|
|
||||
| Public Act 093-1064 |
||||
| ||||
| ||||
AN ACT in relation to executive agencies.
| ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
| ||||
Section 5. The Department of Commerce and Economic | ||||
Opportunity Law of the Civil Administrative Code is amended by | ||||
changing Section 605-332 as follows:
| ||||
(20 ILCS 605/605-332)
| ||||
Sec. 605-332. Financial assistance to energy generation | ||||
facilities.
| ||||
(a) As used in this Section:
| ||||
"New electric generating facility" means a | ||||
newly-constructed electric
generation plant or a newly | ||||
constructed generation capacity expansion at an
existing | ||||
facility, including the transmission lines and associated | ||||
equipment
that transfers electricity from points of supply to | ||||
points of delivery, and for
which foundation construction | ||||
commenced not sooner than July 1, 2001, which is
designed to | ||||
provide baseload electric generation operating on a continuous
| ||||
basis throughout the year; and:
| ||||
(1)
which has an aggregate rated generating capacity
of | ||||
at
least 400 megawatts for all new units at one site, uses | ||||
coal or gases derived
from coal as its primary fuel
source, | ||||
and supports the creation of at least 150 new Illinois coal | ||||
mining
jobs; or
| ||||
(2) is (i) funded through a federal Department of | ||||
Energy grant before July 1, 2005, and (ii) uses coal | ||||
gasification or integrated gasification-combined cycle
| ||||
units that generate electricity or chemicals, or both, and | ||||
that supports the
creation of
Illinois
coal-mining jobs.
| ||||
"Eligible business" means an entity that proposes to | ||||
construct a new electric
generating facility and that has | ||||
applied to the Department to receive financial
assistance | ||||
pursuant to this Section.
With respect to use and occupation | ||
taxes, wherever there is a reference to
taxes, that reference | ||
means only those taxes paid on Illinois-mined coal used
in
a | ||
new electric generating facility.
| ||
"Department" means the Illinois Department of Commerce and
| ||
Economic Opportunity
Community Affairs.
| ||
(b) The Department is authorized to
provide financial | ||
assistance to eligible businesses for new electric generating
| ||
facilities from funds appropriated by the General Assembly as | ||
further provided
in this Section.
| ||
An eligible business seeking qualification for financial | ||
assistance for
a new electric generating facility, for purposes | ||
of this Section only, shall
apply to the Department in the | ||
manner specified by the Department. Any
projections provided by | ||
an eligible business as part of the application shall
be | ||
independently verified in a manner as set forth by the | ||
Department. An
application shall include, but not
be limited | ||
to:
| ||
(1) the projected or actual completion date of the new | ||
electric
generating facility
for which financial | ||
assistance is sought;
| ||
(2) copies of documentation deemed
acceptable by the | ||
Department establishing either (i) the total State
| ||
occupation
and use taxes paid on Illinois-mined coal used | ||
at the new electric
generating facility for a minimum of 4 | ||
preceding calendar quarters or (ii)
the projected amount of | ||
State occupation and use taxes paid on Illinois-mined
coal | ||
used at the new electric generating facility in 4 calendar | ||
year quarters
after completion of the new electric | ||
generating facility.
Bond proceeds subject to this Section | ||
shall not be allocated to an
eligible business until the | ||
eligible business has demonstrated the revenue
stream | ||
sufficient to service the debt on the bonds; and
| ||
(3) the actual or projected amount of capital | ||
investment by the
eligible business
in the new electric | ||
generating facility.
| ||
The Department shall determine the maximum amount of | ||
financial
assistance for eligible businesses in accordance | ||
with this paragraph. The
Department shall not provide financial | ||
assistance from general obligation bond
funds to any eligible | ||
business
unless it receives a written certification from the | ||
Director of the
Bureau of
the Budget
(now Governor's Office of | ||
Management and Budget)
that 80% of the State occupation and use | ||
tax receipts for a minimum
of the
preceding 4 calendar quarters | ||
for all eligible businesses or as included in
projections on | ||
approved applications by eligible businesses equal or exceed
| ||
110% of the maximum annual debt service required with respect | ||
to general
obligation bonds issued for that purpose. The | ||
Department may provide
financial assistance not to exceed the | ||
amount of State general obligation
debt calculated as above, | ||
the amount of actual or projected capital
investment in the | ||
energy
generation facility, or $100,000,000, whichever is | ||
less.
Financial assistance received pursuant to this Section | ||
may be used
for capital facilities consisting of buildings, | ||
structures, durable equipment,
and land at the new electric | ||
generating facility. Subject to the provisions
of the agreement | ||
covering the financial assistance, a portion of the financial
| ||
assistance may be required to be repaid to the State if certain | ||
conditions for
the governmental purpose of the assistance were | ||
not met.
| ||
An eligible business shall file a monthly report with the
| ||
Illinois Department of Revenue stating the amount of | ||
Illinois-mined coal
purchased during
the previous month for use | ||
in the new electric generating facility, the
purchase price of | ||
that coal, the amount of State
occupation and use taxes paid on | ||
that purchase to the seller of the
Illinois-mined coal, and
| ||
such other
information as that Department may reasonably | ||
require. In sales of
Illinois-mined coal between related | ||
parties, the purchase price of the coal
must have been | ||
determined in an arms-length transaction. The report shall be
| ||
filed with the Illinois Department of Revenue on or before the | ||
20th day of
each month on a form provided by that Department. | ||
However, no report
need be filed by an eligible business in a | ||
month when it made
no reportable purchases of coal in the | ||
previous month.
The Illinois Department of Revenue shall | ||
provide a summary of such reports to
the
Governor's Office of | ||
Management and Budget
Bureau of the Budget.
| ||
Upon granting financial assistance to an eligible | ||
business, the Department
shall certify the name of the eligible | ||
business to the Illinois Department of
Revenue. Beginning with | ||
the receipt of the first report of State occupation
and use | ||
taxes paid by an
eligible business and continuing for a 25-year | ||
period, the Illinois Department
of Revenue shall each month pay | ||
into the Energy Infrastructure Fund 80% of the
net revenue | ||
realized from the 6.25% general rate on the selling price of
| ||
Illinois-mined coal that was sold to an eligible business.
| ||
(Source: P.A. 92-12, eff. 7-1-01; 93-167, eff. 7-10-03; revised | ||
8-23-03.)
| ||
Section 10. 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) (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 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 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,
is (i) funded through a federal Department of | ||
Energy grant before July 1, 2005, and (ii) uses 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
| ||
(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; 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 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)(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 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.
| ||
(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) 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 | ||
jobs would be eliminated in the event that the
business is not | ||
designated.
| ||
(e) 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) 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.
| ||
(h) Prior to designating a business, the Department shall | ||
provide the
members of the General Assembly and Illinois | ||
Economic and Fiscal Commission
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.
| ||
(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01; revised | ||
3-7-02.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||