Bill Text: IL HB2819 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2025 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB2819 Detail]

Download: Illinois-2023-HB2819-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2819 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
20 ILCS 605/605-1056 new
30 ILCS 105/5.990 new
35 ILCS 5/211
35 ILCS 10/5-45
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2025 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.
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A BILL FOR
HB2819 LRB103 29472 HLH 55867 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1056 as follows:
(20 ILCS 605/605-1056 new)
Sec. 605-1056. Veterans' Economic Center Pilot Program.
Beginning on January 1, 2024 and continuing through December
31, 2027, the Department shall establish and implement a
Veterans' Economic Center pilot program for the purposes of
assisting veterans in finding employment and addressing the
problem of veteran homelessness. In conducting the program,
the Department shall partner with local employers in order to
better connect veterans with those employers. The Department
shall report to the Governor and the General Assembly
regarding the effectiveness of the program no later than
December 31, 2027.
This Section is repealed on January 1, 2029.
Section 7. The State Finance Act is amended by adding
Section 5.990 as follows:

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(30 ILCS 105/5.990 new)
Sec. 5.990. The Veterans' Economic Center Fund.
Section 10. The Illinois Income Tax Act is amended by
changing Section 211 as follows:
(35 ILCS 5/211)
Sec. 211. Economic Development for a Growing Economy Tax
Credit. For tax years beginning on or after January 1, 1999, a
Taxpayer who has entered into an Agreement (including a New
Construction EDGE Agreement) under the Economic Development
for a Growing Economy Tax Credit Act is entitled to a credit
against the taxes imposed under subsections (a) and (b) of
Section 201 of this Act in an amount to be determined in the
Agreement. If the Taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders 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 Department,
in cooperation with the Department of Commerce and Economic
Opportunity, shall prescribe rules to enforce and administer
the provisions of this Section. This Section is exempt from
the provisions of Section 250 of this Act.
The credit shall be subject to the conditions set forth in
the Agreement and the following limitations:
(1) The tax credit shall not exceed the Incremental

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Income Tax (as defined in Section 5-5 of the Economic
Development for a Growing Economy Tax Credit Act) with
respect to the project; additionally, the New Construction
EDGE Credit shall not exceed the New Construction EDGE
Incremental Income Tax (as defined in Section 5-5 of the
Economic Development for a Growing Economy Tax Credit
Act).
(2) The amount of the credit allowed during the tax
year plus the sum of all amounts allowed in prior years
shall not exceed 100% of the aggregate amount expended by
the Taxpayer during all prior tax years on approved costs
defined by Agreement.
(3) The amount of the credit shall be determined on an
annual basis. Except as applied in a carryover year
pursuant to Section 211(4) of this Act, the credit may not
be applied against any State income tax liability in more
than 10 taxable years; provided, however, that (i) an
eligible business certified by the Department of Commerce
and Economic Opportunity under the Corporate Headquarters
Relocation Act may not apply the credit against any of its
State income tax liability in more than 15 taxable years
and (ii) credits allowed to that eligible business are
subject to the conditions and requirements set forth in
Sections 5-35 and 5-45 of the Economic Development for a
Growing Economy Tax Credit Act and Section 5-51 as
applicable to New Construction EDGE Credits.

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(4) The credit may not exceed the amount of taxes
imposed pursuant to subsections (a) and (b) of Section 201
of this Act. Any credit that is unused in the year the
credit is computed may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit year, except as otherwise provided under
paragraph (4.5) of this Section. The credit shall be
applied to the earliest year for which there is a tax
liability. If there are credits from more than one tax
year that are available to offset a liability, the earlier
credit shall be applied first.
(4.5) The Department of Commerce and Economic
Opportunity, in consultation with the Department of
Revenue, shall adopt rules to extend the sunset of any
earned, existing, or unused credit as provided for in
Section 605-1055 of the Department of Commerce and
Economic Opportunity Law of the Civil Administrative Code
of Illinois.
(5) No credit shall be allowed with respect to any
Agreement for any taxable year ending after the
Noncompliance Date. Upon receiving notification by the
Department of Commerce and Economic Opportunity of the
noncompliance of a Taxpayer with an Agreement, the
Department shall notify the Taxpayer that no credit is
allowed with respect to that Agreement for any taxable
year ending after the Noncompliance Date, as stated in

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such notification. If any credit has been allowed with
respect to an Agreement for a taxable year ending after
the Noncompliance Date for that Agreement, any refund paid
to the Taxpayer for that taxable year shall, to the extent
of that credit allowed, be an erroneous refund within the
meaning of Section 912 of this Act.
If, during any taxable year, a taxpayer ceases
operations at a project location that is the subject of
that Agreement with the intent to terminate operations in
the State, the tax imposed under subsections (a) and (b)
of Section 201 of this Act for such taxable year shall be
increased by the amount of any credit allowed under the
Agreement for that project location prior to the date the
taxpayer ceases operations.
(6) For purposes of this Section, the terms
"Agreement", "Incremental Income Tax", "New Construction
EDGE Agreement", "New Construction EDGE Credit", "New
Construction EDGE Incremental Income Tax", and
"Noncompliance Date" have the same meaning as when used in
the Economic Development for a Growing Economy Tax Credit
Act.
(7) Agreements entered into on or after the effective
date of this amendatory Act of the 103rd General Assembly
are subject to the limitations set forth in subsection (c)
of Section 5-45 of the Economic Development for a Growing
Economy Tax Credit Act.

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(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
102-40, eff. 6-25-21; 102-687, eff. 12-17-21.)
Section 15. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-45 as follows:
(35 ILCS 10/5-45)
Sec. 5-45. Amount and duration of the credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 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

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otherwise be available under this Act.
(c) Nothing in this Section shall prevent the Department,
in consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits a taxpayer may be in possession of, as
provided for in Section 605-1070 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois, notwithstanding the carry-forward provisions
pursuant to paragraph (4) of Section 211 of the Illinois
Income Tax Act.
(d) Notwithstanding any other provision of law, a taxpayer
who receives a credit under this Act for a taxable year ending
on or before December 31, 2025 pursuant an Agreement entered
into on or after the effective date of this amendatory Act of
the 103rd General Assembly may apply only 98% of that credit
amount against his or her State income tax liability in any
taxable year. By July 1, 2023, and by July 1 of each calendar
year thereafter through calendar year 2026, the Department
shall certify to the Comptroller an amount equal to 2% of the
total credits awarded under this Section pursuant to an
Agreement entered into on or after the effective date of this
amendatory Act of the 103rd General Assembly for a taxable
year ending during the previous calendar year. Immediately
upon receipt of the certification, the State Comptroller shall
direct and the State Treasurer shall transfer the certified
amount from the General Revenue Fund into the Veterans'

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Economic Center Fund, a special fund created in the State
treasury. Moneys in the Veterans' Economic Center Fund shall
be used by the Department of Commerce and Economic Opportunity
to administer the Veterans' Economic Center pilot program
established under Section 605-1056 of the Department of
Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois.
(Source: P.A. 102-16, eff. 6-17-21; 102-813, eff. 5-13-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.