Bill Text: IL SB0850 | 2023-2024 | 103rd General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the engrossed bill with changes. Provides that the Department of Commerce and Economic Opportunity may designate an area as a food desert even if the area does not meet the qualifications set forth in the engrossed bill as long as the designation is made in accordance with criteria established by the Department of Commerce and Economic Opportunity by rule using data that includes, but is not limited to, poverty metrics and access to existing grocery stores. Provides that the provisions of the engrossed bill apply to independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores (in the engrossed bill, only independently owned for-profit grocery stores). Amends the Public Utilities Act to make conforming changes.
Spectrum: Strong Partisan Bill (Democrat 67-6)
Status: (Passed) 2023-08-18 - Public Act . . . . . . . . . 103-0561 [SB0850 Detail]
Download: Illinois-2023-SB0850-Engrossed.html
Bill Title: Reinserts the provisions of the engrossed bill with changes. Provides that the Department of Commerce and Economic Opportunity may designate an area as a food desert even if the area does not meet the qualifications set forth in the engrossed bill as long as the designation is made in accordance with criteria established by the Department of Commerce and Economic Opportunity by rule using data that includes, but is not limited to, poverty metrics and access to existing grocery stores. Provides that the provisions of the engrossed bill apply to independently owned for-profit grocery stores, cooperative grocery stores, or not-for-profit grocery stores (in the engrossed bill, only independently owned for-profit grocery stores). Amends the Public Utilities Act to make conforming changes.
Spectrum: Strong Partisan Bill (Democrat 67-6)
Status: (Passed) 2023-08-18 - Public Act . . . . . . . . . 103-0561 [SB0850 Detail]
Download: Illinois-2023-SB0850-Engrossed.html
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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Grocery Initiative Act.
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6 | Section 5. Definitions. In this Act: | ||||||
7 | "Department" means the Department of Commerce and Economic | ||||||
8 | Opportunity. | ||||||
9 | "Food desert" means a census tract that:
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10 | (1) meets one of the following poverty standards:
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11 | (A) the census tract has a poverty rate of at least | ||||||
12 | 20%; or | ||||||
13 | (B) the census tract is not located within a | ||||||
14 | metropolitan statistical area and has a median family | ||||||
15 | income that is less than or equal to 80% of the | ||||||
16 | statewide median household income; or | ||||||
17 | (C) the census tract is located within a | ||||||
18 | metropolitan statistical area and has a median family | ||||||
19 | income that is less than or equal to 80% of the greater | ||||||
20 | of (i) the statewide median household income or (ii) | ||||||
21 | the metropolitan area median family income; and
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22 | (2) meets one of the following population density and | ||||||
23 | food accessibility standards:
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1 | (A) the census tract is a rural tract, and at least | ||||||
2 | 33% of the population of the tract or at least 500 | ||||||
3 | residents in the tract reside more than 10 miles from | ||||||
4 | the nearest grocery store; or
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5 | (B) the census tract is an urban tract, and at | ||||||
6 | least 33% of the population of the tract or at least | ||||||
7 | 500 residents in the tract reside more than one-half | ||||||
8 | mile from the nearest grocery store. | ||||||
9 | "Grocery store" means an existing or planned retail | ||||||
10 | establishment that: (1) has or will have a primary business of | ||||||
11 | selling a variety of grocery products, including fresh | ||||||
12 | produce; (2) derives or will derive no more than 30% of its | ||||||
13 | revenue from sales of tobacco and alcohol in any given year; | ||||||
14 | (3) is or will be classified as a supermarket or other grocery | ||||||
15 | retailer in the 2022 North American Industry Classification | ||||||
16 | System under code 445110; (4) accepts or will accept | ||||||
17 | Supplemental Nutrition Assistance Program benefits and Special | ||||||
18 | Supplemental Nutrition Program for Women, Infants, and | ||||||
19 | Children benefits; and (5) provides or will provide for the | ||||||
20 | retail sale of a substantial variety of perishable foods, | ||||||
21 | including fresh or frozen dairy products, fresh produce, and | ||||||
22 | fresh meats, poultry, and fish.
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23 | "Local governmental unit" means any county, municipality, | ||||||
24 | township, special district, or unit that is designated as a | ||||||
25 | unit of local government by law and exercises limited | ||||||
26 | governmental powers or powers in respect to limited |
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1 | governmental subjects. "Local governmental unit" also includes | ||||||
2 | any school district or community college district. | ||||||
3 | "Rural tract" means a census tract that is not an urban | ||||||
4 | tract. | ||||||
5 | "Urban tract" means a census tract having its geographic | ||||||
6 | centroid in an urban area, as defined by the Bureau of the | ||||||
7 | Census for the most recent year in which all relevant data to | ||||||
8 | identify food deserts is available.
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9 | Section 10. Grocery Initiative Study. The Department | ||||||
10 | shall, subject to appropriation, study food insecurity in | ||||||
11 | urban and rural food deserts. The study may include an | ||||||
12 | exploration of the reasons for current market failures, | ||||||
13 | potential policy solutions, geographic trends, and the need | ||||||
14 | for independent grocers, and it shall identify communities at | ||||||
15 | risk of becoming food deserts. The study may also include a | ||||||
16 | disparity study to assess the need for aspirational goals for | ||||||
17 | ownership among minority, women, and persons with a disability | ||||||
18 | as defined in the Business Enterprise for Minorities, Women, | ||||||
19 | and Persons with Disabilities Act. The Department may enter | ||||||
20 | into contracts, grants, or other agreements to complete this | ||||||
21 | study. This report shall be submitted to the General Assembly | ||||||
22 | by December 31, 2024. This Section is repealed on January 1, | ||||||
23 | 2026.
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24 | Section 15. Grocery Initiative Grants and Financial |
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1 | Support. | ||||||
2 | (a) The Department shall, subject to appropriation, | ||||||
3 | establish the Grocery Initiative to expand access to healthy | ||||||
4 | foods in food deserts in Illinois and areas at risk of becoming | ||||||
5 | food deserts in Illinois by providing grants and other forms | ||||||
6 | of financial assistance to independently owned for-profit | ||||||
7 | grocery stores, as well as grocery stores owned and operated | ||||||
8 | by local governmental units. The Department may enter into | ||||||
9 | contracts, grants, or other agreements to administer these | ||||||
10 | grants and other forms of financial assistance. The Department | ||||||
11 | may, by rule, place limits on the size of the grocery stores | ||||||
12 | that are eligible for grants and other financial assistance | ||||||
13 | under this Act, including, but not limited to, limits on the | ||||||
14 | annual revenue or projected revenue of the applicant, number | ||||||
15 | of full-time employees, or square footage of the facilities. | ||||||
16 | The Department may prioritize grant awards and loan funding to | ||||||
17 | applicants based on poverty rates, income, geographic | ||||||
18 | diversity, local ownership, access to grocery stores in the | ||||||
19 | area surrounding proposed project locations, and other factors | ||||||
20 | as determined by the Department. The Department may award | ||||||
21 | grants or provide loans for any one or more of the following: | ||||||
22 | (1) market and site feasibility studies, promotional | ||||||
23 | materials, and marketing; | ||||||
24 | (2) salaries and benefits for workers; | ||||||
25 | (3) rent or a down payment to acquire a facility; | ||||||
26 | (4) purchase of ownership of a grocery store as part |
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1 | of establishing a new independently owned grocery store; | ||||||
2 | (5) capital improvements, planning, renovations, land | ||||||
3 | acquisition, demolition, durable and non-durable equipment | ||||||
4 | purchases; or | ||||||
5 | (6) other costs as determined eligible by the | ||||||
6 | Department. | ||||||
7 | (b) The Department may, subject to appropriation, provide | ||||||
8 | grants for equipment upgrades for existing | ||||||
9 | independently-owned, cooperative, and for-profit grocery | ||||||
10 | stores. The Department shall use no more than 20% of total | ||||||
11 | program funding for this purpose. Equipment upgrades shall be | ||||||
12 | focused on providing access to equipment that is energy | ||||||
13 | efficient.
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14 | Section 20. Technical Assistance. | ||||||
15 | (a) The Department shall, subject to appropriation, | ||||||
16 | provide technical assistance to grantees awarded grants under | ||||||
17 | the Act, and other small, independently owned grocery stores | ||||||
18 | to ensure their long-term viability and business success. | ||||||
19 | Technical assistance, online resources, and materials provided | ||||||
20 | shall include, but shall not be limited to, business planning, | ||||||
21 | marketing, financing, supply chain management, and workforce | ||||||
22 | development assistance. | ||||||
23 | (b) The Department may enter into grants, contracts, or | ||||||
24 | other agreements to provide assistance. At least one technical | ||||||
25 | assistance provider shall be located in a county with a |
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1 | population of at least 3,000,000 inhabitants, and at least one | ||||||
2 | provider shall be located in a county with a population of less | ||||||
3 | than 400,000 inhabitants.
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4 | Section 25. Rulemaking. The Department shall adopt rules | ||||||
5 | to implement and administer this Act.
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6 | Section 30. The Illinois Enterprise Zone Act is amended by | ||||||
7 | changing Section 5.5 as follows:
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8 | (20 ILCS 655/5.5)
(from Ch. 67 1/2, par. 609.1)
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9 | Sec. 5.5. High Impact Business.
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10 | (a) In order to respond to unique opportunities to assist | ||||||
11 | in the
encouragement, development, growth, and expansion of | ||||||
12 | the private sector through
large scale investment and | ||||||
13 | development projects, the Department is authorized
to receive | ||||||
14 | and approve applications for the designation of "High Impact
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15 | Businesses" in Illinois, for an initial term of 20 years with | ||||||
16 | an option for renewal for a term not to exceed 20 years, | ||||||
17 | subject to the following conditions:
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18 | (1) such applications may be submitted at any time | ||||||
19 | during the year;
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20 | (2) such business is not located, at the time of | ||||||
21 | designation, in
an enterprise zone designated pursuant to | ||||||
22 | this Act;
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23 | (3) the business intends to do one or more of the |
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1 | following:
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2 | (A) the business intends to make a minimum | ||||||
3 | investment of
$12,000,000 which will be placed in | ||||||
4 | service in qualified property and
intends to create | ||||||
5 | 500 full-time equivalent jobs at a designated location
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6 | in Illinois or intends to make a minimum investment of | ||||||
7 | $30,000,000 which
will be placed in service in | ||||||
8 | qualified property and intends to retain 1,500
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9 | full-time retained jobs at a designated location in | ||||||
10 | Illinois.
The terms "placed in service" and
"qualified | ||||||
11 | property" have the same meanings as described in | ||||||
12 | subsection (h)
of Section 201 of the Illinois Income | ||||||
13 | Tax Act; or
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14 | (B) the business intends to establish a new | ||||||
15 | electric generating
facility at a designated location | ||||||
16 | in Illinois. "New electric generating
facility", for | ||||||
17 | purposes of this Section, means a newly constructed
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18 | electric
generation plant
or a newly constructed | ||||||
19 | generation capacity expansion at an existing electric
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20 | generation
plant, including the transmission lines and | ||||||
21 | associated
equipment that transfers electricity from | ||||||
22 | points of supply to points of
delivery, and for which | ||||||
23 | such new foundation construction commenced not sooner
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24 | than July 1,
2001. Such facility shall be designed to | ||||||
25 | provide baseload electric
generation and shall operate | ||||||
26 | on a continuous basis throughout the year;
and (i) |
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1 | shall have an aggregate rated generating capacity of | ||||||
2 | at least 1,000
megawatts for all new units at one site | ||||||
3 | if it uses natural gas as its primary
fuel and | ||||||
4 | foundation construction of the facility is commenced | ||||||
5 | on
or before December 31, 2004, or shall have an | ||||||
6 | aggregate rated generating
capacity of at least 400 | ||||||
7 | megawatts for all new units at one site if it uses
coal | ||||||
8 | or gases derived from coal
as its primary fuel and
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9 | shall support the creation of at least 150 new | ||||||
10 | Illinois coal mining jobs, or
(ii) shall be funded | ||||||
11 | through a federal Department of Energy grant before | ||||||
12 | December 31, 2010 and shall support the creation of | ||||||
13 | Illinois
coal-mining
jobs, or (iii) shall use coal | ||||||
14 | gasification or integrated gasification-combined cycle | ||||||
15 | units
that generate
electricity or chemicals, or both, | ||||||
16 | and shall support the creation of Illinois
coal-mining
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17 | jobs.
The term "placed in service" has
the same | ||||||
18 | meaning as described in subsection
(h) of Section 201 | ||||||
19 | of the Illinois Income Tax Act; or
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20 | (B-5) the business intends to establish a new | ||||||
21 | gasification
facility at a designated location in | ||||||
22 | Illinois. As used in this Section, "new gasification | ||||||
23 | facility" means a newly constructed coal gasification | ||||||
24 | facility that generates chemical feedstocks or | ||||||
25 | transportation fuels derived from coal (which may | ||||||
26 | include, but are not limited to, methane, methanol, |
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1 | and nitrogen fertilizer), that supports the creation | ||||||
2 | or retention of Illinois coal-mining jobs, and that | ||||||
3 | qualifies for financial assistance from the Department | ||||||
4 | before December 31, 2010. A new gasification facility | ||||||
5 | does not include a pilot project located within | ||||||
6 | Jefferson County or within a county adjacent to | ||||||
7 | Jefferson County for synthetic natural gas from coal; | ||||||
8 | or | ||||||
9 | (C) the business intends to establish
production | ||||||
10 | operations at a new coal mine, re-establish production | ||||||
11 | operations at
a closed coal mine, or expand production | ||||||
12 | at an existing coal mine
at a designated location in | ||||||
13 | Illinois not sooner than July 1, 2001;
provided that | ||||||
14 | the
production operations result in the creation of | ||||||
15 | 150 new Illinois coal mining
jobs as described in | ||||||
16 | subdivision (a)(3)(B) of this Section, and further
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17 | provided that the coal extracted from such mine is | ||||||
18 | utilized as the predominant
source for a new electric | ||||||
19 | generating facility.
The term "placed in service" has
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20 | the same meaning as described in subsection (h) of | ||||||
21 | Section 201 of the
Illinois Income Tax Act; or
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22 | (D) the business intends to construct new | ||||||
23 | transmission facilities or
upgrade existing | ||||||
24 | transmission facilities at designated locations in | ||||||
25 | Illinois,
for which construction commenced not sooner | ||||||
26 | than July 1, 2001. For the
purposes of this Section, |
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1 | "transmission facilities" means transmission lines
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2 | with a voltage rating of 115 kilovolts or above, | ||||||
3 | including associated
equipment, that transfer | ||||||
4 | electricity from points of supply to points of
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5 | delivery and that transmit a majority of the | ||||||
6 | electricity generated by a new
electric generating | ||||||
7 | facility designated as a High Impact Business in | ||||||
8 | accordance
with this Section. The term "placed in | ||||||
9 | service" has the
same meaning as described in | ||||||
10 | subsection (h) of Section 201 of the Illinois
Income | ||||||
11 | Tax Act; or
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12 | (E) the business intends to establish a new wind | ||||||
13 | power facility at a designated location in Illinois. | ||||||
14 | For purposes of this Section, "new wind power | ||||||
15 | facility" means a newly constructed electric | ||||||
16 | generation facility, a newly constructed expansion of | ||||||
17 | an existing electric generation facility, or the | ||||||
18 | replacement of an existing electric generation | ||||||
19 | facility, including the demolition and removal of an | ||||||
20 | electric generation facility irrespective of whether | ||||||
21 | it will be replaced, placed in service or replaced on | ||||||
22 | or after July 1, 2009, that generates electricity | ||||||
23 | using wind energy devices, and such facility shall be | ||||||
24 | deemed to include any permanent structures associated | ||||||
25 | with the electric generation facility and all | ||||||
26 | associated transmission lines, substations, and other |
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1 | equipment related to the generation of electricity | ||||||
2 | from wind energy devices. For purposes of this | ||||||
3 | Section, "wind energy device" means any device, with a | ||||||
4 | nameplate capacity of at least 0.5 megawatts, that is | ||||||
5 | used in the process of converting kinetic energy from | ||||||
6 | the wind to generate electricity; or | ||||||
7 | (E-5) the business intends to establish a new | ||||||
8 | utility-scale solar facility at a designated location | ||||||
9 | in Illinois. For purposes of this Section, "new | ||||||
10 | utility-scale solar power facility" means a newly | ||||||
11 | constructed electric generation facility, or a newly | ||||||
12 | constructed expansion of an existing electric | ||||||
13 | generation facility, placed in service on or after | ||||||
14 | July 1, 2021, that (i) generates electricity using | ||||||
15 | photovoltaic cells and (ii) has a nameplate capacity | ||||||
16 | that is greater than 5,000 kilowatts, and such | ||||||
17 | facility shall be deemed to include all associated | ||||||
18 | transmission lines, substations, energy storage | ||||||
19 | facilities, and other equipment related to the | ||||||
20 | generation and storage of electricity from | ||||||
21 | photovoltaic cells; or | ||||||
22 | (F) the business commits to (i) make a minimum | ||||||
23 | investment of $500,000,000, which will be placed in | ||||||
24 | service in a qualified property, (ii) create 125 | ||||||
25 | full-time equivalent jobs at a designated location in | ||||||
26 | Illinois, (iii) establish a fertilizer plant at a |
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1 | designated location in Illinois that complies with the | ||||||
2 | set-back standards as described in Table 1: Initial | ||||||
3 | Isolation and Protective Action Distances in the 2012 | ||||||
4 | Emergency Response Guidebook published by the United | ||||||
5 | States Department of Transportation, (iv) pay a | ||||||
6 | prevailing wage for employees at that location who are | ||||||
7 | engaged in construction activities, and (v) secure an | ||||||
8 | appropriate level of general liability insurance to | ||||||
9 | protect against catastrophic failure of the fertilizer | ||||||
10 | plant or any of its constituent systems; in addition, | ||||||
11 | the business must agree to enter into a construction | ||||||
12 | project labor agreement including provisions | ||||||
13 | establishing wages, benefits, and other compensation | ||||||
14 | for employees performing work under the project labor | ||||||
15 | agreement at that location; for the purposes of this | ||||||
16 | Section, "fertilizer plant" means a newly constructed | ||||||
17 | or upgraded plant utilizing gas used in the production | ||||||
18 | of anhydrous ammonia and downstream nitrogen | ||||||
19 | fertilizer products for resale; for the purposes of | ||||||
20 | this Section, "prevailing wage" means the hourly cash | ||||||
21 | wages plus fringe benefits for training and
| ||||||
22 | apprenticeship programs approved by the U.S. | ||||||
23 | Department of Labor, Bureau of
Apprenticeship and | ||||||
24 | Training, health and welfare, insurance, vacations and
| ||||||
25 | pensions paid generally, in the
locality in which the | ||||||
26 | work is being performed, to employees engaged in
work |
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1 | of a similar character on public works; this paragraph | ||||||
2 | (F) applies only to businesses that submit an | ||||||
3 | application to the Department within 60 days after | ||||||
4 | July 25, 2013 (the effective date of Public Act | ||||||
5 | 98-109); and | ||||||
6 | (G) the business is a grocery store, as that term | ||||||
7 | is defined in Section 5 of the Grocery Initiative Act, | ||||||
8 | and receives financial support under that Act within | ||||||
9 | the 10 years before submitting its application under | ||||||
10 | this Act; and | ||||||
11 | (4) no later than 90 days after an application is | ||||||
12 | submitted, the
Department shall notify the applicant of | ||||||
13 | the Department's determination of
the qualification of the | ||||||
14 | proposed High Impact Business under this Section.
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15 | (b) Businesses designated as High Impact Businesses | ||||||
16 | pursuant to
subdivision (a)(3)(A) of this Section shall | ||||||
17 | qualify for the credits and
exemptions described in the
| ||||||
18 | following Acts: Section 9-222 and Section 9-222.1A of the | ||||||
19 | Public Utilities
Act,
subsection (h)
of Section 201 of the | ||||||
20 | Illinois Income Tax Act,
and Section 1d of
the
Retailers' | ||||||
21 | Occupation Tax Act; provided that these credits and
exemptions
| ||||||
22 | described in these Acts shall not be authorized until the | ||||||
23 | minimum
investments set forth in subdivision (a)(3)(A) of this
| ||||||
24 | Section have been placed in
service in qualified properties | ||||||
25 | and, in the case of the exemptions
described in the Public | ||||||
26 | Utilities Act and Section 1d of the Retailers'
Occupation Tax |
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1 | Act, the minimum full-time equivalent jobs or full-time | ||||||
2 | retained jobs set
forth in subdivision (a)(3)(A) of this | ||||||
3 | Section have been
created or retained.
Businesses designated | ||||||
4 | as High Impact Businesses under
this Section shall also
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5 | qualify for the exemption described in Section 5l of the | ||||||
6 | Retailers' Occupation
Tax Act. The credit provided in | ||||||
7 | subsection (h) of Section 201 of the Illinois
Income Tax Act | ||||||
8 | shall be applicable to investments in qualified property as | ||||||
9 | set
forth in subdivision (a)(3)(A) of this Section.
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10 | (b-5) Businesses designated as High Impact Businesses | ||||||
11 | pursuant to
subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C), | ||||||
12 | and (a)(3)(D) of this Section shall qualify
for the credits | ||||||
13 | and exemptions described in the following Acts: Section 51 of
| ||||||
14 | the Retailers' Occupation Tax Act, Section 9-222 and Section | ||||||
15 | 9-222.1A of the
Public Utilities Act, and subsection (h) of | ||||||
16 | Section 201 of the Illinois Income
Tax Act; however, the | ||||||
17 | credits and exemptions authorized under Section 9-222 and
| ||||||
18 | Section 9-222.1A of the Public Utilities Act, and subsection | ||||||
19 | (h) of Section 201
of the Illinois Income Tax Act shall not be | ||||||
20 | authorized until the new electric
generating facility, the new | ||||||
21 | gasification facility, the new transmission facility, or the | ||||||
22 | new, expanded, or
reopened coal mine is operational,
except | ||||||
23 | that a new electric generating facility whose primary fuel | ||||||
24 | source is
natural gas is eligible only for the exemption under | ||||||
25 | Section 5l of the
Retailers' Occupation Tax Act.
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26 | (b-6) Businesses designated as High Impact Businesses |
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1 | pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this | ||||||
2 | Section shall qualify for the exemptions described in Section | ||||||
3 | 5l of the Retailers' Occupation Tax Act; any business so | ||||||
4 | designated as a High Impact Business being, for purposes of | ||||||
5 | this Section, a "Wind Energy Business". | ||||||
6 | (b-7) Beginning on January 1, 2021, businesses designated | ||||||
7 | as High Impact Businesses by the Department shall qualify for | ||||||
8 | the High Impact Business construction jobs credit under | ||||||
9 | subsection (h-5) of Section 201 of the Illinois Income Tax Act | ||||||
10 | if the business meets the criteria set forth in subsection (i) | ||||||
11 | of this Section. The total aggregate amount of credits awarded | ||||||
12 | under the Blue Collar Jobs Act (Article 20 of Public Act 101-9) | ||||||
13 | shall not exceed $20,000,000 in any State fiscal year. | ||||||
14 | (c) High Impact Businesses located in federally designated | ||||||
15 | foreign trade
zones or sub-zones are also eligible for | ||||||
16 | additional credits, exemptions and
deductions as described in | ||||||
17 | the following Acts: Section 9-221 and Section
9-222.1 of the | ||||||
18 | Public
Utilities Act; and subsection (g) of Section 201, and | ||||||
19 | Section 203
of the Illinois Income Tax Act.
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20 | (d) Except for businesses contemplated under subdivision | ||||||
21 | (a)(3)(E) or (a)(3)(E-5) of this Section, existing Illinois | ||||||
22 | businesses which apply for designation as a
High Impact | ||||||
23 | Business must provide the Department with the prospective plan
| ||||||
24 | for which 1,500 full-time retained jobs would be eliminated in | ||||||
25 | the event that the
business is not designated.
| ||||||
26 | (e) Except for new wind power facilities contemplated |
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1 | under subdivision (a)(3)(E) of this Section, new proposed | ||||||
2 | facilities which apply for designation as High Impact
Business | ||||||
3 | must provide the Department with proof of alternative | ||||||
4 | non-Illinois
sites which would receive the proposed investment | ||||||
5 | and job creation in the
event that the business is not | ||||||
6 | designated as a High Impact Business.
| ||||||
7 | (f) Except for businesses contemplated under subdivision | ||||||
8 | (a)(3)(E) of this Section, in the event that a business is | ||||||
9 | designated a High Impact Business
and it is later determined | ||||||
10 | after reasonable notice and an opportunity for a
hearing as | ||||||
11 | provided under the Illinois Administrative Procedure Act, that
| ||||||
12 | the business would have placed in service in qualified | ||||||
13 | property the
investments and created or retained the requisite | ||||||
14 | number of jobs without
the benefits of the High Impact | ||||||
15 | Business designation, the Department shall
be required to | ||||||
16 | immediately revoke the designation and notify the Director
of | ||||||
17 | the Department of Revenue who shall begin proceedings to | ||||||
18 | recover all
wrongfully exempted State taxes with interest. The | ||||||
19 | business shall also be
ineligible for all State funded | ||||||
20 | Department programs for a period of 10 years.
| ||||||
21 | (g) The Department shall revoke a High Impact Business | ||||||
22 | designation if
the participating business fails to comply with | ||||||
23 | the terms and conditions of
the designation.
| ||||||
24 | (h) Prior to designating a business, the Department shall | ||||||
25 | provide the
members of the General Assembly and Commission on | ||||||
26 | Government Forecasting and Accountability
with a report |
| |||||||
| |||||||
1 | setting forth the terms and conditions of the designation and
| ||||||
2 | guarantees that have been received by the Department in | ||||||
3 | relation to the
proposed business being designated.
| ||||||
4 | (i) High Impact Business construction jobs credit. | ||||||
5 | Beginning on January 1, 2021, a High Impact Business may | ||||||
6 | receive a tax credit against the tax imposed under subsections | ||||||
7 | (a) and (b) of Section 201 of the Illinois Income Tax Act in an | ||||||
8 | amount equal to 50% of the amount of the incremental income tax | ||||||
9 | attributable to High Impact Business construction jobs credit | ||||||
10 | employees employed in the course of completing a High Impact | ||||||
11 | Business construction jobs project. However, the High Impact | ||||||
12 | Business construction jobs credit may equal 75% of the amount | ||||||
13 | of the incremental income tax attributable to High Impact | ||||||
14 | Business construction jobs credit employees if the High Impact | ||||||
15 | Business construction jobs credit project is located in an | ||||||
16 | underserved area. | ||||||
17 | The Department shall certify to the Department of Revenue: | ||||||
18 | (1) the identity of taxpayers that are eligible for the High | ||||||
19 | Impact Business construction jobs credit; and (2) the amount | ||||||
20 | of High Impact Business construction jobs credits that are | ||||||
21 | claimed pursuant to subsection (h-5) of Section 201 of the | ||||||
22 | Illinois Income Tax Act in each taxable year. Any business | ||||||
23 | entity that receives a High Impact Business construction jobs | ||||||
24 | credit shall maintain a certified payroll pursuant to | ||||||
25 | subsection (j) of this Section. | ||||||
26 | As used in this subsection (i): |
| |||||||
| |||||||
1 | "High Impact Business construction jobs credit" means an | ||||||
2 | amount equal to 50% (or 75% if the High Impact Business | ||||||
3 | construction project is located in an underserved area) of the | ||||||
4 | incremental income tax attributable to High Impact Business | ||||||
5 | construction job employees. The total aggregate amount of | ||||||
6 | credits awarded under the Blue Collar Jobs Act (Article 20 of | ||||||
7 | Public Act 101-9) shall not exceed $20,000,000 in any State | ||||||
8 | fiscal year | ||||||
9 | "High Impact Business construction job employee" means a | ||||||
10 | laborer or worker who is employed by an Illinois contractor or | ||||||
11 | subcontractor in the actual construction work on the site of a | ||||||
12 | High Impact Business construction job project. | ||||||
13 | "High Impact Business construction jobs project" means | ||||||
14 | building a structure or building or making improvements of any | ||||||
15 | kind to real property, undertaken and commissioned by a | ||||||
16 | business that was designated as a High Impact Business by the | ||||||
17 | Department. The term "High Impact Business construction jobs | ||||||
18 | project" does not include the routine operation, routine | ||||||
19 | repair, or routine maintenance of existing structures, | ||||||
20 | buildings, or real property. | ||||||
21 | "Incremental income tax" means the total amount withheld | ||||||
22 | during the taxable year from the compensation of High Impact | ||||||
23 | Business construction job employees. | ||||||
24 | "Underserved area" means a geographic area that meets one | ||||||
25 | or more of the following conditions: | ||||||
26 | (1) the area has a poverty rate of at least 20% |
| |||||||
| |||||||
1 | according to the latest American Community Survey; | ||||||
2 | (2) 35% or more of the families with children in the | ||||||
3 | area are living below 130% of the poverty line, according | ||||||
4 | to the latest American Community Survey; | ||||||
5 | (3) at least 20% of the households in the area receive | ||||||
6 | assistance under the Supplemental Nutrition Assistance | ||||||
7 | Program (SNAP); or | ||||||
8 | (4) the area has an average unemployment rate, as | ||||||
9 | determined by the Illinois Department of Employment | ||||||
10 | Security, that is more than 120% of the national | ||||||
11 | unemployment average, as determined by the U.S. Department | ||||||
12 | of Labor, for a period of at least 2 consecutive calendar | ||||||
13 | years preceding the date of the application. | ||||||
14 | (j) Each contractor and subcontractor who is engaged in | ||||||
15 | and executing a High Impact Business Construction jobs | ||||||
16 | project, as defined under subsection (i) of this Section, for | ||||||
17 | a business that is entitled to a credit pursuant to subsection | ||||||
18 | (i) of this Section shall: | ||||||
19 | (1) make and keep, for a period of 5 years from the | ||||||
20 | date of the last payment made on or after June 5, 2019 (the | ||||||
21 | effective date of Public Act 101-9) on a contract or | ||||||
22 | subcontract for a High Impact Business Construction Jobs | ||||||
23 | Project, records for all laborers and other workers | ||||||
24 | employed by the contractor or subcontractor on the | ||||||
25 | project; the records shall include: | ||||||
26 | (A) the worker's name; |
| |||||||
| |||||||
1 | (B) the worker's address; | ||||||
2 | (C) the worker's telephone number, if available; | ||||||
3 | (D) the worker's social security number; | ||||||
4 | (E) the worker's classification or | ||||||
5 | classifications; | ||||||
6 | (F) the worker's gross and net wages paid in each | ||||||
7 | pay period; | ||||||
8 | (G) the worker's number of hours worked each day; | ||||||
9 | (H) the worker's starting and ending times of work | ||||||
10 | each day; | ||||||
11 | (I) the worker's hourly wage rate; | ||||||
12 | (J) the worker's hourly overtime wage rate; | ||||||
13 | (K) the worker's race and ethnicity; and | ||||||
14 | (L) the worker's gender; | ||||||
15 | (2) no later than the 15th day of each calendar month, | ||||||
16 | provide a certified payroll for the immediately preceding | ||||||
17 | month to the taxpayer in charge of the High Impact | ||||||
18 | Business construction jobs project; within 5 business days | ||||||
19 | after receiving the certified payroll, the taxpayer shall | ||||||
20 | file the certified payroll with the Department of Labor | ||||||
21 | and the Department of Commerce and Economic Opportunity; a | ||||||
22 | certified payroll must be filed for only those calendar | ||||||
23 | months during which construction on a High Impact Business | ||||||
24 | construction jobs project has occurred; the certified | ||||||
25 | payroll shall consist of a complete copy of the records | ||||||
26 | identified in paragraph (1) of this subsection (j), but |
| |||||||
| |||||||
1 | may exclude the starting and ending times of work each | ||||||
2 | day; the certified payroll shall be accompanied by a | ||||||
3 | statement signed by the contractor or subcontractor or an | ||||||
4 | officer, employee, or agent of the contractor or | ||||||
5 | subcontractor which avers that: | ||||||
6 | (A) he or she has examined the certified payroll | ||||||
7 | records required to be submitted by the Act and such | ||||||
8 | records are true and accurate; and | ||||||
9 | (B) the contractor or subcontractor is aware that | ||||||
10 | filing a certified payroll that he or she knows to be | ||||||
11 | false is a Class A misdemeanor. | ||||||
12 | A general contractor is not prohibited from relying on a | ||||||
13 | certified payroll of a lower-tier subcontractor, provided the | ||||||
14 | general contractor does not knowingly rely upon a | ||||||
15 | subcontractor's false certification. | ||||||
16 | Any contractor or subcontractor subject to this | ||||||
17 | subsection, and any officer, employee, or agent of such | ||||||
18 | contractor or subcontractor whose duty as an officer, | ||||||
19 | employee, or agent it is to file a certified payroll under this | ||||||
20 | subsection, who willfully fails to file such a certified | ||||||
21 | payroll on or before the date such certified payroll is | ||||||
22 | required by this paragraph to be filed and any person who | ||||||
23 | willfully files a false certified payroll that is false as to | ||||||
24 | any material fact is in violation of this Act and guilty of a | ||||||
25 | Class A misdemeanor. | ||||||
26 | The taxpayer in charge of the project shall keep the |
| |||||||
| |||||||
1 | records submitted in accordance with this subsection on or | ||||||
2 | after June 5, 2019 (the effective date of Public Act 101-9) for | ||||||
3 | a period of 5 years from the date of the last payment for work | ||||||
4 | on a contract or subcontract for the High Impact Business | ||||||
5 | construction jobs project. | ||||||
6 | The records submitted in accordance with this subsection | ||||||
7 | shall be considered public records, except an employee's | ||||||
8 | address, telephone number, and social security number, and | ||||||
9 | made available in accordance with the Freedom of Information | ||||||
10 | Act. The Department of Labor shall share the information with | ||||||
11 | the Department in order to comply with the awarding of a High | ||||||
12 | Impact Business construction jobs credit. A contractor, | ||||||
13 | subcontractor, or public body may retain records required | ||||||
14 | under this Section in paper or electronic format. | ||||||
15 | (k) Upon 7 business days' notice, each contractor and | ||||||
16 | subcontractor shall make available for inspection and copying | ||||||
17 | at a location within this State during reasonable hours, the | ||||||
18 | records identified in this subsection (j) to the taxpayer in | ||||||
19 | charge of the High Impact Business construction jobs project, | ||||||
20 | its officers and agents, the Director of the Department of | ||||||
21 | Labor and his or her deputies and agents, and to federal, | ||||||
22 | State, or local law enforcement agencies and prosecutors. | ||||||
23 | (l) The changes made to this Section by this amendatory | ||||||
24 | Act of the 102nd General Assembly, other than the changes in | ||||||
25 | subsection (a), apply to high impact businesses that submit | ||||||
26 | applications on or after the effective date of this amendatory |
| |||||||
| |||||||
1 | Act of the 102nd General Assembly. | ||||||
2 | (Source: P.A. 101-9, eff. 6-5-19; 102-108, eff. 1-1-22; | ||||||
3 | 102-558, eff. 8-20-21; 102-605, eff. 8-27-21; 102-662, eff. | ||||||
4 | 9-15-21; 102-673, eff. 11-30-21; 102-813, eff. 5-13-22; | ||||||
5 | 102-1125, eff. 2-3-23.)
|