96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB6098

 

Introduced 2/11/2010, by Rep. Linda Chapa LaVia

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 115/10-10
65 ILCS 115/10-10.1 new

    Amends the River Edge Redevelopment Zone Act. Provides that a public utility may receive a deduction against income subject to State taxes for (i) a contribution to a designated zone organization for costs of installing, replacing, modifying, removing, improving, or maintaining any substation facility located within the River Edge Redevelopment Zone or (ii) the costs incurred by the public utility of installing, replacing, modifying, improving, or maintaining any substation facility located within the River Edge Redevelopment Zone if the project for which the costs are incurred has been specifically approved by the designating municipality and by the Department of Commerce and Economic Opportunity. Contains other provisions. Effective immediately.


LRB096 20887 RLJ 36672 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6098 LRB096 20887 RLJ 36672 b

1     AN ACT concerning local government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The River Edge Redevelopment Zone Act is amended
5 by changing Section 10-10 and by adding Section 10-10.1 as
6 follows:
 
7     (65 ILCS 115/10-10)
8     Sec. 10-10. Income tax deduction.
9     (a) A business entity may receive a deduction against
10 income subject to State taxes for a contribution to a
11 designated zone organization if the project for which the
12 contribution is made has been specifically approved by the
13 designating municipality and by the Department.
14     (a-5) A public utility may receive a deduction against
15 income subject to State taxes for (i) a contribution to a
16 designated zone organization for costs of installing,
17 replacing, modifying, removing, improving, or maintaining any
18 substation facility located within the River Edge
19 Redevelopment Zone or (ii) the costs incurred by the public
20 utility of installing, replacing, modifying, improving, or
21 maintaining any substation facility located within the River
22 Edge Redevelopment Zone if the project for which the costs are
23 incurred has been specifically approved by the designating

 

 

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1 municipality and by the Department of Commerce and Economic
2 Opportunity.
3     (b) Any designated zone organization seeking to have a
4 project approved for contribution must submit an application to
5 the Department describing the nature and benefit of the project
6 and its potential contributors. The application must address
7 how the following criteria will be met:
8         (1) The project must contribute to the self-help
9     efforts of the residents of the area involved.
10         (2) The project must involve the residents of the area
11     in planning and implementing the project.
12         (3) The project must lack sufficient resources.
13         (4) The designated zone organization must be fiscally
14     responsible for the project.
15     (c) The project must enhance the River Edge Redevelopment
16 Zone in one of the following ways:
17         (1) by creating permanent jobs;
18         (2) by physically improving the housing stock;
19         (3) by stimulating neighborhood business activity; or
20         (4) by preventing crime.
21     (d) If the designated zone organization demonstrates its
22 ability to meet the criteria in subsection (b), and the project
23 will enhance the neighborhood in one of the ways listed in
24 subsection (c), the Department shall approve the
25 organization's proposed project and specify the amount of
26 contributions it is eligible to receive for such project.

 

 

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1 Comments from State elected officials and municipal officials
2 of the units of local government in which all or part of the
3 river edge redevelopment zone is located, or in which the
4 project is proposed to be located, shall be solicited by the
5 Department in making such decision.
6     (e) Within 45 days of the receipt of an application, the
7 Department shall give notice to the applicant as to whether the
8 application has been approved or disapproved. If the Department
9 disapproves the application, it shall specify the reasons for
10 this decision and allow 60 days for the applicant to amend and
11 resubmit its application. The Department shall provide
12 assistance upon request to applicants. Resubmitted
13 applications shall receive the Department's approval or
14 disapproval within 30 days of resubmission. Those resubmitted
15 applications satisfying initial Department objectives shall be
16 approved unless reasonable circumstances warrant disapproval.
17     (f) On an annual basis, the designated zone organization
18 shall furnish a statement to the Department on the programmatic
19 and financial status of any approved project and an audited
20 financial statement of the project.
21     (g) For any project which is approved and for which there
22 is a specified amount of contributions which the designated
23 zone organization may receive as provided in subsection (d) of
24 this Section, the designated zone organization shall provide to
25 the Department any information necessary to determine the
26 eligibility of a contribution to the project for a deduction

 

 

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1 pursuant to subsection (b)(2)(N) of Section 203 of the Illinois
2 Income Tax Act. The Department shall certify to the Department
3 of Revenue the taxpayers eligible for and the amounts of
4 contributions which those taxpayers may claim as a deduction
5 pursuant to subsection (b)(2)(N) of Section 203 of the Illinois
6 Income Tax Act. The total of all actual contributions approved
7 by the Department for deductions pursuant to subsection
8 (b)(2)(N) of Section 203 of the Illinois Income Tax Act shall
9 not exceed $15,400,000 in any one calendar year.
10 (Source: P.A. 94-1021, eff. 7-12-06.)
 
11     (65 ILCS 115/10-10.1 new)
12     Sec. 10-10.1. Utility facilities.
13     (a) It remains the policy of the State that the cost of
14 supplying public utility services is allocated to those who
15 cause the costs to be incurred. This policy requires an entity
16 engaging in economic redevelopment to pay all costs to relocate
17 utility facilities on property that the utility owns in areas
18 that have been designated for economic redevelopment. It is,
19 however, in the public interest that costs for the River Edge
20 Redevelopment Zone impacting utility property that are covered
21 by subsection (b) not be allocated solely to the entity
22 engaging in economic redevelopment, as this economic
23 redevelopment benefits the utility service territory as a whole
24 and not just the particular area where the redevelopment
25 occurs.

 

 

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1     (b) This Section applies to the costs of installing,
2 removing, replacing, relocating, modifying, or maintaining
3 utility facilities in the River Edge Redevelopment Zone if the
4 public utility met one or more of the following requirements:
5         (1) The public utility's facilities are located within
6     an area designated for economic redevelopment by a unit of
7     local government;
8         (2) The public utility's facilities are located within
9     an area subject to tax increment financing;
10         (3) The public utility's facilities are located within
11     an area that qualifies as a transit-oriented development;
12         (4) The public utility's facilities are located within
13     an area that can be redeveloped in a manner that combats
14     urban sprawl; or
15         (5) The costs connected with the public utility's
16     facilities exceed funds available to the project through
17     tax increment financing that could be otherwise used for
18     these purposes.
19     (c) The Illinois Commerce Commission shall allow a utility
20 providing services under this Section to fully recover all
21 costs of environmental remediation, installing, removing,
22 replacing, relocating, modifying, or maintaining utility
23 facilities in the River Edge Redevelopment Zone from all
24 customers in its service territory. The public utility may
25 defer any and all operation and maintenance expenditures
26 connected with the River Edge Redevelopment Zone, and amortize

 

 

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1 them in a rate proceeding following the expenditure.
 
2     Section 99. Effective date. This Act takes effect upon
3 becoming law.