Bill Text: IL SB3796 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Enterprise Zone Act. Provides that a business which intends to establish a new battery energy storage solution facility at a designated location in Illinois may receive a designation as a High Impact Business. Provides that "new battery energy storage solution facility" means a newly constructed battery energy storage facility, a newly constructed expansion of an existing battery energy storage facility, or the replacement of an existing battery energy storage facility that stores electricity using battery devices and other means, and such facility shall be deemed to include any permanent structures associated with the battery energy storage facility and all associated transmission lines, substations, and other equipment related to the storage and transmission of electric power that has a capacity of not less than 100 megawatt and storage capability of not less than 200 megawatt hours of energy.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB3796 Detail]

Download: Illinois-2023-SB3796-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3796 Introduced 2/9/2024, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED:
20 ILCS 655/5.5 from Ch. 67 1/2, par. 609.1
Amends the Illinois Enterprise Zone Act. Provides that a business which intends to establish a new battery energy storage solution facility at a designated location in Illinois may receive a designation as a High Impact Business. Provides that "new battery energy storage solution facility" means a newly constructed battery energy storage facility, a newly constructed expansion of an existing battery energy storage facility, or the replacement of an existing battery energy storage facility that stores electricity using battery devices and other means, and such facility shall be deemed to include any permanent structures associated with the battery energy storage facility and all associated transmission lines, substations, and other equipment related to the storage and transmission of electric power that has a capacity of not less than 100 megawatt and storage capability of not less than 200 megawatt hours of energy.
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A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 as follows:
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth, and expansion of
the private sector through large scale investment and
development projects, the Department is authorized to receive
and approve applications for the designation of "High Impact
Businesses" in Illinois, for an initial term of 20 years with
an option for renewal for a term not to exceed 20 years,
subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act;
(3) the business intends to do, commits to do, or is
one or more of the following:
(A) the business intends to make a minimum

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investment of $12,000,000 which will be placed in
service in qualified property and intends to create
500 full-time equivalent jobs at a designated location
in Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time retained jobs at a designated location in
Illinois. The terms "placed in service" and "qualified
property" have the same meanings as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly constructed
electric generation plant or a newly constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)
shall have an aggregate rated generating capacity of
at least 1,000 megawatts for all new units at one site

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if it uses natural gas as its primary fuel and
foundation construction of the facility is commenced
on or before December 31, 2004, or shall have an
aggregate rated generating capacity of at least 400
megawatts for all new units at one site if it uses coal
or gases derived from coal as its primary fuel and
shall support the creation of at least 150 new
Illinois coal mining jobs, or (ii) shall be funded
through a federal Department of Energy grant before
December 31, 2010 and shall support the creation of
Illinois coal mining coal-mining jobs, or (iii) shall
use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal mining coal-mining jobs.
The term "placed in service" has the same meaning as
described in subsection (h) of Section 201 of the
Illinois Income Tax Act; or
(B-5) the business intends to establish a new
gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol,
and nitrogen fertilizer), that supports the creation

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or retention of Illinois coal mining coal-mining jobs,
and that qualifies for financial assistance from the
Department before December 31, 2010. A new
gasification facility does not include a pilot project
located within Jefferson County or within a county
adjacent to Jefferson County for synthetic natural gas
from coal; or
(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of
150 new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The term "placed in service" has
the same meaning as described in subsection (h) of
Section 201 of the Illinois Income Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines

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with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of
delivery and that transmit a majority of the
electricity generated by a new electric generating
facility designated as a High Impact Business in
accordance with this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power
facility" means a newly constructed electric
generation facility, a newly constructed expansion of
an existing electric generation facility, or the
replacement of an existing electric generation
facility, including the demolition and removal of an
electric generation facility irrespective of whether
it will be replaced, placed in service or replaced on
or after July 1, 2009, that generates electricity
using wind energy devices, and such facility shall be
deemed to include any permanent structures associated
with the electric generation facility and all
associated transmission lines, substations, and other
equipment related to the generation of electricity

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from wind energy devices. For purposes of this
Section, "wind energy device" means any device, with a
nameplate capacity of at least 0.5 megawatts, that is
used in the process of converting kinetic energy from
the wind to generate electricity; or
(E-5) the business intends to establish a new
utility-scale solar facility at a designated location
in Illinois. For purposes of this Section, "new
utility-scale solar power facility" means a newly
constructed electric generation facility, or a newly
constructed expansion of an existing electric
generation facility, placed in service on or after
July 1, 2021, that (i) generates electricity using
photovoltaic cells and (ii) has a nameplate capacity
that is greater than 5,000 kilowatts, and such
facility shall be deemed to include all associated
transmission lines, substations, energy storage
facilities, and other equipment related to the
generation and storage of electricity from
photovoltaic cells; or
(F) the business commits to (i) make a minimum
investment of $500,000,000, which will be placed in
service in a qualified property, (ii) create 125
full-time equivalent jobs at a designated location in
Illinois, (iii) establish a fertilizer plant at a
designated location in Illinois that complies with the

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set-back standards as described in Table 1: Initial
Isolation and Protective Action Distances in the 2012
Emergency Response Guidebook published by the United
States Department of Transportation, (iv) pay a
prevailing wage for employees at that location who are
engaged in construction activities, and (v) secure an
appropriate level of general liability insurance to
protect against catastrophic failure of the fertilizer
plant or any of its constituent systems; in addition,
the business must agree to enter into a construction
project labor agreement including provisions
establishing wages, benefits, and other compensation
for employees performing work under the project labor
agreement at that location; for the purposes of this
Section, "fertilizer plant" means a newly constructed
or upgraded plant utilizing gas used in the production
of anhydrous ammonia and downstream nitrogen
fertilizer products for resale; for the purposes of
this Section, "prevailing wage" means the hourly cash
wages plus fringe benefits for training and
apprenticeship programs approved by the U.S.
Department of Labor, Bureau of Apprenticeship and
Training, health and welfare, insurance, vacations and
pensions paid generally, in the locality in which the
work is being performed, to employees engaged in work
of a similar character on public works; this paragraph

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(F) applies only to businesses that submit an
application to the Department within 60 days after
July 25, 2013 (the effective date of Public Act
98-109); or
(G) the business intends to establish a new
cultured cell material food production facility at a
designated location in Illinois. As used in this
paragraph (G):
"Cultured cell material food production facility"
means a facility (i) at which cultured animal cell
food is developed using animal cell culture
technology, (ii) at which production processes occur
that include the establishment of cell lines and cell
banks, manufacturing controls, and all components and
inputs, and (iii) that complies with all existing
registrations, inspections, licensing, and approvals
from all applicable and participating State and
federal food agencies, including the Department of
Agriculture, the Department of Public Health, and the
United States Food and Drug Administration, to ensure
that all food production is safe and lawful under
provisions of the Federal Food, Drug and Cosmetic Act
related to the development, production, and storage of
cultured animal cell food.
"New cultured cell material food production
facility" means a newly constructed cultured cell

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material food production facility that is placed in
service on or after June 7, 2023 (the effective date of
Public Act 103-9) this amendatory Act of the 103rd
General Assembly or a newly constructed expansion of
an existing cultured cell material food production
facility, in a controlled environment, when the
improvements are placed in service on or after June 7,
2023 (the effective date of Public Act 103-9) this
amendatory Act of the 103rd General Assembly; or and
(H) (G) the business is an existing or planned
grocery store, as that term is defined in Section 5 of
the Grocery Initiative Act, and receives financial
support under that Act within the 10 years before
submitting its application under this Act; or and
(I) the business intends to establish a new
battery energy storage solution facility at a
designated location in Illinois. As used in this
paragraph (I):
"New battery energy storage solution facility"
means a newly constructed battery energy storage
facility, a newly constructed expansion of an existing
battery energy storage facility, or the replacement of
an existing battery energy storage facility that
stores electricity using battery devices and other
means, and such facility shall be deemed to include
any permanent structures associated with the battery

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energy storage facility and all associated
transmission lines, substations, and other equipment
related to the storage and transmission of electric
power that has a capacity of not less than 100 megawatt
and storage capability of not less than 200 megawatt
hours of energy; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of
the Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 9-222 and Section 9-222.1A of the
Public Utilities Act, subsection (h) of Section 201 of the
Illinois Income Tax Act, and Section 1d of the Retailers'
Occupation Tax Act; provided that these credits and exemptions
described in these Acts shall not be authorized until the
minimum investments set forth in subdivision (a)(3)(A) of this
Section have been placed in service in qualified properties
and, in the case of the exemptions described in the Public
Utilities Act and Section 1d of the Retailers' Occupation Tax
Act, the minimum full-time equivalent jobs or full-time
retained jobs set forth in subdivision (a)(3)(A) of this
Section have been created or retained. Businesses designated
as High Impact Businesses under this Section shall also

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qualify for the exemption described in Section 5l of the
Retailers' Occupation Tax Act. The credit provided in
subsection (h) of Section 201 of the Illinois Income Tax Act
shall be applicable to investments in qualified property as
set forth in subdivision (a)(3)(A) of this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
(a)(3)(D), and (a)(3)(G), and (a)(3)(H) of this Section shall
qualify for the credits and exemptions described in the
following Acts: Section 51 of the Retailers' Occupation Tax
Act, Section 9-222 and Section 9-222.1A of the Public
Utilities Act, and subsection (h) of Section 201 of the
Illinois Income Tax Act; however, the credits and exemptions
authorized under Section 9-222 and Section 9-222.1A of the
Public Utilities Act, and subsection (h) of Section 201 of the
Illinois Income Tax Act shall not be authorized until the new
electric generating facility, the new gasification facility,
the new transmission facility, the new, expanded, or reopened
coal mine, or the new cultured cell material food production
facility, or the existing or planned grocery store is
operational, except that a new electric generating facility
whose primary fuel source is natural gas is eligible only for
the exemption under Section 5l of the Retailers' Occupation
Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) or (a)(3)(E-5) of this

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Section shall qualify for the exemptions described in Section
5l of the Retailers' Occupation Tax Act; any business so
designated as a High Impact Business being, for purposes of
this Section, a "Wind Energy Business".
(b-7) Beginning on January 1, 2021, businesses designated
as High Impact Businesses by the Department shall qualify for
the High Impact Business construction jobs credit under
subsection (h-5) of Section 201 of the Illinois Income Tax Act
if the business meets the criteria set forth in subsection (i)
of this Section. The total aggregate amount of credits awarded
under the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E), (a)(3)(E-5), or (a)(3)(G), or (a)(3)(H) of this
Section, existing Illinois businesses which apply for
designation as a High Impact Business must provide the
Department with the prospective plan for which 1,500 full-time
retained jobs would be eliminated in the event that the
business is not designated.
(e) Except for new businesses contemplated under

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

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provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(i) High Impact Business construction jobs credit.
Beginning on January 1, 2021, a High Impact Business may
receive a tax credit against the tax imposed under subsections
(a) and (b) of Section 201 of the Illinois Income Tax Act in an
amount equal to 50% of the amount of the incremental income tax
attributable to High Impact Business construction jobs credit
employees employed in the course of completing a High Impact
Business construction jobs project. However, the High Impact
Business construction jobs credit may equal 75% of the amount
of the incremental income tax attributable to High Impact
Business construction jobs credit employees if the High Impact
Business construction jobs credit project is located in an
underserved area.
The Department shall certify to the Department of Revenue:
(1) the identity of taxpayers that are eligible for the High
Impact Business construction jobs credit; and (2) the amount
of High Impact Business construction jobs credits that are
claimed pursuant to subsection (h-5) of Section 201 of the
Illinois Income Tax Act in each taxable year. Any business
entity that receives a High Impact Business construction jobs
credit shall maintain a certified payroll pursuant to

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subsection (j) of this Section.
As used in this subsection (i):
"High Impact Business construction jobs credit" means an
amount equal to 50% (or 75% if the High Impact Business
construction project is located in an underserved area) of the
incremental income tax attributable to High Impact Business
construction job employees. The total aggregate amount of
credits awarded under the Blue Collar Jobs Act (Article 20 of
Public Act 101-9) shall not exceed $20,000,000 in any State
fiscal year
"High Impact Business construction job employee" means a
laborer or worker who is employed by an Illinois contractor or
subcontractor in the actual construction work on the site of a
High Impact Business construction job project.
"High Impact Business construction jobs project" means
building a structure or building or making improvements of any
kind to real property, undertaken and commissioned by a
business that was designated as a High Impact Business by the
Department. The term "High Impact Business construction jobs
project" does not include the routine operation, routine
repair, or routine maintenance of existing structures,
buildings, or real property.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of High Impact
Business construction job employees.
"Underserved area" means a geographic area that meets one

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or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
(j) Each contractor and subcontractor who is engaged in
and executing a High Impact Business construction Construction
jobs project, as defined under subsection (i) of this Section,
for a business that is entitled to a credit pursuant to
subsection (i) of this Section shall:
(1) make and keep, for a period of 5 years from the
date of the last payment made on or after June 5, 2019 (the
effective date of Public Act 101-9) on a contract or
subcontract for a High Impact Business construction jobs
project Construction Jobs Project, records for all
laborers and other workers employed by the contractor or

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subcontractor on the project; the records shall include:
(A) the worker's name;
(B) the worker's address;
(C) the worker's telephone number, if available;
(D) the worker's social security number;
(E) the worker's classification or
classifications;
(F) the worker's gross and net wages paid in each
pay period;
(G) the worker's number of hours worked each day;
(H) the worker's starting and ending times of work
each day;
(I) the worker's hourly wage rate;
(J) the worker's hourly overtime wage rate;
(K) the worker's race and ethnicity; and
(L) the worker's gender;
(2) no later than the 15th day of each calendar month,
provide a certified payroll for the immediately preceding
month to the taxpayer in charge of the High Impact
Business construction jobs project; within 5 business days
after receiving the certified payroll, the taxpayer shall
file the certified payroll with the Department of Labor
and the Department of Commerce and Economic Opportunity; a
certified payroll must be filed for only those calendar
months during which construction on a High Impact Business
construction jobs project has occurred; the certified

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payroll shall consist of a complete copy of the records
identified in paragraph (1) of this subsection (j), but
may exclude the starting and ending times of work each
day; the certified payroll shall be accompanied by a
statement signed by the contractor or subcontractor or an
officer, employee, or agent of the contractor or
subcontractor which avers that:
(A) he or she has examined the certified payroll
records required to be submitted by the Act and such
records are true and accurate; and
(B) the contractor or subcontractor is aware that
filing a certified payroll that he or she knows to be
false is a Class A misdemeanor.
A general contractor is not prohibited from relying on a
certified payroll of a lower-tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification.
Any contractor or subcontractor subject to this
subsection, and any officer, employee, or agent of such
contractor or subcontractor whose duty as an officer,
employee, or agent it is to file a certified payroll under this
subsection, who willfully fails to file such a certified
payroll on or before the date such certified payroll is
required by this paragraph to be filed and any person who
willfully files a false certified payroll that is false as to
any material fact is in violation of this Act and guilty of a

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Class A misdemeanor.
The taxpayer in charge of the project shall keep the
records submitted in accordance with this subsection on or
after June 5, 2019 (the effective date of Public Act 101-9) for
a period of 5 years from the date of the last payment for work
on a contract or subcontract for the High Impact Business
construction jobs project.
The records submitted in accordance with this subsection
shall be considered public records, except an employee's
address, telephone number, and social security number, and
made available in accordance with the Freedom of Information
Act. The Department of Labor shall share the information with
the Department in order to comply with the awarding of a High
Impact Business construction jobs credit. A contractor,
subcontractor, or public body may retain records required
under this Section in paper or electronic format.
(k) Upon 7 business days' notice, each contractor and
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in this subsection (j) to the taxpayer in
charge of the High Impact Business construction jobs project,
its officers and agents, the Director of the Department of
Labor and his or her deputies and agents, and to federal,
State, or local law enforcement agencies and prosecutors.
(l) The changes made to this Section by Public Act
102-1125 this amendatory Act of the 102nd General Assembly,

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