HB2790 103RD GENERAL ASSEMBLY

LRB103 28653 HLH 55034 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2790

Introduced 2/16/2023, by Rep. William "Will" Davis

SYNOPSIS AS INTRODUCED:

New Act

Creates the Economic Development Property Tax Grant Program Act. Provides that the Department of Commerce and Economic Opportunity shall award property tax grants to each business that (i) is an approved applicant under the Invest in Illinois Act, the Economic Development for a Growing Economy Tax Credit Act, the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, or the Reimagining Electric Vehicles in Illinois Act and (ii) owns property in an underserved area. Sets forth the amount of the grants. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Economic Development Property Tax Grant Program Act.

Section 5. Definitions. As used in this Act:

"Base year property taxes" means the amount of property taxes billed for the subject parcels in the year before the year in which real property capital improvements are placed in service.

"Current year property taxes" means the amount of property taxes billed for the subject parcels in the year for which the grant is awarded.

"Department" means the Department of Commerce and Economic Opportunity.

"Qualified property" means property that is owned by a business that is eligible for a grant under this Act and that is located in an underserved area.

"Underserved area" has the meaning given to that term in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act.

Section 10. Property tax grants.

(a) In addition to any other incentives provided by law, the Department shall award property tax grants to each business that (i) is an approved applicant under the Invest in Illinois Act, the Economic Development for a Growing Economy Tax Credit Act, the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, or the Reimagining Electric Vehicles in Illinois Act and (ii) is located in an underserved area. Eligible businesses shall receive grants under this Act for qualified property beginning with the first year in which the real property capital improvements that are placed in service by the approved applicant result in an increased real property assessment and increased property taxes over the base year property taxes.

(b) For the first 5 years in which the applicant is eligible for a grant under this Section with respect to a specific qualified property, the amount of the grant shall be 100% of the difference between the current year property taxes for the property and the base year property taxes for the property. For the sixth through the tenth years in which the applicant is eligible for a grant under this Section with respect to a specific qualified property, the amount of the grant shall be as follows:

(1) in year 6, 90% of the difference between the current year property taxes and the base year property taxes;

(2) in year 7, 80% of the difference between the current year property taxes and the base year property taxes;

(3) in year 8, 70% of the difference between the current year property taxes and the base year property taxes;

(4) in year 9, 60% of the difference between the current year property taxes and the base year property taxes; and

(5) in year 10, 50% of the difference between the current year property taxes and the base year property taxes.

Section 15. Funding. Grants under this Act may be awarded from any source that may be used to make grants under the Invest in Illinois Act.

Section 20. Rules. The Department shall adopt rules for the implementation of this Act.

Section 99. Effective date. This Act takes effect upon becoming law.