96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5810

 

Introduced 2/10/2010, by Rep. Sidney H. Mathias - Mike Bost - Darlene J. Senger - Elizabeth Coulson - Renée Kosel, et al.

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/201   from Ch. 120, par. 2-201
35 ILCS 120/1d   from Ch. 120, par. 440d
35 ILCS 120/1e   from Ch. 120, par. 440e
35 ILCS 120/1f   from Ch. 120, par. 440f
35 ILCS 120/5l   from Ch. 120, par. 444l
220 ILCS 5/9-222   from Ch. 111 2/3, par. 9-222
220 ILCS 5/9-222.1A

    Creates the Green Energy Business Act. Authorizes the Department of Commerce and Economic Opportunity to receive and approve the applications of qualified businesses seeking designation as Green Energy Businesses. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, and the Public Utilities Act to provide that Green Energy Businesses are eligible for certain credits and exemptions under those Acts. Effective immediately.


LRB096 19618 HLH 35013 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5810 LRB096 19618 HLH 35013 b

1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the Green
5 Energy Business Act.
 
6     Section 5. Definitions. As used in this Act, the following
7 words shall have the meanings ascribed to them below, unless
8 the context otherwise requires:
9     "Biodiesel" means a renewable diesel fuel derived from
10 biomass that is intended for use in diesel engines.
11     "Department" means the Department of Commerce and Economic
12 Opportunity.
13     "Ethanol" means a product produced from agricultural
14 commodities or by-products used as a fuel or to be blended with
15 other fuels for use in motor vehicles.
16     "Green Energy Business" means a business that:
17         (i) produces or manufactures components used in the
18     production of electricity from renewable energy resources;
19         (ii) has the capacity to produce and produces at least
20     5 megawatts of electricity from renewable energy resources
21     each year;
22         (iii) has the capacity to produce and produces no less
23     than 30,000,000 gallons of biodiesel or ethanol each year.

 

 

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1     "Renewable energy resources" means wind energy; solar
2 thermal energy; photovoltaic cells and panels; biodiesel;
3 crops; untreated and unadulterated organic waste biomass;
4 trees and tree trimmings; hydropower that does not involve new
5 construction or significant expansion of hydropower dams; and
6 other alternative sources of environmentally preferable
7 energy. For purposes of this Act, landfill gas produced in the
8 State is a renewable energy resource, but tires; garbage;
9 general household, institutional, and commercial waste;
10 industrial lunchroom or office waste; landscape waste (other
11 than trees and tree trimmings); railroad crossties; utility
12 poles; and construction or demolition debris (other than
13 untreated and unadulterated waste wood) are not. Renewable
14 energy resources also include any renewable energy credit or
15 credits associated with or generated by a source of energy that
16 otherwise qualifies as a renewable energy resource under this
17 Act.
 
18     Section 10. Green Energy Business.
19     (a) To assist in the encouragement, development, growth,
20 and expansion of the private sector through green energy
21 projects, the Department may receive and approve applications
22 for the designation of "Green Energy Business" in Illinois.
23 Applications may be submitted at any time. No later than 90
24 days after an application is submitted, the Department shall
25 notify the applicant of the Department's determination as to

 

 

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1 the applicant's qualification to be designated as a Green
2 Energy Business under this Section. To qualify as a Green
3 Energy Business, a business must meet all of the following
4 conditions:
5         (1) It must not be located, at the time of designation,
6     in an enterprise zone designated under the Illinois
7     Enterprise Zone Act.
8         (2) It must commit to (i) produce or manufacture
9     components used in the production of electricity from
10     renewable energy resources; (ii) produce at least 5
11     megawatts of electricity from renewable energy resources
12     each year; or (iii) produce not less than 30,000,000
13     gallons of biodiesel or ethanol each year.
14         (3) It must commit to have the business placed in
15     service at a qualified property in Illinois.
16         (4) It must certify in writing that (i) the investments
17     would not be placed in service at a qualified property
18     without the tax credits and exemptions referenced in
19     subsection (b) of this Section and (ii) the job creation or
20     job retention would not occur without the tax credits and
21     exemptions referenced in subsection (b) of this Section.
22     The terms "placed in service" and "qualified property" have
23     the same meanings as described in subsection (h) of Section
24     201 of the Illinois Income Tax Act.
25         (5) It must meet any additional criteria established by
26     the Department.

 

 

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1     (b) Each business designated as a Green Energy Business by
2 the Department shall qualify for the credits and exemptions in
3 Sections 9-222 and 9-222.1A of the Public Utilities Act;
4 subsection (h) of Section 201 of the Illinois Income Tax Act;
5 and Section 1d of the Retailers' Occupation Tax Act. Each
6 business designated as a Green Energy Business under this
7 Section shall also qualify for the exemption described in
8 Section 5l of the Retailers' Occupation Tax Act. The credit
9 provided in subsection (h) of Section 201 of the Illinois
10 Income Tax Act shall be applicable to investments in qualified
11 property used to meet the requirements in subdivision (a)(2) of
12 this Section.
13     (c) The Department must revoke a Green Energy Business
14 designation if, within the Department's discretion, the
15 participating business fails to comply with the terms and
16 conditions of the designation.
 
17     Section 15. Project labor agreements
18     (a) Each business designated as a Green Energy Business by
19 the Department must enter into a project labor agreement. The
20 project labor agreement must include provisions establishing
21 (i) the minimum hourly wage for each class of labor
22 organization employee; (ii) the benefits and other
23 compensation for each class of labor organization employee; and
24 (iii) that no strike or disputes will be engaged in by the
25 labor organization employees; and (iv) that no lockout or

 

 

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1 disputes will be engaged in by the owner of a Green Energy
2 Business. The owner of a Green Energy Business and the labor
3 organizations shall have the authority to include other terms
4 and conditions as they deem necessary.
5     (b) Each project labor agreement shall be filed with the
6 Director in accordance with the procedures established by the
7 Department. At a minimum, the project labor agreement must
8 provide the names, addresses, and occupations of the owner of
9 the Green Energy Business and the individuals representing the
10 labor organization employees participating in the project
11 labor agreement. The agreement must also specify the terms and
12 conditions required in subsection (a) of this Section.
 
13     Section 20. The Illinois Income Tax Act is amended by
14 changing Section 201 as follows:
 
15     (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
16     Sec. 201. Tax Imposed.
17     (a) In general. A tax measured by net income is hereby
18 imposed on every individual, corporation, trust and estate for
19 each taxable year ending after July 31, 1969 on the privilege
20 of earning or receiving income in or as a resident of this
21 State. Such tax shall be in addition to all other occupation or
22 privilege taxes imposed by this State or by any municipal
23 corporation or political subdivision thereof.
24     (b) Rates. The tax imposed by subsection (a) of this

 

 

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1 Section shall be determined as follows, except as adjusted by
2 subsection (d-1):
3         (1) In the case of an individual, trust or estate, for
4     taxable years ending prior to July 1, 1989, an amount equal
5     to 2 1/2% of the taxpayer's net income for the taxable
6     year.
7         (2) In the case of an individual, trust or estate, for
8     taxable years beginning prior to July 1, 1989 and ending
9     after June 30, 1989, an amount equal to the sum of (i) 2
10     1/2% of the taxpayer's net income for the period prior to
11     July 1, 1989, as calculated under Section 202.3, and (ii)
12     3% of the taxpayer's net income for the period after June
13     30, 1989, as calculated under Section 202.3.
14         (3) In the case of an individual, trust or estate, for
15     taxable years beginning after June 30, 1989, an amount
16     equal to 3% of the taxpayer's net income for the taxable
17     year.
18         (4) (Blank).
19         (5) (Blank).
20         (6) In the case of a corporation, for taxable years
21     ending prior to July 1, 1989, an amount equal to 4% of the
22     taxpayer's net income for the taxable year.
23         (7) In the case of a corporation, for taxable years
24     beginning prior to July 1, 1989 and ending after June 30,
25     1989, an amount equal to the sum of (i) 4% of the
26     taxpayer's net income for the period prior to July 1, 1989,

 

 

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1     as calculated under Section 202.3, and (ii) 4.8% of the
2     taxpayer's net income for the period after June 30, 1989,
3     as calculated under Section 202.3.
4         (8) In the case of a corporation, for taxable years
5     beginning after June 30, 1989, an amount equal to 4.8% of
6     the taxpayer's net income for the taxable year.
7     (c) Personal Property Tax Replacement Income Tax.
8 Beginning on July 1, 1979 and thereafter, in addition to such
9 income tax, there is also hereby imposed the Personal Property
10 Tax Replacement Income Tax measured by net income on every
11 corporation (including Subchapter S corporations), partnership
12 and trust, for each taxable year ending after June 30, 1979.
13 Such taxes are imposed on the privilege of earning or receiving
14 income in or as a resident of this State. The Personal Property
15 Tax Replacement Income Tax shall be in addition to the income
16 tax imposed by subsections (a) and (b) of this Section and in
17 addition to all other occupation or privilege taxes imposed by
18 this State or by any municipal corporation or political
19 subdivision thereof.
20     (d) Additional Personal Property Tax Replacement Income
21 Tax Rates. The personal property tax replacement income tax
22 imposed by this subsection and subsection (c) of this Section
23 in the case of a corporation, other than a Subchapter S
24 corporation and except as adjusted by subsection (d-1), shall
25 be an additional amount equal to 2.85% of such taxpayer's net
26 income for the taxable year, except that beginning on January

 

 

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1 1, 1981, and thereafter, the rate of 2.85% specified in this
2 subsection shall be reduced to 2.5%, and in the case of a
3 partnership, trust or a Subchapter S corporation shall be an
4 additional amount equal to 1.5% of such taxpayer's net income
5 for the taxable year.
6     (d-1) Rate reduction for certain foreign insurers. In the
7 case of a foreign insurer, as defined by Section 35A-5 of the
8 Illinois Insurance Code, whose state or country of domicile
9 imposes on insurers domiciled in Illinois a retaliatory tax
10 (excluding any insurer whose premiums from reinsurance assumed
11 are 50% or more of its total insurance premiums as determined
12 under paragraph (2) of subsection (b) of Section 304, except
13 that for purposes of this determination premiums from
14 reinsurance do not include premiums from inter-affiliate
15 reinsurance arrangements), beginning with taxable years ending
16 on or after December 31, 1999, the sum of the rates of tax
17 imposed by subsections (b) and (d) shall be reduced (but not
18 increased) to the rate at which the total amount of tax imposed
19 under this Act, net of all credits allowed under this Act,
20 shall equal (i) the total amount of tax that would be imposed
21 on the foreign insurer's net income allocable to Illinois for
22 the taxable year by such foreign insurer's state or country of
23 domicile if that net income were subject to all income taxes
24 and taxes measured by net income imposed by such foreign
25 insurer's state or country of domicile, net of all credits
26 allowed or (ii) a rate of zero if no such tax is imposed on such

 

 

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1 income by the foreign insurer's state of domicile. For the
2 purposes of this subsection (d-1), an inter-affiliate includes
3 a mutual insurer under common management.
4         (1) For the purposes of subsection (d-1), in no event
5     shall the sum of the rates of tax imposed by subsections
6     (b) and (d) be reduced below the rate at which the sum of:
7             (A) the total amount of tax imposed on such foreign
8         insurer under this Act for a taxable year, net of all
9         credits allowed under this Act, plus
10             (B) the privilege tax imposed by Section 409 of the
11         Illinois Insurance Code, the fire insurance company
12         tax imposed by Section 12 of the Fire Investigation
13         Act, and the fire department taxes imposed under
14         Section 11-10-1 of the Illinois Municipal Code,
15     equals 1.25% for taxable years ending prior to December 31,
16     2003, or 1.75% for taxable years ending on or after
17     December 31, 2003, of the net taxable premiums written for
18     the taxable year, as described by subsection (1) of Section
19     409 of the Illinois Insurance Code. This paragraph will in
20     no event increase the rates imposed under subsections (b)
21     and (d).
22         (2) Any reduction in the rates of tax imposed by this
23     subsection shall be applied first against the rates imposed
24     by subsection (b) and only after the tax imposed by
25     subsection (a) net of all credits allowed under this
26     Section other than the credit allowed under subsection (i)

 

 

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1     has been reduced to zero, against the rates imposed by
2     subsection (d).
3     This subsection (d-1) is exempt from the provisions of
4 Section 250.
5     (e) Investment credit. A taxpayer shall be allowed a credit
6 against the Personal Property Tax Replacement Income Tax for
7 investment in qualified property.
8         (1) A taxpayer shall be allowed a credit equal to .5%
9     of the basis of qualified property placed in service during
10     the taxable year, provided such property is placed in
11     service on or after July 1, 1984. There shall be allowed an
12     additional credit equal to .5% of the basis of qualified
13     property placed in service during the taxable year,
14     provided such property is placed in service on or after
15     July 1, 1986, and the taxpayer's base employment within
16     Illinois has increased by 1% or more over the preceding
17     year as determined by the taxpayer's employment records
18     filed with the Illinois Department of Employment Security.
19     Taxpayers who are new to Illinois shall be deemed to have
20     met the 1% growth in base employment for the first year in
21     which they file employment records with the Illinois
22     Department of Employment Security. The provisions added to
23     this Section by Public Act 85-1200 (and restored by Public
24     Act 87-895) shall be construed as declaratory of existing
25     law and not as a new enactment. If, in any year, the
26     increase in base employment within Illinois over the

 

 

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1     preceding year is less than 1%, the additional credit shall
2     be limited to that percentage times a fraction, the
3     numerator of which is .5% and the denominator of which is
4     1%, but shall not exceed .5%. The investment credit shall
5     not be allowed to the extent that it would reduce a
6     taxpayer's liability in any tax year below zero, nor may
7     any credit for qualified property be allowed for any year
8     other than the year in which the property was placed in
9     service in Illinois. For tax years ending on or after
10     December 31, 1987, and on or before December 31, 1988, the
11     credit shall be allowed for the tax year in which the
12     property is placed in service, or, if the amount of the
13     credit exceeds the tax liability for that year, whether it
14     exceeds the original liability or the liability as later
15     amended, such excess may be carried forward and applied to
16     the tax liability of the 5 taxable years following the
17     excess credit years if the taxpayer (i) makes investments
18     which cause the creation of a minimum of 2,000 full-time
19     equivalent jobs in Illinois, (ii) is located in an
20     enterprise zone established pursuant to the Illinois
21     Enterprise Zone Act and (iii) is certified by the
22     Department of Commerce and Community Affairs (now
23     Department of Commerce and Economic Opportunity) as
24     complying with the requirements specified in clause (i) and
25     (ii) by July 1, 1986. The Department of Commerce and
26     Community Affairs (now Department of Commerce and Economic

 

 

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1     Opportunity) shall notify the Department of Revenue of all
2     such certifications immediately. For tax years ending
3     after December 31, 1988, the credit shall be allowed for
4     the tax year in which the property is placed in service,
5     or, if the amount of the credit exceeds the tax liability
6     for that year, whether it exceeds the original liability or
7     the liability as later amended, such excess may be carried
8     forward and applied to the tax liability of the 5 taxable
9     years following the excess credit years. The credit shall
10     be applied to the earliest year for which there is a
11     liability. If there is credit from more than one tax year
12     that is available to offset a liability, earlier credit
13     shall be applied first.
14         (2) The term "qualified property" means property
15     which:
16             (A) is tangible, whether new or used, including
17         buildings and structural components of buildings and
18         signs that are real property, but not including land or
19         improvements to real property that are not a structural
20         component of a building such as landscaping, sewer
21         lines, local access roads, fencing, parking lots, and
22         other appurtenances;
23             (B) is depreciable pursuant to Section 167 of the
24         Internal Revenue Code, except that "3-year property"
25         as defined in Section 168(c)(2)(A) of that Code is not
26         eligible for the credit provided by this subsection

 

 

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1         (e);
2             (C) is acquired by purchase as defined in Section
3         179(d) of the Internal Revenue Code;
4             (D) is used in Illinois by a taxpayer who is
5         primarily engaged in manufacturing, or in mining coal
6         or fluorite, or in retailing, or was placed in service
7         on or after July 1, 2006 in a River Edge Redevelopment
8         Zone established pursuant to the River Edge
9         Redevelopment Zone Act; and
10             (E) has not previously been used in Illinois in
11         such a manner and by such a person as would qualify for
12         the credit provided by this subsection (e) or
13         subsection (f).
14         (3) For purposes of this subsection (e),
15     "manufacturing" means the material staging and production
16     of tangible personal property by procedures commonly
17     regarded as manufacturing, processing, fabrication, or
18     assembling which changes some existing material into new
19     shapes, new qualities, or new combinations. For purposes of
20     this subsection (e) the term "mining" shall have the same
21     meaning as the term "mining" in Section 613(c) of the
22     Internal Revenue Code. For purposes of this subsection (e),
23     the term "retailing" means the sale of tangible personal
24     property for use or consumption and not for resale, or
25     services rendered in conjunction with the sale of tangible
26     personal property for use or consumption and not for

 

 

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1     resale. For purposes of this subsection (e), "tangible
2     personal property" has the same meaning as when that term
3     is used in the Retailers' Occupation Tax Act, and, for
4     taxable years ending after December 31, 2008, does not
5     include the generation, transmission, or distribution of
6     electricity.
7         (4) The basis of qualified property shall be the basis
8     used to compute the depreciation deduction for federal
9     income tax purposes.
10         (5) If the basis of the property for federal income tax
11     depreciation purposes is increased after it has been placed
12     in service in Illinois by the taxpayer, the amount of such
13     increase shall be deemed property placed in service on the
14     date of such increase in basis.
15         (6) The term "placed in service" shall have the same
16     meaning as under Section 46 of the Internal Revenue Code.
17         (7) If during any taxable year, any property ceases to
18     be qualified property in the hands of the taxpayer within
19     48 months after being placed in service, or the situs of
20     any qualified property is moved outside Illinois within 48
21     months after being placed in service, the Personal Property
22     Tax Replacement Income Tax for such taxable year shall be
23     increased. Such increase shall be determined by (i)
24     recomputing the investment credit which would have been
25     allowed for the year in which credit for such property was
26     originally allowed by eliminating such property from such

 

 

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1     computation and, (ii) subtracting such recomputed credit
2     from the amount of credit previously allowed. For the
3     purposes of this paragraph (7), a reduction of the basis of
4     qualified property resulting from a redetermination of the
5     purchase price shall be deemed a disposition of qualified
6     property to the extent of such reduction.
7         (8) Unless the investment credit is extended by law,
8     the basis of qualified property shall not include costs
9     incurred after December 31, 2013, except for costs incurred
10     pursuant to a binding contract entered into on or before
11     December 31, 2013.
12         (9) Each taxable year ending before December 31, 2000,
13     a partnership may elect to pass through to its partners the
14     credits to which the partnership is entitled under this
15     subsection (e) for the taxable year. A partner may use the
16     credit allocated to him or her under this paragraph only
17     against the tax imposed in subsections (c) and (d) of this
18     Section. If the partnership makes that election, those
19     credits shall be allocated among the partners in the
20     partnership in accordance with the rules set forth in
21     Section 704(b) of the Internal Revenue Code, and the rules
22     promulgated under that Section, and the allocated amount of
23     the credits shall be allowed to the partners for that
24     taxable year. The partnership shall make this election on
25     its Personal Property Tax Replacement Income Tax return for
26     that taxable year. The election to pass through the credits

 

 

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1     shall be irrevocable.
2         For taxable years ending on or after December 31, 2000,
3     a partner that qualifies its partnership for a subtraction
4     under subparagraph (I) of paragraph (2) of subsection (d)
5     of Section 203 or a shareholder that qualifies a Subchapter
6     S corporation for a subtraction under subparagraph (S) of
7     paragraph (2) of subsection (b) of Section 203 shall be
8     allowed a credit under this subsection (e) equal to its
9     share of the credit earned under this subsection (e) during
10     the taxable year by the partnership or Subchapter S
11     corporation, determined in accordance with the
12     determination of income and distributive share of income
13     under Sections 702 and 704 and Subchapter S of the Internal
14     Revenue Code. This paragraph is exempt from the provisions
15     of Section 250.
16     (f) Investment credit; Enterprise Zone; River Edge
17 Redevelopment Zone.
18         (1) A taxpayer shall be allowed a credit against the
19     tax imposed by subsections (a) and (b) of this Section for
20     investment in qualified property which is placed in service
21     in an Enterprise Zone created pursuant to the Illinois
22     Enterprise Zone Act or, for property placed in service on
23     or after July 1, 2006, a River Edge Redevelopment Zone
24     established pursuant to the River Edge Redevelopment Zone
25     Act. For partners, shareholders of Subchapter S
26     corporations, and owners of limited liability companies,

 

 

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1     if the liability company is treated as a partnership for
2     purposes of federal and State income taxation, there shall
3     be allowed a credit under this subsection (f) to be
4     determined in accordance with the determination of income
5     and distributive share of income under Sections 702 and 704
6     and Subchapter S of the Internal Revenue Code. The credit
7     shall be .5% of the basis for such property. The credit
8     shall be available only in the taxable year in which the
9     property is placed in service in the Enterprise Zone or
10     River Edge Redevelopment Zone and shall not be allowed to
11     the extent that it would reduce a taxpayer's liability for
12     the tax imposed by subsections (a) and (b) of this Section
13     to below zero. For tax years ending on or after December
14     31, 1985, the credit shall be allowed for the tax year in
15     which the property is placed in service, or, if the amount
16     of the credit exceeds the tax liability for that year,
17     whether it exceeds the original liability or the liability
18     as later amended, such excess may be carried forward and
19     applied to the tax liability of the 5 taxable years
20     following the excess credit year. The credit shall be
21     applied to the earliest year for which there is a
22     liability. If there is credit from more than one tax year
23     that is available to offset a liability, the credit
24     accruing first in time shall be applied first.
25         (2) The term qualified property means property which:
26             (A) is tangible, whether new or used, including

 

 

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1         buildings and structural components of buildings;
2             (B) is depreciable pursuant to Section 167 of the
3         Internal Revenue Code, except that "3-year property"
4         as defined in Section 168(c)(2)(A) of that Code is not
5         eligible for the credit provided by this subsection
6         (f);
7             (C) is acquired by purchase as defined in Section
8         179(d) of the Internal Revenue Code;
9             (D) is used in the Enterprise Zone or River Edge
10         Redevelopment Zone by the taxpayer; and
11             (E) has not been previously used in Illinois in
12         such a manner and by such a person as would qualify for
13         the credit provided by this subsection (f) or
14         subsection (e).
15         (3) The basis of qualified property shall be the basis
16     used to compute the depreciation deduction for federal
17     income tax purposes.
18         (4) If the basis of the property for federal income tax
19     depreciation purposes is increased after it has been placed
20     in service in the Enterprise Zone or River Edge
21     Redevelopment Zone by the taxpayer, the amount of such
22     increase shall be deemed property placed in service on the
23     date of such increase in basis.
24         (5) The term "placed in service" shall have the same
25     meaning as under Section 46 of the Internal Revenue Code.
26         (6) If during any taxable year, any property ceases to

 

 

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1     be qualified property in the hands of the taxpayer within
2     48 months after being placed in service, or the situs of
3     any qualified property is moved outside the Enterprise Zone
4     or River Edge Redevelopment Zone within 48 months after
5     being placed in service, the tax imposed under subsections
6     (a) and (b) of this Section for such taxable year shall be
7     increased. Such increase shall be determined by (i)
8     recomputing the investment credit which would have been
9     allowed for the year in which credit for such property was
10     originally allowed by eliminating such property from such
11     computation, and (ii) subtracting such recomputed credit
12     from the amount of credit previously allowed. For the
13     purposes of this paragraph (6), a reduction of the basis of
14     qualified property resulting from a redetermination of the
15     purchase price shall be deemed a disposition of qualified
16     property to the extent of such reduction.
17         (7) There shall be allowed an additional credit equal
18     to 0.5% of the basis of qualified property placed in
19     service during the taxable year in a River Edge
20     Redevelopment Zone, provided such property is placed in
21     service on or after July 1, 2006, and the taxpayer's base
22     employment within Illinois has increased by 1% or more over
23     the preceding year as determined by the taxpayer's
24     employment records filed with the Illinois Department of
25     Employment Security. Taxpayers who are new to Illinois
26     shall be deemed to have met the 1% growth in base

 

 

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1     employment for the first year in which they file employment
2     records with the Illinois Department of Employment
3     Security. If, in any year, the increase in base employment
4     within Illinois over the preceding year is less than 1%,
5     the additional credit shall be limited to that percentage
6     times a fraction, the numerator of which is 0.5% and the
7     denominator of which is 1%, but shall not exceed 0.5%.
8     (g) Jobs Tax Credit; Enterprise Zone, River Edge
9 Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
10         (1) A taxpayer conducting a trade or business in an
11     enterprise zone or a High Impact Business designated by the
12     Department of Commerce and Economic Opportunity or for
13     taxable years ending on or after December 31, 2006, in a
14     River Edge Redevelopment Zone conducting a trade or
15     business in a federally designated Foreign Trade Zone or
16     Sub-Zone shall be allowed a credit against the tax imposed
17     by subsections (a) and (b) of this Section in the amount of
18     $500 per eligible employee hired to work in the zone during
19     the taxable year.
20         (2) To qualify for the credit:
21             (A) the taxpayer must hire 5 or more eligible
22         employees to work in an enterprise zone, River Edge
23         Redevelopment Zone, or federally designated Foreign
24         Trade Zone or Sub-Zone during the taxable year;
25             (B) the taxpayer's total employment within the
26         enterprise zone, River Edge Redevelopment Zone, or

 

 

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1         federally designated Foreign Trade Zone or Sub-Zone
2         must increase by 5 or more full-time employees beyond
3         the total employed in that zone at the end of the
4         previous tax year for which a jobs tax credit under
5         this Section was taken, or beyond the total employed by
6         the taxpayer as of December 31, 1985, whichever is
7         later; and
8             (C) the eligible employees must be employed 180
9         consecutive days in order to be deemed hired for
10         purposes of this subsection.
11         (3) An "eligible employee" means an employee who is:
12             (A) Certified by the Department of Commerce and
13         Economic Opportunity as "eligible for services"
14         pursuant to regulations promulgated in accordance with
15         Title II of the Job Training Partnership Act, Training
16         Services for the Disadvantaged or Title III of the Job
17         Training Partnership Act, Employment and Training
18         Assistance for Dislocated Workers Program.
19             (B) Hired after the enterprise zone, River Edge
20         Redevelopment Zone, or federally designated Foreign
21         Trade Zone or Sub-Zone was designated or the trade or
22         business was located in that zone, whichever is later.
23             (C) Employed in the enterprise zone, River Edge
24         Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
25         An employee is employed in an enterprise zone or
26         federally designated Foreign Trade Zone or Sub-Zone if

 

 

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1         his services are rendered there or it is the base of
2         operations for the services performed.
3             (D) A full-time employee working 30 or more hours
4         per week.
5         (4) For tax years ending on or after December 31, 1985
6     and prior to December 31, 1988, the credit shall be allowed
7     for the tax year in which the eligible employees are hired.
8     For tax years ending on or after December 31, 1988, the
9     credit shall be allowed for the tax year immediately
10     following the tax year in which the eligible employees are
11     hired. If the amount of the credit exceeds the tax
12     liability for that year, whether it exceeds the original
13     liability or the liability as later amended, such excess
14     may be carried forward and applied to the tax liability of
15     the 5 taxable years following the excess credit year. The
16     credit shall be applied to the earliest year for which
17     there is a liability. If there is credit from more than one
18     tax year that is available to offset a liability, earlier
19     credit shall be applied first.
20         (5) The Department of Revenue shall promulgate such
21     rules and regulations as may be deemed necessary to carry
22     out the purposes of this subsection (g).
23         (6) The credit shall be available for eligible
24     employees hired on or after January 1, 1986.
25     (h) Investment credit; High Impact Business; Green Energy
26 Business.

 

 

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1         (1) Subject to subsection (a) of Section 10 of the
2     Green Energy Business Act, or subsections (b) and (b-5) of
3     Section 5.5 of the Illinois Enterprise Zone Act, a taxpayer
4     shall be allowed a credit against the tax imposed by
5     subsections (a) and (b) of this Section for investment in
6     qualified property which is placed in service by a
7     Department of Commerce and Economic Opportunity designated
8     Green Energy Business or High Impact Business. The credit
9     shall be .5% of the basis for such property. The credit
10     shall not be available (i) until the minimum investments in
11     qualified property set forth in subdivision (a)(3)(A) of
12     Section 5.5 of the Illinois Enterprise Zone Act have been
13     satisfied or (ii) until the Department of Commerce and
14     Economic Opportunity designates the business as a Green
15     Energy Business under the Green Energy Business Act, or
16     until the time authorized in subsection (b-5) of the
17     Illinois Enterprise Zone Act for entities designated as
18     High Impact Businesses under subdivisions (a)(3)(B),
19     (a)(3)(C), and (a)(3)(D) of Section 5.5 of the Illinois
20     Enterprise Zone Act, and shall not be allowed to the extent
21     that it would reduce a taxpayer's liability for the tax
22     imposed by subsections (a) and (b) of this Section to below
23     zero. The credit applicable to such investments shall be
24     taken in the taxable year in which such investments have
25     been completed. The credit for additional investments
26     beyond the minimum investment by a designated high impact

 

 

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1     business authorized under subdivision (a)(3)(A) of Section
2     5.5 of the Illinois Enterprise Zone Act shall be available
3     only in the taxable year in which the property is placed in
4     service and shall not be allowed to the extent that it
5     would reduce a taxpayer's liability for the tax imposed by
6     subsections (a) and (b) of this Section to below zero. For
7     tax years ending on or after December 31, 1987, the credit
8     shall be allowed for the tax year in which the property is
9     placed in service, or, if the amount of the credit exceeds
10     the tax liability for that year, whether it exceeds the
11     original liability or the liability as later amended, such
12     excess may be carried forward and applied to the tax
13     liability of the 5 taxable years following the excess
14     credit year. The credit shall be applied to the earliest
15     year for which there is a liability. If there is credit
16     from more than one tax year that is available to offset a
17     liability, the credit accruing first in time shall be
18     applied first.
19         Changes made in this subdivision (h)(1) by Public Act
20     88-670 restore changes made by Public Act 85-1182 and
21     reflect existing law.
22         (2) The term qualified property means property which:
23             (A) is tangible, whether new or used, including
24         buildings and structural components of buildings;
25             (B) is depreciable pursuant to Section 167 of the
26         Internal Revenue Code, except that "3-year property"

 

 

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1         as defined in Section 168(c)(2)(A) of that Code is not
2         eligible for the credit provided by this subsection
3         (h);
4             (C) is acquired by purchase as defined in Section
5         179(d) of the Internal Revenue Code; and
6             (D) is not eligible for the Enterprise Zone
7         Investment Credit provided by subsection (f) of this
8         Section.
9         (3) The basis of qualified property shall be the basis
10     used to compute the depreciation deduction for federal
11     income tax purposes.
12         (4) If the basis of the property for federal income tax
13     depreciation purposes is increased after it has been placed
14     in service in a federally designated Foreign Trade Zone or
15     Sub-Zone located in Illinois by the taxpayer, the amount of
16     such increase shall be deemed property placed in service on
17     the date of such increase in basis.
18         (5) The term "placed in service" shall have the same
19     meaning as under Section 46 of the Internal Revenue Code.
20         (6) If during any taxable year ending on or before
21     December 31, 1996, any property ceases to be qualified
22     property in the hands of the taxpayer within 48 months
23     after being placed in service, or the situs of any
24     qualified property is moved outside Illinois within 48
25     months after being placed in service, the tax imposed under
26     subsections (a) and (b) of this Section for such taxable

 

 

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1     year shall be increased. Such increase shall be determined
2     by (i) recomputing the investment credit which would have
3     been allowed for the year in which credit for such property
4     was originally allowed by eliminating such property from
5     such computation, and (ii) subtracting such recomputed
6     credit from the amount of credit previously allowed. For
7     the purposes of this paragraph (6), a reduction of the
8     basis of qualified property resulting from a
9     redetermination of the purchase price shall be deemed a
10     disposition of qualified property to the extent of such
11     reduction.
12         (7) Beginning with tax years ending after December 31,
13     1996, if a taxpayer qualifies for the credit under this
14     subsection (h) and thereby is granted a tax abatement and
15     the taxpayer relocates its entire facility in violation of
16     the explicit terms and length of the contract under Section
17     18-183 of the Property Tax Code, the tax imposed under
18     subsections (a) and (b) of this Section shall be increased
19     for the taxable year in which the taxpayer relocated its
20     facility by an amount equal to the amount of credit
21     received by the taxpayer under this subsection (h).
22     (i) Credit for Personal Property Tax Replacement Income
23 Tax. For tax years ending prior to December 31, 2003, a credit
24 shall be allowed against the tax imposed by subsections (a) and
25 (b) of this Section for the tax imposed by subsections (c) and
26 (d) of this Section. This credit shall be computed by

 

 

HB5810 - 27 - LRB096 19618 HLH 35013 b

1 multiplying the tax imposed by subsections (c) and (d) of this
2 Section by a fraction, the numerator of which is base income
3 allocable to Illinois and the denominator of which is Illinois
4 base income, and further multiplying the product by the tax
5 rate imposed by subsections (a) and (b) of this Section.
6     Any credit earned on or after December 31, 1986 under this
7 subsection which is unused in the year the credit is computed
8 because it exceeds the tax liability imposed by subsections (a)
9 and (b) for that year (whether it exceeds the original
10 liability or the liability as later amended) may be carried
11 forward and applied to the tax liability imposed by subsections
12 (a) and (b) of the 5 taxable years following the excess credit
13 year, provided that no credit may be carried forward to any
14 year ending on or after December 31, 2003. This credit shall be
15 applied first to the earliest year for which there is a
16 liability. If there is a credit under this subsection from more
17 than one tax year that is available to offset a liability the
18 earliest credit arising under this subsection shall be applied
19 first.
20     If, during any taxable year ending on or after December 31,
21 1986, the tax imposed by subsections (c) and (d) of this
22 Section for which a taxpayer has claimed a credit under this
23 subsection (i) is reduced, the amount of credit for such tax
24 shall also be reduced. Such reduction shall be determined by
25 recomputing the credit to take into account the reduced tax
26 imposed by subsections (c) and (d). If any portion of the

 

 

HB5810 - 28 - LRB096 19618 HLH 35013 b

1 reduced amount of credit has been carried to a different
2 taxable year, an amended return shall be filed for such taxable
3 year to reduce the amount of credit claimed.
4     (j) Training expense credit. Beginning with tax years
5 ending on or after December 31, 1986 and prior to December 31,
6 2003, a taxpayer shall be allowed a credit against the tax
7 imposed by subsections (a) and (b) under this Section for all
8 amounts paid or accrued, on behalf of all persons employed by
9 the taxpayer in Illinois or Illinois residents employed outside
10 of Illinois by a taxpayer, for educational or vocational
11 training in semi-technical or technical fields or semi-skilled
12 or skilled fields, which were deducted from gross income in the
13 computation of taxable income. The credit against the tax
14 imposed by subsections (a) and (b) shall be 1.6% of such
15 training expenses. For partners, shareholders of subchapter S
16 corporations, and owners of limited liability companies, if the
17 liability company is treated as a partnership for purposes of
18 federal and State income taxation, there shall be allowed a
19 credit under this subsection (j) to be determined in accordance
20 with the determination of income and distributive share of
21 income under Sections 702 and 704 and subchapter S of the
22 Internal Revenue Code.
23     Any credit allowed under this subsection which is unused in
24 the year the credit is earned may be carried forward to each of
25 the 5 taxable years following the year for which the credit is
26 first computed until it is used. This credit shall be applied

 

 

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1 first to the earliest year for which there is a liability. If
2 there is a credit under this subsection from more than one tax
3 year that is available to offset a liability the earliest
4 credit arising under this subsection shall be applied first. No
5 carryforward credit may be claimed in any tax year ending on or
6 after December 31, 2003.
7     (k) Research and development credit.
8     For tax years ending after July 1, 1990 and prior to
9 December 31, 2003, and beginning again for tax years ending on
10 or after December 31, 2004, a taxpayer shall be allowed a
11 credit against the tax imposed by subsections (a) and (b) of
12 this Section for increasing research activities in this State.
13 The credit allowed against the tax imposed by subsections (a)
14 and (b) shall be equal to 6 1/2% of the qualifying expenditures
15 for increasing research activities in this State. For partners,
16 shareholders of subchapter S corporations, and owners of
17 limited liability companies, if the liability company is
18 treated as a partnership for purposes of federal and State
19 income taxation, there shall be allowed a credit under this
20 subsection to be determined in accordance with the
21 determination of income and distributive share of income under
22 Sections 702 and 704 and subchapter S of the Internal Revenue
23 Code.
24     For purposes of this subsection, "qualifying expenditures"
25 means the qualifying expenditures as defined for the federal
26 credit for increasing research activities which would be

 

 

HB5810 - 30 - LRB096 19618 HLH 35013 b

1 allowable under Section 41 of the Internal Revenue Code and
2 which are conducted in this State, "qualifying expenditures for
3 increasing research activities in this State" means the excess
4 of qualifying expenditures for the taxable year in which
5 incurred over qualifying expenditures for the base period,
6 "qualifying expenditures for the base period" means the average
7 of the qualifying expenditures for each year in the base
8 period, and "base period" means the 3 taxable years immediately
9 preceding the taxable year for which the determination is being
10 made.
11     Any credit in excess of the tax liability for the taxable
12 year may be carried forward. A taxpayer may elect to have the
13 unused credit shown on its final completed return carried over
14 as a credit against the tax liability for the following 5
15 taxable years or until it has been fully used, whichever occurs
16 first; provided that no credit earned in a tax year ending
17 prior to December 31, 2003 may be carried forward to any year
18 ending on or after December 31, 2003.
19     If an unused credit is carried forward to a given year from
20 2 or more earlier years, that credit arising in the earliest
21 year will be applied first against the tax liability for the
22 given year. If a tax liability for the given year still
23 remains, the credit from the next earliest year will then be
24 applied, and so on, until all credits have been used or no tax
25 liability for the given year remains. Any remaining unused
26 credit or credits then will be carried forward to the next

 

 

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1 following year in which a tax liability is incurred, except
2 that no credit can be carried forward to a year which is more
3 than 5 years after the year in which the expense for which the
4 credit is given was incurred.
5     No inference shall be drawn from this amendatory Act of the
6 91st General Assembly in construing this Section for taxable
7 years beginning before January 1, 1999.
8     (l) Environmental Remediation Tax Credit.
9         (i) For tax years ending after December 31, 1997 and on
10     or before December 31, 2001, a taxpayer shall be allowed a
11     credit against the tax imposed by subsections (a) and (b)
12     of this Section for certain amounts paid for unreimbursed
13     eligible remediation costs, as specified in this
14     subsection. For purposes of this Section, "unreimbursed
15     eligible remediation costs" means costs approved by the
16     Illinois Environmental Protection Agency ("Agency") under
17     Section 58.14 of the Environmental Protection Act that were
18     paid in performing environmental remediation at a site for
19     which a No Further Remediation Letter was issued by the
20     Agency and recorded under Section 58.10 of the
21     Environmental Protection Act. The credit must be claimed
22     for the taxable year in which Agency approval of the
23     eligible remediation costs is granted. The credit is not
24     available to any taxpayer if the taxpayer or any related
25     party caused or contributed to, in any material respect, a
26     release of regulated substances on, in, or under the site

 

 

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1     that was identified and addressed by the remedial action
2     pursuant to the Site Remediation Program of the
3     Environmental Protection Act. After the Pollution Control
4     Board rules are adopted pursuant to the Illinois
5     Administrative Procedure Act for the administration and
6     enforcement of Section 58.9 of the Environmental
7     Protection Act, determinations as to credit availability
8     for purposes of this Section shall be made consistent with
9     those rules. For purposes of this Section, "taxpayer"
10     includes a person whose tax attributes the taxpayer has
11     succeeded to under Section 381 of the Internal Revenue Code
12     and "related party" includes the persons disallowed a
13     deduction for losses by paragraphs (b), (c), and (f)(1) of
14     Section 267 of the Internal Revenue Code by virtue of being
15     a related taxpayer, as well as any of its partners. The
16     credit allowed against the tax imposed by subsections (a)
17     and (b) shall be equal to 25% of the unreimbursed eligible
18     remediation costs in excess of $100,000 per site, except
19     that the $100,000 threshold shall not apply to any site
20     contained in an enterprise zone as determined by the
21     Department of Commerce and Community Affairs (now
22     Department of Commerce and Economic Opportunity). The
23     total credit allowed shall not exceed $40,000 per year with
24     a maximum total of $150,000 per site. For partners and
25     shareholders of subchapter S corporations, there shall be
26     allowed a credit under this subsection to be determined in

 

 

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1     accordance with the determination of income and
2     distributive share of income under Sections 702 and 704 and
3     subchapter S of the Internal Revenue Code.
4         (ii) A credit allowed under this subsection that is
5     unused in the year the credit is earned may be carried
6     forward to each of the 5 taxable years following the year
7     for which the credit is first earned until it is used. The
8     term "unused credit" does not include any amounts of
9     unreimbursed eligible remediation costs in excess of the
10     maximum credit per site authorized under paragraph (i).
11     This credit shall be applied first to the earliest year for
12     which there is a liability. If there is a credit under this
13     subsection from more than one tax year that is available to
14     offset a liability, the earliest credit arising under this
15     subsection shall be applied first. A credit allowed under
16     this subsection may be sold to a buyer as part of a sale of
17     all or part of the remediation site for which the credit
18     was granted. The purchaser of a remediation site and the
19     tax credit shall succeed to the unused credit and remaining
20     carry-forward period of the seller. To perfect the
21     transfer, the assignor shall record the transfer in the
22     chain of title for the site and provide written notice to
23     the Director of the Illinois Department of Revenue of the
24     assignor's intent to sell the remediation site and the
25     amount of the tax credit to be transferred as a portion of
26     the sale. In no event may a credit be transferred to any

 

 

HB5810 - 34 - LRB096 19618 HLH 35013 b

1     taxpayer if the taxpayer or a related party would not be
2     eligible under the provisions of subsection (i).
3         (iii) For purposes of this Section, the term "site"
4     shall have the same meaning as under Section 58.2 of the
5     Environmental Protection Act.
6     (m) Education expense credit. Beginning with tax years
7 ending after December 31, 1999, a taxpayer who is the custodian
8 of one or more qualifying pupils shall be allowed a credit
9 against the tax imposed by subsections (a) and (b) of this
10 Section for qualified education expenses incurred on behalf of
11 the qualifying pupils. The credit shall be equal to 25% of
12 qualified education expenses, but in no event may the total
13 credit under this subsection claimed by a family that is the
14 custodian of qualifying pupils exceed $500. In no event shall a
15 credit under this subsection reduce the taxpayer's liability
16 under this Act to less than zero. This subsection is exempt
17 from the provisions of Section 250 of this Act.
18     For purposes of this subsection:
19     "Qualifying pupils" means individuals who (i) are
20 residents of the State of Illinois, (ii) are under the age of
21 21 at the close of the school year for which a credit is
22 sought, and (iii) during the school year for which a credit is
23 sought were full-time pupils enrolled in a kindergarten through
24 twelfth grade education program at any school, as defined in
25 this subsection.
26     "Qualified education expense" means the amount incurred on

 

 

HB5810 - 35 - LRB096 19618 HLH 35013 b

1 behalf of a qualifying pupil in excess of $250 for tuition,
2 book fees, and lab fees at the school in which the pupil is
3 enrolled during the regular school year.
4     "School" means any public or nonpublic elementary or
5 secondary school in Illinois that is in compliance with Title
6 VI of the Civil Rights Act of 1964 and attendance at which
7 satisfies the requirements of Section 26-1 of the School Code,
8 except that nothing shall be construed to require a child to
9 attend any particular public or nonpublic school to qualify for
10 the credit under this Section.
11     "Custodian" means, with respect to qualifying pupils, an
12 Illinois resident who is a parent, the parents, a legal
13 guardian, or the legal guardians of the qualifying pupils.
14     (n) River Edge Redevelopment Zone site remediation tax
15 credit.
16         (i) For tax years ending on or after December 31, 2006,
17     a taxpayer shall be allowed a credit against the tax
18     imposed by subsections (a) and (b) of this Section for
19     certain amounts paid for unreimbursed eligible remediation
20     costs, as specified in this subsection. For purposes of
21     this Section, "unreimbursed eligible remediation costs"
22     means costs approved by the Illinois Environmental
23     Protection Agency ("Agency") under Section 58.14a of the
24     Environmental Protection Act that were paid in performing
25     environmental remediation at a site within a River Edge
26     Redevelopment Zone for which a No Further Remediation

 

 

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1     Letter was issued by the Agency and recorded under Section
2     58.10 of the Environmental Protection Act. The credit must
3     be claimed for the taxable year in which Agency approval of
4     the eligible remediation costs is granted. The credit is
5     not available to any taxpayer if the taxpayer or any
6     related party caused or contributed to, in any material
7     respect, a release of regulated substances on, in, or under
8     the site that was identified and addressed by the remedial
9     action pursuant to the Site Remediation Program of the
10     Environmental Protection Act. Determinations as to credit
11     availability for purposes of this Section shall be made
12     consistent with rules adopted by the Pollution Control
13     Board pursuant to the Illinois Administrative Procedure
14     Act for the administration and enforcement of Section 58.9
15     of the Environmental Protection Act. For purposes of this
16     Section, "taxpayer" includes a person whose tax attributes
17     the taxpayer has succeeded to under Section 381 of the
18     Internal Revenue Code and "related party" includes the
19     persons disallowed a deduction for losses by paragraphs
20     (b), (c), and (f)(1) of Section 267 of the Internal Revenue
21     Code by virtue of being a related taxpayer, as well as any
22     of its partners. The credit allowed against the tax imposed
23     by subsections (a) and (b) shall be equal to 25% of the
24     unreimbursed eligible remediation costs in excess of
25     $100,000 per site.
26         (ii) A credit allowed under this subsection that is

 

 

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1     unused in the year the credit is earned may be carried
2     forward to each of the 5 taxable years following the year
3     for which the credit is first earned until it is used. This
4     credit shall be applied first to the earliest year for
5     which there is a liability. If there is a credit under this
6     subsection from more than one tax year that is available to
7     offset a liability, the earliest credit arising under this
8     subsection shall be applied first. A credit allowed under
9     this subsection may be sold to a buyer as part of a sale of
10     all or part of the remediation site for which the credit
11     was granted. The purchaser of a remediation site and the
12     tax credit shall succeed to the unused credit and remaining
13     carry-forward period of the seller. To perfect the
14     transfer, the assignor shall record the transfer in the
15     chain of title for the site and provide written notice to
16     the Director of the Illinois Department of Revenue of the
17     assignor's intent to sell the remediation site and the
18     amount of the tax credit to be transferred as a portion of
19     the sale. In no event may a credit be transferred to any
20     taxpayer if the taxpayer or a related party would not be
21     eligible under the provisions of subsection (i).
22         (iii) For purposes of this Section, the term "site"
23     shall have the same meaning as under Section 58.2 of the
24     Environmental Protection Act.
25         (iv) This subsection is exempt from the provisions of
26     Section 250.

 

 

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1 (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09;
2 96-116, eff. 7-31-09; revised 8-20-09.)
 
3     Section 25. The Retailers' Occupation Tax Act is amended by
4 changing Sections 1d, 1e, 1f, and 5l as follows:
 
5     (35 ILCS 120/1d)  (from Ch. 120, par. 440d)
6     Sec. 1d. Subject to the provisions of Section 1f, all
7 tangible personal property to be used or consumed within an
8 enterprise zone established pursuant to the "Illinois
9 Enterprise Zone Act", as amended, or subject to the provisions
10 of Section 5.5 of the Illinois Enterprise Zone Act, or subject
11 to the provisions of Section 10 of the Green Energy Business
12 Act, all tangible personal property to be used or consumed by
13 any High Impact Business or Green Energy Business , in the
14 process of the manufacturing or assembly of tangible personal
15 property for wholesale or retail sale or lease or in the
16 process of graphic arts production if used or consumed at a
17 facility which is a Department of Commerce and Economic
18 Opportunity certified business and located in a county of more
19 than 4,000 persons and less than 45,000 persons is exempt from
20 the tax imposed by this Act. This exemption includes repair and
21 replacement parts for machinery and equipment used primarily in
22 the process of manufacturing or assembling tangible personal
23 property or in the process of graphic arts production if used
24 or consumed at a facility which is a Department of Commerce and

 

 

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1 Economic Opportunity certified business and located in a county
2 of more than 4,000 persons and less than 45,000 persons for
3 wholesale or retail sale, or lease, and equipment,
4 manufacturing or graphic arts fuels, material and supplies for
5 the maintenance, repair or operation of such manufacturing or
6 assembling or graphic arts machinery or equipment.
7 (Source: P.A. 94-793, eff. 5-19-06.)
 
8     (35 ILCS 120/1e)  (from Ch. 120, par. 440e)
9     Sec. 1e. Subject to the provisions of Section 1f, or
10 subject to the provisions of Section 5.5 of the Illinois
11 Enterprise Zone Act, or subject to the provisions of Section 10
12 of the Green Energy Business Act, all tangible personal
13 property to be used or consumed in the operation of pollution
14 control facilities, as defined in Section 1a of this Act,
15 within an enterprise zone established pursuant to the "Illinois
16 Enterprise Zone Act", as amended, shall be exempt from the tax
17 imposed by this Act.
18 (Source: P.A. 85-1182.)
 
19     (35 ILCS 120/1f)  (from Ch. 120, par. 440f)
20     Sec. 1f. Except for High Impact Businesses or Green Energy
21 Businesses, the exemption stated in Sections 1d and 1e of this
22 Act shall only apply to business enterprises which:
23         (1) either (i) make investments which cause the
24     creation of a minimum of 200 full-time equivalent jobs in

 

 

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1     Illinois or (ii) make investments which cause the retention
2     of a minimum of 2000 full-time jobs in Illinois or (iii)
3     make investments of a minimum of $40,000,000 and retain at
4     least 90% of the jobs in place on the date on which the
5     exemption is granted and for the duration of the exemption;
6     and
7         (2) are located in an Enterprise Zone established
8     pursuant to the Illinois Enterprise Zone Act; and
9         (3) are certified by the Department of Commerce and
10     Economic Opportunity as complying with the requirements
11     specified in clauses (1), (2) and (3).
12     Any business enterprise seeking to avail itself of the
13 exemptions stated in Sections 1d or 1e, or both, shall make
14 application to the Department of Commerce and Economic
15 Opportunity in such form and providing such information as may
16 be prescribed by the Department of Commerce and Economic
17 Opportunity. However, no business enterprise shall be
18 required, as a condition for certification under clause (4) of
19 this Section, to attest that its decision to invest under
20 clause (1) of this Section and to locate under clause (2) of
21 this Section is predicated upon the availability of the
22 exemptions authorized by Sections 1d or 1e.
23     The Department of Commerce and Economic Opportunity shall
24 determine whether the business enterprise meets the criteria
25 prescribed in this Section. If the Department of Commerce and
26 Economic Opportunity determines that such business enterprise

 

 

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1 meets the criteria, it shall issue a certificate of eligibility
2 for exemption to the business enterprise in such form as is
3 prescribed by the Department of Revenue. The Department of
4 Commerce and Economic Opportunity shall act upon such
5 certification requests within 60 days after receipt of the
6 application, and shall file with the Department of Revenue a
7 copy of each certificate of eligibility for exemption.
8     The Department of Commerce and Economic Opportunity shall
9 have the power to promulgate rules and regulations to carry out
10 the provisions of this Section including the power to define
11 the amounts and types of eligible investments not specified in
12 this Section which business enterprises must make in order to
13 receive the exemptions stated in Sections 1d and 1e of this
14 Act; and to require that any business enterprise that is
15 granted a tax exemption repay the exempted tax if the business
16 enterprise fails to comply with the terms and conditions of the
17 certification.
18     Such certificate of eligibility for exemption shall be
19 presented by the business enterprise to its supplier when
20 making the initial purchase of tangible personal property for
21 which an exemption is granted by Section 1d or Section 1e, or
22 both, together with a certification by the business enterprise
23 that such tangible personal property is exempt from taxation
24 under Section 1d or Section 1e and by indicating the exempt
25 status of each subsequent purchase on the face of the purchase
26 order.

 

 

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1     The Department of Commerce and Economic Opportunity shall
2 determine the period during which such exemption from the taxes
3 imposed under this Act is in effect which shall not exceed 20
4 years.
5 (Source: P.A. 94-793, eff. 5-19-06.)
 
6     (35 ILCS 120/5l)  (from Ch. 120, par. 444l)
7     Sec. 5l. Beginning January 1, 1995, each retailer who makes
8 a sale of building materials that will be incorporated into a
9 High Impact Business location as designated by the Department
10 of Commerce and Economic Opportunity under Section 5.5 of the
11 Illinois Enterprise Zone Act or Section 10 of the Green Energy
12 Business Act may deduct receipts from such sales when
13 calculating only the 6.25% State rate of tax imposed by this
14 Act. Beginning on the effective date of this amendatory Act of
15 1995, a retailer may also deduct receipts from such sales when
16 calculating any applicable local taxes. However, until the
17 effective date of this amendatory Act of 1995, a retailer may
18 file claims for credit or refund to recover the amount of any
19 applicable local tax paid on such sales. No retailer who is
20 eligible for the deduction or credit under Section 5k of this
21 Act for making a sale of building materials to be incorporated
22 into real estate in an enterprise zone by rehabilitation,
23 remodeling or new construction shall be eligible for the
24 deduction or credit authorized under this Section.
25 (Source: P.A. 94-793, eff. 5-19-06.)
 

 

 

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1     Section 30. The Public Utilities Act is amended by changing
2 Sections 9-222 and 9-222.1A as follows:
 
3     (220 ILCS 5/9-222)  (from Ch. 111 2/3, par. 9-222)
4     Sec. 9-222. Whenever a tax is imposed upon a public utility
5 engaged in the business of distributing, supplying,
6 furnishing, or selling gas for use or consumption pursuant to
7 Section 2 of the Gas Revenue Tax Act, or whenever a tax is
8 required to be collected by a delivering supplier pursuant to
9 Section 2-7 of the Electricity Excise Tax Act, or whenever a
10 tax is imposed upon a public utility pursuant to Section 2-202
11 of this Act, such utility may charge its customers, other than
12 customers who are Green Energy Businesses under Section 10 of
13 the Green Energy Business Act, High Impact Businesses high
14 impact businesses under Section 5.5 of the Illinois Enterprise
15 Zone Act, or certified business enterprises under Section
16 9-222.1 of this Act, to the extent of such exemption and during
17 the period in which such exemption is in effect, in addition to
18 any rate authorized by this Act, an additional charge equal to
19 the total amount of such taxes. The exemption of this Section
20 relating to High Impact Businesses high impact businesses shall
21 be subject to the provisions of subsections (a), (b), and (b-5)
22 of Section 5.5 of the Illinois Enterprise Zone Act. The
23 exemption of this Section relating to Green Energy Businesses
24 shall be subject to the provisions of subsection (a) of Section

 

 

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1 10 of the Green Energy Business Act. This requirement shall not
2 apply to taxes on invested capital imposed pursuant to the
3 Messages Tax Act, the Gas Revenue Tax Act and the Public
4 Utilities Revenue Act. Such utility shall file with the
5 Commission a supplemental schedule which shall specify such
6 additional charge and which shall become effective upon filing
7 without further notice. Such additional charge shall be shown
8 separately on the utility bill to each customer. The Commission
9 shall have the power to investigate whether or not such
10 supplemental schedule correctly specifies such additional
11 charge, but shall have no power to suspend such supplemental
12 schedule. If the Commission finds, after a hearing, that such
13 supplemental schedule does not correctly specify such
14 additional charge, it shall by order require a refund to the
15 appropriate customers of the excess, if any, with interest, in
16 such manner as it shall deem just and reasonable, and in and by
17 such order shall require the utility to file an amended
18 supplemental schedule corresponding to the finding and order of
19 the Commission. Except with respect to taxes imposed on
20 invested capital, such tax liabilities shall be recovered from
21 customers solely by means of the additional charges authorized
22 by this Section.
23 (Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
 
24     (220 ILCS 5/9-222.1A)
25     Sec. 9-222.1A. High impact business or green energy

 

 

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1 business. Beginning on August 1, 1998 and thereafter, a
2 business enterprise that is certified as a High Impact Business
3 or a Green Energy Business by the Department of Commerce and
4 Economic Opportunity (formerly Department of Commerce and
5 Community Affairs) is exempt from the tax imposed by Section
6 2-4 of the Electricity Excise Tax Law, if the High Impact
7 Business or Green Energy Business is registered to self-assess
8 that tax, and is exempt from any additional charges added to
9 the business enterprise's utility bills as a pass-on of State
10 utility taxes under Section 9-222 of this Act, to the extent
11 the tax or charges are exempted by the percentage specified by
12 the Department of Commerce and Economic Opportunity for State
13 utility taxes, provided the business enterprise meets the
14 following criteria:
15         (1) (A) it intends either (i) to make a minimum
16         eligible investment of $12,000,000 that will be placed
17         in service in qualified property in Illinois and is
18         intended to create at least 500 full-time equivalent
19         jobs at a designated location in Illinois; or (ii) to
20         make a minimum eligible investment of $30,000,000 that
21         will be placed in service in qualified property in
22         Illinois and is intended to retain at least 1,500
23         full-time equivalent jobs at a designated location in
24         Illinois; or
25             (B) it meets the criteria of subdivision
26         (a)(3)(B), (a)(3)(C), or (a)(3)(D) of Section 5.5 of

 

 

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1         the Illinois Enterprise Zone Act, or of subsection (a)
2         of Section 10 of the Green Energy Business Act;
3         (2) it is designated as a High Impact Business or Green
4     Energy Business by the Department of Commerce and Economic
5     Opportunity; and
6         (3) it is certified by the Department of Commerce and
7     Economic Opportunity as complying with the requirements
8     specified in clauses (1) and (2) of this Section.
9     The Department of Commerce and Economic Opportunity shall
10 determine the period during which the exemption from the
11 Electricity Excise Tax Law and the charges imposed under
12 Section 9-222 are in effect, which shall not exceed 20 years
13 from the date of initial certification, and shall specify the
14 percentage of the exemption from those taxes or additional
15 charges.
16     The Department of Commerce and Economic Opportunity is
17 authorized to promulgate rules and regulations to carry out the
18 provisions of this Section, including procedures for complying
19 with the requirements specified in clauses (1) and (2) of this
20 Section and procedures for applying for the exemptions
21 authorized under this Section; to define the amounts and types
22 of eligible investments that business enterprises must make in
23 order to receive State utility tax exemptions or exemptions
24 from the additional charges imposed under Section 9-222 and
25 this Section; to approve such utility tax exemptions for
26 business enterprises whose investments are not yet placed in

 

 

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1 service; and to require that business enterprises granted tax
2 exemptions or exemptions from additional charges under Section
3 9-222 repay the exempted amount if the business enterprise
4 fails to comply with the terms and conditions of the
5 certification.
6     Upon certification of the business enterprises by the
7 Department of Commerce and Economic Opportunity, the
8 Department of Commerce and Economic Opportunity shall notify
9 the Department of Revenue of the certification. The Department
10 of Revenue shall notify the public utilities of the exemption
11 status of business enterprises from the tax or pass-on charges
12 of State utility taxes. The exemption status shall take effect
13 within 3 months after certification of the business enterprise.
14 (Source: P.A. 94-793, eff. 5-19-06.)
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.