Illinois General Assembly - Full Text of HB3174
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Full Text of HB3174  102nd General Assembly




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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 Illinois Enterprise Zone Act is amended by
5changing Section 5.5 as follows:
6    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
7    Sec. 5.5. High Impact Business.
8    (a) In order to respond to unique opportunities to assist
9in the encouragement, development, growth, and expansion of
10the private sector through large scale investment and
11development projects, the Department is authorized to receive
12and approve applications for the designation of "High Impact
13Businesses" in Illinois subject to the following conditions:
14        (1) such applications may be submitted at any time
15    during the year;
16        (2) such business is not located, at the time of
17    designation, in an enterprise zone designated pursuant to
18    this Act;
19        (3) the business intends to do one or more of the
20    following:
21            (A) the business intends to make a minimum
22        investment of $12,000,000 which will be placed in
23        service in qualified property and intends to create



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1        500 full-time equivalent jobs at a designated location
2        in Illinois or intends to make a minimum investment of
3        $30,000,000 which will be placed in service in
4        qualified property and intends to retain 1,500
5        full-time retained jobs at a designated location in
6        Illinois. The business must certify in writing that
7        the investments would not be placed in service in
8        qualified property and the job creation or job
9        retention would not occur without the tax credits and
10        exemptions set forth in subsection (b) of this
11        Section. The terms "placed in service" and "qualified
12        property" have the same meanings as described in
13        subsection (h) of Section 201 of the Illinois Income
14        Tax Act; or
15            (B) the business intends to establish a new
16        electric generating facility at a designated location
17        in Illinois. "New electric generating facility", for
18        purposes of this Section, means a newly-constructed
19        electric generation plant or a newly-constructed
20        generation capacity expansion at an existing electric
21        generation plant, including the transmission lines and
22        associated equipment that transfers electricity from
23        points of supply to points of delivery, and for which
24        such new foundation construction commenced not sooner
25        than July 1, 2001. Such facility shall be designed to
26        provide baseload electric generation and shall operate



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1        on a continuous basis throughout the year; and (i)
2        shall have an aggregate rated generating capacity of
3        at least 1,000 megawatts for all new units at one site
4        if it uses natural gas as its primary fuel and
5        foundation construction of the facility is commenced
6        on or before December 31, 2004, or shall have an
7        aggregate rated generating capacity of at least 400
8        megawatts for all new units at one site if it uses coal
9        or gases derived from coal as its primary fuel and
10        shall support the creation of at least 150 new
11        Illinois coal mining jobs, or (ii) shall be funded
12        through a federal Department of Energy grant before
13        December 31, 2010 and shall support the creation of
14        Illinois coal-mining jobs, or (iii) shall use coal
15        gasification or integrated gasification-combined cycle
16        units that generate electricity or chemicals, or both,
17        and shall support the creation of Illinois coal-mining
18        jobs. The business must certify in writing that the
19        investments necessary to establish a new electric
20        generating facility would not be placed in service and
21        the job creation in the case of a coal-fueled plant
22        would not occur without the tax credits and exemptions
23        set forth in subsection (b-5) of this Section. The
24        term "placed in service" has the same meaning as
25        described in subsection (h) of Section 201 of the
26        Illinois Income Tax Act; or



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1            (B-5) the business intends to establish a new
2        gasification facility at a designated location in
3        Illinois. As used in this Section, "new gasification
4        facility" means a newly constructed coal gasification
5        facility that generates chemical feedstocks or
6        transportation fuels derived from coal (which may
7        include, but are not limited to, methane, methanol,
8        and nitrogen fertilizer), that supports the creation
9        or retention of Illinois coal-mining jobs, and that
10        qualifies for financial assistance from the Department
11        before December 31, 2010. A new gasification facility
12        does not include a pilot project located within
13        Jefferson County or within a county adjacent to
14        Jefferson County for synthetic natural gas from coal;
15        or
16            (C) the business intends to establish production
17        operations at a new coal mine, re-establish production
18        operations at a closed coal mine, or expand production
19        at an existing coal mine at a designated location in
20        Illinois not sooner than July 1, 2001; provided that
21        the production operations result in the creation of
22        150 new Illinois coal mining jobs as described in
23        subdivision (a)(3)(B) of this Section, and further
24        provided that the coal extracted from such mine is
25        utilized as the predominant source for a new electric
26        generating facility. The business must certify in



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1        writing that the investments necessary to establish a
2        new, expanded, or reopened coal mine would not be
3        placed in service and the job creation would not occur
4        without the tax credits and exemptions set forth in
5        subsection (b-5) of this Section. The term "placed in
6        service" has the same meaning as described in
7        subsection (h) of Section 201 of the Illinois Income
8        Tax Act; or
9            (D) the business intends to construct new
10        transmission facilities or upgrade existing
11        transmission facilities at designated locations in
12        Illinois, for which construction commenced not sooner
13        than July 1, 2001. For the purposes of this Section,
14        "transmission facilities" means transmission lines
15        with a voltage rating of 115 kilovolts or above,
16        including associated equipment, that transfer
17        electricity from points of supply to points of
18        delivery and that transmit a majority of the
19        electricity generated by a new electric generating
20        facility designated as a High Impact Business in
21        accordance with this Section. The business must
22        certify in writing that the investments necessary to
23        construct new transmission facilities or upgrade
24        existing transmission facilities would not be placed
25        in service without the tax credits and exemptions set
26        forth in subsection (b-5) of this Section. The term



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1        "placed in service" has the same meaning as described
2        in subsection (h) of Section 201 of the Illinois
3        Income Tax Act; or
4            (E) the business intends to establish a new wind
5        power facility at a designated location in Illinois.
6        For purposes of this Section, "new wind power
7        facility" means a newly constructed electric
8        generation facility, or a newly constructed expansion
9        of an existing electric generation facility, placed in
10        service on or after July 1, 2009, that generates
11        electricity using wind energy devices, and such
12        facility shall be deemed to include all associated
13        transmission lines, substations, and other equipment
14        related to the generation of electricity from wind
15        energy devices. For purposes of this Section, "wind
16        energy device" means any device, with a nameplate
17        capacity of at least 0.5 megawatts, that is used in the
18        process of converting kinetic energy from the wind to
19        generate electricity; or
20            (F) the business commits to (i) make a minimum
21        investment of $500,000,000, which will be placed in
22        service in a qualified property, (ii) create 125
23        full-time equivalent jobs at a designated location in
24        Illinois, (iii) establish a fertilizer plant at a
25        designated location in Illinois that complies with the
26        set-back standards as described in Table 1: Initial



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1        Isolation and Protective Action Distances in the 2012
2        Emergency Response Guidebook published by the United
3        States Department of Transportation, (iv) pay a
4        prevailing wage for employees at that location who are
5        engaged in construction activities, and (v) secure an
6        appropriate level of general liability insurance to
7        protect against catastrophic failure of the fertilizer
8        plant or any of its constituent systems; in addition,
9        the business must agree to enter into a construction
10        project labor agreement including provisions
11        establishing wages, benefits, and other compensation
12        for employees performing work under the project labor
13        agreement at that location; for the purposes of this
14        Section, "fertilizer plant" means a newly constructed
15        or upgraded plant utilizing gas used in the production
16        of anhydrous ammonia and downstream nitrogen
17        fertilizer products for resale; for the purposes of
18        this Section, "prevailing wage" means the hourly cash
19        wages plus fringe benefits for training and
20        apprenticeship programs approved by the U.S.
21        Department of Labor, Bureau of Apprenticeship and
22        Training, health and welfare, insurance, vacations and
23        pensions paid generally, in the locality in which the
24        work is being performed, to employees engaged in work
25        of a similar character on public works; this paragraph
26        (F) applies only to businesses that submit an



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1        application to the Department within 60 days after
2        July 25, 2013 (the effective date of Public Act
3        98-109) this amendatory Act of the 98th General
4        Assembly; and
5        (4) no later than 90 days after an application is
6    submitted, the Department shall notify the applicant of
7    the Department's determination of the qualification of the
8    proposed High Impact Business under this Section.
9    (b) Businesses designated as High Impact Businesses
10pursuant to subdivision (a)(3)(A) of this Section shall
11qualify for the credits and exemptions described in the
12following Acts: Section 9-222 and Section 9-222.1A of the
13Public Utilities Act, subsection (h) of Section 201 of the
14Illinois Income Tax Act, and Section 1d of the Retailers'
15Occupation Tax Act; provided that these credits and exemptions
16described in these Acts shall not be authorized until the
17minimum investments set forth in subdivision (a)(3)(A) of this
18Section have been placed in service in qualified properties
19and, in the case of the exemptions described in the Public
20Utilities Act and Section 1d of the Retailers' Occupation Tax
21Act, the minimum full-time equivalent jobs or full-time
22retained jobs set forth in subdivision (a)(3)(A) of this
23Section have been created or retained. Businesses designated
24as High Impact Businesses under this Section shall also
25qualify for the exemption described in Section 5l of the
26Retailers' Occupation Tax Act. The credit provided in



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1subsection (h) of Section 201 of the Illinois Income Tax Act
2shall be applicable to investments in qualified property as
3set forth in subdivision (a)(3)(A) of this Section.
4    (b-5) Businesses designated as High Impact Businesses
5pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
6and (a)(3)(D) of this Section shall qualify for the credits
7and exemptions described in the following Acts: Section 51 of
8the Retailers' Occupation Tax Act, Section 9-222 and Section
99-222.1A of the Public Utilities Act, and subsection (h) of
10Section 201 of the Illinois Income Tax Act; however, the
11credits and exemptions authorized under Section 9-222 and
12Section 9-222.1A of the Public Utilities Act, and subsection
13(h) of Section 201 of the Illinois Income Tax Act shall not be
14authorized until the new electric generating facility, the new
15gasification facility, the new transmission facility, or the
16new, expanded, or reopened coal mine is operational, except
17that a new electric generating facility whose primary fuel
18source is natural gas is eligible only for the exemption under
19Section 5l of the Retailers' Occupation Tax Act.
20    (b-6) Businesses designated as High Impact Businesses
21pursuant to subdivision (a)(3)(E) of this Section shall
22qualify for the exemptions described in Section 5l of the
23Retailers' Occupation Tax Act; any business so designated as a
24High Impact Business being, for purposes of this Section, a
25"Wind Energy Business".
26    (b-7) Beginning on January 1, 2021, businesses designated



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1as High Impact Businesses by the Department shall qualify for
2the High Impact Business construction jobs credit under
3subsection (h-5) of Section 201 of the Illinois Income Tax Act
4if the business meets the criteria set forth in subsection (i)
5of this Section. The total aggregate amount of credits awarded
6under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
7this amendatory Act of the 101st General Assembly) shall not
8exceed $20,000,000 in any State fiscal year.
9    (c) High Impact Businesses located in federally designated
10foreign trade zones or sub-zones are also eligible for
11additional credits, exemptions and deductions as described in
12the following Acts: Section 9-221 and Section 9-222.1 of the
13Public Utilities Act; and subsection (g) of Section 201, and
14Section 203 of the Illinois Income Tax Act.
15    (d) Except for businesses contemplated under subdivision
16(a)(3)(E) of this Section, existing Illinois businesses which
17apply for designation as a High Impact Business must provide
18the Department with the prospective plan for which 1,500
19full-time retained jobs would be eliminated in the event that
20the business is not designated.
21    (e) Except for new wind power facilities contemplated
22under subdivision (a)(3)(E) of this Section, new proposed
23facilities which apply for designation as High Impact Business
24must provide the Department with proof of alternative
25non-Illinois sites which would receive the proposed investment
26and job creation in the event that the business is not



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1designated as a High Impact Business.
2    (f) Except for businesses contemplated under subdivision
3(a)(3)(E) of this Section, in the event that a business is
4designated a High Impact Business and it is later determined
5after reasonable notice and an opportunity for a hearing as
6provided under the Illinois Administrative Procedure Act, that
7the business would have placed in service in qualified
8property the investments and created or retained the requisite
9number of jobs without the benefits of the High Impact
10Business designation, the Department shall be required to
11immediately revoke the designation and notify the Director of
12the Department of Revenue who shall begin proceedings to
13recover all wrongfully exempted State taxes with interest. The
14business shall also be ineligible for all State funded
15Department programs for a period of 10 years.
16    (g) The Department shall revoke a High Impact Business
17designation if the participating business fails to comply with
18the terms and conditions of the designation. However, the
19penalties for new wind power facilities or Wind Energy
20Businesses for failure to comply with any of the terms or
21conditions of the Illinois Prevailing Wage Act shall be only
22those penalties identified in the Illinois Prevailing Wage
23Act, and the Department shall not revoke a High Impact
24Business designation as a result of the failure to comply with
25any of the terms or conditions of the Illinois Prevailing Wage
26Act in relation to a new wind power facility or a Wind Energy



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2    (h) Prior to designating a business, the Department shall
3provide the members of the General Assembly and Commission on
4Government Forecasting and Accountability with a report
5setting forth the terms and conditions of the designation and
6guarantees that have been received by the Department in
7relation to the proposed business being designated.
8    (i) High Impact Business construction jobs credit.
9Beginning on January 1, 2021, a High Impact Business may
10receive a tax credit against the tax imposed under subsections
11(a) and (b) of Section 201 of the Illinois Income Tax Act in an
12amount equal to 50% of the amount of the incremental income tax
13attributable to High Impact Business construction jobs credit
14employees employed in the course of completing a High Impact
15Business construction jobs project. However, the High Impact
16Business construction jobs credit may equal 75% of the amount
17of the incremental income tax attributable to High Impact
18Business construction jobs credit employees if the High Impact
19Business construction jobs credit project is located in an
20underserved area.
21    The Department shall certify to the Department of Revenue:
22(1) the identity of taxpayers that are eligible for the High
23Impact Business construction jobs credit; and (2) the amount
24of High Impact Business construction jobs credits that are
25claimed pursuant to subsection (h-5) of Section 201 of the
26Illinois Income Tax Act in each taxable year. Any business



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1entity that receives a High Impact Business construction jobs
2credit shall maintain a certified payroll pursuant to
3subsection (j) of this Section.
4    As used in this subsection (i):
5    "High Impact Business construction jobs credit" means an
6amount equal to 50% (or 75% if the High Impact Business
7construction project is located in an underserved area) of the
8incremental income tax attributable to High Impact Business
9construction job employees. The total aggregate amount of
10credits awarded under the Blue Collar Jobs Act (Article 20 of
11Public Act 101-9 this amendatory Act of the 101st General
12Assembly) shall not exceed $20,000,000 in any State fiscal
14    "High Impact Business construction job employee" means a
15laborer or worker who is employed by an Illinois contractor or
16subcontractor in the actual construction work on the site of a
17High Impact Business construction job project.
18    "High Impact Business construction jobs project" means
19building a structure or building or making improvements of any
20kind to real property, undertaken and commissioned by a
21business that was designated as a High Impact Business by the
22Department. The term "High Impact Business construction jobs
23project" does not include the routine operation, routine
24repair, or routine maintenance of existing structures,
25buildings, or real property.
26    "Incremental income tax" means the total amount withheld



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1during the taxable year from the compensation of High Impact
2Business construction job employees.
3    "Underserved area" means a geographic area that meets one
4or more of the following conditions:
5        (1) the area has a poverty rate of at least 20%
6    according to the latest federal decennial census;
7        (2) 75% or more of the children in the area
8    participate in the federal free lunch program according to
9    reported statistics from the State Board of Education;
10        (3) at least 20% of the households in the area receive
11    assistance under the Supplemental Nutrition Assistance
12    Program (SNAP); or
13        (4) the area has an average unemployment rate, as
14    determined by the Illinois Department of Employment
15    Security, that is more than 120% of the national
16    unemployment average, as determined by the U.S. Department
17    of Labor, for a period of at least 2 consecutive calendar
18    years preceding the date of the application.
19    (j) Each contractor and subcontractor who is engaged in
20and executing a High Impact Business Construction jobs
21project, as defined under subsection (i) of this Section, for
22a business that is entitled to a credit pursuant to subsection
23(i) of this Section shall:
24        (1) make and keep, for a period of 5 years from the
25    date of the last payment made on or after June 5, 2019 (the
26    effective date of Public Act 101-9) this amendatory Act of



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1    the 101st General Assembly on a contract or subcontract
2    for a High Impact Business Construction Jobs Project,
3    records for all laborers and other workers employed by the
4    contractor or subcontractor on the project; the records
5    shall include:
6            (A) the worker's name;
7            (B) the worker's address;
8            (C) the worker's telephone number, if available;
9            (D) the worker's social security number;
10            (E) the worker's classification or
11        classifications;
12            (F) the worker's gross and net wages paid in each
13        pay period;
14            (G) the worker's number of hours worked each day;
15            (H) the worker's starting and ending times of work
16        each day;
17            (I) the worker's hourly wage rate; and
18            (J) the worker's hourly overtime wage rate;
19        (2) no later than the 15th day of each calendar month,
20    provide a certified payroll for the immediately preceding
21    month to the taxpayer in charge of the High Impact
22    Business construction jobs project; within 5 business days
23    after receiving the certified payroll, the taxpayer shall
24    file the certified payroll with the Department of Labor
25    and the Department of Commerce and Economic Opportunity; a
26    certified payroll must be filed for only those calendar



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1    months during which construction on a High Impact Business
2    construction jobs project has occurred; the certified
3    payroll shall consist of a complete copy of the records
4    identified in paragraph (1) of this subsection (j), but
5    may exclude the starting and ending times of work each
6    day; the certified payroll shall be accompanied by a
7    statement signed by the contractor or subcontractor or an
8    officer, employee, or agent of the contractor or
9    subcontractor which avers that:
10            (A) he or she has examined the certified payroll
11        records required to be submitted by the Act and such
12        records are true and accurate; and
13            (B) the contractor or subcontractor is aware that
14        filing a certified payroll that he or she knows to be
15        false is a Class A misdemeanor.
16    A general contractor is not prohibited from relying on a
17certified payroll of a lower-tier subcontractor, provided the
18general contractor does not knowingly rely upon a
19subcontractor's false certification.
20    Any contractor or subcontractor subject to this
21subsection, and any officer, employee, or agent of such
22contractor or subcontractor whose duty as an officer,
23employee, or agent it is to file a certified payroll under this
24subsection, who willfully fails to file such a certified
25payroll on or before the date such certified payroll is
26required by this paragraph to be filed and any person who



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1willfully files a false certified payroll that is false as to
2any material fact is in violation of this Act and guilty of a
3Class A misdemeanor.
4    The taxpayer in charge of the project shall keep the
5records submitted in accordance with this subsection on or
6after June 5, 2019 (the effective date of Public Act 101-9)
7this amendatory Act of the 101st General Assembly for a period
8of 5 years from the date of the last payment for work on a
9contract or subcontract for the High Impact Business
10construction jobs project.
11    The records submitted in accordance with this subsection
12shall be considered public records, except an employee's
13address, telephone number, and social security number, and
14made available in accordance with the Freedom of Information
15Act. The Department of Labor shall accept any reasonable
16submissions by the contractor that meet the requirements of
17this subsection (j) and shall share the information with the
18Department in order to comply with the awarding of a High
19Impact Business construction jobs credit. A contractor,
20subcontractor, or public body may retain records required
21under this Section in paper or electronic format.
22    (k) Upon 7 business days' notice, each contractor and
23subcontractor shall make available for inspection and copying
24at a location within this State during reasonable hours, the
25records identified in this subsection (j) to the taxpayer in
26charge of the High Impact Business construction jobs project,



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1its officers and agents, the Director of the Department of
2Labor and his or her deputies and agents, and to federal,
3State, or local law enforcement agencies and prosecutors.
4(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.