Bill Text: IL HB5412 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Reimagining Energy and Vehicles in Illinois Act and the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. Provides that failure to report certain data may result in ineligibility to receive incentives and may result in revocation of building materials exemption certificates issued to the taxpayer. Amends the Retailers' Occupation Tax Act. In provisions concerning the building materials exemption for REV Illinois projects and microchip and semiconductor manufacturing, provides that the retailer must obtain a certification from the purchaser that contains certain specified information. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Passed) 2024-07-19 - Public Act . . . . . . . . . 103-0712 [HB5412 Detail]

Download: Illinois-2023-HB5412-Engrossed.html

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HB5412 Engrossed LRB103 34192 HLH 64015 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Reimagining Energy and Vehicles in Illinois
Act is amended by changing Section 30 as follows:
(20 ILCS 686/30)
Sec. 30. Tax credit awards.
(a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against the tax imposed
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act for a taxable year beginning on or
after January 1, 2025 if the taxpayer is awarded a credit by
the Department in accordance with an agreement under this Act.
The Department has authority to award credits under this Act
on and after January 1, 2022.
(b) REV Illinois Credits. A taxpayer may receive a tax
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act, not to exceed
the sum of (i) 75% of the incremental income tax attributable
to new employees at the applicant's project and (ii) 10% of the
training costs of the new employees. If the project is located
in an underserved area or an energy transition area, then the
amount of the credit may not exceed the sum of (i) 100% of the

HB5412 Engrossed - 2 - LRB103 34192 HLH 64015 b
incremental income tax attributable to new employees at the
applicant's project; and (ii) 10% of the training costs of the
new employees. The percentage of training costs includable in
the calculation may be increased by an additional 15% for
training costs associated with new employees that are recent
(2 years or less) graduates, certificate holders, or
credential recipients from an institution of higher education
in Illinois, or, if the training is provided by an institution
of higher education in Illinois, the Clean Jobs Workforce
Network Program, or an apprenticeship and training program
located in Illinois and approved by and registered with the
United States Department of Labor's Bureau of Apprenticeship
and Training. An applicant is also eligible for a training
credit that shall not exceed 10% of the training costs of
retained employees for the purpose of upskilling to meet the
operational needs of the applicant or the REV Illinois
Project. The percentage of training costs includable in the
calculation shall not exceed a total of 25%. If an applicant
agrees to hire the required number of new employees, then the
maximum amount of the credit for that applicant may be
increased by an amount not to exceed 75% of the incremental
income tax attributable to retained employees at the
applicant's project; provided that, in order to receive the
increase for retained employees, the applicant must, if
applicable, meet or exceed the statewide baseline. For
agreements entered into on or after the effective date of this

HB5412 Engrossed - 3 - LRB103 34192 HLH 64015 b
amendatory Act of the 103rd General Assembly and before June
1, 2024 that qualify under paragraph (5) of subsection (c) of
Section 20, a taxpayer may receive a tax credit not to exceed
75% of the incremental income tax attributable to retained
employees at the applicant's project. If the project is in an
underserved area or an energy transition area and qualifies
under paragraph (5) of subsection (c) of Section 20, then the
maximum amount of the credit attributable to retained
employees for the applicant may be increased to an amount not
to exceed 100% of the incremental income tax attributable to
retained employees at the applicant's project.
If the Project is in an underserved area or an energy
transition area, the maximum amount of the credit attributable
to retained employees for the applicant may be increased to an
amount not to exceed 100% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must meet or exceed the statewide
baseline. REV Illinois Credits awarded may include credit
earned for incremental income tax withheld and training costs
incurred by the taxpayer beginning on or after January 1,
2022. Credits so earned and certified by the Department may be
applied against the tax imposed by subsections (a) and (b) of
Section 201 of the Illinois Income Tax Act for taxable years
beginning on or after January 1, 2025.
(c) REV Construction Jobs Credit. For construction wages

HB5412 Engrossed - 4 - LRB103 34192 HLH 64015 b
associated with a project that qualified for a REV Illinois
Credit under subsection (b), the taxpayer may receive a tax
credit against the tax imposed under subsections (a) and (b)
of Section 201 of the Illinois Income Tax Act in an amount
equal to 50% of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities, as a jobs credit for workers hired to
construct the project.
The REV Construction Jobs Credit may not exceed 75% of the
amount of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities if the project is in an underserved area or
an energy transition area.
(d) The Department shall certify to the Department of
Revenue: (1) the identity of Taxpayers that are eligible for
the REV Illinois Credit and REV Construction Jobs Credit; (2)
the amount of the REV Illinois Credits and REV Construction
Jobs Credits awarded in each calendar year; and (3) the amount
of the REV Illinois Credit and REV Construction Jobs Credit
claimed in each calendar year. REV Illinois Credits awarded
may include credit earned for Incremental Income Tax withheld
and Training Costs incurred by the Taxpayer beginning on or
after January 1, 2022. Credits so earned and certified by the
Department may be applied against the tax imposed by Section
201(a) and (b) of the Illinois Income Tax Act for taxable years
beginning on or after January 1, 2025.

HB5412 Engrossed - 5 - LRB103 34192 HLH 64015 b
(e) Applicants seeking certification for tax credits
related to the construction of the project facilities in the
State shall require the contractor to enter into a project
labor agreement that conforms with the Project Labor
Agreements Act.
(f) Any applicant issued a certificate for a tax credit or
tax exemption under this Act must annually report to the
Department the total project tax benefits received. Reports
are due no later than May 31 of each year and shall cover the
previous calendar year. The first report is for the 2022
calendar year and is due no later than May 31, 2023. Failure to
report data may result in ineligibility to receive incentives.
The Department, in consultation with the Department of
Revenue, is authorized to adopt rules governing ineligibility
to receive exemptions, including the length of ineligibility.
Factors to be considered in determining whether a business is
ineligible shall include, but are not limited to, prior
compliance with the reporting requirements, cooperation in
discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
For applicants issued a certificate of exemption under
Section 105 of this Act, the report shall be the same as
required for a High Impact Business under subsection (a-5) of
Section 8.1 of the Illinois Enterprise Zone Act. Failure to
report data may result in revocation of the building materials

HB5412 Engrossed - 6 - LRB103 34192 HLH 64015 b
exemption certificate issued to a taxpayer. The Department of
Revenue is authorized to adopt rules governing revocation
determinations, including the length of revocation. Factors to
be considered in revocations shall include, but are not
limited to, prior compliance with the reporting requirements,
cooperation in discontinuing and correcting violations, and
whether the certificate was used unlawfully during the
preceding year.
Each person required to file a return under the Gas
Revenue Tax Act, the Electricity Excise Tax Law, or the
Telecommunications Excise Tax Act shall file a report
containing information about customers that are issued an
exemption certificate under Section 95 of this Act in the same
manner and form as they are required to report under
subsection (b) of Section 8.1 of the Illinois Enterprise Zone
Act.
(g) Nothing in this Act shall prohibit an award of credit
to an applicant that uses a PEO if all other award criteria are
satisfied.
(h) With respect to any portion of a REV Illinois Credit
that is based on the incremental income tax attributable to
new employees or retained employees, in lieu of the Credit
allowed under this Act against the taxes imposed pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, a taxpayer that otherwise meets the criteria set
forth in this Section, the taxpayer may elect to claim the

HB5412 Engrossed - 7 - LRB103 34192 HLH 64015 b
credit, on or after January 1, 2025, against its obligation to
pay over withholding under Section 704A of the Illinois Income
Tax Act. The election shall be made in the manner prescribed by
the Department of Revenue and once made shall be irrevocable.
(i) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted
electronically.
(j) The Department of Revenue shall have the authority to
adopt rules as are reasonable and necessary to implement the
provisions of this Section.
(Source: P.A. 102-669, eff. 11-16-21; 102-1112, eff. 12-21-22;
102-1125, eff. 2-3-23; 103-9, eff. 6-7-23.)
Section 10. The Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act is amended by changing Section 110-30
as follows:
(35 ILCS 45/110-30)
Sec. 110-30. Tax credit awards.
(a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against the tax imposed
pursuant to subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act for a taxable year beginning on or
after January 1, 2025 if the taxpayer is awarded a credit by
the Department in accordance with an agreement under this Act.
The Department has authority to award credits under this Act

HB5412 Engrossed - 8 - LRB103 34192 HLH 64015 b
on and after January 1, 2023.
(b) A taxpayer may receive a tax credit against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act, not to exceed the sum of (i) 75% of
the incremental income tax attributable to new employees at
the applicant's project and (ii) 10% of the training costs of
the new employees. If the project is located in an underserved
area or an energy transition area, then the amount of the
credit may not exceed the sum of (i) 100% of the incremental
income tax attributable to new employees at the applicant's
project; and (ii) 10% of the training costs of the new
employees. The percentage of training costs includable in the
calculation may be increased by an additional 15% for training
costs associated with new employees that are recent (2 years
or less) graduates, certificate holders, or credential
recipients from an institution of higher education in
Illinois, or, if the training is provided by an institution of
higher education in Illinois, the Clean Jobs Workforce Network
Program, or an apprenticeship and training program located in
Illinois and approved by and registered with the United States
Department of Labor's Bureau of Apprenticeship and Training.
An applicant is also eligible for a training credit that shall
not exceed 10% of the training costs of retained employees for
the purpose of upskilling to meet the operational needs of the
applicant or the project. The percentage of training costs
includable in the calculation shall not exceed a total of 25%.

HB5412 Engrossed - 9 - LRB103 34192 HLH 64015 b
If an applicant agrees to hire the required number of new
employees, then the maximum amount of the credit for that
applicant may be increased by an amount not to exceed 75% of
the incremental income tax attributable to retained employees
at the applicant's project; provided that, in order to receive
the increase for retained employees, the applicant must, if
applicable, meet or exceed the statewide baseline. If the
Project is in an underserved area or an energy transition
area, the maximum amount of the credit attributable to
retained employees for the applicant may be increased to an
amount not to exceed 100% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must meet or exceed the statewide
baseline. Credits awarded may include credit earned for
incremental income tax withheld and training costs incurred by
the taxpayer beginning on or after January 1, 2023. Credits so
earned and certified by the Department may be applied against
the tax imposed by subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act for taxable years beginning on or
after January 1, 2025.
(c) MICRO Construction Jobs Credit. For construction wages
associated with a project that qualified for a credit under
subsection (b), the taxpayer may receive a tax credit against
the tax imposed under subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act in an amount equal to 50% of the

HB5412 Engrossed - 10 - LRB103 34192 HLH 64015 b
incremental income tax attributable to construction wages paid
in connection with construction of the project facilities, as
a jobs credit for workers hired to construct the project.
The MICRO Construction Jobs Credit may not exceed 75% of
the amount of the incremental income tax attributable to
construction wages paid in connection with construction of the
project facilities if the project is in an underserved area or
an energy transition area.
(d) The Department shall certify to the Department of
Revenue: (1) the identity of taxpayers that are eligible for
the MICRO Credit and MICRO Construction Jobs Credit; (2) the
amount of the MICRO Credits and MICRO Construction Jobs
Credits awarded in each calendar year; and (3) the amount of
the MICRO Credit and MICRO Construction Jobs Credit claimed in
each calendar year. MICRO Credits awarded may include credit
earned for incremental income tax withheld and training costs
incurred by the taxpayer beginning on or after January 1,
2023. Credits so earned and certified by the Department may be
applied against the tax imposed by Section 201(a) and (b) of
the Illinois Income Tax Act for taxable years beginning on or
after January 1, 2025.
(e) Applicants seeking certification for a tax credits
related to the construction of the project facilities in the
State shall require the contractor to enter into a project
labor agreement that conforms with the Project Labor
Agreements Act.

HB5412 Engrossed - 11 - LRB103 34192 HLH 64015 b
(f) Any applicant issued a certificate for a tax credit or
tax exemption under this Act must annually report to the
Department the total project tax benefits received. Reports
are due no later than May 31 of each year and shall cover the
previous calendar year. The first report is for the 2023
calendar year and is due no later than May 31, 2023. Failure to
report data may result in ineligibility to receive incentives.
The Department, in consultation with the Department of
Revenue, is authorized to adopt rules governing ineligibility
to receive exemptions, including the length of ineligibility.
Factors to be considered in determining whether a business is
ineligible shall include, but are not limited to, prior
compliance with the reporting requirements, cooperation in
discontinuing and correcting violations, the extent of the
violation, and whether the violation was willful or
inadvertent.
For applicants issued a certificate of exemption under
Section 110-105 of this Act, the report shall be the same as
required for a High Impact Business under subsection (a-5) of
Section 8.1 of the Illinois Enterprise Zone Act. Failure to
report data may result in revocation of the building materials
exemption certificate issued to a taxpayer. The Department of
Revenue is authorized to adopt rules governing revocation
determinations, including the length of revocation. Factors to
be considered in revocations shall include, but are not
limited to, prior compliance with the reporting requirements,

HB5412 Engrossed - 12 - LRB103 34192 HLH 64015 b
cooperation in discontinuing and correcting violations, and
whether the certificate was used unlawfully during the
preceding year.
Each person required to file a return under the Gas
Revenue Tax Act, the Electricity Excise Tax Act, or the
Telecommunications Excise Tax Act shall file a report on
customers issued an exemption certificate under Section 110-95
of this Act in the same manner and form as they are required to
report under subsection (b) of Section 8.1 of the Illinois
Enterprise Zone Act.
(g) Nothing in this Act shall prohibit an award of credit
to an applicant that uses a PEO if all other award criteria are
satisfied.
(h) With respect to any portion of a credit that is based
on the incremental income tax attributable to new employees or
retained employees, in lieu of the credit allowed under this
Act against the taxes imposed pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, a taxpayer
that otherwise meets the criteria set forth in this Section,
the taxpayer may elect to claim the credit, on or after January
1, 2025, against its obligation to pay over withholding under
Section 704A of the Illinois Income Tax Act. The election
shall be made in the manner prescribed by the Department of
Revenue and once made shall be irrevocable.
(i) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted

HB5412 Engrossed - 13 - LRB103 34192 HLH 64015 b
electronically.
(j) The Department of Revenue shall have the authority to
adopt rules as are reasonable and necessary to implement the
provisions of this Section.
(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23;
revised 4-5-23.)
Section 15. The Retailers' Occupation Tax Act is amended
by changing Sections 5m and 5n as follows:
(35 ILCS 120/5m)
Sec. 5m. Building materials exemption; REV Illinois
projects. Each retailer who makes a sale of building materials
that will be incorporated into a REV Illinois Project for
which a certificate of exemption has been issued by the
Department of Commerce and Economic Opportunity under Section
105 of the Reimagining Energy and Vehicles in Illinois Act may
deduct receipts from those sales when calculating any State or
local use and occupation taxes. No retailer who is eligible
for the deduction or credit under Section 5k of this Act
related to enterprise zones or Section 5l of this Act related
to High Impact Businesses for a given sale shall be eligible
for the deduction or credit authorized under this Section for
that same sale.
To In addition to any other requirements to document the
exemption allowed under this Section, the retailer must obtain

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from the purchaser the purchaser's REV Illinois Building
Materials Exemption certificate number issued by the
Department and a certification that contains: .
(1) a statement that the building materials are being
purchased for incorporation into a REV Illinois Project;
(2) the location or address of the real estate into
which the building materials will be incorporated;
(3) the name and address of the construction
contractor or other entity;
(4) a description of the building materials being
purchased;
(5) the purchaser's REV Illinois Building Materials
Exemption Certificate number issued by the Department of
Revenue; and
(6) the purchaser's signature and date of purchase.
A construction contractor or other entity shall not make
tax-free purchases under this Section unless it has an active
REV Illinois Building Materials Exemption Certificate issued
by the Department at the time of purchase.
Upon request from the certified manufacturer, the
Department shall issue a REV Illinois Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the certified manufacturer. The
Department shall make the REV Illinois Building Materials
Exemption Certificates available to each construction
contractor or other entity identified by the certified

HB5412 Engrossed - 15 - LRB103 34192 HLH 64015 b
manufacturer and to the certified manufacturer. The request
for REV Illinois Building Materials Exemption Certificates
under this Section must include the following information:
(1) the name and address of the construction
contractor or other entity;
(2) the name and location or address of the building
project site;
(3) the estimated amount of the exemption for each
construction contractor or other entity for which a
request for a REV Illinois Building Materials Exemption
Certificate is made, based on a stated estimated average
tax rate and the percentage of the contract that consists
of materials;
(4) the period of time over which supplies for the
project are expected to be purchased; and
(5) other reasonable information as the Department may
require, including but not limited to FEIN numbers, to
determine if the contractor or other entity, or any
partner, or a corporate officer, and in the case of a
limited liability company, any manager or member, of the
construction contractor or other entity, is or has been
the owner, a partner, a corporate officer, and in the case
of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by
the Department.

HB5412 Engrossed - 16 - LRB103 34192 HLH 64015 b
The Department shall issue the REV Illinois Building
Materials Exemption Certificates within 3 business days after
receipt of the request from the certified manufacturer. This
requirement does not apply in circumstances where the
Department, for reasonable cause, is unable to issue the
Exemption Certificate within 3 business days. The Department
may refuse to issue a REV Illinois Building Materials
Exemption Certificate if the owner, any partner, or a
corporate officer, and in the case of a limited liability
company, any manager or member, of the construction contractor
or other entity is or has been the owner, a partner, a
corporate officer, and in the case of a limited liability
company, a manager or member, of a person that is in default
for moneys due to the Department under this Act or any other
tax or fee Act administered by the Department.
The REV Illinois Building Materials Exemption Certificate
shall contain language stating that if the construction
contractor or other entity who is issued the Exemption
Certificate makes a tax-exempt purchase, as described in this
Section, that is not eligible for exemption under this Section
or allows another person to make a tax-exempt purchase, as
described in this Section, that is not eligible for exemption
under this Section, then, in addition to any tax or other
penalty imposed, the construction contractor or other entity
is subject to a penalty equal to the tax that would have been
paid by the retailer under this Act as well as any applicable

HB5412 Engrossed - 17 - LRB103 34192 HLH 64015 b
local retailers' occupation tax on the purchase that is not
eligible for the exemption.
The Department, in its discretion, may require that the
request for REV Illinois Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue the Exemption Certificates
electronically. The REV Illinois Building Materials Exemption
Certificate number shall be designed in such a way that the
Department can identify from the unique number on the
Exemption Certificate issued to a given construction
contractor or other entity, the name of the REV Illinois
project site and the construction contractor or other entity
to whom the Exemption Certificate is issued. The REV Illinois
Building Materials Exemption Certificate shall contain an
expiration date, which shall be no more than 5 years after the
date of issuance. At the request of the certified
manufacturer, the Department may renew a REV Illinois Building
Materials Exemption Certificate. After the Department issues
Exemption Certificates for a given REV Illinois project site,
the certified manufacturer may notify the Department of
additional construction contractors or other entities that are
eligible for a REV Illinois Building Materials Exemption
Certificate. Upon receiving such a notification and subject to
the other provisions of this Section, the Department shall
issue a REV Illinois Building Materials Exemption Certificate
to each additional construction contractor or other entity so

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identified. A certified manufacturer may ask the Department to
rescind a REV Illinois Building Materials Exemption
Certificate previously issued by the Department to a
construction contractor or other entity working at that
certified manufacturer's REV Illinois project site if that REV
Illinois Building Materials Exemption Certificate has not yet
expired. Upon receiving such a request and subject to the
other provisions of this Section, the Department shall issue
the rescission of the REV Illinois Building Materials
Exemption Certificate to the construction contractor or other
entity identified by the certified manufacturer and provide a
copy of the rescission to the construction contractor or other
entity and to the certified manufacturer.
If the Department of Revenue determines that a
construction contractor or other entity that was issued an
Exemption Certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
This Section is exempt from the provisions of Section

HB5412 Engrossed - 19 - LRB103 34192 HLH 64015 b
2-70.
As used in this Section, "certified manufacturer" means a
person certified by the Department of Commerce and Economic
Opportunity under Section 105 of the Reimagining Energy and
Vehicles in Illinois Act.
(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
(35 ILCS 120/5n)
Sec. 5n. Building materials exemption; microchip and
semiconductor manufacturing. Each retailer who makes a sale of
building materials that will be incorporated into real estate
in a qualified facility for which a certificate of exemption
has been issued by the Department of Commerce and Economic
Opportunity under Section 110-105 of the Manufacturing
Illinois Chips for Real Opportunity (MICRO) Act, may deduct
receipts from such sales when calculating any State or local
use and occupation taxes. No retailer who is eligible for the
deduction or credit under Section 5k of this Act related to
enterprise zones or Section 5l of this Act related to High
Impact Businesses for a given sale shall be eligible for the
deduction or credit authorized under this Section for that
same sale.
To In addition to any other requirements to document the
exemption allowed under this Section, the retailer must obtain
from the purchaser the purchaser's exemption certificate
number issued by the Department and a certification that

HB5412 Engrossed - 20 - LRB103 34192 HLH 64015 b
contains: .
(1) a statement that the building materials are being
purchased for incorporation into real estate in a
qualified facility;
(2) the location or address of the real estate into
which the building materials will be incorporated;
(3) the name and address of the construction
contractor or other entity;
(4) a description of the building materials being
purchased;
(5) the purchaser's MICRO Illinois Building Materials
Exemption Certificate number issued by the Department of
Revenue; and
(6) the purchaser's signature and date of purchase.
A construction contractor or other entity shall not make
tax-free purchases unless it has an active exemption
certificate issued by the Department at the time of purchase.
Upon request from a person that has been certified by the
Department of Commerce and Economic Opportunity under the
Manufacturing Illinois Chips for Real Opportunity (MICRO) Act,
the Department shall issue a MICRO Illinois Building Materials
Exemption Certificate for each construction contractor or
other entity identified by the person so certified. The
Department shall make the MICRO Illinois Building Materials
Exemption Certificates available to each construction
contractor or other entity as well as the person certified

HB5412 Engrossed - 21 - LRB103 34192 HLH 64015 b
under the Manufacturing Illinois Chips for Real Opportunity
(MICRO) Act. The request for MICRO Illinois Building Materials
Exemption Certificates must include the following information:
(1) the name and address of the construction
contractor or other entity;
(2) the name and location or address of the building
project site;
(3) the estimated amount of the exemption for each
construction contractor or other entity for which a
request for an exemption certificate is made, based on a
stated estimated average tax rate and the percentage of
the contract that consists of materials;
(4) the period of time over which supplies for the
project are expected to be purchased; and
(5) other reasonable information as the Department may
require, including but not limited to FEIN numbers, to
determine if the contractor or other entity, or any
partner, or a corporate officer, and in the case of a
limited liability company, any manager or member, of the
construction contractor or other entity, is or has been
the owner, a partner, a corporate officer, and in the case
of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by
the Department.
The Department shall issue the exemption certificate

HB5412 Engrossed - 22 - LRB103 34192 HLH 64015 b
within 3 business days after receipt of request. This
requirement does not apply in circumstances where the
Department, for reasonable cause, is unable to issue the
exemption certificate within 3 business days. The Department
may refuse to issue an exemption certificate under this
Section if the owner, any partner, or a corporate officer, and
in the case of a limited liability company, any manager or
member, of the construction contractor or other entity is or
has been the owner, a partner, a corporate officer, and in the
case of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by the
Department.
The MICRO Illinois Building Materials Exemption
Certificate shall contain language stating that, if the
construction contractor or other entity who is issued the
exemption certificate makes a tax-exempt purchase, as
described in this Section, that is not eligible for exemption
under this Section or allows another person to make a
tax-exempt purchase, as described in this Section, that is not
eligible for exemption under this Section, then, in addition
to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that is not eligible for the exemption.

HB5412 Engrossed - 23 - LRB103 34192 HLH 64015 b
The Department, in its discretion, may require that the
request for a MICRO Illinois Exemption Certificate be
submitted electronically. The Department may, in its
discretion, issue the exemption certificates electronically.
The MICRO Illinois Building Materials Exemption Certificate
number shall be designed in such a way that the Department can
identify from the unique number on the exemption certificate
issued to a given construction contractor or other entity, the
name of the entity to whom the exemption certificate is
issued. The MICRO Illinois Building Materials Exemption
Certificate shall contain an expiration date, which shall be
no more than 5 years after the date of issuance. At the request
of the entity to whom the exemption certificate is issued, the
Department may renew an exemption certificate issued under
this Section. After the Department issues exemption
certificates under this Section, the certified entity may
notify the Department of additional construction contractors
or other entities eligible for an exemption certificate under
this Section. Upon such a notification and subject to the
other provisions of this Section, the Department shall issue
an exemption certificate to each additional qualified
construction contractor or other entity so identified. A
certified entity may notify the Department to rescind an
exemption certificate previously issued by the Department that
has not yet expired. Upon such a notification and subject to
the other provisions of this Section, the Department shall

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rescind the exemption certificate.
If the Department of Revenue determines that a
construction contractor or other entity that was issued an
exemption certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
This Section is exempt from the provisions of Section
2-70.
(Source: P.A. 102-700, eff. 4-19-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.