97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3239

 

Introduced 2/24/2011, by Rep. Chad Hays

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 120/1f  from Ch. 120, par. 440f
220 ILCS 5/9-222.1  from Ch. 111 2/3, par. 9-222.1

    Amends the Retailers' Occupation Tax Act. Provides that the exemption for property used in an enterprise zone applies to businesses that make investments of at least $20,000,000 and cause the creation of a minimum of 40 (instead of 200) full-time jobs in Illinois or make investments that cause the retention of a minimum of 500 (instead of 2,000) full-time jobs in Illinois. Amends the Public Utilities Act. Provides that the exemption for businesses located in an enterprise zone applies to businesses that (i) make investments of at least $20,000,000 and cause the creation of a minimum of 40 (instead of 200) full-time equivalent jobs in Illinois, (ii) make investments of at least $175,000,000 which cause the creation of a minimum of 30 (instead of 150) full-time equivalent jobs in Illinois, or (iii) make investments of at least $100,000,000 which cause the retention of a minimum of 200 (instead of 1,000) full-time jobs in Illinois.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Retailers' Occupation Tax Act is amended by
5changing Section 1f as follows:
 
6    (35 ILCS 120/1f)  (from Ch. 120, par. 440f)
7    Sec. 1f. Except for High Impact Businesses, the exemption
8stated in Sections 1d and 1e of this Act shall only apply to
9business enterprises which:
10        (1) either (i) make investments of at least $20,000,000
11    which cause the creation of a minimum of 40 200 full-time
12    equivalent jobs in Illinois or (ii) make investments which
13    cause the retention of a minimum of 500 2000 full-time jobs
14    in Illinois or (iii) make investments of a minimum of
15    $40,000,000 and retain at least 90% of the jobs in place on
16    the date on which the exemption is granted and for the
17    duration of the exemption; and
18        (2) are located in an Enterprise Zone established
19    pursuant to the Illinois Enterprise Zone Act; and
20        (3) are certified by the Department of Commerce and
21    Economic Opportunity as complying with the requirements
22    specified in clauses (1), (2) and (3).
23    Any business enterprise seeking to avail itself of the

 

 

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1exemptions stated in Sections 1d or 1e, or both, shall make
2application to the Department of Commerce and Economic
3Opportunity in such form and providing such information as may
4be prescribed by the Department of Commerce and Economic
5Opportunity. However, no business enterprise shall be
6required, as a condition for certification under clause (4) of
7this Section, to attest that its decision to invest under
8clause (1) of this Section and to locate under clause (2) of
9this Section is predicated upon the availability of the
10exemptions authorized by Sections 1d or 1e.
11    The Department of Commerce and Economic Opportunity shall
12determine whether the business enterprise meets the criteria
13prescribed in this Section. If the Department of Commerce and
14Economic Opportunity determines that such business enterprise
15meets the criteria, it shall issue a certificate of eligibility
16for exemption to the business enterprise in such form as is
17prescribed by the Department of Revenue. The Department of
18Commerce and Economic Opportunity shall act upon such
19certification requests within 60 days after receipt of the
20application, and shall file with the Department of Revenue a
21copy of each certificate of eligibility for exemption.
22    The Department of Commerce and Economic Opportunity shall
23have the power to promulgate rules and regulations to carry out
24the provisions of this Section including the power to define
25the amounts and types of eligible investments not specified in
26this Section which business enterprises must make in order to

 

 

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1receive the exemptions stated in Sections 1d and 1e of this
2Act; and to require that any business enterprise that is
3granted a tax exemption repay the exempted tax if the business
4enterprise fails to comply with the terms and conditions of the
5certification.
6    Such certificate of eligibility for exemption shall be
7presented by the business enterprise to its supplier when
8making the initial purchase of tangible personal property for
9which an exemption is granted by Section 1d or Section 1e, or
10both, together with a certification by the business enterprise
11that such tangible personal property is exempt from taxation
12under Section 1d or Section 1e and by indicating the exempt
13status of each subsequent purchase on the face of the purchase
14order.
15    The Department of Commerce and Economic Opportunity shall
16determine the period during which such exemption from the taxes
17imposed under this Act is in effect which shall not exceed 20
18years.
19(Source: P.A. 94-793, eff. 5-19-06.)
 
20    Section 10. The Public Utilities Act is amended by changing
21Section 9-222.1 as follows:
 
22    (220 ILCS 5/9-222.1)  (from Ch. 111 2/3, par. 9-222.1)
23    Sec. 9-222.1. A business enterprise which is located within
24an area designated by a county or municipality as an enterprise

 

 

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1zone pursuant to the Illinois Enterprise Zone Act or located in
2a federally designated Foreign Trade Zone or Sub-Zone shall be
3exempt from the additional charges added to the business
4enterprise's utility bills as a pass-on of municipal and State
5utility taxes under Sections 9-221 and 9-222 of this Act, to
6the extent such charges are exempted by ordinance adopted in
7accordance with paragraph (e) of Section 8-11-2 of the Illinois
8Municipal Code in the case of municipal utility taxes, and to
9the extent such charges are exempted by the percentage
10specified by the Department of Commerce and Economic
11Opportunity in the case of State utility taxes, provided such
12business enterprise meets the following criteria:
13        (1) it (i) makes investments of at least $20,000,000
14    which cause the creation of a minimum of 40 200 full-time
15    equivalent jobs in Illinois; (ii) makes investments of at
16    least $175,000,000 which cause the creation of a minimum of
17    30 150 full-time equivalent jobs in Illinois; (iii) makes
18    investments that cause the retention of a minimum of 300
19    full-time equivalent jobs in the manufacturing sector, as
20    defined by the North American Industry Classification
21    System, in an area in Illinois in which the unemployment
22    rate is above 9% and makes an application to the Department
23    within 3 months after the effective date of this amendatory
24    Act of the 96th General Assembly and certifies relocation
25    of the 300 full-time equivalent jobs within 36 months after
26    the application; (iv) makes investments of at least

 

 

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1    $100,000,000 which cause the retention of a minimum of 200
2    1,000 full-time jobs in Illinois; or (v) makes an
3    application to the Department within 2 months after the
4    effective date of this amendatory Act of the 96th General
5    Assembly and makes investments that cause the retention of
6    a minimum of 500 full-time equivalent jobs in 2009 and
7    2010, 675 full-time jobs in Illinois in 2011, 850 full-time
8    jobs in 2012, and 1,000 full-time jobs in 2013, in the
9    manufacturing sector as defined by the North American
10    Industry Classification System; and
11        (2) it is either (i) located in an Enterprise Zone
12    established pursuant to the Illinois Enterprise Zone Act or
13    (ii) located in a federally designated Foreign Trade Zone
14    or Sub-Zone and is designated a High Impact Business by the
15    Department of Commerce and Economic Opportunity; and
16        (3) it is certified by the Department of Commerce and
17    Economic Opportunity as complying with the requirements
18    specified in clauses (1) and (2) of this Section.
19    The Department of Commerce and Economic Opportunity shall
20determine the period during which such exemption from the
21charges imposed under Section 9-222 is in effect which shall
22not exceed 30 years or the certified term of the enterprise
23zone, whichever period is shorter, except that the exemption
24period for a business enterprise qualifying under item (iii) of
25clause (1) of this Section shall not exceed 30 years.
26    The Department of Commerce and Economic Opportunity shall

 

 

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1have the power to promulgate rules and regulations to carry out
2the provisions of this Section including procedures for
3complying with the requirements specified in clauses (1) and
4(2) of this Section and procedures for applying for the
5exemptions authorized under this Section; to define the amounts
6and types of eligible investments which business enterprises
7must make in order to receive State utility tax exemptions
8pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
9such utility tax exemptions for business enterprises whose
10investments are not yet placed in service; and to require that
11business enterprises granted tax exemptions repay the exempted
12tax should the business enterprise fail to comply with the
13terms and conditions of the certification. However, no business
14enterprise shall be required, as a condition for certification
15under clause (3) of this Section, to attest that its decision
16to invest under clause (1) of this Section and to locate under
17clause (2) of this Section is predicated upon the availability
18of the exemptions authorized by this Section.
19    A business enterprise shall be exempt, in whole or in part,
20from the pass-on charges of municipal utility taxes imposed
21under Section 9-221, only if it meets the criteria specified in
22clauses (1) through (3) of this Section and the municipality
23has adopted an ordinance authorizing the exemption under
24paragraph (e) of Section 8-11-2 of the Illinois Municipal Code.
25Upon certification of the business enterprises by the
26Department of Commerce and Economic Opportunity, the

 

 

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1Department of Commerce and Economic Opportunity shall notify
2the Department of Revenue of such certification. The Department
3of Revenue shall notify the public utilities of the exemption
4status of business enterprises from the pass-on charges of
5State and municipal utility taxes. Such exemption status shall
6be effective within 3 months after certification of the
7business enterprise.
8(Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)