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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2748 Introduced 2/16/2016, by Sen. Karen McConnaughay SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/211 | | 35 ILCS 10/5-5 | | 35 ILCS 10/5-15 | | 35 ILCS 10/5-45 | | 215 ILCS 5/405.1 new | |
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Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Authorizes taxpayers to sell, assign, or transfer credits awarded under the Economic Development for a Growing Economy Tax Credit Act. Provides that credits awarded under the Economic Development for a Growing Economy Tax Credit Act may also be taken against privilege and retaliatory taxes paid under the Illinois Insurance Code. Amends the Illinois Insurance Code to make conforming changes. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Income Tax Act is amended by |
5 | | changing Section 211 as follows:
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6 | | (35 ILCS 5/211)
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7 | | Sec. 211. Economic Development for a Growing Economy Tax |
8 | | Credit. For tax years beginning on or after January 1, 1999, a |
9 | | Taxpayer
who has entered into an Agreement under the Economic |
10 | | Development for a Growing
Economy Tax Credit Act is entitled to |
11 | | a credit against the taxes imposed
under subsections (a) and |
12 | | (b) of Section 201 of this Act and the taxes imposed under |
13 | | Sections 409, 444, and 444.1 of the Illinois Insurance Code in |
14 | | an amount to be
determined in the Agreement. If the Taxpayer is |
15 | | a partnership or Subchapter
S corporation, the credit shall be |
16 | | allowed to the partners or shareholders in
accordance with the |
17 | | determination of income and distributive share of income
under |
18 | | Sections 702 and 704 and subchapter S of the Internal Revenue |
19 | | Code.
The Department, in cooperation with the Department
of |
20 | | Commerce and Economic Opportunity, shall prescribe rules to |
21 | | enforce and
administer the provisions of this Section. This |
22 | | Section is
exempt from the provisions of Section 250 of this |
23 | | Act.
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1 | | The credit shall be subject to the conditions set forth in
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2 | | the Agreement and the following limitations:
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3 | | (1) The tax credit shall not exceed the Incremental |
4 | | Income Tax
(as defined in Section 5-5 of the Economic |
5 | | Development for a Growing Economy
Tax Credit Act) with |
6 | | respect to the project.
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7 | | (2) The amount of the credit allowed during the tax |
8 | | year plus the sum of
all amounts allowed in prior years |
9 | | shall not exceed 100% of the aggregate
amount expended by |
10 | | the Taxpayer during all prior tax years on approved costs
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11 | | defined by Agreement.
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12 | | (3) The amount of the credit shall be determined on an |
13 | | annual
basis. Except as applied in a carryover year |
14 | | pursuant to Section 211(4) of
this Act, the credit may not |
15 | | be applied against any State
income tax liability in more |
16 | | than 10 taxable
years; provided, however, that (i) an |
17 | | eligible business certified by the
Department of Commerce |
18 | | and Economic Opportunity under the Corporate Headquarters
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19 | | Relocation Act may not
apply the credit against any of its |
20 | | State income tax liability in more than 15
taxable years
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21 | | and (ii) credits allowed to that eligible business are |
22 | | subject to the
conditions
and requirements set forth in |
23 | | Sections 5-35 and 5-45 of the Economic
Development for a |
24 | | Growing Economy Tax Credit Act.
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25 | | (4) The credit taken against the taxes imposed
under |
26 | | subsections (a) and (b) of Section 201 of this Act may not |
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1 | | exceed the amount of taxes imposed pursuant to
subsections |
2 | | (a) and (b) of Section 201 of this Act. Any credit
that is |
3 | | unused in the year the credit is computed may be carried |
4 | | forward and
applied to the tax liability of the 5 taxable |
5 | | years following the excess credit
year or may be taken as a |
6 | | credit against the taxes imposed under Section 409, 444, or |
7 | | 444.1 of the Illinois Insurance Code, as provided in the |
8 | | Agreement . Credits that are carried forward The credit |
9 | | shall be applied to the earliest year for which there is a
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10 | | tax liability. If there are credits from more than one tax |
11 | | year that are
available to offset a liability, the earlier |
12 | | credit shall be applied first.
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13 | | (5) No credit shall be allowed with respect to any |
14 | | Agreement for any
taxable year ending after the |
15 | | Noncompliance Date. Upon receiving notification
by the |
16 | | Department of Commerce and Economic Opportunity of the |
17 | | noncompliance of a
Taxpayer with an Agreement, the |
18 | | Department shall notify the Taxpayer that no
credit is |
19 | | allowed with respect to that Agreement for any taxable year |
20 | | ending
after the Noncompliance Date, as stated in such |
21 | | notification. If any credit
has been allowed with respect |
22 | | to an Agreement for a taxable year ending after
the |
23 | | Noncompliance Date for that Agreement, any refund paid to |
24 | | the
Taxpayer for that taxable year shall, to the extent of |
25 | | that credit allowed, be
an erroneous refund within the |
26 | | meaning of Section 912 of this Act.
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1 | | (5.5) A sale, assignment, or transfer of the tax credit |
2 | | award may be made by the taxpayer in accordance with rules |
3 | | adopted by the Department of Commerce and Economic |
4 | | Opportunity.
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5 | | (6) For purposes of this Section, the terms |
6 | | "Agreement", "Incremental
Income Tax", and "Noncompliance |
7 | | Date" have the same meaning as when used
in the Economic |
8 | | Development for a Growing Economy Tax Credit Act.
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9 | | (Source: P.A. 94-793, eff. 5-19-06.)
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10 | | Section 10. The Economic Development for a Growing Economy |
11 | | Tax Credit Act is amended by changing Sections 5-5, 5-15, and |
12 | | 5-45 as follows:
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13 | | (35 ILCS 10/5-5)
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14 | | Sec. 5-5. Definitions. As used in this Act:
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15 | | "Agreement" means the Agreement between a Taxpayer and the |
16 | | Department under
the provisions of Section 5-50 of this Act.
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17 | | "Applicant" means a Taxpayer that is operating a business |
18 | | located or that
the Taxpayer plans to locate within the State |
19 | | of Illinois and that is engaged
in interstate or intrastate |
20 | | commerce for the purpose of manufacturing,
processing, |
21 | | assembling, warehousing, or distributing products, conducting
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22 | | research and development, providing tourism services, or |
23 | | providing services
in interstate commerce, office industries, |
24 | | or agricultural processing, but
excluding retail, retail food, |
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1 | | health, or professional services.
"Applicant" does not include |
2 | | a Taxpayer who closes or
substantially reduces an operation at |
3 | | one location in the State and relocates
substantially the same |
4 | | operation to another location in the State. This does
not |
5 | | prohibit a Taxpayer from expanding its operations at another |
6 | | location in
the State, provided that existing operations of a |
7 | | similar nature located within
the State are not closed or |
8 | | substantially reduced. This also does not prohibit
a Taxpayer |
9 | | from moving its operations from one location in the State to |
10 | | another
location in the State for the purpose of expanding the |
11 | | operation provided that
the Department determines that |
12 | | expansion cannot reasonably be accommodated
within the |
13 | | municipality in which the business is located, or in the case |
14 | | of a
business located in an incorporated area of the county, |
15 | | within the county in
which the business is located, after |
16 | | conferring with the chief elected
official of the municipality |
17 | | or county and taking into consideration any
evidence offered by |
18 | | the municipality or county regarding the ability to
accommodate |
19 | | expansion within the municipality or county.
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20 | | "Committee" means the Illinois Business Investment |
21 | | Committee created under
Section 5-25 of this Act within the |
22 | | Illinois Economic Development Board.
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23 | | "Credit" means the amount agreed to between the Department |
24 | | and Applicant
under this Act, but not to exceed the Incremental |
25 | | Income Tax attributable to
the Applicant's project.
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26 | | "Department" means the Department of Commerce and Economic |
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1 | | Opportunity.
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2 | | "Director" means the Director of Commerce and Economic |
3 | | Opportunity.
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4 | | "Full-time Employee" means an individual who is employed |
5 | | for consideration
for at least 35 hours each week or who |
6 | | renders any other standard of service
generally accepted by |
7 | | industry custom or practice as full-time employment. An |
8 | | individual for whom a W-2 is issued by a Professional Employer |
9 | | Organization (PEO) is a full-time employee if employed in the |
10 | | service of the Applicant for consideration for at least 35 |
11 | | hours each week or who renders any other standard of service |
12 | | generally accepted by industry custom or practice as full-time |
13 | | employment to Applicant.
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14 | | "Incremental Income Tax" means the total amount withheld |
15 | | during the taxable
year from the compensation of New Employees |
16 | | under Article 7 of the Illinois
Income Tax Act arising from |
17 | | employment at a project that is the subject of an
Agreement.
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18 | | "New Employee" means:
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19 | | (a) A Full-time Employee first employed by a Taxpayer |
20 | | in the project
that is the subject of an Agreement and who |
21 | | is hired after the Taxpayer
enters into the tax credit |
22 | | Agreement.
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23 | | (b) The term "New Employee" does not include:
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24 | | (1) an employee of the Taxpayer who performs a job |
25 | | that was previously
performed by another employee, if |
26 | | that job existed for at least 6
months before hiring |
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1 | | the employee;
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2 | | (2) an employee of the Taxpayer who was previously |
3 | | employed in
Illinois by a Related Member of the |
4 | | Taxpayer and whose employment was
shifted to the |
5 | | Taxpayer after the Taxpayer entered into the tax credit
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6 | | Agreement; or
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7 | | (3) a child, grandchild, parent, or spouse, other |
8 | | than a spouse who
is legally separated from the |
9 | | individual, of any individual who has a direct
or an |
10 | | indirect ownership interest of at least 5% in the |
11 | | profits, capital, or
value of the Taxpayer.
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12 | | (c) Notwithstanding paragraph (1) of subsection (b), |
13 | | an employee may be
considered a New Employee under the |
14 | | Agreement if the employee performs a job
that was |
15 | | previously performed by an employee who was:
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16 | | (1) treated under the Agreement as a New Employee; |
17 | | and
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18 | | (2) promoted by the Taxpayer to another job.
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19 | | (d) Notwithstanding subsection (a), the Department may |
20 | | award Credit to an
Applicant with respect to an employee |
21 | | hired prior to the date of the Agreement
if:
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22 | | (1) the Applicant is in receipt of a letter from |
23 | | the Department stating
an
intent to enter into a credit |
24 | | Agreement;
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25 | | (2) the letter described in paragraph (1) is issued |
26 | | by the
Department not later than 15 days after the |
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1 | | effective date of this Act; and
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2 | | (3) the employee was hired after the date the |
3 | | letter described in
paragraph (1) was issued.
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4 | | "Noncompliance Date" means, in the case of a Taxpayer that |
5 | | is not complying
with the requirements of the Agreement or the |
6 | | provisions of this Act, the day
following the last date upon |
7 | | which the Taxpayer was in compliance with the
requirements of |
8 | | the Agreement and the provisions of this Act, as determined
by |
9 | | the Director, pursuant to Section 5-65.
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10 | | "Pass Through Entity" means an entity that is exempt from |
11 | | the tax under
subsection (b) or (c) of Section 205 of the |
12 | | Illinois Income Tax Act.
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13 | | "Professional Employer Organization" (PEO) means an |
14 | | employee leasing company, as defined in Section 206.1(A)(2) of |
15 | | the Illinois Unemployment Insurance Act.
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16 | | "Related Member" means a person that, with respect to the |
17 | | Taxpayer during
any portion of the taxable year, is any one of |
18 | | the following:
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19 | | (1) An individual stockholder, if the stockholder and |
20 | | the members of the
stockholder's family (as defined in |
21 | | Section 318 of the Internal Revenue Code)
own directly, |
22 | | indirectly, beneficially, or constructively, in the |
23 | | aggregate,
at least 50% of the value of the Taxpayer's |
24 | | outstanding stock.
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25 | | (2) A partnership, estate, or trust and any partner or |
26 | | beneficiary,
if the partnership, estate, or trust, and its |
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1 | | partners or beneficiaries own
directly, indirectly, |
2 | | beneficially, or constructively, in the aggregate, at
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3 | | least 50% of the profits, capital, stock, or value of the
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4 | | Taxpayer.
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5 | | (3) A corporation, and any party related to the |
6 | | corporation in a manner
that would require an attribution |
7 | | of stock from the corporation to the
party or from the |
8 | | party to the corporation under the attribution rules
of |
9 | | Section 318 of the Internal Revenue Code, if the Taxpayer |
10 | | owns
directly, indirectly, beneficially, or constructively |
11 | | at least
50% of the value of the corporation's outstanding |
12 | | stock.
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13 | | (4) A corporation and any party related to that |
14 | | corporation in a manner
that would require an attribution |
15 | | of stock from the corporation to the party or
from the |
16 | | party to the corporation under the attribution rules of |
17 | | Section 318 of
the Internal Revenue Code, if the |
18 | | corporation and all such related parties own
in the |
19 | | aggregate at least 50% of the profits, capital, stock, or |
20 | | value of the
Taxpayer.
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21 | | (5) A person to or from whom there is attribution of |
22 | | stock ownership
in accordance with Section 1563(e) of the |
23 | | Internal Revenue Code, except,
for purposes of determining |
24 | | whether a person is a Related Member under
this paragraph, |
25 | | 20% shall be substituted for 5% wherever 5% appears in
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26 | | Section 1563(e) of the Internal Revenue Code.
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1 | | "Taxpayer" means an individual, corporation, partnership, |
2 | | or other entity
that has any Illinois Income Tax liability or |
3 | | any liability under Section 409, 444, or 444.1 of the Illinois |
4 | | Insurance Code .
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5 | | (Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
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6 | | (35 ILCS 10/5-15) |
7 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set |
8 | | forth in this
Act, a Taxpayer is
entitled to a Credit against |
9 | | or, as described in subsection (g) of this Section, a payment |
10 | | towards (i) taxes imposed pursuant to subsections (a) and (b)
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11 | | of Section 201 of the Illinois
Income Tax Act that may be |
12 | | imposed on the Taxpayer for a taxable year beginning
on or
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13 | | after January 1, 1999 , (ii) taxes imposed on or after the |
14 | | effective date of this amendatory Act of the 99th General |
15 | | Assembly pursuant to Section 409, 444, or 444.1 of the Illinois |
16 | | Insurance Code, or (iii) both (i) and (ii) ,
if the Taxpayer is |
17 | | awarded a Credit by the Department under this Act for that
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18 | | taxable year. |
19 | | (a) The Department shall make Credit awards under this Act |
20 | | to foster job
creation and retention in Illinois. |
21 | | (b) A person that proposes a project to create new jobs in |
22 | | Illinois must
enter into an Agreement with the
Department for |
23 | | the Credit under this Act. |
24 | | (c) The Credit shall be claimed for the taxable years |
25 | | specified in the
Agreement. |
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1 | | (d) The Credit shall not exceed the Incremental Income Tax |
2 | | attributable to
the project that is the subject of the |
3 | | Agreement. |
4 | | (e) Nothing herein shall prohibit a Tax Credit Award to an |
5 | | Applicant that uses a PEO if all other award criteria are |
6 | | satisfied.
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7 | | (f) In lieu of the Credit allowed under this Act against |
8 | | the taxes imposed pursuant to subsections (a) and (b) of |
9 | | Section 201 of the Illinois Income Tax Act for any taxable year |
10 | | ending on or after December 31, 2009, the Taxpayer may elect to |
11 | | claim the Credit against its obligation to pay over withholding |
12 | | under Section 704A of the Illinois Income Tax Act. |
13 | | (1) The election under this subsection (f) may be made |
14 | | only by a Taxpayer that (i) is primarily engaged in one of |
15 | | the following business activities: water purification and |
16 | | treatment, motor vehicle metal stamping, automobile |
17 | | manufacturing, automobile and light duty motor vehicle |
18 | | manufacturing, motor vehicle manufacturing, light truck |
19 | | and utility vehicle manufacturing, heavy duty truck |
20 | | manufacturing, motor vehicle body manufacturing, cable |
21 | | television infrastructure design or manufacturing, or |
22 | | wireless telecommunication or computing terminal device |
23 | | design or manufacturing for use on public networks and (ii) |
24 | | meets the following criteria: |
25 | | (A) the Taxpayer (i) had an Illinois net loss or an |
26 | | Illinois net loss deduction under Section 207 of the |
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1 | | Illinois Income Tax Act for the taxable year in which |
2 | | the Credit is awarded, (ii) employed a minimum of 1,000 |
3 | | full-time employees in this State during the taxable |
4 | | year in which the Credit is awarded, (iii) has an |
5 | | Agreement under this Act on December 14, 2009 (the |
6 | | effective date of Public Act 96-834), and (iv) is in |
7 | | compliance with all provisions of that Agreement; |
8 | | (B) the Taxpayer (i) had an Illinois net loss or an |
9 | | Illinois net loss deduction under Section 207 of the |
10 | | Illinois Income Tax Act for the taxable year in which |
11 | | the Credit is awarded, (ii) employed a minimum of 1,000 |
12 | | full-time employees in this State during the taxable |
13 | | year in which the Credit is awarded, and (iii) has |
14 | | applied for an Agreement within 365 days after December |
15 | | 14, 2009 (the effective date of Public Act 96-834); |
16 | | (C) the Taxpayer (i) had an Illinois net operating |
17 | | loss carryforward under Section 207 of the Illinois |
18 | | Income Tax Act in a taxable year ending during calendar |
19 | | year 2008, (ii) has applied for an Agreement within 150 |
20 | | days after the effective date of this amendatory Act of |
21 | | the 96th General Assembly, (iii) creates at least 400 |
22 | | new jobs in Illinois, (iv) retains at least 2,000 jobs |
23 | | in Illinois that would have been at risk of relocation |
24 | | out of Illinois over a 10-year period, and (v) makes a |
25 | | capital investment of at least $75,000,000; |
26 | | (D) the Taxpayer (i) had an Illinois net operating |
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1 | | loss carryforward under Section 207 of the Illinois |
2 | | Income Tax Act in a taxable year ending during calendar |
3 | | year 2009, (ii) has applied for an Agreement within 150 |
4 | | days after the effective date of this amendatory Act of |
5 | | the 96th General Assembly, (iii) creates at least 150 |
6 | | new jobs, (iv) retains at least 1,000 jobs in Illinois |
7 | | that would have been at risk of relocation out of |
8 | | Illinois over a 10-year period, and (v) makes a capital |
9 | | investment of at least $57,000,000; or |
10 | | (E) the Taxpayer (i) employed at least 2,500 |
11 | | full-time employees in the State during the year in |
12 | | which the Credit is awarded, (ii) commits to make at |
13 | | least $500,000,000 in combined capital improvements |
14 | | and project costs under the Agreement, (iii) applies |
15 | | for an Agreement between January 1, 2011 and June 30, |
16 | | 2011, (iv) executes an Agreement for the Credit during |
17 | | calendar year 2011, and (v) was incorporated no more |
18 | | than 5 years before the filing of an application for an |
19 | | Agreement. |
20 | | (1.5) The election under this subsection (f) may also |
21 | | be made by a Taxpayer for any Credit awarded pursuant to an |
22 | | agreement that was executed between January 1, 2011 and |
23 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in |
24 | | the manufacture of inner tubes or tires, or both, from |
25 | | natural and synthetic rubber, (ii) employs a minimum of |
26 | | 2,400 full-time employees in Illinois at the time of |
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1 | | application, (iii) creates at least 350 full-time jobs and |
2 | | retains at least 250 full-time jobs in Illinois that would |
3 | | have been at risk of being created or retained outside of |
4 | | Illinois, and (iv) makes a capital investment of at least |
5 | | $200,000,000 at the project location. |
6 | | (1.6) The election under this subsection (f) may also |
7 | | be made by a Taxpayer for any Credit awarded pursuant to an |
8 | | agreement that was executed within 150 days after the |
9 | | effective date of this amendatory Act of the 97th General |
10 | | Assembly, if the Taxpayer (i) is primarily engaged in the |
11 | | operation of a discount department store, (ii) maintains |
12 | | its corporate headquarters in Illinois, (iii) employs a |
13 | | minimum of 4,250 full-time employees at its corporate |
14 | | headquarters in Illinois at the time of application, (iv) |
15 | | retains at least 4,250 full-time jobs in Illinois that |
16 | | would have been at risk of being relocated outside of |
17 | | Illinois, (v) had a minimum of $40,000,000,000 in total |
18 | | revenue in 2010, and (vi) makes a capital investment of at |
19 | | least $300,000,000 at the project location. |
20 | | (1.7) Notwithstanding any other provision of law, the |
21 | | election under this subsection (f) may also be made by a |
22 | | Taxpayer for any Credit awarded pursuant to an agreement |
23 | | that was executed or applied for on or after July 1, 2011 |
24 | | and on or before March 31, 2012, if the Taxpayer is |
25 | | primarily engaged in the manufacture of original and |
26 | | aftermarket filtration parts and products for automobiles, |
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1 | | motor vehicles, light duty motor vehicles, light trucks and |
2 | | utility vehicles, and heavy duty trucks, (ii) employs a |
3 | | minimum of 1,000 full-time employees in Illinois at the |
4 | | time of application, (iii) creates at least 250 full-time |
5 | | jobs in Illinois, (iv) relocates its corporate |
6 | | headquarters to Illinois from another state, and (v) makes |
7 | | a capital investment of at least $4,000,000 at the project |
8 | | location. |
9 | | (2) An election under this subsection shall allow the |
10 | | credit to be taken against payments otherwise due under |
11 | | Section 704A of the Illinois Income Tax Act during the |
12 | | first calendar year beginning after the end of the taxable |
13 | | year in which the credit is awarded under this Act. |
14 | | (3) The election shall be made in the form and manner |
15 | | required by the Illinois Department of Revenue and, once |
16 | | made, shall be irrevocable. |
17 | | (4) If a Taxpayer who meets the requirements of |
18 | | subparagraph (A) of paragraph (1) of this subsection (f) |
19 | | elects to claim the Credit against its withholdings as |
20 | | provided in this subsection (f), then, on and after the |
21 | | date of the election, the terms of the Agreement between |
22 | | the Taxpayer and the Department may not be further amended |
23 | | during the term of the Agreement. |
24 | | (g) A pass-through entity that has been awarded a credit |
25 | | under this Act, its shareholders, or its partners may treat |
26 | | some or all of the credit awarded pursuant to this Act as a tax |
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1 | | payment for purposes of the Illinois Income Tax Act. The term |
2 | | "tax payment" means a payment as described in Article 6 or |
3 | | Article 8 of the Illinois Income Tax Act or a composite payment |
4 | | made by a pass-through entity on behalf of any of its |
5 | | shareholders or partners to satisfy such shareholders' or |
6 | | partners' taxes imposed pursuant to subsections (a) and (b) of |
7 | | Section 201 of the Illinois Income Tax Act. In no event shall |
8 | | the amount of the award credited pursuant to this Act exceed |
9 | | the Illinois income tax liability of the pass-through entity or |
10 | | its shareholders or partners for the taxable year. |
11 | | (h) Effective July 1, 2016, any tax credits awarded under |
12 | | this Act and not previously claimed by a taxpayer against its |
13 | | income tax liability under Section 201 of the Illinois Income |
14 | | Tax Act may be sold, assigned, or transferred, in whole or in |
15 | | part, to another Illinois taxpayer subject to all of the |
16 | | following conditions: |
17 | | (1) A taxpayer awarded an income tax credit under this |
18 | | Act may make only a single sale, assignment, or transfer of |
19 | | the tax credit earned in a taxable year; however, the |
20 | | credit may be sold, assigned, or transferred to one or more |
21 | | transferees. |
22 | | (2) The tax credit earned by the transferor may be |
23 | | transferred before the due date, including extensions, of |
24 | | the Illinois income tax return of the transferor. The |
25 | | amount of the credit transferred to the transferee or |
26 | | transferees may not exceed the amount of the credit earned |
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1 | | by the transferor in the transferor's taxable year. |
2 | | (3) Written notification of the transfer or sale of |
3 | | credits awarded under this Act shall be submitted to the |
4 | | Department of Commerce and Economic Opportunity and the |
5 | | Department of Revenue within 30 days after the sale, |
6 | | assignment, or transfer. The Department of Revenue shall |
7 | | provide by rule the information required to be provided in |
8 | | such written notification. |
9 | | (4) The transfer or sale of tax credits under this |
10 | | subsection does not extend the time during which those tax |
11 | | credits can be used. The carry-forward period for a tax |
12 | | credit that is transferred or sold shall begin on the date |
13 | | on which the tax credit was originally earned. |
14 | | (5) A transferee shall have only those rights to claim |
15 | | and use the tax credit that were available to the taxpayer |
16 | | that earned the credit, except that credits sold or |
17 | | transferred may not be used against a transferee's |
18 | | withholding tax liability. |
19 | | (6) If the taxpayer earning the credit fails to comply |
20 | | with the terms and requirements of the Agreement, and, |
21 | | pursuant to the provisions of Section 5-65 of this Act, |
22 | | notice is provided to the Department of Revenue of the |
23 | | taxpayer's non-compliance, the Department shall hold the |
24 | | transferor liable for any tax, penalty, or interest due as |
25 | | a result of non-compliance with the Agreement. |
26 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; |
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1 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. |
2 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
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3 | | (35 ILCS 10/5-45)
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4 | | Sec. 5-45. Amount and duration of the credit.
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5 | | (a) The Department shall
determine the amount and
duration |
6 | | of the credit awarded under this Act. The duration of the
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7 | | credit may not exceed 10 taxable years.
The credit may be |
8 | | stated as
a percentage of the Incremental Income Tax |
9 | | attributable
to the applicant's project and may include a fixed |
10 | | dollar limitation.
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11 | | (b) Notwithstanding subsection (a),
and except as the |
12 | | credit may be applied in a carryover year pursuant to Section
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13 | | 211(4) of the Illinois Income Tax Act, the credit may be |
14 | | applied against the
State income tax liability , or the tax |
15 | | liability under Section 409, 444, or 444.1 of the Illinois |
16 | | Insurance Code, in more than 10 taxable years but not in more |
17 | | than
15 taxable years for an eligible business
that (i) |
18 | | qualifies under this Act
and the Corporate Headquarters |
19 | | Relocation Act and has in fact undertaken a
qualifying project |
20 | | within the time frame specified by the Department of
Commerce |
21 | | and Economic Opportunity under that Act, and (ii) applies |
22 | | against its
State income tax liability and insurance tax |
23 | | liability , during the entire 15-year
period, no more than 60% |
24 | | of the maximum
credit per year that would otherwise be |
25 | | available under this Act.
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1 | | (Source: P.A. 94-793, eff. 5-19-06.)
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2 | | Section 15. The Illinois Insurance Code is amended by |
3 | | adding Section 405.1 as follows: |
4 | | (215 ILCS 5/405.1 new) |
5 | | Sec. 405.1. Economic Development for a Growing Economy Tax |
6 | | Credit. Credits may be granted against the taxes imposed under |
7 | | Section 409, 444, or 444.1 of this Act on or after the |
8 | | effective date of this amendatory Act of the 99th General |
9 | | Assembly as provided in Section 211 of the Illinois Income Tax |
10 | | Act or the Economic Development for a Growing Economy Tax |
11 | | Credit Act.
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12 | | Section 99. Effective date. This Act takes effect upon |
13 | | becoming law. |