Bill Text: IL HB3685 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Property Tax Code. Provides that a taxing district may grant an abatement for property that contains an expanded business facility. Defines "expanded business facility" to include a requirement that the business must create a certain number of new employment positions at the facility. Contains provisions allowing for an enhanced abatement for certain facilities. Amends the Illinois Income Tax Act to create a credit equal to a percentage of the remaining tax liability for the property. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3685 Detail]

Download: Illinois-2015-HB3685-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3685 Introduced , by Rep. Litesa E. Wallace SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
35 ILCS 200/18-184.15 new
Amends the Property Tax Code. Provides that a taxing district may grant an abatement for property that contains an expanded business facility. Defines "expanded business facility" to include a requirement that the business must create a certain number of new employment positions at the facility. Contains provisions allowing for an enhanced abatement for certain facilities. Amends the Illinois Income Tax Act to create a credit equal to a percentage of the remaining tax liability for the property. Effective immediately.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by adding
Section 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Expanded business facility credit.
(a) Notwithstanding any other provision of law, for taxable
years beginning on or after January 1, 2016, a taxpayer that
receives an abatement under Section 18-184.15 of the Property
Tax Code during the taxable year is entitled to a credit
against the tax imposed by subsections (a) and (b) of Section
201 as provided in this Section. The amount of the credit shall
be:
(1) for the first and second taxable years after the
business facility qualifies as an expanded business
facility under Section 18-184.15 of the Property Tax Code,
an amount equal to 28% of the remaining property tax
liability for the property where the expanded business
facility is located;
(2) for the third and fourth taxable years after the
business facility qualifies as an expanded business
facility under Section 18-184.15 of the Property Tax Code,

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an amount equal to 21% of the remaining property tax
liability for the property where the expanded business
facility is located; and
(3) for the fifth and sixth taxable years after the
business facility qualifies as an expanded business
facility under Section 18-184.15 of the Property Tax Code,
an amount equal to 14% of the remaining property tax
liability for the property where the expanded business
facility is located.
(b) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, the amount of the credit
shall be determined in accordance with the determination of
income and distributive share of income under Sections 702 and
704 and Subchapter S of the Internal Revenue Code.
(c) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) This Section is exempt from the provisions of Section

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250.
Section 10. The Property Tax Code is amended by adding
Section 18-184.15 as follows:
(35 ILCS 200/18-184.15 new)
Sec. 18-184.15. Business facility abatement.
(a) Each taxing district may, by a majority vote of its
governing authority, order the county clerk to abate a portion
of its taxes, as provided in subsection (b), on property that
contains an expanded business facility.
(b) The amount of the abatement shall be as follows:
(1) for the first and second taxable years after the
business facility qualifies as an expanded business
facility, the amount of the abatement shall be 52% of its
property tax liability for the applicable taxing district;
(2) for the third and fourth taxable years after the
business facility qualifies as an expanded business
facility, the amount of the abatement shall be 39% of its
property tax liability for the applicable taxing district;
(3) for the fifth and sixth taxable years after the
business facility qualifies as an expanded business
facility, the amount of the abatement shall be 26% of its
property tax liability for the applicable taxing district;
and
(4) no such abatement may be granted for the seventh

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taxable year after the expanded business facility
qualifies as an expanded business facility or thereafter.
An expanded business facility is eligible for an enhanced
abatement of 58.5% of its property tax liability for the
applicable taxing district in the first 12 years after the
expanded business facility qualifies as an expanded business
facility if:
(1) in counties with fewer than 3,000,000 inhabitants,
the expanded business facility is at least 250,000 square
feet and (i) the business retains at least 2,500 employees
and creates at least 500 new positions at the business
facility, and the salary for those new and retained
positions is at least 150% of the minimum wage for the
geographic area where the business facility is located or
(ii) the business creates at least 1,250 new positions at
the business facility, and the salary for those positions
is at least 150% of the minimum wage for the geographic
area where the business facility is located; and
(2) in counties with 3,000,000 or more inhabitants, (i)
the expanded business facility is at least 700,000 square
feet; (ii) the business spends at least $150,000,000 to
purchase, construct, or lease the facility; (iii) at least
1,100 individuals are employed at the facility, including
at least 500 new positions; (iv) all of those individuals
are eligible for employer-subsidized health care benefits
and are paid at least 150% of the minimum wage for the

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geographic area where the business facility is located.
(c) For the purposes of this Section:
"Expanded business facility" means a business facility of
at least 5,000 square feet at which:
(1) in a county with fewer than 100,000 inhabitants, at
least 10 new positions are created and filled; and
(2) in a county with 100,000 or more inhabitants, at
least 25 new positions are created and filled.
"Full-time" means that the individual is employed for
consideration for at least 35 hours each week or renders any
other standard of service generally accepted by industry custom
or practice as full-time employment.
"New position" means an employment position that is in
addition to the employer's previous head count at the
prospective expanded business facility in the taxable year
prior to the taxable year for which the abatement is granted
and is:
(1) located in Illinois;
(2) part of the expanded business facility;
(3) permanent;
(4) filled for at least one year; and
(5) full-time of indefinite duration; provided that,
in a county with at least 3,000,000 inhabitants, a contract
position of definite duration lasting at least 12 months
with an unlimited renewal option that otherwise meets the
criteria set forth in items (1) through (4) may be

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considered a "new position".
Section 99. Effective date. This Act takes effect upon
becoming law.