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


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


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

HB3967LRB102 14276 SPS 19628 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
ARTICLE 1. Findings
5 Section 1-5. Findings. The General Assembly finds that:
6 (a) The growing clean energy economy in Illinois can be a
7vehicle for expanding equitable access to public health,
8safety, a cleaner environment, quality jobs, economic
9opportunity, and wealth-building, particularly in economically
10disadvantaged communities and communities of black,
11indigenous, and people of color that have had to bear the
12disproportionate burden of dirty fossil fuel pollution.
13 (b) Placing Illinois on a path to 100% renewable energy is
14vital to a clean energy future. To bring this vision to
15fruition, our energy policy must prioritize a just transition
16that incentivizes renewable development and other
17carbon-reducing policies, such as energy efficiency,
18beneficial electrification, and peak demand reduction, while
19ensuring that the benefits and opportunities of a carbon-free
20future are accessible in economically disadvantaged
21communities, environmental justice communities, and
22communities of black, indigenous, and people of color.
23 (c) In the wake of federal reversals on climate action,

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1the State of Illinois should pursue immediate action on
2policies that will ensure a just and responsible phase out of
3fossil fuels from the power sector to reduce harmful emissions
4from Illinois power plants, support power plant communities
5and workers, and allow the clean energy economy to continue
6growing in every corner of Illinois.
7 (d) Illinois needs to adopt a broad-based policy approach
8to decarbonize Illinois' electric sector (including
9electricity production and consumption) in a just and
10equitable manner that puts our State on track to phase out
11carbon dioxide emitting power plants by 2030.
12 (e) Illinois' policy approach must ensure the reduction of
13co-pollutant emissions that cause serious local health
14impacts, prioritizing environmental justice communities near
15power plants.
16 (f) As we decarbonize Illinois' electric sector, Illinois
17must create new investment to stimulate the economic and
18environmental well-being of communities disproportionately
19impacted by the historical operation of, and recent or
20expected closures of, fossil fuel power plants and coal mining
21operations.
22
ARTICLE 5. Energy Community Reinvestment Act
23 Section 5-1. Short title. This Article may be cited as the
24Energy Community Reinvestment Act. References in this Article

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1to "this Act" mean this Article.
2 Section 5-5. Findings. The General Assembly finds that, as
3part of putting Illinois on a path to 100% renewable energy,
4the State of Illinois should ensure a just transition to that
5goal, providing support for the transition of Illinois'
6communities and workers impacted by closures or reduced use of
7fossil fuel power plants, nuclear power plants, or coal mines
8by allocating new economic development resources for business
9tax incentives, workforce training, site clean-up and reuse,
10and local tax revenue replacement.
11 The General Assembly finds and declares that the health,
12safety, and welfare of the people of this State are dependent
13upon a healthy economy and vibrant communities; that the
14closure of fossil fuel power plants, nuclear power plants, and
15coal mines across the State have a significant impact on their
16surrounding communities; that the expansion of renewable
17energy creates significant job growth and contributes
18significantly to the health, safety, and welfare of the people
19of this State; that the continual encouragement, development,
20growth, and expansion of renewable energy within the State
21requires a cooperative and continuous partnership between
22government and the renewable energy sector; and that there are
23certain areas in this State that have lost, or will lose, jobs
24due to the closure of fossil fuel power plants, nuclear power
25plants, and coal mines and need the particular attention of

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1government, labor, and the residents of Illinois to help
2attract new investment into these areas and directly aid the
3local community and its residents.
4 Therefore, it is declared to be the purpose of this Act to
5explore ways of stimulating the growth of new private
6investment, including renewable energy investment, in this
7State and to foster job growth in areas impacted by the closure
8of coal energy plants, coal mines, and nuclear energy plants.
9 Section 5-10. Definitions. As used in this Act, unless the
10context otherwise requires:
11 "State agencies" or "agencies" has the same meaning as
12"State agencies" under Section 1-7 of the Illinois State
13Auditing Act.
14 "Board" means the Clean Energy Empowerment Zone Board
15created in Section 5-20.
16 "Clean Energy Empowerment Zone" or "Empowerment Zones"
17means an area of the State certified by the Department as a
18Clean Energy Empowerment Zone under this Act.
19 "Commission" means the Energy Transition Workforce
20Commission created in Section 5-45.
21 "Department" means the Department of Commerce and Economic
22Opportunity.
23 "Displaced energy worker" means an energy worker who has
24lost employment, or is anticipated by the Department to lose
25employment within the next 2 years, due to the reduced

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1operation or closure of a fossil fuel power plant, nuclear
2power plant, or coal mine.
3 "Energy worker" means a person who has been employed
4full-time for a period of one year or longer, and within the
5previous 5 years, at a fossil fuel power plant, a nuclear power
6plant, or a coal mine located within the State of Illinois,
7whether or not they are employed by the owner of the power
8plant or mine. Energy workers are considered to be full-time
9if they work at least 35 hours per week for 45 weeks a year or
10the 1,820 work-hour equivalent with vacations, paid holidays,
11and sick time, but not overtime, included in this computation.
12Classification of an individual as an energy worker continues
13for 5 years from the latest date of employment or the effective
14date of this Act, whichever is later.
15 "Environmental justice communities" means the definition
16of that term based on existing methodologies and findings,
17used and as may be updated by the Illinois Power Agency and its
18program administrator in the Illinois Solar for All Program.
19 "Fossil fuel power plant" means an electric generating
20facility powered by gas, coal, other fossil fuels, or a
21combination thereof.
22 "Low-income" means persons and families whose income does
23not exceed 80% of area median income, adjusted for family size
24and revised every 2 years.
25 "Local labor market area" means an economically integrated
26area within which individuals reside and find employment

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1within a reasonable distance of their places of residence or
2can readily change jobs without changing their places of
3residence.
4 "Renewable energy enterprise" means a company that is
5engaged in the production, manufacturing, distribution, or
6development of renewable energy resources and associated
7technologies.
8 "Renewable energy project" means a project conducted by a
9renewable energy enterprise for the purpose of generating
10renewable energy resources or energy storage.
11 "Renewable energy resources" has the meaning set forth in
12Section 1-10 of the Illinois Power Agency Act.
13 "Rule" has the meaning set forth in Section 1-70 of the
14Illinois Administrative Procedure Act.
15 Section 5-15. Designation of Clean Energy Empowerment
16Zones.
17 (a) Purpose. It is the intent of the General Assembly that
18designation of a community as a Clean Energy Empowerment Zone
19shall be reserved for communities that have experienced
20economic or environmental hardship due to the energy
21transition or fossil fuel power generation and extraction. The
22purpose of this Section 5-45 is to establish an efficient and
23equitable process by which the Department and communities
24across the State may seek the designation of Clean Energy
25Empowerment Zones, thereby allowing for economic and

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1environmental benefits of the clean energy economy to be
2obtained by communities that have been deprived of these
3benefits. The process conducted by the Department, the Board,
4and participating units of local government shall be as
5transparent and inclusive as is reasonably practical.
6 (b) Notification of local governments. Within 30 days
7after the effective date of this Act, the Department shall
8publish a notice on its website stating its intention to begin
9the review of potential locations for Clean Energy Empowerment
10Zone regional designations, and solicit information from the
11public on this topic. Within 45 days after the effective date
12of this Act, the Department shall submit a notice to the county
13board of each jurisdiction in which a fossil fuel power plant,
14coal mine, or nuclear power plant is located, informing the
15local governments of their intention to develop a list of
16Clean Energy Empowerment Zones, providing a basic explanation
17of the benefits of designation as a Clean Energy Empowerment
18Zone, and informing them of participation opportunities in the
19designation process. The Department may notify other persons
20or local government units of this process at any time.
21 (c) Proposed list of Clean Energy Empowerment Zones.
22Within 120 days after the effective date of this Act, the
23Department of Commerce and Economic Opportunity shall develop
24a proposed list of geographic regions in Illinois that qualify
25as Clean Energy Empowerment Zones. The Department shall work
26with the Illinois Environmental Protection Agency, the

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1Commission on Environmental Justice, the Department of Labor,
2the Department of Natural Resources, and community
3organizations to identify regions impacted by the decline of
4coal generation, gas generation, nuclear generation, and coal
5mining to develop the recommended list of regions that qualify
6for Clean Energy Empowerment Zone designations. The Department
7shall furnish maps that identify the proposed boundaries of
8proposed Clean Energy Empowerment Zones, and include
9justification for the inclusion or exclusion of certain
10locations or regions. The proposed list shall be subject to
11the notice and comment process established in subsection (e).
12 (d) Criteria for designation as a Clean Energy Empowerment
13Zone. A region shall be proposed by the Department, and
14certified by the Board as a Clean Energy Empowerment Zone if it
15meets all of the following characteristics listed in
16paragraphs (1) through (3) of this subsection (d).
17 (1) The region is a contiguous area, provided that a
18 Zone area may exclude wholly surrounded territory within
19 its boundaries;
20 (2) The region satisfies any additional criteria
21 established by the Department consistent with the purposes
22 of this Act; and
23 (3) The region meets one or more of the following:
24 (A) the area contains a fossil fuel or nuclear
25 power plant that was retired from service or has
26 significantly reduced service within 10 years before

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1 the application for designation or will be retired or
2 have service significantly reduced within 5 years
3 following the application for designation;
4 (B) the area contains a coal mine that was closed
5 or had operations significantly reduced within 10
6 years before the application for designation or is
7 anticipated to be closed or have operations
8 significantly reduced within 5 years following the
9 application for designation; or
10 (C) the area contains a nuclear power plant that
11 was decommissioned, but continued storing nuclear
12 waste before the effective date of this Act.
13 (e) Review and comment process. After developing the
14proposed list of regions to be designated as Clean Energy
15Empowerment Zones, or proposing additions to the list, the
16Department shall conduct a 60-day public comment process, in
17partnership with the other agencies, departments, and units of
18local government where beneficial for the purposes of this
19Section. The public comment process shall include, at a
20minimum, 2 public hearings that are accessible to working
21residents, shall prioritize the solicitation of feedback from
22environmental justice communities and communities directly
23impacted by the Clean Energy Empowerment Zone designation, and
24shall provide for the submission of written comments through
25the Internet.
26 Within 30 days after concluding the public comment

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1process, the Department shall modify or finalize the proposed
2list of geographic regions that qualify as Clean Energy
3Empowerment Zones and submit the list to the Clean Energy
4Empowerment Zone Board for approval or modification as
5described in Section 5-20.
6 (f) Local government self-designation. After the
7Department submits its first list of proposed Clean Energy
8Empowerment Zones to the Board, units of local government may,
9on an ongoing basis, submit applications to the Department to
10designate an area wholly or partially in their jurisdiction as
11a Clean Energy Empowerment Zone if the Department has not
12proposed the region as a potential Clean Energy Empowerment
13Zone to the Board. Multiple units of local government may
14submit a joint application for designation if the proposed
15region or regions fall partially or wholly within their
16combined jurisdictions. A unit of local government may submit
17an application to the Department if:
18 (1) the area meets the criteria for designation as a
19 Clean Energy Empowerment Zone established in subsection
20 (d); and
21 (2) the unit of local government has conducted at
22 least one public hearing within the proposed Zone area
23 considering all of the following questions: (A) whether to
24 create the Zone; (B) what local plans, tax incentives, and
25 other programs should be established in connection with
26 the zone; and (C) what the boundaries of the Zone should

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1 be. Public notice of the hearing shall be published in at
2 least one newspaper of general circulation within the Zone
3 area, not more than 21 days nor less than 7 days before the
4 hearing.
5 An application submitted under this subsection (f) shall
6include a certified copy of the ordinance designating the
7proposed Zone; a map of the proposed Clean Energy Empowerment
8Zone, showing existing streets and highways; an analysis, and
9any appropriate supporting documents and statistics,
10demonstrating that the proposed zone area is qualified in
11accordance with subsection (d); a statement detailing any tax,
12grant, and other financial incentives or benefits, and any
13programs, to be provided by the municipality or county to
14renewable energy enterprises within the Zone, which are not
15otherwise provided throughout the municipality or county; a
16statement setting forth the economic development and planning
17objectives for the Zone; an estimate of the economic impact of
18the Zone, considering all of the tax incentives, financial
19benefits and programs contemplated, upon the revenues of the
20municipality or county; a specific definition of the
21applicant's local labor market area; a transcript of all
22public hearings on the Zone; and any additional information as
23the Department may by rule require.
24 Within 60 days after receiving an application from a unit
25of local government, the Department shall review the
26application to determine whether the designated area qualifies

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1as a Clean Energy Empowerment Zone under this Section, and
2submit its recommendation to the Clean Energy Empowerment Zone
3Board including all necessary information and records for the
4Board to review, as described in Section 5-20. Within 7 days
5after submitting the recommendation to the Board, the
6Department shall provide a copy of its recommendation to the
7applicant, including all supporting documents and information
8submitted to the Board.
9 (g) Application process. The Department shall, no later
10than July 1, 2021, develop an ongoing application process for
11Clean Energy Empowerment Zone applications by units of local
12government. The application process shall be open during the
13period of July 1, 2021 through January 1, 2050. The
14Department, or any predecessor of the Department, may extend
15the application process beyond that date if it deems it is
16necessary or prudent to accomplish the purpose of this Act.
17 (h) Length of designation. A Clean Energy Empowerment Zone
18designation lasts for 10 years from the effective date of the
19designation and shall be subject to review by the Board after
2010 years for an additional 10-year designation beginning on
21the expiration date of the Clean Energy Empowerment Zone.
22During the review process, the Board shall consider the costs
23incurred by the State and units of local government as a result
24of benefits received by the Clean Energy Empowerment Zone.
25 (i) Emergency rulemaking. The Department has emergency
26rulemaking authority for the purpose of implementation of this

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1Section until 12 months after the effective date of this Act as
2provided under Section 5-45 of the Illinois Administrative
3Procedure Act.
4 Section 5-20. Clean Energy Empowerment Zone Board.
5 (a) A Clean Energy Empowerment Zone Board is hereby
6created within the Department.
7 (b) The Board shall consist of 8 voting members, one of
8whom shall be the Director of Commerce and Economic
9Opportunity, or his or her designee, who shall serve as
10chairperson; one of whom shall be the Director of Revenue, or
11his or her designee; 2 of whom shall be members appointed by
12the Governor, with the advice and consent of the Senate; one of
13whom shall be appointed by the Speaker of the House of
14Representatives; one of whom shall be appointed by the
15President of the Senate; one of whom shall be appointed by the
16Minority Leader of the House; and one of whom shall be
17appointed by the Minority Leader of the Senate. Designees
18shall be appointed within 60 days after a vacancy. No fewer
19than 4 of the 8 voting members shall consist of low-income
20residents or residents of environmental justice communities.
21At least one of the Board members shall be a representative of
22organized labor. All meetings shall be accessible, with
23rotating locations, call-in options, and materials and agendas
24circulated well in advance, and there shall also be
25opportunities for input outside of meetings from those with

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1limited capacity and ability to attend, via one-on-one
2meetings, surveys, and calls.
3 Board members shall serve without compensation, but may be
4reimbursed for necessary expenses incurred in the performance
5of their duties from funds appropriated for that purpose. Each
6member appointed shall have at least 5 years of experience in
7business development or economic development. The Department
8of Commerce and Economic Opportunity shall provide
9administrative support to the Board, including the selection
10of a Department staff member to serve as a Board Liaison
11between the Department and the Advisory Board.
12 (c) All final actions by the Board pursuant to this
13subsection (c) shall require approval by a simple majority of
14the Board. The Board shall have the following duties:
15 (1) reviewing applications and extensions for
16 designation as a Clean Energy Empowerment Zone, including
17 Department recommendations, testimony from public
18 hearings, public comment, and supporting materials;
19 (2) voting to approve, disapprove, or modify
20 applications for designation and extensions as a Clean
21 Energy Empowerment Zones;
22 (3) the approval of tax credits under the Clean Energy
23 Empowerment Zone Tax Credit Act; and
24 (4) modifying applications for designation or
25 extensions as a Clean Energy Empowerment Zone before
26 approval.

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1 (d) Deadlines for responses by the Board. Within 60 days
2after submission of applications or tax credits, pursuant to
3subsection (c) of this Section, to the Board by the
4Department, the Board shall approve, disapprove, or modify
5applications for certification of regions as Clean Energy
6Empowerment Zones. If the Board does not take final action on a
7submission within 60 days after the submission, the
8application submitted by the Department shall be considered
9approved, and the regions proposed in the application shall be
10certified as Clean Energy Empowerment Zones.
11 Section 5-25. Incentives for renewable energy enterprises
12located within a Clean Energy Empowerment Zone.
13 (a) Renewable energy enterprises located in Clean Energy
14Empowerment Zones are eligible to apply for a State income tax
15credit under the Clean Energy Empowerment Zone Tax Credit Act.
16 (b) Renewable energy enterprises located in Clean Energy
17Empowerment Zones are eligible to receive an investment credit
18subject to the requirements of paragraph (1) of subsection (f)
19of Section 201 of the Illinois Income Tax Act.
20 (c) Renewable energy enterprises are eligible to purchase
21building materials exempt from use and occupation taxes to be
22incorporated into their renewable energy projects within the
23Clean Energy Empowerment Zone when purchased from a retailer
24within the Clean Energy Empowerment Zone under Section 5k-5 of
25the Retailers' Occupation Tax Act.

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1 (d) Renewable energy enterprises located in a Clean Energy
2Empowerment Zone that meet the qualifications of Section
39-222.1B of the Public Utilities Act are exempt, in part or in
4whole, from State and local taxes on gas and electricity.
5 (e) Preference for procurements shall be conducted by the
6Illinois Power Agency as described in subparagraph (P) of
7paragraph (1) of subsection (c) of Section 1-75 of the
8Illinois Power Agency Act.
9 Section 5-30. State incentives regarding public services
10and physical infrastructure.
11 (a) The State Treasurer is authorized and encouraged to
12place deposits of State funds with financial institutions
13doing business in a Clean Energy Empowerment Zone.
14 (b) This Act does not restrict tax incentive financing
15under Division 74.4 of Article 11 of the Illinois Municipal
16Code.
17 Section 5-35. Supporting impacted communities.
18 (a) No later than July 1, 2021, the Department shall
19develop a process for accepting applications from units of
20local government included in Clean Energy Empowerment Zones to
21mitigate the impact of an annual reduction of at least 30% in
22the sum of property tax revenue or other direct payments, or
23both, from fossil fuel power plants or coal mines to local
24governments due to the retirement, or reduced operation, of

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1the power plant or mine that occurred after January 1, 2016. In
2the case of reduced operation, the proposal may only be
3accepted if the reduction in operation is reasonably expected
4to be permanent. The Department shall accept applications on
5an ongoing basis after beginning the program. Local government
6units may submit applications jointly.
7 (b) The Department shall use available funds from the
8Energy Community Reinvestment Fund, subject to the provisions
9of subsection (c) of Section 5-70, to provide payments to
10communities for a period of no longer than 5 years from the
11approval of their proposal, subject to the following
12restrictions:
13 (1) Payments shall be assessed based on need, taking
14 into consideration the net amount of any increase in
15 payments from any other State source, including, but not
16 limited to, funding provided based on an evidence-based
17 funding formula developed by the Illinois State Board of
18 Education.
19 (2) The highest annual payment to the unit of local
20 government cannot exceed the lower value of either (i) the
21 average annual sum of property tax and other direct
22 payments from the fossil fuel power plant or coal mine to
23 the unit of local government from the most recent 3
24 taxable years before the reduction or cessation of
25 operation of the fossil fuel power plant or coal mine, or
26 (ii) the difference between projected local government

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

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

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1 Clean Energy Empowerment Zones.
2 (c) The Department shall contact all units of local
3government in Clean Energy Empowerment Zones and provide
4information on the application process for funding under this
5Section and a reasonable estimate of total funding that will
6be available for this program. The Department shall request
7that applications for funding contain the information
8necessary for the Department to evaluate the fiscal impact of
9the energy transition on communities located in Clean Energy
10Empowerment Zones; however the Department shall allow for
11reasonable flexibility in the applications to accommodate
12local government units that may have less resources available
13to prepare an application. The Department shall, to the extent
14practical, assist local government units in the application
15process.
16 (d) The Department shall develop rules to implement the
17provisions of this Section.
18 Section 5-40. Clean Energy Empowerment Task Forces.
19 (a) The Department and the Board shall work with local
20stakeholders in Clean Energy Empowerment Zones to support the
21convening of local Clean Energy Empowerment Task Forces.
22 (b) Local Clean Energy Empowerment Task Forces shall
23include a broad range of local stakeholders to inform
24transition needs and include, at a minimum, elected
25representatives from municipal and State governments,

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1operators of local power plants or mines, multiple
2representatives from community-based organizations, local
3environmental, fish, or wildlife groups, organized labor, and
4the Illinois Environmental Protection Agency.
5 (c) The Board shall put forward requests for proposals for
6third-party facilitators for Task Forces in prioritized Clean
7Energy Empowerment Zones based on need and those facing recent
8or near-term retirements of plants or mines.
9 (d) The Department shall work with local Task Forces to
10develop local transition plans that identify economic,
11workforce, and environmental health needs with strategies to
12mitigate energy transition impacts and any accompanying
13funding requests from the Energy Community Reinvestment Fund.
14 (e) As part of developing local transition plans, the
15Department shall work with third-party facilitators and Task
16Force members to gather and incorporate public comment and
17feedback into a finalized transition plan.
18 (f) If the Department determines that a fossil fuel power
19plant owner has failed to engage productively in stakeholder
20meetings and with Clean Energy Empowerment Zone Task Forces,
21the Department shall submit a notification to the Illinois
22Environmental Protection Agency for enforcement actions and
23the assessment of fees as described in Section 9.16 of the
24Environmental Protection Act.
25 Section 5-45. Energy Transition Workforce Commission.

HB3967- 22 -LRB102 14276 SPS 19628 b
1 (a) The Energy Transition Workforce Commission is hereby
2created within the Department of Commerce and Economic
3Opportunity.
4 (b) The Commission shall consist of the following 5
5members:
6 (1) the Director of Commerce and Economic Opportunity,
7 or his or her designee, who shall serve as chairperson;
8 (2) the Director of Labor, or his or her designee; and
9 (3) 3 members appointed by the Governor, with the
10 advice and consent of the Senate, of which at least one
11 shall be from organized labor and at least one shall be a
12 resident of an environmental justice community.
13 Designees shall be appointed within 60 days after a
14vacancy.
15 (c) Members of the Commission shall serve without
16compensation, but may be reimbursed for necessary expenses
17incurred in the performance of their duties from funds
18appropriated for that purpose. The Department of Commerce and
19Economic Opportunity shall provide administrative support to
20the Commission.
21 (d) Within 120 days after the effective date of this Act,
22the Commission shall produce an Energy Transition Workforce
23Report regarding the anticipated impact of the energy
24transition and a comprehensive set of recommendations to
25address changes to the Illinois workforce during the period of
262020 through 2050, or a later year. The report shall contain

HB3967- 23 -LRB102 14276 SPS 19628 b
1the following elements, designed to be used for the programs
2created in this Act:
3 (1) Information related to the impact on current
4 workers, including:
5 (A) a comprehensive accounting of all employees
6 who currently work in fossil fuel energy generation,
7 nuclear energy generation, and coal mining in the
8 State; this shall include information on their
9 location, employer, salary ranges, full-time or
10 part-time status, nature of their work, educational
11 attainment, union status, and other factors the
12 Commission finds relevant; the Commission shall keep a
13 confidential list of these employees and the
14 information necessary to identify them for the purpose
15 of their eligibility to participate in programs
16 designed for their benefit;
17 (B) the anticipated schedule of closures of fossil
18 fuel power plants, nuclear power plants, and coal
19 mines across the State; when information is
20 unavailable to provide exact data, the report shall
21 include approximations based upon the best available
22 information;
23 (C) an estimate of worker impacts due to scheduled
24 closures, including layoffs, early retirements, salary
25 changes, and other factors the Commission finds
26 relevant; and

HB3967- 24 -LRB102 14276 SPS 19628 b
1 (D) the likely outcome for workers who are
2 employed by facilities that are anticipated to close
3 or have significant layoffs during their tenure or
4 lifetime.
5 (2) Information regarding impact on communities and
6 local governments, including:
7 (A) changes in the revenue for units of local
8 government in areas that currently or recently have
9 had a closure or reduction in operation of a fossil
10 fuel power plant, nuclear power plant, coal mine, or
11 related industry;
12 (B) environmental impacts in areas that currently
13 or recently have had fossil fuel power plants, coal
14 mines, nuclear power plants, or related industry; and
15 (C) economic impacts of the energy transition,
16 including, but not limited to, the supply chain
17 impacts of the energy transition shift toward new
18 energy sources across the State.
19 (3) Information on emerging industries and State
20 economic development opportunities in regions that have
21 historically been the site of fossil fuel power plants,
22 nuclear power plants, or coal mining.
23 (e) Following the completion of each report, or if the
24Department finds that it is prudent to begin before the
25completion of a report, the Department shall coordinate with
26the Commission to create a comprehensive draft plan for

HB3967- 25 -LRB102 14276 SPS 19628 b
1designing, maintaining, and funding programs established under
2this Act, including the Energy Workforce Development Program
3created under Section 5-50, the Energy Community Development
4Program created under Section 5-55, and the Displaced Energy
5Workers Bill of Rights provided under Section 5-60. The draft
6plan shall include, at a minimum, the following information:
7 (1) A detailed accounting of the anticipated costs for
8 each program and the anticipated amount of funding that
9 will be provided for each program.
10 (2) Information on the locations at which each program
11 shall have services provided. If this information is not
12 yet known by the Department at the time of the plan's
13 drafting, the Department shall generally explain how they
14 intend to determine the program locations.
15 Within 120 days after the effective date of this Act, the
16Department shall publish the draft plan online. The Department
17shall take public comments on the draft plan for a period of no
18less than 45 days and publish the final plan within 30 days
19after the closing of the comment period.
20 (f) The Department shall periodically review its findings
21in the developed reports and make modifications to the report
22and programs based on new findings. The Department shall
23conduct a comprehensive reevaluation of the report, and
24publish a modified version along with a new draft plan, on each
25of the following years following initial publication: 2023;
262027; 2030; 2035; 2040; and any year thereafter which the

HB3967- 26 -LRB102 14276 SPS 19628 b
1Department determines is necessary or prudent.
2 Section 5-50. Energy Workforce Development Program.
3 (a) The purpose of the Energy Workforce Development
4Program is to proactively assist energy workers in their
5search for economic opportunity.
6 (b) The Director of Commerce and Economic Opportunity
7shall design, develop, and administer the Energy Workforce
8Development Program. The Energy Workforce Development Program
9shall include the following elements:
10 (1) comprehensive career services for displaced energy
11 workers, including advising displaced energy workers
12 looking for new positions on finding new employment or
13 preparing for retirement;
14 (2) communication services to provide displaced energy
15 workers advance notice of any power plant or coal mine
16 closures that are likely to result in a loss of employment
17 for the energy worker;
18 (3) administrative assistance for displaced energy
19 workers in applying for programs provided by the State,
20 the federal government, nonprofit organizations, or other
21 programs that are designed to offer career or financial
22 assistance;
23 (4) the creation and maintenance of a registry of all
24 persons in Illinois who qualify as an energy worker to use
25 for coordination with programs created under this Act or

HB3967- 27 -LRB102 14276 SPS 19628 b
1 other benefits for those workers, including all
2 information necessary or beneficial for the implementation
3 of this Act;
4 (5) the management of funding for services outlined in
5 this Section; and
6 (6) financial advice for displaced energy workers
7 designed to assist workers with retirement, a change in
8 positions, pursuing an education, or other goals that the
9 energy worker has identified.
10 (c) In administering the Energy Workforce Development
11Program, the Department shall develop and implement the
12Program with the following goals:
13 (1) to use the recommendations and information
14 contained in the report created under Section 5-45 to
15 proactively plan for each phase of the energy transition
16 in Illinois;
17 (2) to increase access to the services contained in
18 this Program by locating services in different regions of
19 the State as dictated by the anticipated schedule of power
20 plant and coal mine closures and regional economic
21 changes;
22 (3) to maximize the efficiency of resources used;
23 (4) to design the Energy Workforce Development Program
24 to work in collaboration with the Displaced Energy Workers
25 Bill of Rights; and
26 (5) any other goals identified by the Department.

HB3967- 28 -LRB102 14276 SPS 19628 b
1 Section 5-55. Energy Community Development Program.
2 (a) The purpose of the Energy Community Development
3Program is to proactively assist Clean Energy Empowerment Zone
4communities in their search for economic opportunities leading
5up to and after the closure of a fossil fuel power plant,
6nuclear power plant, or coal mine.
7 (b) The Director of Commerce and Economic Opportunity
8shall, subject to appropriation, administer the Energy
9Community Development Program. In administering the Energy
10Community Development Program, the Department shall:
11 (1) assist local governments in Clean Energy
12 Empowerment Zones in finding private and public sector
13 partners to invest in regional development;
14 (2) assist units of local government in finding and
15 negotiating terms with businesses willing to relocate or
16 open new enterprises in regions impacted;
17 (3) provide coordination services to connect
18 organizations or persons seeking to use tax credits
19 created under Act with units of local government;
20 (4) conduct outreach and educational events for
21 private sector organizations for the purpose of attracting
22 investment in Clean Energy Empowerment Zones; and
23 (5) gather and incorporate public comment and feedback
24 so that local knowledge, priorities, and strengths help
25 shape and guide private and public development.

HB3967- 29 -LRB102 14276 SPS 19628 b
1 (c) In administering the Energy Community Development
2Program, the Department shall develop and implement the
3Program with the following goals:
4 (1) to increase private sector development in Clean
5 Energy Empowerment Zones;
6 (2) to replace and improve employment opportunities in
7 Clean Energy Empowerment Zones for community members;
8 (3) to provide resources for Clean Energy Empowerment
9 Zone communities across the State, and avoid geographic
10 preferences in the allocation of resources; and
11 (4) to create a healthful environment for community
12 members in Clean Energy Empowerment Zones.
13 Section 5-60. Displaced Energy Workers Bill of Rights.
14 (a) The Department of Commerce and Economic Opportunity
15shall implement the Displaced Energy Workers Bill of Rights
16and shall be responsible for the implementation of the
17Displaced Energy Workers Bill of Rights programs and rights
18created under this Section. The Department shall provide the
19following benefits to displaced energy workers listed in
20paragraphs (1) through (4) of this subsection:
21 (1) Advance notice of power plant or coal mine
22 closure.
23 (A) The Department of Commerce and Economic
24 Opportunity shall notify all energy workers of the
25 upcoming closure of any qualifying facility at least 2

HB3967- 30 -LRB102 14276 SPS 19628 b
1 years in advance of the scheduled closing date.
2 (B) In providing the advance notice described in
3 this paragraph (1), the Department shall take
4 reasonable steps to ensure that all displaced energy
5 workers are educated on the various programs available
6 through the Department to assist with the energy
7 transition.
8 (2) Employment assistance and career services. The
9 Department shall provide displaced energy workers with
10 assistance in finding new sources of employment through
11 the Energy Workforce Development Program established in
12 this Act.
13 (3) Full-tuition scholarship for Illinois institutions
14 and trade schools.
15 (A) The Department shall provide any displaced
16 energy worker with a full-tuition scholarship to any
17 of the following programs: (i) public universities in
18 this State; (ii) trade schools in this State; (iii)
19 community college programs in this State; or (iv)
20 union training programs in this State. The Department
21 may set cost caps on the maximum amount of tuition that
22 may be funded.
23 (B) The Department shall provide information and
24 consultation to displaced energy workers on the
25 various educational opportunities available through
26 this Program, and advise workers on which

HB3967- 31 -LRB102 14276 SPS 19628 b
1 opportunities meet their needs and preferences.
2 (C) Displaced energy workers who are eligible for
3 scholarships created under this Section by the date of
4 their enrollment shall be considered eligible for
5 scholarship funding for up to 4 years or until
6 completion of their degree or certification, whichever
7 is the shorter duration.
8 (4) Financial Planning Services. Displaced energy
9 workers shall be entitled to services as described in the
10 energy worker Programs in this subsection, including
11 financial planning services.
12 (b) The owners of power plants with a nameplate capacity
13of greater than 300 megawatts and the owners of coal mines
14located in Illinois shall be required to comply with the
15requirements set out in this subsection (b). The owners shall
16be required to take the following actions:
17 (1) provide employment information for energy workers;
18 prior to the closure of an electric generating unit or
19 mine, the owners of the power plant or mine shall provide
20 energy workers information on whether there are employment
21 opportunities provided by their employer;
22 (2) provide extended health insurance for displaced
23 energy workers who are former employees of the power plant
24 owner that (A) costs no more than the average monthly
25 premium paid by the worker over the last 12 months and (B)
26 offers the same level of benefits, including, but not

HB3967- 32 -LRB102 14276 SPS 19628 b
1 limited to, coverage, in-network providers, deductibles,
2 and copayments covered during the previous 12 months;
3 companies that sell energy into auctions managed by the
4 Illinois Power Agency shall be required to offer 2 years
5 of health insurance following closure of an electric
6 generating unit to employees who are not employed in new
7 positions that offer health insurance upon: (i) plant
8 closure; or (ii) employment termination; the Department
9 may require funding for health insurance to be provided in
10 advance of employment termination; and
11 (3) maintain responsible retirement account
12 portfolios; employees of qualifying facilities shall have
13 their retirement funds backed by financial tools that are
14 not economically dependent upon the success of their
15 employer's business.
16 Section 5-65. Consideration of energy worker employment.
17 (a) All State departments and agencies shall conduct a
18review of the Department of Commerce and Economic
19Opportunity's registry of energy workers to determine whether
20any qualified candidates are displaced energy workers before
21making a final hiring decision for a position in State
22employment.
23 (b) The Department of Commerce and Economic Opportunity
24shall inform all State agencies and departments of the
25obligations created by this Section and take steps to ensure

HB3967- 33 -LRB102 14276 SPS 19628 b
1compliance.
2 (c) Nothing in this Section shall be interpreted to
3indicate that the State is required to hire displaced energy
4workers for any position.
5 (d) No part of this Section shall be interpreted to be in
6conflict with federal or State civil rights or employment law.
7 Section 5-70. Energy Community Reinvestment Fund.
8 (a) The General Assembly hereby declares that management
9of several economic development programs requires a
10consolidated funding source to improve resource efficiency.
11The General Assembly specifically recognizes that properly
12serving communities and workers impacted by the energy
13transition requires that the Department of Commerce and
14Economic Opportunity have access to the resources required for
15the execution of the programs in this Act.
16 The intent of the General Assembly is that the Energy
17Community Reinvestment Fund is able to provide all funding for
18development programs created in this Act, and that no
19additional charge is borne by the taxpayers or ratepayers of
20Illinois absent a deficiency.
21 (b) The Energy Community Reinvestment Fund is created as a
22special fund in the State treasury to be used by the Department
23of Commerce and Economic Opportunity for purposes provided
24under this Section. The Fund shall be used to fund programs
25specified under subsection (c). The objective of the Fund is

HB3967- 34 -LRB102 14276 SPS 19628 b
1to bring economic development to communities in this State in
2a manner that equitably maximizes economic opportunity in all
3communities by increasing efficiency of resource allocation
4across the programs listed in subsection (c). The Department
5shall include a description of its proposed approach to the
6design, administration, implementation, and evaluation of the
7Fund, as part of the Energy Transition Workforce Plan
8described in this Act. Contracts that will be paid with moneys
9in the Fund shall be executed by the Department.
10 (c) The Department shall be responsible for the
11administration of the Fund and shall allocate funding on the
12basis of priorities established in this Section. Each year,
13the Department shall determine the available amount of
14resources in the Fund that can be allocated to the programs
15identified in this Section, and allocate the funding
16accordingly. The Department shall, to the extent practical,
17consider both the short-term and long-term costs of the
18programs and allocate, save, or invest funding so that the
19Department is able to cover both the short-term and long-term
20costs of these programs using projected revenue.
21 The available funding for each year shall be allocated
22from the Fund in the following order of priority:
23 (1) for costs related to the Energy Community
24 Development programs in this Act, up to $2,000,000
25 annually or 2% of the available funding, whichever is
26 less;

HB3967- 35 -LRB102 14276 SPS 19628 b
1 (2) for costs related to the Energy Workforce
2 Development programs and the Displaced Energy Workers Bill
3 of Rights in this Act, including all programs created by
4 the Energy Transition Workforce Commission, up to
5 $13,000,000 annually or 21% of the available funding,
6 whichever is less. If 21% of the available funding is more
7 than $13,000,000, the amount over $13,000,000 is allocated
8 to the items in (1) through (3) by their relative
9 percentages until those programs are fully funded;
10 (3) for costs, up to $100,000,000 annually, to support
11 units of local government in Clean Energy Empowerment
12 Zones, as described in Section 5-35;
13 (4) if the programs identified in paragraphs (1)
14 through (7) are fully funded and the Department reasonably
15 predicts they will be adequately funded in future years,
16 the Department shall transfer an amount equal to the
17 year's tax credits awarded through the programs of up to
18 $22,500,000 annually go the General Revenue Fund to offset
19 revenue reductions from tax credits provided under the
20 Clean Energy Empowerment Zone Tax Credit Act;
21 (5) to support the Low Income Home Energy Assistance
22 Program, up to $30,000,000 annually, to support additional
23 costs from the Percentage of Income Payment Program
24 expansion and energy assistance expansion;
25 (6) if the programs identified in paragraphs (1)
26 through (6) are fully funded and the Department reasonably

HB3967- 36 -LRB102 14276 SPS 19628 b
1 predicts they shall be adequately funded in future years,
2 the Department shall transfer all surplus to the General
3 Revenue Fund.
4 (d) No later than June 1, 2021, and by June 1 of each year
5thereafter, the Department shall submit a notification to the
6Illinois Environmental Protection Agency for the purpose of
7implementing the energy community reinvestment fee as
8described in Section 9.16 of the Environmental Protection Act.
9The notification shall include the revenue and spending
10requirements for the programs identified under the Energy
11Community Reinvestment Act for the upcoming fiscal year, as
12well as the projected spending for all program years through
13Fiscal Year 2036. The projected revenue and spending need
14identified for any program year shall be no less than
15$200,000,000 per year for the calendar years 2021 through 2025
16and $100,000,000 per year for all calendar years starting in
172026 that the Illinois electric sector generates greenhouse
18gas emissions.
19 (e) If there is a funding shortfall for items identified
20in paragraphs (1) through (4) of subsection (c), the
21Department shall submit a request for funds to applicable
22electric utilities for funds collected under subsection (k) of
23Section 1-75 of the Illinois Power Agency Act up to
24$25,000,000 per year to cover the shortfall. Upon notification
25by utilities that sufficient funds are available for use under
26the terms of paragraph (7) of subsection (k) of Section 1-75 of

HB3967- 37 -LRB102 14276 SPS 19628 b
1the Illinois Power Agency Act, the Department shall send an
2invoice to the applicable utilities for the amount requested.
3Upon receipt, the funds shall be deposited into the Energy
4Community Reinvestment Fund.
5 (f) The Department shall, on an ongoing basis, seek out
6and apply for funding from alternative sources to cover the
7costs of these programs. Alternative sources may include the
8federal government, other State programs, private foundations,
9donors, or other opportunities for funding. The Department
10shall, as described in subsection (c), use any additional
11funding obtained for these programs to reduce or eliminate any
12costs borne by taxpayers and ratepayers. Nothing in this
13subsection (f) shall be interpreted to reduce or remove the
14revenue requirements obtained by the Illinois Environmental
15Protection Agency as described in subsection (d).
16 (g) Notwithstanding any other law to the contrary, the
17Energy Community Reinvestment Fund is not subject to sweeps,
18administrative chargebacks, or any other fiscal or budgetary
19maneuver that would in any way transfer any amounts from the
20Energy Community Reinvestment Fund into any other fund of the
21State.
22 (h) The Department is granted all powers necessary for the
23implementation of this Section.
24 Section 5-75. Administrative review. All final
25administrative decisions, including, but not limited to,

HB3967- 38 -LRB102 14276 SPS 19628 b
1funding allocation and rules issued by the Department under
2this Act are subject to judicial review under the
3Administrative Review Law. No action may be commenced under
4this Section prior to 60 days after the complainant has given
5notice in writing of the action to the Department.
6
ARTICLE 10. Clean Energy Empowerment Zone Tax Credit Act
7 Section 10-1. Short title. This Article may be cited as
8the Clean Energy Empowerment Zone Tax Credit Act. References
9in this Article to "this Act" mean this Article.
10
Part 1.
11 Section 10-100. Definitions. As used in this Part 1:
12 "Applicant" means a person that is operating a business
13located within the State of Illinois and has applied for an
14income tax credit through a program under this Act.
15 "Basic wage" means compensation for employment that meets
16the prevailing wage standards as defined by the Department.
17 "Certificate" means the tax credit certificate issued by
18the Department under Section 10-125.
19 "Certificate of eligibility" means the certificate issued
20by the Department under Section 10-110.
21 "Credit" means the amount awarded by the Department to an
22applicant by issuance of a certificate under Section 10-125

HB3967- 39 -LRB102 14276 SPS 19628 b
1for each new full-time equivalent employee hired or job
2created.
3 "Department" means the Department of Commerce and Economic
4Opportunity.
5 "Director" means the Director of Commerce and Economic
6Opportunity.
7 "Former energy worker" means an individual who is
8employed, or was employed, at a fossil fuel power plant,
9nuclear power plant, or coal mine, and is listed in the
10registry of energy workers developed by the Department of
11Commerce and Economic Opportunity pursuant to Section 5-50 of
12the Energy Community Reinvestment Act.
13 "Full-time employee" means an individual who is employed
14at a prevailing wage for at least 35 hours each week, and
15provided standard worker benefits, or who renders any other
16standard of service generally accepted by industry custom or
17practice as full-time employment. An individual for whom a W-2
18is issued by a Professional Employer Organization is a
19full-time employee if he or she is employed in the service of
20the applicant for a basic wage for at least 35 hours each week
21or renders any other standard of service generally accepted by
22industry custom or practice as full-time employment. For the
23purposes of this Act, such an individual shall be considered a
24full-time employee of the applicant.
25 "Incentive period" means the period beginning on July 1
26and ending on June 30 of the following year. The first

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

HB3967- 41 -LRB102 14276 SPS 19628 b
1that is not complying with the requirements of this Act, the
2day following the last date upon which the taxpayer was in
3compliance with the requirements of this Act, as determined by
4the Director under Section 10-135.
5 "Professional Employer Organization" has the same meaning
6as ascribed to that term under Section 5-5 of the Economic
7Development for a Growing Economy Tax Credit Act.
8"Professional Employer Organization" does not include a day
9and temporary labor service agency regulated under the Day and
10Temporary Labor Services Act.
11 "Related member" means a person that, with respect to the
12applicant during any portion of the incentive period, is any
13one of the following:
14 (1) An individual, if the individual and the members
15 of the individual's family, as defined in Section 318 of
16 the Internal Revenue Code, own directly, indirectly,
17 beneficially, or constructively, in the aggregate, at
18 least 50% of the value of the outstanding profits,
19 capital, stock, or other ownership interest in the
20 applicant.
21 (2) A partnership, estate, or trust and any partner or
22 beneficiary, if the partnership, estate, or trust and its
23 partners or beneficiaries own directly, indirectly,
24 beneficially, or constructively, in the aggregate, at
25 least 50% of the profits, capital, stock, or other
26 ownership interest in the applicant.

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

HB3967- 43 -LRB102 14276 SPS 19628 b
1 such proportion is the greater;
2 (B) stock owned, directly or indirectly, by or for
3 an estate or trust shall be considered as owned by any
4 beneficiary who has an actuarial interest of 20% or
5 more in such stock, to the extent of such actuarial
6 interest. For purposes of this subparagraph, the
7 actuarial interest of each beneficiary shall be
8 determined by assuming the maximum exercise of
9 discretion by the fiduciary in favor of such
10 beneficiary and the maximum use of such stock to
11 satisfy his or her rights as a beneficiary; and
12 (C) stock owned, directly or indirectly, by or for
13 a corporation shall be considered as owned by any
14 person who owns 20% or more in value of its stock in
15 that proportion which the value of the stock which the
16 person so owns bears to the value of all the stock in
17 the corporation.
18 Section 10-105. Powers of the Department. The Department,
19in addition to those powers granted under the Civil
20Administrative Code of Illinois, is granted and shall have all
21the powers necessary or convenient to carry out and effectuate
22the purposes and provisions of this Act, including, but not
23limited to, power and authority to:
24 (1) Adopt rules deemed necessary and appropriate for
25 the administration of this Act; establish forms for

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

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

HB3967- 46 -LRB102 14276 SPS 19628 b
1 the terms and conditions of financial assistance or
2 participation required under this Act, including the power
3 to sell, dispose of, lease, or rent, upon terms and
4 conditions determined by the Director to be appropriate,
5 real or personal property that the Department may recover
6 as a result of these actions.
7 Section 10-110. Certificate of eligibility for tax credit.
8 (a) An applicant that has hired a former energy worker or a
9graduate or trainee from an equity-focused workforce training
10program designated by the Illinois Power Agency as a new
11employee during the incentive period may apply for a
12certificate of eligibility for the credit with respect to that
13position on or after the date of hire of the new employee. The
14date of hire shall be the first day on which the employee
15begins providing services for basic wage compensation.
16 (b) An applicant may apply for a certificate of
17eligibility for the credit for more than one new employee on or
18after the date of hire of each qualifying new employee.
19 (c) After receipt of an application under this Section,
20the Department shall issue a certificate of eligibility to the
21applicant that states the following:
22 (1) the date and time on which the application was
23 received by the Department and an identifying number
24 assigned to the applicant by the Department;
25 (2) the maximum amount of the credit the applicant

HB3967- 47 -LRB102 14276 SPS 19628 b
1 could potentially receive under this Act with respect to
2 the new employees listed on the application; and
3 (3) the maximum amount of the credit potentially
4 allowable on certificates of eligibility issued for
5 applications received prior to the application for which
6 the certificate of eligibility is issued.
7 Section 10-115. Tax credit.
8 (a) Subject to the conditions set forth in this Act, an
9applicant is entitled to a credit against payment of taxes
10withheld under Section 704A of the Illinois Income Tax Act:
11 (1) for former energy workers or graduates of Clean
12 Jobs Workforce programs hired as new employees who the
13 applicant hires and retains for a minimum of one year; and
14 (2) in the amount of:
15 (A) 20% of the salary paid to the new employee for
16 employees hired and retained for between the time of
17 hiring and one year;
18 (B) 15% of the salary paid to the new employee for
19 employees hired and retained between one year and 2
20 years; and
21 (C) 10% of the salary paid to the new employee for
22 employees hired and retained between 2 years and 3
23 years.
24 (b) The Department shall make credit awards under this Act
25to further job creation.

HB3967- 48 -LRB102 14276 SPS 19628 b
1 (c) The credit shall be claimed for the first calendar
2year ending on or after the date on which the certificate is
3issued by the Department.
4 (d) The net increase in full-time Illinois employees,
5measured on an annual full-time equivalent basis, shall be the
6total number of full-time Illinois employees of the applicant
7on the final day of the incentive period, minus the number of
8full-time Illinois employees employed by the employer on the
9first day of that same incentive period. For purposes of the
10calculation, an employer that begins doing business in this
11State during the incentive period, as determined by the
12Director, shall be treated as having zero Illinois employees
13on the first day of the incentive period.
14 (e) The net increase in the number of full-time Illinois
15employees of the applicant under subsection (d) must be
16sustained continuously for at least 12 months, starting with
17the date of hire of a new employee during the incentive period.
18Eligibility for the credit does not depend on the continuous
19employment of any particular individual. For purposes of this
20subsection (e), if a new employee ceases to be employed before
21the completion of the 12-month period for any reason, the net
22increase in the number of full-time Illinois employees shall
23be treated as continuous if a different new employee is hired
24as a replacement within a reasonable time for the same
25position. The new employees must be hired to fill positions
26that the applicant reasonably anticipates will be available

HB3967- 49 -LRB102 14276 SPS 19628 b
1for the new employee as a long-term position. For the purposes
2of this subsection (e), "long-term position" means a position
3that will be available for 3 years or longer.
4 (f) The Department shall adopt rules to enable an
5applicant for which a Professional Employer Organization has
6been contracted to issue W-2s and make payment of taxes
7withheld under Section 704A of the Illinois Income Tax Act for
8new employees to retain the benefit of tax credits to which the
9applicant is otherwise entitled under this Act.
10 Section 10-120. Maximum amount of credits allowed. The
11Department shall limit the monetary amount of credits awarded
12under this Act to no more than $18,000,000 annually during the
13incentive period. If applications for a greater amount are
14received, credits shall be allowed on a first-come,
15first-served basis, based on the date on which each properly
16completed application for a certificate of eligibility is
17received by the Department. If more than one certificate of
18eligibility is received on the same day, the credits shall be
19awarded based on the time of submission for that particular
20day.
21 Section 10-125. Application for award of tax credit; tax
22credit certificate.
23 (a) On or after the conclusion of the 12-month period, or
24other period, after a new employee has been hired, for the

HB3967- 50 -LRB102 14276 SPS 19628 b
1purposes of subsection (a) of Section 10-115, an applicant
2shall file with the Department an application for award of a
3credit. The application shall include the following:
4 (1) the names, Social Security numbers, job
5 descriptions, salary or wage rates, and dates of hire of
6 the new employees with respect to whom the credit is being
7 requested;
8 (2) a certification that each new employee listed has
9 been retained on the job for at least one year from the
10 date of hire;
11 (3) the number of new employees hired by the applicant
12 during the incentive period;
13 (4) the net increase in the number of full-time
14 Illinois employees of the applicant, including the new
15 employees listed in the request, between the beginning of
16 the incentive period and the dates on which the new
17 employees listed in the request were hired;
18 (5) an agreement that the Director is authorized to
19 verify with the appropriate State agencies the information
20 contained in the request before issuing a certificate to
21 the applicant; and
22 (6) any other information the Department determines to
23 be appropriate.
24 (b) Although an application may be filed at any time after
25the conclusion of the 12-month period after a new employee was
26hired, an application filed more than 90 days after the

HB3967- 51 -LRB102 14276 SPS 19628 b
1earliest date on which it could have been filed shall not be
2awarded any credit if, prior to the date it is filed, the
3Department has received applications under this Section for
4credits totaling more than $20,000,000.
5 (c) The Department shall issue a certificate to each
6applicant awarded a credit under this Act. The certificate
7shall include the following:
8 (1) the name and taxpayer identification number of the
9 applicant;
10 (2) the date on which the certificate is issued;
11 (3) the credit amount that will be allowed; and
12 (4) any other information the Department determines to
13 be appropriate.
14 Section 10-130. Submission of tax credit certificate to
15the Department of Revenue. An applicant claiming a credit
16under this Act shall submit to the Department of Revenue a copy
17of each certificate issued under Section 10-125 with the first
18tax return for which the credit shown on the certificate is
19claimed. Failure to submit a copy of the certificate with the
20applicant's tax return shall not invalidate a claim for a
21credit.
22 Section 10-135. Administrative review.
23 (a) If the Director determines that an applicant who has
24received a credit under this Act is not complying with the

HB3967- 52 -LRB102 14276 SPS 19628 b
1requirements of this Act, the Director shall provide notice to
2the applicant of the alleged noncompliance, and allow the
3taxpayer a hearing under the provisions of the Illinois
4Administrative Procedure Act. If, after the notice and
5hearing, the Director determines that noncompliance exists,
6the Director shall issue to the Department of Revenue notice
7to that effect, and state the date of noncompliance.
8 (b) All final administrative decisions, including, but not
9limited to, funding allocation and rules issued by the
10Department under this Act are subject to judicial review under
11the Administrative Review Law. No action may be commenced
12under this Section prior to 60 days after the complainant has
13given notice in writing of the action to the Department.
14 Section 10-140. Rules. The Department may adopt rules
15necessary to implement this Part 1. The rules may provide for
16recipients of credits under this Part 1 to be charged fees to
17cover administrative costs of the tax credit program.
18
Part 2.
19 Section 10-200. Definitions. As used in this Part 2:
20 "Agreement" means the agreement between a taxpayer and the
21Department entered into for a tax credit awarded under Section
2210-210.
23 "Applicant" means a taxpayer operating a renewable energy

HB3967- 53 -LRB102 14276 SPS 19628 b
1enterprise, as determined under the Energy Community
2Reinvestment Act, located within or that the renewable energy
3enterprise plans to locate within a Clean Energy Empowerment
4Zone. "Applicant" does not include a taxpayer who closes or
5substantially reduces an operation at one location in this
6State and relocates substantially the same operation to a
7location in a Clean Energy Empowerment Zone. A taxpayer is not
8prohibited from expanding its operations at a location in a
9Clean Energy Empowerment Zone, provided that existing
10operations of a similar nature located within the State are
11not closed or substantially reduced. A taxpayer is also not
12prohibited from moving operations from one location in this
13State to a Clean Energy Empowerment Zone for the purpose of
14expanding the operation provided that the Department
15determines that expansion cannot reasonably be accommodated
16within the municipality in which the business is located, or
17in the case of a business located in an incorporated area of
18the county, within the county in which the business is
19located, after conferring with the chief elected official of
20the municipality or county and taking into consideration any
21evidence offered by the municipality or county regarding the
22ability to accommodate expansion within the municipality or
23county.
24 "Board" means the Clean Energy Empowerment Zone Board
25created under Section 5-20 of the Illinois Energy Community
26Reinvestment Act.

HB3967- 54 -LRB102 14276 SPS 19628 b
1 "Credit" means the amount agreed to between the Department
2and the Applicant under this Act, but not to exceed the lesser
3of: (1) the sum of (i) 50% of the incremental income tax
4attributable to new employees at the applicant's project and
5(ii) 10% of the training costs of new employees; or (2) 100% of
6the incremental income tax attributable to new employees at
7the applicant's project. If the project is located in an
8underserved area, then the amount of the credit may not exceed
9the lesser of: (1) the sum of (i) 75% of the incremental income
10tax attributable to new employees at the applicant's project
11and (ii) 10% of the training costs of new employees; or (2)
12100% of the incremental income tax attributable to new
13employees at the applicant's project. If an applicant agrees
14to hire the required number of new employees, then the maximum
15amount of the credit for that applicant may be increased by an
16amount not to exceed 25% of the incremental income tax
17attributable to retained employees at the applicant's project;
18provided that, in order to receive the increase for retained
19employees, the applicant must provide the additional evidence
20required under paragraph (3) of subsection (c) of Section
2110-215.
22 "Department" means the Department of Commerce and Economic
23Opportunity.
24 "Director" means the Director of Commerce and Economic
25Opportunity.
26 "Full-time employee" means an individual who is employed

HB3967- 55 -LRB102 14276 SPS 19628 b
1for consideration for at least 35 hours each week or who
2renders any other standard of service generally accepted by
3industry custom or practice as full-time employment. An
4individual for whom a W-2 is issued by a Professional Employer
5Organization is a full-time employee if employed in the
6service of the applicant for consideration for at least 35
7hours each week or who renders any other standard of service
8generally accepted by industry custom or practice as full-time
9employment to the applicant.
10 "Incremental income tax" means the total amount withheld
11during the taxable year from the compensation of new employees
12and, if applicable, retained employees under Article 7 of the
13Illinois Income Tax Act arising from employment at a project
14that is the subject of an agreement.
15 "New employee" means a full-time employee first employed
16by a taxpayer in the project that is the subject of an
17agreement and who is hired after the taxpayer enters into the
18agreement.
19 "New employee" does not include:
20 (1) an employee of the taxpayer who performs a job
21 that was previously performed by another employee, if that
22 job existed for at least 6 months before hiring the
23 employee;
24 (2) an employee of the taxpayer who was previously
25 employed in Illinois by a related member of the taxpayer
26 and whose employment was shifted to the taxpayer after the

HB3967- 56 -LRB102 14276 SPS 19628 b
1 taxpayer entered into the agreement; or
2 (3) a child, grandchild, parent, or spouse, other than
3 a spouse who is legally separated from the individual, of
4 any individual who has a direct or an indirect ownership
5 interest of at least 5% in the profits, capital, or value
6 of the taxpayer.
7 Notwithstanding any other provisions of this Section, an
8employee may be considered a new employee under the agreement
9if the employee performs a job that was previously performed
10by an employee who was: (i) treated under the agreement as a
11new employee; and (ii) promoted by the taxpayer to another
12job.
13 Notwithstanding any other provisions of this Section, the
14Department may award a credit to an applicant with respect to
15an employee hired prior to the date of the agreement if: (i)
16the applicant is in receipt of a letter from the Department
17stating an intent to enter into a credit agreement; (ii) the
18letter described in item (i) of this paragraph is issued by the
19Department not later than 15 days after the effective date of
20this Act; and (iii) the employee was hired after the date the
21letter described in item (i) of this paragraph was issued.
22 "Pass-through entity" means an entity that is exempt from
23the tax under subsection (b) or (c) of Section 205 of the
24Illinois Income Tax Act.
25 "Related member" means a person that, with respect to the
26taxpayer during any portion of the taxable year, is any one of

HB3967- 57 -LRB102 14276 SPS 19628 b
1the following:
2 (1) An individual stockholder, if the stockholder and
3 the members of the stockholder's family, as defined in
4 Section 318 of the Internal Revenue Code, own directly,
5 indirectly, beneficially, or constructively, in the
6 aggregate, at least 50% of the value of the taxpayer's
7 outstanding stock.
8 (2) A partnership, estate, or trust and any partner or
9 beneficiary, if the partnership, estate, or trust, and its
10 partners or beneficiaries own directly, indirectly,
11 beneficially, or constructively, in the aggregate, at
12 least 50% of the profits, capital, stock, or value of the
13 taxpayer.
14 (3) A corporation, and any party related to the
15 corporation in a manner that would require an attribution
16 of stock from the corporation to the party or from the
17 party to the corporation under the attribution rules of
18 Section 318 of the Internal Revenue Code, if the taxpayer
19 owns directly, indirectly, beneficially, or constructively
20 at least 50% of the value of the corporation's outstanding
21 stock.
22 (4) A corporation and any party related to that
23 corporation in a manner that would require an attribution
24 of stock from the corporation to the party or from the
25 party to the corporation under the attribution rules of
26 Section 318 of the Internal Revenue Code, if the

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

HB3967- 59 -LRB102 14276 SPS 19628 b
1 person who owns 20% or more in value of its stock in
2 that proportion which the value of the stock which the
3 person so owns bears to the value of all the stock in
4 the corporation.
5 "Renewable energy" means solar energy, wind energy, water
6energy, geothermal energy, bioenergy, or hydrogen fuel and
7cells.
8 "Renewable energy production facility" means a facility
9owned by a company that is engaged in and used such a facility
10for the production of solar energy, wind energy, water energy,
11geothermal energy, bioenergy, or hydrogen fuel and cells.
12 "Taxpayer" means an individual, corporation, partnership,
13or other entity that has any Illinois income tax liability.
14 "Underserved area" means a geographic area that meets one
15or more of the following conditions:
16 (1) the area has a poverty rate of at least 20%
17 according to the latest federal decennial census;
18 (2) 75% or more of the children in the area
19 participate in the federal free lunch program according to
20 reported statistics from the State Board of Education;
21 (3) at least 20% of the households in the area receive
22 assistance under the Supplemental Nutrition Assistance
23 Program; or
24 (4) the area has an average unemployment rate, as
25 determined by the Department of Employment Security, that
26 is more than 120% of the national unemployment average, as

HB3967- 60 -LRB102 14276 SPS 19628 b
1 determined by the United States Department of Labor, for a
2 period of at least 2 consecutive calendar years preceding
3 the date of the application.
4 Section 10-205. Powers of the Department. The Department,
5in addition to those powers granted under the Civil
6Administrative Code of Illinois and Part 1 of this Act, is
7granted and has all the powers necessary or convenient to
8carry out and effectuate the purposes and provisions of this
9Act, including, but not limited to, power and authority to:
10 (a) Adopt rules deemed necessary and appropriate for the
11administration of programs; establish forms for applications,
12notifications, contracts, or any other agreements; and accept
13applications at any time during the year.
14 (b) Provide and assist taxpayers pursuant to the
15provisions of this Act, and cooperate with taxpayers that are
16parties to agreements to promote, foster, and support economic
17development, capital investment, and job creation or retention
18within the Clean Energy Empowerment Zone.
19 (c) Enter into agreements and memoranda of understanding
20for participation of and engage in cooperation with agencies
21of the federal government, units of local government,
22universities, research foundations or institutions, regional
23economic development corporations, or other organizations for
24the purposes of this Act.
25 (d) Gather information and conduct inquiries, in the

HB3967- 61 -LRB102 14276 SPS 19628 b
1manner and by the methods as it deems desirable, including,
2without limitation, gathering information with respect to
3applicants for the purpose of making any designations or
4certifications necessary or desirable or to gather information
5to assist the Board with any recommendation or guidance in the
6furtherance of the purposes of this Act.
7 (e) Establish, negotiate and effectuate any term,
8agreement or other document with any person, necessary or
9appropriate to accomplish the purposes of this Act, and
10consent, subject to the provisions of any agreement with
11another party, to the modification or restructuring of any
12agreement to which the Department is a party.
13 (f) Fix, determine, charge, and collect any premiums,
14fees, charges, costs, and expenses from applicants, including,
15without limitation, any application fees, commitment fees,
16program fees, financing charges, or publication fees as deemed
17appropriate to pay expenses necessary or incident to the
18administration, staffing, or operation in connection with the
19Department's or Board's activities under this Act, or for
20preparation, implementation, and enforcement of the terms of
21the agreement, or for consultation, advisory and legal fees,
22and other costs. All fees and expenses incident thereto shall
23be the responsibility of the applicant.
24 (g) Provide for sufficient personnel to permit
25administration, staffing, operation, and related support
26required to adequately discharge its duties and

HB3967- 62 -LRB102 14276 SPS 19628 b
1responsibilities described in this Act from funds made
2available through charges to applicants or from funds as may
3be appropriated by the General Assembly for the administration
4of this Act.
5 (h) Require applicants, upon written request, to issue any
6necessary authorization to the appropriate federal, State, or
7local authority for the release of information concerning a
8project being considered under the provisions of this Act,
9with the information requested to include, but not be limited
10to, financial reports, returns, or records relating to the
11taxpayer or its project.
12 (i) Require that a taxpayer shall at all times keep proper
13books of record and account in accordance with generally
14accepted accounting principles consistently applied, with the
15books, records, or papers related to the agreement in the
16custody or control of the taxpayer open for reasonable
17Department inspection and audits, and including, without
18limitation, the making of copies of the books, records, or
19papers, and the inspection or appraisal of any of the taxpayer
20or project assets.
21 (j) Take whatever actions are necessary or appropriate to
22protect the State's interest in the event of bankruptcy,
23default, foreclosure, or noncompliance with the terms and
24conditions of financial assistance or participation required
25under this Act, including the power to sell, dispose, lease,
26or rent, upon terms and conditions determined by the Director

HB3967- 63 -LRB102 14276 SPS 19628 b
1to be appropriate, real or personal property that the
2Department may receive as a result of these actions.
3 Section 10-210. Tax credit awards.
4 (a) Subject to the conditions set forth in this Act, a
5taxpayer is entitled to a credit against or, as described in
6subsection (g), a payment toward taxes imposed pursuant to
7subsections (a) and (b) of Section 201 of the Illinois Income
8Tax Act that may be imposed on the taxpayer for a taxable year
9beginning on or after January 1, 2019, if the taxpayer is
10awarded a credit by the Department under this Act for that
11taxable year.
12 (b) The Department shall make credit awards under this Act
13to foster job creation and the development of renewable energy
14in Clean Energy Empowerment Zones.
15 (c) A person that proposes a project to create new jobs and
16to invest in the development of a renewable energy production
17facility in a Clean Energy Empowerment Zone must enter into an
18agreement with the Department for the credit under this Act.
19 (d) The credit shall be claimed for the taxable years
20specified in the agreement.
21 (e) The credit shall not exceed the incremental income tax
22attributable to the project that is the subject of the
23agreement.
24 (f) Nothing herein shall prohibit a tax credit award to an
25applicant that uses a Professional Employer Organization if

HB3967- 64 -LRB102 14276 SPS 19628 b
1all other award criteria are satisfied.
2 (g) A pass-through entity that has been awarded a credit
3under this Act, its shareholders, or its partners may treat
4some or all of the credit awarded under this Act as a tax
5payment for purposes of the Illinois Income Tax Act. In no
6event shall the amount of the award credited under this Act
7exceed the Illinois income tax liability of the pass-through
8entity or its shareholders or partners for the taxable year.
9 For the purposes of this subsection (g), "tax payment"
10means a payment as described in Article 6 or Article 8 of the
11Illinois Income Tax Act or a composite payment made by a
12pass-through entity on behalf of any of its shareholders or
13partners to satisfy such shareholders' or partners' taxes
14imposed pursuant to subsections (a) and (b) of Section 201 of
15the Illinois Income Tax Act.
16 Section 10-215. Application for a project to create and
17retain new jobs and to develop renewable energy.
18 (a) Any renewable energy enterprise proposing a project to
19build a renewable energy production facility located or
20planned to be located in a Clean Energy Empowerment Zone may
21request consideration for designation of its project, by
22formal written letter of request or by formal application to
23the Department, in which the applicant states its intent to
24make at least a specified level of investment and intends to
25hire or retain a specified number of full-time employees at a

HB3967- 65 -LRB102 14276 SPS 19628 b
1designated location in Illinois. As circumstances require, the
2Department may require a formal application from an applicant
3and a formal letter of request for assistance.
4 (b) In order to qualify for credits under this Act, an
5applicant's project must:
6 (1) be for the purpose of producing renewable energy;
7 (2) if the applicant has more than 100 employees,
8 involve an investment of at least $2,500,000 in capital
9 improvements to be placed in service within a Clean Energy
10 Empowerment Zone as a direct result of the project. If the
11 applicant has 100 or fewer employees, then there is no
12 capital investment requirement; and
13 (3) if the applicant has more than 100 employees,
14 employ a number of new employees in the Clean Energy
15 Empowerment Zone equal to the lesser of (A) 10% of the
16 number of full-time employees employed by the applicant
17 world-wide on the date the application is filed with the
18 Department; or (B) 50 new employees. If the applicant has
19 100 or fewer employees, employ a number of new employees
20 in the State equal to the lesser of (A) 5% of the number of
21 full-time employees employed by the applicant world-wide
22 on the date the application is filed with the Department
23 or (B) 50 New Employees.
24 (c) After receipt of an application, the Department shall
25review the application, make inquiries, and conduct studies in
26the manner and by the methods as it deems desirable, and

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

HB3967- 67 -LRB102 14276 SPS 19628 b
1 (6) The credit is not prohibited by Section 10-225.
2 (d) After approval by the Board, the Department may enter
3into an agreement with the applicant.
4 Section 10-220. Relocation of jobs to Clean Energy
5Empowerment Zone. A taxpayer is not entitled to claim the
6credit provided by this Act with respect to any jobs that the
7taxpayer relocates from one site in Illinois to another site
8in a Clean Energy Empowerment Zone. A taxpayer with respect to
9a qualifying project certified under the Corporate
10Headquarters Relocation Act, however, is not subject to the
11requirements of this Section, but is nevertheless considered
12an applicant for purposes of this Act. Moreover, any full-time
13employee of an eligible renewable energy enterprise relocated
14to a Clean Energy Empowerment Zone in connection with that
15qualifying project is deemed to be a new employee for purposes
16of this Act. Determinations under this Section shall be made
17by the Department.
18 Section 10-225. Determination of the amount of credit. In
19determining the amount of credit that should be awarded, the
20Board shall provide guidance on, and the Department shall take
21into consideration, all of the following factors:
22 (1) the number and location of jobs created and
23 retained in relation to the economy of the Clean Energy
24 Empowerment Zone where the projected investment is to

HB3967- 68 -LRB102 14276 SPS 19628 b
1 occur;
2 (2) the potential impact on the economy of the Clean
3 Energy Empowerment Zone;
4 (3) the advancement of renewable energy in the Clean
5 Energy Empowerment Zone;
6 (4) the incremental payroll attributable to the
7 project;
8 (5) the capital investment attributable to the
9 project;
10 (6) the amount of the average wage and benefits paid
11 by the applicant in relation to the wage and benefits of
12 the Clean Energy Empowerment Zone;
13 (7) the costs to Illinois and the affected political
14 subdivisions with respect to the project; and
15 (8) the financial assistance that is otherwise
16 provided by Illinois and the affected political
17 subdivisions.
18 Section 10-230. Amount and duration of credit.
19 (a) The Department shall determine the amount and duration
20of the credit awarded under this Act. The duration of the
21credit may not exceed 10 taxable years. The credit may be
22stated as a percentage of the incremental income tax
23attributable to the applicant's project and may include a
24fixed dollar limitation. An agreement for the credit must be
25finalized and signed by all parties while the area in which the

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1project is located is designated a Clean Energy Empowerment
2Zone. The credit may last longer than the applicable Clean
3Energy Empowerment Zone designation. Agreements entered into
4prior to the de-designation of a Clean Energy Empowerment Zone
5shall be honored for the length of the agreement.
6 (b) Notwithstanding subsection (a), and except as the
7credit may be applied in a carryover year as otherwise
8provided in this subsection (b), the credit may be applied
9against the State income tax liability in more than 10 taxable
10years, but not in more than 15 taxable years for an eligible
11green energy enterprise that: (i) qualifies under this Act and
12the Corporate Headquarters Relocation Act and has in fact
13undertaken a qualifying project within the time frame
14specified by the Department of Commerce and Economic
15Opportunity under that Act; and (ii) applies against its State
16income tax liability, during the entire 15-year period, no
17more than 60% of the maximum credit per year that would
18otherwise be available under this Act.
19 Any credit that is unused in the year the credit is
20computed may be carried forward and applied to the tax
21liability of the 5 taxable years following the excess credit
22year. The credit shall be applied to the earliest year for
23which there is a tax liability. If there are credits from more
24than one tax year that are available to offset a liability, the
25earlier credit shall be applied first.

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1 Section 10-235. Contents of agreements with applicants.
2The Department shall enter into an agreement with an applicant
3that is awarded a credit under this Act.
4 Section 10-240. Certificate of verification; submission to
5the Department of Revenue. A taxpayer claiming a credit under
6this Act shall submit to the Department of Revenue a copy of
7the Director's certificate of verification under this Act for
8the taxable year. Failure to submit a copy of the certificate
9with the taxpayer's tax return shall not invalidate a claim
10for a credit.
11 Section 10-245. Supplier diversity. Each taxpayer claiming
12a credit under this Act shall, no later than April 15 of each
13taxable year for which the taxpayer claims a credit under this
14Act, submit to the Department of Commerce and Economic
15Opportunity an annual report containing the information
16described in subsections (b), (c), (d), and (e) of Section
175-117 of the Public Utilities Act. Those reports shall be
18submitted in the form and manner required by the Department of
19Commerce and Economic Opportunity.
20 Section 10-250. Pass-through entity. The shareholders or
21partners of a taxpayer that is a pass-through entity shall be
22entitled to the credit allowed under the agreement. The credit
23is in addition to any credit to which a shareholder or partner

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1is otherwise entitled under a separate agreement under this
2Act. A pass-through entity and a shareholder or partner of the
3pass-through entity may not claim more than one credit under
4the same agreement.
5 Section 10-255. Rules. The Department may adopt rules
6necessary to implement this Part 2. The rules may provide for
7recipients of credits under this Part 2 to be charged fees to
8cover administrative costs of the tax credit program. Fees
9collected shall be deposited into the Energy Community
10Reinvestment Fund.
11 Section 10-260. Program terms and conditions.
12 (a) Any documentary materials or data made available or
13received by any member of a board or any agent or employee of
14the Department shall be deemed confidential and shall not be
15deemed public records to the extent that the materials or data
16consists of trade secrets, commercial or financial information
17regarding the operation of the business conducted by the
18applicant for or recipient of any tax credit under this Act, or
19any information regarding the competitive position of a
20business in a particular field of endeavor.
21 (b) Nothing in this Act shall be construed as creating any
22rights in any applicant to enter into an agreement or in any
23person to challenge the terms of any agreement.

HB3967- 72 -LRB102 14276 SPS 19628 b
1
ARTICLE 15. Coal Severance Fee Act
2 Section 15-1. Short title. This Article may be cited as
3the Coal Severance Fee Act. References in this Article to
4"this Act" mean this Article.
5 Section 15-5. Coal severance fee.
6 (a) Definitions. As used in this Act:
7 "Department" means the Department of Revenue.
8 "Person" means any natural individual, firm, partnership,
9association, joint stock company, joint adventure, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian, or other representative appointed
12by order of any court.
13 (b) Tax imposed.
14 (1) On and after June 1, 2021, there is hereby imposed
15 a tax upon any person engaged in the business of severing
16 or preparing coal for sale, profit, or commercial use, if
17 the coal is severed from a mine located in this State. The
18 rate of the tax imposed under this Section is 6% of the
19 gross value of the severed coal.
20 (2) The liability for the tax accrues at the time the
21 coal is severed.
22 (c) Payment and collection of tax.
23 (1) The tax imposed under this Act shall be due and
24 payable on or before the 20th day of the month following

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1 the month in which the coal is severed.
2 (2) The State shall have a lien on all coal severed in
3 this State on or after June 1, 2021 to secure the payment
4 of the tax.
5 (d) Registration. A person who is subject to the tax
6imposed under this Act shall register with the Department.
7Application for a certificate of registration shall be made to
8the Department upon forms furnished by the Department and
9shall contain any reasonable information the Department may
10require. Upon receipt of the application for a certificate of
11registration in proper form, the Department shall issue to the
12applicant a certificate of registration.
13 (e) Inspection of records by Department, subpoena power,
14contempt. For the purpose of computing the amount of the tax
15due under this Section, the Department has the following
16powers:
17 (1) to require any person who is subject to this tax to
18 furnish any additional information deemed to be necessary
19 for the computation of the tax;
20 (2) to examine books, records, and files of such
21 person; and
22 (3) to issue subpoenas and examine witnesses under
23 oath. If any witness fails or refuses to appear at the
24 request of the Director, or if any witness refuses access
25 to books, records, or files, the circuit court of the
26 proper county, or the judge thereof, on application of the

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1 Department, shall compel obedience by proceedings for
2 contempt, as in the case of disobedience of the
3 requirements of a subpoena issued from that court or a
4 refusal to testify therein.
5 (f) Returns. Each taxpayer shall make a return to the
6Department showing the following:
7 (1) the name of the taxpayer;
8 (2) the address of the taxpayer's principal place of
9 business;
10 (3) the quantity of coal severed or prepared during
11 the month for which the return is filed;
12 (4) the gross value of the severed coal;
13 (5) the amount of tax due;
14 (6) the signature of the taxpayer; and
15 (7) any other reasonable information as the Department
16 may require.
17 (g) The return shall be filed on or before the 20th day of
18the month after the month during which the coal is severed. The
19Department may require any additional report or information it
20deems necessary for the proper administration of this Act.
21 (h) Returns due under this Section shall be filed
22electronically in the manner prescribed by the Department.
23Taxpayers shall make all payments of the tax to the Department
24under this Act by electronic funds transfer unless, as
25provided by rule, the Department grants an exception upon
26petition of a taxpayer. Returns must be accompanied by

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1appropriate computer generated magnetic media supporting
2schedule data in the format required by the Department,
3unless, as provided by rule, the Department grants an
4exception upon petition of a taxpayer.
5 (i) Incorporation by reference. All of the provisions of
6Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 13 6a, 6b,
76c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
8Occupation Tax Act which are not inconsistent with this Act,
9and all provisions of the Uniform Penalty and Interest Act
10shall apply, as far as practicable, to the subject matter of
11this Act to the same extent as if such provisions were included
12herein.
13 (j) Rulemaking. The Department is hereby authorized to
14adopt rules as may be necessary to administer and enforce the
15provisions of this Act.
16 (k) Distribution of proceeds. All moneys received by the
17Department under this Act shall be paid into the Energy
18Community Reinvestment Fund.
19
Article 90. Amendatory Provisions
20 Section 90-5. The Illinois Administrative Procedure Act is
21amended by adding Section 45.8 as follows:
22 (5 ILCS 100/45.8 new)
23 Sec. 45.8. Emergency rulemaking; Energy Community

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1Reinvestment Act. To provide for the expeditious and timely
2implementation of the Energy Community Reinvestment Act,
3emergency rules may be adopted in accordance with Section 5-45
4by the Department of Commerce and Economic Opportunity to
5implement Section 5-15 of the Energy Community Reinvestment
6Act with respect to applications for designation as Clean
7Energy Empowerment Zones. The adoption of emergency rules
8authorized by Section 5-45 and this Section is deemed to be
9necessary for the public interest, safety, and welfare.
10 Section 90-10. The State Finance Act is amended by adding
11Section 5.935 as follows:
12 (30 ILCS 105/5.935 new)
13 Sec. 5.935. The Energy Community Reinvestment Fund.
14 Section 90-15. The Illinois Income Tax Act is amended by
15changing Section 201 as follows:
16 (35 ILCS 5/201)
17 (Text of Section without the changes made by P.A. 101-8,
18which did not take effect (see Section 99 of P.A. 101-8))
19 Sec. 201. Tax imposed.
20 (a) In general. A tax measured by net income is hereby
21imposed on every individual, corporation, trust and estate for
22each taxable year ending after July 31, 1969 on the privilege

HB3967- 77 -LRB102 14276 SPS 19628 b
1of earning or receiving income in or as a resident of this
2State. Such tax shall be in addition to all other occupation or
3privilege taxes imposed by this State or by any municipal
4corporation or political subdivision thereof.
5 (b) Rates. The tax imposed by subsection (a) of this
6Section shall be determined as follows, except as adjusted by
7subsection (d-1):
8 (1) In the case of an individual, trust or estate, for
9 taxable years ending prior to July 1, 1989, an amount
10 equal to 2 1/2% of the taxpayer's net income for the
11 taxable year.
12 (2) In the case of an individual, trust or estate, for
13 taxable years beginning prior to July 1, 1989 and ending
14 after June 30, 1989, an amount equal to the sum of (i) 2
15 1/2% of the taxpayer's net income for the period prior to
16 July 1, 1989, as calculated under Section 202.3, and (ii)
17 3% of the taxpayer's net income for the period after June
18 30, 1989, as calculated under Section 202.3.
19 (3) In the case of an individual, trust or estate, for
20 taxable years beginning after June 30, 1989, and ending
21 prior to January 1, 2011, an amount equal to 3% of the
22 taxpayer's net income for the taxable year.
23 (4) In the case of an individual, trust, or estate,
24 for taxable years beginning prior to January 1, 2011, and
25 ending after December 31, 2010, an amount equal to the sum
26 of (i) 3% of the taxpayer's net income for the period prior

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1 to January 1, 2011, as calculated under Section 202.5, and
2 (ii) 5% of the taxpayer's net income for the period after
3 December 31, 2010, as calculated under Section 202.5.
4 (5) In the case of an individual, trust, or estate,
5 for taxable years beginning on or after January 1, 2011,
6 and ending prior to January 1, 2015, an amount equal to 5%
7 of the taxpayer's net income for the taxable year.
8 (5.1) In the case of an individual, trust, or estate,
9 for taxable years beginning prior to January 1, 2015, and
10 ending after December 31, 2014, an amount equal to the sum
11 of (i) 5% of the taxpayer's net income for the period prior
12 to January 1, 2015, as calculated under Section 202.5, and
13 (ii) 3.75% of the taxpayer's net income for the period
14 after December 31, 2014, as calculated under Section
15 202.5.
16 (5.2) In the case of an individual, trust, or estate,
17 for taxable years beginning on or after January 1, 2015,
18 and ending prior to July 1, 2017, an amount equal to 3.75%
19 of the taxpayer's net income for the taxable year.
20 (5.3) In the case of an individual, trust, or estate,
21 for taxable years beginning prior to July 1, 2017, and
22 ending after June 30, 2017, an amount equal to the sum of
23 (i) 3.75% of the taxpayer's net income for the period
24 prior to July 1, 2017, as calculated under Section 202.5,
25 and (ii) 4.95% of the taxpayer's net income for the period
26 after June 30, 2017, as calculated under Section 202.5.

HB3967- 79 -LRB102 14276 SPS 19628 b
1 (5.4) In the case of an individual, trust, or estate,
2 for taxable years beginning on or after July 1, 2017, an
3 amount equal to 4.95% of the taxpayer's net income for the
4 taxable year.
5 (6) In the case of a corporation, for taxable years
6 ending prior to July 1, 1989, an amount equal to 4% of the
7 taxpayer's net income for the taxable year.
8 (7) In the case of a corporation, for taxable years
9 beginning prior to July 1, 1989 and ending after June 30,
10 1989, an amount equal to the sum of (i) 4% of the
11 taxpayer's net income for the period prior to July 1,
12 1989, as calculated under Section 202.3, and (ii) 4.8% of
13 the taxpayer's net income for the period after June 30,
14 1989, as calculated under Section 202.3.
15 (8) In the case of a corporation, for taxable years
16 beginning after June 30, 1989, and ending prior to January
17 1, 2011, an amount equal to 4.8% of the taxpayer's net
18 income for the taxable year.
19 (9) In the case of a corporation, for taxable years
20 beginning prior to January 1, 2011, and ending after
21 December 31, 2010, an amount equal to the sum of (i) 4.8%
22 of the taxpayer's net income for the period prior to
23 January 1, 2011, as calculated under Section 202.5, and
24 (ii) 7% of the taxpayer's net income for the period after
25 December 31, 2010, as calculated under Section 202.5.
26 (10) In the case of a corporation, for taxable years

HB3967- 80 -LRB102 14276 SPS 19628 b
1 beginning on or after January 1, 2011, and ending prior to
2 January 1, 2015, an amount equal to 7% of the taxpayer's
3 net income for the taxable year.
4 (11) In the case of a corporation, for taxable years
5 beginning prior to January 1, 2015, and ending after
6 December 31, 2014, an amount equal to the sum of (i) 7% of
7 the taxpayer's net income for the period prior to January
8 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
9 of the taxpayer's net income for the period after December
10 31, 2014, as calculated under Section 202.5.
11 (12) In the case of a corporation, for taxable years
12 beginning on or after January 1, 2015, and ending prior to
13 July 1, 2017, an amount equal to 5.25% of the taxpayer's
14 net income for the taxable year.
15 (13) In the case of a corporation, for taxable years
16 beginning prior to July 1, 2017, and ending after June 30,
17 2017, an amount equal to the sum of (i) 5.25% of the
18 taxpayer's net income for the period prior to July 1,
19 2017, as calculated under Section 202.5, and (ii) 7% of
20 the taxpayer's net income for the period after June 30,
21 2017, as calculated under Section 202.5.
22 (14) In the case of a corporation, for taxable years
23 beginning on or after July 1, 2017, an amount equal to 7%
24 of the taxpayer's net income for the taxable year.
25 The rates under this subsection (b) are subject to the
26provisions of Section 201.5.

HB3967- 81 -LRB102 14276 SPS 19628 b
1 (b-5) Surcharge; sale or exchange of assets, properties,
2and intangibles of organization gaming licensees. For each of
3taxable years 2019 through 2027, a surcharge is imposed on all
4taxpayers on income arising from the sale or exchange of
5capital assets, depreciable business property, real property
6used in the trade or business, and Section 197 intangibles (i)
7of an organization licensee under the Illinois Horse Racing
8Act of 1975 and (ii) of an organization gaming licensee under
9the Illinois Gambling Act. The amount of the surcharge is
10equal to the amount of federal income tax liability for the
11taxable year attributable to those sales and exchanges. The
12surcharge imposed shall not apply if:
13 (1) the organization gaming license, organization
14 license, or racetrack property is transferred as a result
15 of any of the following:
16 (A) bankruptcy, a receivership, or a debt
17 adjustment initiated by or against the initial
18 licensee or the substantial owners of the initial
19 licensee;
20 (B) cancellation, revocation, or termination of
21 any such license by the Illinois Gaming Board or the
22 Illinois Racing Board;
23 (C) a determination by the Illinois Gaming Board
24 that transfer of the license is in the best interests
25 of Illinois gaming;
26 (D) the death of an owner of the equity interest in

HB3967- 82 -LRB102 14276 SPS 19628 b
1 a licensee;
2 (E) the acquisition of a controlling interest in
3 the stock or substantially all of the assets of a
4 publicly traded company;
5 (F) a transfer by a parent company to a wholly
6 owned subsidiary; or
7 (G) the transfer or sale to or by one person to
8 another person where both persons were initial owners
9 of the license when the license was issued; or
10 (2) the controlling interest in the organization
11 gaming license, organization license, or racetrack
12 property is transferred in a transaction to lineal
13 descendants in which no gain or loss is recognized or as a
14 result of a transaction in accordance with Section 351 of
15 the Internal Revenue Code in which no gain or loss is
16 recognized; or
17 (3) live horse racing was not conducted in 2010 at a
18 racetrack located within 3 miles of the Mississippi River
19 under a license issued pursuant to the Illinois Horse
20 Racing Act of 1975.
21 The transfer of an organization gaming license,
22organization license, or racetrack property by a person other
23than the initial licensee to receive the organization gaming
24license is not subject to a surcharge. The Department shall
25adopt rules necessary to implement and administer this
26subsection.

HB3967- 83 -LRB102 14276 SPS 19628 b
1 (c) Personal Property Tax Replacement Income Tax.
2Beginning on July 1, 1979 and thereafter, in addition to such
3income tax, there is also hereby imposed the Personal Property
4Tax Replacement Income Tax measured by net income on every
5corporation (including Subchapter S corporations), partnership
6and trust, for each taxable year ending after June 30, 1979.
7Such taxes are imposed on the privilege of earning or
8receiving income in or as a resident of this State. The
9Personal Property Tax Replacement Income Tax shall be in
10addition to the income tax imposed by subsections (a) and (b)
11of this Section and in addition to all other occupation or
12privilege taxes imposed by this State or by any municipal
13corporation or political subdivision thereof.
14 (d) Additional Personal Property Tax Replacement Income
15Tax Rates. The personal property tax replacement income tax
16imposed by this subsection and subsection (c) of this Section
17in the case of a corporation, other than a Subchapter S
18corporation and except as adjusted by subsection (d-1), shall
19be an additional amount equal to 2.85% of such taxpayer's net
20income for the taxable year, except that beginning on January
211, 1981, and thereafter, the rate of 2.85% specified in this
22subsection shall be reduced to 2.5%, and in the case of a
23partnership, trust or a Subchapter S corporation shall be an
24additional amount equal to 1.5% of such taxpayer's net income
25for the taxable year.
26 (d-1) Rate reduction for certain foreign insurers. In the

HB3967- 84 -LRB102 14276 SPS 19628 b
1case of a foreign insurer, as defined by Section 35A-5 of the
2Illinois Insurance Code, whose state or country of domicile
3imposes on insurers domiciled in Illinois a retaliatory tax
4(excluding any insurer whose premiums from reinsurance assumed
5are 50% or more of its total insurance premiums as determined
6under paragraph (2) of subsection (b) of Section 304, except
7that for purposes of this determination premiums from
8reinsurance do not include premiums from inter-affiliate
9reinsurance arrangements), beginning with taxable years ending
10on or after December 31, 1999, the sum of the rates of tax
11imposed by subsections (b) and (d) shall be reduced (but not
12increased) to the rate at which the total amount of tax imposed
13under this Act, net of all credits allowed under this Act,
14shall equal (i) the total amount of tax that would be imposed
15on the foreign insurer's net income allocable to Illinois for
16the taxable year by such foreign insurer's state or country of
17domicile if that net income were subject to all income taxes
18and taxes measured by net income imposed by such foreign
19insurer's state or country of domicile, net of all credits
20allowed or (ii) a rate of zero if no such tax is imposed on
21such income by the foreign insurer's state of domicile. For
22the purposes of this subsection (d-1), an inter-affiliate
23includes a mutual insurer under common management.
24 (1) For the purposes of subsection (d-1), in no event
25 shall the sum of the rates of tax imposed by subsections
26 (b) and (d) be reduced below the rate at which the sum of:

HB3967- 85 -LRB102 14276 SPS 19628 b
1 (A) the total amount of tax imposed on such
2 foreign insurer under this Act for a taxable year, net
3 of all credits allowed under this Act, plus
4 (B) the privilege tax imposed by Section 409 of
5 the Illinois Insurance Code, the fire insurance
6 company tax imposed by Section 12 of the Fire
7 Investigation Act, and the fire department taxes
8 imposed under Section 11-10-1 of the Illinois
9 Municipal Code,
10 equals 1.25% for taxable years ending prior to December
11 31, 2003, or 1.75% for taxable years ending on or after
12 December 31, 2003, of the net taxable premiums written for
13 the taxable year, as described by subsection (1) of
14 Section 409 of the Illinois Insurance Code. This paragraph
15 will in no event increase the rates imposed under
16 subsections (b) and (d).
17 (2) Any reduction in the rates of tax imposed by this
18 subsection shall be applied first against the rates
19 imposed by subsection (b) and only after the tax imposed
20 by subsection (a) net of all credits allowed under this
21 Section other than the credit allowed under subsection (i)
22 has been reduced to zero, against the rates imposed by
23 subsection (d).
24 This subsection (d-1) is exempt from the provisions of
25Section 250.
26 (e) Investment credit. A taxpayer shall be allowed a

HB3967- 86 -LRB102 14276 SPS 19628 b
1credit against the Personal Property Tax Replacement Income
2Tax for investment in qualified property.
3 (1) A taxpayer shall be allowed a credit equal to .5%
4 of the basis of qualified property placed in service
5 during the taxable year, provided such property is placed
6 in service on or after July 1, 1984. There shall be allowed
7 an additional credit equal to .5% of the basis of
8 qualified property placed in service during the taxable
9 year, provided such property is placed in service on or
10 after July 1, 1986, and the taxpayer's base employment
11 within Illinois has increased by 1% or more over the
12 preceding year as determined by the taxpayer's employment
13 records filed with the Illinois Department of Employment
14 Security. Taxpayers who are new to Illinois shall be
15 deemed to have met the 1% growth in base employment for the
16 first year in which they file employment records with the
17 Illinois Department of Employment Security. The provisions
18 added to this Section by Public Act 85-1200 (and restored
19 by Public Act 87-895) shall be construed as declaratory of
20 existing law and not as a new enactment. If, in any year,
21 the increase in base employment within Illinois over the
22 preceding year is less than 1%, the additional credit
23 shall be limited to that percentage times a fraction, the
24 numerator of which is .5% and the denominator of which is
25 1%, but shall not exceed .5%. The investment credit shall
26 not be allowed to the extent that it would reduce a

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

HB3967- 88 -LRB102 14276 SPS 19628 b
1 for that year, whether it exceeds the original liability
2 or the liability as later amended, such excess may be
3 carried forward and applied to the tax liability of the 5
4 taxable years following the excess credit years. The
5 credit shall be applied to the earliest year for which
6 there is a liability. If there is credit from more than one
7 tax year that is available to offset a liability, earlier
8 credit shall be applied first.
9 (2) The term "qualified property" means property
10 which:
11 (A) is tangible, whether new or used, including
12 buildings and structural components of buildings and
13 signs that are real property, but not including land
14 or improvements to real property that are not a
15 structural component of a building such as
16 landscaping, sewer lines, local access roads, fencing,
17 parking lots, and other appurtenances;
18 (B) is depreciable pursuant to Section 167 of the
19 Internal Revenue Code, except that "3-year property"
20 as defined in Section 168(c)(2)(A) of that Code is not
21 eligible for the credit provided by this subsection
22 (e);
23 (C) is acquired by purchase as defined in Section
24 179(d) of the Internal Revenue Code;
25 (D) is used in Illinois by a taxpayer who is
26 primarily engaged in manufacturing, or in mining coal

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

HB3967- 90 -LRB102 14276 SPS 19628 b
1 distribution of electricity.
2 (4) The basis of qualified property shall be the basis
3 used to compute the depreciation deduction for federal
4 income tax purposes.
5 (5) If the basis of the property for federal income
6 tax depreciation purposes is increased after it has been
7 placed in service in Illinois by the taxpayer, the amount
8 of such increase shall be deemed property placed in
9 service on the date of such increase in basis.
10 (6) The term "placed in service" shall have the same
11 meaning as under Section 46 of the Internal Revenue Code.
12 (7) If during any taxable year, any property ceases to
13 be qualified property in the hands of the taxpayer within
14 48 months after being placed in service, or the situs of
15 any qualified property is moved outside Illinois within 48
16 months after being placed in service, the Personal
17 Property Tax Replacement Income Tax for such taxable year
18 shall be increased. Such increase shall be determined by
19 (i) recomputing the investment credit which would have
20 been allowed for the year in which credit for such
21 property was originally allowed by eliminating such
22 property from such computation and, (ii) subtracting such
23 recomputed credit from the amount of credit previously
24 allowed. For the purposes of this paragraph (7), a
25 reduction of the basis of qualified property resulting
26 from a redetermination of the purchase price shall be

HB3967- 91 -LRB102 14276 SPS 19628 b
1 deemed a disposition of qualified property to the extent
2 of such reduction.
3 (8) Unless the investment credit is extended by law,
4 the basis of qualified property shall not include costs
5 incurred after December 31, 2018, except for costs
6 incurred pursuant to a binding contract entered into on or
7 before December 31, 2018.
8 (9) Each taxable year ending before December 31, 2000,
9 a partnership may elect to pass through to its partners
10 the credits to which the partnership is entitled under
11 this subsection (e) for the taxable year. A partner may
12 use the credit allocated to him or her under this
13 paragraph only against the tax imposed in subsections (c)
14 and (d) of this Section. If the partnership makes that
15 election, those credits shall be allocated among the
16 partners in the partnership in accordance with the rules
17 set forth in Section 704(b) of the Internal Revenue Code,
18 and the rules promulgated under that Section, and the
19 allocated amount of the credits shall be allowed to the
20 partners for that taxable year. The partnership shall make
21 this election on its Personal Property Tax Replacement
22 Income Tax return for that taxable year. The election to
23 pass through the credits shall be irrevocable.
24 For taxable years ending on or after December 31,
25 2000, a partner that qualifies its partnership for a
26 subtraction under subparagraph (I) of paragraph (2) of

HB3967- 92 -LRB102 14276 SPS 19628 b
1 subsection (d) of Section 203 or a shareholder that
2 qualifies a Subchapter S corporation for a subtraction
3 under subparagraph (S) of paragraph (2) of subsection (b)
4 of Section 203 shall be allowed a credit under this
5 subsection (e) equal to its share of the credit earned
6 under this subsection (e) during the taxable year by the
7 partnership or Subchapter S corporation, determined in
8 accordance with the determination of income and
9 distributive share of income under Sections 702 and 704
10 and Subchapter S of the Internal Revenue Code. This
11 paragraph is exempt from the provisions of Section 250.
12 (f) Investment credit; Enterprise Zone; River Edge
13Redevelopment Zone.
14 (1) A taxpayer shall be allowed a credit against the
15 tax imposed by subsections (a) and (b) of this Section for
16 investment in qualified property which is placed in
17 service in an Enterprise Zone created pursuant to the
18 Illinois Enterprise Zone Act or, for property placed in
19 service on or after July 1, 2006, a River Edge
20 Redevelopment Zone established pursuant to the River Edge
21 Redevelopment Zone Act. For partners, shareholders of
22 Subchapter S corporations, and owners of limited liability
23 companies, if the liability company is treated as a
24 partnership for purposes of federal and State income
25 taxation, there shall be allowed a credit under this
26 subsection (f) to be determined in accordance with the

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

HB3967- 94 -LRB102 14276 SPS 19628 b
1 as defined in Section 168(c)(2)(A) of that Code is not
2 eligible for the credit provided by this subsection
3 (f);
4 (C) is acquired by purchase as defined in Section
5 179(d) of the Internal Revenue Code;
6 (D) is used in the Enterprise Zone or River Edge
7 Redevelopment Zone by the taxpayer; and
8 (E) has not been previously used in Illinois in
9 such a manner and by such a person as would qualify for
10 the credit provided by this subsection (f) or
11 subsection (e).
12 (3) The basis of qualified property shall be the basis
13 used to compute the depreciation deduction for federal
14 income tax purposes.
15 (4) If the basis of the property for federal income
16 tax depreciation purposes is increased after it has been
17 placed in service in the Enterprise Zone or River Edge
18 Redevelopment Zone by the taxpayer, the amount of such
19 increase shall be deemed property placed in service on the
20 date of such increase in basis.
21 (5) The term "placed in service" shall have the same
22 meaning as under Section 46 of the Internal Revenue Code.
23 (6) If during any taxable year, any property ceases to
24 be qualified property in the hands of the taxpayer within
25 48 months after being placed in service, or the situs of
26 any qualified property is moved outside the Enterprise

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

HB3967- 96 -LRB102 14276 SPS 19628 b
1 Employment Security. If, in any year, the increase in base
2 employment within Illinois over the preceding year is less
3 than 1%, the additional credit shall be limited to that
4 percentage times a fraction, the numerator of which is
5 0.5% and the denominator of which is 1%, but shall not
6 exceed 0.5%.
7 (8) For taxable years beginning on or after January 1,
8 2021, there shall be allowed an Enterprise Zone
9 construction jobs credit against the taxes imposed under
10 subsections (a) and (b) of this Section as provided in
11 Section 13 of the Illinois Enterprise Zone Act.
12 The credit or credits may not reduce the taxpayer's
13 liability to less than zero. If the amount of the credit or
14 credits exceeds the taxpayer's liability, the excess may
15 be carried forward and applied against the taxpayer's
16 liability in succeeding calendar years in the same manner
17 provided under paragraph (4) of Section 211 of this Act.
18 The credit or credits shall be applied to the earliest
19 year for which there is a tax liability. If there are
20 credits from more than one taxable year that are available
21 to offset a liability, the earlier credit shall be applied
22 first.
23 For partners, shareholders of Subchapter S
24 corporations, and owners of limited liability companies,
25 if the liability company is treated as a partnership for
26 the purposes of federal and State income taxation, there

HB3967- 97 -LRB102 14276 SPS 19628 b
1 shall be allowed a credit under this Section to be
2 determined in accordance with the determination of income
3 and distributive share of income under Sections 702 and
4 704 and Subchapter S of the Internal Revenue Code.
5 The total aggregate amount of credits awarded under
6 the Blue Collar Jobs Act (Article 20 of Public Act 101-9
7 this amendatory Act of the 101st General Assembly) shall
8 not exceed $20,000,000 in any State fiscal year.
9 This paragraph (8) is exempt from the provisions of
10 Section 250.
11 (g) (Blank).
12 (h) Investment credit; High Impact Business.
13 (1) Subject to subsections (b) and (b-5) of Section
14 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
15 be allowed a credit against the tax imposed by subsections
16 (a) and (b) of this Section for investment in qualified
17 property which is placed in service by a Department of
18 Commerce and Economic Opportunity designated High Impact
19 Business. The credit shall be .5% of the basis for such
20 property. The credit shall not be available (i) until the
21 minimum investments in qualified property set forth in
22 subdivision (a)(3)(A) of Section 5.5 of the Illinois
23 Enterprise Zone Act have been satisfied or (ii) until the
24 time authorized in subsection (b-5) of the Illinois
25 Enterprise Zone Act for entities designated as High Impact
26 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and

HB3967- 98 -LRB102 14276 SPS 19628 b
1 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
2 Act, and shall not be allowed to the extent that it would
3 reduce a taxpayer's liability for the tax imposed by
4 subsections (a) and (b) of this Section to below zero. The
5 credit applicable to such investments shall be taken in
6 the taxable year in which such investments have been
7 completed. The credit for additional investments beyond
8 the minimum investment by a designated high impact
9 business authorized under subdivision (a)(3)(A) of Section
10 5.5 of the Illinois Enterprise Zone Act shall be available
11 only in the taxable year in which the property is placed in
12 service and shall not be allowed to the extent that it
13 would reduce a taxpayer's liability for the tax imposed by
14 subsections (a) and (b) of this Section to below zero. For
15 tax years ending on or after December 31, 1987, the credit
16 shall be allowed for the tax year in which the property is
17 placed in service, or, if the amount of the credit exceeds
18 the tax liability for that year, whether it exceeds the
19 original liability or the liability as later amended, such
20 excess may be carried forward and applied to the tax
21 liability of the 5 taxable years following the excess
22 credit year. The credit shall be applied to the earliest
23 year for which there is a liability. If there is credit
24 from more than one tax year that is available to offset a
25 liability, the credit accruing first in time shall be
26 applied first.

HB3967- 99 -LRB102 14276 SPS 19628 b
1 Changes made in this subdivision (h)(1) by Public Act
2 88-670 restore changes made by Public Act 85-1182 and
3 reflect existing law.
4 (2) The term qualified property means property which:
5 (A) is tangible, whether new or used, including
6 buildings and structural components of buildings;
7 (B) is depreciable pursuant to Section 167 of the
8 Internal Revenue Code, except that "3-year property"
9 as defined in Section 168(c)(2)(A) of that Code is not
10 eligible for the credit provided by this subsection
11 (h);
12 (C) is acquired by purchase as defined in Section
13 179(d) of the Internal Revenue Code; and
14 (D) is not eligible for the Enterprise Zone
15 Investment Credit provided by subsection (f) of this
16 Section.
17 (3) The basis of qualified property shall be the basis
18 used to compute the depreciation deduction for federal
19 income tax purposes.
20 (4) If the basis of the property for federal income
21 tax depreciation purposes is increased after it has been
22 placed in service in a federally designated Foreign Trade
23 Zone or Sub-Zone located in Illinois by the taxpayer, the
24 amount of such increase shall be deemed property placed in
25 service on the date of such increase in basis.
26 (5) The term "placed in service" shall have the same

HB3967- 100 -LRB102 14276 SPS 19628 b
1 meaning as under Section 46 of the Internal Revenue Code.
2 (6) If during any taxable year ending on or before
3 December 31, 1996, any property ceases to be qualified
4 property in the hands of the taxpayer within 48 months
5 after being placed in service, or the situs of any
6 qualified property is moved outside Illinois within 48
7 months after being placed in service, the tax imposed
8 under subsections (a) and (b) of this Section for such
9 taxable year shall be increased. Such increase shall be
10 determined by (i) recomputing the investment credit which
11 would have been allowed for the year in which credit for
12 such property was originally allowed by eliminating such
13 property from such computation, and (ii) subtracting such
14 recomputed credit from the amount of credit previously
15 allowed. For the purposes of this paragraph (6), a
16 reduction of the basis of qualified property resulting
17 from a redetermination of the purchase price shall be
18 deemed a disposition of qualified property to the extent
19 of such reduction.
20 (7) Beginning with tax years ending after December 31,
21 1996, if a taxpayer qualifies for the credit under this
22 subsection (h) and thereby is granted a tax abatement and
23 the taxpayer relocates its entire facility in violation of
24 the explicit terms and length of the contract under
25 Section 18-183 of the Property Tax Code, the tax imposed
26 under subsections (a) and (b) of this Section shall be

HB3967- 101 -LRB102 14276 SPS 19628 b
1 increased for the taxable year in which the taxpayer
2 relocated its facility by an amount equal to the amount of
3 credit received by the taxpayer under this subsection (h).
4 (h-5) High Impact Business construction constructions jobs
5credit. For taxable years beginning on or after January 1,
62021, there shall also be allowed a High Impact Business
7construction jobs credit against the tax imposed under
8subsections (a) and (b) of this Section as provided in
9subsections (i) and (j) of Section 5.5 of the Illinois
10Enterprise Zone Act.
11 The credit or credits may not reduce the taxpayer's
12liability to less than zero. If the amount of the credit or
13credits exceeds the taxpayer's liability, the excess may be
14carried forward and applied against the taxpayer's liability
15in succeeding calendar years in the manner provided under
16paragraph (4) of Section 211 of this Act. The credit or credits
17shall be applied to the earliest year for which there is a tax
18liability. If there are credits from more than one taxable
19year that are available to offset a liability, the earlier
20credit shall be applied first.
21 For partners, shareholders of Subchapter S corporations,
22and owners of limited liability companies, if the liability
23company is treated as a partnership for the purposes of
24federal and State income taxation, there shall be allowed a
25credit under this Section to be determined in accordance with
26the determination of income and distributive share of income

HB3967- 102 -LRB102 14276 SPS 19628 b
1under Sections 702 and 704 and Subchapter S of the Internal
2Revenue Code.
3 The total aggregate amount of credits awarded under the
4Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
5amendatory Act of the 101st General Assembly) shall not exceed
6$20,000,000 in any State fiscal year.
7 This subsection (h-5) is exempt from the provisions of
8Section 250.
9 (i) Credit for Personal Property Tax Replacement Income
10Tax. For tax years ending prior to December 31, 2003, a credit
11shall be allowed against the tax imposed by subsections (a)
12and (b) of this Section for the tax imposed by subsections (c)
13and (d) of this Section. This credit shall be computed by
14multiplying the tax imposed by subsections (c) and (d) of this
15Section by a fraction, the numerator of which is base income
16allocable to Illinois and the denominator of which is Illinois
17base income, and further multiplying the product by the tax
18rate imposed by subsections (a) and (b) of this Section.
19 Any credit earned on or after December 31, 1986 under this
20subsection which is unused in the year the credit is computed
21because it exceeds the tax liability imposed by subsections
22(a) and (b) for that year (whether it exceeds the original
23liability or the liability as later amended) may be carried
24forward and applied to the tax liability imposed by
25subsections (a) and (b) of the 5 taxable years following the
26excess credit year, provided that no credit may be carried

HB3967- 103 -LRB102 14276 SPS 19628 b
1forward to any year ending on or after December 31, 2003. This
2credit shall be applied first to the earliest year for which
3there is a liability. If there is a credit under this
4subsection from more than one tax year that is available to
5offset a liability the earliest credit arising under this
6subsection shall be applied first.
7 If, during any taxable year ending on or after December
831, 1986, the tax imposed by subsections (c) and (d) of this
9Section for which a taxpayer has claimed a credit under this
10subsection (i) is reduced, the amount of credit for such tax
11shall also be reduced. Such reduction shall be determined by
12recomputing the credit to take into account the reduced tax
13imposed by subsections (c) and (d). If any portion of the
14reduced amount of credit has been carried to a different
15taxable year, an amended return shall be filed for such
16taxable year to reduce the amount of credit claimed.
17 (j) Training expense credit. Beginning with tax years
18ending on or after December 31, 1986 and prior to December 31,
192003, a taxpayer shall be allowed a credit against the tax
20imposed by subsections (a) and (b) under this Section for all
21amounts paid or accrued, on behalf of all persons employed by
22the taxpayer in Illinois or Illinois residents employed
23outside of Illinois by a taxpayer, for educational or
24vocational training in semi-technical or technical fields or
25semi-skilled or skilled fields, which were deducted from gross
26income in the computation of taxable income. The credit

HB3967- 104 -LRB102 14276 SPS 19628 b
1against the tax imposed by subsections (a) and (b) shall be
21.6% of such training expenses. For partners, shareholders of
3subchapter S corporations, and owners of limited liability
4companies, if the liability company is treated as a
5partnership for purposes of federal and State income taxation,
6there shall be allowed a credit under this subsection (j) to be
7determined in accordance with the determination of income and
8distributive share of income under Sections 702 and 704 and
9subchapter S of the Internal Revenue Code.
10 Any credit allowed under this subsection which is unused
11in the year the credit is earned may be carried forward to each
12of the 5 taxable years following the year for which the credit
13is first computed until it is used. This credit shall be
14applied first to the earliest year for which there is a
15liability. If there is a credit under this subsection from
16more than one tax year that is available to offset a liability,
17the earliest credit arising under this subsection shall be
18applied first. No carryforward credit may be claimed in any
19tax year ending on or after December 31, 2003.
20 (k) Research and development credit. For tax years ending
21after July 1, 1990 and prior to December 31, 2003, and
22beginning again for tax years ending on or after December 31,
232004, and ending prior to January 1, 2027, a taxpayer shall be
24allowed a credit against the tax imposed by subsections (a)
25and (b) of this Section for increasing research activities in
26this State. The credit allowed against the tax imposed by

HB3967- 105 -LRB102 14276 SPS 19628 b
1subsections (a) and (b) shall be equal to 6 1/2% of the
2qualifying expenditures for increasing research activities in
3this State. For partners, shareholders of subchapter S
4corporations, and owners of limited liability companies, if
5the liability company is treated as a partnership for purposes
6of federal and State income taxation, there shall be allowed a
7credit under this subsection to be determined in accordance
8with the determination of income and distributive share of
9income under Sections 702 and 704 and subchapter S of the
10Internal Revenue Code.
11 For purposes of this subsection, "qualifying expenditures"
12means the qualifying expenditures as defined for the federal
13credit for increasing research activities which would be
14allowable under Section 41 of the Internal Revenue Code and
15which are conducted in this State, "qualifying expenditures
16for increasing research activities in this State" means the
17excess of qualifying expenditures for the taxable year in
18which incurred over qualifying expenditures for the base
19period, "qualifying expenditures for the base period" means
20the average of the qualifying expenditures for each year in
21the base period, and "base period" means the 3 taxable years
22immediately preceding the taxable year for which the
23determination is being made.
24 Any credit in excess of the tax liability for the taxable
25year may be carried forward. A taxpayer may elect to have the
26unused credit shown on its final completed return carried over

HB3967- 106 -LRB102 14276 SPS 19628 b
1as a credit against the tax liability for the following 5
2taxable years or until it has been fully used, whichever
3occurs first; provided that no credit earned in a tax year
4ending prior to December 31, 2003 may be carried forward to any
5year ending on or after December 31, 2003.
6 If an unused credit is carried forward to a given year from
72 or more earlier years, that credit arising in the earliest
8year will be applied first against the tax liability for the
9given year. If a tax liability for the given year still
10remains, the credit from the next earliest year will then be
11applied, and so on, until all credits have been used or no tax
12liability for the given year remains. Any remaining unused
13credit or credits then will be carried forward to the next
14following year in which a tax liability is incurred, except
15that no credit can be carried forward to a year which is more
16than 5 years after the year in which the expense for which the
17credit is given was incurred.
18 No inference shall be drawn from Public Act 91-644 this
19amendatory Act of the 91st General Assembly in construing this
20Section for taxable years beginning before January 1, 1999.
21 It is the intent of the General Assembly that the research
22and development credit under this subsection (k) shall apply
23continuously for all tax years ending on or after December 31,
242004 and ending prior to January 1, 2027, including, but not
25limited to, the period beginning on January 1, 2016 and ending
26on July 6, 2017 (the effective date of Public Act 100-22) this

HB3967- 107 -LRB102 14276 SPS 19628 b
1amendatory Act of the 100th General Assembly. All actions
2taken in reliance on the continuation of the credit under this
3subsection (k) by any taxpayer are hereby validated.
4 (l) Environmental Remediation Tax Credit.
5 (i) For tax years ending after December 31, 1997 and
6 on or before December 31, 2001, a taxpayer shall be
7 allowed a credit against the tax imposed by subsections
8 (a) and (b) of this Section for certain amounts paid for
9 unreimbursed eligible remediation costs, as specified in
10 this subsection. For purposes of this Section,
11 "unreimbursed eligible remediation costs" means costs
12 approved by the Illinois Environmental Protection Agency
13 ("Agency") under Section 58.14 of the Environmental
14 Protection Act that were paid in performing environmental
15 remediation at a site for which a No Further Remediation
16 Letter was issued by the Agency and recorded under Section
17 58.10 of the Environmental Protection Act. The credit must
18 be claimed for the taxable year in which Agency approval
19 of the eligible remediation costs is granted. The credit
20 is not available to any taxpayer if the taxpayer or any
21 related party caused or contributed to, in any material
22 respect, a release of regulated substances on, in, or
23 under the site that was identified and addressed by the
24 remedial action pursuant to the Site Remediation Program
25 of the Environmental Protection Act. After the Pollution
26 Control Board rules are adopted pursuant to the Illinois

HB3967- 108 -LRB102 14276 SPS 19628 b
1 Administrative Procedure Act for the administration and
2 enforcement of Section 58.9 of the Environmental
3 Protection Act, determinations as to credit availability
4 for purposes of this Section shall be made consistent with
5 those rules. For purposes of this Section, "taxpayer"
6 includes a person whose tax attributes the taxpayer has
7 succeeded to under Section 381 of the Internal Revenue
8 Code and "related party" includes the persons disallowed a
9 deduction for losses by paragraphs (b), (c), and (f)(1) of
10 Section 267 of the Internal Revenue Code by virtue of
11 being a related taxpayer, as well as any of its partners.
12 The credit allowed against the tax imposed by subsections
13 (a) and (b) shall be equal to 25% of the unreimbursed
14 eligible remediation costs in excess of $100,000 per site,
15 except that the $100,000 threshold shall not apply to any
16 site contained in an enterprise zone as determined by the
17 Department of Commerce and Community Affairs (now
18 Department of Commerce and Economic Opportunity). The
19 total credit allowed shall not exceed $40,000 per year
20 with a maximum total of $150,000 per site. For partners
21 and shareholders of subchapter S corporations, there shall
22 be allowed a credit under this subsection to be determined
23 in accordance with the determination of income and
24 distributive share of income under Sections 702 and 704
25 and subchapter S of the Internal Revenue Code.
26 (ii) A credit allowed under this subsection that is

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

HB3967- 110 -LRB102 14276 SPS 19628 b
1 shall have the same meaning as under Section 58.2 of the
2 Environmental Protection Act.
3 (m) Education expense credit. Beginning with tax years
4ending after December 31, 1999, a taxpayer who is the
5custodian of one or more qualifying pupils shall be allowed a
6credit against the tax imposed by subsections (a) and (b) of
7this Section for qualified education expenses incurred on
8behalf of the qualifying pupils. The credit shall be equal to
925% of qualified education expenses, but in no event may the
10total credit under this subsection claimed by a family that is
11the custodian of qualifying pupils exceed (i) $500 for tax
12years ending prior to December 31, 2017, and (ii) $750 for tax
13years ending on or after December 31, 2017. In no event shall a
14credit under this subsection reduce the taxpayer's liability
15under this Act to less than zero. Notwithstanding any other
16provision of law, for taxable years beginning on or after
17January 1, 2017, no taxpayer may claim a credit under this
18subsection (m) if the taxpayer's adjusted gross income for the
19taxable year exceeds (i) $500,000, in the case of spouses
20filing a joint federal tax return or (ii) $250,000, in the case
21of all other taxpayers. This subsection is exempt from the
22provisions of Section 250 of this Act.
23 For purposes of this subsection:
24 "Qualifying pupils" means individuals who (i) are
25residents of the State of Illinois, (ii) are under the age of
2621 at the close of the school year for which a credit is

HB3967- 111 -LRB102 14276 SPS 19628 b
1sought, and (iii) during the school year for which a credit is
2sought were full-time pupils enrolled in a kindergarten
3through twelfth grade education program at any school, as
4defined in this subsection.
5 "Qualified education expense" means the amount incurred on
6behalf of a qualifying pupil in excess of $250 for tuition,
7book fees, and lab fees at the school in which the pupil is
8enrolled during the regular school year.
9 "School" means any public or nonpublic elementary or
10secondary school in Illinois that is in compliance with Title
11VI of the Civil Rights Act of 1964 and attendance at which
12satisfies the requirements of Section 26-1 of the School Code,
13except that nothing shall be construed to require a child to
14attend any particular public or nonpublic school to qualify
15for the credit under this Section.
16 "Custodian" means, with respect to qualifying pupils, an
17Illinois resident who is a parent, the parents, a legal
18guardian, or the legal guardians of the qualifying pupils.
19 (n) River Edge Redevelopment Zone site remediation tax
20credit.
21 (i) For tax years ending on or after December 31,
22 2006, a taxpayer shall be allowed a credit against the tax
23 imposed by subsections (a) and (b) of this Section for
24 certain amounts paid for unreimbursed eligible remediation
25 costs, as specified in this subsection. For purposes of
26 this Section, "unreimbursed eligible remediation costs"

HB3967- 112 -LRB102 14276 SPS 19628 b
1 means costs approved by the Illinois Environmental
2 Protection Agency ("Agency") under Section 58.14a of the
3 Environmental Protection Act that were paid in performing
4 environmental remediation at a site within a River Edge
5 Redevelopment Zone for which a No Further Remediation
6 Letter was issued by the Agency and recorded under Section
7 58.10 of the Environmental Protection Act. The credit must
8 be claimed for the taxable year in which Agency approval
9 of the eligible remediation costs is granted. The credit
10 is not available to any taxpayer if the taxpayer or any
11 related party caused or contributed to, in any material
12 respect, a release of regulated substances on, in, or
13 under the site that was identified and addressed by the
14 remedial action pursuant to the Site Remediation Program
15 of the Environmental Protection Act. Determinations as to
16 credit availability for purposes of this Section shall be
17 made consistent with rules adopted by the Pollution
18 Control Board pursuant to the Illinois Administrative
19 Procedure Act for the administration and enforcement of
20 Section 58.9 of the Environmental Protection Act. For
21 purposes of this Section, "taxpayer" includes a person
22 whose tax attributes the taxpayer has succeeded to under
23 Section 381 of the Internal Revenue Code and "related
24 party" includes the persons disallowed a deduction for
25 losses by paragraphs (b), (c), and (f)(1) of Section 267
26 of the Internal Revenue Code by virtue of being a related

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

HB3967- 114 -LRB102 14276 SPS 19628 b
1 (iii) For purposes of this Section, the term "site"
2 shall have the same meaning as under Section 58.2 of the
3 Environmental Protection Act.
4 (o) For each of taxable years during the Compassionate Use
5of Medical Cannabis Program, a surcharge is imposed on all
6taxpayers on income arising from the sale or exchange of
7capital assets, depreciable business property, real property
8used in the trade or business, and Section 197 intangibles of
9an organization registrant under the Compassionate Use of
10Medical Cannabis Program Act. The amount of the surcharge is
11equal to the amount of federal income tax liability for the
12taxable year attributable to those sales and exchanges. The
13surcharge imposed does not apply if:
14 (1) the medical cannabis cultivation center
15 registration, medical cannabis dispensary registration, or
16 the property of a registration is transferred as a result
17 of any of the following:
18 (A) bankruptcy, a receivership, or a debt
19 adjustment initiated by or against the initial
20 registration or the substantial owners of the initial
21 registration;
22 (B) cancellation, revocation, or termination of
23 any registration by the Illinois Department of Public
24 Health;
25 (C) a determination by the Illinois Department of
26 Public Health that transfer of the registration is in

HB3967- 115 -LRB102 14276 SPS 19628 b
1 the best interests of Illinois qualifying patients as
2 defined by the Compassionate Use of Medical Cannabis
3 Program Act;
4 (D) the death of an owner of the equity interest in
5 a registrant;
6 (E) the acquisition of a controlling interest in
7 the stock or substantially all of the assets of a
8 publicly traded company;
9 (F) a transfer by a parent company to a wholly
10 owned subsidiary; or
11 (G) the transfer or sale to or by one person to
12 another person where both persons were initial owners
13 of the registration when the registration was issued;
14 or
15 (2) the cannabis cultivation center registration,
16 medical cannabis dispensary registration, or the
17 controlling interest in a registrant's property is
18 transferred in a transaction to lineal descendants in
19 which no gain or loss is recognized or as a result of a
20 transaction in accordance with Section 351 of the Internal
21 Revenue Code in which no gain or loss is recognized.
22(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
23eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
24revised 11-18-20.)
25 (Text of Section with the changes made by P.A. 101-8,

HB3967- 116 -LRB102 14276 SPS 19628 b
1which did not take effect (see Section 99 of P.A. 101-8))
2 Sec. 201. Tax imposed.
3 (a) In general. A tax measured by net income is hereby
4imposed on every individual, corporation, trust and estate for
5each taxable year ending after July 31, 1969 on the privilege
6of earning or receiving income in or as a resident of this
7State. Such tax shall be in addition to all other occupation or
8privilege taxes imposed by this State or by any municipal
9corporation or political subdivision thereof.
10 (b) Rates. The tax imposed by subsection (a) of this
11Section shall be determined as follows, except as adjusted by
12subsection (d-1):
13 (1) In the case of an individual, trust or estate, for
14 taxable years ending prior to July 1, 1989, an amount
15 equal to 2 1/2% of the taxpayer's net income for the
16 taxable year.
17 (2) In the case of an individual, trust or estate, for
18 taxable years beginning prior to July 1, 1989 and ending
19 after June 30, 1989, an amount equal to the sum of (i) 2
20 1/2% of the taxpayer's net income for the period prior to
21 July 1, 1989, as calculated under Section 202.3, and (ii)
22 3% of the taxpayer's net income for the period after June
23 30, 1989, as calculated under Section 202.3.
24 (3) In the case of an individual, trust or estate, for
25 taxable years beginning after June 30, 1989, and ending
26 prior to January 1, 2011, an amount equal to 3% of the

HB3967- 117 -LRB102 14276 SPS 19628 b
1 taxpayer's net income for the taxable year.
2 (4) In the case of an individual, trust, or estate,
3 for taxable years beginning prior to January 1, 2011, and
4 ending after December 31, 2010, an amount equal to the sum
5 of (i) 3% of the taxpayer's net income for the period prior
6 to January 1, 2011, as calculated under Section 202.5, and
7 (ii) 5% of the taxpayer's net income for the period after
8 December 31, 2010, as calculated under Section 202.5.
9 (5) In the case of an individual, trust, or estate,
10 for taxable years beginning on or after January 1, 2011,
11 and ending prior to January 1, 2015, an amount equal to 5%
12 of the taxpayer's net income for the taxable year.
13 (5.1) In the case of an individual, trust, or estate,
14 for taxable years beginning prior to January 1, 2015, and
15 ending after December 31, 2014, an amount equal to the sum
16 of (i) 5% of the taxpayer's net income for the period prior
17 to January 1, 2015, as calculated under Section 202.5, and
18 (ii) 3.75% of the taxpayer's net income for the period
19 after December 31, 2014, as calculated under Section
20 202.5.
21 (5.2) In the case of an individual, trust, or estate,
22 for taxable years beginning on or after January 1, 2015,
23 and ending prior to July 1, 2017, an amount equal to 3.75%
24 of the taxpayer's net income for the taxable year.
25 (5.3) In the case of an individual, trust, or estate,
26 for taxable years beginning prior to July 1, 2017, and

HB3967- 118 -LRB102 14276 SPS 19628 b
1 ending after June 30, 2017, an amount equal to the sum of
2 (i) 3.75% of the taxpayer's net income for the period
3 prior to July 1, 2017, as calculated under Section 202.5,
4 and (ii) 4.95% of the taxpayer's net income for the period
5 after June 30, 2017, as calculated under Section 202.5.
6 (5.4) In the case of an individual, trust, or estate,
7 for taxable years beginning on or after July 1, 2017 and
8 beginning prior to January 1, 2021, an amount equal to
9 4.95% of the taxpayer's net income for the taxable year.
10 (5.5) In the case of an individual, trust, or estate,
11 for taxable years beginning on or after January 1, 2021,
12 an amount calculated under the rate structure set forth in
13 Section 201.1.
14 (6) In the case of a corporation, for taxable years
15 ending prior to July 1, 1989, an amount equal to 4% of the
16 taxpayer's net income for the taxable year.
17 (7) In the case of a corporation, for taxable years
18 beginning prior to July 1, 1989 and ending after June 30,
19 1989, an amount equal to the sum of (i) 4% of the
20 taxpayer's net income for the period prior to July 1,
21 1989, as calculated under Section 202.3, and (ii) 4.8% of
22 the taxpayer's net income for the period after June 30,
23 1989, as calculated under Section 202.3.
24 (8) In the case of a corporation, for taxable years
25 beginning after June 30, 1989, and ending prior to January
26 1, 2011, an amount equal to 4.8% of the taxpayer's net

HB3967- 119 -LRB102 14276 SPS 19628 b
1 income for the taxable year.
2 (9) In the case of a corporation, for taxable years
3 beginning prior to January 1, 2011, and ending after
4 December 31, 2010, an amount equal to the sum of (i) 4.8%
5 of the taxpayer's net income for the period prior to
6 January 1, 2011, as calculated under Section 202.5, and
7 (ii) 7% of the taxpayer's net income for the period after
8 December 31, 2010, as calculated under Section 202.5.
9 (10) In the case of a corporation, for taxable years
10 beginning on or after January 1, 2011, and ending prior to
11 January 1, 2015, an amount equal to 7% of the taxpayer's
12 net income for the taxable year.
13 (11) In the case of a corporation, for taxable years
14 beginning prior to January 1, 2015, and ending after
15 December 31, 2014, an amount equal to the sum of (i) 7% of
16 the taxpayer's net income for the period prior to January
17 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
18 of the taxpayer's net income for the period after December
19 31, 2014, as calculated under Section 202.5.
20 (12) In the case of a corporation, for taxable years
21 beginning on or after January 1, 2015, and ending prior to
22 July 1, 2017, an amount equal to 5.25% of the taxpayer's
23 net income for the taxable year.
24 (13) In the case of a corporation, for taxable years
25 beginning prior to July 1, 2017, and ending after June 30,
26 2017, an amount equal to the sum of (i) 5.25% of the

HB3967- 120 -LRB102 14276 SPS 19628 b
1 taxpayer's net income for the period prior to July 1,
2 2017, as calculated under Section 202.5, and (ii) 7% of
3 the taxpayer's net income for the period after June 30,
4 2017, as calculated under Section 202.5.
5 (14) In the case of a corporation, for taxable years
6 beginning on or after July 1, 2017 and beginning prior to
7 January 1, 2021, an amount equal to 7% of the taxpayer's
8 net income for the taxable year.
9 (15) In the case of a corporation, for taxable years
10 beginning on or after January 1, 2021, an amount equal to
11 7.99% of the taxpayer's net income for the taxable year.
12 The rates under this subsection (b) are subject to the
13provisions of Section 201.5.
14 (b-5) Surcharge; sale or exchange of assets, properties,
15and intangibles of organization gaming licensees. For each of
16taxable years 2019 through 2027, a surcharge is imposed on all
17taxpayers on income arising from the sale or exchange of
18capital assets, depreciable business property, real property
19used in the trade or business, and Section 197 intangibles (i)
20of an organization licensee under the Illinois Horse Racing
21Act of 1975 and (ii) of an organization gaming licensee under
22the Illinois Gambling Act. The amount of the surcharge is
23equal to the amount of federal income tax liability for the
24taxable year attributable to those sales and exchanges. The
25surcharge imposed shall not apply if:
26 (1) the organization gaming license, organization

HB3967- 121 -LRB102 14276 SPS 19628 b
1 license, or racetrack property is transferred as a result
2 of any of the following:
3 (A) bankruptcy, a receivership, or a debt
4 adjustment initiated by or against the initial
5 licensee or the substantial owners of the initial
6 licensee;
7 (B) cancellation, revocation, or termination of
8 any such license by the Illinois Gaming Board or the
9 Illinois Racing Board;
10 (C) a determination by the Illinois Gaming Board
11 that transfer of the license is in the best interests
12 of Illinois gaming;
13 (D) the death of an owner of the equity interest in
14 a licensee;
15 (E) the acquisition of a controlling interest in
16 the stock or substantially all of the assets of a
17 publicly traded company;
18 (F) a transfer by a parent company to a wholly
19 owned subsidiary; or
20 (G) the transfer or sale to or by one person to
21 another person where both persons were initial owners
22 of the license when the license was issued; or
23 (2) the controlling interest in the organization
24 gaming license, organization license, or racetrack
25 property is transferred in a transaction to lineal
26 descendants in which no gain or loss is recognized or as a

HB3967- 122 -LRB102 14276 SPS 19628 b
1 result of a transaction in accordance with Section 351 of
2 the Internal Revenue Code in which no gain or loss is
3 recognized; or
4 (3) live horse racing was not conducted in 2010 at a
5 racetrack located within 3 miles of the Mississippi River
6 under a license issued pursuant to the Illinois Horse
7 Racing Act of 1975.
8 The transfer of an organization gaming license,
9organization license, or racetrack property by a person other
10than the initial licensee to receive the organization gaming
11license is not subject to a surcharge. The Department shall
12adopt rules necessary to implement and administer this
13subsection.
14 (c) Personal Property Tax Replacement Income Tax.
15Beginning on July 1, 1979 and thereafter, in addition to such
16income tax, there is also hereby imposed the Personal Property
17Tax Replacement Income Tax measured by net income on every
18corporation (including Subchapter S corporations), partnership
19and trust, for each taxable year ending after June 30, 1979.
20Such taxes are imposed on the privilege of earning or
21receiving income in or as a resident of this State. The
22Personal Property Tax Replacement Income Tax shall be in
23addition to the income tax imposed by subsections (a) and (b)
24of this Section and in addition to all other occupation or
25privilege taxes imposed by this State or by any municipal
26corporation or political subdivision thereof.

HB3967- 123 -LRB102 14276 SPS 19628 b
1 (d) Additional Personal Property Tax Replacement Income
2Tax Rates. The personal property tax replacement income tax
3imposed by this subsection and subsection (c) of this Section
4in the case of a corporation, other than a Subchapter S
5corporation and except as adjusted by subsection (d-1), shall
6be an additional amount equal to 2.85% of such taxpayer's net
7income for the taxable year, except that beginning on January
81, 1981, and thereafter, the rate of 2.85% specified in this
9subsection shall be reduced to 2.5%, and in the case of a
10partnership, trust or a Subchapter S corporation shall be an
11additional amount equal to 1.5% of such taxpayer's net income
12for the taxable year.
13 (d-1) Rate reduction for certain foreign insurers. In the
14case of a foreign insurer, as defined by Section 35A-5 of the
15Illinois Insurance Code, whose state or country of domicile
16imposes on insurers domiciled in Illinois a retaliatory tax
17(excluding any insurer whose premiums from reinsurance assumed
18are 50% or more of its total insurance premiums as determined
19under paragraph (2) of subsection (b) of Section 304, except
20that for purposes of this determination premiums from
21reinsurance do not include premiums from inter-affiliate
22reinsurance arrangements), beginning with taxable years ending
23on or after December 31, 1999, the sum of the rates of tax
24imposed by subsections (b) and (d) shall be reduced (but not
25increased) to the rate at which the total amount of tax imposed
26under this Act, net of all credits allowed under this Act,

HB3967- 124 -LRB102 14276 SPS 19628 b
1shall equal (i) the total amount of tax that would be imposed
2on the foreign insurer's net income allocable to Illinois for
3the taxable year by such foreign insurer's state or country of
4domicile if that net income were subject to all income taxes
5and taxes measured by net income imposed by such foreign
6insurer's state or country of domicile, net of all credits
7allowed or (ii) a rate of zero if no such tax is imposed on
8such income by the foreign insurer's state of domicile. For
9the purposes of this subsection (d-1), an inter-affiliate
10includes a mutual insurer under common management.
11 (1) For the purposes of subsection (d-1), in no event
12 shall the sum of the rates of tax imposed by subsections
13 (b) and (d) be reduced below the rate at which the sum of:
14 (A) the total amount of tax imposed on such
15 foreign insurer under this Act for a taxable year, net
16 of all credits allowed under this Act, plus
17 (B) the privilege tax imposed by Section 409 of
18 the Illinois Insurance Code, the fire insurance
19 company tax imposed by Section 12 of the Fire
20 Investigation Act, and the fire department taxes
21 imposed under Section 11-10-1 of the Illinois
22 Municipal Code,
23 equals 1.25% for taxable years ending prior to December
24 31, 2003, or 1.75% for taxable years ending on or after
25 December 31, 2003, of the net taxable premiums written for
26 the taxable year, as described by subsection (1) of

HB3967- 125 -LRB102 14276 SPS 19628 b
1 Section 409 of the Illinois Insurance Code. This paragraph
2 will in no event increase the rates imposed under
3 subsections (b) and (d).
4 (2) Any reduction in the rates of tax imposed by this
5 subsection shall be applied first against the rates
6 imposed by subsection (b) and only after the tax imposed
7 by subsection (a) net of all credits allowed under this
8 Section other than the credit allowed under subsection (i)
9 has been reduced to zero, against the rates imposed by
10 subsection (d).
11 This subsection (d-1) is exempt from the provisions of
12Section 250.
13 (e) Investment credit. A taxpayer shall be allowed a
14credit against the Personal Property Tax Replacement Income
15Tax for investment in qualified property.
16 (1) A taxpayer shall be allowed a credit equal to .5%
17 of the basis of qualified property placed in service
18 during the taxable year, provided such property is placed
19 in service on or after July 1, 1984. There shall be allowed
20 an additional credit equal to .5% of the basis of
21 qualified property placed in service during the taxable
22 year, provided such property is placed in service on or
23 after July 1, 1986, and the taxpayer's base employment
24 within Illinois has increased by 1% or more over the
25 preceding year as determined by the taxpayer's employment
26 records filed with the Illinois Department of Employment

HB3967- 126 -LRB102 14276 SPS 19628 b
1 Security. Taxpayers who are new to Illinois shall be
2 deemed to have met the 1% growth in base employment for the
3 first year in which they file employment records with the
4 Illinois Department of Employment Security. The provisions
5 added to this Section by Public Act 85-1200 (and restored
6 by Public Act 87-895) shall be construed as declaratory of
7 existing law and not as a new enactment. If, in any year,
8 the increase in base employment within Illinois over the
9 preceding year is less than 1%, the additional credit
10 shall be limited to that percentage times a fraction, the
11 numerator of which is .5% and the denominator of which is
12 1%, but shall not exceed .5%. The investment credit shall
13 not be allowed to the extent that it would reduce a
14 taxpayer's liability in any tax year below zero, nor may
15 any credit for qualified property be allowed for any year
16 other than the year in which the property was placed in
17 service in Illinois. For tax years ending on or after
18 December 31, 1987, and on or before December 31, 1988, the
19 credit shall be allowed for the tax year in which the
20 property is placed in service, or, if the amount of the
21 credit exceeds the tax liability for that year, whether it
22 exceeds the original liability or the liability as later
23 amended, such excess may be carried forward and applied to
24 the tax liability of the 5 taxable years following the
25 excess credit years if the taxpayer (i) makes investments
26 which cause the creation of a minimum of 2,000 full-time

HB3967- 127 -LRB102 14276 SPS 19628 b
1 equivalent jobs in Illinois, (ii) is located in an
2 enterprise zone established pursuant to the Illinois
3 Enterprise Zone Act and (iii) is certified by the
4 Department of Commerce and Community Affairs (now
5 Department of Commerce and Economic Opportunity) as
6 complying with the requirements specified in clause (i)
7 and (ii) by July 1, 1986. The Department of Commerce and
8 Community Affairs (now Department of Commerce and Economic
9 Opportunity) shall notify the Department of Revenue of all
10 such certifications immediately. For tax years ending
11 after December 31, 1988, the credit shall be allowed for
12 the tax year in which the property is placed in service,
13 or, if the amount of the credit exceeds the tax liability
14 for that year, whether it exceeds the original liability
15 or the liability as later amended, such excess may be
16 carried forward and applied to the tax liability of the 5
17 taxable years following the excess credit years. The
18 credit shall be applied to the earliest year for which
19 there is a liability. If there is credit from more than one
20 tax year that is available to offset a liability, earlier
21 credit shall be applied first.
22 (2) The term "qualified property" means property
23 which:
24 (A) is tangible, whether new or used, including
25 buildings and structural components of buildings and
26 signs that are real property, but not including land

HB3967- 128 -LRB102 14276 SPS 19628 b
1 or improvements to real property that are not a
2 structural component of a building such as
3 landscaping, sewer lines, local access roads, fencing,
4 parking lots, and other appurtenances;
5 (B) is depreciable pursuant to Section 167 of the
6 Internal Revenue Code, except that "3-year property"
7 as defined in Section 168(c)(2)(A) of that Code is not
8 eligible for the credit provided by this subsection
9 (e);
10 (C) is acquired by purchase as defined in Section
11 179(d) of the Internal Revenue Code;
12 (D) is used in Illinois by a taxpayer who is
13 primarily engaged in manufacturing, or in mining coal
14 or fluorite, or in retailing, or was placed in service
15 on or after July 1, 2006 in a River Edge Redevelopment
16 Zone established pursuant to the River Edge
17 Redevelopment Zone Act; and
18 (E) has not previously been used in Illinois in
19 such a manner and by such a person as would qualify for
20 the credit provided by this subsection (e) or
21 subsection (f).
22 (3) For purposes of this subsection (e),
23 "manufacturing" means the material staging and production
24 of tangible personal property by procedures commonly
25 regarded as manufacturing, processing, fabrication, or
26 assembling which changes some existing material into new

HB3967- 129 -LRB102 14276 SPS 19628 b
1 shapes, new qualities, or new combinations. For purposes
2 of this subsection (e) the term "mining" shall have the
3 same meaning as the term "mining" in Section 613(c) of the
4 Internal Revenue Code. For purposes of this subsection
5 (e), the term "retailing" means the sale of tangible
6 personal property for use or consumption and not for
7 resale, or services rendered in conjunction with the sale
8 of tangible personal property for use or consumption and
9 not for resale. For purposes of this subsection (e),
10 "tangible personal property" has the same meaning as when
11 that term is used in the Retailers' Occupation Tax Act,
12 and, for taxable years ending after December 31, 2008,
13 does not include the generation, transmission, or
14 distribution of electricity.
15 (4) The basis of qualified property shall be the basis
16 used to compute the depreciation deduction for federal
17 income tax purposes.
18 (5) If the basis of the property for federal income
19 tax depreciation purposes is increased after it has been
20 placed in service in Illinois by the taxpayer, the amount
21 of such increase shall be deemed property placed in
22 service on the date of such increase in basis.
23 (6) The term "placed in service" shall have the same
24 meaning as under Section 46 of the Internal Revenue Code.
25 (7) If during any taxable year, any property ceases to
26 be qualified property in the hands of the taxpayer within

HB3967- 130 -LRB102 14276 SPS 19628 b
1 48 months after being placed in service, or the situs of
2 any qualified property is moved outside Illinois within 48
3 months after being placed in service, the Personal
4 Property Tax Replacement Income Tax for such taxable year
5 shall be increased. Such increase shall be determined by
6 (i) recomputing the investment credit which would have
7 been allowed for the year in which credit for such
8 property was originally allowed by eliminating such
9 property from such computation and, (ii) subtracting such
10 recomputed credit from the amount of credit previously
11 allowed. For the purposes of this paragraph (7), a
12 reduction of the basis of qualified property resulting
13 from a redetermination of the purchase price shall be
14 deemed a disposition of qualified property to the extent
15 of such reduction.
16 (8) Unless the investment credit is extended by law,
17 the basis of qualified property shall not include costs
18 incurred after December 31, 2018, except for costs
19 incurred pursuant to a binding contract entered into on or
20 before December 31, 2018.
21 (9) Each taxable year ending before December 31, 2000,
22 a partnership may elect to pass through to its partners
23 the credits to which the partnership is entitled under
24 this subsection (e) for the taxable year. A partner may
25 use the credit allocated to him or her under this
26 paragraph only against the tax imposed in subsections (c)

HB3967- 131 -LRB102 14276 SPS 19628 b
1 and (d) of this Section. If the partnership makes that
2 election, those credits shall be allocated among the
3 partners in the partnership in accordance with the rules
4 set forth in Section 704(b) of the Internal Revenue Code,
5 and the rules promulgated under that Section, and the
6 allocated amount of the credits shall be allowed to the
7 partners for that taxable year. The partnership shall make
8 this election on its Personal Property Tax Replacement
9 Income Tax return for that taxable year. The election to
10 pass through the credits shall be irrevocable.
11 For taxable years ending on or after December 31,
12 2000, a partner that qualifies its partnership for a
13 subtraction under subparagraph (I) of paragraph (2) of
14 subsection (d) of Section 203 or a shareholder that
15 qualifies a Subchapter S corporation for a subtraction
16 under subparagraph (S) of paragraph (2) of subsection (b)
17 of Section 203 shall be allowed a credit under this
18 subsection (e) equal to its share of the credit earned
19 under this subsection (e) during the taxable year by the
20 partnership or Subchapter S corporation, determined in
21 accordance with the determination of income and
22 distributive share of income under Sections 702 and 704
23 and Subchapter S of the Internal Revenue Code. This
24 paragraph is exempt from the provisions of Section 250.
25 (f) Investment credit; Enterprise Zone; River Edge
26Redevelopment Zone; Clean Energy Empowerment Zone.

HB3967- 132 -LRB102 14276 SPS 19628 b
1 (1) A taxpayer shall be allowed a credit against the
2 tax imposed by subsections (a) and (b) of this Section for
3 investment in qualified property which is placed in
4 service in an Enterprise Zone created pursuant to the
5 Illinois Enterprise Zone Act or, for property placed in
6 service on or after July 1, 2006, a River Edge
7 Redevelopment Zone established pursuant to the River Edge
8 Redevelopment Zone Act, or for investment in renewable
9 energy enterprises located in Clean Energy Empowerment
10 Zones created pursuant to the Energy Community
11 Reinvestment Act. For partners, shareholders of Subchapter
12 S corporations, and owners of limited liability companies,
13 if the liability company is treated as a partnership for
14 purposes of federal and State income taxation, there shall
15 be allowed a credit under this subsection (f) to be
16 determined in accordance with the determination of income
17 and distributive share of income under Sections 702 and
18 704 and Subchapter S of the Internal Revenue Code. The
19 credit shall be .5% of the basis for such property. The
20 credit shall be available only in the taxable year in
21 which the property is placed in service in the Enterprise
22 Zone or River Edge Redevelopment Zone and shall not be
23 allowed to the extent that it would reduce a taxpayer's
24 liability for the tax imposed by subsections (a) and (b)
25 of this Section to below zero. For tax years ending on or
26 after December 31, 1985, the credit shall be allowed for

HB3967- 133 -LRB102 14276 SPS 19628 b
1 the tax year in which the property is placed in service,
2 or, if the amount of the credit exceeds the tax liability
3 for that year, whether it exceeds the original liability
4 or the liability as later amended, such excess may be
5 carried forward and applied to the tax liability of the 5
6 taxable years following the excess credit year. The credit
7 shall be applied to the earliest year for which there is a
8 liability. If there is credit from more than one tax year
9 that is available to offset a liability, the credit
10 accruing first in time shall be applied first.
11 (2) The term qualified property means property which:
12 (A) is tangible, whether new or used, including
13 buildings and structural components of buildings;
14 (B) is depreciable pursuant to Section 167 of the
15 Internal Revenue Code, except that "3-year property"
16 as defined in Section 168(c)(2)(A) of that Code is not
17 eligible for the credit provided by this subsection
18 (f);
19 (C) is acquired by purchase as defined in Section
20 179(d) of the Internal Revenue Code;
21 (D) is used in the Enterprise Zone or River Edge
22 Redevelopment Zone by the taxpayer; and
23 (E) has not been previously used in Illinois in
24 such a manner and by such a person as would qualify for
25 the credit provided by this subsection (f) or
26 subsection (e).

HB3967- 134 -LRB102 14276 SPS 19628 b
1 (3) The basis of qualified property shall be the basis
2 used to compute the depreciation deduction for federal
3 income tax purposes.
4 (4) If the basis of the property for federal income
5 tax depreciation purposes is increased after it has been
6 placed in service in the Enterprise Zone or River Edge
7 Redevelopment Zone by the taxpayer, the amount of such
8 increase shall be deemed property placed in service on the
9 date of such increase in basis.
10 (5) The term "placed in service" shall have the same
11 meaning as under Section 46 of the Internal Revenue Code.
12 (6) If during any taxable year, any property ceases to
13 be qualified property in the hands of the taxpayer within
14 48 months after being placed in service, or the situs of
15 any qualified property is moved outside the Enterprise
16 Zone or River Edge Redevelopment Zone within 48 months
17 after being placed in service, the tax imposed under
18 subsections (a) and (b) of this Section for such taxable
19 year shall be increased. Such increase shall be determined
20 by (i) recomputing the investment credit which would have
21 been allowed for the year in which credit for such
22 property was originally allowed by eliminating such
23 property from such computation, and (ii) subtracting such
24 recomputed credit from the amount of credit previously
25 allowed. For the purposes of this paragraph (6), a
26 reduction of the basis of qualified property resulting

HB3967- 135 -LRB102 14276 SPS 19628 b
1 from a redetermination of the purchase price shall be
2 deemed a disposition of qualified property to the extent
3 of such reduction.
4 (7) There shall be allowed an additional credit equal
5 to 0.5% of the basis of qualified property placed in
6 service during the taxable year in a River Edge
7 Redevelopment Zone, provided such property is placed in
8 service on or after July 1, 2006, and the taxpayer's base
9 employment within Illinois has increased by 1% or more
10 over the preceding year as determined by the taxpayer's
11 employment records filed with the Illinois Department of
12 Employment Security. Taxpayers who are new to Illinois
13 shall be deemed to have met the 1% growth in base
14 employment for the first year in which they file
15 employment records with the Illinois Department of
16 Employment Security. If, in any year, the increase in base
17 employment within Illinois over the preceding year is less
18 than 1%, the additional credit shall be limited to that
19 percentage times a fraction, the numerator of which is
20 0.5% and the denominator of which is 1%, but shall not
21 exceed 0.5%.
22 (8) For taxable years beginning on or after January 1,
23 2021, there shall be allowed an Enterprise Zone
24 construction jobs credit against the taxes imposed under
25 subsections (a) and (b) of this Section as provided in
26 Section 13 of the Illinois Enterprise Zone Act.

HB3967- 136 -LRB102 14276 SPS 19628 b
1 The credit or credits may not reduce the taxpayer's
2 liability to less than zero. If the amount of the credit or
3 credits exceeds the taxpayer's liability, the excess may
4 be carried forward and applied against the taxpayer's
5 liability in succeeding calendar years in the same manner
6 provided under paragraph (4) of Section 211 of this Act.
7 The credit or credits shall be applied to the earliest
8 year for which there is a tax liability. If there are
9 credits from more than one taxable year that are available
10 to offset a liability, the earlier credit shall be applied
11 first.
12 For partners, shareholders of Subchapter S
13 corporations, and owners of limited liability companies,
14 if the liability company is treated as a partnership for
15 the purposes of federal and State income taxation, there
16 shall be allowed a credit under this Section to be
17 determined in accordance with the determination of income
18 and distributive share of income under Sections 702 and
19 704 and Subchapter S of the Internal Revenue Code.
20 The total aggregate amount of credits awarded under
21 the Blue Collar Jobs Act (Article 20 of Public Act 101-9
22 this amendatory Act of the 101st General Assembly) shall
23 not exceed $20,000,000 in any State fiscal year.
24 This paragraph (8) is exempt from the provisions of
25 Section 250.
26 (g) (Blank).

HB3967- 137 -LRB102 14276 SPS 19628 b
1 (h) Investment credit; High Impact Business.
2 (1) Subject to subsections (b) and (b-5) of Section
3 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
4 be allowed a credit against the tax imposed by subsections
5 (a) and (b) of this Section for investment in qualified
6 property which is placed in service by a Department of
7 Commerce and Economic Opportunity designated High Impact
8 Business. The credit shall be .5% of the basis for such
9 property. The credit shall not be available (i) until the
10 minimum investments in qualified property set forth in
11 subdivision (a)(3)(A) of Section 5.5 of the Illinois
12 Enterprise Zone Act have been satisfied or (ii) until the
13 time authorized in subsection (b-5) of the Illinois
14 Enterprise Zone Act for entities designated as High Impact
15 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
16 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
17 Act, and shall not be allowed to the extent that it would
18 reduce a taxpayer's liability for the tax imposed by
19 subsections (a) and (b) of this Section to below zero. The
20 credit applicable to such investments shall be taken in
21 the taxable year in which such investments have been
22 completed. The credit for additional investments beyond
23 the minimum investment by a designated high impact
24 business authorized under subdivision (a)(3)(A) of Section
25 5.5 of the Illinois Enterprise Zone Act shall be available
26 only in the taxable year in which the property is placed in

HB3967- 138 -LRB102 14276 SPS 19628 b
1 service and shall not be allowed to the extent that it
2 would reduce a taxpayer's liability for the tax imposed by
3 subsections (a) and (b) of this Section to below zero. For
4 tax years ending on or after December 31, 1987, the credit
5 shall be allowed for the tax year in which the property is
6 placed in service, or, if the amount of the credit exceeds
7 the tax liability for that year, whether it exceeds the
8 original liability or the liability as later amended, such
9 excess may be carried forward and applied to the tax
10 liability of the 5 taxable years following the excess
11 credit year. The credit shall be applied to the earliest
12 year for which there is a liability. If there is credit
13 from more than one tax year that is available to offset a
14 liability, the credit accruing first in time shall be
15 applied first.
16 Changes made in this subdivision (h)(1) by Public Act
17 88-670 restore changes made by Public Act 85-1182 and
18 reflect existing law.
19 (2) The term qualified property means property which:
20 (A) is tangible, whether new or used, including
21 buildings and structural components of buildings;
22 (B) is depreciable pursuant to Section 167 of the
23 Internal Revenue Code, except that "3-year property"
24 as defined in Section 168(c)(2)(A) of that Code is not
25 eligible for the credit provided by this subsection
26 (h);

HB3967- 139 -LRB102 14276 SPS 19628 b
1 (C) is acquired by purchase as defined in Section
2 179(d) of the Internal Revenue Code; and
3 (D) is not eligible for the Enterprise Zone
4 Investment Credit provided by subsection (f) of this
5 Section.
6 (3) The basis of qualified property shall be the basis
7 used to compute the depreciation deduction for federal
8 income tax purposes.
9 (4) If the basis of the property for federal income
10 tax depreciation purposes is increased after it has been
11 placed in service in a federally designated Foreign Trade
12 Zone or Sub-Zone located in Illinois by the taxpayer, the
13 amount of such increase shall be deemed property placed in
14 service on the date of such increase in basis.
15 (5) The term "placed in service" shall have the same
16 meaning as under Section 46 of the Internal Revenue Code.
17 (6) If during any taxable year ending on or before
18 December 31, 1996, any property ceases to be qualified
19 property in the hands of the taxpayer within 48 months
20 after being placed in service, or the situs of any
21 qualified property is moved outside Illinois within 48
22 months after being placed in service, the tax imposed
23 under subsections (a) and (b) of this Section for such
24 taxable year shall be increased. Such increase shall be
25 determined by (i) recomputing the investment credit which
26 would have been allowed for the year in which credit for

HB3967- 140 -LRB102 14276 SPS 19628 b
1 such property was originally allowed by eliminating such
2 property from such computation, and (ii) subtracting such
3 recomputed credit from the amount of credit previously
4 allowed. For the purposes of this paragraph (6), a
5 reduction of the basis of qualified property resulting
6 from a redetermination of the purchase price shall be
7 deemed a disposition of qualified property to the extent
8 of such reduction.
9 (7) Beginning with tax years ending after December 31,
10 1996, if a taxpayer qualifies for the credit under this
11 subsection (h) and thereby is granted a tax abatement and
12 the taxpayer relocates its entire facility in violation of
13 the explicit terms and length of the contract under
14 Section 18-183 of the Property Tax Code, the tax imposed
15 under subsections (a) and (b) of this Section shall be
16 increased for the taxable year in which the taxpayer
17 relocated its facility by an amount equal to the amount of
18 credit received by the taxpayer under this subsection (h).
19 (h-5) High Impact Business construction constructions jobs
20credit. For taxable years beginning on or after January 1,
212021, there shall also be allowed a High Impact Business
22construction jobs credit against the tax imposed under
23subsections (a) and (b) of this Section as provided in
24subsections (i) and (j) of Section 5.5 of the Illinois
25Enterprise Zone Act.
26 The credit or credits may not reduce the taxpayer's

HB3967- 141 -LRB102 14276 SPS 19628 b
1liability to less than zero. If the amount of the credit or
2credits exceeds the taxpayer's liability, the excess may be
3carried forward and applied against the taxpayer's liability
4in succeeding calendar years in the manner provided under
5paragraph (4) of Section 211 of this Act. The credit or credits
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits from more than one taxable
8year that are available to offset a liability, the earlier
9credit shall be applied first.
10 For partners, shareholders of Subchapter S corporations,
11and owners of limited liability companies, if the liability
12company is treated as a partnership for the purposes of
13federal and State income taxation, there shall be allowed a
14credit under this Section to be determined in accordance with
15the determination of income and distributive share of income
16under Sections 702 and 704 and Subchapter S of the Internal
17Revenue Code.
18 The total aggregate amount of credits awarded under the
19Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
20amendatory Act of the 101st General Assembly) shall not exceed
21$20,000,000 in any State fiscal year.
22 This subsection (h-5) is exempt from the provisions of
23Section 250.
24 (i) Credit for Personal Property Tax Replacement Income
25Tax. For tax years ending prior to December 31, 2003, a credit
26shall be allowed against the tax imposed by subsections (a)

HB3967- 142 -LRB102 14276 SPS 19628 b
1and (b) of this Section for the tax imposed by subsections (c)
2and (d) of this Section. This credit shall be computed by
3multiplying the tax imposed by subsections (c) and (d) of this
4Section by a fraction, the numerator of which is base income
5allocable to Illinois and the denominator of which is Illinois
6base income, and further multiplying the product by the tax
7rate imposed by subsections (a) and (b) of this Section.
8 Any credit earned on or after December 31, 1986 under this
9subsection which is unused in the year the credit is computed
10because it exceeds the tax liability imposed by subsections
11(a) and (b) for that year (whether it exceeds the original
12liability or the liability as later amended) may be carried
13forward and applied to the tax liability imposed by
14subsections (a) and (b) of the 5 taxable years following the
15excess credit year, provided that no credit may be carried
16forward to any year ending on or after December 31, 2003. This
17credit shall be applied first to the earliest year for which
18there is a liability. If there is a credit under this
19subsection from more than one tax year that is available to
20offset a liability the earliest credit arising under this
21subsection shall be applied first.
22 If, during any taxable year ending on or after December
2331, 1986, the tax imposed by subsections (c) and (d) of this
24Section for which a taxpayer has claimed a credit under this
25subsection (i) is reduced, the amount of credit for such tax
26shall also be reduced. Such reduction shall be determined by

HB3967- 143 -LRB102 14276 SPS 19628 b
1recomputing the credit to take into account the reduced tax
2imposed by subsections (c) and (d). If any portion of the
3reduced amount of credit has been carried to a different
4taxable year, an amended return shall be filed for such
5taxable year to reduce the amount of credit claimed.
6 (j) Training expense credit. Beginning with tax years
7ending on or after December 31, 1986 and prior to December 31,
82003, a taxpayer shall be allowed a credit against the tax
9imposed by subsections (a) and (b) under this Section for all
10amounts paid or accrued, on behalf of all persons employed by
11the taxpayer in Illinois or Illinois residents employed
12outside of Illinois by a taxpayer, for educational or
13vocational training in semi-technical or technical fields or
14semi-skilled or skilled fields, which were deducted from gross
15income in the computation of taxable income. The credit
16against the tax imposed by subsections (a) and (b) shall be
171.6% of such training expenses. For partners, shareholders of
18subchapter S corporations, and owners of limited liability
19companies, if the liability company is treated as a
20partnership for purposes of federal and State income taxation,
21there shall be allowed a credit under this subsection (j) to be
22determined in accordance with the determination of income and
23distributive share of income under Sections 702 and 704 and
24subchapter S of the Internal Revenue Code.
25 Any credit allowed under this subsection which is unused
26in the year the credit is earned may be carried forward to each

HB3967- 144 -LRB102 14276 SPS 19628 b
1of the 5 taxable years following the year for which the credit
2is first computed until it is used. This credit shall be
3applied first to the earliest year for which there is a
4liability. If there is a credit under this subsection from
5more than one tax year that is available to offset a liability,
6the earliest credit arising under this subsection shall be
7applied first. No carryforward credit may be claimed in any
8tax year ending on or after December 31, 2003.
9 (k) Research and development credit. For tax years ending
10after July 1, 1990 and prior to December 31, 2003, and
11beginning again for tax years ending on or after December 31,
122004, and ending prior to January 1, 2027, a taxpayer shall be
13allowed a credit against the tax imposed by subsections (a)
14and (b) of this Section for increasing research activities in
15this State. The credit allowed against the tax imposed by
16subsections (a) and (b) shall be equal to 6 1/2% of the
17qualifying expenditures for increasing research activities in
18this State. For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if
20the liability company is treated as a partnership for purposes
21of federal and State income taxation, there shall be allowed a
22credit under this subsection to be determined in accordance
23with the determination of income and distributive share of
24income under Sections 702 and 704 and subchapter S of the
25Internal Revenue Code.
26 For purposes of this subsection, "qualifying expenditures"

HB3967- 145 -LRB102 14276 SPS 19628 b
1means the qualifying expenditures as defined for the federal
2credit for increasing research activities which would be
3allowable under Section 41 of the Internal Revenue Code and
4which are conducted in this State, "qualifying expenditures
5for increasing research activities in this State" means the
6excess of qualifying expenditures for the taxable year in
7which incurred over qualifying expenditures for the base
8period, "qualifying expenditures for the base period" means
9the average of the qualifying expenditures for each year in
10the base period, and "base period" means the 3 taxable years
11immediately preceding the taxable year for which the
12determination is being made.
13 Any credit in excess of the tax liability for the taxable
14year may be carried forward. A taxpayer may elect to have the
15unused credit shown on its final completed return carried over
16as a credit against the tax liability for the following 5
17taxable years or until it has been fully used, whichever
18occurs first; provided that no credit earned in a tax year
19ending prior to December 31, 2003 may be carried forward to any
20year ending on or after December 31, 2003.
21 If an unused credit is carried forward to a given year from
222 or more earlier years, that credit arising in the earliest
23year will be applied first against the tax liability for the
24given year. If a tax liability for the given year still
25remains, the credit from the next earliest year will then be
26applied, and so on, until all credits have been used or no tax

HB3967- 146 -LRB102 14276 SPS 19628 b
1liability for the given year remains. Any remaining unused
2credit or credits then will be carried forward to the next
3following year in which a tax liability is incurred, except
4that no credit can be carried forward to a year which is more
5than 5 years after the year in which the expense for which the
6credit is given was incurred.
7 No inference shall be drawn from Public Act 91-644 this
8amendatory Act of the 91st General Assembly in construing this
9Section for taxable years beginning before January 1, 1999.
10 It is the intent of the General Assembly that the research
11and development credit under this subsection (k) shall apply
12continuously for all tax years ending on or after December 31,
132004 and ending prior to January 1, 2027, including, but not
14limited to, the period beginning on January 1, 2016 and ending
15on July 6, 2017 (the effective date of Public Act 100-22) this
16amendatory Act of the 100th General Assembly. All actions
17taken in reliance on the continuation of the credit under this
18subsection (k) by any taxpayer are hereby validated.
19 (l) Environmental Remediation Tax Credit.
20 (i) For tax years ending after December 31, 1997 and
21 on or before December 31, 2001, a taxpayer shall be
22 allowed a credit against the tax imposed by subsections
23 (a) and (b) of this Section for certain amounts paid for
24 unreimbursed eligible remediation costs, as specified in
25 this subsection. For purposes of this Section,
26 "unreimbursed eligible remediation costs" means costs

HB3967- 147 -LRB102 14276 SPS 19628 b
1 approved by the Illinois Environmental Protection Agency
2 ("Agency") under Section 58.14 of the Environmental
3 Protection Act that were paid in performing environmental
4 remediation at a site for which a No Further Remediation
5 Letter was issued by the Agency and recorded under Section
6 58.10 of the Environmental Protection Act. The credit must
7 be claimed for the taxable year in which Agency approval
8 of the eligible remediation costs is granted. The credit
9 is not available to any taxpayer if the taxpayer or any
10 related party caused or contributed to, in any material
11 respect, a release of regulated substances on, in, or
12 under the site that was identified and addressed by the
13 remedial action pursuant to the Site Remediation Program
14 of the Environmental Protection Act. After the Pollution
15 Control Board rules are adopted pursuant to the Illinois
16 Administrative Procedure Act for the administration and
17 enforcement of Section 58.9 of the Environmental
18 Protection Act, determinations as to credit availability
19 for purposes of this Section shall be made consistent with
20 those rules. For purposes of this Section, "taxpayer"
21 includes a person whose tax attributes the taxpayer has
22 succeeded to under Section 381 of the Internal Revenue
23 Code and "related party" includes the persons disallowed a
24 deduction for losses by paragraphs (b), (c), and (f)(1) of
25 Section 267 of the Internal Revenue Code by virtue of
26 being a related taxpayer, as well as any of its partners.

HB3967- 148 -LRB102 14276 SPS 19628 b
1 The credit allowed against the tax imposed by subsections
2 (a) and (b) shall be equal to 25% of the unreimbursed
3 eligible remediation costs in excess of $100,000 per site,
4 except that the $100,000 threshold shall not apply to any
5 site contained in an enterprise zone as determined by the
6 Department of Commerce and Community Affairs (now
7 Department of Commerce and Economic Opportunity). The
8 total credit allowed shall not exceed $40,000 per year
9 with a maximum total of $150,000 per site. For partners
10 and shareholders of subchapter S corporations, there shall
11 be allowed a credit under this subsection to be determined
12 in accordance with the determination of income and
13 distributive share of income under Sections 702 and 704
14 and subchapter S of the Internal Revenue Code.
15 (ii) A credit allowed under this subsection that is
16 unused in the year the credit is earned may be carried
17 forward to each of the 5 taxable years following the year
18 for which the credit is first earned until it is used. The
19 term "unused credit" does not include any amounts of
20 unreimbursed eligible remediation costs in excess of the
21 maximum credit per site authorized under paragraph (i).
22 This credit shall be applied first to the earliest year
23 for which there is a liability. If there is a credit under
24 this subsection from more than one tax year that is
25 available to offset a liability, the earliest credit
26 arising under this subsection shall be applied first. A

HB3967- 149 -LRB102 14276 SPS 19628 b
1 credit allowed under this subsection may be sold to a
2 buyer as part of a sale of all or part of the remediation
3 site for which the credit was granted. The purchaser of a
4 remediation site and the tax credit shall succeed to the
5 unused credit and remaining carry-forward period of the
6 seller. To perfect the transfer, the assignor shall record
7 the transfer in the chain of title for the site and provide
8 written notice to the Director of the Illinois Department
9 of Revenue of the assignor's intent to sell the
10 remediation site and the amount of the tax credit to be
11 transferred as a portion of the sale. In no event may a
12 credit be transferred to any taxpayer if the taxpayer or a
13 related party would not be eligible under the provisions
14 of subsection (i).
15 (iii) For purposes of this Section, the term "site"
16 shall have the same meaning as under Section 58.2 of the
17 Environmental Protection Act.
18 (m) Education expense credit. Beginning with tax years
19ending after December 31, 1999, a taxpayer who is the
20custodian of one or more qualifying pupils shall be allowed a
21credit against the tax imposed by subsections (a) and (b) of
22this Section for qualified education expenses incurred on
23behalf of the qualifying pupils. The credit shall be equal to
2425% of qualified education expenses, but in no event may the
25total credit under this subsection claimed by a family that is
26the custodian of qualifying pupils exceed (i) $500 for tax

HB3967- 150 -LRB102 14276 SPS 19628 b
1years ending prior to December 31, 2017, and (ii) $750 for tax
2years ending on or after December 31, 2017. In no event shall a
3credit under this subsection reduce the taxpayer's liability
4under this Act to less than zero. Notwithstanding any other
5provision of law, for taxable years beginning on or after
6January 1, 2017, no taxpayer may claim a credit under this
7subsection (m) if the taxpayer's adjusted gross income for the
8taxable year exceeds (i) $500,000, in the case of spouses
9filing a joint federal tax return or (ii) $250,000, in the case
10of all other taxpayers. This subsection is exempt from the
11provisions of Section 250 of this Act.
12 For purposes of this subsection:
13 "Qualifying pupils" means individuals who (i) are
14residents of the State of Illinois, (ii) are under the age of
1521 at the close of the school year for which a credit is
16sought, and (iii) during the school year for which a credit is
17sought were full-time pupils enrolled in a kindergarten
18through twelfth grade education program at any school, as
19defined in this subsection.
20 "Qualified education expense" means the amount incurred on
21behalf of a qualifying pupil in excess of $250 for tuition,
22book fees, and lab fees at the school in which the pupil is
23enrolled during the regular school year.
24 "School" means any public or nonpublic elementary or
25secondary school in Illinois that is in compliance with Title
26VI of the Civil Rights Act of 1964 and attendance at which

HB3967- 151 -LRB102 14276 SPS 19628 b
1satisfies the requirements of Section 26-1 of the School Code,
2except that nothing shall be construed to require a child to
3attend any particular public or nonpublic school to qualify
4for the credit under this Section.
5 "Custodian" means, with respect to qualifying pupils, an
6Illinois resident who is a parent, the parents, a legal
7guardian, or the legal guardians of the qualifying pupils.
8 (n) River Edge Redevelopment Zone site remediation tax
9credit.
10 (i) For tax years ending on or after December 31,
11 2006, a taxpayer shall be allowed a credit against the tax
12 imposed by subsections (a) and (b) of this Section for
13 certain amounts paid for unreimbursed eligible remediation
14 costs, as specified in this subsection. For purposes of
15 this Section, "unreimbursed eligible remediation costs"
16 means costs approved by the Illinois Environmental
17 Protection Agency ("Agency") under Section 58.14a of the
18 Environmental Protection Act that were paid in performing
19 environmental remediation at a site within a River Edge
20 Redevelopment Zone for which a No Further Remediation
21 Letter was issued by the Agency and recorded under Section
22 58.10 of the Environmental Protection Act. The credit must
23 be claimed for the taxable year in which Agency approval
24 of the eligible remediation costs is granted. The credit
25 is not available to any taxpayer if the taxpayer or any
26 related party caused or contributed to, in any material

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

HB3967- 153 -LRB102 14276 SPS 19628 b
1 to offset a liability, the earliest credit arising under
2 this subsection shall be applied first. A credit allowed
3 under this subsection may be sold to a buyer as part of a
4 sale of all or part of the remediation site for which the
5 credit was granted. The purchaser of a remediation site
6 and the tax credit shall succeed to the unused credit and
7 remaining carry-forward period of the seller. To perfect
8 the transfer, the assignor shall record the transfer in
9 the chain of title for the site and provide written notice
10 to the Director of the Illinois Department of Revenue of
11 the assignor's intent to sell the remediation site and the
12 amount of the tax credit to be transferred as a portion of
13 the sale. In no event may a credit be transferred to any
14 taxpayer if the taxpayer or a related party would not be
15 eligible under the provisions of subsection (i).
16 (iii) For purposes of this Section, the term "site"
17 shall have the same meaning as under Section 58.2 of the
18 Environmental Protection Act.
19 (o) For each of taxable years during the Compassionate Use
20of Medical Cannabis Program, a surcharge is imposed on all
21taxpayers on income arising from the sale or exchange of
22capital assets, depreciable business property, real property
23used in the trade or business, and Section 197 intangibles of
24an organization registrant under the Compassionate Use of
25Medical Cannabis Program Act. The amount of the surcharge is
26equal to the amount of federal income tax liability for the

HB3967- 154 -LRB102 14276 SPS 19628 b
1taxable year attributable to those sales and exchanges. The
2surcharge imposed does not apply if:
3 (1) the medical cannabis cultivation center
4 registration, medical cannabis dispensary registration, or
5 the property of a registration is transferred as a result
6 of any of the following:
7 (A) bankruptcy, a receivership, or a debt
8 adjustment initiated by or against the initial
9 registration or the substantial owners of the initial
10 registration;
11 (B) cancellation, revocation, or termination of
12 any registration by the Illinois Department of Public
13 Health;
14 (C) a determination by the Illinois Department of
15 Public Health that transfer of the registration is in
16 the best interests of Illinois qualifying patients as
17 defined by the Compassionate Use of Medical Cannabis
18 Program Act;
19 (D) the death of an owner of the equity interest in
20 a registrant;
21 (E) the acquisition of a controlling interest in
22 the stock or substantially all of the assets of a
23 publicly traded company;
24 (F) a transfer by a parent company to a wholly
25 owned subsidiary; or
26 (G) the transfer or sale to or by one person to

HB3967- 155 -LRB102 14276 SPS 19628 b
1 another person where both persons were initial owners
2 of the registration when the registration was issued;
3 or
4 (2) the cannabis cultivation center registration,
5 medical cannabis dispensary registration, or the
6 controlling interest in a registrant's property is
7 transferred in a transaction to lineal descendants in
8 which no gain or loss is recognized or as a result of a
9 transaction in accordance with Section 351 of the Internal
10 Revenue Code in which no gain or loss is recognized.
11(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
12effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
13101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
14 Section 90-20. The Retailers' Occupation Tax Act is
15amended by adding Section 5k-5 as follows:
16 (35 ILCS 120/5k-5 new)
17 Sec. 5k-5. Building materials exemption; Clean Energy
18Empowerment Zone. Each retailer who makes a sale of building
19materials to be incorporated into renewable energy projects in
20a Clean Energy Empowerment Zone established under the Energy
21Community Reinvestment Act may deduct receipts from such sales
22when calculating the tax imposed by this Act. A renewable
23energy enterprise or other entity shall not make tax-free
24purchases under this Section unless it has an active exemption

HB3967- 156 -LRB102 14276 SPS 19628 b
1certificate at the time of purchase, which shall be issued by
2the Department in a form prescribed by the Department. The
3Department shall adopt by rule all other requirements
4necessary for the implementation and operation of this
5Section.
6 Section 90-25. The Public Utilities Act is amended by
7adding Sections 9-222.1B and 16-108.9 as follows:
8 (220 ILCS 5/9-222.1B new)
9 Sec. 9-222.1B. Clean Energy Empowerment Zone exemption. A
10renewable energy enterprise that is located within a Clean
11Energy Empowerment Zone established under the Energy Community
12Reinvestment Act shall be exempt from the additional charges
13added to the renewable energy enterprise's utility bills as a
14pass-on of municipal and State utility taxes under Sections
159-221 and 9-222 of this Act, to the extent such charges are
16exempted by ordinance adopted in accordance with paragraph (e)
17of Section 8-11-2 of the Illinois Municipal Code in the case of
18municipal utility taxes, and to the extent such charges are
19exempted by the percentage specified by the Department of
20Commerce and Economic Opportunity in the case of State utility
21taxes, provided such renewable energy enterprise meets the
22following criteria:
23 (1) it (i) makes investments that cause the creation
24 of a minimum of 200 full-time equivalent jobs in Illinois;

HB3967- 157 -LRB102 14276 SPS 19628 b
1 (ii) makes investments of at least $175,000,000 that cause
2 the creation of a minimum of 150 full-time equivalent jobs
3 in Illinois; (iii) makes investments that cause the
4 retention of a minimum of 300 full-time equivalent jobs in
5 the manufacturing sector, as defined by the North American
6 Industry Classification System, in an area in Illinois in
7 which the unemployment rate is above 9% and makes an
8 application to the Department within 3 months after the
9 effective date of this amendatory Act of the 102nd General
10 Assembly and certifies relocation of the 300 full-time
11 equivalent jobs within 48 months after the application; or
12 (iv) makes investments that cause the retention of a
13 minimum of 1,000 full-time jobs in Illinois;
14 (2) it is located in a Clean Energy Empowerment Zone
15 established under the Energy Community Reinvestment Act;
16 and
17 (3) it is certified by the Department of Commerce and
18 Economic Opportunity as complying with the requirements
19 specified in clauses (1) and (2) of this Section.
20 The Department of Commerce and Economic Opportunity shall
21determine the period during which such exemption from the
22charges imposed under Section 9-222 is in effect which shall
23not exceed 30 years or the term of the Clean Energy Empowerment
24Zone, whichever period is shorter, except that the exemption
25period for a renewable energy enterprise qualifying under item
26(iii) of clause (1) of this Section shall not exceed 30 years.

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1 The Department of Commerce and Economic Opportunity has
2the power to adopt rules to carry out the provisions of this
3Section including procedures for complying with the
4requirements specified in clauses (1) and (2) of this Section
5and procedures for applying for the exemptions authorized
6under this Section; to define the amounts and types of
7eligible investments that a renewable energy enterprise must
8make in order to receive State utility tax exemptions pursuant
9to Sections 9-222 and 9-222.1 of this Act; to approve such
10utility tax exemptions for renewable energy enterprise whose
11investments are not yet placed in service; and to require that
12renewable energy enterprise granted tax exemptions repay the
13exempted tax should the renewable energy enterprise fail to
14comply with the terms and conditions of the certification.
15However, no renewable energy enterprise shall be required, as
16a condition for certification under clause (3) of this
17Section, to attest that its decision to invest under clause
18(1) of this Section and to locate under clause (2) of this
19Section is predicated upon the availability of the exemptions
20authorized by this Section.
21 A renewable energy enterprise shall be exempt, in whole or
22in part, from the pass-on charges of municipal utility taxes
23imposed under Section 9-221, only if it meets the criteria
24specified in clauses (1) through (3) of this Section and the
25municipality has adopted an ordinance authorizing the
26exemption under paragraph (e) of Section 8-11-2 of the

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1Illinois Municipal Code. Upon certification of the renewable
2energy enterprise by the Department of Commerce and Economic
3Opportunity, the Department of Commerce and Economic
4Opportunity shall notify the Department of Revenue of such
5certification. The Department of Revenue shall notify the
6public utilities of the exemption status of renewable energy
7enterprises from the pass-on charges of State and municipal
8utility taxes. Such exemption status shall be effective within
93 months after certification of the renewable energy
10enterprise.
11 (220 ILCS 5/16-108.9 new)
12 Sec. 16-108.9. Clean Energy Empowerment Zone pilot
13projects.
14 (a) The General Assembly finds that it is important to
15support the rapid transition in the energy sector to put
16Illinois on a path to 100% renewable energy. This will require
17leveraging new technologies and solutions to support grid
18reliability to address issues such as the shift from large,
19centralized, fossil generation to wind, solar, and distributed
20energy resources. To that end, the General Assembly sees the
21need for developing pilot projects in Clean Energy Empowerment
22Zones that enhance reliability while facilitating the
23transition toward clean energy.
24 (b) An electric utility serving more than 100,000 retail
25customers may propose one or more Clean Energy Empowerment

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1Zone pilot projects to the Illinois Commerce Commission to
2conduct a competitive procurement for independently owned
3energy storage systems to be located in Clean Energy
4Empowerment Zones. The Commission shall evaluate the projects
5based on their ability to address present and future
6reliability needs identified by the Midcontinent Independent
7System Operator, PJM Interconnection, electric utilities, or
8independent analysts. In addition to supporting reliability, a
9qualifying project must support the transition toward or
10development of clean energy.
11 (c) The Clean Energy Empowerment Zones described in this
12Section shall be the same as defined by the Department of
13Commerce and Economic Opportunity in the Energy Community
14Reinvestment Act.
15 (d) The Clean Energy Empowerment Zone pilot projects shall
16closely coordinate with actual and expected development of new
17wind projects and new solar projects as described in Section
181-75 of the Illinois Power Agency Act, electric vehicle
19adoption, and Community Energy, Climate, and Jobs Plans as
20defined in the Community Energy, Climate, and Jobs Planning
21Act.
22 (e) Upon approval of a Clean Energy Empowerment Zone pilot
23project by the Illinois Commerce Commission, an electric
24utility is authorized to enter into a distribution services
25contract with new energy storage system projects in accordance
26with the approved project. Nothing in this Section or in the

HB3967- 161 -LRB102 14276 SPS 19628 b
1distribution services contract shall preclude the energy
2storage project from providing additional wholesale market
3services.
4 (f) An electric utility that elects to undertake the
5investment described in subsection (b) of this Section may, at
6its election, recover the costs of such investment through an
7automatic adjustment clause tariff or through a delivery
8services charge regardless of how the costs are classified on
9the utility's books and records of account.
10 (g) To the extent feasible and consistent with State and
11federal law, the investments made pursuant to this Section
12shall provide employment opportunities for former workers in
13fossil fuel industries.
14 (h) Nothing in this Section is intended to limit the
15ability of any other entity to develop, construct, or install
16an energy storage system. In addition, nothing in this Section
17is intended to limit or alter otherwise applicable
18interconnection requirements.
19 Section 90-30. The Environmental Protection Act is amended
20by changing Section 9.10 and by adding Section 9.18 as
21follows:
22 (415 ILCS 5/9.10)
23 Sec. 9.10. Fossil fuel-powered electric generating units
24Fossil fuel-fired electric generating plants.

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1 (a) As used in this Section:
2 "Board" means the Illinois Pollution Control Board.
3 "BIPOC" and "black, indigenous, and people of color" are
4defined as people who are members of the groups described in
5subparagraphs (a) through (e) of paragraph (A) of subsection
6(1) of Section 2 of the Business Enterprise for Minorities,
7Women, and Persons with Disabilities Act.
8 "Emissions" means greenhouse gases, particulate matter,
9mercury, nitrogen oxides, sulfur dioxide, and any other
10pollutant that the Agency deems appropriate for regulation to
11protect health or land in the State.
12 "Frontline community" means any community or municipality
13within a 3-mile radius of a fossil fuel-powered electric
14generating unit.
15 "Meaningful involvement" means: (1) potentially affected
16populations have an appropriate opportunity to participate in
17decisions about a proposed regulatory action that may affect
18their environment or health; (2) the populations'
19contributions can influence the EPA's rulemaking decisions;
20(3) the concerns of all participants involved shall be
21considered in the decision-making process; and (4) the IEPA
22shall seek out and facilitate the involvement of populations
23potentially affected by the IEPA's proposed regulatory action.
24 (a-1) (a) The General Assembly finds and declares that:
25 (1) fossil fuel-powered electric generating units
26 fossil fuel-fired electric generating plants are a

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

HB3967- 164 -LRB102 14276 SPS 19628 b
1 on the state and national levels is being affected by the
2 on-going deregulation of the power generation industry and
3 the evolving energy markets;
4 (6) the Governor's formation of an Energy Cabinet and
5 the development of a State energy policy calls for actions
6 by the Agency and the Board that are in harmony with the
7 energy needs and policy of the State, while protecting the
8 public health and the environment;
9 (7) reducing greenhouse gas emissions and other air
10 pollutants such as particulate matter, sulfur dioxide, and
11 nitrogen oxide is critical to improving the health and
12 welfare of Illinois residents by decreasing respiratory
13 diseases, cardiovascular diseases, and related
14 mortalities; lowering customers' energy costs; and
15 responding to the growing impacts of climate change from
16 fossil fuel generation;
17 (8) through reductions in harmful emissions and
18 strategic planning for Illinois residents currently
19 employed by and communities reliant on fossil fuel-powered
20 electric generating units, eliminating greenhouse gas
21 emissions from the electricity generation sector is a
22 priority for the State;
23 (9) The House of Representatives of the 100th General
24 Assembly recognized this problem and, in adopting House
25 Resolution 490 on June 26, 2017, it supported the Paris
26 Climate Agreement and urged the State of Illinois to join

HB3967- 165 -LRB102 14276 SPS 19628 b
1 the United States Climate Alliance and develop a plan to
2 achieve 100% clean energy by 2045;
3 (7) Illinois coal is an abundant resource and an
4 important component of Illinois' economy whose use should
5 be encouraged to the greatest extent possible consistent
6 with protecting the public health and the environment;
7 (8) renewable forms of energy should be promoted as an
8 important element of the energy and environmental policies
9 of the State and that it is a goal of the State that at
10 least 5% of the State's energy production and use be
11 derived from renewable forms of energy by 2010 and at
12 least 15% from renewable forms of energy by 2020;
13 (10) (9) efforts on the state and federal levels are
14 underway to consider the multiple environmental
15 regulations affecting electric generating plants in order
16 to improve the ability of government and the affected
17 industry to engage in effective planning through the use
18 of multi-pollutant strategies; and
19 (11) (10) these issues, taken together, call for a
20 comprehensive review of the impact of these facilities on
21 the public health, considering also the energy supply,
22 reliability, and costs, the role of renewable forms of
23 energy, and the developments in federal law and
24 regulations that may affect any state actions, prior to
25 making final decisions in Illinois.
26 (b) Taking into account the findings and declarations of

HB3967- 166 -LRB102 14276 SPS 19628 b
1the General Assembly contained in subsection (a) of this
2Section, the Agency shall, within 180 days after the effective
3date of this amendatory Act of the 102nd General Assembly,
4initiate a rulemaking to amend Title 35 of the Illinois
5Administrative Code to establish annual declining greenhouse
6gas pollution caps and caps on co-pollutants, including, but
7not limited to, particulate matter (including both PM10 and
8PM2.5), mercury, nitrogen oxides, and sulfur dioxide, beginning
9in 2023 from all fossil fuel-powered electric generating units
10(including, but not limited to, coal-fired, coal-derived,
11oil-fired, combustion turbine, integrated gasification
12combined cycle, and cogeneration facilities with a nameplate
13capacity that exceeds 25 MW) so as to progressively eliminate
14all emissions of those pollutants from Illinois' electric
15sector by the year 2030. No later than one year after receipt
16of the Agency's proposal under this Section, the Board shall
17adopt rules setting out declining annual emissions caps for
18greenhouse gases (CO2 equivalent) and co-pollutants,
19including, but not limited to, particulate matter (including
20both PM10 and PM2.5), mercury, nitrogen oxides, and sulfur
21dioxide, for each individual fossil fuel-powered electric
22generating unit in Illinois as well as aggregate annual
23statewide emissions caps. The Board may set different
24declining caps for each plant, but caps must decline to zero
25emissions for all plants by 2030. As part of its rulemaking
26proposal, the Agency shall:

HB3967- 167 -LRB102 14276 SPS 19628 b
1 (1) ensure that power plants located near densely
2 populated and environmental justice communities and those
3 with sulfur dioxide emission rates above 0.0007 pounds per
4 million Btu are prioritized for more rapid, mandatory,
5 plant-specific emissions reductions for both greenhouse
6 gases and co-pollutants;
7 (2) develop an environmental justice analysis, in
8 partnership with the Illinois Commission on Environmental
9 Justice and with frontline community feedback, to inform a
10 draft rule proposal and identification of power plants of
11 particular concern requiring priority emissions
12 reductions. This analysis shall include a cumulative
13 impacts assessment and use existing methodologies and
14 findings, used and as may be updated by the Illinois Power
15 Agency and its Administrator in its Illinois Solar for All
16 Program, taking into account the following factors:
17 (A) Population density;
18 (B) National-Scale Air Toxics Assessment (NATA)
19 air toxics cancer risk;
20 (C) NATA respiratory hazard index;
21 (D) NATA diesel PM;
22 (E) particulate matter;
23 (F) ozone;
24 (G) traffic proximity and volume;
25 (H) lead paint indicator;
26 (I) proximity to Risk Management Plan sites;

HB3967- 168 -LRB102 14276 SPS 19628 b
1 (J) proximity to Hazardous Waste Treatment,
2 Storage, and Disposal Facilities;
3 (K) proximity to National Priorities List sites;
4 (L) Wastewater Dischargers Indicator;
5 (M) percent low-income;
6 (N) percent black, indigenous, and people of
7 color;
8 (O) percent less than a high school education;
9 (P) linguistic isolation;
10 (Q) age (individuals under age 5 or over 64);
11 (R) number of asthma-related emergency department
12 visits; and
13 (S) frequency of low birth weight infants;
14 (3) conduct a robust and inclusive stakeholder process
15 prior to initiating a rulemaking proceeding before the
16 Illinois Pollution Control Board that ensures the
17 meaningful participation of Illinois residents, especially
18 those most impacted by fossil fuel-powered electric
19 generating units. To ensure meaningful involvement in its
20 stakeholder process, the agency shall:
21 (A) include a formal public comment period with at
22 least 4 public hearings located in communities
23 geographically dispersed, where fossil fuel-powered
24 electric generating units are located;
25 (B) ensure full and fair access for working
26 residents by providing opportunity for public comment

HB3967- 169 -LRB102 14276 SPS 19628 b
1 outside the workday; and
2 (C) issue a responsiveness summary with a draft
3 rulemaking briefly describing and responding to, at a
4 minimum, all frontline community comments raised
5 during the stakeholder process and public comment
6 period;
7 (4) participate in strategic planning efforts with the
8 Department of Commerce and Economic Opportunity to
9 identify needs and initiatives for communities and workers
10 economically impacted by the decline in fossil fuel
11 generation;
12 (5) evaluate individual units using the criteria above
13 and set appropriate annually declining caps for emission
14 reductions, which ultimately result in caps of zero
15 emissions from all fossil fuel-powered electric generating
16 units by January 1, 2030;
17 (6) include provisions to allow owners or operators of
18 fossil fuel-powered electric generating units to continue
19 operating while using their best efforts to resolve any
20 reliability requirements with regional grid operators and
21 cease operations as soon as practicable in situations
22 where achieving the emission reductions required by the
23 Agency's rulemaking proposal necessitates that a
24 particular unit cease operations and a regional grid
25 operator determines that operation of that unit is
26 required to continue to maintain transmission reliability.

HB3967- 170 -LRB102 14276 SPS 19628 b
1 The Agency's rulemaking proposal shall include mechanisms
2 designed to limit, to the extent possible, any such
3 disruption to the State's emission reduction program,
4 including an evaluation of when and how advanced notice of
5 intended unit closures should be given to regional grid
6 operators; and
7 (7) establish emissions caps for (i) individual fossil
8 fuel-powered electric generating units and (ii) the entire
9 electric sector. The emissions caps shall include all
10 emissions, including greenhouse gases and co-pollutants.
11 (A) Annual aggregate electric sector emissions
12 caps. The aggregate emissions cap shall apply to the
13 entire Illinois electric sector and include the sum of
14 emissions from all fossil fuel-powered electric
15 generating units. The Agency shall establish a
16 schedule through which the aggregate cap shall decline
17 annually. A baseline amount shall be calculated by
18 averaging the emissions from 2017, 2018, and 2019 of
19 plants operating as of the effective date of this
20 amendatory Act of the 102nd General Assembly. To
21 ensure consistent progress toward the goal of
22 eliminating all emissions from Illinois' electric
23 sector by 2030, the annual aggregate emissions cap
24 shall decrease each year by no less than 7% of the
25 baseline amount.
26 (B) Annual unit-specific emissions caps. Annual

HB3967- 171 -LRB102 14276 SPS 19628 b
1 emissions caps shall apply to each fossil fuel-powered
2 electric generating unit in the State and be
3 consistent with achieving the aggregate emissions cap.
4 Starting in 2023, the annual emissions cap for each
5 plant shall be no greater than the highest emissions
6 amount from any of the 3 previous years of operation.
7 If a plant first became operational less than 3 years
8 before being subject to a unit-specific emissions cap,
9 then the annual emissions cap for such a plant shall be
10 no greater than its previous year of operation; or if a
11 fossil fuel-powered electric generating unit has been
12 operational less than one year, then the Agency shall
13 set a cap that is consistent with achieving the
14 aggregate emissions cap and the goal of eliminating
15 all emissions from Illinois' electric sector by 2030.
16 (C) Annual report. Each year, the Agency shall
17 prepare and publish a report on the implementation,
18 review, and updating of the schedules regulating
19 annual emissions caps as described in this subsection.
20 This report shall include:
21 (i) an accounting of all greenhouse gas and
22 co-pollutant caps on, and actual emissions from,
23 individual plants demonstrating the Agency's
24 implementation of the requirements in this
25 subsection; and
26 (ii) an accounting of the aggregate declining

HB3967- 172 -LRB102 14276 SPS 19628 b
1 cap schedules demonstrating the adequacy of the
2 schedules to achieve net-zero emissions in the
3 electric sector by 2030, and any changes to the
4 schedules.
5 In addition to the information required under
6 items (i) and (ii), the 2025 report shall include a
7 review of the Agency's rules regulating annual
8 greenhouse gas pollution and co-pollutant caps in
9 light of projected emissions for the remaining years
10 until 2030 and demonstrate the adequacy of its rules
11 and policies to achieve net-zero emissions in the
12 electric sector by 2030. Should the Agency conclude
13 its current rules and policies are insufficient to
14 eliminate emissions from all fossil fuel-powered
15 electric generating units by January 1, 2030 and
16 comply with all other requirements in this Section, it
17 shall initiate a rulemaking no later than 180 days
18 from reaching this conclusion amending its rules to do
19 so.
20before September 30, 2004, but not before September 30, 2003,
21issue to the House and Senate Committees on Environment and
22Energy findings that address the potential need for the
23control or reduction of emissions from fossil fuel-fired
24electric generating plants, including the following
25provisions:
26 (1) reduction of nitrogen oxide emissions, as

HB3967- 173 -LRB102 14276 SPS 19628 b
1 appropriate, with consideration of maximum annual
2 emissions rate limits or establishment of an emissions
3 trading program and with consideration of the developments
4 in federal law and regulations that may affect any State
5 action, prior to making final decisions in Illinois;
6 (2) reduction of sulfur dioxide emissions, as
7 appropriate, with consideration of maximum annual
8 emissions rate limits or establishment of an emissions
9 trading program and with consideration of the developments
10 in federal law and regulations that may affect any State
11 action, prior to making final decisions in Illinois;
12 (3) incentives to promote renewable sources of energy
13 consistent with item (8) of subsection (a) of this
14 Section;
15 (4) reduction of mercury as appropriate, consideration
16 of the availability of control technology, industry
17 practice requirements, or incentive programs, or some
18 combination of these approaches that are sufficient to
19 prevent unacceptable local impacts from individual
20 facilities and with consideration of the developments in
21 federal law and regulations that may affect any state
22 action, prior to making final decisions in Illinois; and
23 (5) establishment of a banking system, consistent with
24 the United States Department of Energy's voluntary
25 reporting system, for certifying credits for voluntary
26 offsets of emissions of greenhouse gases, as identified by

HB3967- 174 -LRB102 14276 SPS 19628 b
1 the United States Environmental Protection Agency, or
2 other voluntary reductions of greenhouse gases. Such
3 reduction efforts may include, but are not limited to,
4 carbon sequestration, technology-based control measures,
5 energy efficiency measures, and the use of renewable
6 energy sources.
7 The Agency shall consider the impact on the public health,
8considering also energy supply, reliability and costs, the
9role of renewable forms of energy, and developments in federal
10law and regulations that may affect any state actions, prior
11to making final decisions in Illinois.
12 (c) Nothing in this Section is intended to or should be
13interpreted in a manner to limit or restrict the authority of
14the Illinois Environmental Protection Agency to propose, or
15the Illinois Pollution Control Board to adopt, any regulations
16applicable or that may become applicable to the facilities
17covered by this Section that are required by federal law and
18other Illinois laws.
19 (d) The Agency may file proposed rules with the Board to
20effectuate the goals set forth in subsection (b) its findings
21provided to the Senate Committee on Environment and Energy and
22the House Committee on Environment and Energy in accordance
23with subsection (b) of this Section. Any such proposal shall
24not be submitted sooner than 90 days after the issuance of the
25findings provided for in subsection (b) of this Section. The
26Board shall take action on any such proposal within one year of

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

HB3967- 176 -LRB102 14276 SPS 19628 b
1 court may, if a temporary restraining order or preliminary
2 injunction is sought, require the filing of a bond or
3 equivalent security in accordance with the Illinois Code
4 of Civil Procedure.
5 (3) No existing civil or criminal remedy shall be
6 excluded or impaired by this Section. This Section shall
7 apply only to those electrical generating units that are
8 subject to the provisions of Subpart W of Part 217 of Title
9 35 of the Illinois Administrative Code, as promulgated by
10 the Illinois Pollution Control Board on December 21, 2000.
11(Source: P.A. 92-12, eff. 7-1-01; 92-279, eff. 8-7-01.)
12 (415 ILCS 5/9.18 new)
13 Sec. 9.18. Energy community reinvestment fee.
14 (a) As used in this Section:
15 "Carbon dioxide equivalent" means a unit of measure
16denoting the amount of emissions from a greenhouse gas,
17expressed as the amount of carbon dioxide by weight that
18produces the same global warming impact.
19 "Fossil fuel generating plant" means an electric
20generating unit or a co-generating unit that produces
21electricity using fossil fuels.
22 "Payment period" means the three-month period of time
23during which emissions are measured for the purpose of
24quarterly fee calculation.
25 (b) The General Assembly finds and declares that:

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

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1 (6) this support should be paid for by the owners and
2 operators of fossil fuel-fired electric generating plants,
3 the operation of which caused harm to the surrounding
4 communities.
5 (c) Calculation of the Energy Community Reinvestment Fee.
6The Agency shall establish procedures for the collection of
7energy community reinvestment fees. Energy community
8reinvestment fees shall be paid at least quarterly (once every
93 months) by owners of all fossil fuel generating plants in
10Illinois, based on the share of each plant's contribution to
11the total amount of air pollution emitted by all fossil fuel
12generating plants in that payment period, as determined by the
13Agency and described in this subsection (c).
14 (1) Pollution Calculation. The energy community
15 reinvestment fee shall be calculated to reflect the
16 pollution burden from fossil fuel generating plants, based
17 on the total emissions of greenhouse gases. The fee shall
18 be calculated based solely on emissions of carbon dioxide,
19 methane, and nitrous oxide measured in carbon dioxide
20 equivalent tons. The exclusive use of carbon dioxide,
21 methane, and nitrous oxide in the calculation of the fee
22 is designed to reflect the overall pollution impact from
23 each fossil fuel generating plant by using these
24 pollutants as a proximate measurement of overall
25 emissions.
26 (2) Fee Calculation. The Agency shall calculate the

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1 fee owed by each fossil fuel generating plant owner for
2 each payment period by dividing (A) the total emissions of
3 carbon dioxide equivalents in tons by each plant as
4 described under paragraph (1) of this subsection (c) by
5 (B) the total emissions of carbon dioxide equivalents in
6 tons of all fossil fuel generating plants subject to the
7 energy community reinvestment fee, and multiplying that
8 figure by (C) the portion of the annual revenue
9 requirements, established in subsection (d) of Section
10 5-70 of the Energy Community Reinvestment Act, for that
11 payment period.
12 (3) Right to Fee Reduction. The owner of each plant
13 liable to pay the energy community reinvestment fee shall
14 have the right to reduce its liability based on
15 electricity production as described in this paragraph (3).
16 If requested, the total amount owed each payment period
17 for any plant shall be no greater than the total amount of
18 kilowatt hours of electricity produced by the plant during
19 the payment period multiplied by one cent per kilowatt
20 hour, adjusted for inflation from the year this Act takes
21 effect. Upon request by a plant owner the Agency shall
22 adjust the total amount owed for each payment period by
23 the amount necessary to reflect a maximum cost calculated
24 based on electricity production.
25 (4) Notification by the Agency. The first payment
26 period shall begin June 1, 2021. No later than September

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1 1, 2021, and every 3 months thereafter on the first of the
2 month, the Agency shall notify each fossil fuel generating
3 plant owner of the fee calculated pursuant to paragraph
4 (2) of this subsection (c) for the quarterly period just
5 concluded.
6 (5) Fee Collection. Plant owners shall remit payment
7 of their fee to the Agency within 30 days after the close
8 of each payment period, as established by the Agency.
9 Funds collected from the energy community reinvestment fee
10 shall be deposited into the Energy Community Reinvestment
11 Fund.
12 (d) Clean Energy Empowerment Zone Task Force involvement.
13If the Agency receives notification from the Department of
14Commerce and Economic Opportunity that a plant owner has
15failed to engage productively in stakeholder meetings and with
16Clean Energy Empowerment Zone Task Forces, as described in the
17Energy Community Reinvestment Act, an enforcement action may
18be brought under Section 31 of this Act. In addition to any
19other relief that may be obtained as part of the enforcement
20action, the Agency may seek to recover the avoided engagement
21fees. The avoided engagement fees shall be calculated as
22double the amount that is owed by the plant owner under
23subsection (c) for the current payment period, and subsequent
24payment periods, until the Department of Commerce and Economic
25Opportunity sends notification to the Agency that the plant
26owner is in compliance with the stakeholder engagement

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1requirements of the Energy Community Reinvestment Act. Avoided
2engagement fees (which, for clarity, are in addition to fees
3collected under subsection (c)) shall be deposited into the
4Energy Community Reinvestment Fund to be directed solely to
5support the local community's own planning efforts and
6investments, and the Agency shall transmit a notification to
7the Department of Commerce and Economic Opportunity of the
8amount collected, and the plant owner responsible.
9 (e) If a plant owner subject to a fee under this Section
10fails to pay the fee within 90 days after its due date, or
11makes the fee payment from an account with insufficient funds
12to cover the amount of the fee payment, the Agency shall notify
13the plant owner of the failure to pay the fee. If the plant
14owner fails to pay the fee within 60 days after such
15notification, the Agency may, by written notice, immediately
16revoke the air pollution operating permit. Failure of the
17Agency to notify the plant owner of failure to pay a fee due
18under this Section, or the payment of the fee from an account
19with insufficient funds to cover the amount of the fee
20payment, does not excuse or alter the duty of the plant owner
21to comply with the provisions of this Section.
22 (f) No later than November 30 of each year, the Agency
23shall submit a report to the Department of Commerce and
24Economic Opportunity describing the amount of fees collected
25from each fossil fuel-powered electric generating unit, the
26status of any delinquencies, and the total amount expected to

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1be collected.
2 (g) Nothing in this Section shall be interpreted to mean
3that the sum owed by each fossil fuel generating plant due to
4the energy community reinvestment fee is equal to or greater
5than the financial valuation of the total harm created by air
6pollution from each plant.
7 (h) Enforcement.
8 (1) Any person may file with the Board a complaint,
9 following the procedures contained in subsection (d) of
10 Section 31 of this Act, against any person, the State of
11 Illinois, or any government official for failure to
12 perform any act or nondiscretionary duty under this
13 Section or for allegedly violating this Section, any rule
14 or regulation adopted under this Section, any permit or
15 term or condition of a permit related to this Section, or
16 any Board order issued pursuant to this Section. Any
17 person shall have standing in an action under this Section
18 before the Board. Any person may intervene as a party as a
19 matter of right in any legal action concerning this
20 Section, whichever the forum, if he or she is or may be
21 adversely affected by any failure to perform any act or
22 nondiscretionary duty under this Section or any alleged
23 violation of this Section, any rule or regulation adopted
24 under this Section, any permit or term or condition of a
25 permit, or any Board order, by any person, the State of
26 Illinois, or any government official. Any person with

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1 standing to commence an action pursuant to subsection (e)
2 of Section 9.10 shall have standing to pursue enforcement
3 under this Section.
4 (2) In an action brought pursuant to this Section, any
5 person may request, and the Board or court may grant,
6 injunctive relief, damages (including reasonable attorney
7 and expert witness fees), and any other remedy available
8 pursuant to Sections 33 or 42 of this Act. The Board or
9 court may, if a temporary restraining order or preliminary
10 injunction is sought, require the filing of a bond or
11 equivalent security in accordance with the Illinois Code
12 of Civil Procedure.
13 (3) No existing civil or criminal remedy shall be
14 excluded or impaired by this Section.
15 (415 ILCS 5/9.15 rep.)
16 Section 90-35. The Environmental Protection Act is amended
17by repealing Section 9.15.
18 Section 90-40. The Illinois Nuclear Facility Safety Act is
19amended by adding Section 10 as follows:
20 (420 ILCS 10/10 new)
21 Sec. 10. Local government nuclear impact fees.
22 (a) As used in this Section:
23 "Local taxing body" means any unit of government that

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1assesses and collects property taxes.
2 "Qualifying Nuclear Facility" means a facility playing or
3having played a direct role in the operation of commercial
4nuclear power reactors for the generation of electricity;
5including facilities used to process radioactive materials for
6nuclear fuel fabrication, nuclear power reactors, high-level
7and low-level radioactive waste treatment sites, and storage
8and disposal locations.
9 "Qualifying Nuclear Operator" means any entity that
10operates or has in the past 50 years operated a Qualifying
11Nuclear Facility.
12 (b) Notwithstanding any other provision of law to the
13contrary, any local taxing body may establish and collect an
14annual Nuclear Impact Fee from Qualifying Nuclear Facility
15within the boundaries of that local taxing body.
16 (c) The Nuclear Impact Fee shall be charged to the
17Qualifying Nuclear Operator.
18 (d) The Nuclear Impact Fee may only be applied
19prospectively on or after the effective date of this
20amendatory Act of the 102nd General Assembly, and may not be
21applied retroactively to a date before which this amendatory
22Act is passed.
23 (e) The Nuclear Impact Fee permission granted to local
24taxing bodies under these rules shall expire separately for
25each individual local taxing body. That date of expiration of
26the Nuclear Impact Fee permission for each local taxing body

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1shall be either exactly 30 years after the effective date of
2this amendatory Act of the 102nd General Assembly, or 10 years
3following the permanent shutdown of the Qualifying Nuclear
4Facility from which the local taxing body collected property
5taxes, whichever date is later.
6 (f) In any calendar year, a local taxing body may not
7impose a Nuclear Impact Fee that exceeds 25% of the average
8annual amount of property taxes, or payments in lieu of taxes,
9paid to that local taxing body by the Qualifying Nuclear
10Facility over the most recent 5-year period that the
11Qualifying Nuclear Facility has been operational.
12 (g) Any failure by the Qualifying Nuclear Operator to pay
13a Nuclear Impact Fee within 180 days after the fee payment
14deadline shall be deemed a failure to comply, and shall
15automatically require the Qualifying Nuclear Operator to pay
16the Local Entity double the otherwise-allowable property
17taxes, up to 50% of the average annual amount of property taxes
18paid over the most recent 5-year period that the Qualifying
19Nuclear Facility was operational.
20 (h) To establish a Nuclear Impact Fee, the local taxing
21body shall adopt a resolution or ordinance describing the
22public need for economic transition, the annual amount of the
23fee, the Qualifying Nuclear Facility, the Qualifying Nuclear
24Operator to be assessed, and a description of projected
25expenses for the fee for the period the fee is in effect. The
26local taxing body shall conduct a public hearing before

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1adopting a resolution or ordinance imposing a Nuclear Impact
2Fee permitted under this Section. The hearing shall be held
3within the boundaries of the local taxing body. Public notice
4of the time, place, and purpose of the hearing shall be given
5at least 10 business days before the date of the hearing.
6 (i) A local taxing body shall include in its resolution or
7ordinance the method for collection of payment of a Nuclear
8Impact Fee. A county which has adopted a resolution or
9ordinance imposing a Nuclear Impact Fee may collect such Fees
10in the regular property tax bills of the county. The county
11collector of the county in which a local taxing body has
12adopted a resolution or ordinance imposing a Nuclear Impact
13Fee may bill and collect such Fees with the regular property
14tax bills of the county if requested by a local taxing body
15within its jurisdiction.
16 (j) The revenue collected through the Nuclear Impact Fee
17by a local taxing body shall only be used for the purposes of
18supporting the "economic transition" of local communities that
19have experienced the closure of a Qualifying Nuclear Facility
20or will experience a Qualifying Nuclear Facility in the
21future. "Economic transition" uses may include tax base
22replacement, workforce development, public school funding,
23essential public service, or sustainable infrastructure
24projects.
25 (k) The revenue collected under this Section shall not be
26used either directly or indirectly to aid, subsidize, enact,

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1support, or otherwise enable investment in any electricity
2generation infrastructure that processes or can process fossil
3or nuclear fuels.
4 (l) No later than November 30 of each calendar year, each
5local taxing body collecting a Nuclear Impact Fee pursuant to
6this Section shall remit to the Department of Revenue for
7deposit in the Energy Community Reinvestment Fund 20% of the
8annual revenue collection from any Nuclear Impact Fees in
9order to help fund state programs that support economic
10transition and workforce development, showing such information
11as the Department of Revenue may reasonably require.
12 (m) No later than November 30 of each calendar year, each
13local taxing body collecting a Nuclear Impact Fee pursuant to
14this Section shall submit to the Department of Commerce and
15Economic Opportunity and the Agency a report detailing the
16total amount of funds collected from any Nuclear Impact Fees,
17the planned expenditure of the funds, the coordination of
18expenditure with any Department economic transition activities
19and investments, copies of any adoption of or amendments to
20resolutions or ordinances impacting the assessment of Nuclear
21Impact Fees, and a certification of the remittance of the
22State portion of the funds collected to the Department of
23Revenue.
24 (n) The Department of Commerce and Economic Opportunity
25may establish such rules as it deems necessary to implement
26this Section.

HB3967- 188 -LRB102 14276 SPS 19628 b
1 Section 99. Effective date. This Act takes effect upon
2becoming law.

HB3967- 189 -LRB102 14276 SPS 19628 b
1 INDEX
2 Statutes amended in order of appearance