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

HB3174sam001 102ND GENERAL ASSEMBLY

Sen. Patrick J. Joyce

Filed: 5/14/2021

 

 


 

 


 
10200HB3174sam001LRB102 14914 HLH 26233 a

1
AMENDMENT TO HOUSE BILL 3174

2    AMENDMENT NO. ______. Amend House Bill 3174 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1    designation, in an enterprise zone designated pursuant to
2    this Act;
3        (3) the business intends to do one or more of the
4    following:
5            (A) the business intends to make a minimum
6        investment of $12,000,000 which will be placed in
7        service in qualified property and intends to create
8        500 full-time equivalent jobs at a designated location
9        in Illinois or intends to make a minimum investment of
10        $30,000,000 which will be placed in service in
11        qualified property and intends to retain 1,500
12        full-time retained jobs at a designated location in
13        Illinois. The business must certify in writing that
14        the investments would not be placed in service in
15        qualified property and the job creation or job
16        retention would not occur without the tax credits and
17        exemptions set forth in subsection (b) of this
18        Section. The terms "placed in service" and "qualified
19        property" have the same meanings as described in
20        subsection (h) of Section 201 of the Illinois Income
21        Tax Act; or
22            (B) the business intends to establish a new
23        electric generating facility at a designated location
24        in Illinois. "New electric generating facility", for
25        purposes of this Section, means a newly-constructed
26        electric generation plant or a newly-constructed

 

 

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1        generation capacity expansion at an existing electric
2        generation plant, including the transmission lines and
3        associated equipment that transfers electricity from
4        points of supply to points of delivery, and for which
5        such new foundation construction commenced not sooner
6        than July 1, 2001. Such facility shall be designed to
7        provide baseload electric generation and shall operate
8        on a continuous basis throughout the year; and (i)
9        shall have an aggregate rated generating capacity of
10        at least 1,000 megawatts for all new units at one site
11        if it uses natural gas as its primary fuel and
12        foundation construction of the facility is commenced
13        on or before December 31, 2004, or shall have an
14        aggregate rated generating capacity of at least 400
15        megawatts for all new units at one site if it uses coal
16        or gases derived from coal as its primary fuel and
17        shall support the creation of at least 150 new
18        Illinois coal mining jobs, or (ii) shall be funded
19        through a federal Department of Energy grant before
20        December 31, 2010 and shall support the creation of
21        Illinois coal-mining jobs, or (iii) shall use coal
22        gasification or integrated gasification-combined cycle
23        units that generate electricity or chemicals, or both,
24        and shall support the creation of Illinois coal-mining
25        jobs. The business must certify in writing that the
26        investments necessary to establish a new electric

 

 

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1        generating facility would not be placed in service and
2        the job creation in the case of a coal-fueled plant
3        would not occur without the tax credits and exemptions
4        set forth in subsection (b-5) of this Section. The
5        term "placed in service" has the same meaning as
6        described in subsection (h) of Section 201 of the
7        Illinois Income Tax Act; or
8            (B-5) the business intends to establish a new
9        gasification facility at a designated location in
10        Illinois. As used in this Section, "new gasification
11        facility" means a newly constructed coal gasification
12        facility that generates chemical feedstocks or
13        transportation fuels derived from coal (which may
14        include, but are not limited to, methane, methanol,
15        and nitrogen fertilizer), that supports the creation
16        or retention of Illinois coal-mining jobs, and that
17        qualifies for financial assistance from the Department
18        before December 31, 2010. A new gasification facility
19        does not include a pilot project located within
20        Jefferson County or within a county adjacent to
21        Jefferson County for synthetic natural gas from coal;
22        or
23            (C) the business intends to establish production
24        operations at a new coal mine, re-establish production
25        operations at a closed coal mine, or expand production
26        at an existing coal mine at a designated location in

 

 

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1        Illinois not sooner than July 1, 2001; provided that
2        the production operations result in the creation of
3        150 new Illinois coal mining jobs as described in
4        subdivision (a)(3)(B) of this Section, and further
5        provided that the coal extracted from such mine is
6        utilized as the predominant source for a new electric
7        generating facility. The business must certify in
8        writing that the investments necessary to establish a
9        new, expanded, or reopened coal mine would not be
10        placed in service and the job creation would not occur
11        without the tax credits and exemptions set forth in
12        subsection (b-5) of this Section. The term "placed in
13        service" has the same meaning as described in
14        subsection (h) of Section 201 of the Illinois Income
15        Tax Act; or
16            (D) the business intends to construct new
17        transmission facilities or upgrade existing
18        transmission facilities at designated locations in
19        Illinois, for which construction commenced not sooner
20        than July 1, 2001. For the purposes of this Section,
21        "transmission facilities" means transmission lines
22        with a voltage rating of 115 kilovolts or above,
23        including associated equipment, that transfer
24        electricity from points of supply to points of
25        delivery and that transmit a majority of the
26        electricity generated by a new electric generating

 

 

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1        facility designated as a High Impact Business in
2        accordance with this Section. The business must
3        certify in writing that the investments necessary to
4        construct new transmission facilities or upgrade
5        existing transmission facilities would not be placed
6        in service without the tax credits and exemptions set
7        forth in subsection (b-5) of this Section. The term
8        "placed in service" has the same meaning as described
9        in subsection (h) of Section 201 of the Illinois
10        Income Tax Act; or
11            (E) the business intends to establish a new wind
12        power facility at a designated location in Illinois.
13        For purposes of this Section, "new wind power
14        facility" means a newly constructed electric
15        generation facility, or a newly constructed expansion
16        of an existing electric generation facility, or the
17        replacement of an existing electric generation
18        facility, including the demolition and removal of an
19        electric generation facility irrespective of whether
20        it will be replaced, placed in service or replaced on
21        or after July 1, 2009, that generates electricity
22        using wind energy devices, and such facility shall be
23        deemed to include any permanent structures associated
24        with the electric generation facility and all
25        associated transmission lines, substations, and other
26        equipment related to the generation of electricity

 

 

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1        from wind energy devices. For purposes of this
2        Section, "wind energy device" means any device, with a
3        nameplate capacity of at least 0.5 megawatts, that is
4        used in the process of converting kinetic energy from
5        the wind to generate electricity; or
6            (F) the business commits to (i) make a minimum
7        investment of $500,000,000, which will be placed in
8        service in a qualified property, (ii) create 125
9        full-time equivalent jobs at a designated location in
10        Illinois, (iii) establish a fertilizer plant at a
11        designated location in Illinois that complies with the
12        set-back standards as described in Table 1: Initial
13        Isolation and Protective Action Distances in the 2012
14        Emergency Response Guidebook published by the United
15        States Department of Transportation, (iv) pay a
16        prevailing wage for employees at that location who are
17        engaged in construction activities, and (v) secure an
18        appropriate level of general liability insurance to
19        protect against catastrophic failure of the fertilizer
20        plant or any of its constituent systems; in addition,
21        the business must agree to enter into a construction
22        project labor agreement including provisions
23        establishing wages, benefits, and other compensation
24        for employees performing work under the project labor
25        agreement at that location; for the purposes of this
26        Section, "fertilizer plant" means a newly constructed

 

 

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1        or upgraded plant utilizing gas used in the production
2        of anhydrous ammonia and downstream nitrogen
3        fertilizer products for resale; for the purposes of
4        this Section, "prevailing wage" means the hourly cash
5        wages plus fringe benefits for training and
6        apprenticeship programs approved by the U.S.
7        Department of Labor, Bureau of Apprenticeship and
8        Training, health and welfare, insurance, vacations and
9        pensions paid generally, in the locality in which the
10        work is being performed, to employees engaged in work
11        of a similar character on public works; this paragraph
12        (F) applies only to businesses that submit an
13        application to the Department within 60 days after
14        July 25, 2013 (the effective date of Public Act
15        98-109) this amendatory Act of the 98th General
16        Assembly; and
17        (4) no later than 90 days after an application is
18    submitted, the Department shall notify the applicant of
19    the Department's determination of the qualification of the
20    proposed High Impact Business under this Section.
21    (b) Businesses designated as High Impact Businesses
22pursuant to subdivision (a)(3)(A) of this Section shall
23qualify for the credits and exemptions described in the
24following Acts: Section 9-222 and Section 9-222.1A of the
25Public Utilities Act, subsection (h) of Section 201 of the
26Illinois Income Tax Act, and Section 1d of the Retailers'

 

 

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1Occupation Tax Act; provided that these credits and exemptions
2described in these Acts shall not be authorized until the
3minimum investments set forth in subdivision (a)(3)(A) of this
4Section have been placed in service in qualified properties
5and, in the case of the exemptions described in the Public
6Utilities Act and Section 1d of the Retailers' Occupation Tax
7Act, the minimum full-time equivalent jobs or full-time
8retained jobs set forth in subdivision (a)(3)(A) of this
9Section have been created or retained. Businesses designated
10as High Impact Businesses under this Section shall also
11qualify for the exemption described in Section 5l of the
12Retailers' Occupation Tax Act. The credit provided in
13subsection (h) of Section 201 of the Illinois Income Tax Act
14shall be applicable to investments in qualified property as
15set forth in subdivision (a)(3)(A) of this Section.
16    (b-5) Businesses designated as High Impact Businesses
17pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
18and (a)(3)(D) of this Section shall qualify for the credits
19and exemptions described in the following Acts: Section 51 of
20the Retailers' Occupation Tax Act, Section 9-222 and Section
219-222.1A of the Public Utilities Act, and subsection (h) of
22Section 201 of the Illinois Income Tax Act; however, the
23credits and exemptions authorized under Section 9-222 and
24Section 9-222.1A of the Public Utilities Act, and subsection
25(h) of Section 201 of the Illinois Income Tax Act shall not be
26authorized until the new electric generating facility, the new

 

 

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1gasification facility, the new transmission facility, or the
2new, expanded, or reopened coal mine is operational, except
3that a new electric generating facility whose primary fuel
4source is natural gas is eligible only for the exemption under
5Section 5l of the Retailers' Occupation Tax Act.
6    (b-6) Businesses designated as High Impact Businesses
7pursuant to subdivision (a)(3)(E) of this Section shall
8qualify for the exemptions described in Section 5l of the
9Retailers' Occupation Tax Act; any business so designated as a
10High Impact Business being, for purposes of this Section, a
11"Wind Energy Business".
12    (b-7) Beginning on January 1, 2021, businesses designated
13as High Impact Businesses by the Department shall qualify for
14the High Impact Business construction jobs credit under
15subsection (h-5) of Section 201 of the Illinois Income Tax Act
16if the business meets the criteria set forth in subsection (i)
17of this Section. The total aggregate amount of credits awarded
18under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
19this amendatory Act of the 101st General Assembly) shall not
20exceed $20,000,000 in any State fiscal year.
21    (c) High Impact Businesses located in federally designated
22foreign trade zones or sub-zones are also eligible for
23additional credits, exemptions and deductions as described in
24the following Acts: Section 9-221 and Section 9-222.1 of the
25Public Utilities Act; and subsection (g) of Section 201, and
26Section 203 of the Illinois Income Tax Act.

 

 

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1    (d) Except for businesses contemplated under subdivision
2(a)(3)(E) of this Section, existing Illinois businesses which
3apply for designation as a High Impact Business must provide
4the Department with the prospective plan for which 1,500
5full-time retained jobs would be eliminated in the event that
6the business is not designated.
7    (e) Except for new wind power facilities contemplated
8under subdivision (a)(3)(E) of this Section, new proposed
9facilities which apply for designation as High Impact Business
10must provide the Department with proof of alternative
11non-Illinois sites which would receive the proposed investment
12and job creation in the event that the business is not
13designated as a High Impact Business.
14    (f) Except for businesses contemplated under subdivision
15(a)(3)(E) of this Section, in the event that a business is
16designated a High Impact Business and it is later determined
17after reasonable notice and an opportunity for a hearing as
18provided under the Illinois Administrative Procedure Act, that
19the business would have placed in service in qualified
20property the investments and created or retained the requisite
21number of jobs without the benefits of the High Impact
22Business designation, the Department shall be required to
23immediately revoke the designation and notify the Director of
24the Department of Revenue who shall begin proceedings to
25recover all wrongfully exempted State taxes with interest. The
26business shall also be ineligible for all State funded

 

 

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1Department programs for a period of 10 years.
2    (g) The Department shall revoke a High Impact Business
3designation if the participating business fails to comply with
4the terms and conditions of the designation. However, the
5penalties for new wind power facilities or Wind Energy
6Businesses for failure to comply with any of the terms or
7conditions of the Illinois Prevailing Wage Act shall be only
8those penalties identified in the Illinois Prevailing Wage
9Act, and the Department shall not revoke a High Impact
10Business designation as a result of the failure to comply with
11any of the terms or conditions of the Illinois Prevailing Wage
12Act in relation to a new wind power facility or a Wind Energy
13Business.
14    (h) Prior to designating a business, the Department shall
15provide the members of the General Assembly and Commission on
16Government Forecasting and Accountability with a report
17setting forth the terms and conditions of the designation and
18guarantees that have been received by the Department in
19relation to the proposed business being designated.
20    (i) High Impact Business construction jobs credit.
21Beginning on January 1, 2021, a High Impact Business may
22receive a tax credit against the tax imposed under subsections
23(a) and (b) of Section 201 of the Illinois Income Tax Act in an
24amount equal to 50% of the amount of the incremental income tax
25attributable to High Impact Business construction jobs credit
26employees employed in the course of completing a High Impact

 

 

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1Business construction jobs project. However, the High Impact
2Business construction jobs credit may equal 75% of the amount
3of the incremental income tax attributable to High Impact
4Business construction jobs credit employees if the High Impact
5Business construction jobs credit project is located in an
6underserved area.
7    The Department shall certify to the Department of Revenue:
8(1) the identity of taxpayers that are eligible for the High
9Impact Business construction jobs credit; and (2) the amount
10of High Impact Business construction jobs credits that are
11claimed pursuant to subsection (h-5) of Section 201 of the
12Illinois Income Tax Act in each taxable year. Any business
13entity that receives a High Impact Business construction jobs
14credit shall maintain a certified payroll pursuant to
15subsection (j) of this Section.
16    As used in this subsection (i):
17    "High Impact Business construction jobs credit" means an
18amount equal to 50% (or 75% if the High Impact Business
19construction project is located in an underserved area) of the
20incremental income tax attributable to High Impact Business
21construction job employees. The total aggregate amount of
22credits awarded under the Blue Collar Jobs Act (Article 20 of
23Public Act 101-9 this amendatory Act of the 101st General
24Assembly) shall not exceed $20,000,000 in any State fiscal
25year
26    "High Impact Business construction job employee" means a

 

 

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1laborer or worker who is employed by an Illinois contractor or
2subcontractor in the actual construction work on the site of a
3High Impact Business construction job project.
4    "High Impact Business construction jobs project" means
5building a structure or building or making improvements of any
6kind to real property, undertaken and commissioned by a
7business that was designated as a High Impact Business by the
8Department. The term "High Impact Business construction jobs
9project" does not include the routine operation, routine
10repair, or routine maintenance of existing structures,
11buildings, or real property.
12    "Incremental income tax" means the total amount withheld
13during the taxable year from the compensation of High Impact
14Business construction job employees.
15    "Underserved area" means a geographic area that meets one
16or more of the following conditions:
17        (1) the area has a poverty rate of at least 20%
18    according to the latest federal decennial census;
19        (2) 75% or more of the children in the area
20    participate in the federal free lunch program according to
21    reported statistics from the State Board of Education;
22        (3) at least 20% of the households in the area receive
23    assistance under the Supplemental Nutrition Assistance
24    Program (SNAP); or
25        (4) the area has an average unemployment rate, as
26    determined by the Illinois Department of Employment

 

 

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1    Security, that is more than 120% of the national
2    unemployment average, as determined by the U.S. Department
3    of Labor, for a period of at least 2 consecutive calendar
4    years preceding the date of the application.
5    (j) Each contractor and subcontractor who is engaged in
6and executing a High Impact Business Construction jobs
7project, as defined under subsection (i) of this Section, for
8a business that is entitled to a credit pursuant to subsection
9(i) of this Section shall:
10        (1) make and keep, for a period of 5 years from the
11    date of the last payment made on or after June 5, 2019 (the
12    effective date of Public Act 101-9) this amendatory Act of
13    the 101st General Assembly on a contract or subcontract
14    for a High Impact Business Construction Jobs Project,
15    records for all laborers and other workers employed by the
16    contractor or subcontractor on the project; the records
17    shall include:
18            (A) the worker's name;
19            (B) the worker's address;
20            (C) the worker's telephone number, if available;
21            (D) the worker's social security number;
22            (E) the worker's classification or
23        classifications;
24            (F) the worker's gross and net wages paid in each
25        pay period;
26            (G) the worker's number of hours worked each day;

 

 

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1            (H) the worker's starting and ending times of work
2        each day;
3            (I) the worker's hourly wage rate; and
4            (J) the worker's hourly overtime wage rate;
5        (2) no later than the 15th day of each calendar month,
6    provide a certified payroll for the immediately preceding
7    month to the taxpayer in charge of the High Impact
8    Business construction jobs project; within 5 business days
9    after receiving the certified payroll, the taxpayer shall
10    file the certified payroll with the Department of Labor
11    and the Department of Commerce and Economic Opportunity; a
12    certified payroll must be filed for only those calendar
13    months during which construction on a High Impact Business
14    construction jobs project has occurred; the certified
15    payroll shall consist of a complete copy of the records
16    identified in paragraph (1) of this subsection (j), but
17    may exclude the starting and ending times of work each
18    day; the certified payroll shall be accompanied by a
19    statement signed by the contractor or subcontractor or an
20    officer, employee, or agent of the contractor or
21    subcontractor which avers that:
22            (A) he or she has examined the certified payroll
23        records required to be submitted by the Act and such
24        records are true and accurate; and
25            (B) the contractor or subcontractor is aware that
26        filing a certified payroll that he or she knows to be

 

 

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1        false is a Class A misdemeanor.
2    A general contractor is not prohibited from relying on a
3certified payroll of a lower-tier subcontractor, provided the
4general contractor does not knowingly rely upon a
5subcontractor's false certification.
6    Any contractor or subcontractor subject to this
7subsection, and any officer, employee, or agent of such
8contractor or subcontractor whose duty as an officer,
9employee, or agent it is to file a certified payroll under this
10subsection, who willfully fails to file such a certified
11payroll on or before the date such certified payroll is
12required by this paragraph to be filed and any person who
13willfully files a false certified payroll that is false as to
14any material fact is in violation of this Act and guilty of a
15Class A misdemeanor.
16    The taxpayer in charge of the project shall keep the
17records submitted in accordance with this subsection on or
18after June 5, 2019 (the effective date of Public Act 101-9)
19this amendatory Act of the 101st General Assembly for a period
20of 5 years from the date of the last payment for work on a
21contract or subcontract for the High Impact Business
22construction jobs project.
23    The records submitted in accordance with this subsection
24shall be considered public records, except an employee's
25address, telephone number, and social security number, and
26made available in accordance with the Freedom of Information

 

 

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1Act. The Department of Labor shall accept any reasonable
2submissions by the contractor that meet the requirements of
3this subsection (j) and shall share the information with the
4Department in order to comply with the awarding of a High
5Impact Business construction jobs credit. A contractor,
6subcontractor, or public body may retain records required
7under this Section in paper or electronic format.
8    (k) Upon 7 business days' notice, each contractor and
9subcontractor shall make available for inspection and copying
10at a location within this State during reasonable hours, the
11records identified in this subsection (j) to the taxpayer in
12charge of the High Impact Business construction jobs project,
13its officers and agents, the Director of the Department of
14Labor and his or her deputies and agents, and to federal,
15State, or local law enforcement agencies and prosecutors.
16(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".