Bill Amendment: IL SB3527 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: RIVER EDGE REDEVELOPMENT TAX

Status: 2018-07-26 - Public Act . . . . . . . . . 100-0629 [SB3527 Detail]

Download: Illinois-2017-SB3527-House_Amendment_002.html

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Rep. Jehan Gordon-Booth

Filed: 5/28/2018

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AMENDMENT TO SENATE BILL 3527
AMENDMENT NO. ______. Amend Senate Bill 3527, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 1. Short title. This Act may be cited as the
Historic Preservation Tax Credit Act.
Section 5. Definitions. As used in this Act, unless the
context clearly indicates otherwise:
"Division" means the Department of Natural Resources
Historic Preservation Division.
"Placed in service" means that the appropriate work has
been completed which would allow for occupancy of either the
entire building or some identifiable portion of the building.
"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

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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.
"Qualified expenditures" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code that were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means any structure that is
located in Illinois and is defined as a certified historic
structure under Section 47 (c)(3) of the federal Internal
Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Division and the National Park Service as being
consistent with the standards in effect on the effective date
of this Act as adopted by the federal Secretary of the
Interior.
"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who may qualify for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code.
"Recapture event" means that, during any taxable year
within the recapture period, the qualified historic structure
is sold or ceases to be business-use property. For
partnerships, a recapture event shall occur when a partner
sells or disposes of all or a part of her or his partnership

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interest in the qualified historic structure. If a partner's
interest in the partnership is reduced to less than two-thirds
of what it was when the property for which the Historic
Preservation Tax Credit is claimed was placed in service, then
the reduction is treated as a proportional disposition of the
property.
The following dispositions of a qualified historic
structure are not a recapture event for purposes of this
Section:
(1) a transfer by reason of death;
(2) a transfer between spouses incident to divorce;
(3) a sale by and leaseback to an entity that, when the
rehabilitated portions of the qualified historic structure
are placed in service, will be a lessee of the qualified
historic structure, but only for so long as the entity
continues to be a lessee; and
(4) a mere change in the form of conducting the trade
or business by the owner (or, if applicable, the lessee) of
the qualified historic structure, so long as the property
interest in such qualified historic structure is retained
in such a trade or business and the owner or lessee retains
a substantial interest in such a trade or business.
"Recapture period" means the 5-year period beginning on the
date that the qualified historic structure or rehabilitated
portions of the qualified historic structure are placed in
service.

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"Substantial rehabilitation" means that the qualified
rehabilitation expenditures during the 24-month period
selected by the taxpayer at the time and in the manner
prescribed by rule and ending with or within the taxable year
exceed the greater of (i) the adjusted basis of the building
and its structural components or (ii) $5,000. The adjusted
basis of the building and its structural components shall be
determined as of the beginning of the first day of such
24-month period or as of the beginning of the first day of the
holding period of the building, whichever is later. For
purposes of determining the adjusted basis, the determination
of the beginning of the holding period shall be made without
regard to any reconstruction by the taxpayer in connection with
the rehabilitation. In the case of any rehabilitation which may
reasonably be expected to be completed in phases set forth in
architectural plans and specifications completed before the
rehabilitation begins, this definition shall be applied by
substituting "60-month period" for "24-month period" wherever
that term occurs in the definition.
Section 10. Allowable credit.
(a) To the extent authorized by this Act, for taxable years
beginning on or after January 1, 2019 and ending on or before
December 31, 2023, there shall be allowed a tax credit against
the tax imposed by subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act in an aggregate amount equal to 25%

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of qualified expenditures incurred by a qualified taxpayer
undertaking a qualified rehabilitation plan of a qualified
historic structure, provided that the total amount of such
expenditures must (i) equal $5,000 or more or (ii) exceed the
adjusted basis of the qualified historic structure on the first
day the qualified rehabilitation plan commenced. If the
qualified rehabilitation plan spans multiple years, the
aggregate credit for the entire project shall be allowed in the
last taxable year. The qualified taxpayer must pay a prevailing
wage to employees who are engaged in construction, as
"construction" is defined in the Prevailing Wage Act, pursuant
to a qualified rehabilitation plan.
(b) To obtain a tax credit pursuant to this Section, the
taxpayer must apply with the Division. The Division shall
determine the amount of eligible rehabilitation expenditures
within 45 days after receipt of a complete application. The
taxpayer must provide to the Division a third-party cost
certification conducted by a certified public accountant
verifying (i) the qualified and non-qualified rehabilitation
expenses and (ii) that the qualified expenditures exceed the
adjusted basis of the qualified historic structure on the first
day the qualified rehabilitation plan commenced. The
accountant shall provide for appropriate review and testing of
invoices. The Division is authorized, but not required, to
accept this third-party cost certification to determine the
amount of qualified expenditures. The Division and the National

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Park Service shall determine whether the rehabilitation is
consistent with the Standards of the Secretary of the United
States Department of the Interior.
(c) If the amount of any tax credit awarded under this Act
exceeds the qualified taxpayer's income tax liability for the
year in which the qualified rehabilitation plan was placed in
service, the excess amount may be carried forward for deduction
from the taxpayer's income tax liability in the next succeeding
year or years until the total amount of the credit has been
used, except that a credit may not be carried forward for
deduction after the twentieth taxable year after the taxable
year in which the qualified rehabilitation plan was placed in
service. Upon completion and review of the project, the
Division shall issue a single certificate in the amount of the
eligible credits equal to 25% of the qualified expenditures
incurred during the eligible taxable years. At the time the
certificate is issued, an issuance fee up to the maximum amount
of 2% of the amount of the credits issued by the certificate
may be collected from the applicant to administer the Act. If
collected, this issuance fee shall be directed to the Division
Historic Property Administrative Fund or other such fund as
appropriate for the administration of the Historic
Preservation Tax Credit Program. The taxpayer must attach the
certificate or legal documentation of her or his proportional
share of the certificate to the tax return on which the credits
are to be claimed. The tax credit under this Section may not

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reduce the taxpayer's liability to less than zero. If the
amount of the credit exceeds the tax liability for the year,
the excess credit may be carried forward and applied to the tax
liability of the 20 taxable years following the excess credit
year.
(d) If the taxpayer is (i) a corporation having an election
in effect under Subchapter S of the federal Internal Revenue
Code, (ii) a partnership, or (iii) a limited liability company,
the credit provided under this Act may be claimed by the
shareholders of the corporation, the partners of the
partnership, or the members of the limited liability company in
the same manner as those shareholders, partners, or members
account for their proportionate shares of the income or losses
of the corporation, partnership, or limited liability company,
or as provided in the by-laws or other executed agreement of
the corporation, partnership, or limited liability company.
Credits granted to a partnership, a limited liability company
taxed as a partnership, or other multiple owners of property
shall be passed through to the partners, members, or owners
respectively on a pro rata basis or pursuant to an executed
agreement among the partners, members, or owners documenting
any alternate distribution method.
(e) If a recapture event occurs during the recapture period
with respect to a qualified historic structure, then for any
taxable year in which the credits are allowed as specified in
this Act, the tax under the applicable section of this Act

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shall be increased by applying the recapture percentage set
forth below to the tax decrease resulting from the application
of credits allowed under this Act to the taxable year in
question.
For the purposes of this subsection, the recapture
percentage shall be determined as follows:
(1) if the recapture event occurs within the first year
after commencement of the recapture period, then the
recapture percentage is 100%;
(2) if the recapture event occurs within the second
year after commencement of the recapture period, then the
recapture percentage is 80%;
(3) if the recapture event occurs within the third year
after commencement of the recapture period, then the
recapture percentage is 60%;
(4) if the recapture event occurs within the fourth
year after commencement of the recapture period, then the
recapture percentage is 40%; and
(5) if the recapture event occurs within the fifth year
after commencement of the recapture period, then the
recapture percentage is 20%.
In the case of any recapture event, the carryforwards under
this Act shall be adjusted by reason of such event.
(d) The Division may adopt rules to implement this Section
in addition to the rules expressly authorized herein.

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Section 20. Limitations, reporting, and monitoring.
(a) The Division shall award not more than an aggregate of
$15,000,000 in total annual tax credits pursuant to qualified
rehabilitation plans for qualified historic structures. The
Division shall award not more than $3,000,000 in tax credits
with regard to a single qualified rehabilitation plan. In
awarding tax credits under this Act, the Division must
prioritize projects that meet one or more of the following:
(1) the qualified historic structure is located in a
county that borders a State with a historic property
rehabilitation credit;
(2) the qualified historic structure was previously
owned by a federal, State, or local governmental entity;
(3) the qualified historic structure is located in a
census tract that has a median family income at or below
the State median family income; data from the most recent
5-year estimate from the American Community Survey (ACS),
published by the U.S. Census Bureau, shall be used to
determine eligibility;
(4) the qualified rehabilitation plan includes in the
development partnership a Community Development Entity or
a low-profit (B Corporation) or not-for-profit
organization, as defined by Section 501(c)(3) of the
Internal Revenue Code; or
(5) the qualified historic structure is located in an
area declared under an Emergency Declaration or Major

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Disaster Declaration under the federal Robert T. Stafford
Disaster Relief and Emergency Assistance Act.
(b) The annual aggregate program allocation of $15,000,000
set forth in subsection (a) shall be allocated by the Division,
in such proportion as determined by the Department, on a per
calendar basis twice in each year that the program is in
effect, provided that: (i) the amount initially allocated by
the Division for any one calendar application period shall not
exceed 65% of the total allowable amount and (ii) any portion
of the allocated allowable amount remaining unused as of the
end of any of the second calendar application period of a given
calendar year shall be rolled into and added to the total
allocated amount for the next available calendar year. The
qualified rehabilitation plan must meet a readiness test, as
defined in the rules created by the Division, in order for the
Applicant to qualify. Applicants that qualify under this Act
will be placed in a queue based on the date and time the
application is received until such time as the application
period total allowable amount is reached. Applicants must
reapply for each application period.
(c) On or before December 31, 2019, and on or before
December 31 of each year thereafter through 2023, subject to
appropriation and prior to equal disbursement to the Division,
moneys in the Historic Property Administrative Fund shall be
used, on an annual basis beginning at the end of the first
fiscal year after the effective date of this Act, to hire a

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qualified third party to prepare an annual report to assess the
overall effectiveness of this Act from the qualified
rehabilitation projects under this Act completed in that year
and in previous years. Baseline data of the metrics in the
report shall be collected at the initiation of a qualified
rehabilitation project. The overall economic impact shall
include at least:
(1) the number of applications, project locations, and
proposed use of qualified historic structures;
(2) the amount of credits awarded and the number and
location of projects receiving credit allocations;
(3) the status of ongoing projects and projected
qualifying expenditures for ongoing projects;
(4) for completed projects, the total amount of
qualifying rehabilitation expenditures and non-qualifying
expenditures, the number of housing units created and the
number of housing units that qualify as affordable, and the
total square footage rehabilitated and developed;
(5) direct, indirect, and induced economic impacts;
(6) temporary, permanent, and construction jobs
created; and
(7) sales, income, and property tax generation before
construction, during construction, and after completion.
The report to the General Assembly shall be filed with the
Clerk of the House of Representatives and the Secretary of the
Senate in electronic form only, in the manner that the Clerk

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and the Secretary shall direct.
(d) Any time prior to issuance of a tax credit certificate,
the Director of the Division, the State Historic Preservation
Officer, or staff of the Division may, upon reasonable notice
to the project owner of not less than 3 business days, conduct
a site visit to the project to inspect and evaluate the
project.
(e) Any time prior to the issuance of a tax credit
certificate and for a period of 4 years following the effective
date of a project tax credit certificate, the Director may,
upon reasonable notice of not less than 30 calendar days,
request a status report from the Applicant consisting of
information and updates relevant to the status of the project.
Status reports shall not be requested more than twice yearly.
(f) In order to demonstrate sufficient evidence of
reviewable progress within 12 months after the date the
Applicant received notification of approval from the Division,
the Applicant shall provide all of the following:
(1) a viable financial plan which demonstrates by way
of an executed agreement that all financing has been
secured for the project; such financing shall include, but
not be limited to, equity investment as demonstrated by
letters of commitment from the owner of the property,
investment partners, and equity investors;
(2) final construction drawings or approved building
permits that demonstrate the complete rehabilitation of

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the full scope of the application; and
(3) all historic approvals, including all federal and
State rehabilitation documents required by the Division.
The Director shall review the submitted evidence and may
request additional documentation from the Applicant if
necessary. The Applicant will have 30 calendar days to provide
the information requested, otherwise the approval may be
rescinded at the discretion of the Director.
(g) In order to demonstrate sufficient evidence of
reviewable progress within 18 months after the date the
application received notification of approval from the
Division, the Applicant is required to provide detailed
evidence that the Applicant has secured and closed on financing
for the complete scope of rehabilitation for the project. To
demonstrate evidence that the Applicant has secured and closed
on financing, the Applicant will need to provide signed and
processed loan agreements, bank financing documents or other
legal and contractual evidence to demonstrate that adequate
financing is available to complete the project. The Director
shall review the submitted evidence and may request additional
documentation from the Applicant if necessary. The Applicant
will have 30 calendar days to provide the information
requested, otherwise the approval may be rescinded at the
discretion of the Director.
If the Applicant fails to document reviewable progress
within 18 months of approval, the Director may notify the

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Applicant that the application is rescinded. However, should
financing and construction be imminent, the Director may elect
to grant the Applicant no more than 5 months to close on
financing and commence construction. If the Applicant fails to
meet these conditions in the required timeframe, the Director
shall notify the Applicant that the application is rescinded.
Any such rescinded allocation shall be added to the aggregate
amount of credits available for allocation for the year in
which the forfeiture occurred.
The amount of the qualified expenditures identified in the
Applicant's certification of completion and reflected on the
Historic Preservation Tax Credit certificate issued by the
Director is subject to inspection, examination, and audit by
the Department of Revenue.
The Applicant shall establish and maintain for a period of
4 years following the effective date on a project tax credit
certificate such records as required by the Director. Such
records include, but are not limited to, records documenting
project expenditures and compliance with the U.S. Secretary of
the Interior's Standards. The Applicant shall make such records
available for review and verification by the Director, the
State Historic Preservation Officer, the Department of
Revenue, or appropriate staff, as well as other appropriate
State agencies. In the event the Director determines an
Applicant has submitted an annual report containing erroneous
information or data not supported by records established and

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maintained under this Act, the Director may, after providing
notice, require the Applicant to resubmit corrected reports.
Section 25. Powers. The Division shall adopt rules for the
administration of this Act.
Section 900. The Illinois Income Tax Act is amended by
changing Section 221 and by adding Section 227 as follows:
(35 ILCS 5/221)
Sec. 221. Rehabilitation costs; qualified historic
properties; River Edge Redevelopment Zone.
(a) For taxable years that begin beginning on or after
January 1, 2012 and begin ending prior to January 1, 2018
January 1, 2022, there shall be allowed a tax credit against
the tax imposed by subsections (a) and (b) of Section 201 of
this Act in an amount equal to 25% of qualified expenditures
incurred by a qualified taxpayer during the taxable year in the
restoration and preservation of a qualified historic structure
located in a River Edge Redevelopment Zone pursuant to a
qualified rehabilitation plan, provided that the total amount
of such expenditures (i) must equal $5,000 or more and (ii)
must exceed 50% of the purchase price of the property.
(a-1) For taxable years that begin on or after January 1,
2018 and end prior to January 1, 2022, there shall be allowed a
tax credit against the tax imposed by subsections (a) and (b)

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of Section 201 of this Act in an aggregate amount equal to 25%
of qualified expenditures incurred by a qualified taxpayer in
the restoration and preservation of a qualified historic
structure located in a River Edge Redevelopment Zone pursuant
to a qualified rehabilitation plan, provided that the total
amount of such expenditures must (i) equal $5,000 or more and
(ii) exceed the adjusted basis of the qualified historic
structure on the first day the qualified rehabilitation plan
begins. For any rehabilitation project, regardless of duration
or number of phases, the project's compliance with the
foregoing provisions (i) and (ii) shall be determined based on
the aggregate amount of qualified expenditures for the entire
project and may include expenditures incurred under subsection
(a), this subsection, or both subsection (a) and this
subsection. If the qualified rehabilitation plan spans
multiple years, the aggregate credit for the entire project
shall be allowed in the last taxable year, except for phased
rehabilitation projects, which may receive credits upon
completion of each phase. Before obtaining the first phased
credit: (A) the total amount of such expenditures must meet the
requirements of provisions (i) and (ii) of this subsection; (B)
the rehabilitated portion of the qualified historic structure
must be placed in service; and (C) the requirements of
subsection (b) must be met.
(b) To obtain a tax credit pursuant to this Section, the
taxpayer must apply with the Department of Natural Resources

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Commerce and Economic Opportunity. The Department of Natural
Resources Commerce and Economic Opportunity, in consultation
with the Historic Preservation Agency, shall determine the
amount of eligible rehabilitation costs and expenses within 45
days of receipt of a complete application. The taxpayer must
submit a certification of costs prepared by an independent
certified public accountant that certifies (i) the project
expenses, (ii) whether those expenses are qualified
expenditures, and (iii) that the qualified expenditures exceed
the adjusted basis of the qualified historic structure on the
first day the qualified rehabilitation plan commenced. The
Department of Natural Resources is authorized, but not
required, to accept this certification of costs to determine
the amount of qualified expenditures and the amount of the
credit. The Department of Natural Resources shall provide
guidance as to the minimum standards to be followed in the
preparation of such certification. The Department of Natural
Resources and the National Park Service Historic Preservation
Agency shall determine whether the rehabilitation is
consistent with the United States Secretary of the Interior's
Standards for Rehabilitation the standards of the Secretary of
the United States Department of the Interior for
rehabilitation.
(b-1) Upon completion and review of the project and
approval of the complete application, the Department of Natural
Resources Commerce and Economic Opportunity shall issue a

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single certificate in the amount of the eligible credits equal
to 25% of qualified expenditures incurred during the eligible
taxable years, as defined in subsections (a) and (a-1),
excepting any credits awarded under subsection (a) prior to the
effective date of this amendatory Act of the 100th General
Assembly and any phased credits issued prior to the eligible
taxable year under subsection (a-1). At the time the
certificate is issued, an issuance fee up to the maximum amount
of 2% of the amount of the credits issued by the certificate
may be collected from the applicant to administer the
provisions of this Section. If collected, this issuance fee
shall be deposited into the Historic Property Administrative
Fund, a special fund created in the State treasury. Subject to
appropriation, moneys in the Historic Property Administrative
Fund shall be provided to the Department of Natural Resources
as reimbursement evenly divided between the Department of
Commerce and Economic Opportunity and the Historic
Preservation Agency to reimburse the Department of Commerce and
Economic Opportunity and the Historic Preservation Agency for
the costs associated with administering this Section. The
taxpayer must attach the certificate to the tax return on which
the credits are to be claimed. The Department of Commerce and
Economic Opportunity may adopt rules to implement this Section.
(c) The taxpayer must attach the certificate to the tax
return on which the credits are to be claimed. The tax credit
under this Section may not reduce the taxpayer's liability to

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less than zero. If the amount of the credit exceeds the tax
liability for the year, the excess credit may be carried
forward and applied to the tax liability of the 5 taxable years
following the excess credit year.
(c-1) Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be used, on a biennial basis
beginning at the end of the second fiscal year after the
effective date of this amendatory Act of the 100th General
Assembly, to hire a qualified third party to prepare a biennial
report to assess the overall economic impact to the State from
the qualified rehabilitation projects under this Section
completed in that year and in previous years. The overall
economic impact shall include at least: (1) the direct and
indirect or induced economic impacts of completed projects; (2)
temporary, permanent, and construction jobs created; (3)
sales, income, and property tax generation before, during
construction, and after completion; and (4) indirect
neighborhood impact after completion. The report shall be
submitted to Governor and the General Assembly. The report to
the General Assembly shall be filed with the Clerk of the House
of Representatives and the Secretary of the Senate in
electronic form only, in the manner that the Clerk and the
Secretary shall direct.
(c-2) The Department of Natural Resources may adopt rules
to implement this Section in addition to the rules expressly
authorized in this Section.

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(d) As used in this Section, the following terms have the
following meanings.
"Phased rehabilitation" means a project that is completed
in phases as defined under Section 47 of the federal Internal
Revenue Code and pursuant to National Park Service regulations
at 36 C.F.R. 67.
"Placed in service" means the date when the property is
placed in a condition or state of readiness and availability
for a specifically assigned function as defined under Section
47 of the federal Internal Revenue Code and federal Treasury
Regulation Sections 1.46 and 1.48.
"Qualified expenditure" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code that were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means a certified historic
structure as defined under Section 47(c)(3) of the federal
Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Department of Natural Resources and the
National Park Service Historic Preservation Agency as being
consistent with the United States Secretary of the Interior's
Standards for Rehabilitation standards in effect on the
effective date of this amendatory Act of the 97th General
Assembly for rehabilitation as adopted by the federal Secretary
of the Interior.

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"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who qualifies for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code with respect to that qualified
historic structure. Partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if the
limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 703 and subchapter S of the Internal
Revenue Code, provided that credits granted to a partnership, a
limited liability company taxed as a partnership, or other
multiple owners of property shall be passed through to the
partners, members, or owners respectively on a pro rata basis
or pursuant to an executed agreement among the partners,
members, or owners documenting any alternate distribution
method.
(Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)
(35 ILCS 5/227 new)
Sec. 227. Historic preservation credit. For tax years
beginning on or after January 1, 2019 and ending on or before
December 31, 2023, a taxpayer who qualifies for a credit under
the Historic Preservation Tax Credit Act is entitled to a
credit against the taxes imposed under subsections (a) and (b)

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of Section 201 of this Act as provided in that Act. If the
taxpayer is a partnership or Subchapter S corporation, the
credit shall be allowed to the partners or shareholders in
accordance with the determination of income and distributive
share of income under Sections 702 and 704 and Subchapter S of
the Internal Revenue Code. If the amount of any tax credit
awarded under this Section exceeds the qualified taxpayer's
income tax liability for the year in which the qualified
rehabilitation plan was placed in service, the excess amount
may be carried forward as provided in the Historic Preservation
Tax Credit Act.
Section 905. The Prevailing Wage Act is amended by changing
Section 2 as follows:
(820 ILCS 130/2) (from Ch. 48, par. 39s-2)
Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed or
demolished by any public body, or paid for wholly or in part

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out of public funds. "Public works" as defined herein includes
all projects financed in whole or in part with bonds, grants,
loans, or other funds made available by or through the State or
any of its political subdivisions, including but not limited
to: bonds issued under the Industrial Project Revenue Bond Act
(Article 11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois Finance
Authority Act, the Illinois Sports Facilities Authority Act, or
the Build Illinois Bond Act; loans or other funds made
available pursuant to the Build Illinois Act; loans or other
funds made available pursuant to the Riverfront Development
Fund under Section 10-15 of the River Edge Redevelopment Zone
Act; or funds from the Fund for Illinois' Future under Section
6z-47 of the State Finance Act, funds for school construction
under Section 5 of the General Obligation Bond Act, funds
authorized under Section 3 of the School Construction Bond Act,
funds for school infrastructure under Section 6z-45 of the
State Finance Act, and funds for transportation purposes under
Section 4 of the General Obligation Bond Act. "Public works"
also includes (i) all projects financed in whole or in part
with funds from the Department of Commerce and Economic
Opportunity under the Illinois Renewable Fuels Development
Program Act for which there is no project labor agreement; (ii)
all work performed pursuant to a public private agreement under
the Public Private Agreements for the Illiana Expressway Act or
the Public-Private Agreements for the South Suburban Airport

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Act; and (iii) all projects undertaken under a public-private
agreement under the Public-Private Partnerships for
Transportation Act. "Public works" also includes all projects
at leased facility property used for airport purposes under
Section 35 of the Local Government Facility Lease Act. "Public
works" also includes the construction of a new wind power
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
"Public works" also includes projects for which a tax credit
has been awarded under the Historic Preservation Tax Credit
Act. "Public works" does not include work done directly by any
public utility company, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes any corrective
action performed pursuant to Title XVI of the Environmental
Protection Act for which payment from the Underground Storage
Tank Fund is requested. "Public works" does not include
projects undertaken by the owner at an owner-occupied
single-family residence or at an owner-occupied unit of a
multi-family residence. "Public works" does not include work
performed for soil and water conservation purposes on
agricultural lands, whether or not done under public
supervision or paid for wholly or in part out of public funds,
done directly by an owner or person who has legal control of
those lands.
"Construction" means all work on public works involving

10000SB3527ham002 - 25 - LRB100 20468 HLH 40922 a
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the public
works efficiently and properly, "locality" includes any other
county nearest the one in which the work or construction is to
be performed and from which such persons may be obtained in
sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or in
part by public funds, and includes every county, city, town,
village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
The terms "general prevailing rate of hourly wages",

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"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
annualized 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.
(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
98-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
7-16-14.)".