Full Text of SB2203 94th General Assembly
SB2203 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2203
Introduced 1/11/2006, by Sen. Frank C. Watson - Dale A. Righter SYNOPSIS AS INTRODUCED: |
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Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that, if an applicant for a credit under the Act (i) is an Illinois-based company that is competing with an out-of-state company to supply parts or components to another Illinois manufacturer and (ii) signs an affidavit attesting that, without the credit, the applicant will likely lose the parts or components work to the out-of-state competitor, then the application need not demonstrate that the applicant has multi-state location options and need not identify a cost differential in the projected costs for the applicant's project compared to
the costs in the competing state. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2203 |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Economic Development for a Growing Economy | 5 |
| Tax Credit Act is amended by changing Section 5-25 as follows:
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| (35 ILCS 10/5-25)
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| Sec. 5-25. Review of Application.
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| (a) In addition to those duties granted under the Illinois | 9 |
| Economic
Development Board Act, the Illinois
Economic | 10 |
| Development Board shall form a Business Investment Committee | 11 |
| for the
purpose of making
recommendations for applications. At | 12 |
| the request of the Board, the Director of
Commerce and
Economic | 13 |
| Opportunity
Community
Affairs or his or her designee, the | 14 |
| Director of the
Governor's Office of Management and Budget
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| Bureau of the Budget or
his or her designee, the
Director of | 16 |
| Revenue or his or her designee, the Director of Employment
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| Security or his or her designee,
and an elected official of the | 18 |
| affected locality, such as the chair of the
county board or the | 19 |
| mayor, may
serve as members of the Committee to assist with its | 20 |
| analysis and
deliberations.
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| (b) At the Department's request, the Committee
shall
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| convene, make inquiries,
and conduct studies in the manner and | 23 |
| by the methods as it deems desirable,
review information with
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| respect to Applicants, and make recommendations for
projects to | 25 |
| benefit the State. In making its recommendation that
an | 26 |
| Applicant's application for Credit should or should not be | 27 |
| accepted, which
shall occur
within a reasonable time frame
as | 28 |
| determined by the nature of the application, the Committee | 29 |
| shall determine
that
all the following conditions
exist:
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| (1) The Applicant's project intends, as required by | 31 |
| subsection (b) of
Section 5-20 to make
the required | 32 |
| investment in the State and intends to hire the required
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| number of
New Employees in Illinois as a result of that | 2 |
| project.
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| (2) The Applicant's project is economically sound and | 4 |
| will benefit the
people of the State of
Illinois by | 5 |
| increasing opportunities for employment and strengthen the | 6 |
| economy
of Illinois.
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| (3) That, if not for the Credit, the project would not | 8 |
| occur in Illinois,
which may be demonstrated
by any means | 9 |
| including, but not limited to, evidence the Applicant has
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| multi-state
location options and
could reasonably and | 11 |
| efficiently locate outside of the State, or demonstration
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| that at least one other
state is being considered for the | 13 |
| project, or evidence the receipt of the
Credit is a major | 14 |
| factor in
the Applicant's decision and that without the | 15 |
| Credit,
the Applicant likely would not
create new jobs in | 16 |
| Illinois, or demonstration that receiving the Credit is
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| essential to the Applicant's
decision to create or retain | 18 |
| new jobs in the State. If the Applicant is an | 19 |
| Illinois-based company that is competing with an | 20 |
| out-of-state company to supply parts or components to | 21 |
| another Illinois manufacturer, then no multi-state
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| location option under this item (3) or cost differential | 23 |
| under item (4) is required if the Applicant signs an | 24 |
| affidavit attesting that, without the Credit, the | 25 |
| Applicant will likely lose the parts or components work to | 26 |
| the out-of-state competitor.
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| (4) A cost differential is identified, using best | 28 |
| available
data, in the projected costs for the Applicant's | 29 |
| project compared to
the costs in the competing state, | 30 |
| including the impact of the competing
state's incentive | 31 |
| programs. The competing state's incentive
programs shall | 32 |
| include state, local, private, and federal funds
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| available. If the Applicant is an Illinois-based company | 34 |
| that is competing with an out-of-state company to supply | 35 |
| parts or components to another Illinois manufacturer, then | 36 |
| no multi-state
location option under item (3) or cost |
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| differential under this item (4) is required if the | 2 |
| Applicant signs an affidavit attesting that, without the | 3 |
| Credit, the Applicant will likely lose the parts or | 4 |
| components work to the out-of-state competitor.
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| (5) The political subdivisions affected by the project | 6 |
| have
committed local incentives with respect to the | 7 |
| project, considering local
ability to assist.
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| (6) Awarding the Credit will result in an overall | 9 |
| positive fiscal
impact to the State, as certified by the | 10 |
| Committee using
the best
available data.
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| (7) The Credit is not prohibited by Section 5-35 of | 12 |
| this Act.
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| (Source: P.A. 91-476, eff. 8-11-99; revised 8-23-03.)
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| Section 99. Effective date. This Act takes effect upon | 15 |
| becoming law.
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