Bill Text: IL HB0379 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Service Occupation Tax Act. Makes a technical change in a Section concerning rules.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB0379 Detail]
Download: Illinois-2013-HB0379-Amended.html
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1 | AMENDMENT TO HOUSE BILL 379
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2 | AMENDMENT NO. ______. Amend House Bill 379 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Economic Development for a Growing Economy | ||||||
5 | Tax Credit Act is amended by changing Section 5-15 as follows:
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6 | (35 ILCS 10/5-15) | ||||||
7 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
8 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
9 | or, as described in subsection (g) of this Section, a payment | ||||||
10 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
11 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
12 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
13 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
14 | Department under this Act for that
taxable year. | ||||||
15 | (a) The Department shall make Credit awards under this Act | ||||||
16 | to foster job
creation and retention in Illinois. |
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1 | (b) A person that proposes a project to create new jobs in | ||||||
2 | Illinois must
enter into an Agreement with the
Department for | ||||||
3 | the Credit under this Act. | ||||||
4 | (c) The Credit shall be claimed for the taxable years | ||||||
5 | specified in the
Agreement. | ||||||
6 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
7 | attributable to
the project that is the subject of the | ||||||
8 | Agreement. | ||||||
9 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
10 | Applicant that uses a PEO if all other award criteria are | ||||||
11 | satisfied.
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12 | (f) In lieu of the Credit allowed under this Act against | ||||||
13 | the taxes imposed pursuant to subsections (a) and (b) of | ||||||
14 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
15 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
16 | claim the Credit against its obligation to pay over withholding | ||||||
17 | under Section 704A of the Illinois Income Tax Act. | ||||||
18 | (1) The election under this subsection (f) may be made | ||||||
19 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
20 | the following business activities: water purification and | ||||||
21 | treatment, motor vehicle metal stamping, automobile | ||||||
22 | manufacturing, automobile and light duty motor vehicle | ||||||
23 | manufacturing, motor vehicle manufacturing, light truck | ||||||
24 | and utility vehicle manufacturing, heavy duty truck | ||||||
25 | manufacturing, motor vehicle body manufacturing, cable | ||||||
26 | television infrastructure design or manufacturing, or |
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1 | wireless telecommunication or computing terminal device | ||||||
2 | design or manufacturing for use on public networks and (ii) | ||||||
3 | meets the following criteria: | ||||||
4 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
5 | Illinois net loss deduction under Section 207 of the | ||||||
6 | Illinois Income Tax Act for the taxable year in which | ||||||
7 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
8 | full-time employees in this State during the taxable | ||||||
9 | year in which the Credit is awarded, (iii) has an | ||||||
10 | Agreement under this Act on December 14, 2009 (the | ||||||
11 | effective date of Public Act 96-834), and (iv) is in | ||||||
12 | compliance with all provisions of that Agreement; | ||||||
13 | (B) the Taxpayer (i) had an Illinois net loss or an | ||||||
14 | Illinois net loss deduction under Section 207 of the | ||||||
15 | Illinois Income Tax Act for the taxable year in which | ||||||
16 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
17 | full-time employees in this State during the taxable | ||||||
18 | year in which the Credit is awarded, and (iii) has | ||||||
19 | applied for an Agreement within 365 days after December | ||||||
20 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
21 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
22 | loss carryforward under Section 207 of the Illinois | ||||||
23 | Income Tax Act in a taxable year ending during calendar | ||||||
24 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
25 | days after the effective date of this amendatory Act of | ||||||
26 | the 96th General Assembly, (iii) creates at least 400 |
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1 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
2 | in Illinois that would have been at risk of relocation | ||||||
3 | out of Illinois over a 10-year period, and (v) makes a | ||||||
4 | capital investment of at least $75,000,000; | ||||||
5 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
6 | loss carryforward under Section 207 of the Illinois | ||||||
7 | Income Tax Act in a taxable year ending during calendar | ||||||
8 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
9 | days after the effective date of this amendatory Act of | ||||||
10 | the 96th General Assembly, (iii) creates at least 150 | ||||||
11 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
12 | that would have been at risk of relocation out of | ||||||
13 | Illinois over a 10-year period, and (v) makes a capital | ||||||
14 | investment of at least $57,000,000; or | ||||||
15 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
16 | full-time employees in the State during the year in | ||||||
17 | which the Credit is awarded, (ii) commits to make at | ||||||
18 | least $500,000,000 in combined capital improvements | ||||||
19 | and project costs under the Agreement, (iii) applies | ||||||
20 | for an Agreement between January 1, 2011 and June 30, | ||||||
21 | 2011, (iv) executes an Agreement for the Credit during | ||||||
22 | calendar year 2011, and (v) was incorporated no more | ||||||
23 | than 5 years before the filing of an application for an | ||||||
24 | Agreement. | ||||||
25 | (1.5) The election under this subsection (f) may also | ||||||
26 | be made by a Taxpayer for any Credit awarded pursuant to an |
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1 | agreement that was executed between January 1, 2011 and | ||||||
2 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
3 | the manufacture of inner tubes or tires, or both, from | ||||||
4 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
5 | 2,400 full-time employees in Illinois at the time of | ||||||
6 | application, (iii) creates at least 350 full-time jobs and | ||||||
7 | retains at least 250 full-time jobs in Illinois that would | ||||||
8 | have been at risk of being created or retained outside of | ||||||
9 | Illinois, and (iv) makes a capital investment of at least | ||||||
10 | $200,000,000 at the project location. | ||||||
11 | (1.6) The election under this subsection (f) may also | ||||||
12 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
13 | agreement that was executed within 150 days after the | ||||||
14 | effective date of this amendatory Act of the 97th General | ||||||
15 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
16 | operation of a discount department store, (ii) maintains | ||||||
17 | its corporate headquarters in Illinois, (iii) employs a | ||||||
18 | minimum of 4,250 full-time employees at its corporate | ||||||
19 | headquarters in Illinois at the time of application, (iv) | ||||||
20 | retains at least 4,250 full-time jobs in Illinois that | ||||||
21 | would have been at risk of being relocated outside of | ||||||
22 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
23 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
24 | least $300,000,000 at the project location. | ||||||
25 | (1.7) Notwithstanding any other provision of law, the | ||||||
26 | election under this subsection (f) may also be made by a |
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1 | Taxpayer for any Credit awarded pursuant to an agreement | ||||||
2 | that was executed or applied for on or after July 1, 2011 | ||||||
3 | and on or before March 31, 2012, if the Taxpayer is | ||||||
4 | primarily engaged in the manufacture of original and | ||||||
5 | aftermarket filtration parts and products for automobiles, | ||||||
6 | motor vehicles, light duty motor vehicles, light trucks and | ||||||
7 | utility vehicles, and heavy duty trucks, (ii) employs a | ||||||
8 | minimum of 1,000 full-time employees in Illinois at the | ||||||
9 | time of application, (iii) creates at least 250 full-time | ||||||
10 | jobs in Illinois, (iv) relocates its corporate | ||||||
11 | headquarters to Illinois from another state, and (v) makes | ||||||
12 | a capital investment of at least $4,000,000 at the project | ||||||
13 | location. | ||||||
14 | (1.8) The election under this subsection (f) may also | ||||||
15 | be made if: | ||||||
16 | (i) the agreement awarding the Credit was executed | ||||||
17 | on or after the effective date of this amendatory Act | ||||||
18 | of the 98th General Assembly but not later than 150 | ||||||
19 | days after the effective date of this amendatory Act of | ||||||
20 | the 98th General Assembly; | ||||||
21 | (ii) the taxpayer is primarily engaged in retail | ||||||
22 | and business-to-business office products distribution, | ||||||
23 | sales, and service; | ||||||
24 | (iii) the taxpayer maintains its corporate | ||||||
25 | headquarters in Illinois; | ||||||
26 | (iv) the taxpayer employs a minimum of 2,050 |
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1 | full-time employees at its corporate headquarters and | ||||||
2 | non-retail corporate locations in Illinois at the time | ||||||
3 | of application; | ||||||
4 | (v) the taxpayer retains at least 2,050 full-time | ||||||
5 | jobs in Illinois that would have been at risk of being | ||||||
6 | relocated outside of Illinois as a result of a business | ||||||
7 | combination with a third party; | ||||||
8 | (vi) the taxpayer creates at least 200 full-time | ||||||
9 | jobs in Illinois as a result of a business combination | ||||||
10 | with a third party; | ||||||
11 | (vii) the taxpayer's total aggregate revenue, when | ||||||
12 | combined with that third party, was at least | ||||||
13 | $17,500,000,000 in 2012; and | ||||||
14 | (viii) the taxpayer makes a capital investment of | ||||||
15 | at least $150,000,000 at the project location. | ||||||
16 | (2) An election under this subsection shall allow the | ||||||
17 | credit to be taken against payments otherwise due under | ||||||
18 | Section 704A of the Illinois Income Tax Act during the | ||||||
19 | first calendar year beginning after the end of the taxable | ||||||
20 | year in which the credit is awarded under this Act. | ||||||
21 | (3) The election shall be made in the form and manner | ||||||
22 | required by the Illinois Department of Revenue and, once | ||||||
23 | made, shall be irrevocable. | ||||||
24 | (4) If a Taxpayer who meets the requirements of | ||||||
25 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
26 | elects to claim the Credit against its withholdings as |
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1 | provided in this subsection (f), then, on and after the | ||||||
2 | date of the election, the terms of the Agreement between | ||||||
3 | the Taxpayer and the Department may not be further amended | ||||||
4 | during the term of the Agreement. | ||||||
5 | (g) A pass-through entity that has been awarded a credit | ||||||
6 | under this Act, its shareholders, or its partners may treat | ||||||
7 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
8 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
9 | "tax payment" means a payment as described in Article 6 or | ||||||
10 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
11 | made by a pass-through entity on behalf of any of its | ||||||
12 | shareholders or partners to satisfy such shareholders' or | ||||||
13 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
14 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
15 | the amount of the award credited pursuant to this Act exceed | ||||||
16 | the Illinois income tax liability of the pass-through entity or | ||||||
17 | its shareholders or partners for the taxable year. | ||||||
18 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
19 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
20 | 3-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12 .)
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21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
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