Bill Text: IL HB5479 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Grocery Store New Construction Tax Credit Act. Creates a tax credit for taxpayers who undertake a project to construct a new grocery store in the State, subject to certain capital investment and employment requirements. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2022-01-31 - Referred to Rules Committee [HB5479 Detail]

Download: Illinois-2021-HB5479-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5479 Introduced , by Rep. David A. Welter SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 5/232 new
Creates the Grocery Store New Construction Tax Credit Act. Creates a tax credit for taxpayers who undertake a project to construct a new grocery store in the State, subject to certain capital investment and employment requirements. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Grocery Store New Construction Tax Credit Act.
Section 5. Definitions. As used in this Act:
"Credit" means the amount agreed to between the Department
and applicant under this Act, but not to exceed the lesser of:
(1) the sum of (i) 50% of the incremental income tax
attributable to new employees at the applicant's project and
(ii) 10% of the training costs of new employees; or (2) 100% of
the incremental income tax attributable to new employees at
the applicant's project. However, if the project is located in
an underserved area, then the amount of the credit may not
exceed the lesser of: (1) the sum of (i) 75% of the incremental
income tax attributable to new employees at the applicant's
project and (ii) 10% of the training costs of new employees; or
(2) 100% of the incremental income tax attributable to new
employees at the applicant's project.
"Department" means the Department of Commerce and Economic
Opportunity.
"Full-time employee" means an individual who is employed
for consideration for at least 35 hours each week or who

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renders any other standard of service generally accepted by
industry custom or practice as full-time employment. An
individual for whom a W-2 is issued by a Professional Employer
Organization (PEO) is a full-time employee if employed in the
service of the applicant for consideration for at least 35
hours each week or who renders any other standard of service
generally accepted by industry custom or practice as full-time
employment to the applicant.
"Grocery store" means a retail establishment located in
this State that primarily sells food and beverages for
consumption off the premises of the establishment.
"Incremental income tax" means the total amount withheld
during the taxable year from the compensation of new employees
arising from employment at a project that is the subject of an
Agreement.
"New employee" means:
(1) a full-time employee first employed by a taxpayer
in the project that is the subject of an agreement who is
hired after the taxpayer enters into the tax credit
agreement.
(2) The term "new employee" does not include:
(A) an employee of the taxpayer who performs a job
that was previously performed by another employee, if
that job existed for at least 6 months before hiring
the employee;
(B) an employee of the taxpayer who was previously

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employed in Illinois by a related member of the
taxpayer and whose employment was shifted to the
taxpayer after the taxpayer entered into the tax
credit agreement; or
(C) a child, grandchild, parent, or spouse, other
than a spouse who is legally separated from the
individual, of any individual who has a direct or an
indirect ownership interest of at least 5% in the
profits, capital, or value of the taxpayer.
An employee may be considered a new employee under the
agreement if the employee performs a job that was previously
performed by an employee who was:
(1) treated under the agreement as a new employee; and
(2) promoted by the taxpayer to another job.
"Project" means the construction of a new grocery store in
the State.
"Related member" has the meaning given to that term in
Section 5-5 of the Economic Development for a Growing Economy
Tax Credit Act.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census;
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education;

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(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the U.S. Department
of Labor, for a period of at least 2 consecutive calendar
years preceding the date of the application.
Section 10. Tax credit awards.
(a) Subject to the conditions set forth in this Act, a
taxpayer is entitled to a credit against taxes imposed
pursuant to subsections (a), (b), and (p) of Section 201 of the
Illinois Income Tax Act for taxable years beginning on or
after January 1, 2023 if the taxpayer is awarded a credit by
the Department under this Act for that taxable year.
(b) The Department shall make credit awards under this Act
to encourage job creation and to facilitate the construction
of new grocery stores in the State.
(c) A person that proposes a project to construct a new
grocery store in Illinois must enter into an agreement with
the Department for the credit under this Act.
(d) The credit shall be claimed for the taxable years
specified in the agreement.
(e) The credit shall not exceed the incremental income tax

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attributable to the project that is the subject of the
agreement.
(f) Nothing in this Act shall prohibit a tax credit award
to an applicant that uses a PEO if all other award criteria are
satisfied.
Section 15. Application for a project to create and retain
new jobs.
(a) Any taxpayer proposing a project located or planned to
be located in Illinois may request consideration for
designation of its project, by formal written letter of
request or by formal application to the Department, in which
the applicant states its intent to make at least a specified
level of investment and intends to hire or retain a specified
number of full-time employees at a designated location in
Illinois. As circumstances require, the Department may require
a formal application from an applicant and a formal letter of
request for assistance.
(b) In order to qualify for credits under this Act, an
applicant's project must conform to each of the following:
(1) If the applicant has more than 100 employees, the
applicant's project must involve an investment of at least
$2,500,000 in capital improvements to be placed in service
within the State as a direct result of the project. If the
applicant has 100 or fewer employees, then there is no
capital investment requirement.

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(2) If the applicant has more than 100 employees, the
applicant's project must employ a number of new employees
in the State equal to the lesser of: (A) 10% of the number
of full-time employees employed by the applicant
world-wide on the date the application is filed with the
Department; or (B) 50 new employees. If the applicant has
100 or fewer employees, the applicant's project must
employ a number of new employees in the State equal to the
lesser of: (A) 5% of the number of full-time employees
employed by the applicant world-wide on the date the
application is filed with the Department; or (B) 50 new
employees.
(c) The Department shall determine which projects will
benefit the State. In making its recommendation that an
Applicant's application for Credit should or should not be
accepted, which shall occur within a reasonable time frame as
determined by the nature of the application.
(d) After receipt of an application, the Department may
enter into an agreement with the applicant if the application
is accepted.
Section 20. Amount and duration of the credit.
(a) The Department shall determine the amount and duration
of the credit awarded under this Act. The duration of the
credit may not exceed 10 taxable years. The credit may be
stated as a percentage of the incremental income tax

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attributable to the applicant's project and may include a
fixed dollar limitation.
(b) Notwithstanding subsection (a), and except as the
credit may be applied in a carryover year, the credit may be
applied against the State income tax liability in more than 10
taxable years but not in more than 15 taxable years for an
eligible business that (i) qualifies under this Act and the
Corporate Headquarters Relocation Act and has in fact
undertaken a qualifying project within the time frame
specified by the Department of Commerce and Economic
Opportunity under that Act, and (ii) applies against its State
income tax liability, during the entire 15-year period, no
more than 60% of the maximum credit per year that would
otherwise be available under this Act.
(c) Nothing in this Section shall prevent the Department,
in consultation with the Department of Revenue, from adopting
rules to extend the sunset of any earned, existing, and unused
tax credit or credits.
(d) The credit under this Act is exempt from the
provisions of Section 250 of the Illinois Income Tax Act.
Section 25. Relocation of jobs in Illinois. A taxpayer is
not entitled to claim the credit provided by this Act with
respect to any jobs that the taxpayer relocates from one site
in Illinois to another site in Illinois. A taxpayer with
respect to a qualifying project certified under the Corporate

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Headquarters Relocation Act, however, is not subject to the
requirements of this Section but is nevertheless considered an
applicant for purposes of this Act. Moreover, any full-time
employee of an eligible business relocated to Illinois in
connection with that qualifying project is deemed to be a new
employee for purposes of this Act. Determinations under this
Section shall be made by the Department.
Section 30. Powers of the Department. In addition to those
powers granted under the Civil Administrative Code of
Illinois, the Department is granted and shall have all the
powers necessary or convenient to carry out and effectuate the
purposes and provisions of this Act, including, but not
limited to, the power to adopt rules and the powers set forth
in Section 5-10 of the Economic Development for a Growing
Economy Tax Credit Act, provided that those powers are not
inconsistent with this Act.
Section 35. Sexual harassment policy report. Each taxpayer
claiming a credit under this Act shall, no later than April 15
of each taxable year for which the taxpayer claims a credit
under this Act, submit to the Department of Commerce and
Economic Opportunity a report detailing that taxpayer's sexual
harassment policy, which contains, at a minimum, the following
information: (i) the illegality of sexual harassment; (ii) the
definition of sexual harassment under State law; (iii) a

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description of sexual harassment, utilizing examples; (iv) the
vendor's internal complaint process, including penalties; (v)
the legal recourse, and investigative and complaint processes
available through the Department; (vi) directions on how to
contact the Department; and (vii) protection against
retaliation as provided by Section 6-101 of the Illinois Human
Rights Act. A copy of the policy shall be provided to the
Department upon request. The reports required under this
Section shall be submitted in a form and manner determined by
the Department of Commerce and Economic Opportunity.
Section 50. The Illinois Income Tax Act is amended by
adding Section 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Grocery Store New Construction Tax Credit Act. A
taxpayer who is awarded a credit under the Grocery Store New
Construction Tax Credit Act is entitled to a credit against
the taxes imposed by subsections (a), (b), and (p) of Section
201 as provided in that Act.
Section 99. Effective date. This Act takes effect upon
becoming law.