Illinois General Assembly - Full Text of HB1564
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Full Text of HB1564  99th General Assembly

HB1564 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1564

 

Introduced , by Rep. David McSweeney

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.866 new
30 ILCS 105/5.868 new
30 ILCS 105/6z-101 new
30 ILCS 105/6z-102 new
35 ILCS 10/5-15
35 ILCS 10/5-77

    Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that no new Agreements may be entered into under the Act on or after the effective date of the amendatory Act. Amends the State Finance Act. Creates the Foster Homes and Specialized Foster Care Fund and the Permanent Unpaid Bill Repayment Fund. Provides that moneys in the Foster Homes and Specialized Foster Care Fund shall be used by the Department of Children and Family Services for the purpose of providing specialized care to children who are in a subsidized guardianship arrangement or under an adoption assistance agreement and require specialized services because of emotional, behavioral, developmental, or medical needs. Provides for transfers from the General Revenue Fund to the Foster Homes and Specialized Foster Care Fund. Provides that excess moneys in the Foster Homes and Specialized Foster Care Fund shall be transferred to the Permanent Unpaid Bill Repayment Fund. Provides that moneys in the Permanent Unpaid Bill Repayment Fund shall be used to make payments to bona fide creditors of the State. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1564LRB099 08192 HLH 28343 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.866, 5.868, 6z-101, and 6z-102 as follows:
 
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The Foster Homes and Specialized Foster Care
8Fund.
 
9    (30 ILCS 105/5.868 new)
10    Sec. 5.868. The Permanent Unpaid Bill Repayment Fund.
 
11    (30 ILCS 105/6z-101 new)
12    Sec. 6z-101. The Foster Homes and Specialized Foster Care
13Fund; creation.
14    (a) The Foster Homes and Specialized Foster Care Fund is
15hereby created as a special fund in the State treasury. Moneys
16in the Fund shall be used by the Department of Children and
17Family Services for the purpose of providing specialized care
18to children pursuant to the rules adopted under Section 5.30 of
19the Children and Family Services Act or any similar successor
20program. Moneys in the Fund are intended to supplement existing
21revenue sources and not to replace those existing revenue

 

 

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1sources.
2    (b) Notwithstanding any other provision of law, as soon as
3possible after the first day of the first State fiscal year
4beginning on or after the effective date of this amendatory Act
5of the 99th General Assembly, the State Comptroller shall order
6transferred and the State Treasurer shall transfer from the
7General Revenue Fund to the Foster Homes and Specialized Foster
8Care Fund the sum of $5,000,000. As soon as possible after the
9first day of the each State fiscal year thereafter, the State
10Comptroller shall order transferred and the State Treasurer
11shall transfer from the General Revenue Fund to the Foster
12Homes and Specialized Foster Care Fund an amount equal to the
13amount transferred under this subsection in the previous State
14fiscal year plus an additional $5,000,000, until such time as
15the amount required to be transferred under this subsection in
16a fiscal year reaches $50,000,000. At that point, the amount
17required to be transferred under this subsection shall be
18$50,000,000 in each State fiscal year.
19    (c) If, at the end of the lapse period for the State fiscal
20year in which the moneys are transferred under subsection (b),
21any unexpended and unobligated moneys remain in the Fund from
22the previous fiscal year's transfer, then the State Comptroller
23shall order transferred and the State Treasurer shall transfer
24those unexpended and unobligated moneys from the Foster Homes
25and Specialized Foster Care Fund to the Permanent Unpaid Bill
26Repayment Fund.
 

 

 

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1    (30 ILCS 105/6z-102 new)
2    Sec. 6z-102. The Permanent Unpaid Bill Repayment Fund;
3creation. The Permanent Unpaid Bill Repayment Fund is created
4as a special fund in the State Treasury. Moneys in the Fund
5shall be used to make payments to bona fide creditors of the
6State who have submitted bills or invoices to the State that
7were properly approved under rules adopted under Section 3-3 of
8the State Prompt Payment Act.
 
9    Section 10. The Economic Development for a Growing Economy
10Tax Credit Act is amended by changing Sections 5-15 and 5-77 as
11follows:
 
12    (35 ILCS 10/5-15)
13    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
14forth in this Act, a Taxpayer is entitled to a Credit against
15or, as described in subsection (g) of this Section, a payment
16towards taxes imposed pursuant to subsections (a) and (b) of
17Section 201 of the Illinois Income Tax Act that may be imposed
18on the Taxpayer for a taxable year beginning on or after
19January 1, 1999, if the Taxpayer is awarded a Credit by the
20Department under this Act for that taxable year.
21    (a) The Department shall make Credit awards under this Act
22to foster job creation and retention in Illinois.
23    (b) A person that proposes a project to create new jobs in

 

 

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1Illinois must enter into an Agreement with the Department for
2the Credit under this Act.
3    (c) The Credit shall be claimed for the taxable years
4specified in the Agreement.
5    (d) The Credit shall not exceed the Incremental Income Tax
6attributable to the project that is the subject of the
7Agreement.
8    (e) Nothing herein shall prohibit a Tax Credit Award to an
9Applicant that uses a PEO if all other award criteria are
10satisfied.
11    (f) In lieu of the Credit allowed under this Act against
12the taxes imposed pursuant to subsections (a) and (b) of
13Section 201 of the Illinois Income Tax Act for any taxable year
14ending on or after December 31, 2009, the Taxpayer may elect to
15claim the Credit against its obligation to pay over withholding
16under Section 704A of the Illinois Income Tax Act.
17        (1) The election under this subsection (f) may be made
18    only by a Taxpayer that (i) is primarily engaged in one of
19    the following business activities: water purification and
20    treatment, motor vehicle metal stamping, automobile
21    manufacturing, automobile and light duty motor vehicle
22    manufacturing, motor vehicle manufacturing, light truck
23    and utility vehicle manufacturing, heavy duty truck
24    manufacturing, motor vehicle body manufacturing, cable
25    television infrastructure design or manufacturing, or
26    wireless telecommunication or computing terminal device

 

 

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1    design or manufacturing for use on public networks and (ii)
2    meets the following criteria:
3            (A) the Taxpayer (i) had an Illinois net loss or an
4        Illinois net loss deduction under Section 207 of the
5        Illinois Income Tax Act for the taxable year in which
6        the Credit is awarded, (ii) employed a minimum of 1,000
7        full-time employees in this State during the taxable
8        year in which the Credit is awarded, (iii) has an
9        Agreement under this Act on December 14, 2009 (the
10        effective date of Public Act 96-834), and (iv) is in
11        compliance with all provisions of that Agreement;
12            (B) the Taxpayer (i) had an Illinois net loss or an
13        Illinois net loss deduction under Section 207 of the
14        Illinois Income Tax Act for the taxable year in which
15        the Credit is awarded, (ii) employed a minimum of 1,000
16        full-time employees in this State during the taxable
17        year in which the Credit is awarded, and (iii) has
18        applied for an Agreement within 365 days after December
19        14, 2009 (the effective date of Public Act 96-834);
20            (C) the Taxpayer (i) had an Illinois net operating
21        loss carryforward under Section 207 of the Illinois
22        Income Tax Act in a taxable year ending during calendar
23        year 2008, (ii) has applied for an Agreement within 150
24        days after the effective date of this amendatory Act of
25        the 96th General Assembly, (iii) creates at least 400
26        new jobs in Illinois, (iv) retains at least 2,000 jobs

 

 

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1        in Illinois that would have been at risk of relocation
2        out of Illinois over a 10-year period, and (v) makes a
3        capital investment of at least $75,000,000;
4            (D) the Taxpayer (i) had an Illinois net operating
5        loss carryforward under Section 207 of the Illinois
6        Income Tax Act in a taxable year ending during calendar
7        year 2009, (ii) has applied for an Agreement within 150
8        days after the effective date of this amendatory Act of
9        the 96th General Assembly, (iii) creates at least 150
10        new jobs, (iv) retains at least 1,000 jobs in Illinois
11        that would have been at risk of relocation out of
12        Illinois over a 10-year period, and (v) makes a capital
13        investment of at least $57,000,000; or
14            (E) the Taxpayer (i) employed at least 2,500
15        full-time employees in the State during the year in
16        which the Credit is awarded, (ii) commits to make at
17        least $500,000,000 in combined capital improvements
18        and project costs under the Agreement, (iii) applies
19        for an Agreement between January 1, 2011 and June 30,
20        2011, (iv) executes an Agreement for the Credit during
21        calendar year 2011, and (v) was incorporated no more
22        than 5 years before the filing of an application for an
23        Agreement.
24        (1.5) The election under this subsection (f) may also
25    be made by a Taxpayer for any Credit awarded pursuant to an
26    agreement that was executed between January 1, 2011 and

 

 

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1    June 30, 2011, if the Taxpayer (i) is primarily engaged in
2    the manufacture of inner tubes or tires, or both, from
3    natural and synthetic rubber, (ii) employs a minimum of
4    2,400 full-time employees in Illinois at the time of
5    application, (iii) creates at least 350 full-time jobs and
6    retains at least 250 full-time jobs in Illinois that would
7    have been at risk of being created or retained outside of
8    Illinois, and (iv) makes a capital investment of at least
9    $200,000,000 at the project location.
10        (1.6) The election under this subsection (f) may also
11    be made by a Taxpayer for any Credit awarded pursuant to an
12    agreement that was executed within 150 days after the
13    effective date of this amendatory Act of the 97th General
14    Assembly, if the Taxpayer (i) is primarily engaged in the
15    operation of a discount department store, (ii) maintains
16    its corporate headquarters in Illinois, (iii) employs a
17    minimum of 4,250 full-time employees at its corporate
18    headquarters in Illinois at the time of application, (iv)
19    retains at least 4,250 full-time jobs in Illinois that
20    would have been at risk of being relocated outside of
21    Illinois, (v) had a minimum of $40,000,000,000 in total
22    revenue in 2010, and (vi) makes a capital investment of at
23    least $300,000,000 at the project location.
24        (1.7) Notwithstanding any other provision of law, the
25    election under this subsection (f) may also be made by a
26    Taxpayer for any Credit awarded pursuant to an agreement

 

 

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1    that was executed or applied for on or after July 1, 2011
2    and on or before March 31, 2012, if the Taxpayer is
3    primarily engaged in the manufacture of original and
4    aftermarket filtration parts and products for automobiles,
5    motor vehicles, light duty motor vehicles, light trucks and
6    utility vehicles, and heavy duty trucks, (ii) employs a
7    minimum of 1,000 full-time employees in Illinois at the
8    time of application, (iii) creates at least 250 full-time
9    jobs in Illinois, (iv) relocates its corporate
10    headquarters to Illinois from another state, and (v) makes
11    a capital investment of at least $4,000,000 at the project
12    location.
13        (2) An election under this subsection shall allow the
14    credit to be taken against payments otherwise due under
15    Section 704A of the Illinois Income Tax Act during the
16    first calendar year beginning after the end of the taxable
17    year in which the credit is awarded under this Act.
18        (3) The election shall be made in the form and manner
19    required by the Illinois Department of Revenue and, once
20    made, shall be irrevocable.
21        (4) If a Taxpayer who meets the requirements of
22    subparagraph (A) of paragraph (1) of this subsection (f)
23    elects to claim the Credit against its withholdings as
24    provided in this subsection (f), then, on and after the
25    date of the election, the terms of the Agreement between
26    the Taxpayer and the Department may not be further amended

 

 

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1    during the term of the Agreement.
2    (g) A pass-through entity that has been awarded a credit
3under this Act, its shareholders, or its partners may treat
4some or all of the credit awarded pursuant to this Act as a tax
5payment for purposes of the Illinois Income Tax Act. The term
6"tax payment" means a payment as described in Article 6 or
7Article 8 of the Illinois Income Tax Act or a composite payment
8made by a pass-through entity on behalf of any of its
9shareholders or partners to satisfy such shareholders' or
10partners' taxes imposed pursuant to subsections (a) and (b) of
11Section 201 of the Illinois Income Tax Act. In no event shall
12the amount of the award credited pursuant to this Act exceed
13the Illinois income tax liability of the pass-through entity or
14its shareholders or partners for the taxable year.
15    (h) Notwithstanding any other provision of law, the
16Department shall not enter into any new Agreements under the
17provisions of this Act on or after the effective date of this
18amendatory Act of the 99th General Assembly. It is the
19intention of the General Assembly that the tax incentive
20program established under this Act be phased out and that the
21increased revenue attributable to that phase out be used to
22provide specialized care to children pursuant to the rules
23adopted under Section 5.30 of the Children and Family Services
24Act or any similar successor program.
25(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
2696-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.

 

 

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13-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
2    (35 ILCS 10/5-77)
3    Sec. 5-77. Sunset of new Agreements. The Department shall
4not enter into any new Agreements under the provisions of
5Section 5-50 of this Act on or after the effective date of this
6amendatory Act of the 99th General Assembly after December 31,
72016.
8(Source: P.A. 97-2, eff. 5-6-11.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.