Bill Text: IL HB1336 | 2013-2014 | 98th General Assembly | Amended

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Bill Title: Amends the Illinois Economic Development Board Act and the Economic Development for a Growing Economy Tax Credit Act to provide that EDGE Agreements are subject to the approval of the Illinois Economic Development Board (instead of the Illinois Business Investment Committee). Provides that the Illinois Business Investment Committee is dissolved on the effective date of the amendatory Act and all duties and responsibilities of the Committee shall be assumed by the Illinois Economic Development Board. Sets forth the membership of the Illinois Economic Development Board. Provides that the Director of Revenue and the Auditor General shall also serve as ex officio members of the Board. Sets forth the powers of the Board. Removes provisions requiring Applicants to make certain capital investments. Changes the duration of the credit from 10 years to 5 years. Provides that the credit may not exceed the lesser of the incremental income tax attributable to the project or $10,000 per New Employee. Provides that no more than $100,000,000 in credits may be awarded in State Fiscal Year 2014 or any State fiscal year thereafter. Makes other changes.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB1336 Detail]

Download: Illinois-2013-HB1336-Amended.html

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Rep. Jack D. Franks

Filed: 3/12/2013

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AMENDMENT TO HOUSE BILL 1336
AMENDMENT NO. ______. Amend House Bill 1336 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Economic Development Board Act is
amended by changing Sections 3 and 4 as follows:
(20 ILCS 3965/3) (from Ch. 127, par. 3953)
Sec. 3. Illinois Economic Development Board; composition.
The board shall be composed of citizens from both the private
and public sectors who are actively engaged in organizations
and businesses that support economic expansion, industry
enhancement and job creation. The board shall be composed of 9
members appointed by the Governor, with the advice and consent
of the Senate. Each member shall have experience in accounting
or finance. Members shall be appointed so that no more than 5
members are affiliated with the same political party. the
following persons:

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(a) the Governor or his or her designee;
(b) four members of the General Assembly, one each
appointed by the President of the Senate, the Speaker of
the House of Representatives, and the minority leaders of
the Senate and House of Representatives;
(c) 20 members appointed by the Governor including
representatives of small business, minority owned
companies, women owned companies, manufacturing, economic
development professionals, and citizens at large.
(d) (blank);
(e) (blank);
(f) (blank);
(g) (blank);
(h) (blank);
(i) (blank);
(j) (blank);
(k) (blank);
(l) (blank);
(m) (blank).
The Director of Commerce and Economic Opportunity, the
Director of Revenue, and the State Treasurer shall serve as
ex-officio members an ex officio member of the board.
The Governor shall appoint the members of the board
specified in subsection (c) of this Section, subject to the
advice and consent of the Senate, within 30 days after the
effective date of this amendatory Act of the 98th General

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Assembly Act. The first meeting of the board shall occur within
60 days after the effective date of this amendatory Act of the
98th General Assembly Act.
The Governor shall appoint a chairperson and a vice
chairperson of the board. Members shall serve 8-year terms.
2-year terms. The position of a legislative member shall become
vacant if the member ceases to be a member of the General
Assembly. A vacancy in a board position shall be filled by the
original appointing authority.
The board shall include representation from each of the
State's geographic areas.
The board shall meet quarterly or at the call of the chair
and shall create subcommittees as needed to deal with specific
issues and concerns. Members shall serve without compensation
but may be reimbursed for expenses.
(Source: P.A. 94-793, eff. 5-19-06; 95-331, eff. 8-21-07.)
(20 ILCS 3965/4) (from Ch. 127, par. 3954)
Sec. 4. The board has the following responsibilities and
powers:
(a) (blank); to secure and encourage substantial private
sector, community and citizen support in the analysis of
economic development opportunities and development of specific
recommendations for economic growth;
(b) (blank); to assist the Department's research efforts to
identify and analyze key businesses and industries to determine

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their potential for expansion, diversification and production
of value-added goods;
(c) (blank); to propose an appropriate State role in new
product development, venture capital formation and research
and development;
(d) to evaluate the performance of existing State economic
development efforts for consistency, effectiveness and
coordination, as well as for their effect on job creation, and
to evaluate the long-term benefits to the State of these
efforts;
(e) (blank); to propose, along with other State, local and
private groups, new methods to increase public and private
partnerships to foster economic development efforts;
(f) (blank); assist the Department's efforts to develop a
long-term economic development strategy based on consensus
goals and principles, an in-depth analysis of market
opportunities, private sector support and investment, and
specific private and public economic development measures that
have a substantial potential to increase employment;
(g) (blank); assist the Department's efforts to study the
key components of the State's business climate as they relate
to the long-term development strategy including, but not
limited to, education and training, energy, existing
environmental conditions, research and development, capital,
land, transportation, advanced communications, taxes and
regulations with an analysis of their linkages to the State's

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economy;
(h) (blank); to review the various economic development
policy recommendations made by other agencies or organizations
and recommend to the Governor and legislature those strategies,
policies and programs it deems to be in the best interest of
the State by January 1, 1991, and thereafter by January 1 of
each year; and
(i) (blank); to make specific recommendations for the
establishment of public-private cooperative efforts in
economic development and State-local cooperative efforts,
including, but not limited to, the need for establishing formal
working relationships, whether by contract or otherwise, for
purposes of engaging in joint, cooperative economic
development activities.
(j) to approve or reject applications for credits under the
Economic Development for a Growing Economy Tax Credit Act; and
(k) to evaluate whether or not credits awarded under the
Economic Development for a Growing Economy Tax Credit Act are
meeting their public policy objectives, and to make
recommendations to the Department, the Governor, and the
General Assembly for improvements to the Economic Development
for a Growing Economy Tax Credit program.
(Source: P.A. 86-1430.)
Section 10. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Sections 5-5, 5-10, 5-20,

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5-25, 5-40, 5-45, 5-50, and 5-70 as follows:
(35 ILCS 10/5-5)
Sec. 5-5. Definitions. As used in this Act:
"Agreement" means the Agreement between a Taxpayer and the
Department under the provisions of Section 5-50 of this Act.
"Applicant" means a Taxpayer that is operating a business
located or that the Taxpayer plans to locate within the State
of Illinois and that is engaged in interstate or intrastate
commerce for the purpose of manufacturing, processing,
assembling, warehousing, or distributing products, conducting
research and development, providing tourism services,
providing professional services, or providing services in
interstate commerce, office industries, or agricultural
processing, but excluding retail, retail food, or health, or
professional services. "Applicant" does not include a Taxpayer
who closes or substantially reduces an operation at one
location in the State and relocates substantially the same
operation to another location in the State. This does not
prohibit a Taxpayer from expanding its operations at another
location in the State, provided that existing operations of a
similar nature located within the State are not closed or
substantially reduced. This also does not prohibit a Taxpayer
from moving its operations from one location in the State to
another location in the State for the purpose of expanding the
operation provided that the Department determines that

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expansion cannot reasonably be accommodated within the
municipality in which the business is located, or in the case
of a business located in an incorporated area of the county,
within the county in which the business is located, after
conferring with the chief elected official of the municipality
or county and taking into consideration any evidence offered by
the municipality or county regarding the ability to accommodate
expansion within the municipality or county.
"Board" means the Illinois Economic Development Board
created under Section 2 of the Illinois Economic Development
Board Act.
"Committee" means the Illinois Business Investment
Committee created under Section 5-25 of this Act within the
Illinois Economic Development Board.
"Credit" means the amount agreed to between the Department
and Applicant under this Act, but not to exceed the Incremental
Income Tax attributable to the Applicant's project or $10,000
per New Employee, whichever is less.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Full-time Employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An

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individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the Applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to Applicant.
"Incremental Income Tax" means the total amount withheld
during the taxable year from the compensation of New Employees
under Article 7 of the Illinois Income Tax Act arising from
employment at a project that is the subject of an Agreement.
"New Employee" means:
(a) A Full-time Employee first employed by a Taxpayer
in the project that is the subject of an Agreement and who
is hired after the Taxpayer enters into the tax credit
Agreement.
(b) The term "New Employee" does not include:
(1) an employee of the Taxpayer who performs a job
that was previously performed by another employee, if
that job existed for at least 6 months before hiring
the employee;
(2) an employee of the Taxpayer who was previously
employed in Illinois by a Related Member of the
Taxpayer and whose employment was shifted to the
Taxpayer after the Taxpayer entered into the tax credit
Agreement; or
(3) a child, grandchild, parent, or spouse, other

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than a spouse who is legally separated from the
individual, of any individual who has a direct or an
indirect ownership interest of at least 5% in the
profits, capital, or value of the Taxpayer.
(c) Notwithstanding paragraph (1) of subsection (b),
an employee may be considered a New Employee under the
Agreement if the employee performs a job that was
previously performed by an employee who was:
(1) treated under the Agreement as a New Employee;
and
(2) promoted by the Taxpayer to another job.
(d) Notwithstanding subsection (a), the Department may
award Credit to an Applicant with respect to an employee
hired prior to the date of the Agreement if:
(1) the Applicant is in receipt of a letter from
the Department stating an intent to enter into a credit
Agreement;
(2) the letter described in paragraph (1) is issued
by the Department not later than 15 days after the
effective date of this Act; and
(3) the employee was hired after the date the
letter described in paragraph (1) was issued.
"Noncompliance Date" means, in the case of a Taxpayer that
is not complying with the requirements of the Agreement or the
provisions of this Act, the day following the last date upon
which the Taxpayer was in compliance with the requirements of

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the Agreement and the provisions of this Act, as determined by
the Director, pursuant to Section 5-65.
"Pass Through Entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Professional Employer Organization" (PEO) means an
employee leasing company, as defined in Section 206.1(A)(2) of
the Illinois Unemployment Insurance Act.
"Related Member" means a person that, with respect to the
Taxpayer during any portion of the taxable year, is any one of
the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family (as defined in
Section 318 of the Internal Revenue Code) own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the Taxpayer's
outstanding stock.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
Taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the

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party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the Taxpayer
owns directly, indirectly, beneficially, or constructively
at least 50% of the value of the corporation's outstanding
stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the Taxpayer.
(5) A person to or from whom there is attribution of
stock ownership in accordance with Section 1563(e) of the
Internal Revenue Code, except, for purposes of determining
whether a person is a Related Member under this paragraph,
20% shall be substituted for 5% wherever 5% appears in
Section 1563(e) of the Internal Revenue Code.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois Income Tax liability.
(Source: P.A. 94-793, eff. 5-19-06; 95-375, eff. 8-23-07.)
(35 ILCS 10/5-10)
Sec. 5-10. Powers of the Department. The Department, in
addition to those powers granted under the Civil Administrative

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Code of Illinois, is granted and shall have all the powers
necessary or convenient to carry out and effectuate the
purposes and provisions of this Act, including, but not limited
to, power and authority to:
(a) Promulgate procedures, rules, or regulations deemed
necessary and appropriate for the administration of the
programs; establish forms for applications, notifications,
contracts, or any other agreements; and accept applications at
any time during the year.
(b) Provide and assist Taxpayers pursuant to the provisions
of this Act, and cooperate with Taxpayers that are parties to
Agreements to promote, foster, and support economic
development, capital investment, and job creation or retention
within the State.
(c) Enter into agreements and memoranda of understanding
for participation of and engage in cooperation with agencies of
the federal government, local units of government,
universities, research foundations or institutions, regional
economic development corporations, or other organizations for
the purposes of this Act.
(d) Gather information and conduct inquiries, in the manner
and by the methods as it deems desirable, including without
limitation, gathering information with respect to Applicants
for the purpose of making any designations or certifications
necessary or desirable or to gather information to assist the
Board Committee with any recommendation or guidance in the

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furtherance of the purposes of this Act.
(e) Establish, negotiate and effectuate any term,
agreement or other document with any person, necessary or
appropriate to accomplish the purposes of this Act; and to
consent, subject to the provisions of any Agreement with
another party, to the modification or restructuring of any
Agreement to which the Department is a party, provided that all
Agreements entered into on or after the effective date of this
amendatory Act of the 98th General Assembly, and all
modifications to or restructuring of Agreements occurring on or
after the effective date of this amendatory Act of the 98th
General Assembly, require the approval of the Board prior to
implementation or continuing implementation.
(f) Fix, determine, charge, and collect any premiums, fees,
charges, costs, and expenses from Applicants, including,
without limitation, any application fees, commitment fees,
program fees, financing charges, or publication fees as deemed
appropriate to pay expenses necessary or incident to the
administration, staffing, or operation in connection with the
Department's or Board's Committee's activities under this Act,
or for preparation, implementation, and enforcement of the
terms of the Agreement, or for consultation, advisory and legal
fees, and other costs; however, all fees and expenses incident
thereto shall be the responsibility of the Applicant.
(g) Provide for sufficient personnel to permit
administration, staffing, operation, and related support

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required to adequately discharge its duties and
responsibilities described in this Act from funds made
available through charges to Applicants or from funds as may be
appropriated by the General Assembly for the administration of
this Act.
(h) Require Applicants, upon written request, to issue any
necessary authorization to the appropriate federal, state, or
local authority for the release of information concerning a
project being considered under the provisions of this Act, with
the information requested to include, but not be limited to,
financial reports, returns, or records relating to the
Taxpayers' or its project.
(i) Require that a Taxpayer shall at all times keep proper
books of record and account in accordance with generally
accepted accounting principles consistently applied, with the
books, records, or papers related to the Agreement in the
custody or control of the Taxpayer open for reasonable
Department inspection and audits, and including, without
limitation, the making of copies of the books, records, or
papers, and the inspection or appraisal of any of the Taxpayer
or project assets.
(j) Take whatever actions are necessary or appropriate to
protect the State's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance or participation required
under this Act, including the power to sell, dispose, lease, or

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rent, upon terms and conditions determined by the Director to
be appropriate, real or personal property that the Department
may receive as a result of these actions.
(Source: P.A. 91-476, eff. 8-11-99.)
(35 ILCS 10/5-20)
Sec. 5-20. Application for a project to create and retain
new jobs.
(a) Any Taxpayer proposing a project located or planned to
be located in Illinois may request consideration for
designation of its project, by formal written letter of request
or by formal application to the Department, in which the
Applicant states its intent to make at least a specified level
of investment and intends to hire or retain a specified number
of full-time employees at a designated location in Illinois.
The Department shall prepare a standard, formal, written
application form for all Applicants. All Applicants who apply
for Credits under this Act on or after the effective date of
this amendatory Act of the 98th General Assembly shall complete
that application. As circumstances require, the Department may
require a formal application from an Applicant and a formal
letter of request for assistance.
(b) In order to qualify for Credits under this Act, an
Applicant's project must employ at least 25 New Employees
within the State as a direct result of the project, except that
(i) if the Applicant has 100 or fewer employees, then the

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Applicant must employ at least 5 New Employees within the State
as a direct result of the project, and (ii) if the Department
and the Board determine that the project will provide a
substantial economic benefit to the State, then the Applicant
may employ fewer than 25 New Employees within the State. If an
Applicant's project employs fewer than 25 New Employees under
item (ii) of this subsection (b), then the Department and the
Board must expressly specify the minimum number of New
Employees that the Applicant is required to employ. If, in any
taxable year during which an Agreement is in effect, the total
number of employees employed by the Taxpayer in Illinois is
less than the total number of employees employed the Taxpayer
in Illinois during the previous taxable year, the Taxpayer
shall be deemed to be in noncompliance with the Agreement. :
(1) involve an investment of at least $5,000,000 in
capital improvements to be placed in service and to employ
at least 25 New Employees within the State as a direct
result of the project;
(2) involve an investment of at least an amount (to be
expressly specified by the Department and the Committee) in
capital improvements to be placed in service and will
employ at least an amount (to be expressly specified by the
Department and the Committee) of New Employees within the
State, provided that the Department and the Committee have
determined that the project will provide a substantial
economic benefit to the State; or

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(3) if the applicant has 100 or fewer employees,
involve an investment of at least $1,000,000 in capital
improvements to be placed in service and to employ at least
5 New Employees within the State as a direct result of the
project.
(c) After receipt of an application, the Department may
enter into an Agreement with the Applicant if the application
is accepted in accordance with Section 5-25 and the Agreement
is approved by the Board.
(Source: P.A. 93-882, eff. 1-1-05.)
(35 ILCS 10/5-25)
Sec. 5-25. Review of Application.
(a) In addition to those duties granted under the Illinois
Economic Development Board Act, the Illinois Economic
Development Board shall form a Business Investment Committee
for the purpose of making recommendations for applications. At
the request of the Board, the Director of Commerce and Economic
Opportunity or his or her designee, the Director of the
Governor's Office of Management and Budget or his or her
designee, the Director of Revenue or his or her designee, the
Director of Employment Security or his or her designee, and an
elected official of the affected locality, such as the chair of
the county board or the mayor, may serve as members of the
Committee to assist with its analysis and deliberations. The
Business Investment Committee shall be dissolved on the

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effective date of this amendatory Act of the 98th General
Assembly, and the duties and responsibilities of the Committee
shall be assumed by the Board.
(b) At the Department's request, the Board Committee shall
convene, make inquiries, and conduct studies in the manner and
by the methods as it deems desirable, review information with
respect to Applicants, and make recommendations for projects to
benefit the State. In making its recommendation that an
Applicant's application for Credit should or should not be
accepted, which shall occur within a reasonable time frame as
determined by the nature of the application, the Board
Committee shall determine that all the following conditions
exist:
(1) The Applicant Applicant's project intends, as
required by subsection (b) of Section 5-20 to make the
required investment in the State and intends to hire the
required number of New Employees in Illinois as a result of
that project.
(2) The Applicant's project is economically sound and
will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthen the
economy of Illinois.
(3) That, if not for the Credit, the project would not
occur in Illinois, which may be demonstrated by any means
including, but not limited to, evidence the Applicant has
multi-state location options and could reasonably and

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efficiently locate outside of the State, or demonstration
that at least one other state is being considered for the
project, or evidence the receipt of the Credit is a major
factor in the Applicant's decision and that without the
Credit, the Applicant likely would not create new jobs in
Illinois, or demonstration that receiving the Credit is
essential to the Applicant's decision to create or retain
new jobs in the State.
(4) A cost differential is identified, using best
available data, in the projected costs for the Applicant's
project compared to the costs in the competing state,
including the impact of the competing state's incentive
programs. The competing state's incentive programs shall
include state, local, private, and federal funds
available.
(5) The political subdivisions affected by the project
have committed local incentives with respect to the
project, considering local ability to assist.
(6) Awarding the Credit will result in an overall
positive fiscal impact to the State, as certified by the
Board Committee using the best available data.
(7) The Credit is not prohibited by Section 5-35 of
this Act.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 10/5-40)

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Sec. 5-40. Determination of Amount of the Credit. In
determining the amount of the Credit that should be awarded,
the Board Committee shall provide guidance on, and the
Department shall take into consideration, the following
factors:
(1) The number and location of jobs created and
retained in relation to the economy of the county where the
projected investment is to occur.
(2) The potential impact on the economy of Illinois.
(3) The magnitude of the cost differential between
Illinois and the competing state.
(4) The incremental payroll attributable to the
project.
(5) (Blank). The capital investment attributable to
the project.
(6) The amount of the average wage and benefits paid by
the Applicant in relation to the wage and benefits of the
area of the project.
(7) The costs to Illinois and the affected political
subdivisions with respect to the project.
(8) The financial assistance that is otherwise
provided by Illinois and the affected political
subdivisions.
(9) Whether the Applicant's proposed credit per job is
lower or higher than other past credits awarded.
(10) Whether the Applicant's proposed credit per job is

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lower or higher than other Applicants.
(Source: P.A. 91-476, eff. 8-11-99.)
(35 ILCS 10/5-45)
Sec. 5-45. Amount and duration of the credit.
(a) Subject to the approval of the Board, the The
Department shall determine the amount and duration of the
credit awarded under this Act. The duration of the credit may
not exceed 5 10 taxable years. The credit may be stated as a
percentage of the Incremental Income Tax attributable to the
applicant's project and may include a fixed dollar limitation.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year pursuant to Section
211(4) of the Illinois Income Tax Act, the credit may be
applied against the State income tax liability in more than 10
taxable years but not in more than 15 taxable years for an
eligible business that (i) qualifies under this Act and the
Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame specified
by the Department of Commerce and Economic Opportunity under
that Act, and (ii) applies against its State income tax
liability, during the entire 15-year period, no more than 60%
of the maximum credit per year that would otherwise be
available under this Act.
(c) Notwithstanding any other provision of law, no more
than $100,000,000 in credits may be awarded under this Act in

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State Fiscal Year 2014. In each State fiscal year thereafter,
the total amount of credits that may be awarded under this Act
shall be increased by the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers, as issued by the
United States Department of Labor, Bureau of Labor Statistics,
during the 12-month calendar year immediately preceding that
State fiscal year. This limitation does not apply to amounts
that are carried forward under Section 211 of the Illinois
Income Tax Act.
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 10/5-50)
Sec. 5-50. Contents of Agreements with Applicants. The
Department shall enter into an Agreement with an Applicant that
is awarded a Credit under this Act. The Agreement must include
all of the following:
(1) A detailed description of the project that is the
subject of the Agreement, including the location and amount
of the investment and the number of jobs created or
retained.
(2) The duration of the Credit and the first taxable
year for which the Credit may be claimed.
(3) The Credit amount that will be allowed for each
taxable year.
(4) A requirement that the Taxpayer shall maintain
operations at the project location that shall be stated as

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a minimum number of years not to exceed 5 10.
(5) A specific method for determining the number of New
Employees employed during a taxable year.
(6) A requirement that the Taxpayer shall annually
report to the Department the number of New Employees, the
Incremental Income Tax withheld in connection with the New
Employees, and any other information the Director needs to
perform the Director's duties under this Act.
(7) A requirement that the Director is authorized to
verify with the appropriate State agencies the amounts
reported under paragraph (6), and after doing so shall
issue a certificate to the Taxpayer stating that the
amounts have been verified.
(8) A requirement that the Taxpayer shall provide
written notification to the Director not more than 30 days
after the Taxpayer makes or receives a proposal that would
transfer the Taxpayer's State tax liability obligations to
a successor Taxpayer.
(9) A detailed description of the number of New
Employees to be hired, and the occupation and payroll of
the full-time jobs to be created or retained as a result of
the project.
(10) (Blank). The minimum investment the business
enterprise will make in capital improvements, the time
period for placing the property in service, and the
designated location in Illinois for the investment.

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(11) A requirement that the Taxpayer shall provide
written notification to the Director and the Board
Committee not more than 30 days after the Taxpayer
determines that the minimum job creation or retention,
employment payroll, or investment, if applicable, no
longer is being or will be achieved or maintained as set
forth in the terms and conditions of the Agreement.
(12) A provision that, if the total number of New
Employees falls below a specified level, the allowance of
Credit shall be suspended until the number of New Employees
equals or exceeds the Agreement amount.
(13) A detailed description of the items for which the
costs incurred by the Taxpayer will be included in the
limitation on the Credit provided in Section 5-30.
(13.5) A provision that, if the Taxpayer never meets
either the investment or job creation and retention
requirements specified in the Agreement during the entire
5-year period beginning on the first day of the first
taxable year in which the Agreement is executed and ending
on the last day of the fifth taxable year after the
Agreement is executed, then the Agreement is automatically
terminated on the last day of the fifth taxable year after
the Agreement is executed and the Taxpayer is not entitled
to the award of any credits for any of that 5-year period.
(14) Any other performance conditions or contract
provisions as the Department determines are appropriate.

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The Department shall post on its website the terms of each
Agreement entered into under this Act on or after the effective
date of this amendatory Act of the 97th General Assembly.
Any Agreement entered into on or after the effective date
of this amendatory Act of the 98th General Assembly is subject
to the approval of the Board. Any modifications to an existing
Agreement that take effect on or after the effective date of
this amendatory Act of the 98th General Assembly are subject to
the approval of the Board. The Department must forward any
proposed Agreements or modifications to the Board within 15
days after the terms of the Agreement or modification are
finalized.
(Source: P.A. 97-2, eff. 5-6-11; 97-749, eff. 7-6-12.)
(35 ILCS 10/5-70)
Sec. 5-70. Annual report. On or before July 1 each year,
the Board Committee shall submit a report to the Department on
the tax credit program under this Act to the Governor and the
General Assembly. The report shall include information on the
number of Agreements that were entered into under this Act
during the preceding calendar year, a description of the
project that is the subject of each Agreement, an update on the
status of projects under Agreements entered into before the
preceding calendar year, and the sum of the Credits awarded
under this Act. A copy of the report shall be delivered to the
Governor and to each member of the General Assembly and shall

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be posted on the Department's website.
(Source: P.A. 91-476, eff. 8-11-99.)".