Illinois General Assembly - Full Text of SB0664
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB0664  102nd General Assembly

SB0664eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB0664 EngrossedLRB102 17106 RJF 22535 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 Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, 5.5, 8.1,
612-9, and 13 as follows:
 
7    (20 ILCS 655/3)  (from Ch. 67 1/2, par. 603)
8    Sec. 3. Definitions. As used in this Act, the following
9words shall have the meanings ascribed to them, unless the
10context otherwise requires:
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Enterprise Zone" means an area of the State certified
14by the Department as an Enterprise Zone pursuant to this Act.
15    (c) "Depressed Area" means an area in which pervasive
16poverty, unemployment and economic distress exist.
17    (d) "Designated Zone Organization" means an association or
18entity: (1) the members of which are substantially all
19residents of the Enterprise Zone; (2) the board of directors
20of which is elected by the members of the organization; (3)
21which satisfies the criteria set forth in Section 501(c) (3)
22or 501(c) (4) of the Internal Revenue Code; and (4) which
23exists primarily for the purpose of performing within such

 

 

SB0664 Engrossed- 2 -LRB102 17106 RJF 22535 b

1area or zone for the benefit of the residents and businesses
2thereof any of the functions set forth in Section 8 of this
3Act.
4    (e) "Agency" means each officer, board, commission and
5agency created by the Constitution, in the executive branch of
6State government, other than the State Board of Elections;
7each officer, department, board, commission, agency,
8institution, authority, university, body politic and corporate
9of the State; and each administrative unit or corporate
10outgrowth of the State government which is created by or
11pursuant to statute, other than units of local government and
12their officers, school districts and boards of election
13commissioners; each administrative unit or corporate outgrowth
14of the above and as may be created by executive order of the
15Governor. No entity shall be considered an "agency" for the
16purposes of this Act unless authorized by law to make rules or
17regulations.
18    (f) "Rule" means each agency statement of general
19applicability that implements, applies, interprets or
20prescribes law or policy, but does not include (i) statements
21concerning only the internal management of an agency and not
22affecting private rights or procedures available to persons or
23entities outside the agency, (ii) intra-agency memoranda, or
24(iii) the prescription of standardized forms.
25    (g) "Board" means the Enterprise Zone Board created in
26Section 5.2.1.

 

 

SB0664 Engrossed- 3 -LRB102 17106 RJF 22535 b

1    (h) "Local labor market area" means an economically
2integrated area within which individuals can reside and find
3employment within a reasonable distance or can readily change
4jobs without changing their place of residence.
5    (i) "Full-time equivalent job" means a job in which the
6new employee works for the recipient or for a corporation
7under contract to the recipient at a rate of at least 35 hours
8per week. A recipient who employs labor or services at a
9specific site or facility under contract with another may
10declare one full-time, permanent job for every 1,820 man hours
11worked per year under that contract. Vacations, paid holidays,
12and sick time are included in this computation. Overtime is
13not considered a part of regular hours.
14    (j) "Full-time retained job" means any employee defined as
15having a full-time or full-time equivalent job preserved at a
16specific facility or site, the continuance of which is
17threatened by a specific and demonstrable threat, which shall
18be specified in the application for development assistance. A
19recipient who employs labor or services at a specific site or
20facility under contract with another may declare one retained
21employee per year for every 1,750 man hours worked per year
22under that contract, even if different individuals perform
23on-site labor or services.
24(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
 
25    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)

 

 

SB0664 Engrossed- 4 -LRB102 17106 RJF 22535 b

1    Sec. 4. Qualifications for enterprise zones.
2    (1) An area is qualified to become an enterprise zone
3which:
4        (a) is a contiguous area, provided that a zone area
5    may exclude wholly surrounded territory within its
6    boundaries;
7        (b) comprises a minimum of one-half square mile and
8    not more than 12 square miles, or 15 square miles if the
9    zone is located within the jurisdiction of 4 or more
10    counties or municipalities, in total area, exclusive of
11    lakes and waterways; however, in such cases where the
12    enterprise zone is a joint effort of three or more units of
13    government, or two or more units of government if situated
14    in a township which is divided by a municipality of
15    1,000,000 or more inhabitants, and where the certification
16    has been in effect at least one year, the total area shall
17    comprise a minimum of one-half square mile and not more
18    than thirteen square miles in total area exclusive of
19    lakes and waterways;
20        (c) (blank);
21        (d) (blank);
22        (e) is (1) entirely within a municipality or (2)
23    entirely within the unincorporated areas of a county,
24    except where reasonable need is established for such zone
25    to cover portions of more than one municipality or county
26    or (3) both comprises (i) all or part of a municipality and

 

 

SB0664 Engrossed- 5 -LRB102 17106 RJF 22535 b

1    (ii) an unincorporated area of a county; and
2        (f) meets 3 or more of the following criteria:
3            (1) all or part of the local labor market area has
4        had an annual average unemployment rate of at least
5        120% of the State's annual average unemployment rate
6        for the most recent calendar year or the most recent
7        fiscal year as reported by the Department of
8        Employment Security;
9            (2) designation will result in the development of
10        substantial employment opportunities by creating or
11        retaining a minimum aggregate of 1,000 full-time
12        equivalent jobs due to an aggregate investment of
13        $100,000,000 or more, and will help alleviate the
14        effects of poverty and unemployment within the local
15        labor market area;
16            (3) all or part of the local labor market area has
17        a poverty rate of at least 20% according to American
18        Community Survey; 35% or more of families with
19        children in the area are living below 130% of the
20        poverty line, according to the latest American
21        Community Survey; the latest federal decennial census,
22        50% or more of children in the local labor market area
23        participate in the federal free lunch program
24        according to reported statistics from the State Board
25        of Education, or 20% or more households in the local
26        labor market area receive food stamps or assistance

 

 

SB0664 Engrossed- 6 -LRB102 17106 RJF 22535 b

1        under Supplemental Nutrition Assistance Program
2        ("SNAP") according to the latest American Community
3        Survey federal decennial census;
4            (4) an abandoned coal mine, a brownfield (as
5        defined in Section 58.2 of the Environmental
6        Protection Act), or an inactive nuclear-powered
7        electrical generation facility where spent nuclear
8        fuel is stored on-site is located in the proposed zone
9        area, or all or a portion of the proposed zone was
10        declared a federal disaster area in the 3 years
11        preceding the date of application;
12            (5) the local labor market area contains a
13        presence of large employers that have downsized over
14        the years, the labor market area has experienced plant
15        closures in the 5 years prior to the date of
16        application affecting more than 50 workers, or the
17        local labor market area has experienced State or
18        federal facility closures in the 5 years prior to the
19        date of application affecting more than 50 workers;
20            (6) based on data from Multiple Listing Service
21        information or other suitable sources, the local labor
22        market area contains a high floor vacancy rate of
23        industrial or commercial properties, vacant or
24        demolished commercial and industrial structures are
25        prevalent in the local labor market area, or
26        industrial structures in the local labor market area

 

 

SB0664 Engrossed- 7 -LRB102 17106 RJF 22535 b

1        are not used because of age, deterioration, relocation
2        of the former occupants, or cessation of operation;
3            (7) the applicant demonstrates a substantial plan
4        for using the designation to improve the State and
5        local government tax base, including income, sales,
6        and property taxes, including a plan for disposal of
7        publicly-owned real property by the methods described
8        in Section 10 of this Act;
9            (8) significant public infrastructure is present
10        in the local labor market area in addition to a plan
11        for infrastructure development and improvement;
12            (9) high schools or community colleges located
13        within the local labor market area are engaged in ACT
14        Work Keys, Manufacturing Skills Standard
15        Certification, or other industry-based credentials
16        that prepare students for careers;
17            (10) (blank); or the change in equalized assessed
18        valuation of industrial and/or commercial properties
19        in the 5 years prior to the date of application is
20        equal to or less than 50% of the State average change
21        in equalized assessed valuation for industrial and/or
22        commercial properties, as applicable, for the same
23        period of time; or
24            (11) the applicant demonstrates a substantial plan
25        for using the designation to encourage: (i)
26        participation by businesses owned by minorities,

 

 

SB0664 Engrossed- 8 -LRB102 17106 RJF 22535 b

1        women, and persons with disabilities, as those terms
2        are defined in the Business Enterprise for Minorities,
3        Women, and Persons with Disabilities Act; and (ii) the
4        hiring of minorities, women, and persons with
5        disabilities.
6    As provided in Section 10-5.3 of the River Edge
7Redevelopment Zone Act, upon the expiration of the term of
8each River Edge Redevelopment Zone in existence on August 7,
92012 (the effective date of Public Act 97-905), that River
10Edge Redevelopment Zone will become available for its previous
11designee or a new applicant to compete for designation as an
12enterprise zone. No preference for designation will be given
13to the previous designee of the zone.
14    (2) Any criteria established by the Department or by law
15which utilize the rate of unemployment for a particular area
16shall provide that all persons who are not presently employed
17and have exhausted all unemployment benefits shall be
18considered unemployed, whether or not such persons are
19actively seeking employment.
20(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
21101-81, eff. 7-12-19.)
 
22    (20 ILCS 655/4.1)
23    Sec. 4.1. Department recommendations.
24    (a) For all applications that qualify under Section 4 of
25this Act, the Department shall issue recommendations by

 

 

SB0664 Engrossed- 9 -LRB102 17106 RJF 22535 b

1assigning a score to each applicant. The scores will be
2determined by the Department, based on the extent to which an
3applicant meets the criteria points under subsection (f) of
4Section 4 of this Act. Scores will be determined using the
5following scoring system:
6        (1) Up to 50 points for the extent to which the
7    applicant meets or exceeds the criteria in item (1) of
8    subsection (f) of Section 4 of this Act, with points
9    awarded according to the severity of the unemployment.
10        (2) Up to 50 points for the extent to which the
11    applicant meets or exceeds the criteria in item (2) of
12    subsection (f) of Section 4 of this Act, with points
13    awarded in accordance with the number of jobs created and
14    the aggregate amount of investment promised. The
15    Department may award partial points on a pro rata basis
16    under this paragraph (2) if the applicant demonstrates
17    specific job creation and investment below the thresholds
18    set forth in paragraph (2) of subsection (f) of Section 4.
19        (3) Up to 40 points for the extent to which the
20    applicant meets or exceeds the criteria in item (3) of
21    subsection (f) of Section 4 of this Act, with points
22    awarded in accordance with the severity of the
23    unemployment rate according to the latest American
24    Community Survey federal decennial census.
25        (4) Up to 30 points for the extent to which the
26    applicant meets or exceeds the criteria in item (4) of

 

 

SB0664 Engrossed- 10 -LRB102 17106 RJF 22535 b

1    subsection (f) of Section 4 of this Act, with points
2    awarded in accordance with the severity of the
3    environmental impact of the abandoned coal mine,
4    brownfield, or federal disaster area.
5        (5) Up to 50 points for the extent to which the
6    applicant meets or exceeds the criteria in item (5) of
7    subsection (f) of Section 4 of this Act, with points
8    awarded in accordance with the severity of the applicable
9    facility closures or downsizing.
10        (6) Up to 40 points for the extent to which the
11    applicant meets or exceeds the criteria in item (6) of
12    subsection (f) of Section 4 of this Act, with points
13    awarded in accordance with the severity and extent of the
14    high floor vacancy or deterioration.
15        (7) Up to 30 points for the extent to which the
16    applicant meets or exceeds the criteria in item (7) of
17    subsection (f) of Section 4 of this Act, with points
18    awarded in accordance with the extent to which the
19    application addresses a plan to improve the State and
20    local government tax base, including a plan for disposal
21    of publicly-owned real property.
22        (8) Up to 50 points for the extent to which the
23    applicant meets or exceeds the criteria in item (8) of
24    subsection (f) of Section 4 of this Act, with points
25    awarded in accordance with the existence of significant
26    public infrastructure.

 

 

SB0664 Engrossed- 11 -LRB102 17106 RJF 22535 b

1        (9) Up to 40 points for the extent to which the
2    applicant meets or exceeds the criteria in item (9) of
3    subsection (f) of Section 4 of this Act, with points
4    awarded in accordance with the extent to which educational
5    programs exist for career preparation.
6        (10) (Blank). Up to 40 points for the extent to which
7    the applicant meets or exceeds the criteria in item (10)
8    of subsection (f) of Section 4 of this Act, with points
9    awarded according to the severity of the change in
10    equalized assessed valuation.
11        (11) Up to 40 points for the extent to which the
12    applicant meets or exceeds the criteria in item (11) of
13    subsection (f) of Section 4 of this Act.
14        (12) In awarding points under paragraphs (1) through
15    (9), the Department may adjust the scoring for applicants
16    that are located entirely within a county with a
17    population of less than 300,000 if the Department finds
18    that the designation will help to alleviate the effects of
19    poverty and unemployment within the proposed Enterprise
20    Zone.
21    (b) After assigning a score for each of the individual
22criteria using the point system as described in subsection
23(a), the Department shall then take the sum of the scores for
24each applicant and assign a final score. The Department shall
25then submit this information to the Board, as required in
26subsection (c) of Section 5.2, as its recommendation.

 

 

SB0664 Engrossed- 12 -LRB102 17106 RJF 22535 b

1(Source: P.A. 100-838, eff. 8-13-18.)
 
2    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
3    Sec. 5.1. Application to Department.
4    (a) A county or municipality which has adopted an
5ordinance designating an area as an enterprise zone shall make
6written application to the Department to have such proposed
7enterprise zone certified by the Department as an Enterprise
8Zone. The application shall include:
9        (i) a certified copy of the ordinance designating the
10    proposed zone;
11        (ii) a map of the proposed enterprise zone, showing
12    existing streets and highways;
13        (iii) an analysis, and any appropriate supporting
14    documents and statistics, demonstrating that the proposed
15    zone area is qualified in accordance with Section 4;
16        (iv) a statement detailing any tax, grant, and other
17    financial incentives or benefits, and any programs, to be
18    provided by the municipality or county to business
19    enterprises within the zone, other than those provided in
20    the designating ordinance, which are not to be provided
21    throughout the municipality or county;
22        (v) a statement setting forth the economic development
23    and planning objectives for the zone;
24        (vi) a statement describing the functions, programs,
25    and services to be performed by designated zone

 

 

SB0664 Engrossed- 13 -LRB102 17106 RJF 22535 b

1    organizations within the zone;
2        (vii) an estimate of the economic impact of the zone,
3    considering all of the tax incentives, financial benefits
4    and programs contemplated, upon the revenues of the
5    municipality or county;
6        (viii) a transcript of all public hearings on the
7    zone;
8        (ix) in the case of a joint application, a statement
9    detailing the need for a zone covering portions of more
10    than one municipality or county and a description of the
11    agreement between joint applicants; and
12        (x) such additional information as the Department by
13    regulation may require.
14    (b) The Department may provide for provisional
15certification of substantially complete applications pending
16the receipt of any of the items identified in subsection (a) of
17this Section or any additional information requested by the
18Department.
19(Source: P.A. 82-1019.)
 
20    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
21    Sec. 5.2. Department Review of Enterprise Zone
22Applications.
23    (a) All applications which are to be considered and acted
24upon by the Department during a calendar year must be received
25by the Department no later than December 31 of the preceding

 

 

SB0664 Engrossed- 14 -LRB102 17106 RJF 22535 b

1calendar year.
2    Any application received after December 31 of any calendar
3year shall be held by the Department for consideration and
4action during the following calendar year.
5    Each enterprise zone application shall include a specific
6definition of the applicant's local labor market area.
7    (a-5) The Department shall, no later than July 31, 2013,
8develop an application process for an enterprise zone
9application. The Department has emergency rulemaking authority
10for the purpose of application development only until 12
11months after the effective date of this amendatory Act of the
1297th General Assembly.
13    (b) Upon receipt of an application from a county or
14municipality the Department shall review the application to
15determine whether the designated area qualifies as an
16enterprise zone under Section 4 of this Act.
17    (c) No later than June 30, the Department shall notify all
18applicant municipalities and counties of the Department's
19determination of the qualification of their respective
20designated enterprise zone areas, and shall send qualifying
21applications, including the applicant's scores for each of the
22items set forth in items (1) through (10) of subsection (a) of
23Section 4.1 and the applicant's final score under that
24Section, to the Board for the Board's consideration, along
25with supporting documentation of the basis for the
26Department's decision.

 

 

SB0664 Engrossed- 15 -LRB102 17106 RJF 22535 b

1    (d) If any such designated area is found to be qualified to
2be an enterprise zone by the Department under subsection (c)
3of this Section, the Department shall, no later than July 15,
4send a letter of notification to each member of the General
5Assembly whose legislative district or representative district
6contains all or part of the designated area and publish a
7notice in at least one newspaper of general circulation within
8the proposed zone area to notify the general public of the
9application and their opportunity to comment. Such notice
10shall include a description of the area and a brief summary of
11the application and shall indicate locations where the
12applicant has provided copies of the application for public
13inspection. The notice shall also indicate appropriate
14procedures for the filing of written comments from zone
15residents, business, civic and other organizations and
16property owners to the Department. The Department and the
17Board may consider written comments submitted pursuant to this
18Section or any other information regarding a pending
19enterprise zone application submitted after the deadline for
20enterprise zone application and received prior to the Board's
21decision on all pending applications.
22    (e) (Blank).
23    (f) (Blank).
24    (g) (Blank).
25    (h) (Blank).
26(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 

 

 

SB0664 Engrossed- 16 -LRB102 17106 RJF 22535 b

1    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
2    Sec. 5.3. Certification of Enterprise Zones; effective
3date.
4    (a) Certification of Board-approved designated Enterprise
5Zones shall be made by the Department by certification of the
6designating ordinance. The Department shall promptly issue a
7certificate for each Enterprise Zone upon approval by the
8Board. The certificate shall be signed by the Director of the
9Department, shall make specific reference to the designating
10ordinance, which shall be attached thereto, and shall be filed
11in the office of the Secretary of State. A certified copy of
12the Enterprise Zone Certificate, or a duplicate original
13thereof, shall be recorded in the office of recorder of deeds
14of the county in which the Enterprise Zone lies.
15    (b) An Enterprise Zone certified prior to January 1, 2016
16or on or after January 1, 2017 shall be effective on January 1
17of the first calendar year after Department certification. An
18Enterprise Zone certified on or after January 1, 2016 and on or
19before December 31, 2016 shall be effective on the date of the
20Department's certification. The Department shall transmit a
21copy of the certification to the Department of Revenue, and to
22the designating municipality or county.
23    Upon certification of an Enterprise Zone, the terms and
24provisions of the designating ordinance shall be in effect,
25and may not be amended or repealed except in accordance with

 

 

SB0664 Engrossed- 17 -LRB102 17106 RJF 22535 b

1Section 5.4.
2    (c) With the exception of Enterprise Zones scheduled to
3expire before December 31, 2018, an Enterprise Zone designated
4before the effective date of this amendatory Act of the 97th
5General Assembly shall be in effect for 30 calendar years, or
6for a lesser number of years specified in the certified
7designating ordinance. Notwithstanding the foregoing, any
8Enterprise Zone in existence on the effective date of this
9amendatory Act of the 98th General Assembly that has a term of
1020 calendar years may be extended for an additional 10
11calendar years upon amendment of the designating ordinance by
12the designating municipality or county and submission of the
13ordinance to the Department. The amended ordinance must be
14properly recorded in the Office of Recorder of Deeds of each
15county in which the Enterprise Zone lies. Each Enterprise Zone
16in existence on the effective date of this amendatory Act of
17the 97th General Assembly that is scheduled to expire before
18July 1, 2016 may have its termination date extended until July
191, 2016 upon amendment of the designating ordinance by the
20designating municipality or county extending the termination
21date to July 1, 2016 and submission of the ordinance to the
22Department. The amended ordinance must be properly recorded in
23the Office of Recorder of Deeds of each county in which the
24Enterprise Zone lies. An Enterprise Zone designated on or
25after the effective date of this amendatory Act of the 97th
26General Assembly shall be in effect for a term of 15 calendar

 

 

SB0664 Engrossed- 18 -LRB102 17106 RJF 22535 b

1years, or for a lesser number of years specified in the
2certified designating ordinance. An enterprise zone designated
3on or after the effective date of this amendatory Act of the
497th General Assembly shall be subject to review by the Board
5after 13 years for an additional 10-year designation beginning
6on the expiration date of the enterprise zone. During the
7review process, the Board shall consider the costs incurred by
8the State and units of local government as a result of tax
9benefits received by the enterprise zone as well as whether
10the Zone has substantially implemented the plans and achieved
11the goals set forth in its original application, including
12satisfaction of the investment and job creation or retention
13information provided by the Applicant with respect to
14paragraph (f) of subsection (1) of Section 4 of the Act.
15Enterprise Zones shall terminate at midnight of December 31 of
16the final calendar year of the certified term, except as
17provided in Section 5.4.
18    (d) Except for Enterprise Zones authorized under
19subsection (f), Zones that become available for designation
20pursuant to Section 10-5.3 of the River Edge Redevelopment
21Zone Act, or those designated pursuant to another statutory
22authority providing for the creation of Enterprise Zones, no
23No more than a total of 97 12 Enterprise Zones may be certified
24by the Department and in existence in any calendar year 1984,
25no more than 12 Enterprise Zones may be certified by the
26Department in calendar year 1985, no more than 13 Enterprise

 

 

SB0664 Engrossed- 19 -LRB102 17106 RJF 22535 b

1Zones may be certified by the Department in calendar year
21986, no more than 15 Enterprise Zones may be certified by the
3Department in calendar year 1987, and no more than 20
4Enterprise Zones may be certified by the Department in
5calendar year 1990. In other calendar years, no more than 13
6Enterprise Zones may be certified by the Department. The
7Department may also designate up to 8 additional Enterprise
8Zones outside the regular application cycle if warranted by
9the extreme economic circumstances as determined by the
10Department. The Department may also designate one additional
11Enterprise Zone outside the regular application cycle if an
12aircraft manufacturer agrees to locate an aircraft
13manufacturing facility in the proposed Enterprise Zone.
14Notwithstanding any other provision of this Act, no more than
1589 Enterprise Zones may be certified by the Department for the
1610 calendar years commencing with 1983. The 7 additional
17Enterprise Zones authorized by Public Act 86-15 shall not lie
18within municipalities or unincorporated areas of counties that
19abut or are contiguous to Enterprise Zones certified pursuant
20to this Section prior to June 30, 1989. The 7 additional
21Enterprise Zones (excluding the additional Enterprise Zone
22which may be designated outside the regular application cycle)
23authorized by Public Act 86-1030 shall not lie within
24municipalities or unincorporated areas of counties that abut
25or are contiguous to Enterprise Zones certified pursuant to
26this Section prior to February 28, 1990. Beginning in calendar

 

 

SB0664 Engrossed- 20 -LRB102 17106 RJF 22535 b

1year 2004 and until December 31, 2008, one additional
2enterprise zone may be certified by the Department. In any
3calendar year, the Department may not certify more than 3
4Zones located within the same municipality. The Department may
5certify Enterprise Zones in each of the 10 calendar years
6commencing with 1983. The Department may not certify more than
7a total of 18 Enterprise Zones located within the same county
8(whether within municipalities or within unincorporated
9territory) for the 10 calendar years commencing with 1983.
10Thereafter, the Department may not certify any additional
11Enterprise Zones, but may amend and rescind certifications of
12existing Enterprise Zones in accordance with Section 5.4.
13Beginning in calendar year 2021 and for any year in which there
14are at least 4 Zones available for designation, at least 25% of
15Zones available for designation in a given calendar year must
16be awarded to Zones located in counties with populations of
17less than 300,000 unless there are no applicants from such
18locations for that calendar year.
19    (e) Notwithstanding any other provision of law, if (i) the
20county board of any county in which a current military base is
21located, in part or in whole, or in which a military base that
22has been closed within 20 years of the effective date of this
23amendatory Act of 1998 is located, in part or in whole, adopts
24a designating ordinance in accordance with Section 5 of this
25Act to designate the military base in that county as an
26enterprise zone and (ii) the property otherwise meets the

 

 

SB0664 Engrossed- 21 -LRB102 17106 RJF 22535 b

1qualifications for an enterprise zone as prescribed in Section
24 of this Act, then the Department may certify the designating
3ordinance or ordinances, as the case may be.
4    (f) Applications for Enterprise Zones that are scheduled
5to expire in 2016, including Enterprise Zones that have been
6extended until 2016 by this amendatory Act of the 97th General
7Assembly, shall be submitted to the Department no later than
8December 31, 2014. At that time, the Zone becomes available
9for either the previously designated area or a different area
10to compete for designation. No preference for designation as a
11Zone will be given to the previously designated area.
12    For Enterprise Zones that are scheduled to expire on or
13after January 1, 2017 and prior to January 1, 2024, an
14application process shall begin 2 years prior to the year in
15which the Zone expires. At that time, the Zone becomes
16available for either the previously designated area or a
17different area to compete for designation. For Enterprise
18Zones that are scheduled to expire on or after January 1, 2024,
19an application process shall begin 5 years prior to the year in
20which the Zone expires. At that time, the Zone becomes
21available for either the previously designated area or a
22different area to compete for designation. No preference for
23designation as a Zone will be given to the previously
24designated area.
25    Each Enterprise Zone that reapplies for certification but
26does not receive a new certification shall expire on its

 

 

SB0664 Engrossed- 22 -LRB102 17106 RJF 22535 b

1scheduled termination date.
2(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
3    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
4    Sec. 5.4. Amendment and Decertification of Enterprise
5Zones.
6    (a) The terms of a certified enterprise zone designating
7ordinance may be amended to
8        (i) alter the boundaries of the Enterprise Zone, or
9        (ii) expand, limit or repeal tax incentives or
10    benefits provided in the ordinance, or
11        (iii) alter the termination date of the zone, or
12        (iv) make technical corrections in the enterprise zone
13    designating ordinance; but such amendment shall not be
14    effective unless the Department issues an amended
15    certificate for the Enterprise Zone, approving the amended
16    designating ordinance. Upon the adoption of any ordinance
17    amending or repealing the terms of a certified enterprise
18    zone designating ordinance, the municipality or county
19    shall promptly file with the Department an application for
20    approval thereof, containing substantially the same
21    information as required for an application under Section
22    5.1 insofar as material to the proposed changes. The
23    municipality or county must hold a public hearing on the
24    proposed changes as specified in Section 5 and, if the
25    amendment is to effectuate the limitation of tax

 

 

SB0664 Engrossed- 23 -LRB102 17106 RJF 22535 b

1    abatements under Section 5.4.1, then the public notice of
2    the hearing shall state that property that is in both the
3    enterprise zone and a redevelopment project area may not
4    receive tax abatements unless within 60 days after the
5    adoption of the amendment to the designating ordinance the
6    municipality has determined that eligibility for tax
7    abatements has been established,
8        (v) include an area within another municipality or
9    county as part of the designated enterprise zone provided
10    the requirements of Section 4 are complied with, or
11        (vi) effectuate the limitation of tax abatements under
12    Section 5.4.1.
13    (b) The Department shall approve or disapprove a proposed
14amendment to a certified enterprise zone within 90 days of its
15receipt of the application from the municipality or county.
16The Department may not approve changes in a Zone which are not
17in conformity with this Act, as now or hereafter amended, or
18with other applicable laws. If the Department issues an
19amended certificate for an Enterprise Zone, the amended
20certificate, together with the amended zone designating
21ordinance, shall be filed, recorded and transmitted as
22provided in Section 5.3.
23    (c) An Enterprise Zone may be decertified by joint action
24of the Department and the designating county or municipality
25in accordance with this Section. The designating county or
26municipality shall conduct at least one public hearing within

 

 

SB0664 Engrossed- 24 -LRB102 17106 RJF 22535 b

1the zone prior to its adoption of an ordinance of
2de-designation. The mayor of the designating municipality or
3the chairman of the county board of the designating county
4shall execute a joint decertification agreement with the
5Department. A decertification of an Enterprise Zone shall not
6become effective until at least 6 months after the execution
7of the decertification agreement, which shall be filed in the
8office of the Secretary of State.
9    (d) An Enterprise Zone may be decertified for cause by the
10Department in accordance with this Section. Prior to
11decertification: (1) the Department shall notify the chief
12elected official of the designating county or municipality in
13writing of the specific deficiencies which provide cause for
14decertification; (2) the Department shall place the
15designating county or municipality on probationary status for
16at least 6 months during which time corrective action may be
17achieved in the enterprise zone by the designating county or
18municipality; and, (3) the Department shall conduct at least
19one public hearing within the zone. If such corrective action
20is not achieved during the probationary period, the Department
21shall issue an amended certificate signed by the Director of
22the Department decertifying the enterprise zone, which
23certificate shall be filed in the office of the Secretary of
24State. A certified copy of the amended enterprise zone
25certificate, or a duplicate original thereof, shall be
26recorded in the office of recorder of the county in which the

 

 

SB0664 Engrossed- 25 -LRB102 17106 RJF 22535 b

1enterprise zone lies, and shall be provided to the chief
2elected official of the designating county or municipality.
3Decertification of an Enterprise Zone shall not become
4effective until 60 days after the date of filing.
5    (d-1) The Department shall provisionally decertify any
6Enterprise Zone that fails to file a report or fails to report
7any capital investment, job creation or retention, or State
8tax expenditures for 3 consecutive calendar years. Prior to
9provisional decertification: (1) the Department shall notify
10the chief elected official of the designating county or
11municipality in writing of the specific deficiencies which
12provide cause for decertification; (2) the Department shall
13place the designating county or municipality on probationary
14status for at least 6 months during which time corrective
15action may be achieved in the Enterprise Zone by the
16designating county or municipality; and (3) the Department
17shall conduct at least one public hearing within the Zone. If
18such corrective action is not achieved during the probationary
19period, the Department shall issue an amended certificate
20signed by the Director of the Department provisionally
21decertifying the Enterprise Zone as of the scheduled
22termination date of the then-current designation. If the
23provisionally decertified Zone was approved and designated
24after the 102nd General Assembly and has been in existence for
25less than 15 years, such Zone shall not be eligible for an
26additional 10-year designation after the expiration date of

 

 

SB0664 Engrossed- 26 -LRB102 17106 RJF 22535 b

1the original Zone set forth in subsection (c) of Section 5.3.
2Further, if such corrective action is not achieved during the
3probationary period provided for in this Section, following
4such probationary period the Zone becomes available for a
5different area to compete for designation.
6    (e) In the event of a decertification, provisional
7decertification, or an amendment reducing the length of the
8term or the area of an Enterprise Zone or the adoption of an
9ordinance reducing or eliminating tax benefits in an
10Enterprise Zone, all benefits previously extended within the
11Zone pursuant to this Act or pursuant to any other Illinois law
12providing benefits specifically to or within Enterprise Zones
13shall remain in effect for the original stated term of the
14Enterprise Zone, with respect to business enterprises within
15the Zone on the effective date of such decertification,
16provisional decertification, or amendment, and with respect to
17individuals participating in urban homestead programs under
18this Act.
19    (f) Except as otherwise provided in Section 5.4.1, with
20respect to business enterprises (or expansions thereof) which
21are proposed or under development within a Zone at the time of
22a decertification or an amendment reducing the length of the
23term of the Zone, or excluding from the Zone area the site of
24the proposed enterprise, or an ordinance reducing or
25eliminating tax benefits in a Zone, such business enterprise
26shall be entitled to the benefits previously applicable within

 

 

SB0664 Engrossed- 27 -LRB102 17106 RJF 22535 b

1the Zone for the original stated term of the Zone, if the
2business enterprise establishes:
3        (i) that the proposed business enterprise or expansion
4    has been committed to be located within the Zone;
5        (ii) that substantial and binding financial
6    obligations have been made towards the development of such
7    enterprise; and
8        (iii) that such commitments have been made in
9    reasonable reliance on the benefits and programs which
10    were to have been applicable to the enterprise by reason
11    of the Zone, including in the case of a reduction in term
12    of a zone, the original length of the term.
13    In declaratory judgment actions under this paragraph, the
14Department and the designating municipality or county shall be
15necessary parties defendant.
16(Source: P.A. 90-258, eff. 7-30-97.)
 
17    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
18    Sec. 5.5. High Impact Business.
19    (a) In order to respond to unique opportunities to assist
20in the encouragement, development, growth, and expansion of
21the private sector through large scale investment and
22development projects, the Department is authorized to receive
23and approve applications for the designation of "High Impact
24Businesses" in Illinois subject to the following conditions:
25        (1) such applications may be submitted at any time

 

 

SB0664 Engrossed- 28 -LRB102 17106 RJF 22535 b

1    during the year;
2        (2) such business is not located, at the time of
3    designation, in an enterprise zone designated pursuant to
4    this Act;
5        (3) the business intends to do one or more of the
6    following:
7            (A) the business intends to make a minimum
8        investment of $12,000,000 which will be placed in
9        service in qualified property and intends to create
10        500 full-time equivalent jobs at a designated location
11        in Illinois or intends to make a minimum investment of
12        $30,000,000 which will be placed in service in
13        qualified property and intends to retain 1,500
14        full-time retained jobs at a designated location in
15        Illinois. The business must certify in writing that
16        the investments would not be placed in service in
17        qualified property and the job creation or job
18        retention would not occur without the tax credits and
19        exemptions set forth in subsection (b) of this
20        Section. The terms "placed in service" and "qualified
21        property" have the same meanings as described in
22        subsection (h) of Section 201 of the Illinois Income
23        Tax Act; or
24            (B) the business intends to establish a new
25        electric generating facility at a designated location
26        in Illinois. "New electric generating facility", for

 

 

SB0664 Engrossed- 29 -LRB102 17106 RJF 22535 b

1        purposes of this Section, means a newly-constructed
2        electric generation plant or a newly-constructed
3        generation capacity expansion at an existing electric
4        generation plant, including the transmission lines and
5        associated equipment that transfers electricity from
6        points of supply to points of delivery, and for which
7        such new foundation construction commenced not sooner
8        than July 1, 2001. Such facility shall be designed to
9        provide baseload electric generation and shall operate
10        on a continuous basis throughout the year; and (i)
11        shall have an aggregate rated generating capacity of
12        at least 1,000 megawatts for all new units at one site
13        if it uses natural gas as its primary fuel and
14        foundation construction of the facility is commenced
15        on or before December 31, 2004, or shall have an
16        aggregate rated generating capacity of at least 400
17        megawatts for all new units at one site if it uses coal
18        or gases derived from coal as its primary fuel and
19        shall support the creation of at least 150 new
20        Illinois coal mining jobs, or (ii) shall be funded
21        through a federal Department of Energy grant before
22        December 31, 2010 and shall support the creation of
23        Illinois coal-mining jobs, or (iii) shall use coal
24        gasification or integrated gasification-combined cycle
25        units that generate electricity or chemicals, or both,
26        and shall support the creation of Illinois coal-mining

 

 

SB0664 Engrossed- 30 -LRB102 17106 RJF 22535 b

1        jobs. The business must certify in writing that the
2        investments necessary to establish a new electric
3        generating facility would not be placed in service and
4        the job creation in the case of a coal-fueled plant
5        would not occur without the tax credits and exemptions
6        set forth in subsection (b-5) of this Section. The
7        term "placed in service" has the same meaning as
8        described in subsection (h) of Section 201 of the
9        Illinois Income Tax Act; or
10            (B-5) the business intends to establish a new
11        gasification facility at a designated location in
12        Illinois. As used in this Section, "new gasification
13        facility" means a newly constructed coal gasification
14        facility that generates chemical feedstocks or
15        transportation fuels derived from coal (which may
16        include, but are not limited to, methane, methanol,
17        and nitrogen fertilizer), that supports the creation
18        or retention of Illinois coal-mining jobs, and that
19        qualifies for financial assistance from the Department
20        before December 31, 2010. A new gasification facility
21        does not include a pilot project located within
22        Jefferson County or within a county adjacent to
23        Jefferson County for synthetic natural gas from coal;
24        or
25            (C) the business intends to establish production
26        operations at a new coal mine, re-establish production

 

 

SB0664 Engrossed- 31 -LRB102 17106 RJF 22535 b

1        operations at a closed coal mine, or expand production
2        at an existing coal mine at a designated location in
3        Illinois not sooner than July 1, 2001; provided that
4        the production operations result in the creation of
5        150 new Illinois coal mining jobs as described in
6        subdivision (a)(3)(B) of this Section, and further
7        provided that the coal extracted from such mine is
8        utilized as the predominant source for a new electric
9        generating facility. The business must certify in
10        writing that the investments necessary to establish a
11        new, expanded, or reopened coal mine would not be
12        placed in service and the job creation would not occur
13        without the tax credits and exemptions set forth in
14        subsection (b-5) of this Section. The term "placed in
15        service" has the same meaning as described in
16        subsection (h) of Section 201 of the Illinois Income
17        Tax Act; or
18            (D) the business intends to construct new
19        transmission facilities or upgrade existing
20        transmission facilities at designated locations in
21        Illinois, for which construction commenced not sooner
22        than July 1, 2001. For the purposes of this Section,
23        "transmission facilities" means transmission lines
24        with a voltage rating of 115 kilovolts or above,
25        including associated equipment, that transfer
26        electricity from points of supply to points of

 

 

SB0664 Engrossed- 32 -LRB102 17106 RJF 22535 b

1        delivery and that transmit a majority of the
2        electricity generated by a new electric generating
3        facility designated as a High Impact Business in
4        accordance with this Section. The business must
5        certify in writing that the investments necessary to
6        construct new transmission facilities or upgrade
7        existing transmission facilities would not be placed
8        in service without the tax credits and exemptions set
9        forth in subsection (b-5) of this Section. The term
10        "placed in service" has the same meaning as described
11        in subsection (h) of Section 201 of the Illinois
12        Income Tax Act; or
13            (E) the business intends to establish a new wind
14        power facility at a designated location in Illinois.
15        For purposes of this Section, "new wind power
16        facility" means a newly constructed electric
17        generation facility, or a newly constructed expansion
18        of an existing electric generation facility, placed in
19        service on or after July 1, 2009, that generates
20        electricity using wind energy devices, and such
21        facility shall be deemed to include all associated
22        transmission lines, substations, and other equipment
23        related to the generation of electricity from wind
24        energy devices. For purposes of this Section, "wind
25        energy device" means any device, with a nameplate
26        capacity of at least 0.5 megawatts, that is used in the

 

 

SB0664 Engrossed- 33 -LRB102 17106 RJF 22535 b

1        process of converting kinetic energy from the wind to
2        generate electricity; or
3            (F) the business commits to (i) make a minimum
4        investment of $500,000,000, which will be placed in
5        service in a qualified property, (ii) create 125
6        full-time equivalent jobs at a designated location in
7        Illinois, (iii) establish a fertilizer plant at a
8        designated location in Illinois that complies with the
9        set-back standards as described in Table 1: Initial
10        Isolation and Protective Action Distances in the 2012
11        Emergency Response Guidebook published by the United
12        States Department of Transportation, (iv) pay a
13        prevailing wage for employees at that location who are
14        engaged in construction activities, and (v) secure an
15        appropriate level of general liability insurance to
16        protect against catastrophic failure of the fertilizer
17        plant or any of its constituent systems; in addition,
18        the business must agree to enter into a construction
19        project labor agreement including provisions
20        establishing wages, benefits, and other compensation
21        for employees performing work under the project labor
22        agreement at that location; for the purposes of this
23        Section, "fertilizer plant" means a newly constructed
24        or upgraded plant utilizing gas used in the production
25        of anhydrous ammonia and downstream nitrogen
26        fertilizer products for resale; for the purposes of

 

 

SB0664 Engrossed- 34 -LRB102 17106 RJF 22535 b

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

 

 

SB0664 Engrossed- 35 -LRB102 17106 RJF 22535 b

1Section have been placed in service in qualified properties
2and, in the case of the exemptions described in the Public
3Utilities Act and Section 1d of the Retailers' Occupation Tax
4Act, the minimum full-time equivalent jobs or full-time
5retained jobs set forth in subdivision (a)(3)(A) of this
6Section have been created or retained. Businesses designated
7as High Impact Businesses under this Section shall also
8qualify for the exemption described in Section 5l of the
9Retailers' Occupation Tax Act. The credit provided in
10subsection (h) of Section 201 of the Illinois Income Tax Act
11shall be applicable to investments in qualified property as
12set forth in subdivision (a)(3)(A) of this Section.
13    (b-5) Businesses designated as High Impact Businesses
14pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
15and (a)(3)(D) of this Section shall qualify for the credits
16and exemptions described in the following Acts: Section 51 of
17the Retailers' Occupation Tax Act, Section 9-222 and Section
189-222.1A of the Public Utilities Act, and subsection (h) of
19Section 201 of the Illinois Income Tax Act; however, the
20credits and exemptions authorized under Section 9-222 and
21Section 9-222.1A of the Public Utilities Act, and subsection
22(h) of Section 201 of the Illinois Income Tax Act shall not be
23authorized until the new electric generating facility, the new
24gasification facility, the new transmission facility, or the
25new, expanded, or reopened coal mine is operational, except
26that a new electric generating facility whose primary fuel

 

 

SB0664 Engrossed- 36 -LRB102 17106 RJF 22535 b

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

 

 

SB0664 Engrossed- 37 -LRB102 17106 RJF 22535 b

1the Department with the prospective plan for which 1,500
2full-time retained jobs would be eliminated in the event that
3the business is not designated.
4    (e) Except for new wind power facilities contemplated
5under subdivision (a)(3)(E) of this Section, new proposed
6facilities which apply for designation as High Impact Business
7must provide the Department with proof of alternative
8non-Illinois sites which would receive the proposed investment
9and job creation in the event that the business is not
10designated as a High Impact Business.
11    (f) Except for businesses contemplated under subdivision
12(a)(3)(E) of this Section, in the event that a business is
13designated a High Impact Business and it is later determined
14after reasonable notice and an opportunity for a hearing as
15provided under the Illinois Administrative Procedure Act, that
16the business would have placed in service in qualified
17property the investments and created or retained the requisite
18number of jobs without the benefits of the High Impact
19Business designation, the Department shall be required to
20immediately revoke the designation and notify the Director of
21the Department of Revenue who shall begin proceedings to
22recover all wrongfully exempted State taxes with interest. The
23business shall also be ineligible for all State funded
24Department programs for a period of 10 years.
25    (g) The Department shall revoke a High Impact Business
26designation if the participating business fails to comply with

 

 

SB0664 Engrossed- 38 -LRB102 17106 RJF 22535 b

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

 

 

SB0664 Engrossed- 39 -LRB102 17106 RJF 22535 b

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

 

 

SB0664 Engrossed- 40 -LRB102 17106 RJF 22535 b

1    "High Impact Business construction jobs project" means
2building a structure or building or making improvements of any
3kind to real property, undertaken and commissioned by a
4business that was designated as a High Impact Business by the
5Department. The term "High Impact Business construction jobs
6project" does not include the routine operation, routine
7repair, or routine maintenance of existing structures,
8buildings, or real property.
9    "Incremental income tax" means the total amount withheld
10during the taxable year from the compensation of High Impact
11Business construction job employees.
12    "Underserved area" means a geographic area that meets one
13or more of the following conditions:
14        (1) the area has a poverty rate of at least 20%
15    according to the latest American Community Survey federal
16    decennial census;
17        (2) 35% 75% or more of the families with children in
18    the area are living below 130% of the poverty line,
19    according to the latest American Community Survey children
20    in the area participate in the federal free lunch program
21    according to reported statistics from the State Board of
22    Education;
23        (3) at least 20% of the households in the area receive
24    assistance under the Supplemental Nutrition Assistance
25    Program (SNAP); or
26        (4) the area has an average unemployment rate, as

 

 

SB0664 Engrossed- 41 -LRB102 17106 RJF 22535 b

1    determined by the Illinois Department of Employment
2    Security, that is more than 120% of the national
3    unemployment average, as determined by the U.S. Department
4    of Labor, for a period of at least 2 consecutive calendar
5    years preceding the date of the application.
6    (j) Each contractor and subcontractor who is engaged in
7and executing a High Impact Business Construction jobs
8project, as defined under subsection (i) of this Section, for
9a business that is entitled to a credit pursuant to subsection
10(i) of this Section shall:
11        (1) make and keep, for a period of 5 years from the
12    date of the last payment made on or after June 5, 2019 (the
13    effective date of Public Act 101-9) this amendatory Act of
14    the 101st General Assembly on a contract or subcontract
15    for a High Impact Business Construction Jobs Project,
16    records for all laborers and other workers employed by the
17    contractor or subcontractor on the project; the records
18    shall include:
19            (A) the worker's name;
20            (B) the worker's address;
21            (C) the worker's telephone number, if available;
22            (D) the worker's social security number;
23            (E) the worker's classification or
24        classifications;
25            (F) the worker's gross and net wages paid in each
26        pay period;

 

 

SB0664 Engrossed- 42 -LRB102 17106 RJF 22535 b

1            (G) the worker's number of hours worked each day;
2            (H) the worker's starting and ending times of work
3        each day;
4            (I) the worker's hourly wage rate; and
5            (J) the worker's hourly overtime wage rate;
6        (2) no later than the 15th day of each calendar month,
7    provide a certified payroll for the immediately preceding
8    month to the taxpayer in charge of the High Impact
9    Business construction jobs project; within 5 business days
10    after receiving the certified payroll, the taxpayer shall
11    file the certified payroll with the Department of Labor
12    and the Department of Commerce and Economic Opportunity; a
13    certified payroll must be filed for only those calendar
14    months during which construction on a High Impact Business
15    construction jobs project has occurred; the certified
16    payroll shall consist of a complete copy of the records
17    identified in paragraph (1) of this subsection (j), but
18    may exclude the starting and ending times of work each
19    day; the certified payroll shall be accompanied by a
20    statement signed by the contractor or subcontractor or an
21    officer, employee, or agent of the contractor or
22    subcontractor which avers that:
23            (A) he or she has examined the certified payroll
24        records required to be submitted by the Act and such
25        records are true and accurate; and
26            (B) the contractor or subcontractor is aware that

 

 

SB0664 Engrossed- 43 -LRB102 17106 RJF 22535 b

1        filing a certified payroll that he or she knows to be
2        false is a Class A misdemeanor.
3    A general contractor is not prohibited from relying on a
4certified payroll of a lower-tier subcontractor, provided the
5general contractor does not knowingly rely upon a
6subcontractor's false certification.
7    Any contractor or subcontractor subject to this
8subsection, and any officer, employee, or agent of such
9contractor or subcontractor whose duty as an officer,
10employee, or agent it is to file a certified payroll under this
11subsection, who willfully fails to file such a certified
12payroll on or before the date such certified payroll is
13required by this paragraph to be filed and any person who
14willfully files a false certified payroll that is false as to
15any material fact is in violation of this Act and guilty of a
16Class A misdemeanor.
17    The taxpayer in charge of the project shall keep the
18records submitted in accordance with this subsection on or
19after June 5, 2019 (the effective date of Public Act 101-9)
20this amendatory Act of the 101st General Assembly for a period
21of 5 years from the date of the last payment for work on a
22contract or subcontract for the High Impact Business
23construction jobs project.
24    The records submitted in accordance with this subsection
25shall be considered public records, except an employee's
26address, telephone number, and social security number, and

 

 

SB0664 Engrossed- 44 -LRB102 17106 RJF 22535 b

1made available in accordance with the Freedom of Information
2Act. The Department of Labor shall accept any reasonable
3submissions by the contractor that meet the requirements of
4this subsection (j) and shall share the information with the
5Department in order to comply with the awarding of a High
6Impact Business construction jobs credit. A contractor,
7subcontractor, or public body may retain records required
8under this Section in paper or electronic format.
9    (k) Upon 7 business days' notice, each contractor and
10subcontractor shall make available for inspection and copying
11at a location within this State during reasonable hours, the
12records identified in this subsection (j) to the taxpayer in
13charge of the High Impact Business construction jobs project,
14its officers and agents, the Director of the Department of
15Labor and his or her deputies and agents, and to federal,
16State, or local law enforcement agencies and prosecutors.
17(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
18    (20 ILCS 655/8.1)
19    Sec. 8.1. Accounting.
20    (a) Any business receiving tax incentives due to its
21location within an Enterprise Zone or its designation as a
22High Impact Business must annually report to the Department of
23Revenue information reasonably required by the Department of
24Revenue to enable the Department to verify and calculate the
25total Enterprise Zone or High Impact Business tax benefits for

 

 

SB0664 Engrossed- 45 -LRB102 17106 RJF 22535 b

1property taxes and taxes imposed by the State that are
2received by the business, broken down by incentive category
3and enterprise zone, if applicable. Reports will be due no
4later than May 31 of each year and shall cover the previous
5calendar year. The first report will be for the 2012 calendar
6year and will be due no later than May 31, 2013. Failure to
7report data may result in ineligibility to receive incentives.
8To the extent that a business receiving tax incentives has
9obtained an Enterprise Zone Building Materials Exemption
10Certificate or a High Impact Business Building Materials
11Exemption Certificate, that business is required to report
12those building materials exemption benefits only under
13subsection (a-5) of this Section. No additional reporting for
14those building materials exemption benefits is required under
15this subsection (a). In addition, if the Department determines
16that 80% or more of the businesses receiving tax incentives
17because of their location within a particular Enterprise Zone
18failed to submit the information required under this
19subsection (a) to the Department in any calendar year, then
20the Enterprise Zone may be decertified by the Department. If
21the Department is able to determine that specific businesses
22are failing to submit the information required under this
23subsection (a) to the Department in any calendar year to the
24Zone Administrator, regardless of the Administrator's efforts
25to enforce reporting, the Department may, at its discretion,
26suspend the benefits to the specific business rather than an

 

 

SB0664 Engrossed- 46 -LRB102 17106 RJF 22535 b

1outright decertification of the particular Enterprise Zone.
2The Department, in consultation with the Department of
3Revenue, is authorized to adopt rules governing ineligibility
4to receive exemptions, including the length of ineligibility.
5Factors to be considered in determining whether a business is
6ineligible shall include, but are not limited to, prior
7compliance with the reporting requirements, cooperation in
8discontinuing and correcting violations, the extent of the
9violation, and whether the violation was willful or
10inadvertent.
11    (a-5) Each contractor or other entity that has been issued
12an Enterprise Zone Building Materials Exemption Certificate
13under Section 5k of the Retailers' Occupation Tax Act or a High
14Impact Business Building Materials Exemption Certificate under
15Section 5l of the Retailers' Occupation Tax Act shall annually
16report to the Department of Revenue the total value of the
17Enterprise Zone or High Impact Business building materials
18exemption from State taxes. Reports shall contain information
19reasonably required by the Department of Revenue to enable it
20to verify and calculate the total tax benefits for taxes
21imposed by the State, and shall be broken down by Enterprise
22Zone. Reports are due no later than May 31 of each year and
23shall cover the previous calendar year. The first report will
24be for the 2013 calendar year and will be due no later than May
2531, 2014. Failure to report data may result in revocation of
26the Enterprise Zone Building Materials Exemption Certificate

 

 

SB0664 Engrossed- 47 -LRB102 17106 RJF 22535 b

1or High Impact Business Building Materials Exemption
2Certificate issued to the contractor or other entity.
3    The Department of Revenue is authorized to adopt rules
4governing revocation determinations, including the length of
5revocation. Factors to be considered in revocations shall
6include, but are not limited to, prior compliance with the
7reporting requirements, cooperation in discontinuing and
8correcting violations, and whether the certificate was used
9unlawfully during the preceding year.
10    (b) Each person required to file a return under the Gas
11Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
12Tax Act, or the Telecommunications Excise Tax Act shall file,
13on or before May 31 of each year, a report with the Department
14of Revenue, in the manner and form required by the Department
15of Revenue, containing information reasonably required by the
16Department of Revenue to enable the Department of Revenue to
17calculate the amount of the deduction for taxes imposed by the
18State that is taken under each Act, respectively, due to the
19location of a business in an Enterprise Zone or its
20designation as a High Impact Business. The report shall be
21itemized by business and the business location address.
22    (c) Employers shall report their job creation, retention,
23and capital investment numbers within the zone annually to the
24Department of Revenue no later than May 31 of each calendar
25year. High Impact Businesses shall report their job creation,
26retention, and capital investment numbers to the Department of

 

 

SB0664 Engrossed- 48 -LRB102 17106 RJF 22535 b

1Revenue no later than May 31 of each year. With respect to job
2creation or retention, employers and High Impact Businesses
3shall use best efforts to submit diversity information related
4to the gender and ethnicity of such employees.
5    (d) The Department of Revenue will aggregate and collect
6the tax, job, and capital investment data by Enterprise Zone
7and High Impact Business and report this information,
8formatted to exclude company-specific proprietary information,
9to the Department and the Board by August 1, 2013, and by
10August 1 of every calendar year thereafter. The Department
11will include this information in their required reports under
12Section 6 of this Act. The Board shall consider this
13information during the reviews required under subsection (d-5)
14of Section 5.4 of this Act and subsection (c) of Section 5.3 of
15this Act.
16    (e) The Department of Revenue, in its discretion, may
17require that the reports filed under this Section be submitted
18electronically.
19    (f) The Department of Revenue shall have the authority to
20adopt rules as are reasonable and necessary to implement the
21provisions of this Section.
22(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
23    (20 ILCS 655/12-9)  (from Ch. 67 1/2, par. 626)
24    Sec. 12-9. Report. On January 1 of each year, the
25Department shall report on its operation of the Fund for the

 

 

SB0664 Engrossed- 49 -LRB102 17106 RJF 22535 b

1preceding fiscal year to the Governor and the General
2Assembly. For any fiscal year in which no operations are
3conducted by the Department because no funds were appropriated
4to the Fund, the report outlined by this Section is not
5required.
6(Source: P.A. 84-165.)
 
7    (20 ILCS 655/13)
8    Sec. 13. Enterprise Zone construction jobs credit.
9    (a) Beginning on January 1, 2021, a business entity in a
10certified Enterprise Zone that makes a capital investment of
11at least $10,000,000 in an Enterprise Zone construction jobs
12project may receive an Enterprise Zone construction jobs
13credit against the tax imposed under subsections (a) and (b)
14of Section 201 of the Illinois Income Tax Act in an amount
15equal to 50% of the amount of the incremental income tax
16attributable to Enterprise Zone construction jobs credit
17employees employed in the course of completing an Enterprise
18Zone construction jobs project. However, the Enterprise Zone
19construction jobs credit may equal 75% of the amount of the
20incremental income tax attributable to Enterprise Zone
21construction jobs credit employees if the project is located
22in an underserved area.
23    (b) A business entity seeking a credit under this Section
24must submit an application to the Department and must receive
25approval from the designating municipality or county and the

 

 

SB0664 Engrossed- 50 -LRB102 17106 RJF 22535 b

1Department for the Enterprise Zone construction jobs credit
2project. The application must describe the nature and benefit
3of the project to the certified Enterprise Zone and its
4potential contributors. The total aggregate amount of credits
5awarded under the Blue Collar Jobs Act (Article 20 of Public
6Act 101-9 this amendatory Act of the 101st General Assembly)
7shall not exceed $20,000,000 in any State fiscal year.
8    Within 45 days after receipt of an application, the
9Department shall give notice to the applicant as to whether
10the application has been approved or disapproved. If the
11Department disapproves the application, it shall specify the
12reasons for this decision and allow 60 days for the applicant
13to amend and resubmit its application. The Department shall
14provide assistance upon request to applicants. Resubmitted
15applications shall receive the Department's approval or
16disapproval within 30 days after the application is
17resubmitted. Those resubmitted applications satisfying initial
18Department objectives shall be approved unless reasonable
19circumstances warrant disapproval.
20    On an annual basis, the designated zone organization shall
21furnish a statement to the Department on the programmatic and
22financial status of any approved project and an audited
23financial statement of the project.
24    The Department shall certify to the Department of Revenue
25the identity of taxpayers who are eligible for the credits and
26the amount of credits that are claimed pursuant to

 

 

SB0664 Engrossed- 51 -LRB102 17106 RJF 22535 b

1subparagraph (8) of subsection (f) of Section 201 the Illinois
2Income Tax Act.
3    The Enterprise Zone construction jobs credit project must
4be undertaken by the business entity in the course of
5completing a project that complies with the criteria contained
6in Section 4 of this Act and is undertaken in a certified
7Enterprise Zone. The Department shall adopt any necessary
8rules for the implementation of this subsection (b).
9    (c) Any business entity that receives an Enterprise Zone
10construction jobs credit shall maintain a certified payroll
11pursuant to subsection (d) of this Section.
12    (d) Each contractor and subcontractor who is engaged in
13and is executing an Enterprise Zone construction jobs credit
14project for a business that is entitled to a credit pursuant to
15this Section shall:
16        (1) make and keep, for a period of 5 years from the
17    date of the last payment made on or after June 5, 2019 (the
18    effective date of Public Act 101-9) this amendatory Act of
19    the 101st General Assembly on a contract or subcontract
20    for an Enterprise Zone construction jobs credit project,
21    records for all laborers and other workers employed by
22    them on the project; the records shall include:
23            (A) the worker's name;
24            (B) the worker's address;
25            (C) the worker's telephone number, if available;
26            (D) the worker's social security number;

 

 

SB0664 Engrossed- 52 -LRB102 17106 RJF 22535 b

1            (E) the worker's classification or
2        classifications;
3            (F) the worker's gross and net wages paid in each
4        pay period;
5            (G) the worker's number of hours worked each day;
6            (H) the worker's starting and ending times of work
7        each day;
8            (I) the worker's hourly wage rate; and
9            (J) the worker's hourly overtime wage rate;
10        (2) no later than the 15th day of each calendar month,
11    provide a certified payroll for the immediately preceding
12    month to the taxpayer in charge of the project; within 5
13    business days after receiving the certified payroll, the
14    taxpayer shall file the certified payroll with the
15    Department of Labor and the Department of Commerce and
16    Economic Opportunity; a certified payroll must be filed
17    for only those calendar months during which construction
18    on an Enterprise Zone construction jobs project has
19    occurred; the certified payroll shall consist of a
20    complete copy of the records identified in paragraph (1)
21    of this subsection (d), but may exclude the starting and
22    ending times of work each day; the certified payroll shall
23    be accompanied by a statement signed by the contractor or
24    subcontractor or an officer, employee, or agent of the
25    contractor or subcontractor which avers that:
26            (A) he or she has examined the certified payroll

 

 

SB0664 Engrossed- 53 -LRB102 17106 RJF 22535 b

1        records required to be submitted by the Act and such
2        records are true and accurate; and
3            (B) the contractor or subcontractor is aware that
4        filing a certified payroll that he or she knows to be
5        false is a Class A misdemeanor.
6    A general contractor is not prohibited from relying on a
7certified payroll of a lower-tier subcontractor, provided the
8general contractor does not knowingly rely upon a
9subcontractor's false certification.
10    Any contractor or subcontractor subject to this
11subsection, and any officer, employee, or agent of such
12contractor or subcontractor whose duty as an officer,
13employee, or agent it is to file a certified payroll under this
14subsection, who willfully fails to file such a certified
15payroll on or before the date such certified payroll is
16required by this paragraph to be filed and any person who
17willfully files a false certified payroll that is false as to
18any material fact is in violation of this Act and guilty of a
19Class A misdemeanor.
20    The taxpayer in charge of the project shall keep the
21records submitted in accordance with this subsection on or
22after June 5, 2019 (the effective date of Public Act 101-9)
23this amendatory Act of the 101st General Assembly for a period
24of 5 years from the date of the last payment for work on a
25contract or subcontract for the project.
26    The records submitted in accordance with this subsection

 

 

SB0664 Engrossed- 54 -LRB102 17106 RJF 22535 b

1shall be considered public records, except an employee's
2address, telephone number, and social security number, and
3made available in accordance with the Freedom of Information
4Act. The Department of Labor shall accept any reasonable
5submissions by the contractor that meet the requirements of
6this subsection and shall share the information with the
7Department in order to comply with the awarding of Enterprise
8Zone construction jobs credits. A contractor, subcontractor,
9or public body may retain records required under this Section
10in paper or electronic format.
11    Upon 7 business days' notice, the contractor and each
12subcontractor shall make available for inspection and copying
13at a location within this State during reasonable hours, the
14records identified in paragraph (1) of this subsection to the
15taxpayer in charge of the project, its officers and agents,
16the Director of Labor and his or her deputies and agents, and
17to federal, State, or local law enforcement agencies and
18prosecutors.
19    (e) As used in this Section:
20    "Enterprise Zone construction jobs credit" means an amount
21equal to 50% (or 75% if the project is located in an
22underserved area) of the incremental income tax attributable
23to Enterprise Zone construction jobs credit employees.
24    "Enterprise Zone construction jobs credit employee" means
25a laborer or worker who is employed by an Illinois contractor
26or subcontractor in the actual construction work on the site

 

 

SB0664 Engrossed- 55 -LRB102 17106 RJF 22535 b

1of an Enterprise Zone construction jobs credit project.
2    "Enterprise Zone construction jobs credit project" means
3building a structure or building or making improvements of any
4kind to real property commissioned and paid for by a business
5that has applied and been approved for an Enterprise Zone
6construction jobs credit pursuant to this Section. "Enterprise
7Zone construction jobs credit project" does not include the
8routine operation, routine repair, or routine maintenance of
9existing structures, buildings, or real property.
10    "Incremental income tax" means the total amount withheld
11during the taxable year from the compensation of Enterprise
12Zone construction jobs credit employees.
13    "Underserved area" means a geographic area that meets one
14or more of the following conditions:
15        (1) the area has a poverty rate of at least 20%
16    according to the latest American Community Survey federal
17    decennial census;
18        (2) 35% 75% or more of the families with children in
19    the area are living below 130% of the poverty line,
20    according to the latest American Community Survey children
21    in the area participate in the federal free lunch program
22    according to reported statistics from the State Board of
23    Education;
24        (3) at least 20% of the households in the area receive
25    assistance under the Supplemental Nutrition Assistance
26    Program (SNAP); or

 

 

SB0664 Engrossed- 56 -LRB102 17106 RJF 22535 b

1        (4) the area has an average unemployment rate, as
2    determined by the Illinois Department of Employment
3    Security, that is more than 120% of the national
4    unemployment average, as determined by the U.S. Department
5    of Labor, for a period of at least 2 consecutive calendar
6    years preceding the date of the application.
7(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)