Senate Sponsors: WATSON-CLAYBORNE-LAUZEN-WELCH-MAHAR. House Sponsors: HOFFMAN-HOLBROOK-STEPHENS-MOORE Short description: ENVIRONMENTAL-REMEDIATION COST Synopsis of Bill as introduced: Amends the environmental remediation tax credit provisions in the Illinois Income Tax Act. Extends the credit to 2010 (now, expires December 31, 2001). Provides that the credit may be claimed for costs incurred during the 10-year period after approval rather than for just the year of approval. Changes how the limit on the credit allowed is calculated. Provides that the credit may be carried forward for 15 (now 5) years. Makes changes with respect to selling the credit. Makes other changes. Amends the environmental remediation tax credit review provisions in the Environmental Protection Act. Removes the requirement that no application for review be submitted until a "No Further Remediation Letter" is issued. Provides that the Environmental Protection Agency may file a lien on remediation property receiving a tax credit if the recipient fails to meet the conditions of the issuance of the credit. Provides that the Director of DCCA may grant tax credits and exemptions under the Economic Development for a Growing Economy Tax Credit Act and the Illinois Enterprise Zone Act. Amends those Acts accordingly. Authorizes the Director of DCCA to issue a Distressed Communities and Industries Grant to any entity for the purpose of paying the allowable costs needed to cause an eligible remediation project to occur. Provides that the credit provisions are applicable to taxable years ending on or after December 31, 2001. Makes other changes. Amends the State Finance Act to create the Distressed Communities and Industries Grant Fund. Requires the affected Departments to propose rules. Effective immediately. SENATE AMENDMENT NO. 1. Deletes reference to: 20 ILCS 655/4.5 new 35 ILCS 10/5-20 415 ILCS 5/58.13a new Adds reference to: 415 ILCS 5/58.13 415 ILCS 100/5 from Ch. 111 1/2, par. 7205 Deletes everything after the enacting clause. Reinserts the provisions of the bill as introduced but makes the following changes. Provides that the environmental remediation tax credit is extended to 2006 rather than 2010. Provides that the Department of Commerce and Community Affairs (DCCA) may approve remediation costs for the tax credit prior to issuance of a "No Further Remediation Letter" only if the Remediation Applicant will remediate groundwater for more than one year (the actual credit still may not be claimed until the taxpayer receives a "No Further Remediation Letter"). Restores the carryforward of the credit to 5 years (changed to 10 years in the bill). Removes the Distressed Communities and Industries Grant Fund provisions. Replaces the changes in the introduced bill to the environmental remediation tax credit review provisions in the Environmental Protection Act. Provides that the Remediation Applicant shall first apply to DCCA for review of eligibility for the tax credit and that if DCCA determines the Remediation Applicant is eligible, the Applicant shall apply to the Environmental Protection Agency for review of remediation costs (now, applications directly to IEPA). Sets forth DCCA application review criteria. Provides for a fee of $1,000 to DCCA for the eligibility review. Creates the Distressed Communities and Industries Fund, consisting of the new fees paid to DCCA for review as well as appropriations and gifts to the Fund. Provides that the Fund shall be used by DCCA for the purposes of environmental remediation tax credit review. Further amends the Environmental Protection Act. Provides that no municipality shall receive more than 2 grants (now, one grant) under the Brownfields Redevelopment Grant Program. Amends the Response Action Contractor Indemnification Act. Provides that every State response action contract shall provide that 5% of each payment by the State under the contract shall be paid directly into the Response Contractors Indemnification Fund rather than to the contractor, unless there is more than $2,000,000 (now, $4,000,000) in the Fund at the beginning of the State fiscal year. Extends the annual $1,200,000 transfer from the Response Contractors Indemnification Fund to the Brownfields Redevelopment Fund to fiscal year 2005 (now, ends in fiscal year 2002). HOUSE AMENDMENT NO. 1. Deletes reference to: 30 ILCS 105/5.545 new 35 ILCS 5/201 415 ILCS 5/58.13 415 ILCS 5/58.14 415 ILCS 100/5 Adds reference to: 35 ILCS 5/213 new Deletes everything after the enacting clause. Amends the Illinois Income Tax Act. Adds a provision, containing a caption only, concerning the environmental remediation tax credit. HOUSE AMENDMENT NO. 2. Deletes reference to: 35 ILCS 5/213 new Adds reference to: 30 ILCS 105/5.545 new 415 ILCS 5/58.3 415 ILCS 5/58.13 415 ILCS 5/58.18 new 415 ILCS 100/5 from Ch. 111 1/2, par. 7205 Deletes everything after the enacting clause. Amends the Environmental Protection Act. Creates the Brownfields Site Restoration Program. Provides that the Environmental Protection Agency (the Agency), with the assistance of the Department of Commerce and Community Affairs (DCCA), must establish and administer a program for the payment of remediation costs for the investigation and remediation of abandoned or underutilized properties. Provides that prior to applying to the Agency for payment, a Remediation Applicant must first submit to DCCA an application for review of eligibility. Provides that if DCCA has determined that a Remediation Applicant is eligible, the Remediation Applicant may submit an application for payment to the Agency. Sets forth requirements for Applicants. Provides that the fees for reviews conducted by DCCA and the Agency are to be deposited into the Brownfields Site Restoration Program Fund for use by the Agency, subject to appropriation, for purposes of those provisions. Amends the State Finance Act to create the new Fund. Changes the name of the Brownfields Redevelopment Grant Program to the Municipal Brownfields Redevelopment Grant Program and provides that grants are limited to a maximum of $240,000 (now, $120,000). Amends the Response Action Contractor Indemnification Act. Provides that every State response action contract shall provide that 5% of each payment by the State under the contract shall be paid directly into the Response Contractors Indemnification Fund rather than to the contractor, unless there is more than $2,000,000 (now, $4,000,000) in the Fund at the beginning of the State fiscal year. Extends the annual $1,200,000 transfer from the Response Contractors Indemnification Fund to the Brownfields Redevelopment Fund to fiscal year 2005 (now, ends in fiscal year 2002). HOUSE AMENDMENT NO. 3. Provides that within 9 months (rather than 6 months) after receipt of the proposed rules from DCCA and the Environmental Pro- tection Agency, the Pollution Control Board shall adopt, on second notice, pursuant to certain provisions of this Act and the Illinois Administrative Procedures Act, rules that are consistent with these provisions. Last action on Bill: PUBLIC ACT.............................. 92-0486 Last action date: AUG-23-2001 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 3 SENATE - 1 END OF INQUIRY Full Text Bill Status