Full Text of HB5189 102nd General Assembly
HB5189sam003 102ND GENERAL ASSEMBLY | Sen. Celina Villanueva Filed: 11/29/2022
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| 1 | | AMENDMENT TO HOUSE BILL 5189
| 2 | | AMENDMENT NO. ______. Amend House Bill 5189, AS AMENDED, | 3 | | by inserting immediately below the enacting clause the | 4 | | following:
| 5 | | "Section 2. The Reimagining Electric Vehicles in Illinois | 6 | | Act is amended by changing Sections 10, 15, 20, 30, and 40 as | 7 | | follows: | 8 | | (20 ILCS 686/10)
| 9 | | Sec. 10. Definitions. As used in this Act: | 10 | | "Advanced battery" means a battery that consists of a | 11 | | battery cell that can be integrated into a module, pack, or | 12 | | system to be used in energy storage applications, including a | 13 | | battery used in an electric vehicle or the electric grid. | 14 | | "Advanced battery component" means a component of an | 15 | | advanced battery, including materials, enhancements, | 16 | | enclosures, anodes, cathodes, electrolytes, cells, and other |
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| 1 | | associated technologies that comprise an advanced battery. | 2 | | "Agreement" means the agreement between a taxpayer and the | 3 | | Department under the provisions of Section 45 of this Act. | 4 | | "Applicant" means a taxpayer that (i) operates a business | 5 | | in Illinois or is planning to locate a business within the | 6 | | State of Illinois and (ii) is engaged in interstate or | 7 | | intrastate commerce for the purpose of manufacturing electric | 8 | | vehicles, electric vehicle component parts, or electric | 9 | | vehicle power supply equipment. "Applicant" does not include a | 10 | | taxpayer who closes or substantially reduces by more than 50% | 11 | | operations at one location in the State and relocates | 12 | | substantially the same operation to another location in the | 13 | | State. This does not prohibit a Taxpayer from expanding its | 14 | | operations at another location in the State. This also does | 15 | | not prohibit a Taxpayer from moving its operations from one | 16 | | location in the State to another location in the State for the | 17 | | purpose of expanding the operation, provided that the | 18 | | Department determines that expansion cannot reasonably be | 19 | | accommodated within the municipality or county in which the | 20 | | business is located, or, in the case of a business located in | 21 | | an incorporated area of the county, within the county in which | 22 | | the business is located, after conferring with the chief | 23 | | elected official of the municipality or county and taking into | 24 | | consideration any evidence offered by the municipality or | 25 | | county regarding the ability to accommodate expansion within | 26 | | the municipality or county. |
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| 1 | | "Battery raw materials" means the raw and processed form | 2 | | of a mineral, metal, chemical, or other material used in an | 3 | | advanced battery component. | 4 | | "Battery raw materials refining service provider" means a | 5 | | business that operates a facility that filters, sifts, and | 6 | | treats battery raw materials for use in an advanced battery. | 7 | | "Battery recycling and reuse manufacturer" means a | 8 | | manufacturer that is primarily engaged in the recovery, | 9 | | retrieval, processing, recycling, or recirculating of battery | 10 | | raw materials for new use in electric vehicle batteries. | 11 | | "Capital improvements" means the purchase, renovation, | 12 | | rehabilitation, or construction of permanent tangible land, | 13 | | buildings, structures, equipment, and furnishings in an | 14 | | approved project sited in Illinois and expenditures for goods | 15 | | or services that are normally capitalized, including | 16 | | organizational costs and research and development costs | 17 | | incurred in Illinois. For land, buildings, structures, and | 18 | | equipment that are leased, the lease must equal or exceed the | 19 | | term of the agreement, and the cost of the property shall be | 20 | | determined from the present value, using the corporate | 21 | | interest rate prevailing at the time of the application, of | 22 | | the lease payments. | 23 | | "Credit" means either a "REV Illinois Credit" or a "REV | 24 | | Construction Jobs Credit" agreed to between the Department and | 25 | | applicant under this Act. | 26 | | "Department" means the Department of Commerce and Economic |
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| 1 | | Opportunity. | 2 | | "Director" means the Director of Commerce and Economic | 3 | | Opportunity. | 4 | | "Electric vehicle" means a vehicle that is exclusively | 5 | | powered by and refueled by electricity, including electricity | 6 | | generated through a hydrogen fuel cells or solar technology. | 7 | | "Electric vehicle" does not include hybrid electric vehicles, | 8 | | electric bicycles, or extended-range electric vehicles that | 9 | | are also equipped with conventional fueled propulsion or | 10 | | auxiliary engines. | 11 | | "Electric vehicle manufacturer" means a new or existing | 12 | | manufacturer that is primarily focused on reequipping, | 13 | | expanding, or establishing a manufacturing facility in | 14 | | Illinois that produces electric vehicles as defined in this | 15 | | Section. | 16 | | "Electric vehicle component parts manufacturer" means a | 17 | | new or existing manufacturer that is primarily focused on | 18 | | reequipping, expanding, or establishing a manufacturing | 19 | | facility in Illinois that produces parts or accessories used
| 20 | | in electric vehicles advanced battery components or key | 21 | | components that directly support the electric functions of | 22 | | electric vehicles , as defined by this Section , including
| 23 | | advanced battery component parts . The changes to this
| 24 | | definition of "electric vehicle component parts manufacturer"
| 25 | | apply to agreements under this Act that are entered into on or
| 26 | | after the effective date of this amendatory Act of the 102nd
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| 1 | | General Assembly. | 2 | | "Electric vehicle power supply equipment" means the | 3 | | equipment used specifically for the purpose of delivering | 4 | | electricity to an electric vehicle, including hydrogen fuel | 5 | | cells or solar refueling infrastructure. | 6 | | "Electric vehicle power supply manufacturer" means a new | 7 | | or existing manufacturer that is focused on reequipping, | 8 | | expanding, or establishing a manufacturing facility in | 9 | | Illinois that produces electric vehicle power supply equipment | 10 | | used for the purpose of delivering electricity to an electric | 11 | | vehicle, including hydrogen fuel cell or solar refueling | 12 | | infrastructure. | 13 | | "Energy Transition Area" means a county with less than | 14 | | 100,000 people or a municipality that contains one or more of | 15 | | the following: | 16 | | (1) a fossil fuel plant that was retired from service | 17 | | or has significant reduced service within 6 years before | 18 | | the time of the application or will be retired or have | 19 | | service significantly reduced within 6 years following the | 20 | | time of the application; or | 21 | | (2) a coal mine that was closed or had operations | 22 | | significantly reduced within 6 years before the time of | 23 | | the application or is anticipated to be closed or have | 24 | | operations significantly reduced within 6 years following | 25 | | the time of the application. | 26 | | "Full-time employee" means an individual who is employed |
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| 1 | | for consideration for at least 35 hours each week or who | 2 | | renders any other standard of service generally accepted by | 3 | | industry custom or practice as full-time employment. An | 4 | | individual for whom a W-2 is issued by a Professional Employer | 5 | | Organization (PEO) is a full-time employee if employed in the | 6 | | service of the applicant for consideration for at least 35 | 7 | | hours each week. | 8 | | "Incremental income tax" means the total amount withheld | 9 | | during the taxable year from the compensation of new employees | 10 | | and, if applicable, retained employees under Article 7 of the | 11 | | Illinois Income Tax Act arising from employment at a project | 12 | | that is the subject of an agreement. | 13 | | "Institution of higher education" or "institution" means | 14 | | any accredited public or private university, college, | 15 | | community college, business, technical, or vocational school, | 16 | | or other accredited educational institution offering degrees | 17 | | and instruction beyond the secondary school level. | 18 | | "Minority person" means a minority person as defined in | 19 | | the Business Enterprise for Minorities, Women, and Persons | 20 | | with Disabilities Act. | 21 | | "New employee" means a newly-hired full-time employee | 22 | | employed to work at the project site and whose work is directly | 23 | | related to the project. | 24 | | "Noncompliance date" means, in the case of a taxpayer that | 25 | | is not complying with the requirements of the agreement or the | 26 | | provisions of this Act, the day following the last date upon |
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| 1 | | which the taxpayer was in compliance with the requirements of | 2 | | the agreement and the provisions of this Act, as determined by | 3 | | the Director, pursuant to Section 70. | 4 | | "Pass-through entity" means an entity that is exempt from | 5 | | the tax under subsection (b) or (c) of Section 205 of the | 6 | | Illinois Income Tax Act. | 7 | | "Placed in service" means the state or condition of | 8 | | readiness, availability for a specifically assigned function, | 9 | | and the facility is constructed and ready to conduct its | 10 | | facility operations to manufacture goods. | 11 | | "Professional employer organization" (PEO) means an | 12 | | employee leasing company, as defined in Section 206.1 of the | 13 | | Illinois Unemployment Insurance Act. | 14 | | "Program" means the Reimagining Electric Vehicles in | 15 | | Illinois Program (the REV Illinois Program) established in | 16 | | this Act. | 17 | | "Project" or "REV Illinois Project" means a for-profit | 18 | | economic development activity for the manufacture of electric | 19 | | vehicles, electric vehicle component parts, or electric | 20 | | vehicle power supply equipment which is designated by the | 21 | | Department as a REV Illinois Project and is the subject of an | 22 | | agreement. | 23 | | "Recycling facility" means a location at which the | 24 | | taxpayer disposes of batteries and other component parts in | 25 | | manufacturing of electric vehicles, electric vehicle component | 26 | | parts, or electric vehicle power supply equipment. |
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| 1 | | "Related member" means a person that, with respect to the | 2 | | taxpayer during any portion of the taxable year, is any one of | 3 | | the following: | 4 | | (1) An individual stockholder, if the stockholder and | 5 | | the members of the stockholder's family (as defined in | 6 | | Section 318 of the Internal Revenue Code) own directly, | 7 | | indirectly, beneficially, or constructively, in the | 8 | | aggregate, at least 50% of the value of the taxpayer's | 9 | | outstanding stock. | 10 | | (2) A partnership, estate, trust and any partner or | 11 | | beneficiary, if the partnership, estate, or trust, and its | 12 | | partners or beneficiaries own directly, indirectly, | 13 | | beneficially, or constructively, in the aggregate, at | 14 | | least 50% of the profits, capital, stock, or value of the | 15 | | taxpayer. | 16 | | (3) A corporation, and any party related to the | 17 | | corporation in a manner that would require an attribution | 18 | | of stock from the corporation under the attribution rules | 19 | | of Section 318 of the Internal Revenue Code, if the | 20 | | Taxpayer owns directly, indirectly, beneficially, or | 21 | | constructively at least 50% of the value of the | 22 | | corporation's outstanding stock. | 23 | | (4) A corporation and any party related to that | 24 | | corporation in a manner that would require an attribution | 25 | | of stock from the corporation to the party or from the | 26 | | party to the corporation under the attribution rules of |
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| 1 | | Section 318 of the Internal Revenue Code, if the | 2 | | corporation and all such related parties own in the | 3 | | aggregate at least 50% of the profits, capital, stock, or | 4 | | value of the taxpayer. | 5 | | (5) A person to or from whom there is an attribution of | 6 | | stock ownership in accordance with Section 1563(e) of the | 7 | | Internal Revenue Code, except, for purposes of determining | 8 | | whether a person is a related member under this paragraph, | 9 | | 20% shall be substituted for 5% wherever 5% appears in | 10 | | Section 1563(e) of the Internal Revenue Code. | 11 | | "Retained employee" means a full-time employee employed by | 12 | | the taxpayer prior to the term of the Agreement who continues | 13 | | to be employed during the term of the agreement whose job | 14 | | duties are directly and substantially related to the project. | 15 | | For purposes of this definition, "directly and substantially | 16 | | related to the project" means at least two-thirds of the | 17 | | employee's job duties must be directly related to the project | 18 | | and the employee must devote at least two-thirds of his or her | 19 | | time to the project. The term "retained employee" does not | 20 | | include any individual who has a direct or an indirect | 21 | | ownership interest of at least 5% in the profits, equity, | 22 | | capital, or value of the taxpayer or a child, grandchild, | 23 | | parent, or spouse, other than a spouse who is legally | 24 | | separated from the individual, of any individual who has a | 25 | | direct or indirect ownership of at least 5% in the profits, | 26 | | equity, capital, or value of the taxpayer. The changes to this
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| 1 | | definition of "retained employee" apply to agreements for
| 2 | | credits under this Act that are entered into on or after the
| 3 | | effective date of this amendatory Act of the 102nd General
| 4 | | Assembly. | 5 | | "REV Illinois credit" means a credit agreed to between the | 6 | | Department and the applicant under this Act that is based on | 7 | | the incremental income tax attributable to new employees and, | 8 | | if applicable, retained employees, and on training costs for | 9 | | such employees at the applicant's project. | 10 | | "REV construction jobs credit" means a credit agreed to | 11 | | between the Department and the applicant under this Act that | 12 | | is based on the incremental income tax attributable to | 13 | | construction wages paid in connection with construction of the | 14 | | project facilities. | 15 | | "Statewide baseline" means the total number of full-time | 16 | | employees of the applicant and any related member employed by | 17 | | such entities at the time of application for incentives under | 18 | | this Act. | 19 | | "Taxpayer" means an individual, corporation, partnership, | 20 | | or other entity that has a legal obligation to pay Illinois | 21 | | income taxes and file an Illinois income tax return. | 22 | | "Training costs" means costs incurred to upgrade the | 23 | | technological skills of full-time employees in Illinois and | 24 | | includes: curriculum development; training materials | 25 | | (including scrap product costs); trainee domestic travel | 26 | | expenses; instructor costs (including wages, fringe benefits, |
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| 1 | | tuition and domestic travel expenses); rent, purchase or lease | 2 | | of training equipment; and other usual and customary training | 3 | | costs. "Training costs" do not include costs associated with | 4 | | travel outside the United States (unless the Taxpayer receives | 5 | | prior written approval for the travel by the Director based on | 6 | | a showing of substantial need or other proof the training is | 7 | | not reasonably available within the United States), wages and | 8 | | fringe benefits of employees during periods of training, or | 9 | | administrative cost related to full-time employees of the | 10 | | taxpayer. | 11 | | "Underserved area" means any geographic areas as defined | 12 | | in Section 5-5 of the Economic Development for a Growing | 13 | | Economy Tax Credit Act.
| 14 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22.) | 15 | | (20 ILCS 686/15)
| 16 | | Sec. 15. Powers of the Department. The Department, in | 17 | | addition to those powers granted under the Civil | 18 | | Administrative Code of Illinois, is granted and shall have all | 19 | | the powers necessary or convenient to administer the program | 20 | | under this Act and to carry out and effectuate the purposes and | 21 | | provisions of this Act, including, but not limited to, the | 22 | | power and authority to: | 23 | | (1) adopt rules deemed necessary and appropriate for | 24 | | the administration of the REV Illinois Program, the | 25 | | designation of REV Illinois Projects, and the awarding of |
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| 1 | | credits; | 2 | | (2) establish forms for applications, notifications, | 3 | | contracts, or any other agreements and accept applications | 4 | | at any time during the year; | 5 | | (3) assist taxpayers pursuant to the provisions of | 6 | | this Act and cooperate with taxpayers that are parties to | 7 | | agreements under this Act to promote, foster, and support | 8 | | economic development, capital investment, and job creation | 9 | | or retention within the State; | 10 | | (4) enter into agreements and memoranda of | 11 | | understanding for participation of, and engage in | 12 | | cooperation with, agencies of the federal government, | 13 | | units of local government, universities, research | 14 | | foundations or institutions, regional economic development | 15 | | corporations, or other organizations to implement the | 16 | | requirements and purposes of this Act; | 17 | | (5) gather information and conduct inquiries, in the | 18 | | manner and by the methods it deems desirable, including | 19 | | without limitation, gathering information with respect to | 20 | | applicants for the purpose of making any designations or | 21 | | certifications necessary or desirable or to gather | 22 | | information to assist the Department with any | 23 | | recommendation or guidance in the furtherance of the | 24 | | purposes of this Act; | 25 | | (6) establish, negotiate and effectuate agreements and | 26 | | any term, agreement, or other document with any person, |
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| 1 | | necessary or appropriate to accomplish the purposes of | 2 | | this Act; and to consent, subject to the provisions of any | 3 | | agreement with another party, to the modification or | 4 | | restructuring of any agreement to which the Department is | 5 | | a party; | 6 | | (7) fix, determine, charge, and collect any premiums, | 7 | | fees, charges, costs, and expenses from applicants, | 8 | | including, without limitation, any application fees, | 9 | | commitment fees, program fees, financing charges, or | 10 | | publication fees as deemed appropriate to pay expenses | 11 | | necessary or incident to the administration, staffing, or | 12 | | operation in connection with the Department's activities | 13 | | under this Act, or for preparation, implementation, and | 14 | | enforcement of the terms of the agreement, or for | 15 | | consultation, advisory and legal fees, and other costs; | 16 | | however, all fees and expenses incident thereto shall be | 17 | | the responsibility of the applicant; | 18 | | (8) provide for sufficient personnel to permit | 19 | | administration, staffing, operation, and related support | 20 | | required to adequately discharge its duties and | 21 | | responsibilities described in this Act from funds made | 22 | | available through charges to applicants or from funds as | 23 | | may be appropriated by the General Assembly for the | 24 | | administration of this Act; | 25 | | (9) require applicants, upon written request, to issue | 26 | | any necessary authorization to the appropriate federal, |
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| 1 | | State, or local authority for the release of information | 2 | | concerning a project being considered under the provisions | 3 | | of this Act, with the information requested to include, | 4 | | but not be limited to, financial reports, returns, or | 5 | | records relating to the taxpayer or its project; | 6 | | (10) require that a taxpayer shall at all times keep | 7 | | proper books of record and account in accordance with | 8 | | generally accepted accounting principles consistently | 9 | | applied, with the books, records, or papers related to the | 10 | | agreement in the custody or control of the taxpayer open | 11 | | for reasonable Department inspection and audits, and | 12 | | including, without limitation, the making of copies of the | 13 | | books, records, or papers, and the inspection or appraisal | 14 | | of any of the taxpayer or project assets; | 15 | | (11) take whatever actions are necessary or | 16 | | appropriate to protect the State's interest in the event | 17 | | of bankruptcy, default, foreclosure, or noncompliance with | 18 | | the terms and conditions of financial assistance or | 19 | | participation required under this Act, including the power | 20 | | to sell, dispose, lease, or rent, upon terms and | 21 | | conditions determined by the Director to be appropriate, | 22 | | real or personal property that the Department may receive | 23 | | as a result of these actions ; and .
| 24 | | (12) determine the conditions and procedures for
| 25 | | renewing the REV Illinois Credit awarded in accordance
| 26 | | with this Act. |
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| 1 | | (Source: P.A. 102-669, eff. 11-16-21.) | 2 | | (20 ILCS 686/20)
| 3 | | Sec. 20. REV Illinois Program; project applications. | 4 | | (a) The Reimagining Electric Vehicles in Illinois (REV | 5 | | Illinois) Program is hereby established and shall be | 6 | | administered by the Department. The Program will provide | 7 | | financial incentives to any one or more of the following: (1) | 8 | | eligible manufacturers of electric vehicles, electric vehicle | 9 | | component parts, and electric vehicle power supply equipment; | 10 | | (2) battery recycling and reuse manufacturers; or (3) battery | 11 | | raw materials refining service providers. | 12 | | (b) Any taxpayer planning a project to be located in | 13 | | Illinois may request consideration for designation of its | 14 | | project as a REV Illinois Project, by formal written letter of | 15 | | request or by formal application to the Department, in which | 16 | | the applicant states its intent to make at least a specified | 17 | | level of investment and intends to hire a specified number of | 18 | | full-time employees at a designated location in Illinois. As | 19 | | circumstances require, the Department shall require a formal | 20 | | application from an applicant and a formal letter of request | 21 | | for assistance. | 22 | | (c) In order to qualify for credits under the REV Illinois | 23 | | Program, an applicant must: | 24 | | (1) for an electric vehicle manufacturer: | 25 | | (A) make an investment of at least $1,500,000,000 |
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| 1 | | in capital improvements at the project site; | 2 | | (B) to be placed in service within the State | 3 | | within a 60-month period after approval of the | 4 | | application; and | 5 | | (C) create at least 500 new full-time employee | 6 | | jobs; or | 7 | | (2) for an electric vehicle component parts | 8 | | manufacturer: | 9 | | (A) make an investment of at least $300,000,000 in | 10 | | capital improvements at the project site; | 11 | | (B) manufacture one or more parts that are | 12 | | primarily used for electric vehicle manufacturing; | 13 | | (C) to be placed in service within the State | 14 | | within a 60-month period after approval of the | 15 | | application; and | 16 | | (D) create at least 150 new full-time employee | 17 | | jobs; or | 18 | | (3) for an electric vehicle manufacturer, an electric | 19 | | vehicle power supply equipment manufacturer, an electric | 20 | | vehicle component part manufacturer that does not qualify | 21 | | under paragraph (2) above, a battery recycling and reuse | 22 | | manufacturer, or a battery raw materials refining service | 23 | | provider: | 24 | | (A) make an investment of at least $20,000,000 in | 25 | | capital improvements at the project site; | 26 | | (B) for electric vehicle component part |
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| 1 | | manufacturers, manufacture one or more parts that are | 2 | | primarily used for electric vehicle manufacturing; | 3 | | (C) to be placed in service within the State | 4 | | within a 48-month period after approval of the | 5 | | application; and | 6 | | (D) create at least 50 new full-time employee | 7 | | jobs; or | 8 | | (4) for an electric vehicle manufacturer or electric | 9 | | vehicle component parts manufacturer with existing | 10 | | operations within Illinois that intends to convert or | 11 | | expand, in whole or in part, the existing facility from | 12 | | traditional manufacturing to primarily electric vehicle | 13 | | manufacturing, electric vehicle component parts | 14 | | manufacturing, or electric vehicle power supply equipment | 15 | | manufacturing: | 16 | | (A) make an investment of at least $100,000,000 in | 17 | | capital improvements at the project site; | 18 | | (B) to be placed in service within the State | 19 | | within a 60-month period after approval of the | 20 | | application; and | 21 | | (C) create the lesser of 75 new full-time employee | 22 | | jobs or new full-time employee jobs equivalent to 10% | 23 | | of the Statewide baseline applicable to the taxpayer | 24 | | and any related member at the time of application. | 25 | | (d) For agreements entered into prior to April 19, 2022 | 26 | | ( the effective date of Public Act 102-700) this amendatory Act |
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| 1 | | of the 102nd General Assembly , for any applicant creating the | 2 | | full-time employee jobs noted in subsection (c), those jobs | 3 | | must have a total compensation equal to or greater than 120% of | 4 | | the average wage paid to full-time employees in the county | 5 | | where the project is located, as determined by the U.S. Bureau | 6 | | of Labor Statistics. For agreements entered into on or after | 7 | | April 19, 2022 ( the effective date of Public Act 102-700) this | 8 | | amendatory Act of the 102nd General Assembly , for any | 9 | | applicant creating the full-time employee jobs noted in | 10 | | subsection (c), those jobs must have a compensation equal to | 11 | | or greater than 120% of the average wage paid to full-time | 12 | | employees in a similar position within an occupational group | 13 | | in the county where the project is located, as determined by | 14 | | the Department U.S. Bureau of Labor Statistics . | 15 | | (e) For any applicant, within 24 months after being placed | 16 | | in service, it must certify to the Department that it is carbon | 17 | | neutral or has attained certification under one of more of the | 18 | | following green building standards: | 19 | | (1) BREEAM for New Construction or BREEAM In-Use; | 20 | | (2) ENERGY STAR; | 21 | | (3) Envision; | 22 | | (4) ISO 50001 - energy management; | 23 | | (5) LEED for Building Design and Construction or LEED | 24 | | for Building Operations and Maintenance; | 25 | | (6) Green Globes for New Construction or Green Globes | 26 | | for Existing Buildings; or |
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| 1 | | (7) UL 3223. | 2 | | (f) Each applicant must outline its hiring plan and | 3 | | commitment to recruit and hire full-time employee positions at | 4 | | the project site. The hiring plan may include a partnership | 5 | | with an institution of higher education to provide | 6 | | internships, including, but not limited to, internships | 7 | | supported by the Clean Jobs Workforce Network Program, or | 8 | | full-time permanent employment for students at the project | 9 | | site. Additionally, the applicant may create or utilize | 10 | | participants from apprenticeship programs that are approved by | 11 | | and registered with the United States Department of Labor's | 12 | | Bureau of Apprenticeship and Training. The applicant may apply | 13 | | for apprenticeship education expense credits in accordance | 14 | | with the provisions set forth in 14 Ill. Adm. Admin. Code 522. | 15 | | Each applicant is required to report annually, on or before | 16 | | April 15, on the diversity of its workforce in accordance with | 17 | | Section 50 of this Act. For existing facilities of applicants | 18 | | under paragraph (3) of subsection (b) above, if the taxpayer | 19 | | expects a reduction in force due to its transition to | 20 | | manufacturing electric vehicle, electric vehicle component | 21 | | parts, or electric vehicle power supply equipment, the plan | 22 | | submitted under this Section must outline the taxpayer's plan | 23 | | to assist with retraining its workforce aligned with the | 24 | | taxpayer's adoption of new technologies and anticipated | 25 | | efforts to retrain employees through employment opportunities | 26 | | within the taxpayer's workforce. |
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| 1 | | (g) Each applicant must demonstrate a contractual or other | 2 | | relationship with a recycling facility, or demonstrate its own | 3 | | recycling capabilities, at the time of application and report | 4 | | annually a continuing contractual or other relationship with a | 5 | | recycling facility and the percentage of batteries used in | 6 | | electric vehicles recycled throughout the term of the | 7 | | agreement. | 8 | | (h) A taxpayer may not enter into more than one agreement | 9 | | under this Act with respect to a single address or location for | 10 | | the same period of time. Also, a taxpayer may not enter into an | 11 | | agreement under this Act with respect to a single address or | 12 | | location for the same period of time for which the taxpayer | 13 | | currently holds an active agreement under the Economic | 14 | | Development for a Growing Economy Tax Credit Act. This | 15 | | provision does not preclude the applicant from entering into | 16 | | an additional agreement after the expiration or voluntary | 17 | | termination of an earlier agreement under this Act or under | 18 | | the Economic Development for a Growing Economy Tax Credit Act | 19 | | to the extent that the taxpayer's application otherwise | 20 | | satisfies the terms and conditions of this Act and is approved | 21 | | by the Department. An applicant with an existing agreement | 22 | | under the Economic Development for a Growing Economy Tax | 23 | | Credit Act may submit an application for an agreement under | 24 | | this Act after it terminates any existing agreement under the | 25 | | Economic Development for a Growing Economy Tax Credit Act with | 26 | | respect to the same address or location. If a project that is |
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| 1 | | subject to an existing agreement under the Economic
| 2 | | Development for a Growing Economy Tax Credit Act meets the
| 3 | | requirements to be designated as a REV Illinois project under
| 4 | | this Act, including for actions undertaken prior to the
| 5 | | effective date of this Act, the taxpayer that is subject to
| 6 | | that existing agreement under the Economic Development for a
| 7 | | Growing Economy Tax Credit Act may apply to the Department to
| 8 | | amend the agreement to allow the project to become a
| 9 | | designated REV Illinois project. Following the amendment, time
| 10 | | accrued during which the project was eligible for credits
| 11 | | under the existing agreement under the Economic Development
| 12 | | for a Growing Economy Tax Credit Act shall count toward the
| 13 | | duration of the credit subject to limitations described in
| 14 | | Section 40 of this Act. | 15 | | (i) If, at any time following the designation of a project
| 16 | | as a REV Illinois Project by the Department and prior to the
| 17 | | termination or expiration of an agreement under this Act, the
| 18 | | project ceases to qualify as a REV Illinois project because
| 19 | | the taxpayer is no longer an electric vehicle manufacturer, an
| 20 | | electric vehicle component manufacturer, an electric vehicle
| 21 | | power supply equipment manufacturer, a battery recycling and
| 22 | | reuse manufacturer, or a battery raw materials refining
| 23 | | service provider, that project may receive tax credit awards
| 24 | | as described in Section 5-15 and Section 5-51 of the Economic
| 25 | | Development for a Growing Economy Tax Credit Act, as long as
| 26 | | the project continues to meet requirements to obtain those
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| 1 | | credits as described in the Economic Development for a Growing
| 2 | | Economy Tax Credit Act and remains compliant with terms
| 3 | | contained in the Agreement under this Act not related to their
| 4 | | status as an electric vehicle manufacturer, an electric
| 5 | | vehicle component manufacturer, an electric vehicle power
| 6 | | supply equipment manufacturer, a battery recycling and reuse
| 7 | | manufacturer, or a battery raw materials refining service
| 8 | | provider. Time accrued during which the project was eligible
| 9 | | for credits under an agreement under this Act shall count
| 10 | | toward the duration of the credit subject to limitations
| 11 | | described in Section 5-45 of the Economic Development for a
| 12 | | Growing Economy Tax Credit Act.
| 13 | | (Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22; | 14 | | revised 6-27-22.) | 15 | | (20 ILCS 686/30)
| 16 | | Sec. 30. Tax credit awards. | 17 | | (a) Subject to the conditions set forth in this Act, a | 18 | | taxpayer is entitled to a credit against the tax imposed | 19 | | pursuant to subsections (a) and (b) of Section 201 of the | 20 | | Illinois Income Tax Act for a taxable year beginning on or | 21 | | after January 1, 2025 if the taxpayer is awarded a credit by | 22 | | the Department in accordance with an agreement under this Act. | 23 | | The Department has authority to award credits under this Act | 24 | | on and after January 1, 2022. | 25 | | (b) REV Illinois Credits. A taxpayer may receive a tax |
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| 1 | | credit against the tax imposed under subsections (a) and (b) | 2 | | of Section 201 of the Illinois Income Tax Act, not to exceed | 3 | | the sum of (i) 75% of the incremental income tax attributable | 4 | | to new employees at the applicant's project and (ii) 10% of the | 5 | | training costs of the new employees. If the project is located | 6 | | in an underserved area or an energy transition area, then the | 7 | | amount of the credit may not exceed the sum of (i) 100% of the | 8 | | incremental income tax attributable to new employees at the | 9 | | applicant's project; and (ii) 10% of the training costs of the | 10 | | new employees. The percentage of training costs includable in | 11 | | the calculation may be increased by an additional 15% for | 12 | | training costs associated with new employees that are recent | 13 | | (2 years or less) graduates, certificate holders, or | 14 | | credential recipients from an institution of higher education | 15 | | in Illinois, or, if the training is provided by an institution | 16 | | of higher education in Illinois, the Clean Jobs Workforce | 17 | | Network Program, or an apprenticeship and training program | 18 | | located in Illinois and approved by and registered with the | 19 | | United States Department of Labor's Bureau of Apprenticeship | 20 | | and Training. An applicant is also eligible for a training | 21 | | credit that shall not exceed 10% of the training costs of | 22 | | retained employees for the purpose of upskilling to meet the | 23 | | operational needs of the applicant or the REV Illinois | 24 | | Project. The percentage of training costs includable in the | 25 | | calculation shall not exceed a total of 25%. If an applicant | 26 | | agrees to hire the required number of new employees, then the |
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| 1 | | maximum amount of the credit for that applicant may be | 2 | | increased by an amount not to exceed 75% 25% of the incremental | 3 | | income tax attributable to retained employees at the | 4 | | applicant's project; provided that, in order to receive the | 5 | | increase for retained employees, the applicant must, if | 6 | | applicable, meet or exceed the statewide baseline. If the | 7 | | Project is in an underserved area or an energy transition | 8 | | area, the maximum amount of the credit attributable to | 9 | | retained employees for the applicant may be increased to an | 10 | | amount not to exceed 100% 50% of the incremental income tax | 11 | | attributable to retained employees at the applicant's project; | 12 | | provided that, in order to receive the increase for retained | 13 | | employees, the applicant must meet or exceed the statewide | 14 | | baseline. REV Illinois Credits awarded may include credit | 15 | | earned for incremental income tax withheld and training costs | 16 | | incurred by the taxpayer beginning on or after January 1, | 17 | | 2022. Credits so earned and certified by the Department may be | 18 | | applied against the tax imposed by subsections (a) and (b) of | 19 | | Section 201 of the Illinois Income Tax Act for taxable years | 20 | | beginning on or after January 1, 2025. | 21 | | (c) REV Construction Jobs Credit. For construction wages | 22 | | associated with a project that qualified for a REV Illinois | 23 | | Credit under subsection (b), the taxpayer may receive a tax | 24 | | credit against the tax imposed under subsections (a) and (b) | 25 | | of Section 201 of the Illinois Income Tax Act in an amount | 26 | | equal to 50% of the incremental income tax attributable to |
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| 1 | | construction wages paid in connection with construction of the | 2 | | project facilities, as a jobs credit for workers hired to | 3 | | construct the project. | 4 | | The REV Construction Jobs Credit may not exceed 75% of the | 5 | | amount of the incremental income tax attributable to | 6 | | construction wages paid in connection with construction of the | 7 | | project facilities if the project is in an underserved area or | 8 | | an energy transition area. | 9 | | (d) The Department shall certify to the Department of | 10 | | Revenue: (1) the identity of Taxpayers that are eligible for | 11 | | the REV Illinois Credit and REV Construction Jobs Credit; (2) | 12 | | the amount of the REV Illinois Credits and REV Construction | 13 | | Jobs Credits awarded in each calendar year; and (3) the amount | 14 | | of the REV Illinois Credit and REV Construction Jobs Credit | 15 | | claimed in each calendar year. REV Illinois Credits awarded | 16 | | may include credit earned for Incremental Income Tax withheld | 17 | | and Training Costs incurred by the Taxpayer beginning on or | 18 | | after January 1, 2022. Credits so earned and certified by the | 19 | | Department may be applied against the tax imposed by Section | 20 | | 201(a) and (b) of the Illinois Income Tax Act for taxable years | 21 | | beginning on or after January 1, 2025. | 22 | | (e) Applicants seeking certification for a tax credits | 23 | | related to the construction of the project facilities in the | 24 | | State shall require the contractor to enter into a project | 25 | | labor agreement that conforms with the Project Labor | 26 | | Agreements Act. |
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| 1 | | (f) Any applicant issued a certificate for a tax credit or | 2 | | tax exemption under this Act must annually report to the | 3 | | Department the total project tax benefits received. Reports | 4 | | are due no later than May 31 of each year and shall cover the | 5 | | previous calendar year. The first report is for the 2022 | 6 | | calendar year and is due no later than May 31, 2023. | 7 | | (g) Nothing in this Act shall prohibit an award of credit | 8 | | to an applicant that uses a PEO if all other award criteria are | 9 | | satisfied. | 10 | | (h) With respect to any portion of a REV Illinois Credit | 11 | | that is based on the incremental income tax attributable to | 12 | | new employees or retained employees, in lieu of the Credit | 13 | | allowed under this Act against the taxes imposed pursuant to | 14 | | subsections (a) and (b) of Section 201 of the Illinois Income | 15 | | Tax Act, a taxpayer that otherwise meets the criteria set | 16 | | forth in this Section, the taxpayer may elect to claim the | 17 | | credit, on or after January 1, 2025, against its obligation to | 18 | | pay over withholding under Section 704A of the Illinois Income | 19 | | Tax Act. The election shall be made in the manner prescribed by | 20 | | the Department of Revenue and once made shall be irrevocable.
| 21 | | (Source: P.A. 102-669, eff. 11-16-21.) | 22 | | (20 ILCS 686/40)
| 23 | | Sec. 40. Amount and duration of the credits; limitation to | 24 | | amount of costs of specified items. The Department shall | 25 | | determine the amount and duration of the REV Illinois Credit |
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| 1 | | awarded under this Act, subject to the limitations set forth | 2 | | in this Act. For a project that qualified under paragraph (1), | 3 | | (2), or (4) of subsection (c) of Section 20, the duration of | 4 | | the credit may not exceed 15 taxable years , with an
option to | 5 | | renew the agreement for no more than one term not to
exceed an | 6 | | additional 15 taxable years . For project that qualified under | 7 | | paragraph (3) of subsection (c) of Section 20, the duration of | 8 | | the credit may not exceed 10 taxable years , with an option to | 9 | | renew the agreement for no
more than one term not to exceed an | 10 | | additional 10 taxable
years . The credit may be stated as a | 11 | | percentage of the incremental income tax and training costs | 12 | | attributable to the applicant's project and may include a | 13 | | fixed dollar limitation. | 14 | | Nothing in this Section shall prevent the Department, in | 15 | | consultation with the Department of Revenue, from adopting | 16 | | rules to extend the sunset of any earned, existing, and unused | 17 | | tax credit or credits a taxpayer may be in possession of, as | 18 | | provided for in Section 605-1055 of the Department of Commerce | 19 | | and Economic Opportunity Law of the Civil Administrative Code | 20 | | of Illinois, notwithstanding the carry-forward provisions | 21 | | pursuant to paragraph (4) of Section 211 of the Illinois | 22 | | Income Tax Act.
| 23 | | (Source: P.A. 102-669, eff. 11-16-21.)".
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