Illinois General Assembly - Full Text of HB2411
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Full Text of HB2411  102nd General Assembly


Rep. William Davis

Filed: 4/14/2021





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2    AMENDMENT NO. ______. Amend House Bill 2411 by replacing
3everything after the enacting clause with the following:
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.



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1    (b) For taxable years beginning on or after January 1,
22019, the Department shall award credits against the taxes
3imposed under subsections (a) and (b) of Section 201 of the
4Illinois Income Tax Act as provided in Section 229 of the
5Illinois Income Tax Act.
6    (c) For purposes of this Section:
7        "Data center" means a facility: (1) whose primary
8    services are the storage, management, and processing of
9    digital data; and (2) that is used to house (i) computer
10    and network systems, including associated components such
11    as servers, network equipment and appliances,
12    telecommunications, and data storage systems, (ii) systems
13    for monitoring and managing infrastructure performance,
14    (iii) Internet-related equipment and services, (iv) data
15    communications connections, (v) environmental controls,
16    (vi) fire protection systems, and (vii) security systems
17    and services.
18        "Qualifying Illinois data center" means a new or
19    existing data center that:
20            (1) is located in the State of Illinois;
21            (2) in the case of an existing data center, made a
22        capital investment of at least $250,000,000
23        collectively by the data center operator and the
24        tenants of the data center over the 60-month period
25        immediately prior to January 1, 2020 or committed to
26        make a capital investment of at least $250,000,000



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1        over a 60-month period commencing before January 1,
2        2020 and ending after January 1, 2020; or
3            (3) in the case of a new data center, or an
4        existing data center making an upgrade, makes a
5        capital investment of at least $250,000,000 over a
6        60-month period beginning on or after January 1, 2020;
7        and
8            (4) in the case of both existing and new data
9        centers, results in the creation of at least 20
10        full-time or full-time equivalent new jobs over a
11        period of 60 months by the data center operator and the
12        tenants of the data center, collectively, associated
13        with the operation or maintenance of the data center;
14        those jobs must have a total compensation equal to or
15        greater than 120% of the average wage paid to
16        full-time employees in the county where the data
17        center is located, as determined by the U.S. Bureau of
18        Labor Statistics; and
19            (5) within 2 years 90 days after being placed in
20        service, certifies to the Department that it is carbon
21        neutral or has attained certification under one or
22        more of the following green building standards:
23                (A) BREEAM for New Construction or BREEAM
24            In-Use;
25                (B) ENERGY STAR;
26                (C) Envision;



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1                (D) ISO 50001-energy management;
2                (E) LEED for Building Design and Construction
3            or LEED for Operations and Maintenance;
4                (F) Green Globes for New Construction or Green
5            Globes for Existing Buildings;
6                (G) UL 3223; or
7                (H) an equivalent program approved by the
8            Department of Commerce and Economic Opportunity.
9        "Full-time equivalent job" means a job in which the
10    new employee works for the owner, operator, contractor, or
11    tenant of a data center or for a corporation under
12    contract with the owner, operator or tenant of a data
13    center at a rate of at least 35 hours per week. An owner,
14    operator or tenant who employs labor or services at a
15    specific site or facility under contract with another may
16    declare one full-time, permanent job for every 1,820 man
17    hours worked per year under that contract. Vacations, paid
18    holidays, and sick time are included in this computation.
19    Overtime is not considered a part of regular hours.
20        "Qualified tangible personal property" means:
21    electrical systems and equipment; climate control and
22    chilling equipment and systems; mechanical systems and
23    equipment; monitoring and secure systems; emergency
24    generators; hardware; computers; servers; data storage
25    devices; network connectivity equipment; racks; cabinets;
26    telecommunications cabling infrastructure; raised floor



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1    systems; peripheral components or systems; software;
2    mechanical, electrical, or plumbing systems; battery
3    systems; cooling systems and towers; temperature control
4    systems; other cabling; and other data center
5    infrastructure equipment and systems necessary to operate
6    qualified tangible personal property, including fixtures;
7    and component parts of any of the foregoing, including
8    installation, maintenance, repair, refurbishment, and
9    replacement of qualified tangible personal property to
10    generate, transform, transmit, distribute, or manage
11    electricity necessary to operate qualified tangible
12    personal property; and all other tangible personal
13    property that is essential to the operations of a computer
14    data center. "Qualified tangible personal property" also
15    includes building materials physically incorporated in to
16    the qualifying data center.
17    To document the exemption allowed under this Section, the
18retailer must obtain from the purchaser a copy of the
19certificate of eligibility issued by the Department.
20    (d) New and existing data centers seeking a certificate of
21exemption for new or existing facilities shall apply to the
22Department in the manner specified by the Department. The
23Department shall determine the duration of the certificate of
24exemption awarded under this Act. The duration of the
25certificate of exemption may not exceed 20 calendar years. The
26Department and any data center seeking the exemption,



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1including a data center operator on behalf of itself and its
2tenants, must enter into a memorandum of understanding that at
3a minimum provides:
4        (1) the details for determining the amount of capital
5    investment to be made;
6        (2) the number of new jobs created;
7        (3) the timeline for achieving the capital investment
8    and new job goals;
9        (4) the repayment obligation should those goals not be
10    achieved and any conditions under which repayment by the
11    qualifying data center or data center tenant claiming the
12    exemption will be required;
13        (5) the duration of the exemption; and
14        (6) other provisions as deemed necessary by the
15    Department.
16    (e) Beginning July 1, 2021, and each year thereafter, the
17Department shall annually report to the Governor and the
18General Assembly on the outcomes and effectiveness of Public
19Act 101-31 that shall include the following:
20        (1) the name of each recipient business;
21        (2) the location of the project;
22        (3) the estimated value of the credit;
23        (4) the number of new jobs and, if applicable,
24    retained jobs pledged as a result of the project; and
25        (5) whether or not the project is located in an
26    underserved area.



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1    (f) New and existing data centers seeking a certificate of
2exemption related to the rehabilitation or construction of
3data centers in the State shall require the contractor and all
4subcontractors to comply with the requirements of Section
530-22 of the Illinois Procurement Code as they apply to
6responsible bidders and to present satisfactory evidence of
7that compliance to the Department.
8    (g) New and existing data centers seeking a certificate of
9exemption for the rehabilitation or construction of data
10centers in the State shall require the contractor to enter
11into a project labor agreement approved by the Department.
12    (h) Any qualifying data center issued a certificate of
13exemption under this Section must annually report to the
14Department the total data center tax benefits that are
15received by the business. Reports are due no later than May 31
16of each year and shall cover the previous calendar year. The
17first report is for the 2019 calendar year and is due no later
18than May 31, 2020.
19    To the extent that a business issued a certificate of
20exemption under this Section has obtained an Enterprise Zone
21Building Materials Exemption Certificate or a High Impact
22Business Building Materials Exemption Certificate, no
23additional reporting for those building materials exemption
24benefits is required under this Section.
25    Failure to file a report under this subsection (h) may
26result in suspension or revocation of the certificate of



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1exemption. Factors to be considered in determining whether a
2data center certificate of exemption shall be suspended or
3revoked include, but are not limited to, prior compliance with
4the reporting requirements, cooperation in discontinuing and
5correcting violations, the extent of the violation, and
6whether the violation was willful or inadvertent.
7    (i) The Department shall not issue any new certificates of
8exemption under the provisions of this Section after July 1,
92029. This sunset shall not affect any existing certificates
10of exemption in effect on July 1, 2029.
11    (j) The Department shall adopt rules to implement and
12administer this Section.
13(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
14    Section 10. The Brownfields Redevelopment and Intermodal
15Promotion Act is amended by changing Section 3-20 as follows:
16    (20 ILCS 607/3-20)
17    Sec. 3-20. South Suburban Brownfields Redevelopment Fund;
18eligible projects. In State fiscal years 2015 through 2026
192021, all moneys in the South Suburban Brownfields
20Redevelopment Fund shall be held solely to fund eligible
21projects undertaken pursuant to the provisions of Section 3-35
22of this Act and performed either directly by Cook County
23through a development agreement with the Department, by an
24entity designated by Cook County through a development



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1agreement with the Department to perform specific tasks, or by
2an Eligible Developer or an Eligible Employer through a
3development agreement. All Eligible Projects are subject to
4review and approval by the Managing Partner and by the
5Department. The life span of the Fund may be extended past 2026
6by law.
7(Source: P.A. 101-275, eff. 8-9-19.)
8    Section 15. The New Markets Development Program Act is
9amended by changing Section 50 as follows:
10    (20 ILCS 663/50)
11    Sec. 50. Sunset. For fiscal years following fiscal year
122026 2021, qualified equity investments shall not be made
13under this Act unless reauthorization is made pursuant to this
14Section. For all fiscal years following fiscal year 2026 2021,
15unless the General Assembly adopts a joint resolution granting
16authority to the Department to approve qualified equity
17investments for the Illinois new markets development program
18and clearly describing the amount of tax credits available for
19the next fiscal year, or otherwise complies with the
20provisions of this Section, no qualified equity investments
21may be permitted to be made under this Act. The amount of
22available tax credits contained in such a resolution shall not
23exceed the limitation provided under Section 20. Nothing in
24this Section precludes a taxpayer who makes a qualified equity



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1investment prior to the expiration of authority to make
2qualified equity investments from claiming tax credits
3relating to that qualified equity investment for each
4applicable credit allowance date.
5(Source: P.A. 100-408, eff. 8-25-17.)
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".