SB0517sam002 99TH GENERAL ASSEMBLY

Sen. James F. Clayborne, Jr.

Filed: 5/3/2016

09900SB0517sam002 LRB099 03055 HLH 48207 a

AMENDMENT TO SENATE BILL 517

AMENDMENT NO. ______. Amend Senate Bill 517 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Targeted Tax Credit Act.

Section 5. Purpose. The General Assembly finds that the Illinois economy is highly vulnerable to other states that have financial incentive programs for business relocations. Because of the incentive programs of these competitor locations, Illinois must move aggressively with new business development tools so that Illinois is more competitive in site location decision-making. The State must not only continue to work with firms to help them locate their new plants and facilities in this State, but must also provide competitive location tax credits in support of the location and expansion of operations of commerce and industry. Illinois must create an atmosphere to retain talent within its borders to maintain a global competitiveness. In an increasingly global economy, Illinois would benefit from rational and strategic use of State resources in support of business development, business retention, and growth.

Additionally, there are areas within Illinois' borders that have struggled to combat long-term joblessness and are in need of special business assistance to restore their status as viable economic units that are able to keep and attract business with the rational use of tax credits. It is no longer acceptable for these economic pockets to remain economically unproductive, impoverished, and underdeveloped.

Furthermore, the State must do more to encourage entrepreneurship and small business growth with the transfer of tax credits to the small business sector. This will cause ripple effects and strong secondary economic growth with further investment and job creation in Illinois. New and expanding industries have economic benefits beyond the jobs and income generated by original investments. These small business enterprises have historically provided a major source of new jobs in this State and their efforts must be vigorously supported.

Section 10. Definitions. As used in this Act:

"Agreement" means the agreement between a taxpayer and the Department.

"Applicant" means a taxpayer that is operating a business, or plans to operate a business, in this State and is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, assembling, warehousing, or distributing products, conducting research and development, providing tourism services, office industries, or agricultural processing, excluding retail, retail food, health, or professional services. "Applicant" does not include a taxpayer who closes or substantially reduces an operation at one location in this State and relocates substantially the same operation to another location in this State. This does not prohibit a taxpayer from expanding its operations at another location in the State, provided the existing operations of a similar location within the State are not closed or substantially reduced. This also does not prohibit a taxpayer from moving its operations from one location in this State to another location in this State for the purpose of expanding its operations, provided that the Department determines that the expansion cannot reasonably be accommodated within the municipality in which the business is located, or in the case of a business located in an incorporated area of the county, within the county in which the business in located, after conferring with the chief elected official of the municipality or county and taking into consideration any evidence offered by the municipality or county regarding the ability to accommodate expansion within the municipality or county.

"Border county" means any county in this State sharing a boundary with another state.

"Census tract" means a geographic unit whose boundaries are determined by the United States Census Bureau.

"Committee" means the Targeted Tax Credit Committee.

"Credit" means the amount agreed to between the Department and the applicant under this Act, but not to exceed the incremental income tax attributable to the applicant's project.

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours. An individual for whom a W-2 is issued by a Professional Employment Organization is a full-time employee if employed in the service of the applicant for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment to the applicant.

"Incremental income tax" means the total amount withheld during the taxable year from the compensation of new employees under Article 7 of the Illinois Income Tax Act arising from employment at a project that is the subject of an agreement.

"New employee".

(1) "New employee" means a full-time employee first employed by a taxpayer in a project that is the subject of an agreement and who is hired after the taxpayer enters into the tax credit agreement.

(2) "New employee" does not include:

(A) an employee of the taxpayer who performs a job that was previously performed by another employee of that job;

(B) an employee of the taxpayer employed for at least 6 months before hiring the employee or an individual previously employed in Illinois by a related member of the taxpayer and whose employment was shifted to the taxpayer after the taxpayer entered into the tax credit agreement; or

(C) a child, grandchild, parent, or spouse not legally separated from the individual, of any individual who has a direct or an indirect ownership interest of at least 5% in the profits, capital, or value of the taxpayer.

(3) Notwithstanding subparagraph (A) of paragraph (2) of this definition, an employee may be considered a new employee under the agreement if the employee performs a job that was previously performed by an employee who was:

(A) treated under the agreement as a new employee; and

(B) promoted by the taxpayer to another job.

(4) Notwithstanding paragraph (1) of this definition, the Department may award a credit to an applicant for an employee hired prior to the date of the agreement if:

(A) the applicant receives a letter from the Department stating an intent to enter into a credit agreement;

(B) the letter described in subparagraph (A) is issued by the Department no later than 15 days after the effective date of this Act; and

(C) the employee was hired after the date the letter described in subparagraph (A) was issued.

"Noncompliance date" means the day following the last date upon which the taxpayer was in compliance with the requirements of the agreement and the provisions of this Act, as determined by the Director under Section 75.

"Pass-through entity" means an entity that is exempt from the tax under subsection (b) or (c) of Section 205 of the Illinois Income Tax Act.

"Professional Employer Organization" or "PEO" means an employee leasing company as defined in Section 206.1 of the Unemployment Insurance Act.

"Qualifying border county" is a border county with an unemployment rate that is at least 120% of any adjoining county located outside of this State.

"Qualifying census tract" is a census tract with an unemployment rate that is at least 120% of the unemployment rate of this State.

"Qualifying small business" is a small business that has increased employment over the employment levels of its previous 2 tax years.

"Related member" means a person who, with respect to the taxpayer during any portion of the taxable year, is any one of the following:

(1) an individual stockholder if the stockholder and the members of the stockholder's family (under Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the taxpayer's outstanding stock;

(2) a partnership, estate, or trust and any partner or beneficiary if, in the aggregate, at least 50% of the profits, capital, stock, or value of the taxpayer are owned directly, indirectly, beneficially, or constructively;

(3) a corporation and any party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively at least 50% of the value of the corporation's outstanding stock;

(4) a corporation and any party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own in the aggregate at least 50% of the profits, capital, stock, or value of the taxpayer; or

(5) a person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except, for purposes of determining whether a person is a related member under this paragraph (5), 20% shall be substituted for 5% wherever 5% appears in Section 1563(e) of the Internal Revenue Code.

"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.

"Small business" means any for-profit entity, independently owned and operated, that has 500 or fewer full-time employees.

"Taxpayer" means an individual, corporation, partnership, or other entity that has any Illinois income tax liability.

Section 15. Powers of the Department. The Department, in addition to those powers granted under the Civil Administrative Code of Illinois, is granted powers necessary to carry out the provisions of this Act, including, but not limited to, power to:

(1) Promulgate procedures, rules, or regulations deemed necessary for the administration of the programs, establish forms for applications, notifications, contracts, or any other agreements, and accept applications.

(2) Assist taxpayers under this Act and cooperate with taxpayers that are parties to agreements in order to promote, foster, and support economic development, capital investment, and job creation or retention within this State.

(3) Enter into agreements and memoranda of understanding for participation with federal government agencies, local units of government, universities, research foundations or institutions, regional economic development corporations, or other organizations for the purposes of this Act.

(4) Gather information and conduct inquiries, including, but not limited to, information concerning applicants for the purpose of making any necessary designations or certifications or to gather information to assist the Committee with any recommendations in the furtherance of the purposes of this Act.

(5) Establish, negotiate, and effectuate any term, agreement, or other document with any person, and to consent, subject to the provisions of any agreement with another party, to the modification of any agreement to which the Department is a party.

(6) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses from applicants, including, but not limited to, any application fees, commitment fees, program fees, tax credit transfer fees, financing charges, any reasonable fees to defray the cost of certifying eligible applicants, publication fees to pay expenses for the administration, staffing, or operation of the Department's or Committee's activities under this Act, or preparation, implementation, and enforcement of the terms of an agreement, or for consultation, advisory and legal fees, and other costs. The Department shall determine the amount of the fees and the payment schedule. The amount of the fees need not be uniform among the various programs administered; however, all fees shall be the responsibility of the applicant.

(7) Provide sufficient personnel to permit administration, staffing, operation, and related contractual support from funds made available through charges to applicants, acquired through other means, or funds as may be appropriated by the General Assembly for the administration of products or services under this Act.

(8) Require applicants, upon written request, to issue any necessary authorization to the appropriate federal, State, or local authority for the release of information concerning a project being considered under the provisions of this Act, including, but not be limited to, financial reports, returns, or records relating to taxpayers or their projects. All applicants must consent to have any written agreement posted on the Department's website.

(9) Require that a taxpayer shall at all times keep proper books of record and account in accordance with generally accepted accounting principles consistently applied for the books, records, or papers related to the agreement in the custody or control of the taxpayer and open for reasonable Department inspection and audits, including, but not limited to, the making of copies of the books, records, or papers, and the inspection or appraisal of any of the taxpayer or project assets.

(10) Take whatever actions necessary to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose, lease, or rent real or personal property that the Department may receive as a result of these actions.

Section 20. Tax credit awards.

(a) Subject to the conditions set forth in this Act, a taxpayer is entitled to a credit against or, as described in subsection (g) of this Section, a payment towards taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act that may be imposed on the taxpayer for a taxable year beginning on or after January 1, 2017, if the taxpayer is awarded a credit by the Department under this Act for that taxable year.

(b) The Department shall make credit awards under this Act to foster job creation and retention in Illinois.

(c) A person that proposes a project to create new jobs in Illinois must enter into an agreement with the Department for the credit under this Act.

(d) The credit shall be claimed for the taxable years specified in the agreement.

(e) The credit shall not exceed the incremental income tax attributable to the project that is the subject of the agreement.

(f) Nothing herein shall prohibit a tax credit award to an applicant that uses a PEO if all other award criteria are satisfied.

(g) A pass-through entity, or its shareholders or partners, that have been awarded a credit under this Act may treat some or all of the credit awarded as a tax payment for purposes of the Illinois Income Tax Act. For purposes of this subsection (g), the term "tax payment" means a payment under Article 6 or Article 8 of the Illinois Income Tax Act or a composite payment made by a pass-through entity on behalf of any of its shareholders or partners to satisfy such shareholders' or partners' taxes imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act. In no event shall the amount of the award credited under this Act exceed the Illinois income tax liability of the pass-through entity, or its shareholders or partners, for the taxable year.

(h) Tax credits awarded under this Act may be sold, assigned, or transferred, in whole or in part, to an Illinois small business taxpayer, subject to the following conditions:

(1) A taxpayer awarded an income tax credit under this Act may make only a single sale, assignment, or transfer of the tax credit earned in a taxable year; however, the credit may be sold, assigned, or transferred to one or more transferees.

(2) The tax credit earned by the transferor may be transferred before the due date, including extensions, of the Illinois income tax return of the transferor. The amount of the credit transferred to the transferee or transferees may not exceed the amount of the credit earned by the transferor in the transferor's taxable year.

(3) Written request for the transfer or sale of credits awarded under this Act shall be submitted to the Department. The Department shall provide by rule the information required to be provided in such written notification.

(4) The transfer or sale of tax credits under this subsection does not extend the time during which those tax credits can be used. The carry-forward period for a tax credit that is transferred or sold shall begin on the date on which the tax credit was originally issued.

(5) A transferee shall have only those rights to claim and use the credit that were available to the taxpayer that earned the credit, except that credits sold or transferred may not be used against a transferee's withholding tax liability.

(6) If the taxpayer earning the credit fails to comply with the terms and requirements of the agreement, and, under this Act, notice is provided to the Department of Revenue of the taxpayer's non-compliance, the Department shall hold the transferor liable for any tax, penalty, or interest due as a result of noncompliance with the agreement.

Section 25. Tax credit transfer. The Department shall establish a tax credit exchange to allow taxpayers that are a party to an agreement to negotiate with qualifying small businesses. A one-time transfer of any credits earned is allowed. Credits may be transferred to more than one qualifying small business. The Department must certify that a small business is qualified before they may enter the exchange. The Department shall charge a fee for such transfer.

Section 30. Application for a project to create and retain new jobs.

(a) Any taxpayer proposing a project located or planned to be located in a qualifying border county or qualifying census tract, or proposing a project having a direct and substantial employment impact on such counties or census tracts, may request consideration for designation of its project by formal written letter of request and by formal application to the Department, in which the applicant states its intent to make at least a specified level of investment and intends to hire, retain, or both hire and retain a specified number of full-time employees at a designated location in Illinois. Retention is necessary only in cases in which there is an existing facility. The Department shall require a formal application from an applicant and a formal letter of request for assistance.

(b) In order to qualify for credits under this Act, an applicant's project must be located in a qualifying border county or qualifying census tract or have a direct and substantial employment impact on such counties or census tracts and:

(1) involve an investment of at least $5,000,000 in capital improvements to be placed in service and employ at least 25 new employees within this State as a direct result of the project;

(2) involve an investment, in an amount expressly specified by the Department, in capital improvements to be placed in service and employ, in at least an amount expressly specified by the Department, new employees within this State, provided that the Department or the Committee has determined that the project will provide a substantial economic benefit to this State and either a qualifying border county or a qualifying census tract; this shall be established using econometric modeling; or

(3) if the applicant has 100 or fewer employees, involve an investment of at least $1,000,000 in capital improvements to be placed in service and employ at least 5 new employees within this State as a direct result of the project.

(c) After receipt of an application, the Department may enter into an agreement with the applicant if the application is approved in accordance with Section 35.

Section 35. Review of application.

(a) The Targeted Tax Credit Review Committee is hereby created and shall be composed of the following 5 members:

(1) the Director of the Department of Commerce and Economic Opportunity or his or her designee;

(2) the Director of the Governor's Office of Management and Budget, or his or her designee;

(3) the Director of the Department of Revenue, or his or her designee;

(4) the State Treasurer, or his or her designee; and

(5) an individual who is the chief executive officer of a not-for-profit economic development corporation, appointed by the Governor.

(b) The Director shall serve as Chairman of the Committee and all members, except the State Treasurer, shall serve at the pleasure of the Governor.

(c) The Committee shall convene on a quarterly basis to review all applications received that are requesting tax credits in excess of $10,000,000 over a 10-year period. It shall conduct studies, econometric modeling, review information with respect to applicants, and make decisions for projects to benefit this State, all in a manner it deems necessary. The Department shall provide, or contract to provide, staff and resources necessary for the review process. The Committee shall compare and evaluate each application based upon the total economic impact on the border county or census tract and this State. In making its decision that an applicant's application for tax credits should or should not be approved, the Committee shall determine that the following conditions exist:

(1) The applicant's project is located in a qualifying border county or qualifying census tract or has a direct and substantial employment impact on such counties or census tracts.

(2) The applicant's project intends, as required by subsection (b) of Section 30, to make the required investment in this State and intends to hire the required number of new employees in Illinois as a result of that project.

(3) The applicant's project is economically sound and will benefit the people of this State by increasing opportunities for employment and strengthening the economy of this State.

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

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

(6) The credit is not prohibited by Section 45 of this Act.

(7) The jobs to be created or retained must meet or exceed the median income in the county where the project is located by 20%.

For applicants requesting tax credits of $10,000,000 or less over a 10-year period, in making its decision that an applicant's application for tax credits should or should not be approved, the Department shall determine whether the conditions set forth in paragraphs (1) through (7) exist.

(d) For applicants that are requesting tax credits in excess of $10,000,000 over a 10-year period, a majority of the Committee shall determine whether an application is approved or denied. For applicants requesting tax credits of $10,000,000 or less over a 10-year period, the Department shall determine whether an application is approved or denied.

(e) For applicants that are requesting tax credits in excess of $10,000,000 over a 10-year period, if it is determined by the Director that a project has a substantial benefit to this State, the Director shall have the power to call special meetings of the Committee upon due notice.

Section 40. Limitation to amount of costs of specified items. The total amount of the credit allowed during all tax years may not exceed the aggregate amount of costs incurred by the taxpayer during all prior tax years for the following items, to the extent provided in the agreement:

(1) capital investment, including, but not limited to, equipment, buildings, or land;

(2) infrastructure development;

(3) debt service, except refinancing of current debt;

(4) research and development;

(5) job training and education;

(6) lease costs; or

(7) relocation costs.

Section 45. Relocation of jobs in Illinois. A taxpayer is not entitled to claim a credit with respect to any jobs that the Taxpayer relocates from one site in Illinois to another site in Illinois. Moreover, any full-time employee of an eligible business relocated to Illinois in connection with that qualifying project is deemed to be a new employee for purposes of this Act. Determinations under this Section shall be made by the Department.

Section 50. Determination of amount of the credit. In determining the amount of the credit that should be awarded, the Committee or, in the case of requests for tax credits of $10,000,000 or less over a 10-year period, the Department shall take into consideration all of the following factors:

(1) the number and location of jobs created or retained in relation to the economy of the qualifying border county or qualifying census tract and where the projected investment is to occur;

(2) the amount of the credit requested by the taxpayer;

(3) the potential impact on the economy of Illinois;

(4) the quality of the jobs to be created or retained in the area, including, but not limited to, how much the jobs created or retained exceed the median income, benefits in the county, and the quality of the employee benefits;

(5) the incremental payroll attributable to the project;

(6) the capital investment attributable to the project;

(7) the costs to Illinois and to the affected political subdivisions with respect to the project; and

(8) the financial assistance that is otherwise provided by Illinois and the affected political subdivisions.

Section 55. Amount and duration of the credit. The Committee or, in the case of requests for tax credits of $10,000,000 or less over a 10-year period, the Department shall determine the specific amount of tax credits awarded under this Act each fiscal year. The agreements executed in any fiscal year for applications requesting $10,000,000 or less over a 10-year period shall not exceed a maximum 10-year commitment of $50,000,000. The duration of the credit may not exceed 10 taxable years, however, awarded credits may be carried forward for up to 5 years from the date they were issued. The credit shall be stated as a percentage of the incremental income tax attributable to the applicant's project and shall include a fixed dollar limitation for each year of any such agreement.

Section 60. Contents of agreements with applicants. The Department shall enter into an agreement with an applicant that is awarded a credit under this Act. The agreement shall include all of the following:

(1) A detailed description of the project that is the subject of the agreement, including the location and amount of the investment and jobs created or retained.

(2) The duration of the credit and the first taxable year for which the credit may be claimed.

(3) The maximum credit amount that will be allowed for each taxable year.

(4) A requirement that the taxpayer shall maintain operations at the project location for 5 years after the project is placed in service.

(5) A specific method for determining the number of new employees employed during a taxable year.

(6) A requirement that the taxpayer shall annually report to the Department the number of new employees, the incremental income tax withheld in connection with the new employees, and any other information the Director needs to perform its duties under this Act.

(7) A requirement that the Director is authorized to verify, with the appropriate State agencies, the amounts reported under paragraph (6) of this Section, and, upon verification, shall issue a certificate to the taxpayer stating that the amounts have been verified.

(8) A requirement that the taxpayer shall provide written notification to the Director not more than 30 days after the taxpayer makes or receives a proposal that would transfer the taxpayer's State tax liability obligations to a successor Taxpayer.

(9) A detailed description of the number of new employees to be hired, and the occupation and payroll of the full-time jobs to be created or retained as a result of the project.

(10) The minimum investment the business enterprise will make in capital improvements, the time period for placing the property in service, and the designated location in Illinois for the investment.

(11) A requirement that the taxpayer shall provide written notification to the Director and the Committee not more than 30 days after the Taxpayer determines that the minimum job creation or retention, employment payroll, or investment is no longer or will no longer be achieved or maintained, as set forth in the terms and conditions of the agreement.

(12) A provision that, if the total number of new employees falls below a specified level, the allowance of the credit shall be suspended until the number of new employees equals or exceeds the agreement amount.

(13) A detailed description of the items for which the costs incurred by the taxpayer will be included in the limitation on the credit provided in Section 40.

(14) A provision that, if the taxpayer never meets either the investment or job creation and retention requirements specified in the agreement during the entire 5-year period beginning on the first day of the first taxable year in which the agreement is executed and ending on the last day of the fifth taxable year after the agreement is executed, then the agreement is automatically terminated on the last day of the fifth taxable year after the agreement is executed and the taxpayer is not entitled to the award of any credits for any of that 5-year period.

(15) Any other performance conditions or contract provisions as the Department determines are appropriate.

The Department shall post on its website the terms of each agreement entered into under this Act on or after the effective date of this Act.

Section 65. Certificate of verification; submission to the Department of Revenue. A taxpayer claiming a credit under this Act shall submit to the Department of Revenue a copy of the Director's certificate of verification under this Act for the taxable year. Failure to submit a copy of the certificate with the taxpayer's tax return shall not invalidate a claim for a credit. For a taxpayer to be eligible for a certificate of verification, the taxpayer shall provide proof as required by the Department prior to the end of each calendar year, including, but not limited to, attestation by the taxpayer that:

(1) The project has substantially achieved the level of new full-time jobs specified in its agreement.

(2) The project has substantially achieved the level of annual payroll in Illinois specified in its agreement.

(3) The project has substantially achieved the level of capital investment in Illinois specified in its agreement.

Section 70. Pass-through entity.

(a) The shareholders or partners of a taxpayer that is a pass-through entity shall be entitled to the credit allowed under the agreement.

(b) The credit provided under subsection (a) of this Section is in addition to any credit to which a shareholder or partner is otherwise entitled under a separate agreement under this Act. A pass-through entity, and a shareholder or partner of the pass-through entity, may not claim more than one credit under the same agreement.

Section 75. Noncompliance; notice; assessment. If the Director determines that a taxpayer that has received a credit under this Act is not complying with the requirements of the agreement or all of the provisions of this Act, the Director shall provide notice to the taxpayer of the alleged noncompliance, and allow the taxpayer a hearing under the Illinois Administrative Procedure Act. If, after such notice and any hearing, the Director determines that a noncompliance exists, the Director shall issue to the Department of Revenue notice to that effect, stating the noncompliance date.

Section 80. Annual report. On or before July 1 each year, the Committee shall submit a report the Department containing the following information with respect to applications considered by the Committee. The report shall include information on the number of agreements that were entered into under this Act during the preceding calendar year, a description of the project that is the subject of each agreement, an update on the status of projects under agreements entered into before the preceding calendar year, and the sum of the credits awarded under this Act. A copy of the report shall be delivered to the Governor and to each member of the General Assembly.

Section 85. Evaluation of Targeted Tax Credit Program. The Department shall evaluate the Targeted Tax Credit Program on a biennial basis. The evaluation shall include an assessment of the effectiveness of the program in creating or retaining jobs in Illinois and of the revenue impact of the Program, and may include a review of the practices and experiences of other states with similar programs. The Director shall submit a report on the evaluation to the Governor and the General Assembly after June 30 and before November 1 of each odd-numbered year.

Section 90. No new agreements after December 31, 2029. The Department shall not enter into any new agreements under the provisions of Section 60 of this Act after December 31, 2029.

Section 95. Adoption of rules. The Department shall adopt rules necessary to implement this Act. The rules may provide for recipients of credits under this Act to be charged fees to cover administrative costs of the Targeted Tax Credit Program. Fees collected shall be deposited into the Targeted Tax Credit Fund.

Section 100. The Targeted Tax Credit Fund.

(a) The Targeted Tax Credit Fund is established to be used exclusively for the purposes of this Act, including paying for the costs of promoting and administering the Targeted Tax Credit Program. The Fund shall be administered by the Department.

(b) The Fund consists of collected fees, appropriations from the General Assembly, and gifts and grants to the Fund.

(c) The State Treasurer shall invest the money in the Fund not currently needed to meet the obligations of the Fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited into the Fund.

(d) The money in the Fund at the end of a State fiscal year remains in the Fund to be used exclusively for the purposes of this Act. Expenditures from the Fund are subject to appropriation by the General Assembly.

Section 105. Program terms and conditions.

(a) Any documentary materials or data made available or received by any member of a Committee or any agent or employee of the Department shall be deemed confidential and shall not be deemed public records to the extent that the materials or data consist of trade secrets, commercial or financial information regarding the operation of the business conducted by the Applicant or recipient of any tax credit under this Act, or any information regarding the competitive position of a business in a particular field of endeavor.

(b) Nothing in this Act shall be construed as creating any rights in any applicant to enter into an agreement or in any person to challenge the terms of any agreement.

Section 900. The State Finance Act is amended by adding Section 5.875 as follows:

(30 ILCS 105/5.875 new)

Sec. 5.875. The Targeted Tax Credit Fund.

(35 ILCS 10/Act rep.)

Section 905. The Economic Development for a Growing Economy Tax Credit Act is repealed.

Section 999. Effective date. This Act takes effect upon becoming law, except that Section 905 takes effect one year after this Act becomes law.".