Bill Text: IL SB0664 | 2021-2022 | 102nd General Assembly | Engrossed

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Bill Title: Reinserts the provisions of the introduced bill with additions. Modifies requirements concerning qualifications for enterprise zones. Allows the Department of Commerce and Economic Opportunity to award partial points on a pro rata basis for the purpose of enterprise zone qualification if an applicant demonstrates specified job creation and investment criteria. Makes further changes concerning the awarding of points. Makes changes concerning the certification of enterprise zones. Provides that beginning in calendar year 2021 and for any year in which there are at least 4 Zones available for designation, at least 25% of zones available for designation in a given calendar year must be awarded to zones located in counties with populations of less than 300,000 unless there are no applicants from such locations for that calendar year. Provides that for enterprise zones that are scheduled to expire on or after January 1, 2017 and prior to January 1, 2024, an application process shall begin 2 years prior to the year in which the zone expires. Provides that with respect to job creation or retention, employers and High Impact Businesses shall use best efforts to submit diversity information related to the gender and ethnicity of such employees. Makes conforming and other changes.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed - Dead) 2021-05-15 - Rule 19(a) / Re-referred to Rules Committee [SB0664 Detail]

Download: Illinois-2021-SB0664-Engrossed.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Enterprise Zone Act is amended by
changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, 5.5, 8.1,
12-9, and 13 as follows:
(20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
Sec. 3. Definitions. As used in this Act, the following
words shall have the meanings ascribed to them, unless the
context otherwise requires:
(a) "Department" means the Department of Commerce and
Economic Opportunity.
(b) "Enterprise Zone" means an area of the State certified
by the Department as an Enterprise Zone pursuant to this Act.
(c) "Depressed Area" means an area in which pervasive
poverty, unemployment and economic distress exist.
(d) "Designated Zone Organization" means an association or
entity: (1) the members of which are substantially all
residents of the Enterprise Zone; (2) the board of directors
of which is elected by the members of the organization; (3)
which satisfies the criteria set forth in Section 501(c) (3)
or 501(c) (4) of the Internal Revenue Code; and (4) which
exists primarily for the purpose of performing within such

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area or zone for the benefit of the residents and businesses
thereof any of the functions set forth in Section 8 of this
Act.
(e) "Agency" means each officer, board, commission and
agency created by the Constitution, in the executive branch of
State government, other than the State Board of Elections;
each officer, department, board, commission, agency,
institution, authority, university, body politic and corporate
of the State; and each administrative unit or corporate
outgrowth of the State government which is created by or
pursuant to statute, other than units of local government and
their officers, school districts and boards of election
commissioners; each administrative unit or corporate outgrowth
of the above and as may be created by executive order of the
Governor. No entity shall be considered an "agency" for the
purposes of this Act unless authorized by law to make rules or
regulations.
(f) "Rule" means each agency statement of general
applicability that implements, applies, interprets or
prescribes law or policy, but does not include (i) statements
concerning only the internal management of an agency and not
affecting private rights or procedures available to persons or
entities outside the agency, (ii) intra-agency memoranda, or
(iii) the prescription of standardized forms.
(g) "Board" means the Enterprise Zone Board created in
Section 5.2.1.

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(h) "Local labor market area" means an economically
integrated area within which individuals can reside and find
employment within a reasonable distance or can readily change
jobs without changing their place of residence.
(i) "Full-time equivalent job" means a job in which the
new employee works for the recipient or for a corporation
under contract to the recipient at a rate of at least 35 hours
per week. A recipient who employs labor or services at a
specific site or facility under contract with another may
declare one full-time, permanent job for every 1,820 man hours
worked per year under that contract. Vacations, paid holidays,
and sick time are included in this computation. Overtime is
not considered a part of regular hours.
(j) "Full-time retained job" means any employee defined as
having a full-time or full-time equivalent job preserved at a
specific facility or site, the continuance of which is
threatened by a specific and demonstrable threat, which shall
be specified in the application for development assistance. A
recipient who employs labor or services at a specific site or
facility under contract with another may declare one retained
employee per year for every 1,750 man hours worked per year
under that contract, even if different individuals perform
on-site labor or services.
(Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
(20 ILCS 655/4) (from Ch. 67 1/2, par. 604)

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Sec. 4. Qualifications for enterprise zones.
(1) An area is qualified to become an enterprise zone
which:
(a) is a contiguous area, provided that a zone area
may exclude wholly surrounded territory within its
boundaries;
(b) comprises a minimum of one-half square mile and
not more than 12 square miles, or 15 square miles if the
zone is located within the jurisdiction of 4 or more
counties or municipalities, in total area, exclusive of
lakes and waterways; however, in such cases where the
enterprise zone is a joint effort of three or more units of
government, or two or more units of government if situated
in a township which is divided by a municipality of
1,000,000 or more inhabitants, and where the certification
has been in effect at least one year, the total area shall
comprise a minimum of one-half square mile and not more
than thirteen square miles in total area exclusive of
lakes and waterways;
(c) (blank);
(d) (blank);
(e) is (1) entirely within a municipality or (2)
entirely within the unincorporated areas of a county,
except where reasonable need is established for such zone
to cover portions of more than one municipality or county
or (3) both comprises (i) all or part of a municipality and

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(ii) an unincorporated area of a county; and
(f) meets 3 or more of the following criteria:
(1) all or part of the local labor market area has
had an annual average unemployment rate of at least
120% of the State's annual average unemployment rate
for the most recent calendar year or the most recent
fiscal year as reported by the Department of
Employment Security;
(2) designation will result in the development of
substantial employment opportunities by creating or
retaining a minimum aggregate of 1,000 full-time
equivalent jobs due to an aggregate investment of
$100,000,000 or more, and will help alleviate the
effects of poverty and unemployment within the local
labor market area;
(3) all or part of the local labor market area has
a poverty rate of at least 20% according to American
Community Survey; 35% or more of families with
children in the area are living below 130% of the
poverty line, according to the latest American
Community Survey; the latest federal decennial census,
50% or more of children in the local labor market area
participate in the federal free lunch program
according to reported statistics from the State Board
of Education, or 20% or more households in the local
labor market area receive food stamps or assistance

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under Supplemental Nutrition Assistance Program
("SNAP") according to the latest American Community
Survey federal decennial census;
(4) an abandoned coal mine, a brownfield (as
defined in Section 58.2 of the Environmental
Protection Act), or an inactive nuclear-powered
electrical generation facility where spent nuclear
fuel is stored on-site is located in the proposed zone
area, or all or a portion of the proposed zone was
declared a federal disaster area in the 3 years
preceding the date of application;
(5) the local labor market area contains a
presence of large employers that have downsized over
the years, the labor market area has experienced plant
closures in the 5 years prior to the date of
application affecting more than 50 workers, or the
local labor market area has experienced State or
federal facility closures in the 5 years prior to the
date of application affecting more than 50 workers;
(6) based on data from Multiple Listing Service
information or other suitable sources, the local labor
market area contains a high floor vacancy rate of
industrial or commercial properties, vacant or
demolished commercial and industrial structures are
prevalent in the local labor market area, or
industrial structures in the local labor market area

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are not used because of age, deterioration, relocation
of the former occupants, or cessation of operation;
(7) the applicant demonstrates a substantial plan
for using the designation to improve the State and
local government tax base, including income, sales,
and property taxes, including a plan for disposal of
publicly-owned real property by the methods described
in Section 10 of this Act;
(8) significant public infrastructure is present
in the local labor market area in addition to a plan
for infrastructure development and improvement;
(9) high schools or community colleges located
within the local labor market area are engaged in ACT
Work Keys, Manufacturing Skills Standard
Certification, or other industry-based credentials
that prepare students for careers;
(10) (blank); or the change in equalized assessed
valuation of industrial and/or commercial properties
in the 5 years prior to the date of application is
equal to or less than 50% of the State average change
in equalized assessed valuation for industrial and/or
commercial properties, as applicable, for the same
period of time; or
(11) the applicant demonstrates a substantial plan
for using the designation to encourage: (i)
participation by businesses owned by minorities,

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women, and persons with disabilities, as those terms
are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act; and (ii) the
hiring of minorities, women, and persons with
disabilities.
As provided in Section 10-5.3 of the River Edge
Redevelopment Zone Act, upon the expiration of the term of
each River Edge Redevelopment Zone in existence on August 7,
2012 (the effective date of Public Act 97-905), that River
Edge Redevelopment Zone will become available for its previous
designee or a new applicant to compete for designation as an
enterprise zone. No preference for designation will be given
to the previous designee of the zone.
(2) Any criteria established by the Department or by law
which utilize the rate of unemployment for a particular area
shall provide that all persons who are not presently employed
and have exhausted all unemployment benefits shall be
considered unemployed, whether or not such persons are
actively seeking employment.
(Source: P.A. 100-838, eff. 8-13-18; 100-1149, eff. 12-14-18;
101-81, eff. 7-12-19.)
(20 ILCS 655/4.1)
Sec. 4.1. Department recommendations.
(a) For all applications that qualify under Section 4 of
this Act, the Department shall issue recommendations by

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assigning a score to each applicant. The scores will be
determined by the Department, based on the extent to which an
applicant meets the criteria points under subsection (f) of
Section 4 of this Act. Scores will be determined using the
following scoring system:
(1) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (1) of
subsection (f) of Section 4 of this Act, with points
awarded according to the severity of the unemployment.
(2) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (2) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the number of jobs created and
the aggregate amount of investment promised. The
Department may award partial points on a pro rata basis
under this paragraph (2) if the applicant demonstrates
specific job creation and investment below the thresholds
set forth in paragraph (2) of subsection (f) of Section 4.
(3) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (3) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the
unemployment rate according to the latest American
Community Survey federal decennial census.
(4) Up to 30 points for the extent to which the
applicant meets or exceeds the criteria in item (4) of

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subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the
environmental impact of the abandoned coal mine,
brownfield, or federal disaster area.
(5) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (5) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity of the applicable
facility closures or downsizing.
(6) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (6) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the severity and extent of the
high floor vacancy or deterioration.
(7) Up to 30 points for the extent to which the
applicant meets or exceeds the criteria in item (7) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the extent to which the
application addresses a plan to improve the State and
local government tax base, including a plan for disposal
of publicly-owned real property.
(8) Up to 50 points for the extent to which the
applicant meets or exceeds the criteria in item (8) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the existence of significant
public infrastructure.

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(9) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (9) of
subsection (f) of Section 4 of this Act, with points
awarded in accordance with the extent to which educational
programs exist for career preparation.
(10) (Blank). Up to 40 points for the extent to which
the applicant meets or exceeds the criteria in item (10)
of subsection (f) of Section 4 of this Act, with points
awarded according to the severity of the change in
equalized assessed valuation.
(11) Up to 40 points for the extent to which the
applicant meets or exceeds the criteria in item (11) of
subsection (f) of Section 4 of this Act.
(12) In awarding points under paragraphs (1) through
(9), the Department may adjust the scoring for applicants
that are located entirely within a county with a
population of less than 300,000 if the Department finds
that the designation will help to alleviate the effects of
poverty and unemployment within the proposed Enterprise
Zone.
(b) After assigning a score for each of the individual
criteria using the point system as described in subsection
(a), the Department shall then take the sum of the scores for
each applicant and assign a final score. The Department shall
then submit this information to the Board, as required in
subsection (c) of Section 5.2, as its recommendation.

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(Source: P.A. 100-838, eff. 8-13-18.)
(20 ILCS 655/5.1) (from Ch. 67 1/2, par. 606)
Sec. 5.1. Application to Department.
(a) A county or municipality which has adopted an
ordinance designating an area as an enterprise zone shall make
written application to the Department to have such proposed
enterprise zone certified by the Department as an Enterprise
Zone. The application shall include:
(i) a certified copy of the ordinance designating the
proposed zone;
(ii) a map of the proposed enterprise zone, showing
existing streets and highways;
(iii) an analysis, and any appropriate supporting
documents and statistics, demonstrating that the proposed
zone area is qualified in accordance with Section 4;
(iv) a statement detailing any tax, grant, and other
financial incentives or benefits, and any programs, to be
provided by the municipality or county to business
enterprises within the zone, other than those provided in
the designating ordinance, which are not to be provided
throughout the municipality or county;
(v) a statement setting forth the economic development
and planning objectives for the zone;
(vi) a statement describing the functions, programs,
and services to be performed by designated zone

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organizations within the zone;
(vii) an estimate of the economic impact of the zone,
considering all of the tax incentives, financial benefits
and programs contemplated, upon the revenues of the
municipality or county;
(viii) a transcript of all public hearings on the
zone;
(ix) in the case of a joint application, a statement
detailing the need for a zone covering portions of more
than one municipality or county and a description of the
agreement between joint applicants; and
(x) such additional information as the Department by
regulation may require.
(b) The Department may provide for provisional
certification of substantially complete applications pending
the receipt of any of the items identified in subsection (a) of
this Section or any additional information requested by the
Department.
(Source: P.A. 82-1019.)
(20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
Sec. 5.2. Department Review of Enterprise Zone
Applications.
(a) All applications which are to be considered and acted
upon by the Department during a calendar year must be received
by the Department no later than December 31 of the preceding

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calendar year.
Any application received after December 31 of any calendar
year shall be held by the Department for consideration and
action during the following calendar year.
Each enterprise zone application shall include a specific
definition of the applicant's local labor market area.
(a-5) The Department shall, no later than July 31, 2013,
develop an application process for an enterprise zone
application. The Department has emergency rulemaking authority
for the purpose of application development only until 12
months after the effective date of this amendatory Act of the
97th General Assembly.
(b) Upon receipt of an application from a county or
municipality the Department shall review the application to
determine whether the designated area qualifies as an
enterprise zone under Section 4 of this Act.
(c) No later than June 30, the Department shall notify all
applicant municipalities and counties of the Department's
determination of the qualification of their respective
designated enterprise zone areas, and shall send qualifying
applications, including the applicant's scores for each of the
items set forth in items (1) through (10) of subsection (a) of
Section 4.1 and the applicant's final score under that
Section, to the Board for the Board's consideration, along
with supporting documentation of the basis for the
Department's decision.

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(d) If any such designated area is found to be qualified to
be an enterprise zone by the Department under subsection (c)
of this Section, the Department shall, no later than July 15,
send a letter of notification to each member of the General
Assembly whose legislative district or representative district
contains all or part of the designated area and publish a
notice in at least one newspaper of general circulation within
the proposed zone area to notify the general public of the
application and their opportunity to comment. Such notice
shall include a description of the area and a brief summary of
the application and shall indicate locations where the
applicant has provided copies of the application for public
inspection. The notice shall also indicate appropriate
procedures for the filing of written comments from zone
residents, business, civic and other organizations and
property owners to the Department. The Department and the
Board may consider written comments submitted pursuant to this
Section or any other information regarding a pending
enterprise zone application submitted after the deadline for
enterprise zone application and received prior to the Board's
decision on all pending applications.
(e) (Blank).
(f) (Blank).
(g) (Blank).
(h) (Blank).
(Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)

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(20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
Sec. 5.3. Certification of Enterprise Zones; effective
date.
(a) Certification of Board-approved designated Enterprise
Zones shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each Enterprise Zone upon approval by the
Board. The certificate shall be signed by the Director of the
Department, shall make specific reference to the designating
ordinance, which shall be attached thereto, and shall be filed
in the office of the Secretary of State. A certified copy of
the Enterprise Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of recorder of deeds
of the county in which the Enterprise Zone lies.
(b) An Enterprise Zone certified prior to January 1, 2016
or on or after January 1, 2017 shall be effective on January 1
of the first calendar year after Department certification. An
Enterprise Zone certified on or after January 1, 2016 and on or
before December 31, 2016 shall be effective on the date of the
Department's certification. The Department shall transmit a
copy of the certification to the Department of Revenue, and to
the designating municipality or county.
Upon certification of an Enterprise Zone, the terms and
provisions of the designating ordinance shall be in effect,
and may not be amended or repealed except in accordance with

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Section 5.4.
(c) With the exception of Enterprise Zones scheduled to
expire before December 31, 2018, an Enterprise Zone designated
before the effective date of this amendatory Act of the 97th
General Assembly shall be in effect for 30 calendar years, or
for a lesser number of years specified in the certified
designating ordinance. Notwithstanding the foregoing, any
Enterprise Zone in existence on the effective date of this
amendatory Act of the 98th General Assembly that has a term of
20 calendar years may be extended for an additional 10
calendar years upon amendment of the designating ordinance by
the designating municipality or county and submission of the
ordinance to the Department. The amended ordinance must be
properly recorded in the Office of Recorder of Deeds of each
county in which the Enterprise Zone lies. Each Enterprise Zone
in existence on the effective date of this amendatory Act of
the 97th General Assembly that is scheduled to expire before
July 1, 2016 may have its termination date extended until July
1, 2016 upon amendment of the designating ordinance by the
designating municipality or county extending the termination
date to July 1, 2016 and submission of the ordinance to the
Department. The amended ordinance must be properly recorded in
the Office of Recorder of Deeds of each county in which the
Enterprise Zone lies. An Enterprise Zone designated on or
after the effective date of this amendatory Act of the 97th
General Assembly shall be in effect for a term of 15 calendar

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years, or for a lesser number of years specified in the
certified designating ordinance. An enterprise zone designated
on or after the effective date of this amendatory Act of the
97th General Assembly shall be subject to review by the Board
after 13 years for an additional 10-year designation beginning
on the expiration date of the enterprise zone. During the
review process, the Board shall consider the costs incurred by
the State and units of local government as a result of tax
benefits received by the enterprise zone as well as whether
the Zone has substantially implemented the plans and achieved
the goals set forth in its original application, including
satisfaction of the investment and job creation or retention
information provided by the Applicant with respect to
paragraph (f) of subsection (1) of Section 4 of the Act.
Enterprise Zones shall terminate at midnight of December 31 of
the final calendar year of the certified term, except as
provided in Section 5.4.
(d) Except for Enterprise Zones authorized under
subsection (f), Zones that become available for designation
pursuant to Section 10-5.3 of the River Edge Redevelopment
Zone Act, or those designated pursuant to another statutory
authority providing for the creation of Enterprise Zones, no
No more than a total of 97 12 Enterprise Zones may be certified
by the Department and in existence in any calendar year 1984,
no more than 12 Enterprise Zones may be certified by the
Department in calendar year 1985, no more than 13 Enterprise

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Zones may be certified by the Department in calendar year
1986, no more than 15 Enterprise Zones may be certified by the
Department in calendar year 1987, and no more than 20
Enterprise Zones may be certified by the Department in
calendar year 1990. In other calendar years, no more than 13
Enterprise Zones may be certified by the Department. The
Department may also designate up to 8 additional Enterprise
Zones outside the regular application cycle if warranted by
the extreme economic circumstances as determined by the
Department. The Department may also designate one additional
Enterprise Zone outside the regular application cycle if an
aircraft manufacturer agrees to locate an aircraft
manufacturing facility in the proposed Enterprise Zone.
Notwithstanding any other provision of this Act, no more than
89 Enterprise Zones may be certified by the Department for the
10 calendar years commencing with 1983. The 7 additional
Enterprise Zones authorized by Public Act 86-15 shall not lie
within municipalities or unincorporated areas of counties that
abut or are contiguous to Enterprise Zones certified pursuant
to this Section prior to June 30, 1989. The 7 additional
Enterprise Zones (excluding the additional Enterprise Zone
which may be designated outside the regular application cycle)
authorized by Public Act 86-1030 shall not lie within
municipalities or unincorporated areas of counties that abut
or are contiguous to Enterprise Zones certified pursuant to
this Section prior to February 28, 1990. Beginning in calendar

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year 2004 and until December 31, 2008, one additional
enterprise zone may be certified by the Department. In any
calendar year, the Department may not certify more than 3
Zones located within the same municipality. The Department may
certify Enterprise Zones in each of the 10 calendar years
commencing with 1983. The Department may not certify more than
a total of 18 Enterprise Zones located within the same county
(whether within municipalities or within unincorporated
territory) for the 10 calendar years commencing with 1983.
Thereafter, the Department may not certify any additional
Enterprise Zones, but may amend and rescind certifications of
existing Enterprise Zones in accordance with Section 5.4.
Beginning in calendar year 2021 and for any year in which there
are at least 4 Zones available for designation, at least 25% of
Zones available for designation in a given calendar year must
be awarded to Zones located in counties with populations of
less than 300,000 unless there are no applicants from such
locations for that calendar year.
(e) Notwithstanding any other provision of law, if (i) the
county board of any county in which a current military base is
located, in part or in whole, or in which a military base that
has been closed within 20 years of the effective date of this
amendatory Act of 1998 is located, in part or in whole, adopts
a designating ordinance in accordance with Section 5 of this
Act to designate the military base in that county as an
enterprise zone and (ii) the property otherwise meets the

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qualifications for an enterprise zone as prescribed in Section
4 of this Act, then the Department may certify the designating
ordinance or ordinances, as the case may be.
(f) Applications for Enterprise Zones that are scheduled
to expire in 2016, including Enterprise Zones that have been
extended until 2016 by this amendatory Act of the 97th General
Assembly, shall be submitted to the Department no later than
December 31, 2014. At that time, the Zone becomes available
for either the previously designated area or a different area
to compete for designation. No preference for designation as a
Zone will be given to the previously designated area.
For Enterprise Zones that are scheduled to expire on or
after January 1, 2017 and prior to January 1, 2024, an
application process shall begin 2 years prior to the year in
which the Zone expires. At that time, the Zone becomes
available for either the previously designated area or a
different area to compete for designation. For Enterprise
Zones that are scheduled to expire on or after January 1, 2024,
an application process shall begin 5 years prior to the year in
which the Zone expires. At that time, the Zone becomes
available for either the previously designated area or a
different area to compete for designation. No preference for
designation as a Zone will be given to the previously
designated area.
Each Enterprise Zone that reapplies for certification but
does not receive a new certification shall expire on its

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scheduled termination date.
(Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
(20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
Sec. 5.4. Amendment and Decertification of Enterprise
Zones.
(a) The terms of a certified enterprise zone designating
ordinance may be amended to
(i) alter the boundaries of the Enterprise Zone, or
(ii) expand, limit or repeal tax incentives or
benefits provided in the ordinance, or
(iii) alter the termination date of the zone, or
(iv) make technical corrections in the enterprise zone
designating ordinance; but such amendment shall not be
effective unless the Department issues an amended
certificate for the Enterprise Zone, approving the amended
designating ordinance. Upon the adoption of any ordinance
amending or repealing the terms of a certified enterprise
zone designating ordinance, the municipality or county
shall promptly file with the Department an application for
approval thereof, containing substantially the same
information as required for an application under Section
5.1 insofar as material to the proposed changes. The
municipality or county must hold a public hearing on the
proposed changes as specified in Section 5 and, if the
amendment is to effectuate the limitation of tax

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abatements under Section 5.4.1, then the public notice of
the hearing shall state that property that is in both the
enterprise zone and a redevelopment project area may not
receive tax abatements unless within 60 days after the
adoption of the amendment to the designating ordinance the
municipality has determined that eligibility for tax
abatements has been established,
(v) include an area within another municipality or
county as part of the designated enterprise zone provided
the requirements of Section 4 are complied with, or
(vi) effectuate the limitation of tax abatements under
Section 5.4.1.
(b) The Department shall approve or disapprove a proposed
amendment to a certified enterprise zone within 90 days of its
receipt of the application from the municipality or county.
The Department may not approve changes in a Zone which are not
in conformity with this Act, as now or hereafter amended, or
with other applicable laws. If the Department issues an
amended certificate for an Enterprise Zone, the amended
certificate, together with the amended zone designating
ordinance, shall be filed, recorded and transmitted as
provided in Section 5.3.
(c) An Enterprise Zone may be decertified by joint action
of the Department and the designating county or municipality
in accordance with this Section. The designating county or
municipality shall conduct at least one public hearing within

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the zone prior to its adoption of an ordinance of
de-designation. The mayor of the designating municipality or
the chairman of the county board of the designating county
shall execute a joint decertification agreement with the
Department. A decertification of an Enterprise Zone shall not
become effective until at least 6 months after the execution
of the decertification agreement, which shall be filed in the
office of the Secretary of State.
(d) An Enterprise Zone may be decertified for cause by the
Department in accordance with this Section. Prior to
decertification: (1) the Department shall notify the chief
elected official of the designating county or municipality in
writing of the specific deficiencies which provide cause for
decertification; (2) the Department shall place the
designating county or municipality on probationary status for
at least 6 months during which time corrective action may be
achieved in the enterprise zone by the designating county or
municipality; and, (3) the Department shall conduct at least
one public hearing within the zone. If such corrective action
is not achieved during the probationary period, the Department
shall issue an amended certificate signed by the Director of
the Department decertifying the enterprise zone, which
certificate shall be filed in the office of the Secretary of
State. A certified copy of the amended enterprise zone
certificate, or a duplicate original thereof, shall be
recorded in the office of recorder of the county in which the

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enterprise zone lies, and shall be provided to the chief
elected official of the designating county or municipality.
Decertification of an Enterprise Zone shall not become
effective until 60 days after the date of filing.
(d-1) The Department shall provisionally decertify any
Enterprise Zone that fails to file a report or fails to report
any capital investment, job creation or retention, or State
tax expenditures for 3 consecutive calendar years. Prior to
provisional decertification: (1) the Department shall notify
the chief elected official of the designating county or
municipality in writing of the specific deficiencies which
provide cause for decertification; (2) the Department shall
place the designating county or municipality on probationary
status for at least 6 months during which time corrective
action may be achieved in the Enterprise Zone by the
designating county or municipality; and (3) the Department
shall conduct at least one public hearing within the Zone. If
such corrective action is not achieved during the probationary
period, the Department shall issue an amended certificate
signed by the Director of the Department provisionally
decertifying the Enterprise Zone as of the scheduled
termination date of the then-current designation. If the
provisionally decertified Zone was approved and designated
after the 102nd General Assembly and has been in existence for
less than 15 years, such Zone shall not be eligible for an
additional 10-year designation after the expiration date of

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the original Zone set forth in subsection (c) of Section 5.3.
Further, if such corrective action is not achieved during the
probationary period provided for in this Section, following
such probationary period the Zone becomes available for a
different area to compete for designation.
(e) In the event of a decertification, provisional
decertification, or an amendment reducing the length of the
term or the area of an Enterprise Zone or the adoption of an
ordinance reducing or eliminating tax benefits in an
Enterprise Zone, all benefits previously extended within the
Zone pursuant to this Act or pursuant to any other Illinois law
providing benefits specifically to or within Enterprise Zones
shall remain in effect for the original stated term of the
Enterprise Zone, with respect to business enterprises within
the Zone on the effective date of such decertification,
provisional decertification, or amendment, and with respect to
individuals participating in urban homestead programs under
this Act.
(f) Except as otherwise provided in Section 5.4.1, with
respect to business enterprises (or expansions thereof) which
are proposed or under development within a Zone at the time of
a decertification or an amendment reducing the length of the
term of the Zone, or excluding from the Zone area the site of
the proposed enterprise, or an ordinance reducing or
eliminating tax benefits in a Zone, such business enterprise
shall be entitled to the benefits previously applicable within

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the Zone for the original stated term of the Zone, if the
business enterprise establishes:
(i) that the proposed business enterprise or expansion
has been committed to be located within the Zone;
(ii) that substantial and binding financial
obligations have been made towards the development of such
enterprise; and
(iii) that such commitments have been made in
reasonable reliance on the benefits and programs which
were to have been applicable to the enterprise by reason
of the Zone, including in the case of a reduction in term
of a zone, the original length of the term.
In declaratory judgment actions under this paragraph, the
Department and the designating municipality or county shall be
necessary parties defendant.
(Source: P.A. 90-258, eff. 7-30-97.)
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth, and expansion of
the private sector through large scale investment and
development projects, the Department is authorized to receive
and approve applications for the designation of "High Impact
Businesses" in Illinois subject to the following conditions:
(1) such applications may be submitted at any time

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during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act;
(3) the business intends to do one or more of the
following:
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create
500 full-time equivalent jobs at a designated location
in Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in
Illinois. The business must certify in writing that
the investments would not be placed in service in
qualified property and the job creation or job
retention would not occur without the tax credits and
exemptions set forth in subsection (b) of this
Section. The terms "placed in service" and "qualified
property" have the same meanings as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for

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purposes of this Section, means a newly-constructed
electric generation plant or a newly-constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of
at least 1,000 megawatts for all new units at one site
if it uses natural gas as its primary fuel and
foundation construction of the facility is commenced
on or before December 31, 2004, or shall have an
aggregate rated generating capacity of at least 400
megawatts for all new units at one site if it uses coal
or gases derived from coal as its primary fuel and
shall support the creation of at least 150 new
Illinois coal mining jobs, or (ii) shall be funded
through a federal Department of Energy grant before
December 31, 2010 and shall support the creation of
Illinois coal-mining jobs, or (iii) shall use coal
gasification or integrated gasification-combined cycle
units that generate electricity or chemicals, or both,
and shall support the creation of Illinois coal-mining

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jobs. The business must certify in writing that the
investments necessary to establish a new electric
generating facility would not be placed in service and
the job creation in the case of a coal-fueled plant
would not occur without the tax credits and exemptions
set forth in subsection (b-5) of this Section. The
term "placed in service" has the same meaning as
described in subsection (h) of Section 201 of the
Illinois Income Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol,
and nitrogen fertilizer), that supports the creation
or retention of Illinois coal-mining jobs, and that
qualifies for financial assistance from the Department
before December 31, 2010. A new gasification facility
does not include a pilot project located within
Jefferson County or within a county adjacent to
Jefferson County for synthetic natural gas from coal;
or
(C) the business intends to establish production
operations at a new coal mine, re-establish production

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operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of
150 new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The business must certify in
writing that the investments necessary to establish a
new, expanded, or reopened coal mine would not be
placed in service and the job creation would not occur
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of

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delivery and that transmit a majority of the
electricity generated by a new electric generating
facility designated as a High Impact Business in
accordance with this Section. The business must
certify in writing that the investments necessary to
construct new transmission facilities or upgrade
existing transmission facilities would not be placed
in service without the tax credits and exemptions set
forth in subsection (b-5) of this Section. The term
"placed in service" has the same meaning as described
in subsection (h) of Section 201 of the Illinois
Income Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power
facility" means a newly constructed electric
generation facility, or a newly constructed expansion
of an existing electric generation facility, placed in
service on or after July 1, 2009, that generates
electricity using wind energy devices, and such
facility shall be deemed to include all associated
transmission lines, substations, and other equipment
related to the generation of electricity from wind
energy devices. For purposes of this Section, "wind
energy device" means any device, with a nameplate
capacity of at least 0.5 megawatts, that is used in the

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process of converting kinetic energy from the wind to
generate electricity; or
(F) the business commits to (i) make a minimum
investment of $500,000,000, which will be placed in
service in a qualified property, (ii) create 125
full-time equivalent jobs at a designated location in
Illinois, (iii) establish a fertilizer plant at a
designated location in Illinois that complies with the
set-back standards as described in Table 1: Initial
Isolation and Protective Action Distances in the 2012
Emergency Response Guidebook published by the United
States Department of Transportation, (iv) pay a
prevailing wage for employees at that location who are
engaged in construction activities, and (v) secure an
appropriate level of general liability insurance to
protect against catastrophic failure of the fertilizer
plant or any of its constituent systems; in addition,
the business must agree to enter into a construction
project labor agreement including provisions
establishing wages, benefits, and other compensation
for employees performing work under the project labor
agreement at that location; for the purposes of this
Section, "fertilizer plant" means a newly constructed
or upgraded plant utilizing gas used in the production
of anhydrous ammonia and downstream nitrogen
fertilizer products for resale; for the purposes of

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this Section, "prevailing wage" means the hourly cash
wages plus fringe benefits for training and
apprenticeship programs approved by the U.S.
Department of Labor, Bureau of Apprenticeship and
Training, health and welfare, insurance, vacations and
pensions paid generally, in the locality in which the
work is being performed, to employees engaged in work
of a similar character on public works; this paragraph
(F) applies only to businesses that submit an
application to the Department within 60 days after
July 25, 2013 (the effective date of Public Act
98-109) this amendatory Act of the 98th General
Assembly; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of
the Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 9-222 and Section 9-222.1A of the
Public Utilities Act, subsection (h) of Section 201 of the
Illinois Income Tax Act, and Section 1d of the Retailers'
Occupation Tax Act; provided that these credits and exemptions
described in these Acts shall not be authorized until the
minimum investments set forth in subdivision (a)(3)(A) of this

SB0664 Engrossed - 35 - LRB102 17106 RJF 22535 b
Section have been placed in service in qualified properties
and, in the case of the exemptions described in the Public
Utilities Act and Section 1d of the Retailers' Occupation Tax
Act, the minimum full-time equivalent jobs or full-time
retained jobs set forth in subdivision (a)(3)(A) of this
Section have been created or retained. Businesses designated
as High Impact Businesses under this Section shall also
qualify for the exemption described in Section 5l of the
Retailers' Occupation Tax Act. The credit provided in
subsection (h) of Section 201 of the Illinois Income Tax Act
shall be applicable to investments in qualified property as
set forth in subdivision (a)(3)(A) of this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits
and exemptions described in the following Acts: Section 51 of
the Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be
authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel

SB0664 Engrossed - 36 - LRB102 17106 RJF 22535 b
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall
qualify for the exemptions described in Section 5l of the
Retailers' Occupation Tax Act; any business so designated as a
High Impact Business being, for purposes of this Section, a
"Wind Energy Business".
(b-7) Beginning on January 1, 2021, businesses designated
as High Impact Businesses by the Department shall qualify for
the High Impact Business construction jobs credit under
subsection (h-5) of Section 201 of the Illinois Income Tax Act
if the business meets the criteria set forth in subsection (i)
of this Section. The total aggregate amount of credits awarded
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall not
exceed $20,000,000 in any State fiscal year.
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Illinois businesses which
apply for designation as a High Impact Business must provide

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the Department with the prospective plan for which 1,500
full-time retained jobs would be eliminated in the event that
the business is not designated.
(e) Except for new wind power facilities contemplated
under subdivision (a)(3)(E) of this Section, new proposed
facilities which apply for designation as High Impact Business
must provide the Department with proof of alternative
non-Illinois sites which would receive the proposed investment
and job creation in the event that the business is not
designated as a High Impact Business.
(f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in the event that a business is
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified
property the investments and created or retained the requisite
number of jobs without the benefits of the High Impact
Business designation, the Department shall be required to
immediately revoke the designation and notify the Director of
the Department of Revenue who shall begin proceedings to
recover all wrongfully exempted State taxes with interest. The
business shall also be ineligible for all State funded
Department programs for a period of 10 years.
(g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with

SB0664 Engrossed - 38 - LRB102 17106 RJF 22535 b
the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage
Act, and the Department shall not revoke a High Impact
Business designation as a result of the failure to comply with
any of the terms or conditions of the Illinois Prevailing Wage
Act in relation to a new wind power facility or a Wind Energy
Business.
(h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(i) High Impact Business construction jobs credit.
Beginning on January 1, 2021, a High Impact Business 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 amount of the incremental income tax
attributable to High Impact Business construction jobs credit
employees employed in the course of completing a High Impact
Business construction jobs project. However, the High Impact
Business construction jobs credit may equal 75% of the amount
of the incremental income tax attributable to High Impact

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Business construction jobs credit employees if the High Impact
Business construction jobs credit project is located in an
underserved area.
The Department shall certify to the Department of Revenue:
(1) the identity of taxpayers that are eligible for the High
Impact Business construction jobs credit; and (2) the amount
of High Impact Business construction jobs credits that are
claimed pursuant to subsection (h-5) of Section 201 of the
Illinois Income Tax Act in each taxable year. Any business
entity that receives a High Impact Business construction jobs
credit shall maintain a certified payroll pursuant to
subsection (j) of this Section.
As used in this subsection (i):
"High Impact Business construction jobs credit" means an
amount equal to 50% (or 75% if the High Impact Business
construction project is located in an underserved area) of the
incremental income tax attributable to High Impact Business
construction job employees. The total aggregate amount of
credits awarded under the Blue Collar Jobs Act (Article 20 of
Public Act 101-9 this amendatory Act of the 101st General
Assembly) shall not exceed $20,000,000 in any State fiscal
year
"High Impact Business construction job employee" means a
laborer or worker who is employed by an Illinois contractor or
subcontractor in the actual construction work on the site of a
High Impact Business construction job project.

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"High Impact Business construction jobs project" means
building a structure or building or making improvements of any
kind to real property, undertaken and commissioned by a
business that was designated as a High Impact Business by the
Department. The term "High Impact Business construction jobs
project" does not include the routine operation, routine
repair, or routine maintenance of existing structures,
buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of High Impact
Business construction job employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey federal
decennial census;
(2) 35% 75% or more of the families with children in
the area are living below 130% of the poverty line,
according to the latest American Community Survey children
in the area participate in the federal free lunch program
according to reported statistics from the State Board of
Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as

SB0664 Engrossed - 41 - LRB102 17106 RJF 22535 b
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(j) Each contractor and subcontractor who is engaged in
and executing a High Impact Business Construction jobs
project, as defined under subsection (i) of this Section, for
a business that is entitled to a credit pursuant to subsection
(i) of this Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) this amendatory Act of
the 101st General Assembly on a contract or subcontract
for a High Impact Business Construction Jobs Project,
records for all laborers and other workers employed by the
contractor or subcontractor on the project; the records
shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;

SB0664 Engrossed - 42 - LRB102 17106 RJF 22535 b
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the High Impact
Business construction jobs project; within 5 business days
after receiving the certified payroll, the taxpayer shall
file the certified payroll with the Department of Labor
and the Department of Commerce and Economic Opportunity; a
certified payroll must be filed for only those calendar
months during which construction on a High Impact Business
construction jobs project has occurred; the certified
payroll shall consist of a complete copy of the records
identified in paragraph (1) of this subsection (j), but
may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that

SB0664 Engrossed - 43 - LRB102 17106 RJF 22535 b
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9)
this amendatory Act of the 101st General Assembly for a period
of 5 years from the date of the last payment for work on a
contract or subcontract for the High Impact Business
construction jobs project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and

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made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this subsection (j) and shall share the information with the
Department in order to comply with the awarding of a High
Impact Business construction jobs credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
(k) Upon 7 business days' notice, each contractor and
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in this subsection (j) to the taxpayer in
charge of the High Impact Business construction jobs project,
its officers and agents, the Director of the Department of
Labor and his or her deputies and agents, and to federal,
State, or local law enforcement agencies and prosecutors.
(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)
(20 ILCS 655/8.1)
Sec. 8.1. Accounting.
(a) Any business receiving tax incentives due to its
location within an Enterprise Zone or its designation as a
High Impact Business must annually report to the Department of
Revenue information reasonably required by the Department of
Revenue to enable the Department to verify and calculate the
total Enterprise Zone or High Impact Business tax benefits for

SB0664 Engrossed - 45 - LRB102 17106 RJF 22535 b
property taxes and taxes imposed by the State that are
received by the business, broken down by incentive category
and enterprise zone, if applicable. Reports will be due no
later than May 31 of each year and shall cover the previous
calendar year. The first report will be for the 2012 calendar
year and will be due no later than May 31, 2013. Failure to
report data may result in ineligibility to receive incentives.
To the extent that a business receiving tax incentives has
obtained an Enterprise Zone Building Materials Exemption
Certificate or a High Impact Business Building Materials
Exemption Certificate, that business is required to report
those building materials exemption benefits only under
subsection (a-5) of this Section. No additional reporting for
those building materials exemption benefits is required under
this subsection (a). In addition, if the Department determines
that 80% or more of the businesses receiving tax incentives
because of their location within a particular Enterprise Zone
failed to submit the information required under this
subsection (a) to the Department in any calendar year, then
the Enterprise Zone may be decertified by the Department. If
the Department is able to determine that specific businesses
are failing to submit the information required under this
subsection (a) to the Department in any calendar year to the
Zone Administrator, regardless of the Administrator's efforts
to enforce reporting, the Department may, at its discretion,
suspend the benefits to the specific business rather than an

SB0664 Engrossed - 46 - LRB102 17106 RJF 22535 b
outright decertification of the particular Enterprise Zone.
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.
(a-5) Each contractor or other entity that has been issued
an Enterprise Zone Building Materials Exemption Certificate
under Section 5k of the Retailers' Occupation Tax Act or a High
Impact Business Building Materials Exemption Certificate under
Section 5l of the Retailers' Occupation Tax Act shall annually
report to the Department of Revenue the total value of the
Enterprise Zone or High Impact Business building materials
exemption from State taxes. Reports shall contain information
reasonably required by the Department of Revenue to enable it
to verify and calculate the total tax benefits for taxes
imposed by the State, and shall be broken down by Enterprise
Zone. Reports are due no later than May 31 of each year and
shall cover the previous calendar year. The first report will
be for the 2013 calendar year and will be due no later than May
31, 2014. Failure to report data may result in revocation of
the Enterprise Zone Building Materials Exemption Certificate

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or High Impact Business Building Materials Exemption
Certificate issued to the contractor or other entity.
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.
(b) Each person required to file a return under the Gas
Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise
Tax Act, or the Telecommunications Excise Tax Act shall file,
on or before May 31 of each year, a report with the Department
of Revenue, in the manner and form required by the Department
of Revenue, containing information reasonably required by the
Department of Revenue to enable the Department of Revenue to
calculate the amount of the deduction for taxes imposed by the
State that is taken under each Act, respectively, due to the
location of a business in an Enterprise Zone or its
designation as a High Impact Business. The report shall be
itemized by business and the business location address.
(c) Employers shall report their job creation, retention,
and capital investment numbers within the zone annually to the
Department of Revenue no later than May 31 of each calendar
year. High Impact Businesses shall report their job creation,
retention, and capital investment numbers to the Department of

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Revenue no later than May 31 of each year. With respect to job
creation or retention, employers and High Impact Businesses
shall use best efforts to submit diversity information related
to the gender and ethnicity of such employees.
(d) The Department of Revenue will aggregate and collect
the tax, job, and capital investment data by Enterprise Zone
and High Impact Business and report this information,
formatted to exclude company-specific proprietary information,
to the Department and the Board by August 1, 2013, and by
August 1 of every calendar year thereafter. The Department
will include this information in their required reports under
Section 6 of this Act. The Board shall consider this
information during the reviews required under subsection (d-5)
of Section 5.4 of this Act and subsection (c) of Section 5.3 of
this Act.
(e) The Department of Revenue, in its discretion, may
require that the reports filed under this Section be submitted
electronically.
(f) 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. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
(20 ILCS 655/12-9) (from Ch. 67 1/2, par. 626)
Sec. 12-9. Report. On January 1 of each year, the
Department shall report on its operation of the Fund for the

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preceding fiscal year to the Governor and the General
Assembly. For any fiscal year in which no operations are
conducted by the Department because no funds were appropriated
to the Fund, the report outlined by this Section is not
required.
(Source: P.A. 84-165.)
(20 ILCS 655/13)
Sec. 13. Enterprise Zone construction jobs credit.
(a) Beginning on January 1, 2021, a business entity in a
certified Enterprise Zone that makes a capital investment of
at least $10,000,000 in an Enterprise Zone construction jobs
project may receive an Enterprise Zone construction jobs
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 amount of the incremental income tax
attributable to Enterprise Zone construction jobs credit
employees employed in the course of completing an Enterprise
Zone construction jobs project. However, the Enterprise Zone
construction jobs credit may equal 75% of the amount of the
incremental income tax attributable to Enterprise Zone
construction jobs credit employees if the project is located
in an underserved area.
(b) A business entity seeking a credit under this Section
must submit an application to the Department and must receive
approval from the designating municipality or county and the

SB0664 Engrossed - 50 - LRB102 17106 RJF 22535 b
Department for the Enterprise Zone construction jobs credit
project. The application must describe the nature and benefit
of the project to the certified Enterprise Zone and its
potential contributors. The total aggregate amount of credits
awarded under the Blue Collar Jobs Act (Article 20 of Public
Act 101-9 this amendatory Act of the 101st General Assembly)
shall not exceed $20,000,000 in any State fiscal year.
Within 45 days after receipt of an application, the
Department shall give notice to the applicant as to whether
the application has been approved or disapproved. If the
Department disapproves the application, it shall specify the
reasons for this decision and allow 60 days for the applicant
to amend and resubmit its application. The Department shall
provide assistance upon request to applicants. Resubmitted
applications shall receive the Department's approval or
disapproval within 30 days after the application is
resubmitted. Those resubmitted applications satisfying initial
Department objectives shall be approved unless reasonable
circumstances warrant disapproval.
On an annual basis, the designated zone organization shall
furnish a statement to the Department on the programmatic and
financial status of any approved project and an audited
financial statement of the project.
The Department shall certify to the Department of Revenue
the identity of taxpayers who are eligible for the credits and
the amount of credits that are claimed pursuant to

SB0664 Engrossed - 51 - LRB102 17106 RJF 22535 b
subparagraph (8) of subsection (f) of Section 201 the Illinois
Income Tax Act.
The Enterprise Zone construction jobs credit project must
be undertaken by the business entity in the course of
completing a project that complies with the criteria contained
in Section 4 of this Act and is undertaken in a certified
Enterprise Zone. The Department shall adopt any necessary
rules for the implementation of this subsection (b).
(c) Any business entity that receives an Enterprise Zone
construction jobs credit shall maintain a certified payroll
pursuant to subsection (d) of this Section.
(d) Each contractor and subcontractor who is engaged in
and is executing an Enterprise Zone construction jobs credit
project for a business that is entitled to a credit pursuant to
this Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) this amendatory Act of
the 101st General Assembly on a contract or subcontract
for an Enterprise Zone construction jobs credit project,
records for all laborers and other workers employed by
them on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;

SB0664 Engrossed - 52 - LRB102 17106 RJF 22535 b
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate; and
(J) the worker's hourly overtime wage rate;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the project; within 5
business days after receiving the certified payroll, the
taxpayer shall file the certified payroll with the
Department of Labor and the Department of Commerce and
Economic Opportunity; a certified payroll must be filed
for only those calendar months during which construction
on an Enterprise Zone construction jobs project has
occurred; the certified payroll shall consist of a
complete copy of the records identified in paragraph (1)
of this subsection (d), but may exclude the starting and
ending times of work each day; the certified payroll shall
be accompanied by a statement signed by the contractor or
subcontractor or an officer, employee, or agent of the
contractor or subcontractor which avers that:
(A) he or she has examined the certified payroll

SB0664 Engrossed - 53 - LRB102 17106 RJF 22535 b
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a
Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9)
this amendatory Act of the 101st General Assembly for a period
of 5 years from the date of the last payment for work on a
contract or subcontract for the project.
The records submitted in accordance with this subsection

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shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall accept any reasonable
submissions by the contractor that meet the requirements of
this subsection and shall share the information with the
Department in order to comply with the awarding of Enterprise
Zone construction jobs credits. A contractor, subcontractor,
or public body may retain records required under this Section
in paper or electronic format.
Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of this subsection to the
taxpayer in charge of the project, its officers and agents,
the Director of Labor and his or her deputies and agents, and
to federal, State, or local law enforcement agencies and
prosecutors.
(e) As used in this Section:
"Enterprise Zone construction jobs credit" means an amount
equal to 50% (or 75% if the project is located in an
underserved area) of the incremental income tax attributable
to Enterprise Zone construction jobs credit employees.
"Enterprise Zone construction jobs credit employee" means
a laborer or worker who is employed by an Illinois contractor
or subcontractor in the actual construction work on the site

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of an Enterprise Zone construction jobs credit project.
"Enterprise Zone construction jobs credit project" means
building a structure or building or making improvements of any
kind to real property commissioned and paid for by a business
that has applied and been approved for an Enterprise Zone
construction jobs credit pursuant to this Section. "Enterprise
Zone construction jobs credit project" does not include the
routine operation, routine repair, or routine maintenance of
existing structures, buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of Enterprise
Zone construction jobs credit employees.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey federal
decennial census;
(2) 35% 75% or more of the families with children in
the area are living below 130% of the poverty line,
according to the latest American Community Survey children
in the area participate in the federal free lunch program
according to reported statistics from the State Board of
Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or

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(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(Source: P.A. 101-9, eff. 6-5-19; revised 7-12-19.)