Sen. Celina Villanueva

Filed: 11/29/2022

 

 


 

 


 
10200HB5189sam003LRB102 24779 HLH 41963 a

1
AMENDMENT TO HOUSE BILL 5189

2    AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED,
3by inserting immediately below the enacting clause the
4following:
 
5    "Section 2. The Reimagining Electric Vehicles in Illinois
6Act is amended by changing Sections 10, 15, 20, 30, and 40 as
7follows:
 
8    (20 ILCS 686/10)
9    Sec. 10. Definitions. As used in this Act:
10    "Advanced battery" means a battery that consists of a
11battery cell that can be integrated into a module, pack, or
12system to be used in energy storage applications, including a
13battery used in an electric vehicle or the electric grid.
14    "Advanced battery component" means a component of an
15advanced battery, including materials, enhancements,
16enclosures, anodes, cathodes, electrolytes, cells, and other

 

 

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1associated technologies that comprise an advanced battery.
2    "Agreement" means the agreement between a taxpayer and the
3Department under the provisions of Section 45 of this Act.
4    "Applicant" means a taxpayer that (i) operates a business
5in Illinois or is planning to locate a business within the
6State of Illinois and (ii) is engaged in interstate or
7intrastate commerce for the purpose of manufacturing electric
8vehicles, electric vehicle component parts, or electric
9vehicle power supply equipment. "Applicant" does not include a
10taxpayer who closes or substantially reduces by more than 50%
11operations at one location in the State and relocates
12substantially the same operation to another location in the
13State. This does not prohibit a Taxpayer from expanding its
14operations at another location in the State. This also does
15not prohibit a Taxpayer from moving its operations from one
16location in the State to another location in the State for the
17purpose of expanding the operation, provided that the
18Department determines that expansion cannot reasonably be
19accommodated within the municipality or county in which the
20business is located, or, in the case of a business located in
21an incorporated area of the county, within the county in which
22the business is located, after conferring with the chief
23elected official of the municipality or county and taking into
24consideration any evidence offered by the municipality or
25county regarding the ability to accommodate expansion within
26the municipality or county.

 

 

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1    "Battery raw materials" means the raw and processed form
2of a mineral, metal, chemical, or other material used in an
3advanced battery component.
4    "Battery raw materials refining service provider" means a
5business that operates a facility that filters, sifts, and
6treats battery raw materials for use in an advanced battery.
7    "Battery recycling and reuse manufacturer" means a
8manufacturer that is primarily engaged in the recovery,
9retrieval, processing, recycling, or recirculating of battery
10raw materials for new use in electric vehicle batteries.
11    "Capital improvements" means the purchase, renovation,
12rehabilitation, or construction of permanent tangible land,
13buildings, structures, equipment, and furnishings in an
14approved project sited in Illinois and expenditures for goods
15or services that are normally capitalized, including
16organizational costs and research and development costs
17incurred in Illinois. For land, buildings, structures, and
18equipment that are leased, the lease must equal or exceed the
19term of the agreement, and the cost of the property shall be
20determined from the present value, using the corporate
21interest rate prevailing at the time of the application, of
22the lease payments.
23    "Credit" means either a "REV Illinois Credit" or a "REV
24Construction Jobs Credit" agreed to between the Department and
25applicant under this Act.
26    "Department" means the Department of Commerce and Economic

 

 

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1Opportunity.
2    "Director" means the Director of Commerce and Economic
3Opportunity.
4    "Electric vehicle" means a vehicle that is exclusively
5powered by and refueled by electricity, including electricity
6generated through a hydrogen fuel cells or solar technology.
7"Electric vehicle" does not include hybrid electric vehicles,
8electric bicycles, or extended-range electric vehicles that
9are also equipped with conventional fueled propulsion or
10auxiliary engines.
11    "Electric vehicle manufacturer" means a new or existing
12manufacturer that is primarily focused on reequipping,
13expanding, or establishing a manufacturing facility in
14Illinois that produces electric vehicles as defined in this
15Section.
16    "Electric vehicle component parts manufacturer" means a
17new or existing manufacturer that is primarily focused on
18reequipping, expanding, or establishing a manufacturing
19facility in Illinois that produces parts or accessories used
20in electric vehicles advanced battery components or key
21components that directly support the electric functions of
22electric vehicles, as defined by this Section, including
23advanced battery component parts. The changes to this
24definition of "electric vehicle component parts manufacturer"
25apply to agreements under this Act that are entered into on or
26after the effective date of this amendatory Act of the 102nd

 

 

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1General Assembly.
2    "Electric vehicle power supply equipment" means the
3equipment used specifically for the purpose of delivering
4electricity to an electric vehicle, including hydrogen fuel
5cells or solar refueling infrastructure.
6    "Electric vehicle power supply manufacturer" means a new
7or existing manufacturer that is focused on reequipping,
8expanding, or establishing a manufacturing facility in
9Illinois that produces electric vehicle power supply equipment
10used for the purpose of delivering electricity to an electric
11vehicle, including hydrogen fuel cell or solar refueling
12infrastructure.
13    "Energy Transition Area" means a county with less than
14100,000 people or a municipality that contains one or more of
15the following:
16        (1) a fossil fuel plant that was retired from service
17    or has significant reduced service within 6 years before
18    the time of the application or will be retired or have
19    service significantly reduced within 6 years following the
20    time of the application; or
21        (2) a coal mine that was closed or had operations
22    significantly reduced within 6 years before the time of
23    the application or is anticipated to be closed or have
24    operations significantly reduced within 6 years following
25    the time of the application.
26    "Full-time employee" means an individual who is employed

 

 

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1for consideration for at least 35 hours each week or who
2renders any other standard of service generally accepted by
3industry custom or practice as full-time employment. An
4individual for whom a W-2 is issued by a Professional Employer
5Organization (PEO) is a full-time employee if employed in the
6service of the applicant for consideration for at least 35
7hours each week.
8    "Incremental income tax" means the total amount withheld
9during the taxable year from the compensation of new employees
10and, if applicable, retained employees under Article 7 of the
11Illinois Income Tax Act arising from employment at a project
12that is the subject of an agreement.
13    "Institution of higher education" or "institution" means
14any accredited public or private university, college,
15community college, business, technical, or vocational school,
16or other accredited educational institution offering degrees
17and instruction beyond the secondary school level.
18    "Minority person" means a minority person as defined in
19the Business Enterprise for Minorities, Women, and Persons
20with Disabilities Act.
21    "New employee" means a newly-hired full-time employee
22employed to work at the project site and whose work is directly
23related to the project.
24    "Noncompliance date" means, in the case of a taxpayer that
25is not complying with the requirements of the agreement or the
26provisions of this Act, the day following the last date upon

 

 

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1which the taxpayer was in compliance with the requirements of
2the agreement and the provisions of this Act, as determined by
3the Director, pursuant to Section 70.
4    "Pass-through entity" means an entity that is exempt from
5the tax under subsection (b) or (c) of Section 205 of the
6Illinois Income Tax Act.
7    "Placed in service" means the state or condition of
8readiness, availability for a specifically assigned function,
9and the facility is constructed and ready to conduct its
10facility operations to manufacture goods.
11    "Professional employer organization" (PEO) means an
12employee leasing company, as defined in Section 206.1 of the
13Illinois Unemployment Insurance Act.
14    "Program" means the Reimagining Electric Vehicles in
15Illinois Program (the REV Illinois Program) established in
16this Act.
17    "Project" or "REV Illinois Project" means a for-profit
18economic development activity for the manufacture of electric
19vehicles, electric vehicle component parts, or electric
20vehicle power supply equipment which is designated by the
21Department as a REV Illinois Project and is the subject of an
22agreement.
23    "Recycling facility" means a location at which the
24taxpayer disposes of batteries and other component parts in
25manufacturing of electric vehicles, electric vehicle component
26parts, or electric vehicle power supply equipment.

 

 

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1    "Related member" means a person that, with respect to the
2taxpayer during any portion of the taxable year, is any one of
3the following:
4        (1) An individual stockholder, if the stockholder and
5    the members of the stockholder's family (as defined in
6    Section 318 of the Internal Revenue Code) own directly,
7    indirectly, beneficially, or constructively, in the
8    aggregate, at least 50% of the value of the taxpayer's
9    outstanding stock.
10        (2) A partnership, estate, trust and any partner or
11    beneficiary, if the partnership, estate, or trust, and its
12    partners or beneficiaries own directly, indirectly,
13    beneficially, or constructively, in the aggregate, at
14    least 50% of the profits, capital, stock, or value of the
15    taxpayer.
16        (3) A corporation, and any party related to the
17    corporation in a manner that would require an attribution
18    of stock from the corporation under the attribution rules
19    of Section 318 of the Internal Revenue Code, if the
20    Taxpayer owns directly, indirectly, beneficially, or
21    constructively at least 50% of the value of the
22    corporation's outstanding stock.
23        (4) A corporation and any party related to that
24    corporation in a manner that would require an attribution
25    of stock from the corporation to the party or from the
26    party to the corporation under the attribution rules of

 

 

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1    Section 318 of the Internal Revenue Code, if the
2    corporation and all such related parties own in the
3    aggregate at least 50% of the profits, capital, stock, or
4    value of the taxpayer.
5        (5) A person to or from whom there is an attribution of
6    stock ownership in accordance with Section 1563(e) of the
7    Internal Revenue Code, except, for purposes of determining
8    whether a person is a related member under this paragraph,
9    20% shall be substituted for 5% wherever 5% appears in
10    Section 1563(e) of the Internal Revenue Code.
11    "Retained employee" means a full-time employee employed by
12the taxpayer prior to the term of the Agreement who continues
13to be employed during the term of the agreement whose job
14duties are directly and substantially related to the project.
15For purposes of this definition, "directly and substantially
16related to the project" means at least two-thirds of the
17employee's job duties must be directly related to the project
18and the employee must devote at least two-thirds of his or her
19time to the project. The term "retained employee" does not
20include any individual who has a direct or an indirect
21ownership interest of at least 5% in the profits, equity,
22capital, or value of the taxpayer or a child, grandchild,
23parent, or spouse, other than a spouse who is legally
24separated from the individual, of any individual who has a
25direct or indirect ownership of at least 5% in the profits,
26equity, capital, or value of the taxpayer. The changes to this

 

 

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1definition of "retained employee" apply to agreements for
2credits under this Act that are entered into on or after the
3effective date of this amendatory Act of the 102nd General
4Assembly.
5    "REV Illinois credit" means a credit agreed to between the
6Department and the applicant under this Act that is based on
7the incremental income tax attributable to new employees and,
8if applicable, retained employees, and on training costs for
9such employees at the applicant's project.
10    "REV construction jobs credit" means a credit agreed to
11between the Department and the applicant under this Act that
12is based on the incremental income tax attributable to
13construction wages paid in connection with construction of the
14project facilities.
15    "Statewide baseline" means the total number of full-time
16employees of the applicant and any related member employed by
17such entities at the time of application for incentives under
18this Act.
19    "Taxpayer" means an individual, corporation, partnership,
20or other entity that has a legal obligation to pay Illinois
21income taxes and file an Illinois income tax return.
22    "Training costs" means costs incurred to upgrade the
23technological skills of full-time employees in Illinois and
24includes: curriculum development; training materials
25(including scrap product costs); trainee domestic travel
26expenses; instructor costs (including wages, fringe benefits,

 

 

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1tuition and domestic travel expenses); rent, purchase or lease
2of training equipment; and other usual and customary training
3costs. "Training costs" do not include costs associated with
4travel outside the United States (unless the Taxpayer receives
5prior written approval for the travel by the Director based on
6a showing of substantial need or other proof the training is
7not reasonably available within the United States), wages and
8fringe benefits of employees during periods of training, or
9administrative cost related to full-time employees of the
10taxpayer.
11    "Underserved area" means any geographic areas as defined
12in Section 5-5 of the Economic Development for a Growing
13Economy Tax Credit Act.
14(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.)
 
15    (20 ILCS 686/15)
16    Sec. 15. Powers of the Department. The Department, in
17addition to those powers granted under the Civil
18Administrative Code of Illinois, is granted and shall have all
19the powers necessary or convenient to administer the program
20under this Act and to carry out and effectuate the purposes and
21provisions of this Act, including, but not limited to, the
22power and authority to:
23        (1) adopt rules deemed necessary and appropriate for
24    the administration of the REV Illinois Program, the
25    designation of REV Illinois Projects, and the awarding of

 

 

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1    credits;
2        (2) establish forms for applications, notifications,
3    contracts, or any other agreements and accept applications
4    at any time during the year;
5        (3) assist taxpayers pursuant to the provisions of
6    this Act and cooperate with taxpayers that are parties to
7    agreements under this Act to promote, foster, and support
8    economic development, capital investment, and job creation
9    or retention within the State;
10        (4) enter into agreements and memoranda of
11    understanding for participation of, and engage in
12    cooperation with, agencies of the federal government,
13    units of local government, universities, research
14    foundations or institutions, regional economic development
15    corporations, or other organizations to implement the
16    requirements and purposes of this Act;
17        (5) gather information and conduct inquiries, in the
18    manner and by the methods it deems desirable, including
19    without limitation, gathering information with respect to
20    applicants for the purpose of making any designations or
21    certifications necessary or desirable or to gather
22    information to assist the Department with any
23    recommendation or guidance in the furtherance of the
24    purposes of this Act;
25        (6) establish, negotiate and effectuate agreements and
26    any term, agreement, or other document with any person,

 

 

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1    necessary or appropriate to accomplish the purposes of
2    this Act; and to consent, subject to the provisions of any
3    agreement with another party, to the modification or
4    restructuring of any agreement to which the Department is
5    a party;
6        (7) fix, determine, charge, and collect any premiums,
7    fees, charges, costs, and expenses from applicants,
8    including, without limitation, any application fees,
9    commitment fees, program fees, financing charges, or
10    publication fees as deemed appropriate to pay expenses
11    necessary or incident to the administration, staffing, or
12    operation in connection with the Department's activities
13    under this Act, or for preparation, implementation, and
14    enforcement of the terms of the agreement, or for
15    consultation, advisory and legal fees, and other costs;
16    however, all fees and expenses incident thereto shall be
17    the responsibility of the applicant;
18        (8) provide for sufficient personnel to permit
19    administration, staffing, operation, and related support
20    required to adequately discharge its duties and
21    responsibilities described in this Act from funds made
22    available through charges to applicants or from funds as
23    may be appropriated by the General Assembly for the
24    administration of this Act;
25        (9) require applicants, upon written request, to issue
26    any necessary authorization to the appropriate federal,

 

 

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1    State, or local authority for the release of information
2    concerning a project being considered under the provisions
3    of this Act, with the information requested to include,
4    but not be limited to, financial reports, returns, or
5    records relating to the taxpayer or its project;
6        (10) require that a taxpayer shall at all times keep
7    proper books of record and account in accordance with
8    generally accepted accounting principles consistently
9    applied, with the books, records, or papers related to the
10    agreement in the custody or control of the taxpayer open
11    for reasonable Department inspection and audits, and
12    including, without limitation, the making of copies of the
13    books, records, or papers, and the inspection or appraisal
14    of any of the taxpayer or project assets;
15        (11) take whatever actions are necessary or
16    appropriate to protect the State's interest in the event
17    of bankruptcy, default, foreclosure, or noncompliance with
18    the terms and conditions of financial assistance or
19    participation required under this Act, including the power
20    to sell, dispose, lease, or rent, upon terms and
21    conditions determined by the Director to be appropriate,
22    real or personal property that the Department may receive
23    as a result of these actions; and .
24        (12) determine the conditions and procedures for
25    renewing the REV Illinois Credit awarded in accordance
26    with this Act.

 

 

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1(Source: P.A. 102-669, eff. 11-16-21.)
 
2    (20 ILCS 686/20)
3    Sec. 20. REV Illinois Program; project applications.
4    (a) The Reimagining Electric Vehicles in Illinois (REV
5Illinois) Program is hereby established and shall be
6administered by the Department. The Program will provide
7financial incentives to any one or more of the following: (1)
8eligible manufacturers of electric vehicles, electric vehicle
9component parts, and electric vehicle power supply equipment;
10(2) battery recycling and reuse manufacturers; or (3) battery
11raw materials refining service providers.
12    (b) Any taxpayer planning a project to be located in
13Illinois may request consideration for designation of its
14project as a REV Illinois Project, by formal written letter of
15request or by formal application to the Department, in which
16the applicant states its intent to make at least a specified
17level of investment and intends to hire a specified number of
18full-time employees at a designated location in Illinois. As
19circumstances require, the Department shall require a formal
20application from an applicant and a formal letter of request
21for assistance.
22    (c) In order to qualify for credits under the REV Illinois
23Program, an applicant must:
24        (1) for an electric vehicle manufacturer:
25            (A) make an investment of at least $1,500,000,000

 

 

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1        in capital improvements at the project site;
2            (B) to be placed in service within the State
3        within a 60-month period after approval of the
4        application; and
5            (C) create at least 500 new full-time employee
6        jobs; or
7        (2) for an electric vehicle component parts
8    manufacturer:
9            (A) make an investment of at least $300,000,000 in
10        capital improvements at the project site;
11            (B) manufacture one or more parts that are
12        primarily used for electric vehicle manufacturing;
13            (C) to be placed in service within the State
14        within a 60-month period after approval of the
15        application; and
16            (D) create at least 150 new full-time employee
17        jobs; or
18        (3) for an electric vehicle manufacturer, an electric
19    vehicle power supply equipment manufacturer, an electric
20    vehicle component part manufacturer that does not qualify
21    under paragraph (2) above, a battery recycling and reuse
22    manufacturer, or a battery raw materials refining service
23    provider:
24            (A) make an investment of at least $20,000,000 in
25        capital improvements at the project site;
26            (B) for electric vehicle component part

 

 

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1        manufacturers, manufacture one or more parts that are
2        primarily used for electric vehicle manufacturing;
3            (C) to be placed in service within the State
4        within a 48-month period after approval of the
5        application; and
6            (D) create at least 50 new full-time employee
7        jobs; or
8        (4) for an electric vehicle manufacturer or electric
9    vehicle component parts manufacturer with existing
10    operations within Illinois that intends to convert or
11    expand, in whole or in part, the existing facility from
12    traditional manufacturing to primarily electric vehicle
13    manufacturing, electric vehicle component parts
14    manufacturing, or electric vehicle power supply equipment
15    manufacturing:
16            (A) make an investment of at least $100,000,000 in
17        capital improvements at the project site;
18            (B) to be placed in service within the State
19        within a 60-month period after approval of the
20        application; and
21            (C) create the lesser of 75 new full-time employee
22        jobs or new full-time employee jobs equivalent to 10%
23        of the Statewide baseline applicable to the taxpayer
24        and any related member at the time of application.
25    (d) For agreements entered into prior to April 19, 2022
26(the effective date of Public Act 102-700) this amendatory Act

 

 

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1of the 102nd General Assembly, for any applicant creating the
2full-time employee jobs noted in subsection (c), those jobs
3must have a total compensation equal to or greater than 120% of
4the average wage paid to full-time employees in the county
5where the project is located, as determined by the U.S. Bureau
6of Labor Statistics. For agreements entered into on or after
7April 19, 2022 (the effective date of Public Act 102-700) this
8amendatory Act of the 102nd General Assembly, for any
9applicant creating the full-time employee jobs noted in
10subsection (c), those jobs must have a compensation equal to
11or greater than 120% of the average wage paid to full-time
12employees in a similar position within an occupational group
13in the county where the project is located, as determined by
14the Department U.S. Bureau of Labor Statistics.
15    (e) For any applicant, within 24 months after being placed
16in service, it must certify to the Department that it is carbon
17neutral or has attained certification under one of more of the
18following green building standards:
19        (1) BREEAM for New Construction or BREEAM In-Use;
20        (2) ENERGY STAR;
21        (3) Envision;
22        (4) ISO 50001 - energy management;
23        (5) LEED for Building Design and Construction or LEED
24    for Building Operations and Maintenance;
25        (6) Green Globes for New Construction or Green Globes
26    for Existing Buildings; or

 

 

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1        (7) UL 3223.
2    (f) Each applicant must outline its hiring plan and
3commitment to recruit and hire full-time employee positions at
4the project site. The hiring plan may include a partnership
5with an institution of higher education to provide
6internships, including, but not limited to, internships
7supported by the Clean Jobs Workforce Network Program, or
8full-time permanent employment for students at the project
9site. Additionally, the applicant may create or utilize
10participants from apprenticeship programs that are approved by
11and registered with the United States Department of Labor's
12Bureau of Apprenticeship and Training. The applicant may apply
13for apprenticeship education expense credits in accordance
14with the provisions set forth in 14 Ill. Adm. Admin. Code 522.
15Each applicant is required to report annually, on or before
16April 15, on the diversity of its workforce in accordance with
17Section 50 of this Act. For existing facilities of applicants
18under paragraph (3) of subsection (b) above, if the taxpayer
19expects a reduction in force due to its transition to
20manufacturing electric vehicle, electric vehicle component
21parts, or electric vehicle power supply equipment, the plan
22submitted under this Section must outline the taxpayer's plan
23to assist with retraining its workforce aligned with the
24taxpayer's adoption of new technologies and anticipated
25efforts to retrain employees through employment opportunities
26within the taxpayer's workforce.

 

 

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1    (g) Each applicant must demonstrate a contractual or other
2relationship with a recycling facility, or demonstrate its own
3recycling capabilities, at the time of application and report
4annually a continuing contractual or other relationship with a
5recycling facility and the percentage of batteries used in
6electric vehicles recycled throughout the term of the
7agreement.
8    (h) A taxpayer may not enter into more than one agreement
9under this Act with respect to a single address or location for
10the same period of time. Also, a taxpayer may not enter into an
11agreement under this Act with respect to a single address or
12location for the same period of time for which the taxpayer
13currently holds an active agreement under the Economic
14Development for a Growing Economy Tax Credit Act. This
15provision does not preclude the applicant from entering into
16an additional agreement after the expiration or voluntary
17termination of an earlier agreement under this Act or under
18the Economic Development for a Growing Economy Tax Credit Act
19to the extent that the taxpayer's application otherwise
20satisfies the terms and conditions of this Act and is approved
21by the Department. An applicant with an existing agreement
22under the Economic Development for a Growing Economy Tax
23Credit Act may submit an application for an agreement under
24this Act after it terminates any existing agreement under the
25Economic Development for a Growing Economy Tax Credit Act with
26respect to the same address or location. If a project that is

 

 

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1subject to an existing agreement under the Economic
2Development for a Growing Economy Tax Credit Act meets the
3requirements to be designated as a REV Illinois project under
4this Act, including for actions undertaken prior to the
5effective date of this Act, the taxpayer that is subject to
6that existing agreement under the Economic Development for a
7Growing Economy Tax Credit Act may apply to the Department to
8amend the agreement to allow the project to become a
9designated REV Illinois project. Following the amendment, time
10accrued during which the project was eligible for credits
11under the existing agreement under the Economic Development
12for a Growing Economy Tax Credit Act shall count toward the
13duration of the credit subject to limitations described in
14Section 40 of this Act.
15    (i) If, at any time following the designation of a project
16as a REV Illinois Project by the Department and prior to the
17termination or expiration of an agreement under this Act, the
18project ceases to qualify as a REV Illinois project because
19the taxpayer is no longer an electric vehicle manufacturer, an
20electric vehicle component manufacturer, an electric vehicle
21power supply equipment manufacturer, a battery recycling and
22reuse manufacturer, or a battery raw materials refining
23service provider, that project may receive tax credit awards
24as described in Section 5-15 and Section 5-51 of the Economic
25Development for a Growing Economy Tax Credit Act, as long as
26the project continues to meet requirements to obtain those

 

 

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1credits as described in the Economic Development for a Growing
2Economy Tax Credit Act and remains compliant with terms
3contained in the Agreement under this Act not related to their
4status as an electric vehicle manufacturer, an electric
5vehicle component manufacturer, an electric vehicle power
6supply equipment manufacturer, a battery recycling and reuse
7manufacturer, or a battery raw materials refining service
8provider. Time accrued during which the project was eligible
9for credits under an agreement under this Act shall count
10toward the duration of the credit subject to limitations
11described in Section 5-45 of the Economic Development for a
12Growing Economy Tax Credit Act.
13(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
14revised 6-27-22.)
 
15    (20 ILCS 686/30)
16    Sec. 30. Tax credit awards.
17    (a) Subject to the conditions set forth in this Act, a
18taxpayer is entitled to a credit against the tax imposed
19pursuant to subsections (a) and (b) of Section 201 of the
20Illinois Income Tax Act for a taxable year beginning on or
21after January 1, 2025 if the taxpayer is awarded a credit by
22the Department in accordance with an agreement under this Act.
23The Department has authority to award credits under this Act
24on and after January 1, 2022.
25    (b) REV Illinois Credits. A taxpayer may receive a tax

 

 

10200HB5189sam003- 23 -LRB102 24779 HLH 41963 a

1credit against the tax imposed under subsections (a) and (b)
2of Section 201 of the Illinois Income Tax Act, not to exceed
3the sum of (i) 75% of the incremental income tax attributable
4to new employees at the applicant's project and (ii) 10% of the
5training costs of the new employees. If the project is located
6in an underserved area or an energy transition area, then the
7amount of the credit may not exceed the sum of (i) 100% of the
8incremental income tax attributable to new employees at the
9applicant's project; and (ii) 10% of the training costs of the
10new employees. The percentage of training costs includable in
11the calculation may be increased by an additional 15% for
12training costs associated with new employees that are recent
13(2 years or less) graduates, certificate holders, or
14credential recipients from an institution of higher education
15in Illinois, or, if the training is provided by an institution
16of higher education in Illinois, the Clean Jobs Workforce
17Network Program, or an apprenticeship and training program
18located in Illinois and approved by and registered with the
19United States Department of Labor's Bureau of Apprenticeship
20and Training. An applicant is also eligible for a training
21credit that shall not exceed 10% of the training costs of
22retained employees for the purpose of upskilling to meet the
23operational needs of the applicant or the REV Illinois
24Project. The percentage of training costs includable in the
25calculation shall not exceed a total of 25%. If an applicant
26agrees to hire the required number of new employees, then the

 

 

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1maximum amount of the credit for that applicant may be
2increased by an amount not to exceed 75% 25% of the incremental
3income tax attributable to retained employees at the
4applicant's project; provided that, in order to receive the
5increase for retained employees, the applicant must, if
6applicable, meet or exceed the statewide baseline. If the
7Project is in an underserved area or an energy transition
8area, the maximum amount of the credit attributable to
9retained employees for the applicant may be increased to an
10amount not to exceed 100% 50% of the incremental income tax
11attributable to retained employees at the applicant's project;
12provided that, in order to receive the increase for retained
13employees, the applicant must meet or exceed the statewide
14baseline. REV Illinois Credits awarded may include credit
15earned for incremental income tax withheld and training costs
16incurred by the taxpayer beginning on or after January 1,
172022. Credits so earned and certified by the Department may be
18applied against the tax imposed by subsections (a) and (b) of
19Section 201 of the Illinois Income Tax Act for taxable years
20beginning on or after January 1, 2025.
21    (c) REV Construction Jobs Credit. For construction wages
22associated with a project that qualified for a REV Illinois
23Credit under subsection (b), the taxpayer may receive a tax
24credit against the tax imposed under subsections (a) and (b)
25of Section 201 of the Illinois Income Tax Act in an amount
26equal to 50% of the incremental income tax attributable to

 

 

10200HB5189sam003- 25 -LRB102 24779 HLH 41963 a

1construction wages paid in connection with construction of the
2project facilities, as a jobs credit for workers hired to
3construct the project.
4    The REV Construction Jobs Credit may not exceed 75% of the
5amount of the incremental income tax attributable to
6construction wages paid in connection with construction of the
7project facilities if the project is in an underserved area or
8an energy transition area.
9    (d) The Department shall certify to the Department of
10Revenue: (1) the identity of Taxpayers that are eligible for
11the REV Illinois Credit and REV Construction Jobs Credit; (2)
12the amount of the REV Illinois Credits and REV Construction
13Jobs Credits awarded in each calendar year; and (3) the amount
14of the REV Illinois Credit and REV Construction Jobs Credit
15claimed in each calendar year. REV Illinois Credits awarded
16may include credit earned for Incremental Income Tax withheld
17and Training Costs incurred by the Taxpayer beginning on or
18after January 1, 2022. Credits so earned and certified by the
19Department may be applied against the tax imposed by Section
20201(a) and (b) of the Illinois Income Tax Act for taxable years
21beginning on or after January 1, 2025.
22    (e) Applicants seeking certification for a tax credits
23related to the construction of the project facilities in the
24State shall require the contractor to enter into a project
25labor agreement that conforms with the Project Labor
26Agreements Act.

 

 

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1    (f) Any applicant issued a certificate for a tax credit or
2tax exemption under this Act must annually report to the
3Department the total project tax benefits received. Reports
4are due no later than May 31 of each year and shall cover the
5previous calendar year. The first report is for the 2022
6calendar year and is due no later than May 31, 2023.
7    (g) Nothing in this Act shall prohibit an award of credit
8to an applicant that uses a PEO if all other award criteria are
9satisfied.
10    (h) With respect to any portion of a REV Illinois Credit
11that is based on the incremental income tax attributable to
12new employees or retained employees, in lieu of the Credit
13allowed under this Act against the taxes imposed pursuant to
14subsections (a) and (b) of Section 201 of the Illinois Income
15Tax Act, a taxpayer that otherwise meets the criteria set
16forth in this Section, the taxpayer may elect to claim the
17credit, on or after January 1, 2025, against its obligation to
18pay over withholding under Section 704A of the Illinois Income
19Tax Act. The election shall be made in the manner prescribed by
20the Department of Revenue and once made shall be irrevocable.
21(Source: P.A. 102-669, eff. 11-16-21.)
 
22    (20 ILCS 686/40)
23    Sec. 40. Amount and duration of the credits; limitation to
24amount of costs of specified items. The Department shall
25determine the amount and duration of the REV Illinois Credit

 

 

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1awarded under this Act, subject to the limitations set forth
2in this Act. For a project that qualified under paragraph (1),
3(2), or (4) of subsection (c) of Section 20, the duration of
4the credit may not exceed 15 taxable years, with an option to
5renew the agreement for no more than one term not to exceed an
6additional 15 taxable years. For project that qualified under
7paragraph (3) of subsection (c) of Section 20, the duration of
8the credit may not exceed 10 taxable years, with an option to
9renew the agreement for no more than one term not to exceed an
10additional 10 taxable years. The credit may be stated as a
11percentage of the incremental income tax and training costs
12attributable to the applicant's project and may include a
13fixed dollar limitation.
14    Nothing in this Section shall prevent the Department, in
15consultation with the Department of Revenue, from adopting
16rules to extend the sunset of any earned, existing, and unused
17tax credit or credits a taxpayer may be in possession of, as
18provided for in Section 605-1055 of the Department of Commerce
19and Economic Opportunity Law of the Civil Administrative Code
20of Illinois, notwithstanding the carry-forward provisions
21pursuant to paragraph (4) of Section 211 of the Illinois
22Income Tax Act.
23(Source: P.A. 102-669, eff. 11-16-21.)".