Illinois General Assembly - Full Text of SB1983
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Full Text of SB1983  102nd General Assembly


Sen. Scott M. Bennett

Filed: 4/20/2021





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2    AMENDMENT NO. ______. Amend Senate Bill 1983 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Corporate Accountability for Tax
5Expenditures Act is amended by changing Section 25 as follows:
6    (20 ILCS 715/25)
7    Sec. 25. Recapture.
8    (a) All development assistance agreements shall contain,
9at a minimum, the following recapture provisions:
10        (1) The recipient must (i) make the level of capital
11    investment in the economic development project specified
12    in the development assistance agreement; (ii) create or
13    retain, or both, the requisite number of jobs, paying not
14    less than specified wages for the created and retained
15    jobs, within and for the duration of the time period
16    specified in the legislation authorizing, or the



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1    administrative rules implementing, the development
2    assistance programs and the development assistance
3    agreement.
4        (2) If the recipient fails to create or retain the
5    requisite number of jobs within and for the time period
6    specified, in the legislation authorizing, or the
7    administrative rules implementing, the development
8    assistance programs and the development assistance
9    agreement, the recipient shall be deemed to no longer
10    qualify for the State economic assistance and the
11    applicable recapture provisions shall take effect.
12        (3) If the recipient receives State economic
13    assistance in the form of a High Impact Business
14    designation pursuant to Section 5.5 of the Illinois
15    Enterprise Zone Act and the business receives the benefit
16    of the exemption authorized under Section 5l of the
17    Retailers' Occupation Tax Act (for the sale of building
18    materials incorporated into a High Impact Business
19    location) or the utility tax exemption authorized under
20    Section 9-222.1A of the Public Utilities Act and the
21    recipient fails to create or retain the requisite number
22    of jobs, as determined by the legislation authorizing the
23    development assistance programs or the administrative
24    rules implementing such legislation, or both, within the
25    requisite period of time, the recipient shall be required
26    to pay to the State the full amount of both the State tax



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1    exemption and the utility tax exemption that it received
2    as a result of the High Impact Business designation.
3        (4) If the recipient receives a grant or loan pursuant
4    to the Large Business Development Program, the Business
5    Development Public Infrastructure Program, or the
6    Industrial Training Program and the recipient fails to
7    create or retain the requisite number of jobs for the
8    requisite time period, as provided in the legislation
9    authorizing the development assistance programs or the
10    administrative rules implementing such legislation, or
11    both, or in the development assistance agreement, the
12    recipient shall be required to repay to the State a pro
13    rata amount of the grant; that amount shall reflect the
14    percentage of the deficiency between the requisite number
15    of jobs to be created or retained by the recipient and the
16    actual number of such jobs in existence as of the date the
17    Department determines the recipient is in breach of the
18    job creation or retention covenants contained in the
19    development assistance agreement. If the recipient of
20    development assistance under the Large Business
21    Development Program, the Business Development Public
22    Infrastructure Program, or the Industrial Training Program
23    ceases operations at the specific project site, during the
24    5-year period commencing on the date of assistance, the
25    recipient shall be required to repay the entire amount of
26    the grant or to accelerate repayment of the loan back to



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1    the State.
2        (5) Except as provided in paragraph (5.1), if If the
3    recipient receives a tax credit under the Economic
4    Development for a Growing Economy tax credit program, the
5    development assistance agreement must provide that (i) if
6    the number of new or retained employees falls below the
7    requisite number set forth in the development assistance
8    agreement, the allowance of the credit shall be
9    automatically suspended until the number of new and
10    retained employees equals or exceeds the requisite number
11    in the development assistance agreement; (ii) if the
12    recipient discontinues operations at the specific project
13    site during the 5-year period after the beginning of the
14    first tax year for which the Department issues a tax
15    credit certificate, the recipient shall forfeit all
16    credits taken by the recipient during such 5-year period;
17    and (iii) in the event of a revocation or suspension of the
18    credit, the Department shall contact the Director of
19    Revenue to initiate proceedings against the recipient to
20    recover wrongfully exempted Illinois State income taxes
21    and the recipient shall promptly repay to the Department
22    of Revenue any wrongfully exempted Illinois State income
23    taxes. The forfeited amount of credits shall be deemed
24    assessed on the date the Department contacts the
25    Department of Revenue and the recipient shall promptly
26    repay to the Department of Revenue any wrongfully exempted



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1    Illinois State income taxes.
2        (5.1) For taxable years that begin on or after January
3    1, 2020 and begin prior to January 1, 2022, credits
4    awarded under the Economic Development for a Growing
5    Economy tax credit program shall not be revoked or
6    suspended as a result of the recipient's failure to meet
7    the requirements for new or retained employees if that
8    failure is due to a direct and substantial hardship caused
9    by the COVID-19 pandemic and the Taxpayer maintains job
10    creation and retention at the level of 85% of the
11    Agreement requirements. For the Department to grant relief
12    under this paragraph (5.1), proof of a direct and
13    substantial hardship caused by the COVID-19 pandemic must
14    be submitted to the Department during the annual
15    certificate of verification issuance process.
16    (b) The Director may elect to waive enforcement of any
17contractual provision arising out of the development
18assistance agreement required by this Act based on a finding
19that the waiver is necessary to avert an imminent and
20demonstrable hardship to the recipient that may result in such
21recipient's insolvency or discharge of workers. If a waiver is
22granted, the recipient must agree to a contractual
23modification, including recapture provisions, to the
24development assistance agreement. The existence of any waiver
25granted pursuant to this subsection (b), the date of the
26granting of such waiver, and a brief summary of the reasons



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1supporting the granting of such waiver shall be disclosed
2consistent with the provisions of Section 25 of this Act.
3    (b-5) The Department shall post, on its website, (i) the
4identity of each recipient from whom amounts were recaptured
5under this Section on or after the effective date of this
6amendatory Act of the 97th General Assembly, (ii) the date of
7the recapture, (iii) a summary of the reasons supporting the
8recapture, and (iv) the amount recaptured from those
10    (c) Beginning June 1, 2004, the Department shall annually
11compile a report on the outcomes and effectiveness of
12recapture provisions by program, including but not limited to:
13(i) the total number of companies that receive development
14assistance as defined in this Act; (ii) the total number of
15recipients in violation of development agreements with the
16Department; (iii) the total number of completed recapture
17efforts; (iv) the total number of recapture efforts initiated;
18and (v) the number of waivers granted. This report shall be
19disclosed consistent with the provisions of Section 20 of this
21    (d) For the purposes of this Act, recapture provisions do
22not include the Illinois Department of Transportation Economic
23Development Program, any grants under the Industrial Training
24Program that are not given as an incentive to a recipient
25business organization, or any successor programs as described
26in the term "development assistance" in Section 5 of this Act.



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1(Source: P.A. 97-2, eff. 5-6-11; 97-721, eff. 6-29-12; 98-109,
2eff. 7-25-13; 98-463, eff. 8-16-13.)
3    Section 10. The Economic Development for a Growing Economy
4Tax Credit Act is amended by changing Section 5-55 as follows:
5    (35 ILCS 10/5-55)
6    Sec. 5-55. Certificate of verification; submission to the
7Department of Revenue. A Taxpayer claiming a Credit under this
8Act shall submit to the Department of Revenue a copy of the
9Director's certificate of verification under this Act for the
10taxable year. However, failure to submit a copy of the
11certificate with the Taxpayer's tax return shall not
12invalidate a claim for a Credit.
13    For a Taxpayer to be eligible for a certificate of
14verification, the Taxpayer shall provide proof as required by
15the Department prior to the end of each calendar year,
16including, but not limited to, attestation by the Taxpayer
18        (1) The project has substantially achieved the level
19    of new full-time jobs specified in its Agreement.
20        (2) The project has substantially achieved the level
21    of annual payroll in Illinois specified in its Agreement.
22        (3) The project has substantially achieved the level
23    of capital investment in Illinois specified in its
24    Agreement.



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1        (4) For taxable years that begin on or after January
2    1, 2020 and begin prior to January 1, 2022, the Department
3    shall not find a Taxpayer out of compliance with an
4    Agreement on the basis of a failure to maintain the job
5    creation or retention requirements of an Agreement so long
6    as the level of job creation or retention is maintained at
7    85% of the Agreement requirements during the modification
8    period and the Taxpayer demonstrates to the Department, to
9    the Department's satisfaction, that the failure to
10    maintain the contractually-required job creation and
11    retention levels is due to a direct and substantial
12    hardship caused the COVID-19 pandemic. The Department
13    shall require proof of a direct and substantial hardship
14    caused by the COVID-19 pandemic; that determination shall
15    be left to the sole and absolute discretion of the
16    Department.
17(Source: P.A. 91-476, eff. 8-11-99.)
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".