Full Text of HB3934 97th General Assembly
HB3934ham001 97TH GENERAL ASSEMBLY | Rep. Jack D. Franks Filed: 2/21/2012
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| 1 | | AMENDMENT TO HOUSE BILL 3934
| 2 | | AMENDMENT NO. ______. Amend House Bill 3934 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Economic Development for a Growing Economy | 5 | | Tax Credit Act is amended by changing Sections 5-10, 5-20, | 6 | | 5-45, and 5-50 and by adding Section 5-26 as follows:
| 7 | | (35 ILCS 10/5-10)
| 8 | | Sec. 5-10. Powers of the Department. The Department, in
| 9 | | addition to those powers
granted under the Civil Administrative | 10 | | Code of Illinois, is granted and shall
have all the powers | 11 | | necessary
or convenient to carry out and effectuate the | 12 | | purposes and provisions of this
Act, including, but not limited
| 13 | | to, power and authority to:
| 14 | | (a) Promulgate procedures, rules, or regulations deemed | 15 | | necessary and
appropriate for the
administration of the | 16 | | programs; establish forms for applications,
notifications, |
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| 1 | | contracts, or any other
agreements; and accept applications at | 2 | | any time during the year.
| 3 | | (b) Provide and assist Taxpayers pursuant to the
provisions | 4 | | of this Act, and
cooperate with Taxpayers that are parties to | 5 | | Agreements
to promote, foster, and
support economic | 6 | | development, capital investment, and job creation or retention
| 7 | | within the State.
| 8 | | (c) Enter into agreements and memoranda of understanding | 9 | | for participation
of and engage in
cooperation with agencies of | 10 | | the federal government, local units of government,
| 11 | | universities, research
foundations or institutions, regional | 12 | | economic development corporations, or
other organizations for | 13 | | the
purposes of this Act.
| 14 | | (d) Gather information and conduct inquiries, in the manner | 15 | | and by the
methods as it deems desirable,
including without | 16 | | limitation, gathering information with respect to
Applicants | 17 | | for the
purpose of making any designations or certifications | 18 | | necessary or desirable or
to gather information to
assist the | 19 | | Committee with any recommendation or guidance in the | 20 | | furtherance of
the purposes of this Act.
| 21 | | (e) Establish, negotiate and effectuate any term, | 22 | | agreement or other
document with any person,
necessary or | 23 | | appropriate to accomplish the purposes of this Act; and to
| 24 | | consent, subject to the provisions
of any Agreement with | 25 | | another party, to the modification or restructuring of
any | 26 | | Agreement to which the
Department is a party , provided that all |
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| 1 | | Agreements entered into on or after the effective date of this | 2 | | amendatory Act of the 97th General Assembly, and all | 3 | | modifications to or restructuring of Agreements occurring on or | 4 | | after the effective date of this amendatory Act of the 97th | 5 | | General Assembly, require the approval of the Economic | 6 | | Incentive Committee established under Section 5-26 of this Act .
| 7 | | (f) Fix, determine, charge, and collect any premiums, fees, | 8 | | charges, costs,
and expenses from Applicants,
including, | 9 | | without limitation,
any
application fees,
commitment fees, | 10 | | program fees, financing charges, or publication fees as deemed
| 11 | | appropriate to pay
expenses necessary or incident to the | 12 | | administration, staffing, or operation in
connection with the
| 13 | | Department's or Committee's activities under this Act, or for | 14 | | preparation,
implementation, and
enforcement of the terms of | 15 | | the Agreement, or for consultation, advisory and
legal fees, | 16 | | and other costs;
however, all fees and expenses incident | 17 | | thereto shall be the responsibility of
the Applicant.
| 18 | | (g) Provide for sufficient personnel to permit | 19 | | administration, staffing,
operation, and related support
| 20 | | required to adequately discharge its duties and | 21 | | responsibilities described in
this Act from funds made
| 22 | | available through charges to Applicants
or from funds as
may be | 23 | | appropriated by the General Assembly for the administration of | 24 | | this Act.
| 25 | | (h) Require Applicants, upon written request, to
issue any | 26 | | necessary
authorization to the appropriate federal, state, or |
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| 1 | | local authority for the
release of information concerning a
| 2 | | project being considered under the
provisions of this Act, with | 3 | | the
information requested to include, but not be limited to, | 4 | | financial reports,
returns, or records relating to the
| 5 | | Taxpayers' or its project.
| 6 | | (i) Require that a Taxpayer shall at all times
keep proper | 7 | | books
of record and account in accordance with generally | 8 | | accepted accounting
principles consistently applied,
with the | 9 | | books, records, or papers related to the Agreement in the | 10 | | custody or
control of the Taxpayer open for
reasonable | 11 | | Department inspection and audits, and including, without | 12 | | limitation,
the making of copies of the
books, records, or | 13 | | papers, and the inspection or appraisal of any of the
Taxpayer | 14 | | or project assets.
| 15 | | (j) Take whatever actions are necessary or appropriate to | 16 | | protect the
State's interest in the
event of bankruptcy, | 17 | | default, foreclosure, or noncompliance with the terms and
| 18 | | conditions of financial
assistance or participation required | 19 | | under this Act, including the power to
sell, dispose, lease, or | 20 | | rent, upon
terms and conditions determined by the Director to | 21 | | be appropriate, real or
personal property that the
Department | 22 | | may receive as a result of these actions.
| 23 | | (Source: P.A. 91-476, eff. 8-11-99.)
| 24 | | (35 ILCS 10/5-20)
| 25 | | Sec. 5-20. Application for a project to create and retain |
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| 1 | | new jobs.
| 2 | | (a) Any Taxpayer proposing a project located or planned to | 3 | | be located in
Illinois may request consideration
for | 4 | | designation of its project, by formal written letter of request | 5 | | or by
formal application to the Department,
in which the | 6 | | Applicant states its intent to make at least a specified level | 7 | | of
investment and
intends to hire or retain a
specified number | 8 | | of full-time employees at a designated location in Illinois.
As
| 9 | | circumstances require, the
Department may require a formal | 10 | | application from an Applicant and a formal
letter of request | 11 | | for
assistance.
| 12 | | (b) In order to qualify for Credits under this Act, an | 13 | | Applicant's project
must:
| 14 | | (1) involve an investment of at least $5,000,000 in | 15 | | capital improvements
to be placed in service and to employ | 16 | | at least 25 New Employees within the
State as a direct | 17 | | result of the project;
| 18 | | (2) involve an investment of at least an amount (to be | 19 | | expressly specified
by the Department and the Committee) in | 20 | | capital improvements to be placed in
service and will | 21 | | employ at least an amount (to be expressly specified by the
| 22 | | Department and the Committee) of New Employees
within the | 23 | | State, provided that the Department and the Committee have
| 24 | | determined that the project will provide a substantial | 25 | | economic benefit to the
State; or | 26 | | (3) if the applicant has 100 or fewer employees, |
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| 1 | | involve an investment of at least $1,000,000 in capital | 2 | | improvements to be placed in service and to employ at least | 3 | | 5 New Employees within the State as a direct result of the | 4 | | project.
| 5 | | (c) After receipt of an application, the Department may | 6 | | enter into an
Agreement with the Applicant if the
application | 7 | | is accepted in accordance with Section 5-25 and the Agreement | 8 | | is approved by the Economic Incentive Committee established | 9 | | under Section 5-26 of this Act .
| 10 | | (Source: P.A. 93-882, eff. 1-1-05.)
| 11 | | (35 ILCS 10/5-26 new) | 12 | | Sec. 5-26. Economic Incentive Committee; creation; duties. | 13 | | An Economic Incentive Committee is created within the | 14 | | Department for the purpose of approving Agreements entered into | 15 | | under this Act. The Committee shall consist of 5 members | 16 | | appointed by the Governor with
the advice and consent of the | 17 | | Senate. Each member of the Committee shall be a business owner | 18 | | or shall have expertise in economic development or academia. | 19 | | The Committee shall approve or deny each Agreement within 5 | 20 | | days after the Agreement is submitted to the Committee. Members | 21 | | shall serve without compensation, but may be reimbursed for | 22 | | their necessary expenses. If a member has a conflict of | 23 | | interest with respect to any Agreement, he or she shall recuse | 24 | | himself or herself from consideration of that Agreement. The | 25 | | Committee shall consider each Agreement submitted on or before |
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| 1 | | December 31, 2016 and shall be dissolved as soon after that | 2 | | date as possible.
| 3 | | (35 ILCS 10/5-45)
| 4 | | Sec. 5-45. Amount and duration of the credit.
| 5 | | (a) The Department shall
determine the amount and
duration | 6 | | of the credit awarded under this Act. The duration of the
| 7 | | credit may not exceed 10 taxable years.
The credit may be | 8 | | stated as
a percentage of the Incremental Income Tax | 9 | | attributable
to the applicant's project and may include a fixed | 10 | | dollar limitation. With respect to Agreements entered into or | 11 | | modified on or after the effective date of this amendatory Act | 12 | | of the 97th General Assembly, the amount and duration of the | 13 | | credit is subject to final approval by the Economic Incentive | 14 | | Committee established under Section 5-26 of this Act.
| 15 | | (b) Notwithstanding subsection (a),
and except as the | 16 | | credit may be applied in a carryover year pursuant to Section
| 17 | | 211(4) of the Illinois Income Tax Act, the credit may be | 18 | | applied against the
State income tax liability in more than 10 | 19 | | taxable years but not in more than
15 taxable years for an | 20 | | eligible business
that (i) qualifies under this Act
and the | 21 | | Corporate Headquarters Relocation Act and has in fact | 22 | | undertaken a
qualifying project within the time frame specified | 23 | | by the Department of
Commerce and Economic Opportunity under | 24 | | that Act, and (ii) applies against its
State income tax | 25 | | liability, during the entire 15-year
period, no more than 60% |
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| 1 | | of the maximum
credit per year that would otherwise be | 2 | | available under this Act.
| 3 | | (Source: P.A. 94-793, eff. 5-19-06.)
| 4 | | (35 ILCS 10/5-50)
| 5 | | Sec. 5-50. Contents of Agreements with Applicants. The | 6 | | Department shall
enter into an Agreement with an
Applicant that | 7 | | is awarded a Credit under this Act. The Agreement
must include | 8 | | all of the following:
| 9 | | (1) A detailed description of the project that is the | 10 | | subject of the
Agreement, including the location and amount | 11 | | of the investment and jobs created
or retained.
| 12 | | (2) The duration of the Credit and the first taxable | 13 | | year for which
the Credit may be claimed.
| 14 | | (3) The Credit amount that will be allowed for each | 15 | | taxable year.
| 16 | | (4) A requirement that the Taxpayer shall maintain | 17 | | operations at the
project location that shall be stated as | 18 | | a minimum number of years not to
exceed 10.
| 19 | | (5) A specific method for determining the number of New | 20 | | Employees
employed during a taxable year.
| 21 | | (6) A requirement that the Taxpayer shall annually | 22 | | report to the
Department the number of New Employees,
the | 23 | | Incremental Income Tax
withheld in connection with the New | 24 | | Employees, and any other
information the Director needs to | 25 | | perform the Director's duties under
this Act.
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| 1 | | (7) A requirement that the Director is authorized to | 2 | | verify with the
appropriate State agencies the amounts | 3 | | reported under paragraph
(6), and after doing so shall | 4 | | issue a certificate to the Taxpayer
stating that the | 5 | | amounts have been verified.
| 6 | | (8) A requirement that the Taxpayer shall provide | 7 | | written
notification to the Director not more than 30
days | 8 | | after the Taxpayer makes or receives a proposal that would
| 9 | | transfer the Taxpayer's State tax liability obligations to | 10 | | a
successor Taxpayer.
| 11 | | (9) A detailed description of the number of New | 12 | | Employees to be
hired, and the occupation and
payroll of | 13 | | the full-time jobs to be created or retained as a result of | 14 | | the
project.
| 15 | | (10) The minimum investment the business enterprise | 16 | | will make in
capital improvements, the time period
for | 17 | | placing the property in service, and the designated | 18 | | location in Illinois
for the investment.
| 19 | | (11) A requirement that the Taxpayer shall provide | 20 | | written
notification to the Director and
the Committee not | 21 | | more than 30 days after the Taxpayer determines
that the | 22 | | minimum
job creation or retention, employment payroll, or | 23 | | investment no longer is being
or will be achieved or
| 24 | | maintained as set forth in the terms and conditions of the
| 25 | | Agreement.
| 26 | | (12) A provision that, if the total number of New |
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| 1 | | Employees falls
below a specified level, the
allowance of | 2 | | Credit shall be suspended until the number of New
Employees | 3 | | equals or exceeds
the Agreement amount.
| 4 | | (13) A detailed description of the items for which the | 5 | | costs incurred by
the Taxpayer will be included
in the | 6 | | limitation on the Credit provided in Section 5-30.
| 7 | | (13.5) A provision that, if the Taxpayer never meets | 8 | | either the investment or job creation and retention | 9 | | requirements specified in the Agreement during the entire | 10 | | 5-year period beginning on the first day of the first | 11 | | taxable year in which the Agreement is executed and ending | 12 | | on the last day of the fifth taxable year after the | 13 | | Agreement is executed, then the Agreement is automatically | 14 | | terminated on the last day of the fifth taxable year after | 15 | | the Agreement is executed and the Taxpayer is not entitled | 16 | | to the award of any credits for any of that 5-year period.
| 17 | | (14) Any other performance conditions or contract | 18 | | provisions as the
Department determines are
appropriate.
| 19 | | The Department shall post on its website a copy of each | 20 | | Agreement entered into under this Act on or after the effective | 21 | | date of this amendatory Act of the 97th General Assembly. | 22 | | Any Agreement entered into on or after the effective date | 23 | | of this amendatory Act of the 97th General Assembly is subject | 24 | | to the approval of the Economic Incentive Committee established | 25 | | under Section 5-26 of this Act. Any modifications to an | 26 | | existing Agreement that take effect on or after the effective |
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| 1 | | date of this amendatory Act of the 97th General Assembly are | 2 | | subject to the approval of the Economic Incentive Committee | 3 | | established under Section 5-26 of this Act. The Department must | 4 | | forward any proposed Agreements or modifications to the | 5 | | Economic Incentive Committee within 15 days after the terms of | 6 | | the Agreement or modification are finalized. | 7 | | (Source: P.A. 97-2, eff. 5-6-11.)
| 8 | | Section 99. Effective date. This Act takes effect July 1, | 9 | | 2012.".
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