HB5412 Engrossed LRB103 34192 HLH 64015 b
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 5. The Reimagining Energy and Vehicles in Illinois
5		Act is amended by changing Section 30 as follows:
6		(20 ILCS 686/30)
7		Sec. 30. Tax credit awards.
8		(a) Subject to the conditions set forth in this Act, a
9		taxpayer is entitled to a credit against the tax imposed
10		pursuant to subsections (a) and (b) of Section 201 of the
11		Illinois Income Tax Act for a taxable year beginning on or
12		after January 1, 2025 if the taxpayer is awarded a credit by
13		the Department in accordance with an agreement under this Act.
14		The Department has authority to award credits under this Act
15		on and after January 1, 2022.
16		(b) REV Illinois Credits. A taxpayer may receive a tax
17		credit against the tax imposed under subsections (a) and (b)
18		of Section 201 of the Illinois Income Tax Act, not to exceed
19		the sum of (i) 75% of the incremental income tax attributable
20		to new employees at the applicant's project and (ii) 10% of the
21		training costs of the new employees. If the project is located
22		in an underserved area or an energy transition area, then the
23		amount of the credit may not exceed the sum of (i) 100% of the

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1		incremental income tax attributable to new employees at the
2		applicant's project; and (ii) 10% of the training costs of the
3		new employees. The percentage of training costs includable in
4		the calculation may be increased by an additional 15% for
5		training costs associated with new employees that are recent
6		(2 years or less) graduates, certificate holders, or
7		credential recipients from an institution of higher education
8		in Illinois, or, if the training is provided by an institution
9		of higher education in Illinois, the Clean Jobs Workforce
10		Network Program, or an apprenticeship and training program
11		located in Illinois and approved by and registered with the
12		United States Department of Labor's Bureau of Apprenticeship
13		and Training. An applicant is also eligible for a training
14		credit that shall not exceed 10% of the training costs of
15		retained employees for the purpose of upskilling to meet the
16		operational needs of the applicant or the REV Illinois
17		Project. The percentage of training costs includable in the
18		calculation shall not exceed a total of 25%. If an applicant
19		agrees to hire the required number of new employees, then the
20		maximum amount of the credit for that applicant may be
21		increased by an amount not to exceed 75% of the incremental
22		income tax attributable to retained employees at the
23		applicant's project; provided that, in order to receive the
24		increase for retained employees, the applicant must, if
25		applicable, meet or exceed the statewide baseline. For
26		agreements entered into on or after the effective date of this

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1		amendatory Act of the 103rd General Assembly and before June
2		1, 2024 that qualify under paragraph (5) of subsection (c) of
3		Section 20, a taxpayer may receive a tax credit not to exceed
4		75% of the incremental income tax attributable to retained
5		employees at the applicant's project. If the project is in an
6		underserved area or an energy transition area and qualifies
7		under paragraph (5) of subsection (c) of Section 20, then the
8		maximum amount of the credit attributable to retained
9		employees for the applicant may be increased to an amount not
10		to exceed 100% of the incremental income tax attributable to
11		retained employees at the applicant's project.
12		If the Project is in an underserved area or an energy
13		transition area, the maximum amount of the credit attributable
14		to retained employees for the applicant may be increased to an
15		amount not to exceed 100% of the incremental income tax
16		attributable to retained employees at the applicant's project;
17		provided that, in order to receive the increase for retained
18		employees, the applicant must meet or exceed the statewide
19		baseline. REV Illinois Credits awarded may include credit
20		earned for incremental income tax withheld and training costs
21		incurred by the taxpayer beginning on or after January 1,
22		2022. Credits so earned and certified by the Department may be
23		applied against the tax imposed by subsections (a) and (b) of
24		Section 201 of the Illinois Income Tax Act for taxable years
25		beginning on or after January 1, 2025.
26		(c) REV Construction Jobs Credit. For construction wages

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1		associated with a project that qualified for a REV Illinois
2		Credit under subsection (b), the taxpayer may receive a tax
3		credit against the tax imposed under subsections (a) and (b)
4		of Section 201 of the Illinois Income Tax Act in an amount
5		equal to 50% of the incremental income tax attributable to
6		construction wages paid in connection with construction of the
7		project facilities, as a jobs credit for workers hired to
8		construct the project.
9		The REV Construction Jobs Credit may not exceed 75% of the
10		amount of the incremental income tax attributable to
11		construction wages paid in connection with construction of the
12		project facilities if the project is in an underserved area or
13		an energy transition area.
14		(d) The Department shall certify to the Department of
15		Revenue: (1) the identity of Taxpayers that are eligible for
16		the REV Illinois Credit and REV Construction Jobs Credit; (2)
17		the amount of the REV Illinois Credits and REV Construction
18		Jobs Credits awarded in each calendar year; and (3) the amount
19		of the REV Illinois Credit and REV Construction Jobs Credit
20		claimed in each calendar year. REV Illinois Credits awarded
21		may include credit earned for Incremental Income Tax withheld
22		and Training Costs incurred by the Taxpayer beginning on or
23		after January 1, 2022. Credits so earned and certified by the
24		Department may be applied against the tax imposed by Section
25		201(a) and (b) of the Illinois Income Tax Act for taxable years
26		beginning on or after January 1, 2025.

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

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

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

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

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1		If an applicant agrees to hire the required number of new
2		employees, then the maximum amount of the credit for that
3		applicant may be increased by an amount not to exceed 75% of
4		the incremental income tax attributable to retained employees
5		at the applicant's project; provided that, in order to receive
6		the increase for retained employees, the applicant must, if
7		applicable, meet or exceed the statewide baseline. If the
8		Project is in an underserved area or an energy transition
9		area, the maximum amount of the credit attributable to
10		retained employees for the applicant may be increased to an
11		amount not to exceed 100% of the incremental income tax
12		attributable to retained employees at the applicant's project;
13		provided that, in order to receive the increase for retained
14		employees, the applicant must meet or exceed the statewide
15		baseline. Credits awarded may include credit earned for
16		incremental income tax withheld and training costs incurred by
17		the taxpayer beginning on or after January 1, 2023. Credits so
18		earned and certified by the Department may be applied against
19		the tax imposed by subsections (a) and (b) of Section 201 of
20		the Illinois Income Tax Act for taxable years beginning on or
21		after January 1, 2025.
22		(c) MICRO Construction Jobs Credit. For construction wages
23		associated with a project that qualified for a credit under
24		subsection (b), the taxpayer may receive a tax credit against
25		the tax imposed under subsections (a) and (b) of Section 201 of
26		the Illinois Income Tax Act in an amount equal to 50% of the

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1		incremental income tax attributable to construction wages paid
2		in connection with construction of the project facilities, as
3		a jobs credit for workers hired to construct the project.
4		The MICRO Construction Jobs Credit may not exceed 75% of
5		the amount of the incremental income tax attributable to
6		construction wages paid in connection with construction of the
7		project facilities if the project is in an underserved area or
8		an energy transition area.
9		(d) The Department shall certify to the Department of
10		Revenue: (1) the identity of taxpayers that are eligible for
11		the MICRO Credit and MICRO Construction Jobs Credit; (2) the
12		amount of the MICRO Credits and MICRO Construction Jobs
13		Credits awarded in each calendar year; and (3) the amount of
14		the MICRO Credit and MICRO Construction Jobs Credit claimed in
15		each calendar year. MICRO Credits awarded may include credit
16		earned for incremental income tax withheld and training costs
17		incurred by the taxpayer beginning on or after January 1,
18		2023. Credits so earned and certified by the Department may be
19		applied against the tax imposed by Section 201(a) and (b) of
20		the Illinois Income Tax Act for taxable years beginning on or
21		after January 1, 2025.
22		(e) Applicants seeking certification for a tax credits
23		related to the construction of the project facilities in the
24		State shall require the contractor to enter into a project
25		labor agreement that conforms with the Project Labor
26		Agreements Act.

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1		(f) Any applicant issued a certificate for a tax credit or
2		tax exemption under this Act must annually report to the
3		Department the total project tax benefits received. Reports
4		are due no later than May 31 of each year and shall cover the
5		previous calendar year. The first report is for the 2023
6		calendar year and is due no later than May 31, 2023. Failure to
7		report data may result in ineligibility to receive incentives.
8		The Department, in consultation with the Department of
9		Revenue, is authorized to adopt rules governing ineligibility
10		to receive exemptions, including the length of ineligibility.
11		Factors to be considered in determining whether a business is
12		ineligible shall include, but are not limited to, prior
13		compliance with the reporting requirements, cooperation in
14		discontinuing and correcting violations, the extent of the
15		violation, and whether the violation was willful or
16		inadvertent.
17		For applicants issued a certificate of exemption under
18		Section 110-105 of this Act, the report shall be the same as
19		required for a High Impact Business under subsection (a-5) of
20		Section 8.1 of the Illinois Enterprise Zone Act. Failure to
21		report data may result in revocation of the building materials
22		exemption certificate issued to a taxpayer. The Department of
23		Revenue is authorized to adopt rules governing revocation
24		determinations, including the length of revocation. Factors to
25		be considered in revocations shall include, but are not
26		limited to, prior compliance with the reporting requirements,

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1		cooperation in discontinuing and correcting violations, and
2		whether the certificate was used unlawfully during the
3		preceding year.
4		Each person required to file a return under the Gas
5		Revenue Tax Act, the Electricity Excise Tax Act, or the
6		Telecommunications Excise Tax Act shall file a report on
7		customers issued an exemption certificate under Section 110-95
8		of this Act in the same manner and form as they are required to
9		report under subsection (b) of Section 8.1 of the Illinois
10		Enterprise Zone Act.
11		(g) Nothing in this Act shall prohibit an award of credit
12		to an applicant that uses a PEO if all other award criteria are
13		satisfied.
14		(h) With respect to any portion of a credit that is based
15		on the incremental income tax attributable to new employees or
16		retained employees, in lieu of the credit allowed under this
17		Act against the taxes imposed pursuant to subsections (a) and
18		(b) of Section 201 of the Illinois Income Tax Act, a taxpayer
19		that otherwise meets the criteria set forth in this Section,
20		the taxpayer may elect to claim the credit, on or after January
21		1, 2025, against its obligation to pay over withholding under
22		Section 704A of the Illinois Income Tax Act. The election
23		shall be made in the manner prescribed by the Department of
24		Revenue and once made shall be irrevocable.
25		(i) The Department of Revenue, in its discretion, may
26		require that the reports filed under this Section be submitted

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1		electronically.
2		(j) The Department of Revenue shall have the authority to
3		adopt rules as are reasonable and necessary to implement the
4		provisions of this Section.
5		(Source: P.A. 102-700, eff. 4-19-22; 102-1125, eff. 2-3-23;
6		revised 4-5-23.)
7		Section 15. The Retailers' Occupation Tax Act is amended
8		by changing Sections 5m and 5n as follows:
9		(35 ILCS 120/5m)
10		Sec. 5m. Building materials exemption; REV Illinois
11		projects. Each retailer who makes a sale of building materials
12		that will be incorporated into a REV Illinois Project for
13		which a certificate of exemption has been issued by the
14		Department of Commerce and Economic Opportunity under Section
15		105 of the Reimagining Energy and Vehicles in Illinois Act may
16		deduct receipts from those sales when calculating any State or
17		local use and occupation taxes. No retailer who is eligible
18		for the deduction or credit under Section 5k of this Act
19		related to enterprise zones or Section 5l of this Act related
20		to High Impact Businesses for a given sale shall be eligible
21		for the deduction or credit authorized under this Section for
22		that same sale.
23		To In addition to any other requirements to document the
24		exemption allowed under this Section, the retailer must obtain

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

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1		manufacturer and to the certified manufacturer. The request
2		for REV Illinois Building Materials Exemption Certificates
3		under this Section must include the following information:
4		(1) the name and address of the construction
5		contractor or other entity;
6		(2) the name and location or address of the building
7		project site;
8		(3) the estimated amount of the exemption for each
9		construction contractor or other entity for which a
10		request for a REV Illinois Building Materials Exemption
11		Certificate is made, based on a stated estimated average
12		tax rate and the percentage of the contract that consists
13		of materials;
14		(4) the period of time over which supplies for the
15		project are expected to be purchased; and
16		(5) other reasonable information as the Department may
17		require, including but not limited to FEIN numbers, to
18		determine if the contractor or other entity, or any
19		partner, or a corporate officer, and in the case of a
20		limited liability company, any manager or member, of the
21		construction contractor or other entity, is or has been
22		the owner, a partner, a corporate officer, and in the case
23		of a limited liability company, a manager or member, of a
24		person that is in default for moneys due to the Department
25		under this Act or any other tax or fee Act administered by
26		the Department.

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1		The Department shall issue the REV Illinois Building
2		Materials Exemption Certificates within 3 business days after
3		receipt of the request from the certified manufacturer. This
4		requirement does not apply in circumstances where the
5		Department, for reasonable cause, is unable to issue the
6		Exemption Certificate within 3 business days. The Department
7		may refuse to issue a REV Illinois Building Materials
8		Exemption Certificate if the owner, any partner, or a
9		corporate officer, and in the case of a limited liability
10		company, any manager or member, of the construction contractor
11		or other entity is or has been the owner, a partner, a
12		corporate officer, and in the case of a limited liability
13		company, a manager or member, of a person that is in default
14		for moneys due to the Department under this Act or any other
15		tax or fee Act administered by the Department.
16		The REV Illinois Building Materials Exemption Certificate
17		shall contain language stating that if the construction
18		contractor or other entity who is issued the Exemption
19		Certificate makes a tax-exempt purchase, as described in this
20		Section, that is not eligible for exemption under this Section
21		or allows another person to make a tax-exempt purchase, as
22		described in this Section, that is not eligible for exemption
23		under this Section, then, in addition to any tax or other
24		penalty imposed, the construction contractor or other entity
25		is subject to a penalty equal to the tax that would have been
26		paid by the retailer under this Act as well as any applicable

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1		local retailers' occupation tax on the purchase that is not
2		eligible for the exemption.
3		The Department, in its discretion, may require that the
4		request for REV Illinois Building Materials Exemption
5		Certificates be submitted electronically. The Department may,
6		in its discretion, issue the Exemption Certificates
7		electronically. The REV Illinois Building Materials Exemption
8		Certificate number shall be designed in such a way that the
9		Department can identify from the unique number on the
10		Exemption Certificate issued to a given construction
11		contractor or other entity, the name of the REV Illinois
12		project site and the construction contractor or other entity
13		to whom the Exemption Certificate is issued. The REV Illinois
14		Building Materials Exemption Certificate shall contain an
15		expiration date, which shall be no more than 5 years after the
16		date of issuance. At the request of the certified
17		manufacturer, the Department may renew a REV Illinois Building
18		Materials Exemption Certificate. After the Department issues
19		Exemption Certificates for a given REV Illinois project site,
20		the certified manufacturer may notify the Department of
21		additional construction contractors or other entities that are
22		eligible for a REV Illinois Building Materials Exemption
23		Certificate. Upon receiving such a notification and subject to
24		the other provisions of this Section, the Department shall
25		issue a REV Illinois Building Materials Exemption Certificate
26		to each additional construction contractor or other entity so

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1		identified. A certified manufacturer may ask the Department to
2		rescind a REV Illinois Building Materials Exemption
3		Certificate previously issued by the Department to a
4		construction contractor or other entity working at that
5		certified manufacturer's REV Illinois project site if that REV
6		Illinois Building Materials Exemption Certificate has not yet
7		expired. Upon receiving such a request and subject to the
8		other provisions of this Section, the Department shall issue
9		the rescission of the REV Illinois Building Materials
10		Exemption Certificate to the construction contractor or other
11		entity identified by the certified manufacturer and provide a
12		copy of the rescission to the construction contractor or other
13		entity and to the certified manufacturer.
14		If the Department of Revenue determines that a
15		construction contractor or other entity that was issued an
16		Exemption Certificate under this Section made a tax-exempt
17		purchase, as described in this Section, that was not eligible
18		for exemption under this Section or allowed another person to
19		make a tax-exempt purchase, as described in this Section, that
20		was not eligible for exemption under this Section, then, in
21		addition to any tax or other penalty imposed, the construction
22		contractor or other entity is subject to a penalty equal to the
23		tax that would have been paid by the retailer under this Act as
24		well as any applicable local retailers' occupation tax on the
25		purchase that was not eligible for the exemption.
26		This Section is exempt from the provisions of Section

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1		2-70.
2		As used in this Section, "certified manufacturer" means a
3		person certified by the Department of Commerce and Economic
4		Opportunity under Section 105 of the Reimagining Energy and
5		Vehicles in Illinois Act.
6		(Source: P.A. 102-669, eff. 11-16-21; 102-1125, eff. 2-3-23.)
7		(35 ILCS 120/5n)
8		Sec. 5n. Building materials exemption; microchip and
9		semiconductor manufacturing. Each retailer who makes a sale of
10		building materials that will be incorporated into real estate
11		in a qualified facility for which a certificate of exemption
12		has been issued by the Department of Commerce and Economic
13		Opportunity under Section 110-105 of the Manufacturing
14		Illinois Chips for Real Opportunity (MICRO) Act, may deduct
15		receipts from such sales when calculating any State or local
16		use and occupation taxes. No retailer who is eligible for the
17		deduction or credit under Section 5k of this Act related to
18		enterprise zones or Section 5l of this Act related to High
19		Impact Businesses for a given sale shall be eligible for the
20		deduction or credit authorized under this Section for that
21		same sale.
22		To In addition to any other requirements to document the
23		exemption allowed under this Section, the retailer must obtain
24		from the purchaser the purchaser's exemption certificate
25		number issued by the Department and a certification that

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

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1		under the Manufacturing Illinois Chips for Real Opportunity
2		(MICRO) Act. The request for MICRO Illinois Building Materials
3		Exemption Certificates must include the following information:
4		(1) the name and address of the construction
5		contractor or other entity;
6		(2) the name and location or address of the building
7		project site;
8		(3) the estimated amount of the exemption for each
9		construction contractor or other entity for which a
10		request for an exemption certificate is made, based on a
11		stated estimated average tax rate and the percentage of
12		the contract that consists of materials;
13		(4) the period of time over which supplies for the
14		project are expected to be purchased; and
15		(5) other reasonable information as the Department may
16		require, including but not limited to FEIN numbers, to
17		determine if the contractor or other entity, or any
18		partner, or a corporate officer, and in the case of a
19		limited liability company, any manager or member, of the
20		construction contractor or other entity, is or has been
21		the owner, a partner, a corporate officer, and in the case
22		of a limited liability company, a manager or member, of a
23		person that is in default for moneys due to the Department
24		under this Act or any other tax or fee Act administered by
25		the Department.
26		The Department shall issue the exemption certificate

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1		within 3 business days after receipt of request. This
2		requirement does not apply in circumstances where the
3		Department, for reasonable cause, is unable to issue the
4		exemption certificate within 3 business days. The Department
5		may refuse to issue an exemption certificate under this
6		Section if the owner, any partner, or a corporate officer, and
7		in the case of a limited liability company, any manager or
8		member, of the construction contractor or other entity is or
9		has been the owner, a partner, a corporate officer, and in the
10		case of a limited liability company, a manager or member, of a
11		person that is in default for moneys due to the Department
12		under this Act or any other tax or fee Act administered by the
13		Department.
14		The MICRO Illinois Building Materials Exemption
15		Certificate shall contain language stating that, if the
16		construction contractor or other entity who is issued the
17		exemption certificate makes a tax-exempt purchase, as
18		described in this Section, that is not eligible for exemption
19		under this Section or allows another person to make a
20		tax-exempt purchase, as described in this Section, that is not
21		eligible for exemption under this Section, then, in addition
22		to any tax or other penalty imposed, the construction
23		contractor or other entity is subject to a penalty equal to the
24		tax that would have been paid by the retailer under this Act as
25		well as any applicable local retailers' occupation tax on the
26		purchase that is not eligible for the exemption.

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1		The Department, in its discretion, may require that the
2		request for a MICRO Illinois Exemption Certificate be
3		submitted electronically. The Department may, in its
4		discretion, issue the exemption certificates electronically.
5		The MICRO Illinois Building Materials Exemption Certificate
6		number shall be designed in such a way that the Department can
7		identify from the unique number on the exemption certificate
8		issued to a given construction contractor or other entity, the
9		name of the entity to whom the exemption certificate is
10		issued. The MICRO Illinois Building Materials Exemption
11		Certificate shall contain an expiration date, which shall be
12		no more than 5 years after the date of issuance. At the request
13		of the entity to whom the exemption certificate is issued, the
14		Department may renew an exemption certificate issued under
15		this Section. After the Department issues exemption
16		certificates under this Section, the certified entity may
17		notify the Department of additional construction contractors
18		or other entities eligible for an exemption certificate under
19		this Section. Upon such a notification and subject to the
20		other provisions of this Section, the Department shall issue
21		an exemption certificate to each additional qualified
22		construction contractor or other entity so identified. A
23		certified entity may notify the Department to rescind an
24		exemption certificate previously issued by the Department that
25		has not yet expired. Upon such a notification and subject to
26		the other provisions of this Section, the Department shall

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1		rescind the exemption certificate.
2		If the Department of Revenue determines that a
3		construction contractor or other entity that was issued an
4		exemption certificate under this Section made a tax-exempt
5		purchase, as described in this Section, that was not eligible
6		for exemption under this Section or allowed another person to
7		make a tax-exempt purchase, as described in this Section, that
8		was not eligible for exemption under this Section, then, in
9		addition to any tax or other penalty imposed, the construction
10		contractor or other entity is subject to a penalty equal to the
11		tax that would have been paid by the retailer under this Act as
12		well as any applicable local retailers' occupation tax on the
13		purchase that was not eligible for the exemption.
14		This Section is exempt from the provisions of Section
15		2-70.
16		(Source: P.A. 102-700, eff. 4-19-22.)
17		Section 99. Effective date. This Act takes effect upon
18		becoming law.