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Full Text of SB0664  102nd General Assembly

SB0664 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0664

 

Introduced 2/24/2021, by Sen. Ann Gillespie

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 655/4  from Ch. 67 1/2, par. 604
20 ILCS 655/4.1
20 ILCS 655/5.1  from Ch. 67 1/2, par. 606
20 ILCS 655/5.2  from Ch. 67 1/2, par. 607
20 ILCS 655/5.3  from Ch. 67 1/2, par. 608
20 ILCS 655/5.4  from Ch. 67 1/2, par. 609
20 ILCS 655/5.5  from Ch. 67 1/2, par. 609.1
20 ILCS 655/8.1
20 ILCS 655/12-9  from Ch. 67 1/2, par. 626
20 ILCS 655/13

    Amends the Illinois Enterprise Zone Act. Adds requirements concerning enterprise zone applications and provisional certification and decertification of enterprise zones. Modifies the criteria for determining Enterprise Zones and underserved areas under the Act. Modifies reporting requirements under the Act. Makes conforming and other changes.


LRB102 17106 RJF 22535 b

 

 

A BILL FOR

 

SB0664LRB102 17106 RJF 22535 b

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 Sections 4, 4.1, 5.1, 5.2, 5.3, 5.4, 5.5, 8.1, 12-9,
6and 13 as follows:
 
7    (20 ILCS 655/4)  (from Ch. 67 1/2, par. 604)
8    Sec. 4. Qualifications for enterprise zones.
9    (1) An area is qualified to become an enterprise zone
10which:
11        (a) is a contiguous area, provided that a zone area
12    may exclude wholly surrounded territory within its
13    boundaries;
14        (b) comprises a minimum of one-half square mile and
15    not more than 12 square miles, or 15 square miles if the
16    zone is located within the jurisdiction of 4 or more
17    counties or municipalities, in total area, exclusive of
18    lakes and waterways; however, in such cases where the
19    enterprise zone is a joint effort of three or more units of
20    government, or two or more units of government if situated
21    in a township which is divided by a municipality of
22    1,000,000 or more inhabitants, and where the certification
23    has been in effect at least one year, the total area shall

 

 

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1    comprise a minimum of one-half square mile and not more
2    than thirteen square miles in total area exclusive of
3    lakes and waterways;
4        (c) (blank);
5        (d) (blank);
6        (e) is (1) entirely within a municipality or (2)
7    entirely within the unincorporated areas of a county,
8    except where reasonable need is established for such zone
9    to cover portions of more than one municipality or county
10    or (3) both comprises (i) all or part of a municipality and
11    (ii) an unincorporated area of a county; and
12        (f) meets 3 or more of the following criteria:
13            (1) all or part of the local labor market area has
14        had an annual average unemployment rate of at least
15        120% of the State's annual average unemployment rate
16        for the most recent calendar year or the most recent
17        fiscal year as reported by the Department of
18        Employment Security;
19            (2) designation will result in the development of
20        substantial employment opportunities by creating or
21        retaining a minimum aggregate of 1,000 full-time
22        equivalent jobs due to an aggregate investment of
23        $100,000,000 or more, and will help alleviate the
24        effects of poverty and unemployment within the local
25        labor market area;
26            (3) all or part of the local labor market area has

 

 

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1        a poverty rate of at least 20% according to the
2        American Community Survey; 35% or more of families
3        with children in the area are living below 130% of the
4        poverty line, according to the latest American
5        Community Survey; latest federal decennial census, 50%
6        or more of children in the local labor market area
7        participate in the federal free lunch program
8        according to reported statistics from the State Board
9        of Education, or 20% or more households in the local
10        labor market area receive food stamps or assistance
11        under Supplemental Nutrition Assistance Program
12        ("SNAP") according to the latest American Community
13        Survey federal decennial census;
14            (4) an abandoned coal mine, a brownfield (as
15        defined in Section 58.2 of the Environmental
16        Protection Act), or an inactive nuclear-powered
17        electrical generation facility where spent nuclear
18        fuel is stored on-site is located in the proposed zone
19        area, or all or a portion of the proposed zone was
20        declared a federal disaster area in the 3 years
21        preceding the date of application;
22            (5) the local labor market area contains a
23        presence of large employers that have downsized over
24        the years, the labor market area has experienced plant
25        closures in the 5 years prior to the date of
26        application affecting more than 50 workers, or the

 

 

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1        local labor market area has experienced State or
2        federal facility closures in the 5 years prior to the
3        date of application affecting more than 50 workers;
4            (6) based on data from Multiple Listing Service
5        information or other suitable sources, the local labor
6        market area contains a high floor vacancy rate of
7        industrial or commercial properties, vacant or
8        demolished commercial and industrial structures are
9        prevalent in the local labor market area, or
10        industrial structures in the local labor market area
11        are not used because of age, deterioration, relocation
12        of the former occupants, or cessation of operation;
13            (7) the applicant demonstrates a substantial plan
14        for using the designation to improve the State and
15        local government tax base, including income, sales,
16        and property taxes;
17            (8) significant public infrastructure is present
18        in the local labor market area in addition to a plan
19        for infrastructure development and improvement;
20            (9) high schools or community colleges located
21        within the local labor market area are engaged in ACT
22        Work Keys, Manufacturing Skills Standard
23        Certification, or other industry-based credentials
24        that prepare students for careers;
25            (10) the change in equalized assessed valuation of
26        industrial and/or commercial properties in the 5 years

 

 

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1        prior to the date of application is equal to or less
2        than 50% of the State average change in equalized
3        assessed valuation for industrial and/or commercial
4        properties, as applicable, for the same period of
5        time; or
6            (11) the applicant demonstrates a substantial plan
7        for using the designation to encourage: (i)
8        participation by businesses owned by minorities,
9        women, and persons with disabilities, as those terms
10        are defined in the Business Enterprise for Minorities,
11        Women, and Persons with Disabilities Act; and (ii) the
12        hiring of minorities, women, and persons with
13        disabilities.
14    As provided in Section 10-5.3 of the River Edge
15Redevelopment Zone Act, upon the expiration of the term of
16each River Edge Redevelopment Zone in existence on August 7,
172012 (the effective date of Public Act 97-905), that River
18Edge Redevelopment Zone will become available for its previous
19designee or a new applicant to compete for designation as an
20enterprise zone. No preference for designation will be given
21to the previous designee of the zone.
22    (2) Any criteria established by the Department or by law
23which utilize the rate of unemployment for a particular area
24shall provide that all persons who are not presently employed
25and have exhausted all unemployment benefits shall be
26considered unemployed, whether or not such persons are

 

 

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1actively seeking employment.
2(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
3101-81, eff. 7-12-19.)
 
4    (20 ILCS 655/4.1)
5    Sec. 4.1. Department recommendations.
6    (a) For all applications that qualify under Section 4 of
7this Act, the Department shall issue recommendations by
8assigning a score to each applicant. The scores will be
9determined by the Department, based on the extent to which an
10applicant meets the criteria points under subsection (f) of
11Section 4 of this Act. Scores will be determined using the
12following scoring system:
13        (1) Up to 50 points for the extent to which the
14    applicant meets or exceeds the criteria in item (1) of
15    subsection (f) of Section 4 of this Act, with points
16    awarded according to the severity of the unemployment.
17        (2) Up to 50 points for the extent to which the
18    applicant meets or exceeds the criteria in item (2) of
19    subsection (f) of Section 4 of this Act, with points
20    awarded in accordance with the number of jobs created and
21    the aggregate amount of investment promised.
22        (3) Up to 40 points for the extent to which the
23    applicant meets or exceeds the criteria in item (3) of
24    subsection (f) of Section 4 of this Act, with points
25    awarded in accordance with the severity of the

 

 

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1    unemployment rate according to the latest American
2    Community Survey federal decennial census.
3        (4) Up to 30 points for the extent to which the
4    applicant meets or exceeds the criteria in item (4) of
5    subsection (f) of Section 4 of this Act, with points
6    awarded in accordance with the severity of the
7    environmental impact of the abandoned coal mine,
8    brownfield, or federal disaster area.
9        (5) Up to 50 points for the extent to which the
10    applicant meets or exceeds the criteria in item (5) of
11    subsection (f) of Section 4 of this Act, with points
12    awarded in accordance with the severity of the applicable
13    facility closures or downsizing.
14        (6) Up to 40 points for the extent to which the
15    applicant meets or exceeds the criteria in item (6) of
16    subsection (f) of Section 4 of this Act, with points
17    awarded in accordance with the severity and extent of the
18    high floor vacancy or deterioration.
19        (7) Up to 30 points for the extent to which the
20    applicant meets or exceeds the criteria in item (7) of
21    subsection (f) of Section 4 of this Act, with points
22    awarded in accordance with the extent to which the
23    application addresses a plan to improve the State and
24    local government tax base.
25        (8) Up to 50 points for the extent to which the
26    applicant meets or exceeds the criteria in item (8) of

 

 

SB0664- 8 -LRB102 17106 RJF 22535 b

1    subsection (f) of Section 4 of this Act, with points
2    awarded in accordance with the existence of significant
3    public infrastructure.
4        (9) Up to 40 points for the extent to which the
5    applicant meets or exceeds the criteria in item (9) of
6    subsection (f) of Section 4 of this Act, with points
7    awarded in accordance with the extent to which educational
8    programs exist for career preparation.
9        (10) Up to 40 points for the extent to which the
10    applicant meets or exceeds the criteria in item (10) of
11    subsection (f) of Section 4 of this Act, with points
12    awarded according to the severity of the change in
13    equalized assessed valuation.
14        (11) Up to 40 points for the extent to which the
15    applicant meets or exceeds the criteria in item (11) of
16    subsection (f) of Section 4 of this Act.
17    (b) After assigning a score for each of the individual
18criteria using the point system as described in subsection
19(a), the Department shall then take the sum of the scores for
20each applicant and assign a final score. The Department shall
21then submit this information to the Board, as required in
22subsection (c) of Section 5.2, as its recommendation.
23(Source: P.A. 100-838, eff. 8-13-18.)
 
24    (20 ILCS 655/5.1)  (from Ch. 67 1/2, par. 606)
25    Sec. 5.1. Application to Department.

 

 

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1    (a) A county or municipality which has adopted an
2ordinance designating an area as an enterprise zone shall make
3written application to the Department to have such proposed
4enterprise zone certified by the Department as an Enterprise
5Zone. The application shall include:
6        (i) a certified copy of the ordinance designating the
7    proposed zone;
8        (ii) a map of the proposed enterprise zone, showing
9    existing streets and highways;
10        (iii) an analysis, and any appropriate supporting
11    documents and statistics, demonstrating that the proposed
12    zone area is qualified in accordance with Section 4;
13        (iv) a statement detailing any tax, grant, and other
14    financial incentives or benefits, and any programs, to be
15    provided by the municipality or county to business
16    enterprises within the zone, other than those provided in
17    the designating ordinance, which are not to be provided
18    throughout the municipality or county;
19        (v) a statement setting forth the economic development
20    and planning objectives for the zone;
21        (vi) a statement describing the functions, programs,
22    and services to be performed by designated zone
23    organizations within the zone;
24        (vii) an estimate of the economic impact of the zone,
25    considering all of the tax incentives, financial benefits
26    and programs contemplated, upon the revenues of the

 

 

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1    municipality or county;
2        (viii) a transcript of all public hearings on the
3    zone;
4        (ix) in the case of a joint application, a statement
5    detailing the need for a zone covering portions of more
6    than one municipality or county and a description of the
7    agreement between joint applicants; and
8        (x) such additional information as the Department by
9    regulation may require.
10    (b) The Department may provide for provisional
11certification of substantially complete applications pending
12the receipt of any of the items identified in subsection (a) or
13any additional information requested by the Department.
14(Source: P.A. 82-1019.)
 
15    (20 ILCS 655/5.2)  (from Ch. 67 1/2, par. 607)
16    Sec. 5.2. Department Review of Enterprise Zone
17Applications.
18    (a) All applications which are to be considered and acted
19upon by the Department during a calendar year must be received
20by the Department no later than December 31 of the preceding
21calendar year.
22    Any application received after December 31 of any calendar
23year shall be held by the Department for consideration and
24action during the following calendar year.
25    Each enterprise zone application shall include a specific

 

 

SB0664- 11 -LRB102 17106 RJF 22535 b

1definition of the applicant's local labor market area.
2    (a-5) The Department shall, no later than July 31, 2013,
3develop an application process for an enterprise zone
4application. The Department has emergency rulemaking authority
5for the purpose of application development only until 12
6months after the effective date of this amendatory Act of the
797th General Assembly.
8    (b) Upon receipt of an application from a county or
9municipality the Department shall review the application to
10determine whether the designated area qualifies as an
11enterprise zone under Section 4 of this Act.
12    (c) No later than June 30, the Department shall notify all
13applicant municipalities and counties of the Department's
14determination of the qualification of their respective
15designated enterprise zone areas, and shall send qualifying
16applications, including the applicant's scores for items (1)
17through (10) of subsection (a) of Section 4.1 and the
18applicant's final score under that Section, to the Board for
19the Board's consideration, along with supporting documentation
20of the basis for the Department's decision.
21    (d) If any such designated area is found to be qualified to
22be an enterprise zone by the Department under subsection (c)
23of this Section, the Department shall, no later than July 15,
24send a letter of notification to each member of the General
25Assembly whose legislative district or representative district
26contains all or part of the designated area and publish a

 

 

SB0664- 12 -LRB102 17106 RJF 22535 b

1notice in at least one newspaper of general circulation within
2the proposed zone area to notify the general public of the
3application and their opportunity to comment. Such notice
4shall include a description of the area and a brief summary of
5the application and shall indicate locations where the
6applicant has provided copies of the application for public
7inspection. The notice shall also indicate appropriate
8procedures for the filing of written comments from zone
9residents, business, civic and other organizations and
10property owners to the Department. The Department and the
11Board may consider written comments submitted pursuant to this
12Section or any other information regarding a pending
13enterprise zone application submitted after the deadline for
14enterprise zone application and received prior to the Board's
15decision on all pending applications.
16    (e) (Blank).
17    (f) (Blank).
18    (g) (Blank).
19    (h) (Blank).
20(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 
21    (20 ILCS 655/5.3)  (from Ch. 67 1/2, par. 608)
22    Sec. 5.3. Certification of Enterprise Zones; effective
23date.
24    (a) Certification of Board-approved designated Enterprise
25Zones shall be made by the Department by certification of the

 

 

SB0664- 13 -LRB102 17106 RJF 22535 b

1designating ordinance. The Department shall promptly issue a
2certificate for each Enterprise Zone upon approval by the
3Board. The certificate shall be signed by the Director of the
4Department, shall make specific reference to the designating
5ordinance, which shall be attached thereto, and shall be filed
6in the office of the Secretary of State. A certified copy of
7the Enterprise Zone Certificate, or a duplicate original
8thereof, shall be recorded in the office of recorder of deeds
9of the county in which the Enterprise Zone lies.
10    (b) An Enterprise Zone certified prior to January 1, 2016
11or on or after January 1, 2017 shall be effective on January 1
12of the first calendar year after Department certification. An
13Enterprise Zone certified on or after January 1, 2016 and on or
14before December 31, 2016 shall be effective on the date of the
15Department's certification. The Department shall transmit a
16copy of the certification to the Department of Revenue, and to
17the designating municipality or county.
18    Upon certification of an Enterprise Zone, the terms and
19provisions of the designating ordinance shall be in effect,
20and may not be amended or repealed except in accordance with
21Section 5.4.
22    (c) With the exception of Enterprise Zones scheduled to
23expire before December 31, 2018, an Enterprise Zone designated
24before the effective date of this amendatory Act of the 97th
25General Assembly shall be in effect for 30 calendar years, or
26for a lesser number of years specified in the certified

 

 

SB0664- 14 -LRB102 17106 RJF 22535 b

1designating ordinance. Notwithstanding the foregoing, any
2Enterprise Zone in existence on the effective date of this
3amendatory Act of the 98th General Assembly that has a term of
420 calendar years may be extended for an additional 10
5calendar years upon amendment of the designating ordinance by
6the designating municipality or county and submission of the
7ordinance to the Department. The amended ordinance must be
8properly recorded in the Office of Recorder of Deeds of each
9county in which the Enterprise Zone lies. Each Enterprise Zone
10in existence on the effective date of this amendatory Act of
11the 97th General Assembly that is scheduled to expire before
12July 1, 2016 may have its termination date extended until July
131, 2016 upon amendment of the designating ordinance by the
14designating municipality or county extending the termination
15date to July 1, 2016 and submission of the ordinance to the
16Department. The amended ordinance must be properly recorded in
17the Office of Recorder of Deeds of each county in which the
18Enterprise Zone lies. An Enterprise Zone designated on or
19after the effective date of this amendatory Act of the 97th
20General Assembly shall be in effect for a term of 15 calendar
21years, or for a lesser number of years specified in the
22certified designating ordinance. An enterprise zone designated
23on or after the effective date of this amendatory Act of the
2497th General Assembly shall be subject to review by the Board
25after 13 years for an additional 10-year designation beginning
26on the expiration date of the enterprise zone. During the

 

 

SB0664- 15 -LRB102 17106 RJF 22535 b

1review process, the Board shall consider the costs incurred by
2the State and units of local government as a result of tax
3benefits received by the enterprise zone. Enterprise Zones
4shall terminate at midnight of December 31 of the final
5calendar year of the certified term, except as provided in
6Section 5.4.
7    (d) No more than 12 Enterprise Zones may be certified by
8the Department in calendar year 1984, no more than 12
9Enterprise Zones may be certified by the Department in
10calendar year 1985, no more than 13 Enterprise Zones may be
11certified by the Department in calendar year 1986, no more
12than 15 Enterprise Zones may be certified by the Department in
13calendar year 1987, and no more than 20 Enterprise Zones may be
14certified by the Department in calendar year 1990. In other
15calendar years, no more than 13 Enterprise Zones may be
16certified by the Department. The Department may also designate
17up to 8 additional Enterprise Zones outside the regular
18application cycle if warranted by the extreme economic
19circumstances as determined by the Department. The Department
20may also designate one additional Enterprise Zone outside the
21regular application cycle if an aircraft manufacturer agrees
22to locate an aircraft manufacturing facility in the proposed
23Enterprise Zone. Notwithstanding any other provision of this
24Act, no more than 89 Enterprise Zones may be certified by the
25Department for the 10 calendar years commencing with 1983. The
267 additional Enterprise Zones authorized by Public Act 86-15

 

 

SB0664- 16 -LRB102 17106 RJF 22535 b

1shall not lie within municipalities or unincorporated areas of
2counties that abut or are contiguous to Enterprise Zones
3certified pursuant to this Section prior to June 30, 1989. The
47 additional Enterprise Zones (excluding the additional
5Enterprise Zone which may be designated outside the regular
6application cycle) authorized by Public Act 86-1030 shall not
7lie within municipalities or unincorporated areas of counties
8that abut or are contiguous to Enterprise Zones certified
9pursuant to this Section prior to February 28, 1990. Beginning
10in calendar year 2004 and until December 31, 2008, one
11additional enterprise zone may be certified by the Department.
12In any calendar year, the Department may not certify more than
133 Zones located within the same municipality. The Department
14may certify Enterprise Zones in each of the 10 calendar years
15commencing with 1983. The Department may not certify more than
16a total of 18 Enterprise Zones located within the same county
17(whether within municipalities or within unincorporated
18territory) for the 10 calendar years commencing with 1983.
19Thereafter, the Department may not certify any additional
20Enterprise Zones, but may amend and rescind certifications of
21existing Enterprise Zones in accordance with Section 5.4.
22    (e) Notwithstanding any other provision of law, if (i) the
23county board of any county in which a current military base is
24located, in part or in whole, or in which a military base that
25has been closed within 20 years of the effective date of this
26amendatory Act of 1998 is located, in part or in whole, adopts

 

 

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1a designating ordinance in accordance with Section 5 of this
2Act to designate the military base in that county as an
3enterprise zone and (ii) the property otherwise meets the
4qualifications for an enterprise zone as prescribed in Section
54 of this Act, then the Department may certify the designating
6ordinance or ordinances, as the case may be.
7    (f) Applications for Enterprise Zones that are scheduled
8to expire in 2016, including Enterprise Zones that have been
9extended until 2016 by this amendatory Act of the 97th General
10Assembly, shall be submitted to the Department no later than
11December 31, 2014. At that time, the Zone becomes available
12for either the previously designated area or a different area
13to compete for designation. No preference for designation as a
14Zone will be given to the previously designated area.
15    For Enterprise Zones that are scheduled to expire on or
16after January 1, 2017 and prior to January 1, 2023, an
17application process shall begin 2 years prior to the year in
18which the Zone expires. At that time, the Zone becomes
19available for either the previously designated area or a
20different area to compete for designation. No preference for
21designation as a Zone will be given to the previously
22designated area.
23    For Enterprise Zones that are scheduled to expire on or
24after January 1, 2023, an application process shall begin 5
25years prior to the year in which the Zone expires. At that
26time, the Zone becomes available for either the previously

 

 

SB0664- 18 -LRB102 17106 RJF 22535 b

1designated area or a different area to compete for
2designation. No preference for designation as a Zone will be
3given to the previously designated area.
4    Each Enterprise Zone that reapplies for certification but
5does not receive a new certification shall expire on its
6scheduled termination date.
7(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
 
8    (20 ILCS 655/5.4)  (from Ch. 67 1/2, par. 609)
9    Sec. 5.4. Amendment and Decertification of Enterprise
10Zones.
11    (a) The terms of a certified enterprise zone designating
12ordinance may be amended to
13        (i) alter the boundaries of the Enterprise Zone, or
14        (ii) expand, limit or repeal tax incentives or
15    benefits provided in the ordinance, or
16        (iii) alter the termination date of the zone, or
17        (iv) make technical corrections in the enterprise zone
18    designating ordinance; but such amendment shall not be
19    effective unless the Department issues an amended
20    certificate for the Enterprise Zone, approving the amended
21    designating ordinance. Upon the adoption of any ordinance
22    amending or repealing the terms of a certified enterprise
23    zone designating ordinance, the municipality or county
24    shall promptly file with the Department an application for
25    approval thereof, containing substantially the same

 

 

SB0664- 19 -LRB102 17106 RJF 22535 b

1    information as required for an application under Section
2    5.1 insofar as material to the proposed changes. The
3    municipality or county must hold a public hearing on the
4    proposed changes as specified in Section 5 and, if the
5    amendment is to effectuate the limitation of tax
6    abatements under Section 5.4.1, then the public notice of
7    the hearing shall state that property that is in both the
8    enterprise zone and a redevelopment project area may not
9    receive tax abatements unless within 60 days after the
10    adoption of the amendment to the designating ordinance the
11    municipality has determined that eligibility for tax
12    abatements has been established,
13        (v) include an area within another municipality or
14    county as part of the designated enterprise zone provided
15    the requirements of Section 4 are complied with, or
16        (vi) effectuate the limitation of tax abatements under
17    Section 5.4.1.
18    (b) The Department shall approve or disapprove a proposed
19amendment to a certified enterprise zone within 90 days of its
20receipt of the application from the municipality or county.
21The Department may not approve changes in a Zone which are not
22in conformity with this Act, as now or hereafter amended, or
23with other applicable laws. If the Department issues an
24amended certificate for an Enterprise Zone, the amended
25certificate, together with the amended zone designating
26ordinance, shall be filed, recorded and transmitted as

 

 

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1provided in Section 5.3.
2    (c) An Enterprise Zone may be decertified by joint action
3of the Department and the designating county or municipality
4in accordance with this Section. The designating county or
5municipality shall conduct at least one public hearing within
6the zone prior to its adoption of an ordinance of
7de-designation. The mayor of the designating municipality or
8the chairman of the county board of the designating county
9shall execute a joint decertification agreement with the
10Department. A decertification of an Enterprise Zone shall not
11become effective until at least 6 months after the execution
12of the decertification agreement, which shall be filed in the
13office of the Secretary of State.
14    (d) An Enterprise Zone may be decertified for cause by the
15Department in accordance with this Section. Prior to
16decertification: (1) the Department shall notify the chief
17elected official of the designating county or municipality in
18writing of the specific deficiencies which provide cause for
19decertification; (2) the Department shall place the
20designating county or municipality on probationary status for
21at least 6 months during which time corrective action may be
22achieved in the enterprise zone by the designating county or
23municipality; and, (3) the Department shall conduct at least
24one public hearing within the zone. If such corrective action
25is not achieved during the probationary period, the Department
26shall issue an amended certificate signed by the Director of

 

 

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1the Department decertifying the enterprise zone, which
2certificate shall be filed in the office of the Secretary of
3State. A certified copy of the amended enterprise zone
4certificate, or a duplicate original thereof, shall be
5recorded in the office of recorder of the county in which the
6enterprise zone lies, and shall be provided to the chief
7elected official of the designating county or municipality.
8Decertification of an Enterprise Zone shall not become
9effective until 60 days after the date of filing.
10    (d-5) The Department shall provisionally decertify any
11Enterprise Zone that fails to file a report or fails to report
12any capital investment, job creation, or retention, or State
13tax expenditures for 3 consecutive calendar years. Prior to
14provisional decertification: (i) the Department shall notify
15the chief elected official of the designating county or
16municipality in writing of the specific deficiencies which
17provide cause for decertification; (ii) the Department shall
18place the designating county or municipality on probationary
19status for at least 6 months during which time corrective
20action may be achieved in the Enterprise Zone by the
21designating county or municipality; and (iii) the Department
22shall conduct at least one public hearing within the Zone. If
23such corrective action is not achieved during the probationary
24period, the Department shall issue an amended certificate
25signed by the Director of the Department provisionally
26decertifying the Enterprise Zone as of the scheduled

 

 

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1termination date of the then-current designation. If the
2provisionally-decertified Zone was approved and designated
3after January 13, 2021 (the end of the 101st General Assembly)
4and has been in existence for less than 15 years, such Zone
5shall not be eligible for an additional 10-year designation
6after the expiration date of the original Zone set forth in
7subsection (c) of Section 5.3. Further, if such corrective
8action is not achieved during the probationary period for in
9this Section, following such probationary period the Zone
10becomes available for a different area to compete for
11designation.
12    (e) In the event of a decertification, provisional
13decertification, or an amendment reducing the length of the
14term or the area of an Enterprise Zone or the adoption of an
15ordinance reducing or eliminating tax benefits in an
16Enterprise Zone, all benefits previously extended within the
17Zone pursuant to this Act or pursuant to any other Illinois law
18providing benefits specifically to or within Enterprise Zones
19shall remain in effect for the original stated term of the
20Enterprise Zone, with respect to business enterprises within
21the Zone on the effective date of such decertification,
22provisional decertification, or amendment, and with respect to
23individuals participating in urban homestead programs under
24this Act.
25    (f) Except as otherwise provided in Section 5.4.1, with
26respect to business enterprises (or expansions thereof) which

 

 

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1are proposed or under development within a Zone at the time of
2a decertification or an amendment reducing the length of the
3term of the Zone, or excluding from the Zone area the site of
4the proposed enterprise, or an ordinance reducing or
5eliminating tax benefits in a Zone, such business enterprise
6shall be entitled to the benefits previously applicable within
7the Zone for the original stated term of the Zone, if the
8business enterprise establishes:
9        (i) that the proposed business enterprise or expansion
10    has been committed to be located within the Zone;
11        (ii) that substantial and binding financial
12    obligations have been made towards the development of such
13    enterprise; and
14        (iii) that such commitments have been made in
15    reasonable reliance on the benefits and programs which
16    were to have been applicable to the enterprise by reason
17    of the Zone, including in the case of a reduction in term
18    of a zone, the original length of the term.
19    In declaratory judgment actions under this paragraph, the
20Department and the designating municipality or county shall be
21necessary parties defendant.
22(Source: P.A. 90-258, eff. 7-30-97.)
 
23    (20 ILCS 655/5.5)   (from Ch. 67 1/2, par. 609.1)
24    Sec. 5.5. High Impact Business.
25    (a) In order to respond to unique opportunities to assist

 

 

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1in the encouragement, development, growth, and expansion of
2the private sector through large scale investment and
3development projects, the Department is authorized to receive
4and approve applications for the designation of "High Impact
5Businesses" in Illinois subject to the following conditions:
6        (1) such applications may be submitted at any time
7    during the year;
8        (2) such business is not located, at the time of
9    designation, in an enterprise zone designated pursuant to
10    this Act;
11        (3) the business intends to do one or more of the
12    following:
13            (A) the business intends to make a minimum
14        investment of $12,000,000 which will be placed in
15        service in qualified property and intends to create
16        500 full-time equivalent jobs at a designated location
17        in Illinois or intends to make a minimum investment of
18        $30,000,000 which will be placed in service in
19        qualified property and intends to retain 1,500
20        full-time retained jobs at a designated location in
21        Illinois. The business must certify in writing that
22        the investments would not be placed in service in
23        qualified property and the job creation or job
24        retention would not occur without the tax credits and
25        exemptions set forth in subsection (b) of this
26        Section. The terms "placed in service" and "qualified

 

 

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1        property" have the same meanings as described in
2        subsection (h) of Section 201 of the Illinois Income
3        Tax Act; or
4            (B) the business intends to establish a new
5        electric generating facility at a designated location
6        in Illinois. "New electric generating facility", for
7        purposes of this Section, means a newly-constructed
8        electric generation plant or a newly-constructed
9        generation capacity expansion at an existing electric
10        generation plant, including the transmission lines and
11        associated equipment that transfers electricity from
12        points of supply to points of delivery, and for which
13        such new foundation construction commenced not sooner
14        than July 1, 2001. Such facility shall be designed to
15        provide baseload electric generation and shall operate
16        on a continuous basis throughout the year; and (i)
17        shall have an aggregate rated generating capacity of
18        at least 1,000 megawatts for all new units at one site
19        if it uses natural gas as its primary fuel and
20        foundation construction of the facility is commenced
21        on or before December 31, 2004, or shall have an
22        aggregate rated generating capacity of at least 400
23        megawatts for all new units at one site if it uses coal
24        or gases derived from coal as its primary fuel and
25        shall support the creation of at least 150 new
26        Illinois coal mining jobs, or (ii) shall be funded

 

 

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1        through a federal Department of Energy grant before
2        December 31, 2010 and shall support the creation of
3        Illinois coal-mining jobs, or (iii) shall use coal
4        gasification or integrated gasification-combined cycle
5        units that generate electricity or chemicals, or both,
6        and shall support the creation of Illinois coal-mining
7        jobs. The business must certify in writing that the
8        investments necessary to establish a new electric
9        generating facility would not be placed in service and
10        the job creation in the case of a coal-fueled plant
11        would not occur without the tax credits and exemptions
12        set forth in subsection (b-5) of this Section. The
13        term "placed in service" has the same meaning as
14        described in subsection (h) of Section 201 of the
15        Illinois Income Tax Act; or
16            (B-5) the business intends to establish a new
17        gasification facility at a designated location in
18        Illinois. As used in this Section, "new gasification
19        facility" means a newly constructed coal gasification
20        facility that generates chemical feedstocks or
21        transportation fuels derived from coal (which may
22        include, but are not limited to, methane, methanol,
23        and nitrogen fertilizer), that supports the creation
24        or retention of Illinois coal-mining jobs, and that
25        qualifies for financial assistance from the Department
26        before December 31, 2010. A new gasification facility

 

 

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1        does not include a pilot project located within
2        Jefferson County or within a county adjacent to
3        Jefferson County for synthetic natural gas from coal;
4        or
5            (C) the business intends to establish production
6        operations at a new coal mine, re-establish production
7        operations at a closed coal mine, or expand production
8        at an existing coal mine at a designated location in
9        Illinois not sooner than July 1, 2001; provided that
10        the production operations result in the creation of
11        150 new Illinois coal mining jobs as described in
12        subdivision (a)(3)(B) of this Section, and further
13        provided that the coal extracted from such mine is
14        utilized as the predominant source for a new electric
15        generating facility. The business must certify in
16        writing that the investments necessary to establish a
17        new, expanded, or reopened coal mine would not be
18        placed in service and the job creation would not occur
19        without the tax credits and exemptions set forth in
20        subsection (b-5) of this Section. The term "placed in
21        service" has the same meaning as described in
22        subsection (h) of Section 201 of the Illinois Income
23        Tax Act; or
24            (D) the business intends to construct new
25        transmission facilities or upgrade existing
26        transmission facilities at designated locations in

 

 

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1        Illinois, for which construction commenced not sooner
2        than July 1, 2001. For the purposes of this Section,
3        "transmission facilities" means transmission lines
4        with a voltage rating of 115 kilovolts or above,
5        including associated equipment, that transfer
6        electricity from points of supply to points of
7        delivery and that transmit a majority of the
8        electricity generated by a new electric generating
9        facility designated as a High Impact Business in
10        accordance with this Section. The business must
11        certify in writing that the investments necessary to
12        construct new transmission facilities or upgrade
13        existing transmission facilities would not be placed
14        in service without the tax credits and exemptions set
15        forth in subsection (b-5) of this Section. The term
16        "placed in service" has the same meaning as described
17        in subsection (h) of Section 201 of the Illinois
18        Income Tax Act; or
19            (E) the business intends to establish a new wind
20        power facility at a designated location in Illinois.
21        For purposes of this Section, "new wind power
22        facility" means a newly constructed electric
23        generation facility, or a newly constructed expansion
24        of an existing electric generation facility, placed in
25        service on or after July 1, 2009, that generates
26        electricity using wind energy devices, and such

 

 

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

 

 

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

 

 

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1following Acts: Section 9-222 and Section 9-222.1A of the
2Public Utilities Act, subsection (h) of Section 201 of the
3Illinois Income Tax Act, and Section 1d of the Retailers'
4Occupation Tax Act; provided that these credits and exemptions
5described in these Acts shall not be authorized until the
6minimum investments set forth in subdivision (a)(3)(A) of this
7Section have been placed in service in qualified properties
8and, in the case of the exemptions described in the Public
9Utilities Act and Section 1d of the Retailers' Occupation Tax
10Act, the minimum full-time equivalent jobs or full-time
11retained jobs set forth in subdivision (a)(3)(A) of this
12Section have been created or retained. Businesses designated
13as High Impact Businesses under this Section shall also
14qualify for the exemption described in Section 5l of the
15Retailers' Occupation Tax Act. The credit provided in
16subsection (h) of Section 201 of the Illinois Income Tax Act
17shall be applicable to investments in qualified property as
18set forth in subdivision (a)(3)(A) of this Section.
19    (b-5) Businesses designated as High Impact Businesses
20pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
21and (a)(3)(D) of this Section shall qualify for the credits
22and exemptions described in the following Acts: Section 51 of
23the Retailers' Occupation Tax Act, Section 9-222 and Section
249-222.1A of the Public Utilities Act, and subsection (h) of
25Section 201 of the Illinois Income Tax Act; however, the
26credits and exemptions authorized under Section 9-222 and

 

 

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

 

 

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1the following Acts: Section 9-221 and Section 9-222.1 of the
2Public Utilities Act; and subsection (g) of Section 201, and
3Section 203 of the Illinois Income Tax Act.
4    (d) Except for businesses contemplated under subdivision
5(a)(3)(E) of this Section, existing Illinois businesses which
6apply for designation as a High Impact Business must provide
7the Department with the prospective plan for which 1,500
8full-time retained jobs would be eliminated in the event that
9the business is not designated.
10    (e) Except for new wind power facilities contemplated
11under subdivision (a)(3)(E) of this Section, new proposed
12facilities which apply for designation as High Impact Business
13must provide the Department with proof of alternative
14non-Illinois sites which would receive the proposed investment
15and job creation in the event that the business is not
16designated as a High Impact Business.
17    (f) Except for businesses contemplated under subdivision
18(a)(3)(E) of this Section, in the event that a business is
19designated a High Impact Business and it is later determined
20after reasonable notice and an opportunity for a hearing as
21provided under the Illinois Administrative Procedure Act, that
22the business would have placed in service in qualified
23property the investments and created or retained the requisite
24number of jobs without the benefits of the High Impact
25Business designation, the Department shall be required to
26immediately revoke the designation and notify the Director of

 

 

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

 

 

SB0664- 35 -LRB102 17106 RJF 22535 b

1amount equal to 50% of the amount of the incremental income tax
2attributable to High Impact Business construction jobs credit
3employees employed in the course of completing a High Impact
4Business construction jobs project. However, the High Impact
5Business construction jobs credit may equal 75% of the amount
6of the incremental income tax attributable to High Impact
7Business construction jobs credit employees if the High Impact
8Business construction jobs credit project is located in an
9underserved area.
10    The Department shall certify to the Department of Revenue:
11(1) the identity of taxpayers that are eligible for the High
12Impact Business construction jobs credit; and (2) the amount
13of High Impact Business construction jobs credits that are
14claimed pursuant to subsection (h-5) of Section 201 of the
15Illinois Income Tax Act in each taxable year. Any business
16entity that receives a High Impact Business construction jobs
17credit shall maintain a certified payroll pursuant to
18subsection (j) of this Section.
19    As used in this subsection (i):
20    "High Impact Business construction jobs credit" means an
21amount equal to 50% (or 75% if the High Impact Business
22construction project is located in an underserved area) of the
23incremental income tax attributable to High Impact Business
24construction job employees. The total aggregate amount of
25credits awarded under the Blue Collar Jobs Act (Article 20 of
26Public Act 101-9 this amendatory Act of the 101st General

 

 

SB0664- 36 -LRB102 17106 RJF 22535 b

1Assembly) shall not exceed $20,000,000 in any State fiscal
2year
3    "High Impact Business construction job employee" means a
4laborer or worker who is employed by an Illinois contractor or
5subcontractor in the actual construction work on the site of a
6High Impact Business construction job project.
7    "High Impact Business construction jobs project" means
8building a structure or building or making improvements of any
9kind to real property, undertaken and commissioned by a
10business that was designated as a High Impact Business by the
11Department. The term "High Impact Business construction jobs
12project" does not include the routine operation, routine
13repair, or routine maintenance of existing structures,
14buildings, or real property.
15    "Incremental income tax" means the total amount withheld
16during the taxable year from the compensation of High Impact
17Business construction job employees.
18    "Underserved area" means a geographic area that meets one
19or more of the following conditions:
20        (1) the area has a poverty rate of at least 20%
21    according to the latest American Community Survey federal
22    decennial census;
23        (2) 35% 75% or more of the families with children in
24    the area are living below 130% of the poverty line,
25    according to the latest American Community Survey children
26    in the area participate in the federal free lunch program

 

 

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1    according to reported statistics from the State Board of
2    Education;
3        (3) at least 20% of the households in the area receive
4    assistance under the Supplemental Nutrition Assistance
5    Program (SNAP); or
6        (4) the area has an average unemployment rate, as
7    determined by the Illinois Department of Employment
8    Security, that is more than 120% of the national
9    unemployment average, as determined by the U.S. Department
10    of Labor, for a period of at least 2 consecutive calendar
11    years preceding the date of the application.
12    (j) Each contractor and subcontractor who is engaged in
13and executing a High Impact Business Construction jobs
14project, as defined under subsection (i) of this Section, for
15a business that is entitled to a credit pursuant to subsection
16(i) of this Section shall:
17        (1) make and keep, for a period of 5 years from the
18    date of the last payment made on or after June 5, 2019 (the
19    effective date of Public Act 101-9) this amendatory Act of
20    the 101st General Assembly on a contract or subcontract
21    for a High Impact Business Construction Jobs Project,
22    records for all laborers and other workers employed by the
23    contractor or subcontractor on the project; the records
24    shall include:
25            (A) the worker's name;
26            (B) the worker's address;

 

 

SB0664- 38 -LRB102 17106 RJF 22535 b

1            (C) the worker's telephone number, if available;
2            (D) the worker's social security number;
3            (E) the worker's classification or
4        classifications;
5            (F) the worker's gross and net wages paid in each
6        pay period;
7            (G) the worker's number of hours worked each day;
8            (H) the worker's starting and ending times of work
9        each day;
10            (I) the worker's hourly wage rate; and
11            (J) the worker's hourly overtime wage rate;
12        (2) no later than the 15th day of each calendar month,
13    provide a certified payroll for the immediately preceding
14    month to the taxpayer in charge of the High Impact
15    Business construction jobs project; within 5 business days
16    after receiving the certified payroll, the taxpayer shall
17    file the certified payroll with the Department of Labor
18    and the Department of Commerce and Economic Opportunity; a
19    certified payroll must be filed for only those calendar
20    months during which construction on a High Impact Business
21    construction jobs project has occurred; the certified
22    payroll shall consist of a complete copy of the records
23    identified in paragraph (1) of this subsection (j), but
24    may exclude the starting and ending times of work each
25    day; the certified payroll shall be accompanied by a
26    statement signed by the contractor or subcontractor or an

 

 

SB0664- 39 -LRB102 17106 RJF 22535 b

1    officer, employee, or agent of the contractor or
2    subcontractor which avers that:
3            (A) he or she has examined the certified payroll
4        records required to be submitted by the Act and such
5        records are true and accurate; and
6            (B) the contractor or subcontractor is aware that
7        filing a certified payroll that he or she knows to be
8        false is a Class A misdemeanor.
9    A general contractor is not prohibited from relying on a
10certified payroll of a lower-tier subcontractor, provided the
11general contractor does not knowingly rely upon a
12subcontractor's false certification.
13    Any contractor or subcontractor subject to this
14subsection, and any officer, employee, or agent of such
15contractor or subcontractor whose duty as an officer,
16employee, or agent it is to file a certified payroll under this
17subsection, who willfully fails to file such a certified
18payroll on or before the date such certified payroll is
19required by this paragraph to be filed and any person who
20willfully files a false certified payroll that is false as to
21any material fact is in violation of this Act and guilty of a
22Class A misdemeanor.
23    The taxpayer in charge of the project shall keep the
24records submitted in accordance with this subsection on or
25after June 5, 2019 (the effective date of Public Act 101-9)
26this amendatory Act of the 101st General Assembly for a period

 

 

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1of 5 years from the date of the last payment for work on a
2contract or subcontract for the High Impact Business
3construction jobs project.
4    The records submitted in accordance with this subsection
5shall be considered public records, except an employee's
6address, telephone number, and social security number, and
7made available in accordance with the Freedom of Information
8Act. The Department of Labor shall accept any reasonable
9submissions by the contractor that meet the requirements of
10this subsection (j) and shall share the information with the
11Department in order to comply with the awarding of a High
12Impact Business construction jobs credit. A contractor,
13subcontractor, or public body may retain records required
14under this Section in paper or electronic format.
15    (k) Upon 7 business days' notice, each contractor and
16subcontractor shall make available for inspection and copying
17at a location within this State during reasonable hours, the
18records identified in this subsection (j) to the taxpayer in
19charge of the High Impact Business construction jobs project,
20its officers and agents, the Director of the Department of
21Labor and his or her deputies and agents, and to federal,
22State, or local law enforcement agencies and prosecutors.
23(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
 
24    (20 ILCS 655/8.1)
25    Sec. 8.1. Accounting.

 

 

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1    (a) Any business receiving tax incentives due to its
2location within an Enterprise Zone or its designation as a
3High Impact Business must annually report to the Department of
4Revenue information reasonably required by the Department of
5Revenue to enable the Department to verify and calculate the
6total Enterprise Zone or High Impact Business tax benefits for
7property taxes and taxes imposed by the State that are
8received by the business, broken down by incentive category
9and enterprise zone, if applicable. Reports will be due no
10later than May 31 of each year and shall cover the previous
11calendar year. The first report will be for the 2012 calendar
12year and will be due no later than May 31, 2013. Failure to
13report data may result in ineligibility to receive incentives.
14To the extent that a business receiving tax incentives has
15obtained an Enterprise Zone Building Materials Exemption
16Certificate or a High Impact Business Building Materials
17Exemption Certificate, that business is required to report
18those building materials exemption benefits only under
19subsection (a-5) of this Section. No additional reporting for
20those building materials exemption benefits is required under
21this subsection (a). In addition, if the Department determines
22that 80% or more of the businesses receiving tax incentives
23because of their location within a particular Enterprise Zone
24failed to submit the information required under this
25subsection (a) to the Department in any calendar year, then
26the Enterprise Zone may be decertified by the Department. If

 

 

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1the Department is able to determine that specific businesses
2are failing to submit the information required under this
3subsection (a) to the Department in any calendar year to the
4Zone Administrator, regardless of the Administrator's efforts
5to enforce reporting, the Department may, at its discretion,
6suspend the benefits to the specific business rather than an
7outright decertification of the particular Enterprise Zone.
8The Department, in consultation with the Department of
9Revenue, is authorized to adopt rules governing ineligibility
10to receive exemptions, including the length of ineligibility.
11Factors to be considered in determining whether a business is
12ineligible shall include, but are not limited to, prior
13compliance with the reporting requirements, cooperation in
14discontinuing and correcting violations, the extent of the
15violation, and whether the violation was willful or
16inadvertent.
17    (a-5) Each contractor or other entity that has been issued
18an Enterprise Zone Building Materials Exemption Certificate
19under Section 5k of the Retailers' Occupation Tax Act or a High
20Impact Business Building Materials Exemption Certificate under
21Section 5l of the Retailers' Occupation Tax Act shall annually
22report to the Department of Revenue the total value of the
23Enterprise Zone or High Impact Business building materials
24exemption from State taxes. Reports shall contain information
25reasonably required by the Department of Revenue to enable it
26to verify and calculate the total tax benefits for taxes

 

 

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1imposed by the State, and shall be broken down by Enterprise
2Zone. Reports are due no later than May 31 of each year and
3shall cover the previous calendar year. The first report will
4be for the 2013 calendar year and will be due no later than May
531, 2014. Failure to report data may result in revocation of
6the Enterprise Zone Building Materials Exemption Certificate
7or High Impact Business Building Materials Exemption
8Certificate issued to the contractor or other entity.
9    The Department of Revenue is authorized to adopt rules
10governing revocation determinations, including the length of
11revocation. Factors to be considered in revocations shall
12include, but are not limited to, prior compliance with the
13reporting requirements, cooperation in discontinuing and
14correcting violations, and whether the certificate was used
15unlawfully during the preceding year.
16    (b) Each person required to file a return under the Gas
17Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
18Tax Act, or the Telecommunications Excise Tax Act shall file,
19on or before May 31 of each year, a report with the Department
20of Revenue, in the manner and form required by the Department
21of Revenue, containing information reasonably required by the
22Department of Revenue to enable the Department of Revenue to
23calculate the amount of the deduction for taxes imposed by the
24State that is taken under each Act, respectively, due to the
25location of a business in an Enterprise Zone or its
26designation as a High Impact Business. The report shall be

 

 

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1itemized by business and the business location address.
2    (c) Employers shall report their job creation, retention,
3and capital investment numbers within the zone annually to the
4Department of Revenue no later than May 31 of each calendar
5year. High Impact Businesses shall report their job creation,
6retention, and capital investment numbers to the Department of
7Revenue no later than May 31 of each year.
8    (d) The Department of Revenue will aggregate and collect
9the tax, job, and capital investment data by Enterprise Zone
10and High Impact Business and report this information,
11formatted to exclude company-specific proprietary information,
12to the Department and the Board by August 1, 2013, and by
13August 1 of every calendar year thereafter. The Department
14will include this information in their required reports under
15Section 6 of this Act. The Board shall consider this
16information during the reviews required under subsection (d-5)
17of Section 5.4 of this Act and subsection (c) of Section 5.3 of
18this Act.
19    (e) The Department of Revenue, in its discretion, may
20require that the reports filed under this Section be submitted
21electronically.
22    (f) The Department of Revenue shall have the authority to
23adopt rules as are reasonable and necessary to implement the
24provisions of this Section.
25(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
 

 

 

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1    (20 ILCS 655/12-9)  (from Ch. 67 1/2, par. 626)
2    Sec. 12-9. Report. On January 1 of each year, the
3Department shall report on its operation of the Fund for the
4preceding fiscal year to the Governor and the General
5Assembly. For any fiscal year in which no operations are
6conducted by the Department because no funds were appropriated
7to the Fund, the report outlined by this Section is not
8required.
9(Source: P.A. 84-165.)
 
10    (20 ILCS 655/13)
11    Sec. 13. Enterprise Zone construction jobs credit.
12    (a) Beginning on January 1, 2021, a business entity in a
13certified Enterprise Zone that makes a capital investment of
14at least $10,000,000 in an Enterprise Zone construction jobs
15project may receive an Enterprise Zone construction jobs
16credit against the tax imposed under subsections (a) and (b)
17of Section 201 of the Illinois Income Tax Act in an amount
18equal to 50% of the amount of the incremental income tax
19attributable to Enterprise Zone construction jobs credit
20employees employed in the course of completing an Enterprise
21Zone construction jobs project. However, the Enterprise Zone
22construction jobs credit may equal 75% of the amount of the
23incremental income tax attributable to Enterprise Zone
24construction jobs credit employees if the project is located
25in an underserved area.

 

 

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1    (b) A business entity seeking a credit under this Section
2must submit an application to the Department and must receive
3approval from the designating municipality or county and the
4Department for the Enterprise Zone construction jobs credit
5project. The application must describe the nature and benefit
6of the project to the certified Enterprise Zone and its
7potential contributors. The total aggregate amount of credits
8awarded under the Blue Collar Jobs Act (Article 20 of Public
9Act 101-9 this amendatory Act of the 101st General Assembly)
10shall not exceed $20,000,000 in any State fiscal year.
11    Within 45 days after receipt of an application, the
12Department shall give notice to the applicant as to whether
13the application has been approved or disapproved. If the
14Department disapproves the application, it shall specify the
15reasons for this decision and allow 60 days for the applicant
16to amend and resubmit its application. The Department shall
17provide assistance upon request to applicants. Resubmitted
18applications shall receive the Department's approval or
19disapproval within 30 days after the application is
20resubmitted. Those resubmitted applications satisfying initial
21Department objectives shall be approved unless reasonable
22circumstances warrant disapproval.
23    On an annual basis, the designated zone organization shall
24furnish a statement to the Department on the programmatic and
25financial status of any approved project and an audited
26financial statement of the project.

 

 

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1    The Department shall certify to the Department of Revenue
2the identity of taxpayers who are eligible for the credits and
3the amount of credits that are claimed pursuant to
4subparagraph (8) of subsection (f) of Section 201 the Illinois
5Income Tax Act.
6    The Enterprise Zone construction jobs credit project must
7be undertaken by the business entity in the course of
8completing a project that complies with the criteria contained
9in Section 4 of this Act and is undertaken in a certified
10Enterprise Zone. The Department shall adopt any necessary
11rules for the implementation of this subsection (b).
12    (c) Any business entity that receives an Enterprise Zone
13construction jobs credit shall maintain a certified payroll
14pursuant to subsection (d) of this Section.
15    (d) Each contractor and subcontractor who is engaged in
16and is executing an Enterprise Zone construction jobs credit
17project for a business that is entitled to a credit pursuant to
18this Section shall:
19        (1) make and keep, for a period of 5 years from the
20    date of the last payment made on or after June 5, 2019 (the
21    effective date of Public Act 101-9) this amendatory Act of
22    the 101st General Assembly on a contract or subcontract
23    for an Enterprise Zone construction jobs credit project,
24    records for all laborers and other workers employed by
25    them on the project; the records shall include:
26            (A) the worker's name;

 

 

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1            (B) the worker's address;
2            (C) the worker's telephone number, if available;
3            (D) the worker's social security number;
4            (E) the worker's classification or
5        classifications;
6            (F) the worker's gross and net wages paid in each
7        pay period;
8            (G) the worker's number of hours worked each day;
9            (H) the worker's starting and ending times of work
10        each day;
11            (I) the worker's hourly wage rate; and
12            (J) the worker's hourly overtime wage rate;
13        (2) no later than the 15th day of each calendar month,
14    provide a certified payroll for the immediately preceding
15    month to the taxpayer in charge of the project; within 5
16    business days after receiving the certified payroll, the
17    taxpayer shall file the certified payroll with the
18    Department of Labor and the Department of Commerce and
19    Economic Opportunity; a certified payroll must be filed
20    for only those calendar months during which construction
21    on an Enterprise Zone construction jobs project has
22    occurred; the certified payroll shall consist of a
23    complete copy of the records identified in paragraph (1)
24    of this subsection (d), but may exclude the starting and
25    ending times of work each day; the certified payroll shall
26    be accompanied by a statement signed by the contractor or

 

 

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1    subcontractor or an officer, employee, or agent of the
2    contractor or subcontractor which avers that:
3            (A) he or she has examined the certified payroll
4        records required to be submitted by the Act and such
5        records are true and accurate; and
6            (B) the contractor or subcontractor is aware that
7        filing a certified payroll that he or she knows to be
8        false is a Class A misdemeanor.
9    A general contractor is not prohibited from relying on a
10certified payroll of a lower-tier subcontractor, provided the
11general contractor does not knowingly rely upon a
12subcontractor's false certification.
13    Any contractor or subcontractor subject to this
14subsection, and any officer, employee, or agent of such
15contractor or subcontractor whose duty as an officer,
16employee, or agent it is to file a certified payroll under this
17subsection, who willfully fails to file such a certified
18payroll on or before the date such certified payroll is
19required by this paragraph to be filed and any person who
20willfully files a false certified payroll that is false as to
21any material fact is in violation of this Act and guilty of a
22Class A misdemeanor.
23    The taxpayer in charge of the project shall keep the
24records submitted in accordance with this subsection on or
25after June 5, 2019 (the effective date of Public Act 101-9)
26this amendatory Act of the 101st General Assembly for a period

 

 

SB0664- 50 -LRB102 17106 RJF 22535 b

1of 5 years from the date of the last payment for work on a
2contract or subcontract for the project.
3    The records submitted in accordance with this subsection
4shall be considered public records, except an employee's
5address, telephone number, and social security number, and
6made available in accordance with the Freedom of Information
7Act. The Department of Labor shall accept any reasonable
8submissions by the contractor that meet the requirements of
9this subsection and shall share the information with the
10Department in order to comply with the awarding of Enterprise
11Zone construction jobs credits. A contractor, subcontractor,
12or public body may retain records required under this Section
13in paper or electronic format.
14    Upon 7 business days' notice, the contractor and each
15subcontractor shall make available for inspection and copying
16at a location within this State during reasonable hours, the
17records identified in paragraph (1) of this subsection to the
18taxpayer in charge of the project, its officers and agents,
19the Director of Labor and his or her deputies and agents, and
20to federal, State, or local law enforcement agencies and
21prosecutors.
22    (e) As used in this Section:
23    "Enterprise Zone construction jobs credit" means an amount
24equal to 50% (or 75% if the project is located in an
25underserved area) of the incremental income tax attributable
26to Enterprise Zone construction jobs credit employees.

 

 

SB0664- 51 -LRB102 17106 RJF 22535 b

1    "Enterprise Zone construction jobs credit employee" means
2a laborer or worker who is employed by an Illinois contractor
3or subcontractor in the actual construction work on the site
4of an Enterprise Zone construction jobs credit project.
5    "Enterprise Zone construction jobs credit project" means
6building a structure or building or making improvements of any
7kind to real property commissioned and paid for by a business
8that has applied and been approved for an Enterprise Zone
9construction jobs credit pursuant to this Section. "Enterprise
10Zone construction jobs credit project" does not include the
11routine operation, routine repair, or routine maintenance of
12existing structures, buildings, or real property.
13    "Incremental income tax" means the total amount withheld
14during the taxable year from the compensation of Enterprise
15Zone construction jobs credit employees.
16    "Underserved area" means a geographic area that meets one
17or more of the following conditions:
18        (1) the area has a poverty rate of at least 20%
19    according to the latest American Community Survey federal
20    decennial census;
21        (2) 35% 75% or more of the families with children in
22    the area are living below 130% of the poverty line,
23    according to the latest American Community Survey children
24    in the area participate in the federal free lunch program
25    according to reported statistics from the State Board of
26    Education;

 

 

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1        (3) at least 20% of the households in the area receive
2    assistance under the Supplemental Nutrition Assistance
3    Program (SNAP); or
4        (4) the area has an average unemployment rate, as
5    determined by the Illinois Department of Employment
6    Security, that is more than 120% of the national
7    unemployment average, as determined by the U.S. Department
8    of Labor, for a period of at least 2 consecutive calendar
9    years preceding the date of the application.
10(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)