Illinois General Assembly - Full Text of SB2977
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Full Text of SB2977  98th General Assembly




State of Illinois
2013 and 2014


Introduced 2/4/2014, by Sen. Linda Holmes


35 ILCS 5/224 new
65 ILCS 115/10-10.1

    Amends the Illinois Income Tax Act. Provides that taxpayers are entitled to an income tax credit against the taxes imposed under the River Edge Redevelopment Zone Act equal to 100% of the reasonable and prudent costs incurred by a public utility. Provides that any amount of credit that exceeds a taxpayer's liabilities shall be refunded to the taxpayer. Amends the River Edge Redevelopment Zone Act. Restricts the amount of costs recovered by a public utility from retail customers to $5,000,000. Provides for a repeal date of July 1, 2020 (currently, July 29, 2017).

LRB098 19609 JLK 54803 b






SB2977LRB098 19609 JLK 54803 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 224 as follows:
6    (35 ILCS 5/224 new)
7    Sec. 224. River Edge Redevelopment Zone credit.
8    (a) For taxable years beginning on or after January 1,
92015, a taxpayer who has received a tax credit award under the
10River Edge Redevelopment Zone Act is entitled to a credit
11against the taxes imposed under subsections (a) and (b) of
12Section 201 of this Act in an amount determined under that Act
13equal to 100% of the reasonable and prudent costs incurred by a
14public utility during the taxable year pursuant to subsection
15(c) of that Act which are not paid for by retail customers
16located in the municipality or municipalities in which the
17removal or relocation occurs.
18    (b) For taxable years beginning on or after January 1,
192015, if the amount of the credit imposed under this Section
20exceeds the income tax liability for the applicable tax year,
21then the excess credit shall be refunded to the taxpayer.
22    (c) This Section is subject to the provisions of Section
23250 of this Act.



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1    Section 10. The River Edge Redevelopment Zone Act is
2amended by changing Section 10-10.1 as follows:
3    (65 ILCS 115/10-10.1)
4    (Section scheduled to be repealed on July 29, 2017)
5    Sec. 10-10.1. Utility facilities.
6    (a) It is in the public interest that costs for
7redevelopment in a River Edge Redevelopment Zone impacting a
8public utility, as defined by Section 3-105 of the Public
9Utilities Act, or a public utility's property, as described in
10subsection (b) of this Section, should not be allocated solely
11to the entity engaging in economic redevelopment because this
12economic redevelopment benefits the utility service territory
13as a whole and not just the particular area where the
14redevelopment occurs.
15    (b) A public utility that has facilities or land affected
16by the clean-up, remediation, and redevelopment of a River Edge
17Redevelopment Zone and that incurs costs related to the
18remediation or the removing or relocating of utility facilities
19in the River Edge Redevelopment Zone may recover these costs
20pursuant to subsections (c) and (d) of this Section.
21    (c) The reasonable and prudent costs incurred by a public
22utility for facility removal or relocation described in
23subsection (b) of this Section shall be shared equally among
24the public utility, the municipality in which the facility is



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1located, and any landowner that is located within 100 feet of
2the utility facility and that directly benefits from the
3removal or relocation of the utility facility or the
4redevelopment of the public utility's land. In no event shall
5the costs incurred by each municipality or landowner for a
6given project exceed an equal percentage of the total direct,
7indirect, and overhead project costs, or $1,000,000 $3,667,000
8each, whichever amount is less. The reasonable and prudent
9costs incurred by the public utility for facility removal or
10relocation that are not the responsibility of the municipality
11or landowner under this subsection (c) shall be recovered by
12the public utility from all retail customers located in the
13municipality or municipalities in which the removal or
14relocation occurs through an appropriate tariff mechanism, and
15the public utility may record and defer such costs as a
16regulatory asset until they are so recovered. In no event shall
17the costs recovered by the public utility from all retail
18customers located in the municipality or municipalities in
19which the removal or relocation occurs shall exceed $5,000,000.
20    (d) The Illinois Commerce Commission shall allow a public
21utility described in subsection (b) to fully recover from all
22retail customers in its service territory all reasonable and
23prudent costs that it incurs in conducting environmental
24remediation in the River Edge Redevelopment Zone related to the
25removal or relocation of utility facilities in the River Edge
26Redevelopment Zone, including, but not limited to,



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1transmission and distribution lines, transformers, and poles.
2These environmental remediation costs also include, but are not
3limited to, direct, indirect, and overhead costs calculated by
4the public utility for taxes or other charges, cost adjustments
5made after the project has begun, and any other environmental
6remediation-related charges. The public utility shall record
7and defer such costs as a regulatory asset to be included in
8the public utility's total rate base and amortized in the
9public utility's next filing for a general increase in rates
10over a reasonable period that is shorter than the life of the
11affected facility or facilities. Such regulatory assets shall
12be collected from all residential and commercial ratepayers
13system-wide, and not only from ratepayers in the municipality's
14corporate limits. In the event the River Edge Redevelopment
15Zone is decertified, the public utility shall be permitted to
16recover all reasonable and prudent costs incurred as of the
17date of the decertification, as well as all reasonable and
18prudent costs incurred subsequent to decertification that are
19necessary to complete any projects commenced while the River
20Edge Redevelopment Zone was certified, consistent with this
22    (e) This Section is repealed on July, 2020 7 years after
23the effective date of this amendatory Act of the 96th General
25(Source: P.A. 96-1404, eff. 7-29-10.)