Rep. Michael J. Zalewski

Filed: 9/27/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 382

2    AMENDMENT NO. ______. Amend House Bill 382 by replacing
3everything after the enacting clause with the following:
 
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    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
8forth in this Act, a Taxpayer is entitled to a Credit against
9or, as described in subsection (g) of this Section, a payment
10towards taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act that may be imposed
12on the Taxpayer for a taxable year beginning on or after
13January 1, 1999, if the Taxpayer is awarded a Credit by the
14Department under this Act for that taxable year.
15    (a) The Department shall make Credit awards under this Act
16to foster job creation and retention in Illinois.

 

 

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1    (b) A person that proposes a project to create new jobs in
2Illinois must enter into an Agreement with the Department for
3the Credit under this Act.
4    (c) The Credit shall be claimed for the taxable years
5specified in the Agreement.
6    (d) The Credit shall not exceed the Incremental Income Tax
7attributable to the project that is the subject of the
8Agreement.
9    (e) Nothing herein shall prohibit a Tax Credit Award to an
10Applicant that uses a PEO if all other award criteria are
11satisfied.
12    (f) In lieu of the Credit allowed under this Act against
13the taxes imposed pursuant to subsections (a) and (b) of
14Section 201 of the Illinois Income Tax Act for any taxable year
15ending on or after December 31, 2009, the Taxpayer may elect to
16claim the Credit against its obligation to pay over withholding
17under Section 704A of the Illinois Income Tax Act.
18        (1) The election under this subsection (f) may be made
19    only by a Taxpayer that (i) is primarily engaged in one of
20    the following business activities: water purification and
21    treatment, motor vehicle metal stamping, automobile
22    manufacturing, automobile and light duty motor vehicle
23    manufacturing, motor vehicle manufacturing, light truck
24    and utility vehicle manufacturing, heavy duty truck
25    manufacturing, motor vehicle body manufacturing, cable
26    television infrastructure design or manufacturing, or

 

 

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1    wireless telecommunication or computing terminal device
2    design or manufacturing for use on public networks and (ii)
3    meets the following criteria:
4            (A) the Taxpayer (i) had an Illinois net loss or an
5        Illinois net loss deduction under Section 207 of the
6        Illinois Income Tax Act for the taxable year in which
7        the Credit is awarded, (ii) employed a minimum of 1,000
8        full-time employees in this State during the taxable
9        year in which the Credit is awarded, (iii) has an
10        Agreement under this Act on December 14, 2009 (the
11        effective date of Public Act 96-834), and (iv) is in
12        compliance with all provisions of that Agreement;
13            (B) the Taxpayer (i) had an Illinois net loss or an
14        Illinois net loss deduction under Section 207 of the
15        Illinois Income Tax Act for the taxable year in which
16        the Credit is awarded, (ii) employed a minimum of 1,000
17        full-time employees in this State during the taxable
18        year in which the Credit is awarded, and (iii) has
19        applied for an Agreement within 365 days after December
20        14, 2009 (the effective date of Public Act 96-834);
21            (C) the Taxpayer (i) had an Illinois net operating
22        loss carryforward under Section 207 of the Illinois
23        Income Tax Act in a taxable year ending during calendar
24        year 2008, (ii) has applied for an Agreement within 150
25        days after the effective date of this amendatory Act of
26        the 96th General Assembly, (iii) creates at least 400

 

 

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1        new jobs in Illinois, (iv) retains at least 2,000 jobs
2        in Illinois that would have been at risk of relocation
3        out of Illinois over a 10-year period, and (v) makes a
4        capital investment of at least $75,000,000;
5            (D) 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 2009, (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 150
11        new jobs, (iv) retains at least 1,000 jobs in Illinois
12        that would have been at risk of relocation out of
13        Illinois over a 10-year period, and (v) makes a capital
14        investment of at least $57,000,000; or
15            (E) the Taxpayer (i) employed at least 2,500
16        full-time employees in the State during the year in
17        which the Credit is awarded, (ii) commits to make at
18        least $500,000,000 in combined capital improvements
19        and project costs under the Agreement, (iii) applies
20        for an Agreement between January 1, 2011 and June 30,
21        2011, (iv) executes an Agreement for the Credit during
22        calendar year 2011, and (v) was incorporated no more
23        than 5 years before the filing of an application for an
24        Agreement.
25        (1.5) The election under this subsection (f) may also
26    be made by a Taxpayer for any Credit awarded pursuant to an

 

 

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1    agreement that was executed between January 1, 2011 and
2    June 30, 2011, if the Taxpayer (i) is primarily engaged in
3    the manufacture of inner tubes or tires, or both, from
4    natural and synthetic rubber, (ii) employs a minimum of
5    2,400 full-time employees in Illinois at the time of
6    application, (iii) creates at least 350 full-time jobs and
7    retains at least 250 full-time jobs in Illinois that would
8    have been at risk of being created or retained outside of
9    Illinois, and (iv) makes a capital investment of at least
10    $200,000,000 at the project location.
11        (1.6) The election under this subsection (f) may also
12    be made by a Taxpayer for any Credit awarded pursuant to an
13    agreement that was executed within 150 days after the
14    effective date of this amendatory Act of the 97th General
15    Assembly, if the Taxpayer (i) is primarily engaged in the
16    operation of a discount department store, (ii) maintains
17    its corporate headquarters in Illinois, (iii) employs a
18    minimum of 4,250 full-time employees at its corporate
19    headquarters in Illinois at the time of application, (iv)
20    retains at least 4,250 full-time jobs in Illinois that
21    would have been at risk of being relocated outside of
22    Illinois, (v) had a minimum of $40,000,000,000 in total
23    revenue in 2010, and (vi) makes a capital investment of at
24    least $300,000,000 at the project location.
25        (1.7) Notwithstanding any other provision of law, the
26    election under this subsection (f) may also be made by a

 

 

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1    Taxpayer for any Credit awarded pursuant to an agreement
2    that was executed or applied for on or after July 1, 2011
3    and on or before March 31, 2012, if the Taxpayer is
4    primarily engaged in the manufacture of original and
5    aftermarket filtration parts and products for automobiles,
6    motor vehicles, light duty motor vehicles, light trucks and
7    utility vehicles, and heavy duty trucks, (ii) employs a
8    minimum of 1,000 full-time employees in Illinois at the
9    time of application, (iii) creates at least 250 full-time
10    jobs in Illinois, (iv) relocates its corporate
11    headquarters to Illinois from another state, and (v) makes
12    a capital investment of at least $4,000,000 at the project
13    location.
14        (1.8) Notwithstanding any other provision of law, an
15    election under this subsection (f) may also be made by a
16    Taxpayer that:
17            (A) is primarily engaged in business as a
18        distributor of industrial and specialty chemicals;
19            (B) relocates its corporate headquarters to
20        Illinois from another State; and
21            (C) entered into an Agreement for a Credit prior to
22        the effective date of this amendatory Act of the 98th
23        General Assembly, which required the Taxpayer to (i)
24        make a capital investment of at least $9,300,000, (ii)
25        retain at least 100 full-time jobs at project locations
26        in Illinois, and (iii) create at least 69 full-time

 

 

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1        jobs at project locations in Illinois.
2        (2) An election under this subsection shall allow the
3    credit to be taken against payments otherwise due under
4    Section 704A of the Illinois Income Tax Act during the
5    first calendar year beginning after the end of the taxable
6    year in which the credit is awarded under this Act, except
7    that an election under paragraph (1.8) shall allow the
8    credit to be taken against payments otherwise due under
9    Section 704A of the Illinois Income Tax Act during the
10    12-month period beginning with the first month after the
11    Taxpayer relocates its corporate headquarters to Illinois.
12        (3) The election shall be made in the form and manner
13    required by the Illinois Department of Revenue and, once
14    made, shall be irrevocable.
15        (4) If a Taxpayer who meets the requirements of
16    subparagraph (A) of paragraph (1) of this subsection (f)
17    elects to claim the Credit against its withholdings as
18    provided in this subsection (f), then, on and after the
19    date of the election, the terms of the Agreement between
20    the Taxpayer and the Department may not be further amended
21    during the term of the Agreement.
22    (g) A pass-through entity that has been awarded a credit
23under this Act, its shareholders, or its partners may treat
24some or all of the credit awarded pursuant to this Act as a tax
25payment for purposes of the Illinois Income Tax Act. The term
26"tax payment" means a payment as described in Article 6 or

 

 

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1Article 8 of the Illinois Income Tax Act or a composite payment
2made by a pass-through entity on behalf of any of its
3shareholders or partners to satisfy such shareholders' or
4partners' taxes imposed pursuant to subsections (a) and (b) of
5Section 201 of the Illinois Income Tax Act. In no event shall
6the amount of the award credited pursuant to this Act exceed
7the Illinois income tax liability of the pass-through entity or
8its shareholders or partners for the taxable year.
9(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
1096-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
113-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".