Bill Text: IL HB3333 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Economic Development for a Growing Economy (EDGE) Tax Credit Act. Requires EDGE tax credit agreements between the Department of Commerce and Economic Opportunity and applicants to contain a provision requiring the applicant to maintain, beyond the period during which it receives the EDGE tax credit, employment payrolls at an agreed upon level. Provides that if employment payrolls are not maintained at that level for the specified term, then the taxpayer must pay an administrative penalty to the Department and shall not, until having paid that penalty, be eligible for credits against obligations imposed by the Illinois Income Tax Act. Provides for an additional penalty for taxpayers that fail to maintain employment levels due to outsourcing. Requires the Department to deposit into the General Revenue Fund all moneys collected as a result of these penalties and to notify the Department of Revenue when a taxpayer, because of the operation of these provisions, becomes ineligible or eligible for credits against obligations imposed under the Illinois Income Tax Act. Amends the State Comptroller Act to require the Comptroller, at the direction of the Department of Commerce and Economic Opportunity, to deduct these penalties from certain warrants and payments made to the taxpayer, and to pay those amounts over to the Department for deposit into the General Revenue Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3333 Detail]

Download: Illinois-2011-HB3333-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3333 Introduced 2/24/2011, by Rep. Eddie Lee Jackson, Sr. SYNOPSIS AS INTRODUCED:
15 ILCS 405/10.05c new
35 ILCS 10/5-50
35 ILCS 10/5-67 new
Amends the Economic Development for a Growing Economy (EDGE) Tax Credit Act. Requires EDGE tax credit agreements between the Department of Commerce and Economic Opportunity and applicants to contain a provision requiring the applicant to maintain, beyond the period during which it receives the EDGE tax credit, employment payrolls at an agreed upon level. Provides that if employment payrolls are not maintained at that level for the specified term, then the taxpayer must pay an administrative penalty to the Department and shall not, until having paid that penalty, be eligible for credits against obligations imposed by the Illinois Income Tax Act. Provides for an additional penalty for taxpayers that fail to maintain employment levels due to outsourcing. Requires the Department to deposit into the General Revenue Fund all moneys collected as a result of these penalties and to notify the Department of Revenue when a taxpayer, because of the operation of these provisions, becomes ineligible or eligible for credits against obligations imposed under the Illinois Income Tax Act. Amends the State Comptroller Act to require the Comptroller, at the direction of the Department of Commerce and Economic Opportunity, to deduct these penalties from certain warrants and payments made to the taxpayer, and to pay those amounts over to the Department for deposit into the General Revenue Fund. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Comptroller Act is amended by adding
Section 10.05c as follows:
(15 ILCS 405/10.05c new)
Sec. 10.05c. Deductions from warrants and payments for
satisfaction of EDGE employment penalty. At the direction of
the Department of Commerce and Economic Opportunity, the
Comptroller shall deduct from a warrant or other payment
described in Section 10.05 of this Act, in accordance with the
procedures provided therein, and pay over to the Department of
Commerce and Economic Opportunity, for deposit into the General
Revenue Fund, that amount certified as necessary to satisfy, in
whole or in part, amounts due and owing from a Taxpayer under
Section 5-67 of the Economic Development for a Growing Economy
Tax Credit Act.
Section 10. The Economic Development for a Growing Economy
Tax Credit Act is amended by changing Section 5-50 and by
adding Section 5-67 as follows:
(35 ILCS 10/5-50)

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Sec. 5-50. Contents of Agreements with Applicants. The
Department shall enter into an Agreement with an Applicant that
is awarded a Credit under this Act. The Agreement must include
all of the following:
(1) A detailed description of the project that is the
subject of the Agreement, including the location and amount
of the investment and jobs created or retained.
(2) The duration of the Credit and the first taxable
year for which the Credit may be claimed.
(3) The Credit amount that will be allowed for each
taxable year.
(4) A requirement that the Taxpayer shall maintain
operations at the project location that shall be stated as
a minimum number of years not to exceed 10.
(5) A specific method for determining the number of New
Employees employed during a taxable year.
(6) A requirement that the Taxpayer shall annually
report to the Department the number of New Employees, the
Incremental Income Tax withheld in connection with the New
Employees, and any other information the Director needs to
perform the Director's duties under this Act.
(7) A requirement that the Director is authorized to
verify with the appropriate State agencies the amounts
reported under paragraph (6), and after doing so shall
issue a certificate to the Taxpayer stating that the
amounts have been verified.

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(8) A requirement that the Taxpayer shall provide
written notification to the Director not more than 30 days
after the Taxpayer makes or receives a proposal that would
transfer the Taxpayer's State tax liability obligations to
a successor Taxpayer.
(9) A detailed description of the number of New
Employees to be hired, and the occupation and payroll of
the full-time jobs to be created or retained as a result of
the project.
(10) The minimum investment the business enterprise
will make in capital improvements, the time period for
placing the property in service, and the designated
location in Illinois for the investment.
(11) A requirement that the Taxpayer shall provide
written notification to the Director and the Committee not
more than 30 days after the Taxpayer determines that the
minimum job creation or retention, employment payroll, or
investment no longer is being or will be achieved or
maintained as set forth in the terms and conditions of the
Agreement.
(12) A provision that, if the total number of New
Employees falls below a specified level, the allowance of
Credit shall be suspended until the number of New Employees
equals or exceeds the Agreement amount.
(13) A detailed description of the items for which the
costs incurred by the Taxpayer will be included in the

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limitation on the Credit provided in Section 5-30.
(13.5) A provision (i) requiring the Taxpayer to
maintain, for an agreed upon term lasting beyond the term
during which the Credit is received, employment payrolls at
a level agreed upon with the Department and (ii) specifying
that the Taxpayer must pay the penalty specified in Section
5-67 if it does not maintain employment payrolls at that
level for the agreed upon term.
(14) Any other performance conditions or contract
provisions as the Department determines are appropriate.
(Source: P.A. 91-476, eff. 8-11-99.)
(35 ILCS 10/5-67 new)
Sec. 5-67. EDGE employment penalty. If a Taxpayer fails to
maintain employment payrolls at the level and for the term
specified by agreement under item (13.5) of Section 5-50, then
the Taxpayer must pay an administrative penalty to the
Department in an amount that the Department shall establish by
rule, and shall not, until having paid that penalty in full, be
eligible for any credit to offset obligations imposed under the
Illinois Income Tax Act. Taxpayers who fail to maintain
employment payrolls at the level and for the term specified by
agreement under item (13.5) of Section 5-50 due to labor
outsourcing to other states, other countries, or both, shall
pay an additional administrative penalty to the Department in
an amount that the Department shall establish by rule. The

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Department shall deposit into the General Revenue Fund all
moneys collected under this Section 5-67, and shall notify the
Department of Revenue when a Taxpayer, because of the operation
of this Section, becomes ineligible or eligible for credits
against obligations imposed under the Illinois Income Tax Act.
Section 99. Effective date. This Act takes effect upon
becoming law.