Public Act 102-0605
 
HB3174 EnrolledLRB102 14914 HLH 20269 b


  
    AN ACT concerning State government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Illinois Enterprise Zone Act is amended  by 
changing Section 5.5 as follows:
 



    (20 ILCS 655/5.5)
  (from Ch. 67 1/2, par. 609.1)



    Sec. 5.5. High Impact Business. 

    (a) In order to respond to unique opportunities to assist 
in the
encouragement, development, growth, and expansion of 
the private sector through
large scale investment and 
development projects, the Department is authorized
to receive 
and approve applications for the designation of "High Impact

Businesses" in Illinois subject to the following conditions:

        (1) such applications may be submitted at any time 
    during the year;

        (2) such business is not located, at the time of 
    designation, in
an enterprise zone designated pursuant to 
    this Act;

        (3) the business intends to do one or more of the 
    following:

            (A) the business intends to make a minimum 
        investment of
$12,000,000 which will be placed in 
        service in qualified property and
intends to create 
        500 full-time equivalent jobs at a designated location

        in Illinois or intends to make a minimum investment of 
        $30,000,000 which
will be placed in service in 
        qualified property and intends to retain 1,500

        full-time retained jobs at a designated location in 
        Illinois.
The business must certify in writing that 
        the investments would not be
placed in service in 
        qualified property and the job creation or job

        retention would not occur without the tax credits and 
        exemptions set forth
in subsection (b) of this 
        Section. The terms "placed in service" and
"qualified 
        property" have the same meanings as described in 
        subsection (h)
of Section 201 of the Illinois Income 
        Tax Act; or

            (B) the business intends to establish a new 
        electric generating
facility at a designated location 
        in Illinois.  "New electric generating
facility", for 
        purposes of this Section, means a newly-constructed

        electric
generation plant
or a newly-constructed 
        generation capacity expansion at an existing electric

        generation
plant, including the transmission lines and 
        associated
equipment that transfers electricity from 
        points of supply to points of
delivery, and for which 
        such new foundation construction commenced not sooner

        than July 1,
2001.  Such facility shall be designed to 
        provide baseload electric
generation and shall operate 
        on a continuous basis throughout the year;
and (i) 
        shall have an aggregate rated generating capacity of 
        at least 1,000
megawatts for all new units at one site 
        if it uses natural gas as its primary
fuel and 
        foundation construction of the facility is commenced 
        on
or before December 31, 2004, or shall have an 
        aggregate rated generating
capacity of at least 400 
        megawatts for all new units at one site if it uses
coal 
        or gases derived from coal
as its primary fuel and

        shall support the creation of at least 150 new 
        Illinois coal mining jobs, or
(ii) shall be funded 
        through a federal Department of Energy grant before 
        December 31, 2010 and shall support the creation of 
        Illinois
coal-mining
jobs, or (iii) shall use coal 
        gasification or integrated gasification-combined cycle 
        units
that generate
electricity or chemicals, or both, 
        and shall support the creation of Illinois
coal-mining

        jobs.
The
business must certify in writing that the 
        investments necessary to establish
a new electric 
        generating facility would not be placed in service and 
        the
job creation in the case of a coal-fueled plant

        would not occur without the tax credits and exemptions 
        set forth in
subsection (b-5) of this Section.  The 
        term "placed in service" has
the same meaning as 
        described in subsection
(h) of Section 201 of the 
        Illinois Income Tax Act; or

            (B-5) the business intends to establish a new 
        gasification
facility at a designated location in 
        Illinois.  As used in this Section, "new gasification 
        facility" means a newly constructed coal gasification 
        facility that generates chemical feedstocks or 
        transportation fuels derived from coal (which may 
        include, but are not limited to, methane, methanol, 
        and nitrogen fertilizer), that supports the creation 
        or retention of Illinois coal-mining jobs, and that 
        qualifies for financial assistance from the Department 
        before December 31, 2010. A new gasification facility 
        does not include a pilot project located within 
        Jefferson County or within a county adjacent to 
        Jefferson County for synthetic natural gas from coal; 
        or
            (C) the business intends to establish
production 
        operations at a new coal mine, re-establish production 
        operations at
a closed coal mine, or expand production 
        at an existing coal mine
at a designated location in 
        Illinois not sooner than July 1, 2001;
provided that 
        the
production operations result in the creation of 
        150 new Illinois coal mining
jobs as described in 
        subdivision (a)(3)(B) of this Section, and further

        provided that the coal extracted from such mine is 
        utilized as the predominant
source for a new electric 
        generating facility.
The business must certify in 
        writing that the
investments necessary to establish a 
        new, expanded, or reopened coal mine would
not
be 
        placed in service and the job creation would not
occur 
        without the tax credits and exemptions set forth in 
        subsection (b-5) of
this Section.  The term "placed in 
        service" has
the same meaning as described in 
        subsection (h) of Section 201 of the
Illinois Income 
        Tax Act; or

            (D) the business intends to construct new 
        transmission facilities or
upgrade existing 
        transmission facilities at designated locations in 
        Illinois,
for which construction commenced not sooner 
        than July 1, 2001.  For the
purposes of this Section, 
        "transmission facilities" means transmission lines

        with a voltage rating of 115 kilovolts or above, 
        including associated
equipment, that transfer 
        electricity from points of supply to points of

        delivery and that transmit a majority of the 
        electricity generated by a new
electric generating 
        facility designated as a High Impact Business in 
        accordance
with this Section.  The business must 
        certify in writing that the investments
necessary to 
        construct new transmission facilities or upgrade 
        existing
transmission facilities would not be placed 
        in service
without the tax credits and exemptions set 
        forth in subsection (b-5) of this
Section.  The term 
        "placed in service" has the
same meaning as described 
        in subsection (h) of Section 201 of the Illinois

        Income Tax Act; or

            (E)  the business intends to establish a new wind 
        power facility at a designated location in Illinois.  
        For purposes of this Section, "new wind power 
        facility" means a newly constructed electric 
        generation facility, or a newly constructed expansion 
        of an existing electric generation facility, or the 
        replacement of an existing electric generation 
        facility, including the demolition and removal of an 
        electric generation facility irrespective of whether 
        it will be replaced, placed in service or replaced on 
        or after July 1, 2009, that generates electricity 
        using wind energy devices, and such facility shall be 
        deemed to include any permanent structures associated 
        with the electric generation facility and all 
        associated transmission lines, substations, and other 
        equipment related to the generation of electricity 
        from wind energy devices.  For purposes of this 
        Section, "wind energy device" means any device, with a 
        nameplate capacity of at least 0.5 megawatts, that is 
        used in the process of converting kinetic energy from 
        the wind to generate electricity; or 
            (F)  the business commits to (i)  make a minimum 
        investment of $500,000,000, which will be placed in 
        service in a qualified property, (ii) create 125  
        full-time equivalent jobs at a designated location in 
        Illinois, (iii) establish a fertilizer plant at a 
        designated location in Illinois that complies with the 
        set-back standards as described in Table 1: Initial 
        Isolation and Protective Action Distances  in the 2012 
        Emergency Response Guidebook published by the United 
        States Department of Transportation, (iv) pay a 
        prevailing wage for employees at that location who are 
        engaged in construction activities, and (v) secure an 
        appropriate level of general liability insurance to 
        protect against catastrophic failure of the fertilizer 
        plant or any of its constituent systems; in addition, 
        the business must agree to enter into a construction 
        project labor agreement including provisions 
        establishing wages, benefits, and other compensation 
        for employees performing work under the project labor 
        agreement at that location;  for the purposes of this 
        Section, "fertilizer plant" means a newly constructed 
        or upgraded plant utilizing gas used in the production 
        of anhydrous ammonia and downstream nitrogen 
        fertilizer products for resale; for the purposes of 
        this Section, "prevailing wage" means the hourly cash 
        wages plus fringe benefits for training and

        apprenticeship programs approved by the U.S. 
        Department of Labor, Bureau of
Apprenticeship and 
        Training, health and welfare, insurance, vacations and

        pensions paid generally, in the
locality in which the 
        work is being performed, to employees engaged in
work 
        of a similar character on public works; this paragraph 
        (F) applies only to businesses that submit an 
        application to the Department within 60 days after 
        July 25, 2013 (the effective date of Public Act 
        98-109) this amendatory Act of the 98th General 
        Assembly;  and 
        (4) no later than 90 days after an application is 
    submitted, the
Department shall notify the applicant of 
    the Department's determination of
the qualification of the 
    proposed High Impact Business under this Section.

    (b) Businesses designated as High Impact Businesses 
pursuant to
subdivision (a)(3)(A) of this Section shall 
qualify for the credits and
exemptions described in the

following Acts: Section 9-222 and Section 9-222.1A of the 
Public Utilities
Act,
subsection (h)
of Section 201 of the 
Illinois Income Tax Act,
and Section 1d of
the
Retailers' 
Occupation Tax Act; provided that these credits and
exemptions

described in these Acts shall not be authorized until the 
minimum
investments set forth in subdivision (a)(3)(A) of this

Section have been placed in
service in qualified properties 
and, in the case of the exemptions
described in the Public 
Utilities Act and Section 1d of the Retailers'
Occupation Tax 
Act, the minimum full-time equivalent jobs or full-time 
retained jobs set
forth in subdivision (a)(3)(A) of this 
Section have been
created or retained.
Businesses designated 
as High Impact Businesses under
this Section shall also

qualify for the exemption described in Section 5l of the 
Retailers' Occupation
Tax Act. The credit provided in 
subsection (h) of Section 201 of the Illinois
Income Tax Act 
shall be applicable to investments in qualified property as 
set
forth in subdivision (a)(3)(A) of this Section.

    (b-5) Businesses designated as High Impact Businesses 
pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), 
and (a)(3)(D) of this Section shall qualify
for the credits 
and exemptions described in the following Acts:  Section 51 of

the Retailers' Occupation Tax Act, Section 9-222 and Section 
9-222.1A of the
Public Utilities Act, and subsection (h) of 
Section 201 of the Illinois Income
Tax Act; however, the 
credits and exemptions authorized under Section 9-222 and

Section 9-222.1A of the Public Utilities Act, and subsection 
(h) of Section 201
of the Illinois Income Tax Act shall not be 
authorized until the new electric
generating facility, the new 
gasification facility, the new transmission facility, or the 
new, expanded, or
reopened coal mine is operational,
except 
that a new electric generating facility whose primary fuel 
source is
natural gas is eligible only for the exemption under 
Section 5l of the
Retailers' Occupation Tax Act.

    (b-6) Businesses designated as High Impact Businesses 
pursuant to subdivision (a)(3)(E) of this Section shall 
qualify for the exemptions described in Section 5l of the 
Retailers' Occupation Tax Act; any business so designated as a 
High Impact Business being, for purposes of this Section, a 
"Wind Energy Business". 
    (b-7) Beginning on January 1, 2021, businesses designated 
as High Impact Businesses by the Department shall qualify for 
the High Impact Business construction jobs credit under 
subsection (h-5) of Section 201 of the Illinois Income Tax Act 
if the business meets the criteria set forth in subsection (i) 
of this Section. The total aggregate amount of credits awarded 
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9 
this amendatory Act of the 101st General Assembly) shall not 
exceed $20,000,000 in any State fiscal year. 
    (c) High Impact Businesses located in federally designated 
foreign trade
zones or sub-zones are also eligible for 
additional credits, exemptions and
deductions as described in 
the following Acts: Section 9-221 and Section
9-222.1 of the 
Public
Utilities Act; and subsection (g) of Section 201, and 
Section 203
of the Illinois Income Tax Act.

    (d) Except for businesses contemplated under subdivision 
(a)(3)(E) of this Section, existing Illinois businesses which 
apply for designation as a
High Impact Business must provide 
the Department with the prospective plan
for which 1,500 
full-time retained jobs would be eliminated in the event that 
the
business is not designated.

    (e) Except for new wind power facilities contemplated 
under subdivision (a)(3)(E) of this Section, new proposed 
facilities which apply for designation as High Impact
Business 
must provide the Department with proof of alternative 
non-Illinois
sites which would receive the proposed investment 
and job creation in the
event that the business is not 
designated as a High Impact Business.

    (f) Except for businesses contemplated under subdivision 
(a)(3)(E) of this Section, in the event that a business is 
designated a High Impact Business
and it is later determined 
after reasonable notice and an opportunity for a
hearing as 
provided under the Illinois Administrative Procedure Act, that

the business would have placed in service in qualified 
property the
investments and created or retained the requisite 
number of jobs without
the benefits of the High Impact 
Business designation, the Department shall
be required to 
immediately revoke the designation and notify the Director
of 
the Department of Revenue who shall begin proceedings to 
recover all
wrongfully exempted State taxes with interest.  The 
business shall also be
ineligible for all State funded 
Department programs for a period of 10 years.

    (g) The Department shall revoke a High Impact Business 
designation if
the participating business fails to comply with 
the terms and conditions of
the designation. However, the 
penalties for new wind power facilities or Wind Energy 
Businesses for failure to comply with any of the terms or 
conditions of the Illinois Prevailing Wage Act shall be only 
those penalties identified in the Illinois Prevailing Wage 
Act, and the Department shall not revoke a High Impact 
Business designation as a result of the failure to comply with 
any of the terms or conditions of the Illinois Prevailing Wage 
Act in relation to a new wind power facility or a Wind Energy 
Business. 

    (h) Prior to designating a business, the Department shall 
provide the
members of the General Assembly and Commission on 
Government Forecasting and Accountability
with a report 
setting forth the terms and conditions of the designation and

guarantees that have been received by the Department in 
relation to the
proposed business being designated.

    (i) High Impact Business construction jobs credit. 
Beginning on January 1, 2021, a High Impact Business may 
receive a tax credit against the tax imposed under subsections 
(a) and (b) of Section 201 of the Illinois Income Tax Act in an 
amount equal to 50% of the amount of the incremental income tax 
attributable to High Impact Business construction jobs credit 
employees employed in the course of completing a High Impact 
Business construction jobs project. However, the High Impact 
Business construction jobs credit may equal 75% of the amount 
of the incremental income tax attributable to High Impact 
Business construction jobs credit employees if the High Impact 
Business construction jobs credit project is located in an 
underserved area. 
    The Department shall certify to the Department of Revenue: 
(1) the identity of taxpayers that are eligible for the High 
Impact Business construction jobs credit; and (2) the amount 
of High Impact Business construction jobs credits that are 
claimed pursuant to subsection (h-5) of Section 201 of the 
Illinois Income Tax Act in each taxable year.  Any business 
entity that receives a High Impact Business construction jobs 
credit shall maintain a certified payroll pursuant to 
subsection (j) of this Section. 
    As used in this subsection (i):
    "High Impact Business construction jobs credit" means an 
amount equal to 50% (or 75% if the High Impact Business 
construction project is located in an underserved area) of the 
incremental income tax attributable to High Impact Business 
construction job employees. The total aggregate amount of 
credits awarded under the Blue Collar Jobs Act (Article 20 of 
Public Act 101-9 this amendatory Act of the 101st General 
Assembly) shall not exceed $20,000,000 in any State fiscal 
year
    "High Impact Business construction job employee" means a 
laborer or worker who is employed by an Illinois contractor or 
subcontractor in the actual construction work on the site of a 
High Impact Business construction job project.
    "High Impact Business construction jobs project" means 
building a structure or building or making improvements of any 
kind to real property, undertaken and commissioned by a 
business that was designated as a High Impact Business by the 
Department. The term "High  Impact Business construction jobs 
project" does not include the routine operation, routine 
repair, or routine maintenance of existing structures, 
buildings, or real property.
    "Incremental income tax" means the total amount withheld 
during the taxable year from the compensation of High Impact 
Business construction job employees.
    "Underserved area" means a geographic area that meets one 
or more of the following conditions:
        (1) the area has a poverty rate of at least 20% 
    according to the latest federal decennial census; 
        (2) 75% or more of the children in the area 
    participate in the federal free lunch program according to 
    reported statistics from the State Board of Education; 
        (3) at least 20% of the households in the area receive 
    assistance under the Supplemental Nutrition Assistance 
    Program (SNAP); or 
        (4) the area has an average unemployment rate, as 
    determined by the Illinois Department of Employment 
    Security, that is more than 120% of the national 
    unemployment average, as determined by the U.S. Department 
    of Labor, for a period of at least 2 consecutive calendar 
    years preceding the date of the application. 
    (j) Each contractor and subcontractor who is engaged in 
and executing a High Impact Business Construction jobs 
project, as defined under subsection (i) of this Section, for 
a business that is entitled to a credit pursuant to subsection 
(i) of this Section shall: 
        (1) make and keep, for a period of 5 years from the 
    date of the last payment made on or after June 5, 2019 (the 
    effective date of Public Act 101-9) this amendatory Act of 
    the 101st General Assembly on a contract or subcontract 
    for a High Impact Business Construction Jobs Project, 
    records for all laborers and other workers employed by the 
    contractor or subcontractor on the project; the records 
    shall include: 
            (A) the worker's name; 
            (B) the worker's address; 
            (C) the worker's telephone number, if available; 
            (D) the worker's social security number; 
            (E) the worker's classification or 
        classifications; 
            (F) the worker's gross and net wages paid in each 
        pay period; 
            (G) the worker's number of hours worked each day; 
            (H) the worker's starting and ending times of work 
        each day; 
            (I) the worker's hourly wage rate; and 
            (J) the worker's hourly overtime wage rate; 
        (2) no later than the 15th day of each calendar month, 
    provide a certified payroll for the immediately preceding 
    month to the taxpayer in charge of the High Impact 
    Business construction jobs project; within 5 business days 
    after receiving the certified payroll, the taxpayer shall 
    file the certified payroll with the Department of Labor 
    and the Department of Commerce and Economic Opportunity; a 
    certified payroll must be filed for only those calendar 
    months during which construction on a High Impact Business 
    construction jobs project has occurred; the certified 
    payroll shall consist of a complete copy of the records 
    identified in paragraph (1) of this subsection (j), but 
    may exclude the starting and ending times of work each 
    day; the certified payroll shall be accompanied by a 
    statement signed by the contractor or subcontractor or an 
    officer, employee, or agent of the contractor or 
    subcontractor which avers that: 
            (A) he or she has examined the certified payroll 
        records required to be submitted by the Act and such 
        records are true and accurate; and 
            (B) the contractor or subcontractor is aware that 
        filing a certified payroll that he or she knows to be 
        false is a Class A misdemeanor. 
    A general contractor is not prohibited from relying on a 
certified payroll of a lower-tier subcontractor, provided the 
general contractor does not knowingly rely upon a 
subcontractor's false certification. 
    Any contractor or subcontractor subject to this 
subsection, and any officer, employee, or agent of such 
contractor or subcontractor whose duty as an officer, 
employee, or agent it is to file a certified payroll under this 
subsection, who willfully fails to file such a certified 
payroll on or before the date such certified payroll is 
required by this paragraph to be filed and any person who 
willfully files a false certified payroll that is false as to 
any material fact is in violation of this Act and guilty of a 
Class A misdemeanor. 
    The taxpayer in charge of the project shall keep the 
records submitted in accordance with this subsection on or 
after June 5, 2019 (the effective date of Public Act 101-9) 
this amendatory Act of the 101st General Assembly for a period 
of 5 years from the date of the last payment for work on a 
contract or subcontract for the High Impact Business 
construction jobs project. 
    The records submitted in accordance with this subsection 
shall be considered public records, except an employee's 
address, telephone number, and social security number, and 
made available in accordance with the Freedom of Information 
Act. The Department of Labor shall accept any reasonable 
submissions by the contractor that meet the requirements of 
this subsection (j) and shall share the information with the 
Department in order to comply with the awarding of a High 
Impact Business construction jobs credit. A contractor, 
subcontractor, or public body may retain records required 
under this Section in paper or electronic format. 
    (k) Upon 7 business days' notice, each contractor and 
subcontractor shall make available for inspection and copying 
at a location within this State during reasonable hours, the 
records identified in this subsection (j) to the taxpayer in 
charge of the High Impact Business construction jobs project, 
its officers and agents, the Director of the Department of 
Labor and his or her deputies and agents, and to federal, 
State, or local law enforcement agencies and prosecutors. 
(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.