Full Text of SB0619 94th General Assembly
SB0619eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Department of Commerce and Economic | 5 |
| Opportunity Law of the
Civil Administrative Code of Illinois is | 6 |
| amended by changing Section 605-332 as follows:
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| (20 ILCS 605/605-332)
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| Sec. 605-332. Financial assistance to energy generation | 9 |
| facilities.
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| (a) As used in this Section:
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| "New electric generating facility" means a | 12 |
| newly-constructed electric
generation plant or a newly | 13 |
| constructed generation capacity expansion at an
existing | 14 |
| facility, including the transmission lines and associated | 15 |
| equipment
that transfers electricity from points of supply to | 16 |
| points of delivery, and for
which foundation construction | 17 |
| commenced not sooner than July 1, 2001, which is
designed to | 18 |
| provide baseload electric generation operating on a continuous
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| basis throughout the year and:
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| (1) has an aggregate rated generating capacity
of at
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| least 400 megawatts for all new units at one site, uses | 22 |
| coal or gases derived
from coal as its primary fuel
source, | 23 |
| and supports the creation of at least 150 new Illinois coal | 24 |
| mining
jobs; or
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| (2) is funded through a federal Department of Energy | 26 |
| grant before July 1, 2006 and supports the
creation of
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| Illinois
coal-mining jobs; or
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| (3) uses coal gasification or integrated | 29 |
| gasification-combined cycle
units that generate | 30 |
| electricity or chemicals, or both, and supports the
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| creation of
Illinois
coal-mining jobs.
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| "New gasification facility" means a newly constructed coal |
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| gasification facility that generates chemical feedstocks or | 2 |
| transportation fuels derived from coal (which may include, but | 3 |
| are not limited to, methane, methanol, and nitrogen | 4 |
| fertilizer), that supports the creation or retention of | 5 |
| Illinois coal-mining jobs, and that qualifies for financial | 6 |
| assistance from the Department before December 31, 2007.
2006. | 7 |
| A new gasification facility does not include a pilot project | 8 |
| located within Jefferson County or within a county adjacent to | 9 |
| Jefferson County for synthetic natural gas from coal.
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| "New facility" means a new electric generating facility or | 11 |
| a new gasification facility. A new facility does not include a | 12 |
| pilot project located within Jefferson County or within a | 13 |
| county adjacent to Jefferson County for synthetic natural gas | 14 |
| from coal.
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| "Eligible business" means an entity that proposes to | 16 |
| construct a new facility and that has applied to the Department | 17 |
| to receive financial
assistance pursuant to this Section.
With | 18 |
| respect to use and occupation taxes, wherever there is a | 19 |
| reference to
taxes, that reference means only those taxes paid | 20 |
| on Illinois-mined coal used
in
a new facility.
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| "Department" means the Illinois Department of Commerce and
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| Economic Opportunity.
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| (b) The Department is authorized to
provide financial | 24 |
| assistance to eligible businesses for new
facilities from funds | 25 |
| appropriated by the General Assembly as further provided
in | 26 |
| this Section.
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| An eligible business seeking qualification for financial | 28 |
| assistance for
a new facility, for purposes of this Section | 29 |
| only, shall
apply to the Department in the manner specified by | 30 |
| the Department. Any
projections provided by an eligible | 31 |
| business as part of the application shall
be independently | 32 |
| verified in a manner as set forth by the Department. An
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| application shall include, but not
be limited to:
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| (1) the projected or actual completion date of the new | 35 |
| facility
for which financial assistance is sought;
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| (2) copies of documentation deemed
acceptable by the |
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| Department establishing either (i) the total State
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| occupation
and use taxes paid on Illinois-mined coal used | 3 |
| at the new facility for a minimum of 4 preceding calendar | 4 |
| quarters or (ii)
the projected amount of State occupation | 5 |
| and use taxes paid on Illinois-mined
coal used at the new | 6 |
| facility in 4 calendar year quarters
after completion of | 7 |
| the new facility.
Bond proceeds subject to this Section | 8 |
| shall not be allocated to an
eligible business until the | 9 |
| eligible business has demonstrated the revenue
stream | 10 |
| sufficient to service the debt on the bonds; and
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| (3) the actual or projected amount of capital | 12 |
| investment by the
eligible business
in the new facility.
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| The Department shall determine the maximum amount of | 14 |
| financial
assistance for eligible businesses in accordance | 15 |
| with this paragraph. The
Department shall not provide financial | 16 |
| assistance from general obligation bond
funds to any eligible | 17 |
| business
unless it receives a written certification from the | 18 |
| Director of the
Bureau of
the Budget
(now Governor's Office of | 19 |
| Management and Budget)
that 80% of the State occupation and use | 20 |
| tax receipts for a minimum
of the
preceding 4 calendar quarters | 21 |
| for all eligible businesses or as included in
projections on | 22 |
| approved applications by eligible businesses equal or exceed
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| 110% of the maximum annual debt service required with respect | 24 |
| to general
obligation bonds issued for that purpose. The | 25 |
| Department may provide
financial assistance not to exceed the | 26 |
| amount of State general obligation
debt calculated as above, | 27 |
| the amount of actual or projected capital
investment in the | 28 |
| facility, or $100,000,000, whichever is less.
Financial | 29 |
| assistance received pursuant to this Section may be used
for | 30 |
| capital facilities consisting of buildings, structures, | 31 |
| durable equipment,
and land at the new facility. Subject to the | 32 |
| provisions
of the agreement covering the financial assistance, | 33 |
| a portion of the financial
assistance may be required to be | 34 |
| repaid to the State if certain conditions for
the governmental | 35 |
| purpose of the assistance were not met.
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| An eligible business shall file a monthly report with the
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| Illinois Department of Revenue stating the amount of | 2 |
| Illinois-mined coal
purchased during
the previous month for use | 3 |
| in the new facility, the
purchase price of that coal, the | 4 |
| amount of State
occupation and use taxes paid on that purchase | 5 |
| to the seller of the
Illinois-mined coal, and
such other
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| information as that Department may reasonably require. In sales | 7 |
| of
Illinois-mined coal between related parties, the purchase | 8 |
| price of the coal
must have been determined in an arms-length | 9 |
| transaction. The report shall be
filed with the Illinois | 10 |
| Department of Revenue on or before the 20th day of
each month | 11 |
| on a form provided by that Department. However, no report
need | 12 |
| be filed by an eligible business in a month when it made
no | 13 |
| reportable purchases of coal in the previous month.
The | 14 |
| Illinois Department of Revenue shall provide a summary of such | 15 |
| reports to
the
Governor's Office of Management and Budget.
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| Upon granting financial assistance to an eligible | 17 |
| business, the Department
shall certify the name of the eligible | 18 |
| business to the Illinois Department of
Revenue. Beginning with | 19 |
| the receipt of the first report of State occupation
and use | 20 |
| taxes paid by an
eligible business and continuing for a 25-year | 21 |
| period, the Illinois Department
of Revenue shall each month pay | 22 |
| into the Energy Infrastructure Fund 80% of the
net revenue | 23 |
| realized from the 6.25% general rate on the selling price of
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| Illinois-mined coal that was sold to an eligible business.
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| (Source: P.A. 93-167, eff. 7-10-03; 93-1064, eff. 1-13-05; | 26 |
| 94-65, eff. 6-21-05.)
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| Section 10. The Illinois Enterprise Zone Act is amended by | 28 |
| changing Section 5.5 as follows:
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| (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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| Sec. 5.5. High Impact Business.
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| (a) In order to respond to unique opportunities to assist | 32 |
| in the
encouragement, development, growth and expansion of the | 33 |
| private sector through
large scale investment and development | 34 |
| projects, the Department is authorized
to receive and approve |
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| applications for the designation of "High Impact
Businesses" in | 2 |
| Illinois subject to the following conditions:
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| (1) such applications may be submitted at any time | 4 |
| during the year;
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| (2) such business is not located, at the time of | 6 |
| designation, in
an enterprise zone designated pursuant to | 7 |
| this Act;
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| (3) the business intends to do one or more of the | 9 |
| following:
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| (A) the business intends to make a minimum | 11 |
| investment of
$12,000,000 which will be placed in | 12 |
| service in qualified property and
intends to create 500 | 13 |
| full-time equivalent jobs at a designated location
in | 14 |
| Illinois or intends to make a minimum investment of | 15 |
| $30,000,000 which
will be placed in service in | 16 |
| qualified property and intends to retain 1,500
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| full-time jobs at a designated location in Illinois.
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| The business must certify in writing that the | 19 |
| investments would not be
placed in service in qualified | 20 |
| property and the job creation or job
retention would | 21 |
| not occur without the tax credits and exemptions set | 22 |
| forth
in subsection (b) of this Section. The terms | 23 |
| "placed in service" and
"qualified property" have the | 24 |
| same meanings as described in subsection (h)
of Section | 25 |
| 201 of the Illinois Income Tax Act; or
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| (B) the business intends to establish a new | 27 |
| electric generating
facility at a designated location | 28 |
| in Illinois. "New electric generating
facility", for | 29 |
| purposes of this Section, means a newly-constructed
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| electric
generation plant
or a newly-constructed | 31 |
| generation capacity expansion at an existing electric
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| generation
plant, including the transmission lines and | 33 |
| associated
equipment that transfers electricity from | 34 |
| points of supply to points of
delivery, and for which | 35 |
| such new foundation construction commenced not sooner
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| than July 1,
2001. Such facility shall be designed to |
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| provide baseload electric
generation and shall operate | 2 |
| on a continuous basis throughout the year;
and (i) | 3 |
| shall have an aggregate rated generating capacity of at | 4 |
| least 1,000
megawatts for all new units at one site if | 5 |
| it uses natural gas as its primary
fuel and foundation | 6 |
| construction of the facility is commenced on
or before | 7 |
| December 31, 2004, or shall have an aggregate rated | 8 |
| generating
capacity of at least 400 megawatts for all | 9 |
| new units at one site if it uses
coal or gases derived | 10 |
| from coal
as its primary fuel and
shall support the | 11 |
| creation of at least 150 new Illinois coal mining jobs, | 12 |
| or
(ii) shall be funded through a federal Department of | 13 |
| Energy grant before July 1, 2006 and shall support the | 14 |
| creation of Illinois
coal-mining
jobs, or (iii) shall | 15 |
| use coal gasification or integrated | 16 |
| gasification-combined cycle units
that generate
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| electricity or chemicals, or both, and shall support | 18 |
| the creation of Illinois
coal-mining
jobs.
The
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| business must certify in writing that the investments | 20 |
| necessary to establish
a new electric generating | 21 |
| facility would not be placed in service and the
job | 22 |
| creation in the case of a coal-fueled plant
would not | 23 |
| occur without the tax credits and exemptions set forth | 24 |
| in
subsection (b-5) of this Section. The term "placed | 25 |
| in service" has
the same meaning as described in | 26 |
| subsection
(h) of Section 201 of the Illinois Income | 27 |
| Tax Act; or
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| (B-5) the business intends to establish a new | 29 |
| gasification
facility at a designated location in | 30 |
| Illinois. As used in this Section, "new gasification | 31 |
| facility" means a newly constructed coal gasification | 32 |
| facility that generates chemical feedstocks or | 33 |
| transportation fuels derived from coal (which may | 34 |
| include, but are not limited to, methane, methanol, and | 35 |
| nitrogen fertilizer), that supports the creation or | 36 |
| retention of Illinois coal-mining jobs, and that |
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| qualifies for financial assistance from the Department | 2 |
| before December 31, 2007
2006. A new gasification | 3 |
| facility does not include a pilot project located | 4 |
| within Jefferson County or within a county adjacent to | 5 |
| Jefferson County for synthetic natural gas from coal ; | 6 |
| or
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| (C) the business intends to establish
production | 8 |
| operations at a new coal mine, re-establish production | 9 |
| operations at
a closed coal mine, or expand production | 10 |
| at an existing coal mine
at a designated location in | 11 |
| Illinois not sooner than July 1, 2001;
provided that | 12 |
| the
production operations result in the creation of 150 | 13 |
| new Illinois coal mining
jobs as described in | 14 |
| subdivision (a)(3)(B) of this Section, and further
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| provided that the coal extracted from such mine is | 16 |
| utilized as the predominant
source for a new electric | 17 |
| generating facility.
The business must certify in | 18 |
| writing that the
investments necessary to establish a | 19 |
| new, expanded, or reopened coal mine would
not
be | 20 |
| placed in service and the job creation would not
occur | 21 |
| without the tax credits and exemptions set forth in | 22 |
| subsection (b-5) of
this Section. The term "placed in | 23 |
| service" has
the same meaning as described in | 24 |
| subsection (h) of Section 201 of the
Illinois Income | 25 |
| Tax Act; or
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| (D) the business intends to construct new | 27 |
| transmission facilities or
upgrade existing | 28 |
| transmission facilities at designated locations in | 29 |
| Illinois,
for which construction commenced not sooner | 30 |
| than July 1, 2001. For the
purposes of this Section, | 31 |
| "transmission facilities" means transmission lines
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| with a voltage rating of 115 kilovolts or above, | 33 |
| including associated
equipment, that transfer | 34 |
| electricity from points of supply to points of
delivery | 35 |
| and that transmit a majority of the electricity | 36 |
| generated by a new
electric generating facility |
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| designated as a High Impact Business in accordance
with | 2 |
| this Section. The business must certify in writing that | 3 |
| the investments
necessary to construct new | 4 |
| transmission facilities or upgrade existing
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| transmission facilities would not be placed in service
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| without the tax credits and exemptions set forth in | 7 |
| subsection (b-5) of this
Section. The term "placed in | 8 |
| service" has the
same meaning as described in | 9 |
| subsection (h) of Section 201 of the Illinois
Income | 10 |
| Tax Act; and
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| (4) no later than 90 days after an application is | 12 |
| submitted, the
Department shall notify the applicant of the | 13 |
| Department's determination of
the qualification of the | 14 |
| proposed High Impact Business under this Section.
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| (b) Businesses designated as High Impact Businesses | 16 |
| pursuant to
subdivision (a)(3)(A) of this Section shall qualify | 17 |
| for the credits and
exemptions described in the
following Acts: | 18 |
| Section 9-222 and Section 9-222.1A of the Public Utilities
Act,
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| subsection (h)
of Section 201 of the Illinois Income Tax Act,
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| and Section 1d of
the
Retailers' Occupation Tax Act; provided | 21 |
| that these credits and
exemptions
described in these Acts shall | 22 |
| not be authorized until the minimum
investments set forth in | 23 |
| subdivision (a)(3)(A) of this
Section have been placed in
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| service in qualified properties and, in the case of the | 25 |
| exemptions
described in the Public Utilities Act and Section 1d | 26 |
| of the Retailers'
Occupation Tax Act, the minimum full-time | 27 |
| equivalent jobs or full-time jobs set
forth in subdivision | 28 |
| (a)(3)(A) of this Section have been
created or retained.
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| Businesses designated as High Impact Businesses under
this | 30 |
| Section shall also
qualify for the exemption described in | 31 |
| Section 5l of the Retailers' Occupation
Tax Act. The credit | 32 |
| provided in subsection (h) of Section 201 of the Illinois
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| Income Tax Act shall be applicable to investments in qualified | 34 |
| property as set
forth in subdivision (a)(3)(A) of this Section.
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| (b-5) Businesses designated as High Impact Businesses | 36 |
| pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), |
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| and (a)(3)(D) of this Section shall qualify
for the credits and | 2 |
| exemptions described in the following Acts: Section 51 of
the | 3 |
| Retailers' Occupation Tax Act, Section 9-222 and Section | 4 |
| 9-222.1A of the
Public Utilities Act, and subsection (h) of | 5 |
| Section 201 of the Illinois Income
Tax Act; however, the | 6 |
| credits and exemptions authorized under Section 9-222 and
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| Section 9-222.1A of the Public Utilities Act, and subsection | 8 |
| (h) of Section 201
of the Illinois Income Tax Act shall not be | 9 |
| authorized until the new electric
generating facility, the new | 10 |
| gasification facility, the new transmission facility, or the | 11 |
| new, expanded, or
reopened coal mine is operational,
except | 12 |
| that a new electric generating facility whose primary fuel | 13 |
| source is
natural gas is eligible only for the exemption under | 14 |
| Section 5l of the
Retailers' Occupation Tax Act.
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| (c) High Impact Businesses located in federally designated | 16 |
| foreign trade
zones or sub-zones are also eligible for | 17 |
| additional credits, exemptions and
deductions as described in | 18 |
| the following Acts: Section 9-221 and Section
9-222.1 of the | 19 |
| Public
Utilities Act; and subsection (g) of Section 201, and | 20 |
| Section 203
of the Illinois Income Tax Act.
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| (d) Existing Illinois businesses which apply for | 22 |
| designation as a
High Impact Business must provide the | 23 |
| Department with the prospective plan
for which 1,500 full-time | 24 |
| jobs would be eliminated in the event that the
business is not | 25 |
| designated.
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| (e) New proposed facilities which apply for designation as | 27 |
| High Impact
Business must provide the Department with proof of | 28 |
| alternative non-Illinois
sites which would receive the | 29 |
| proposed investment and job creation in the
event that the | 30 |
| business is not designated as a High Impact Business.
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| (f) In the event that a business is designated a High | 32 |
| Impact Business
and it is later determined after reasonable | 33 |
| notice and an opportunity for a
hearing as provided under the | 34 |
| Illinois Administrative Procedure Act, that
the business would | 35 |
| have placed in service in qualified property the
investments | 36 |
| and created or retained the requisite number of jobs without
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| the benefits of the High Impact Business designation, the | 2 |
| Department shall
be required to immediately revoke the | 3 |
| designation and notify the Director
of the Department of | 4 |
| Revenue who shall begin proceedings to recover all
wrongfully | 5 |
| exempted State taxes with interest. The business shall also be
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| ineligible for all State funded Department programs for a | 7 |
| period of 10 years.
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| (g) The Department shall revoke a High Impact Business | 9 |
| designation if
the participating business fails to comply with | 10 |
| the terms and conditions of
the designation.
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| (h) Prior to designating a business, the Department shall | 12 |
| provide the
members of the General Assembly and Commission on | 13 |
| Government Forecasting and Accountability
with a report | 14 |
| setting forth the terms and conditions of the designation and
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| guarantees that have been received by the Department in | 16 |
| relation to the
proposed business being designated.
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| (Source: P.A. 93-1064, eff. 1-13-05; 93-1067, eff. 1-15-05; | 18 |
| 94-65, eff. 6-21-05.)
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.
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