Full Text of HB3271 98th General Assembly
HB3271sam002 98TH GENERAL ASSEMBLY | Sen. Thomas Cullerton Filed: 6/18/2013
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| 1 | | AMENDMENT TO HOUSE BILL 3271
| 2 | | AMENDMENT NO. ______. Amend House Bill 3271, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Economic Development for a Growing Economy | 6 | | Tax Credit Act is amended by changing Section 5-15 as follows: | 7 | | (35 ILCS 10/5-15) | 8 | | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | 9 | | forth in this
Act, a Taxpayer is
entitled to a Credit against | 10 | | or, as described in subsection (g) of this Section, a payment | 11 | | towards taxes imposed pursuant to subsections (a) and (b)
of | 12 | | Section 201 of the Illinois
Income Tax Act that may be imposed | 13 | | on the Taxpayer for a taxable year beginning
on or
after | 14 | | January 1, 1999,
if the Taxpayer is awarded a Credit by the | 15 | | Department under this Act for that
taxable year. | 16 | | (a) The Department shall make Credit awards under this Act |
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| 1 | | to foster job
creation and retention in Illinois. | 2 | | (b) A person that proposes a project to create new jobs in | 3 | | Illinois must
enter into an Agreement with the
Department for | 4 | | the Credit under this Act. | 5 | | (c) The Credit shall be claimed for the taxable years | 6 | | specified in the
Agreement. | 7 | | (d) The Credit shall not exceed the Incremental Income Tax | 8 | | attributable to
the project that is the subject of the | 9 | | Agreement. | 10 | | (e) Nothing herein shall prohibit a Tax Credit Award to an | 11 | | Applicant that uses a PEO if all other award criteria are | 12 | | satisfied.
| 13 | | (f) In lieu of the Credit allowed under this Act against | 14 | | the taxes imposed pursuant to subsections (a) and (b) of | 15 | | Section 201 of the Illinois Income Tax Act for any taxable year | 16 | | ending on or after December 31, 2009, the Taxpayer may elect to | 17 | | claim the Credit against its obligation to pay over withholding | 18 | | under Section 704A of the Illinois Income Tax Act. | 19 | | (1) The election under this subsection (f) may be made | 20 | | only by a Taxpayer that (i) is primarily engaged in one of | 21 | | the following business activities: water purification and | 22 | | treatment, motor vehicle metal stamping, automobile | 23 | | manufacturing, automobile and light duty motor vehicle | 24 | | manufacturing, motor vehicle manufacturing, light truck | 25 | | and utility vehicle manufacturing, heavy duty truck | 26 | | manufacturing, motor vehicle body manufacturing, cable |
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| 1 | | television infrastructure design or manufacturing, or | 2 | | wireless telecommunication or computing terminal device | 3 | | design or manufacturing for use on public networks and (ii) | 4 | | meets the following criteria: | 5 | | (A) the Taxpayer (i) had an Illinois net loss or an | 6 | | Illinois net loss deduction under Section 207 of the | 7 | | Illinois Income Tax Act for the taxable year in which | 8 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 9 | | full-time employees in this State during the taxable | 10 | | year in which the Credit is awarded, (iii) has an | 11 | | Agreement under this Act on December 14, 2009 (the | 12 | | effective date of Public Act 96-834), and (iv) is in | 13 | | compliance with all provisions of that Agreement; | 14 | | (B) the Taxpayer (i) had an Illinois net loss or an | 15 | | Illinois net loss deduction under Section 207 of the | 16 | | Illinois Income Tax Act for the taxable year in which | 17 | | the Credit is awarded, (ii) employed a minimum of 1,000 | 18 | | full-time employees in this State during the taxable | 19 | | year in which the Credit is awarded, and (iii) has | 20 | | applied for an Agreement within 365 days after December | 21 | | 14, 2009 (the effective date of Public Act 96-834); | 22 | | (C) the Taxpayer (i) had an Illinois net operating | 23 | | loss carryforward under Section 207 of the Illinois | 24 | | Income Tax Act in a taxable year ending during calendar | 25 | | year 2008, (ii) has applied for an Agreement within 150 | 26 | | days after the effective date of this amendatory Act of |
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| 1 | | the 96th General Assembly, (iii) creates at least 400 | 2 | | new jobs in Illinois, (iv) retains at least 2,000 jobs | 3 | | in Illinois that would have been at risk of relocation | 4 | | out of Illinois over a 10-year period, and (v) makes a | 5 | | capital investment of at least $75,000,000; | 6 | | (D) the Taxpayer (i) had an Illinois net operating | 7 | | loss carryforward under Section 207 of the Illinois | 8 | | Income Tax Act in a taxable year ending during calendar | 9 | | year 2009, (ii) has applied for an Agreement within 150 | 10 | | days after the effective date of this amendatory Act of | 11 | | the 96th General Assembly, (iii) creates at least 150 | 12 | | new jobs, (iv) retains at least 1,000 jobs in Illinois | 13 | | that would have been at risk of relocation out of | 14 | | Illinois over a 10-year period, and (v) makes a capital | 15 | | investment of at least $57,000,000; or | 16 | | (E) the Taxpayer (i) employed at least 2,500 | 17 | | full-time employees in the State during the year in | 18 | | which the Credit is awarded, (ii) commits to make at | 19 | | least $500,000,000 in combined capital improvements | 20 | | and project costs under the Agreement, (iii) applies | 21 | | for an Agreement between January 1, 2011 and June 30, | 22 | | 2011, (iv) executes an Agreement for the Credit during | 23 | | calendar year 2011, and (v) was incorporated no more | 24 | | than 5 years before the filing of an application for an | 25 | | Agreement. | 26 | | (1.5) The election under this subsection (f) may also |
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| 1 | | be made by a Taxpayer for any Credit awarded pursuant to an | 2 | | agreement that was executed between January 1, 2011 and | 3 | | June 30, 2011, if the Taxpayer (i) is primarily engaged in | 4 | | the manufacture of inner tubes or tires, or both, from | 5 | | natural and synthetic rubber, (ii) employs a minimum of | 6 | | 2,400 full-time employees in Illinois at the time of | 7 | | application, (iii) creates at least 350 full-time jobs and | 8 | | retains at least 250 full-time jobs in Illinois that would | 9 | | have been at risk of being created or retained outside of | 10 | | Illinois, and (iv) makes a capital investment of at least | 11 | | $200,000,000 at the project location. | 12 | | (1.6) The election under this subsection (f) may also | 13 | | be made by a Taxpayer for any Credit awarded pursuant to an | 14 | | agreement that was executed within 150 days after the | 15 | | effective date of this amendatory Act of the 97th General | 16 | | Assembly, if the Taxpayer (i) is primarily engaged in the | 17 | | operation of a discount department store, (ii) maintains | 18 | | its corporate headquarters in Illinois, (iii) employs a | 19 | | minimum of 4,250 full-time employees at its corporate | 20 | | headquarters in Illinois at the time of application, (iv) | 21 | | retains at least 4,250 full-time jobs in Illinois that | 22 | | would have been at risk of being relocated outside of | 23 | | Illinois, (v) had a minimum of $40,000,000,000 in total | 24 | | revenue in 2010, and (vi) makes a capital investment of at | 25 | | least $300,000,000 at the project location. | 26 | | (1.7) Notwithstanding any other provision of law, the |
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| 1 | | election under this subsection (f) may also be made by a | 2 | | Taxpayer for any Credit awarded pursuant to an agreement | 3 | | that was executed or applied for on or after July 1, 2011 | 4 | | and on or before March 31, 2012, if the Taxpayer is | 5 | | primarily engaged in the manufacture of original and | 6 | | aftermarket filtration parts and products for automobiles, | 7 | | motor vehicles, light duty motor vehicles, light trucks and | 8 | | utility vehicles, and heavy duty trucks, (ii) employs a | 9 | | minimum of 1,000 full-time employees in Illinois at the | 10 | | time of application, (iii) creates at least 250 full-time | 11 | | jobs in Illinois, (iv) relocates its corporate | 12 | | headquarters to Illinois from another state, and (v) makes | 13 | | a capital investment of at least $4,000,000 at the project | 14 | | location. | 15 | | (1.8) The election under this subsection (f) may also | 16 | | be made if: | 17 | | (i) the agreement awarding the Credit was executed | 18 | | on or after the effective date of this amendatory Act | 19 | | of the 98th General Assembly but not later than 150 | 20 | | days after the effective date of this amendatory Act of | 21 | | the 98th General Assembly; | 22 | | (ii) the taxpayer is primarily engaged in retail | 23 | | and business-to-business office products distribution, | 24 | | sales, and service; | 25 | | (iii) the taxpayer maintains its corporate | 26 | | headquarters in Illinois; |
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| 1 | | (iv) the taxpayer employs a minimum of 2,000 | 2 | | full-time employees at its corporate headquarters and | 3 | | non-retail corporate locations in Illinois at the time | 4 | | of application; | 5 | | (v) the taxpayer retains at least 2,000 full-time | 6 | | jobs in Illinois that would have been at risk of being | 7 | | relocated outside of Illinois as a result of a business | 8 | | combination with a third party; | 9 | | (vi) the taxpayer's total aggregate revenue, when | 10 | | combined with that third party, was at least | 11 | | $17,500,000,000 in 2012; and | 12 | | (vii) the taxpayer makes a capital investment of at | 13 | | least $150,000,000 at the project location. | 14 | | (2) An election under this subsection shall allow the | 15 | | credit to be taken against payments otherwise due under | 16 | | Section 704A of the Illinois Income Tax Act during the | 17 | | first calendar year beginning after the end of the taxable | 18 | | year in which the credit is awarded under this Act. | 19 | | (3) The election shall be made in the form and manner | 20 | | required by the Illinois Department of Revenue and, once | 21 | | made, shall be irrevocable. | 22 | | (4) If a Taxpayer who meets the requirements of | 23 | | subparagraph (A) of paragraph (1) of this subsection (f) | 24 | | elects to claim the Credit against its withholdings as | 25 | | provided in this subsection (f), then, on and after the | 26 | | date of the election, the terms of the Agreement between |
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| 1 | | the Taxpayer and the Department may not be further amended | 2 | | during the term of the Agreement. | 3 | | (g) A pass-through entity that has been awarded a credit | 4 | | under this Act, its shareholders, or its partners may treat | 5 | | some or all of the credit awarded pursuant to this Act as a tax | 6 | | payment for purposes of the Illinois Income Tax Act. The term | 7 | | "tax payment" means a payment as described in Article 6 or | 8 | | Article 8 of the Illinois Income Tax Act or a composite payment | 9 | | made by a pass-through entity on behalf of any of its | 10 | | shareholders or partners to satisfy such shareholders' or | 11 | | partners' taxes imposed pursuant to subsections (a) and (b) of | 12 | | Section 201 of the Illinois Income Tax Act. In no event shall | 13 | | the amount of the award credited pursuant to this Act exceed | 14 | | the Illinois income tax liability of the pass-through entity or | 15 | | its shareholders or partners for the taxable year. | 16 | | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | 17 | | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | 18 | | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.".
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