Public Act 90-0123 of the 90th General Assembly
Public Act 90-0123
SB939 Enrolled LRB9003110KDsb
AN ACT concerning the environment, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.449 as follows:
(30 ILCS 105/5.449 new)
Sec. 5.449. The Brownfields Redevelopment Fund.
Section 10. 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:
(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) 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, 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.
(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 as complying with the requirements
specified in clause (i) and (ii) by July 1, 1986. The
Department of Commerce and Community Affairs 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; 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, 2003, except for costs
incurred pursuant to a binding contract entered into on
or before December 31, 2003.
(f) Investment credit; Enterprise 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. For partners and for
shareholders of Subchapter S corporations, 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 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 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 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 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.
(g) Jobs Tax Credit; Enterprise 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 Community Affairs
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 or federally
designated Foreign Trade Zone or Sub-Zone during the
taxable year;
(B) the taxpayer's total employment within the
enterprise 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 Community Affairs 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 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 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 subsection (b) 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 Community Affairs designated High Impact Business.
The credit shall be .5% of the basis for such property.
The credit shall not be available until the minimum
investments in qualified property set forth in Section
5.5 of the Illinois Enterprise Zone Act have been
satisfied 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 minimum investments shall
be taken in the taxable year in which such minimum
investments have been completed. The credit for
additional investments beyond the minimum investment by a
designated high impact business 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) 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. 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 subsection (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, a taxpayer shall be
allowed a credit against the tax imposed by subsection (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 and for shareholders of
subchapter S corporations, 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.
(k) Research and development credit.
Beginning with tax years ending after July 1, 1990, 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 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.
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.
Unless extended by law, the credit shall not include
costs incurred after December 31, 1999, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 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, and
does not mean approved eligible remediation costs that
are at any time deducted under the provisions of the
Internal Revenue Code. The credit must be claimed for
the taxable year in which Agency approval of the eligible
remediation costs is granted. In no event shall
unreimbursed eligible remediation costs include any costs
taken into account in calculating an environmental
remediation credit granted against a tax imposed under
the provisions of the Internal Revenue Code. 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 and located in a census tract that is
located in a minor civil division and place or county
that has been determined by the Department of Commerce
and Community Affairs to contain a majority of households
consisting of low and moderate income persons. 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
of 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.
(Source: P.A. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
7-18-96; 89-591, eff. 8-1-96.)
Section 15. The Environmental Protection Act is amended
by changing Sections 58, 58.2, and 58.3 and adding Sections
58.13 and 58.14 as follows:
(415 ILCS 5/58)
Sec. 58. Intent. It is the intent of this Title:
(1) To establish a risk-based system of remediation
based on protection of human health and the environment
relative to present and future uses of the site.
(2) To assure that the land use for which remedial
action was undertaken will not be modified without
consideration of the adequacy of such remedial action for
the new land use.
(3) To provide incentives to the private sector to
undertake remedial action.
(4) To establish expeditious alternatives for the
review of site investigation and remedial activities,
including a privatized review process.
(5) To assure that the resources of the Hazardous
Waste Fund are used in a manner that is protective of
human health and the environment relative to present and
future uses of the site and surrounding area.
(6) To provide assistance to units of local
government for remediation of properties contaminated or
potentially contaminated by commercial, industrial, or
other uses and to establish and provide for the
administration of the Brownfields Redevelopment Fund.
(Source: P.A. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
(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.
"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.
"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.
"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. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
(415 ILCS 5/58.3)
Sec. 58.3. Site Investigation and Remedial Activities
Program; Brownfields Redevelopment Fund.
(a) The General Assembly hereby establishes by this
Title a Site Investigation and Remedial Activities Program
for sites subject to this Title. This program shall be
administered by the Illinois Environmental Protection Agency
under this Title XVII and rules adopted by the Illinois
Pollution Control Board.
(b) (1) The General Assembly hereby creates within the
State Treasury a special fund to be known as the
Brownfields Redevelopment Fund, which shall be used and
administered by the Agency as provided in Section 58.13
of this Act and the rules adopted under that Section.
The Brownfields Redevelopment Fund ("Fund") shall contain
moneys transferred from the Response Contractors
Indemnification Fund and other moneys made available for
deposit into the Fund.
(2) The State Treasurer, ex officio, shall be the
custodian of the Fund, and the Comptroller shall direct
payments from the Fund upon vouchers properly certified
by the Agency. The Treasurer shall credit to the Fund
interest earned on moneys contained in the Fund. The
Agency shall have the authority to accept, receive, and
administer on behalf of the State any grants, gifts,
loans, reimbursements or payments for services, or other
moneys made available to the State from any source for
purposes of the Fund. Those moneys shall be deposited
into the Fund, unless otherwise required by the
Environmental Protection Act or by federal law.
(3) Pursuant to appropriation, all moneys in the
Fund shall be used by the Agency for the purposes set
forth in Section 58.13 of this Act and to cover the
Agency's costs of program development and administration
under that Section.
(Source: P.A. 89-431, eff. 12-15-95; 89-443, eff. 7-1-96.)
(415 ILCS 5/58.13 new)
Sec. 58.13. Brownfields Redevelopment Grant Program.
(a)(1) The Agency shall establish and administer a
program of grants to be known as the Brownfields
Redevelopment Grant Program to provide municipalities in
Illinois with financial assistance to be used for
coordination of activities related to brownfields
redevelopment, including but not limited to
identification of brownfields sites, site investigation
and determination of remediation objectives and related
plans and reports, and development of remedial action
plans, but not including the implementation of remedial
action plans and remedial action completion reports. The
plans and reports shall be developed in accordance with
Title XVII of this Act.
(2) Grants shall be awarded on a competitive basis
subject to availability of funding. Criteria for
awarding grants shall include, but shall not be limited
to the following:
(A) problem statement and needs assessment;
(B) community-based planning and involvement;
(C) implementation planning; and
(D) long-term benefits and sustainability.
(3) The Agency may give weight to geographic
location to enhance geographic distribution of grants
across this State.
(4) Grants shall be limited to a maximum of
$120,000 and no municipality shall receive more than one
grant under this Section.
(5) Grant amounts shall not exceed 70% of the
project amount, with the remainder to be provided by the
municipality as local matching funds.
(b) The Agency shall have the authority to enter into
any contracts or agreements that may be necessary to carry
out its duties or responsibilities under this Section. The
Agency shall have the authority to adopt rules setting forth
procedures and criteria for administering the Brownfields
Redevelopment Grant Program. The rules adopted by the Agency
may include but shall not be limited to the following:
(1) purposes for which grants are available;
(2) application periods and content of
applications;
(3) procedures and criteria for Agency review of
grant applications, grant approvals and denials, and
grantee acceptance;
(4) grant payment schedules;
(5) grantee responsibilities for work schedules,
work plans, reports, and record keeping;
(6) evaluation of grantee performance, including
but not limited to auditing and access to sites and
records;
(7) requirements applicable to contracting and
subcontracting by the grantee;
(8) penalties for noncompliance with grant
requirements and conditions, including stop-work orders,
termination of grants, and recovery of grant funds;
(9) indemnification of this State and the Agency by
the grantee; and
(10) manner of compliance with the Local Government
Professional Services Selection Act.
(415 ILCS 5/58.14 new)
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 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
Community Affairs that the site is located in an
enterprise zone and is located in a census tract that is
located in a minor civil division and place or county
that has been determined by the Department of Commerce
and Community Affairs to contain a majority of households
consisting of low and moderate income persons;
(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 (as
set forth in paragraph (i) of subsection (l) 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 the effective date of this
amendatory Act of 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. 88-45; 88-89; 88-141; 88-547, eff. 6-30-94;
88-670, eff. 12-2-94; 89-235, eff. 8-4-95; 89-519, eff.
7-18-96; 89-591, eff. 8-1-96.)
Section 15. The Response Action Contractor
Indemnification Act is amended by changing Section 5 as
follows:
(415 ILCS 100/5) (from Ch. 111 1/2, par. 7205)
Sec. 5. (a) There is hereby created the Response
Contractors Indemnification Fund. The State Treasurer, ex
officio, shall be custodian of the Fund, and the Comptroller
shall direct payments from the Fund upon vouchers properly
certified by the Attorney General in accordance with Section
4. The Treasurer shall credit interest on the Fund to the
Fund.
(b) Every State response action contract shall provide
that 5% of each payment to be made by the State under the
contract shall be paid by the State directly into the
Response Contractors Indemnification Fund rather than to the
contractor, except that when there is more than $4,000,000 in
the Fund at the beginning of a State fiscal year, State
response action contracts during that fiscal year need not
provide that 5% of each payment made under the contract be
paid into the Fund. When only a portion of a contract
relates to a remedial or response action, or to the
identification, handling, storage, treatment or disposal of a
pollutant, the contract shall provide that only that portion
is subject to this subsection.
(c) Within 30 days after the effective date of this
amendatory Act of 1997, the Comptroller shall order
transferred and the Treasurer shall transfer $1,200,000 from
the Response Contractors Indemnification Fund to the
Brownfields Redevelopment Fund. The Comptroller shall order
transferred and the Treasurer shall transfer $1,200,000 from
the Response Contractors Indemnification Fund to the
Brownfields Redevelopment Fund on the first day of fiscal
years 1999, 2000, 2001, and 2002.
(Source: P.A. 89-254, eff. 8-8-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.