Bill Text: IL SB2667 | 2017-2018 | 100th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2018-08-13 - Public Act . . . . . . . . . 100-0838 [SB2667 Detail]
Download: Illinois-2017-SB2667-Engrossed.html
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2018-08-13 - Public Act . . . . . . . . . 100-0838 [SB2667 Detail]
Download: Illinois-2017-SB2667-Engrossed.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Enterprise Zone Act is amended by | ||||||
5 | changing Sections 3, 4, 4.1, 5.1, 5.2, 5.3, 5.4, and 8.1 as | ||||||
6 | follows:
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7 | (20 ILCS 655/3) (from Ch. 67 1/2, par. 603)
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8 | Sec. 3. Definitions. As used in this Act, the following | ||||||
9 | words shall
have the meanings ascribed to them, unless the | ||||||
10 | context otherwise requires:
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11 | (a) "Department" means the Department of Commerce and | ||||||
12 | Economic Opportunity.
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13 | (b) "Enterprise Zone" means an area of the State certified | ||||||
14 | by the Department
as an Enterprise Zone pursuant to this Act.
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15 | (c) "Depressed Area" means an area in which pervasive | ||||||
16 | poverty, unemployment
and economic distress exist.
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17 | (d) "Designated Zone Organization" means an association or | ||||||
18 | entity: (1)
the members of which are substantially all | ||||||
19 | residents of the Enterprise Zone;
(2) the board of directors of | ||||||
20 | which is elected by the members of the organization;
(3) which | ||||||
21 | satisfies the criteria set forth in Section 501(c) (3) or | ||||||
22 | 501(c) (4) of the
Internal Revenue Code; and (4) which exists | ||||||
23 | primarily for the purpose of
performing within such area or |
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1 | zone for the benefit of the residents and businesses
thereof | ||||||
2 | any of the functions set forth in Section 8 of this Act.
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3 | (e) "Agency" means each officer, board, commission and | ||||||
4 | agency created
by the Constitution, in the executive branch of | ||||||
5 | State government, other
than the State Board of Elections; each | ||||||
6 | officer, department, board, commission,
agency, institution, | ||||||
7 | authority, university, body politic and corporate of
the State; | ||||||
8 | and each administrative unit or corporate outgrowth of the | ||||||
9 | State
government which is created by or pursuant to statute, | ||||||
10 | other than units
of local government and their officers, school | ||||||
11 | districts and boards of election
commissioners; each | ||||||
12 | administrative unit or corporate outgrowth of the above
and as | ||||||
13 | may be created by executive order of the Governor. No entity | ||||||
14 | shall
be considered an "agency" for the purposes of this Act | ||||||
15 | unless authorized
by law to make rules or regulations.
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16 | (f) "Rule" means each agency statement of general | ||||||
17 | applicability that implements,
applies, interprets or | ||||||
18 | prescribes law or policy, but does not include (i)
statements | ||||||
19 | concerning only the internal management of an agency and not
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20 | affecting private rights or procedures available to persons or | ||||||
21 | entities
outside the agency, (ii) intra-agency memoranda, or | ||||||
22 | (iii) the prescription
of standardized forms.
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23 | (g) "Board" means the Enterprise Zone Board created in | ||||||
24 | Section 5.2.1. | ||||||
25 | (h) "Local labor market area" means an economically | ||||||
26 | integrated area within which individuals can reside and find |
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1 | employment within a reasonable distance or can readily change | ||||||
2 | jobs without changing their place of residence. | ||||||
3 | (i) "Full-time equivalent job" means a job in which the new | ||||||
4 | employee works for the recipient or for a corporation under | ||||||
5 | contract to the recipient at a rate of at least 35 hours per | ||||||
6 | week. A recipient who employs labor or services at a specific | ||||||
7 | site or facility under contract with another may declare one | ||||||
8 | full-time, permanent job for every 1,820 man hours worked per | ||||||
9 | year under that contract. Vacations, paid holidays, and sick | ||||||
10 | time are included in this computation. Overtime is not | ||||||
11 | considered a part of regular hours. | ||||||
12 | (j) "Full-time retained job" means any employee defined as | ||||||
13 | having a full-time or full-time equivalent job preserved at a | ||||||
14 | specific facility or site, the continuance of which is | ||||||
15 | threatened by a specific and demonstrable threat, which shall | ||||||
16 | be specified in the application for development assistance. A | ||||||
17 | recipient who employs labor or services at a specific site or | ||||||
18 | facility under contract with another may declare one retained | ||||||
19 | employee per year for every 1,750 man hours worked per year | ||||||
20 | under that contract, even if different individuals perform | ||||||
21 | on-site labor or services. | ||||||
22 | (Source: P.A. 97-905, eff. 8-7-12; 98-463, eff. 8-16-13.)
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23 | (20 ILCS 655/4) (from Ch. 67 1/2, par. 604)
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24 | Sec. 4. Qualifications for Enterprise Zones. | ||||||
25 | (1) An area is qualified to become an enterprise zone |
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1 | which:
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2 | (a) is a contiguous area, provided that a zone area may | ||||||
3 | exclude wholly
surrounded territory within its boundaries;
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4 | (b) comprises a minimum of one-half square mile and not | ||||||
5 | more than 12
square miles, or 15 square miles if the zone | ||||||
6 | is located within the
jurisdiction of 4 or more counties or | ||||||
7 | municipalities, in total area,
exclusive of lakes and | ||||||
8 | waterways;
however, in such cases where the enterprise zone | ||||||
9 | is a joint effort of
three or more units of government, or | ||||||
10 | two or more units of government if
situated in a township | ||||||
11 | which is divided by a municipality of 1,000,000 or
more | ||||||
12 | inhabitants, and where the certification has been in
effect | ||||||
13 | at least one year, the total area shall comprise a minimum | ||||||
14 | of
one-half square mile and not more than thirteen square | ||||||
15 | miles in total area
exclusive of lakes and waterways;
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16 | (c) (blank);
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17 | (d) (blank);
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18 | (e) is (1) entirely within a municipality or (2) | ||||||
19 | entirely within
the unincorporated
areas of a county, | ||||||
20 | except where reasonable need is established for such
zone | ||||||
21 | to cover portions of more than one municipality or county | ||||||
22 | or (3)
both comprises (i) all or part of a municipality and | ||||||
23 | (ii) an unincorporated
area of a county; and
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24 | (f) meets 3 or more of the following criteria: | ||||||
25 | (1) all or part of the local labor market area has | ||||||
26 | had an annual average unemployment rate of at least |
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1 | 120% of the State's annual average unemployment rate | ||||||
2 | for the most recent calendar year or the most recent | ||||||
3 | fiscal year as reported by the Department of Employment | ||||||
4 | Security; | ||||||
5 | (2) designation will result in the development of | ||||||
6 | substantial employment opportunities by creating or | ||||||
7 | retaining a minimum aggregate of 1,000 full-time | ||||||
8 | equivalent jobs due to an aggregate investment of | ||||||
9 | $100,000,000 or more, and will help alleviate the | ||||||
10 | effects of poverty and unemployment within the local | ||||||
11 | labor market area; | ||||||
12 | (3) at least one of the following applies to the | ||||||
13 | local labor market area: (A) all or part of the local | ||||||
14 | labor market area has a poverty rate of at least 20% | ||||||
15 | according to the latest federal decennial census, the | ||||||
16 | most recent American Community Survey released by the | ||||||
17 | U.S. Census Bureau, or other appropriate data source | ||||||
18 | produced by the U.S. Census Bureau; (B) 50% or more of | ||||||
19 | children in the local labor market area are eligible to | ||||||
20 | participate in the federal free lunch or reduced-price | ||||||
21 | meals program according to reported statistics from | ||||||
22 | the State Board of Education ; , or (C) 20% or more | ||||||
23 | households in the local labor market area receive food | ||||||
24 | stamps or assistance under the Supplemental Nutrition | ||||||
25 | Assistance Program ("SNAP") according to the latest | ||||||
26 | federal decennial census or other data from the U.S. |
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1 | Census Bureau ; | ||||||
2 | (4) an abandoned coal mine or a brownfield (as | ||||||
3 | defined in Section 58.2 of the Environmental | ||||||
4 | Protection Act) is located in the proposed zone area, | ||||||
5 | or all or a portion of the proposed zone was declared a | ||||||
6 | federal disaster area in the 3 years preceding the date | ||||||
7 | of application; | ||||||
8 | (5) the local labor market area contains a presence | ||||||
9 | of large employers that have downsized over the years, | ||||||
10 | the labor market area has experienced plant closures in | ||||||
11 | the 5 years prior to the date of application affecting | ||||||
12 | more than 50 workers, or the local labor market area | ||||||
13 | has experienced State or federal facility closures in | ||||||
14 | the 5 years prior to the date of application affecting | ||||||
15 | more than 50 workers; | ||||||
16 | (6) based on data from Multiple Listing Service | ||||||
17 | information or other suitable sources, the local labor | ||||||
18 | market area contains a high floor vacancy rate of | ||||||
19 | industrial or commercial properties, vacant or | ||||||
20 | demolished commercial and industrial structures are | ||||||
21 | prevalent in the local labor market area, or industrial | ||||||
22 | structures in the local labor market area are not used | ||||||
23 | because of age, deterioration, relocation of the | ||||||
24 | former occupants, or cessation of operation; | ||||||
25 | (7) the applicant demonstrates a substantial plan | ||||||
26 | for using the designation to improve the State and |
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1 | local government tax base, including income, sales, | ||||||
2 | and property taxes , including a plan for disposal of | ||||||
3 | publicly-owned real property by the methods described | ||||||
4 | in Section 10 of this Act ; | ||||||
5 | (8) significant public infrastructure is present | ||||||
6 | in the local labor market area in addition to a plan | ||||||
7 | for infrastructure development and improvement; | ||||||
8 | (9) high schools or community colleges located | ||||||
9 | within the local labor market area are engaged in ACT | ||||||
10 | Work Keys, Manufacturing Skills Standard | ||||||
11 | Certification, or other industry-based credentials | ||||||
12 | that prepare students for careers; or | ||||||
13 | (10) (blank). the change in equalized assessed | ||||||
14 | valuation of industrial and/or commercial properties | ||||||
15 | in the 5 years prior to the date of application is | ||||||
16 | equal to or less than 50% of the State average change | ||||||
17 | in equalized assessed valuation for industrial and/or | ||||||
18 | commercial properties, as applicable, for the same | ||||||
19 | period of time. | ||||||
20 | As provided in Section 10-5.3 of the River Edge | ||||||
21 | Redevelopment Zone Act, upon the expiration of the term of each | ||||||
22 | River Edge Redevelopment Zone in existence on the effective | ||||||
23 | date of this amendatory Act of the 97th General Assembly, that | ||||||
24 | River Edge Redevelopment Zone will become available for its | ||||||
25 | previous designee or a new applicant to compete for designation | ||||||
26 | as an enterprise zone. No preference for designation will be |
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1 | given to the previous designee of the zone. | ||||||
2 | (2) Any criteria established by the Department or by law | ||||||
3 | which utilize the rate
of unemployment for a particular area | ||||||
4 | shall provide that all persons who
are not presently employed | ||||||
5 | and have exhausted all unemployment benefits
shall be | ||||||
6 | considered unemployed, whether or not such persons are actively
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7 | seeking employment.
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8 | (Source: P.A. 97-905, eff. 8-7-12.)
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9 | (20 ILCS 655/4.1) | ||||||
10 | Sec. 4.1. Department recommendations. | ||||||
11 | (a) For all applications that qualify under Section 4 of | ||||||
12 | this Act, the Department shall issue recommendations by | ||||||
13 | assigning a score to each applicant. The scores will be | ||||||
14 | determined by the Department, based on the extent to which an | ||||||
15 | applicant meets the criteria points under subsection (f) of | ||||||
16 | Section 4 of this Act. Scores will be determined using the | ||||||
17 | following scoring system: | ||||||
18 | (1) Up to 50 points for the extent to which the | ||||||
19 | applicant meets or exceeds the criteria in item (1) of | ||||||
20 | subsection (f) of Section 4 of this Act, with points | ||||||
21 | awarded according to the severity of the unemployment. | ||||||
22 | (2) Up to 50 points for the extent to which the | ||||||
23 | applicant meets or exceeds the criteria in item (2) of | ||||||
24 | subsection (f) of Section 4 of this Act, with points | ||||||
25 | awarded in accordance with the number of jobs created and |
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1 | the aggregate amount of investment promised. The | ||||||
2 | Department may award partial points on a pro rata basis | ||||||
3 | under this paragraph (2) if the applicant demonstrates | ||||||
4 | specific job creation and investment below the thresholds | ||||||
5 | set forth in paragraph (2) of subsection (f) of Section 4. | ||||||
6 | (3) Up to 40 points for the extent to which the | ||||||
7 | applicant meets or exceeds the criteria in item (3) of | ||||||
8 | subsection (f) of Section 4 of this Act, with points | ||||||
9 | awarded in accordance with the severity of the unemployment | ||||||
10 | rate according to the latest federal decennial census. | ||||||
11 | (4) Up to 30 points for the extent to which the | ||||||
12 | applicant meets or exceeds the criteria in item (4) of | ||||||
13 | subsection (f) of Section 4 of this Act, with points | ||||||
14 | awarded in accordance with the severity of the | ||||||
15 | environmental impact of the abandoned coal mine, | ||||||
16 | brownfield, or federal disaster area. | ||||||
17 | (5) Up to 50 points for the extent to which the | ||||||
18 | applicant meets or exceeds the criteria in item (5) of | ||||||
19 | subsection (f) of Section 4 of this Act, with points | ||||||
20 | awarded in accordance with the severity of the applicable | ||||||
21 | facility closures or downsizing. | ||||||
22 | (6) Up to 40 points for the extent to which the | ||||||
23 | applicant meets or exceeds the criteria in item (6) of | ||||||
24 | subsection (f) of Section 4 of this Act, with points | ||||||
25 | awarded in accordance with the severity and extent of the | ||||||
26 | high floor vacancy or deterioration. |
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1 | (7) Up to 30 points for the extent to which the | ||||||
2 | applicant meets or exceeds the criteria in item (7) of | ||||||
3 | subsection (f) of Section 4 of this Act, with points | ||||||
4 | awarded in accordance with the extent to which the | ||||||
5 | application addresses a plan to improve the State and local | ||||||
6 | government tax base , including a plan for disposal of | ||||||
7 | publicly-owned real property . | ||||||
8 | (8) Up to 50 points for the extent to which the | ||||||
9 | applicant meets or exceeds the criteria in item (8) of | ||||||
10 | subsection (f) of Section 4 of this Act, with points | ||||||
11 | awarded in accordance with the existence of significant | ||||||
12 | public infrastructure. | ||||||
13 | (9) Up to 40 points for the extent to which the | ||||||
14 | applicant meets or exceeds the criteria in item (9) of | ||||||
15 | subsection (f) of Section 4 of this Act, with points | ||||||
16 | awarded in accordance with the extent to which educational | ||||||
17 | programs exist for career preparation. | ||||||
18 | (10) (Blank). Up to 40 points for the extent to which | ||||||
19 | the applicant meets or exceeds the criteria in item (10) of | ||||||
20 | subsection (f) of Section 4 of this Act, with points | ||||||
21 | awarded according to the severity of the change in | ||||||
22 | equalized assessed valuation. | ||||||
23 | (11) In awarding points under paragraphs (1) through | ||||||
24 | (9), the Department may adjust the scoring for applicants | ||||||
25 | that are located entirely within a county with a population | ||||||
26 | of less than 300,000 if the Department finds that the |
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1 | designation will help to alleviate the effects of poverty | ||||||
2 | and unemployment within the proposed Enterprise Zone. | ||||||
3 | (b) After assigning a score for each of the individual | ||||||
4 | criteria using the point system as described in subsection (a), | ||||||
5 | the Department shall then take the sum of the scores for each | ||||||
6 | applicant and assign a final score. The Department shall then | ||||||
7 | submit this information to the Board, as required in subsection | ||||||
8 | (c) of Section 5.2, as its recommendation.
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9 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
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10 | (20 ILCS 655/5.1) (from Ch. 67 1/2, par. 606)
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11 | Sec. 5.1. Application to Department. | ||||||
12 | (a) A county or municipality which
has adopted an ordinance | ||||||
13 | designating an area as an enterprise zone shall
make written | ||||||
14 | application to the Department to have such proposed enterprise
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15 | zone certified by the Department as an Enterprise Zone. The | ||||||
16 | application shall include:
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17 | (i) a certified copy of the ordinance designating the | ||||||
18 | proposed zone;
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19 | (ii) a map of the proposed enterprise zone, showing | ||||||
20 | existing streets and highways;
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21 | (iii) an analysis, and any appropriate supporting | ||||||
22 | documents and statistics,
demonstrating that the proposed | ||||||
23 | zone area is qualified in accordance with Section 4;
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24 | (iv) a statement detailing any tax, grant, and other | ||||||
25 | financial incentives
or benefits, and any programs, to be |
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1 | provided by the municipality or county
to business | ||||||
2 | enterprises within the zone, other than those provided in | ||||||
3 | the
designating ordinance, which are not to be provided | ||||||
4 | throughout the municipality
or county;
| ||||||
5 | (v) a statement setting forth the economic development | ||||||
6 | and planning objectives
for the zone;
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7 | (vi) a statement describing the functions, programs, | ||||||
8 | and services to be
performed by designated zone | ||||||
9 | organizations within the zone;
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10 | (vii) an estimate of the economic impact of the zone, | ||||||
11 | considering all
of the tax incentives, financial benefits | ||||||
12 | and programs contemplated, upon
the revenues of the | ||||||
13 | municipality or county;
| ||||||
14 | (viii) a transcript of all public hearings on the zone;
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15 | (ix) in the case of a joint application, a statement | ||||||
16 | detailing the need
for a zone covering portions of more | ||||||
17 | than one municipality or county and
a description of the | ||||||
18 | agreement between joint applicants; and
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19 | (x) such additional information as the Department by | ||||||
20 | regulation may require.
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21 | (b) The Department may provide for provisional | ||||||
22 | certification of substantially complete applications pending | ||||||
23 | the receipt of any of the items identified in subsection (a) of | ||||||
24 | this Section or any additional information requested by the | ||||||
25 | Department. | ||||||
26 | (Source: P.A. 82-1019.)
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1 | (20 ILCS 655/5.2) (from Ch. 67 1/2, par. 607)
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2 | Sec. 5.2. Department Review of Enterprise Zone | ||||||
3 | Applications. | ||||||
4 | (a) All
applications which are to be considered and acted | ||||||
5 | upon by the Department
during a calendar year must be received | ||||||
6 | by the Department no later than
December 31 of the preceding | ||||||
7 | calendar year.
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8 | Any application received after December 31 of any calendar | ||||||
9 | year shall
be held by the Department for consideration and | ||||||
10 | action during the following
calendar year.
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11 | Each enterprise zone application shall include a specific | ||||||
12 | definition of the applicant's local labor market area. | ||||||
13 | (a-5) The Department shall, no later than July 31, 2013, | ||||||
14 | develop an application process for an enterprise zone | ||||||
15 | application. The Department has emergency rulemaking authority | ||||||
16 | for the purpose of application development only until 12 months | ||||||
17 | after the effective date of this amendatory Act of the 97th | ||||||
18 | General Assembly. | ||||||
19 | (b) Upon receipt of an application from a county or | ||||||
20 | municipality the Department
shall review the application to | ||||||
21 | determine whether the designated area
qualifies as an | ||||||
22 | enterprise zone under Section 4 of this Act.
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23 | (c) No later than June 30, the Department shall notify all | ||||||
24 | applicant municipalities
and counties of the Department's | ||||||
25 | determination of the qualification of their
respective |
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1 | designated enterprise zone areas, and shall send qualifying | ||||||
2 | applications, including the applicant's scores for each of the | ||||||
3 | items set forth in items (1) through (10) of subsection (a) of | ||||||
4 | Section 4.1 and the applicant's final score under that Section, | ||||||
5 | to the Board for the Board's consideration, along with | ||||||
6 | supporting documentation of the basis for the Department's | ||||||
7 | decision.
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8 | (d) If any such designated area is found to be qualified to | ||||||
9 | be an enterprise
zone by the Department under subsection (c) of | ||||||
10 | this Section, the Department shall, no later than July 15, send | ||||||
11 | a letter of notification to each member of the General Assembly | ||||||
12 | whose legislative district or representative district contains | ||||||
13 | all or part of the designated area and publish a notice in at
| ||||||
14 | least one newspaper of general circulation within the proposed | ||||||
15 | zone area
to notify the general public of the application and | ||||||
16 | their opportunity to
comment. Such notice shall include a | ||||||
17 | description of the area and a brief
summary of the application | ||||||
18 | and shall indicate locations where the applicant
has provided | ||||||
19 | copies of the application for public inspection. The notice
| ||||||
20 | shall also indicate appropriate procedures for the filing of | ||||||
21 | written comments
from zone residents, business, civic and other | ||||||
22 | organizations and property
owners to the Department. The | ||||||
23 | Department and the Board may consider written comments | ||||||
24 | submitted pursuant to this Section or any other information | ||||||
25 | regarding a pending enterprise zone application submitted | ||||||
26 | after the deadline for enterprise zone application and received |
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1 | prior to the Board's decision on all pending applications.
| ||||||
2 | (e) (Blank).
| ||||||
3 | (f) (Blank).
| ||||||
4 | (g) (Blank).
| ||||||
5 | (h) (Blank).
| ||||||
6 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
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7 | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608)
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8 | Sec. 5.3. Certification of Enterprise Zones; effective | ||||||
9 | date.
| ||||||
10 | (a) Certification of Board-approved designated Enterprise | ||||||
11 | Zones shall be made by the
Department by certification of the | ||||||
12 | designating ordinance. The Department
shall promptly issue a | ||||||
13 | certificate for each Enterprise Zone upon
approval by the | ||||||
14 | Board. The certificate shall be signed by the Director of the
| ||||||
15 | Department, shall make specific reference to the designating | ||||||
16 | ordinance,
which shall be attached thereto, and shall be filed | ||||||
17 | in the office of the
Secretary of State. A certified copy of | ||||||
18 | the Enterprise Zone Certificate, or
a duplicate original | ||||||
19 | thereof, shall be recorded in the office of recorder
of deeds | ||||||
20 | of the county in which the Enterprise Zone lies.
| ||||||
21 | (b) An Enterprise Zone certified prior to January 1, 2016 | ||||||
22 | or on or after January 1, 2017 shall be effective on January 1 | ||||||
23 | of the first calendar year after Department certification. An | ||||||
24 | Enterprise Zone certified on or after January 1, 2016 and on or | ||||||
25 | before December 31, 2016 shall be effective on the date of the |
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1 | Department's certification. The
Department shall transmit a | ||||||
2 | copy of the certification to the Department
of Revenue, and to | ||||||
3 | the designating municipality or county.
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4 | Upon certification of an Enterprise Zone, the terms and | ||||||
5 | provisions of the
designating ordinance shall be in effect, and | ||||||
6 | may not be amended or repealed
except in accordance with | ||||||
7 | Section 5.4.
| ||||||
8 | (c) With the exception of Enterprise Zones scheduled to | ||||||
9 | expire before December 31, 2018, an Enterprise Zone designated | ||||||
10 | before the effective date of this amendatory Act of the 97th | ||||||
11 | General Assembly shall be in effect for 30 calendar years, or | ||||||
12 | for
a lesser number of years specified in the certified | ||||||
13 | designating ordinance.
Notwithstanding the foregoing, any | ||||||
14 | Enterprise Zone in existence on the effective date of this | ||||||
15 | amendatory Act of the 98th General Assembly that has a term of | ||||||
16 | 20 calendar years may be extended for an additional 10 calendar | ||||||
17 | years upon amendment of the designating ordinance by the | ||||||
18 | designating municipality or county and submission of the | ||||||
19 | ordinance to the Department. The amended ordinance must be | ||||||
20 | properly recorded in the Office of Recorder of Deeds of each | ||||||
21 | county in which the Enterprise Zone lies. Each Enterprise Zone | ||||||
22 | in existence on the effective date of this amendatory Act of | ||||||
23 | the 97th General Assembly that is scheduled to expire before | ||||||
24 | July 1, 2016 may have its termination date extended until July | ||||||
25 | 1, 2016 upon amendment of the designating ordinance by the | ||||||
26 | designating municipality or county extending the termination |
| |||||||
| |||||||
1 | date to July 1, 2016 and submission of the ordinance to the | ||||||
2 | Department. The amended ordinance must be properly recorded in | ||||||
3 | the Office of Recorder of Deeds of each county in which the | ||||||
4 | Enterprise Zone lies. An Enterprise Zone designated on or after | ||||||
5 | the effective date of this amendatory Act of the 97th General | ||||||
6 | Assembly shall be in effect for a term of 15 calendar years, or | ||||||
7 | for a lesser number of years specified in the certified | ||||||
8 | designating ordinance. An enterprise zone designated on or | ||||||
9 | after the effective date of this amendatory Act of the 97th | ||||||
10 | General Assembly shall be subject to review by the Board after | ||||||
11 | 13 years for an additional 10-year designation beginning on the | ||||||
12 | expiration date of the enterprise zone. During the review | ||||||
13 | process, the Board shall consider the costs incurred by the | ||||||
14 | State and units of local government as a result of tax benefits | ||||||
15 | received by the enterprise zone as well as whether the Zone has | ||||||
16 | substantially implemented the plans and achieved the goals set | ||||||
17 | forth in its original application, including satisfaction of | ||||||
18 | the investment and job creation or retention information | ||||||
19 | provided by the Applicant with respect to paragraph (f) of | ||||||
20 | subsection (1) of Section 4 of the Act . Enterprise Zones shall | ||||||
21 | terminate at midnight of December 31 of the final
calendar year | ||||||
22 | of the certified term, except as provided in Section 5.4.
| ||||||
23 | (d) Except for Enterprise Zones authorized under | ||||||
24 | subsection (f), Zones that become available for designation | ||||||
25 | pursuant to Section 10-5.3 of the River Edge Redevelopment Zone | ||||||
26 | Act, or those designated pursuant to another statutory |
| |||||||
| |||||||
1 | authority providing for the creation of Enterprise Zones, no No | ||||||
2 | more than a total of 97 12 Enterprise Zones may be certified by | ||||||
3 | the Department
and in existence in any calendar year 1984, no | ||||||
4 | more than 12 Enterprise Zones may be certified
by the | ||||||
5 | Department in calendar year 1985, no more than 13 Enterprise
| ||||||
6 | Zones may be certified by the Department in calendar year 1986, | ||||||
7 | no
more than 15 Enterprise Zones may be certified by the | ||||||
8 | Department in
calendar year 1987, and no more than 20 | ||||||
9 | Enterprise Zones may be certified
by the Department in calendar | ||||||
10 | year 1990. In other calendar years, no more
than 13 Enterprise | ||||||
11 | Zones may be certified by the Department.
The Department may | ||||||
12 | also designate up to 8 additional Enterprise Zones
outside the | ||||||
13 | regular application cycle if warranted by the extreme economic
| ||||||
14 | circumstances as determined by the Department. The Department | ||||||
15 | may also
designate one additional Enterprise Zone outside the | ||||||
16 | regular application
cycle if an aircraft manufacturer agrees to | ||||||
17 | locate
an aircraft manufacturing facility in the proposed | ||||||
18 | Enterprise Zone.
Notwithstanding any
other provision of this | ||||||
19 | Act, no more than 89 Enterprise Zones may be
certified by the | ||||||
20 | Department for the 10 calendar years commencing with 1983.
The | ||||||
21 | 7 additional Enterprise Zones authorized by Public Act
86-15 | ||||||
22 | shall not lie within municipalities or unincorporated areas of
| ||||||
23 | counties that abut or are contiguous to Enterprise Zones | ||||||
24 | certified pursuant
to this Section prior to June 30, 1989. The | ||||||
25 | 7 additional Enterprise
Zones (excluding the additional | ||||||
26 | Enterprise Zone which may be designated
outside the regular |
| |||||||
| |||||||
1 | application cycle) authorized by Public Act 86-1030
shall not | ||||||
2 | lie within municipalities or unincorporated areas of counties
| ||||||
3 | that abut or are contiguous to Enterprise Zones certified | ||||||
4 | pursuant to this
Section prior to February 28, 1990. Beginning | ||||||
5 | in calendar year 2004 and until
December 31, 2008, one | ||||||
6 | additional enterprise zone may be certified by the
Department . | ||||||
7 | In any calendar year, the
Department
may not certify more than | ||||||
8 | 3 Zones located within the same municipality. The
Department | ||||||
9 | may certify Enterprise Zones in each of the 10 calendar years
| ||||||
10 | commencing with 1983. The Department may not certify more than | ||||||
11 | a total of
18 Enterprise Zones located within the same county | ||||||
12 | (whether within
municipalities or within unincorporated | ||||||
13 | territory) for the 10 calendar years
commencing with 1983. | ||||||
14 | Thereafter, the Department may not certify any
additional | ||||||
15 | Enterprise Zones, but may amend and rescind certifications of
| ||||||
16 | existing Enterprise Zones in accordance with Section 5.4 . | ||||||
17 | Beginning in calendar year 2019 and for any year in which there | ||||||
18 | are at least 4 Zones available for designation, at least 25% of | ||||||
19 | Zones available for designation in a given calendar year must | ||||||
20 | be awarded to Zones located in counties with populations of | ||||||
21 | less than 300,000 unless there are no applicants from such | ||||||
22 | locations for that calendar year.
| ||||||
23 | (e) Notwithstanding any other provision of law, if (i) the | ||||||
24 | county board of
any county in which a current military base is | ||||||
25 | located, in part or in whole, or
in which a military
base that | ||||||
26 | has been closed within 20 years of the effective date of this
|
| |||||||
| |||||||
1 | amendatory Act of 1998 is located, in part or in whole, adopts | ||||||
2 | a designating
ordinance in accordance with Section 5 of this | ||||||
3 | Act to designate the military
base in that county as an | ||||||
4 | enterprise zone and (ii) the property otherwise
meets the
| ||||||
5 | qualifications for an enterprise zone as prescribed in Section | ||||||
6 | 4 of this Act,
then the Department may certify the designating | ||||||
7 | ordinance or ordinances, as the
case may be.
| ||||||
8 | (f) Applications for Enterprise Zones that are scheduled to | ||||||
9 | expire in 2016, including Enterprise Zones that have been | ||||||
10 | extended until 2016 by this amendatory Act of the 97th General | ||||||
11 | Assembly, shall be submitted to the Department no later than | ||||||
12 | December 31, 2014. At that time, the Zone becomes available for | ||||||
13 | either the previously designated area or a different area to | ||||||
14 | compete for designation. No preference for designation as a | ||||||
15 | Zone will be given to the previously designated area. | ||||||
16 | For Enterprise Zones that are scheduled to expire on or | ||||||
17 | after January 1, 2017 and prior to January 1, 2022 , an | ||||||
18 | application process shall begin 2 years prior to the year in | ||||||
19 | which the Zone expires. At that time, the Zone becomes | ||||||
20 | available for either the previously designated area or a | ||||||
21 | different area to compete for designation. For Enterprise Zones | ||||||
22 | that are scheduled to expire on or after January 1, 2022, an | ||||||
23 | application process shall begin 5 years prior to the year in | ||||||
24 | which the Zone expires. At that time, the Zone becomes | ||||||
25 | available for either the previously designated area or a | ||||||
26 | different area to compete for designation. No preference for |
| |||||||
| |||||||
1 | designation as a Zone will be given to the previously | ||||||
2 | designated area. | ||||||
3 | Each Enterprise Zone that reapplies for certification but | ||||||
4 | does not receive a new certification shall expire on its | ||||||
5 | scheduled termination date. | ||||||
6 | (Source: P.A. 98-109, eff. 7-25-13; 99-615, eff. 7-22-16.)
| ||||||
7 | (20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)
| ||||||
8 | Sec. 5.4.
Amendment and Decertification of Enterprise
| ||||||
9 | Zones.
| ||||||
10 | (a) The terms of a certified enterprise zone designating | ||||||
11 | ordinance
may be amended to
| ||||||
12 | (i) alter the boundaries of the Enterprise Zone, or
| ||||||
13 | (ii) expand, limit or repeal tax incentives or benefits | ||||||
14 | provided in
the ordinance, or
| ||||||
15 | (iii) alter the termination date of the zone, or
| ||||||
16 | (iv) make technical corrections in the enterprise zone | ||||||
17 | designating
ordinance; but such amendment shall not be | ||||||
18 | effective unless the
Department issues an amended | ||||||
19 | certificate for the Enterprise Zone, approving
the amended | ||||||
20 | designating ordinance. Upon the adoption of any ordinance
| ||||||
21 | amending or repealing the
terms of a certified enterprise | ||||||
22 | zone designating ordinance, the municipality
or county | ||||||
23 | shall promptly file with the Department an application for | ||||||
24 | approval
thereof, containing substantially the same | ||||||
25 | information as required for an
application under Section |
| |||||||
| |||||||
1 | 5.1 insofar as material to the proposed changes.
The | ||||||
2 | municipality or county must hold a public hearing on the | ||||||
3 | proposed changes
as specified in Section 5 and, if the | ||||||
4 | amendment is to effectuate the
limitation of tax abatements | ||||||
5 | under Section 5.4.1, then the public notice of the
hearing | ||||||
6 | shall state that property that is in both the enterprise | ||||||
7 | zone and a
redevelopment project area may not receive tax | ||||||
8 | abatements unless within 60 days
after the adoption of the | ||||||
9 | amendment to the designating ordinance the
municipality | ||||||
10 | has determined that eligibility for tax abatements has been
| ||||||
11 | established,
| ||||||
12 | (v) include an area within another municipality or | ||||||
13 | county as part of
the designated enterprise zone provided | ||||||
14 | the requirements of Section 4 are
complied with, or
| ||||||
15 | (vi) effectuate the limitation of tax abatements under | ||||||
16 | Section
5.4.1.
| ||||||
17 | (b) The Department shall approve or disapprove a proposed | ||||||
18 | amendment to
a certified enterprise zone within 90 days of its | ||||||
19 | receipt of the application
from the municipality or county. The | ||||||
20 | Department may not approve changes
in a Zone which are not in | ||||||
21 | conformity with this Act, as now or hereafter
amended, or with | ||||||
22 | other applicable laws. If the Department issues an amended
| ||||||
23 | certificate for an Enterprise Zone, the amended certificate, | ||||||
24 | together with
the amended zone designating ordinance, shall be | ||||||
25 | filed, recorded and
transmitted as provided in Section 5.3.
| ||||||
26 | (c) An Enterprise Zone may be decertified by joint action |
| |||||||
| |||||||
1 | of the
Department and the designating county or municipality in | ||||||
2 | accordance with this
Section.
The designating county or | ||||||
3 | municipality shall conduct at least one public
hearing within | ||||||
4 | the zone prior to its adoption of an ordinance of
| ||||||
5 | de-designation. The mayor of the designating municipality or | ||||||
6 | the chairman of
the county
board of the designating county | ||||||
7 | shall execute a joint decertification
agreement with the | ||||||
8 | Department. A decertification of an Enterprise Zone shall
not
| ||||||
9 | become effective until at least 6 months after the execution of | ||||||
10 | the
decertification
agreement, which shall be filed in the | ||||||
11 | office of the Secretary of State.
| ||||||
12 | (d) An Enterprise Zone may be decertified for cause by
the | ||||||
13 | Department in accordance with this Section. Prior to
| ||||||
14 | decertification: (1) the Department shall notify the chief | ||||||
15 | elected official
of the designating county or municipality in | ||||||
16 | writing of the specific
deficiencies which provide cause for | ||||||
17 | decertification; (2) the Department
shall place the | ||||||
18 | designating county or municipality on probationary status for
| ||||||
19 | at least 6 months during which time corrective action may be
| ||||||
20 | achieved in the enterprise zone by the designating county or | ||||||
21 | municipality;
and, (3) the Department
shall conduct at least | ||||||
22 | one public hearing within the zone. If such
corrective action | ||||||
23 | is not achieved during the probationary period, the
Department | ||||||
24 | shall issue an amended certificate
signed by the Director of | ||||||
25 | the Department decertifying the enterprise zone,
which | ||||||
26 | certificate shall be filed in the
office of the Secretary of |
| |||||||
| |||||||
1 | State. A certified copy of the amended
enterprise zone | ||||||
2 | certificate, or a duplicate original thereof, shall be
recorded | ||||||
3 | in the office of recorder of the county in which the enterprise
| ||||||
4 | zone lies, and shall be provided to the chief elected official | ||||||
5 | of the
designating county or municipality. Decertification of | ||||||
6 | an Enterprise Zone
shall not become effective until 60 days | ||||||
7 | after the date of filing.
| ||||||
8 | (d-1) The Department shall provisionally decertify any | ||||||
9 | Enterprise Zone that fails to report any capital investment, | ||||||
10 | job creation or retention, or State tax expenditures for 3 | ||||||
11 | consecutive calendar years. Prior to provisional | ||||||
12 | decertification: (1) the Department shall notify the chief | ||||||
13 | elected official of the designating county or municipality in | ||||||
14 | writing of the specific deficiencies which provide cause for | ||||||
15 | decertification; (2) the Department shall place the | ||||||
16 | designating county or municipality on probationary status for | ||||||
17 | at least 6 months during which time corrective action may be | ||||||
18 | achieved in the Enterprise Zone by the designating county or | ||||||
19 | municipality; and (3) the Department shall conduct at least one | ||||||
20 | public hearing within the Zone. If such corrective action is | ||||||
21 | not achieved during the probationary period, the Department | ||||||
22 | shall issue an amended certificate signed by the Director of | ||||||
23 | the Department provisionally decertifying the Enterprise Zone | ||||||
24 | as of the scheduled termination date of the then-current | ||||||
25 | designation. In the event that the provisionally-decertified | ||||||
26 | Zone was approved and designated after the 97th General |
| |||||||
| |||||||
1 | Assembly and has been in existence for less than 15 years, such | ||||||
2 | Zone shall not be eligible for an additional 10-year | ||||||
3 | designation after the expiration date of the original Zone set | ||||||
4 | forth in subsection (c) of Section 5.3. Further, if such | ||||||
5 | corrective action is not achieved during the probationary | ||||||
6 | period provided for in this Section, following such | ||||||
7 | probationary period the Zone becomes available for a different | ||||||
8 | area to compete for designation. | ||||||
9 | (e) In the event of a decertification, provisional | ||||||
10 | decertification, or an amendment reducing the length
of the | ||||||
11 | term or the area of an Enterprise Zone or the adoption of an | ||||||
12 | ordinance
reducing or eliminating tax benefits in an Enterprise | ||||||
13 | Zone, all benefits
previously extended within the Zone pursuant | ||||||
14 | to this Act or pursuant to
any other Illinois law providing | ||||||
15 | benefits specifically to or within Enterprise
Zones shall | ||||||
16 | remain in effect for the original stated term of the Enterprise
| ||||||
17 | Zone, with respect to business enterprises within the Zone on | ||||||
18 | the effective
date of such decertification , provisional | ||||||
19 | decertification, or amendment, and with respect to individuals
| ||||||
20 | participating in urban homestead
programs under this Act.
| ||||||
21 | (f) Except as otherwise provided in Section 5.4.1, with | ||||||
22 | respect to
business enterprises (or expansions thereof) which
| ||||||
23 | are proposed or under development within a Zone at the time of | ||||||
24 | a
decertification
or an amendment reducing the length of the | ||||||
25 | term of the Zone, or excluding
from the Zone area the site of | ||||||
26 | the proposed enterprise, or an ordinance
reducing or |
| |||||||
| |||||||
1 | eliminating tax benefits in a Zone, such business enterprise
| ||||||
2 | shall be entitled to the benefits previously applicable within | ||||||
3 | the Zone
for the original stated term of the Zone, if the | ||||||
4 | business enterprise
establishes:
| ||||||
5 | (i) that the proposed business enterprise or expansion
| ||||||
6 | has been committed
to be located within the Zone;
| ||||||
7 | (ii) that substantial and binding financial | ||||||
8 | obligations have been made
towards the development of such | ||||||
9 | enterprise; and
| ||||||
10 | (iii) that such commitments have been made in | ||||||
11 | reasonable reliance on
the benefits and programs which were | ||||||
12 | to have been applicable to the enterprise
by reason of the | ||||||
13 | Zone, including in the case of a reduction in term of a
| ||||||
14 | zone, the original length of the term.
| ||||||
15 | In declaratory judgment actions under this paragraph, the | ||||||
16 | Department and
the designating municipality or county shall be | ||||||
17 | necessary parties defendant.
| ||||||
18 | (Source: P.A. 90-258, eff. 7-30-97.)
| ||||||
19 | (20 ILCS 655/8.1) | ||||||
20 | Sec. 8.1. Accounting. | ||||||
21 | (a) Any business receiving tax incentives due to its | ||||||
22 | location within an Enterprise Zone or its designation as a High | ||||||
23 | Impact Business must annually report to the Department of | ||||||
24 | Revenue information reasonably required by the Department of | ||||||
25 | Revenue to enable the Department to verify and calculate the |
| |||||||
| |||||||
1 | total Enterprise Zone or High Impact Business tax benefits for | ||||||
2 | property taxes and taxes imposed by the State that are received | ||||||
3 | by the business, broken down by incentive category and | ||||||
4 | enterprise zone, if applicable. Reports will be due no later | ||||||
5 | than May 31 of each year and shall cover the previous calendar | ||||||
6 | year. The first report will be for the 2012 calendar year and | ||||||
7 | will be due no later than May 31, 2013. Failure to report data | ||||||
8 | may result in ineligibility to receive incentives. To the | ||||||
9 | extent that a business receiving tax incentives has obtained an | ||||||
10 | Enterprise Zone Building Materials Exemption Certificate or a | ||||||
11 | High Impact Business Building Materials Exemption Certificate, | ||||||
12 | that business is required to report those building materials | ||||||
13 | exemption benefits only under subsection (a-5) of this Section. | ||||||
14 | No additional reporting for those building materials exemption | ||||||
15 | benefits is required under this subsection (a). In addition, if | ||||||
16 | the Department determines that 80% or more of the businesses | ||||||
17 | receiving tax incentives because of their location within a | ||||||
18 | particular Enterprise Zone failed to submit the information | ||||||
19 | required under this subsection (a) to the Department in any | ||||||
20 | calendar year, then the Enterprise Zone may be decertified by | ||||||
21 | the Department. The Department, in consultation with the | ||||||
22 | Department of Revenue, is authorized to adopt rules governing | ||||||
23 | ineligibility to receive exemptions, including the length of | ||||||
24 | ineligibility. Factors to be considered in determining whether | ||||||
25 | a business is ineligible shall include, but are not limited to, | ||||||
26 | prior compliance with the reporting requirements, cooperation |
| |||||||
| |||||||
1 | in discontinuing and correcting violations, the extent of the | ||||||
2 | violation, and whether the violation was willful or | ||||||
3 | inadvertent. | ||||||
4 | (a-5) Each contractor or other entity that has been issued | ||||||
5 | an Enterprise Zone Building Materials Exemption Certificate | ||||||
6 | under Section 5k of the Retailers' Occupation Tax Act or a High | ||||||
7 | Impact Business Building Materials Exemption Certificate under | ||||||
8 | Section 5l of the Retailers' Occupation Tax Act shall annually | ||||||
9 | report to the Department of Revenue the total value of the | ||||||
10 | Enterprise Zone or High Impact Business building materials | ||||||
11 | exemption from State taxes. Reports shall contain information | ||||||
12 | reasonably required by the Department of Revenue to enable it | ||||||
13 | to verify and calculate the total tax benefits for taxes | ||||||
14 | imposed by the State, and shall be broken down by Enterprise | ||||||
15 | Zone. Reports are due no later than May 31 of each year and | ||||||
16 | shall cover the previous calendar year. The first report will | ||||||
17 | be for the 2013 calendar year and will be due no later than May | ||||||
18 | 31, 2014. Failure to report data may result in revocation of | ||||||
19 | the Enterprise Zone Building Materials Exemption Certificate | ||||||
20 | or High Impact Business Building Materials Exemption | ||||||
21 | Certificate issued to the contractor or other entity. | ||||||
22 | The Department of Revenue is authorized to adopt rules | ||||||
23 | governing revocation determinations, including the length of | ||||||
24 | revocation. Factors to be considered in revocations shall | ||||||
25 | include, but are not limited to, prior compliance with the | ||||||
26 | reporting requirements, cooperation in discontinuing and |
| |||||||
| |||||||
1 | correcting violations, and whether the certificate was used | ||||||
2 | unlawfully during the preceding year. | ||||||
3 | (b) Each person required to file a return under the Gas | ||||||
4 | Revenue Tax Act, the Gas Use Tax Act, the Electricity Excise | ||||||
5 | Tax Act, or the Telecommunications Excise Tax Act shall file, | ||||||
6 | on or before May 31 of each year, a report with the Department | ||||||
7 | of Revenue, in the manner and form required by the Department | ||||||
8 | of Revenue, containing information reasonably required by the | ||||||
9 | Department of Revenue to enable the Department of Revenue to | ||||||
10 | calculate the amount of the deduction for taxes imposed by the | ||||||
11 | State that is taken under each Act, respectively, due to the | ||||||
12 | location of a business in an Enterprise Zone or its designation | ||||||
13 | as a High Impact Business. The report shall be itemized by | ||||||
14 | business and the business location address. | ||||||
15 | (c) Employers shall report their job creation, retention, | ||||||
16 | and capital investment numbers within the zone annually to the | ||||||
17 | Department of Revenue no later than May 31 of each calendar | ||||||
18 | year. High Impact Businesses shall report their job creation, | ||||||
19 | retention, and capital investment numbers to the Department of | ||||||
20 | Revenue no later than May 31 of each year. With respect to job | ||||||
21 | creation or retention, employers and High Impact Businesses | ||||||
22 | shall use best efforts to submit diversity information related | ||||||
23 | to the gender and ethnicity of such employees. | ||||||
24 | (d) The Department of Revenue will aggregate and collect | ||||||
25 | the tax, job, and capital investment data by Enterprise Zone | ||||||
26 | and High Impact Business and report this information, formatted |
| |||||||
| |||||||
1 | to exclude company-specific proprietary information, to the | ||||||
2 | Department and the Board by August 1, 2013, and by August 1 of | ||||||
3 | every calendar year thereafter. The Department will include | ||||||
4 | this information in their required reports under Section 6 of | ||||||
5 | this Act. The Board shall consider this information during the | ||||||
6 | reviews required under subsection (d-5) of Section 5.4 of this | ||||||
7 | Act and subsection (c) of Section 5.3 of this Act. | ||||||
8 | (e) The Department of Revenue, in its discretion, may | ||||||
9 | require that the reports filed under this Section be submitted | ||||||
10 | electronically. | ||||||
11 | (f) The Department of Revenue shall have the authority to | ||||||
12 | adopt rules as are reasonable and necessary to implement the | ||||||
13 | provisions of this Section.
| ||||||
14 | (Source: P.A. 97-905, eff. 8-7-12; 98-109, eff. 7-25-13.)
| ||||||
15 | Section 99. Effective date. This Act takes effect upon | ||||||
16 | becoming law.
|