102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2953

 

Introduced 2/19/2021, by Rep. Camille Y. Lilly

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 605/605-1055 new
35 ILCS 5/211
35 ILCS 10/5-45
35 ILCS 10/5-77

    Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity may enter into new Agreements under the Act until June 30, 2025 (currently, June 30, 2022). Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2023 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2953LRB102 11782 HLH 17117 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by adding Section 605-1055 as follows:
 
7    (20 ILCS 605/605-1055 new)
8    Sec. 605-1055. Veterans' Economic Center Pilot Program.
9Beginning on January 1, 2022 and continuing through December
1031, 2025, the Department shall establish and implement a
11Veterans' Economic Center pilot program for the purposes of
12assisting veterans in finding employment and addressing the
13problem of veteran homelessness. In conducting the program,
14the Department shall partner with local employers in order to
15better connect veterans with those employers. The Department
16shall report to the Governor and the General Assembly
17regarding the effectiveness of the program no later than
18December 31, 2025.
19    This Section is repealed on January 1, 2027.
 
20    Section 10. The Illinois Income Tax Act is amended by
21changing Section 211 as follows:
 

 

 

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1    (35 ILCS 5/211)
2    Sec. 211. Economic Development for a Growing Economy Tax
3Credit. For tax years beginning on or after January 1, 1999, a
4Taxpayer who has entered into an Agreement (including a New
5Construction EDGE Agreement) under the Economic Development
6for a Growing Economy Tax Credit Act is entitled to a credit
7against the taxes imposed under subsections (a) and (b) of
8Section 201 of this Act in an amount to be determined in the
9Agreement. If the Taxpayer is a partnership or Subchapter S
10corporation, the credit shall be allowed to the partners or
11shareholders in accordance with the determination of income
12and distributive share of income under Sections 702 and 704
13and subchapter S of the Internal Revenue Code. The Department,
14in cooperation with the Department of Commerce and Economic
15Opportunity, shall prescribe rules to enforce and administer
16the provisions of this Section. This Section is exempt from
17the provisions of Section 250 of this Act.
18    The credit shall be subject to the conditions set forth in
19the Agreement and the following limitations:
20        (1) The tax credit shall not exceed the Incremental
21    Income Tax (as defined in Section 5-5 of the Economic
22    Development for a Growing Economy Tax Credit Act) with
23    respect to the project; additionally, the New Construction
24    EDGE Credit shall not exceed the New Construction EDGE
25    Incremental Income Tax (as defined in Section 5-5 of the
26    Economic Development for a Growing Economy Tax Credit

 

 

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1    Act).
2        (2) The amount of the credit allowed during the tax
3    year plus the sum of all amounts allowed in prior years
4    shall not exceed 100% of the aggregate amount expended by
5    the Taxpayer during all prior tax years on approved costs
6    defined by Agreement.
7        (3) The amount of the credit shall be determined on an
8    annual basis. Except as applied in a carryover year
9    pursuant to Section 211(4) of this Act, the credit may not
10    be applied against any State income tax liability in more
11    than 10 taxable years; provided, however, that (i) an
12    eligible business certified by the Department of Commerce
13    and Economic Opportunity under the Corporate Headquarters
14    Relocation Act may not apply the credit against any of its
15    State income tax liability in more than 15 taxable years
16    and (ii) credits allowed to that eligible business are
17    subject to the conditions and requirements set forth in
18    Sections 5-35 and 5-45 of the Economic Development for a
19    Growing Economy Tax Credit Act and Section 5-51 as
20    applicable to New Construction EDGE Credits.
21        (4) The credit may not exceed the amount of taxes
22    imposed pursuant to subsections (a) and (b) of Section 201
23    of this Act. Any credit that is unused in the year the
24    credit is computed may be carried forward and applied to
25    the tax liability of the 5 taxable years following the
26    excess credit year. The credit shall be applied to the

 

 

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1    earliest year for which there is a tax liability. If there
2    are credits from more than one tax year that are available
3    to offset a liability, the earlier credit shall be applied
4    first.
5        (5) No credit shall be allowed with respect to any
6    Agreement for any taxable year ending after the
7    Noncompliance Date. Upon receiving notification by the
8    Department of Commerce and Economic Opportunity of the
9    noncompliance of a Taxpayer with an Agreement, the
10    Department shall notify the Taxpayer that no credit is
11    allowed with respect to that Agreement for any taxable
12    year ending after the Noncompliance Date, as stated in
13    such notification. If any credit has been allowed with
14    respect to an Agreement for a taxable year ending after
15    the Noncompliance Date for that Agreement, any refund paid
16    to the Taxpayer for that taxable year shall, to the extent
17    of that credit allowed, be an erroneous refund within the
18    meaning of Section 912 of this Act.
19        (6) For purposes of this Section, the terms
20    "Agreement", "Incremental Income Tax", "New Construction
21    EDGE Agreement", "New Construction EDGE Credit", "New
22    Construction EDGE Incremental Income Tax", and
23    "Noncompliance Date" have the same meaning as when used in
24    the Economic Development for a Growing Economy Tax Credit
25    Act.
26        (7) Agreements entered into on or after the effective

 

 

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1    date of this amendatory Act of the 102nd General Assembly
2    are subject to the limitations set forth in subsection (c)
3    of Section 5-45 of the Economic Development for a Growing
4    Economy Tax Credit Act.
5(Source: P.A. 101-9, eff. 6-5-19.)
 
6    Section 15. The Economic Development for a Growing Economy
7Tax Credit Act is amended by changing Sections 5-45 and 5-77 as
8follows:
 
9    (35 ILCS 10/5-45)
10    Sec. 5-45. Amount and duration of the credit.
11    (a) The Department shall determine the amount and duration
12of the credit awarded under this Act. The duration of the
13credit may not exceed 10 taxable years. The credit may be
14stated as a percentage of the Incremental Income Tax
15attributable to the applicant's project and may include a
16fixed dollar limitation.
17    (b) Notwithstanding subsection (a), and except as the
18credit may be applied in a carryover year pursuant to Section
19211(4) of the Illinois Income Tax Act, the credit may be
20applied against the State income tax liability in more than 10
21taxable years but not in more than 15 taxable years for an
22eligible business that (i) qualifies under this Act and the
23Corporate Headquarters Relocation Act and has in fact
24undertaken a qualifying project within the time frame

 

 

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1specified by the Department of Commerce and Economic
2Opportunity under that Act, and (ii) applies against its State
3income tax liability, during the entire 15-year period, no
4more than 60% of the maximum credit per year that would
5otherwise be available under this Act.
6    (c) Notwithstanding any other provision of law, a taxpayer
7who receives a credit under this Act for a taxable year ending
8on or before December 31, 2023 pursuant an Agreement entered
9into on or after the effective date of this amendatory Act of
10the 102nd General Assembly may apply only 98% of that credit
11amount against his or her State income tax liability in any
12taxable year. By July 1, 2021, and by July 1 of each calendar
13year thereafter through calendar year 2024, the Department
14shall certify to the Comptroller an amount equal to 2% of the
15total credits awarded under this Section pursuant to an
16Agreement entered into on or after the effective date of this
17amendatory Act of the 102nd General Assembly for a taxable
18year ending during the previous calendar year. Immediately
19upon receipt of the certification, the State Comptroller shall
20direct and the State Treasurer shall transfer the certified
21amount from the General Revenue Fund into the Veterans'
22Economic Center Fund, a special fund created in the State
23treasury. Moneys in the Veterans' Economic Center Fund shall
24be used by the Department of Commerce and Economic Opportunity
25to administer the Veterans' Economic Center pilot program
26established under Section 605-1055 of the Department of

 

 

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1Commerce and Economic Opportunity Law of the Civil
2Administrative Code of Illinois.
3(Source: P.A. 94-793, eff. 5-19-06.)
 
4    (35 ILCS 10/5-77)
5    Sec. 5-77. Sunset of new Agreements. The Department shall
6not enter into any new Agreements under the provisions of
7Section 5-50 of this Act after June 30, 2025 June 30, 2022.
8(Source: P.A. 99-925, eff. 1-20-17; 100-511, eff. 9-18-17.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.