Bill Text: IL HB3373 | 2019-2020 | 101st General Assembly | Introduced

---

Bill Title: Provides that the Act may be referred to as the Blue Collar Jobs Act. Amends the Illinois Enterprise Zone Act. Creates a High Impact Business construction jobs credit and an Enterprise Zone construction jobs credit against the taxpayer's Illinois income taxes based on the incremental income tax attributable to laborers or workers employed at certain construction sites located in Enterprise Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Creates a New Construction EDGE Credit based on the incremental income tax attributable to laborers or workers employed at construction sites associated with EDGE projects. Amends the River Edge Redevelopment Zone Act. Creates a River Edge construction jobs credit based on the incremental income tax attributable to laborers or workers employed at certain construction sites in a River Edge Redevelopment Zone. Requires contractors and subcontractors associated with projects that receive credits under the amendatory Act to file certified payroll information with the Department of Labor and the Department of Commerce and Economic Opportunity.

Spectrum: Partisan Bill (Republican 27-0)

Status: (Introduced - Dead) 2019-03-29 - Rule 19(a) / Re-referred to Rules Committee [HB3373 Detail]

Download: Illinois-2019-HB3373-Introduced.html

---

101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3373 Introduced , by Rep. Keith R. Wheeler SYNOPSIS AS INTRODUCED:
20 ILCS 655/5.5 from Ch. 67 1/2, par. 609.1
20 ILCS 655/13 new
35 ILCS 5/201 from Ch. 120, par. 2-201
35 ILCS 5/211
35 ILCS 5/221
35 ILCS 10/5-5
35 ILCS 10/5-51 new
35 ILCS 10/5-56 new
65 ILCS 115/10-3
65 ILCS 115/10-10.3 new
65 ILCS 115/10-10.4 new
Provides that the Act may be referred to as the Blue Collar Jobs Act. Amends the Illinois Enterprise Zone Act. Creates a High Impact Business construction jobs credit and an Enterprise Zone construction jobs credit against the taxpayer's Illinois income taxes based on the incremental income tax attributable to laborers or workers employed at certain construction sites located in Enterprise Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Creates a New Construction EDGE Credit based on the incremental income tax attributable to laborers or workers employed at construction sites associated with EDGE projects. Amends the River Edge Redevelopment Zone Act. Creates a River Edge construction jobs credit based on the incremental income tax attributable to laborers or workers employed at certain construction sites in a River Edge Redevelopment Zone. Requires contractors and subcontractors associated with projects that receive credits under the amendatory Act to file certified payroll information with the Department of Labor and the Department of Commerce and Economic Opportunity.
LRB101 11040 HLH 56243 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB3373 LRB101 11040 HLH 56243 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. This Act may be referred to as the Blue Collar
Jobs Act.
Section 5. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 and by adding Section 13 as follows:
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth and expansion of the
private sector through large scale investment and development
projects, the Department is authorized to receive and approve
applications for the designation of "High Impact Businesses" in
Illinois subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act;
(3) the business intends to do one or more of the
following:

HB3373 - 2 - LRB101 11040 HLH 56243 b
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create 500
full-time equivalent jobs at a designated location in
Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in
Illinois. The business must certify in writing that the
investments would not be placed in service in qualified
property and the job creation or job retention would
not occur without the tax credits and exemptions set
forth in subsection (b) of this Section. The terms
"placed in service" and "qualified property" have the
same meanings as described in subsection (h) of Section
201 of the Illinois Income Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly-constructed
electric generation plant or a newly-constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner

HB3373 - 3 - LRB101 11040 HLH 56243 b
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of at
least 1,000 megawatts for all new units at one site if
it uses natural gas as its primary fuel and foundation
construction of the facility is commenced on or before
December 31, 2004, or shall have an aggregate rated
generating capacity of at least 400 megawatts for all
new units at one site if it uses coal or gases derived
from coal as its primary fuel and shall support the
creation of at least 150 new Illinois coal mining jobs,
or (ii) shall be funded through a federal Department of
Energy grant before December 31, 2010 and shall support
the creation of Illinois coal-mining jobs, or (iii)
shall use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal-mining jobs. The
business must certify in writing that the investments
necessary to establish a new electric generating
facility would not be placed in service and the job
creation in the case of a coal-fueled plant would not
occur without the tax credits and exemptions set forth
in subsection (b-5) of this Section. The term "placed
in service" has the same meaning as described in

HB3373 - 4 - LRB101 11040 HLH 56243 b
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol, and
nitrogen fertilizer), that supports the creation or
retention of Illinois coal-mining jobs, and that
qualifies for financial assistance from the Department
before December 31, 2010. A new gasification facility
does not include a pilot project located within
Jefferson County or within a county adjacent to
Jefferson County for synthetic natural gas from coal;
or
(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of 150
new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is

HB3373 - 5 - LRB101 11040 HLH 56243 b
utilized as the predominant source for a new electric
generating facility. The business must certify in
writing that the investments necessary to establish a
new, expanded, or reopened coal mine would not be
placed in service and the job creation would not occur
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of delivery
and that transmit a majority of the electricity
generated by a new electric generating facility
designated as a High Impact Business in accordance with
this Section. The business must certify in writing that
the investments necessary to construct new
transmission facilities or upgrade existing
transmission facilities would not be placed in service

HB3373 - 6 - LRB101 11040 HLH 56243 b
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power facility"
means a newly constructed electric generation
facility, or a newly constructed expansion of an
existing electric generation facility, placed in
service on or after July 1, 2009, that generates
electricity using wind energy devices, and such
facility shall be deemed to include all associated
transmission lines, substations, and other equipment
related to the generation of electricity from wind
energy devices. For purposes of this Section, "wind
energy device" means any device, with a nameplate
capacity of at least 0.5 megawatts, that is used in the
process of converting kinetic energy from the wind to
generate electricity; or
(F) the business commits to (i) make a minimum
investment of $500,000,000, which will be placed in
service in a qualified property, (ii) create 125
full-time equivalent jobs at a designated location in
Illinois, (iii) establish a fertilizer plant at a

HB3373 - 7 - LRB101 11040 HLH 56243 b
designated location in Illinois that complies with the
set-back standards as described in Table 1: Initial
Isolation and Protective Action Distances in the 2012
Emergency Response Guidebook published by the United
States Department of Transportation, (iv) pay a
prevailing wage for employees at that location who are
engaged in construction activities, and (v) secure an
appropriate level of general liability insurance to
protect against catastrophic failure of the fertilizer
plant or any of its constituent systems; in addition,
the business must agree to enter into a construction
project labor agreement including provisions
establishing wages, benefits, and other compensation
for employees performing work under the project labor
agreement at that location; for the purposes of this
Section, "fertilizer plant" means a newly constructed
or upgraded plant utilizing gas used in the production
of anhydrous ammonia and downstream nitrogen
fertilizer products for resale; for the purposes of
this Section, "prevailing wage" means the hourly cash
wages plus fringe benefits for training and
apprenticeship programs approved by the U.S.
Department of Labor, Bureau of Apprenticeship and
Training, health and welfare, insurance, vacations and
pensions paid generally, in the locality in which the
work is being performed, to employees engaged in work

HB3373 - 8 - LRB101 11040 HLH 56243 b
of a similar character on public works; this paragraph
(F) applies only to businesses that submit an
application to the Department within 60 days after the
effective date of this amendatory Act of the 98th
General Assembly; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of the
Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall qualify
for the credits and exemptions described in the following Acts:
Section 9-222 and Section 9-222.1A of the Public Utilities Act,
subsection (h) of Section 201 of the Illinois Income Tax Act,
and Section 1d of the Retailers' Occupation Tax Act; provided
that these credits and exemptions described in these Acts shall
not be authorized until the minimum investments set forth in
subdivision (a)(3)(A) of this Section have been placed in
service in qualified properties and, in the case of the
exemptions described in the Public Utilities Act and Section 1d
of the Retailers' Occupation Tax Act, the minimum full-time
equivalent jobs or full-time retained jobs set forth in
subdivision (a)(3)(A) of this Section have been created or
retained. Businesses designated as High Impact Businesses
under this Section shall also qualify for the exemption
described in Section 5l of the Retailers' Occupation Tax Act.

HB3373 - 9 - LRB101 11040 HLH 56243 b
The credit provided in subsection (h) of Section 201 of the
Illinois Income Tax Act shall be applicable to investments in
qualified property as set forth in subdivision (a)(3)(A) of
this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits and
exemptions described in the following Acts: Section 51 of the
Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall qualify
for the exemptions described in Section 5l of the Retailers'
Occupation Tax Act; any business so designated as a High Impact
Business being, for purposes of this Section, a "Wind Energy
Business".

HB3373 - 10 - LRB101 11040 HLH 56243 b
(b-7) Businesses designated as High Impact Businesses by
the Department shall qualify for the High Impact Business
construction jobs credit under subsection (h-5) of Section 201
of the Illinois Income Tax Act if the business meets the
criteria set forth in subsection (i) of this Section.
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Illinois businesses which
apply for designation as a High Impact Business must provide
the Department with the prospective plan for which 1,500
full-time retained jobs would be eliminated in the event that
the business is not designated.
(e) Except for new wind power facilities contemplated under
subdivision (a)(3)(E) of this Section, new proposed facilities
which apply for designation as High Impact Business must
provide the Department with proof of alternative non-Illinois
sites which would receive the proposed investment and job
creation in the event that the business is not designated as a
High Impact Business.
(f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in the event that a business is

HB3373 - 11 - LRB101 11040 HLH 56243 b
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified property
the investments and created or retained the requisite number of
jobs without the benefits of the High Impact Business
designation, the Department shall be required to immediately
revoke the designation and notify the Director of the
Department of Revenue who shall begin proceedings to recover
all wrongfully exempted State taxes with interest. The business
shall also be ineligible for all State funded Department
programs for a period of 10 years.
(g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage Act,
and the Department shall not revoke a High Impact Business
designation as a result of the failure to comply with any of
the terms or conditions of the Illinois Prevailing Wage Act in
relation to a new wind power facility or a Wind Energy
Business.
(h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on

HB3373 - 12 - LRB101 11040 HLH 56243 b
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(i) High Impact Business construction jobs credit. A High
Impact Business may receive a tax credit against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act in an amount equal to 50% of the amount
of the incremental income tax attributable to High Impact
Business construction jobs credit employees employed in the
course of completing a High Impact Business construction jobs
project. However, the High Impact Business construction jobs
credit may equal 75% of the amount of the incremental income
tax attributable to High Impact Business construction jobs
credit employees if the High Impact Business construction jobs
credit project is located in an underserved area.
The Department shall certify to the Department of Revenue:
(1) the identity of taxpayers that are eligible for the High
Impact Business construction jobs credit; and (2) the amount of
High Impact Business construction jobs credits that are claimed
pursuant to subsection (h-5) of Section 201 of the Illinois
Income Tax Act in each taxable year. Any business entity that
receives a High Impact Business construction jobs credit shall
maintain a certified payroll pursuant to subsection (j) of this
Section.
As used in this subsection (i):

HB3373 - 13 - LRB101 11040 HLH 56243 b
"High Impact Business construction jobs credit" means an
amount equal to 50% (or 75% if the High Impact Business
construction project is located in an underserved area) of the
incremental income tax attributable to High Impact Business
construction job employees.
"High Impact Business construction job employee" means a
laborer or worker who is employed by an Illinois contractor or
subcontractor in the actual construction work on the site of a
High Impact Business construction job project.
"High Impact Business construction jobs project" means
building a structure or building or making improvements of any
kind to real property, undertaken and commissioned by a
business that was designated as a High Impact Business by the
Department. The term "High Impact Business construction jobs
project" does not include the routine operation, routine
repair, or routine maintenance of existing structures,
buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of High Impact
Business construction job employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate
in the federal free lunch program according to reported

HB3373 - 14 - LRB101 11040 HLH 56243 b
statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(j) Each contractor and subcontractor who is engaged in and
executing a High Impact Business Construction jobs project, as
defined under subsection (i) of this Section, for a business
that is entitled to a credit pursuant to subsection (i) of this
Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after the effective
date of this amendatory Act of the 101st General Assembly
on a contract or subcontract for a High Impact Business
Construction Jobs Project, records for all laborers and
other workers employed by the contractor or subcontractor
on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;

HB3373 - 15 - LRB101 11040 HLH 56243 b
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the High Impact Business
construction jobs project; within 5 business days after
receiving the certified payroll, the taxpayer shall file
the certified payroll with the Department of Labor and the
Department of Commerce and Economic Opportunity; a
certified payroll must be filed for only those calendar
months during which construction on a High Impact Business
construction jobs project has occurred; the certified
payroll shall consist of a complete copy of the records
identified in paragraph (1) of this subsection (j), but may
exclude the starting and ending times of work each day; the
certified payroll shall be accompanied by a statement
signed by the contractor or subcontractor or an officer,
employee, or agent of the contractor or subcontractor which
avers that:

HB3373 - 16 - LRB101 11040 HLH 56243 b
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer, employee,
or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after the effective date of this amendatory Act of the 101st
General Assembly for a period of 5 years from the date of the
last payment for work on a contract or subcontract for the High
Impact Business construction jobs project.

HB3373 - 17 - LRB101 11040 HLH 56243 b
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and made
available in accordance with the Freedom of Information Act.
The Department of Labor shall accept any reasonable submissions
by the contractor that meet the requirements of this subsection
(j) and shall share the information with the Department in
order to comply with the awarding of a High Impact Business
construction jobs credit. A contractor, subcontractor, or
public body may retain records required under this Section in
paper or electronic format.
(k) Upon 7 business days' notice, each contractor and
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in this subsection (j) to the taxpayer in
charge of the High Impact Business construction jobs project,
its officers and agents, the Director of the Department of
Labor and his deputies and agents, and to federal, State, or
local law enforcement agencies and prosecutors.
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
(20 ILCS 655/13 new)
Sec. 13. Enterprise Zone construction jobs credit.
(a) A business entity in a certified Enterprise Zone that
makes a capital investment of at least $10,000,000 in an
Enterprise Zone construction jobs project may receive an

HB3373 - 18 - LRB101 11040 HLH 56243 b
Enterprise Zone construction jobs credit against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act in an amount equal to 50% of the amount
of the incremental income tax attributable to Enterprise Zone
construction jobs credit employees employed in the course of
completing an Enterprise Zone construction jobs project.
However, the Enterprise Zone construction jobs credit may equal
75% of the amount of the incremental income tax attributable to
Enterprise Zone construction jobs credit employees if the
project is located in an underserved area.
(b) A business entity seeking a credit under this Section
must submit an application to the Department and must receive
approval from the designating municipality or county and the
Department for the Enterprise Zone construction jobs credit
project. The application must describe the nature and benefit
of the project to the certified Enterprise Zone and its
potential contributors.
Within 45 days after receipt of an application, the
Department shall give notice to the applicant as to whether the
application has been approved or disapproved. If the Department
disapproves the application, it shall specify the reasons for
this decision and allow 60 days for the applicant to amend and
resubmit its application. The Department shall provide
assistance upon request to applicants. Resubmitted
applications shall receive the Department's approval or
disapproval within 30 days after the application is

HB3373 - 19 - LRB101 11040 HLH 56243 b
resubmitted. Those resubmitted applications satisfying initial
Department objectives shall be approved unless reasonable
circumstances warrant disapproval.
On an annual basis, the designated zone organization shall
furnish a statement to the Department on the programmatic and
financial status of any approved project and an audited
financial statement of the project.
The Department shall certify to the Department of Revenue
the identity of taxpayers who are eligible for the credits and
the amount of credits that are claimed pursuant to subparagraph
(8) of subsection (f) of Section 201 the Illinois Income Tax
Act.
The Enterprise Zone construction jobs credit project must
be undertaken by the business entity in the course of
completing a project that complies with the criteria contained
in Section 4 of this Act and is undertaken in a certified
Enterprise Zone. The Department shall adopt any necessary rules
for the implementation of this subsection (b).
(c) Any business entity that receives an Enterprise Zone
construction jobs credit shall maintain a certified payroll
pursuant to subsection (d) of this Section.
(d) Each contractor and subcontractor who is engaged in and
is executing an Enterprise Zone Construction jobs credit
project for a business that is entitled to a credit pursuant to
this Section shall:
(1) make and keep, for a period of 5 years from the

HB3373 - 20 - LRB101 11040 HLH 56243 b
date of the last payment made on or after the effective
date of this amendatory Act of the 101st General Assembly
on a contract or subcontract for an Enterprise Zone
construction jobs credit project, records for all laborers
and other workers employed by them on the project; the
records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed for

HB3373 - 21 - LRB101 11040 HLH 56243 b
only those calendar months during which construction on an
Enterprise Zone construction jobs project has occurred;
the certified payroll shall consist of a complete copy of
the records identified in paragraph (1) of this subsection
(d), but may exclude the starting and ending times of work
each day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer, employee,
or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who

HB3373 - 22 - LRB101 11040 HLH 56243 b
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after the effective date of this amendatory Act of the 101st
General Assembly for a period of 5 years from the date of the
last payment for work on a contract or subcontract for the
project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and made
available in accordance with the Freedom of Information Act.
The Department of Labor shall accept any reasonable submissions
by the contractor that meet the requirements of this subsection
and shall share the information with the Department in order to
comply with the awarding of Enterprise Zone construction jobs
credits. A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of this subsection to the
taxpayer in charge of the project, its officers and agents, the
Director of Labor and his deputies and agents, and to federal,

HB3373 - 23 - LRB101 11040 HLH 56243 b
State, or local law enforcement agencies and prosecutors.
(e) As used in this Section:
"Enterprise Zone construction jobs credit" means an amount
equal to 50% (or 75% if the project is located in an
underserved area) of the incremental income tax attributable to
Enterprise Zone construction jobs credit employees.
"Enterprise Zone construction jobs credit employee" means
a laborer or worker who is employed by an Illinois contractor
or subcontractor in the actual construction work on the site of
an Enterprise Zone construction jobs credit project.
"Enterprise Zone construction jobs credit project" means
building a structure or building or making improvements of any
kind to real property commissioned and paid for by a business
that has applied and been approved for an Enterprise Zone
construction jobs credit pursuant to this Section. "Enterprise
Zone construction jobs credit project" does not include the
routine operation, routine repair, or routine maintenance of
existing structures, buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of Enterprise
Zone construction jobs credit employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate

HB3373 - 24 - LRB101 11040 HLH 56243 b
in the federal free lunch program according to reported
statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
Section 10. The Illinois Income Tax Act is amended by
changing Sections 201, 211, and 221 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, except as adjusted by

HB3373 - 25 - LRB101 11040 HLH 56243 b
subsection (d-1):
(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, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate, for
taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate, for
taxable years beginning on or after January 1, 2011, and
ending prior to January 1, 2015, an amount equal to 5% of

HB3373 - 26 - LRB101 11040 HLH 56243 b
the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section 202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period prior
to July 1, 2017, as calculated under Section 202.5, and
(ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(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.

HB3373 - 27 - LRB101 11040 HLH 56243 b
(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, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January

HB3373 - 28 - LRB101 11040 HLH 56243 b
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1, 2017,
as calculated under Section 202.5, and (ii) 7% of the
taxpayer's net income for the period after June 30, 2017,
as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(c) Personal Property Tax Replacement Income Tax.
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

HB3373 - 29 - LRB101 11040 HLH 56243 b
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 and except as adjusted by subsection (d-1), 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.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from

HB3373 - 30 - LRB101 11040 HLH 56243 b
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on such
income by the foreign insurer's state of domicile. For the
purposes of this subsection (d-1), an inter-affiliate includes
a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such foreign
insurer under this Act for a taxable year, net of all
credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of the
Illinois Insurance Code, the fire insurance company
tax imposed by Section 12 of the Fire Investigation
Act, and the fire department taxes imposed under

HB3373 - 31 - LRB101 11040 HLH 56243 b
Section 11-10-1 of the Illinois Municipal Code,
equals 1.25% for taxable years ending prior to December 31,
2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of Section
409 of the Illinois Insurance Code. This paragraph will in
no event increase the rates imposed under subsections (b)
and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates imposed
by subsection (b) and only after the tax imposed by
subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(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,

HB3373 - 32 - LRB101 11040 HLH 56243 b
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

HB3373 - 33 - LRB101 11040 HLH 56243 b
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 (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i) and
(ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) 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.

HB3373 - 34 - LRB101 11040 HLH 56243 b
(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, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; 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).

HB3373 - 35 - LRB101 11040 HLH 56243 b
(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 for use or consumption and not for resale, or
services rendered in conjunction with the sale of tangible
personal property for use or consumption and not for
resale. For purposes of this subsection (e), "tangible
personal property" has the same meaning as when that term
is used in the Retailers' Occupation Tax Act, and, for
taxable years ending after December 31, 2008, does not
include the generation, transmission, or distribution of
electricity.
(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

HB3373 - 36 - LRB101 11040 HLH 56243 b
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, 2018, except for costs incurred
pursuant to a binding contract entered into on or before
December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners the

HB3373 - 37 - LRB101 11040 HLH 56243 b
credits to which the partnership is entitled under this
subsection (e) for the taxable year. A partner may use the
credit allocated to him or her under this paragraph only
against the tax imposed in subsections (c) and (d) of this
Section. If the partnership makes that election, those
credits shall be allocated among the partners in the
partnership in accordance with the rules set forth in
Section 704(b) of the Internal Revenue Code, and the rules
promulgated under that Section, and the allocated amount of
the credits shall be allowed to the partners for that
taxable year. The partnership shall make this election on
its Personal Property Tax Replacement Income Tax return for
that taxable year. The election to pass through the credits
shall be irrevocable.
For taxable years ending on or after December 31, 2000,
a partner that qualifies its partnership for a subtraction
under subparagraph (I) of paragraph (2) of subsection (d)
of Section 203 or a shareholder that qualifies a Subchapter
S corporation for a subtraction under subparagraph (S) of
paragraph (2) of subsection (b) of Section 203 shall be
allowed a credit under this subsection (e) equal to its
share of the credit earned under this subsection (e) during
the taxable year by the partnership or Subchapter S
corporation, determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal

HB3373 - 38 - LRB101 11040 HLH 56243 b
Revenue Code. This paragraph is exempt from the provisions
of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment 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 or, for property placed in service on
or after July 1, 2006, a River Edge Redevelopment Zone
established pursuant to the River Edge Redevelopment Zone
Act. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, 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 or
River Edge Redevelopment 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

HB3373 - 39 - LRB101 11040 HLH 56243 b
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 or River Edge
Redevelopment 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

HB3373 - 40 - LRB101 11040 HLH 56243 b
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 or River Edge
Redevelopment 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
or River Edge Redevelopment 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

HB3373 - 41 - LRB101 11040 HLH 56243 b
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) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, 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. 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 0.5% and the
denominator of which is 1%, but shall not exceed 0.5%.
(8) For taxable years beginning on or after the
effective date of this amendatory Act of the 101st General
Assembly, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.

HB3373 - 42 - LRB101 11040 HLH 56243 b
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest year
for which there is a tax liability. If there are credits
from more than one taxable year that are available to
offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, there
shall be allowed a credit under this Section 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.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section 5.5
of the Illinois Enterprise Zone Act, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)

HB3373 - 43 - LRB101 11040 HLH 56243 b
and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, 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 investments shall be taken in the
taxable year in which such investments have been completed.
The credit for additional investments beyond the minimum
investment by a designated high impact business authorized
under subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act 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

HB3373 - 44 - LRB101 11040 HLH 56243 b
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.

HB3373 - 45 - LRB101 11040 HLH 56243 b
(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

HB3373 - 46 - LRB101 11040 HLH 56243 b
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).
(h-5) High Impact Business constructions jobs credit. For
taxable years beginning on or after the effective date of this
amendatory Act of the 101st General Assembly, there shall also
be allowed a High Impact Business construction jobs credit
against the tax imposed under subsections (a) and (b) of this
Section as provided in subsections (i) and (j) of Section 5.5
of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability in
succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits

HB3373 - 47 - LRB101 11040 HLH 56243 b
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable year
that are available to offset a liability, the earlier credit
shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of federal
and State income taxation, there shall be allowed a credit
under this Section 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.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, 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

HB3373 - 48 - LRB101 11040 HLH 56243 b
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, provided that no credit may be carried forward to any
year ending on or after December 31, 2003. 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 subsections (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 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all

HB3373 - 49 - LRB101 11040 HLH 56243 b
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, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, 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. No
carryforward credit may be claimed in any tax year ending on or
after December 31, 2003.
(k) Research and development credit. For tax years ending

HB3373 - 50 - LRB101 11040 HLH 56243 b
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2022, 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 partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, 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 and subchapter S of the
Internal Revenue Code.
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

HB3373 - 51 - LRB101 11040 HLH 56243 b
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; provided that no credit earned in a tax year ending
prior to December 31, 2003 may be carried forward to any year
ending on or after December 31, 2003.
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.
No inference shall be drawn from this amendatory Act of the
91st General Assembly in construing this Section for taxable
years beginning before January 1, 1999.

HB3373 - 52 - LRB101 11040 HLH 56243 b
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2022, including, but not
limited to, the period beginning on January 1, 2016 and ending
on the effective date of this amendatory Act of the 100th
General Assembly. All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(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. The credit must be claimed
for the taxable year in which Agency approval of the
eligible remediation costs is granted. The credit is not
available to any taxpayer if the taxpayer or any related

HB3373 - 53 - LRB101 11040 HLH 56243 b
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 as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year with
a maximum total of $150,000 per site. For partners and

HB3373 - 54 - LRB101 11040 HLH 56243 b
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 and
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

HB3373 - 55 - LRB101 11040 HLH 56243 b
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.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the custodian
of one or more qualifying pupils shall be allowed a credit
against the tax imposed by subsections (a) and (b) of this
Section for qualified education expenses incurred on behalf of
the qualifying pupils. The credit shall be equal to 25% of
qualified education expenses, but in no event may the total
credit under this subsection claimed by a family that is the
custodian of qualifying pupils exceed (i) $500 for tax years
ending prior to December 31, 2017, and (ii) $750 for tax years
ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the

HB3373 - 56 - LRB101 11040 HLH 56243 b
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten through
twelfth grade education program at any school, as defined in
this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify for
the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31, 2006,

HB3373 - 57 - LRB101 11040 HLH 56243 b
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 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval of
the eligible remediation costs is granted. 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. Determinations as to credit
availability for purposes of this Section shall be made
consistent with rules adopted by the Pollution Control
Board pursuant to the Illinois Administrative Procedure
Act for the administration and enforcement of Section 58.9
of the Environmental Protection Act. For purposes of this
Section, "taxpayer" includes a person whose tax attributes

HB3373 - 58 - LRB101 11040 HLH 56243 b
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.
(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. 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

HB3373 - 59 - LRB101 11040 HLH 56243 b
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.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Pilot Program, a surcharge is imposed on
all taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Pilot Program Act. The amount of the surcharge
is equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;

HB3373 - 60 - LRB101 11040 HLH 56243 b
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Pilot Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in which
no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.

HB3373 - 61 - LRB101 11040 HLH 56243 b
(Source: P.A. 100-22, eff. 7-6-17.)
(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
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

HB3373 - 62 - LRB101 11040 HLH 56243 b
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.
(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

HB3373 - 63 - LRB101 11040 HLH 56243 b
excess credit year. 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.
(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 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.
(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.

HB3373 - 64 - LRB101 11040 HLH 56243 b
(Source: P.A. 94-793, eff. 5-19-06.)
(35 ILCS 5/221)
Sec. 221. Rehabilitation costs; qualified historic
properties; River Edge Redevelopment Zone.
(a) For taxable years that begin on or after January 1,
2012 and begin prior to January 1, 2018, there shall be allowed
a tax credit against the tax imposed by subsections (a) and (b)
of Section 201 of this Act in an amount equal to 25% of
qualified expenditures incurred by a qualified taxpayer during
the taxable year in the restoration and preservation of a
qualified historic structure located in a River Edge
Redevelopment Zone pursuant to a qualified rehabilitation
plan, provided that the total amount of such expenditures (i)
must equal $5,000 or more and (ii) must exceed 50% of the
purchase price of the property.
(a-1) For taxable years that begin on or after January 1,
2018 and end prior to January 1, 2022, there shall be allowed a
tax credit against the tax imposed by subsections (a) and (b)
of Section 201 of this Act in an aggregate amount equal to 25%
of qualified expenditures incurred by a qualified taxpayer in
the restoration and preservation of a qualified historic
structure located in a River Edge Redevelopment Zone pursuant
to a qualified rehabilitation plan, provided that the total
amount of such expenditures must (i) equal $5,000 or more and
(ii) exceed the adjusted basis of the qualified historic

HB3373 - 65 - LRB101 11040 HLH 56243 b
structure on the first day the qualified rehabilitation plan
begins. For any rehabilitation project, regardless of duration
or number of phases, the project's compliance with the
foregoing provisions (i) and (ii) shall be determined based on
the aggregate amount of qualified expenditures for the entire
project and may include expenditures incurred under subsection
(a), this subsection, or both subsection (a) and this
subsection. If the qualified rehabilitation plan spans
multiple years, the aggregate credit for the entire project
shall be allowed in the last taxable year, except for phased
rehabilitation projects, which may receive credits upon
completion of each phase. Before obtaining the first phased
credit: (A) the total amount of such expenditures must meet the
requirements of provisions (i) and (ii) of this subsection; (B)
the rehabilitated portion of the qualified historic structure
must be placed in service; and (C) the requirements of
subsection (b) must be met.
(a-2) For taxable years beginning on or after the effective
date of this amendatory Act of the 101st General Assembly and
ending prior to January 1, 2022, there shall be allowed a tax
credit against the tax imposed by subsections (a) and (b) of
Section 201 as provided in Section 10-10.3 of the River Edge
Redevelopment Zone Act. The credit allowed under this
subsection (a-2) shall apply only to taxpayers that make a
capital investment of at least $1,000,000 in a qualified
rehabilitation plan.

HB3373 - 66 - LRB101 11040 HLH 56243 b
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability in
succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable year
that are available to offset a liability, the earlier credit
shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of federal
and State income taxation, there shall be allowed a credit
under this Section 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.
(b) To obtain a tax credit pursuant to this Section, the
taxpayer must apply with the Department of Natural Resources.
The Department of Natural Resources shall determine the amount
of eligible rehabilitation costs and expenses in addition to
the amount of the River Edge construction jobs credit within 45
days of receipt of a complete application. The taxpayer must
submit a certification of costs prepared by an independent
certified public accountant that certifies (i) the project

HB3373 - 67 - LRB101 11040 HLH 56243 b
expenses, (ii) whether those expenses are qualified
expenditures, and (iii) that the qualified expenditures exceed
the adjusted basis of the qualified historic structure on the
first day the qualified rehabilitation plan commenced. The
Department of Natural Resources is authorized, but not
required, to accept this certification of costs to determine
the amount of qualified expenditures and the amount of the
credit. The Department of Natural Resources shall provide
guidance as to the minimum standards to be followed in the
preparation of such certification. The Department of Natural
Resources and the National Park Service shall determine whether
the rehabilitation is consistent with the United States
Secretary of the Interior's Standards for Rehabilitation.
(b-1) Upon completion of the project and approval of the
complete application, the Department of Natural Resources
shall issue a single certificate in the amount of the eligible
credits equal to 25% of qualified expenditures incurred during
the eligible taxable years, as defined in subsections (a) and
(a-1), excepting any credits awarded under subsection (a) prior
to January 1, 2019 (the effective date of Public Act 100-629)
this amendatory Act of the 100th General Assembly and any
phased credits issued prior to the eligible taxable year under
subsection (a-1). At the time the certificate is issued, an
issuance fee up to the maximum amount of 2% of the amount of
the credits issued by the certificate may be collected from the
applicant to administer the provisions of this Section. If

HB3373 - 68 - LRB101 11040 HLH 56243 b
collected, this issuance fee shall be deposited into the
Historic Property Administrative Fund, a special fund created
in the State treasury. Subject to appropriation, moneys in the
Historic Property Administrative Fund shall be provided to the
Department of Natural Resources as reimbursement Department of
Natural Resources for the costs associated with administering
this Section.
(c) The taxpayer must attach the certificate to the tax
return on which the credits are to be claimed. The tax credit
under this Section may not reduce the taxpayer's liability to
less than zero. If the amount of the credit exceeds the tax
liability for the year, the excess credit may be carried
forward and applied to the tax liability of the 5 taxable years
following the excess credit year.
(c-1) Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be used, on a biennial basis
beginning at the end of the second fiscal year after January 1,
2019 (the effective date of Public Act 100-629) this amendatory
Act of the 100th General Assembly, to hire a qualified third
party to prepare a biennial report to assess the overall
economic impact to the State from the qualified rehabilitation
projects under this Section completed in that year and in
previous years. The overall economic impact shall include at
least: (1) the direct and indirect or induced economic impacts
of completed projects; (2) temporary, permanent, and
construction jobs created; (3) sales, income, and property tax

HB3373 - 69 - LRB101 11040 HLH 56243 b
generation before, during construction, and after completion;
and (4) indirect neighborhood impact after completion. The
report shall be submitted to the Governor and the General
Assembly. The report to the General Assembly shall be filed
with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(c-2) The Department of Natural Resources may adopt rules
to implement this Section in addition to the rules expressly
authorized in this Section.
(d) As used in this Section, the following terms have the
following meanings.
"Phased rehabilitation" means a project that is completed
in phases, as defined under Section 47 of the federal Internal
Revenue Code and pursuant to National Park Service regulations
at 36 C.F.R. 67.
"Placed in service" means the date when the property is
placed in a condition or state of readiness and availability
for a specifically assigned function as defined under Section
47 of the federal Internal Revenue Code and federal Treasury
Regulation Sections 1.46 and 1.48.
"Qualified expenditure" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code that were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means a certified historic

HB3373 - 70 - LRB101 11040 HLH 56243 b
structure as defined under Section 47(c)(3) of the federal
Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Department of Natural Resources and the
National Park Service as being consistent with the United
States Secretary of the Interior's Standards for
Rehabilitation.
"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who qualifies for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code with respect to that qualified
historic structure. Partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if the
limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 703 and subchapter S of the Internal
Revenue Code, provided that credits granted to a partnership, a
limited liability company taxed as a partnership, or other
multiple owners of property shall be passed through to the
partners, members, or owners respectively on a pro rata basis
or pursuant to an executed agreement among the partners,
members, or owners documenting any alternate distribution
method.
(Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17;

HB3373 - 71 - LRB101 11040 HLH 56243 b
100-629, eff. 1-1-19; 100-695, eff. 8-3-18; revised 10-18-18.)
Section 15. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-5 and by adding
Sections 5-51 and 5-56 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, or
providing services in interstate commerce, office industries,
or agricultural processing, but excluding retail, retail food,
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

HB3373 - 72 - LRB101 11040 HLH 56243 b
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
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.
"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 lesser of:
(1) the sum of (i) 50% of the Incremental Income Tax
attributable to New Employees at the Applicant's project and
(ii) 10% of the training costs of New Employees; or (2) 100% of
the Incremental Income Tax attributable to New Employees at the
Applicant's project. However, if the project is located in an
underserved area, then the amount of the Credit may not exceed
the lesser of: (1) the sum of (i) 75% of the Incremental Income
Tax attributable to New Employees at the Applicant's project
and (ii) 10% of the training costs of New Employees; or (2)
100% of the Incremental Income Tax attributable to New

HB3373 - 73 - LRB101 11040 HLH 56243 b
Employees at the Applicant's project. If an Applicant agrees to
hire the required number of New Employees, then the maximum
amount of the Credit for that Applicant may be increased by an
amount not to exceed 25% of the Incremental Income Tax
attributable to retained employees at the Applicant's project;
provided that, in order to receive the increase for retained
employees, the Applicant must provide the additional evidence
required under paragraph (3) of subsection (b) of Section 5-25.
"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
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
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project

HB3373 - 74 - LRB101 11040 HLH 56243 b
that is the subject of an Agreement.
"New Construction EDGE Agreement" means the Agreement
between a Taxpayer and the Department under the provisions of
Section 5-51 of this Act.
"New Construction EDGE Credit" means an amount agreed to
between the Department and the Applicant under this Act as part
of a New Construction EDGE Agreement that does not exceed 50%
of the Incremental Income Tax attributable to New Construction
EDGE Employees at the Applicant's project; however, if the New
Construction EDGE Project is located in an underserved area,
then the amount of the New Construction EDGE Credit may not
exceed 75% of the Incremental Income Tax attributable to New
Construction EDGE Employees at the Applicant's New
Construction EDGE Project.
"New Construction EDGE Employee" means a laborer or worker
who is employed by an Illinois contractor or subcontractor in
the actual construction work on the site of a New Construction
EDGE Project, pursuant to a New Construction EDGE Agreement.
"New Construction EDGE Incremental Income Tax" means the
total amount withheld during the taxable year from the
compensation of New Construction EDGE Employees.
"New Construction EDGE Project" means the building of a
Taxpayer's structure or building, or making improvements of any
kind to real property. "New Construction EDGE Project" does not
include the routine operation, routine repair, or routine
maintenance of existing structures, buildings, or real

HB3373 - 75 - LRB101 11040 HLH 56243 b
property.
"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
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;

HB3373 - 76 - LRB101 11040 HLH 56243 b
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
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

HB3373 - 77 - LRB101 11040 HLH 56243 b
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
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

HB3373 - 78 - LRB101 11040 HLH 56243 b
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.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate
in the federal free lunch program according to reported
statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department

HB3373 - 79 - LRB101 11040 HLH 56243 b
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 100-511, eff. 9-18-17.)
(35 ILCS 10/5-51 new)
Sec. 5-51. New Construction EDGE Agreement.
(a) Notwithstanding any other provisions of this Act, and
in addition to any Credit otherwise allowed under this Act,
there is allowed a New Construction EDGE Credit for eligible
Applicants that meet the following criteria:
(1) the Department has certified that the Applicant
meets all requirements of Sections 5-15, 5-20, and 5-25;
and
(2) the Department has certified that, pursuant to
Section 5-20, the Applicant's Agreement includes a capital
investment of at least $10,000,000 in a New Construction
EDGE Project to be placed in service within the State as a
direct result of an Agreement entered into pursuant to this
Section.
(b) The Department shall notify each Applicant during the
application process that their project is eligible for a New
Construction EDGE Credit. The Department shall create a
separate application to be filled out by the Applicant
regarding the New Construction EDGE credit. The Application
shall include the following:
(1) a detailed description of the New Construction EDGE

HB3373 - 80 - LRB101 11040 HLH 56243 b
Project that is subject to the New Construction EDGE
Agreement, including the location and amount of the
investment and jobs created or retained;
(2) the duration of the New Construction EDGE Credit
and the first taxable year for which the Credit may be
claimed;
(3) the New Construction EDGE Credit amount that will
be allowed for each taxable year;
(4) a requirement that the Director is authorized to
verify with the appropriate State agencies the amount of
the incremental income tax withheld by a Taxpayer, and
after doing so, shall issue a certificate to the Taxpayer
stating that the amounts have been verified;
(5) the amount of the capital investment, which may at
no point be less than $10,000,000, the time period of
placing the New Construction EDGE Project in service, and
the designated location in Illinois for the investment;
(6) a requirement that the Taxpayer shall provide
written notification to the Director not more than 30 days
after the Taxpayer determines that the capital investment
of at least $10,000,000 is not or will not be achieved or
maintained as set forth in the terms and conditions of the
Agreement;
(7) a detailed provision that the Taxpayer shall be
awarded a New Construction EDGE Credit upon the verified
completion and occupancy of a New Construction EDGE

HB3373 - 81 - LRB101 11040 HLH 56243 b
Project; and
(8) any other performance conditions, including the
ability to verify that a New Construction EDGE Project is
built and completed, or that contract provisions as the
Department determines are appropriate.
(c) The Department shall post on its website the terms of
each New Construction EDGE Agreement entered into under this
Act on or after the effective date of this amendatory Act of
the 101st General Assembly. Such information shall be posted
within 10 days after entering into the Agreement and must
include the following:
(1) the name of the recipient business;
(2) the location of the project;
(3) the estimated value of the credit; and
(4) whether or not the project is located in an
underserved area.
(d) The Department, in collaboration with the Department of
Labor, shall require that certified payroll reporting,
pursuant to Section 5-56 of this Act, be completed in order to
verify the wages and any other necessary information which the
Department may deem necessary to ascertain and certify the
total number of New Construction EDGE Employees subject to a
New Construction EDGE Agreement and amount of a New
Construction EDGE Credit.
(35 ILCS 10/5-56 new)

HB3373 - 82 - LRB101 11040 HLH 56243 b
Sec. 5-56. Certified payroll.
(a) Each contractor and subcontractor that is engaged in
and is executing a New Construction EDGE Project for a
Taxpayer, pursuant to a New Construction EDGE Agreement shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after the effective
date of this amendatory Act of the 101st General Assembly
on a contract or subcontract for a New Construction EDGE
Project pursuant to a New Construction EDGE Agreement,
records of all laborers and other workers employed by the
contractor or subcontractor on the project; the records
shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate; and
(2) no later than the 15th day of each calendar month,

HB3373 - 83 - LRB101 11040 HLH 56243 b
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed for
only those calendar months during which construction on a
New Construction EDGE Project has occurred; the certified
payroll shall consist of a complete copy of the records
identified in paragraph (1), but may exclude the starting
and ending times of work each day; the certified payroll
shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or

HB3373 - 84 - LRB101 11040 HLH 56243 b
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after the effective date of this amendatory Act of the 101st
General Assembly for a period of 5 years from the date of the
last payment for work on a contract or subcontract for the
project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and made
available in accordance with the Freedom of Information Act.
The Department of Labor shall accept any reasonable submissions
by the contractor that meet the requirements of this subsection
and shall share the information with the Department in order to
comply with the awarding of New Construction EDGE Credits. A
contractor, subcontractor, or public body may retain records
required under this Section in paper or electronic format.
Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the

HB3373 - 85 - LRB101 11040 HLH 56243 b
records identified in paragraph (1) of this subsection to the
taxpayer in charge of the project, its officers and agents, the
Director of Labor and his deputies and agents, and to federal,
State, or local law enforcement agencies and prosecutors.
Section 20. The River Edge Redevelopment Zone Act is
amended by changing Section 10-3 and by adding Sections 10-10.3
and 10-10.4 as follows:
(65 ILCS 115/10-3)
Sec. 10-3. Definitions. As used in this Act:
"Department" means the Department of Commerce and Economic
Opportunity.
"River Edge Redevelopment Zone" means an area of the State
certified by the Department as a River Edge Redevelopment Zone
pursuant to this Act.
"Designated zone organization" means an association or
entity: (1) the members of which are substantially all
residents of the River Edge Redevelopment Zone or of the
municipality in which the River Edge Redevelopment Zone is
located; (2) the board of directors of which is elected by the
members of the organization; (3) that satisfies the criteria
set forth in Section 501(c) (3) or 501(c) (4) of the Internal
Revenue Code; and (4) that exists primarily for the purpose of
performing within the zone, for the benefit of the residents
and businesses thereof, any of the functions set forth in

HB3373 - 86 - LRB101 11040 HLH 56243 b
Section 8 of this Act.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of River Edge
Construction Jobs Employees.
"Agency" means: each officer, board, commission, and
agency created by the Constitution, in the executive branch of
State government, other than the State Board of Elections; each
officer, department, board, commission, agency, institution,
authority, university, and body politic and corporate of the
State; each administrative unit or corporate outgrowth of the
State government that is created by or pursuant to statute,
other than units of local government and their officers, school
districts, and boards of election commissioners; and each
administrative unit or corporate outgrowth of the above and as
may be created by executive order of the Governor. No entity is
an "agency" for the purposes of this Act unless the entity is
authorized by law to make rules or regulations.
"River Edge construction jobs credit" means an amount equal
to 50% of the incremental income tax attributable to River Edge
construction employees employed on a River Edge construction
jobs project. However, the amount may equal 75% of the
incremental income tax attributable to River Edge construction
employees employed on a River Edge construction jobs project
located in an underserved area.
"River Edge construction jobs employee" means a laborer or
worker who is employed by an Illinois contractor or

HB3373 - 87 - LRB101 11040 HLH 56243 b
subcontractor in the actual construction work on the site of a
River Edge construction jobs project.
"River Edge construction jobs project" means building a
structure or building, or making improvements of any kind to
real property, in a River Edge Redevelopment Zone that is built
or improved in the course of completing a qualified
rehabilitation plan. "River Edge construction jobs project"
does not include the routine operation, routine repair, or
routine maintenance of existing structures, buildings, or real
property.
"Rule" means each agency statement of general
applicability that implements, applies, interprets, or
prescribes law or policy, but does not include (i) statements
concerning only the internal management of an agency and not
affecting private rights or procedures available to persons or
entities outside the agency, (ii) intra-agency memoranda, or
(iii) the prescription of standardized forms.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area participate
in the federal free lunch program according to reported
statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance

HB3373 - 88 - LRB101 11040 HLH 56243 b
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 94-1021, eff. 7-12-06.)
(65 ILCS 115/10-10.3 new)
Sec. 10-10.3. River Edge Construction Jobs Credit.
(a) A business entity may receive a tax credit against the
tax imposed under subsections (a) and (b) of Section 201 in an
amount equal to 50% (or 75% if the project is located in an
underserved area) of the amount of the incremental income tax
attributable to River Edge construction jobs employees
employed in the course of completing a River Edge construction
jobs project. The credit allowed under this Section shall apply
only to taxpayers that make a capital investment of at least
$1,000,000 in a qualified rehabilitation plan.
(b) A business entity seeking a credit under this Section
must submit an application to the Department describing the
nature and benefit of the River Edge construction jobs project
to the qualified rehabilitation project and the River Edge
Redevelopment Zone. The Department may adopt any necessary
rules in order to administer the provisions of this Section.

HB3373 - 89 - LRB101 11040 HLH 56243 b
(c) Within 45 days after the receipt of an application, the
Department shall give notice to the applicant as to whether the
application has been approved or disapproved. If the Department
disapproves the application, it shall specify the reasons for
this decision and allow 60 days for the applicant to amend and
resubmit its application. The Department shall provide
assistance upon request to applicants. Resubmitted
applications shall receive the Department's approval or
disapproval within 30 days of resubmission. Those resubmitted
applications satisfying initial Department objectives shall be
approved unless reasonable circumstances warrant disapproval.
(d) On an annual basis, the designated zone organization
shall furnish a statement to the Department on the programmatic
and financial status of any approved project and an audited
financial statement of the project.
(e) The Department shall certify to the Department of
Revenue the identity of the taxpayers who are eligible for
River Edge construction jobs credits and the amounts of River
Edge construction jobs credits awarded in each taxable year.
(f) The Department, in collaboration with the Department of
Labor, shall require certified payroll reporting, pursuant to
Section 10-10.4 of this Act, be completed in order to verify
the wages and any other necessary information which the
Department may deem necessary to ascertain and certify the
total number of River Edge construction jobs employees and
determine the amount of a River Edge construction jobs credit.

HB3373 - 90 - LRB101 11040 HLH 56243 b
(65 ILCS 115/10-10.4 new)
Sec. 10-10.4. Certified payroll.
(a) Any contractor and each subcontractor who is engaged in
and is executing a River Edge construction jobs project for a
taxpayer that is entitled to a credit pursuant to Section
10-10.3 of this Act shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after the effective
date of this amendatory Act of the 101st General Assembly
on a contract or subcontract for a River Edge Construction
Jobs Project in a River Edge Redevelopment Zone records of
all laborers and other workers employed by them on the
project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and

HB3373 - 91 - LRB101 11040 HLH 56243 b
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed for
only those calendar months during which construction on a
River Edge Construction Jobs Project has occurred; the
certified payroll shall consist of a complete copy of the
records identified in paragraph (1), but may exclude the
starting and ending times of work each day; the certified
payroll shall be accompanied by a statement signed by the
contractor or subcontractor or an officer, employee, or
agent of the contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted and such records are
true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.

HB3373 - 92 - LRB101 11040 HLH 56243 b
Any contractor or subcontractor subject to this Section,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as an officer, employee, or agent it
is to file a certified payroll under this Section, who
willfully fails to file such a certified payroll on or before
the date such certified payroll is required to be filed and any
person who willfully files a false certified payroll that is
false as to any material fact is in violation of this Act and
guilty of a Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this Section on or after
the effective date of this amendatory Act of the 101st General
Assembly for a period of 5 years from the date of the last
payment for work on a contract or subcontract for the project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and made
available in accordance with the Freedom of Information Act.
The Department of Labor shall accept any reasonable submissions
by the contractor that meet the requirements of this subsection
and shall share the information with the Department in order to
comply with the awarding of River Edge construction jobs
credits. A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
Upon 7 business days' notice, the contractor and each

HB3373 - 93 - LRB101 11040 HLH 56243 b
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of this subsection to the
taxpayer in charge of the project, its officers and agents, the
Director of Labor and his deputies and agents, and to federal,
State, or local law enforcement agencies and prosecutors.