Bill Text: IL HB3967 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Energy Community Reinvestment Act. Provides that the Department of Commerce and Economic Opportunity shall designate certain regions impacted by the decline of coal generation, gas generation, nuclear generation, and coal mining as Clean Energy Empowerment Zones. Creates the Energy Workforce Development Program and Energy Community Development Program. Creates the Clean Energy Empowerment Zone Tax Credit Act. Creates a tax credit for applicants operating a business in the State that hires a former energy worker or graduate or trainee from an equity-focused workforce training program designated by the Illinois Power Agency as a new employee. Creates a tax credit for applicants operating a renewable energy enterprise that proposes a project to create new jobs and invest in the development of a renewable energy production facility in a Clean Energy Empowerment Zone. Creates the Coal Severance Fee Act. Provides for a tax upon any person engaged in the business of severing or preparing coal for sale, profit, or commercial use if the coal is severed from a mine located in the State. Amends the Illinois Administrative Procedure Act to allow for emergency rulemaking. Amends the State Finance Act to create the Energy Community Reinvestment Fund. Amends the Illinois Income Tax Act, the Public Utilities Act, the Environmental Protection Act, and the Illinois Nuclear Facility Safety Act by making changes to implement certain programs. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2022-02-18 - Rule 19(a) / Re-referred to Rules Committee [HB3967 Detail]

Download: Illinois-2021-HB3967-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3967 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED:
See Index
Creates the Energy Community Reinvestment Act. Provides that the Department of Commerce and Economic Opportunity shall designate certain regions impacted by the decline of coal generation, gas generation, nuclear generation, and coal mining as Clean Energy Empowerment Zones. Creates the Energy Workforce Development Program and Energy Community Development Program. Creates the Clean Energy Empowerment Zone Tax Credit Act. Creates a tax credit for applicants operating a business in the State that hires a former energy worker or graduate or trainee from an equity-focused workforce training program designated by the Illinois Power Agency as a new employee. Creates a tax credit for applicants operating a renewable energy enterprise that proposes a project to create new jobs and invest in the development of a renewable energy production facility in a Clean Energy Empowerment Zone. Creates the Coal Severance Fee Act. Provides for a tax upon any person engaged in the business of severing or preparing coal for sale, profit, or commercial use if the coal is severed from a mine located in the State. Amends the Illinois Administrative Procedure Act to allow for emergency rulemaking. Amends the State Finance Act to create the Energy Community Reinvestment Fund. Amends the Illinois Income Tax Act, the Public Utilities Act, the Environmental Protection Act, and the Illinois Nuclear Facility Safety Act by making changes to implement certain programs. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1. Findings
Section 1-5. Findings. The General Assembly finds that:
(a) The growing clean energy economy in Illinois can be a
vehicle for expanding equitable access to public health,
safety, a cleaner environment, quality jobs, economic
opportunity, and wealth-building, particularly in economically
disadvantaged communities and communities of black,
indigenous, and people of color that have had to bear the
disproportionate burden of dirty fossil fuel pollution.
(b) Placing Illinois on a path to 100% renewable energy is
vital to a clean energy future. To bring this vision to
fruition, our energy policy must prioritize a just transition
that incentivizes renewable development and other
carbon-reducing policies, such as energy efficiency,
beneficial electrification, and peak demand reduction, while
ensuring that the benefits and opportunities of a carbon-free
future are accessible in economically disadvantaged
communities, environmental justice communities, and
communities of black, indigenous, and people of color.
(c) In the wake of federal reversals on climate action,

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the State of Illinois should pursue immediate action on
policies that will ensure a just and responsible phase out of
fossil fuels from the power sector to reduce harmful emissions
from Illinois power plants, support power plant communities
and workers, and allow the clean energy economy to continue
growing in every corner of Illinois.
(d) Illinois needs to adopt a broad-based policy approach
to decarbonize Illinois' electric sector (including
electricity production and consumption) in a just and
equitable manner that puts our State on track to phase out
carbon dioxide emitting power plants by 2030.
(e) Illinois' policy approach must ensure the reduction of
co-pollutant emissions that cause serious local health
impacts, prioritizing environmental justice communities near
power plants.
(f) As we decarbonize Illinois' electric sector, Illinois
must create new investment to stimulate the economic and
environmental well-being of communities disproportionately
impacted by the historical operation of, and recent or
expected closures of, fossil fuel power plants and coal mining
operations.
ARTICLE 5. Energy Community Reinvestment Act
Section 5-1. Short title. This Article may be cited as the
Energy Community Reinvestment Act. References in this Article

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to "this Act" mean this Article.
Section 5-5. Findings. The General Assembly finds that, as
part of putting Illinois on a path to 100% renewable energy,
the State of Illinois should ensure a just transition to that
goal, providing support for the transition of Illinois'
communities and workers impacted by closures or reduced use of
fossil fuel power plants, nuclear power plants, or coal mines
by allocating new economic development resources for business
tax incentives, workforce training, site clean-up and reuse,
and local tax revenue replacement.
The General Assembly finds and declares that the health,
safety, and welfare of the people of this State are dependent
upon a healthy economy and vibrant communities; that the
closure of fossil fuel power plants, nuclear power plants, and
coal mines across the State have a significant impact on their
surrounding communities; that the expansion of renewable
energy creates significant job growth and contributes
significantly to the health, safety, and welfare of the people
of this State; that the continual encouragement, development,
growth, and expansion of renewable energy within the State
requires a cooperative and continuous partnership between
government and the renewable energy sector; and that there are
certain areas in this State that have lost, or will lose, jobs
due to the closure of fossil fuel power plants, nuclear power
plants, and coal mines and need the particular attention of

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government, labor, and the residents of Illinois to help
attract new investment into these areas and directly aid the
local community and its residents.
Therefore, it is declared to be the purpose of this Act to
explore ways of stimulating the growth of new private
investment, including renewable energy investment, in this
State and to foster job growth in areas impacted by the closure
of coal energy plants, coal mines, and nuclear energy plants.
Section 5-10. Definitions. As used in this Act, unless the
context otherwise requires:
"State agencies" or "agencies" has the same meaning as
"State agencies" under Section 1-7 of the Illinois State
Auditing Act.
"Board" means the Clean Energy Empowerment Zone Board
created in Section 5-20.
"Clean Energy Empowerment Zone" or "Empowerment Zones"
means an area of the State certified by the Department as a
Clean Energy Empowerment Zone under this Act.
"Commission" means the Energy Transition Workforce
Commission created in Section 5-45.
"Department" means the Department of Commerce and Economic
Opportunity.
"Displaced energy worker" means an energy worker who has
lost employment, or is anticipated by the Department to lose
employment within the next 2 years, due to the reduced

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operation or closure of a fossil fuel power plant, nuclear
power plant, or coal mine.
"Energy worker" means a person who has been employed
full-time for a period of one year or longer, and within the
previous 5 years, at a fossil fuel power plant, a nuclear power
plant, or a coal mine located within the State of Illinois,
whether or not they are employed by the owner of the power
plant or mine. Energy workers are considered to be full-time
if they work at least 35 hours per week for 45 weeks a year or
the 1,820 work-hour equivalent with vacations, paid holidays,
and sick time, but not overtime, included in this computation.
Classification of an individual as an energy worker continues
for 5 years from the latest date of employment or the effective
date of this Act, whichever is later.
"Environmental justice communities" means the definition
of that term based on existing methodologies and findings,
used and as may be updated by the Illinois Power Agency and its
program administrator in the Illinois Solar for All Program.
"Fossil fuel power plant" means an electric generating
facility powered by gas, coal, other fossil fuels, or a
combination thereof.
"Low-income" means persons and families whose income does
not exceed 80% of area median income, adjusted for family size
and revised every 2 years.
"Local labor market area" means an economically integrated
area within which individuals reside and find employment

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within a reasonable distance of their places of residence or
can readily change jobs without changing their places of
residence.
"Renewable energy enterprise" means a company that is
engaged in the production, manufacturing, distribution, or
development of renewable energy resources and associated
technologies.
"Renewable energy project" means a project conducted by a
renewable energy enterprise for the purpose of generating
renewable energy resources or energy storage.
"Renewable energy resources" has the meaning set forth in
Section 1-10 of the Illinois Power Agency Act.
"Rule" has the meaning set forth in Section 1-70 of the
Illinois Administrative Procedure Act.
Section 5-15. Designation of Clean Energy Empowerment
Zones.
(a) Purpose. It is the intent of the General Assembly that
designation of a community as a Clean Energy Empowerment Zone
shall be reserved for communities that have experienced
economic or environmental hardship due to the energy
transition or fossil fuel power generation and extraction. The
purpose of this Section 5-45 is to establish an efficient and
equitable process by which the Department and communities
across the State may seek the designation of Clean Energy
Empowerment Zones, thereby allowing for economic and

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environmental benefits of the clean energy economy to be
obtained by communities that have been deprived of these
benefits. The process conducted by the Department, the Board,
and participating units of local government shall be as
transparent and inclusive as is reasonably practical.
(b) Notification of local governments. Within 30 days
after the effective date of this Act, the Department shall
publish a notice on its website stating its intention to begin
the review of potential locations for Clean Energy Empowerment
Zone regional designations, and solicit information from the
public on this topic. Within 45 days after the effective date
of this Act, the Department shall submit a notice to the county
board of each jurisdiction in which a fossil fuel power plant,
coal mine, or nuclear power plant is located, informing the
local governments of their intention to develop a list of
Clean Energy Empowerment Zones, providing a basic explanation
of the benefits of designation as a Clean Energy Empowerment
Zone, and informing them of participation opportunities in the
designation process. The Department may notify other persons
or local government units of this process at any time.
(c) Proposed list of Clean Energy Empowerment Zones.
Within 120 days after the effective date of this Act, the
Department of Commerce and Economic Opportunity shall develop
a proposed list of geographic regions in Illinois that qualify
as Clean Energy Empowerment Zones. The Department shall work
with the Illinois Environmental Protection Agency, the

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Commission on Environmental Justice, the Department of Labor,
the Department of Natural Resources, and community
organizations to identify regions impacted by the decline of
coal generation, gas generation, nuclear generation, and coal
mining to develop the recommended list of regions that qualify
for Clean Energy Empowerment Zone designations. The Department
shall furnish maps that identify the proposed boundaries of
proposed Clean Energy Empowerment Zones, and include
justification for the inclusion or exclusion of certain
locations or regions. The proposed list shall be subject to
the notice and comment process established in subsection (e).
(d) Criteria for designation as a Clean Energy Empowerment
Zone. A region shall be proposed by the Department, and
certified by the Board as a Clean Energy Empowerment Zone if it
meets all of the following characteristics listed in
paragraphs (1) through (3) of this subsection (d).
(1) The region is a contiguous area, provided that a
Zone area may exclude wholly surrounded territory within
its boundaries;
(2) The region satisfies any additional criteria
established by the Department consistent with the purposes
of this Act; and
(3) The region meets one or more of the following:
(A) the area contains a fossil fuel or nuclear
power plant that was retired from service or has
significantly reduced service within 10 years before

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the application for designation or will be retired or
have service significantly reduced within 5 years
following the application for designation;
(B) the area contains a coal mine that was closed
or had operations significantly reduced within 10
years before the application for designation or is
anticipated to be closed or have operations
significantly reduced within 5 years following the
application for designation; or
(C) the area contains a nuclear power plant that
was decommissioned, but continued storing nuclear
waste before the effective date of this Act.
(e) Review and comment process. After developing the
proposed list of regions to be designated as Clean Energy
Empowerment Zones, or proposing additions to the list, the
Department shall conduct a 60-day public comment process, in
partnership with the other agencies, departments, and units of
local government where beneficial for the purposes of this
Section. The public comment process shall include, at a
minimum, 2 public hearings that are accessible to working
residents, shall prioritize the solicitation of feedback from
environmental justice communities and communities directly
impacted by the Clean Energy Empowerment Zone designation, and
shall provide for the submission of written comments through
the Internet.
Within 30 days after concluding the public comment

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process, the Department shall modify or finalize the proposed
list of geographic regions that qualify as Clean Energy
Empowerment Zones and submit the list to the Clean Energy
Empowerment Zone Board for approval or modification as
described in Section 5-20.
(f) Local government self-designation. After the
Department submits its first list of proposed Clean Energy
Empowerment Zones to the Board, units of local government may,
on an ongoing basis, submit applications to the Department to
designate an area wholly or partially in their jurisdiction as
a Clean Energy Empowerment Zone if the Department has not
proposed the region as a potential Clean Energy Empowerment
Zone to the Board. Multiple units of local government may
submit a joint application for designation if the proposed
region or regions fall partially or wholly within their
combined jurisdictions. A unit of local government may submit
an application to the Department if:
(1) the area meets the criteria for designation as a
Clean Energy Empowerment Zone established in subsection
(d); and
(2) the unit of local government has conducted at
least one public hearing within the proposed Zone area
considering all of the following questions: (A) whether to
create the Zone; (B) what local plans, tax incentives, and
other programs should be established in connection with
the zone; and (C) what the boundaries of the Zone should

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be. Public notice of the hearing shall be published in at
least one newspaper of general circulation within the Zone
area, not more than 21 days nor less than 7 days before the
hearing.
An application submitted under this subsection (f) shall
include a certified copy of the ordinance designating the
proposed Zone; a map of the proposed Clean Energy Empowerment
Zone, showing existing streets and highways; an analysis, and
any appropriate supporting documents and statistics,
demonstrating that the proposed zone area is qualified in
accordance with subsection (d); a statement detailing any tax,
grant, and other financial incentives or benefits, and any
programs, to be provided by the municipality or county to
renewable energy enterprises within the Zone, which are not
otherwise provided throughout the municipality or county; a
statement setting forth the economic development and planning
objectives for the Zone; an estimate of the economic impact of
the Zone, considering all of the tax incentives, financial
benefits and programs contemplated, upon the revenues of the
municipality or county; a specific definition of the
applicant's local labor market area; a transcript of all
public hearings on the Zone; and any additional information as
the Department may by rule require.
Within 60 days after receiving an application from a unit
of local government, the Department shall review the
application to determine whether the designated area qualifies

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as a Clean Energy Empowerment Zone under this Section, and
submit its recommendation to the Clean Energy Empowerment Zone
Board including all necessary information and records for the
Board to review, as described in Section 5-20. Within 7 days
after submitting the recommendation to the Board, the
Department shall provide a copy of its recommendation to the
applicant, including all supporting documents and information
submitted to the Board.
(g) Application process. The Department shall, no later
than July 1, 2021, develop an ongoing application process for
Clean Energy Empowerment Zone applications by units of local
government. The application process shall be open during the
period of July 1, 2021 through January 1, 2050. The
Department, or any predecessor of the Department, may extend
the application process beyond that date if it deems it is
necessary or prudent to accomplish the purpose of this Act.
(h) Length of designation. A Clean Energy Empowerment Zone
designation lasts for 10 years from the effective date of the
designation and shall be subject to review by the Board after
10 years for an additional 10-year designation beginning on
the expiration date of the Clean Energy Empowerment Zone.
During the review process, the Board shall consider the costs
incurred by the State and units of local government as a result
of benefits received by the Clean Energy Empowerment Zone.
(i) Emergency rulemaking. The Department has emergency
rulemaking authority for the purpose of implementation of this

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Section until 12 months after the effective date of this Act as
provided under Section 5-45 of the Illinois Administrative
Procedure Act.
Section 5-20. Clean Energy Empowerment Zone Board.
(a) A Clean Energy Empowerment Zone Board is hereby
created within the Department.
(b) The Board shall consist of 8 voting members, one of
whom shall be the Director of Commerce and Economic
Opportunity, or his or her designee, who shall serve as
chairperson; one of whom shall be the Director of Revenue, or
his or her designee; 2 of whom shall be members appointed by
the Governor, with the advice and consent of the Senate; one of
whom shall be appointed by the Speaker of the House of
Representatives; one of whom shall be appointed by the
President of the Senate; one of whom shall be appointed by the
Minority Leader of the House; and one of whom shall be
appointed by the Minority Leader of the Senate. Designees
shall be appointed within 60 days after a vacancy. No fewer
than 4 of the 8 voting members shall consist of low-income
residents or residents of environmental justice communities.
At least one of the Board members shall be a representative of
organized labor. All meetings shall be accessible, with
rotating locations, call-in options, and materials and agendas
circulated well in advance, and there shall also be
opportunities for input outside of meetings from those with

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limited capacity and ability to attend, via one-on-one
meetings, surveys, and calls.
Board members shall serve without compensation, but may be
reimbursed for necessary expenses incurred in the performance
of their duties from funds appropriated for that purpose. Each
member appointed shall have at least 5 years of experience in
business development or economic development. The Department
of Commerce and Economic Opportunity shall provide
administrative support to the Board, including the selection
of a Department staff member to serve as a Board Liaison
between the Department and the Advisory Board.
(c) All final actions by the Board pursuant to this
subsection (c) shall require approval by a simple majority of
the Board. The Board shall have the following duties:
(1) reviewing applications and extensions for
designation as a Clean Energy Empowerment Zone, including
Department recommendations, testimony from public
hearings, public comment, and supporting materials;
(2) voting to approve, disapprove, or modify
applications for designation and extensions as a Clean
Energy Empowerment Zones;
(3) the approval of tax credits under the Clean Energy
Empowerment Zone Tax Credit Act; and
(4) modifying applications for designation or
extensions as a Clean Energy Empowerment Zone before
approval.

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(d) Deadlines for responses by the Board. Within 60 days
after submission of applications or tax credits, pursuant to
subsection (c) of this Section, to the Board by the
Department, the Board shall approve, disapprove, or modify
applications for certification of regions as Clean Energy
Empowerment Zones. If the Board does not take final action on a
submission within 60 days after the submission, the
application submitted by the Department shall be considered
approved, and the regions proposed in the application shall be
certified as Clean Energy Empowerment Zones.
Section 5-25. Incentives for renewable energy enterprises
located within a Clean Energy Empowerment Zone.
(a) Renewable energy enterprises located in Clean Energy
Empowerment Zones are eligible to apply for a State income tax
credit under the Clean Energy Empowerment Zone Tax Credit Act.
(b) Renewable energy enterprises located in Clean Energy
Empowerment Zones are eligible to receive an investment credit
subject to the requirements of paragraph (1) of subsection (f)
of Section 201 of the Illinois Income Tax Act.
(c) Renewable energy enterprises are eligible to purchase
building materials exempt from use and occupation taxes to be
incorporated into their renewable energy projects within the
Clean Energy Empowerment Zone when purchased from a retailer
within the Clean Energy Empowerment Zone under Section 5k-5 of
the Retailers' Occupation Tax Act.

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(d) Renewable energy enterprises located in a Clean Energy
Empowerment Zone that meet the qualifications of Section
9-222.1B of the Public Utilities Act are exempt, in part or in
whole, from State and local taxes on gas and electricity.
(e) Preference for procurements shall be conducted by the
Illinois Power Agency as described in subparagraph (P) of
paragraph (1) of subsection (c) of Section 1-75 of the
Illinois Power Agency Act.
Section 5-30. State incentives regarding public services
and physical infrastructure.
(a) The State Treasurer is authorized and encouraged to
place deposits of State funds with financial institutions
doing business in a Clean Energy Empowerment Zone.
(b) This Act does not restrict tax incentive financing
under Division 74.4 of Article 11 of the Illinois Municipal
Code.
Section 5-35. Supporting impacted communities.
(a) No later than July 1, 2021, the Department shall
develop a process for accepting applications from units of
local government included in Clean Energy Empowerment Zones to
mitigate the impact of an annual reduction of at least 30% in
the sum of property tax revenue or other direct payments, or
both, from fossil fuel power plants or coal mines to local
governments due to the retirement, or reduced operation, of

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the power plant or mine that occurred after January 1, 2016. In
the case of reduced operation, the proposal may only be
accepted if the reduction in operation is reasonably expected
to be permanent. The Department shall accept applications on
an ongoing basis after beginning the program. Local government
units may submit applications jointly.
(b) The Department shall use available funds from the
Energy Community Reinvestment Fund, subject to the provisions
of subsection (c) of Section 5-70, to provide payments to
communities for a period of no longer than 5 years from the
approval of their proposal, subject to the following
restrictions:
(1) Payments shall be assessed based on need, taking
into consideration the net amount of any increase in
payments from any other State source, including, but not
limited to, funding provided based on an evidence-based
funding formula developed by the Illinois State Board of
Education.
(2) The highest annual payment to the unit of local
government cannot exceed the lower value of either (i) the
average annual sum of property tax and other direct
payments from the fossil fuel power plant or coal mine to
the unit of local government from the most recent 3
taxable years before the reduction or cessation of
operation of the fossil fuel power plant or coal mine, or
(ii) the difference between projected local government

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revenue for the years for which assistance is requested
(taking into account reasonably anticipated new revenue
sources) and the average local government revenue from the
most recent 3 taxable years before the reduction or
cessation of fossil fuel power plant or coal mine
operation. The Department may choose to consider budget
information from prior years if doing so allows the
Department to better measure the revenue impacts of the
energy transition.
(3) The Department shall not provide funding under
this Program that exceeds the amount specified in this
paragraph (3) to any local government unit. Each unit of
local government shall not be granted by the Department a
total amount of funding over the lifetime of this Program,
for each fossil fuel power plant or coal mine, that is
greater than 5 times the average annual sum of property
tax payments and other direct payments from the fossil
fuel power plant or coal mine to the unit of local
government, calculated based on the most recent 3 taxable
years that occurred before the reduction or cessation of
operation of the fossil fuel power plant or coal mine.
(4) The Department may develop a payment schedule that
phases out support over time, based on its analysis of
available present and anticipated future funding in the
Energy Community Reinvestment Fund or other reasons
consistent with the purposes of this Act.

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(5) If the total amount of qualified proposals exceeds
the available present and anticipated future funding in
the Energy Community Reinvestment Fund, the Department may
prorate payments to units of local government, or
prioritize communities for investment based on an
environmental justice screen in coordination with the
Commission on Environmental Justice, and input from
stakeholders. The Department shall allocate funding in an
equitable and effective manner. Nothing in this Act shall
be interpreted to infer that units of local government
have a right to revenue replacement from the State.
(6) Funding allocated under this program may not be
used to support fossil fuel power plants, nuclear power
plants, or coal mines in any form. Any local government
unit that uses funds provided under this Act to support
fossil fuel power plants, nuclear power plants, or coal
mines shall reimburse the State for all funding used for
that purpose. If requested, the Department shall provide
guidance to local government units on whether a proposed
use of funds is considered a violation of this
requirement.
(7) At least once every 2 years following the
allocation of funds for this program, the Department shall
publish a document available online detailing the
allocation of funds, including a map that shows the
geographic distribution of the funds and the locations of

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Clean Energy Empowerment Zones.
(c) The Department shall contact all units of local
government in Clean Energy Empowerment Zones and provide
information on the application process for funding under this
Section and a reasonable estimate of total funding that will
be available for this program. The Department shall request
that applications for funding contain the information
necessary for the Department to evaluate the fiscal impact of
the energy transition on communities located in Clean Energy
Empowerment Zones; however the Department shall allow for
reasonable flexibility in the applications to accommodate
local government units that may have less resources available
to prepare an application. The Department shall, to the extent
practical, assist local government units in the application
process.
(d) The Department shall develop rules to implement the
provisions of this Section.
Section 5-40. Clean Energy Empowerment Task Forces.
(a) The Department and the Board shall work with local
stakeholders in Clean Energy Empowerment Zones to support the
convening of local Clean Energy Empowerment Task Forces.
(b) Local Clean Energy Empowerment Task Forces shall
include a broad range of local stakeholders to inform
transition needs and include, at a minimum, elected
representatives from municipal and State governments,

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operators of local power plants or mines, multiple
representatives from community-based organizations, local
environmental, fish, or wildlife groups, organized labor, and
the Illinois Environmental Protection Agency.
(c) The Board shall put forward requests for proposals for
third-party facilitators for Task Forces in prioritized Clean
Energy Empowerment Zones based on need and those facing recent
or near-term retirements of plants or mines.
(d) The Department shall work with local Task Forces to
develop local transition plans that identify economic,
workforce, and environmental health needs with strategies to
mitigate energy transition impacts and any accompanying
funding requests from the Energy Community Reinvestment Fund.
(e) As part of developing local transition plans, the
Department shall work with third-party facilitators and Task
Force members to gather and incorporate public comment and
feedback into a finalized transition plan.
(f) If the Department determines that a fossil fuel power
plant owner has failed to engage productively in stakeholder
meetings and with Clean Energy Empowerment Zone Task Forces,
the Department shall submit a notification to the Illinois
Environmental Protection Agency for enforcement actions and
the assessment of fees as described in Section 9.16 of the
Environmental Protection Act.
Section 5-45. Energy Transition Workforce Commission.

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(a) The Energy Transition Workforce Commission is hereby
created within the Department of Commerce and Economic
Opportunity.
(b) The Commission shall consist of the following 5
members:
(1) the Director of Commerce and Economic Opportunity,
or his or her designee, who shall serve as chairperson;
(2) the Director of Labor, or his or her designee; and
(3) 3 members appointed by the Governor, with the
advice and consent of the Senate, of which at least one
shall be from organized labor and at least one shall be a
resident of an environmental justice community.
Designees shall be appointed within 60 days after a
vacancy.
(c) Members of the Commission shall serve without
compensation, but may be reimbursed for necessary expenses
incurred in the performance of their duties from funds
appropriated for that purpose. The Department of Commerce and
Economic Opportunity shall provide administrative support to
the Commission.
(d) Within 120 days after the effective date of this Act,
the Commission shall produce an Energy Transition Workforce
Report regarding the anticipated impact of the energy
transition and a comprehensive set of recommendations to
address changes to the Illinois workforce during the period of
2020 through 2050, or a later year. The report shall contain

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the following elements, designed to be used for the programs
created in this Act:
(1) Information related to the impact on current
workers, including:
(A) a comprehensive accounting of all employees
who currently work in fossil fuel energy generation,
nuclear energy generation, and coal mining in the
State; this shall include information on their
location, employer, salary ranges, full-time or
part-time status, nature of their work, educational
attainment, union status, and other factors the
Commission finds relevant; the Commission shall keep a
confidential list of these employees and the
information necessary to identify them for the purpose
of their eligibility to participate in programs
designed for their benefit;
(B) the anticipated schedule of closures of fossil
fuel power plants, nuclear power plants, and coal
mines across the State; when information is
unavailable to provide exact data, the report shall
include approximations based upon the best available
information;
(C) an estimate of worker impacts due to scheduled
closures, including layoffs, early retirements, salary
changes, and other factors the Commission finds
relevant; and

HB3967 - 24 - LRB102 14276 SPS 19628 b
(D) the likely outcome for workers who are
employed by facilities that are anticipated to close
or have significant layoffs during their tenure or
lifetime.
(2) Information regarding impact on communities and
local governments, including:
(A) changes in the revenue for units of local
government in areas that currently or recently have
had a closure or reduction in operation of a fossil
fuel power plant, nuclear power plant, coal mine, or
related industry;
(B) environmental impacts in areas that currently
or recently have had fossil fuel power plants, coal
mines, nuclear power plants, or related industry; and
(C) economic impacts of the energy transition,
including, but not limited to, the supply chain
impacts of the energy transition shift toward new
energy sources across the State.
(3) Information on emerging industries and State
economic development opportunities in regions that have
historically been the site of fossil fuel power plants,
nuclear power plants, or coal mining.
(e) Following the completion of each report, or if the
Department finds that it is prudent to begin before the
completion of a report, the Department shall coordinate with
the Commission to create a comprehensive draft plan for

HB3967 - 25 - LRB102 14276 SPS 19628 b
designing, maintaining, and funding programs established under
this Act, including the Energy Workforce Development Program
created under Section 5-50, the Energy Community Development
Program created under Section 5-55, and the Displaced Energy
Workers Bill of Rights provided under Section 5-60. The draft
plan shall include, at a minimum, the following information:
(1) A detailed accounting of the anticipated costs for
each program and the anticipated amount of funding that
will be provided for each program.
(2) Information on the locations at which each program
shall have services provided. If this information is not
yet known by the Department at the time of the plan's
drafting, the Department shall generally explain how they
intend to determine the program locations.
Within 120 days after the effective date of this Act, the
Department shall publish the draft plan online. The Department
shall take public comments on the draft plan for a period of no
less than 45 days and publish the final plan within 30 days
after the closing of the comment period.
(f) The Department shall periodically review its findings
in the developed reports and make modifications to the report
and programs based on new findings. The Department shall
conduct a comprehensive reevaluation of the report, and
publish a modified version along with a new draft plan, on each
of the following years following initial publication: 2023;
2027; 2030; 2035; 2040; and any year thereafter which the

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Department determines is necessary or prudent.
Section 5-50. Energy Workforce Development Program.
(a) The purpose of the Energy Workforce Development
Program is to proactively assist energy workers in their
search for economic opportunity.
(b) The Director of Commerce and Economic Opportunity
shall design, develop, and administer the Energy Workforce
Development Program. The Energy Workforce Development Program
shall include the following elements:
(1) comprehensive career services for displaced energy
workers, including advising displaced energy workers
looking for new positions on finding new employment or
preparing for retirement;
(2) communication services to provide displaced energy
workers advance notice of any power plant or coal mine
closures that are likely to result in a loss of employment
for the energy worker;
(3) administrative assistance for displaced energy
workers in applying for programs provided by the State,
the federal government, nonprofit organizations, or other
programs that are designed to offer career or financial
assistance;
(4) the creation and maintenance of a registry of all
persons in Illinois who qualify as an energy worker to use
for coordination with programs created under this Act or

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other benefits for those workers, including all
information necessary or beneficial for the implementation
of this Act;
(5) the management of funding for services outlined in
this Section; and
(6) financial advice for displaced energy workers
designed to assist workers with retirement, a change in
positions, pursuing an education, or other goals that the
energy worker has identified.
(c) In administering the Energy Workforce Development
Program, the Department shall develop and implement the
Program with the following goals:
(1) to use the recommendations and information
contained in the report created under Section 5-45 to
proactively plan for each phase of the energy transition
in Illinois;
(2) to increase access to the services contained in
this Program by locating services in different regions of
the State as dictated by the anticipated schedule of power
plant and coal mine closures and regional economic
changes;
(3) to maximize the efficiency of resources used;
(4) to design the Energy Workforce Development Program
to work in collaboration with the Displaced Energy Workers
Bill of Rights; and
(5) any other goals identified by the Department.

HB3967 - 28 - LRB102 14276 SPS 19628 b
Section 5-55. Energy Community Development Program.
(a) The purpose of the Energy Community Development
Program is to proactively assist Clean Energy Empowerment Zone
communities in their search for economic opportunities leading
up to and after the closure of a fossil fuel power plant,
nuclear power plant, or coal mine.
(b) The Director of Commerce and Economic Opportunity
shall, subject to appropriation, administer the Energy
Community Development Program. In administering the Energy
Community Development Program, the Department shall:
(1) assist local governments in Clean Energy
Empowerment Zones in finding private and public sector
partners to invest in regional development;
(2) assist units of local government in finding and
negotiating terms with businesses willing to relocate or
open new enterprises in regions impacted;
(3) provide coordination services to connect
organizations or persons seeking to use tax credits
created under Act with units of local government;
(4) conduct outreach and educational events for
private sector organizations for the purpose of attracting
investment in Clean Energy Empowerment Zones; and
(5) gather and incorporate public comment and feedback
so that local knowledge, priorities, and strengths help
shape and guide private and public development.

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(c) In administering the Energy Community Development
Program, the Department shall develop and implement the
Program with the following goals:
(1) to increase private sector development in Clean
Energy Empowerment Zones;
(2) to replace and improve employment opportunities in
Clean Energy Empowerment Zones for community members;
(3) to provide resources for Clean Energy Empowerment
Zone communities across the State, and avoid geographic
preferences in the allocation of resources; and
(4) to create a healthful environment for community
members in Clean Energy Empowerment Zones.
Section 5-60. Displaced Energy Workers Bill of Rights.
(a) The Department of Commerce and Economic Opportunity
shall implement the Displaced Energy Workers Bill of Rights
and shall be responsible for the implementation of the
Displaced Energy Workers Bill of Rights programs and rights
created under this Section. The Department shall provide the
following benefits to displaced energy workers listed in
paragraphs (1) through (4) of this subsection:
(1) Advance notice of power plant or coal mine
closure.
(A) The Department of Commerce and Economic
Opportunity shall notify all energy workers of the
upcoming closure of any qualifying facility at least 2

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years in advance of the scheduled closing date.
(B) In providing the advance notice described in
this paragraph (1), the Department shall take
reasonable steps to ensure that all displaced energy
workers are educated on the various programs available
through the Department to assist with the energy
transition.
(2) Employment assistance and career services. The
Department shall provide displaced energy workers with
assistance in finding new sources of employment through
the Energy Workforce Development Program established in
this Act.
(3) Full-tuition scholarship for Illinois institutions
and trade schools.
(A) The Department shall provide any displaced
energy worker with a full-tuition scholarship to any
of the following programs: (i) public universities in
this State; (ii) trade schools in this State; (iii)
community college programs in this State; or (iv)
union training programs in this State. The Department
may set cost caps on the maximum amount of tuition that
may be funded.
(B) The Department shall provide information and
consultation to displaced energy workers on the
various educational opportunities available through
this Program, and advise workers on which

HB3967 - 31 - LRB102 14276 SPS 19628 b
opportunities meet their needs and preferences.
(C) Displaced energy workers who are eligible for
scholarships created under this Section by the date of
their enrollment shall be considered eligible for
scholarship funding for up to 4 years or until
completion of their degree or certification, whichever
is the shorter duration.
(4) Financial Planning Services. Displaced energy
workers shall be entitled to services as described in the
energy worker Programs in this subsection, including
financial planning services.
(b) The owners of power plants with a nameplate capacity
of greater than 300 megawatts and the owners of coal mines
located in Illinois shall be required to comply with the
requirements set out in this subsection (b). The owners shall
be required to take the following actions:
(1) provide employment information for energy workers;
prior to the closure of an electric generating unit or
mine, the owners of the power plant or mine shall provide
energy workers information on whether there are employment
opportunities provided by their employer;
(2) provide extended health insurance for displaced
energy workers who are former employees of the power plant
owner that (A) costs no more than the average monthly
premium paid by the worker over the last 12 months and (B)
offers the same level of benefits, including, but not

HB3967 - 32 - LRB102 14276 SPS 19628 b
limited to, coverage, in-network providers, deductibles,
and copayments covered during the previous 12 months;
companies that sell energy into auctions managed by the
Illinois Power Agency shall be required to offer 2 years
of health insurance following closure of an electric
generating unit to employees who are not employed in new
positions that offer health insurance upon: (i) plant
closure; or (ii) employment termination; the Department
may require funding for health insurance to be provided in
advance of employment termination; and
(3) maintain responsible retirement account
portfolios; employees of qualifying facilities shall have
their retirement funds backed by financial tools that are
not economically dependent upon the success of their
employer's business.
Section 5-65. Consideration of energy worker employment.
(a) All State departments and agencies shall conduct a
review of the Department of Commerce and Economic
Opportunity's registry of energy workers to determine whether
any qualified candidates are displaced energy workers before
making a final hiring decision for a position in State
employment.
(b) The Department of Commerce and Economic Opportunity
shall inform all State agencies and departments of the
obligations created by this Section and take steps to ensure

HB3967 - 33 - LRB102 14276 SPS 19628 b
compliance.
(c) Nothing in this Section shall be interpreted to
indicate that the State is required to hire displaced energy
workers for any position.
(d) No part of this Section shall be interpreted to be in
conflict with federal or State civil rights or employment law.
Section 5-70. Energy Community Reinvestment Fund.
(a) The General Assembly hereby declares that management
of several economic development programs requires a
consolidated funding source to improve resource efficiency.
The General Assembly specifically recognizes that properly
serving communities and workers impacted by the energy
transition requires that the Department of Commerce and
Economic Opportunity have access to the resources required for
the execution of the programs in this Act.
The intent of the General Assembly is that the Energy
Community Reinvestment Fund is able to provide all funding for
development programs created in this Act, and that no
additional charge is borne by the taxpayers or ratepayers of
Illinois absent a deficiency.
(b) The Energy Community Reinvestment Fund is created as a
special fund in the State treasury to be used by the Department
of Commerce and Economic Opportunity for purposes provided
under this Section. The Fund shall be used to fund programs
specified under subsection (c). The objective of the Fund is

HB3967 - 34 - LRB102 14276 SPS 19628 b
to bring economic development to communities in this State in
a manner that equitably maximizes economic opportunity in all
communities by increasing efficiency of resource allocation
across the programs listed in subsection (c). The Department
shall include a description of its proposed approach to the
design, administration, implementation, and evaluation of the
Fund, as part of the Energy Transition Workforce Plan
described in this Act. Contracts that will be paid with moneys
in the Fund shall be executed by the Department.
(c) The Department shall be responsible for the
administration of the Fund and shall allocate funding on the
basis of priorities established in this Section. Each year,
the Department shall determine the available amount of
resources in the Fund that can be allocated to the programs
identified in this Section, and allocate the funding
accordingly. The Department shall, to the extent practical,
consider both the short-term and long-term costs of the
programs and allocate, save, or invest funding so that the
Department is able to cover both the short-term and long-term
costs of these programs using projected revenue.
The available funding for each year shall be allocated
from the Fund in the following order of priority:
(1) for costs related to the Energy Community
Development programs in this Act, up to $2,000,000
annually or 2% of the available funding, whichever is
less;

HB3967 - 35 - LRB102 14276 SPS 19628 b
(2) for costs related to the Energy Workforce
Development programs and the Displaced Energy Workers Bill
of Rights in this Act, including all programs created by
the Energy Transition Workforce Commission, up to
$13,000,000 annually or 21% of the available funding,
whichever is less. If 21% of the available funding is more
than $13,000,000, the amount over $13,000,000 is allocated
to the items in (1) through (3) by their relative
percentages until those programs are fully funded;
(3) for costs, up to $100,000,000 annually, to support
units of local government in Clean Energy Empowerment
Zones, as described in Section 5-35;
(4) if the programs identified in paragraphs (1)
through (7) are fully funded and the Department reasonably
predicts they will be adequately funded in future years,
the Department shall transfer an amount equal to the
year's tax credits awarded through the programs of up to
$22,500,000 annually go the General Revenue Fund to offset
revenue reductions from tax credits provided under the
Clean Energy Empowerment Zone Tax Credit Act;
(5) to support the Low Income Home Energy Assistance
Program, up to $30,000,000 annually, to support additional
costs from the Percentage of Income Payment Program
expansion and energy assistance expansion;
(6) if the programs identified in paragraphs (1)
through (6) are fully funded and the Department reasonably

HB3967 - 36 - LRB102 14276 SPS 19628 b
predicts they shall be adequately funded in future years,
the Department shall transfer all surplus to the General
Revenue Fund.
(d) No later than June 1, 2021, and by June 1 of each year
thereafter, the Department shall submit a notification to the
Illinois Environmental Protection Agency for the purpose of
implementing the energy community reinvestment fee as
described in Section 9.16 of the Environmental Protection Act.
The notification shall include the revenue and spending
requirements for the programs identified under the Energy
Community Reinvestment Act for the upcoming fiscal year, as
well as the projected spending for all program years through
Fiscal Year 2036. The projected revenue and spending need
identified for any program year shall be no less than
$200,000,000 per year for the calendar years 2021 through 2025
and $100,000,000 per year for all calendar years starting in
2026 that the Illinois electric sector generates greenhouse
gas emissions.
(e) If there is a funding shortfall for items identified
in paragraphs (1) through (4) of subsection (c), the
Department shall submit a request for funds to applicable
electric utilities for funds collected under subsection (k) of
Section 1-75 of the Illinois Power Agency Act up to
$25,000,000 per year to cover the shortfall. Upon notification
by utilities that sufficient funds are available for use under
the terms of paragraph (7) of subsection (k) of Section 1-75 of

HB3967 - 37 - LRB102 14276 SPS 19628 b
the Illinois Power Agency Act, the Department shall send an
invoice to the applicable utilities for the amount requested.
Upon receipt, the funds shall be deposited into the Energy
Community Reinvestment Fund.
(f) The Department shall, on an ongoing basis, seek out
and apply for funding from alternative sources to cover the
costs of these programs. Alternative sources may include the
federal government, other State programs, private foundations,
donors, or other opportunities for funding. The Department
shall, as described in subsection (c), use any additional
funding obtained for these programs to reduce or eliminate any
costs borne by taxpayers and ratepayers. Nothing in this
subsection (f) shall be interpreted to reduce or remove the
revenue requirements obtained by the Illinois Environmental
Protection Agency as described in subsection (d).
(g) Notwithstanding any other law to the contrary, the
Energy Community Reinvestment Fund is not subject to sweeps,
administrative chargebacks, or any other fiscal or budgetary
maneuver that would in any way transfer any amounts from the
Energy Community Reinvestment Fund into any other fund of the
State.
(h) The Department is granted all powers necessary for the
implementation of this Section.
Section 5-75. Administrative review. All final
administrative decisions, including, but not limited to,

HB3967 - 38 - LRB102 14276 SPS 19628 b
funding allocation and rules issued by the Department under
this Act are subject to judicial review under the
Administrative Review Law. No action may be commenced under
this Section prior to 60 days after the complainant has given
notice in writing of the action to the Department.
ARTICLE 10. Clean Energy Empowerment Zone Tax Credit Act
Section 10-1. Short title. This Article may be cited as
the Clean Energy Empowerment Zone Tax Credit Act. References
in this Article to "this Act" mean this Article.
Part 1.
Section 10-100. Definitions. As used in this Part 1:
"Applicant" means a person that is operating a business
located within the State of Illinois and has applied for an
income tax credit through a program under this Act.
"Basic wage" means compensation for employment that meets
the prevailing wage standards as defined by the Department.
"Certificate" means the tax credit certificate issued by
the Department under Section 10-125.
"Certificate of eligibility" means the certificate issued
by the Department under Section 10-110.
"Credit" means the amount awarded by the Department to an
applicant by issuance of a certificate under Section 10-125

HB3967 - 39 - LRB102 14276 SPS 19628 b
for each new full-time equivalent employee hired or job
created.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Former energy worker" means an individual who is
employed, or was employed, at a fossil fuel power plant,
nuclear power plant, or coal mine, and is listed in the
registry of energy workers developed by the Department of
Commerce and Economic Opportunity pursuant to Section 5-50 of
the Energy Community Reinvestment Act.
"Full-time employee" means an individual who is employed
at a prevailing wage for at least 35 hours each week, and
provided standard worker benefits, or who renders any other
standard of service generally accepted by industry custom or
practice as full-time employment. An individual for whom a W-2
is issued by a Professional Employer Organization is a
full-time employee if he or she is employed in the service of
the applicant for a basic wage for at least 35 hours each week
or renders any other standard of service generally accepted by
industry custom or practice as full-time employment. For the
purposes of this Act, such an individual shall be considered a
full-time employee of the applicant.
"Incentive period" means the period beginning on July 1
and ending on June 30 of the following year. The first

HB3967 - 40 - LRB102 14276 SPS 19628 b
incentive period shall begin on July 1, 2021 and the last
incentive period shall end on June 30, 2040.
"New employee" means a full-time employee:
(1) who first became employed by an applicant within
the incentive period whose hire results in a net increase
in the applicant's full-time Illinois employees and who is
receiving a prevailing wage as compensation; and
(2) who was previously employed in a fossil fuel power
plant, nuclear power plant, or coal mine in the State of
Illinois that has since closed.
"New employee" does not include:
(1) a person who was previously employed in Illinois
by the applicant or a related member prior to the onset of
the incentive period, unless the new employee is hired for
site remediation work; or
(2) a person who has a direct or indirect ownership
interest of at least 5% in the profits, capital, or value
of the applicant or a related member; or
(3) a person who has been hired to assist in the
production of fossil fuel derived energy directly or
indirectly, unless that person has been hired to assist in
the deconstruction of a fossil fuel power plant, the
deconstruction of a coal mine, the remediation of a site
formerly used for fossil fuel power production, or the
remediation of a coal mine.
"Noncompliance date" means, in the case of an applicant

HB3967 - 41 - LRB102 14276 SPS 19628 b
that is not complying with the requirements of this Act, the
day following the last date upon which the taxpayer was in
compliance with the requirements of this Act, as determined by
the Director under Section 10-135.
"Professional Employer Organization" has the same meaning
as ascribed to that term under Section 5-5 of the Economic
Development for a Growing Economy Tax Credit Act.
"Professional Employer Organization" does not include a day
and temporary labor service agency regulated under the Day and
Temporary Labor Services Act.
"Related member" means a person that, with respect to the
applicant during any portion of the incentive period, is any
one of the following:
(1) An individual, if the individual and the members
of the individual's family, as defined in Section 318 of
the Internal Revenue Code, own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the value of the outstanding profits,
capital, stock, or other ownership interest in the
applicant.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or other
ownership interest in the applicant.

HB3967 - 42 - LRB102 14276 SPS 19628 b
(3) A corporation, and any party related to the
corporation, in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the
applicant and any other related member own, in the
aggregate, directly, indirectly, beneficially, or
constructively, at least 50% of the value of the
corporation's outstanding stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own, in the
aggregate, at least 50% of the profits, capital, stock, or
other ownership interest in the applicant.
(5) A person to or from whom there is attribution of
stock ownership in accordance with subsection (e) of
Section 1563 of the Internal Revenue Code, except that for
purposes of determining whether a person is a related
member under this paragraph (5):
(A) stock owned, directly or indirectly, by or for
a partnership shall be considered as owned by any
partner having an interest of 20% or more in either the
capital or profits of the partnership in proportion to
his or her interest in capital or profits, whichever

HB3967 - 43 - LRB102 14276 SPS 19628 b
such proportion is the greater;
(B) stock owned, directly or indirectly, by or for
an estate or trust shall be considered as owned by any
beneficiary who has an actuarial interest of 20% or
more in such stock, to the extent of such actuarial
interest. For purposes of this subparagraph, the
actuarial interest of each beneficiary shall be
determined by assuming the maximum exercise of
discretion by the fiduciary in favor of such
beneficiary and the maximum use of such stock to
satisfy his or her rights as a beneficiary; and
(C) stock owned, directly or indirectly, by or for
a corporation shall be considered as owned by any
person who owns 20% or more in value of its stock in
that proportion which the value of the stock which the
person so owns bears to the value of all the stock in
the corporation.
Section 10-105. Powers of the Department. The Department,
in addition to those powers granted under the Civil
Administrative Code of Illinois, is granted and shall have all
the powers necessary or convenient to carry out and effectuate
the purposes and provisions of this Act, including, but not
limited to, power and authority to:
(1) Adopt rules deemed necessary and appropriate for
the administration of this Act; establish forms for

HB3967 - 44 - LRB102 14276 SPS 19628 b
applications, notifications, contracts, or any other
agreements; and accept applications at any time during the
year and require that all applications be submitted
electronically through the Internet.
(2) Provide guidance and assistance to applicants
under the provisions of this Act, and cooperate with
applicants to promote, foster, and support job creation
within this State.
(3) Enter into agreements and memoranda of
understanding for participation of and engage in
cooperation with agencies of the federal government, units
of local government, universities, research foundations or
institutions, regional economic development corporations,
or other organizations for the purposes of this Act.
(4) Gather information and conduct inquiries, in the
manner and by the methods it deems desirable, including,
without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather
information in furtherance of the purposes of this Act.
(5) Establish, negotiate, and effectuate any term,
agreement, or other document with any person necessary or
appropriate to accomplish the purposes of this Act, and
consent, subject to the provisions of any agreement with
another party, to the modification or restructuring of any
agreement to which the Department is a party.

HB3967 - 45 - LRB102 14276 SPS 19628 b
(6) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Act from funds made
available through charges to applicants or from funds as
may be appropriated by the General Assembly for the
administration of this Act.
(7) Require applicants, upon written request, to issue
any necessary authorization to the appropriate federal,
State, or local authority or any other person for the
release to the Department of information requested by the
Department, with the information requested to include, but
not be limited to, financial reports, returns, or records
relating to the applicant or to the amount of credit
allowable under this Act.
(8) Require that an applicant shall at all times keep
proper books of record and account in accordance with
generally accepted accounting principles consistently
applied, with the books, records, or papers related to the
agreement in the custody or control of the applicant open
for reasonable Department inspection and audits, and
including, without limitation, the making of copies of the
books, records, or papers.
(9) Take whatever actions are necessary or appropriate
to protect the State's interest in the event of
bankruptcy, default, foreclosure, or noncompliance with

HB3967 - 46 - LRB102 14276 SPS 19628 b
the terms and conditions of financial assistance or
participation required under this Act, including the power
to sell, dispose of, lease, or rent, upon terms and
conditions determined by the Director to be appropriate,
real or personal property that the Department may recover
as a result of these actions.
Section 10-110. Certificate of eligibility for tax credit.
(a) An applicant that has hired a former energy worker or a
graduate or trainee from an equity-focused workforce training
program designated by the Illinois Power Agency as a new
employee during the incentive period may apply for a
certificate of eligibility for the credit with respect to that
position on or after the date of hire of the new employee. The
date of hire shall be the first day on which the employee
begins providing services for basic wage compensation.
(b) An applicant may apply for a certificate of
eligibility for the credit for more than one new employee on or
after the date of hire of each qualifying new employee.
(c) After receipt of an application under this Section,
the Department shall issue a certificate of eligibility to the
applicant that states the following:
(1) the date and time on which the application was
received by the Department and an identifying number
assigned to the applicant by the Department;
(2) the maximum amount of the credit the applicant

HB3967 - 47 - LRB102 14276 SPS 19628 b
could potentially receive under this Act with respect to
the new employees listed on the application; and
(3) the maximum amount of the credit potentially
allowable on certificates of eligibility issued for
applications received prior to the application for which
the certificate of eligibility is issued.
Section 10-115. Tax credit.
(a) Subject to the conditions set forth in this Act, an
applicant is entitled to a credit against payment of taxes
withheld under Section 704A of the Illinois Income Tax Act:
(1) for former energy workers or graduates of Clean
Jobs Workforce programs hired as new employees who the
applicant hires and retains for a minimum of one year; and
(2) in the amount of:
(A) 20% of the salary paid to the new employee for
employees hired and retained for between the time of
hiring and one year;
(B) 15% of the salary paid to the new employee for
employees hired and retained between one year and 2
years; and
(C) 10% of the salary paid to the new employee for
employees hired and retained between 2 years and 3
years.
(b) The Department shall make credit awards under this Act
to further job creation.

HB3967 - 48 - LRB102 14276 SPS 19628 b
(c) The credit shall be claimed for the first calendar
year ending on or after the date on which the certificate is
issued by the Department.
(d) The net increase in full-time Illinois employees,
measured on an annual full-time equivalent basis, shall be the
total number of full-time Illinois employees of the applicant
on the final day of the incentive period, minus the number of
full-time Illinois employees employed by the employer on the
first day of that same incentive period. For purposes of the
calculation, an employer that begins doing business in this
State during the incentive period, as determined by the
Director, shall be treated as having zero Illinois employees
on the first day of the incentive period.
(e) The net increase in the number of full-time Illinois
employees of the applicant under subsection (d) must be
sustained continuously for at least 12 months, starting with
the date of hire of a new employee during the incentive period.
Eligibility for the credit does not depend on the continuous
employment of any particular individual. For purposes of this
subsection (e), if a new employee ceases to be employed before
the completion of the 12-month period for any reason, the net
increase in the number of full-time Illinois employees shall
be treated as continuous if a different new employee is hired
as a replacement within a reasonable time for the same
position. The new employees must be hired to fill positions
that the applicant reasonably anticipates will be available

HB3967 - 49 - LRB102 14276 SPS 19628 b
for the new employee as a long-term position. For the purposes
of this subsection (e), "long-term position" means a position
that will be available for 3 years or longer.
(f) The Department shall adopt rules to enable an
applicant for which a Professional Employer Organization has
been contracted to issue W-2s and make payment of taxes
withheld under Section 704A of the Illinois Income Tax Act for
new employees to retain the benefit of tax credits to which the
applicant is otherwise entitled under this Act.
Section 10-120. Maximum amount of credits allowed. The
Department shall limit the monetary amount of credits awarded
under this Act to no more than $18,000,000 annually during the
incentive period. If applications for a greater amount are
received, credits shall be allowed on a first-come,
first-served basis, based on the date on which each properly
completed application for a certificate of eligibility is
received by the Department. If more than one certificate of
eligibility is received on the same day, the credits shall be
awarded based on the time of submission for that particular
day.
Section 10-125. Application for award of tax credit; tax
credit certificate.
(a) On or after the conclusion of the 12-month period, or
other period, after a new employee has been hired, for the

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purposes of subsection (a) of Section 10-115, an applicant
shall file with the Department an application for award of a
credit. The application shall include the following:
(1) the names, Social Security numbers, job
descriptions, salary or wage rates, and dates of hire of
the new employees with respect to whom the credit is being
requested;
(2) a certification that each new employee listed has
been retained on the job for at least one year from the
date of hire;
(3) the number of new employees hired by the applicant
during the incentive period;
(4) the net increase in the number of full-time
Illinois employees of the applicant, including the new
employees listed in the request, between the beginning of
the incentive period and the dates on which the new
employees listed in the request were hired;
(5) an agreement that the Director is authorized to
verify with the appropriate State agencies the information
contained in the request before issuing a certificate to
the applicant; and
(6) any other information the Department determines to
be appropriate.
(b) Although an application may be filed at any time after
the conclusion of the 12-month period after a new employee was
hired, an application filed more than 90 days after the

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earliest date on which it could have been filed shall not be
awarded any credit if, prior to the date it is filed, the
Department has received applications under this Section for
credits totaling more than $20,000,000.
(c) The Department shall issue a certificate to each
applicant awarded a credit under this Act. The certificate
shall include the following:
(1) the name and taxpayer identification number of the
applicant;
(2) the date on which the certificate is issued;
(3) the credit amount that will be allowed; and
(4) any other information the Department determines to
be appropriate.
Section 10-130. Submission of tax credit certificate to
the Department of Revenue. An applicant claiming a credit
under this Act shall submit to the Department of Revenue a copy
of each certificate issued under Section 10-125 with the first
tax return for which the credit shown on the certificate is
claimed. Failure to submit a copy of the certificate with the
applicant's tax return shall not invalidate a claim for a
credit.
Section 10-135. Administrative review.
(a) If the Director determines that an applicant who has
received a credit under this Act is not complying with the

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requirements of this Act, the Director shall provide notice to
the applicant of the alleged noncompliance, and allow the
taxpayer a hearing under the provisions of the Illinois
Administrative Procedure Act. If, after the notice and
hearing, the Director determines that noncompliance exists,
the Director shall issue to the Department of Revenue notice
to that effect, and state the date of noncompliance.
(b) All final administrative decisions, including, but not
limited to, funding allocation and rules issued by the
Department under this Act are subject to judicial review under
the Administrative Review Law. No action may be commenced
under this Section prior to 60 days after the complainant has
given notice in writing of the action to the Department.
Section 10-140. Rules. The Department may adopt rules
necessary to implement this Part 1. The rules may provide for
recipients of credits under this Part 1 to be charged fees to
cover administrative costs of the tax credit program.
Part 2.
Section 10-200. Definitions. As used in this Part 2:
"Agreement" means the agreement between a taxpayer and the
Department entered into for a tax credit awarded under Section
10-210.
"Applicant" means a taxpayer operating a renewable energy

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enterprise, as determined under the Energy Community
Reinvestment Act, located within or that the renewable energy
enterprise plans to locate within a Clean Energy Empowerment
Zone. "Applicant" does not include a taxpayer who closes or
substantially reduces an operation at one location in this
State and relocates substantially the same operation to a
location in a Clean Energy Empowerment Zone. A taxpayer is not
prohibited from expanding its operations at a location in a
Clean Energy Empowerment Zone, provided that existing
operations of a similar nature located within the State are
not closed or substantially reduced. A taxpayer is also not
prohibited from moving operations from one location in this
State to a Clean Energy Empowerment Zone for the purpose of
expanding the operation provided that the Department
determines that expansion cannot reasonably be accommodated
within the municipality in which the business is located, or
in the case of a business located in an incorporated area of
the county, within the county in which the business is
located, after conferring with the chief elected official of
the municipality or county and taking into consideration any
evidence offered by the municipality or county regarding the
ability to accommodate expansion within the municipality or
county.
"Board" means the Clean Energy Empowerment Zone Board
created under Section 5-20 of the Illinois Energy Community
Reinvestment Act.

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"Credit" means the amount agreed to between the Department
and the Applicant under this Act, but not to exceed the lesser
of: (1) the sum of (i) 50% of the incremental income tax
attributable to new employees at the applicant's project and
(ii) 10% of the training costs of new employees; or (2) 100% of
the incremental income tax attributable to new employees at
the applicant's project. If the project is located in an
underserved area, then the amount of the credit may not exceed
the lesser of: (1) the sum of (i) 75% of the incremental income
tax attributable to new employees at the applicant's project
and (ii) 10% of the training costs of new employees; or (2)
100% of the incremental income tax attributable to new
employees at the applicant's project. If an applicant agrees
to hire the required number of new employees, then the maximum
amount of the credit for that applicant may be increased by an
amount not to exceed 25% of the incremental income tax
attributable to retained employees at the applicant's project;
provided that, in order to receive the increase for retained
employees, the applicant must provide the additional evidence
required under paragraph (3) of subsection (c) of Section
10-215.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Full-time employee" means an individual who is employed

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for consideration for at least 35 hours each week or who
renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to the applicant.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
and, if applicable, retained employees under Article 7 of the
Illinois Income Tax Act arising from employment at a project
that is the subject of an agreement.
"New employee" means a full-time employee first employed
by a taxpayer in the project that is the subject of an
agreement and who is hired after the taxpayer enters into the
agreement.
"New employee" does not include:
(1) an employee of the taxpayer who performs a job
that was previously performed by another employee, if that
job existed for at least 6 months before hiring the
employee;
(2) an employee of the taxpayer who was previously
employed in Illinois by a related member of the taxpayer
and whose employment was shifted to the taxpayer after the

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taxpayer entered into the agreement; or
(3) a child, grandchild, parent, or spouse, other than
a spouse who is legally separated from the individual, of
any individual who has a direct or an indirect ownership
interest of at least 5% in the profits, capital, or value
of the taxpayer.
Notwithstanding any other provisions of this Section, an
employee may be considered a new employee under the agreement
if the employee performs a job that was previously performed
by an employee who was: (i) treated under the agreement as a
new employee; and (ii) promoted by the taxpayer to another
job.
Notwithstanding any other provisions of this Section, the
Department may award a credit to an applicant with respect to
an employee hired prior to the date of the agreement if: (i)
the applicant is in receipt of a letter from the Department
stating an intent to enter into a credit agreement; (ii) the
letter described in item (i) of this paragraph is issued by the
Department not later than 15 days after the effective date of
this Act; and (iii) the employee was hired after the date the
letter described in item (i) of this paragraph was issued.
"Pass-through entity" means an entity that is exempt from
the tax under subsection (b) or (c) of Section 205 of the
Illinois Income Tax Act.
"Related member" means a person that, with respect to the
taxpayer during any portion of the taxable year, is any one of

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the following:
(1) An individual stockholder, if the stockholder and
the members of the stockholder's family, as defined in
Section 318 of the Internal Revenue Code, own directly,
indirectly, beneficially, or constructively, in the
aggregate, at least 50% of the value of the taxpayer's
outstanding stock.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust, and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or value of the
taxpayer.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the taxpayer
owns directly, indirectly, beneficially, or constructively
at least 50% of the value of the corporation's outstanding
stock.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the

HB3967 - 58 - LRB102 14276 SPS 19628 b
corporation and all such related parties own in the
aggregate at least 50% of the profits, capital, stock, or
value of the taxpayer.
(5) A person to or from whom there is attribution of
stock ownership in accordance with subsection (e) of
Section 1563 of the Internal Revenue Code, except that for
purposes of determining whether a person is a related
member under this paragraph (5):
(A) stock owned, directly or indirectly, by or for
a partnership shall be considered as owned by any
partner having an interest of 20% or more in either the
capital or profits of the partnership in proportion to
his or her interest in capital or profits, whichever
such proportion is the greater;
(B) stock owned, directly or indirectly, by or for
an estate or trust shall be considered as owned by any
beneficiary who has an actuarial interest of 20% or
more in such stock, to the extent of such actuarial
interest. For purposes of this subparagraph, the
actuarial interest of each beneficiary shall be
determined by assuming the maximum exercise of
discretion by the fiduciary in favor of such
beneficiary and the maximum use of such stock to
satisfy his or her rights as a beneficiary; and
(C) stock owned, directly or indirectly, by or for
a corporation shall be considered as owned by any

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person who owns 20% or more in value of its stock in
that proportion which the value of the stock which the
person so owns bears to the value of all the stock in
the corporation.
"Renewable energy" means solar energy, wind energy, water
energy, geothermal energy, bioenergy, or hydrogen fuel and
cells.
"Renewable energy production facility" means a facility
owned by a company that is engaged in and used such a facility
for the production of solar energy, wind energy, water energy,
geothermal energy, bioenergy, or hydrogen fuel and cells.
"Taxpayer" means an individual, corporation, partnership,
or other entity that has any Illinois income tax liability.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program; or
(4) the area has an average unemployment rate, as
determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as

HB3967 - 60 - LRB102 14276 SPS 19628 b
determined by the United States Department of Labor, for a
period of at least 2 consecutive calendar years preceding
the date of the application.
Section 10-205. Powers of the Department. The Department,
in addition to those powers granted under the Civil
Administrative Code of Illinois and Part 1 of this Act, is
granted and has all the powers necessary or convenient to
carry out and effectuate the purposes and provisions of this
Act, including, but not limited to, power and authority to:
(a) Adopt rules deemed necessary and appropriate for the
administration of programs; establish forms for applications,
notifications, contracts, or any other agreements; and accept
applications at any time during the year.
(b) Provide and assist taxpayers pursuant to the
provisions of this Act, and cooperate with taxpayers that are
parties to agreements to promote, foster, and support economic
development, capital investment, and job creation or retention
within the Clean Energy Empowerment Zone.
(c) Enter into agreements and memoranda of understanding
for participation of and engage in cooperation with agencies
of the federal government, units of local government,
universities, research foundations or institutions, regional
economic development corporations, or other organizations for
the purposes of this Act.
(d) Gather information and conduct inquiries, in the

HB3967 - 61 - LRB102 14276 SPS 19628 b
manner and by the methods as it deems desirable, including,
without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather information
to assist the Board with any recommendation or guidance in the
furtherance of the purposes of this Act.
(e) Establish, negotiate and effectuate any term,
agreement or other document with any person, necessary or
appropriate to accomplish the purposes of this Act, and
consent, subject to the provisions of any agreement with
another party, to the modification or restructuring of any
agreement to which the Department is a party.
(f) Fix, determine, charge, and collect any premiums,
fees, charges, costs, and expenses from applicants, including,
without limitation, any application fees, commitment fees,
program fees, financing charges, or publication fees as deemed
appropriate to pay expenses necessary or incident to the
administration, staffing, or operation in connection with the
Department's or Board's activities under this Act, or for
preparation, implementation, and enforcement of the terms of
the agreement, or for consultation, advisory and legal fees,
and other costs. All fees and expenses incident thereto shall
be the responsibility of the applicant.
(g) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and

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responsibilities described in this Act from funds made
available through charges to applicants or from funds as may
be appropriated by the General Assembly for the administration
of this Act.
(h) Require applicants, upon written request, to issue any
necessary authorization to the appropriate federal, State, or
local authority for the release of information concerning a
project being considered under the provisions of this Act,
with the information requested to include, but not be limited
to, financial reports, returns, or records relating to the
taxpayer or its project.
(i) Require that a taxpayer shall at all times keep proper
books of record and account in accordance with generally
accepted accounting principles consistently applied, with the
books, records, or papers related to the agreement in the
custody or control of the taxpayer open for reasonable
Department inspection and audits, and including, without
limitation, the making of copies of the books, records, or
papers, and the inspection or appraisal of any of the taxpayer
or project assets.
(j) Take whatever actions are necessary or appropriate to
protect the State's interest in the event of bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance or participation required
under this Act, including the power to sell, dispose, lease,
or rent, upon terms and conditions determined by the Director

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to be appropriate, real or personal property that the
Department may receive as a result of these actions.
Section 10-210. Tax credit awards.
(a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against or, as described in
subsection (g), a payment toward taxes imposed pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act that may be imposed on the taxpayer for a taxable year
beginning on or after January 1, 2019, if the taxpayer is
awarded a credit by the Department under this Act for that
taxable year.
(b) The Department shall make credit awards under this Act
to foster job creation and the development of renewable energy
in Clean Energy Empowerment Zones.
(c) A person that proposes a project to create new jobs and
to invest in the development of a renewable energy production
facility in a Clean Energy Empowerment Zone must enter into an
agreement with the Department for the credit under this Act.
(d) The credit shall be claimed for the taxable years
specified in the agreement.
(e) The credit shall not exceed the incremental income tax
attributable to the project that is the subject of the
agreement.
(f) Nothing herein shall prohibit a tax credit award to an
applicant that uses a Professional Employer Organization if

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all other award criteria are satisfied.
(g) A pass-through entity that has been awarded a credit
under this Act, its shareholders, or its partners may treat
some or all of the credit awarded under this Act as a tax
payment for purposes of the Illinois Income Tax Act. In no
event shall the amount of the award credited under this Act
exceed the Illinois income tax liability of the pass-through
entity or its shareholders or partners for the taxable year.
For the purposes of this subsection (g), "tax payment"
means a payment as described in Article 6 or Article 8 of the
Illinois Income Tax Act or a composite payment made by a
pass-through entity on behalf of any of its shareholders or
partners to satisfy such shareholders' or partners' taxes
imposed pursuant to subsections (a) and (b) of Section 201 of
the Illinois Income Tax Act.
Section 10-215. Application for a project to create and
retain new jobs and to develop renewable energy.
(a) Any renewable energy enterprise proposing a project to
build a renewable energy production facility located or
planned to be located in a Clean Energy Empowerment Zone may
request consideration for designation of its project, by
formal written letter of request or by formal application to
the Department, in which the applicant states its intent to
make at least a specified level of investment and intends to
hire or retain a specified number of full-time employees at a

HB3967 - 65 - LRB102 14276 SPS 19628 b
designated location in Illinois. As circumstances require, the
Department may require a formal application from an applicant
and a formal letter of request for assistance.
(b) In order to qualify for credits under this Act, an
applicant's project must:
(1) be for the purpose of producing renewable energy;
(2) if the applicant has more than 100 employees,
involve an investment of at least $2,500,000 in capital
improvements to be placed in service within a Clean Energy
Empowerment Zone as a direct result of the project. If the
applicant has 100 or fewer employees, then there is no
capital investment requirement; and
(3) if the applicant has more than 100 employees,
employ a number of new employees in the Clean Energy
Empowerment Zone equal to the lesser of (A) 10% of the
number of full-time employees employed by the applicant
world-wide on the date the application is filed with the
Department; or (B) 50 new employees. If the applicant has
100 or fewer employees, employ a number of new employees
in the State equal to the lesser of (A) 5% of the number of
full-time employees employed by the applicant world-wide
on the date the application is filed with the Department
or (B) 50 New Employees.
(c) After receipt of an application, the Department shall
review the application, make inquiries, and conduct studies in
the manner and by the methods as it deems desirable, and

HB3967 - 66 - LRB102 14276 SPS 19628 b
consult with and make a recommendation to the Clean Energy
Empowerment Zone Board created under the Energy Community
Reinvestment Act. The Department and the Board shall make its
recommendations and approvals based on whether they determine
that all of the following conditions exist:
(1) The applicant's project will make the required
investment in the State and the applicant intends to hire
the required number of new employees in Illinois as a
result of that project, as described in this Act.
(2) The applicant's project is economically sound and
will benefit the people of the State of Illinois by
increasing opportunities for employment and strengthening
the economy of Illinois.
(3) That, if not for the credit, the project would not
occur in Illinois or in the Clean Energy Empowerment Zone,
which may be demonstrated by evidence that receipt of the
credit is essential to the applicant's decision to create
new jobs in the State, such as the magnitude of the cost
differential between Illinois and a competing state;
(4) The political subdivisions affected by the project
have committed local incentives or other support with
respect to the project, considering local ability to
assist.
(5) Awarding the credit will result in an overall
positive fiscal impact to the State, as certified by the
Board using the best available data.

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(6) The credit is not prohibited by Section 10-225.
(d) After approval by the Board, the Department may enter
into an agreement with the applicant.
Section 10-220. Relocation of jobs to Clean Energy
Empowerment Zone. A taxpayer is not entitled to claim the
credit provided by this Act with respect to any jobs that the
taxpayer relocates from one site in Illinois to another site
in a Clean Energy Empowerment Zone. A taxpayer with respect to
a qualifying project certified under the Corporate
Headquarters Relocation Act, however, is not subject to the
requirements of this Section, but is nevertheless considered
an applicant for purposes of this Act. Moreover, any full-time
employee of an eligible renewable energy enterprise relocated
to a Clean Energy Empowerment Zone in connection with that
qualifying project is deemed to be a new employee for purposes
of this Act. Determinations under this Section shall be made
by the Department.
Section 10-225. Determination of the amount of credit. In
determining the amount of credit that should be awarded, the
Board shall provide guidance on, and the Department shall take
into consideration, all of the following factors:
(1) the number and location of jobs created and
retained in relation to the economy of the Clean Energy
Empowerment Zone where the projected investment is to

HB3967 - 68 - LRB102 14276 SPS 19628 b
occur;
(2) the potential impact on the economy of the Clean
Energy Empowerment Zone;
(3) the advancement of renewable energy in the Clean
Energy Empowerment Zone;
(4) the incremental payroll attributable to the
project;
(5) the capital investment attributable to the
project;
(6) the amount of the average wage and benefits paid
by the applicant in relation to the wage and benefits of
the Clean Energy Empowerment Zone;
(7) the costs to Illinois and the affected political
subdivisions with respect to the project; and
(8) the financial assistance that is otherwise
provided by Illinois and the affected political
subdivisions.
Section 10-230. Amount and duration of credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 10 taxable years. The credit may be
stated as a percentage of the incremental income tax
attributable to the applicant's project and may include a
fixed dollar limitation. An agreement for the credit must be
finalized and signed by all parties while the area in which the

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project is located is designated a Clean Energy Empowerment
Zone. The credit may last longer than the applicable Clean
Energy Empowerment Zone designation. Agreements entered into
prior to the de-designation of a Clean Energy Empowerment Zone
shall be honored for the length of the agreement.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year as otherwise
provided in this subsection (b), the credit may be applied
against the State income tax liability in more than 10 taxable
years, but not in more than 15 taxable years for an eligible
green energy enterprise that: (i) qualifies under this Act and
the Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame
specified by the Department of Commerce and Economic
Opportunity under that Act; and (ii) applies against its State
income tax liability, during the entire 15-year period, no
more than 60% of the maximum credit per year that would
otherwise be available under this Act.
Any credit that is unused in the year the credit is
computed may be carried forward and applied to the tax
liability of the 5 taxable years following the excess credit
year. The credit shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one tax year that are available to offset a liability, the
earlier credit shall be applied first.

HB3967 - 70 - LRB102 14276 SPS 19628 b
Section 10-235. Contents of agreements with applicants.
The Department shall enter into an agreement with an applicant
that is awarded a credit under this Act.
Section 10-240. Certificate of verification; submission to
the Department of Revenue. A taxpayer claiming a credit under
this Act shall submit to the Department of Revenue a copy of
the Director's certificate of verification under this Act for
the taxable year. Failure to submit a copy of the certificate
with the taxpayer's tax return shall not invalidate a claim
for a credit.
Section 10-245. Supplier diversity. Each taxpayer claiming
a credit under this Act shall, no later than April 15 of each
taxable year for which the taxpayer claims a credit under this
Act, submit to the Department of Commerce and Economic
Opportunity an annual report containing the information
described in subsections (b), (c), (d), and (e) of Section
5-117 of the Public Utilities Act. Those reports shall be
submitted in the form and manner required by the Department of
Commerce and Economic Opportunity.
Section 10-250. Pass-through entity. The shareholders or
partners of a taxpayer that is a pass-through entity shall be
entitled to the credit allowed under the agreement. The credit
is in addition to any credit to which a shareholder or partner

HB3967 - 71 - LRB102 14276 SPS 19628 b
is otherwise entitled under a separate agreement under this
Act. A pass-through entity and a shareholder or partner of the
pass-through entity may not claim more than one credit under
the same agreement.
Section 10-255. Rules. The Department may adopt rules
necessary to implement this Part 2. The rules may provide for
recipients of credits under this Part 2 to be charged fees to
cover administrative costs of the tax credit program. Fees
collected shall be deposited into the Energy Community
Reinvestment Fund.
Section 10-260. Program terms and conditions.
(a) Any documentary materials or data made available or
received by any member of a board or any agent or employee of
the Department shall be deemed confidential and shall not be
deemed public records to the extent that the materials or data
consists of trade secrets, commercial or financial information
regarding the operation of the business conducted by the
applicant for or recipient of any tax credit under this Act, or
any information regarding the competitive position of a
business in a particular field of endeavor.
(b) Nothing in this Act shall be construed as creating any
rights in any applicant to enter into an agreement or in any
person to challenge the terms of any agreement.

HB3967 - 72 - LRB102 14276 SPS 19628 b
ARTICLE 15. Coal Severance Fee Act
Section 15-1. Short title. This Article may be cited as
the Coal Severance Fee Act. References in this Article to
"this Act" mean this Article.
Section 15-5. Coal severance fee.
(a) Definitions. As used in this Act:
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
(b) Tax imposed.
(1) On and after June 1, 2021, there is hereby imposed
a tax upon any person engaged in the business of severing
or preparing coal for sale, profit, or commercial use, if
the coal is severed from a mine located in this State. The
rate of the tax imposed under this Section is 6% of the
gross value of the severed coal.
(2) The liability for the tax accrues at the time the
coal is severed.
(c) Payment and collection of tax.
(1) The tax imposed under this Act shall be due and
payable on or before the 20th day of the month following

HB3967 - 73 - LRB102 14276 SPS 19628 b
the month in which the coal is severed.
(2) The State shall have a lien on all coal severed in
this State on or after June 1, 2021 to secure the payment
of the tax.
(d) Registration. A person who is subject to the tax
imposed under this Act shall register with the Department.
Application for a certificate of registration shall be made to
the Department upon forms furnished by the Department and
shall contain any reasonable information the Department may
require. Upon receipt of the application for a certificate of
registration in proper form, the Department shall issue to the
applicant a certificate of registration.
(e) Inspection of records by Department, subpoena power,
contempt. For the purpose of computing the amount of the tax
due under this Section, the Department has the following
powers:
(1) to require any person who is subject to this tax to
furnish any additional information deemed to be necessary
for the computation of the tax;
(2) to examine books, records, and files of such
person; and
(3) to issue subpoenas and examine witnesses under
oath. If any witness fails or refuses to appear at the
request of the Director, or if any witness refuses access
to books, records, or files, the circuit court of the
proper county, or the judge thereof, on application of the

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Department, shall compel obedience by proceedings for
contempt, as in the case of disobedience of the
requirements of a subpoena issued from that court or a
refusal to testify therein.
(f) Returns. Each taxpayer shall make a return to the
Department showing the following:
(1) the name of the taxpayer;
(2) the address of the taxpayer's principal place of
business;
(3) the quantity of coal severed or prepared during
the month for which the return is filed;
(4) the gross value of the severed coal;
(5) the amount of tax due;
(6) the signature of the taxpayer; and
(7) any other reasonable information as the Department
may require.
(g) The return shall be filed on or before the 20th day of
the month after the month during which the coal is severed. The
Department may require any additional report or information it
deems necessary for the proper administration of this Act.
(h) Returns due under this Section shall be filed
electronically in the manner prescribed by the Department.
Taxpayers shall make all payments of the tax to the Department
under this Act by electronic funds transfer unless, as
provided by rule, the Department grants an exception upon
petition of a taxpayer. Returns must be accompanied by

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appropriate computer generated magnetic media supporting
schedule data in the format required by the Department,
unless, as provided by rule, the Department grants an
exception upon petition of a taxpayer.
(i) Incorporation by reference. All of the provisions of
Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b,
6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and all provisions of the Uniform Penalty and Interest Act
shall apply, as far as practicable, to the subject matter of
this Act to the same extent as if such provisions were included
herein.
(j) Rulemaking. The Department is hereby authorized to
adopt rules as may be necessary to administer and enforce the
provisions of this Act.
(k) Distribution of proceeds. All moneys received by the
Department under this Act shall be paid into the Energy
Community Reinvestment Fund.
Article 90. Amendatory Provisions
Section 90-5. The Illinois Administrative Procedure Act is
amended by adding Section 45.8 as follows:
(5 ILCS 100/45.8 new)
Sec. 45.8. Emergency rulemaking; Energy Community

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Reinvestment Act. To provide for the expeditious and timely
implementation of the Energy Community Reinvestment Act,
emergency rules may be adopted in accordance with Section 5-45
by the Department of Commerce and Economic Opportunity to
implement Section 5-15 of the Energy Community Reinvestment
Act with respect to applications for designation as Clean
Energy Empowerment Zones. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
Section 90-10. The State Finance Act is amended by adding
Section 5.935 as follows:
(30 ILCS 105/5.935 new)
Sec. 5.935. The Energy Community Reinvestment Fund.
Section 90-15. The Illinois Income Tax Act is amended by
changing Section 201 as follows:
(35 ILCS 5/201)
(Text of Section without the changes made by P.A. 101-8,
which did not take effect (see Section 99 of P.A. 101-8))
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege

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of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior

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to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.

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(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years

HB3967 - 80 - LRB102 14276 SPS 19628 b
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.

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(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in

HB3967 - 82 - LRB102 14276 SPS 19628 b
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.

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(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the

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case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:

HB3967 - 85 - LRB102 14276 SPS 19628 b
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a

HB3967 - 86 - LRB102 14276 SPS 19628 b
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a

HB3967 - 87 - LRB102 14276 SPS 19628 b
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability

HB3967 - 88 - LRB102 14276 SPS 19628 b
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal

HB3967 - 89 - LRB102 14276 SPS 19628 b
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or

HB3967 - 90 - LRB102 14276 SPS 19628 b
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be

HB3967 - 91 - LRB102 14276 SPS 19628 b
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of

HB3967 - 92 - LRB102 14276 SPS 19628 b
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined 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. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, there shall be allowed a credit under this
subsection (f) to be determined in accordance with the

HB3967 - 93 - LRB102 14276 SPS 19628 b
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the
Internal Revenue Code. The credit shall be .5% of the
basis for such property. The credit shall be available
only in the taxable year in which the property is placed in
service in the Enterprise Zone or River Edge Redevelopment
Zone and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1985, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"

HB3967 - 94 - LRB102 14276 SPS 19628 b
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise

HB3967 - 95 - LRB102 14276 SPS 19628 b
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of

HB3967 - 96 - LRB102 14276 SPS 19628 b
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, there

HB3967 - 97 - LRB102 14276 SPS 19628 b
shall be allowed a credit under this Section to be
determined 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.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall
not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

HB3967 - 98 - LRB102 14276 SPS 19628 b
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.

HB3967 - 99 - LRB102 14276 SPS 19628 b
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same

HB3967 - 100 - LRB102 14276 SPS 19628 b
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be

HB3967 - 101 - LRB102 14276 SPS 19628 b
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction constructions jobs
credit. For taxable years beginning on or after January 1,
2021, there shall also be allowed a High Impact Business
construction jobs credit against the tax imposed under
subsections (a) and (b) of this Section as provided in
subsections (i) and (j) of Section 5.5 of the Illinois
Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of
federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income

HB3967 - 102 - LRB102 14276 SPS 19628 b
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
amendatory Act of the 101st General Assembly) shall not exceed
$20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried

HB3967 - 103 - LRB102 14276 SPS 19628 b
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit

HB3967 - 104 - LRB102 14276 SPS 19628 b
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
there shall be allowed a credit under this subsection (j) to be
determined 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.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2027, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by

HB3967 - 105 - LRB102 14276 SPS 19628 b
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this subsection to be determined 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.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over

HB3967 - 106 - LRB102 14276 SPS 19628 b
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 this
amendatory Act of the 91st General Assembly in construing this
Section for taxable years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2027, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22) this

HB3967 - 107 - LRB102 14276 SPS 19628 b
amendatory Act of the 100th General Assembly. All actions
taken in reliance on the continuation of the credit under this
subsection (k) by any taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois

HB3967 - 108 - LRB102 14276 SPS 19628 b
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
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.
(ii) A credit allowed under this subsection that is

HB3967 - 109 - LRB102 14276 SPS 19628 b
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"

HB3967 - 110 - LRB102 14276 SPS 19628 b
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is

HB3967 - 111 - LRB102 14276 SPS 19628 b
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"

HB3967 - 112 - LRB102 14276 SPS 19628 b
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related

HB3967 - 113 - LRB102 14276 SPS 19628 b
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).

HB3967 - 114 - LRB102 14276 SPS 19628 b
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in

HB3967 - 115 - LRB102 14276 SPS 19628 b
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
revised 11-18-20.)
(Text of Section with the changes made by P.A. 101-8,

HB3967 - 116 - LRB102 14276 SPS 19628 b
which did not take effect (see Section 99 of P.A. 101-8))
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the

HB3967 - 117 - LRB102 14276 SPS 19628 b
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and

HB3967 - 118 - LRB102 14276 SPS 19628 b
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017 and
beginning prior to January 1, 2021, an amount equal to
4.95% of the taxpayer's net income for the taxable year.
(5.5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2021,
an amount calculated under the rate structure set forth in
Section 201.1.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net

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income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the

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taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017 and beginning prior to
January 1, 2021, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(15) In the case of a corporation, for taxable years
beginning on or after January 1, 2021, an amount equal to
7.99% of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization

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license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a

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result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.

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(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,

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shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of

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Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment

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Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time

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equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land

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or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new

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shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within

HB3967 - 130 - LRB102 14276 SPS 19628 b
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)

HB3967 - 131 - LRB102 14276 SPS 19628 b
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined 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. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone; Clean Energy Empowerment Zone.

HB3967 - 132 - LRB102 14276 SPS 19628 b
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act, or for investment in renewable
energy enterprises located in Clean Energy Empowerment
Zones created pursuant to the Energy Community
Reinvestment Act. For partners, shareholders of Subchapter
S corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
purposes of federal and State income taxation, there shall
be allowed a credit under this subsection (f) to be
determined 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. The
credit shall be .5% of the basis for such property. The
credit shall be available only in the taxable year in
which the property is placed in service in the Enterprise
Zone or River Edge Redevelopment Zone and shall not be
allowed to the extent that it would reduce a taxpayer's
liability for the tax imposed by subsections (a) and (b)
of this Section to below zero. For tax years ending on or
after December 31, 1985, the credit shall be allowed for

HB3967 - 133 - LRB102 14276 SPS 19628 b
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit year. The credit
shall be applied to the earliest year for which there is a
liability. If there is credit from more than one tax year
that is available to offset a liability, the credit
accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).

HB3967 - 134 - LRB102 14276 SPS 19628 b
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting

HB3967 - 135 - LRB102 14276 SPS 19628 b
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.

HB3967 - 136 - LRB102 14276 SPS 19628 b
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, there
shall be allowed a credit under this Section to be
determined 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.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9
this amendatory Act of the 101st General Assembly) shall
not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).

HB3967 - 137 - LRB102 14276 SPS 19628 b
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in

HB3967 - 138 - LRB102 14276 SPS 19628 b
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);

HB3967 - 139 - LRB102 14276 SPS 19628 b
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for

HB3967 - 140 - LRB102 14276 SPS 19628 b
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction constructions jobs
credit. For taxable years beginning on or after January 1,
2021, there shall also be allowed a High Impact Business
construction jobs credit against the tax imposed under
subsections (a) and (b) of this Section as provided in
subsections (i) and (j) of Section 5.5 of the Illinois
Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's

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liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of
federal and State income taxation, there shall be allowed a
credit under this Section to be determined 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.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
amendatory Act of the 101st General Assembly) shall not exceed
$20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)

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and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by

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recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
there shall be allowed a credit under this subsection (j) to be
determined 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.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each

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of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2027, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this subsection to be determined 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.
For purposes of this subsection, "qualifying expenditures"

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means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax

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liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 this
amendatory Act of the 91st General Assembly in construing this
Section for taxable years beginning before January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2027, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22) this
amendatory Act of the 100th General Assembly. All actions
taken in reliance on the continuation of the credit under this
subsection (k) by any taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs

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approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.

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The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
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.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A

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credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax

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years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which

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satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material

HB3967 - 152 - LRB102 14276 SPS 19628 b
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available

HB3967 - 153 - LRB102 14276 SPS 19628 b
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the

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taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to

HB3967 - 155 - LRB102 14276 SPS 19628 b
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
Section 90-20. The Retailers' Occupation Tax Act is
amended by adding Section 5k-5 as follows:
(35 ILCS 120/5k-5 new)
Sec. 5k-5. Building materials exemption; Clean Energy
Empowerment Zone. Each retailer who makes a sale of building
materials to be incorporated into renewable energy projects in
a Clean Energy Empowerment Zone established under the Energy
Community Reinvestment Act may deduct receipts from such sales
when calculating the tax imposed by this Act. A renewable
energy enterprise or other entity shall not make tax-free
purchases under this Section unless it has an active exemption

HB3967 - 156 - LRB102 14276 SPS 19628 b
certificate at the time of purchase, which shall be issued by
the Department in a form prescribed by the Department. The
Department shall adopt by rule all other requirements
necessary for the implementation and operation of this
Section.
Section 90-25. The Public Utilities Act is amended by
adding Sections 9-222.1B and 16-108.9 as follows:
(220 ILCS 5/9-222.1B new)
Sec. 9-222.1B. Clean Energy Empowerment Zone exemption. A
renewable energy enterprise that is located within a Clean
Energy Empowerment Zone established under the Energy Community
Reinvestment Act shall be exempt from the additional charges
added to the renewable energy enterprise's utility bills as a
pass-on of municipal and State utility taxes under Sections
9-221 and 9-222 of this Act, to the extent such charges are
exempted by ordinance adopted in accordance with paragraph (e)
of Section 8-11-2 of the Illinois Municipal Code in the case of
municipal utility taxes, and to the extent such charges are
exempted by the percentage specified by the Department of
Commerce and Economic Opportunity in the case of State utility
taxes, provided such renewable energy enterprise meets the
following criteria:
(1) it (i) makes investments that cause the creation
of a minimum of 200 full-time equivalent jobs in Illinois;

HB3967 - 157 - LRB102 14276 SPS 19628 b
(ii) makes investments of at least $175,000,000 that cause
the creation of a minimum of 150 full-time equivalent jobs
in Illinois; (iii) makes investments that cause the
retention of a minimum of 300 full-time equivalent jobs in
the manufacturing sector, as defined by the North American
Industry Classification System, in an area in Illinois in
which the unemployment rate is above 9% and makes an
application to the Department within 3 months after the
effective date of this amendatory Act of the 102nd General
Assembly and certifies relocation of the 300 full-time
equivalent jobs within 48 months after the application; or
(iv) makes investments that cause the retention of a
minimum of 1,000 full-time jobs in Illinois;
(2) it is located in a Clean Energy Empowerment Zone
established under the Energy Community Reinvestment Act;
and
(3) it is certified by the Department of Commerce and
Economic Opportunity as complying with the requirements
specified in clauses (1) and (2) of this Section.
The Department of Commerce and Economic Opportunity shall
determine the period during which such exemption from the
charges imposed under Section 9-222 is in effect which shall
not exceed 30 years or the term of the Clean Energy Empowerment
Zone, whichever period is shorter, except that the exemption
period for a renewable energy enterprise qualifying under item
(iii) of clause (1) of this Section shall not exceed 30 years.

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The Department of Commerce and Economic Opportunity has
the power to adopt rules to carry out the provisions of this
Section including procedures for complying with the
requirements specified in clauses (1) and (2) of this Section
and procedures for applying for the exemptions authorized
under this Section; to define the amounts and types of
eligible investments that a renewable energy enterprise must
make in order to receive State utility tax exemptions pursuant
to Sections 9-222 and 9-222.1 of this Act; to approve such
utility tax exemptions for renewable energy enterprise whose
investments are not yet placed in service; and to require that
renewable energy enterprise granted tax exemptions repay the
exempted tax should the renewable energy enterprise fail to
comply with the terms and conditions of the certification.
However, no renewable energy enterprise shall be required, as
a condition for certification under clause (3) of this
Section, to attest that its decision to invest under clause
(1) of this Section and to locate under clause (2) of this
Section is predicated upon the availability of the exemptions
authorized by this Section.
A renewable energy enterprise shall be exempt, in whole or
in part, from the pass-on charges of municipal utility taxes
imposed under Section 9-221, only if it meets the criteria
specified in clauses (1) through (3) of this Section and the
municipality has adopted an ordinance authorizing the
exemption under paragraph (e) of Section 8-11-2 of the

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Illinois Municipal Code. Upon certification of the renewable
energy enterprise by the Department of Commerce and Economic
Opportunity, the Department of Commerce and Economic
Opportunity shall notify the Department of Revenue of such
certification. The Department of Revenue shall notify the
public utilities of the exemption status of renewable energy
enterprises from the pass-on charges of State and municipal
utility taxes. Such exemption status shall be effective within
3 months after certification of the renewable energy
enterprise.
(220 ILCS 5/16-108.9 new)
Sec. 16-108.9. Clean Energy Empowerment Zone pilot
projects.
(a) The General Assembly finds that it is important to
support the rapid transition in the energy sector to put
Illinois on a path to 100% renewable energy. This will require
leveraging new technologies and solutions to support grid
reliability to address issues such as the shift from large,
centralized, fossil generation to wind, solar, and distributed
energy resources. To that end, the General Assembly sees the
need for developing pilot projects in Clean Energy Empowerment
Zones that enhance reliability while facilitating the
transition toward clean energy.
(b) An electric utility serving more than 100,000 retail
customers may propose one or more Clean Energy Empowerment

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Zone pilot projects to the Illinois Commerce Commission to
conduct a competitive procurement for independently owned
energy storage systems to be located in Clean Energy
Empowerment Zones. The Commission shall evaluate the projects
based on their ability to address present and future
reliability needs identified by the Midcontinent Independent
System Operator, PJM Interconnection, electric utilities, or
independent analysts. In addition to supporting reliability, a
qualifying project must support the transition toward or
development of clean energy.
(c) The Clean Energy Empowerment Zones described in this
Section shall be the same as defined by the Department of
Commerce and Economic Opportunity in the Energy Community
Reinvestment Act.
(d) The Clean Energy Empowerment Zone pilot projects shall
closely coordinate with actual and expected development of new
wind projects and new solar projects as described in Section
1-75 of the Illinois Power Agency Act, electric vehicle
adoption, and Community Energy, Climate, and Jobs Plans as
defined in the Community Energy, Climate, and Jobs Planning
Act.
(e) Upon approval of a Clean Energy Empowerment Zone pilot
project by the Illinois Commerce Commission, an electric
utility is authorized to enter into a distribution services
contract with new energy storage system projects in accordance
with the approved project. Nothing in this Section or in the

HB3967 - 161 - LRB102 14276 SPS 19628 b
distribution services contract shall preclude the energy
storage project from providing additional wholesale market
services.
(f) An electric utility that elects to undertake the
investment described in subsection (b) of this Section may, at
its election, recover the costs of such investment through an
automatic adjustment clause tariff or through a delivery
services charge regardless of how the costs are classified on
the utility's books and records of account.
(g) To the extent feasible and consistent with State and
federal law, the investments made pursuant to this Section
shall provide employment opportunities for former workers in
fossil fuel industries.
(h) Nothing in this Section is intended to limit the
ability of any other entity to develop, construct, or install
an energy storage system. In addition, nothing in this Section
is intended to limit or alter otherwise applicable
interconnection requirements.
Section 90-30. The Environmental Protection Act is amended
by changing Section 9.10 and by adding Section 9.18 as
follows:
(415 ILCS 5/9.10)
Sec. 9.10. Fossil fuel-powered electric generating units
Fossil fuel-fired electric generating plants.

HB3967 - 162 - LRB102 14276 SPS 19628 b
(a) As used in this Section:
"Board" means the Illinois Pollution Control Board.
"BIPOC" and "black, indigenous, and people of color" are
defined as people who are members of the groups described in
subparagraphs (a) through (e) of paragraph (A) of subsection
(1) of Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
"Emissions" means greenhouse gases, particulate matter,
mercury, nitrogen oxides, sulfur dioxide, and any other
pollutant that the Agency deems appropriate for regulation to
protect health or land in the State.
"Frontline community" means any community or municipality
within a 3-mile radius of a fossil fuel-powered electric
generating unit.
"Meaningful involvement" means: (1) potentially affected
populations have an appropriate opportunity to participate in
decisions about a proposed regulatory action that may affect
their environment or health; (2) the populations'
contributions can influence the EPA's rulemaking decisions;
(3) the concerns of all participants involved shall be
considered in the decision-making process; and (4) the IEPA
shall seek out and facilitate the involvement of populations
potentially affected by the IEPA's proposed regulatory action.
(a-1) (a) The General Assembly finds and declares that:
(1) fossil fuel-powered electric generating units
fossil fuel-fired electric generating plants are a

HB3967 - 163 - LRB102 14276 SPS 19628 b
significant source of air emissions in this State and have
become the subject of a number of important new studies of
their effects on the public health;
(2) existing state and federal policies, that allow
older plants that meet federal standards to operate
without meeting the more stringent requirements applicable
to new plants, are being questioned on the basis of their
environmental impacts and the economic distortions such
policies cause in a deregulated energy market;
(3) fossil fuel-powered electric generating units
fossil fuel-fired electric generating plants are, or may
be, affected by a number of regulatory programs, some of
which are under review or development on the state and
national levels, and to a certain extent the international
level, including the federal acid rain program,
tropospheric ozone, mercury and other hazardous pollutant
control requirements, regional haze, and global warming;
(4) scientific uncertainty regarding the formation of
certain components of regional haze and the air quality
modeling that predict impacts of control measures requires
careful consideration of the timing of the control of some
of the pollutants from these facilities, particularly
sulfur dioxides and nitrogen oxides that each interact
with ammonia and other substances in the atmosphere;
(5) the development of energy policies to promote a
safe, sufficient, reliable, and affordable energy supply

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on the state and national levels is being affected by the
on-going deregulation of the power generation industry and
the evolving energy markets;
(6) the Governor's formation of an Energy Cabinet and
the development of a State energy policy calls for actions
by the Agency and the Board that are in harmony with the
energy needs and policy of the State, while protecting the
public health and the environment;
(7) reducing greenhouse gas emissions and other air
pollutants such as particulate matter, sulfur dioxide, and
nitrogen oxide is critical to improving the health and
welfare of Illinois residents by decreasing respiratory
diseases, cardiovascular diseases, and related
mortalities; lowering customers' energy costs; and
responding to the growing impacts of climate change from
fossil fuel generation;
(8) through reductions in harmful emissions and
strategic planning for Illinois residents currently
employed by and communities reliant on fossil fuel-powered
electric generating units, eliminating greenhouse gas
emissions from the electricity generation sector is a
priority for the State;
(9) The House of Representatives of the 100th General
Assembly recognized this problem and, in adopting House
Resolution 490 on June 26, 2017, it supported the Paris
Climate Agreement and urged the State of Illinois to join

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the United States Climate Alliance and develop a plan to
achieve 100% clean energy by 2045;
(7) Illinois coal is an abundant resource and an
important component of Illinois' economy whose use should
be encouraged to the greatest extent possible consistent
with protecting the public health and the environment;
(8) renewable forms of energy should be promoted as an
important element of the energy and environmental policies
of the State and that it is a goal of the State that at
least 5% of the State's energy production and use be
derived from renewable forms of energy by 2010 and at
least 15% from renewable forms of energy by 2020;
(10) (9) efforts on the state and federal levels are
underway to consider the multiple environmental
regulations affecting electric generating plants in order
to improve the ability of government and the affected
industry to engage in effective planning through the use
of multi-pollutant strategies; and
(11) (10) these issues, taken together, call for a
comprehensive review of the impact of these facilities on
the public health, considering also the energy supply,
reliability, and costs, the role of renewable forms of
energy, and the developments in federal law and
regulations that may affect any state actions, prior to
making final decisions in Illinois.
(b) Taking into account the findings and declarations of

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the General Assembly contained in subsection (a) of this
Section, the Agency shall, within 180 days after the effective
date of this amendatory Act of the 102nd General Assembly,
initiate a rulemaking to amend Title 35 of the Illinois
Administrative Code to establish annual declining greenhouse
gas pollution caps and caps on co-pollutants, including, but
not limited to, particulate matter (including both PM10 and
PM2.5), mercury, nitrogen oxides, and sulfur dioxide, beginning
in 2023 from all fossil fuel-powered electric generating units
(including, but not limited to, coal-fired, coal-derived,
oil-fired, combustion turbine, integrated gasification
combined cycle, and cogeneration facilities with a nameplate
capacity that exceeds 25 MW) so as to progressively eliminate
all emissions of those pollutants from Illinois' electric
sector by the year 2030. No later than one year after receipt
of the Agency's proposal under this Section, the Board shall
adopt rules setting out declining annual emissions caps for
greenhouse gases (CO2 equivalent) and co-pollutants,
including, but not limited to, particulate matter (including
both PM10 and PM2.5), mercury, nitrogen oxides, and sulfur
dioxide, for each individual fossil fuel-powered electric
generating unit in Illinois as well as aggregate annual
statewide emissions caps. The Board may set different
declining caps for each plant, but caps must decline to zero
emissions for all plants by 2030. As part of its rulemaking
proposal, the Agency shall:

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(1) ensure that power plants located near densely
populated and environmental justice communities and those
with sulfur dioxide emission rates above 0.0007 pounds per
million Btu are prioritized for more rapid, mandatory,
plant-specific emissions reductions for both greenhouse
gases and co-pollutants;
(2) develop an environmental justice analysis, in
partnership with the Illinois Commission on Environmental
Justice and with frontline community feedback, to inform a
draft rule proposal and identification of power plants of
particular concern requiring priority emissions
reductions. This analysis shall include a cumulative
impacts assessment and use existing methodologies and
findings, used and as may be updated by the Illinois Power
Agency and its Administrator in its Illinois Solar for All
Program, taking into account the following factors:
(A) Population density;
(B) National-Scale Air Toxics Assessment (NATA)
air toxics cancer risk;
(C) NATA respiratory hazard index;
(D) NATA diesel PM;
(E) particulate matter;
(F) ozone;
(G) traffic proximity and volume;
(H) lead paint indicator;
(I) proximity to Risk Management Plan sites;

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(J) proximity to Hazardous Waste Treatment,
Storage, and Disposal Facilities;
(K) proximity to National Priorities List sites;
(L) Wastewater Dischargers Indicator;
(M) percent low-income;
(N) percent black, indigenous, and people of
color;
(O) percent less than a high school education;
(P) linguistic isolation;
(Q) age (individuals under age 5 or over 64);
(R) number of asthma-related emergency department
visits; and
(S) frequency of low birth weight infants;
(3) conduct a robust and inclusive stakeholder process
prior to initiating a rulemaking proceeding before the
Illinois Pollution Control Board that ensures the
meaningful participation of Illinois residents, especially
those most impacted by fossil fuel-powered electric
generating units. To ensure meaningful involvement in its
stakeholder process, the agency shall:
(A) include a formal public comment period with at
least 4 public hearings located in communities
geographically dispersed, where fossil fuel-powered
electric generating units are located;
(B) ensure full and fair access for working
residents by providing opportunity for public comment

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outside the workday; and
(C) issue a responsiveness summary with a draft
rulemaking briefly describing and responding to, at a
minimum, all frontline community comments raised
during the stakeholder process and public comment
period;
(4) participate in strategic planning efforts with the
Department of Commerce and Economic Opportunity to
identify needs and initiatives for communities and workers
economically impacted by the decline in fossil fuel
generation;
(5) evaluate individual units using the criteria above
and set appropriate annually declining caps for emission
reductions, which ultimately result in caps of zero
emissions from all fossil fuel-powered electric generating
units by January 1, 2030;
(6) include provisions to allow owners or operators of
fossil fuel-powered electric generating units to continue
operating while using their best efforts to resolve any
reliability requirements with regional grid operators and
cease operations as soon as practicable in situations
where achieving the emission reductions required by the
Agency's rulemaking proposal necessitates that a
particular unit cease operations and a regional grid
operator determines that operation of that unit is
required to continue to maintain transmission reliability.

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The Agency's rulemaking proposal shall include mechanisms
designed to limit, to the extent possible, any such
disruption to the State's emission reduction program,
including an evaluation of when and how advanced notice of
intended unit closures should be given to regional grid
operators; and
(7) establish emissions caps for (i) individual fossil
fuel-powered electric generating units and (ii) the entire
electric sector. The emissions caps shall include all
emissions, including greenhouse gases and co-pollutants.
(A) Annual aggregate electric sector emissions
caps. The aggregate emissions cap shall apply to the
entire Illinois electric sector and include the sum of
emissions from all fossil fuel-powered electric
generating units. The Agency shall establish a
schedule through which the aggregate cap shall decline
annually. A baseline amount shall be calculated by
averaging the emissions from 2017, 2018, and 2019 of
plants operating as of the effective date of this
amendatory Act of the 102nd General Assembly. To
ensure consistent progress toward the goal of
eliminating all emissions from Illinois' electric
sector by 2030, the annual aggregate emissions cap
shall decrease each year by no less than 7% of the
baseline amount.
(B) Annual unit-specific emissions caps. Annual

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emissions caps shall apply to each fossil fuel-powered
electric generating unit in the State and be
consistent with achieving the aggregate emissions cap.
Starting in 2023, the annual emissions cap for each
plant shall be no greater than the highest emissions
amount from any of the 3 previous years of operation.
If a plant first became operational less than 3 years
before being subject to a unit-specific emissions cap,
then the annual emissions cap for such a plant shall be
no greater than its previous year of operation; or if a
fossil fuel-powered electric generating unit has been
operational less than one year, then the Agency shall
set a cap that is consistent with achieving the
aggregate emissions cap and the goal of eliminating
all emissions from Illinois' electric sector by 2030.
(C) Annual report. Each year, the Agency shall
prepare and publish a report on the implementation,
review, and updating of the schedules regulating
annual emissions caps as described in this subsection.
This report shall include:
(i) an accounting of all greenhouse gas and
co-pollutant caps on, and actual emissions from,
individual plants demonstrating the Agency's
implementation of the requirements in this
subsection; and
(ii) an accounting of the aggregate declining

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cap schedules demonstrating the adequacy of the
schedules to achieve net-zero emissions in the
electric sector by 2030, and any changes to the
schedules.
In addition to the information required under
items (i) and (ii), the 2025 report shall include a
review of the Agency's rules regulating annual
greenhouse gas pollution and co-pollutant caps in
light of projected emissions for the remaining years
until 2030 and demonstrate the adequacy of its rules
and policies to achieve net-zero emissions in the
electric sector by 2030. Should the Agency conclude
its current rules and policies are insufficient to
eliminate emissions from all fossil fuel-powered
electric generating units by January 1, 2030 and
comply with all other requirements in this Section, it
shall initiate a rulemaking no later than 180 days
from reaching this conclusion amending its rules to do
so.
before September 30, 2004, but not before September 30, 2003,
issue to the House and Senate Committees on Environment and
Energy findings that address the potential need for the
control or reduction of emissions from fossil fuel-fired
electric generating plants, including the following
provisions:
(1) reduction of nitrogen oxide emissions, as

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appropriate, with consideration of maximum annual
emissions rate limits or establishment of an emissions
trading program and with consideration of the developments
in federal law and regulations that may affect any State
action, prior to making final decisions in Illinois;
(2) reduction of sulfur dioxide emissions, as
appropriate, with consideration of maximum annual
emissions rate limits or establishment of an emissions
trading program and with consideration of the developments
in federal law and regulations that may affect any State
action, prior to making final decisions in Illinois;
(3) incentives to promote renewable sources of energy
consistent with item (8) of subsection (a) of this
Section;
(4) reduction of mercury as appropriate, consideration
of the availability of control technology, industry
practice requirements, or incentive programs, or some
combination of these approaches that are sufficient to
prevent unacceptable local impacts from individual
facilities and with consideration of the developments in
federal law and regulations that may affect any state
action, prior to making final decisions in Illinois; and
(5) establishment of a banking system, consistent with
the United States Department of Energy's voluntary
reporting system, for certifying credits for voluntary
offsets of emissions of greenhouse gases, as identified by

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the United States Environmental Protection Agency, or
other voluntary reductions of greenhouse gases. Such
reduction efforts may include, but are not limited to,
carbon sequestration, technology-based control measures,
energy efficiency measures, and the use of renewable
energy sources.
The Agency shall consider the impact on the public health,
considering also energy supply, reliability and costs, the
role of renewable forms of energy, and developments in federal
law and regulations that may affect any state actions, prior
to making final decisions in Illinois.
(c) Nothing in this Section is intended to or should be
interpreted in a manner to limit or restrict the authority of
the Illinois Environmental Protection Agency to propose, or
the Illinois Pollution Control Board to adopt, any regulations
applicable or that may become applicable to the facilities
covered by this Section that are required by federal law and
other Illinois laws.
(d) The Agency may file proposed rules with the Board to
effectuate the goals set forth in subsection (b) its findings
provided to the Senate Committee on Environment and Energy and
the House Committee on Environment and Energy in accordance
with subsection (b) of this Section. Any such proposal shall
not be submitted sooner than 90 days after the issuance of the
findings provided for in subsection (b) of this Section. The
Board shall take action on any such proposal within one year of

HB3967 - 175 - LRB102 14276 SPS 19628 b
the Agency's filing of the proposed rules.
(e) Enforcement.
(1) Any person may file with the Board a complaint,
following the procedures contained in subsection (d) of
Section 31 of this Act, against any person, the State of
Illinois, or any government official for failure to
perform any act or nondiscretionary duty under this
Section or for allegedly violating this Section, any rule
or regulation adopted under this Section, any permit or
term or condition of a permit related to this Section, or
any Board order issued pursuant to this Section. Any
person shall have standing in an action under this Section
before the Board. Any person may intervene as a party as a
matter of right in any legal action concerning this
Section, whichever the forum, if he or she is or may be
adversely affected by any failure to perform any act or
nondiscretionary duty under this Section or any alleged
violation of this Section, any rule or regulation adopted
under this Section, any permit or term or condition of a
permit, or any Board order, by any person, the State of
Illinois, or any government official.
(2) In an action brought pursuant to this Section, any
person may request, and the Board or court may grant,
injunctive relief, damages (including reasonable attorney
and expert witness fees), and any other remedy available
pursuant to Sections 33 or 42 of this Act. The Board or

HB3967 - 176 - LRB102 14276 SPS 19628 b
court may, if a temporary restraining order or preliminary
injunction is sought, require the filing of a bond or
equivalent security in accordance with the Illinois Code
of Civil Procedure.
(3) No existing civil or criminal remedy shall be
excluded or impaired by this Section. This Section shall
apply only to those electrical generating units that are
subject to the provisions of Subpart W of Part 217 of Title
35 of the Illinois Administrative Code, as promulgated by
the Illinois Pollution Control Board on December 21, 2000.
(Source: P.A. 92-12, eff. 7-1-01; 92-279, eff. 8-7-01.)
(415 ILCS 5/9.18 new)
Sec. 9.18. Energy community reinvestment fee.
(a) As used in this Section:
"Carbon dioxide equivalent" means a unit of measure
denoting the amount of emissions from a greenhouse gas,
expressed as the amount of carbon dioxide by weight that
produces the same global warming impact.
"Fossil fuel generating plant" means an electric
generating unit or a co-generating unit that produces
electricity using fossil fuels.
"Payment period" means the three-month period of time
during which emissions are measured for the purpose of
quarterly fee calculation.
(b) The General Assembly finds and declares that:

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(1) the negative effects of fossil fuel-powered
electric generating units on human health, environmental
quality, and the climate of our planet require Illinois to
swiftly retire all such plants and shift to 100% renewable
energy;
(2) communities located near fossil fuel-powered
electric generating units have experienced these health
and environmental impacts most acutely;
(3) communities located near fossil fuel-powered
electric generating units will also experience economic
challenges as these plants retire;
(4) the assessment of a fee on the emissions of fossil
fuel generating plants will lower the exposure of
surrounding communities to harmful air pollutants by
providing incentive for fossil fuel generating plants to
reduce emissions;
(5) it is in the public interest that communities
located near fossil fuel-fired electric generating plants
should receive support in the form of economic
reinvestment, as recompense for the negative impacts of
the operation of fossil fuel-fired electric generating
plants, to invest in clean energy developments that reduce
the cumulative impacts of air pollution thus protecting
the public health, and as a means for creating new
economic growth and opportunity which is needed when the
plants retire; and

HB3967 - 178 - LRB102 14276 SPS 19628 b
(6) this support should be paid for by the owners and
operators of fossil fuel-fired electric generating plants,
the operation of which caused harm to the surrounding
communities.
(c) Calculation of the Energy Community Reinvestment Fee.
The Agency shall establish procedures for the collection of
energy community reinvestment fees. Energy community
reinvestment fees shall be paid at least quarterly (once every
3 months) by owners of all fossil fuel generating plants in
Illinois, based on the share of each plant's contribution to
the total amount of air pollution emitted by all fossil fuel
generating plants in that payment period, as determined by the
Agency and described in this subsection (c).
(1) Pollution Calculation. The energy community
reinvestment fee shall be calculated to reflect the
pollution burden from fossil fuel generating plants, based
on the total emissions of greenhouse gases. The fee shall
be calculated based solely on emissions of carbon dioxide,
methane, and nitrous oxide measured in carbon dioxide
equivalent tons. The exclusive use of carbon dioxide,
methane, and nitrous oxide in the calculation of the fee
is designed to reflect the overall pollution impact from
each fossil fuel generating plant by using these
pollutants as a proximate measurement of overall
emissions.
(2) Fee Calculation. The Agency shall calculate the

HB3967 - 179 - LRB102 14276 SPS 19628 b
fee owed by each fossil fuel generating plant owner for
each payment period by dividing (A) the total emissions of
carbon dioxide equivalents in tons by each plant as
described under paragraph (1) of this subsection (c) by
(B) the total emissions of carbon dioxide equivalents in
tons of all fossil fuel generating plants subject to the
energy community reinvestment fee, and multiplying that
figure by (C) the portion of the annual revenue
requirements, established in subsection (d) of Section
5-70 of the Energy Community Reinvestment Act, for that
payment period.
(3) Right to Fee Reduction. The owner of each plant
liable to pay the energy community reinvestment fee shall
have the right to reduce its liability based on
electricity production as described in this paragraph (3).
If requested, the total amount owed each payment period
for any plant shall be no greater than the total amount of
kilowatt hours of electricity produced by the plant during
the payment period multiplied by one cent per kilowatt
hour, adjusted for inflation from the year this Act takes
effect. Upon request by a plant owner the Agency shall
adjust the total amount owed for each payment period by
the amount necessary to reflect a maximum cost calculated
based on electricity production.
(4) Notification by the Agency. The first payment
period shall begin June 1, 2021. No later than September

HB3967 - 180 - LRB102 14276 SPS 19628 b
1, 2021, and every 3 months thereafter on the first of the
month, the Agency shall notify each fossil fuel generating
plant owner of the fee calculated pursuant to paragraph
(2) of this subsection (c) for the quarterly period just
concluded.
(5) Fee Collection. Plant owners shall remit payment
of their fee to the Agency within 30 days after the close
of each payment period, as established by the Agency.
Funds collected from the energy community reinvestment fee
shall be deposited into the Energy Community Reinvestment
Fund.
(d) Clean Energy Empowerment Zone Task Force involvement.
If the Agency receives notification from the Department of
Commerce and Economic Opportunity that a plant owner has
failed to engage productively in stakeholder meetings and with
Clean Energy Empowerment Zone Task Forces, as described in the
Energy Community Reinvestment Act, an enforcement action may
be brought under Section 31 of this Act. In addition to any
other relief that may be obtained as part of the enforcement
action, the Agency may seek to recover the avoided engagement
fees. The avoided engagement fees shall be calculated as
double the amount that is owed by the plant owner under
subsection (c) for the current payment period, and subsequent
payment periods, until the Department of Commerce and Economic
Opportunity sends notification to the Agency that the plant
owner is in compliance with the stakeholder engagement

HB3967 - 181 - LRB102 14276 SPS 19628 b
requirements of the Energy Community Reinvestment Act. Avoided
engagement fees (which, for clarity, are in addition to fees
collected under subsection (c)) shall be deposited into the
Energy Community Reinvestment Fund to be directed solely to
support the local community's own planning efforts and
investments, and the Agency shall transmit a notification to
the Department of Commerce and Economic Opportunity of the
amount collected, and the plant owner responsible.
(e) If a plant owner subject to a fee under this Section
fails to pay the fee within 90 days after its due date, or
makes the fee payment from an account with insufficient funds
to cover the amount of the fee payment, the Agency shall notify
the plant owner of the failure to pay the fee. If the plant
owner fails to pay the fee within 60 days after such
notification, the Agency may, by written notice, immediately
revoke the air pollution operating permit. Failure of the
Agency to notify the plant owner of failure to pay a fee due
under this Section, or the payment of the fee from an account
with insufficient funds to cover the amount of the fee
payment, does not excuse or alter the duty of the plant owner
to comply with the provisions of this Section.
(f) No later than November 30 of each year, the Agency
shall submit a report to the Department of Commerce and
Economic Opportunity describing the amount of fees collected
from each fossil fuel-powered electric generating unit, the
status of any delinquencies, and the total amount expected to

HB3967 - 182 - LRB102 14276 SPS 19628 b
be collected.
(g) Nothing in this Section shall be interpreted to mean
that the sum owed by each fossil fuel generating plant due to
the energy community reinvestment fee is equal to or greater
than the financial valuation of the total harm created by air
pollution from each plant.
(h) Enforcement.
(1) Any person may file with the Board a complaint,
following the procedures contained in subsection (d) of
Section 31 of this Act, against any person, the State of
Illinois, or any government official for failure to
perform any act or nondiscretionary duty under this
Section or for allegedly violating this Section, any rule
or regulation adopted under this Section, any permit or
term or condition of a permit related to this Section, or
any Board order issued pursuant to this Section. Any
person shall have standing in an action under this Section
before the Board. Any person may intervene as a party as a
matter of right in any legal action concerning this
Section, whichever the forum, if he or she is or may be
adversely affected by any failure to perform any act or
nondiscretionary duty under this Section or any alleged
violation of this Section, any rule or regulation adopted
under this Section, any permit or term or condition of a
permit, or any Board order, by any person, the State of
Illinois, or any government official. Any person with

HB3967 - 183 - LRB102 14276 SPS 19628 b
standing to commence an action pursuant to subsection (e)
of Section 9.10 shall have standing to pursue enforcement
under this Section.
(2) In an action brought pursuant to this Section, any
person may request, and the Board or court may grant,
injunctive relief, damages (including reasonable attorney
and expert witness fees), and any other remedy available
pursuant to Sections 33 or 42 of this Act. The Board or
court may, if a temporary restraining order or preliminary
injunction is sought, require the filing of a bond or
equivalent security in accordance with the Illinois Code
of Civil Procedure.
(3) No existing civil or criminal remedy shall be
excluded or impaired by this Section.
(415 ILCS 5/9.15 rep.)
Section 90-35. The Environmental Protection Act is amended
by repealing Section 9.15.
Section 90-40. The Illinois Nuclear Facility Safety Act is
amended by adding Section 10 as follows:
(420 ILCS 10/10 new)
Sec. 10. Local government nuclear impact fees.
(a) As used in this Section:
"Local taxing body" means any unit of government that

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assesses and collects property taxes.
"Qualifying Nuclear Facility" means a facility playing or
having played a direct role in the operation of commercial
nuclear power reactors for the generation of electricity;
including facilities used to process radioactive materials for
nuclear fuel fabrication, nuclear power reactors, high-level
and low-level radioactive waste treatment sites, and storage
and disposal locations.
"Qualifying Nuclear Operator" means any entity that
operates or has in the past 50 years operated a Qualifying
Nuclear Facility.
(b) Notwithstanding any other provision of law to the
contrary, any local taxing body may establish and collect an
annual Nuclear Impact Fee from Qualifying Nuclear Facility
within the boundaries of that local taxing body.
(c) The Nuclear Impact Fee shall be charged to the
Qualifying Nuclear Operator.
(d) The Nuclear Impact Fee may only be applied
prospectively on or after the effective date of this
amendatory Act of the 102nd General Assembly, and may not be
applied retroactively to a date before which this amendatory
Act is passed.
(e) The Nuclear Impact Fee permission granted to local
taxing bodies under these rules shall expire separately for
each individual local taxing body. That date of expiration of
the Nuclear Impact Fee permission for each local taxing body

HB3967 - 185 - LRB102 14276 SPS 19628 b
shall be either exactly 30 years after the effective date of
this amendatory Act of the 102nd General Assembly, or 10 years
following the permanent shutdown of the Qualifying Nuclear
Facility from which the local taxing body collected property
taxes, whichever date is later.
(f) In any calendar year, a local taxing body may not
impose a Nuclear Impact Fee that exceeds 25% of the average
annual amount of property taxes, or payments in lieu of taxes,
paid to that local taxing body by the Qualifying Nuclear
Facility over the most recent 5-year period that the
Qualifying Nuclear Facility has been operational.
(g) Any failure by the Qualifying Nuclear Operator to pay
a Nuclear Impact Fee within 180 days after the fee payment
deadline shall be deemed a failure to comply, and shall
automatically require the Qualifying Nuclear Operator to pay
the Local Entity double the otherwise-allowable property
taxes, up to 50% of the average annual amount of property taxes
paid over the most recent 5-year period that the Qualifying
Nuclear Facility was operational.
(h) To establish a Nuclear Impact Fee, the local taxing
body shall adopt a resolution or ordinance describing the
public need for economic transition, the annual amount of the
fee, the Qualifying Nuclear Facility, the Qualifying Nuclear
Operator to be assessed, and a description of projected
expenses for the fee for the period the fee is in effect. The
local taxing body shall conduct a public hearing before

HB3967 - 186 - LRB102 14276 SPS 19628 b
adopting a resolution or ordinance imposing a Nuclear Impact
Fee permitted under this Section. The hearing shall be held
within the boundaries of the local taxing body. Public notice
of the time, place, and purpose of the hearing shall be given
at least 10 business days before the date of the hearing.
(i) A local taxing body shall include in its resolution or
ordinance the method for collection of payment of a Nuclear
Impact Fee. A county which has adopted a resolution or
ordinance imposing a Nuclear Impact Fee may collect such Fees
in the regular property tax bills of the county. The county
collector of the county in which a local taxing body has
adopted a resolution or ordinance imposing a Nuclear Impact
Fee may bill and collect such Fees with the regular property
tax bills of the county if requested by a local taxing body
within its jurisdiction.
(j) The revenue collected through the Nuclear Impact Fee
by a local taxing body shall only be used for the purposes of
supporting the "economic transition" of local communities that
have experienced the closure of a Qualifying Nuclear Facility
or will experience a Qualifying Nuclear Facility in the
future. "Economic transition" uses may include tax base
replacement, workforce development, public school funding,
essential public service, or sustainable infrastructure
projects.
(k) The revenue collected under this Section shall not be
used either directly or indirectly to aid, subsidize, enact,

HB3967 - 187 - LRB102 14276 SPS 19628 b
support, or otherwise enable investment in any electricity
generation infrastructure that processes or can process fossil
or nuclear fuels.
(l) No later than November 30 of each calendar year, each
local taxing body collecting a Nuclear Impact Fee pursuant to
this Section shall remit to the Department of Revenue for
deposit in the Energy Community Reinvestment Fund 20% of the
annual revenue collection from any Nuclear Impact Fees in
order to help fund state programs that support economic
transition and workforce development, showing such information
as the Department of Revenue may reasonably require.
(m) No later than November 30 of each calendar year, each
local taxing body collecting a Nuclear Impact Fee pursuant to
this Section shall submit to the Department of Commerce and
Economic Opportunity and the Agency a report detailing the
total amount of funds collected from any Nuclear Impact Fees,
the planned expenditure of the funds, the coordination of
expenditure with any Department economic transition activities
and investments, copies of any adoption of or amendments to
resolutions or ordinances impacting the assessment of Nuclear
Impact Fees, and a certification of the remittance of the
State portion of the funds collected to the Department of
Revenue.
(n) The Department of Commerce and Economic Opportunity
may establish such rules as it deems necessary to implement
this Section.

HB3967 - 188 - LRB102 14276 SPS 19628 b
Section 99. Effective date. This Act takes effect upon
becoming law.
HB3967 - 189 - LRB102 14276 SPS 19628 b
INDEX
Statutes amended in order of appearance