Public Act 095-0454
 
SB1243 Enrolled LRB095 01632 CMK 23652 b

    AN ACT concerning environmental protection.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 201 as follows:
 
    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
    Sec. 201. Tax Imposed.
    (a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
    (b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
        (1) In the case of an individual, trust or estate, for
    taxable years ending prior to July 1, 1989, an amount equal
    to 2 1/2% of the taxpayer's net income for the taxable
    year.
        (2) In the case of an individual, trust or estate, for
    taxable years beginning prior to July 1, 1989 and ending
    after June 30, 1989, an amount equal to the sum of (i) 2
    1/2% of the taxpayer's net income for the period prior to
    July 1, 1989, as calculated under Section 202.3, and (ii)
    3% of the taxpayer's net income for the period after June
    30, 1989, as calculated under Section 202.3.
        (3) In the case of an individual, trust or estate, for
    taxable years beginning after June 30, 1989, an amount
    equal to 3% of the taxpayer's net income for the taxable
    year.
        (4) (Blank).
        (5) (Blank).
        (6) In the case of a corporation, for taxable years
    ending prior to July 1, 1989, an amount equal to 4% of the
    taxpayer's net income for the taxable year.
        (7) In the case of a corporation, for taxable years
    beginning prior to July 1, 1989 and ending after June 30,
    1989, an amount equal to the sum of (i) 4% of the
    taxpayer's net income for the period prior to July 1, 1989,
    as calculated under Section 202.3, and (ii) 4.8% of the
    taxpayer's net income for the period after June 30, 1989,
    as calculated under Section 202.3.
        (8) In the case of a corporation, for taxable years
    beginning after June 30, 1989, an amount equal to 4.8% of
    the taxpayer's net income for the taxable year.
    (c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or receiving
income in or as a resident of this State. The Personal Property
Tax Replacement Income Tax shall be in addition to the income
tax imposed by subsections (a) and (b) of this Section and in
addition to all other occupation or privilege taxes imposed by
this State or by any municipal corporation or political
subdivision thereof.
    (d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
    (d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
        (1) For the purposes of subsection (d-1), in no event
    shall the sum of the rates of tax imposed by subsections
    (b) and (d) be reduced below the rate at which the sum of:
            (A) the total amount of tax imposed on such foreign
        insurer under this Act for a taxable year, net of all
        credits allowed under this Act, plus
            (B) the privilege tax imposed by Section 409 of the
        Illinois Insurance Code, the fire insurance company
        tax imposed by Section 12 of the Fire Investigation
        Act, and the fire department taxes imposed under
        Section 11-10-1 of the Illinois Municipal Code,
    equals 1.25% for taxable years ending prior to December 31,
    2003, or 1.75% for taxable years ending on or after
    December 31, 2003, of the net taxable premiums written for
    the taxable year, as described by subsection (1) of Section
    409 of the Illinois Insurance Code. This paragraph will in
    no event increase the rates imposed under subsections (b)
    and (d).
        (2) Any reduction in the rates of tax imposed by this
    subsection shall be applied first against the rates imposed
    by subsection (b) and only after the tax imposed by
    subsection (a) net of all credits allowed under this
    Section other than the credit allowed under subsection (i)
    has been reduced to zero, against the rates imposed by
    subsection (d).
    This subsection (d-1) is exempt from the provisions of
Section 250.
    (e) Investment credit. A taxpayer shall be allowed a credit
against the Personal Property Tax Replacement Income Tax for
investment in qualified property.
        (1) A taxpayer shall be allowed a credit equal to .5%
    of the basis of qualified property placed in service during
    the taxable year, provided such property is placed in
    service on or after July 1, 1984. There shall be allowed an
    additional credit equal to .5% of the basis of qualified
    property placed in service during the taxable year,
    provided such property is placed in service on or after
    July 1, 1986, and the taxpayer's base employment within
    Illinois has increased by 1% or more over the preceding
    year as determined by the taxpayer's employment records
    filed with the Illinois Department of Employment Security.
    Taxpayers who are new to Illinois shall be deemed to have
    met the 1% growth in base employment for the first year in
    which they file employment records with the Illinois
    Department of Employment Security. The provisions added to
    this Section by Public Act 85-1200 (and restored by Public
    Act 87-895) shall be construed as declaratory of existing
    law and not as a new enactment. If, in any year, the
    increase in base employment within Illinois over the
    preceding year is less than 1%, the additional credit shall
    be limited to that percentage times a fraction, the
    numerator of which is .5% and the denominator of which is
    1%, but shall not exceed .5%. The investment credit shall
    not be allowed to the extent that it would reduce a
    taxpayer's liability in any tax year below zero, nor may
    any credit for qualified property be allowed for any year
    other than the year in which the property was placed in
    service in Illinois. For tax years ending on or after
    December 31, 1987, and on or before December 31, 1988, the
    credit shall be allowed for the tax year in which the
    property is placed in service, or, if the amount of the
    credit exceeds the tax liability for that year, whether it
    exceeds the original liability or the liability as later
    amended, such excess may be carried forward and applied to
    the tax liability of the 5 taxable years following the
    excess credit years if the taxpayer (i) makes investments
    which cause the creation of a minimum of 2,000 full-time
    equivalent jobs in Illinois, (ii) is located in an
    enterprise zone established pursuant to the Illinois
    Enterprise Zone Act and (iii) is certified by the
    Department of Commerce and Community Affairs (now
    Department of Commerce and Economic Opportunity) as
    complying with the requirements specified in clause (i) and
    (ii) by July 1, 1986. The Department of Commerce and
    Community Affairs (now Department of Commerce and Economic
    Opportunity) shall notify the Department of Revenue of all
    such certifications immediately. For tax years ending
    after December 31, 1988, the credit shall be allowed for
    the tax year in which the property is placed in service,
    or, if the amount of the credit exceeds the tax liability
    for that year, whether it exceeds the original liability or
    the liability as later amended, such excess may be carried
    forward and applied to the tax liability of the 5 taxable
    years following the excess credit years. The credit shall
    be applied to the earliest year for which there is a
    liability. If there is credit from more than one tax year
    that is available to offset a liability, earlier credit
    shall be applied first.
        (2) The term "qualified property" means property
    which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings and
        signs that are real property, but not including land or
        improvements to real property that are not a structural
        component of a building such as landscaping, sewer
        lines, local access roads, fencing, parking lots, and
        other appurtenances;
            (B) is depreciable pursuant to Section 167 of the
        Internal Revenue Code, except that "3-year property"
        as defined in Section 168(c)(2)(A) of that Code is not
        eligible for the credit provided by this subsection
        (e);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code;
            (D) is used in Illinois by a taxpayer who is
        primarily engaged in manufacturing, or in mining coal
        or fluorite, or in retailing, or was placed in service
        on or after July 1, 2006 in a River Edge Redevelopment
        Zone established pursuant to the River Edge
        Redevelopment Zone Act; and
            (E) has not previously been used in Illinois in
        such a manner and by such a person as would qualify for
        the credit provided by this subsection (e) or
        subsection (f).
        (3) For purposes of this subsection (e),
    "manufacturing" means the material staging and production
    of tangible personal property by procedures commonly
    regarded as manufacturing, processing, fabrication, or
    assembling which changes some existing material into new
    shapes, new qualities, or new combinations. For purposes of
    this subsection (e) the term "mining" shall have the same
    meaning as the term "mining" in Section 613(c) of the
    Internal Revenue Code. For purposes of this subsection (e),
    the term "retailing" means the sale of tangible personal
    property or services rendered in conjunction with the sale
    of tangible consumer goods or commodities.
        (4) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (5) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in Illinois by the taxpayer, the amount of such
    increase shall be deemed property placed in service on the
    date of such increase in basis.
        (6) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (7) If during any taxable year, any property ceases to
    be qualified property in the hands of the taxpayer within
    48 months after being placed in service, or the situs of
    any qualified property is moved outside Illinois within 48
    months after being placed in service, the Personal Property
    Tax Replacement Income Tax for such taxable year shall be
    increased. Such increase shall be determined by (i)
    recomputing the investment credit which would have been
    allowed for the year in which credit for such property was
    originally allowed by eliminating such property from such
    computation and, (ii) subtracting such recomputed credit
    from the amount of credit previously allowed. For the
    purposes of this paragraph (7), a reduction of the basis of
    qualified property resulting from a redetermination of the
    purchase price shall be deemed a disposition of qualified
    property to the extent of such reduction.
        (8) Unless the investment credit is extended by law,
    the basis of qualified property shall not include costs
    incurred after December 31, 2008, except for costs incurred
    pursuant to a binding contract entered into on or before
    December 31, 2008.
        (9) Each taxable year ending before December 31, 2000,
    a partnership may elect to pass through to its partners the
    credits to which the partnership is entitled under this
    subsection (e) for the taxable year. A partner may use the
    credit allocated to him or her under this paragraph only
    against the tax imposed in subsections (c) and (d) of this
    Section. If the partnership makes that election, those
    credits shall be allocated among the partners in the
    partnership in accordance with the rules set forth in
    Section 704(b) of the Internal Revenue Code, and the rules
    promulgated under that Section, and the allocated amount of
    the credits shall be allowed to the partners for that
    taxable year. The partnership shall make this election on
    its Personal Property Tax Replacement Income Tax return for
    that taxable year. The election to pass through the credits
    shall be irrevocable.
        For taxable years ending on or after December 31, 2000,
    a partner that qualifies its partnership for a subtraction
    under subparagraph (I) of paragraph (2) of subsection (d)
    of Section 203 or a shareholder that qualifies a Subchapter
    S corporation for a subtraction under subparagraph (S) of
    paragraph (2) of subsection (b) of Section 203 shall be
    allowed a credit under this subsection (e) equal to its
    share of the credit earned under this subsection (e) during
    the taxable year by the partnership or Subchapter S
    corporation, determined in accordance with the
    determination of income and distributive share of income
    under Sections 702 and 704 and Subchapter S of the Internal
    Revenue Code. This paragraph is exempt from the provisions
    of Section 250.
      (f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
        (1) A taxpayer shall be allowed a credit against the
    tax imposed by subsections (a) and (b) of this Section for
    investment in qualified property which is placed in service
    in an Enterprise Zone created pursuant to the Illinois
    Enterprise Zone Act or, for property placed in service on
    or after July 1, 2006, a River Edge Redevelopment Zone
    established pursuant to the River Edge Redevelopment Zone
    Act. For partners, shareholders of Subchapter S
    corporations, and owners of limited liability companies,
    if the liability company is treated as a partnership for
    purposes of federal and State income taxation, there shall
    be allowed a credit under this subsection (f) to be
    determined in accordance with the determination of income
    and distributive share of income under Sections 702 and 704
    and Subchapter S of the Internal Revenue Code. The credit
    shall be .5% of the basis for such property. The credit
    shall be available only in the taxable year in which the
    property is placed in service in the Enterprise Zone or
    River Edge Redevelopment Zone and shall not be allowed to
    the extent that it would reduce a taxpayer's liability for
    the tax imposed by subsections (a) and (b) of this Section
    to below zero. For tax years ending on or after December
    31, 1985, the credit shall be allowed for the tax year in
    which the property is placed in service, or, if the amount
    of the credit exceeds the tax liability for that year,
    whether it exceeds the original liability or the liability
    as later amended, such excess may be carried forward and
    applied to the tax liability of the 5 taxable years
    following the excess credit year. The credit shall be
    applied to the earliest year for which there is a
    liability. If there is credit from more than one tax year
    that is available to offset a liability, the credit
    accruing first in time shall be applied first.
        (2) The term qualified property means property which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings;
            (B) is depreciable pursuant to Section 167 of the
        Internal Revenue Code, except that "3-year property"
        as defined in Section 168(c)(2)(A) of that Code is not
        eligible for the credit provided by this subsection
        (f);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code;
            (D) is used in the Enterprise Zone or River Edge
        Redevelopment Zone by the taxpayer; and
            (E) has not been previously used in Illinois in
        such a manner and by such a person as would qualify for
        the credit provided by this subsection (f) or
        subsection (e).
        (3) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (4) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in the Enterprise Zone or River Edge
    Redevelopment Zone by the taxpayer, the amount of such
    increase shall be deemed property placed in service on the
    date of such increase in basis.
        (5) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (6) If during any taxable year, any property ceases to
    be qualified property in the hands of the taxpayer within
    48 months after being placed in service, or the situs of
    any qualified property is moved outside the Enterprise Zone
    or River Edge Redevelopment Zone within 48 months after
    being placed in service, the tax imposed under subsections
    (a) and (b) of this Section for such taxable year shall be
    increased. Such increase shall be determined by (i)
    recomputing the investment credit which would have been
    allowed for the year in which credit for such property was
    originally allowed by eliminating such property from such
    computation, and (ii) subtracting such recomputed credit
    from the amount of credit previously allowed. For the
    purposes of this paragraph (6), a reduction of the basis of
    qualified property resulting from a redetermination of the
    purchase price shall be deemed a disposition of qualified
    property to the extent of such reduction.
        (7) There shall be allowed an additional credit equal
    to 0.5% of the basis of qualified property placed in
    service during the taxable year in a River Edge
    Redevelopment Zone, provided such property is placed in
    service on or after July 1, 2006, and the taxpayer's base
    employment within Illinois has increased by 1% or more over
    the preceding year as determined by the taxpayer's
    employment records filed with the Illinois Department of
    Employment Security. Taxpayers who are new to Illinois
    shall be deemed to have met the 1% growth in base
    employment for the first year in which they file employment
    records with the Illinois Department of Employment
    Security. If, in any year, the increase in base employment
    within Illinois over the preceding year is less than 1%,
    the additional credit shall be limited to that percentage
    times a fraction, the numerator of which is 0.5% and the
    denominator of which is 1%, but shall not exceed 0.5%.
      (g) Jobs Tax Credit; Enterprise Zone, River Edge
Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
        (1) A taxpayer conducting a trade or business in an
    enterprise zone or a High Impact Business designated by the
    Department of Commerce and Economic Opportunity or for
    taxable years ending on or after December 31, 2006, in a
    River Edge Redevelopment Zone conducting a trade or
    business in a federally designated Foreign Trade Zone or
    Sub-Zone shall be allowed a credit against the tax imposed
    by subsections (a) and (b) of this Section in the amount of
    $500 per eligible employee hired to work in the zone during
    the taxable year.
        (2) To qualify for the credit:
            (A) the taxpayer must hire 5 or more eligible
        employees to work in an enterprise zone, River Edge
        Redevelopment Zone, or federally designated Foreign
        Trade Zone or Sub-Zone during the taxable year;
            (B) the taxpayer's total employment within the
        enterprise zone, River Edge Redevelopment Zone, or
        federally designated Foreign Trade Zone or Sub-Zone
        must increase by 5 or more full-time employees beyond
        the total employed in that zone at the end of the
        previous tax year for which a jobs tax credit under
        this Section was taken, or beyond the total employed by
        the taxpayer as of December 31, 1985, whichever is
        later; and
            (C) the eligible employees must be employed 180
        consecutive days in order to be deemed hired for
        purposes of this subsection.
        (3) An "eligible employee" means an employee who is:
            (A) Certified by the Department of Commerce and
        Economic Opportunity as "eligible for services"
        pursuant to regulations promulgated in accordance with
        Title II of the Job Training Partnership Act, Training
        Services for the Disadvantaged or Title III of the Job
        Training Partnership Act, Employment and Training
        Assistance for Dislocated Workers Program.
            (B) Hired after the enterprise zone, River Edge
        Redevelopment Zone, or federally designated Foreign
        Trade Zone or Sub-Zone was designated or the trade or
        business was located in that zone, whichever is later.
            (C) Employed in the enterprise zone, River Edge
        Redevelopment Zone, or Foreign Trade Zone or Sub-Zone.
        An employee is employed in an enterprise zone or
        federally designated Foreign Trade Zone or Sub-Zone if
        his services are rendered there or it is the base of
        operations for the services performed.
            (D) A full-time employee working 30 or more hours
        per week.
        (4) For tax years ending on or after December 31, 1985
    and prior to December 31, 1988, the credit shall be allowed
    for the tax year in which the eligible employees are hired.
    For tax years ending on or after December 31, 1988, the
    credit shall be allowed for the tax year immediately
    following the tax year in which the eligible employees are
    hired. If the amount of the credit exceeds the tax
    liability for that year, whether it exceeds the original
    liability or the liability as later amended, such excess
    may be carried forward and applied to the tax liability of
    the 5 taxable years following the excess credit year. The
    credit shall be applied to the earliest year for which
    there is a liability. If there is credit from more than one
    tax year that is available to offset a liability, earlier
    credit shall be applied first.
        (5) The Department of Revenue shall promulgate such
    rules and regulations as may be deemed necessary to carry
    out the purposes of this subsection (g).
        (6) The credit shall be available for eligible
    employees hired on or after January 1, 1986.
    (h) Investment credit; High Impact Business.
        (1) Subject to subsections (b) and (b-5) of Section 5.5
    of the Illinois Enterprise Zone Act, a taxpayer shall be
    allowed a credit against the tax imposed by subsections (a)
    and (b) of this Section for investment in qualified
    property which is placed in service by a Department of
    Commerce and Economic Opportunity designated High Impact
    Business. The credit shall be .5% of the basis for such
    property. The credit shall not be available (i) until the
    minimum investments in qualified property set forth in
    subdivision (a)(3)(A) of Section 5.5 of the Illinois
    Enterprise Zone Act have been satisfied or (ii) until the
    time authorized in subsection (b-5) of the Illinois
    Enterprise Zone Act for entities designated as High Impact
    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
    Act, and shall not be allowed to the extent that it would
    reduce a taxpayer's liability for the tax imposed by
    subsections (a) and (b) of this Section to below zero. The
    credit applicable to such investments shall be taken in the
    taxable year in which such investments have been completed.
    The credit for additional investments beyond the minimum
    investment by a designated high impact business authorized
    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
    Enterprise Zone Act shall be available only in the taxable
    year in which the property is placed in service and shall
    not be allowed to the extent that it would reduce a
    taxpayer's liability for the tax imposed by subsections (a)
    and (b) of this Section to below zero. For tax years ending
    on or after December 31, 1987, the credit shall be allowed
    for the tax year in which the property is placed in
    service, or, if the amount of the credit exceeds the tax
    liability for that year, whether it exceeds the original
    liability or the liability as later amended, such excess
    may be carried forward and applied to the tax liability of
    the 5 taxable years following the excess credit year. The
    credit shall be applied to the earliest year for which
    there is a liability. If there is credit from more than one
    tax year that is available to offset a liability, the
    credit accruing first in time shall be applied first.
        Changes made in this subdivision (h)(1) by Public Act
    88-670 restore changes made by Public Act 85-1182 and
    reflect existing law.
        (2) The term qualified property means property which:
            (A) is tangible, whether new or used, including
        buildings and structural components of buildings;
            (B) is depreciable pursuant to Section 167 of the
        Internal Revenue Code, except that "3-year property"
        as defined in Section 168(c)(2)(A) of that Code is not
        eligible for the credit provided by this subsection
        (h);
            (C) is acquired by purchase as defined in Section
        179(d) of the Internal Revenue Code; and
            (D) is not eligible for the Enterprise Zone
        Investment Credit provided by subsection (f) of this
        Section.
        (3) The basis of qualified property shall be the basis
    used to compute the depreciation deduction for federal
    income tax purposes.
        (4) If the basis of the property for federal income tax
    depreciation purposes is increased after it has been placed
    in service in a federally designated Foreign Trade Zone or
    Sub-Zone located in Illinois by the taxpayer, the amount of
    such increase shall be deemed property placed in service on
    the date of such increase in basis.
        (5) The term "placed in service" shall have the same
    meaning as under Section 46 of the Internal Revenue Code.
        (6) If during any taxable year ending on or before
    December 31, 1996, any property ceases to be qualified
    property in the hands of the taxpayer within 48 months
    after being placed in service, or the situs of any
    qualified property is moved outside Illinois within 48
    months after being placed in service, the tax imposed under
    subsections (a) and (b) of this Section for such taxable
    year shall be increased. Such increase shall be determined
    by (i) recomputing the investment credit which would have
    been allowed for the year in which credit for such property
    was originally allowed by eliminating such property from
    such computation, and (ii) subtracting such recomputed
    credit from the amount of credit previously allowed. For
    the purposes of this paragraph (6), a reduction of the
    basis of qualified property resulting from a
    redetermination of the purchase price shall be deemed a
    disposition of qualified property to the extent of such
    reduction.
        (7) Beginning with tax years ending after December 31,
    1996, if a taxpayer qualifies for the credit under this
    subsection (h) and thereby is granted a tax abatement and
    the taxpayer relocates its entire facility in violation of
    the explicit terms and length of the contract under Section
    18-183 of the Property Tax Code, the tax imposed under
    subsections (a) and (b) of this Section shall be increased
    for the taxable year in which the taxpayer relocated its
    facility by an amount equal to the amount of credit
    received by the taxpayer under this subsection (h).
    (i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a) and
(b) of this Section for the tax imposed by subsections (c) and
(d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
    Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections (a)
and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by subsections
(a) and (b) of the 5 taxable years following the excess credit
year, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from more
than one tax year that is available to offset a liability the
earliest credit arising under this subsection shall be applied
first.
    If, during any taxable year ending on or after December 31,
1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such taxable
year to reduce the amount of credit claimed.
    (j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed outside
of Illinois by a taxpayer, for educational or vocational
training in semi-technical or technical fields or semi-skilled
or skilled fields, which were deducted from gross income in the
computation of taxable income. The credit against the tax
imposed by subsections (a) and (b) shall be 1.6% of such
training expenses. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, there shall be allowed a
credit under this subsection (j) to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
    Any credit allowed under this subsection which is unused in
the year the credit is earned may be carried forward to each of
the 5 taxable years following the year for which the credit is
first computed until it is used. This credit shall be applied
first to the earliest year for which there is a liability. If
there is a credit under this subsection from more than one tax
year that is available to offset a liability the earliest
credit arising under this subsection shall be applied first. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
    (k) Research and development credit.
    For tax years ending after July 1, 1990 and prior to
December 31, 2003, and beginning again for tax years ending on
or after December 31, 2004, a taxpayer shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for increasing research activities in this State.
The credit allowed against the tax imposed by subsections (a)
and (b) shall be equal to 6 1/2% of the qualifying expenditures
for increasing research activities in this State. For partners,
shareholders of subchapter S corporations, and owners of
limited liability companies, if the liability company is
treated as a partnership for purposes of federal and State
income taxation, there shall be allowed a credit under this
subsection to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code.
    For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures for
increasing research activities in this State" means the excess
of qualifying expenditures for the taxable year in which
incurred over qualifying expenditures for the base period,
"qualifying expenditures for the base period" means the average
of the qualifying expenditures for each year in the base
period, and "base period" means the 3 taxable years immediately
preceding the taxable year for which the determination is being
made.
    Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever occurs
first; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
    If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
    No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.
    (l) Environmental Remediation Tax Credit.
        (i) For tax years ending after December 31, 1997 and on
    or before December 31, 2001, a taxpayer shall be allowed a
    credit against the tax imposed by subsections (a) and (b)
    of this Section for certain amounts paid for unreimbursed
    eligible remediation costs, as specified in this
    subsection. For purposes of this Section, "unreimbursed
    eligible remediation costs" means costs approved by the
    Illinois Environmental Protection Agency ("Agency") under
    Section 58.14 of the Environmental Protection Act that were
    paid in performing environmental remediation at a site for
    which a No Further Remediation Letter was issued by the
    Agency and recorded under Section 58.10 of the
    Environmental Protection Act. The credit must be claimed
    for the taxable year in which Agency approval of the
    eligible remediation costs is granted. The credit is not
    available to any taxpayer if the taxpayer or any related
    party caused or contributed to, in any material respect, a
    release of regulated substances on, in, or under the site
    that was identified and addressed by the remedial action
    pursuant to the Site Remediation Program of the
    Environmental Protection Act. After the Pollution Control
    Board rules are adopted pursuant to the Illinois
    Administrative Procedure Act for the administration and
    enforcement of Section 58.9 of the Environmental
    Protection Act, determinations as to credit availability
    for purposes of this Section shall be made consistent with
    those rules. For purposes of this Section, "taxpayer"
    includes a person whose tax attributes the taxpayer has
    succeeded to under Section 381 of the Internal Revenue Code
    and "related party" includes the persons disallowed a
    deduction for losses by paragraphs (b), (c), and (f)(1) of
    Section 267 of the Internal Revenue Code by virtue of being
    a related taxpayer, as well as any of its partners. The
    credit allowed against the tax imposed by subsections (a)
    and (b) shall be equal to 25% of the unreimbursed eligible
    remediation costs in excess of $100,000 per site, except
    that the $100,000 threshold shall not apply to any site
    contained in an enterprise zone as determined by the
    Department of Commerce and Community Affairs (now
    Department of Commerce and Economic Opportunity). The
    total credit allowed shall not exceed $40,000 per year with
    a maximum total of $150,000 per site. For partners and
    shareholders of subchapter S corporations, there shall be
    allowed a credit under this subsection to be determined in
    accordance with the determination of income and
    distributive share of income under Sections 702 and 704 and
    subchapter S of the Internal Revenue Code.
        (ii) A credit allowed under this subsection that is
    unused in the year the credit is earned may be carried
    forward to each of the 5 taxable years following the year
    for which the credit is first earned until it is used. The
    term "unused credit" does not include any amounts of
    unreimbursed eligible remediation costs in excess of the
    maximum credit per site authorized under paragraph (i).
    This credit shall be applied first to the earliest year for
    which there is a liability. If there is a credit under this
    subsection from more than one tax year that is available to
    offset a liability, the earliest credit arising under this
    subsection shall be applied first. A credit allowed under
    this subsection may be sold to a buyer as part of a sale of
    all or part of the remediation site for which the credit
    was granted. The purchaser of a remediation site and the
    tax credit shall succeed to the unused credit and remaining
    carry-forward period of the seller. To perfect the
    transfer, the assignor shall record the transfer in the
    chain of title for the site and provide written notice to
    the Director of the Illinois Department of Revenue of the
    assignor's intent to sell the remediation site and the
    amount of the tax credit to be transferred as a portion of
    the sale. In no event may a credit be transferred to any
    taxpayer if the taxpayer or a related party would not be
    eligible under the provisions of subsection (i).
        (iii) For purposes of this Section, the term "site"
    shall have the same meaning as under Section 58.2 of the
    Environmental Protection Act.
    (m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed $500. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. This subsection is exempt
from the provisions of Section 250 of this Act.
    For purposes of this subsection:
    "Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
    "Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
    "School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
    "Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
    (n) River Edge Redevelopment Zone site remediation tax
credit.
        (i) For tax years ending on or after December 31, 2006,
    a taxpayer shall be allowed a credit against the tax
    imposed by subsections (a) and (b) of this Section for
    certain amounts paid for unreimbursed eligible remediation
    costs, as specified in this subsection. For purposes of
    this Section, "unreimbursed eligible remediation costs"
    means costs approved by the Illinois Environmental
    Protection Agency ("Agency") under Section 58.14a 58.14 of
    the Environmental Protection Act that were paid in
    performing environmental remediation at a site within a
    River Edge Redevelopment Zone for which a No Further
    Remediation Letter was issued by the Agency and recorded
    under Section 58.10 of the Environmental Protection Act.
    The credit must be claimed for the taxable year in which
    Agency approval of the eligible remediation costs is
    granted. The credit is not available to any taxpayer if the
    taxpayer or any related party caused or contributed to, in
    any material respect, a release of regulated substances on,
    in, or under the site that was identified and addressed by
    the remedial action pursuant to the Site Remediation
    Program of the Environmental Protection Act.
    Determinations as to credit availability for purposes of
    this Section shall be made consistent with rules adopted by
    the Pollution Control Board pursuant to the Illinois
    Administrative Procedure Act for the administration and
    enforcement of Section 58.9 of the Environmental
    Protection Act. For purposes of this Section, "taxpayer"
    includes a person whose tax attributes the taxpayer has
    succeeded to under Section 381 of the Internal Revenue Code
    and "related party" includes the persons disallowed a
    deduction for losses by paragraphs (b), (c), and (f)(1) of
    Section 267 of the Internal Revenue Code by virtue of being
    a related taxpayer, as well as any of its partners. The
    credit allowed against the tax imposed by subsections (a)
    and (b) shall be equal to 25% of the unreimbursed eligible
    remediation costs in excess of $100,000 per site.
        (ii) A credit allowed under this subsection that is
    unused in the year the credit is earned may be carried
    forward to each of the 5 taxable years following the year
    for which the credit is first earned until it is used. This
    credit shall be applied first to the earliest year for
    which there is a liability. If there is a credit under this
    subsection from more than one tax year that is available to
    offset a liability, the earliest credit arising under this
    subsection shall be applied first. A credit allowed under
    this subsection may be sold to a buyer as part of a sale of
    all or part of the remediation site for which the credit
    was granted. The purchaser of a remediation site and the
    tax credit shall succeed to the unused credit and remaining
    carry-forward period of the seller. To perfect the
    transfer, the assignor shall record the transfer in the
    chain of title for the site and provide written notice to
    the Director of the Illinois Department of Revenue of the
    assignor's intent to sell the remediation site and the
    amount of the tax credit to be transferred as a portion of
    the sale. In no event may a credit be transferred to any
    taxpayer if the taxpayer or a related party would not be
    eligible under the provisions of subsection (i).
        (iii) For purposes of this Section, the term "site"
    shall have the same meaning as under Section 58.2 of the
    Environmental Protection Act.
        (iv) This subsection is exempt from the provisions of
    Section 250.
(Source: P.A. 93-29, eff. 6-20-03; 93-840, eff. 7-30-04;
93-871, eff. 8-6-04; 94-1021, eff. 7-12-06.)
 
    Section 10. The Environmental Protection Act is amended by
changing Section 25d-3 and 58.2 and 58.14 and by adding Section
58.14a as follows:
 
    (415 ILCS 5/25d-3)
    Sec. 25d-3. Notices.
    (a) Beginning January 1, 2006, if the Agency determines
that:
        (1) Soil contamination beyond the boundary of the site
    where the release occurred poses a threat of exposure to
    the public above the appropriate Tier 1 remediation
    objectives, based on the current use of the off-site
    property, adopted by the Board under Title XVII of this
    Act, the Agency shall give notice of the threat to the
    owner of the contaminated property; or
        (2) Groundwater contamination poses a threat of
    exposure to the public above the Class I groundwater
    quality standards adopted by the Board under this Act and
    the Groundwater Protection Act, the Agency shall give
    notice of the threat to the following:
            (A) for any private, semi-private, or
        non-community water system, the owners of the
        properties served by the system; and
            (B) for any community water system, the owners and
        operators of the system.
The Agency's determination must be based on the credible,
scientific information available to it, and the Agency is not
required to perform additional investigations or studies
beyond those required by applicable federal or State laws.
    (b) Beginning January 1, 2006, if any of the following
actions occur: (i) the Agency refers a matter for enforcement
under Section 43(a) of this Act; (ii) the Agency issues a seal
order under Section 34(a) of this Act; or (iii) the Agency, the
United States Environmental Protection Agency (USEPA), or a
third party under Agency or USEPA oversight performs an
immediate removal under the federal Comprehensive
Environmental Response, Compensation, and Liability Act, as
amended, then, within 60 days after the action, the Agency must
give notice of the action to the owners of all property within
2,500 feet of the subject contamination or any closer or
farther distance that the Agency deems appropriate under the
circumstances. Within 30 days after a request by the Agency,
the appropriate officials of the county in which the property
is located must provide to the Agency the names and addresses
of all property owners to whom the Agency is required to give
notice under this subsection (b), these owners being the
persons or entities that appear from the authentic tax records
of the county.
    (c) The methods by which the Agency gives the notices
required under this Section shall be determined in consultation
with members of the public and appropriate members of the
regulated community and may include, but shall not be limited
to, personal notification, public meetings, signs, electronic
notification, and print media. For sites at which a responsible
party has implemented a community relations plan, the Agency
may allow the responsible party to provide Agency-approved
notices in lieu of the notices required to be given by the
Agency. Notices issued under this Section may contain the
following information:
        (1) the name and address of the site or facility where
    the release occurred or is suspected to have occurred;
        (2) the identification of the contaminant released or
    suspected to have been released;
        (3) information as to whether the contaminant was
    released or suspected to have been released into the air,
    land, or water;
        (4) a brief description of the potential adverse health
    effects posed by the contaminant;
        (5) a recommendation that water systems with wells
    impacted or potentially impacted by the contaminant be
    appropriately tested; and
        (6) the name, business address, and phone number of
    persons at the Agency from whom additional information
    about the release or suspected release can be obtained.
    (d) Any person who is a responsible party with respect to
the release or substantial threat of release for which notice
is given under this Section is liable for all reasonable costs
incurred by the State in giving the notice. All moneys received
by the State under this subsection (d) for costs related to
releases and substantial threats of releases of hazardous
substances, pesticides, and petroleum other than releases and
substantial threats of releases of petroleum from underground
storage tanks subject to Title XVI of this Act must be
deposited in and used for purposes consistent with the
Hazardous Waste Fund. All moneys received by the State under
this subsection (d) for costs related to releases and
substantial threats of releases of petroleum from underground
storage tanks subject to Title XVI of this Act must be
deposited in and used for purposes consistent with the
Underground Storage Tank Fund.
(Source: P.A. 94-314, eff. 7-25-05.)
 
    (415 ILCS 5/58.2)
    Sec. 58.2. Definitions. The following words and phrases
when used in this Title shall have the meanings given to them
in this Section unless the context clearly indicates otherwise:
    "Agrichemical facility" means a site on which agricultural
pesticides are stored or handled, or both, in preparation for
end use, or distributed. The term does not include basic
manufacturing facility sites.
    "ASTM" means the American Society for Testing and
Materials.
    "Area background" means concentrations of regulated
substances that are consistently present in the environment in
the vicinity of a site that are the result of natural
conditions or human activities, and not the result solely of
releases at the site.
    "Brownfields site" or "brownfields" means a parcel of real
property, or a portion of the parcel, that has actual or
perceived contamination and an active potential for
redevelopment.
    "Class I groundwater" means groundwater that meets the
Class I Potable Resource groundwater criteria set forth in the
Board rules adopted under the Illinois Groundwater Protection
Act.
    "Class III groundwater" means groundwater that meets the
Class III Special Resource Groundwater criteria set forth in
the Board rules adopted under the Illinois Groundwater
Protection Act.
    "Carcinogen" means a contaminant that is classified as a
Category A1 or A2 Carcinogen by the American Conference of
Governmental Industrial Hygienists; or a Category 1 or 2A/2B
Carcinogen by the World Health Organizations International
Agency for Research on Cancer; or a "Human Carcinogen" or
"Anticipated Human Carcinogen" by the United States Department
of Health and Human Service National Toxicological Program; or
a Category A or B1/B2 Carcinogen by the United States
Environmental Protection Agency in Integrated Risk Information
System or a Final Rule issued in a Federal Register notice by
the USEPA as of the effective date of this amendatory Act of
1995.
    "Licensed Professional Engineer" (LPE) means a person,
corporation, or partnership licensed under the laws of this
State to practice professional engineering.
    "Licensed Professional Geologist" means a person licensed
under the laws of the State of Illinois to practice as a
professional geologist.
    "RELPEG" means a Licensed Professional Engineer or a
Licensed Professional Geologist engaged in review and
evaluation under this Title.
    "Man-made pathway" means constructed routes that may allow
for the transport of regulated substances including, but not
limited to, sewers, utility lines, utility vaults, building
foundations, basements, crawl spaces, drainage ditches, or
previously excavated and filled areas.
    "Municipality" means an incorporated city, village, or
town in this State. "Municipality" does not mean a township,
town when that term is used as the equivalent of a township,
incorporated town that has superseded a civil township, county,
or school district, park district, sanitary district, or
similar governmental district.
    "Natural pathway" means natural routes for the transport of
regulated substances including, but not limited to, soil,
groundwater, sand seams and lenses, and gravel seams and
lenses.
    "Person" means individual, trust, firm, joint stock
company, joint venture, consortium, commercial entity,
corporation (including a government corporation), partnership,
association, State, municipality, commission, political
subdivision of a State, or any interstate body including the
United States Government and each department, agency, and
instrumentality of the United States.
    "Regulated substance" means any hazardous substance as
defined under Section 101(14) of the Comprehensive
Environmental Response, Compensation, and Liability Act of
1980 (P.L. 96-510) and petroleum products including crude oil
or any fraction thereof, natural gas, natural gas liquids,
liquefied natural gas, or synthetic gas usable for fuel (or
mixtures of natural gas and such synthetic gas).
    "Remedial action" means activities associated with
compliance with the provisions of Sections 58.6 and 58.7.
    "Remediation Applicant" (RA) means any person seeking to
perform or performing investigative or remedial activities
under this Title, including the owner or operator of the site
or persons authorized by law or consent to act on behalf of or
in lieu of the owner or operator of the site.
    "Remediation costs" means reasonable costs paid for
investigating and remediating regulated substances of concern
consistent with the remedy selected for a site.
    For purposes of Section 58.14, "remediation costs" shall
not include costs incurred prior to January 1, 1998, costs
incurred after the issuance of a No Further Remediation Letter
under Section 58.10 of this Act, or costs incurred more than 12
months prior to acceptance into the Site Remediation Program.
    For the purpose of Section 58.14a, "remediation costs" do
not include any costs incurred before January 1, 2007, any
costs incurred after the issuance of a No Further Remediation
Letter under Section 58.10, or any costs incurred more than 12
months before acceptance into the Site Remediation Program.
    "Residential property" means any real property that is used
for habitation by individuals and other property uses defined
by Board rules such as education, health care, child care and
related uses.
    "River Edge Redevelopment Zone" has the meaning set forth
under the River Edge Redevelopment Zone Act.
    "Site" means any single location, place, tract of land or
parcel of property, or portion thereof, including contiguous
property separated by a public right-of-way.
    "Regulated substance of concern" means any contaminant
that is expected to be present at the site based upon past and
current land uses and associated releases that are known to the
Remediation Applicant based upon reasonable inquiry.
(Source: P.A. 92-735, eff. 7-25-02.)
 
    (415 ILCS 5/58.14)
    Sec. 58.14. Environmental Remediation Tax Credit review.
    (a) Prior to applying for the Environmental Remediation Tax
Credit under Section 201 of the Illinois Income Tax Act,
Remediation Applicants shall first submit to the Agency an
application for review of remediation costs. The Agency shall
review the application jointly with the Department of Commerce
and Economic Opportunity. The application and review process
shall be conducted in accordance with the requirements of this
Section and the rules adopted under subsection (g). A
preliminary review of the estimated remediation costs for
development and implementation of the Remedial Action Plan may
be obtained in accordance with subsection (d).
    (b) No application for review shall be submitted until a No
Further Remediation Letter has been issued by the Agency and
recorded in the chain of title for the site in accordance with
Section 58.10. The Agency shall review the application to
determine whether the costs submitted are remediation costs,
and whether the costs incurred are reasonable. The application
shall be on forms prescribed and provided by the Agency. At a
minimum, the application shall include the following:
        (1) information identifying the Remediation Applicant
    and the site for which the tax credit is being sought and
    the date of acceptance of the site into the Site
    Remediation Program;
        (2) a copy of the No Further Remediation Letter with
    official verification that the letter has been recorded in
    the chain of title for the site and a demonstration that
    the site for which the application is submitted is the same
    site as the one for which the No Further Remediation Letter
    is issued;
        (3) a demonstration that the release of the regulated
    substances of concern for which the No Further Remediation
    Letter was issued were not caused or contributed to in any
    material respect by the Remediation Applicant. After the
    Pollution Control Board rules are adopted pursuant to the
    Illinois Administrative Procedure Act for the
    administration and enforcement of Section 58.9 of the
    Environmental Protection Act, determinations as to credit
    availability shall be made consistent with those rules;
        (4) an itemization and documentation, including
    receipts, of the remediation costs incurred;
        (5) a demonstration that the costs incurred are
    remediation costs as defined in this Act and its rules;
        (6) a demonstration that the costs submitted for review
    were incurred by the Remediation Applicant who received the
    No Further Remediation Letter;
        (7) an application fee in the amount set forth in
    subsection (e) for each site for which review of
    remediation costs is requested and, if applicable,
    certification from the Department of Commerce and Economic
    Opportunity that the site is located in an enterprise zone;
        (8) any other information deemed appropriate by the
    Agency.
    (c) Within 60 days after receipt by the Agency of an
application meeting the requirements of subsection (b), the
Agency shall issue a letter to the applicant approving,
disapproving, or modifying the remediation costs submitted in
the application. If the remediation costs are approved as
submitted, the Agency's letter shall state the amount of the
remediation costs to be applied toward the Environmental
Remediation Tax Credit. If an application is disapproved or
approved with modification of remediation costs, the Agency's
letter shall set forth the reasons for the disapproval or
modification and state the amount of the remediation costs, if
any, to be applied toward the Environmental Remediation Tax
Credit.
    If a preliminary review of a budget plan has been obtained
under subsection (d), the Remediation Applicant may submit,
with the application and supporting documentation under
subsection (b), a copy of the Agency's final determination
accompanied by a certification that the actual remediation
costs incurred for the development and implementation of the
Remedial Action Plan are equal to or less than the costs
approved in the Agency's final determination on the budget
plan. The certification shall be signed by the Remediation
Applicant and notarized. Based on that submission, the Agency
shall not be required to conduct further review of the costs
incurred for development and implementation of the Remedial
Action Plan and may approve costs as submitted.
    Within 35 days after receipt of an Agency letter
disapproving or modifying an application for approval of
remediation costs, the Remediation Applicant may appeal the
Agency's decision to the Board in the manner provided for the
review of permits in Section 40 of this Act.
    (d) (1) A Remediation Applicant may obtain a preliminary
    review of estimated remediation costs for the development
    and implementation of the Remedial Action Plan by
    submitting a budget plan along with the Remedial Action
    Plan. The budget plan shall be set forth on forms
    prescribed and provided by the Agency and shall include but
    shall not be limited to line item estimates of the costs
    associated with each line item (such as personnel,
    equipment, and materials) that the Remediation Applicant
    anticipates will be incurred for the development and
    implementation of the Remedial Action Plan. The Agency
    shall review the budget plan along with the Remedial Action
    Plan to determine whether the estimated costs submitted are
    remediation costs and whether the costs estimated for the
    activities are reasonable.
        (2) If the Remedial Action Plan is amended by the
    Remediation Applicant or as a result of Agency action, the
    corresponding budget plan shall be revised accordingly and
    resubmitted for Agency review.
        (3) The budget plan shall be accompanied by the
    applicable fee as set forth in subsection (e).
        (4) Submittal of a budget plan shall be deemed an
    automatic 60-day waiver of the Remedial Action Plan review
    deadlines set forth in this Section and its rules.
        (5) Within the applicable period of review, the Agency
    shall issue a letter to the Remediation Applicant
    approving, disapproving, or modifying the estimated
    remediation costs submitted in the budget plan. If a budget
    plan is disapproved or approved with modification of
    estimated remediation costs, the Agency's letter shall set
    forth the reasons for the disapproval or modification.
        (6) Within 35 days after receipt of an Agency letter
    disapproving or modifying a budget plan, the Remediation
    Applicant may appeal the Agency's decision to the Board in
    the manner provided for the review of permits in Section 40
    of this Act.
    (e) The fees for reviews conducted under this Section are
in addition to any other fees or payments for Agency services
rendered pursuant to the Site Remediation Program and shall be
as follows:
        (1) The fee for an application for review of
    remediation costs shall be $1,000 for each site reviewed.
        (2) The fee for the review of the budget plan submitted
    under subsection (d) shall be $500 for each site reviewed.
        (3) In the case of a Remediation Applicant submitting
    for review total remediation costs of $100,000 or less for
    a site located within an enterprise zone a River Edge
    Redevelopment Zone (as set forth in paragraph (i) of
    subsection (l) (n) of Section 201 of the Illinois Income
    Tax Act), the fee for an application for review of
    remediation costs shall be $250 for each site reviewed. For
    those sites, there shall be no fee for review of a budget
    plan under subsection (d).
    The application fee shall be made payable to the State of
Illinois, for deposit into the Hazardous Waste Fund.
    Pursuant to appropriation, the Agency shall use the fees
collected under this subsection for development and
administration of the review program.
    (f) The Agency shall have the authority to enter into any
contracts or agreements that may be necessary to carry out its
duties and responsibilities under this Section.
    (g) Within 6 months after July 21, 1997, the Agency shall
propose rules prescribing procedures and standards for its
administration of this Section. Within 6 months after receipt
of the Agency's proposed rules, the Board shall adopt on second
notice, pursuant to Sections 27 and 28 of this Act and the
Illinois Administrative Procedure Act, rules that are
consistent with this Section. Prior to the effective date of
rules adopted under this Section, the Agency may conduct
reviews of applications under this Section and the Agency is
further authorized to distribute guidance documents on costs
that are eligible or ineligible as remediation costs.
(Source: P.A. 94-793, eff. 5-19-06; 94-1021, eff. 7-12-06.)
 
    (415 ILCS 5/58.14a new)
    Sec. 58.14a. River Edge Redevelopment Zone Site
Remediation Tax Credit Review.
    (a) Prior to applying for the River Edge Redevelopment Zone
site remediation tax credit under subsection (n) of Section 201
of the Illinois Income Tax Act, a Remediation Applicant must
first submit to the Agency an application for review of
remediation costs. The Agency shall review the application in
consultation with the Department of Commerce and Economic
Opportunity. The application and review process must be
conducted in accordance with the requirements of this Section
and the rules adopted under subsection (g). A preliminary
review of the estimated remediation costs for development and
implementation of the Remedial Action Plan may be obtained in
accordance with subsection (d).
    (b) No application for review may be submitted until a No
Further Remediation Letter has been issued by the Agency and
recorded in the chain of title for the site in accordance with
Section 58.10. The Agency shall review the application to
determine whether the costs submitted are remediation costs and
whether the costs incurred are reasonable. The application must
be on forms prescribed and provided by the Agency. At a
minimum, the application must include the following:
        (1) information identifying the Remediation Applicant,
    the site for which the tax credit is being sought, and the
    date of acceptance of the site into the Site Remediation
    Program;
        (2) a copy of the No Further Remediation Letter with
    official verification that the letter has been recorded in
    the chain of title for the site and a demonstration that
    the site for which the application is submitted is the same
    site as the one for which the No Further Remediation Letter
    is issued;
        (3) a demonstration that the release of the regulated
    substances of concern for which the No Further Remediation
    Letter was issued were not caused or contributed to in any
    material respect by the Remediation Applicant.
    Determinations as to credit availability shall be made
    consistent with the Pollution Control Board rules for the
    administration and enforcement of Section 58.9 of this Act;
        (4) an itemization and documentation, including
    receipts, of the remediation costs incurred;
        (5) a demonstration that the costs incurred are
    remediation costs as defined in this Act and its rules;
        (6) a demonstration that the costs submitted for review
    were incurred by the Remediation Applicant who received the
    No Further Remediation Letter;
        (7) an application fee in the amount set forth in
    subsection (e) for each site for which review of
    remediation costs is requested and, if applicable,
    certification from the Department of Commerce and Economic
    Opportunity that the site is located in a River Edge
    Redevelopment Zone; and
        (8) any other information deemed appropriate by the
    Agency.
    (c) Within 60 days after receipt by the Agency of an
application meeting the requirements of subsection (b), the
Agency shall issue a letter to the applicant approving,
disapproving, or modifying the remediation costs submitted in
the application. If the remediation costs are approved as
submitted, then the Agency's letter must state the amount of
the remediation costs to be applied toward the River Edge
Redevelopment Zone site remediation tax credit. If an
application is disapproved or approved with modification of
remediation costs, then the Agency's letter must set forth the
reasons for the disapproval or modification and must state the
amount of the remediation costs, if any, to be applied toward
the River Edge Redevelopment Zone site remediation tax credit.
    If a preliminary review of a budget plan has been obtained
under subsection (d), then the Remediation Applicant may
submit, with the application and supporting documentation
under subsection (b), a copy of the Agency's final
determination accompanied by a certification that the actual
remediation costs incurred for the development and
implementation of the Remedial Action Plan are equal to or less
than the costs approved in the Agency's final determination on
the budget plan. The certification must be signed by the
Remediation Applicant and notarized. Based on that submission,
the Agency is not required to conduct further review of the
costs incurred for development and implementation of the
Remedial Action Plan, and it may approve the costs as
submitted. Within 35 days after the receipt of an Agency letter
disapproving or modifying an application for approval of
remediation costs, the Remediation Applicant may appeal the
Agency's decision to the Board in the manner provided for the
review of permits under Section 40 of this Act.
    (d) A Remediation Applicant may obtain a preliminary review
of estimated remediation costs for the development and
implementation of the Remedial Action Plan by submitting a
budget plan along with the Remedial Action Plan. The budget
plan must be set forth on forms prescribed and provided by the
Agency and must include, without limitation, line-item
estimates of the costs associated with each line item (such as
personnel, equipment, and materials) that the Remediation
Applicant anticipates will be incurred for the development and
implementation of the Remedial Action Plan. The Agency shall
review the budget plan along with the Remedial Action Plan to
determine whether the estimated costs submitted are
remediation costs and whether the costs estimated for the
activities are reasonable.
    If the Remedial Action Plan is amended by the Remediation
Applicant or as a result of Agency action, then the
corresponding budget plan must be revised accordingly and
resubmitted for Agency review.
    The budget plan must be accompanied by the applicable fee
as set forth in subsection (e).
    The submittal of a budget plan is deemed to be an automatic
60-day waiver of the Remedial Action Plan review deadlines set
forth in this Section and its rules.
    Within the applicable period of review, the Agency shall
issue a letter to the Remediation Applicant approving,
disapproving, or modifying the estimated remediation costs
submitted in the budget plan. If a budget plan is disapproved
or approved with modification of estimated remediation costs,
then the Agency's letter must set forth the reasons for the
disapproval or modification.
    Within 35 days after receipt of an Agency letter
disapproving or modifying a budget plan, the Remediation
Applicant may appeal the Agency's decision to the Board in the
manner provided for the review of permits under Section 40 of
this Act.
    (e) Any fee for a review conducted under this Section is in
addition to any other fees or payments for Agency services
rendered under the Site Remediation Program. The fees under
this Section are as follows:
        (1) the fee for an application for review of
    remediation costs is $250 for each site reviewed; and
        (2) there is no fee for the review of the budget plan
    submitted under subsection (d).
    The application fee must be made payable to the State of
Illinois, for deposit into the Hazardous Waste Fund. Pursuant
to appropriation, the Agency shall use the fees collected under
this subsection for development and administration of the
review program.
    (f) The Agency has the authority to enter into any
contracts or agreements that may be necessary to carry out its
duties and responsibilities under this Section.
    (g) The Agency shall adopt rules prescribing procedures and
standards for its administration of this Section. Prior to the
effective date of rules adopted under this Section, the Agency
may conduct reviews of applications under this Section. The
Agency may publish informal guidelines concerning this Section
to provide guidance.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.