Bill Amendment: IL SB0652 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: NEW MARKETS-REQUIREMENTS

Status: 2017-08-25 - Public Act . . . . . . . . . 100-0408 [SB0652 Detail]

Download: Illinois-2017-SB0652-House_Amendment_003.html

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Rep. Lou Lang

Filed: 5/28/2017

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AMENDMENT TO SENATE BILL 652
AMENDMENT NO. ______. Amend Senate Bill 652 on page 1, line
5, after "40,", by inserting "45,"; and
on page 5, line 10, by replacing "$50,000,000 $20,000,000" with
"$20,000,000"; and
on page 10, immediately below line 18, by inserting the
following:
"(g) Allocation rounds enabled by this Act shall be applied
for according to the following schedule:
(1) on January 2, 2019, $125,000,000 of qualified
equity investments; and
(2) on January 2, 2020, $125,000,000 of qualified
equity investments."; and
on page 14, line 10, after "business.", by inserting "This
Section is not intended to affect ownership or affiliate

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interests that arise following the sixth anniversary of the
issuance of the qualified equity investment."; and
on page 14, immediately below line 10, by inserting the
following:
"(20 ILCS 663/45)
Sec. 45. Examination and Rulemaking.
(a) The Department may conduct examinations to verify that
the tax credits under this Act have been received and applied
according to the requirements of this Act and to verify that no
event has occurred that would result in a recapture of tax
credits under Section 40.
(b) The Department and the Department of Revenue shall have
the authority to adopt rules under the Act. The Department and
the Department of Revenue, in adopting rules, shall endeavor to
make the administration of the Act compatible with the
administration of the federal New Markets Tax Credit program.
Adopted rules shall only apply to qualified equity investments
in effect as of the application date set forth under subsection
(g) of Section 25 of this Act for such qualified equity
investment. Neither the Department nor the Department of
Revenue shall have the authority to promulgate rules under the
Act, but the Department and the Department of Revenue shall
have the authority to issue advisory letters to individual
qualified community development entities and their investors

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that are limited to the specific facts outlined in an advisory
letter request from a qualified community development entity.
Such rulings cannot be relied upon by any person or entity
other than the qualified community development entity that
requested the letter and the taxpayers that are entitled to any
tax credits generated from investments in such entity. For
purposes of this subsection, "rules" is given the meaning
contained in Section 1-70 of the Illinois Administrative
Procedure Act.
(c) In rendering advisory letters and making other
determinations under this Act, to the extent applicable, the
Department and the Department of Revenue shall look for
guidance to Section 45D of the Internal Revenue Code of 1986,
as amended, and the rules, and regulations, policies, and
allocation agreement provisions issued thereunder.
(d) The Department may impose an administrative penalty on
any qualified community development entity that violates the
provisions of this Act or any adopted rule hereunder where
recapture of credits is not a remedy. The penalty shall be
$15,000 for each violation. Penalties shall be subject to a
notice and cure period of not less than 30 days wherein a
qualified community development entity shall be notified in
writing of the violation and be given the opportunity to cure
the violation. Each week a violation continues or occurs past
such 30-day period is a separate violation. A qualified
community development entity that has been assessed a penalty

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may petition the Department for an administrative hearing to
contest the basis of the administrative penalty. The
Department's final decision imposing an administrative penalty
is a final order and subject to the Administrative Review Law.
The Department shall not certify any qualified equity
investment in a qualified community development entity (or in
an affiliate thereof) that has not satisfied an administrative
penalty or has been assessed in aggregate $105,000 or more in
administrative penalties within the prior 2 calendar years.
(Source: P.A. 95-1024, eff. 12-31-08.)"; and
on page 15, by replacing lines 6 through 22 with the following:
"(20 ILCS 663/55 new)
Sec. 55. Annual report. Each qualified community
development entity shall submit an annual report to the
Department within 45 days after the beginning of each calendar
year during the compliance period. No annual report shall be
due prior to the first anniversary of the initial credit
allowance date. The report shall include, but is not limited
to, the following:
(1) an attestation from an authorized officer of the
qualified community development entity that the entity has
not been the subject of any investigation by a government
agency relating to tax credits or financial services during
the preceding calendar year;

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(2) information with respect to all qualified
low-income community investments made by the qualified
community development entity, including:
(A) the date and amount of, and bank statements or
wire transfer reports documenting, such qualified
low-income community investments;
(B) the name, address, and EIN of each qualified
active low-income community business funded by the
qualified community development entity, the number of
persons employed by such business at the time of the
initial investment, and a brief description of the
business, the financing, and community benefits of the
financing; and
(C) the number of employment positions maintained
by each qualified active low-income community business
as of the date of report or the end of the preceding
calendar year and the average annual salaries of such
positions; and
(D) the total number of employment positions
created and retained as a result of qualified
low-income community investments and the average
annual salaries of those positions; and
(3) any changes with respect to the taxpayers entitled
to claim tax credits with respect to qualified equity
investments issued by the qualified community development
entity since its last report pursuant to this Section.

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The qualified community development entity is not required
to provide the annual report set forth in this Section for
qualified low-income community investments that have been
redeemed or repaid.".