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90_HB1817
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Amends the Environmental Protection Act. Creates a new
Title of the Act relating to the Brownfields Rehabilitation
and Redevelopment Program. Provides that the Department of
Commerce and Community Affairs shall administer a program
that encourages private sector voluntary remediation of
environmentally-distressed and underutilized sites that
demonstrate the potential to contribute to the economic
growth if expanded, rehabilitated, or redeveloped. Provides
that the Department, in cooperation with the Environmental
Protection Agency, the Department of Agriculture, and the
Department of Natural Resources, shall prescribe rules for
the implementation of the program. Provides that the
provisions of the title are repealed 5 years after the
effective date of this amendatory Act. Amends the Illinois
Income Tax Act. Creates the Brownfields Remediation Tax
Credit. Provides that the credit is available to each
taxpayer that has (1) entered into a development agreement
with Department of Commerce and Community Affairs, has
received an allocation for the credit, and has received a
certificate of eligibility for the credit or (2) is a
transferee of the credit. Provides that the Department of
Commerce and Community Affairs shall determine the amount of
the credit. Provides that the credit shall be in an amount
equal to the lesser of (1) 100% of the remediation costs
expended for an approved Brownfields project or (2) 100% of
the projected present value of new State tax revenue
generated by an approved Brownfields project. Exempts this
credit from the sunset provisions. Creates the Small
Business Remediation Tax Credit for taxpayers that employ no
more than 50 employees and undertake the expansion,
rehabilitation, or redevelopment of a Brownfields site
project that generates measurable economic growth resulting
in either a revenue neutral benefit or a net fiscal benefit.
Provides that the Department of Revenue and the Department of
Commerce and Community Affairs shall adopt a tax credit
schedule. Provides that this credit is available for tax
years beginning on or after January 1, 1997. Sunsets this
credit after 5 years. Provides that the Brownfields
Remediation Tax Credit and the Small Business Remediation Tax
Credit may not be taken together. Makes other changes.
Effective immediately.
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1 AN ACT in relation to environmental protection, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 adding Sections 211 and 212 as follows:
7 (35 ILCS 5/211 new)
8 Sec. 211 Brownfields Remediation Tax Credit.
9 (a) Beginning with tax years ending on or after January
10 1, 1997, and subject to the requirements, restrictions, and
11 terms of the Brownfields Rehabilitation and Redevelopment
12 Program in Title XVIII of the Environmental Protection Act,
13 each taxpayer that (i) has entered into a development
14 agreement with the Department of Commerce and Community
15 Affairs, has received a Brownfields Remediation Tax Credit
16 allocation, and receives a certificate of eligibility, or
17 (ii) is the transferee of any such credit, is entitled to a
18 credit against the tax imposed by subsections (a) and (b) of
19 Section 201 of this Act.
20 (b) The amount of the credit shall be determined by the
21 Department of Commerce and Community Affairs upon review and
22 approval of a Brownfields Rehabilitation and Redevelopment
23 application and shall be provided in the development
24 agreement. If applicable, the Department of Commerce and
25 Community Affairs shall provide an annual tax credit
26 distribution schedule if the term of the development
27 agreement exceeds one year. The total Brownfields
28 Remediation Tax Credit allocation shall be an amount equal to
29 the lesser of (i) 100% of the remediation costs expended for
30 an approved Brownfields project or (ii) 100% of the projected
31 present value of new State tax revenues generated by an
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1 approved Brownfields project.
2 (c) If the amount of the tax credit exceeds the tax
3 liability for the year, the excess may be carried forward and
4 applied to the tax liability of any year within the term of
5 the development agreement; however, in no case may the credit
6 claimed under this Section in any taxable year exceed the new
7 State tax revenue generated by the measurable economic growth
8 for that year.
9 (d) The credit claimed under this Section may be sold,
10 transferred, or assigned in the year the Department of
11 Commerce and Community Affairs grants a Brownfields
12 Remediation Tax Credit allocation or any time thereafter
13 until the credit has been claimed, provided that the
14 transferee shall take the credits subject to the development
15 agreement.
16 (e) In no event shall a credit issued under this Section
17 reduce the taxpayer's liability under this Act to less than
18 zero.
19 (f) No credit may be claimed under this Section if the
20 taxpayer has claimed the Small Business Remediation Tax
21 Credit under Section 212 of this Act.
22 (g) This Section is exempt from the provisions of
23 Section 250 of this Act.
24 (35 ILCS 5/212 new)
25 Sec. 212. The Small Business Remediation Tax Credit.
26 For tax years beginning on or after January 1, 1997 and
27 ending on or before December 30, 2002, a taxpayer that
28 employs no more than 50 employees and undertakes the
29 expansion, rehabilitation, or redevelopment of a Brownfields
30 site project under Title XVIII of the Environmental
31 Protection Act that generates measurable economic growth
32 resulting in either a revenue neutral benefit or a net fiscal
33 benefit is entitled to a credit against the tax imposed by
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1 subsections (a) and (b) of Section 201 of this Act in an
2 amount not to exceed $25,000 per project. The Department, in
3 cooperation with the Department of Commerce and Community
4 Affairs, shall adopt a tax credit schedule as prescribed in
5 Section 59.3 of Title XVIII of the Environmental Protection
6 Act within 120 days of the effective date of this amendatory
7 Act of 1997 that shall provide the amount of credits
8 available for measurable economic growth. No credit may be
9 claimed under this Section if the taxpayer has claimed the
10 Brownfields Remediation Tax Credit under Section 211 of this
11 Act.
12 Section 10. The Environmental Protection Act is amended
13 by adding Title XVIII as follows:
14 (415 ILCS 5/Title XVIII heading new)
15 TITLE XVIII: BROWNFIELDS REHABILITATION
16 AND REDEVELOPMENT PROGRAM
17 (415 ILCS 5/59 new)
18 Sec. 59. Intent. It is the intent of this Title:
19 (1) To encourage private sector voluntary remediation of
20 environmentally-distressed and underutilized sites that
21 demonstrate a potential to generate measurable economic
22 growth in Illinois if expanded, rehabilitated, or
23 redeveloped.
24 (2) To provide the private sector with incentives to
25 undertake "Brownfields" projects that will have a net fiscal
26 benefit or at a minimum, a revenue neutral impact on State
27 tax revenue.
28 (3) To establish criteria upon which the State may award
29 incentives.
30 (415 ILCS 5/59.1 new)
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1 Sec. 59.1. Definitions. As used in this Title:
2 "Applicant" means any person as defined by this Act who
3 applies to proceed under this Title.
4 "Application" means an application submitted to the
5 Agency and the Department of Commerce and Community Affairs
6 for enrollment in the Brownfields Rehabilitation and
7 Redevelopment Program.
8 "Approved Brownfields Project" means a Brownfields site
9 that is the subject of an expansion, rehabilitation, or
10 redevelopment plan and that has been approved for incentives
11 under this Title.
12 "Brownfields Site" means any site that is subject to
13 environmental remediation or reclamation pursuant to a State
14 administered environmental remediation or reclamation
15 program, including but not limited to, programs administered
16 by the Agency, the Department of Agriculture, or the
17 Department of Natural Resources and that demonstrates a
18 potential for expansion, rehabilitation, or redevelopment.
19 Brownfields sites shall include, but not be limited to, sites
20 eligible for enrollment in the Site Investigation and
21 Remedial Activities Program as provided in Title XVII of this
22 Act administered by the Agency, facilities subject to
23 asbestos or lead abatement as provided in this Act,
24 facilities eligible for remediation pursuant to the
25 Agrichemical Facility Response Action Program as provided in
26 the Illinois Pesticide Act, surface coal mines subject to
27 environmental protection reclamation as provided in the
28 Surface Coal Mining Land Conservation and Reclamation Act,
29 and abandoned mined lands and related water reclamation as
30 provided in the Abandoned Mined Lands and Water Reclamation
31 Act.
32 "Certificate of Eligibility" means an annual certificate
33 issued by the Department of Commerce and Community Affairs at
34 the request of an applicant or transferee to claim the
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1 Brownfields Remediation Tax Credit granted in an approval
2 letter and development agreement.
3 "DCCA" means the Illinois Department of Commerce and
4 Community Affairs.
5 "Development Agreement" means an agreement entered into
6 between an applicant and DCCA providing types, amount, and
7 timing of incentives available for an approved Brownfields
8 project, and setting forth terms and conditions, including
9 benchmarks for achieving measurable economic growth.
10 "Measurable Economic Growth" includes, but is not limited
11 to, factors such as the number of jobs created, the number of
12 jobs retained if demonstrated such jobs would otherwise be
13 lost, the capital investment, capital improvements, the
14 number of construction related jobs, increased sales,
15 material purchases, other increases in service and
16 operational expenditures, and other factors established by
17 DCCA.
18 "Net Fiscal Benefit" means new State tax revenue
19 resulting from implementation of a development agreement in
20 excess of the cost of any incentives granted under this
21 Title.
22 "Remediation Costs" includes costs associated with
23 investigating the environmental condition of, remediating, or
24 performing corrective action on a Brownfields site in order
25 to obtain a "No Further Remediation Letter" or other similar
26 State authorization or approval indicating completed
27 investigation, remediation, or reclamation in satisfaction of
28 State requirements with respect to an approved Brownfields
29 project.
30 "Revenue Neutral Impact" means new State tax revenue
31 resulting from implementation of a development agreement
32 equal to the cost of any incentives granted under this Title.
33 (415 ILCS 5/59.2 new)
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1 Sec. 59.2 Brownfields Rehabilitation and Redevelopment
2 Program. The General Assembly hereby establishes the Illinois
3 Brownfields Rehabilitation and Redevelopment Program. The
4 Program shall be administered by DCCA as provided under this
5 Title.
6 (415 ILCS 5/59.3 new)
7 Sec. 59.3 Program incentives.
8 (a) The Brownfields Remediation Tax Credit. Any
9 applicant or transferee if the credit has been sold,
10 transferred, or assigned, claiming the Brownfields
11 Remediation Tax Credit available under Section 211 of the
12 Illinois Income Tax Act and granted in an approval letter and
13 development agreement under Section 59.5 of this Title, may
14 submit a request to DCCA to issue a certificate of
15 eligibility to claim the credit.
16 (1) The applicant or transferee shall provide, in
17 addition to any other information required by DCCA, the
18 amount of the credit requested and if applicable,
19 pursuant to the annual tax credit distribution schedule,
20 the amount of carry forward from previous tax years,
21 certification that the benchmarks for measurable economic
22 growth established in the development agreement have been
23 satisfied, proof of enrollment or participation in a
24 State-administered environmental remediation or
25 reclamation program qualifying the Brownfields site to
26 receive incentives under this Title, and an itemization
27 of the amount of remediation costs, if any, that were
28 incurred during the taxable year.
29 (2) Within 30 days after receipt of the request and
30 all required information, DCCA shall provide the
31 applicant with a certificate of eligibility to claim the
32 total Brownfields Remediation Tax Credit, if any, or, if
33 applicable, the annual tax credit allowance as set forth
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1 in the development agreement tax credit distribution
2 schedule, including any amount of credit subject to carry
3 forward. The Department of Revenue shall prescribe the
4 form for the certificate of eligibility, and DCCA shall
5 file with the Department of Revenue a copy of each
6 certificate of eligibility.
7 (3) An applicant or transferee that claims the
8 credit in this subsection based on a fraudulent
9 Brownfields Rehabilitation and Redevelopment Program
10 application or request for a certificate of eligibility
11 or any other fraudulent statement submitted to DCCA shall
12 be subject to prosecution under Section 1301 of the
13 Illinois Income Tax Act.
14 (b) The Small Business Remediation Tax Credit. For tax
15 years beginning on or after January 1, 1997 and ending on or
16 before December 30, 2002, an applicant that employs no more
17 than 50 employees and undertakes the expansion,
18 rehabilitation, or redevelopment of a Brownfields site that
19 generates measurable economic growth resulting in either a
20 revenue neutral benefit or a net fiscal benefit may claim the
21 Small Business Remediation Tax Credit.
22 (1) This credit shall not be available to an
23 applicant that claimed the credit provided in subsection
24 (a).
25 (2) An applicant that claims the credit provided in
26 this Section based on a fraudulent statement submitted to
27 DCCA shall be subject to prosecution under Section 1301
28 of the Illinois Income Tax Act.
29 (3) The Department of Revenue, in cooperation with
30 the DCCA, shall adopt a tax credit schedule as prescribed
31 in Section 59.3 of Title XVIII of the Environmental
32 Protection Act within 120 days of the effective date of
33 this amendatory Act of 1997 that shall provide the amount
34 of credits available for measurable economic growth.
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1 (c) Additional incentives. The Agency or other
2 administrative agency, including the Department of
3 Agriculture and Department of Natural Resources, may make
4 available any other resources deemed appropriate as a
5 financial incentive to remediate and expand, rehabilitate or
6 redevelop a Brownfields site.
7 (415 ILCS 5/59.4 new)
8 Sec. 59.4. Brownfields Rehabilitation and Redevelopment
9 Program application submittal. At any time prior to
10 commencement or during the performance of investigation,
11 remediation, or reclamation at a Brownfields Site, but no
12 later than December 31, 2002, an application may be submitted
13 to DCCA providing the following available information:
14 (1) Certification that a copy of the application has
15 been submitted to the State agency administering the
16 environmental remediation or reclamation program that would
17 qualify the Brownfields site to receive incentives under this
18 Title, or if the investigation, remediation, or reclamation
19 has not yet commenced, certification that a site is eligible
20 to participate or enroll in such program;
21 (2) Information relating to the actual or potential
22 impact of a regulated substance release on the site that is
23 the subject of the application;
24 (3) A summary of the investigation, remedial corrective
25 action, or reclamation plan for the Brownfields site;
26 (4) Approximate budgets for the investigation, remedial
27 corrective action, or reclamation plan;
28 (5) A timeline for investigation, remediation, or
29 reclamation completion and receipt of a "No Further
30 Remediation Letter" or other similar State authorization or
31 approval indicating completed investigation or remediation in
32 satisfaction of State requirements with respect to the
33 Brownfields Site;
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1 (6) A detailed explanation of the proposed expansion,
2 rehabilitation, or redevelopment plan;
3 (7) The factors indicating measurable economic growth;
4 (8) A timeline for achieving measurable economic growth;
5 and
6 (9) Incentives requested under this Title.
7 (415 ILCS 5/59.5 new)
8 Sec. 59.5. Application review and decision; tax credit
9 allocations; development agreement.
10 (a) Within 30 days after receiving a copy of the
11 Brownfields Rehabilitation and Redevelopment application, the
12 State agency administering the remediation or reclamation
13 program shall forward to DCCA a letter indicating agreement,
14 disagreement, or need for additional information with respect
15 to the planned environmental investigation, remediation, and
16 reclamation.
17 (b) Within 45 days after receipt of the application,
18 DCCA shall forward to the applicant a letter indicating
19 approval or disapproval of the application, or need for
20 additional information, and providing a basis for such
21 decision.
22 (c) If the application is approved, DCCA shall include
23 with the approval letter, a development agreement that shall
24 contain the following:
25 (1) A determination of the projected present value
26 of new State tax revenues generated by the measurable
27 economic growth of the approved Brownfields project;
28 (2) An allocation of the total amount of
29 Brownfields Remediation Tax Credits projected for the
30 approved Brownfields project;
31 (3) A determination of the net fiscal benefit or
32 revenue neutral impact that will be generated by the
33 approved Brownfields project;
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1 (4) Measurable economic growth benchmarks;
2 (5) A tax credit distribution schedule including
3 annual maximum tax credit allowances for each year during
4 the entire term of the development agreement;
5 (6) The term of the development agreement;
6 (7) Applicable conditions; and
7 (8) Any other information deemed appropriate by
8 DCCA, including but not limited to, an explanation of how
9 to claim the credits.
10 (415 ILCS 5/59.6 new)
11 Sec. 59.6. Failure to meet measurable economic growth
12 benchmarks.
13 (a) If an applicant determines that the benchmarks set
14 forth in the development agreement are not attainable, an
15 applicant may submit a request for modification of the
16 development agreement to DCCA.
17 (b) DCCA may audit the approved Brownfields project and
18 may cancel any credits granted in the development agreement
19 that have not been claimed when the approved Brownfields
20 project fails to meet measurable economic growth benchmarks.
21 The determination shall be made by DCCA, in its sole
22 discretion, based on the severity of the benchmark not
23 achieved, actions taken to meet the benchmark, the frequency
24 of any failure to meet the benchmark, and compliance with any
25 condition set forth in the development agreement. DCCA shall
26 also consider any changes in the general economic conditions
27 and any recommendation of the State agency administering the
28 remediation or reclamation program concerning severity,
29 scope, nature, frequency, and extent of any deviation from
30 the investigation, remediation, corrective action, or
31 reclamation plans.
32 (415 ILCS 5/59.7 new)
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1 Sec. 59.7. Regulations. DCCA shall, with the advice and
2 recommendation of the Agency, the Department of Agriculture,
3 and the Department of Natural Resources, issue regulations
4 within 120 days of the effective date of this amendatory Act
5 of 1997 as may be necessary to implement the provisions of
6 this Title, including but not limited to a list of
7 State-administered environmental remediation and reclamation
8 programs that would qualify a site to be considered a
9 Brownfields site under this Title, application forms, and a
10 schedule of remediation costs that will be considered
11 qualifying expenditures for the Brownfields Remediation Tax
12 Credit. The Agency, the Department of Agriculture, and the
13 Department of Natural Resources may adopt such administrative
14 regulations as necessary to implement the provisions of this
15 Title. The Department of Revenue shall prescribe the form for
16 the certificate of eligibility and promulgate a Small
17 Business Remediation Tax Credit Schedule within 120 days of
18 the effective date of this amendatory Act of 1997.
19 (415 ILCS 5/59.8 new)
20 Sec. 59.8. Severability. The provisions of this Title
21 are severable under Section 1.31 of the Statute on Statutes.
22 (415 ILCS 5/59.9 new)
23 Section 59.9. Repealer. The provisions of this Title are
24 repealed effective 5 years after the effective date of this
25 amendatory Act of 1997. This Section shall not impact
26 development agreements entered into prior to the date this
27 Title is repealed.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 35 ILCS 5/211 new
4 35 ILCS 5/212 new
5 415 ILCS 5/Title XVIII heading new
6 415 ILCS 5/59 new
7 415 ILCS 5/59.1 new
8 415 ILCS 5/59.2 new
9 415 ILCS 5/59.3 new
10 415 ILCS 5/59.4 new
11 415 ILCS 5/59.5 new
12 415 ILCS 5/59.6 new
13 415 ILCS 5/59.7 new
14 415 ILCS 5/59.8 new
15 415 ILCS 5/59.9 new