Full Text of SB2885 94th General Assembly
SB2885eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning business incentives.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Business Location Efficiency Incentive Act. | 6 |
| Section 5. Definitions. In this Act: | 7 |
| "Location efficient" means a project that maximizes the use | 8 |
| of existing investments in infrastructure, avoids or minimizes | 9 |
| additional government expenditures for new infrastructure, and | 10 |
| has nearby housing affordable to the permanent workforce of the | 11 |
| project or has accessible and affordable mass transit or its | 12 |
| equivalent or some combination of both. | 13 |
| "Location efficiency report" means a report that is | 14 |
| prepared by an applicant for increased State economic | 15 |
| development assistance under Section 10 and follows this Act | 16 |
| and any related Department guidelines, and that describes the | 17 |
| existence of (i) affordable workforce housing or (ii) | 18 |
| accessible and affordable mass transit or its equivalent. | 19 |
| "Employee housing or transportation remediation plan" | 20 |
| means a plan to increase affordable housing or transportation | 21 |
| options, or both, for employees earning up to the median annual | 22 |
| salary of the workforce at the project. The plan may include, | 23 |
| but is not limited to, an employer-financed or assisted housing | 24 |
| program that can be supplemented by State or federal grants, | 25 |
| shuttle services between the place of employment and existing | 26 |
| transit stops or other reasonably accessible places, | 27 |
| facilitation of employee carpooling, or similar services. | 28 |
| "Accessible and affordable mass transit" means access to | 29 |
| transit stops with regular and frequent service within one mile | 30 |
| from the project site and pedestrian access to transit stops. | 31 |
| "Affordable workforce housing" means owner-occupied or | 32 |
| rental housing that costs, based on current census data for the |
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| municipality where the project is located or any municipality | 2 |
| within 3 miles of the municipality where the project is | 3 |
| located, no more than 35% of the median salary at the project | 4 |
| site, exclusive of the highest 10% of the site's salaries. If | 5 |
| the project is located in an unincorporated area, "affordable | 6 |
| workforce housing" means no more than 35% of the median salary | 7 |
| at the project site, excluding the highest 10% of the site's | 8 |
| salaries, based on the median cost of rental or of | 9 |
| owner-occupied housing in the county where the unincorporated | 10 |
| area is located. | 11 |
| "Department" means the Department of Commerce and Economic | 12 |
| Opportunity (DCEO) or its successor agency. | 13 |
| "Applicant" means a company or its representative that | 14 |
| negotiates or applies for economic development assistance from | 15 |
| DCEO. | 16 |
| "Economic development assistance" means State tax credits | 17 |
| and tax exemptions given as an incentive to an eligible company | 18 |
| after certification by DCEO under the Economic Development for | 19 |
| a Growing Economy Tax Credit Act (EDGE). | 20 |
| "Existence of infrastructure" means the existence within | 21 |
| 1,500 feet of the proposed site of roads, sewers, sidewalks, | 22 |
| and other utilities and a description of the investments or | 23 |
| improvements, if any, that an applicant expects State or local | 24 |
| government to make to that infrastructure. | 25 |
| Section 10. Economic development assistance awards. | 26 |
| (a) An applicant that also wants to be considered for | 27 |
| increased economic development assistance under this Act shall | 28 |
| submit a location efficiency report. | 29 |
| (b) DCEO may give an applicant an increased tax credit or | 30 |
| extension if the applicant's location efficiency report | 31 |
| demonstrates that the applicant is seeking assistance for a | 32 |
| project to be located in an area that satisfies this Act's | 33 |
| standards for affordable workforce housing or affordable and | 34 |
| accessible mass transit. If the Department determines from the | 35 |
| location efficiency report that the applicant is seeking |
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| assistance in an area that is not location efficient, the | 2 |
| Department may award an increase in State economic development | 3 |
| assistance if an applicant (i) submits, and the Department | 4 |
| accepts, an applicant's employee housing and transportation | 5 |
| remediation plan or (ii) creates jobs in a labor surplus area | 6 |
| as defined by the Department of Employment Security at the end | 7 |
| of each calendar year. | 8 |
| (c) Applicants locating or expanding at location-efficient | 9 |
| sites, with approved location efficiency plans, or creating | 10 |
| jobs in labor surplus areas may receive (i) up to 10% more than | 11 |
| the maximum allowable tax credits for which they are eligible | 12 |
| under the Economic Development for a Growing Economy Tax Credit | 13 |
| Act (EDGE), but not to equal or exceed 100% of the applicant's | 14 |
| tax liability, or (ii) such other adjustment of those tax | 15 |
| credits, including but not limited to extensions, as the | 16 |
| Department deems appropriate. | 17 |
| (d) The Department may provide technical assistance to | 18 |
| employers requesting assistance in developing an appropriate | 19 |
| employee housing or transportation plan. | 20 |
| Section 15. Summaries; progress reports. | 21 |
| (a) DCEO shall include summaries of the initial employee | 22 |
| housing or transportation plans for each assisted project in | 23 |
| the annual compilation and publication of project progress | 24 |
| reports required under subsection (d) of Section 20 of the | 25 |
| Corporate Accountability for Tax Expenditures Act. Companies | 26 |
| that fail to do so or that make inadequate progress shall have | 27 |
| their increased tax credit or extension eliminated. Applicants | 28 |
| and submitted data are subject to all disclosure, reporting, | 29 |
| and recapture provisions set forth in Public Act 93-552. | 30 |
| (b) By June 1, 2008 and by June 1 of each year thereafter | 31 |
| through 2011, the Department shall include, when appropriate, | 32 |
| data on the outcomes or status of approved employee housing or | 33 |
| transportation plans in the project progress reports required | 34 |
| under the Corporate Accountability for Tax Expenditure Act.
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| Section 20. Duration of incentives; report to General | 2 |
| Assembly. | 3 |
| (a) Any multi-year incentive awarded under this Act shall | 4 |
| continue for the time period called for in the agreement with | 5 |
| the Department and shall not be altered by the repeal of this | 6 |
| Act. | 7 |
| (b) By January 1, 2011, the Department shall submit to the | 8 |
| Speaker of the House of Representatives and the President of | 9 |
| the Senate, for assignment to the appropriate committees, a | 10 |
| report on the incentives awarded under this Act and the | 11 |
| Department's activities, findings, and recommendations with | 12 |
| respect to this Act and its extension, amendment, or repeal. | 13 |
| The report, when acted upon by those committees, shall be | 14 |
| distributed to each member of the General Assembly. | 15 |
| Section 25. Repeal. This Act is repealed on December 31, | 16 |
| 2011.
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| Section 99. Effective date. This Act takes effect January | 18 |
| 1, 2007.
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