Illinois-2019-HB3373-Introduced

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.

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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. This Act may be referred to as the Blue Collar

5 Jobs Act.

6 Section 5. The Illinois Enterprise Zone Act is amended by

7 changing Section 5.5 and by adding Section 13 as follows:

8 (20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)

9 Sec. 5.5. High Impact Business.

10 (a) In order to respond to unique opportunities to assist

11 in the encouragement, development, growth and expansion of the

12 private sector through large scale investment and development

13 projects, the Department is authorized to receive and approve

14 applications for the designation of "High Impact Businesses" in

15 Illinois subject to the following conditions:

16 (1) such applications may be submitted at any time

17 during the year;

18 (2) such business is not located, at the time of

19 designation, in an enterprise zone designated pursuant to

20 this Act;

21 (3) the business intends to do one or more of the

22 following:

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1 (A) the business intends to make a minimum

2 investment of $12,000,000 which will be placed in

3 service in qualified property and intends to create 500

4 full-time equivalent jobs at a designated location in

5 Illinois or intends to make a minimum investment of

6 $30,000,000 which will be placed in service in

7 qualified property and intends to retain 1,500

8 full-time retained jobs at a designated location in

9 Illinois. The business must certify in writing that the

10 investments would not be placed in service in qualified

11 property and the job creation or job retention would

12 not occur without the tax credits and exemptions set

13 forth in subsection (b) of this Section. The terms

14 "placed in service" and "qualified property" have the

15 same meanings as described in subsection (h) of Section

16 201 of the Illinois Income Tax Act; or

17 (B) the business intends to establish a new

18 electric generating facility at a designated location

19 in Illinois. "New electric generating facility", for

20 purposes of this Section, means a newly-constructed

21 electric generation plant or a newly-constructed

22 generation capacity expansion at an existing electric

23 generation plant, including the transmission lines and

24 associated equipment that transfers electricity from

25 points of supply to points of delivery, and for which

26 such new foundation construction commenced not sooner

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1 than July 1, 2001. Such facility shall be designed to

2 provide baseload electric generation and shall operate

3 on a continuous basis throughout the year; and (i)

4 shall have an aggregate rated generating capacity of at

5 least 1,000 megawatts for all new units at one site if

6 it uses natural gas as its primary fuel and foundation

7 construction of the facility is commenced on or before

8 December 31, 2004, or shall have an aggregate rated

9 generating capacity of at least 400 megawatts for all

10 new units at one site if it uses coal or gases derived

11 from coal as its primary fuel and shall support the

12 creation of at least 150 new Illinois coal mining jobs,

13 or (ii) shall be funded through a federal Department of

14 Energy grant before December 31, 2010 and shall support

15 the creation of Illinois coal-mining jobs, or (iii)

16 shall use coal gasification or integrated

17 gasification-combined cycle units that generate

18 electricity or chemicals, or both, and shall support

19 the creation of Illinois coal-mining jobs. The

20 business must certify in writing that the investments

21 necessary to establish a new electric generating

22 facility would not be placed in service and the job

23 creation in the case of a coal-fueled plant would not

24 occur without the tax credits and exemptions set forth

25 in subsection (b-5) of this Section. The term "placed

26 in service" has the same meaning as described in

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1 subsection (h) of Section 201 of the Illinois Income

2 Tax Act; or

3 (B-5) the business intends to establish a new

4 gasification facility at a designated location in

5 Illinois. As used in this Section, "new gasification

6 facility" means a newly constructed coal gasification

7 facility that generates chemical feedstocks or

8 transportation fuels derived from coal (which may

9 include, but are not limited to, methane, methanol, and

10 nitrogen fertilizer), that supports the creation or

11 retention of Illinois coal-mining jobs, and that

12 qualifies for financial assistance from the Department

13 before December 31, 2010. A new gasification facility

14 does not include a pilot project located within

15 Jefferson County or within a county adjacent to

16 Jefferson County for synthetic natural gas from coal;

17 or

18 (C) the business intends to establish production

19 operations at a new coal mine, re-establish production

20 operations at a closed coal mine, or expand production

21 at an existing coal mine at a designated location in

22 Illinois not sooner than July 1, 2001; provided that

23 the production operations result in the creation of 150

24 new Illinois coal mining jobs as described in

25 subdivision (a)(3)(B) of this Section, and further

26 provided that the coal extracted from such mine is

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1 utilized as the predominant source for a new electric

2 generating facility. The business must certify in

3 writing that the investments necessary to establish a

4 new, expanded, or reopened coal mine would not be

5 placed in service and the job creation would not occur

6 without the tax credits and exemptions set forth in

7 subsection (b-5) of this Section. The term "placed in

8 service" has the same meaning as described in

9 subsection (h) of Section 201 of the Illinois Income

10 Tax Act; or

11 (D) the business intends to construct new

12 transmission facilities or upgrade existing

13 transmission facilities at designated locations in

14 Illinois, for which construction commenced not sooner

15 than July 1, 2001. For the purposes of this Section,

16 "transmission facilities" means transmission lines

17 with a voltage rating of 115 kilovolts or above,

18 including associated equipment, that transfer

19 electricity from points of supply to points of delivery

20 and that transmit a majority of the electricity

21 generated by a new electric generating facility

22 designated as a High Impact Business in accordance with

23 this Section. The business must certify in writing that

24 the investments necessary to construct new

25 transmission facilities or upgrade existing

26 transmission facilities would not be placed in service

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1 without the tax credits and exemptions set forth in

2 subsection (b-5) of this Section. The term "placed in

3 service" has the same meaning as described in

4 subsection (h) of Section 201 of the Illinois Income

5 Tax Act; or

6 (E) the business intends to establish a new wind

7 power facility at a designated location in Illinois.

8 For purposes of this Section, "new wind power facility"

9 means a newly constructed electric generation

10 facility, or a newly constructed expansion of an

11 existing electric generation facility, placed in

12 service on or after July 1, 2009, that generates

13 electricity using wind energy devices, and such

14 facility shall be deemed to include all associated

15 transmission lines, substations, and other equipment

16 related to the generation of electricity from wind

17 energy devices. For purposes of this Section, "wind

18 energy device" means any device, with a nameplate

19 capacity of at least 0.5 megawatts, that is used in the

20 process of converting kinetic energy from the wind to

21 generate electricity; or

22 (F) the business commits to (i) make a minimum

23 investment of $500,000,000, which will be placed in

24 service in a qualified property, (ii) create 125

25 full-time equivalent jobs at a designated location in

26 Illinois, (iii) establish a fertilizer plant at a

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1 designated location in Illinois that complies with the

2 set-back standards as described in Table 1: Initial

3 Isolation and Protective Action Distances in the 2012

4 Emergency Response Guidebook published by the United

5 States Department of Transportation, (iv) pay a

6 prevailing wage for employees at that location who are

7 engaged in construction activities, and (v) secure an

8 appropriate level of general liability insurance to

9 protect against catastrophic failure of the fertilizer

10 plant or any of its constituent systems; in addition,

11 the business must agree to enter into a construction

12 project labor agreement including provisions

13 establishing wages, benefits, and other compensation

14 for employees performing work under the project labor

15 agreement at that location; for the purposes of this

16 Section, "fertilizer plant" means a newly constructed

17 or upgraded plant utilizing gas used in the production

18 of anhydrous ammonia and downstream nitrogen

19 fertilizer products for resale; for the purposes of

20 this Section, "prevailing wage" means the hourly cash

21 wages plus fringe benefits for training and

22 apprenticeship programs approved by the U.S.

23 Department of Labor, Bureau of Apprenticeship and

24 Training, health and welfare, insurance, vacations and

25 pensions paid generally, in the locality in which the

26 work is being performed, to employees engaged in work

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1 of a similar character on public works; this paragraph

2 (F) applies only to businesses that submit an

3 application to the Department within 60 days after the

4 effective date of this amendatory Act of the 98th

5 General Assembly; and

6 (4) no later than 90 days after an application is

7 submitted, the Department shall notify the applicant of the

8 Department's determination of the qualification of the

9 proposed High Impact Business under this Section.

10 (b) Businesses designated as High Impact Businesses

11 pursuant to subdivision (a)(3)(A) of this Section shall qualify

12 for the credits and exemptions described in the following Acts:

13 Section 9-222 and Section 9-222.1A of the Public Utilities Act,

14 subsection (h) of Section 201 of the Illinois Income Tax Act,

15 and Section 1d of the Retailers' Occupation Tax Act; provided

16 that these credits and exemptions described in these Acts shall

17 not be authorized until the minimum investments set forth in

18 subdivision (a)(3)(A) of this Section have been placed in

19 service in qualified properties and, in the case of the

20 exemptions described in the Public Utilities Act and Section 1d

21 of the Retailers' Occupation Tax Act, the minimum full-time

22 equivalent jobs or full-time retained jobs set forth in

23 subdivision (a)(3)(A) of this Section have been created or

24 retained. Businesses designated as High Impact Businesses

25 under this Section shall also qualify for the exemption

26 described in Section 5l of the Retailers' Occupation Tax Act.

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1 The credit provided in subsection (h) of Section 201 of the

2 Illinois Income Tax Act shall be applicable to investments in

3 qualified property as set forth in subdivision (a)(3)(A) of

4 this Section.

5 (b-5) Businesses designated as High Impact Businesses

6 pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),

7 and (a)(3)(D) of this Section shall qualify for the credits and

8 exemptions described in the following Acts: Section 51 of the

9 Retailers' Occupation Tax Act, Section 9-222 and Section

10 9-222.1A of the Public Utilities Act, and subsection (h) of

11 Section 201 of the Illinois Income Tax Act; however, the

12 credits and exemptions authorized under Section 9-222 and

13 Section 9-222.1A of the Public Utilities Act, and subsection

14 (h) of Section 201 of the Illinois Income Tax Act shall not be

15 authorized until the new electric generating facility, the new

16 gasification facility, the new transmission facility, or the

17 new, expanded, or reopened coal mine is operational, except

18 that a new electric generating facility whose primary fuel

19 source is natural gas is eligible only for the exemption under

20 Section 5l of the Retailers' Occupation Tax Act.

21 (b-6) Businesses designated as High Impact Businesses

22 pursuant to subdivision (a)(3)(E) of this Section shall qualify

23 for the exemptions described in Section 5l of the Retailers'

24 Occupation Tax Act; any business so designated as a High Impact

25 Business being, for purposes of this Section, a "Wind Energy

26 Business".

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1 (b-7) Businesses designated as High Impact Businesses by

2 the Department shall qualify for the High Impact Business

3 construction jobs credit under subsection (h-5) of Section 201

4 of the Illinois Income Tax Act if the business meets the

5 criteria set forth in subsection (i) of this Section.

6 (c) High Impact Businesses located in federally designated

7 foreign trade zones or sub-zones are also eligible for

8 additional credits, exemptions and deductions as described in

9 the following Acts: Section 9-221 and Section 9-222.1 of the

10 Public Utilities Act; and subsection (g) of Section 201, and

11 Section 203 of the Illinois Income Tax Act.

12 (d) Except for businesses contemplated under subdivision

13 (a)(3)(E) of this Section, existing Illinois businesses which

14 apply for designation as a High Impact Business must provide

15 the Department with the prospective plan for which 1,500

16 full-time retained jobs would be eliminated in the event that

17 the business is not designated.

18 (e) Except for new wind power facilities contemplated under

19 subdivision (a)(3)(E) of this Section, new proposed facilities

20 which apply for designation as High Impact Business must

21 provide the Department with proof of alternative non-Illinois

22 sites which would receive the proposed investment and job

23 creation in the event that the business is not designated as a

24 High Impact Business.

25 (f) Except for businesses contemplated under subdivision

26 (a)(3)(E) of this Section, in the event that a business is

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1 designated a High Impact Business and it is later determined

2 after reasonable notice and an opportunity for a hearing as

3 provided under the Illinois Administrative Procedure Act, that

4 the business would have placed in service in qualified property

5 the investments and created or retained the requisite number of

6 jobs without the benefits of the High Impact Business

7 designation, the Department shall be required to immediately

8 revoke the designation and notify the Director of the

9 Department of Revenue who shall begin proceedings to recover

10 all wrongfully exempted State taxes with interest. The business

11 shall also be ineligible for all State funded Department

12 programs for a period of 10 years.

13 (g) The Department shall revoke a High Impact Business

14 designation if the participating business fails to comply with

15 the terms and conditions of the designation. However, the

16 penalties for new wind power facilities or Wind Energy

17 Businesses for failure to comply with any of the terms or

18 conditions of the Illinois Prevailing Wage Act shall be only

19 those penalties identified in the Illinois Prevailing Wage Act,

20 and the Department shall not revoke a High Impact Business

21 designation as a result of the failure to comply with any of

22 the terms or conditions of the Illinois Prevailing Wage Act in

23 relation to a new wind power facility or a Wind Energy

24 Business.

25 (h) Prior to designating a business, the Department shall

26 provide the members of the General Assembly and Commission on

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1 Government Forecasting and Accountability with a report

2 setting forth the terms and conditions of the designation and

3 guarantees that have been received by the Department in

4 relation to the proposed business being designated.

5 (i) High Impact Business construction jobs credit. A High

6 Impact Business may receive a tax credit against the tax

7 imposed under subsections (a) and (b) of Section 201 of the

8 Illinois Income Tax Act in an amount equal to 50% of the amount

9 of the incremental income tax attributable to High Impact

10 Business construction jobs credit employees employed in the

11 course of completing a High Impact Business construction jobs

12 project. However, the High Impact Business construction jobs

13 credit may equal 75% of the amount of the incremental income

14 tax attributable to High Impact Business construction jobs

15 credit employees if the High Impact Business construction jobs

16 credit project is located in an underserved area.

17 The Department shall certify to the Department of Revenue:

18 (1) the identity of taxpayers that are eligible for the High

19 Impact Business construction jobs credit; and (2) the amount of

20 High Impact Business construction jobs credits that are claimed

21 pursuant to subsection (h-5) of Section 201 of the Illinois

22 Income Tax Act in each taxable year. Any business entity that

23 receives a High Impact Business construction jobs credit shall

24 maintain a certified payroll pursuant to subsection (j) of this

25 Section.

26 As used in this subsection (i):

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1 "High Impact Business construction jobs credit" means an

2 amount equal to 50% (or 75% if the High Impact Business

3 construction project is located in an underserved area) of the

4 incremental income tax attributable to High Impact Business

5 construction job employees.

6 "High Impact Business construction job employee" means a

7 laborer or worker who is employed by an Illinois contractor or

8 subcontractor in the actual construction work on the site of a

9 High Impact Business construction job project.

10 "High Impact Business construction jobs project" means

11 building a structure or building or making improvements of any

12 kind to real property, undertaken and commissioned by a

13 business that was designated as a High Impact Business by the

14 Department. The term "High Impact Business construction jobs

15 project" does not include the routine operation, routine

16 repair, or routine maintenance of existing structures,

17 buildings, or real property.

18 "Incremental income tax" means the total amount withheld

19 during the taxable year from the compensation of High Impact

20 Business construction job employees.

21 "Underserved area" means a geographic area that meets one

22 or more of the following conditions:

23 (1) the area has a poverty rate of at least 20%

24 according to the latest federal decennial census;

25 (2) 75% or more of the children in the area participate

26 in the federal free lunch program according to reported

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1 statistics from the State Board of Education;

2 (3) at least 20% of the households in the area receive

3 assistance under the Supplemental Nutrition Assistance

4 Program (SNAP); or

5 (4) the area has an average unemployment rate, as

6 determined by the Illinois Department of Employment

7 Security, that is more than 120% of the national

8 unemployment average, as determined by the U.S. Department

9 of Labor, for a period of at least 2 consecutive calendar

10 years preceding the date of the application.

11 (j) Each contractor and subcontractor who is engaged in and

12 executing a High Impact Business Construction jobs project, as

13 defined under subsection (i) of this Section, for a business

14 that is entitled to a credit pursuant to subsection (i) of this

15 Section shall:

16 (1) make and keep, for a period of 5 years from the

17 date of the last payment made on or after the effective

18 date of this amendatory Act of the 101st General Assembly

19 on a contract or subcontract for a High Impact Business

20 Construction Jobs Project, records for all laborers and

21 other workers employed by the contractor or subcontractor

22 on the project; the records shall include:

23 (A) the worker's name;

24 (B) the worker's address;

25 (C) the worker's telephone number, if available;

26 (D) the worker's social security number;

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1 (E) the worker's classification or

2 classifications;

3 (F) the worker's gross and net wages paid in each

4 pay period;

5 (G) the worker's number of hours worked each day;

6 (H) the worker's starting and ending times of work

7 each day;

8 (I) the worker's hourly wage rate; and

9 (J) the worker's hourly overtime wage rate;

10 (2) no later than the 15th day of each calendar month,

11 provide a certified payroll for the immediately preceding

12 month to the taxpayer in charge of the High Impact Business

13 construction jobs project; within 5 business days after

14 receiving the certified payroll, the taxpayer shall file

15 the certified payroll with the Department of Labor and the

16 Department of Commerce and Economic Opportunity; a

17 certified payroll must be filed for only those calendar

18 months during which construction on a High Impact Business

19 construction jobs project has occurred; the certified

20 payroll shall consist of a complete copy of the records

21 identified in paragraph (1) of this subsection (j), but may

22 exclude the starting and ending times of work each day; the

23 certified payroll shall be accompanied by a statement

24 signed by the contractor or subcontractor or an officer,

25 employee, or agent of the contractor or subcontractor which

26 avers that:

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1 (A) he or she has examined the certified payroll

2 records required to be submitted by the Act and such

3 records are true and accurate; and

4 (B) the contractor or subcontractor is aware that

5 filing a certified payroll that he or she knows to be

6 false is a Class A misdemeanor.

7 A general contractor is not prohibited from relying on a

8 certified payroll of a lower-tier subcontractor, provided the

9 general contractor does not knowingly rely upon a

10 subcontractor's false certification.

11 Any contractor or subcontractor subject to this

12 subsection, and any officer, employee, or agent of such

13 contractor or subcontractor whose duty as an officer, employee,

14 or agent it is to file a certified payroll under this

15 subsection, who willfully fails to file such a certified

16 payroll on or before the date such certified payroll is

17 required by this paragraph to be filed and any person who

18 willfully files a false certified payroll that is false as to

19 any material fact is in violation of this Act and guilty of a

20 Class A misdemeanor.

21 The taxpayer in charge of the project shall keep the

22 records submitted in accordance with this subsection on or

23 after the effective date of this amendatory Act of the 101st

24 General Assembly for a period of 5 years from the date of the

25 last payment for work on a contract or subcontract for the High

26 Impact Business construction jobs project.

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1 The records submitted in accordance with this subsection

2 shall be considered public records, except an employee's

3 address, telephone number, and social security number, and made

4 available in accordance with the Freedom of Information Act.

5 The Department of Labor shall accept any reasonable submissions

6 by the contractor that meet the requirements of this subsection

7 (j) and shall share the information with the Department in

8 order to comply with the awarding of a High Impact Business

9 construction jobs credit. A contractor, subcontractor, or

10 public body may retain records required under this Section in

11 paper or electronic format.

12 (k) Upon 7 business days' notice, each contractor and

13 subcontractor shall make available for inspection and copying

14 at a location within this State during reasonable hours, the

15 records identified in this subsection (j) to the taxpayer in

16 charge of the High Impact Business construction jobs project,

17 its officers and agents, the Director of the Department of

18 Labor and his deputies and agents, and to federal, State, or

19 local law enforcement agencies and prosecutors.

20 (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)

21 (20 ILCS 655/13 new)

22 Sec. 13. Enterprise Zone construction jobs credit.

23 (a) A business entity in a certified Enterprise Zone that

24 makes a capital investment of at least $10,000,000 in an

25 Enterprise Zone construction jobs project may receive an

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1 Enterprise Zone construction jobs credit against the tax

2 imposed under subsections (a) and (b) of Section 201 of the

3 Illinois Income Tax Act in an amount equal to 50% of the amount

4 of the incremental income tax attributable to Enterprise Zone

5 construction jobs credit employees employed in the course of

6 completing an Enterprise Zone construction jobs project.

7 However, the Enterprise Zone construction jobs credit may equal

8 75% of the amount of the incremental income tax attributable to

9 Enterprise Zone construction jobs credit employees if the

10 project is located in an underserved area.

11 (b) A business entity seeking a credit under this Section

12 must submit an application to the Department and must receive

13 approval from the designating municipality or county and the

14 Department for the Enterprise Zone construction jobs credit

15 project. The application must describe the nature and benefit

16 of the project to the certified Enterprise Zone and its

17 potential contributors.

18 Within 45 days after receipt of an application, the

19 Department shall give notice to the applicant as to whether the

20 application has been approved or disapproved. If the Department

21 disapproves the application, it shall specify the reasons for

22 this decision and allow 60 days for the applicant to amend and

23 resubmit its application. The Department shall provide

24 assistance upon request to applicants. Resubmitted

25 applications shall receive the Department's approval or

26 disapproval within 30 days after the application is

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1 resubmitted. Those resubmitted applications satisfying initial

2 Department objectives shall be approved unless reasonable

3 circumstances warrant disapproval.

4 On an annual basis, the designated zone organization shall

5 furnish a statement to the Department on the programmatic and

6 financial status of any approved project and an audited

7 financial statement of the project.

8 The Department shall certify to the Department of Revenue

9 the identity of taxpayers who are eligible for the credits and

10 the amount of credits that are claimed pursuant to subparagraph

11 (8) of subsection (f) of Section 201 the Illinois Income Tax

12 Act.

13 The Enterprise Zone construction jobs credit project must

14 be undertaken by the business entity in the course of

15 completing a project that complies with the criteria contained

16 in Section 4 of this Act and is undertaken in a certified

17 Enterprise Zone. The Department shall adopt any necessary rules

18 for the implementation of this subsection (b).

19 (c) Any business entity that receives an Enterprise Zone

20 construction jobs credit shall maintain a certified payroll

21 pursuant to subsection (d) of this Section.

22 (d) Each contractor and subcontractor who is engaged in and

23 is executing an Enterprise Zone Construction jobs credit

24 project for a business that is entitled to a credit pursuant to

25 this Section shall:

26 (1) make and keep, for a period of 5 years from the

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1 date of the last payment made on or after the effective

2 date of this amendatory Act of the 101st General Assembly

3 on a contract or subcontract for an Enterprise Zone

4 construction jobs credit project, records for all laborers

5 and other workers employed by them on the project; the

6 records shall include:

7 (A) the worker's name;

8 (B) the worker's address;

9 (C) the worker's telephone number, if available;

10 (D) the worker's social security number;

11 (E) the worker's classification or

12 classifications;

13 (F) the worker's gross and net wages paid in each

14 pay period;

15 (G) the worker's number of hours worked each day;

16 (H) the worker's starting and ending times of work

17 each day;

18 (I) the worker's hourly wage rate; and

19 (J) the worker's hourly overtime wage rate;

20 (2) no later than the 15th day of each calendar month,

21 provide a certified payroll for the immediately preceding

22 month to the taxpayer in charge of the project; within 5

23 business days after receiving the certified payroll, the

24 taxpayer shall file the certified payroll with the

25 Department of Labor and the Department of Commerce and

26 Economic Opportunity; a certified payroll must be filed for

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1 only those calendar months during which construction on an

2 Enterprise Zone construction jobs project has occurred;

3 the certified payroll shall consist of a complete copy of

4 the records identified in paragraph (1) of this subsection

5 (d), but may exclude the starting and ending times of work

6 each day; the certified payroll shall be accompanied by a

7 statement signed by the contractor or subcontractor or an

8 officer, employee, or agent of the contractor or

9 subcontractor which avers that:

10 (A) he or she has examined the certified payroll

11 records required to be submitted by the Act and such

12 records are true and accurate; and

13 (B) the contractor or subcontractor is aware that

14 filing a certified payroll that he or she knows to be

15 false is a Class A misdemeanor.

16 A general contractor is not prohibited from relying on a

17 certified payroll of a lower-tier subcontractor, provided the

18 general contractor does not knowingly rely upon a

19 subcontractor's false certification.

20 Any contractor or subcontractor subject to this

21 subsection, and any officer, employee, or agent of such

22 contractor or subcontractor whose duty as an officer, employee,

23 or agent it is to file a certified payroll under this

24 subsection, who willfully fails to file such a certified

25 payroll on or before the date such certified payroll is

26 required by this paragraph to be filed and any person who

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1 willfully files a false certified payroll that is false as to

2 any material fact is in violation of this Act and guilty of a

3 Class A misdemeanor.

4 The taxpayer in charge of the project shall keep the

5 records submitted in accordance with this subsection on or

6 after the effective date of this amendatory Act of the 101st

7 General Assembly for a period of 5 years from the date of the

8 last payment for work on a contract or subcontract for the

9 project.

10 The records submitted in accordance with this subsection

11 shall be considered public records, except an employee's

12 address, telephone number, and social security number, and made

13 available in accordance with the Freedom of Information Act.

14 The Department of Labor shall accept any reasonable submissions

15 by the contractor that meet the requirements of this subsection

16 and shall share the information with the Department in order to

17 comply with the awarding of Enterprise Zone construction jobs

18 credits. A contractor, subcontractor, or public body may retain

19 records required under this Section in paper or electronic

20 format.

21 Upon 7 business days' notice, the contractor and each

22 subcontractor shall make available for inspection and copying

23 at a location within this State during reasonable hours, the

24 records identified in paragraph (1) of this subsection to the

25 taxpayer in charge of the project, its officers and agents, the

26 Director of Labor and his deputies and agents, and to federal,

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1 State, or local law enforcement agencies and prosecutors.

2 (e) As used in this Section:

3 "Enterprise Zone construction jobs credit" means an amount

4 equal to 50% (or 75% if the project is located in an

5 underserved area) of the incremental income tax attributable to

6 Enterprise Zone construction jobs credit employees.

7 "Enterprise Zone construction jobs credit employee" means

8 a laborer or worker who is employed by an Illinois contractor

9 or subcontractor in the actual construction work on the site of

10 an Enterprise Zone construction jobs credit project.

11 "Enterprise Zone construction jobs credit project" means

12 building a structure or building or making improvements of any

13 kind to real property commissioned and paid for by a business

14 that has applied and been approved for an Enterprise Zone

15 construction jobs credit pursuant to this Section. "Enterprise

16 Zone construction jobs credit project" does not include the

17 routine operation, routine repair, or routine maintenance of

18 existing structures, buildings, or real property.

19 "Incremental income tax" means the total amount withheld

20 during the taxable year from the compensation of Enterprise

21 Zone construction jobs credit employees.

22 "Underserved area" means a geographic area that meets one

23 or more of the following conditions:

24 (1) the area has a poverty rate of at least 20%

25 according to the latest federal decennial census;

26 (2) 75% or more of the children in the area participate

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1 in the federal free lunch program according to reported

2 statistics from the State Board of Education;

3 (3) at least 20% of the households in the area receive

4 assistance under the Supplemental Nutrition Assistance

5 Program (SNAP); or

6 (4) the area has an average unemployment rate, as

7 determined by the Illinois Department of Employment

8 Security, that is more than 120% of the national

9 unemployment average, as determined by the U.S. Department

10 of Labor, for a period of at least 2 consecutive calendar

11 years preceding the date of the application.

12 Section 10. The Illinois Income Tax Act is amended by

13 changing Sections 201, 211, and 221 as follows:

14 (35 ILCS 5/201) (from Ch. 120, par. 2-201)

15 Sec. 201. Tax imposed.

16 (a) In general. A tax measured by net income is hereby

17 imposed on every individual, corporation, trust and estate for

18 each taxable year ending after July 31, 1969 on the privilege

19 of earning or receiving income in or as a resident of this

20 State. Such tax shall be in addition to all other occupation or

21 privilege taxes imposed by this State or by any municipal

22 corporation or political subdivision thereof.

23 (b) Rates. The tax imposed by subsection (a) of this

24 Section shall be determined as follows, except as adjusted by

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1 subsection (d-1):

2 (1) In the case of an individual, trust or estate, for

3 taxable years ending prior to July 1, 1989, an amount equal

4 to 2 1/2% of the taxpayer's net income for the taxable

5 year.

6 (2) In the case of an individual, trust or estate, for

7 taxable years beginning prior to July 1, 1989 and ending

8 after June 30, 1989, an amount equal to the sum of (i) 2

9 1/2% of the taxpayer's net income for the period prior to

10 July 1, 1989, as calculated under Section 202.3, and (ii)

11 3% of the taxpayer's net income for the period after June

12 30, 1989, as calculated under Section 202.3.

13 (3) In the case of an individual, trust or estate, for

14 taxable years beginning after June 30, 1989, and ending

15 prior to January 1, 2011, an amount equal to 3% of the

16 taxpayer's net income for the taxable year.

17 (4) In the case of an individual, trust, or estate, for

18 taxable years beginning prior to January 1, 2011, and

19 ending after December 31, 2010, an amount equal to the sum

20 of (i) 3% of the taxpayer's net income for the period prior

21 to January 1, 2011, as calculated under Section 202.5, and

22 (ii) 5% of the taxpayer's net income for the period after

23 December 31, 2010, as calculated under Section 202.5.

24 (5) In the case of an individual, trust, or estate, for

25 taxable years beginning on or after January 1, 2011, and

26 ending prior to January 1, 2015, an amount equal to 5% of

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1 the taxpayer's net income for the taxable year.

2 (5.1) In the case of an individual, trust, or estate,

3 for taxable years beginning prior to January 1, 2015, and

4 ending after December 31, 2014, an amount equal to the sum

5 of (i) 5% of the taxpayer's net income for the period prior

6 to January 1, 2015, as calculated under Section 202.5, and

7 (ii) 3.75% of the taxpayer's net income for the period

8 after December 31, 2014, as calculated under Section 202.5.

9 (5.2) In the case of an individual, trust, or estate,

10 for taxable years beginning on or after January 1, 2015,

11 and ending prior to July 1, 2017, an amount equal to 3.75%

12 of the taxpayer's net income for the taxable year.

13 (5.3) In the case of an individual, trust, or estate,

14 for taxable years beginning prior to July 1, 2017, and

15 ending after June 30, 2017, an amount equal to the sum of

16 (i) 3.75% of the taxpayer's net income for the period prior

17 to July 1, 2017, as calculated under Section 202.5, and

18 (ii) 4.95% of the taxpayer's net income for the period

19 after June 30, 2017, as calculated under Section 202.5.

20 (5.4) In the case of an individual, trust, or estate,

21 for taxable years beginning on or after July 1, 2017, an

22 amount equal to 4.95% of the taxpayer's net income for the

23 taxable year.

24 (6) In the case of a corporation, for taxable years

25 ending prior to July 1, 1989, an amount equal to 4% of the

26 taxpayer's net income for the taxable year.

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1 (7) In the case of a corporation, for taxable years

2 beginning prior to July 1, 1989 and ending after June 30,

3 1989, an amount equal to the sum of (i) 4% of the

4 taxpayer's net income for the period prior to July 1, 1989,

5 as calculated under Section 202.3, and (ii) 4.8% of the

6 taxpayer's net income for the period after June 30, 1989,

7 as calculated under Section 202.3.

8 (8) In the case of a corporation, for taxable years

9 beginning after June 30, 1989, and ending prior to January

10 1, 2011, an amount equal to 4.8% of the taxpayer's net

11 income for the taxable year.

12 (9) In the case of a corporation, for taxable years

13 beginning prior to January 1, 2011, and ending after

14 December 31, 2010, an amount equal to the sum of (i) 4.8%

15 of the taxpayer's net income for the period prior to

16 January 1, 2011, as calculated under Section 202.5, and

17 (ii) 7% of the taxpayer's net income for the period after

18 December 31, 2010, as calculated under Section 202.5.

19 (10) In the case of a corporation, for taxable years

20 beginning on or after January 1, 2011, and ending prior to

21 January 1, 2015, an amount equal to 7% of the taxpayer's

22 net income for the taxable year.

23 (11) In the case of a corporation, for taxable years

24 beginning prior to January 1, 2015, and ending after

25 December 31, 2014, an amount equal to the sum of (i) 7% of

26 the taxpayer's net income for the period prior to January

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1 1, 2015, as calculated under Section 202.5, and (ii) 5.25%

2 of the taxpayer's net income for the period after December

3 31, 2014, as calculated under Section 202.5.

4 (12) In the case of a corporation, for taxable years

5 beginning on or after January 1, 2015, and ending prior to

6 July 1, 2017, an amount equal to 5.25% of the taxpayer's

7 net income for the taxable year.

8 (13) In the case of a corporation, for taxable years

9 beginning prior to July 1, 2017, and ending after June 30,

10 2017, an amount equal to the sum of (i) 5.25% of the

11 taxpayer's net income for the period prior to July 1, 2017,

12 as calculated under Section 202.5, and (ii) 7% of the

13 taxpayer's net income for the period after June 30, 2017,

14 as calculated under Section 202.5.

15 (14) In the case of a corporation, for taxable years

16 beginning on or after July 1, 2017, an amount equal to 7%

17 of the taxpayer's net income for the taxable year.

18 The rates under this subsection (b) are subject to the

19 provisions of Section 201.5.

20 (c) Personal Property Tax Replacement Income Tax.

21 Beginning on July 1, 1979 and thereafter, in addition to such

22 income tax, there is also hereby imposed the Personal Property

23 Tax Replacement Income Tax measured by net income on every

24 corporation (including Subchapter S corporations), partnership

25 and trust, for each taxable year ending after June 30, 1979.

26 Such taxes are imposed on the privilege of earning or receiving

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1 income in or as a resident of this State. The Personal Property

2 Tax Replacement Income Tax shall be in addition to the income

3 tax imposed by subsections (a) and (b) of this Section and in

4 addition to all other occupation or privilege taxes imposed by

5 this State or by any municipal corporation or political

6 subdivision thereof.

7 (d) Additional Personal Property Tax Replacement Income

8 Tax Rates. The personal property tax replacement income tax

9 imposed by this subsection and subsection (c) of this Section

10 in the case of a corporation, other than a Subchapter S

11 corporation and except as adjusted by subsection (d-1), shall

12 be an additional amount equal to 2.85% of such taxpayer's net

13 income for the taxable year, except that beginning on January

14 1, 1981, and thereafter, the rate of 2.85% specified in this

15 subsection shall be reduced to 2.5%, and in the case of a

16 partnership, trust or a Subchapter S corporation shall be an

17 additional amount equal to 1.5% of such taxpayer's net income

18 for the taxable year.

19 (d-1) Rate reduction for certain foreign insurers. In the

20 case of a foreign insurer, as defined by Section 35A-5 of the

21 Illinois Insurance Code, whose state or country of domicile

22 imposes on insurers domiciled in Illinois a retaliatory tax

23 (excluding any insurer whose premiums from reinsurance assumed

24 are 50% or more of its total insurance premiums as determined

25 under paragraph (2) of subsection (b) of Section 304, except

26 that for purposes of this determination premiums from

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1 reinsurance do not include premiums from inter-affiliate

2 reinsurance arrangements), beginning with taxable years ending

3 on or after December 31, 1999, the sum of the rates of tax

4 imposed by subsections (b) and (d) shall be reduced (but not

5 increased) to the rate at which the total amount of tax imposed

6 under this Act, net of all credits allowed under this Act,

7 shall equal (i) the total amount of tax that would be imposed

8 on the foreign insurer's net income allocable to Illinois for

9 the taxable year by such foreign insurer's state or country of

10 domicile if that net income were subject to all income taxes

11 and taxes measured by net income imposed by such foreign

12 insurer's state or country of domicile, net of all credits

13 allowed or (ii) a rate of zero if no such tax is imposed on such

14 income by the foreign insurer's state of domicile. For the

15 purposes of this subsection (d-1), an inter-affiliate includes

16 a mutual insurer under common management.

17 (1) For the purposes of subsection (d-1), in no event

18 shall the sum of the rates of tax imposed by subsections

19 (b) and (d) be reduced below the rate at which the sum of:

20 (A) the total amount of tax imposed on such foreign

21 insurer under this Act for a taxable year, net of all

22 credits allowed under this Act, plus

23 (B) the privilege tax imposed by Section 409 of the

24 Illinois Insurance Code, the fire insurance company

25 tax imposed by Section 12 of the Fire Investigation

26 Act, and the fire department taxes imposed under

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1 Section 11-10-1 of the Illinois Municipal Code,

2 equals 1.25% for taxable years ending prior to December 31,

3 2003, or 1.75% for taxable years ending on or after

4 December 31, 2003, of the net taxable premiums written for

5 the taxable year, as described by subsection (1) of Section

6 409 of the Illinois Insurance Code. This paragraph will in

7 no event increase the rates imposed under subsections (b)

8 and (d).

9 (2) Any reduction in the rates of tax imposed by this

10 subsection shall be applied first against the rates imposed

11 by subsection (b) and only after the tax imposed by

12 subsection (a) net of all credits allowed under this

13 Section other than the credit allowed under subsection (i)

14 has been reduced to zero, against the rates imposed by

15 subsection (d).

16 This subsection (d-1) is exempt from the provisions of

17 Section 250.

18 (e) Investment credit. A taxpayer shall be allowed a credit

19 against the Personal Property Tax Replacement Income Tax for

20 investment in qualified property.

21 (1) A taxpayer shall be allowed a credit equal to .5%

22 of the basis of qualified property placed in service during

23 the taxable year, provided such property is placed in

24 service on or after July 1, 1984. There shall be allowed an

25 additional credit equal to .5% of the basis of qualified

26 property placed in service during the taxable year,

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1 provided such property is placed in service on or after

2 July 1, 1986, and the taxpayer's base employment within

3 Illinois has increased by 1% or more over the preceding

4 year as determined by the taxpayer's employment records

5 filed with the Illinois Department of Employment Security.

6 Taxpayers who are new to Illinois shall be deemed to have

7 met the 1% growth in base employment for the first year in

8 which they file employment records with the Illinois

9 Department of Employment Security. The provisions added to

10 this Section by Public Act 85-1200 (and restored by Public

11 Act 87-895) shall be construed as declaratory of existing

12 law and not as a new enactment. If, in any year, the

13 increase in base employment within Illinois over the

14 preceding year is less than 1%, the additional credit shall

15 be limited to that percentage times a fraction, the

16 numerator of which is .5% and the denominator of which is

17 1%, but shall not exceed .5%. The investment credit shall

18 not be allowed to the extent that it would reduce a

19 taxpayer's liability in any tax year below zero, nor may

20 any credit for qualified property be allowed for any year

21 other than the year in which the property was placed in

22 service in Illinois. For tax years ending on or after

23 December 31, 1987, and on or before December 31, 1988, the

24 credit shall be allowed for the tax year in which the

25 property is placed in service, or, if the amount of the

26 credit exceeds the tax liability for that year, whether it

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1 exceeds the original liability or the liability as later

2 amended, such excess may be carried forward and applied to

3 the tax liability of the 5 taxable years following the

4 excess credit years if the taxpayer (i) makes investments

5 which cause the creation of a minimum of 2,000 full-time

6 equivalent jobs in Illinois, (ii) is located in an

7 enterprise zone established pursuant to the Illinois

8 Enterprise Zone Act and (iii) is certified by the

9 Department of Commerce and Community Affairs (now

10 Department of Commerce and Economic Opportunity) as

11 complying with the requirements specified in clause (i) and

12 (ii) by July 1, 1986. The Department of Commerce and

13 Community Affairs (now Department of Commerce and Economic

14 Opportunity) shall notify the Department of Revenue of all

15 such certifications immediately. For tax years ending

16 after December 31, 1988, the credit shall be allowed for

17 the tax year in which the property is placed in service,

18 or, if the amount of the credit exceeds the tax liability

19 for that year, whether it exceeds the original liability or

20 the liability as later amended, such excess may be carried

21 forward and applied to the tax liability of the 5 taxable

22 years following the excess credit years. The credit shall

23 be applied to the earliest year for which there is a

24 liability. If there is credit from more than one tax year

25 that is available to offset a liability, earlier credit

26 shall be applied first.

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1 (2) The term "qualified property" means property

2 which:

3 (A) is tangible, whether new or used, including

4 buildings and structural components of buildings and

5 signs that are real property, but not including land or

6 improvements to real property that are not a structural

7 component of a building such as landscaping, sewer

8 lines, local access roads, fencing, parking lots, and

9 other appurtenances;

10 (B) is depreciable pursuant to Section 167 of the

11 Internal Revenue Code, except that "3-year property"

12 as defined in Section 168(c)(2)(A) of that Code is not

13 eligible for the credit provided by this subsection

14 (e);

15 (C) is acquired by purchase as defined in Section

16 179(d) of the Internal Revenue Code;

17 (D) is used in Illinois by a taxpayer who is

18 primarily engaged in manufacturing, or in mining coal

19 or fluorite, or in retailing, or was placed in service

20 on or after July 1, 2006 in a River Edge Redevelopment

21 Zone established pursuant to the River Edge

22 Redevelopment Zone Act; and

23 (E) has not previously been used in Illinois in

24 such a manner and by such a person as would qualify for

25 the credit provided by this subsection (e) or

26 subsection (f).

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1 (3) For purposes of this subsection (e),

2 "manufacturing" means the material staging and production

3 of tangible personal property by procedures commonly

4 regarded as manufacturing, processing, fabrication, or

5 assembling which changes some existing material into new

6 shapes, new qualities, or new combinations. For purposes of

7 this subsection (e) the term "mining" shall have the same

8 meaning as the term "mining" in Section 613(c) of the

9 Internal Revenue Code. For purposes of this subsection (e),

10 the term "retailing" means the sale of tangible personal

11 property for use or consumption and not for resale, or

12 services rendered in conjunction with the sale of tangible

13 personal property for use or consumption and not for

14 resale. For purposes of this subsection (e), "tangible

15 personal property" has the same meaning as when that term

16 is used in the Retailers' Occupation Tax Act, and, for

17 taxable years ending after December 31, 2008, does not

18 include the generation, transmission, or distribution of

19 electricity.

20 (4) The basis of qualified property shall be the basis

21 used to compute the depreciation deduction for federal

22 income tax purposes.

23 (5) If the basis of the property for federal income tax

24 depreciation purposes is increased after it has been placed

25 in service in Illinois by the taxpayer, the amount of such

26 increase shall be deemed property placed in service on the

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1 date of such increase in basis.

2 (6) The term "placed in service" shall have the same

3 meaning as under Section 46 of the Internal Revenue Code.

4 (7) If during any taxable year, any property ceases to

5 be qualified property in the hands of the taxpayer within

6 48 months after being placed in service, or the situs of

7 any qualified property is moved outside Illinois within 48

8 months after being placed in service, the Personal Property

9 Tax Replacement Income Tax for such taxable year shall be

10 increased. Such increase shall be determined by (i)

11 recomputing the investment credit which would have been

12 allowed for the year in which credit for such property was

13 originally allowed by eliminating such property from such

14 computation and, (ii) subtracting such recomputed credit

15 from the amount of credit previously allowed. For the

16 purposes of this paragraph (7), a reduction of the basis of

17 qualified property resulting from a redetermination of the

18 purchase price shall be deemed a disposition of qualified

19 property to the extent of such reduction.

20 (8) Unless the investment credit is extended by law,

21 the basis of qualified property shall not include costs

22 incurred after December 31, 2018, except for costs incurred

23 pursuant to a binding contract entered into on or before

24 December 31, 2018.

25 (9) Each taxable year ending before December 31, 2000,

26 a partnership may elect to pass through to its partners the

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1 credits to which the partnership is entitled under this

2 subsection (e) for the taxable year. A partner may use the

3 credit allocated to him or her under this paragraph only

4 against the tax imposed in subsections (c) and (d) of this

5 Section. If the partnership makes that election, those

6 credits shall be allocated among the partners in the

7 partnership in accordance with the rules set forth in

8 Section 704(b) of the Internal Revenue Code, and the rules

9 promulgated under that Section, and the allocated amount of

10 the credits shall be allowed to the partners for that

11 taxable year. The partnership shall make this election on

12 its Personal Property Tax Replacement Income Tax return for

13 that taxable year. The election to pass through the credits

14 shall be irrevocable.

15 For taxable years ending on or after December 31, 2000,

16 a partner that qualifies its partnership for a subtraction

17 under subparagraph (I) of paragraph (2) of subsection (d)

18 of Section 203 or a shareholder that qualifies a Subchapter

19 S corporation for a subtraction under subparagraph (S) of

20 paragraph (2) of subsection (b) of Section 203 shall be

21 allowed a credit under this subsection (e) equal to its

22 share of the credit earned under this subsection (e) during

23 the taxable year by the partnership or Subchapter S

24 corporation, determined in accordance with the

25 determination of income and distributive share of income

26 under Sections 702 and 704 and Subchapter S of the Internal

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1 Revenue Code. This paragraph is exempt from the provisions

2 of Section 250.

3 (f) Investment credit; Enterprise Zone; River Edge

4 Redevelopment Zone.

5 (1) A taxpayer shall be allowed a credit against the

6 tax imposed by subsections (a) and (b) of this Section for

7 investment in qualified property which is placed in service

8 in an Enterprise Zone created pursuant to the Illinois

9 Enterprise Zone Act or, for property placed in service on

10 or after July 1, 2006, a River Edge Redevelopment Zone

11 established pursuant to the River Edge Redevelopment Zone

12 Act. For partners, shareholders of Subchapter S

13 corporations, and owners of limited liability companies,

14 if the liability company is treated as a partnership for

15 purposes of federal and State income taxation, there shall

16 be allowed a credit under this subsection (f) to be

17 determined in accordance with the determination of income

18 and distributive share of income under Sections 702 and 704

19 and Subchapter S of the Internal Revenue Code. The credit

20 shall be .5% of the basis for such property. The credit

21 shall be available only in the taxable year in which the

22 property is placed in service in the Enterprise Zone or

23 River Edge Redevelopment Zone and shall not be allowed to

24 the extent that it would reduce a taxpayer's liability for

25 the tax imposed by subsections (a) and (b) of this Section

26 to below zero. For tax years ending on or after December

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1 31, 1985, the credit shall be allowed for the tax year in

2 which the property is placed in service, or, if the amount

3 of the credit exceeds the tax liability for that year,

4 whether it exceeds the original liability or the liability

5 as later amended, such excess may be carried forward and

6 applied to the tax liability of the 5 taxable years

7 following the excess credit year. The credit shall be

8 applied to the earliest year for which there is a

9 liability. If there is credit from more than one tax year

10 that is available to offset a liability, the credit

11 accruing first in time shall be applied first.

12 (2) The term qualified property means property which:

13 (A) is tangible, whether new or used, including

14 buildings and structural components of buildings;

15 (B) is depreciable pursuant to Section 167 of the

16 Internal Revenue Code, except that "3-year property"

17 as defined in Section 168(c)(2)(A) of that Code is not

18 eligible for the credit provided by this subsection

19 (f);

20 (C) is acquired by purchase as defined in Section

21 179(d) of the Internal Revenue Code;

22 (D) is used in the Enterprise Zone or River Edge

23 Redevelopment Zone by the taxpayer; and

24 (E) has not been previously used in Illinois in

25 such a manner and by such a person as would qualify for

26 the credit provided by this subsection (f) or

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1 subsection (e).

2 (3) The basis of qualified property shall be the basis

3 used to compute the depreciation deduction for federal

4 income tax purposes.

5 (4) If the basis of the property for federal income tax

6 depreciation purposes is increased after it has been placed

7 in service in the Enterprise Zone or River Edge

8 Redevelopment Zone by the taxpayer, the amount of such

9 increase shall be deemed property placed in service on the

10 date of such increase in basis.

11 (5) The term "placed in service" shall have the same

12 meaning as under Section 46 of the Internal Revenue Code.

13 (6) If during any taxable year, any property ceases to

14 be qualified property in the hands of the taxpayer within

15 48 months after being placed in service, or the situs of

16 any qualified property is moved outside the Enterprise Zone

17 or River Edge Redevelopment Zone within 48 months after

18 being placed in service, the tax imposed under subsections

19 (a) and (b) of this Section for such taxable year shall be

20 increased. Such increase shall be determined by (i)

21 recomputing the investment credit which would have been

22 allowed for the year in which credit for such property was

23 originally allowed by eliminating such property from such

24 computation, and (ii) subtracting such recomputed credit

25 from the amount of credit previously allowed. For the

26 purposes of this paragraph (6), a reduction of the basis of

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1 qualified property resulting from a redetermination of the

2 purchase price shall be deemed a disposition of qualified

3 property to the extent of such reduction.

4 (7) There shall be allowed an additional credit equal

5 to 0.5% of the basis of qualified property placed in

6 service during the taxable year in a River Edge

7 Redevelopment Zone, provided such property is placed in

8 service on or after July 1, 2006, and the taxpayer's base

9 employment within Illinois has increased by 1% or more over

10 the preceding year as determined by the taxpayer's

11 employment records filed with the Illinois Department of

12 Employment Security. Taxpayers who are new to Illinois

13 shall be deemed to have met the 1% growth in base

14 employment for the first year in which they file employment

15 records with the Illinois Department of Employment

16 Security. If, in any year, the increase in base employment

17 within Illinois over the preceding year is less than 1%,

18 the additional credit shall be limited to that percentage

19 times a fraction, the numerator of which is 0.5% and the

20 denominator of which is 1%, but shall not exceed 0.5%.

21 (8) For taxable years beginning on or after the

22 effective date of this amendatory Act of the 101st General

23 Assembly, there shall be allowed an Enterprise Zone

24 construction jobs credit against the taxes imposed under

25 subsections (a) and (b) of this Section as provided in

26 Section 13 of the Illinois Enterprise Zone Act.

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1 The credit or credits may not reduce the taxpayer's

2 liability to less than zero. If the amount of the credit or

3 credits exceeds the taxpayer's liability, the excess may be

4 carried forward and applied against the taxpayer's

5 liability in succeeding calendar years in the same manner

6 provided under paragraph (4) of Section 211 of this Act.

7 The credit or credits shall be applied to the earliest year

8 for which there is a tax liability. If there are credits

9 from more than one taxable year that are available to

10 offset a liability, the earlier credit shall be applied

11 first.

12 For partners, shareholders of Subchapter S

13 corporations, and owners of limited liability companies,

14 if the liability company is treated as a partnership for

15 the purposes of federal and State income taxation, there

16 shall be allowed a credit under this Section to be

17 determined in accordance with the determination of income

18 and distributive share of income under Sections 702 and 704

19 and Subchapter S of the Internal Revenue Code.

20 This paragraph (8) is exempt from the provisions of

21 Section 250.

22 (g) (Blank).

23 (h) Investment credit; High Impact Business.

24 (1) Subject to subsections (b) and (b-5) of Section 5.5

25 of the Illinois Enterprise Zone Act, a taxpayer shall be

26 allowed a credit against the tax imposed by subsections (a)

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1 and (b) of this Section for investment in qualified

2 property which is placed in service by a Department of

3 Commerce and Economic Opportunity designated High Impact

4 Business. The credit shall be .5% of the basis for such

5 property. The credit shall not be available (i) until the

6 minimum investments in qualified property set forth in

7 subdivision (a)(3)(A) of Section 5.5 of the Illinois

8 Enterprise Zone Act have been satisfied or (ii) until the

9 time authorized in subsection (b-5) of the Illinois

10 Enterprise Zone Act for entities designated as High Impact

11 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

12 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone

13 Act, and shall not be allowed to the extent that it would

14 reduce a taxpayer's liability for the tax imposed by

15 subsections (a) and (b) of this Section to below zero. The

16 credit applicable to such investments shall be taken in the

17 taxable year in which such investments have been completed.

18 The credit for additional investments beyond the minimum

19 investment by a designated high impact business authorized

20 under subdivision (a)(3)(A) of Section 5.5 of the Illinois

21 Enterprise Zone Act shall be available only in the taxable

22 year in which the property is placed in service and shall

23 not be allowed to the extent that it would reduce a

24 taxpayer's liability for the tax imposed by subsections (a)

25 and (b) of this Section to below zero. For tax years ending

26 on or after December 31, 1987, the credit shall be allowed

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1 for the tax year in which the property is placed in

2 service, or, if the amount of the credit exceeds the tax

3 liability for that year, whether it exceeds the original

4 liability or the liability as later amended, such excess

5 may be carried forward and applied to the tax liability of

6 the 5 taxable years following the excess credit year. The

7 credit shall be applied to the earliest year for which

8 there is a liability. If there is credit from more than one

9 tax year that is available to offset a liability, the

10 credit accruing first in time shall be applied first.

11 Changes made in this subdivision (h)(1) by Public Act

12 88-670 restore changes made by Public Act 85-1182 and

13 reflect existing law.

14 (2) The term qualified property means property which:

15 (A) is tangible, whether new or used, including

16 buildings and structural components of buildings;

17 (B) is depreciable pursuant to Section 167 of the

18 Internal Revenue Code, except that "3-year property"

19 as defined in Section 168(c)(2)(A) of that Code is not

20 eligible for the credit provided by this subsection

21 (h);

22 (C) is acquired by purchase as defined in Section

23 179(d) of the Internal Revenue Code; and

24 (D) is not eligible for the Enterprise Zone

25 Investment Credit provided by subsection (f) of this

26 Section.

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1 (3) The basis of qualified property shall be the basis

2 used to compute the depreciation deduction for federal

3 income tax purposes.

4 (4) If the basis of the property for federal income tax

5 depreciation purposes is increased after it has been placed

6 in service in a federally designated Foreign Trade Zone or

7 Sub-Zone located in Illinois by the taxpayer, the amount of

8 such increase shall be deemed property placed in service on

9 the date of such increase in basis.

10 (5) The term "placed in service" shall have the same

11 meaning as under Section 46 of the Internal Revenue Code.

12 (6) If during any taxable year ending on or before

13 December 31, 1996, any property ceases to be qualified

14 property in the hands of the taxpayer within 48 months

15 after being placed in service, or the situs of any

16 qualified property is moved outside Illinois within 48

17 months after being placed in service, the tax imposed under

18 subsections (a) and (b) of this Section for such taxable

19 year shall be increased. Such increase shall be determined

20 by (i) recomputing the investment credit which would have

21 been allowed for the year in which credit for such property

22 was originally allowed by eliminating such property from

23 such computation, and (ii) subtracting such recomputed

24 credit from the amount of credit previously allowed. For

25 the purposes of this paragraph (6), a reduction of the

26 basis of qualified property resulting from a

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1 redetermination of the purchase price shall be deemed a

2 disposition of qualified property to the extent of such

3 reduction.

4 (7) Beginning with tax years ending after December 31,

5 1996, if a taxpayer qualifies for the credit under this

6 subsection (h) and thereby is granted a tax abatement and

7 the taxpayer relocates its entire facility in violation of

8 the explicit terms and length of the contract under Section

9 18-183 of the Property Tax Code, the tax imposed under

10 subsections (a) and (b) of this Section shall be increased

11 for the taxable year in which the taxpayer relocated its

12 facility by an amount equal to the amount of credit

13 received by the taxpayer under this subsection (h).

14 (h-5) High Impact Business constructions jobs credit. For

15 taxable years beginning on or after the effective date of this

16 amendatory Act of the 101st General Assembly, there shall also

17 be allowed a High Impact Business construction jobs credit

18 against the tax imposed under subsections (a) and (b) of this

19 Section as provided in subsections (i) and (j) of Section 5.5

20 of the Illinois Enterprise Zone Act.

21 The credit or credits may not reduce the taxpayer's

22 liability to less than zero. If the amount of the credit or

23 credits exceeds the taxpayer's liability, the excess may be

24 carried forward and applied against the taxpayer's liability in

25 succeeding calendar years in the manner provided under

26 paragraph (4) of Section 211 of this Act. The credit or credits

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1 shall be applied to the earliest year for which there is a tax

2 liability. If there are credits from more than one taxable year

3 that are available to offset a liability, the earlier credit

4 shall be applied first.

5 For partners, shareholders of Subchapter S corporations,

6 and owners of limited liability companies, if the liability

7 company is treated as a partnership for the purposes of federal

8 and State income taxation, there shall be allowed a credit

9 under this Section to be determined in accordance with the

10 determination of income and distributive share of income under

11 Sections 702 and 704 and Subchapter S of the Internal Revenue

12 Code.

13 This subsection (h-5) is exempt from the provisions of

14 Section 250.

15 (i) Credit for Personal Property Tax Replacement Income

16 Tax. For tax years ending prior to December 31, 2003, a credit

17 shall be allowed against the tax imposed by subsections (a) and

18 (b) of this Section for the tax imposed by subsections (c) and

19 (d) of this Section. This credit shall be computed by

20 multiplying the tax imposed by subsections (c) and (d) of this

21 Section by a fraction, the numerator of which is base income

22 allocable to Illinois and the denominator of which is Illinois

23 base income, and further multiplying the product by the tax

24 rate imposed by subsections (a) and (b) of this Section.

25 Any credit earned on or after December 31, 1986 under this

26 subsection which is unused in the year the credit is computed

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1 because it exceeds the tax liability imposed by subsections (a)

2 and (b) for that year (whether it exceeds the original

3 liability or the liability as later amended) may be carried

4 forward and applied to the tax liability imposed by subsections

5 (a) and (b) of the 5 taxable years following the excess credit

6 year, provided that no credit may be carried forward to any

7 year ending on or after December 31, 2003. This credit shall be

8 applied first to the earliest year for which there is a

9 liability. If there is a credit under this subsection from more

10 than one tax year that is available to offset a liability the

11 earliest credit arising under this subsection shall be applied

12 first.

13 If, during any taxable year ending on or after December 31,

14 1986, the tax imposed by subsections (c) and (d) of this

15 Section for which a taxpayer has claimed a credit under this

16 subsection (i) is reduced, the amount of credit for such tax

17 shall also be reduced. Such reduction shall be determined by

18 recomputing the credit to take into account the reduced tax

19 imposed by subsections (c) and (d). If any portion of the

20 reduced amount of credit has been carried to a different

21 taxable year, an amended return shall be filed for such taxable

22 year to reduce the amount of credit claimed.

23 (j) Training expense credit. Beginning with tax years

24 ending on or after December 31, 1986 and prior to December 31,

25 2003, a taxpayer shall be allowed a credit against the tax

26 imposed by subsections (a) and (b) under this Section for all

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1 amounts paid or accrued, on behalf of all persons employed by

2 the taxpayer in Illinois or Illinois residents employed outside

3 of Illinois by a taxpayer, for educational or vocational

4 training in semi-technical or technical fields or semi-skilled

5 or skilled fields, which were deducted from gross income in the

6 computation of taxable income. The credit against the tax

7 imposed by subsections (a) and (b) shall be 1.6% of such

8 training expenses. For partners, shareholders of subchapter S

9 corporations, and owners of limited liability companies, if the

10 liability company is treated as a partnership for purposes of

11 federal and State income taxation, there shall be allowed a

12 credit under this subsection (j) to be determined in accordance

13 with the determination of income and distributive share of

14 income under Sections 702 and 704 and subchapter S of the

15 Internal Revenue Code.

16 Any credit allowed under this subsection which is unused in

17 the year the credit is earned may be carried forward to each of

18 the 5 taxable years following the year for which the credit is

19 first computed until it is used. This credit shall be applied

20 first to the earliest year for which there is a liability. If

21 there is a credit under this subsection from more than one tax

22 year that is available to offset a liability the earliest

23 credit arising under this subsection shall be applied first. No

24 carryforward credit may be claimed in any tax year ending on or

25 after December 31, 2003.

26 (k) Research and development credit. For tax years ending

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1 after July 1, 1990 and prior to December 31, 2003, and

2 beginning again for tax years ending on or after December 31,

3 2004, and ending prior to January 1, 2022, a taxpayer shall be

4 allowed a credit against the tax imposed by subsections (a) and

5 (b) of this Section for increasing research activities in this

6 State. The credit allowed against the tax imposed by

7 subsections (a) and (b) shall be equal to 6 1/2% of the

8 qualifying expenditures for increasing research activities in

9 this State. For partners, shareholders of subchapter S

10 corporations, and owners of limited liability companies, if the

11 liability company is treated as a partnership for purposes of

12 federal and State income taxation, there shall be allowed a

13 credit under this subsection to be determined in accordance

14 with the determination of income and distributive share of

15 income under Sections 702 and 704 and subchapter S of the

16 Internal Revenue Code.

17 For purposes of this subsection, "qualifying expenditures"

18 means the qualifying expenditures as defined for the federal

19 credit for increasing research activities which would be

20 allowable under Section 41 of the Internal Revenue Code and

21 which are conducted in this State, "qualifying expenditures for

22 increasing research activities in this State" means the excess

23 of qualifying expenditures for the taxable year in which

24 incurred over qualifying expenditures for the base period,

25 "qualifying expenditures for the base period" means the average

26 of the qualifying expenditures for each year in the base

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1 period, and "base period" means the 3 taxable years immediately

2 preceding the taxable year for which the determination is being

3 made.

4 Any credit in excess of the tax liability for the taxable

5 year may be carried forward. A taxpayer may elect to have the

6 unused credit shown on its final completed return carried over

7 as a credit against the tax liability for the following 5

8 taxable years or until it has been fully used, whichever occurs

9 first; provided that no credit earned in a tax year ending

10 prior to December 31, 2003 may be carried forward to any year

11 ending on or after December 31, 2003.

12 If an unused credit is carried forward to a given year from

13 2 or more earlier years, that credit arising in the earliest

14 year will be applied first against the tax liability for the

15 given year. If a tax liability for the given year still

16 remains, the credit from the next earliest year will then be

17 applied, and so on, until all credits have been used or no tax

18 liability for the given year remains. Any remaining unused

19 credit or credits then will be carried forward to the next

20 following year in which a tax liability is incurred, except

21 that no credit can be carried forward to a year which is more

22 than 5 years after the year in which the expense for which the

23 credit is given was incurred.

24 No inference shall be drawn from this amendatory Act of the

25 91st General Assembly in construing this Section for taxable

26 years beginning before January 1, 1999.

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1 It is the intent of the General Assembly that the research

2 and development credit under this subsection (k) shall apply

3 continuously for all tax years ending on or after December 31,

4 2004 and ending prior to January 1, 2022, including, but not

5 limited to, the period beginning on January 1, 2016 and ending

6 on the effective date of this amendatory Act of the 100th

7 General Assembly. All actions taken in reliance on the

8 continuation of the credit under this subsection (k) by any

9 taxpayer are hereby validated.

10 (l) Environmental Remediation Tax Credit.

11 (i) For tax years ending after December 31, 1997 and on

12 or before December 31, 2001, a taxpayer shall be allowed a

13 credit against the tax imposed by subsections (a) and (b)

14 of this Section for certain amounts paid for unreimbursed

15 eligible remediation costs, as specified in this

16 subsection. For purposes of this Section, "unreimbursed

17 eligible remediation costs" means costs approved by the

18 Illinois Environmental Protection Agency ("Agency") under

19 Section 58.14 of the Environmental Protection Act that were

20 paid in performing environmental remediation at a site for

21 which a No Further Remediation Letter was issued by the

22 Agency and recorded under Section 58.10 of the

23 Environmental Protection Act. The credit must be claimed

24 for the taxable year in which Agency approval of the

25 eligible remediation costs is granted. The credit is not

26 available to any taxpayer if the taxpayer or any related

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1 party caused or contributed to, in any material respect, a

2 release of regulated substances on, in, or under the site

3 that was identified and addressed by the remedial action

4 pursuant to the Site Remediation Program of the

5 Environmental Protection Act. After the Pollution Control

6 Board rules are adopted pursuant to the Illinois

7 Administrative Procedure Act for the administration and

8 enforcement of Section 58.9 of the Environmental

9 Protection Act, determinations as to credit availability

10 for purposes of this Section shall be made consistent with

11 those rules. For purposes of this Section, "taxpayer"

12 includes a person whose tax attributes the taxpayer has

13 succeeded to under Section 381 of the Internal Revenue Code

14 and "related party" includes the persons disallowed a

15 deduction for losses by paragraphs (b), (c), and (f)(1) of

16 Section 267 of the Internal Revenue Code by virtue of being

17 a related taxpayer, as well as any of its partners. The

18 credit allowed against the tax imposed by subsections (a)

19 and (b) shall be equal to 25% of the unreimbursed eligible

20 remediation costs in excess of $100,000 per site, except

21 that the $100,000 threshold shall not apply to any site

22 contained in an enterprise zone as determined by the

23 Department of Commerce and Community Affairs (now

24 Department of Commerce and Economic Opportunity). The

25 total credit allowed shall not exceed $40,000 per year with

26 a maximum total of $150,000 per site. For partners and

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1 shareholders of subchapter S corporations, there shall be

2 allowed a credit under this subsection to be determined in

3 accordance with the determination of income and

4 distributive share of income under Sections 702 and 704 and

5 subchapter S of the Internal Revenue Code.

6 (ii) A credit allowed under this subsection that is

7 unused in the year the credit is earned may be carried

8 forward to each of the 5 taxable years following the year

9 for which the credit is first earned until it is used. The

10 term "unused credit" does not include any amounts of

11 unreimbursed eligible remediation costs in excess of the

12 maximum credit per site authorized under paragraph (i).

13 This credit shall be applied first to the earliest year for

14 which there is a liability. If there is a credit under this

15 subsection from more than one tax year that is available to

16 offset a liability, the earliest credit arising under this

17 subsection shall be applied first. A credit allowed under

18 this subsection may be sold to a buyer as part of a sale of

19 all or part of the remediation site for which the credit

20 was granted. The purchaser of a remediation site and the

21 tax credit shall succeed to the unused credit and remaining

22 carry-forward period of the seller. To perfect the

23 transfer, the assignor shall record the transfer in the

24 chain of title for the site and provide written notice to

25 the Director of the Illinois Department of Revenue of the

26 assignor's intent to sell the remediation site and the

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1 amount of the tax credit to be transferred as a portion of

2 the sale. In no event may a credit be transferred to any

3 taxpayer if the taxpayer or a related party would not be

4 eligible under the provisions of subsection (i).

5 (iii) For purposes of this Section, the term "site"

6 shall have the same meaning as under Section 58.2 of the

7 Environmental Protection Act.

8 (m) Education expense credit. Beginning with tax years

9 ending after December 31, 1999, a taxpayer who is the custodian

10 of one or more qualifying pupils shall be allowed a credit

11 against the tax imposed by subsections (a) and (b) of this

12 Section for qualified education expenses incurred on behalf of

13 the qualifying pupils. The credit shall be equal to 25% of

14 qualified education expenses, but in no event may the total

15 credit under this subsection claimed by a family that is the

16 custodian of qualifying pupils exceed (i) $500 for tax years

17 ending prior to December 31, 2017, and (ii) $750 for tax years

18 ending on or after December 31, 2017. In no event shall a

19 credit under this subsection reduce the taxpayer's liability

20 under this Act to less than zero. Notwithstanding any other

21 provision of law, for taxable years beginning on or after

22 January 1, 2017, no taxpayer may claim a credit under this

23 subsection (m) if the taxpayer's adjusted gross income for the

24 taxable year exceeds (i) $500,000, in the case of spouses

25 filing a joint federal tax return or (ii) $250,000, in the case

26 of all other taxpayers. This subsection is exempt from the

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1 provisions of Section 250 of this Act.

2 For purposes of this subsection:

3 "Qualifying pupils" means individuals who (i) are

4 residents of the State of Illinois, (ii) are under the age of

5 21 at the close of the school year for which a credit is

6 sought, and (iii) during the school year for which a credit is

7 sought were full-time pupils enrolled in a kindergarten through

8 twelfth grade education program at any school, as defined in

9 this subsection.

10 "Qualified education expense" means the amount incurred on

11 behalf of a qualifying pupil in excess of $250 for tuition,

12 book fees, and lab fees at the school in which the pupil is

13 enrolled during the regular school year.

14 "School" means any public or nonpublic elementary or

15 secondary school in Illinois that is in compliance with Title

16 VI of the Civil Rights Act of 1964 and attendance at which

17 satisfies the requirements of Section 26-1 of the School Code,

18 except that nothing shall be construed to require a child to

19 attend any particular public or nonpublic school to qualify for

20 the credit under this Section.

21 "Custodian" means, with respect to qualifying pupils, an

22 Illinois resident who is a parent, the parents, a legal

23 guardian, or the legal guardians of the qualifying pupils.

24 (n) River Edge Redevelopment Zone site remediation tax

25 credit.

26 (i) For tax years ending on or after December 31, 2006,

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1 a taxpayer shall be allowed a credit against the tax

2 imposed by subsections (a) and (b) of this Section for

3 certain amounts paid for unreimbursed eligible remediation

4 costs, as specified in this subsection. For purposes of

5 this Section, "unreimbursed eligible remediation costs"

6 means costs approved by the Illinois Environmental

7 Protection Agency ("Agency") under Section 58.14a of the

8 Environmental Protection Act that were paid in performing

9 environmental remediation at a site within a River Edge

10 Redevelopment Zone for which a No Further Remediation

11 Letter was issued by the Agency and recorded under Section

12 58.10 of the Environmental Protection Act. The credit must

13 be claimed for the taxable year in which Agency approval of

14 the eligible remediation costs is granted. The credit is

15 not available to any taxpayer if the taxpayer or any

16 related party caused or contributed to, in any material

17 respect, a release of regulated substances on, in, or under

18 the site that was identified and addressed by the remedial

19 action pursuant to the Site Remediation Program of the

20 Environmental Protection Act. Determinations as to credit

21 availability for purposes of this Section shall be made

22 consistent with rules adopted by the Pollution Control

23 Board pursuant to the Illinois Administrative Procedure

24 Act for the administration and enforcement of Section 58.9

25 of the Environmental Protection Act. For purposes of this

26 Section, "taxpayer" includes a person whose tax attributes

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1 the taxpayer has succeeded to under Section 381 of the

2 Internal Revenue Code and "related party" includes the

3 persons disallowed a deduction for losses by paragraphs

4 (b), (c), and (f)(1) of Section 267 of the Internal Revenue

5 Code by virtue of being a related taxpayer, as well as any

6 of its partners. The credit allowed against the tax imposed

7 by subsections (a) and (b) shall be equal to 25% of the

8 unreimbursed eligible remediation costs in excess of

9 $100,000 per site.

10 (ii) A credit allowed under this subsection that is

11 unused in the year the credit is earned may be carried

12 forward to each of the 5 taxable years following the year

13 for which the credit is first earned until it is used. This

14 credit shall be applied first to the earliest year for

15 which there is a liability. If there is a credit under this

16 subsection from more than one tax year that is available to

17 offset a liability, the earliest credit arising under this

18 subsection shall be applied first. A credit allowed under

19 this subsection may be sold to a buyer as part of a sale of

20 all or part of the remediation site for which the credit

21 was granted. The purchaser of a remediation site and the

22 tax credit shall succeed to the unused credit and remaining

23 carry-forward period of the seller. To perfect the

24 transfer, the assignor shall record the transfer in the

25 chain of title for the site and provide written notice to

26 the Director of the Illinois Department of Revenue of the

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1 assignor's intent to sell the remediation site and the

2 amount of the tax credit to be transferred as a portion of

3 the sale. In no event may a credit be transferred to any

4 taxpayer if the taxpayer or a related party would not be

5 eligible under the provisions of subsection (i).

6 (iii) For purposes of this Section, the term "site"

7 shall have the same meaning as under Section 58.2 of the

8 Environmental Protection Act.

9 (o) For each of taxable years during the Compassionate Use

10 of Medical Cannabis Pilot Program, a surcharge is imposed on

11 all taxpayers on income arising from the sale or exchange of

12 capital assets, depreciable business property, real property

13 used in the trade or business, and Section 197 intangibles of

14 an organization registrant under the Compassionate Use of

15 Medical Cannabis Pilot Program Act. The amount of the surcharge

16 is equal to the amount of federal income tax liability for the

17 taxable year attributable to those sales and exchanges. The

18 surcharge imposed does not apply if:

19 (1) the medical cannabis cultivation center

20 registration, medical cannabis dispensary registration, or

21 the property of a registration is transferred as a result

22 of any of the following:

23 (A) bankruptcy, a receivership, or a debt

24 adjustment initiated by or against the initial

25 registration or the substantial owners of the initial

26 registration;

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1 (B) cancellation, revocation, or termination of

2 any registration by the Illinois Department of Public

3 Health;

4 (C) a determination by the Illinois Department of

5 Public Health that transfer of the registration is in

6 the best interests of Illinois qualifying patients as

7 defined by the Compassionate Use of Medical Cannabis

8 Pilot Program Act;

9 (D) the death of an owner of the equity interest in

10 a registrant;

11 (E) the acquisition of a controlling interest in

12 the stock or substantially all of the assets of a

13 publicly traded company;

14 (F) a transfer by a parent company to a wholly

15 owned subsidiary; or

16 (G) the transfer or sale to or by one person to

17 another person where both persons were initial owners

18 of the registration when the registration was issued;

19 or

20 (2) the cannabis cultivation center registration,

21 medical cannabis dispensary registration, or the

22 controlling interest in a registrant's property is

23 transferred in a transaction to lineal descendants in which

24 no gain or loss is recognized or as a result of a

25 transaction in accordance with Section 351 of the Internal

26 Revenue Code in which no gain or loss is recognized.

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1 (Source: P.A. 100-22, eff. 7-6-17.)

2 (35 ILCS 5/211)

3 Sec. 211. Economic Development for a Growing Economy Tax

4 Credit. For tax years beginning on or after January 1, 1999, a

5 Taxpayer who has entered into an Agreement(including a New

6 Construction EDGE Agreement) under the Economic Development

7 for a Growing Economy Tax Credit Act is entitled to a credit

8 against the taxes imposed under subsections (a) and (b) of

9 Section 201 of this Act in an amount to be determined in the

10 Agreement. If the Taxpayer is a partnership or Subchapter S

11 corporation, the credit shall be allowed to the partners or

12 shareholders in accordance with the determination of income and

13 distributive share of income under Sections 702 and 704 and

14 subchapter S of the Internal Revenue Code. The Department, in

15 cooperation with the Department of Commerce and Economic

16 Opportunity, shall prescribe rules to enforce and administer

17 the provisions of this Section. This Section is exempt from the

18 provisions of Section 250 of this Act.

19 The credit shall be subject to the conditions set forth in

20 the Agreement and the following limitations:

21 (1) The tax credit shall not exceed the Incremental

22 Income Tax (as defined in Section 5-5 of the Economic

23 Development for a Growing Economy Tax Credit Act) with

24 respect to the project; additionally, the New Construction

25 EDGE Credit shall not exceed the New Construction EDGE

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1 Incremental Income Tax (as defined in Section 5-5 of the

2 Economic Development for a Growing Economy Tax Credit Act).

3 (2) The amount of the credit allowed during the tax

4 year plus the sum of all amounts allowed in prior years

5 shall not exceed 100% of the aggregate amount expended by

6 the Taxpayer during all prior tax years on approved costs

7 defined by Agreement.

8 (3) The amount of the credit shall be determined on an

9 annual basis. Except as applied in a carryover year

10 pursuant to Section 211(4) of this Act, the credit may not

11 be applied against any State income tax liability in more

12 than 10 taxable years; provided, however, that (i) an

13 eligible business certified by the Department of Commerce

14 and Economic Opportunity under the Corporate Headquarters

15 Relocation Act may not apply the credit against any of its

16 State income tax liability in more than 15 taxable years

17 and (ii) credits allowed to that eligible business are

18 subject to the conditions and requirements set forth in

19 Sections 5-35 and 5-45 of the Economic Development for a

20 Growing Economy Tax Credit Act and Section 5-51 as

21 applicable to New Construction EDGE Credits.

22 (4) The credit may not exceed the amount of taxes

23 imposed pursuant to subsections (a) and (b) of Section 201

24 of this Act. Any credit that is unused in the year the

25 credit is computed may be carried forward and applied to

26 the tax liability of the 5 taxable years following the

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1 excess credit year. The credit shall be applied to the

2 earliest year for which there is a tax liability. If there

3 are credits from more than one tax year that are available

4 to offset a liability, the earlier credit shall be applied

5 first.

6 (5) No credit shall be allowed with respect to any

7 Agreement for any taxable year ending after the

8 Noncompliance Date. Upon receiving notification by the

9 Department of Commerce and Economic Opportunity of the

10 noncompliance of a Taxpayer with an Agreement, the

11 Department shall notify the Taxpayer that no credit is

12 allowed with respect to that Agreement for any taxable year

13 ending after the Noncompliance Date, as stated in such

14 notification. If any credit has been allowed with respect

15 to an Agreement for a taxable year ending after the

16 Noncompliance Date for that Agreement, any refund paid to

17 the Taxpayer for that taxable year shall, to the extent of

18 that credit allowed, be an erroneous refund within the

19 meaning of Section 912 of this Act.

20 (6) For purposes of this Section, the terms

21 "Agreement", "Incremental Income Tax","New Construction

22 EDGE Agreement", "New Construction EDGE Credit", "New

23 Construction EDGE Incremental Income Tax", and

24 "Noncompliance Date" have the same meaning as when used in

25 the Economic Development for a Growing Economy Tax Credit

26 Act.

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1 (Source: P.A. 94-793, eff. 5-19-06.)

2 (35 ILCS 5/221)

3 Sec. 221. Rehabilitation costs; qualified historic

4 properties; River Edge Redevelopment Zone.

5 (a) For taxable years that begin on or after January 1,

6 2012 and begin prior to January 1, 2018, there shall be allowed

7 a tax credit against the tax imposed by subsections (a) and (b)

8 of Section 201 of this Act in an amount equal to 25% of

9 qualified expenditures incurred by a qualified taxpayer during

10 the taxable year in the restoration and preservation of a

11 qualified historic structure located in a River Edge

12 Redevelopment Zone pursuant to a qualified rehabilitation

13 plan, provided that the total amount of such expenditures (i)

14 must equal $5,000 or more and (ii) must exceed 50% of the

15 purchase price of the property.

16 (a-1) For taxable years that begin on or after January 1,

17 2018 and end prior to January 1, 2022, there shall be allowed a

18 tax credit against the tax imposed by subsections (a) and (b)

19 of Section 201 of this Act in an aggregate amount equal to 25%

20 of qualified expenditures incurred by a qualified taxpayer in

21 the restoration and preservation of a qualified historic

22 structure located in a River Edge Redevelopment Zone pursuant

23 to a qualified rehabilitation plan, provided that the total

24 amount of such expenditures must (i) equal $5,000 or more and

25 (ii) exceed the adjusted basis of the qualified historic

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1 structure on the first day the qualified rehabilitation plan

2 begins. For any rehabilitation project, regardless of duration

3 or number of phases, the project's compliance with the

4 foregoing provisions (i) and (ii) shall be determined based on

5 the aggregate amount of qualified expenditures for the entire

6 project and may include expenditures incurred under subsection

7 (a), this subsection, or both subsection (a) and this

8 subsection. If the qualified rehabilitation plan spans

9 multiple years, the aggregate credit for the entire project

10 shall be allowed in the last taxable year, except for phased

11 rehabilitation projects, which may receive credits upon

12 completion of each phase. Before obtaining the first phased

13 credit: (A) the total amount of such expenditures must meet the

14 requirements of provisions (i) and (ii) of this subsection; (B)

15 the rehabilitated portion of the qualified historic structure

16 must be placed in service; and (C) the requirements of

17 subsection (b) must be met.

18 (a-2) For taxable years beginning on or after the effective

19 date of this amendatory Act of the 101st General Assembly and

20 ending prior to January 1, 2022, there shall be allowed a tax

21 credit against the tax imposed by subsections (a) and (b) of

22 Section 201 as provided in Section 10-10.3 of the River Edge

23 Redevelopment Zone Act. The credit allowed under this

24 subsection (a-2) shall apply only to taxpayers that make a

25 capital investment of at least $1,000,000 in a qualified

26 rehabilitation plan.

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1 The credit or credits may not reduce the taxpayer's

2 liability to less than zero. If the amount of the credit or

3 credits exceeds the taxpayer's liability, the excess may be

4 carried forward and applied against the taxpayer's liability in

5 succeeding calendar years in the manner provided under

6 paragraph (4) of Section 211 of this Act. The credit or credits

7 shall be applied to the earliest year for which there is a tax

8 liability. If there are credits from more than one taxable year

9 that are available to offset a liability, the earlier credit

10 shall be applied first.

11 For partners, shareholders of Subchapter S corporations,

12 and owners of limited liability companies, if the liability

13 company is treated as a partnership for the purposes of federal

14 and State income taxation, there shall be allowed a credit

15 under this Section to be determined in accordance with the

16 determination of income and distributive share of income under

17 Sections 702 and 704 and Subchapter S of the Internal Revenue

18 Code.

19 (b) To obtain a tax credit pursuant to this Section, the

20 taxpayer must apply with the Department of Natural Resources.

21 The Department of Natural Resources shall determine the amount

22 of eligible rehabilitation costs and expenses in addition to

23 the amount of the River Edge construction jobs credit within 45

24 days of receipt of a complete application. The taxpayer must

25 submit a certification of costs prepared by an independent

26 certified public accountant that certifies (i) the project

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1 expenses, (ii) whether those expenses are qualified

2 expenditures, and (iii) that the qualified expenditures exceed

3 the adjusted basis of the qualified historic structure on the

4 first day the qualified rehabilitation plan commenced. The

5 Department of Natural Resources is authorized, but not

6 required, to accept this certification of costs to determine

7 the amount of qualified expenditures and the amount of the

8 credit. The Department of Natural Resources shall provide

9 guidance as to the minimum standards to be followed in the

10 preparation of such certification. The Department of Natural

11 Resources and the National Park Service shall determine whether

12 the rehabilitation is consistent with the United States

13 Secretary of the Interior's Standards for Rehabilitation.

14 (b-1) Upon completion of the project and approval of the

15 complete application, the Department of Natural Resources

16 shall issue a single certificate in the amount of the eligible

17 credits equal to 25% of qualified expenditures incurred during

18 the eligible taxable years, as defined in subsections (a) and

19 (a-1), excepting any credits awarded under subsection (a) prior

20 to January 1, 2019 (the effective date of Public Act 100-629)

21 ~~this amendatory Act of the 100th General Assembly~~ and any

22 phased credits issued prior to the eligible taxable year under

23 subsection (a-1). At the time the certificate is issued, an

24 issuance fee up to the maximum amount of 2% of the amount of

25 the credits issued by the certificate may be collected from the

26 applicant to administer the provisions of this Section. If

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1 collected, this issuance fee shall be deposited into the

2 Historic Property Administrative Fund, a special fund created

3 in the State treasury. Subject to appropriation, moneys in the

4 Historic Property Administrative Fund shall be provided to the

5 Department of Natural Resources as reimbursement ~~Department of~~

6 ~~Natural Resources~~ for the costs associated with administering

7 this Section.

8 (c) The taxpayer must attach the certificate to the tax

9 return on which the credits are to be claimed. The tax credit

10 under this Section may not reduce the taxpayer's liability to

11 less than zero. If the amount of the credit exceeds the tax

12 liability for the year, the excess credit may be carried

13 forward and applied to the tax liability of the 5 taxable years

14 following the excess credit year.

15 (c-1) Subject to appropriation, moneys in the Historic

16 Property Administrative Fund shall be used, on a biennial basis

17 beginning at the end of the second fiscal year after January 1,

18 2019 (the effective date of Public Act 100-629) ~~this amendatory~~

19 ~~Act of the 100th General Assembly~~, to hire a qualified third

20 party to prepare a biennial report to assess the overall

21 economic impact to the State from the qualified rehabilitation

22 projects under this Section completed in that year and in

23 previous years. The overall economic impact shall include at

24 least: (1) the direct and indirect or induced economic impacts

25 of completed projects; (2) temporary, permanent, and

26 construction jobs created; (3) sales, income, and property tax

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1 generation before, during construction, and after completion;

2 and (4) indirect neighborhood impact after completion. The

3 report shall be submitted to the Governor and the General

4 Assembly. The report to the General Assembly shall be filed

5 with the Clerk of the House of Representatives and the

6 Secretary of the Senate in electronic form only, in the manner

7 that the Clerk and the Secretary shall direct.

8 (c-2) The Department of Natural Resources may adopt rules

9 to implement this Section in addition to the rules expressly

10 authorized in this Section.

11 (d) As used in this Section, the following terms have the

12 following meanings.

13 "Phased rehabilitation" means a project that is completed

14 in phases, as defined under Section 47 of the federal Internal

15 Revenue Code and pursuant to National Park Service regulations

16 at 36 C.F.R. 67.

17 "Placed in service" means the date when the property is

18 placed in a condition or state of readiness and availability

19 for a specifically assigned function as defined under Section

20 47 of the federal Internal Revenue Code and federal Treasury

21 Regulation Sections 1.46 and 1.48.

22 "Qualified expenditure" means all the costs and expenses

23 defined as qualified rehabilitation expenditures under Section

24 47 of the federal Internal Revenue Code that were incurred in

25 connection with a qualified historic structure.

26 "Qualified historic structure" means a certified historic

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1 structure as defined under Section 47(c)(3) of the federal

2 Internal Revenue Code.

3 "Qualified rehabilitation plan" means a project that is

4 approved by the Department of Natural Resources and the

5 National Park Service as being consistent with the United

6 States Secretary of the Interior's Standards for

7 Rehabilitation.

8 "Qualified taxpayer" means the owner of the qualified

9 historic structure or any other person who qualifies for the

10 federal rehabilitation credit allowed by Section 47 of the

11 federal Internal Revenue Code with respect to that qualified

12 historic structure. Partners, shareholders of subchapter S

13 corporations, and owners of limited liability companies (if the

14 limited liability company is treated as a partnership for

15 purposes of federal and State income taxation) are entitled to

16 a credit under this Section to be determined in accordance with

17 the determination of income and distributive share of income

18 under Sections 702 and 703 and subchapter S of the Internal

19 Revenue Code, provided that credits granted to a partnership, a

20 limited liability company taxed as a partnership, or other

21 multiple owners of property shall be passed through to the

22 partners, members, or owners respectively on a pro rata basis

23 or pursuant to an executed agreement among the partners,

24 members, or owners documenting any alternate distribution

25 method.

26 (Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17;

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1 100-629, eff. 1-1-19; 100-695, eff. 8-3-18; revised 10-18-18.)

2 Section 15. The Economic Development for a Growing Economy

3 Tax Credit Act is amended by changing Section 5-5 and by adding

4 Sections 5-51 and 5-56 as follows:

5 (35 ILCS 10/5-5)

6 Sec. 5-5. Definitions. As used in this Act:

7 "Agreement" means the Agreement between a Taxpayer and the

8 Department under the provisions of Section 5-50 of this Act.

9 "Applicant" means a Taxpayer that is operating a business

10 located or that the Taxpayer plans to locate within the State

11 of Illinois and that is engaged in interstate or intrastate

12 commerce for the purpose of manufacturing, processing,

13 assembling, warehousing, or distributing products, conducting

14 research and development, providing tourism services, or

15 providing services in interstate commerce, office industries,

16 or agricultural processing, but excluding retail, retail food,

17 health, or professional services. "Applicant" does not include

18 a Taxpayer who closes or substantially reduces an operation at

19 one location in the State and relocates substantially the same

20 operation to another location in the State. This does not

21 prohibit a Taxpayer from expanding its operations at another

22 location in the State, provided that existing operations of a

23 similar nature located within the State are not closed or

24 substantially reduced. This also does not prohibit a Taxpayer

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1 from moving its operations from one location in the State to

2 another location in the State for the purpose of expanding the

3 operation provided that the Department determines that

4 expansion cannot reasonably be accommodated within the

5 municipality in which the business is located, or in the case

6 of a business located in an incorporated area of the county,

7 within the county in which the business is located, after

8 conferring with the chief elected official of the municipality

9 or county and taking into consideration any evidence offered by

10 the municipality or county regarding the ability to accommodate

11 expansion within the municipality or county.

12 "Committee" means the Illinois Business Investment

13 Committee created under Section 5-25 of this Act within the

14 Illinois Economic Development Board.

15 "Credit" means the amount agreed to between the Department

16 and Applicant under this Act, but not to exceed the lesser of:

17 (1) the sum of (i) 50% of the Incremental Income Tax

18 attributable to New Employees at the Applicant's project and

19 (ii) 10% of the training costs of New Employees; or (2) 100% of

20 the Incremental Income Tax attributable to New Employees at the

21 Applicant's project. However, if the project is located in an

22 underserved area, then the amount of the Credit may not exceed

23 the lesser of: (1) the sum of (i) 75% of the Incremental Income

24 Tax attributable to New Employees at the Applicant's project

25 and (ii) 10% of the training costs of New Employees; or (2)

26 100% of the Incremental Income Tax attributable to New

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1 Employees at the Applicant's project. If an Applicant agrees to

2 hire the required number of New Employees, then the maximum

3 amount of the Credit for that Applicant may be increased by an

4 amount not to exceed 25% of the Incremental Income Tax

5 attributable to retained employees at the Applicant's project;

6 provided that, in order to receive the increase for retained

7 employees, the Applicant must provide the additional evidence

8 required under paragraph (3) of subsection (b) of Section 5-25.

9 "Department" means the Department of Commerce and Economic

10 Opportunity.

11 "Director" means the Director of Commerce and Economic

12 Opportunity.

13 "Full-time Employee" means an individual who is employed

14 for consideration for at least 35 hours each week or who

15 renders any other standard of service generally accepted by

16 industry custom or practice as full-time employment. An

17 individual for whom a W-2 is issued by a Professional Employer

18 Organization (PEO) is a full-time employee if employed in the

19 service of the Applicant for consideration for at least 35

20 hours each week or who renders any other standard of service

21 generally accepted by industry custom or practice as full-time

22 employment to Applicant.

23 "Incremental Income Tax" means the total amount withheld

24 during the taxable year from the compensation of New Employees

25 and, if applicable, retained employees under Article 7 of the

26 Illinois Income Tax Act arising from employment at a project

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1 that is the subject of an Agreement.

2 "New Construction EDGE Agreement" means the Agreement

3 between a Taxpayer and the Department under the provisions of

4 Section 5-51 of this Act.

5 "New Construction EDGE Credit" means an amount agreed to

6 between the Department and the Applicant under this Act as part

7 of a New Construction EDGE Agreement that does not exceed 50%

8 of the Incremental Income Tax attributable to New Construction

9 EDGE Employees at the Applicant's project; however, if the New

10 Construction EDGE Project is located in an underserved area,

11 then the amount of the New Construction EDGE Credit may not

12 exceed 75% of the Incremental Income Tax attributable to New

13 Construction EDGE Employees at the Applicant's New

14 Construction EDGE Project.

15 "New Construction EDGE Employee" means a laborer or worker

16 who is employed by an Illinois contractor or subcontractor in

17 the actual construction work on the site of a New Construction

18 EDGE Project, pursuant to a New Construction EDGE Agreement.

19 "New Construction EDGE Incremental Income Tax" means the

20 total amount withheld during the taxable year from the

21 compensation of New Construction EDGE Employees.

22 "New Construction EDGE Project" means the building of a

23 Taxpayer's structure or building, or making improvements of any

24 kind to real property. "New Construction EDGE Project" does not

25 include the routine operation, routine repair, or routine

26 maintenance of existing structures, buildings, or real

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1 property.

2 "New Employee" means:

3 (a) A Full-time Employee first employed by a Taxpayer

4 in the project that is the subject of an Agreement and who

5 is hired after the Taxpayer enters into the tax credit

6 Agreement.

7 (b) The term "New Employee" does not include:

8 (1) an employee of the Taxpayer who performs a job

9 that was previously performed by another employee, if

10 that job existed for at least 6 months before hiring

11 the employee;

12 (2) an employee of the Taxpayer who was previously

13 employed in Illinois by a Related Member of the

14 Taxpayer and whose employment was shifted to the

15 Taxpayer after the Taxpayer entered into the tax credit

16 Agreement; or

17 (3) a child, grandchild, parent, or spouse, other

18 than a spouse who is legally separated from the

19 individual, of any individual who has a direct or an

20 indirect ownership interest of at least 5% in the

21 profits, capital, or value of the Taxpayer.

22 (c) Notwithstanding paragraph (1) of subsection (b),

23 an employee may be considered a New Employee under the

24 Agreement if the employee performs a job that was

25 previously performed by an employee who was:

26 (1) treated under the Agreement as a New Employee;

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1 and

2 (2) promoted by the Taxpayer to another job.

3 (d) Notwithstanding subsection (a), the Department may

4 award Credit to an Applicant with respect to an employee

5 hired prior to the date of the Agreement if:

6 (1) the Applicant is in receipt of a letter from

7 the Department stating an intent to enter into a credit

8 Agreement;

9 (2) the letter described in paragraph (1) is issued

10 by the Department not later than 15 days after the

11 effective date of this Act; and

12 (3) the employee was hired after the date the

13 letter described in paragraph (1) was issued.

14 "Noncompliance Date" means, in the case of a Taxpayer that

15 is not complying with the requirements of the Agreement or the

16 provisions of this Act, the day following the last date upon

17 which the Taxpayer was in compliance with the requirements of

18 the Agreement and the provisions of this Act, as determined by

19 the Director, pursuant to Section 5-65.

20 "Pass Through Entity" means an entity that is exempt from

21 the tax under subsection (b) or (c) of Section 205 of the

22 Illinois Income Tax Act.

23 "Professional Employer Organization" (PEO) means an

24 employee leasing company, as defined in Section 206.1(A)(2) of

25 the Illinois Unemployment Insurance Act.

26 "Related Member" means a person that, with respect to the

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1 Taxpayer during any portion of the taxable year, is any one of

2 the following:

3 (1) An individual stockholder, if the stockholder and

4 the members of the stockholder's family (as defined in

5 Section 318 of the Internal Revenue Code) own directly,

6 indirectly, beneficially, or constructively, in the

7 aggregate, at least 50% of the value of the Taxpayer's

8 outstanding stock.

9 (2) A partnership, estate, or trust and any partner or

10 beneficiary, if the partnership, estate, or trust, and its

11 partners or beneficiaries own directly, indirectly,

12 beneficially, or constructively, in the aggregate, at

13 least 50% of the profits, capital, stock, or value of the

14 Taxpayer.

15 (3) A corporation, and any party related to the

16 corporation in a manner that would require an attribution

17 of stock from the corporation to the party or from the

18 party to the corporation under the attribution rules of

19 Section 318 of the Internal Revenue Code, if the Taxpayer

20 owns directly, indirectly, beneficially, or constructively

21 at least 50% of the value of the corporation's outstanding

22 stock.

23 (4) A corporation and any party related to that

24 corporation in a manner that would require an attribution

25 of stock from the corporation to the party or from the

26 party to the corporation under the attribution rules of

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1 Section 318 of the Internal Revenue Code, if the

2 corporation and all such related parties own in the

3 aggregate at least 50% of the profits, capital, stock, or

4 value of the Taxpayer.

5 (5) A person to or from whom there is attribution of

6 stock ownership in accordance with Section 1563(e) of the

7 Internal Revenue Code, except, for purposes of determining

8 whether a person is a Related Member under this paragraph,

9 20% shall be substituted for 5% wherever 5% appears in

10 Section 1563(e) of the Internal Revenue Code.

11 "Taxpayer" means an individual, corporation, partnership,

12 or other entity that has any Illinois Income Tax liability.

13 "Underserved area" means a geographic area that meets one

14 or more of the following conditions:

15 (1) the area has a poverty rate of at least 20%

16 according to the latest federal decennial census;

17 (2) 75% or more of the children in the area participate

18 in the federal free lunch program according to reported

19 statistics from the State Board of Education;

20 (3) at least 20% of the households in the area receive

21 assistance under the Supplemental Nutrition Assistance

22 Program (SNAP); or

23 (4) the area has an average unemployment rate, as

24 determined by the Illinois Department of Employment

25 Security, that is more than 120% of the national

26 unemployment average, as determined by the U.S. Department

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1 of Labor, for a period of at least 2 consecutive calendar

2 years preceding the date of the application.

3 (Source: P.A. 100-511, eff. 9-18-17.)

4 (35 ILCS 10/5-51 new)

5 Sec. 5-51. New Construction EDGE Agreement.

6 (a) Notwithstanding any other provisions of this Act, and

7 in addition to any Credit otherwise allowed under this Act,

8 there is allowed a New Construction EDGE Credit for eligible

9 Applicants that meet the following criteria:

10 (1) the Department has certified that the Applicant

11 meets all requirements of Sections 5-15, 5-20, and 5-25;

12 and

13 (2) the Department has certified that, pursuant to

14 Section 5-20, the Applicant's Agreement includes a capital

15 investment of at least $10,000,000 in a New Construction

16 EDGE Project to be placed in service within the State as a

17 direct result of an Agreement entered into pursuant to this

18 Section.

19 (b) The Department shall notify each Applicant during the

20 application process that their project is eligible for a New

21 Construction EDGE Credit. The Department shall create a

22 separate application to be filled out by the Applicant

23 regarding the New Construction EDGE credit. The Application

24 shall include the following:

25 (1) a detailed description of the New Construction EDGE

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1 Project that is subject to the New Construction EDGE

2 Agreement, including the location and amount of the

3 investment and jobs created or retained;

4 (2) the duration of the New Construction EDGE Credit

5 and the first taxable year for which the Credit may be

6 claimed;

7 (3) the New Construction EDGE Credit amount that will

8 be allowed for each taxable year;

9 (4) a requirement that the Director is authorized to

10 verify with the appropriate State agencies the amount of

11 the incremental income tax withheld by a Taxpayer, and

12 after doing so, shall issue a certificate to the Taxpayer

13 stating that the amounts have been verified;

14 (5) the amount of the capital investment, which may at

15 no point be less than $10,000,000, the time period of

16 placing the New Construction EDGE Project in service, and

17 the designated location in Illinois for the investment;

18 (6) a requirement that the Taxpayer shall provide

19 written notification to the Director not more than 30 days

20 after the Taxpayer determines that the capital investment

21 of at least $10,000,000 is not or will not be achieved or

22 maintained as set forth in the terms and conditions of the

23 Agreement;

24 (7) a detailed provision that the Taxpayer shall be

25 awarded a New Construction EDGE Credit upon the verified

26 completion and occupancy of a New Construction EDGE

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1 Project; and

2 (8) any other performance conditions, including the

3 ability to verify that a New Construction EDGE Project is

4 built and completed, or that contract provisions as the

5 Department determines are appropriate.

6 (c) The Department shall post on its website the terms of

7 each New Construction EDGE Agreement entered into under this

8 Act on or after the effective date of this amendatory Act of

9 the 101st General Assembly. Such information shall be posted

10 within 10 days after entering into the Agreement and must

11 include the following:

12 (1) the name of the recipient business;

13 (2) the location of the project;

14 (3) the estimated value of the credit; and

15 (4) whether or not the project is located in an

16 underserved area.

17 (d) The Department, in collaboration with the Department of

18 Labor, shall require that certified payroll reporting,

19 pursuant to Section 5-56 of this Act, be completed in order to

20 verify the wages and any other necessary information which the

21 Department may deem necessary to ascertain and certify the

22 total number of New Construction EDGE Employees subject to a

23 New Construction EDGE Agreement and amount of a New

24 Construction EDGE Credit.

25 (35 ILCS 10/5-56 new)

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1 Sec. 5-56. Certified payroll.

2 (a) Each contractor and subcontractor that is engaged in

3 and is executing a New Construction EDGE Project for a

4 Taxpayer, pursuant to a New Construction EDGE Agreement shall:

5 (1) make and keep, for a period of 5 years from the

6 date of the last payment made on or after the effective

7 date of this amendatory Act of the 101st General Assembly

8 on a contract or subcontract for a New Construction EDGE

9 Project pursuant to a New Construction EDGE Agreement,

10 records of all laborers and other workers employed by the

11 contractor or subcontractor on the project; the records

12 shall include:

13 (A) the worker's name;

14 (B) the worker's address;

15 (C) the worker's telephone number, if available;

16 (D) the worker's social security number;

17 (E) the worker's classification or

18 classifications;

19 (F) the worker's gross and net wages paid in each

20 pay period;

21 (G) the worker's number of hours worked each day;

22 (H) the worker's starting and ending times of work

23 each day;

24 (I) the worker's hourly wage rate; and

25 (J) the worker's hourly overtime wage rate; and

26 (2) no later than the 15th day of each calendar month,

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1 provide a certified payroll for the immediately preceding

2 month to the taxpayer in charge of the project; within 5

3 business days after receiving the certified payroll, the

4 taxpayer shall file the certified payroll with the

5 Department of Labor and the Department of Commerce and

6 Economic Opportunity; a certified payroll must be filed for

7 only those calendar months during which construction on a

8 New Construction EDGE Project has occurred; the certified

9 payroll shall consist of a complete copy of the records

10 identified in paragraph (1), but may exclude the starting

11 and ending times of work each day; the certified payroll

12 shall be accompanied by a statement signed by the

13 contractor or subcontractor or an officer, employee, or

14 agent of the contractor or subcontractor which avers that:

15 (A) he or she has examined the certified payroll

16 records required to be submitted by the Act and such

17 records are true and accurate; and

18 (B) the contractor or subcontractor is aware that

19 filing a certified payroll that he or she knows to be

20 false is a Class A misdemeanor.

21 A general contractor is not prohibited from relying on a

22 certified payroll of a lower-tier subcontractor, provided the

23 general contractor does not knowingly rely upon a

24 subcontractor's false certification.

25 Any contractor or subcontractor subject to this Section,

26 and any officer, employee, or agent of such contractor or

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1 subcontractor whose duty as an officer, employee, or agent it

2 is to file a certified payroll under this Section, who

3 willfully fails to file such a certified payroll on or before

4 the date such certified payroll is required to be filed and any

5 person who willfully files a false certified payroll that is

6 false as to any material fact is in violation of this Act and

7 guilty of a Class A misdemeanor.

8 The taxpayer in charge of the project shall keep the

9 records submitted in accordance with this subsection on or

10 after the effective date of this amendatory Act of the 101st

11 General Assembly for a period of 5 years from the date of the

12 last payment for work on a contract or subcontract for the

13 project.

14 The records submitted in accordance with this subsection

15 shall be considered public records, except an employee's

16 address, telephone number, and social security number, and made

17 available in accordance with the Freedom of Information Act.

18 The Department of Labor shall accept any reasonable submissions

19 by the contractor that meet the requirements of this subsection

20 and shall share the information with the Department in order to

21 comply with the awarding of New Construction EDGE Credits. A

22 contractor, subcontractor, or public body may retain records

23 required under this Section in paper or electronic format.

24 Upon 7 business days' notice, the contractor and each

25 subcontractor shall make available for inspection and copying

26 at a location within this State during reasonable hours, the

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1 records identified in paragraph (1) of this subsection to the

2 taxpayer in charge of the project, its officers and agents, the

3 Director of Labor and his deputies and agents, and to federal,

4 State, or local law enforcement agencies and prosecutors.

5 Section 20. The River Edge Redevelopment Zone Act is

6 amended by changing Section 10-3 and by adding Sections 10-10.3

7 and 10-10.4 as follows:

8 (65 ILCS 115/10-3)

9 Sec. 10-3. Definitions. As used in this Act:

10 "Department" means the Department of Commerce and Economic

11 Opportunity.

12 "River Edge Redevelopment Zone" means an area of the State

13 certified by the Department as a River Edge Redevelopment Zone

14 pursuant to this Act.

15 "Designated zone organization" means an association or

16 entity: (1) the members of which are substantially all

17 residents of the River Edge Redevelopment Zone or of the

18 municipality in which the River Edge Redevelopment Zone is

19 located; (2) the board of directors of which is elected by the

20 members of the organization; (3) that satisfies the criteria

21 set forth in Section 501(c) (3) or 501(c) (4) of the Internal

22 Revenue Code; and (4) that exists primarily for the purpose of

23 performing within the zone, for the benefit of the residents

24 and businesses thereof, any of the functions set forth in

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1 Section 8 of this Act.

2 "Incremental income tax" means the total amount withheld

3 during the taxable year from the compensation of River Edge

4 Construction Jobs Employees.

5 "Agency" means: each officer, board, commission, and

6 agency created by the Constitution, in the executive branch of

7 State government, other than the State Board of Elections; each

8 officer, department, board, commission, agency, institution,

9 authority, university, and body politic and corporate of the

10 State; each administrative unit or corporate outgrowth of the

11 State government that is created by or pursuant to statute,

12 other than units of local government and their officers, school

13 districts, and boards of election commissioners; and each

14 administrative unit or corporate outgrowth of the above and as

15 may be created by executive order of the Governor. No entity is

16 an "agency" for the purposes of this Act unless the entity is

17 authorized by law to make rules or regulations.

18 "River Edge construction jobs credit" means an amount equal

19 to 50% of the incremental income tax attributable to River Edge

20 construction employees employed on a River Edge construction

21 jobs project. However, the amount may equal 75% of the

22 incremental income tax attributable to River Edge construction

23 employees employed on a River Edge construction jobs project

24 located in an underserved area.

25 "River Edge construction jobs employee" means a laborer or

26 worker who is employed by an Illinois contractor or

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1 subcontractor in the actual construction work on the site of a

2 River Edge construction jobs project.

3 "River Edge construction jobs project" means building a

4 structure or building, or making improvements of any kind to

5 real property, in a River Edge Redevelopment Zone that is built

6 or improved in the course of completing a qualified

7 rehabilitation plan. "River Edge construction jobs project"

8 does not include the routine operation, routine repair, or

9 routine maintenance of existing structures, buildings, or real

10 property.

11 "Rule" means each agency statement of general

12 applicability that implements, applies, interprets, or

13 prescribes law or policy, but does not include (i) statements

14 concerning only the internal management of an agency and not

15 affecting private rights or procedures available to persons or

16 entities outside the agency, (ii) intra-agency memoranda, or

17 (iii) the prescription of standardized forms.

18 "Underserved area" means a geographic area that meets one

19 or more of the following conditions:

20 (1) the area has a poverty rate of at least 20%

21 according to the latest federal decennial census;

22 (2) 75% or more of the children in the area participate

23 in the federal free lunch program according to reported

24 statistics from the State Board of Education;

25 (3) at least 20% of the households in the area receive

26 assistance under the Supplemental Nutrition Assistance

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1 Program (SNAP); or

2 (4) the area has an average unemployment rate, as

3 determined by the Illinois Department of Employment

4 Security, that is more than 120% of the national

5 unemployment average, as determined by the U.S. Department

6 of Labor, for a period of at least 2 consecutive calendar

7 years preceding the date of the application.

8 (Source: P.A. 94-1021, eff. 7-12-06.)

9 (65 ILCS 115/10-10.3 new)

10 Sec. 10-10.3. River Edge Construction Jobs Credit.

11 (a) A business entity may receive a tax credit against the

12 tax imposed under subsections (a) and (b) of Section 201 in an

13 amount equal to 50% (or 75% if the project is located in an

14 underserved area) of the amount of the incremental income tax

15 attributable to River Edge construction jobs employees

16 employed in the course of completing a River Edge construction

17 jobs project. The credit allowed under this Section shall apply

18 only to taxpayers that make a capital investment of at least

19 $1,000,000 in a qualified rehabilitation plan.

20 (b) A business entity seeking a credit under this Section

21 must submit an application to the Department describing the

22 nature and benefit of the River Edge construction jobs project

23 to the qualified rehabilitation project and the River Edge

24 Redevelopment Zone. The Department may adopt any necessary

25 rules in order to administer the provisions of this Section.

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1 (c) Within 45 days after the receipt of an application, the

2 Department shall give notice to the applicant as to whether the

3 application has been approved or disapproved. If the Department

4 disapproves the application, it shall specify the reasons for

5 this decision and allow 60 days for the applicant to amend and

6 resubmit its application. The Department shall provide

7 assistance upon request to applicants. Resubmitted

8 applications shall receive the Department's approval or

9 disapproval within 30 days of resubmission. Those resubmitted

10 applications satisfying initial Department objectives shall be

11 approved unless reasonable circumstances warrant disapproval.

12 (d) On an annual basis, the designated zone organization

13 shall furnish a statement to the Department on the programmatic

14 and financial status of any approved project and an audited

15 financial statement of the project.

16 (e) The Department shall certify to the Department of

17 Revenue the identity of the taxpayers who are eligible for

18 River Edge construction jobs credits and the amounts of River

19 Edge construction jobs credits awarded in each taxable year.

20 (f) The Department, in collaboration with the Department of

21 Labor, shall require certified payroll reporting, pursuant to

22 Section 10-10.4 of this Act, be completed in order to verify

23 the wages and any other necessary information which the

24 Department may deem necessary to ascertain and certify the

25 total number of River Edge construction jobs employees and

26 determine the amount of a River Edge construction jobs credit.

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1 (65 ILCS 115/10-10.4 new)

2 Sec. 10-10.4. Certified payroll.

3 (a) Any contractor and each subcontractor who is engaged in

4 and is executing a River Edge construction jobs project for a

5 taxpayer that is entitled to a credit pursuant to Section

6 10-10.3 of this Act shall:

7 (1) make and keep, for a period of 5 years from the

8 date of the last payment made on or after the effective

9 date of this amendatory Act of the 101st General Assembly

10 on a contract or subcontract for a River Edge Construction

11 Jobs Project in a River Edge Redevelopment Zone records of

12 all laborers and other workers employed by them on the

13 project; the records shall include:

14 (A) the worker's name;

15 (B) the worker's address;

16 (C) the worker's telephone number, if available;

17 (D) the worker's social security number;

18 (E) the worker's classification or

19 classifications;

20 (F) the worker's gross and net wages paid in each

21 pay period;

22 (G) the worker's number of hours worked each day;

23 (H) the worker's starting and ending times of work

24 each day;

25 (I) the worker's hourly wage rate; and

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1 (J) the worker's hourly overtime wage rate;

2 (2) no later than the 15th day of each calendar month,

3 provide a certified payroll for the immediately preceding

4 month to the taxpayer in charge of the project; within 5

5 business days after receiving the certified payroll, the

6 taxpayer shall file the certified payroll with the

7 Department of Labor and the Department of Commerce and

8 Economic Opportunity; a certified payroll must be filed for

9 only those calendar months during which construction on a

10 River Edge Construction Jobs Project has occurred; the

11 certified payroll shall consist of a complete copy of the

12 records identified in paragraph (1), but may exclude the

13 starting and ending times of work each day; the certified

14 payroll shall be accompanied by a statement signed by the

15 contractor or subcontractor or an officer, employee, or

16 agent of the contractor or subcontractor which avers that:

17 (A) he or she has examined the certified payroll

18 records required to be submitted and such records are

19 true and accurate; and

20 (B) the contractor or subcontractor is aware that

21 filing a certified payroll that he or she knows to be

22 false is a Class A misdemeanor.

23 A general contractor is not prohibited from relying on a

24 certified payroll of a lower-tier subcontractor, provided the

25 general contractor does not knowingly rely upon a

26 subcontractor's false certification.

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1 Any contractor or subcontractor subject to this Section,

2 and any officer, employee, or agent of such contractor or

3 subcontractor whose duty as an officer, employee, or agent it

4 is to file a certified payroll under this Section, who

5 willfully fails to file such a certified payroll on or before

6 the date such certified payroll is required to be filed and any

7 person who willfully files a false certified payroll that is

8 false as to any material fact is in violation of this Act and

9 guilty of a Class A misdemeanor.

10 The taxpayer in charge of the project shall keep the

11 records submitted in accordance with this Section on or after

12 the effective date of this amendatory Act of the 101st General

13 Assembly for a period of 5 years from the date of the last

14 payment for work on a contract or subcontract for the project.

15 The records submitted in accordance with this subsection

16 shall be considered public records, except an employee's

17 address, telephone number, and social security number, and made

18 available in accordance with the Freedom of Information Act.

19 The Department of Labor shall accept any reasonable submissions

20 by the contractor that meet the requirements of this subsection

21 and shall share the information with the Department in order to

22 comply with the awarding of River Edge construction jobs

23 credits. A contractor, subcontractor, or public body may retain

24 records required under this Section in paper or electronic

25 format.

26 Upon 7 business days' notice, the contractor and each

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1 subcontractor shall make available for inspection and copying

2 at a location within this State during reasonable hours, the

3 records identified in paragraph (1) of this subsection to the

4 taxpayer in charge of the project, its officers and agents, the

5 Director of Labor and his deputies and agents, and to federal,

6 State, or local law enforcement agencies and prosecutors.