102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5521
 
Introduced , by Rep. Bradley Stephens
 
SYNOPSIS AS INTRODUCED:



35 ILCS 10/5-15

 Amends the Economic Development for a Growing Economy Tax Credit Act. With respect to credits that are taken against the Taxpayer's withholding tax payments, provides that certain amounts shall be returned to the Department of Commerce and Economic Opportunity and reallocated to the local workforce investment area in which the project was located if, during the term of the Agreement or at any time within 20 years after the expiration of the Agreement, the Taxpayer sells its operations or the principal part of the portion of its operations that is located in the State. Provides that the provisions do not apply if the sale is at a loss to the Taxpayer.



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A BILL FOR
 


HB5521LRB102 22293 HLH 31426 b



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 Economic Development for a Growing Economy 
5Tax Credit Act is amended by changing Section 5-15 as follows:

6 (35 ILCS 10/5-15)
7 Sec. 5-15. Tax Credit Awards. Subject to the conditions 
8set forth in this
Act, a Taxpayer is
entitled to a Credit 
9against or, as described in subsection (g) of this Section, a 
10payment towards taxes imposed pursuant to subsections (a) and 
11(b)
of Section 201 of the Illinois
Income Tax Act that may be 
12imposed on the Taxpayer for a taxable year beginning
on or

13after January 1, 1999,
if the Taxpayer is awarded a Credit by 
14the Department under this Act for that
taxable year.
15 (a) The Department shall make Credit awards under this Act 
16to foster job
creation and retention in Illinois.
17 (b) A person that proposes a project to create new jobs in 
18Illinois must
enter into an Agreement with the
Department for 
19the Credit under this Act.
20 (c) The Credit shall be claimed for the taxable years 
21specified in the
Agreement.
22 (d) The Credit shall not exceed the Incremental Income Tax 
23attributable to
the project that is the subject of the 
 
 
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1Agreement.
2 (e) Nothing herein shall prohibit a Tax Credit Award to an 
3Applicant that uses a PEO if all other award criteria are 
4satisfied.

5 (f) In lieu of the Credit allowed under this Act against 
6the taxes imposed pursuant to subsections (a) and (b) of 
7Section 201 of the Illinois Income Tax Act for any taxable year 
8ending on or after December 31, 2009, for Taxpayers that 
9entered into Agreements prior to January 1, 2015 and otherwise 
10meet the criteria set forth in this subsection (f), the 
11Taxpayer may elect to claim the Credit against its obligation 
12to pay over withholding under Section 704A of the Illinois 
13Income Tax Act. 
14  (1) The election under this subsection (f) may be made 
15 only by a Taxpayer that (i) is primarily engaged in one of 
16 the following business activities: water purification and 
17 treatment, motor vehicle metal stamping, automobile 
18 manufacturing, automobile and light duty motor vehicle 
19 manufacturing, motor vehicle manufacturing, light truck 
20 and utility vehicle manufacturing, heavy duty truck 
21 manufacturing, motor vehicle body manufacturing, cable 
22 television infrastructure design or manufacturing, or 
23 wireless telecommunication or computing terminal device 
24 design or manufacturing for use on public networks and 
25 (ii) meets the following criteria: 
26   (A) the Taxpayer (i) had an Illinois net loss or an 
 
 
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1 Illinois net loss deduction under Section 207 of the 
2 Illinois Income Tax Act for the taxable year in which 
3 the Credit is awarded, (ii) employed a minimum of 
4 1,000 full-time employees in this State during the 
5 taxable year in which the Credit is awarded, (iii) has 
6 an Agreement under this Act on December 14, 2009 (the 
7 effective date of Public Act 96-834), and (iv) is in 
8 compliance with all provisions of that Agreement; 
9   (B) the Taxpayer (i) had an Illinois net loss or an 
10 Illinois net loss deduction under Section 207 of the 
11 Illinois Income Tax Act for the taxable year in which 
12 the Credit is awarded, (ii) employed a minimum of 
13 1,000 full-time employees in this State during the 
14 taxable year in which the Credit is awarded, and (iii) 
15 has applied for an Agreement within 365 days after 
16 December 14, 2009 (the effective date of Public Act 
17 96-834);
18   (C) the Taxpayer (i) had an Illinois net operating 
19 loss carryforward under Section 207 of the Illinois 
20 Income Tax Act in a taxable year ending during 
21 calendar year 2008, (ii) has applied for an Agreement 
22 within 150 days after the effective date of this 
23 amendatory Act of the 96th General Assembly, (iii) 
24 creates at least 400 new jobs in Illinois, (iv) 
25 retains at least 2,000 jobs in Illinois that would 
26 have been at risk of relocation out of Illinois over a 
 
 
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1 10-year period, and (v) makes a capital investment of 
2 at least $75,000,000; 
3   (D) the Taxpayer (i) had an Illinois net operating 
4 loss carryforward under Section 207 of the Illinois 
5 Income Tax Act in a taxable year ending during 
6 calendar year 2009, (ii) has applied for an Agreement 
7 within 150 days after the effective date of this 
8 amendatory Act of the 96th General Assembly, (iii) 
9 creates at least 150 new jobs, (iv) retains at least 
10 1,000 jobs in Illinois that would have been at risk of 
11 relocation out of Illinois over a 10-year period, and 
12 (v) makes a capital investment of at least 
13 $57,000,000; or 
14   (E) the Taxpayer (i) employed at least 2,500 
15 full-time employees in the State during the year in 
16 which the Credit is awarded, (ii) commits to make at 
17 least $500,000,000 in combined capital improvements 
18 and project costs under the Agreement, (iii) applies 
19 for an Agreement between January 1, 2011 and June 30, 
20 2011, (iv) executes an Agreement for the Credit during 
21 calendar year 2011, and (v) was incorporated no more 
22 than 5 years before the filing of an application for an 
23 Agreement. 
24  (1.5) The election under this subsection (f) may also 
25 be made by a Taxpayer for any Credit awarded pursuant to an 
26 agreement that was executed between January 1, 2011 and 
 
 
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1 June 30, 2011, if the Taxpayer (i) is primarily engaged in 
2 the manufacture of inner tubes or tires, or both, from 
3 natural and synthetic rubber, (ii) employs a minimum of 
4 2,400 full-time employees in Illinois at the time of 
5 application, (iii) creates at least 350 full-time jobs and 
6 retains at least 250 full-time jobs in Illinois that would 
7 have been at risk of being created or retained outside of 
8 Illinois, and (iv) makes a capital investment of at least 
9 $200,000,000 at the project location. 
10  (1.6) The election under this subsection (f) may also 
11 be made by a Taxpayer for any Credit awarded pursuant to an 
12 agreement that was executed within 150 days after the 
13 effective date of this amendatory Act of the 97th General 
14 Assembly, if the Taxpayer (i) is primarily engaged in the 
15 operation of a discount department store, (ii) maintains 
16 its corporate headquarters in Illinois, (iii) employs a 
17 minimum of 4,250 full-time employees at its corporate 
18 headquarters in Illinois at the time of application, (iv) 
19 retains at least 4,250 full-time jobs in Illinois that 
20 would have been at risk of being relocated outside of 
21 Illinois, (v) had a minimum of $40,000,000,000 in total 
22 revenue in 2010, and (vi) makes a capital investment of at 
23 least $300,000,000 at the project location. 
24  (1.7) Notwithstanding any other provision of law, the 
25 election under this subsection (f) may also be made by a 
26 Taxpayer for any Credit awarded pursuant to an agreement 
 
 
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1 that was executed or applied for on or after July 1, 2011 
2 and on or before March 31, 2012, if the Taxpayer is 
3 primarily engaged in the manufacture of original and 
4 aftermarket filtration parts and products for automobiles, 
5 motor vehicles, light duty motor vehicles, light trucks 
6 and utility vehicles, and heavy duty trucks, (ii) employs 
7 a minimum of 1,000 full-time employees in Illinois at the 
8 time of application, (iii) creates at least 250 full-time 
9 jobs in Illinois, (iv) relocates its corporate 
10 headquarters to Illinois from another state, and (v) makes 
11 a capital investment of at least $4,000,000 at the project 
12 location. 
13  (2) An election under this subsection shall allow the 
14 credit to be taken against payments otherwise due under 
15 Section 704A of the Illinois Income Tax Act during the 
16 first calendar year beginning after the end of the taxable 
17 year in which the credit is awarded under this Act. 
18  (3) The election shall be made in the form and manner 
19 required by the Illinois Department of Revenue and, once 
20 made, shall be irrevocable. 
21  (4) If a Taxpayer who meets the requirements of 
22 subparagraph (A) of paragraph (1) of this subsection (f) 
23 elects to claim the Credit against its withholdings as 
24 provided in this subsection (f), then, on and after the 
25 date of the election, the terms of the Agreement between 
26 the Taxpayer and the Department may not be further amended 
 
 
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1 during the term of the Agreement. 
2  (5) If a Taxpayer makes an election under this 
3 subsection (f) for a calendar year beginning on or after 
4 the effective date of this amendatory Act of the 102nd 
5 General Assembly, and, during the term of the Agreement or 
6 at any time within 20 years after the expiration of the 
7 Agreement, the Taxpayer sells its operations or the 
8 principal part of the portion of its operations that is 
9 located in the State, then the entire credit amount 
10 awarded to the Taxpayer prior to the date the Taxpayer 
11 sells its operations shall be returned to the Department 
12 and shall be reallocated to the local workforce investment 
13 area in which the project was located. This paragraph (5) 
14 shall not apply if: (i) the Taxpayer as a whole is sold at 
15 a loss to its owners; or (ii) the principal part of that 
16 portion of its operations that is located in the State is 
17 sold at a loss to the Taxpayer. For purposes of this 
18 subparagraph, "loss" shall be as defined in 26 U.S.C. 65. 
19 (g) A pass-through entity that has been awarded a credit 
20under this Act, its shareholders, or its partners may treat 
21some or all of the credit awarded pursuant to this Act as a tax 
22payment for purposes of the Illinois Income Tax Act. The term 
23"tax payment" means a payment as described in Article 6 or 
24Article 8 of the Illinois Income Tax Act or a composite payment 
25made by a pass-through entity on behalf of any of its 
26shareholders or partners to satisfy such shareholders' or 
 
 
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1partners' taxes imposed pursuant to subsections (a) and (b) of 
2Section 201 of the Illinois Income Tax Act. In no event shall 
3the amount of the award credited pursuant to this Act exceed 
4the Illinois income tax liability of the pass-through entity 
5or its shareholders or partners for the taxable year. 
6(Source: P.A. 100-511, eff. 9-18-17.)