
7    manufacturing, motor vehicle manufacturing, light truck
8    and utility vehicle manufacturing, heavy duty truck
9    manufacturing, motor vehicle body manufacturing, cable
10    television infrastructure design or manufacturing, or
11    wireless telecommunication or computing terminal device
12    design or manufacturing for use on public networks and (ii)
13    meets the following criteria:
14            (A) the Taxpayer (i) had an Illinois net loss or an
15        Illinois net loss deduction under Section 207 of the
16        Illinois Income Tax Act for the taxable year in which
17        the Credit is awarded, (ii) employed a minimum of 1,000
18        full-time employees in this State during the taxable
19        year in which the Credit is awarded, (iii) has an
20        Agreement under this Act on December 14, 2009 (the
21        effective date of Public Act 96-834), and (iv) is in
22        compliance with all provisions of that Agreement;
23            (B) the Taxpayer (i) had an Illinois net loss or an
24        Illinois net loss deduction under Section 207 of the
25        Illinois Income Tax Act for the taxable year in which
26        the Credit is awarded, (ii) employed a minimum of 1,000

 

 

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1        full-time employees in this State during the taxable
2        year in which the Credit is awarded, and (iii) has
3        applied for an Agreement within 365 days after December
4        14, 2009 (the effective date of Public Act 96-834);
5            (C) the Taxpayer (i) had an Illinois net operating
6        loss carryforward under Section 207 of the Illinois
7        Income Tax Act in a taxable year ending during calendar
8        year 2008, (ii) has applied for an Agreement within 150
9        days after the effective date of this amendatory Act of
10        the 96th General Assembly, (iii) creates at least 400
11        new jobs in Illinois, (iv) retains at least 2,000 jobs
12        in Illinois that would have been at risk of relocation
13        out of Illinois over a 10-year period, and (v) makes a
14        capital investment of at least $75,000,000;
15            (D) the Taxpayer (i) had an Illinois net operating
16        loss carryforward under Section 207 of the Illinois
17        Income Tax Act in a taxable year ending during calendar
18        year 2009, (ii) has applied for an Agreement within 150
19        days after the effective date of this amendatory Act of
20        the 96th General Assembly, (iii) creates at least 150
21        new jobs, (iv) retains at least 1,000 jobs in Illinois
22        that would have been at risk of relocation out of
23        Illinois over a 10-year period, and (v) makes a capital
24        investment of at least $57,000,000; or
25            (E) the Taxpayer (i) employed at least 2,500
26        full-time employees in the State during the year in

 

 

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1        which the Credit is awarded, (ii) commits to make at
2        least $500,000,000 in combined capital improvements
3        and project costs under the Agreement, (iii) applies
4        for an Agreement between January 1, 2011 and June 30,
5        2011, (iv) executes an Agreement for the Credit during
6        calendar year 2011, and (v) was incorporated no more
7        than 5 years before the filing of an application for an
8        Agreement.
9        (1.5) The election under this subsection (f) may also
10    be made by a Taxpayer for any Credit awarded pursuant to an
11    agreement that was executed between January 1, 2011 and
12    June 30, 2011, if the Taxpayer (i) is primarily engaged in
13    the manufacture of inner tubes or tires, or both, from
14    natural and synthetic rubber, (ii) employs a minimum of
15    2,400 full-time employees in Illinois at the time of
16    application, (iii) creates at least 350 full-time jobs and
17    retains at least 250 full-time jobs in Illinois that would
18    have been at risk of being created or retained outside of
19    Illinois, and (iv) makes a capital investment of at least
20    $200,000,000 at the project location.
21        (1.6) The election under this subsection (f) may also
22    be made by a Taxpayer for any Credit awarded pursuant to an
23    agreement that was executed within 150 days after the
24    effective date of this amendatory Act of the 97th General
25    Assembly, if the Taxpayer (i) is primarily engaged in the
26    operation of a discount department store, (ii) maintains

 

 

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1    its corporate headquarters in Illinois, (iii) employs a
2    minimum of 4,250 full-time employees at its corporate
3    headquarters in Illinois at the time of application, (iv)
4    retains at least 4,250 full-time jobs in Illinois that
5    would have been at risk of being relocated outside of
6    Illinois, (v) had a minimum of $40,000,000,000 in total
7    revenue in 2010, and (vi) makes a capital investment of at
8    least $300,000,000 at the project location.
9        (1.7) Notwithstanding any other provision of law, the
10    election under this subsection (f) may also be made by a
11    Taxpayer for any Credit awarded pursuant to an agreement
12    that was executed or applied for on or after July 1, 2011
13    and on or before March 31, 2012, if the Taxpayer is
14    primarily engaged in the manufacture of original and
15    aftermarket filtration parts and products for automobiles,
16    motor vehicles, light duty motor vehicles, light trucks and
17    utility vehicles, and heavy duty trucks, (ii) employs a
18    minimum of 1,000 full-time employees in Illinois at the
19    time of application, (iii) creates at least 250 full-time
20    jobs in Illinois, (iv) relocates its corporate
21    headquarters to Illinois from another state, and (v) makes
22    a capital investment of at least $4,000,000 at the project
23    location.
24        (1.8) The election under this subsection (f) may also
25    be made by a Taxpayer that is primarily engaged in the
26    transportation of motor freight if (i) the Taxpayer employs

 

 

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1    a minimum of 50 full-time employees in Illinois at the time
2    of application, (ii) the Taxpayer intends to create at
3    least 40 additional jobs in Illinois subsequent to the
4    approval of the Taxpayer's application, (iii) the Taxpayer
5    pledges to make a capital investment of at least $2,000,000
6    comprising both moneys invested at the project location and
7    moneys invested in motor vehicles that use the project
8    location, and (iv) the Taxpayer's project location is
9    physically located within 5 miles of at least 2 other
10    states that could also physically house the project
11    location. The election under this item (1.8) must be made
12    between September 1, 2012 and December 31, 2012.
13        (2) An election under this subsection shall allow the
14    credit to be taken against payments otherwise due under
15    Section 704A of the Illinois Income Tax Act during the
16    first calendar year beginning after the end of the taxable
17    year in which the credit is awarded under this Act.
18        (3) The election shall be made in the form and manner
19    required by the Illinois Department of Revenue and, once
20    made, shall be irrevocable.
21        (4) If a Taxpayer who meets the requirements of
22    subparagraph (A) of paragraph (1) of this subsection (f)
23    elects to claim the Credit against its withholdings as
24    provided in this subsection (f), then, on and after the
25    date of the election, the terms of the Agreement between
26    the Taxpayer and the Department may not be further amended

 

 

HB4491- 13 -LRB097 19429 HLH 64682 b

1    during the term of the Agreement.
2    (g) A pass-through entity that has been awarded a credit
3under this Act, its shareholders, or its partners may treat
4some or all of the credit awarded pursuant to this Act as a tax
5payment for purposes of the Illinois Income Tax Act. The term
6"tax payment" means a payment as described in Article 6 or
7Article 8 of the Illinois Income Tax Act or a composite payment
8made by a pass-through entity on behalf of any of its
9shareholders or partners to satisfy such shareholders' or
10partners' taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act. In no event shall
12the amount of the award credited pursuant to this Act exceed
13the Illinois income tax liability of the pass-through entity or
14its shareholders or partners for the taxable year.
15(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
1696-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
173-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
18    Section 95. No acceleration or delay. Where this Act makes
19changes in a statute that is represented in this Act by text
20that is not yet or no longer in effect (for example, a Section
21represented by multiple versions), the use of that text does
22not accelerate or delay the taking effect of (i) the changes
23made by this Act or (ii) provisions derived from any other
24Public Act.
 
25    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.