Bill Text: IL SB1514 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-04 - Referred to Assignments [SB1514 Detail]

Download: Illinois-2025-SB1514-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1514 Introduced 2/4/2025, by Sen. Mark L. Walker SYNOPSIS AS INTRODUCED:
See Index
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Section 605-1118 as follows:
(20 ILCS 605/605-1118 new)
Sec. 605-1118. Megaproject building materials exemption.
(a) The Department may certify a taxpayer for an exemption
from any State or local use tax or retailers' occupation tax on
building materials that will be incorporated into real estate
at a megaproject site. The taxpayer must meet all of the
criteria for certification set forth in Division 22 of Article
10 of the Property Tax Code. This certification is in addition
to and does not replace or amend the megaproject certificate
under Division 22 of Article 10 of the Property Tax Code. The
Department shall not issue exemptions under this Section after
December 31, 2030.
(b) The Department shall determine the period during which
the exemption from State and local use taxes and retailers'
occupation taxes is in effect, but in no event shall the
initial period exceed 10 years. The certificate may be renewed
for a period not to exceed 5 years. Upon certification by the

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Department under this Section, the Department shall notify the
Department of Revenue of the certification. The exemption
status shall take effect within 3 months after certification
of the taxpayer and notice to the Department of Revenue by the
Department.
(c) If the Department determines, in accordance with the
Administrative Review Law and the Illinois Administrative
Procedure Act, that the taxpayer is not in compliance with
Division 22 of Article 10 of the Property Tax Code, the
Department shall revoke the certification under this Section
by written notice to the taxpayer. The Department shall
transmit a copy of the revocation to the Department of
Revenue. If the taxpayer's certification is revoked, the
taxpayer must repay any exempted amount of State or local use
tax or retailers' occupation tax.
(d) The Department may adopt rules as are reasonable and
necessary to implement the provisions of this Section.
Section 5. The Use Tax Act is amended by changing Section
12 as follows:
(35 ILCS 105/12) (from Ch. 120, par. 439.12)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-28, 2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time

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limitation provisions shall run from the date when the tax is
due rather than from the date when gross receipts are
received), 5 (except that the time limitation provisions on
the issuance of notices of tax liability shall run from the
date when the tax is due rather than from the date when gross
receipts are received and except that in the case of a failure
to file a return required by this Act, no notice of tax
liability shall be issued on and after each July 1 and January
1 covering tax due with that return during any month or period
more than 6 years before that July 1 or January 1,
respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m,
5n, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, which
are not inconsistent with this Act, shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24.)
Section 10. The Service Use Tax Act is amended by changing
Section 12 as follows:
(35 ILCS 110/12) (from Ch. 120, par. 439.42)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,

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2-28, 2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition
by the Department of the money collected under this Act), 4
(except that the time limitation provisions shall run from the
date when gross receipts are received), 5 (except that the
time limitation provisions on the issuance of notices of tax
liability shall run from the date when the tax is due rather
than from the date when gross receipts are received and except
that in the case of a failure to file a return required by this
Act, no notice of tax liability shall be issued on and after
July 1 and January 1 covering tax due with that return during
any month or period more than 6 years before that July 1 or
January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
5l, 5m, 5n, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and Section 3-7 of the Uniform Penalty and Interest Act, shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24.)
Section 15. The Service Occupation Tax Act is amended by
changing Section 12 as follows:
(35 ILCS 115/12) (from Ch. 120, par. 439.112)
Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-28, 2-29, 2-54, 2a, 2b,

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2c, 3 (except as to the disposition by the Department of the
tax collected under this Act), 4 (except that the time
limitation provisions shall run from the date when the tax is
due rather than from the date when gross receipts are
received), 5 (except that the time limitation provisions on
the issuance of notices of tax liability shall run from the
date when the tax is due rather than from the date when gross
receipts are received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l,
5m, 5n, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and Section 3-7 of the Uniform Penalty and Interest Act shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24; 103-605, eff. 7-1-24.)
Section 20. The Retailers' Occupation Tax Act is amended
by adding Section 2-28 as follows:
(35 ILCS 120/2-28 new)
Sec. 2-28. Megaproject building materials exemption.
(a) Each retailer that makes a qualified sale of building
materials to be incorporated into real estate at a megaproject
site certified by the Department of Commerce and Economic
Opportunity under Section 605-1118 of the Department of
Commerce and Economic Opportunity Law of the Civil

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Administrative Code of Illinois may deduct receipts from such
sales when calculating the tax imposed by this Act.
Megaproject Building Materials Exemption Certificates shall be
issued for an initial period not to exceed 10 years and can be
renewed for a period not to exceed 5 years.
(b) No retailer who is eligible for the deduction or
credit for a given sale under Section 5k of this Act related to
enterprise zones, Section 5l of this Act related to High
Impact Businesses, Section 5m of this Act related to REV
Illinois projects, or Section 5n of this Act related to MICRO
facilities shall be eligible for the deduction or credit
authorized under this Section for that same sale.
(c) A construction contractor or other entity shall not
make tax-free purchases unless it has an active Exemption
Certificate issued by the Department at the time of the
purchase.
(d) The megaproject administrator shall submit a request
to the Department for an initial certification or renewal of
the Megaproject Building Materials Exemption Certificate. Upon
request from the megaproject administrator, the Department
shall issue a Megaproject Building Materials Exemption
Certificate for each construction contractor or other entity
identified by the megaproject administrator. The Department
shall make the Megaproject Building Materials Exemption
Certificates available to each construction contractor or
other entity identified by the megaproject administrator and

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

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The Department, in its discretion, may require that the
request for a Megaproject Building Materials Exemption
Certificate be submitted electronically. The Department may,
in its discretion, issue Exemption Certificates
electronically.
(e) To document the exemption allowed under this Section,
the retailer must obtain from the purchaser the certification
required under this Section, which must contain the
Megaproject Building Materials Exemption Certificate number
issued to the purchaser by the Department. In addition, the
retailer must obtain certification from the purchaser that
contains:
(1) a statement that the building materials are being
purchased for incorporation into real estate located in a
megaproject site;
(2) the location or address of the real estate into
which the building materials will be incorporated;
(3) the name of the megaproject in which that real
estate is located;
(4) a description of the building materials being
purchased;
(5) the purchaser's Megaproject Building Materials
Exemption Certificate number issued by the Department; and
(6) the purchaser's signature and date of purchase.
(f) The Department shall issue the Megaproject Building
Materials Exemption Certificates within 3 business days after

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receipt of the request from the megaproject administrator.
This requirement does not apply if the Department, for
reasonable cause, is unable to issue the Exemption Certificate
within 3 business days. The Department may refuse to issue a
Megaproject Building Materials Exemption Certificate if the
owner, any partner, or a corporate officer, and in the case of
a limited liability company, any manager or member, of the
construction contractor or other entity is or has been the
owner, a partner, a corporate officer, and in the case of a
limited liability company, a manager or member, of a person
that is in default for moneys due to the Department under this
Act or any other tax or fee Act administered by the Department.
(g) The Megaproject Building Materials Exemption
Certificate shall contain:
(1) a unique identifying number that shall be designed
in such a way that the Department can identify from the
unique number on the Exemption Certificate issued to a
given construction contractor or other entity, the name of
the megaproject site and the construction contractor or
other entity to whom the Exemption Certificate is issued;
(2) the name of the construction contractor or entity
to whom the Exemption Certificate is issued;
(3) issuance date, effective date, and expiration
date; and
(4) language stating that, if the construction
contractor or other entity who is issued the Exemption

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Certificate makes a tax-exempt purchase, as described in
this Section, that is not eligible for exemption under
this Section or allows another person to make a tax-exempt
purchase, as described in this Section, that is not
eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the
construction contractor or other entity is subject to a
penalty equal to the tax that would have been paid by the
retailer under this Act as well as any applicable local
retailers' occupation tax on the purchase that is not
eligible for the exemption.
(h) After the Department issues Exemption Certificates for
a given megaproject, the megaproject administrator may notify
the Department of additional construction contractors or other
entities that are eligible for a Megaproject Building
Materials Exemption Certificate. Upon receiving such a
notification and subject to the other provisions of this
Section, the Department shall issue a Megaproject Building
Materials Exemption Certificate to each additional
construction contractor or other entity so identified.
(i) A megaproject administrator may ask the Department to
rescind a Megaproject Building Materials Exemption Certificate
previously issued by the Department to a construction
contractor or other entity working at that certified
megaproject site if that Megaproject Building Materials
Exemption Certificate has not yet expired. Upon receiving such

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a request and subject to the other provisions of this Section,
the Department shall issue the rescission of the Megaproject
Building Materials Exemption Certificate to the construction
contractor or other entity identified by the megaproject
administrator and provide a copy of the rescission to the
construction contractor or other entity and to the megaproject
administrator.
(j) If the Department of Revenue determines that a
construction contractor or other entity that was issued an
Exemption Certificate under this Section made a tax-exempt
purchase, as described in this Section, that was not eligible
for exemption under this Section or allowed another person to
make a tax-exempt purchase, as described in this Section, that
was not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that was not eligible for the exemption.
(k) Each contractor or other entity that has been issued a
Megaproject Building Materials Exemption Certificate under
this Section shall annually report to the Department the total
value of the Megaproject building materials exemption from
State taxes. Reports shall contain information reasonably
required by the Department to enable it to verify and
calculate the total tax benefits for taxes imposed by the

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State and shall be broken down by megaproject site. Reports
are due no later than May 31 of each year and shall cover the
previous calendar year. Failure to report data may result in
revocation of the Megaproject Building Materials Exemption
Certificate issued to the contractor or other entity. The
Department 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. The Department, in its discretion, may require
that the reports filed under this Section be submitted
electronically.
(l) The Department shall have the authority to adopt rules
as are reasonable and necessary to implement the provisions of
this Section.
(m) This Section is exempt from the provisions of Section
2-70.
(n) This exemption applies to the Use Tax Act, the Service
Use Tax Act, and the Service Occupation Tax Act and is
incorporated by reference in Section 12 of each of those
respective Acts.
(o) As used in this Section:
"Qualified sale" means a sale of building materials that
will be incorporated into real estate as part of a building

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project for which a Megaproject Building Materials Exemption
Certificate has been issued to the purchaser by the
Department.
Section 25. The Property Tax Code is amended by adding
Division 22 to Article 10 and changing as follows:
(35 ILCS 200/Art. 10 Div. 22 heading new)
Division 22. Megaprojects
(35 ILCS 200/10-910 new)
Sec. 10-910. Megaproject Assessment Freeze and Payment
Law; definitions. This Division 22 may be cited as the
Megaproject Assessment Freeze and Payment Law.
As used in this Division:
"Assessment officer" means the chief county assessment
officer of the county in which the megaproject is located.
"Assessment period" means the period beginning on the
first day of the calendar year after the calendar year in which
a megaproject is placed in service and ending on the date when
the megaproject no longer qualifies as a megaproject under
this Division.
"Base tax year" means the tax year prior to the first
calendar year during which the Department issues a megaproject
certificate under this Division.
"Base year" means:

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(1) the calendar year prior to the calendar year in
which the Department issues the megaproject certificate,
if the Department issues a megaproject certificate for a
project located on the property without granting
preliminary approval for the project pursuant to Section
10-940; or
(2) the calendar year prior to the calendar year in
which the Department grants that preliminary approval, if
the Department grants preliminary approval pursuant to
Section 10-940 for a megaproject located on the property.
"Base year valuation" means the assessed value, in the
base year, of the property comprising the megaproject.
"Company" means one or more entities whose aggregate
investment in the megaproject meets the minimum investment
required under this Division. The term "company" includes a
company affiliate unless the context clearly indicates
otherwise.
"Company affiliate" means an entity that joins with or is
an affiliate of a company and that participates in the
investment in, or financing of, a megaproject.
"Consumer Price Index" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"Department" means the Department of Commerce and Economic

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Opportunity.
"Eligible costs" means all costs incurred by or on behalf
of, or allocated to, a company, prior to the Department's
issuance of the megaproject certificate or during the
investment period, to create or construct a megaproject.
"Eligible costs" includes, without limitation:
(1) the purchase, site preparation, renovation,
rehabilitation, and construction of land, buildings,
structures, equipment, and furnishings used for or in the
megaproject;
(2) any goods or services for the megaproject that are
purchased and capitalized under generally accepted
accounting principles, including any organizational costs
and research and development costs incurred in Illinois;
(3) capitalized lease costs for land, buildings,
structures, and equipment valued at their present value
using the interest rate at which the company borrows funds
prevailing at the time the company entered into the lease;
(4) infrastructure development costs;
(5) debt service and project financing costs;
(6) noncapitalized research and development costs;
(7) job training and education costs;
(8) lease and relocation costs; and
(9) amounts expended by a company or company affiliate
as a nonresponsible party pursuant to a voluntary program
of site remediation, including amounts expended to obtain

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a No Further Remediation Letter from the Illinois
Environmental Protection Agency.
"Entity" means a sole proprietor, partnership, firm,
corporation, limited liability company, association, or other
business enterprise.
"Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as a full-time employee. An
individual for whom a W-2 is issued by a professional employer
organization is a full-time employee if he or she is employed
in the service of the applicant for at least 35 hours each week
or renders any other standard of service generally accepted by
industry custom or practice as a full-time employment. An
owner, operator, or tenant who employs labor or services at a
specific site or facility under contract with another may
declare one full-time job for every 1,820 man-hours worked per
year under the contract. Vacations, paid holidays, and sick
time are included in this computation, but overtime is not
considered a part of regular hours.
"High Impact Business" means a project that has been
designated by the Department as a High Impact Business under
Section 5.5 of the Illinois Enterprise Zone Act.
"Incentive agreement" means an agreement between a
company, a local municipality, and the taxing districts
obligating the company to make the special payment under this

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Division, in addition to paying property taxes, during the
incentive period for a megaproject.
"Incentive period" means the period beginning on the first
day of the calendar year after the calendar year in which the
megaproject is placed in service and each calendar year
thereafter until the earlier of (i) the expiration or
termination of the incentive agreement or (ii) the revocation
of the megaproject certificate.
"Inducement resolution" means a resolution adopted by the
local municipality setting forth the commitment of the local
municipality to enter into an incentive agreement.
"Investment period" means the period ending 7 years after
the date on which the Department issues the megaproject
certificate, or such other longer period of time as the local
municipality, the taxing districts, and the company may agree
to, not to exceed an initial period of 10 years.
"Local municipality" means the city, village, or
incorporated town in which the megaproject is located or, if
the megaproject is located in an unincorporated area, the
county in which the megaproject is located.
"Megaproject" means the project set forth in the company's
tax credit agreement or high impact business designation.
"Megaproject certificate" means a certificate issued by
the Department that authorizes an assessment freeze as
provided in this Division.
"Minimum investment" means an investment in the

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megaproject of at least $100,000,000 in eligible costs within
the investment period.
"Minority person" means a person who is a citizen or
lawful permanent resident of the United States and who is any
of the following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).
(3) Black or African American (a person having origins
in any of the black racial groups of Africa).
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(5) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).
"Minority-owned business" means a business that is at
least 51% owned by one or more minority persons, or that, in
the case of a corporation, has at least 51% of its stock owned
by one or more minority persons, and that, in either case, is

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managed and operated on a daily basis by one or more of the
minority individuals who own the business.
"New full-time employee" means a full-time employee who
first became employed by the owner, operator, contractor, or
tenant of the megaproject during the incentive period or
investment period and whose hiring results in a net increase
in the owner, operator, contractor, or tenant's total number
of full-time Illinois employees.
"New full-time employee" does not include:
(1) a person who was previously employed in Illinois
by the applicant or a related family member prior to the
onset of the investment or incentive period; or
(2) an individual who has a direct or indirect
ownership interest of at least 5% in the profits, capital,
or value of the applicant.
"Placed in service" means that the company has commenced
its business operations at the megaproject site and has met
its job creation requirements under this Section by hiring or
causing to be hired at least 100 new full-time employees who
provide support to the megaproject's business operations and
work in the State of Illinois. If a company pauses or shuts
down its business operations for a period of more than 30 days,
then the megaproject shall no longer be considered placed in
service.
"Project" means land, buildings, and other improvements on
the land, including water facilities, sewage treatment and

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disposal facilities, and all other machinery, apparatuses,
equipment, office facilities, related infrastructure, and
furnishings that are considered necessary, suitable, or useful
by a company and comprise the megaproject, including all such
property subject to assessment under the Property Tax Code.
"Special payment" means the annual amount paid in addition
to property taxes paid during the incentive period as provided
in the incentive agreement.
"Tax credit agreement" means an agreement entered into by
the company and the Department under the Economic Development
for Growing Economy Tax Credit Act, the Reimagining Energy and
Vehicles in Illinois Act, or the Manufacturing Illinois Chips
for Real Opportunity (MICRO) Act.
"Taxing district" has the meaning given to that term in
Section 1-150.
"Termination date" means the last day of a calendar year
that is no later than the 23rd year following the first
calendar year in which a megaproject is placed in service. A
company may apply to the local municipality and taxing
districts prior to the termination date for an extension of
the termination date beyond the 23rd year for up to 17
additional years, for a total of 40 years. The corporate
authorities of the local municipality and the taxing districts
shall approve an extension by resolution upon a finding of
substantial public benefit. A copy of the resolution must be
delivered to the Department within 30 days of the date the

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resolution was adopted. If the incentive agreement is
terminated under Section 10-937, then the termination date is
the date the agreement is terminated.
(35 ILCS 200/10-915 new)
Sec. 10-915. Valuation during incentive period;
eligibility.
(a) Property that receives a megaproject certificate from
the Department is eligible for an assessment freeze, as
provided in this Division, eliminating from consideration, for
assessment purposes during the incentive period, the value
added to the property by the project and limiting the total
valuation of the property during the incentive period to the
base year valuation. If the company does not anticipate
completing the project within the investment period, then the
local municipality and taxing districts may approve one or
more extensions of time to complete the project. However, the
local municipality and taxing districts may not extend the
project for a period that exceeds 5 years after the last day of
the investment period. Unless approved as part of the original
incentive agreement, the corporate authorities of the local
municipality and taxing districts may approve an extension
under this subsection by resolution, a copy of which must be
delivered to the Department within 30 days after the date the
resolution is adopted.
(b) To qualify for a megaproject certificate, the company

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must:
(1) make the minimum investment in the megaproject
during the investment period;
(2) enter into an incentive agreement with the local
municipality and taxing districts as described in this
Division;
(3) enter into a project labor agreement with the
applicable local building trades council prior to the
commencement of any demolition, building construction, or
building renovation related to the megaproject;
(4) establish the goal of awarding 20% of the total
dollar amount of contracts that are related to the
megaproject and are awarded by the company during each
calendar year to minority-owned businesses;
(5) create at least 100 new full-time jobs as a result
of the megaproject; and
(6) have executed a tax credit agreement with the
Department or received a high impact business designation
from the Department.
(c) For purposes of this Division, if a single company
enters into a financing arrangement of the type described in
subsection (b) of Section 10-950, the investment in or
financing of the property by a developer, lessor, financing
entity, or other third party in accordance with this
arrangement is considered investment by the company.
Investment by a related person to the company is considered

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investment by the company.
(35 ILCS 200/10-920 new)
Sec. 10-920. Incentive agreement; assessment freeze for
megaprojects; incentive period; inducement resolution;
location of the project; criteria to qualify.
(a) To obtain the benefits provided in this Division, the
company shall apply in writing to the local municipality and
taxing districts to enter into an incentive agreement with the
municipality and taxing districts, in the form and manner
required by the local municipality and taxing districts,
respectively, and shall certify to the facts asserted in the
application.
(b) The corporate authorities of the local municipality,
prior to entering into an incentive agreement under this
Section, shall hold a public hearing to consider the
application. The amount and terms of the proposed special
payment and the duration of the incentive agreement shall be
considered at the public hearing.
(c) Copies of the completed application shall be provided
to each taxing district for which property taxes were assessed
on the property for the immediately preceding tax year. Those
copies shall be provided at least 30 days prior to the
scheduled public hearing at which the corporate authorities of
the local municipality will consider the application.
(d) The company, the local municipality, and the taxing

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districts shall enter into an incentive agreement requiring
the special payment described in Section 10-925. The corporate
authorities of the local municipality shall adopt an ordinance
approving the incentive agreement.
(e) If an incentive agreement is not executed within 5
years after the local municipality's adoption of an inducement
resolution, expenditures incurred by the company more than 5
years prior to the execution of the incentive agreement shall
not qualify as part of the minimum investment.
(f) To be eligible to enter into an incentive agreement
under this Division, the company must commit to a project that
meets the investment and new job creation requirements set
forth in the company's tax credit agreement or high impact
business designation. In no event shall the company be
required to invest less than $100,000,000 or create fewer than
100 new full-time jobs.
(35 ILCS 200/10-925 new)
Sec. 10-925. Contents of incentive agreement.
(a) The incentive agreement under Section 10-920 must
require the company to pay, or be responsible for the payment
of, an annual special payment to the local municipality and
the taxing districts, beginning with the first tax year for
which the assessment freeze under this Division is applied to
the megaproject. The amount of the special payment shall be
established by the local municipality and taxing districts in

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the incentive agreement and may be a fixed amount for the
duration of the incentive period or may be subject to
adjustment (downward or upward) based on factors memorialized
in the incentive agreement.
Unless the special payment is negotiated as a fixed
payment for the duration of the incentive period, the parties
shall conduct an impact analysis study on the megaproject
every 5 years, and the special payment shall be adjusted based
on the results of that study; provided, however, the
adjustment shall not be less than the initial special payment
adjusted for inflation as measured by the Consumer Price
Index.
The portion of the special payment due to the local school
districts shall be increased annually by the lesser of (i) 5%
or (ii) the percentage increase, if any, in the Consumer Price
Index for the 12 months ending in September of the immediately
preceding calendar year, and may be further increased or
decreased every 5 years based on the results of the impact
analysis study.
(b) The incentive agreement shall obligate the company to
operate the megaproject at the designated project location for
a minimum of 20 years.
(c) The incentive agreement may contain such other terms
and conditions as are mutually agreeable to the local
municipality, the taxing districts, and the company and are
consistent with the requirements of this Division, including,

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without limitation, operational and additional job creation
requirements.
(d) In addition, all incentive agreements entered into
pursuant to Section 10-920 must include, as the first portion
of the document, a recapitulation of the remaining contents of
the document, which shall include the following:
(1) the legal name of each party to the agreement;
(2) the street address of the project and the property
subject to the agreement;
(3) the agreed minimum investment, which shall not be
less than the investment amount required in the tax credit
agreement or high impact business designation;
(3.5) the agreed number of new jobs to be created,
which shall not be less than the number of new jobs
required in the tax credit agreement or high impact
business designation;
(4) the term of the agreement;
(5) a schedule showing the amount of the special
payment and its calculation for each year of the
agreement;
(6) a schedule showing the amount to be distributed
annually to each taxing district, as set forth in the
incentive agreement;
(7) any other feature or aspect of the agreement which
may affect the calculation of items (5) and (6) of this
subsection; and

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(8) the party or parties to the agreement who are
responsible for updating the information contained in the
summary document.
(35 ILCS 200/10-927 new)
Sec. 10-927. Minimum job creation requirements.
(a) The company must hire the same number of new full-time
employees as is required in the company's tax credit agreement
or high impact business designation, which in no event shall
be less than 100. These new full-time employees must be hired
to support the business operations of the megaproject and be
located within the State of Illinois.
(b) A company may not satisfy the requirements of this
Section by relocating jobs from one site in Illinois to
another site in Illinois.
(35 ILCS 200/10-930 new)
Sec. 10-930. Installment bills; distribution of special
payments.
(a) The local municipality shall prepare a bill for the
company for each installment of the special payment according
to the schedule set forth in paragraph (5) of subsection (d) of
Section 10-925, or as modified pursuant to paragraph (7) of
subsection (d) of Section 10-925, and the company shall make
direct payments to the affected taxing entities according to
the schedule in paragraph (6) of subsection (d) of Section

SB1514 - 28 - LRB104 09539 HLH 19602 b
10-925 or as modified in paragraph (7) of subsection (d) of
Section 10-925.
(b) The company shall make direct payments of the special
payment to the taxing districts associated with the
megaproject within 30 days after receipt by the company of the
bill prepared by the local municipality.
(c) Misallocations of the special payments may be
corrected by adjusting later distributions, but these
adjustments must be made in the next succeeding year following
identification and resolution of the misallocation. To the
extent that distributions have been made improperly in
previous years, claims for adjustment must be made within one
year of the distribution.
(35 ILCS 200/10-937 new)
Sec. 10-937. Termination of incentive agreement; automatic
termination; minimum level of investment and new job creation
required to remain qualified for assessment freeze.
(a) The local municipality, the taxing districts, and the
company may mutually agree to terminate the incentive
agreement at any time. From the date of termination, the
megaproject is subject to assessment on the basis of the
then-current fair cash value.
(b) An incentive agreement shall be terminated if the
company fails to satisfy the minimum investment level or the
job creation requirements provided in this Division. If the

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incentive agreement is terminated under this subsection, the
megaproject is subject to assessment on the basis of the
then-current fair cash value beginning in the tax year during
which the termination occurs.
(c) An incentive agreement shall terminate if, at any
time, the company no longer has the minimum level of new job
creation and investment as provided in this Division, without
regard to depreciation.
(35 ILCS 200/10-938 new)
Sec. 10-938. Megaproject administration. The
administration of a megaproject shall be under the
jurisdiction of the local municipality that approved the
incentive agreement by ordinance. Each local municipality that
approves an incentive agreement by ordinance shall, by
ordinance, designate a Megaproject Administrator for the
megaproject within its jurisdiction. A Megaproject
Administrator must be an officer or employee of the
municipality or county. The Megaproject Administrator shall be
the liaison between the approving municipality or county, the
Department, and the Department of Revenue.
(35 ILCS 200/10-940 new)
Sec. 10-940. Megaproject applications; certification as a
megaproject and revocation of certification.
(a) The Department shall receive applications for

SB1514 - 30 - LRB104 09539 HLH 19602 b
megaproject certificates under this Division. The Department
shall promptly notify the assessment officer when the
Department receives an application under this Section. The
Department's rules shall provide that an applicant may request
preliminary approval of the megaproject before the project
begins, before the applicant has entered into a fully executed
incentive agreement with the local municipality and taxing
districts, or before the project has been placed in service.
(b) An applicant for a megaproject certificate under this
Division must provide evidence to the Department of a fully
executed incentive agreement between the company, the local
municipality, and the taxing districts as described in this
Division.
(c) An applicant for a megaproject certificate under this
Division must provide evidence to the Department of a fully
executed project labor agreement entered into with the
applicable local building trades council prior to the
commencement of any demolition, building construction, or
building renovation at the project. If the demolition,
building construction, or building renovation begins after the
application is approved, then the applicant must transmit a
copy of the fully executed project labor agreement to the
Department as soon as possible after the agreement is
executed.
(d) An applicant for a megaproject certificate under this
Division must provide evidence to the Department that the

SB1514 - 31 - LRB104 09539 HLH 19602 b
company has established the goal of awarding 20% of the total
dollar amount of contracts awarded during each calendar year
by the company, that are related to the project, to
minority-owned businesses.
(e) The Department shall approve an application for a
megaproject certificate if the Department finds that the
project meets the requirements of this Division.
(f) Upon approval of the application, the Department shall
issue a megaproject certificate to the applicant and transmit
a copy to the assessment officer and the Department of
Revenue. The certificate shall identify the property on which
the megaproject is located.
(g) For each calendar year following issuance of the
megaproject certificate, until the minimum investment and new
job creation requirements have been met and the megaproject
has been placed in service, the company shall deliver a report
to the Department on the status of construction or creation of
the megaproject and the amount of minimum investment made in
the megaproject during the preceding calendar year. If the
Department determines, in accordance with the Administrative
Review Law and the Illinois Administrative Procedure Act, that
a project for which a certificate has been issued has not met
the minimum investment and job creation requirements of this
Division within the investment period, the Department shall
revoke the certificate by written notice to the taxpayer of
record and transmit a copy of the revocation to the assessment

SB1514 - 32 - LRB104 09539 HLH 19602 b
officer.
(h) If the local municipality notifies the Department that
the incentive agreement between the company, the local
municipality, and the taxing districts has been terminated,
the Department shall revoke the certificate by written notice
to the taxpayer of record and transmit a copy of the revocation
to the assessment officer.
(35 ILCS 200/10-945 new)
Sec. 10-945. Computation of valuation.
(a) Upon receipt of the megaproject certificate from the
Department, the assessment officer shall determine the base
year valuation and shall make a notation on each statement of
assessment during the assessment period that the valuation of
the project is based upon the issuance of a megaproject
certificate.
(b) Upon revocation of a megaproject certificate, the
assessment officer shall compute the assessed valuation of the
project on the basis of the then-current fair cash value of the
property.
(35 ILCS 200/10-950 new)
Sec. 10-950. Transfers of interest in a megaproject;
sale-leaseback arrangement; requirements.
(a) Subject to the terms of the incentive agreement
between the company, the local municipality, and the taxing

SB1514 - 33 - LRB104 09539 HLH 19602 b
district, ownership of or any interest in the megaproject and
any and all related project property, including, without
limitation, transfers of indirect beneficial interests and
equity interests in a company owning a megaproject, shall not
affect the assessment freeze or the validity of the
megaproject certificate issued under this Division.
Notwithstanding the provisions of this subsection, the
incentive agreement shall be a covenant running with the land.
(b) A company may enter into lending, financing, security,
leasing, or similar arrangements, or a succession of such
arrangements, with a financing entity concerning all or part
of a project including, without limitation, a sale-leaseback
arrangement, equipment lease, build-to-suit lease, synthetic
lease, nordic lease, defeased tax benefit, or transfer lease,
an assignment, sublease, or similar arrangement, or succession
of those arrangements, with one or more financing entities
concerning all or part of a project, regardless of the
identity of the income tax or fee owner of the megaproject.
Neither the original transfer to the financing entity nor the
later transfer from the financing entity back to the company,
pursuant to terms in the sale-leaseback agreement, shall
affect the assessment freeze or the validity of the
megaproject certificate issued under this Division, regardless
of whether the income tax basis is changed for income tax
purposes.
(c) The Department must receive notice of all transfers

SB1514 - 34 - LRB104 09539 HLH 19602 b
undertaken with respect to other projects to effect a
financing. Notice shall be made in writing within 60 days
after the transfer, shall identify each transferee, and shall
contain other information required by the Department with the
appropriate returns. Failure to meet this notice requirement
does not adversely affect the assessment freeze.
(35 ILCS 200/10-955 new)
Sec. 10-955. Minimum investment by company affiliates. To
be eligible for the benefits of this Division, a company must
invest the minimum investment. Investments by company
affiliates during the investment period may be applied toward
the minimum investment under this Division regardless of
whether the company affiliate was part of the project. To
qualify for the assessment freeze, the minimum investment must
be made in connection with the megaproject.
(35 ILCS 200/10-960 new)
Sec. 10-960. Projects to be valued at fair cash value for
purposes of bonded indebtedness and limitations on property
tax extensions. Projects to which an assessment freeze applies
pursuant to this Division shall be valued at their fair cash
value for purposes of calculating a municipality's general
obligation bond limits and a taxing district's limitation on
tax extensions.

SB1514 - 35 - LRB104 09539 HLH 19602 b
(35 ILCS 200/10-965 new)
Sec. 10-965. Abatements. Any taxing district, upon a
majority vote of its governing authority, may, after the
determination of the assessed valuation as set forth in this
Division, order the clerk of the appropriate municipality or
county to abate any portion of real property taxes otherwise
levied or extended by the taxing district on a megaproject.
(35 ILCS 200/10-970 new)
Sec. 10-970. Filing of returns, contracts, and other
information; due date of payments and returns.
(a) The company and the local municipality shall file
notices, reports, and other information as required by the
Department.
(b) Special payments are due at the same time as property
tax payments and property tax returns are due for the
megaproject property.
(c) Failure to make a timely special payment results in
the assessment of penalties as if the payment were a
delinquent property tax payment or return.
(d) Within 30 days after the date of execution of an
incentive agreement, a copy of the incentive agreement must be
filed with the Department, the chief county assessment
officer, and the county auditor for the county in which the
megaproject is located.

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(35 ILCS 200/10-980 new)
Sec. 10-980. Rules. The Department may issue rulings and
adopt rules as necessary to carry out the purpose of this
Division.
(35 ILCS 200/10-985 new)
Sec. 10-985. Prohibition on multiple credits, exemptions,
and freezes. An applicant for a megaproject certificate who
qualifies for an assessment freeze under this Section is not
entitled to any other property tax credits, exemptions, or
assessment freezes relating to the megaproject.
(35 ILCS 200/10-987 new)
Sec. 10-987. Building materials exemption for
megaprojects. An applicant that is eligible for a megaproject
certificate under this Division 22 of Article 10 is also
eligible for the building materials exemption under Section
605-1118 of the Civil Administrative Code of Illinois.
(35 ILCS 200/10-995 new)
Sec. 10-995. Tax Increment Financing districts. A project
that is located and operated in a Tax Increment Financing
(TIF) district or TIF designated area is not eligible for a
megaproject assessment freeze under this Section. The
agreement shall provide that the megaproject certificate is
void if an area on which the megaproject is located is

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designated as a TIF district or TIF designated area.
(35 ILCS 200/10-1000 new)
Sec. 10-1000. Invalidity. If all or any part of this
Division is determined to be unconstitutional or otherwise
unenforceable by a court of competent jurisdiction, a company
has 180 days from the date of the determination to transfer the
megaproject's title to an authorized economic development
authority that qualifies for property tax assessment under
this Division.
Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 99. Effective date. This Act takes effect July 1,
2025.
SB1514 - 38 - LRB104 09539 HLH 19602 b
INDEX
Statutes amended in order of appearance
20 ILCS 605/605-1118 new
35 ILCS 105/12 from Ch. 120, par. 439.12
35 ILCS 110/12 from Ch. 120, par. 439.42
35 ILCS 115/12 from Ch. 120, par. 439.112
35 ILCS 120/2-28 new
35 ILCS 200/Art. 10 Div.
22 heading new
35 ILCS 200/10-910 new
35 ILCS 200/10-915 new
35 ILCS 200/10-920 new
35 ILCS 200/10-925 new
35 ILCS 200/10-927 new
35 ILCS 200/10-930 new
35 ILCS 200/10-937 new
35 ILCS 200/10-938 new
35 ILCS 200/10-940 new
35 ILCS 200/10-945 new
35 ILCS 200/10-950 new
35 ILCS 200/10-955 new
35 ILCS 200/10-960 new
35 ILCS 200/10-965 new
35 ILCS 200/10-970 new
35 ILCS 200/10-980 new
SB1514 - 39 - LRB104 09539 HLH 19602 b
35 ILCS 200/10-985 new
35 ILCS 200/10-987 new
35 ILCS 200/10-995 new
35 ILCS 200/10-1000 new