Illinois General Assembly - Full Text of HB3174
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Full Text of HB3174  102nd General Assembly

HB3174enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB3174 EnrolledLRB102 14914 HLH 20269 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
 
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth, and expansion of
10the private sector through large scale investment and
11development projects, the Department is authorized to receive
12and approve applications for the designation of "High Impact
13Businesses" in Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of
17    designation, in an enterprise zone designated pursuant to
18    this Act;
19        (3) the business intends to do one or more of the
20    following:
21            (A) the business intends to make a minimum
22        investment of $12,000,000 which will be placed in
23        service in qualified property and intends to create

 

 

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1        500 full-time equivalent jobs at a designated location
2        in Illinois or intends to make a minimum investment of
3        $30,000,000 which will be placed in service in
4        qualified property and intends to retain 1,500
5        full-time retained jobs at a designated location in
6        Illinois. The business must certify in writing that
7        the investments would not be placed in service in
8        qualified property and the job creation or job
9        retention would not occur without the tax credits and
10        exemptions set forth in subsection (b) of this
11        Section. The terms "placed in service" and "qualified
12        property" have the same meanings as described in
13        subsection (h) of Section 201 of the Illinois Income
14        Tax Act; or
15            (B) the business intends to establish a new
16        electric generating facility at a designated location
17        in Illinois. "New electric generating facility", for
18        purposes of this Section, means a newly-constructed
19        electric generation plant or a newly-constructed
20        generation capacity expansion at an existing electric
21        generation plant, including the transmission lines and
22        associated equipment that transfers electricity from
23        points of supply to points of delivery, and for which
24        such new foundation construction commenced not sooner
25        than July 1, 2001. Such facility shall be designed to
26        provide baseload electric generation and shall operate

 

 

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1        on a continuous basis throughout the year; and (i)
2        shall have an aggregate rated generating capacity of
3        at least 1,000 megawatts for all new units at one site
4        if it uses natural gas as its primary fuel and
5        foundation construction of the facility is commenced
6        on or before December 31, 2004, or shall have an
7        aggregate rated generating capacity of at least 400
8        megawatts for all new units at one site if it uses coal
9        or gases derived from coal as its primary fuel and
10        shall support the creation of at least 150 new
11        Illinois coal mining jobs, or (ii) shall be funded
12        through a federal Department of Energy grant before
13        December 31, 2010 and shall support the creation of
14        Illinois coal-mining jobs, or (iii) shall use coal
15        gasification or integrated gasification-combined cycle
16        units that generate electricity or chemicals, or both,
17        and shall support the creation of Illinois coal-mining
18        jobs. The business must certify in writing that the
19        investments necessary to establish a new electric
20        generating facility would not be placed in service and
21        the job creation in the case of a coal-fueled plant
22        would not occur without the tax credits and exemptions
23        set forth in subsection (b-5) of this Section. The
24        term "placed in service" has the same meaning as
25        described in subsection (h) of Section 201 of the
26        Illinois Income Tax Act; or

 

 

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1            (B-5) the business intends to establish a new
2        gasification facility at a designated location in
3        Illinois. As used in this Section, "new gasification
4        facility" means a newly constructed coal gasification
5        facility that generates chemical feedstocks or
6        transportation fuels derived from coal (which may
7        include, but are not limited to, methane, methanol,
8        and nitrogen fertilizer), that supports the creation
9        or retention of Illinois coal-mining jobs, and that
10        qualifies for financial assistance from the Department
11        before December 31, 2010. A new gasification facility
12        does not include a pilot project located within
13        Jefferson County or within a county adjacent to
14        Jefferson County for synthetic natural gas from coal;
15        or
16            (C) the business intends to establish production
17        operations at a new coal mine, re-establish production
18        operations at a closed coal mine, or expand production
19        at an existing coal mine at a designated location in
20        Illinois not sooner than July 1, 2001; provided that
21        the production operations result in the creation of
22        150 new Illinois coal mining jobs as described in
23        subdivision (a)(3)(B) of this Section, and further
24        provided that the coal extracted from such mine is
25        utilized as the predominant source for a new electric
26        generating facility. The business must certify in

 

 

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1        writing that the investments necessary to establish a
2        new, expanded, or reopened coal mine would not be
3        placed in service and the job creation would not occur
4        without the tax credits and exemptions set forth in
5        subsection (b-5) of this Section. The term "placed in
6        service" has the same meaning as described in
7        subsection (h) of Section 201 of the Illinois Income
8        Tax Act; or
9            (D) the business intends to construct new
10        transmission facilities or upgrade existing
11        transmission facilities at designated locations in
12        Illinois, for which construction commenced not sooner
13        than July 1, 2001. For the purposes of this Section,
14        "transmission facilities" means transmission lines
15        with a voltage rating of 115 kilovolts or above,
16        including associated equipment, that transfer
17        electricity from points of supply to points of
18        delivery and that transmit a majority of the
19        electricity generated by a new electric generating
20        facility designated as a High Impact Business in
21        accordance with this Section. The business must
22        certify in writing that the investments necessary to
23        construct new transmission facilities or upgrade
24        existing transmission facilities would not be placed
25        in service without the tax credits and exemptions set
26        forth in subsection (b-5) of this Section. The term

 

 

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1        "placed in service" has the same meaning as described
2        in subsection (h) of Section 201 of the Illinois
3        Income Tax Act; or
4            (E) the business intends to establish a new wind
5        power facility at a designated location in Illinois.
6        For purposes of this Section, "new wind power
7        facility" means a newly constructed electric
8        generation facility, or a newly constructed expansion
9        of an existing electric generation facility, or the
10        replacement of an existing electric generation
11        facility, including the demolition and removal of an
12        electric generation facility irrespective of whether
13        it will be replaced, placed in service or replaced on
14        or after July 1, 2009, that generates electricity
15        using wind energy devices, and such facility shall be
16        deemed to include any permanent structures associated
17        with the electric generation facility and all
18        associated transmission lines, substations, and other
19        equipment related to the generation of electricity
20        from wind energy devices. For purposes of this
21        Section, "wind energy device" means any device, with a
22        nameplate capacity of at least 0.5 megawatts, that is
23        used in the process of converting kinetic energy from
24        the wind to generate electricity; or
25            (F) the business commits to (i) make a minimum
26        investment of $500,000,000, which will be placed in

 

 

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1        service in a qualified property, (ii) create 125
2        full-time equivalent jobs at a designated location in
3        Illinois, (iii) establish a fertilizer plant at a
4        designated location in Illinois that complies with the
5        set-back standards as described in Table 1: Initial
6        Isolation and Protective Action Distances in the 2012
7        Emergency Response Guidebook published by the United
8        States Department of Transportation, (iv) pay a
9        prevailing wage for employees at that location who are
10        engaged in construction activities, and (v) secure an
11        appropriate level of general liability insurance to
12        protect against catastrophic failure of the fertilizer
13        plant or any of its constituent systems; in addition,
14        the business must agree to enter into a construction
15        project labor agreement including provisions
16        establishing wages, benefits, and other compensation
17        for employees performing work under the project labor
18        agreement at that location; for the purposes of this
19        Section, "fertilizer plant" means a newly constructed
20        or upgraded plant utilizing gas used in the production
21        of anhydrous ammonia and downstream nitrogen
22        fertilizer products for resale; for the purposes of
23        this Section, "prevailing wage" means the hourly cash
24        wages plus fringe benefits for training and
25        apprenticeship programs approved by the U.S.
26        Department of Labor, Bureau of Apprenticeship and

 

 

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1        Training, health and welfare, insurance, vacations and
2        pensions paid generally, in the locality in which the
3        work is being performed, to employees engaged in work
4        of a similar character on public works; this paragraph
5        (F) applies only to businesses that submit an
6        application to the Department within 60 days after
7        July 25, 2013 (the effective date of Public Act
8        98-109) this amendatory Act of the 98th General
9        Assembly; and
10        (4) no later than 90 days after an application is
11    submitted, the Department shall notify the applicant of
12    the Department's determination of the qualification of the
13    proposed High Impact Business under this Section.
14    (b) Businesses designated as High Impact Businesses
15pursuant to subdivision (a)(3)(A) of this Section shall
16qualify for the credits and exemptions described in the
17following Acts: Section 9-222 and Section 9-222.1A of the
18Public Utilities Act, subsection (h) of Section 201 of the
19Illinois Income Tax Act, and Section 1d of the Retailers'
20Occupation Tax Act; provided that these credits and exemptions
21described in these Acts shall not be authorized until the
22minimum investments set forth in subdivision (a)(3)(A) of this
23Section have been placed in service in qualified properties
24and, in the case of the exemptions described in the Public
25Utilities Act and Section 1d of the Retailers' Occupation Tax
26Act, the minimum full-time equivalent jobs or full-time

 

 

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1retained jobs set forth in subdivision (a)(3)(A) of this
2Section have been created or retained. Businesses designated
3as High Impact Businesses under this Section shall also
4qualify for the exemption described in Section 5l of the
5Retailers' Occupation Tax Act. The credit provided in
6subsection (h) of Section 201 of the Illinois Income Tax Act
7shall be applicable to investments in qualified property as
8set forth in subdivision (a)(3)(A) of this Section.
9    (b-5) Businesses designated as High Impact Businesses
10pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
11and (a)(3)(D) of this Section shall qualify for the credits
12and exemptions described in the following Acts: Section 51 of
13the Retailers' Occupation Tax Act, Section 9-222 and Section
149-222.1A of the Public Utilities Act, and subsection (h) of
15Section 201 of the Illinois Income Tax Act; however, the
16credits and exemptions authorized under Section 9-222 and
17Section 9-222.1A of the Public Utilities Act, and subsection
18(h) of Section 201 of the Illinois Income Tax Act shall not be
19authorized until the new electric generating facility, the new
20gasification facility, the new transmission facility, or the
21new, expanded, or reopened coal mine is operational, except
22that a new electric generating facility whose primary fuel
23source is natural gas is eligible only for the exemption under
24Section 5l of the Retailers' Occupation Tax Act.
25    (b-6) Businesses designated as High Impact Businesses
26pursuant to subdivision (a)(3)(E) of this Section shall

 

 

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1qualify for the exemptions described in Section 5l of the
2Retailers' Occupation Tax Act; any business so designated as a
3High Impact Business being, for purposes of this Section, a
4"Wind Energy Business".
5    (b-7) Beginning on January 1, 2021, businesses designated
6as High Impact Businesses by the Department shall qualify for
7the High Impact Business construction jobs credit under
8subsection (h-5) of Section 201 of the Illinois Income Tax Act
9if the business meets the criteria set forth in subsection (i)
10of this Section. The total aggregate amount of credits awarded
11under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
12this amendatory Act of the 101st General Assembly) shall not
13exceed $20,000,000 in any State fiscal year.
14    (c) High Impact Businesses located in federally designated
15foreign trade zones or sub-zones are also eligible for
16additional credits, exemptions and deductions as described in
17the following Acts: Section 9-221 and Section 9-222.1 of the
18Public Utilities Act; and subsection (g) of Section 201, and
19Section 203 of the Illinois Income Tax Act.
20    (d) Except for businesses contemplated under subdivision
21(a)(3)(E) of this Section, existing Illinois businesses which
22apply for designation as a High Impact Business must provide
23the Department with the prospective plan for which 1,500
24full-time retained jobs would be eliminated in the event that
25the business is not designated.
26    (e) Except for new wind power facilities contemplated

 

 

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1under subdivision (a)(3)(E) of this Section, new proposed
2facilities which apply for designation as High Impact Business
3must provide the Department with proof of alternative
4non-Illinois sites which would receive the proposed investment
5and job creation in the event that the business is not
6designated as a High Impact Business.
7    (f) Except for businesses contemplated under subdivision
8(a)(3)(E) of this Section, in the event that a business is
9designated a High Impact Business and it is later determined
10after reasonable notice and an opportunity for a hearing as
11provided under the Illinois Administrative Procedure Act, that
12the business would have placed in service in qualified
13property the investments and created or retained the requisite
14number of jobs without the benefits of the High Impact
15Business designation, the Department shall be required to
16immediately revoke the designation and notify the Director of
17the Department of Revenue who shall begin proceedings to
18recover all wrongfully exempted State taxes with interest. The
19business shall also be ineligible for all State funded
20Department programs for a period of 10 years.
21    (g) The Department shall revoke a High Impact Business
22designation if the participating business fails to comply with
23the terms and conditions of the designation. However, the
24penalties for new wind power facilities or Wind Energy
25Businesses for failure to comply with any of the terms or
26conditions of the Illinois Prevailing Wage Act shall be only

 

 

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1those penalties identified in the Illinois Prevailing Wage
2Act, and the Department shall not revoke a High Impact
3Business designation as a result of the failure to comply with
4any of the terms or conditions of the Illinois Prevailing Wage
5Act in relation to a new wind power facility or a Wind Energy
6Business.
7    (h) Prior to designating a business, the Department shall
8provide the members of the General Assembly and Commission on
9Government Forecasting and Accountability with a report
10setting forth the terms and conditions of the designation and
11guarantees that have been received by the Department in
12relation to the proposed business being designated.
13    (i) High Impact Business construction jobs credit.
14Beginning on January 1, 2021, a High Impact Business may
15receive a tax credit against the tax imposed under subsections
16(a) and (b) of Section 201 of the Illinois Income Tax Act in an
17amount equal to 50% of the amount of the incremental income tax
18attributable to High Impact Business construction jobs credit
19employees employed in the course of completing a High Impact
20Business construction jobs project. However, the High Impact
21Business construction jobs credit may equal 75% of the amount
22of the incremental income tax attributable to High Impact
23Business construction jobs credit employees if the High Impact
24Business construction jobs credit project is located in an
25underserved area.
26    The Department shall certify to the Department of Revenue:

 

 

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1(1) the identity of taxpayers that are eligible for the High
2Impact Business construction jobs credit; and (2) the amount
3of High Impact Business construction jobs credits that are
4claimed pursuant to subsection (h-5) of Section 201 of the
5Illinois Income Tax Act in each taxable year. Any business
6entity that receives a High Impact Business construction jobs
7credit shall maintain a certified payroll pursuant to
8subsection (j) of this Section.
9    As used in this subsection (i):
10    "High Impact Business construction jobs credit" means an
11amount equal to 50% (or 75% if the High Impact Business
12construction project is located in an underserved area) of the
13incremental income tax attributable to High Impact Business
14construction job employees. The total aggregate amount of
15credits awarded under the Blue Collar Jobs Act (Article 20 of
16Public Act 101-9 this amendatory Act of the 101st General
17Assembly) shall not exceed $20,000,000 in any State fiscal
18year
19    "High Impact Business construction job employee" means a
20laborer or worker who is employed by an Illinois contractor or
21subcontractor in the actual construction work on the site of a
22High Impact Business construction job project.
23    "High Impact Business construction jobs project" means
24building a structure or building or making improvements of any
25kind to real property, undertaken and commissioned by a
26business that was designated as a High Impact Business by the

 

 

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1Department. The term "High Impact Business construction jobs
2project" does not include the routine operation, routine
3repair, or routine maintenance of existing structures,
4buildings, or real property.
5    "Incremental income tax" means the total amount withheld
6during the taxable year from the compensation of High Impact
7Business construction job employees.
8    "Underserved area" means a geographic area that meets one
9or more of the following conditions:
10        (1) the area has a poverty rate of at least 20%
11    according to the latest federal decennial census;
12        (2) 75% or more of the children in the area
13    participate in the federal free lunch program according to
14    reported statistics from the State Board of Education;
15        (3) at least 20% of the households in the area receive
16    assistance under the Supplemental Nutrition Assistance
17    Program (SNAP); or
18        (4) the area has an average unemployment rate, as
19    determined by the Illinois Department of Employment
20    Security, that is more than 120% of the national
21    unemployment average, as determined by the U.S. Department
22    of Labor, for a period of at least 2 consecutive calendar
23    years preceding the date of the application.
24    (j) Each contractor and subcontractor who is engaged in
25and executing a High Impact Business Construction jobs
26project, as defined under subsection (i) of this Section, for

 

 

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1a business that is entitled to a credit pursuant to subsection
2(i) of this Section shall:
3        (1) make and keep, for a period of 5 years from the
4    date of the last payment made on or after June 5, 2019 (the
5    effective date of Public Act 101-9) this amendatory Act of
6    the 101st General Assembly on a contract or subcontract
7    for a High Impact Business Construction Jobs Project,
8    records for all laborers and other workers employed by the
9    contractor or subcontractor on the project; the records
10    shall include:
11            (A) the worker's name;
12            (B) the worker's address;
13            (C) the worker's telephone number, if available;
14            (D) the worker's social security number;
15            (E) the worker's classification or
16        classifications;
17            (F) the worker's gross and net wages paid in each
18        pay period;
19            (G) the worker's number of hours worked each day;
20            (H) the worker's starting and ending times of work
21        each day;
22            (I) the worker's hourly wage rate; and
23            (J) the worker's hourly overtime wage rate;
24        (2) no later than the 15th day of each calendar month,
25    provide a certified payroll for the immediately preceding
26    month to the taxpayer in charge of the High Impact

 

 

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1    Business construction jobs project; within 5 business days
2    after receiving the certified payroll, the taxpayer shall
3    file the certified payroll with the Department of Labor
4    and the Department of Commerce and Economic Opportunity; a
5    certified payroll must be filed for only those calendar
6    months during which construction on a High Impact Business
7    construction jobs project has occurred; the certified
8    payroll shall consist of a complete copy of the records
9    identified in paragraph (1) of this subsection (j), but
10    may exclude the starting and ending times of work each
11    day; the certified payroll shall be accompanied by a
12    statement signed by the contractor or subcontractor or an
13    officer, employee, or agent of the contractor or
14    subcontractor which avers that:
15            (A) he or she has examined the certified payroll
16        records required to be submitted by the Act and such
17        records are true and accurate; and
18            (B) the contractor or subcontractor is aware that
19        filing a certified payroll that he or she knows to be
20        false is a Class A misdemeanor.
21    A general contractor is not prohibited from relying on a
22certified payroll of a lower-tier subcontractor, provided the
23general contractor does not knowingly rely upon a
24subcontractor's false certification.
25    Any contractor or subcontractor subject to this
26subsection, and any officer, employee, or agent of such

 

 

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1contractor or subcontractor whose duty as an officer,
2employee, or agent it is to file a certified payroll under this
3subsection, who willfully fails to file such a certified
4payroll on or before the date such certified payroll is
5required by this paragraph to be filed and any person who
6willfully files a false certified payroll that is false as to
7any material fact is in violation of this Act and guilty of a
8Class A misdemeanor.
9    The taxpayer in charge of the project shall keep the
10records submitted in accordance with this subsection on or
11after June 5, 2019 (the effective date of Public Act 101-9)
12this amendatory Act of the 101st General Assembly for a period
13of 5 years from the date of the last payment for work on a
14contract or subcontract for the High Impact Business
15construction jobs project.
16    The records submitted in accordance with this subsection
17shall be considered public records, except an employee's
18address, telephone number, and social security number, and
19made available in accordance with the Freedom of Information
20Act. The Department of Labor shall accept any reasonable
21submissions by the contractor that meet the requirements of
22this subsection (j) and shall share the information with the
23Department in order to comply with the awarding of a High
24Impact Business construction jobs credit. A contractor,
25subcontractor, or public body may retain records required
26under this Section in paper or electronic format.

 

 

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1    (k) Upon 7 business days' notice, each contractor and
2subcontractor shall make available for inspection and copying
3at a location within this State during reasonable hours, the
4records identified in this subsection (j) to the taxpayer in
5charge of the High Impact Business construction jobs project,
6its officers and agents, the Director of the Department of
7Labor and his or her deputies and agents, and to federal,
8State, or local law enforcement agencies and prosecutors.
9(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.