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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1 AN ACT concerning revenue.


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

3represented in the General Assembly:



4 Section 5. The Illinois Income Tax Act is amended by adding 
5Section 224 as follows:

6 (35 ILCS 5/224 new)
7 Sec. 224. Expanded business facility credit. 
8 (a) Notwithstanding any other provision of law, for taxable 
9years beginning on or after January 1, 2016, a taxpayer that 
10receives an abatement under Section 18-184.15 of the Property 
11Tax Code during the taxable year is entitled to a credit 
12against the tax imposed by subsections (a) and (b) of Section 
13201 as provided in this Section. The amount of the credit shall 
14be:
15  (1) for the first and second taxable years after the 
16 business facility qualifies as an expanded business 
17 facility under Section 18-184.15 of the Property Tax Code, 
18 an amount equal to 28% of the remaining property tax 
19 liability for the property where the expanded business 
20 facility is located; 
21  (2) for the third and fourth taxable years after the 
22 business facility qualifies as an expanded business 
23 facility under Section 18-184.15 of the Property Tax Code, 
 
 
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1 an amount equal to 21% of the remaining property tax 
2 liability for the property where the expanded business 
3 facility is located; and 
4  (3) for the fifth and sixth taxable years after the 
5 business facility qualifies as an expanded business 
6 facility under Section 18-184.15 of the Property Tax Code, 
7 an amount equal to 14% of the remaining property tax 
8 liability for the property where the expanded business 
9 facility is located. 
10 (b) For partners, shareholders of Subchapter S 
11corporations, and owners of limited liability companies, if the 
12liability company is treated as a partnership for purposes of 
13federal and State income taxation, the amount of the credit 
14shall be determined in accordance with the determination of 
15income and distributive share of income under Sections 702 and 
16704 and Subchapter S of the Internal Revenue Code. 
17 (c) In no event shall a credit under this Section reduce 
18the taxpayer's liability to less than zero. If the amount of 
19the credit exceeds the tax liability for the year, the excess 
20may be carried forward and applied to the tax liability of the 
215 taxable years following the excess credit year. The tax 
22credit shall be applied to the earliest year for which there is 
23a tax liability. If there are credits for more than one year 
24that are available to offset a liability, the earlier credit 
25shall be applied first. 
26 (d) This Section is exempt from the provisions of Section 
 
 
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1250. 

2 Section 10. The Property Tax Code is amended by adding 
3Section 18-184.15 as follows:

4 (35 ILCS 200/18-184.15 new)
5 Sec. 18-184.15. Business facility abatement. 
6 (a) Each taxing district may, by a majority vote of its 
7governing authority, order the county clerk to abate a portion 
8of its taxes, as provided in subsection (b), on property that 
9contains an expanded business facility.
10 (b) The amount of the abatement shall be as follows: 
11  (1) for the first and second taxable years after the 
12 business facility qualifies as an expanded business 
13 facility, the amount of the abatement shall be 52% of its 
14 property tax liability for the applicable taxing district; 
15  (2) for the third and fourth taxable years after the 
16 business facility qualifies as an expanded business 
17 facility, the amount of the abatement shall be 39% of its 
18 property tax liability for the applicable taxing district; 
19  (3) for the fifth and sixth taxable years after the 
20 business facility qualifies as an expanded business 
21 facility, the amount of the abatement shall be 26% of its 
22 property tax liability for the applicable taxing district; 
23 and 
24  (4) no such abatement may be granted for the seventh 
 
 
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1 taxable year after the expanded business facility 
2 qualifies as an expanded business facility or thereafter. 
3 An expanded business facility is eligible for an enhanced 
4abatement of 58.5% of its property tax liability for the 
5applicable taxing district in the first 12 years after the 
6expanded business facility qualifies as an expanded business 
7facility if: 
8  (1) in counties with fewer than 3,000,000 inhabitants, 
9 the expanded business facility is at least 250,000 square 
10 feet and (i) the business retains at least 2,500 employees 
11 and creates at least 500 new positions at the business 
12 facility, and the salary for those new and retained 
13 positions is at least 150% of the minimum wage for the 
14 geographic area where the business facility is located or 
15 (ii) the business creates at least 1,250 new positions at 
16 the business facility, and the salary for those positions 
17 is at least 150% of the minimum wage for the geographic 
18 area where the business facility is located; and 
19  (2) in counties with 3,000,000 or more inhabitants, (i) 
20 the expanded business facility is at least 700,000 square 
21 feet; (ii) the business spends at least $150,000,000 to 
22 purchase, construct, or lease the facility; (iii) at least 
23 1,100 individuals are employed at the facility, including 
24 at least 500 new positions; (iv) all of those individuals 
25 are eligible for employer-subsidized health care benefits 
26 and are paid at least 150% of the minimum wage for the 
 
 
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1 geographic area where the business facility is located. 
2 (c) For the purposes of this Section:
3 "Expanded business facility" means a business facility of 
4at least 5,000 square feet at which: 
5  (1) in a county with fewer than 100,000 inhabitants, at 
6 least 10 new positions are created and filled; and 
7  (2) in a county with 100,000 or more inhabitants, at 
8 least 25 new positions are created and filled. 
9 "Full-time" means that the individual is employed for 
10consideration for at least 35 hours each week or renders any 
11other standard of service generally accepted by industry custom 
12or practice as full-time employment. 
13 "New position" means an employment position that is in 
14addition to the employer's previous head count at the 
15prospective expanded business facility in the taxable year 
16prior to the taxable year for which the abatement is granted 
17and is: 
18  (1) located in Illinois; 
19  (2) part of the expanded business facility; 
20  (3) permanent;
21  (4) filled for at least one year; and 
22  (5) full-time of indefinite duration; provided that, 
23 in a county with at least 3,000,000 inhabitants, a contract 
24 position of definite duration lasting at least 12 months 
25 with an unlimited renewal option that otherwise meets the 
26 criteria set forth in items (1) through (4) may be 
 
 
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1 considered a "new position". 


2 Section 99. Effective date. This Act takes effect upon 
3becoming law.