State of Illinois
2021 and 2022


Introduced 2/17/2021, by Rep. William Davis


20 ILCS 605/605-1025
20 ILCS 607/3-20
20 ILCS 663/25
20 ILCS 663/45
20 ILCS 663/50

    Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that a qualifying Illinois date center is a place, among other criteria, that within 2 years (currently, 90 days) after being placed in service, certifies that it is carbon neutral or has attained other specified certification. Amends the Brownfields Redevelopment and Intermodal Promotion Act. Extends the use of the South Suburban Brownfields Redevelopment Fund. Amends the New Markets Development Program Act. Modifies provisions concerning certification of qualified equity investments and allocation thereof. Provides further rulemaking requirements. Provides that for fiscal years following fiscal year 2026 (currently, 2021), qualified equity investments under the Act shall not be made unless reauthorization is made. Makes other changes. Effective immediately.

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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois
6is amended by changing Section 605-1025 as follows:
7    (20 ILCS 605/605-1025)
8    Sec. 605-1025. Data center investment.
9    (a) The Department shall issue certificates of exemption
10from the Retailers' Occupation Tax Act, the Use Tax Act, the
11Service Use Tax Act, and the Service Occupation Tax Act, all
12locally-imposed retailers' occupation taxes administered and
13collected by the Department, the Chicago non-titled Use Tax,
14and a credit certification against the taxes imposed under
15subsections (a) and (b) of Section 201 of the Illinois Income
16Tax Act to qualifying Illinois data centers.
17    (b) For taxable years beginning on or after January 1,
182019, the Department shall award credits against the taxes
19imposed under subsections (a) and (b) of Section 201 of the
20Illinois Income Tax Act as provided in Section 229 of the
21Illinois Income Tax Act.
22    (c) For purposes of this Section:
23        "Data center" means a facility: (1) whose primary



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1    services are the storage, management, and processing of
2    digital data; and (2) that is used to house (i) computer
3    and network systems, including associated components such
4    as servers, network equipment and appliances,
5    telecommunications, and data storage systems, (ii) systems
6    for monitoring and managing infrastructure performance,
7    (iii) Internet-related equipment and services, (iv) data
8    communications connections, (v) environmental controls,
9    (vi) fire protection systems, and (vii) security systems
10    and services.
11        "Qualifying Illinois data center" means a new or
12    existing data center that:
13            (1) is located in the State of Illinois;
14            (2) in the case of an existing data center, made a
15        capital investment of at least $250,000,000
16        collectively by the data center operator and the
17        tenants of the data center over the 60-month period
18        immediately prior to January 1, 2020 or committed to
19        make a capital investment of at least $250,000,000
20        over a 60-month period commencing before January 1,
21        2020 and ending after January 1, 2020; or
22            (3) in the case of a new data center, or an
23        existing data center making an upgrade, makes a
24        capital investment of at least $250,000,000 over a
25        60-month period beginning on or after January 1, 2020;
26        and



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1            (4) in the case of both existing and new data
2        centers, results in the creation of at least 20
3        full-time or full-time equivalent new jobs over a
4        period of 60 months by the data center operator and the
5        tenants of the data center, collectively, associated
6        with the operation or maintenance of the data center;
7        those jobs must have a total compensation equal to or
8        greater than 120% of the average wage paid to
9        full-time employees in the county where the data
10        center is located, as determined by the U.S. Bureau of
11        Labor Statistics; and
12            (5) within 2 years 90 days after being placed in
13        service, certifies to the Department that it is carbon
14        neutral or has attained certification under one or
15        more of the following green building standards:
16                (A) BREEAM for New Construction or BREEAM
17            In-Use;
18                (B) ENERGY STAR;
19                (C) Envision;
20                (D) ISO 50001-energy management;
21                (E) LEED for Building Design and Construction
22            or LEED for Operations and Maintenance;
23                (F) Green Globes for New Construction or Green
24            Globes for Existing Buildings;
25                (G) UL 3223; or
26                (H) an equivalent program approved by the



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1            Department of Commerce and Economic Opportunity.
2        "Full-time equivalent job" means a job in which the
3    new employee works for the owner, operator, contractor, or
4    tenant of a data center or for a corporation under
5    contract with the owner, operator or tenant of a data
6    center at a rate of at least 35 hours per week. An owner,
7    operator or tenant who employs labor or services at a
8    specific site or facility under contract with another may
9    declare one full-time, permanent job for every 1,820 man
10    hours worked per year under that contract. Vacations, paid
11    holidays, and sick time are included in this computation.
12    Overtime is not considered a part of regular hours.
13        "Qualified tangible personal property" means:
14    electrical systems and equipment; climate control and
15    chilling equipment and systems; mechanical systems and
16    equipment; monitoring and secure systems; emergency
17    generators; hardware; computers; servers; data storage
18    devices; network connectivity equipment; racks; cabinets;
19    telecommunications cabling infrastructure; raised floor
20    systems; peripheral components or systems; software;
21    mechanical, electrical, or plumbing systems; battery
22    systems; cooling systems and towers; temperature control
23    systems; other cabling; and other data center
24    infrastructure equipment and systems necessary to operate
25    qualified tangible personal property, including fixtures;
26    and component parts of any of the foregoing, including



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1    installation, maintenance, repair, refurbishment, and
2    replacement of qualified tangible personal property to
3    generate, transform, transmit, distribute, or manage
4    electricity necessary to operate qualified tangible
5    personal property; and all other tangible personal
6    property that is essential to the operations of a computer
7    data center. "Qualified tangible personal property" also
8    includes building materials physically incorporated in to
9    the qualifying data center.
10    To document the exemption allowed under this Section, the
11retailer must obtain from the purchaser a copy of the
12certificate of eligibility issued by the Department.
13    (d) New and existing data centers seeking a certificate of
14exemption for new or existing facilities shall apply to the
15Department in the manner specified by the Department. The
16Department shall determine the duration of the certificate of
17exemption awarded under this Act. The duration of the
18certificate of exemption may not exceed 20 calendar years. The
19Department and any data center seeking the exemption,
20including a data center operator on behalf of itself and its
21tenants, must enter into a memorandum of understanding that at
22a minimum provides:
23        (1) the details for determining the amount of capital
24    investment to be made;
25        (2) the number of new jobs created;
26        (3) the timeline for achieving the capital investment



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1    and new job goals;
2        (4) the repayment obligation should those goals not be
3    achieved and any conditions under which repayment by the
4    qualifying data center or data center tenant claiming the
5    exemption will be required;
6        (5) the duration of the exemption; and
7        (6) other provisions as deemed necessary by the
8    Department.
9    (e) Beginning July 1, 2021, and each year thereafter, the
10Department shall annually report to the Governor and the
11General Assembly on the outcomes and effectiveness of Public
12Act 101-31 that shall include the following:
13        (1) the name of each recipient business;
14        (2) the location of the project;
15        (3) the estimated value of the credit;
16        (4) the number of new jobs and, if applicable,
17    retained jobs pledged as a result of the project; and
18        (5) whether or not the project is located in an
19    underserved area.
20    (f) New and existing data centers seeking a certificate of
21exemption related to the rehabilitation or construction of
22data centers in the State shall require the contractor and all
23subcontractors to comply with the requirements of Section
2430-22 of the Illinois Procurement Code as they apply to
25responsible bidders and to present satisfactory evidence of
26that compliance to the Department.



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1    (g) New and existing data centers seeking a certificate of
2exemption for the rehabilitation or construction of data
3centers in the State shall require the contractor to enter
4into a project labor agreement approved by the Department.
5    (h) Any qualifying data center issued a certificate of
6exemption under this Section must annually report to the
7Department the total data center tax benefits that are
8received by the business. Reports are due no later than May 31
9of each year and shall cover the previous calendar year. The
10first report is for the 2019 calendar year and is due no later
11than May 31, 2020.
12    To the extent that a business issued a certificate of
13exemption under this Section has obtained an Enterprise Zone
14Building Materials Exemption Certificate or a High Impact
15Business Building Materials Exemption Certificate, no
16additional reporting for those building materials exemption
17benefits is required under this Section.
18    Failure to file a report under this subsection (h) may
19result in suspension or revocation of the certificate of
20exemption. Factors to be considered in determining whether a
21data center certificate of exemption shall be suspended or
22revoked include, but are not limited to, prior compliance with
23the reporting requirements, cooperation in discontinuing and
24correcting violations, the extent of the violation, and
25whether the violation was willful or inadvertent.
26    (i) The Department shall not issue any new certificates of



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1exemption under the provisions of this Section after July 1,
22029. This sunset shall not affect any existing certificates
3of exemption in effect on July 1, 2029.
4    (j) The Department shall adopt rules to implement and
5administer this Section.
6(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
7    Section 10. The Brownfields Redevelopment and Intermodal
8Promotion Act is amended by changing Section 3-20 as follows:
9    (20 ILCS 607/3-20)
10    Sec. 3-20. South Suburban Brownfields Redevelopment Fund;
11eligible projects. In State fiscal years 2015 through 2031
122021, all moneys in the South Suburban Brownfields
13Redevelopment Fund shall be held solely to fund eligible
14projects undertaken pursuant to the provisions of Section 3-35
15of this Act and performed either directly by Cook County
16through a development agreement with the Department, by an
17entity designated by Cook County through a development
18agreement with the Department to perform specific tasks, or by
19an Eligible Developer or an Eligible Employer through a
20development agreement. All Eligible Projects are subject to
21review and approval by the Managing Partner and by the
22Department. The life span of the Fund may be extended past 2036
232026 by law.
24(Source: P.A. 101-275, eff. 8-9-19.)



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1    Section 15. The New Markets Development Program Act is
2amended by changing Sections 25, 45, and 50 as follows:
3    (20 ILCS 663/25)
4    Sec. 25. Certification of qualified equity investments.
5    (a) A qualified community development entity that seeks to
6have an equity investment or long-term debt security
7designated as a qualified equity investment and eligible for
8tax credits under this Section shall apply to the Department.
9The qualified community development entity must submit an
10application on a form that the Department provides that
12        (1) The name, address, tax identification number of
13    the entity, and evidence of the entity's certification as
14    a qualified community development entity.
15        (2) A copy of the allocation agreement executed by the
16    entity, or its controlling entity, and the Community
17    Development Financial Institutions Fund.
18        (3) A certificate executed by an executive officer of
19    the entity attesting that the allocation agreement remains
20    in effect and has not been revoked or cancelled by the
21    Community Development Financial Institutions Fund.
22        (4) A description of the proposed amount, structure,
23    and purchaser of the equity investment or long-term debt
24    security.



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1        (5) The name and tax identification number of any
2    taxpayer eligible to utilize tax credits earned as a
3    result of the issuance of the qualified equity investment.
4        (6) Information regarding the proposed use of proceeds
5    from the issuance of the qualified equity investment.
6        (7) A nonrefundable application fee of $5,000. This
7    fee shall be paid to the Department and shall be required
8    of each application submitted.
9        (8) With respect to qualified equity investments made
10    on or after January 1, 2017, the amount of qualified
11    equity investment authority the applicant agrees to
12    designate as a federal qualified equity investment under
13    Section 45D of the Internal Revenue Code, including a copy
14    of the screen shot from the Community Development
15    Financial Institutions Fund's Allocation Tracking System
16    of the applicant's remaining federal qualified equity
17    investment authority.
18    (b) (Blank). Within 30 days after receipt of a completed
19application containing the information necessary for the
20Department to certify a potential qualified equity investment,
21including the payment of the application fee, the Department
22shall grant or deny the application in full or in part. If the
23Department denies any part of the application, it shall inform
24the qualified community development entity of the grounds for
25the denial. If the qualified community development entity
26provides any additional information required by the Department



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1or otherwise completes its application within 15 days of the
2notice of denial, the application shall be considered
3completed as of the original date of submission. If the
4qualified community development entity fails to provide the
5information or complete its application within the 15-day
6period, the application remains denied and must be resubmitted
7in full with a new submission date.
8    (c) (Blank). If the application is deemed complete, the
9Department shall certify the proposed equity investment or
10long-term debt security as a qualified equity investment that
11is eligible for tax credits under this Section, subject to the
12limitations contained in Section 20. The Department shall
13provide written notice of the certification to the qualified
14community development entity. The notice shall include the
15names of those taxpayers who are eligible to utilize the
16credits and their respective credit amounts. If the names of
17the taxpayers who are eligible to utilize the credits change
18due to a transfer of a qualified equity investment or a change
19in an allocation pursuant to Section 15, the qualified
20community development entity shall notify the Department of
21such change.
22    (d) (Blank). With respect to applications received before
23January 1, 2017, the Department shall certify qualified equity
24investments in the order applications are received by the
25Department. Applications received on the same day shall be
26deemed to have been received simultaneously. For applications



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1received on the same day and deemed complete, the Department
2shall certify, consistent with remaining tax credit capacity,
3qualified equity investments in proportionate percentages
4based upon the ratio of the amount of qualified equity
5investment requested in an application to the total amount of
6qualified equity investments requested in all applications
7received on the same day.
8    (d-5) (Blank). With respect to applications received on or
9after January 1, 2017, the Department shall certify
10applications by applicants that agree to designate qualified
11equity investments as federal qualified equity investments in
12accordance with item (8) of subsection (a) of this Section in
13proportionate percentages based upon the ratio of the amount
14of qualified equity investments requested in an application to
15be designated as federal qualified equity investments to the
16total amount of qualified equity investments to be designated
17as federal qualified equity investments requested in all
18applications received on the same day.
19    (d-10) (Blank). With respect to applications received on
20or after January 1, 2017, after complying with subsection
21(d-5), the Department shall certify the qualified equity
22investments of all other applicants, including the remaining
23qualified equity investment authority requested by applicants
24not designated as federal qualified equity investments in
25accordance with item (8) of subsection (a) of this Section, in
26proportionate percentages based upon the ratio of the amount



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1of qualified equity investments requested in the applications
2to the total amount of qualified equity investments requested
3in all applications received on the same day.
4    (e) Once the Department has certified qualified equity
5investments that, on a cumulative basis, are eligible for
6$20,000,000 in tax credits, the Department may not certify any
7more qualified equity investments. If a pending request cannot
8be fully certified, the Department shall certify the portion
9that may be certified unless the qualified community
10development entity elects to withdraw its request rather than
11receive partial credit.
12    (f) (Blank). Within 30 days after receiving notice of
13certification, the qualified community development entity
14shall (i) issue the qualified equity investment and receive
15cash in the amount of the certified amount and (ii) with
16respect to qualified equity investments made on or after
17January 1, 2017, if applicable, designate the required amount
18of qualified equity investment authority as a federal
19qualified equity investment. The qualified community
20development entity must provide the Department with evidence
21of the receipt of the cash investment within 10 business days
22after receipt and, with respect to qualified equity
23investments made on or after January 1, 2017, if applicable,
24provide evidence that the required amount of qualified equity
25investment authority was designated as a federal qualified
26equity investment. If the qualified community development



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1entity does not receive the cash investment and issue the
2qualified equity investment within 30 days following receipt
3of the certification notice, the certification shall lapse and
4the entity may not issue the qualified equity investment
5without reapplying to the Department for certification. A
6certification that lapses reverts back to the Department and
7may be reissued only in accordance with the application
8process outline in this Section 25.
9    (g) Allocation rounds enabled by this Act shall be applied
10for according to the following schedule:
11        (1) (blank); on January 2, 2019, $125,000,000 of
12    qualified equity investments; and
13        (2) not less than 45 days after but not more than 90
14    days after the Community Development Financial
15    Institutions Fund of the United States Department of the
16    Treasury announces allocation awards under a Notice of
17    Funding Availability that is published in the Federal
18    Register on after September 6, 2019, $125,000,000 of
19    qualified equity investments; and .
20        (3) for any round occurring after January 1, 2022, at
21    times published on the Department's website.
22(Source: P.A. 100-408, eff. 8-25-17; 101-604, eff. 12-13-19.)
23    (20 ILCS 663/45)
24    Sec. 45. Examination and Rulemaking.
25    (a) The Department may conduct examinations to verify that



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1the tax credits under this Act have been received and applied
2according to the requirements of this Act and to verify that no
3event has occurred that would result in a recapture of tax
4credits under Section 40.
5    (b) The Neither the Department and nor the Department of
6Revenue shall have the authority to adopt promulgate rules
7under the Act, including, but not limited to, the areas of
8eligibility criteria, application review, award procedures,
9and prohibited activities and interests. Rules relating to
10eligibility may include criteria that prioritize investments
11in targeted industries or that are likely to increase local
12employment. but the Department and the Department of Revenue
13shall have the authority to issue advisory letters to
14individual qualified community development entities and their
15investors that are limited to the specific facts outlined in
16an advisory letter request from a qualified community
17development entity. Such rulings cannot be relied upon by any
18person or entity other than the qualified community
19development entity that requested the letter and the taxpayers
20that are entitled to any tax credits generated from
21investments in such entity. For purposes of this subsection,
22"rules" is given the meaning contained in Section 1-70 of the
23Illinois Administrative Procedure Act.
24    (c) (Blank). In rendering advisory letters and making
25other determinations under this Act, to the extent applicable,
26the Department and the Department of Revenue shall look for



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1guidance to Section 45D of the Internal Revenue Code of 1986,
2as amended, and the rules and regulations issued thereunder.
3(Source: P.A. 95-1024, eff. 12-31-08.)
4    (20 ILCS 663/50)
5    Sec. 50. Sunset. For fiscal years following fiscal year
62026 2021, qualified equity investments shall not be made
7under this Act unless reauthorization is made pursuant to this
8Section. For all fiscal years following fiscal year 2026 2021,
9unless the General Assembly adopts a joint resolution granting
10authority to the Department to approve qualified equity
11investments for the Illinois new markets development program
12and clearly describing the amount of tax credits available for
13the next fiscal year, or otherwise complies with the
14provisions of this Section, no qualified equity investments
15may be permitted to be made under this Act. The amount of
16available tax credits contained in such a resolution shall not
17exceed the limitation provided under Section 20. Nothing in
18this Section precludes a taxpayer who makes a qualified equity
19investment prior to the expiration of authority to make
20qualified equity investments from claiming tax credits
21relating to that qualified equity investment for each
22applicable credit allowance date.
23(Source: P.A. 100-408, eff. 8-25-17.)
24    Section 99. Effective date. This Act takes effect upon
25becoming law.