99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3456

 

Introduced , by Rep. Charles E. Meier

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 105/3-9 new
35 ILCS 110/3-9 new
35 ILCS 115/3-9 new
35 ILCS 120/1t new

    Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2015 and through June 30, 2025, certain tangible personal property to be used in the construction or operation of a data center is exempt from taxation under the Acts. Provides that the data center must sign an agreement with the Department of Commerce and Economic Opportunity containing the following elements: (1) the data center, including its colocation tenants, must create and maintain at least 30 full-time equivalent jobs; (2) those jobs must pay at least 125% of the median wage paid to full-time employees in the county where the data center is located, as determined by the U.S. Bureau of Labor Statistics; and (3) at least $25,000,000 in capital must be invested in the data center. Effective July 1, 2015.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3456LRB099 05584 HLH 25621 b

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 Use Tax Act is amended by adding Section 3-9
5as follows:
 
6    (35 ILCS 105/3-9 new)
7    Sec. 3-9. Data center exemption.
8    (a) Beginning on July 1, 2015 and through June 30, 2025,
9qualified tangible personal property to be used in the
10construction or operation of a data center is exempt from
11taxation under this Act if: (i) the data center signs an
12agreement with the Department of Commerce and Economic
13Opportunity, and (ii) the agreement contains the following
14elements:
15        (1) the data center, including its qualified
16    colocation tenants, must create and maintain at least 30
17    full-time equivalent jobs;
18        (2) those jobs must pay at least 125% of the median
19    wage paid to full-time employees in the county where the
20    data center is located, as determined by the U.S. Bureau of
21    Labor Statistics; and
22        (3) at least $25,000,000 in capital must be invested in
23    the data center.

 

 

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1    (b) As used in this Section:
2        "Data center" means a building rehabilitated or
3    constructed to house a group of networked server computers
4    in one physical location in order to centralize the
5    storage, management, and dissemination of data and
6    information pertaining to a particular business, taxonomy,
7    or body of knowledge.
8        "Full-time equivalent job" means a job in which the
9    employee works for the taxpayer or for a corporation under
10    contract with the taxpayer at a rate of at least 35 hours
11    per week. A taxpayer who employs labor or services at a
12    specific site or facility under contract with another may
13    declare one full-time equivalent job for every 1,820 man
14    hours worked per year under that contract. Vacations, paid
15    holidays, and sick time are included in this computation.
16    Overtime is not considered a part of regular hours.
17        "Qualified colocation tenant" means an entity that
18    contracts with the owner or operator of a computer data
19    center described in subsection (a) of this Section to use
20    or occupy all or part of the computer data center for at
21    least 500 kilowatts per month for a period of 2 or more
22    years.
23        "Qualified tangible personal property" means an
24    electrical system; a cooling system; an emergency
25    generator; hardware or a distributed mainframe computer or
26    server; a data storage device; network connectivity

 

 

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1    equipment; a rack, cabinet, and raised floor system; a
2    peripheral component or system; software; a mechanical,
3    electrical, or plumbing system necessary to operate the
4    foregoing property; any other item of equipment or system
5    necessary to operate any of the foregoing, including a
6    fixture; and a component part of any of the foregoing.
7    (c) This Section is repealed on July 1, 2025.
 
8    Section 10. The Service Use Tax Act is amended by adding
9Section 3-9 as follows:
 
10    (35 ILCS 110/3-9 new)
11    Sec. 3-9. Data center exemption.
12    (a) Beginning on July 1, 2015 and through June 30, 2025,
13qualified tangible personal property to be used in the
14construction or operation of a data center is exempt from
15taxation under this Act if: (i) the data center signs an
16agreement with the Department of Commerce and Economic
17Opportunity, and (ii) the agreement contains the following
18elements:
19        (1) the data center, including its qualified
20    colocation tenants, must create and maintain at least 30
21    full-time equivalent jobs;
22        (2) those jobs must pay at least 125% of the median
23    wage paid to full-time employees in the county where the
24    data center is located, as determined by the U.S. Bureau of

 

 

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1    Labor Statistics; and
2        (3) at least $25,000,000 in capital must be invested in
3    the data center.
4    (b) As used in this Section:
5        "Data center" means a building rehabilitated or
6    constructed to house a group of networked server computers
7    in one physical location in order to centralize the
8    storage, management, and dissemination of data and
9    information pertaining to a particular business, taxonomy,
10    or body of knowledge.
11        "Full-time equivalent job" means a job in which the
12    employee works for the taxpayer or for a corporation under
13    contract with the taxpayer at a rate of at least 35 hours
14    per week. A taxpayer who employs labor or services at a
15    specific site or facility under contract with another may
16    declare one full-time equivalent job for every 1,820 man
17    hours worked per year under that contract. Vacations, paid
18    holidays, and sick time are included in this computation.
19    Overtime is not considered a part of regular hours.
20        "Qualified colocation tenant" means an entity that
21    contracts with the owner or operator of a computer data
22    center described in subsection (a) of this Section to use
23    or occupy all or part of the computer data center for at
24    least 500 kilowatts per month for a period of 2 or more
25    years.
26        "Qualified tangible personal property" means an

 

 

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1    electrical system; a cooling system; an emergency
2    generator; hardware or a distributed mainframe computer or
3    server; a data storage device; network connectivity
4    equipment; a rack, cabinet, and raised floor system; a
5    peripheral component or system; software; a mechanical,
6    electrical, or plumbing system necessary to operate the
7    foregoing property; any other item of equipment or system
8    necessary to operate any of the foregoing, including a
9    fixture; and a component part of any of the foregoing.
10    (c) This Section is repealed on July 1, 2025.
 
11    Section 15. The Service Occupation Tax Act is amended by
12adding Section 3-9 as follows:
 
13    (35 ILCS 115/3-9 new)
14    Sec. 3-9. Data center exemption.
15    (a) Beginning on July 1, 2015 and through June 30, 2025,
16qualified tangible personal property to be used in the
17construction or operation of a data center is exempt from
18taxation under this Act if: (i) the data center signs an
19agreement with the Department of Commerce and Economic
20Opportunity, and (ii) the agreement contains the following
21elements:
22        (1) the data center, including its qualified
23    colocation tenants, must create and maintain at least 30
24    full-time equivalent jobs;

 

 

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1        (2) those jobs must pay at least 125% of the median
2    wage paid to full-time employees in the county where the
3    data center is located, as determined by the U.S. Bureau of
4    Labor Statistics; and
5        (3) at least $25,000,000 in capital must be invested in
6    the data center.
7    (b) As used in this Section:
8        "Data center" means a building rehabilitated or
9    constructed to house a group of networked server computers
10    in one physical location in order to centralize the
11    storage, management, and dissemination of data and
12    information pertaining to a particular business, taxonomy,
13    or body of knowledge.
14        "Full-time equivalent job" means a job in which the
15    employee works for the taxpayer or for a corporation under
16    contract with the taxpayer at a rate of at least 35 hours
17    per week. A taxpayer who employs labor or services at a
18    specific site or facility under contract with another may
19    declare one full-time equivalent job for every 1,820 man
20    hours worked per year under that contract. Vacations, paid
21    holidays, and sick time are included in this computation.
22    Overtime is not considered a part of regular hours.
23        "Qualified colocation tenant" means an entity that
24    contracts with the owner or operator of a computer data
25    center described in subsection (a) of this Section to use
26    or occupy all or part of the computer data center for at

 

 

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1    least 500 kilowatts per month for a period of 2 or more
2    years.
3        "Qualified tangible personal property" means an
4    electrical system; a cooling system; an emergency
5    generator; hardware or a distributed mainframe computer or
6    server; a data storage device; network connectivity
7    equipment; a rack, cabinet, and raised floor system; a
8    peripheral component or system; software; a mechanical,
9    electrical, or plumbing system necessary to operate the
10    foregoing property; any other item of equipment or system
11    necessary to operate any of the foregoing, including a
12    fixture; and a component part of any of the foregoing.
13    (c) This Section is repealed on July 1, 2025.
 
14    Section 20. The Retailers' Occupation Tax Act is amended by
15adding Section 1t as follows:
 
16    (35 ILCS 120/1t new)
17    Sec. 1t. Data center exemption.
18    (a) Beginning on July 1, 2015 and through June 30, 2025,
19qualified tangible personal property to be used in the
20construction or operation of a data center is exempt from
21taxation under this Act if: (i) the data center signs an
22agreement with the Department of Commerce and Economic
23Opportunity, and (ii) the agreement contains the following
24elements:

 

 

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1        (1) the data center, including its qualified
2    colocation tenants, must create and maintain at least 30
3    full-time equivalent jobs;
4        (2) those jobs must pay at least 125% of the median
5    wage paid to full-time employees in the county where the
6    data center is located, as determined by the U.S. Bureau of
7    Labor Statistics; and
8        (3) at least $25,000,000 in capital must be invested in
9    the data center.
10    (b) As used in this Section:
11        "Data center" means a building rehabilitated or
12    constructed to house a group of networked server computers
13    in one physical location in order to centralize the
14    storage, management, and dissemination of data and
15    information pertaining to a particular business, taxonomy,
16    or body of knowledge.
17        "Full-time equivalent job" means a job in which the
18    employee works for the taxpayer or for a corporation under
19    contract with the taxpayer at a rate of at least 35 hours
20    per week. A taxpayer who employs labor or services at a
21    specific site or facility under contract with another may
22    declare one full-time equivalent job for every 1,820 man
23    hours worked per year under that contract. Vacations, paid
24    holidays, and sick time are included in this computation.
25    Overtime is not considered a part of regular hours.
26        "Qualified colocation tenant" means an entity that

 

 

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1    contracts with the owner or operator of a computer data
2    center described in subsection (a) of this Section to use
3    or occupy all or part of the computer data center for at
4    least 500 kilowatts per month for a period of 2 or more
5    years.
6        "Qualified tangible personal property" means an
7    electrical system; a cooling system; an emergency
8    generator; hardware or a distributed mainframe computer or
9    server; a data storage device; network connectivity
10    equipment; a rack, cabinet, and raised floor system; a
11    peripheral component or system; software; a mechanical,
12    electrical, or plumbing system necessary to operate the
13    foregoing property; any other item of equipment or system
14    necessary to operate any of the foregoing, including a
15    fixture; and a component part of any of the foregoing.
16    (c) This Section is repealed on July 1, 2025.
 
17    Section 99. Effective date. This Act takes effect July 1,
182015.