Bill Amendment: IL HB2411 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: BRIMPA-DATA CENTER INVESTMENT
Status: 2021-08-20 - Public Act . . . . . . . . . 102-0427 [HB2411 Detail]
Download: Illinois-2021-HB2411-House_Amendment_003.html
Bill Title: BRIMPA-DATA CENTER INVESTMENT
Status: 2021-08-20 - Public Act . . . . . . . . . 102-0427 [HB2411 Detail]
Download: Illinois-2021-HB2411-House_Amendment_003.html
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1 | AMENDMENT TO HOUSE BILL 2411
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2 | AMENDMENT NO. ______. Amend House Bill 2411 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Department of Commerce and Economic | ||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois | ||||||
6 | is amended by changing Section 605-1025 as follows:
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7 | (20 ILCS 605/605-1025) | ||||||
8 | Sec. 605-1025. Data center investment. | ||||||
9 | (a) The Department shall issue certificates of exemption | ||||||
10 | from the Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
11 | Service Use Tax Act, and the Service Occupation Tax Act, all | ||||||
12 | locally-imposed retailers' occupation taxes administered and | ||||||
13 | collected by the Department, the Chicago non-titled Use Tax, | ||||||
14 | and a credit certification against the taxes imposed under | ||||||
15 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
16 | Tax Act to qualifying Illinois data centers. |
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1 | (b) For taxable years beginning on or after January 1, | ||||||
2 | 2019, the Department shall award credits against the taxes | ||||||
3 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
4 | Illinois Income Tax Act as provided in Section 229 of the | ||||||
5 | Illinois Income Tax Act. | ||||||
6 | (c) For purposes of this Section: | ||||||
7 | "Data center" means a facility: (1) whose primary | ||||||
8 | services are the storage, management, and processing of | ||||||
9 | digital data; and (2) that is used to house (i) computer | ||||||
10 | and network systems, including associated components such | ||||||
11 | as servers, network equipment and appliances, | ||||||
12 | telecommunications, and data storage systems, (ii) systems | ||||||
13 | for monitoring and managing infrastructure performance, | ||||||
14 | (iii) Internet-related equipment and services, (iv) data | ||||||
15 | communications connections, (v) environmental controls, | ||||||
16 | (vi) fire protection systems, and (vii) security systems | ||||||
17 | and services. | ||||||
18 | "Qualifying Illinois data center" means a new or | ||||||
19 | existing data center that: | ||||||
20 | (1) is located in the State of Illinois; | ||||||
21 | (2) in the case of an existing data center, made a | ||||||
22 | capital investment of at least $250,000,000 | ||||||
23 | collectively by the data center operator and the | ||||||
24 | tenants of the data center over the 60-month period | ||||||
25 | immediately prior to January 1, 2020 or committed to | ||||||
26 | make a capital investment of at least $250,000,000 |
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1 | over a 60-month period commencing before January 1, | ||||||
2 | 2020 and ending after January 1, 2020; or | ||||||
3 | (3) in the case of a new data center, or an | ||||||
4 | existing data center making an upgrade, makes a | ||||||
5 | capital investment of at least $250,000,000 over a | ||||||
6 | 60-month period beginning on or after January 1, 2020; | ||||||
7 | and | ||||||
8 | (4) in the case of both existing and new data | ||||||
9 | centers, results in the creation of at least 20 | ||||||
10 | full-time or full-time equivalent new jobs over a | ||||||
11 | period of 60 months by the data center operator and the | ||||||
12 | tenants of the data center, collectively, associated | ||||||
13 | with the operation or maintenance of the data center; | ||||||
14 | those jobs must have a total compensation equal to or | ||||||
15 | greater than 120% of the average wage paid to | ||||||
16 | full-time employees in the county where the data | ||||||
17 | center is located, as determined by the U.S. Bureau of | ||||||
18 | Labor Statistics; and | ||||||
19 | (5) within 2 years 90 days after being placed in | ||||||
20 | service, certifies to the Department that it is carbon | ||||||
21 | neutral or has attained certification under one or | ||||||
22 | more of the following green building standards: | ||||||
23 | (A) BREEAM for New Construction or BREEAM | ||||||
24 | In-Use; | ||||||
25 | (B) ENERGY STAR; | ||||||
26 | (C) Envision; |
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1 | (D) ISO 50001-energy management; | ||||||
2 | (E) LEED for Building Design and Construction | ||||||
3 | or LEED for Operations and Maintenance; | ||||||
4 | (F) Green Globes for New Construction or Green | ||||||
5 | Globes for Existing Buildings; | ||||||
6 | (G) UL 3223; or | ||||||
7 | (H) an equivalent program approved by the | ||||||
8 | Department of Commerce and Economic Opportunity. | ||||||
9 | "Full-time equivalent job" means a job in which the | ||||||
10 | new employee works for the owner, operator, contractor, or | ||||||
11 | tenant of a data center or for a corporation under | ||||||
12 | contract with the owner, operator or tenant of a data | ||||||
13 | center at a rate of at least 35 hours per week. An owner, | ||||||
14 | operator or tenant who employs labor or services at a | ||||||
15 | specific site or facility under contract with another may | ||||||
16 | declare one full-time, permanent job for every 1,820 man | ||||||
17 | hours worked per year under that contract. Vacations, paid | ||||||
18 | holidays, and sick time are included in this computation. | ||||||
19 | Overtime is not considered a part of regular hours. | ||||||
20 | "Qualified tangible personal property" means: | ||||||
21 | electrical systems and equipment; climate control and | ||||||
22 | chilling equipment and systems; mechanical systems and | ||||||
23 | equipment; monitoring and secure systems; emergency | ||||||
24 | generators; hardware; computers; servers; data storage | ||||||
25 | devices; network connectivity equipment; racks; cabinets; | ||||||
26 | telecommunications cabling infrastructure; raised floor |
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1 | systems; peripheral components or systems; software; | ||||||
2 | mechanical, electrical, or plumbing systems; battery | ||||||
3 | systems; cooling systems and towers; temperature control | ||||||
4 | systems; other cabling; and other data center | ||||||
5 | infrastructure equipment and systems necessary to operate | ||||||
6 | qualified tangible personal property, including fixtures; | ||||||
7 | and component parts of any of the foregoing, including | ||||||
8 | installation, maintenance, repair, refurbishment, and | ||||||
9 | replacement of qualified tangible personal property to | ||||||
10 | generate, transform, transmit, distribute, or manage | ||||||
11 | electricity necessary to operate qualified tangible | ||||||
12 | personal property; and all other tangible personal | ||||||
13 | property that is essential to the operations of a computer | ||||||
14 | data center. "Qualified tangible personal property" also | ||||||
15 | includes building materials physically incorporated in to | ||||||
16 | the qualifying data center. | ||||||
17 | To document the exemption allowed under this Section, the | ||||||
18 | retailer must obtain from the purchaser a copy of the | ||||||
19 | certificate of eligibility issued by the Department. | ||||||
20 | (d) New and existing data centers seeking a certificate of | ||||||
21 | exemption for new or existing facilities shall apply to the | ||||||
22 | Department in the manner specified by the Department. The | ||||||
23 | Department shall determine the duration of the certificate of | ||||||
24 | exemption awarded under this Act. The duration of the | ||||||
25 | certificate of exemption may not exceed 20 calendar years. The | ||||||
26 | Department and any data center seeking the exemption, |
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1 | including a data center operator on behalf of itself and its | ||||||
2 | tenants, must enter into a memorandum of understanding that at | ||||||
3 | a minimum provides: | ||||||
4 | (1) the details for determining the amount of capital | ||||||
5 | investment to be made; | ||||||
6 | (2) the number of new jobs created; | ||||||
7 | (3) the timeline for achieving the capital investment | ||||||
8 | and new job goals; | ||||||
9 | (4) the repayment obligation should those goals not be | ||||||
10 | achieved and any conditions under which repayment by the | ||||||
11 | qualifying data center or data center tenant claiming the | ||||||
12 | exemption will be required; | ||||||
13 | (5) the duration of the exemption; and | ||||||
14 | (6) other provisions as deemed necessary by the | ||||||
15 | Department. | ||||||
16 | (e) Beginning July 1, 2021, and each year thereafter, the | ||||||
17 | Department shall annually report to the Governor and the | ||||||
18 | General Assembly on the outcomes and effectiveness of Public | ||||||
19 | Act 101-31 that shall include the following: | ||||||
20 | (1) the name of each recipient business; | ||||||
21 | (2) the location of the project; | ||||||
22 | (3) the estimated value of the credit; | ||||||
23 | (4) the number of new jobs and, if applicable, | ||||||
24 | retained jobs pledged as a result of the project; and | ||||||
25 | (5) whether or not the project is located in an | ||||||
26 | underserved area. |
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1 | (f) New and existing data centers seeking a certificate of | ||||||
2 | exemption related to the rehabilitation or construction of | ||||||
3 | data centers in the State shall require the contractor and all | ||||||
4 | subcontractors to comply with the requirements of Section | ||||||
5 | 30-22 of the Illinois Procurement Code as they apply to | ||||||
6 | responsible bidders and to present satisfactory evidence of | ||||||
7 | that compliance to the Department. | ||||||
8 | (g) New and existing data centers seeking a certificate of | ||||||
9 | exemption for the rehabilitation or construction of data | ||||||
10 | centers in the State shall require the contractor to enter | ||||||
11 | into a project labor agreement approved by the Department. | ||||||
12 | (h) Any qualifying data center issued a certificate of | ||||||
13 | exemption under this Section must annually report to the | ||||||
14 | Department the total data center tax benefits that are | ||||||
15 | received by the business. Reports are due no later than May 31 | ||||||
16 | of each year and shall cover the previous calendar year. The | ||||||
17 | first report is for the 2019 calendar year and is due no later | ||||||
18 | than May 31, 2020. | ||||||
19 | To the extent that a business issued a certificate of | ||||||
20 | exemption under this Section has obtained an Enterprise Zone | ||||||
21 | Building Materials Exemption Certificate or a High Impact | ||||||
22 | Business Building Materials Exemption Certificate, no | ||||||
23 | additional reporting for those building materials exemption | ||||||
24 | benefits is required under this Section. | ||||||
25 | Failure to file a report under this subsection (h) may | ||||||
26 | result in suspension or revocation of the certificate of |
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1 | exemption. Factors to be considered in determining whether a | ||||||
2 | data center certificate of exemption shall be suspended or | ||||||
3 | revoked include, but are not limited to, prior compliance with | ||||||
4 | the reporting requirements, cooperation in discontinuing and | ||||||
5 | correcting violations, the extent of the violation, and | ||||||
6 | whether the violation was willful or inadvertent. | ||||||
7 | (i) The Department shall not issue any new certificates of | ||||||
8 | exemption under the provisions of this Section after July 1, | ||||||
9 | 2029. This sunset shall not affect any existing certificates | ||||||
10 | of exemption in effect on July 1, 2029.
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11 | (j) The Department shall adopt rules to implement and | ||||||
12 | administer this Section. | ||||||
13 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
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14 | Section 10. The Brownfields Redevelopment and Intermodal | ||||||
15 | Promotion Act is amended by changing Section 3-20 as follows:
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16 | (20 ILCS 607/3-20)
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17 | Sec. 3-20. South Suburban Brownfields Redevelopment Fund; | ||||||
18 | eligible projects. In State fiscal years 2015 through 2026 | ||||||
19 | 2021 , all moneys in the South Suburban Brownfields | ||||||
20 | Redevelopment Fund shall be held solely to fund eligible | ||||||
21 | projects undertaken pursuant to the provisions of Section 3-35 | ||||||
22 | of this Act and performed either directly by Cook County | ||||||
23 | through a development agreement with the Department, by an | ||||||
24 | entity designated by Cook County through a development |
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1 | agreement with the Department to perform specific tasks, or by | ||||||
2 | an Eligible Developer or an Eligible Employer through a | ||||||
3 | development agreement. All Eligible Projects are subject to | ||||||
4 | review and approval by the Managing Partner and by the | ||||||
5 | Department. The life span of the Fund may be extended past 2026 | ||||||
6 | by law.
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7 | (Source: P.A. 101-275, eff. 8-9-19.)
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8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
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