Bill Text: IL SB1747 | 2021-2022 | 102nd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the introduced bill with changes. Provides that certain tax incentives created in the introduced bill take effect on January 1, 2022 (in the introduced bill, January 1, 2021). Removes certain obsolete cross-references. Makes formatting changes concerning tax credits and adds conforming changes to the Illinois Income Tax Act. With respect to the investment credit created in the introduced bill, requires the Department of Commerce and Economic Opportunity to provide a tax credit certificate indicating the credit amount and the year in which the property is placed in service. Amends the Illinois Enterprise Zone Act. Provides for the decertification of Enterprise Zones if 80% or more of the businesses receiving tax incentives within that Enterprise Zone fail to submit certain required information. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2021-06-02 - Rule 19(a) / Re-referred to Rules Committee [SB1747 Detail]

Download: Illinois-2021-SB1747-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1747

Introduced 2/26/2021, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 100/5-45 from Ch. 127, par. 1005-45
30 ILCS 105/5.935 new
30 ILCS 805/8.45 new
35 ILCS 5/201
35 ILCS 120/5k-1 new
65 ILCS 5/8-11-2 from Ch. 24, par. 8-11-2
220 ILCS 5/9-221 from Ch. 111 2/3, par. 9-221
220 ILCS 5/9-222 from Ch. 111 2/3, par. 9-222
220 ILCS 5/9-222.1b new

Creates the Illinois Energy Transition Zone Act. Provides for the certification by the Department of Commerce and Economic Opportunity of municipal ordinances designating an area as an Energy Transition Zone. Provides that green energy enterprises located in Energy Transition Zones shall be eligible to apply for certain tax incentives. Provides that a green energy enterprise is a company that is engaged in the production of solar energy, wind energy, water energy, geothermal energy, bioenergy, or hydrogen fuel and cells. Contains provisions concerning qualifications and applications. Creates the Energy Transition Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall make income tax credit awards under the Act to foster job creation and the development of green energy in Energy Transition Zones. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, and the Public Utilities Act to make conforming changes concerning tax incentives. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
Article 1. Illinois Energy Transition Zone Act
5 Section 1-1. Short title. This Article may be cited as the
6Illinois Energy Transition Zone Act. References in this
7Article to "this Act" mean this Article.
8 Section 1-5. Findings. The General Assembly finds and
9declares that the health, safety, and welfare of the people of
10this State are dependent upon a healthy economy and vibrant
11communities; that the closure of coal energy plants, coal
12mines, and nuclear energy plants across the state are
13detrimental to maintaining a healthy economy and vibrant
14communities; that the expansion of green energy creates
15significant job growth and contributes significantly to the
16health, safety, and welfare of the people of this State; that
17the continual encouragement, development, growth and expansion
18of green energy within the State requires a cooperative and
19continuous partnership between government and the green energy
20sector; and that there are certain depressed areas in this
21State that have lost jobs due to the closure of coal energy
22plants, coal mines, and nuclear energy plants and need the

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1particular attention of government, labor and the citizens of
2Illinois to help attract green energy investment into these
3areas and directly aid the local community and its residents.
4Therefore, it is declared to be the purpose of this Act to
5explore ways of stimulating the growth of green energy in the
6State and to foster job growth in areas depressed by the
7closure of coal energy plants, coal mines and nuclear energy
8plants.
9 Section 1-10. Definitions. As used in this Act, unless the
10context otherwise requires:
11 "Agency" means a "State agency", as defined in Section 1-7
12of the Illinois State Auditing Act.
13 "Board" means the Energy Transition Zone Board created in
14Section 1-45.
15 "Department" means the Department of Commerce and Economic
16Opportunity.
17 "Depressed area" means an area in which pervasive poverty,
18unemployment, and economic distress exist.
19 "Energy Transition Zone" means an area of the State
20certified by the Department as an Energy Transition Zone
21pursuant to this Act.
22 "Full-time equivalent job" means a job in which the new
23employee works for the recipient or for a corporation under
24contract to the recipient at a rate of at least 35 hours per
25week for a wage that meets or exceeds the prevailing wage for

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1the locality in which the work is performed, as determined
2under Section 4 of the Prevailing Wage Act. A recipient who
3employs labor or services at a specific site or facility under
4contract with another may declare one full-time, permanent job
5for every 1,820 man hours worked per year under that contract.
6Vacations, paid holidays, and sick time are included in this
7computation. Overtime is not considered a part of regular
8hours.
9 "Full-time retained job" means any employee defined as
10having a full-time or full-time equivalent job preserved at a
11specific facility or site, the continuance of which is
12threatened by a specific and demonstrable threat, which shall
13be specified in the application for development assistance. A
14recipient who employs labor or services at a specific site or
15facility under contract with another may declare one retained
16employee per year for every 1,750 man hours worked per year
17under that contract, even if different individuals perform
18on-site labor or services.
19 "Green energy enterprise" means a company that is engaged
20in the production of solar energy, wind energy, water energy,
21geothermal energy, bioenergy, or hydrogen fuel and cells.
22 "Green energy project" means a project conducted by a
23green energy enterprise for the purpose of generating solar
24energy, wind energy, water energy, geothermal energy,
25bioenergy, or hydrogen fuel and cells.
26 "Local labor market area" means an economically integrated

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1area within which individuals can reside and find employment
2within a reasonable distance or can readily change jobs
3without changing their place of residence.
4 "Rule" has the meaning provided in Section 1-70 of the
5Illinois Administrative Procedure Act.
6 Section 1-15. Qualifications for Energy Transition Zones.
7An area is qualified to become an Energy Transition Zone
8which:
9 (1) is a contiguous area, provided that a Zone area
10 may exclude wholly surrounded territory within its
11 boundaries;
12 (2) comprises a minimum of one-half square mile and
13 not more than 12 square miles, exclusive of lakes and
14 waterways;
15 (3) is entirely within a single municipality;
16 (4) satisfies any additional criteria established by
17 the Department consistent with the purposes of this Act;
18 and
19 (5) meets one or more of the following:
20 (A) the area contains a coal energy plant that was
21 retired from service within 10 years of application
22 for designation;
23 (B) the area contains a coal mine that was closed
24 within 10 years of application for designation;
25 (C) the area contains a nuclear energy plant that

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1 was retired from service within 10 years of
2 application for designation; or
3 (D) the area contains a nuclear plant that was
4 decommissioned but continued storing nuclear waste
5 prior to the effective date of this Act.
6 Section 1-20. Entities eligible to receive tax benefits.
7Green energy enterprises are eligible to receive certain tax
8benefits under this Act for green energy projects conducted
9within an Energy Transition Zone.
10 Section 1-25. Incentives for green energy enterprises
11located within an Energy Transition Zone.
12 (a) Green energy enterprises located in Energy Transition
13Zones are eligible to apply for a State income tax credit under
14the Energy Transition Zone Tax Credit Act.
15 (b) Green energy enterprises located in Energy Transition
16Zones will be eligible to receive an investment credit subject
17to the requirements of subsection (f-1) of Section 201 of the
18Illinois Income Tax Act.
19 (c) Green energy enterprises are eligible to purchase
20building materials exempt from use and occupation taxes to be
21incorporated into their green energy projects within the
22Energy Transition Zone when purchased from a retailer within
23the Energy Transition Zone pursuant to Section 5k-1 of the
24Retailers' Occupation Tax Act.

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1 (d) Green energy enterprises located in an Energy
2Transition Zone that meet the qualifications of Section
39-222.1B of the Illinois Public Utilities Act are exempt, in
4part or whole, from State and local taxes on gas and
5electricity.
6 Section 1-30. Initiation of Energy Transition Zones by
7municipality or county.
8 (a) No area may be designated as an Energy Transition Zone
9except pursuant to an initiating ordinance adopted in
10accordance with this Section.
11 (b) A municipality may by ordinance designate an area
12within its jurisdiction as an Energy Transition Zone, subject
13to the certification of the Department in accordance with this
14Act, if:
15 (1) the area is qualified in accordance with Section
16 1-15; and
17 (2) the municipality has conducted at least one public
18 hearing within the proposed Zone area considering all of
19 the following questions: whether to create the Zone; what
20 local plans, tax incentives and other programs should be
21 established in connection with the Zone; and what the
22 boundaries of the Zone should be; public notice of the
23 hearing shall be published in at least one newspaper of
24 general circulation within the Zone area, not more than 20
25 days nor less than 5 days before the hearing.

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1 (c) An ordinance designating an area as an Energy
2Transition Zone shall set forth:
3 (1) a precise description of the area comprising the
4 Zone, either in the form of a legal description or by
5 reference to roadways, lakes and waterways, and township,
6 county boundaries;
7 (2) a finding that the Zone area meets the
8 qualifications of Section 1-15;
9 (3) provisions for any tax incentives or reimbursement
10 for taxes, which pursuant to State and federal law apply
11 to green energy enterprises within the Zone at the
12 election of the designating municipality, and which are
13 not applicable throughout the municipality;
14 (4) a designation of the area as an Energy Transition
15 Zone, subject to the approval of the Department in
16 accordance with this Act; and
17 (5) the duration or term of the Energy Transition
18 Zone.
19 (d) This Section does not prohibit a municipality from
20extending additional tax incentives or reimbursement for
21business enterprises in Energy Transition Zones or throughout
22their territory by separate ordinance.
23 Section 1-35. Application to Department. A municipality
24that has adopted an ordinance designating an area as an Energy
25Transition Zone shall make written application to the

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1Department to have such proposed Energy Transition Zone
2certified by the Department as an Energy Transition Zone. The
3application shall include:
4 (1) a certified copy of the ordinance designating the
5 proposed Zone;
6 (2) a map of the proposed Energy Transition Zone,
7 showing existing streets and highways;
8 (3) an analysis, and any appropriate supporting
9 documents and statistics, demonstrating that the proposed
10 Zone area is qualified in accordance with Section 1-15;
11 (4) a statement detailing any tax, grant, and other
12 financial incentives or benefits, and any programs, to be
13 provided by the municipality or county to green energy
14 enterprises within the Zone, other than those provided in
15 the designating ordinance, which are not to be provided
16 throughout the municipality or county;
17 (5) a statement setting forth the economic development
18 and planning objectives for the Zone;
19 (6) an estimate of the economic impact of the Zone,
20 considering all of the tax incentives, financial benefits
21 and programs contemplated, upon the revenues of the
22 municipality or county;
23 (7) a transcript of all public hearings on the Zone;
24 and
25 (8) such additional information as the Department may
26 by rule require.

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1 Section 1-40. Department review of Energy Transition Zone
2applications.
3 (a) All applications that are to be considered and acted
4upon by the Department during a calendar year must be received
5by the Department no later than December 31 of the preceding
6calendar year.
7 Any application received after December 31 of any calendar
8year shall be held by the Department for consideration and
9action during the following calendar year. Each Energy
10Transition Zone application shall include a specific
11definition of the applicant's local labor market area.
12 (a-5) The Department shall, no later than July 31, 2021,
13develop an application process for an Energy Transition Zone
14application. The Department has emergency rulemaking authority
15for the purpose of application development only until 12
16months after the effective date of this Act under subsection
17(ee) of Section 5-45 of the Illinois Administrative Procedure
18Act.
19 (b) Upon receipt of an application from a municipality,
20the Department shall review the application to determine
21whether the designated area qualifies as an Energy Transition
22Zone under Section 1-15 of this Act.
23 (c) No later than June 30, the Department shall notify all
24applicant municipalities of the Department's determination of
25the qualification of their respective designated energy

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1transition Zone areas, along with supporting documentation of
2the basis for the Department's decision.
3 (d) If any such designated area is found to be qualified to
4be an Energy Transition Zone by the Department under
5subsection (c) of this Section, the Department shall, no later
6than July 15, send a letter of notification to each member of
7the General Assembly whose legislative district or
8representative district contains all or part of the designated
9area and publish a notice in at least one newspaper of general
10circulation within the proposed Zone area to notify the
11general public of the application and their opportunity to
12comment. Such notice shall include a description of the area
13and a brief summary of the application and shall indicate
14locations where the applicant has provided copies of the
15application for public inspection. The notice shall also
16indicate appropriate procedures for the filing of written
17comments from Zone residents, business, civic and other
18organizations and property owners to the Department.
19 Section 1-45. Energy Transition Zone Board.
20 (a) An Energy Transition Zone Board is hereby created
21within the Department.
22 (b) The Board shall consist of the following 5 members:
23 (1) the Director of Commerce and Economic Opportunity,
24 or his or her designee, who shall serve as chairperson;
25 (2) the Director of Revenue, or his or her designee;

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1 and
2 (3) 3 members appointed by the Governor, with the
3 advice and consent of the Senate.
4 Board members shall serve without compensation but may be
5reimbursed for necessary expenses incurred in the performance
6of their duties from funds appropriated for that purpose.
7 (c) Each member appointed under paragraph (3) of
8subsection (b) shall have at least 5 years of experience in
9business, economic development, or site location.
10 (d) Of the initial members appointed under paragraph (3)
11of subsection (b): one member shall serve for a term of 2
12years; one member shall serve for a term of 3 years; and one
13member shall serve for a term of 4 years. Thereafter, all
14members appointed under paragraph (3) of subsection (b) shall
15serve for terms of 4 years. Members appointed under paragraph
16(3) of subsection (b) may be reappointed. The Governor may
17remove a member appointed under paragraph (3) of subsection
18(b) for incompetence, neglect of duty, or malfeasance in
19office.
20 (e) By September 30, 2021, and September 30 of each year
21thereafter, all applications filed by December 31 of the
22preceding calendar year and deemed qualified by the Department
23shall be approved or denied by the Board. If such application
24is not approved by September 30, the application shall be
25considered denied. If an application is denied, the Board
26shall inform the applicant of the specific reasons for the

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1denial.
2 (f) A majority of the Board shall determine whether an
3application is approved or denied.
4 Section 1-50. Certification of Energy Transition Zones;
5effective date.
6 (a) Certification of Board-approved designated Energy
7Transition Zones shall be made by the Department by
8certification of the designating ordinance. The Department
9shall promptly issue a certificate for each Energy Transition
10Zone upon approval by the Board. The certificate shall be
11signed by the Director of the Department, shall make specific
12reference to the designating ordinance, which shall be
13attached thereto, and shall be filed in the office of the
14Secretary of State. A certified copy of the Energy Transition
15Zone Certificate, or a duplicate original thereof, shall be
16recorded in the office of recorder of deeds of the county in
17which the Energy Transition Zone lies.
18 (b) An Energy Transition Zone shall be effective on the
19date of the Department's certification. The Department shall
20transmit a copy of the certification to the Department of
21Revenue, and to the designating municipality.
22 (c) Upon certification of an Energy Transition Zone, the
23terms and provisions of the designating ordinance shall be in
24effect, and may not be amended or repealed except in
25accordance with Section 1-55.

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1 (d) Energy Transition Zone designation will last for 13
2years from the effective date of such designation and shall be
3subject to review by the Board after 13 years for an additional
410-year designation beginning on the expiration date of the
5Energy Transition Zone. During the review process, the Board
6shall consider the costs incurred by the State and units of
7local government as a result of tax benefits received by the
8Energy Transition Zone. Energy Transition Zones shall
9terminate at midnight of December 31 of the final calendar
10year of the certified term, except as provided in Section
111-55.
12 (e) Each Energy Transition Zone that reapplies for
13certification but does not receive a new certification shall
14expire on its scheduled termination date.
15 Section 1-55. Amendment and decertification of Energy
16Transition Zones.
17 (a) The terms of a certified Energy Transition Zone
18designating ordinance may be amended to:
19 (1) alter the boundaries of the Energy Transition
20 Zone;
21 (2) expand, limit, or repeal tax incentives or
22 benefits provided in the ordinance;
23 (3) alter the termination date of the Zone;
24 (4) make technical corrections in the Energy
25 Transition Zone designating ordinance; but such amendment

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1 shall not be effective unless the Department issues an
2 amended certificate for the Energy Transition Zone
3 approving the amended designating ordinance. Upon the
4 adoption of any ordinance amending or repealing the terms
5 of a certified Energy Transition Zone designating
6 ordinance, the municipality or county shall promptly file
7 with the Department an application for approval thereof,
8 containing substantially the same information as required
9 for an application under Section 1-35 insofar as material
10 to the proposed changes. The municipality or county must
11 hold a public hearing on the proposed changes; or
12 (5) include an area within another municipality or
13 county as part of the designated Energy Transition Zone
14 provided the requirements of Section 1-15 are complied
15 with.
16 (b) The Department shall approve or disapprove a proposed
17amendment to a certified Energy Transition Zone within 90 days
18of its receipt of the application from the municipality. The
19Department may not approve changes in a Zone which are not in
20conformity with this Act, as now or hereafter amended, or with
21other applicable laws. If the Department issues an amended
22certificate for an Energy Transition Zone, the amended
23certificate, together with the amended Zone designating
24ordinance, shall be filed, recorded, and transmitted as
25provided in this Act.
26 (c) An Energy Transition Zone may be decertified by joint

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1action of the Department and the designating municipality in
2accordance with this Section. The designating municipality
3shall conduct at least one public hearing within the Zone
4prior to its adoption of an ordinance of de-designation. The
5mayor of the designating municipality shall execute a joint
6decertification agreement with the Department. A
7decertification of an Energy Transition Zone shall not become
8effective until at least 6 months after the execution of the
9decertification agreement, which shall be filed in the office
10of the Secretary of State.
11 (d) An Energy Transition Zone may be decertified for cause
12by the Department in accordance with this Section. Prior to
13decertification: (1) the Department shall notify the chief
14elected official of the designating municipality in writing of
15the specific deficiencies which provide cause for
16decertification; (2) the Department shall place the
17designating municipality on probationary status for at least 6
18months during which time corrective action may be achieved in
19the Energy Transition Zone by the designating municipality;
20and (3) the Department shall conduct at least one public
21hearing within the Zone. If such corrective action is not
22achieved during the probationary period, the Department shall
23issue an amended certificate signed by the Director of the
24Department decertifying the Energy Transition Zone, which
25certificate shall be filed in the office of the Secretary of
26State. A certified copy of the amended Energy Transition Zone

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1certificate, or a duplicate original thereof, shall be
2recorded in the office of recorder of the county in which the
3Energy Transition Zone lies, and shall be provided to the
4chief elected official of the designating municipality.
5Decertification of an Energy Transition Zone shall not become
6effective until 60 days after the date of filing.
7 (e) In the event of a decertification, an amendment
8reducing the length of the term or the area of an Energy
9Transition Zone, or the adoption of an ordinance reducing or
10eliminating tax benefits in an Energy Transition Zone, all
11benefits previously extended within the Zone pursuant to this
12Act or pursuant to any other Illinois law providing benefits
13specifically to or within Energy Transition Zones shall remain
14in effect for the original stated term of the Energy
15Transition Zone, with respect to green energy enterprises
16within the Zone on the effective date of such decertification
17or amendment.
18 Section 1-60. Powers and duties of Department.
19 (a) The Department shall administer this Act and shall
20have the following powers and duties:
21 (1) to monitor the implementation of this Act and
22 submit reports evaluating the effectiveness of the program
23 and any suggestions for legislation to the Governor and
24 General Assembly by October 1 of every year preceding a
25 regular Session of the General Assembly and to annually

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1 report to the General Assembly initial and current
2 population, employment, per capita income, number of
3 business establishments, dollar value of new construction
4 and improvements, and the aggregate value of each tax
5 incentive, based on information provided by the Department
6 of Revenue for each Energy Transition Zone; and
7 (2) to adopt all necessary rules to carry out the
8 purposes of this Act in accordance with the Illinois
9 Administrative Procedure Act.
10 (b) The Department shall have all of the following
11specific duties:
12 (1) The Department shall provide information and
13 appropriate assistance to persons desiring to locate and
14 engage in business in an Energy Transition Zone and to
15 persons engaged in green energy in an Energy Transition
16 Zone.
17 (2) The Department shall, in cooperation with
18 appropriate units of local government and State agencies,
19 coordinate and streamline existing State business
20 assistance programs and permit and license application
21 procedures for Energy Transition Zone green energy
22 enterprises.
23 (3) The Department shall publicize existing tax
24 incentives and economic development programs within the
25 Zone and upon request, offer technical assistance in
26 abatement and alternative revenue source development to

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1 local units of government which have Energy Transition
2 Zones within their jurisdiction.
3 (4) The Department shall work together with the
4 responsible State and federal agencies to promote the
5 coordination of other relevant programs, including but not
6 limited to housing, community and economic development,
7 small business, banking, financial assistance, and
8 employment training programs which are carried on in an
9 Energy Transition Zone.
10 (5) In order to stimulate employment opportunities for
11 Zone residents, the Department, in cooperation with the
12 Department of Human Services and the Department of
13 Employment Security, is to initiate a test of the
14 following 2 programs within the 12-month period following
15 designation and approval by the Department of the first
16 Energy Transition Zones: (i) the use of aid to families
17 with dependent children benefits payable under Article IV
18 of the Illinois Public Aid Code, General Assistance
19 benefits payable under Article VI of the Illinois Public
20 Aid Code, the unemployment insurance benefits payable
21 under the Unemployment Insurance Act as training or
22 employment subsidies leading to unsubsidized employment;
23 and (ii) a program for voucher reimbursement of the cost
24 of training Zone residents eligible under the Targeted
25 Jobs Tax Credit provisions of the Internal Revenue Code
26 for employment in private industry. These programs shall

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1 not be designed to subsidize businesses, but are intended
2 to open up job and training opportunities not otherwise
3 available. Nothing in this paragraph (5) shall be deemed
4 to require Zone businesses to utilize these programs.
5 These programs should be designed (i) for those
6 individuals whose opportunities for job-finding are
7 minimal without program participation, (ii) to minimize
8 the period of benefit collection by such individuals, and
9 (iii) to accelerate the transition of those individuals to
10 unsubsidized employment. The Department is to seek
11 agreement with business, organized labor, and the
12 appropriate State Departments and agencies on the design,
13 operation, and evaluation of the test programs.
14 (c) A report with recommendations including representative
15comments of these groups shall be submitted by the Department
16to the county or municipality that designated the area as an
17Energy Transition Zone, the Governor, and the General Assembly
18not later than 12 months after such test programs have
19commenced, or not later than 3 months following the
20termination of such test programs, whichever first occurs.
21 Section 1-65. State incentives regarding public services
22and physical infrastructure.
23 (a) This Act does not restrict tax incentive financing
24pursuant to the Tax Increment Allocation Redevelopment Act in
25the Illinois Municipal Code.

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1 (b) The State Treasurer is authorized and encouraged to
2place deposits of State funds with financial institutions
3doing business in an Energy Transition Zone.
4 Section 1-70. Zone administration. The administration of
5an Energy Transition Zone shall be under the jurisdiction of
6the designating municipality. Each designating municipality
7shall, by ordinance, designate a Zone Administrator for the
8certified Zones within its jurisdiction. A Zone Administrator
9must be an officer or employee of the municipality. The Zone
10Administrator shall be the liaison between the designating
11municipality, the Department, and any designated Zone
12organizations within zones under his jurisdiction.
13 Section 1-75. Accounting.
14 (a) Any business receiving tax incentives due to its
15location within an Energy Transition Zone must annually report
16to the Department of Revenue information reasonably required
17by the Department of Revenue to enable the Department to
18verify and calculate the total Energy Transition Zone tax
19benefits for property taxes and taxes imposed by the State
20that are received by the business, broken down by incentive
21category and Energy Transition Zone, if applicable. Reports
22are due no later than May 31 of each year and shall cover the
23previous calendar year. The first report will be for the 2021
24calendar year and is due no later than May 31, 2021.

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1 (b) Green energy enterprises shall report their job
2creation, retention, and capital investment numbers within the
3Zone annually to the Department of Revenue no later than May 31
4of each calendar year.
5 (c) The Department of Revenue shall aggregate and collect
6the tax, job, and capital investment data by Energy Transition
7Zone and report this information, formatted to exclude
8company-specific proprietary information, to the Department
9and the Board by August 1, 2021, and by August 1 of every
10calendar year thereafter. The Department shall include this
11information in their required reports under this Act.
12 (d) The Department of Revenue, in its discretion, may
13require that the reports filed under this Section be submitted
14electronically.
15 (e) The Department of Revenue shall have the authority to
16adopt rules as are reasonable and necessary to implement the
17provisions of this Section.
18 Section 1-80. Zone Administrator.
19 (a) Each Zone Administrator shall post a copy of the
20boundaries of the Energy Transition Zone on its official
21Internet website and shall provide an electronic copy to the
22Department. The Department shall post each copy of the
23boundaries of an Energy Transition Zone that it receives from
24a Zone Administrator on its official Internet website.
25 (b) The Zone Administrator shall collect and aggregate the

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1following information:
2 (1) the estimated cost of each building project,
3 broken down into labor and materials; and
4 (2) within 60 days after the end of the project, the
5 estimated cost of each building project, broken down into
6 labor and materials.
7 (c) By April 1 of each year, each Zone Administrator shall
8file a copy of its fee schedule with the Department, and the
9Department shall post the fee schedule on its website. Zone
10Administrators shall charge no more than 0.5% of the cost of
11building materials of the project associated with the specific
12Energy Transition Zone, with a maximum fee of no more than
13$50,000.
14 Section 1-85. State regulatory exemptions in Energy
15Transition Zones.
16 (a) The Department shall conduct an ongoing review of such
17agency rules as may be identified by the Department or
18representatives of designating municipalities and counties as
19green energy enterprises and preliminarily appearing to the
20Department to:
21 (1) affect the conduct of business, industry and
22 commerce;
23 (2) impose excessive costs on either the creation or
24 conduct of such enterprises; and
25 (3) inhibit the development and expansions of

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1 enterprises within Energy Transition Zones.
2 The Department shall conduct hearings, pursuant to public
3notice, to solicit public comment on such identified rules as
4part of this review process.
5 (b) No later than August 1 of each calendar year, the
6Department shall publish in the Illinois Register a list of
7such rules identified pursuant to subsection (a). The
8Department shall transmit a copy of the list to each agency
9which has adopted rules on the list.
10 (c) Within 90 days of the publication of the list by the
11Department, each agency which adopted rules identified therein
12shall file a written report with the Department detailing for
13each identified rule:
14 (1) the need or justification;
15 (2) whether the rule is mandated by State or federal
16 law, or is discretionary, and to what extent;
17 (3) a synopsis of the history of the rule, including
18 any internal agency review after its original adoption;
19 and
20 (4) any appropriate explanation of its relationship to
21 other regulatory requirements.
22 The agency that adopted the rules shall also include any
23available data, analysis and studies concerning the economic
24impact of the identified rules. The agency responses shall be
25public records.
26 (d) No later than January 1 of the following calendar

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1year, the Department shall file proposed rules exempting green
2energy enterprises within Energy Transition Zones from those
3agency rules contained in the published list, for which the
4Department finds that the job creation or business development
5incentives for Energy Transition Zone development engendered
6by the exemption outweigh the need and justification for the
7rule. In making its findings, the Department shall consider
8all information, data, and opinions submitted to it by the
9public, as well as by adopting agencies, as well as
10information otherwise available to it.
11 (e) The proposed rules adopted by the Department shall be
12in the form of amendments to the existing rules to be affected,
13and shall be subject to the Illinois Administrative Procedure
14Act.
15 (f) Upon its effective date, any exempting rule of the
16Department shall supersede the exempted agency rule in
17accordance with the terms of the exemption. Such exemptions
18may apply only to green energy enterprises within Energy
19Transition Zones during the effective term of the respective
20Zones. Agencies may not adopt emergency rules to circumvent an
21exemption affected by a Department exemption rule; any such
22emergency rules shall not be effective within Energy
23Transition Zones to the extent inconsistent with the terms of
24such an exemption.
25 Section 1-90. State and local regulatory alternatives.

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1 (a) Agencies may provide in their rules for:
2 (1) the exemption of green energy enterprises within
3 Energy Transition Zones; or
4 (2) modifications or alternatives specifically
5 applicable to green energy enterprises within Energy
6 Transition Zones, which impose less stringent standards or
7 alternative standards for compliance (including, but not
8 limited to, performance-based standards as a substitute
9 for specific mandates of methods, procedures or
10 equipment).
11 Such exemptions, modifications, or alternatives shall
12become effective by rule adopted in accordance with the
13Illinois Administrative Procedure Act. The Agency adopting
14such exemptions, modifications or alternatives shall file with
15its proposed rule its findings that the proposed rule provides
16economic incentives within Energy Transition Zones which
17promote the purposes of this Act, and which, to the extent they
18include any exemptions or reductions in regulatory standards
19or requirements, outweigh the need or justification for the
20existing rule.
21 (b) If any agency adopts a rule pursuant to paragraph (a)
22affecting a rule contained on the list published by the
23Department, prior to the completion of the rulemaking process
24for the Department's rules under that Section, the agency
25shall immediately transmit a copy of its proposed rule to the
26Department, together with a statement of reasons as to why the

SB1747- 26 -LRB102 12964 HLH 18307 b
1Department should defer to the agency's proposed rule. Agency
2rules adopted under subsection (a) shall, however, be subject
3to the exemption rules adopted by the Department.
4 (c) Within Energy Transition Zones, the designating
5municipality may modify all local ordinances and regulations
6regarding (i) zoning; (ii) licensing; (iii) building codes,
7excluding however, any regulations treating building defects;
8or (iv) price controls (except for the minimum wage).
9Notwithstanding any shorter statute of limitation to the
10contrary, actions against any contractor or architect who
11designs, constructs or rehabilitates a building or structure
12in an Energy Transition Zone in accordance with local
13standards specifically applicable within Zones which have been
14relaxed may be commenced within 10 years from the time of
15beneficial occupancy of the building or use of the structure.
16 Section 1-95. Exemptions from regulatory relaxation.
17Sections 1-85 and 1-90 do not apply to rules adopted pursuant
18to:
19 (1) the Environmental Protection Act;
20 (2) the Illinois Historic Preservation Act;
21 (3) the Illinois Human Rights Act;
22 (4) any successor Acts to any of the foregoing; or
23 (5) any other Acts whose purpose is the protection of
24 the environment, the preservation of historic places and
25 landmarks, or the protection of persons against

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1 discrimination on the basis of race, color, religion, sex,
2 marital status, national origin, or physical or mental
3 disability.
4 (b) No exemption, modification, or alternative to any
5agency rule shall be effective which:
6 (1) presents a significant risk to the health or
7 safety of persons resident in or employed within an Energy
8 Transition Zone;
9 (2) would conflict with federal law such that the
10 State, or any unit of local government or school district,
11 or any area of the State other than Energy Transition
12 Zones, or any business enterprise located outside of an
13 Energy Transition Zone would be disqualified from a
14 federal program or from federal tax or other benefits;
15 (3) would suspend or modify an agency rule mandated by
16 law; or
17 (4) would eliminate or reduce benefits to individuals
18 who are residents of or employed within a Zone.
19 Section 1-100. Business notifications. Any business
20located within the Energy Transition Zone which has received
21tax credits or exemptions, regulatory relief or any other
22benefits under this Act shall notify the Department and the
23county and municipal officials in which the Energy Transition
24Zone is located within 60 days of the cessation of any business
25operations conducted within the Energy Transition Zone. The

SB1747- 28 -LRB102 12964 HLH 18307 b
1Department shall adopt rules to carry out this Section.
2
Article 5. Energy Transition Tax Credit Act
3 Section 5-1. Short title. This Article may be cited as the
4Energy Transition Tax Credit Act. References in this Article
5to "this Act" mean this Article.
6 Section 5-5. Purpose. The General Assembly finds and
7declares that the health, safety, and welfare of the people of
8this State are dependent upon a healthy economy and vibrant
9communities; that the closure of coal plants, coal mines, and
10nuclear energy plants across the states are detrimental to
11maintaining a healthy economy and vibrant communities; that
12the expansion of green energy creates significant job growth
13and contributes significantly to the health, safety, and
14welfare of the people of this State; that the continual
15encouragement, development, growth and expansion of green
16energy within the State requires a cooperative and continuous
17partnership between government and the green energy sector;
18and that there are certain depressed areas in this State that
19have lost jobs due to the closure of coal plants, coal mines,
20and nuclear energy plants and need the particular attention of
21government, labor and the citizens of Illinois to help attract
22green energy investment into these areas and directly aid the
23local community and its residents. Therefore, it is declared

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1to be the purpose of this Act, in conjunction with the Energy
2Transition Zone Act, to provide green energy enterprises an
3incentive to stimulate the growth of green energy in the State
4and to foster job growth in areas depressed by the closure of
5coal plants, coal mines, and nuclear energy plants.
6 Section 5-10. Definitions. As used in this Act:
7 "Agreement" means the Agreement between a Taxpayer and the
8Department under the provisions of Section 5-55 of this Act.
9 "Applicant" means a Taxpayer operating a green energy
10enterprise, as determined by the Energy Transition Zone Act,
11located within or that the green energy enterprise plans to
12locate within an Energy Transition Zone. "Applicant" does not
13include a Taxpayer who closes or substantially reduces an
14operation at one location in the State and relocates
15substantially the same operation to a location in an Energy
16Transition Zone. This does not prohibit a Taxpayer from
17expanding its operations at a location in an Energy Transition
18Zone, provided that existing operations of a similar nature
19located within the State are not closed or substantially
20reduced. This also does not prohibit a Taxpayer from moving
21its operations from one location in the State to an Energy
22Transition Zone for the purpose of expanding the operation
23provided that the Department determines that expansion cannot
24reasonably be accommodated within the municipality in which
25the business is located, or in the case of a business located

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1in an incorporated area of the county, within the county in
2which the business is located, after conferring with the chief
3elected official of the municipality or county and taking into
4consideration any evidence offered by the municipality or
5county regarding the ability to accommodate expansion within
6the municipality or county.
7 "Committee" means the Energy Transition Investment
8Committee created under Section 5-25 of this Act within the
9Illinois Economic Development Board.
10 "Credit" means the amount agreed to between the Department
11and the Applicant under this Act, but not to exceed the lesser
12of: (1) the sum of (i) 50% of the Incremental Income Tax
13attributable to New Employees at the Applicant's project and
14(ii) 10% of the training costs of New Employees; or (2) 100% of
15the Incremental Income Tax attributable to New Employees at
16the Applicant's project. However, if the project is located in
17an underserved area, then the amount of the Credit may not
18exceed the lesser of: (1) the sum of (i) 75% of the Incremental
19Income Tax attributable to New Employees at the Applicant's
20project and (ii) 10% of the training costs of New Employees; or
21(2) 100% of the Incremental Income Tax attributable to New
22Employees at the Applicant's project. If an Applicant agrees
23to hire the required number of New Employees, then the maximum
24amount of the Credit for that Applicant may be increased by an
25amount not to exceed 25% of the Incremental Income Tax
26attributable to retained employees at the Applicant's project;

SB1747- 31 -LRB102 12964 HLH 18307 b
1provided that, in order to receive the increase for retained
2employees, the Applicant must provide the additional evidence
3required under paragraph (3) of subsection (b) of Section
45-30.
5 "Department" means the Department of Commerce and Economic
6Opportunity.
7 "Director" means the Director of Commerce and Economic
8Opportunity.
9 "Full-time Employee" means an individual who is employed
10for consideration for at least 35 hours each week or who
11renders any other standard of service generally accepted by
12industry custom or practice as full-time employment. An
13individual for whom a W-2 is issued by a Professional Employer
14Organization (PEO) is a full-time employee if employed in the
15service of the Applicant for consideration for at least 35
16hours each week or who renders any other standard of service
17generally accepted by industry custom or practice as full-time
18employment to Applicant.
19 "Green energy" means solar energy, wind energy, water
20energy, geothermal energy, bioenergy, or hydrogen fuel and
21cells.
22 "Green energy production facility" means a facility owned
23by a green energy enterprise (as defined in the Illinois
24Energy Transition Zone Act) that is used in the production of
25solar energy, wind energy, water energy, geothermal energy,
26bioenergy, or hydrogen fuel and cells."Incremental Income Tax"

SB1747- 32 -LRB102 12964 HLH 18307 b
1means the total amount withheld during the taxable year from
2the compensation of New Employees and, if applicable, retained
3employees under Article 7 of the Illinois Income Tax Act
4arising from employment at a project that is the subject of an
5Agreement.
6 "New Employee" means a full-time employee first employed
7by a taxpayer in the project that is the subject of an
8agreement and who is hired after the taxpayer enters into the
9agreement. The term "New Employee" does not include:
10 (1) an employee of the Taxpayer who performs a job
11 that was previously performed by another employee, if that
12 job existed for at least 6 months before hiring the
13 employee;
14 (2) an employee of the Taxpayer who was previously
15 employed in Illinois by a Related Member of the Taxpayer
16 and whose employment was shifted to the Taxpayer after the
17 Taxpayer entered into the Agreement; or
18 (3) a child, grandchild, parent, or spouse, other than
19 a spouse who is legally separated from the individual, of
20 any individual who has a direct or an indirect ownership
21 interest of at least 5% in the profits, capital, or value
22 of the taxpayer.
23 Notwithstanding any other provisions of this Section, an
24employee may be considered a New Employee under the Agreement
25if the employee performs a job that was previously performed
26by an employee who was:

SB1747- 33 -LRB102 12964 HLH 18307 b
1 (1) treated under the Agreement as a New Employee; and
2 (2) promoted by the Taxpayer to another job.
3 Notwithstanding any other provisions of this Section, the
4Department may award a Credit to an Applicant with respect to
5an employee hired prior to the date of the Agreement if:
6 (1) the Applicant is in receipt of a letter from the
7 Department stating an intent to enter into a credit
8 Agreement;
9 (2) the letter described in paragraph (1) is issued by
10 the Department not later than 15 days after the effective
11 date of this Act; and
12 (3) the employee was hired after the date the letter
13 described in paragraph (1) was issued.
14 "Noncompliance Date" means, in the case of a Taxpayer that
15is not complying with the requirements of the Agreement or the
16provisions of this Act, the day following the last date upon
17which the Taxpayer was in compliance with the requirements of
18the Agreement and the provisions of this Act, as determined by
19the Director, pursuant to Section 5-75.
20 "Pass through entity" means an entity that is exempt from
21the tax under subsection (b) or (c) of Section 205 of the
22Illinois Income Tax Act.
23 "Related Member" means a person that, with respect to the
24Taxpayer during any portion of the taxable year, is any one of
25the following:
26 (1) An individual stockholder, if the stockholder and

SB1747- 34 -LRB102 12964 HLH 18307 b
1 the members of the stockholder's family (as defined in
2 Section 318 of the Internal Revenue Code) own directly,
3 indirectly, beneficially, or constructively, in the
4 aggregate, at least 50% of the value of the Taxpayer's
5 outstanding stock.
6 (2) A partnership, estate, or trust and any partner or
7 beneficiary, if the partnership, estate, or trust, and its
8 partners or beneficiaries own directly, indirectly,
9 beneficially, or constructively, in the aggregate, at
10 least 50% of the profits, capital, stock, or value of the
11 Taxpayer.
12 (3) A corporation, and any party related to the
13 corporation in a manner that would require an attribution
14 of stock from the corporation to the party or from the
15 party to the corporation under the attribution rules of
16 Section 318 of the Internal Revenue Code, if the Taxpayer
17 owns directly, indirectly, beneficially, or constructively
18 at least 50% of the value of the corporation's outstanding
19 stock.
20 (4) A corporation and any party related to that
21 corporation in a manner that would require an attribution
22 of stock from the corporation to the party or from the
23 party to the corporation under the attribution rules of
24 Section 318 of the Internal Revenue Code, if the
25 corporation and all such related parties own in the
26 aggregate at least 50% of the profits, capital, stock, or

SB1747- 35 -LRB102 12964 HLH 18307 b
1 value of the Taxpayer.
2 (5) A person to or from whom there is attribution of
3 stock ownership in accordance with Section 1563(e) of the
4 Internal Revenue Code, except, for purposes of determining
5 whether a person is a Related Member under this paragraph,
6 20% shall be substituted for 5% wherever 5% appears in
7 Section 1563(e) of the Internal Revenue Code.
8 "Taxpayer" means an individual, corporation, partnership,
9or other entity that has any Illinois income tax liability.
10 "Underserved area" means a geographic area that meets one
11or more of the following conditions:
12 (1) the area has a poverty rate of at least 20%
13 according to the latest federal decennial census;
14 (2) 75% or more of the children in the area
15 participate in the federal free lunch program according to
16 reported statistics from the State Board of Education;
17 (3) at least 20% of the households in the area receive
18 assistance under the Supplemental Nutrition Assistance
19 Program (SNAP); or
20 (4) the area has an average unemployment rate, as
21 determined by the Illinois Department of Employment
22 Security, that is more than 120% of the national
23 unemployment average, as determined by the U.S. Department
24 of Labor, for a period of at least 2 consecutive calendar
25 years preceding the date of the application.

SB1747- 36 -LRB102 12964 HLH 18307 b
1 Section 5-15. Powers of the Department. The Department, in
2addition to those powers granted under the Civil
3Administrative Code of Illinois, is granted and shall have all
4the powers necessary or convenient to carry out and effectuate
5the purposes and provisions of this Act, including, but not
6limited to, power and authority to:
7 (1) Adopt rules deemed necessary and appropriate for
8 the administration of the programs; establish forms for
9 applications, notifications, contracts, or any other
10 agreements; and accept applications at any time during the
11 year.
12 (2) Provide and assist Taxpayers pursuant to the
13 provisions of this Act, and cooperate with Taxpayers that
14 are parties to Agreements to promote, foster, and support
15 economic development, capital investment, and job creation
16 or retention within the Energy Transition Zone.
17 (c) Enter into agreements and memoranda of
18 understanding for participation of and engage in
19 cooperation with agencies of the federal government, local
20 units of government, universities, research foundations or
21 institutions, regional economic development corporations,
22 or other organizations for the purposes of this Act.
23 (4) Gather information and conduct inquiries, in the
24 manner and by the methods as it deems desirable, including
25 without limitation, gathering information with respect to
26 Applicants for the purpose of making any designations or

SB1747- 37 -LRB102 12964 HLH 18307 b
1 certifications necessary or desirable or to gather
2 information to assist the Committee with any
3 recommendation or guidance in the furtherance of the
4 purposes of this Act.
5 (5) Establish, negotiate and effectuate any term,
6 agreement or other document with any person, necessary or
7 appropriate to accomplish the purposes of this Act; and to
8 consent, subject to the provisions of any Agreement with
9 another party, to the modification or restructuring of any
10 Agreement to which the Department is a party.
11 (6) Fix, determine, charge, and collect any premiums,
12 fees, charges, costs, and expenses from Applicants,
13 including, without limitation, any application fees,
14 commitment fees, program fees, financing charges, or
15 publication fees as deemed appropriate to pay expenses
16 necessary or incident to the administration, staffing, or
17 operation in connection with the Department's or
18 Committee's activities under this Act, or for preparation,
19 implementation, and enforcement of the terms of the
20 Agreement, or for consultation, advisory and legal fees,
21 and other costs; however, all fees and expenses incident
22 thereto shall be the responsibility of the Applicant.
23 (7) Provide for sufficient personnel to permit
24 administration, staffing, operation, and related support
25 required to adequately discharge its duties and
26 responsibilities described in this Act from funds made

SB1747- 38 -LRB102 12964 HLH 18307 b
1 available through charges to Applicants or from funds as
2 may be appropriated by the General Assembly for the
3 administration of this Act.
4 (8) Require Applicants, upon written request, to issue
5 any necessary authorization to the appropriate federal,
6 state, or local authority for the release of information
7 concerning a project being considered under the provisions
8 of this Act, with the information requested to include,
9 but not be limited to, financial reports, returns, or
10 records relating to the Taxpayer or its project.
11 (9) Require that a Taxpayer shall at all times keep
12 proper books of record and account in accordance with
13 generally accepted accounting principles consistently
14 applied, with the books, records, or papers related to the
15 Agreement in the custody or control of the Taxpayer open
16 for reasonable Department inspection and audits, and
17 including, without limitation, the making of copies of the
18 books, records, or papers, and the inspection or appraisal
19 of any of the Taxpayer or project assets.
20 (10) Take whatever actions are necessary or
21 appropriate to protect the State's interest in the event
22 of bankruptcy, default, foreclosure, or noncompliance with
23 the terms and conditions of financial assistance or
24 participation required under this Act, including the power
25 to sell, dispose, lease, or rent, upon terms and
26 conditions determined by the Director to be appropriate,

SB1747- 39 -LRB102 12964 HLH 18307 b
1 real or personal property that the Department may receive
2 as a result of these actions.
3 Section 5-20. 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 (f) of this Section, a payment towards taxes
7imposed pursuant to subsections (a) and (b) of Section 201 of
8the Illinois Income Tax Act that may be imposed on the Taxpayer
9for a taxable year beginning on or after January 1, 2021, if
10the Taxpayer is awarded a Credit by the Department under this
11Act for that taxable year.
12 The Department shall make Credit awards under this Act to
13foster job creation and the development of green energy in
14Energy Transition Zones.
15 (b) A person that proposes a project to create new jobs and
16to invest in the development of a green energy production
17facility in an Energy Transition Zone must enter into an
18Agreement with the Department for the Credit under this Act
19 (c) The Credit shall be claimed for the taxable years
20specified in the Agreement.
21 (d) The Credit shall not exceed the Incremental Income Tax
22attributable to the project that is the subject of the
23Agreement.
24 (e) Nothing herein shall prohibit a Tax Credit Award to an
25Applicant that uses a PEO if all other award criteria are

SB1747- 40 -LRB102 12964 HLH 18307 b
1satisfied.
2 (f) This Section is exempt from the provisions of Section
3250 of the Illinois Income Tax Act.
4 Section 5-25. Application for a project to create and
5retain new jobs and to develop green energy.
6 (a) Any green energy enterprise proposing a project to
7build a green energy production facility located or planned to
8be located in an Energy Transition Zone may request
9consideration for designation of its project, by formal
10written letter of request or by formal application to the
11Department, in which the Applicant states its intent to make
12at least a specified level of investment and intends to hire or
13retain a specified number of full-time employees at a
14designated location in Illinois. As circumstances require, the
15Department may require a formal application from an Applicant
16and a formal letter of request for assistance.
17 (b) In order to qualify for Credits under this Act, an
18Applicant's project must:
19 (1) be for the purpose of producing green energy;
20 (2) if the Applicant has more than 100 employees,
21 involve an investment of at least $2,500,000 in capital
22 improvements to be placed in service within an Energy
23 Transition Zone as a direct result of the project; if the
24 Applicant has 100 or fewer employees, then there is no
25 capital investment requirement; and

SB1747- 41 -LRB102 12964 HLH 18307 b
1 (3) if the Applicant has more than 100 employees,
2 employ a number of new employees in the Energy Transition
3 Zone equal to the lesser of (A) 10% of the number of
4 full-time employees employed by the applicant world-wide
5 on the date the application is filed with the Department
6 or (B) 50 New Employees; and, if the Applicant has 100 or
7 fewer employees, employ a number of new employees in the
8 State equal to the lesser of (A) 5% of the number of
9 full-time employees employed by the applicant world-wide
10 on the date the application is filed with the Department
11 or (B) 50 New Employees;
12 (c) After receipt of an application, the Department may
13enter into an Agreement with the Applicant if the application
14is accepted in accordance with Section 5-25.
15 Section 5-30. Review of application.
16 (a) In addition to those duties granted under the Illinois
17Economic Development Board Act, the Illinois Economic
18Development Board shall form an Energy Transition Investment
19Committee for the purpose of making recommendations for
20applications. At the request of the Board, the Director of
21Commerce and Economic Opportunity or his or her designee, the
22Director of the Governor's Office of Management and Budget or
23his or her designee, the Director of Revenue or his or her
24designee, the Director of Employment Security or his or her
25designee, and an elected official of the affected locality,

SB1747- 42 -LRB102 12964 HLH 18307 b
1such as the chair of the county board or the mayor, may serve
2as members of the Committee to assist with its analysis and
3deliberations.
4 (b) At the Department's request, the Committee shall
5convene, make inquiries, and conduct studies in the manner and
6by the methods as it deems desirable, review information with
7respect to Applicants, and make recommendations for projects
8to benefit an Energy Transition Zone. In making its
9recommendation that an Applicant's application for Credit
10should or should not be accepted, which shall occur within a
11reasonable time frame as determined by the nature of the
12application, the Committee shall determine that all the
13following conditions exist:
14 (1) The Applicant's project intends, as required by
15 subsection (b) of Section 5 to make the required
16 investment in the Energy Transition Zone and intends to
17 hire the required number of New Employees in the Energy
18 Transition Zone as a result of that project.
19 (2) The Applicant's project is economically sound and
20 will benefit the people of the Energy Transition Zone by
21 increasing opportunities for employment and engaging in
22 the development of green energy.
23 (3) That, if not for the Credit, the project would not
24 occur in Illinois, which may be demonstrated by evidence
25 that receipt of the Credit is essential to the Applicant's
26 decision to create new jobs in the State, such as the

SB1747- 43 -LRB102 12964 HLH 18307 b
1 magnitude of the cost differential between Illinois and a
2 competing State; in addition, if the Applicant is seeking
3 an increase in the maximum amount of the Credit for
4 retained employees, the Applicant must provide evidence
5 the Applicant has multi-state location options and could
6 reasonably and efficiently locate outside of the State or
7 demonstrate that at least one other state is being
8 considered for the project.
9 (4) A cost differential is identified, using best
10 available data, in the projected costs for the Applicant's
11 project compared to the costs in the competing state,
12 including the impact of the competing state's incentive
13 programs. The competing state's incentive programs shall
14 include state, local, private, and federal funds
15 available.
16 (5) The political subdivisions affected by the project
17 have committed local incentives with respect to the
18 project, considering local ability to assist.
19 (6) Awarding the Credit will result in an overall
20 positive fiscal impact to the State, as certified by the
21 Committee using the best available data.
22 (7) The Credit is not prohibited by Section 5-45 of
23 this Act.
24 Section 5-35. Limitation to amount of costs of specified
25items. The total amount of the Credit allowed during all tax

SB1747- 44 -LRB102 12964 HLH 18307 b
1years may not exceed the aggregate amount of costs incurred by
2the Taxpayer during all prior tax years for the following
3items, to the extent provided in the Agreement:
4 (1) capital investment, including, but not limited to,
5 equipment, buildings, or land;
6 (2) infrastructure development;
7 (3) debt service, except refinancing of current debt;
8 (4) research and development;
9 (5) job training and education;
10 (6) lease costs; or
11 (7) relocation costs.
12 Section 5-40. Relocation of jobs to Energy Transition
13Zone. A taxpayer is not entitled to claim the credit provided
14by this Act with respect to any jobs that the taxpayer
15relocates from one site in Illinois to another site in an
16Energy Transition Zone. A taxpayer with respect to a
17qualifying project certified under the Corporate Headquarters
18Relocation Act, however, is not subject to the requirements of
19this Section but is nevertheless considered an applicant for
20purposes of this Act. Moreover, any full-time employee of an
21eligible green energy enterprise relocated to an Energy
22Transition Zone in connection with that qualifying project is
23deemed to be a new employee for purposes of this Act.
24Determinations under this Section shall be made by the
25Department.

SB1747- 45 -LRB102 12964 HLH 18307 b
1 Section 5-45. Determination of amount of the Credit. In
2determining the amount of the Credit that should be awarded,
3the Committee shall provide guidance on, and the Department
4shall take into consideration, all of the following factors:
5 (1) The number and location of jobs created and
6 retained in relation to the economy of the Energy
7 Transition Zone where the projected investment is to
8 occur.
9 (2) The potential impact on the economy of the Energy
10 Transition Zone.
11 (3) The advancement of green energy in the Energy
12 Transition Zone.
13 (4) The incremental payroll attributable to the
14 project.
15 (5) The capital investment attributable to the
16 project.
17 (6) The amount of the average wage and benefits paid
18 by the Applicant in relation to the wage and benefits of
19 the Energy Transition Zone.
20 (7) The costs to Illinois and the affected political
21 subdivisions with respect to the project.
22 (8) The financial assistance that is otherwise
23 provided by Illinois and the affected political
24 subdivisions.

SB1747- 46 -LRB102 12964 HLH 18307 b
1 Section 5-50. Amount and curation of credit.
2 (a) The Department shall determine the amount and duration
3of the credit awarded under this Act. The duration of the
4credit may not exceed 10 taxable years. The credit may be
5stated as a percentage of the Incremental Income Tax
6attributable to the applicant's project and may include a
7fixed dollar limitation. An Agreement for the credit must be
8finalized and signed by all parties while the area in which the
9project is located is designated an Energy Transition Zone.
10The credit may last longer than the applicable Energy
11Transition Zone designation. Agreements entered into prior to
12the de-designation of an Energy Transition Zone will be
13honored for the length of the Agreement.
14 (b) Notwithstanding subsection (a), the credit may be
15applied in more than 10 taxable years but not more than 15
16taxable years for an eligible green energy enterprise that
17qualifies under this Act and the Corporate Headquarters
18Relocation Act and has in fact undertaken a qualifying project
19within the timeframe specified by the Department of Commerce
20and Economic Opportunity under that Act. In that case, the
21Department of Commerce and Economic Opportunity shall extend
22the tax credit agreement to not more than 15 years and reduce
23the annual allocation to 60% of the maximum credit that would
24otherwise be available under this Act.
25 (c) The tax credit may not reduce the taxpayer's liability
26to less than zero. If the amount of tax credit exceeds the

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1liability for the year, the excess may be carried forward and
2applied to the tax liability of the 5 taxable years following
3the excess credit year. The credit must be applied to the
4earliest year for which there is a tax liability. If there are
5credits from more than one tax year that are available to
6offset a liability, then the earlier credit will be applied
7first.
8 Section 5-55. Contents of Agreements with Applicants. The
9Department shall enter into an Agreement with an Applicant
10that is awarded a Credit under this Act. The Agreement must
11include all of the following:
12 (1) A detailed description of the project that is the
13 subject of the Agreement, including the location and
14 amount of the investment and jobs created or retained.
15 (2) The duration of the Credit and the first taxable
16 year for which the Credit may be claimed.
17 (3) The Credit amount that will be allowed for each
18 taxable year.
19 (4) A requirement that the Taxpayer shall maintain
20 operations at the project location that shall be stated as
21 a minimum number of years not to exceed 10.
22 (5) A specific method for determining the number of
23 New Employees employed during a taxable year.
24 (6) A requirement that the Taxpayer shall annually
25 report to the Department the number of New Employees, the

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1 Incremental Income Tax withheld in connection with the New
2 Employees, and any other information the Director needs to
3 perform the Director's duties under this Act.
4 (7) A requirement that the Director is authorized to
5 verify with the appropriate State agencies the amounts
6 reported under paragraph (6), and after doing so shall
7 issue a certificate to the Taxpayer stating that the
8 amounts have been verified.
9 (8) A requirement that the Taxpayer shall provide
10 written notification to the Director not more than 30 days
11 after the Taxpayer makes or receives a proposal that would
12 transfer the Taxpayer's State tax liability obligations to
13 a successor Taxpayer.
14 (9) A detailed description of the number of New
15 Employees to be hired, and the occupation and payroll of
16 the full-time jobs to be created or retained as a result of
17 the project.
18 (10) The minimum investment the green energy
19 enterprise will make in capital improvements, the time
20 period for placing the property in service, and the
21 designated green energy production of the project.
22 (11) A requirement that the Taxpayer shall provide
23 written notification to the Director and the Committee not
24 more than 30 days after the Taxpayer determines that the
25 minimum job creation or retention, employment payroll, or
26 investment no longer is being or will be achieved or

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1 maintained as set forth in the terms and conditions of the
2 Agreement.
3 (12) A provision that, if the total number of New
4 Employees falls below a specified level, the allowance of
5 Credit shall be suspended until the number of New
6 Employees equals or exceeds the Agreement amount.
7 (13) A detailed description of the items for which the
8 costs incurred by the Taxpayer will be included in the
9 limitation on the Credit provided in Section 5-40.
10 (14) A provision that, if the Taxpayer never meets
11 either the investment or job creation and retention
12 requirements specified in the Agreement during the entire
13 5-year period beginning on the first day of the first
14 taxable year in which the Agreement is executed and ending
15 on the last day of the fifth taxable year after the
16 Agreement is executed, then the Agreement is automatically
17 terminated on the last day of the fifth taxable year after
18 the Agreement is executed and the Taxpayer is not entitled
19 to the award of any credits for any of that 5-year period.
20 (15) A provision specifying that, if the Taxpayer
21 ceases principal operations with the intent to shut down
22 the project in the Energy Transition Zone permanently
23 during the term of the Agreement, then the entire credit
24 amount awarded to the Taxpayer prior to the date the
25 Taxpayer ceases principal operations shall be returned to
26 the Department.

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1 (16) Any other performance conditions or contract
2 provisions as the Department determines are appropriate.
3 The Department shall post on its website the terms of each
4 Agreement entered into under this Act. Such information
5 shall be posted within 10 days after entering into the
6 Agreement and must include the following:
7 (A) the name of the recipient business;
8 (B) the location of the project;
9 (C) the estimated value of the credit;
10 (C) the number of new jobs and, if applicable,
11 retained jobs pledged as a result of the project; and
12 (E) whether or not the project is located in an
13 underserved area.
14 Section 5-60. Certificate of verification; submission to
15the Department of Revenue. A Taxpayer claiming a Credit under
16this Act shall submit to the Department of Revenue a copy of
17the Director's certificate of verification under this Act for
18the taxable year. However, failure to submit a copy of the
19certificate with the Taxpayer's tax return shall not
20invalidate a claim for a Credit.
21 For a Taxpayer to be eligible for a certificate of
22verification, the Taxpayer shall provide proof as required by
23the Department prior to the end of each calendar year,
24including, but not limited to, attestation by the Taxpayer
25that:

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1 (1) The project has substantially achieved the level
2 of new full-time jobs in the Energy Transition Zone, as
3 specified in its Agreement.
4 (2) The project has substantially achieved the level
5 of annual payroll in the Energy Transition Zone, as
6 specified in its Agreement.
7 (3) The project has substantially achieved the level
8 of capital investment in the Energy Transition Zone, as
9 specified in its Agreement;
10 (4) The project has assisted in the development of
11 green energy production in the Energy Transition Zone, as
12 specified in its Agreement.
13 Section 5-65. Supplier diversity. Each taxpayer claiming
14a credit under this Act shall, no later than April 15 of each
15taxable year for which the taxpayer claims a credit under this
16Act, submit to the Department of Commerce and Economic
17Opportunity an annual report containing the information
18described in subsections (b), (c), (d), and (e) of Section
195-117 of the Public Utilities Act. Those reports shall be
20submitted in the form and manner required by the Department of
21Commerce and Economic Opportunity.
22 Section 5-70. Pass through entities.
23 (a) For partners, shareholders of Subchapter S
24corporations, and owners of limited liability companies, if

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1the liability company is treated as a partnership for purposes
2of federal and State income taxation, there is allowed a
3credit under this Section to be determined in accordance with
4the determination of income and distributive share of income
5under Sections 702 and 704 and Subchapter S of the Internal
6Revenue Code.
7 (b) The Credit provided under subsection (a) is in
8addition to any Credit to which a shareholder or partner is
9otherwise entitled under a separate Agreement under this Act.
10A pass through entity and a shareholder or partner of the pass
11through entity may not claim more than one Credit under the
12same Agreement.
13 Section 5-75. Noncompliance; notice; assessment. If the
14Director determines that a Taxpayer who has received a Credit
15under this Act is not complying with the requirements of the
16Agreement or all of the provisions of this Act, the Director
17shall provide notice to the Taxpayer of the alleged
18noncompliance, and allow the Taxpayer a hearing under the
19provisions of the Illinois Administrative Procedure Act. If,
20after such notice and any hearing, the Director determines
21that a noncompliance exists, the Director shall issue to the
22Department of Revenue notice to that effect, stating the
23Noncompliance Date. If, during the term of an Agreement, the
24Taxpayer ceases operations at a project location that is the
25subject of that Agreement with the intent to terminate

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1operations in the Energy Transition Zone, the Department and
2the Department of Revenue shall recapture from the Taxpayer
3the entire Credit amount awarded under that Agreement prior to
4the date the taxpayer ceases operations. The Department shall,
5subject to appropriation, reallocate the recaptured amounts to
6the local workforce investment area in which the project was
7located for the purposes of workforce development, expanded
8opportunities for unemployed persons, and expanded
9opportunities for women and minorities in the workforce.
10 Section 5-80. Annual report. On or before July 1 each
11year, the Committee shall submit a report to the Department on
12the tax credit program under this Act to the Governor and the
13General Assembly. The report shall include information on the
14number of Agreements that were entered into under this Act
15during the preceding calendar year, a description of the
16project that is the subject of each Agreement, an update on the
17status of projects under Agreements entered into before the
18preceding calendar year, and the sum of the Credits awarded
19under this Act. A copy of the report shall be delivered to the
20Governor and to each member of the General Assembly.
21 The report must include, for each Agreement:
22 (1) the original estimates of the value of the Credit
23 and the number of new jobs to be created and, if
24 applicable, the number of retained jobs;
25 (2) any relevant modifications to existing Agreements;

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1 (3) a statement of the progress made by each Taxpayer
2 in meeting the terms of the original Agreement;
3 (4) a statement of wages paid to New Employees and, if
4 applicable, retained employees in the State;
5 (5) any information reported under Section 5-65 of
6 this Act; and
7 (6) a copy of the original Agreement.
8 Section 5-85. Evaluation of tax credit program. On a
9biennial basis, the Department shall evaluate the tax credit
10program. The evaluation shall include an assessment of the
11effectiveness of the program in creating new jobs in Illinois
12and of the revenue impact of the program, and may include a
13review of the practices and experiences of other states with
14similar programs. The Director shall submit a report on the
15evaluation to the Governor and the General Assembly after June
1630 and before November 1 in each odd-numbered year.
17 Section 5-90. Adoption of rules. The Department may adopt
18rules necessary to implement this Act. The rules may provide
19for recipients of Credits under this Act to be charged fees to
20cover administrative costs of the tax credit program. Fees
21collected shall be deposited into the Energy Transition Fund.
22 Section 5-95. The Energy Transition Fund.
23 (a) The Energy Transition Fund is established as a special

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1fund within the State treasury to be used exclusively for the
2purposes of this Act, including paying for the costs of
3administering this Act. The Fund shall be administered by the
4Department.
5 (b) The Fund consists of collected fees, appropriations
6from the General Assembly, and gifts and grants to the Fund.
7 (c) The State Treasurer shall invest the money in the Fund
8not currently needed to meet the obligations of the Fund in the
9same manner as other public funds may be invested. Interest
10that accrues from these investments shall be deposited into
11the Fund.
12 (d) The money in the Fund at the end of a State fiscal year
13remains in the Fund to be used exclusively for the purposes of
14this Act. Expenditures from the Fund are subject to
15appropriation by the General Assembly.
16 Section 5-100. Program terms and conditions.
17 (a) Any documentary materials or data made available or
18received by any member of a Committee or any agent or employee
19of the Department shall be deemed confidential and shall not
20be deemed public records to the extent that the materials or
21data consists of trade secrets, commercial or financial
22information regarding the operation of the business conducted
23by the Applicant for or recipient of any tax credit under this
24Act, or any information regarding the competitive position of
25a business in a particular field of endeavor.

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1 (b) Nothing in this Act shall be construed as creating any
2rights in any Applicant to enter into an Agreement or in any
3person to challenge the terms of any Agreement.
4
Article 10. Amendatory Provisions
5 Section 10-5. The Illinois Administrative Procedure Act is
6amended by changing Section 5-45 as follows:
7 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
8 Sec. 5-45. Emergency rulemaking.
9 (a) "Emergency" means the existence of any situation that
10any agency finds reasonably constitutes a threat to the public
11interest, safety, or welfare.
12 (b) If any agency finds that an emergency exists that
13requires adoption of a rule upon fewer days than is required by
14Section 5-40 and states in writing its reasons for that
15finding, the agency may adopt an emergency rule without prior
16notice or hearing upon filing a notice of emergency rulemaking
17with the Secretary of State under Section 5-70. The notice
18shall include the text of the emergency rule and shall be
19published in the Illinois Register. Consent orders or other
20court orders adopting settlements negotiated by an agency may
21be adopted under this Section. Subject to applicable
22constitutional or statutory provisions, an emergency rule
23becomes effective immediately upon filing under Section 5-65

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1or at a stated date less than 10 days thereafter. The agency's
2finding and a statement of the specific reasons for the
3finding shall be filed with the rule. The agency shall take
4reasonable and appropriate measures to make emergency rules
5known to the persons who may be affected by them.
6 (c) An emergency rule may be effective for a period of not
7longer than 150 days, but the agency's authority to adopt an
8identical rule under Section 5-40 is not precluded. No
9emergency rule may be adopted more than once in any 24-month
10period, except that this limitation on the number of emergency
11rules that may be adopted in a 24-month period does not apply
12to (i) emergency rules that make additions to and deletions
13from the Drug Manual under Section 5-5.16 of the Illinois
14Public Aid Code or the generic drug formulary under Section
153.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
16emergency rules adopted by the Pollution Control Board before
17July 1, 1997 to implement portions of the Livestock Management
18Facilities Act, (iii) emergency rules adopted by the Illinois
19Department of Public Health under subsections (a) through (i)
20of Section 2 of the Department of Public Health Act when
21necessary to protect the public's health, (iv) emergency rules
22adopted pursuant to subsection (n) of this Section, (v)
23emergency rules adopted pursuant to subsection (o) of this
24Section, or (vi) emergency rules adopted pursuant to
25subsection (c-5) of this Section. Two or more emergency rules
26having substantially the same purpose and effect shall be

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1deemed to be a single rule for purposes of this Section.
2 (c-5) To facilitate the maintenance of the program of
3group health benefits provided to annuitants, survivors, and
4retired employees under the State Employees Group Insurance
5Act of 1971, rules to alter the contributions to be paid by the
6State, annuitants, survivors, retired employees, or any
7combination of those entities, for that program of group
8health benefits, shall be adopted as emergency rules. The
9adoption of those rules shall be considered an emergency and
10necessary for the public interest, safety, and welfare.
11 (d) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 1999 budget,
13emergency rules to implement any provision of Public Act
1490-587 or 90-588 or any other budget initiative for fiscal
15year 1999 may be adopted in accordance with this Section by the
16agency charged with administering that provision or
17initiative, except that the 24-month limitation on the
18adoption of emergency rules and the provisions of Sections
195-115 and 5-125 do not apply to rules adopted under this
20subsection (d). The adoption of emergency rules authorized by
21this subsection (d) shall be deemed to be necessary for the
22public interest, safety, and welfare.
23 (e) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2000 budget,
25emergency rules to implement any provision of Public Act 91-24
26or any other budget initiative for fiscal year 2000 may be

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1adopted in accordance with this Section by the agency charged
2with administering that provision or initiative, except that
3the 24-month limitation on the adoption of emergency rules and
4the provisions of Sections 5-115 and 5-125 do not apply to
5rules adopted under this subsection (e). The adoption of
6emergency rules authorized by this subsection (e) shall be
7deemed to be necessary for the public interest, safety, and
8welfare.
9 (f) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2001 budget,
11emergency rules to implement any provision of Public Act
1291-712 or any other budget initiative for fiscal year 2001 may
13be adopted in accordance with this Section by the agency
14charged with administering that provision or initiative,
15except that the 24-month limitation on the adoption of
16emergency rules and the provisions of Sections 5-115 and 5-125
17do not apply to rules adopted under this subsection (f). The
18adoption of emergency rules authorized by this subsection (f)
19shall be deemed to be necessary for the public interest,
20safety, and welfare.
21 (g) In order to provide for the expeditious and timely
22implementation of the State's fiscal year 2002 budget,
23emergency rules to implement any provision of Public Act 92-10
24or any other budget initiative for fiscal year 2002 may be
25adopted in accordance with this Section by the agency charged
26with administering that provision or initiative, except that

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1the 24-month limitation on the adoption of emergency rules and
2the provisions of Sections 5-115 and 5-125 do not apply to
3rules adopted under this subsection (g). The adoption of
4emergency rules authorized by this subsection (g) shall be
5deemed to be necessary for the public interest, safety, and
6welfare.
7 (h) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 2003 budget,
9emergency rules to implement any provision of Public Act
1092-597 or any other budget initiative for fiscal year 2003 may
11be adopted in accordance with this Section by the agency
12charged with administering that provision or initiative,
13except that the 24-month limitation on the adoption of
14emergency rules and the provisions of Sections 5-115 and 5-125
15do not apply to rules adopted under this subsection (h). The
16adoption of emergency rules authorized by this subsection (h)
17shall be deemed to be necessary for the public interest,
18safety, and welfare.
19 (i) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2004 budget,
21emergency rules to implement any provision of Public Act 93-20
22or any other budget initiative for fiscal year 2004 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

SB1747- 61 -LRB102 12964 HLH 18307 b
1rules adopted under this subsection (i). The adoption of
2emergency rules authorized by this subsection (i) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5 (j) In order to provide for the expeditious and timely
6implementation of the provisions of the State's fiscal year
72005 budget as provided under the Fiscal Year 2005 Budget
8Implementation (Human Services) Act, emergency rules to
9implement any provision of the Fiscal Year 2005 Budget
10Implementation (Human Services) Act may be adopted in
11accordance with this Section by the agency charged with
12administering that provision, except that the 24-month
13limitation on the adoption of emergency rules and the
14provisions of Sections 5-115 and 5-125 do not apply to rules
15adopted under this subsection (j). The Department of Public
16Aid may also adopt rules under this subsection (j) necessary
17to administer the Illinois Public Aid Code and the Children's
18Health Insurance Program Act. The adoption of emergency rules
19authorized by this subsection (j) shall be deemed to be
20necessary for the public interest, safety, and welfare.
21 (k) In order to provide for the expeditious and timely
22implementation of the provisions of the State's fiscal year
232006 budget, emergency rules to implement any provision of
24Public Act 94-48 or any other budget initiative for fiscal
25year 2006 may be adopted in accordance with this Section by the
26agency charged with administering that provision or

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1initiative, except that the 24-month limitation on the
2adoption of emergency rules and the provisions of Sections
35-115 and 5-125 do not apply to rules adopted under this
4subsection (k). The Department of Healthcare and Family
5Services may also adopt rules under this subsection (k)
6necessary to administer the Illinois Public Aid Code, the
7Senior Citizens and Persons with Disabilities Property Tax
8Relief Act, the Senior Citizens and Disabled Persons
9Prescription Drug Discount Program Act (now the Illinois
10Prescription Drug Discount Program Act), and the Children's
11Health Insurance Program Act. The adoption of emergency rules
12authorized by this subsection (k) shall be deemed to be
13necessary for the public interest, safety, and welfare.
14 (l) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162007 budget, the Department of Healthcare and Family Services
17may adopt emergency rules during fiscal year 2007, including
18rules effective July 1, 2007, in accordance with this
19subsection to the extent necessary to administer the
20Department's responsibilities with respect to amendments to
21the State plans and Illinois waivers approved by the federal
22Centers for Medicare and Medicaid Services necessitated by the
23requirements of Title XIX and Title XXI of the federal Social
24Security Act. The adoption of emergency rules authorized by
25this subsection (l) shall be deemed to be necessary for the
26public interest, safety, and welfare.

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1 (m) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32008 budget, the Department of Healthcare and Family Services
4may adopt emergency rules during fiscal year 2008, including
5rules effective July 1, 2008, in accordance with this
6subsection to the extent necessary to administer the
7Department's responsibilities with respect to amendments to
8the State plans and Illinois waivers approved by the federal
9Centers for Medicare and Medicaid Services necessitated by the
10requirements of Title XIX and Title XXI of the federal Social
11Security Act. The adoption of emergency rules authorized by
12this subsection (m) shall be deemed to be necessary for the
13public interest, safety, and welfare.
14 (n) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162010 budget, emergency rules to implement any provision of
17Public Act 96-45 or any other budget initiative authorized by
18the 96th General Assembly for fiscal year 2010 may be adopted
19in accordance with this Section by the agency charged with
20administering that provision or initiative. The adoption of
21emergency rules authorized by this subsection (n) shall be
22deemed to be necessary for the public interest, safety, and
23welfare. The rulemaking authority granted in this subsection
24(n) shall apply only to rules promulgated during Fiscal Year
252010.
26 (o) In order to provide for the expeditious and timely

SB1747- 64 -LRB102 12964 HLH 18307 b
1implementation of the provisions of the State's fiscal year
22011 budget, emergency rules to implement any provision of
3Public Act 96-958 or any other budget initiative authorized by
4the 96th General Assembly for fiscal year 2011 may be adopted
5in accordance with this Section by the agency charged with
6administering that provision or initiative. The adoption of
7emergency rules authorized by this subsection (o) is deemed to
8be necessary for the public interest, safety, and welfare. The
9rulemaking authority granted in this subsection (o) applies
10only to rules promulgated on or after July 1, 2010 (the
11effective date of Public Act 96-958) through June 30, 2011.
12 (p) In order to provide for the expeditious and timely
13implementation of the provisions of Public Act 97-689,
14emergency rules to implement any provision of Public Act
1597-689 may be adopted in accordance with this subsection (p)
16by the agency charged with administering that provision or
17initiative. The 150-day limitation of the effective period of
18emergency rules does not apply to rules adopted under this
19subsection (p), and the effective period may continue through
20June 30, 2013. The 24-month limitation on the adoption of
21emergency rules does not apply to rules adopted under this
22subsection (p). The adoption of emergency rules authorized by
23this subsection (p) is deemed to be necessary for the public
24interest, safety, and welfare.
25 (q) In order to provide for the expeditious and timely
26implementation of the provisions of Articles 7, 8, 9, 11, and

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112 of Public Act 98-104, emergency rules to implement any
2provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
3may be adopted in accordance with this subsection (q) by the
4agency charged with administering that provision or
5initiative. The 24-month limitation on the adoption of
6emergency rules does not apply to rules adopted under this
7subsection (q). The adoption of emergency rules authorized by
8this subsection (q) is deemed to be necessary for the public
9interest, safety, and welfare.
10 (r) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 98-651,
12emergency rules to implement Public Act 98-651 may be adopted
13in accordance with this subsection (r) by the Department of
14Healthcare and Family Services. The 24-month limitation on the
15adoption of emergency rules does not apply to rules adopted
16under this subsection (r). The adoption of emergency rules
17authorized by this subsection (r) is deemed to be necessary
18for the public interest, safety, and welfare.
19 (s) In order to provide for the expeditious and timely
20implementation of the provisions of Sections 5-5b.1 and 5A-2
21of the Illinois Public Aid Code, emergency rules to implement
22any provision of Section 5-5b.1 or Section 5A-2 of the
23Illinois Public Aid Code may be adopted in accordance with
24this subsection (s) by the Department of Healthcare and Family
25Services. The rulemaking authority granted in this subsection
26(s) shall apply only to those rules adopted prior to July 1,

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12015. Notwithstanding any other provision of this Section, any
2emergency rule adopted under this subsection (s) shall only
3apply to payments made for State fiscal year 2015. The
4adoption of emergency rules authorized by this subsection (s)
5is deemed to be necessary for the public interest, safety, and
6welfare.
7 (t) In order to provide for the expeditious and timely
8implementation of the provisions of Article II of Public Act
999-6, emergency rules to implement the changes made by Article
10II of Public Act 99-6 to the Emergency Telephone System Act may
11be adopted in accordance with this subsection (t) by the
12Department of State Police. The rulemaking authority granted
13in this subsection (t) shall apply only to those rules adopted
14prior to July 1, 2016. The 24-month limitation on the adoption
15of emergency rules does not apply to rules adopted under this
16subsection (t). The adoption of emergency rules authorized by
17this subsection (t) is deemed to be necessary for the public
18interest, safety, and welfare.
19 (u) In order to provide for the expeditious and timely
20implementation of the provisions of the Burn Victims Relief
21Act, emergency rules to implement any provision of the Act may
22be adopted in accordance with this subsection (u) by the
23Department of Insurance. The rulemaking authority granted in
24this subsection (u) shall apply only to those rules adopted
25prior to December 31, 2015. The adoption of emergency rules
26authorized by this subsection (u) is deemed to be necessary

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1for the public interest, safety, and welfare.
2 (v) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 99-516,
4emergency rules to implement Public Act 99-516 may be adopted
5in accordance with this subsection (v) by the Department of
6Healthcare and Family Services. The 24-month limitation on the
7adoption of emergency rules does not apply to rules adopted
8under this subsection (v). The adoption of emergency rules
9authorized by this subsection (v) is deemed to be necessary
10for the public interest, safety, and welfare.
11 (w) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 99-796,
13emergency rules to implement the changes made by Public Act
1499-796 may be adopted in accordance with this subsection (w)
15by the Adjutant General. The adoption of emergency rules
16authorized by this subsection (w) is deemed to be necessary
17for the public interest, safety, and welfare.
18 (x) In order to provide for the expeditious and timely
19implementation of the provisions of Public Act 99-906,
20emergency rules to implement subsection (i) of Section
2116-115D, subsection (g) of Section 16-128A, and subsection (a)
22of Section 16-128B of the Public Utilities Act may be adopted
23in accordance with this subsection (x) by the Illinois
24Commerce Commission. The rulemaking authority granted in this
25subsection (x) shall apply only to those rules adopted within
26180 days after June 1, 2017 (the effective date of Public Act

SB1747- 68 -LRB102 12964 HLH 18307 b
199-906). The adoption of emergency rules authorized by this
2subsection (x) is deemed to be necessary for the public
3interest, safety, and welfare.
4 (y) In order to provide for the expeditious and timely
5implementation of the provisions of Public Act 100-23,
6emergency rules to implement the changes made by Public Act
7100-23 to Section 4.02 of the Illinois Act on the Aging,
8Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
9Section 55-30 of the Alcoholism and Other Drug Abuse and
10Dependency Act, and Sections 74 and 75 of the Mental Health and
11Developmental Disabilities Administrative Act may be adopted
12in accordance with this subsection (y) by the respective
13Department. The adoption of emergency rules authorized by this
14subsection (y) is deemed to be necessary for the public
15interest, safety, and welfare.
16 (z) In order to provide for the expeditious and timely
17implementation of the provisions of Public Act 100-554,
18emergency rules to implement the changes made by Public Act
19100-554 to Section 4.7 of the Lobbyist Registration Act may be
20adopted in accordance with this subsection (z) by the
21Secretary of State. The adoption of emergency rules authorized
22by this subsection (z) is deemed to be necessary for the public
23interest, safety, and welfare.
24 (aa) In order to provide for the expeditious and timely
25initial implementation of the changes made to Articles 5, 5A,
2612, and 14 of the Illinois Public Aid Code under the provisions

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1of Public Act 100-581, the Department of Healthcare and Family
2Services may adopt emergency rules in accordance with this
3subsection (aa). The 24-month limitation on the adoption of
4emergency rules does not apply to rules to initially implement
5the changes made to Articles 5, 5A, 12, and 14 of the Illinois
6Public Aid Code adopted under this subsection (aa). The
7adoption of emergency rules authorized by this subsection (aa)
8is deemed to be necessary for the public interest, safety, and
9welfare.
10 (bb) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 100-587,
12emergency rules to implement the changes made by Public Act
13100-587 to Section 4.02 of the Illinois Act on the Aging,
14Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
15subsection (b) of Section 55-30 of the Alcoholism and Other
16Drug Abuse and Dependency Act, Section 5-104 of the
17Specialized Mental Health Rehabilitation Act of 2013, and
18Section 75 and subsection (b) of Section 74 of the Mental
19Health and Developmental Disabilities Administrative Act may
20be adopted in accordance with this subsection (bb) by the
21respective Department. The adoption of emergency rules
22authorized by this subsection (bb) is deemed to be necessary
23for the public interest, safety, and welfare.
24 (cc) In order to provide for the expeditious and timely
25implementation of the provisions of Public Act 100-587,
26emergency rules may be adopted in accordance with this

SB1747- 70 -LRB102 12964 HLH 18307 b
1subsection (cc) to implement the changes made by Public Act
2100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
3Pension Code by the Board created under Article 14 of the Code;
4Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
5the Board created under Article 15 of the Code; and Sections
616-190.5 and 16-190.6 of the Illinois Pension Code by the
7Board created under Article 16 of the Code. The adoption of
8emergency rules authorized by this subsection (cc) is deemed
9to be necessary for the public interest, safety, and welfare.
10 (dd) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 100-864,
12emergency rules to implement the changes made by Public Act
13100-864 to Section 3.35 of the Newborn Metabolic Screening Act
14may be adopted in accordance with this subsection (dd) by the
15Secretary of State. The adoption of emergency rules authorized
16by this subsection (dd) is deemed to be necessary for the
17public interest, safety, and welfare.
18 (ee) In order to provide for the expeditious and timely
19implementation of the provisions of Public Act 100-1172,
20emergency rules implementing the Illinois Underground Natural
21Gas Storage Safety Act may be adopted in accordance with this
22subsection by the Department of Natural Resources. The
23adoption of emergency rules authorized by this subsection is
24deemed to be necessary for the public interest, safety, and
25welfare.
26 (ff) In order to provide for the expeditious and timely

SB1747- 71 -LRB102 12964 HLH 18307 b
1initial implementation of the changes made to Articles 5A and
214 of the Illinois Public Aid Code under the provisions of
3Public Act 100-1181, the Department of Healthcare and Family
4Services may on a one-time-only basis adopt emergency rules in
5accordance with this subsection (ff). The 24-month limitation
6on the adoption of emergency rules does not apply to rules to
7initially implement the changes made to Articles 5A and 14 of
8the Illinois Public Aid Code adopted under this subsection
9(ff). The adoption of emergency rules authorized by this
10subsection (ff) is deemed to be necessary for the public
11interest, safety, and welfare.
12 (gg) In order to provide for the expeditious and timely
13implementation of the provisions of Public Act 101-1,
14emergency rules may be adopted by the Department of Labor in
15accordance with this subsection (gg) to implement the changes
16made by Public Act 101-1 to the Minimum Wage Law. The adoption
17of emergency rules authorized by this subsection (gg) is
18deemed to be necessary for the public interest, safety, and
19welfare.
20 (hh) In order to provide for the expeditious and timely
21implementation of the provisions of Public Act 101-10,
22emergency rules may be adopted in accordance with this
23subsection (hh) to implement the changes made by Public Act
24101-10 to subsection (j) of Section 5-5.2 of the Illinois
25Public Aid Code. The adoption of emergency rules authorized by
26this subsection (hh) is deemed to be necessary for the public

SB1747- 72 -LRB102 12964 HLH 18307 b
1interest, safety, and welfare.
2 (ii) In order to provide for the expeditious and timely
3implementation of the provisions of Public Act 101-10,
4emergency rules to implement the changes made by Public Act
5101-10 to Sections 5-5.4 and 5-5.4i of the Illinois Public Aid
6Code may be adopted in accordance with this subsection (ii) by
7the Department of Public Health. The adoption of emergency
8rules authorized by this subsection (ii) is deemed to be
9necessary for the public interest, safety, and welfare.
10 (jj) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 101-10,
12emergency rules to implement the changes made by Public Act
13101-10 to Section 74 of the Mental Health and Developmental
14Disabilities Administrative Act may be adopted in accordance
15with this subsection (jj) by the Department of Human Services.
16The adoption of emergency rules authorized by this subsection
17(jj) is deemed to be necessary for the public interest,
18safety, and welfare.
19 (kk) In order to provide for the expeditious and timely
20implementation of the Cannabis Regulation and Tax Act and
21Public Act 101-27, the Department of Revenue, the Department
22of Public Health, the Department of Agriculture, the
23Department of State Police, and the Department of Financial
24and Professional Regulation may adopt emergency rules in
25accordance with this subsection (kk). The rulemaking authority
26granted in this subsection (kk) shall apply only to rules

SB1747- 73 -LRB102 12964 HLH 18307 b
1adopted before December 31, 2021. Notwithstanding the
2provisions of subsection (c), emergency rules adopted under
3this subsection (kk) shall be effective for 180 days. The
4adoption of emergency rules authorized by this subsection (kk)
5is deemed to be necessary for the public interest, safety, and
6welfare.
7 (ll) In order to provide for the expeditious and timely
8implementation of the provisions of the Leveling the Playing
9Field for Illinois Retail Act, emergency rules may be adopted
10in accordance with this subsection (ll) to implement the
11changes made by the Leveling the Playing Field for Illinois
12Retail Act. The adoption of emergency rules authorized by this
13subsection (ll) is deemed to be necessary for the public
14interest, safety, and welfare.
15 (mm) In order to provide for the expeditious and timely
16implementation of the provisions of Section 25-70 of the
17Sports Wagering Act, emergency rules to implement Section
1825-70 of the Sports Wagering Act may be adopted in accordance
19with this subsection (mm) by the Department of the Lottery as
20provided in the Sports Wagering Act. The adoption of emergency
21rules authorized by this subsection (mm) is deemed to be
22necessary for the public interest, safety, and welfare.
23 (nn) In order to provide for the expeditious and timely
24implementation of the Sports Wagering Act, emergency rules to
25implement the Sports Wagering Act may be adopted in accordance
26with this subsection (nn) by the Illinois Gaming Board. The

SB1747- 74 -LRB102 12964 HLH 18307 b
1adoption of emergency rules authorized by this subsection (nn)
2is deemed to be necessary for the public interest, safety, and
3welfare.
4 (oo) In order to provide for the expeditious and timely
5implementation of the provisions of subsection (c) of Section
620 of the Video Gaming Act, emergency rules to implement the
7provisions of subsection (c) of Section 20 of the Video Gaming
8Act may be adopted in accordance with this subsection (oo) by
9the Illinois Gaming Board. The adoption of emergency rules
10authorized by this subsection (oo) is deemed to be necessary
11for the public interest, safety, and welfare.
12 (pp) In order to provide for the expeditious and timely
13implementation of the provisions of Section 50 of the Sexual
14Assault Evidence Submission Act, emergency rules to implement
15Section 50 of the Sexual Assault Evidence Submission Act may
16be adopted in accordance with this subsection (pp) by the
17Department of State Police. The adoption of emergency rules
18authorized by this subsection (pp) is deemed to be necessary
19for the public interest, safety, and welfare.
20 (qq) In order to provide for the expeditious and timely
21implementation of the provisions of the Illinois Works Jobs
22Program Act, emergency rules may be adopted in accordance with
23this subsection (qq) to implement the Illinois Works Jobs
24Program Act. The adoption of emergency rules authorized by
25this subsection (qq) is deemed to be necessary for the public
26interest, safety, and welfare.

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1 (rr) In order to provide for the expeditious and timely
2implementation of the Illinois Energy Transition Zone Act,
3emergency rules to implement the provisions of subsection
4(a-5) of Section 1-40 of the Illinois Energy Transition Zone
5Act may be adopted in accordance with this subsection (aa) by
6the Department of Commerce and Economic Opportunity for period
7of 12 months after the effective date of the Illinois Energy
8Transition Zone Act. The adoption of emergency rules
9authorized by this subsection (aa) is deemed to be necessary
10for the public interest, safety, and welfare.
11(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
12100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
136-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
14100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
153-8-19; 101-1, eff. 2-19-19; 101-10, Article 20, Section 20-5,
16eff. 6-5-19; 101-10, Article 35, Section 35-5, eff. 6-5-19;
17101-27, eff. 6-25-19; 101-31, Article 15, Section 15-5, eff.
186-28-19; 101-31, Article 25, Section 25-900, eff. 6-28-19;
19101-31, Article 35, Section 35-3, eff. 6-28-19; 101-377, eff.
208-16-19; 101-601, eff. 12-10-19.)
21 Section 10-10. The State Finance Act is amended by adding
22Section 5.935 as follows:
23 (30 ILCS 105/5.935 new)
24 Sec. 5.935. The Energy Transition Fund.

SB1747- 76 -LRB102 12964 HLH 18307 b
1 Section 10-15. The State Mandates Act is amended by adding
2Section 8.45 as follows:
3 (30 ILCS 805/8.45 new)
4 Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
58 of this Act, no reimbursement by the State is required for
6the implementation of any mandate created by this amendatory
7Act of the 102nd General Assembly.
8 Section 10-20. The Illinois Income Tax Act is amended by
9changing Section 201 as follows:
10 (35 ILCS 5/201)
11 (Text of Section without the changes made by P.A. 101-8,
12which did not take effect (see Section 99 of P.A. 101-8))
13 Sec. 201. Tax imposed.
14 (a) In general. A tax measured by net income is hereby
15imposed on every individual, corporation, trust and estate for
16each taxable year ending after July 31, 1969 on the privilege
17of earning or receiving income in or as a resident of this
18State. Such tax shall be in addition to all other occupation or
19privilege taxes imposed by this State or by any municipal
20corporation or political subdivision thereof.
21 (b) Rates. The tax imposed by subsection (a) of this
22Section shall be determined as follows, except as adjusted by

SB1747- 77 -LRB102 12964 HLH 18307 b
1subsection (d-1):
2 (1) In the case of an individual, trust or estate, for
3 taxable years ending prior to July 1, 1989, an amount
4 equal to 2 1/2% of the taxpayer's net income for the
5 taxable year.
6 (2) In the case of an individual, trust or estate, for
7 taxable years beginning prior to July 1, 1989 and ending
8 after June 30, 1989, an amount equal to the sum of (i) 2
9 1/2% of the taxpayer's net income for the period prior to
10 July 1, 1989, as calculated under Section 202.3, and (ii)
11 3% of the taxpayer's net income for the period after June
12 30, 1989, as calculated under Section 202.3.
13 (3) In the case of an individual, trust or estate, for
14 taxable years beginning after June 30, 1989, and ending
15 prior to January 1, 2011, an amount equal to 3% of the
16 taxpayer's net income for the taxable year.
17 (4) In the case of an individual, trust, or estate,
18 for taxable years beginning prior to January 1, 2011, and
19 ending after December 31, 2010, an amount equal to the sum
20 of (i) 3% of the taxpayer's net income for the period prior
21 to January 1, 2011, as calculated under Section 202.5, and
22 (ii) 5% of the taxpayer's net income for the period after
23 December 31, 2010, as calculated under Section 202.5.
24 (5) In the case of an individual, trust, or estate,
25 for taxable years beginning on or after January 1, 2011,
26 and ending prior to January 1, 2015, an amount equal to 5%

SB1747- 78 -LRB102 12964 HLH 18307 b
1 of the taxpayer's net income for the taxable year.
2 (5.1) In the case of an individual, trust, or estate,
3 for taxable years beginning prior to January 1, 2015, and
4 ending after December 31, 2014, an amount equal to the sum
5 of (i) 5% of the taxpayer's net income for the period prior
6 to January 1, 2015, as calculated under Section 202.5, and
7 (ii) 3.75% of the taxpayer's net income for the period
8 after December 31, 2014, as calculated under Section
9 202.5.
10 (5.2) In the case of an individual, trust, or estate,
11 for taxable years beginning on or after January 1, 2015,
12 and ending prior to July 1, 2017, an amount equal to 3.75%
13 of the taxpayer's net income for the taxable year.
14 (5.3) In the case of an individual, trust, or estate,
15 for taxable years beginning prior to July 1, 2017, and
16 ending after June 30, 2017, an amount equal to the sum of
17 (i) 3.75% of the taxpayer's net income for the period
18 prior to July 1, 2017, as calculated under Section 202.5,
19 and (ii) 4.95% of the taxpayer's net income for the period
20 after June 30, 2017, as calculated under Section 202.5.
21 (5.4) In the case of an individual, trust, or estate,
22 for taxable years beginning on or after July 1, 2017, an
23 amount equal to 4.95% of the taxpayer's net income for the
24 taxable year.
25 (6) In the case of a corporation, for taxable years
26 ending prior to July 1, 1989, an amount equal to 4% of the

SB1747- 79 -LRB102 12964 HLH 18307 b
1 taxpayer's net income for the taxable year.
2 (7) In the case of a corporation, for taxable years
3 beginning prior to July 1, 1989 and ending after June 30,
4 1989, an amount equal to the sum of (i) 4% of the
5 taxpayer's net income for the period prior to July 1,
6 1989, as calculated under Section 202.3, and (ii) 4.8% of
7 the taxpayer's net income for the period after June 30,
8 1989, as calculated under Section 202.3.
9 (8) In the case of a corporation, for taxable years
10 beginning after June 30, 1989, and ending prior to January
11 1, 2011, an amount equal to 4.8% of the taxpayer's net
12 income for the taxable year.
13 (9) In the case of a corporation, for taxable years
14 beginning prior to January 1, 2011, and ending after
15 December 31, 2010, an amount equal to the sum of (i) 4.8%
16 of the taxpayer's net income for the period prior to
17 January 1, 2011, as calculated under Section 202.5, and
18 (ii) 7% of the taxpayer's net income for the period after
19 December 31, 2010, as calculated under Section 202.5.
20 (10) In the case of a corporation, for taxable years
21 beginning on or after January 1, 2011, and ending prior to
22 January 1, 2015, an amount equal to 7% of the taxpayer's
23 net income for the taxable year.
24 (11) In the case of a corporation, for taxable years
25 beginning prior to January 1, 2015, and ending after
26 December 31, 2014, an amount equal to the sum of (i) 7% of

SB1747- 80 -LRB102 12964 HLH 18307 b
1 the taxpayer's net income for the period prior to January
2 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
3 of the taxpayer's net income for the period after December
4 31, 2014, as calculated under Section 202.5.
5 (12) In the case of a corporation, for taxable years
6 beginning on or after January 1, 2015, and ending prior to
7 July 1, 2017, an amount equal to 5.25% of the taxpayer's
8 net income for the taxable year.
9 (13) In the case of a corporation, for taxable years
10 beginning prior to July 1, 2017, and ending after June 30,
11 2017, an amount equal to the sum of (i) 5.25% of the
12 taxpayer's net income for the period prior to July 1,
13 2017, as calculated under Section 202.5, and (ii) 7% of
14 the taxpayer's net income for the period after June 30,
15 2017, as calculated under Section 202.5.
16 (14) In the case of a corporation, for taxable years
17 beginning on or after July 1, 2017, an amount equal to 7%
18 of the taxpayer's net income for the taxable year.
19 The rates under this subsection (b) are subject to the
20provisions of Section 201.5.
21 (b-5) Surcharge; sale or exchange of assets, properties,
22and intangibles of organization gaming licensees. For each of
23taxable years 2019 through 2027, a surcharge is imposed on all
24taxpayers on income arising from the sale or exchange of
25capital assets, depreciable business property, real property
26used in the trade or business, and Section 197 intangibles (i)

SB1747- 81 -LRB102 12964 HLH 18307 b
1of an organization licensee under the Illinois Horse Racing
2Act of 1975 and (ii) of an organization gaming licensee under
3the Illinois Gambling Act. The amount of the surcharge is
4equal to the amount of federal income tax liability for the
5taxable year attributable to those sales and exchanges. The
6surcharge imposed shall not apply if:
7 (1) the organization gaming license, organization
8 license, or racetrack property is transferred as a result
9 of any of the following:
10 (A) bankruptcy, a receivership, or a debt
11 adjustment initiated by or against the initial
12 licensee or the substantial owners of the initial
13 licensee;
14 (B) cancellation, revocation, or termination of
15 any such license by the Illinois Gaming Board or the
16 Illinois Racing Board;
17 (C) a determination by the Illinois Gaming Board
18 that transfer of the license is in the best interests
19 of Illinois gaming;
20 (D) the death of an owner of the equity interest in
21 a licensee;
22 (E) the acquisition of a controlling interest in
23 the stock or substantially all of the assets of a
24 publicly traded company;
25 (F) a transfer by a parent company to a wholly
26 owned subsidiary; or

SB1747- 82 -LRB102 12964 HLH 18307 b
1 (G) the transfer or sale to or by one person to
2 another person where both persons were initial owners
3 of the license when the license was issued; or
4 (2) the controlling interest in the organization
5 gaming license, organization license, or racetrack
6 property is transferred in a transaction to lineal
7 descendants in which no gain or loss is recognized or as a
8 result of a transaction in accordance with Section 351 of
9 the Internal Revenue Code in which no gain or loss is
10 recognized; or
11 (3) live horse racing was not conducted in 2010 at a
12 racetrack located within 3 miles of the Mississippi River
13 under a license issued pursuant to the Illinois Horse
14 Racing Act of 1975.
15 The transfer of an organization gaming license,
16organization license, or racetrack property by a person other
17than the initial licensee to receive the organization gaming
18license is not subject to a surcharge. The Department shall
19adopt rules necessary to implement and administer this
20subsection.
21 (c) Personal Property Tax Replacement Income Tax.
22Beginning on July 1, 1979 and thereafter, in addition to such
23income tax, there is also hereby imposed the Personal Property
24Tax Replacement Income Tax measured by net income on every
25corporation (including Subchapter S corporations), partnership
26and trust, for each taxable year ending after June 30, 1979.

SB1747- 83 -LRB102 12964 HLH 18307 b
1Such taxes are imposed on the privilege of earning or
2receiving income in or as a resident of this State. The
3Personal Property Tax Replacement Income Tax shall be in
4addition to the income tax imposed by subsections (a) and (b)
5of this Section and in addition to all other occupation or
6privilege taxes imposed by this State or by any municipal
7corporation or political subdivision thereof.
8 (d) Additional Personal Property Tax Replacement Income
9Tax Rates. The personal property tax replacement income tax
10imposed by this subsection and subsection (c) of this Section
11in the case of a corporation, other than a Subchapter S
12corporation and except as adjusted by subsection (d-1), shall
13be an additional amount equal to 2.85% of such taxpayer's net
14income for the taxable year, except that beginning on January
151, 1981, and thereafter, the rate of 2.85% specified in this
16subsection shall be reduced to 2.5%, and in the case of a
17partnership, trust or a Subchapter S corporation shall be an
18additional amount equal to 1.5% of such taxpayer's net income
19for the taxable year.
20 (d-1) Rate reduction for certain foreign insurers. In the
21case of a foreign insurer, as defined by Section 35A-5 of the
22Illinois Insurance Code, whose state or country of domicile
23imposes on insurers domiciled in Illinois a retaliatory tax
24(excluding any insurer whose premiums from reinsurance assumed
25are 50% or more of its total insurance premiums as determined
26under paragraph (2) of subsection (b) of Section 304, except

SB1747- 84 -LRB102 12964 HLH 18307 b
1that for purposes of this determination premiums from
2reinsurance do not include premiums from inter-affiliate
3reinsurance arrangements), beginning with taxable years ending
4on or after December 31, 1999, the sum of the rates of tax
5imposed by subsections (b) and (d) shall be reduced (but not
6increased) to the rate at which the total amount of tax imposed
7under this Act, net of all credits allowed under this Act,
8shall equal (i) the total amount of tax that would be imposed
9on the foreign insurer's net income allocable to Illinois for
10the taxable year by such foreign insurer's state or country of
11domicile if that net income were subject to all income taxes
12and taxes measured by net income imposed by such foreign
13insurer's state or country of domicile, net of all credits
14allowed or (ii) a rate of zero if no such tax is imposed on
15such income by the foreign insurer's state of domicile. For
16the purposes of this subsection (d-1), an inter-affiliate
17includes a mutual insurer under common management.
18 (1) For the purposes of subsection (d-1), in no event
19 shall the sum of the rates of tax imposed by subsections
20 (b) and (d) be reduced below the rate at which the sum of:
21 (A) the total amount of tax imposed on such
22 foreign insurer under this Act for a taxable year, net
23 of all credits allowed under this Act, plus
24 (B) the privilege tax imposed by Section 409 of
25 the Illinois Insurance Code, the fire insurance
26 company tax imposed by Section 12 of the Fire

SB1747- 85 -LRB102 12964 HLH 18307 b
1 Investigation Act, and the fire department taxes
2 imposed under Section 11-10-1 of the Illinois
3 Municipal Code,
4 equals 1.25% for taxable years ending prior to December
5 31, 2003, or 1.75% for taxable years ending on or after
6 December 31, 2003, of the net taxable premiums written for
7 the taxable year, as described by subsection (1) of
8 Section 409 of the Illinois Insurance Code. This paragraph
9 will in no event increase the rates imposed under
10 subsections (b) and (d).
11 (2) Any reduction in the rates of tax imposed by this
12 subsection shall be applied first against the rates
13 imposed by subsection (b) and only after the tax imposed
14 by subsection (a) net of all credits allowed under this
15 Section other than the credit allowed under subsection (i)
16 has been reduced to zero, against the rates imposed by
17 subsection (d).
18 This subsection (d-1) is exempt from the provisions of
19Section 250.
20 (e) Investment credit. A taxpayer shall be allowed a
21credit against the Personal Property Tax Replacement Income
22Tax for investment in qualified property.
23 (1) A taxpayer shall be allowed a credit equal to .5%
24 of the basis of qualified property placed in service
25 during the taxable year, provided such property is placed
26 in service on or after July 1, 1984. There shall be allowed

SB1747- 86 -LRB102 12964 HLH 18307 b
1 an additional credit equal to .5% of the basis of
2 qualified property placed in service during the taxable
3 year, provided such property is placed in service on or
4 after July 1, 1986, and the taxpayer's base employment
5 within Illinois has increased by 1% or more over the
6 preceding year as determined by the taxpayer's employment
7 records filed with the Illinois Department of Employment
8 Security. Taxpayers who are new to Illinois shall be
9 deemed to have met the 1% growth in base employment for the
10 first year in which they file employment records with the
11 Illinois Department of Employment Security. The provisions
12 added to this Section by Public Act 85-1200 (and restored
13 by Public Act 87-895) shall be construed as declaratory of
14 existing law and not as a new enactment. If, in any year,
15 the increase in base employment within Illinois over the
16 preceding year is less than 1%, the additional credit
17 shall be limited to that percentage times a fraction, the
18 numerator of which is .5% and the denominator of which is
19 1%, but shall not exceed .5%. The investment credit shall
20 not be allowed to the extent that it would reduce a
21 taxpayer's liability in any tax year below zero, nor may
22 any credit for qualified property be allowed for any year
23 other than the year in which the property was placed in
24 service in Illinois. For tax years ending on or after
25 December 31, 1987, and on or before December 31, 1988, the
26 credit shall be allowed for the tax year in which the

SB1747- 87 -LRB102 12964 HLH 18307 b
1 property is placed in service, or, if the amount of the
2 credit exceeds the tax liability for that year, whether it
3 exceeds the original liability or the liability as later
4 amended, such excess may be carried forward and applied to
5 the tax liability of the 5 taxable years following the
6 excess credit years if the taxpayer (i) makes investments
7 which cause the creation of a minimum of 2,000 full-time
8 equivalent jobs in Illinois, (ii) is located in an
9 enterprise zone established pursuant to the Illinois
10 Enterprise Zone Act and (iii) is certified by the
11 Department of Commerce and Community Affairs (now
12 Department of Commerce and Economic Opportunity) as
13 complying with the requirements specified in clause (i)
14 and (ii) by July 1, 1986. The Department of Commerce and
15 Community Affairs (now Department of Commerce and Economic
16 Opportunity) shall notify the Department of Revenue of all
17 such certifications immediately. For tax years ending
18 after December 31, 1988, the credit shall be allowed for
19 the tax year in which the property is placed in service,
20 or, if the amount of the credit exceeds the tax liability
21 for that year, whether it exceeds the original liability
22 or the liability as later amended, such excess may be
23 carried forward and applied to the tax liability of the 5
24 taxable years following the excess credit years. The
25 credit shall be applied to the earliest year for which
26 there is a liability. If there is credit from more than one

SB1747- 88 -LRB102 12964 HLH 18307 b
1 tax year that is available to offset a liability, earlier
2 credit shall be applied first.
3 (2) The term "qualified property" means property
4 which:
5 (A) is tangible, whether new or used, including
6 buildings and structural components of buildings and
7 signs that are real property, but not including land
8 or improvements to real property that are not a
9 structural component of a building such as
10 landscaping, sewer lines, local access roads, fencing,
11 parking lots, and other appurtenances;
12 (B) is depreciable pursuant to Section 167 of the
13 Internal Revenue Code, except that "3-year property"
14 as defined in Section 168(c)(2)(A) of that Code is not
15 eligible for the credit provided by this subsection
16 (e);
17 (C) is acquired by purchase as defined in Section
18 179(d) of the Internal Revenue Code;
19 (D) is used in Illinois by a taxpayer who is
20 primarily engaged in manufacturing, or in mining coal
21 or fluorite, or in retailing, or was placed in service
22 on or after July 1, 2006 in a River Edge Redevelopment
23 Zone established pursuant to the River Edge
24 Redevelopment Zone Act; and
25 (E) has not previously been used in Illinois in
26 such a manner and by such a person as would qualify for

SB1747- 89 -LRB102 12964 HLH 18307 b
1 the credit provided by this subsection (e) or
2 subsection (f).
3 (3) For purposes of this subsection (e),
4 "manufacturing" means the material staging and production
5 of tangible personal property by procedures commonly
6 regarded as manufacturing, processing, fabrication, or
7 assembling which changes some existing material into new
8 shapes, new qualities, or new combinations. For purposes
9 of this subsection (e) the term "mining" shall have the
10 same meaning as the term "mining" in Section 613(c) of the
11 Internal Revenue Code. For purposes of this subsection
12 (e), the term "retailing" means the sale of tangible
13 personal property for use or consumption and not for
14 resale, or services rendered in conjunction with the sale
15 of tangible personal property for use or consumption and
16 not for resale. For purposes of this subsection (e),
17 "tangible personal property" has the same meaning as when
18 that term is used in the Retailers' Occupation Tax Act,
19 and, for taxable years ending after December 31, 2008,
20 does not include the generation, transmission, or
21 distribution of electricity.
22 (4) The basis of qualified property shall be the basis
23 used to compute the depreciation deduction for federal
24 income tax purposes.
25 (5) If the basis of the property for federal income
26 tax depreciation purposes is increased after it has been

SB1747- 90 -LRB102 12964 HLH 18307 b
1 placed in service in Illinois by the taxpayer, the amount
2 of such increase shall be deemed property placed in
3 service on the date of such increase in basis.
4 (6) The term "placed in service" shall have the same
5 meaning as under Section 46 of the Internal Revenue Code.
6 (7) If during any taxable year, any property ceases to
7 be qualified property in the hands of the taxpayer within
8 48 months after being placed in service, or the situs of
9 any qualified property is moved outside Illinois within 48
10 months after being placed in service, the Personal
11 Property Tax Replacement Income Tax for such taxable year
12 shall be increased. Such increase shall be determined by
13 (i) recomputing the investment credit which would have
14 been allowed for the year in which credit for such
15 property was originally allowed by eliminating such
16 property from such computation and, (ii) subtracting such
17 recomputed credit from the amount of credit previously
18 allowed. For the purposes of this paragraph (7), a
19 reduction of the basis of qualified property resulting
20 from a redetermination of the purchase price shall be
21 deemed a disposition of qualified property to the extent
22 of such reduction.
23 (8) Unless the investment credit is extended by law,
24 the basis of qualified property shall not include costs
25 incurred after December 31, 2018, except for costs
26 incurred pursuant to a binding contract entered into on or

SB1747- 91 -LRB102 12964 HLH 18307 b
1 before December 31, 2018.
2 (9) Each taxable year ending before December 31, 2000,
3 a partnership may elect to pass through to its partners
4 the credits to which the partnership is entitled under
5 this subsection (e) for the taxable year. A partner may
6 use the credit allocated to him or her under this
7 paragraph only against the tax imposed in subsections (c)
8 and (d) of this Section. If the partnership makes that
9 election, those credits shall be allocated among the
10 partners in the partnership in accordance with the rules
11 set forth in Section 704(b) of the Internal Revenue Code,
12 and the rules promulgated under that Section, and the
13 allocated amount of the credits shall be allowed to the
14 partners for that taxable year. The partnership shall make
15 this election on its Personal Property Tax Replacement
16 Income Tax return for that taxable year. The election to
17 pass through the credits shall be irrevocable.
18 For taxable years ending on or after December 31,
19 2000, a partner that qualifies its partnership for a
20 subtraction under subparagraph (I) of paragraph (2) of
21 subsection (d) of Section 203 or a shareholder that
22 qualifies a Subchapter S corporation for a subtraction
23 under subparagraph (S) of paragraph (2) of subsection (b)
24 of Section 203 shall be allowed a credit under this
25 subsection (e) equal to its share of the credit earned
26 under this subsection (e) during the taxable year by the

SB1747- 92 -LRB102 12964 HLH 18307 b
1 partnership or Subchapter S corporation, determined in
2 accordance with the determination of income and
3 distributive share of income under Sections 702 and 704
4 and Subchapter S of the Internal Revenue Code. This
5 paragraph is exempt from the provisions of Section 250.
6 (f) Investment credit; Enterprise Zone; River Edge
7Redevelopment Zone.
8 (1) A taxpayer shall be allowed a credit against the
9 tax imposed by subsections (a) and (b) of this Section for
10 investment in qualified property which is placed in
11 service in an Enterprise Zone created pursuant to the
12 Illinois Enterprise Zone Act or, for property placed in
13 service on or after July 1, 2006, a River Edge
14 Redevelopment Zone established pursuant to the River Edge
15 Redevelopment Zone Act. For partners, shareholders of
16 Subchapter S corporations, and owners of limited liability
17 companies, if the liability company is treated as a
18 partnership for purposes of federal and State income
19 taxation, there shall be allowed a credit under this
20 subsection (f) to be determined in accordance with the
21 determination of income and distributive share of income
22 under Sections 702 and 704 and Subchapter S of the
23 Internal Revenue Code. The credit shall be .5% of the
24 basis for such property. The credit shall be available
25 only in the taxable year in which the property is placed in
26 service in the Enterprise Zone or River Edge Redevelopment

SB1747- 93 -LRB102 12964 HLH 18307 b
1 Zone and shall not be allowed to the extent that it would
2 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, 1985, 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 (2) The term qualified property means property which:
17 (A) is tangible, whether new or used, including
18 buildings and structural components of buildings;
19 (B) is depreciable pursuant to Section 167 of the
20 Internal Revenue Code, except that "3-year property"
21 as defined in Section 168(c)(2)(A) of that Code is not
22 eligible for the credit provided by this subsection
23 (f);
24 (C) is acquired by purchase as defined in Section
25 179(d) of the Internal Revenue Code;
26 (D) is used in the Enterprise Zone or River Edge

SB1747- 94 -LRB102 12964 HLH 18307 b
1 Redevelopment Zone by the taxpayer; and
2 (E) has not been previously used in Illinois in
3 such a manner and by such a person as would qualify for
4 the credit provided by this subsection (f) or
5 subsection (e).
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 the Enterprise Zone or River Edge
12 Redevelopment Zone by the taxpayer, the amount of such
13 increase shall be deemed property placed in service on the
14 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, any property ceases to
18 be qualified property in the hands of the taxpayer within
19 48 months after being placed in service, or the situs of
20 any qualified property is moved outside the Enterprise
21 Zone or River Edge Redevelopment Zone within 48 months
22 after being placed in service, the tax imposed under
23 subsections (a) and (b) of this Section for such taxable
24 year shall be increased. Such increase shall be determined
25 by (i) recomputing the investment credit which would have
26 been allowed for the year in which credit for such

SB1747- 95 -LRB102 12964 HLH 18307 b
1 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) There shall be allowed an additional credit equal
10 to 0.5% of the basis of qualified property placed in
11 service during the taxable year in a River Edge
12 Redevelopment Zone, provided such property is placed in
13 service on or after July 1, 2006, and the taxpayer's base
14 employment within Illinois has increased by 1% or more
15 over the preceding year as determined by the taxpayer's
16 employment records filed with the Illinois Department of
17 Employment Security. Taxpayers who are new to Illinois
18 shall be deemed to have met the 1% growth in base
19 employment for the first year in which they file
20 employment records with the Illinois Department of
21 Employment Security. If, in any year, the increase in base
22 employment within Illinois over the preceding year is less
23 than 1%, the additional credit shall be limited to that
24 percentage times a fraction, the numerator of which is
25 0.5% and the denominator of which is 1%, but shall not
26 exceed 0.5%.

SB1747- 96 -LRB102 12964 HLH 18307 b
1 (8) For taxable years beginning on or after January 1,
2 2021, there shall be allowed an Enterprise Zone
3 construction jobs credit against the taxes imposed under
4 subsections (a) and (b) of this Section as provided in
5 Section 13 of the Illinois Enterprise Zone Act.
6 The credit or credits may not reduce the taxpayer's
7 liability to less than zero. If the amount of the credit or
8 credits exceeds the taxpayer's liability, the excess may
9 be carried forward and applied against the taxpayer's
10 liability in succeeding calendar years in the same manner
11 provided under paragraph (4) of Section 211 of this Act.
12 The credit or credits shall be applied to the earliest
13 year for which there is a tax liability. If there are
14 credits from more than one taxable year that are available
15 to offset a liability, the earlier credit shall be applied
16 first.
17 For partners, shareholders of Subchapter S
18 corporations, and owners of limited liability companies,
19 if the liability company is treated as a partnership for
20 the purposes of federal and State income taxation, there
21 shall be allowed a credit under this Section to be
22 determined in accordance with the determination of income
23 and distributive share of income under Sections 702 and
24 704 and Subchapter S of the Internal Revenue Code.
25 The total aggregate amount of credits awarded under
26 the Blue Collar Jobs Act (Article 20 of Public Act 101-9

SB1747- 97 -LRB102 12964 HLH 18307 b
1 this amendatory Act of the 101st General Assembly) shall
2 not exceed $20,000,000 in any State fiscal year.
3 This paragraph (8) is exempt from the provisions of
4 Section 250.
5 (f-1) Investment credit; Energy Transition Zone.
6 (1) For tax years beginning on or after January 1,
7 2021, a taxpayer shall be allowed a credit against the tax
8 imposed by subsections (a) and (b) of this Section for
9 investment in qualified property which is placed in
10 service for the use of the production of green energy by a
11 green energy enterprise in an Energy Transition Zone
12 created pursuant to the Illinois Energy Transition Zone
13 Act. For partners, shareholders of Subchapter S
14 corporations, and owners of limited liability companies,
15 if the liability company is treated as a partnership for
16 purposes of federal and State income taxation, there shall
17 be allowed a credit under this subsection (f-1) to be
18 determined in accordance with the determination of income
19 and distributive share of income under Sections 702 and
20 704 and Subchapter S of the Internal Revenue Code. The
21 credit shall be 0.5% of the basis for such property. The
22 credit shall be available only in the taxable year in
23 which the property is placed in service in the Energy
24 Transition Zone and shall not be allowed to the extent
25 that it would reduce a taxpayer's liability for the tax
26 imposed by subsections (a) and (b) of this Section to

SB1747- 98 -LRB102 12964 HLH 18307 b
1 below zero. The credit shall be allowed for the tax year in
2 which the property is placed in service, or, if the amount
3 of the credit exceeds the tax liability for that year,
4 whether it exceeds the original liability or the liability
5 as later amended, such excess may be carried forward and
6 applied to the tax liability of the 5 taxable years
7 following the excess credit year. The credit shall be
8 applied to the earliest year for which there is a
9 liability. If there is credit from more than one tax year
10 that is available to offset a liability, the credit
11 accruing first in time shall be applied first.
12 (2) The term qualified property means property which:
13 (A) is tangible, whether new or used, including
14 buildings and structural components of buildings;
15 (B) is depreciable pursuant to Section 167 of the
16 Internal Revenue Code, except that "3-year property"
17 as defined in Section 168(c)(2)(A) of that Code is not
18 eligible for the credit provided by this subsection
19 (f-1);
20 (C) is acquired by purchase as defined in Section
21 179(d) of the Internal Revenue Code;
22 (D) is used in the Energy Transition Zone by the
23 taxpayer in relation to producing green energy; and
24 (E) has not been previously used in Illinois in
25 such a manner and by such a person as would qualify for
26 the credit provided by this subsection (f-1).

SB1747- 99 -LRB102 12964 HLH 18307 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 Energy Transition Zone by the
7 taxpayer, the amount of such increase shall be deemed
8 property placed in service on the date of such increase in
9 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 Energy
16 Transition Zone within 48 months after being placed in
17 service, the tax imposed under subsections (a) and (b) of
18 this Section for such taxable year shall be increased.
19 Such increase shall be determined by (i) recomputing the
20 investment credit which would have been allowed for the
21 year in which credit for such property was originally
22 allowed by eliminating such property from such
23 computation, and (ii) subtracting such recomputed credit
24 from the amount of credit previously allowed. For the
25 purposes of this paragraph (6), a reduction of the basis
26 of qualified property resulting from a redetermination of

SB1747- 100 -LRB102 12964 HLH 18307 b
1 the purchase price shall be deemed a disposition of
2 qualified property to the extent of such reduction.
3 (g) (Blank).
4 (h) Investment credit; High Impact Business.
5 (1) Subject to subsections (b) and (b-5) of Section
6 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
7 be allowed a credit against the tax imposed by subsections
8 (a) and (b) of this Section for investment in qualified
9 property which is placed in service by a Department of
10 Commerce and Economic Opportunity designated High Impact
11 Business. The credit shall be .5% of the basis for such
12 property. The credit shall not be available (i) until the
13 minimum investments in qualified property set forth in
14 subdivision (a)(3)(A) of Section 5.5 of the Illinois
15 Enterprise Zone Act have been satisfied or (ii) until the
16 time authorized in subsection (b-5) of the Illinois
17 Enterprise Zone Act for entities designated as High Impact
18 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
19 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
20 Act, and shall not be allowed to the extent that it would
21 reduce a taxpayer's liability for the tax imposed by
22 subsections (a) and (b) of this Section to below zero. The
23 credit applicable to such investments shall be taken in
24 the taxable year in which such investments have been
25 completed. The credit for additional investments beyond
26 the minimum investment by a designated high impact

SB1747- 101 -LRB102 12964 HLH 18307 b
1 business authorized under subdivision (a)(3)(A) of Section
2 5.5 of the Illinois Enterprise Zone Act shall be available
3 only in the taxable year in which the property is placed in
4 service and shall not be allowed to the extent that it
5 would reduce a taxpayer's liability for the tax imposed by
6 subsections (a) and (b) of this Section to below zero. For
7 tax years ending on or after December 31, 1987, the credit
8 shall be allowed for the tax year in which the property is
9 placed in service, or, if the amount of the credit exceeds
10 the tax liability for that year, whether it exceeds the
11 original liability or the liability as later amended, such
12 excess may be carried forward and applied to the tax
13 liability of the 5 taxable years following the excess
14 credit year. The credit shall be applied to the earliest
15 year for which there is a liability. If there is credit
16 from more than one tax year that is available to offset a
17 liability, the credit accruing first in time shall be
18 applied first.
19 Changes made in this subdivision (h)(1) by Public Act
20 88-670 restore changes made by Public Act 85-1182 and
21 reflect existing law.
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"

SB1747- 102 -LRB102 12964 HLH 18307 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 (h);
4 (C) is acquired by purchase as defined in Section
5 179(d) of the Internal Revenue Code; and
6 (D) is not eligible for the Enterprise Zone
7 Investment Credit provided by subsection (f) of this
8 Section.
9 (3) The basis of qualified property shall be the basis
10 used to compute the depreciation deduction for federal
11 income tax purposes.
12 (4) If the basis of the property for federal income
13 tax depreciation purposes is increased after it has been
14 placed in service in a federally designated Foreign Trade
15 Zone or Sub-Zone located in Illinois by the taxpayer, the
16 amount of such increase shall be deemed property placed in
17 service on the date of such increase in basis.
18 (5) The term "placed in service" shall have the same
19 meaning as under Section 46 of the Internal Revenue Code.
20 (6) If during any taxable year ending on or before
21 December 31, 1996, any property ceases to be qualified
22 property in the hands of the taxpayer within 48 months
23 after being placed in service, or the situs of any
24 qualified property is moved outside Illinois within 48
25 months after being placed in service, the tax imposed
26 under subsections (a) and (b) of this Section for such

SB1747- 103 -LRB102 12964 HLH 18307 b
1 taxable year shall be increased. Such increase shall be
2 determined by (i) recomputing the investment credit which
3 would have been allowed for the year in which credit for
4 such property was originally allowed by eliminating such
5 property from such computation, and (ii) subtracting such
6 recomputed credit from the amount of credit previously
7 allowed. For the purposes of this paragraph (6), a
8 reduction of the basis of qualified property resulting
9 from a redetermination of the purchase price shall be
10 deemed a disposition of qualified property to the extent
11 of such reduction.
12 (7) Beginning with tax years ending after December 31,
13 1996, if a taxpayer qualifies for the credit under this
14 subsection (h) and thereby is granted a tax abatement and
15 the taxpayer relocates its entire facility in violation of
16 the explicit terms and length of the contract under
17 Section 18-183 of the Property Tax Code, the tax imposed
18 under subsections (a) and (b) of this Section shall be
19 increased for the taxable year in which the taxpayer
20 relocated its facility by an amount equal to the amount of
21 credit received by the taxpayer under this subsection (h).
22 (h-5) High Impact Business construction constructions jobs
23credit. For taxable years beginning on or after January 1,
242021, there shall also be allowed a High Impact Business
25construction jobs credit against the tax imposed under
26subsections (a) and (b) of this Section as provided in

SB1747- 104 -LRB102 12964 HLH 18307 b
1subsections (i) and (j) of Section 5.5 of the Illinois
2Enterprise Zone Act.
3 The credit or credits may not reduce the taxpayer's
4liability to less than zero. If the amount of the credit or
5credits exceeds the taxpayer's liability, the excess may be
6carried forward and applied against the taxpayer's liability
7in succeeding calendar years in the manner provided under
8paragraph (4) of Section 211 of this Act. The credit or credits
9shall be applied to the earliest year for which there is a tax
10liability. If there are credits from more than one taxable
11year that are available to offset a liability, the earlier
12credit shall be applied first.
13 For partners, shareholders of Subchapter S corporations,
14and owners of limited liability companies, if the liability
15company is treated as a partnership for the purposes of
16federal and State income taxation, there shall be allowed a
17credit under this Section to be determined in accordance with
18the determination of income and distributive share of income
19under Sections 702 and 704 and Subchapter S of the Internal
20Revenue Code.
21 The total aggregate amount of credits awarded under the
22Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
23amendatory Act of the 101st General Assembly) shall not exceed
24$20,000,000 in any State fiscal year.
25 This subsection (h-5) is exempt from the provisions of
26Section 250.

SB1747- 105 -LRB102 12964 HLH 18307 b
1 (i) Credit for Personal Property Tax Replacement Income
2Tax. For tax years ending prior to December 31, 2003, a credit
3shall be allowed against the tax imposed by subsections (a)
4and (b) of this Section for the tax imposed by subsections (c)
5and (d) of this Section. This credit shall be computed by
6multiplying the tax imposed by subsections (c) and (d) of this
7Section by a fraction, the numerator of which is base income
8allocable to Illinois and the denominator of which is Illinois
9base income, and further multiplying the product by the tax
10rate imposed by subsections (a) and (b) of this Section.
11 Any credit earned on or after December 31, 1986 under this
12subsection which is unused in the year the credit is computed
13because it exceeds the tax liability imposed by subsections
14(a) and (b) for that year (whether it exceeds the original
15liability or the liability as later amended) may be carried
16forward and applied to the tax liability imposed by
17subsections (a) and (b) of the 5 taxable years following the
18excess credit year, provided that no credit may be carried
19forward to any year ending on or after December 31, 2003. This
20credit shall be applied first to the earliest year for which
21there is a liability. If there is a credit under this
22subsection from more than one tax year that is available to
23offset a liability the earliest credit arising under this
24subsection shall be applied first.
25 If, during any taxable year ending on or after December
2631, 1986, the tax imposed by subsections (c) and (d) of this

SB1747- 106 -LRB102 12964 HLH 18307 b
1Section for which a taxpayer has claimed a credit under this
2subsection (i) is reduced, the amount of credit for such tax
3shall also be reduced. Such reduction shall be determined by
4recomputing the credit to take into account the reduced tax
5imposed by subsections (c) and (d). If any portion of the
6reduced amount of credit has been carried to a different
7taxable year, an amended return shall be filed for such
8taxable year to reduce the amount of credit claimed.
9 (j) Training expense credit. Beginning with tax years
10ending on or after December 31, 1986 and prior to December 31,
112003, a taxpayer shall be allowed a credit against the tax
12imposed by subsections (a) and (b) under this Section for all
13amounts paid or accrued, on behalf of all persons employed by
14the taxpayer in Illinois or Illinois residents employed
15outside of Illinois by a taxpayer, for educational or
16vocational training in semi-technical or technical fields or
17semi-skilled or skilled fields, which were deducted from gross
18income in the computation of taxable income. The credit
19against the tax imposed by subsections (a) and (b) shall be
201.6% of such training expenses. For partners, shareholders of
21subchapter S corporations, and owners of limited liability
22companies, if the liability company is treated as a
23partnership for purposes of federal and State income taxation,
24there shall be allowed a credit under this subsection (j) to be
25determined in accordance with the determination of income and
26distributive share of income under Sections 702 and 704 and

SB1747- 107 -LRB102 12964 HLH 18307 b
1subchapter S of the Internal Revenue Code.
2 Any credit allowed under this subsection which is unused
3in the year the credit is earned may be carried forward to each
4of the 5 taxable years following the year for which the credit
5is first computed until it is used. This credit shall be
6applied first to the earliest year for which there is a
7liability. If there is a credit under this subsection from
8more than one tax year that is available to offset a liability,
9the earliest credit arising under this subsection shall be
10applied first. No carryforward credit may be claimed in any
11tax year ending on or after December 31, 2003.
12 (k) Research and development credit. For tax years ending
13after July 1, 1990 and prior to December 31, 2003, and
14beginning again for tax years ending on or after December 31,
152004, and ending prior to January 1, 2027, a taxpayer shall be
16allowed a credit against the tax imposed by subsections (a)
17and (b) of this Section for increasing research activities in
18this State. The credit allowed against the tax imposed by
19subsections (a) and (b) shall be equal to 6 1/2% of the
20qualifying expenditures for increasing research activities in
21this State. For partners, shareholders of subchapter S
22corporations, and owners of limited liability companies, if
23the liability company is treated as a partnership for purposes
24of federal and State income taxation, there shall be allowed a
25credit under this subsection to be determined in accordance
26with the determination of income and distributive share of

SB1747- 108 -LRB102 12964 HLH 18307 b
1income under Sections 702 and 704 and subchapter S of the
2Internal Revenue Code.
3 For purposes of this subsection, "qualifying expenditures"
4means the qualifying expenditures as defined for the federal
5credit for increasing research activities which would be
6allowable under Section 41 of the Internal Revenue Code and
7which are conducted in this State, "qualifying expenditures
8for increasing research activities in this State" means the
9excess of qualifying expenditures for the taxable year in
10which incurred over qualifying expenditures for the base
11period, "qualifying expenditures for the base period" means
12the average of the qualifying expenditures for each year in
13the base period, and "base period" means the 3 taxable years
14immediately preceding the taxable year for which the
15determination is being made.
16 Any credit in excess of the tax liability for the taxable
17year may be carried forward. A taxpayer may elect to have the
18unused credit shown on its final completed return carried over
19as a credit against the tax liability for the following 5
20taxable years or until it has been fully used, whichever
21occurs first; provided that no credit earned in a tax year
22ending prior to December 31, 2003 may be carried forward to any
23year ending on or after December 31, 2003.
24 If an unused credit is carried forward to a given year from
252 or more earlier years, that credit arising in the earliest
26year will be applied first against the tax liability for the

SB1747- 109 -LRB102 12964 HLH 18307 b
1given year. If a tax liability for the given year still
2remains, the credit from the next earliest year will then be
3applied, and so on, until all credits have been used or no tax
4liability for the given year remains. Any remaining unused
5credit or credits then will be carried forward to the next
6following year in which a tax liability is incurred, except
7that no credit can be carried forward to a year which is more
8than 5 years after the year in which the expense for which the
9credit is given was incurred.
10 No inference shall be drawn from Public Act 91-644 this
11amendatory Act of the 91st General Assembly in construing this
12Section for taxable years beginning before January 1, 1999.
13 It is the intent of the General Assembly that the research
14and development credit under this subsection (k) shall apply
15continuously for all tax years ending on or after December 31,
162004 and ending prior to January 1, 2027, including, but not
17limited to, the period beginning on January 1, 2016 and ending
18on July 6, 2017 (the effective date of Public Act 100-22) this
19amendatory Act of the 100th General Assembly. All actions
20taken in reliance on the continuation of the credit under this
21subsection (k) by any taxpayer are hereby validated.
22 (l) Environmental Remediation Tax Credit.
23 (i) For tax years ending after December 31, 1997 and
24 on or before December 31, 2001, a taxpayer shall be
25 allowed a credit against the tax imposed by subsections
26 (a) and (b) of this Section for certain amounts paid for

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

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1 deduction for losses by paragraphs (b), (c), and (f)(1) of
2 Section 267 of the Internal Revenue Code by virtue of
3 being a related taxpayer, as well as any of its partners.
4 The credit allowed against the tax imposed by subsections
5 (a) and (b) shall be equal to 25% of the unreimbursed
6 eligible remediation costs in excess of $100,000 per site,
7 except that the $100,000 threshold shall not apply to any
8 site contained in an enterprise zone as determined by the
9 Department of Commerce and Community Affairs (now
10 Department of Commerce and Economic Opportunity). The
11 total credit allowed shall not exceed $40,000 per year
12 with a maximum total of $150,000 per site. For partners
13 and shareholders of subchapter S corporations, there shall
14 be allowed a credit under this subsection to be determined
15 in accordance with the determination of income and
16 distributive share of income under Sections 702 and 704
17 and subchapter S of the Internal Revenue Code.
18 (ii) A credit allowed under this subsection that is
19 unused in the year the credit is earned may be carried
20 forward to each of the 5 taxable years following the year
21 for which the credit is first earned until it is used. The
22 term "unused credit" does not include any amounts of
23 unreimbursed eligible remediation costs in excess of the
24 maximum credit per site authorized under paragraph (i).
25 This credit shall be applied first to the earliest year
26 for which there is a liability. If there is a credit under

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1 this subsection from more than one tax year that is
2 available to offset a liability, the earliest credit
3 arising under this subsection shall be applied first. A
4 credit allowed under this subsection may be sold to a
5 buyer as part of a sale of all or part of the remediation
6 site for which the credit was granted. The purchaser of a
7 remediation site and the tax credit shall succeed to the
8 unused credit and remaining carry-forward period of the
9 seller. To perfect the transfer, the assignor shall record
10 the transfer in the chain of title for the site and provide
11 written notice to the Director of the Illinois Department
12 of Revenue of the assignor's intent to sell the
13 remediation site and the amount of the tax credit to be
14 transferred as a portion of the sale. In no event may a
15 credit be transferred to any taxpayer if the taxpayer or a
16 related party would not be eligible under the provisions
17 of subsection (i).
18 (iii) For purposes of this Section, the term "site"
19 shall have the same meaning as under Section 58.2 of the
20 Environmental Protection Act.
21 (m) Education expense credit. Beginning with tax years
22ending after December 31, 1999, a taxpayer who is the
23custodian of one or more qualifying pupils shall be allowed a
24credit against the tax imposed by subsections (a) and (b) of
25this Section for qualified education expenses incurred on
26behalf of the qualifying pupils. The credit shall be equal to

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125% of qualified education expenses, but in no event may the
2total credit under this subsection claimed by a family that is
3the custodian of qualifying pupils exceed (i) $500 for tax
4years ending prior to December 31, 2017, and (ii) $750 for tax
5years ending on or after December 31, 2017. In no event shall a
6credit under this subsection reduce the taxpayer's liability
7under this Act to less than zero. Notwithstanding any other
8provision of law, for taxable years beginning on or after
9January 1, 2017, no taxpayer may claim a credit under this
10subsection (m) if the taxpayer's adjusted gross income for the
11taxable year exceeds (i) $500,000, in the case of spouses
12filing a joint federal tax return or (ii) $250,000, in the case
13of all other taxpayers. This subsection is exempt from the
14provisions of Section 250 of this Act.
15 For purposes of this subsection:
16 "Qualifying pupils" means individuals who (i) are
17residents of the State of Illinois, (ii) are under the age of
1821 at the close of the school year for which a credit is
19sought, and (iii) during the school year for which a credit is
20sought were full-time pupils enrolled in a kindergarten
21through twelfth grade education program at any school, as
22defined in this subsection.
23 "Qualified education expense" means the amount incurred on
24behalf of a qualifying pupil in excess of $250 for tuition,
25book fees, and lab fees at the school in which the pupil is
26enrolled during the regular school year.

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1 "School" means any public or nonpublic elementary or
2secondary school in Illinois that is in compliance with Title
3VI of the Civil Rights Act of 1964 and attendance at which
4satisfies the requirements of Section 26-1 of the School Code,
5except that nothing shall be construed to require a child to
6attend any particular public or nonpublic school to qualify
7for the credit under this Section.
8 "Custodian" means, with respect to qualifying pupils, an
9Illinois resident who is a parent, the parents, a legal
10guardian, or the legal guardians of the qualifying pupils.
11 (n) River Edge Redevelopment Zone site remediation tax
12credit.
13 (i) For tax years ending on or after December 31,
14 2006, a taxpayer shall be allowed a credit against the tax
15 imposed by subsections (a) and (b) of this Section for
16 certain amounts paid for unreimbursed eligible remediation
17 costs, as specified in this subsection. For purposes of
18 this Section, "unreimbursed eligible remediation costs"
19 means costs approved by the Illinois Environmental
20 Protection Agency ("Agency") under Section 58.14a of the
21 Environmental Protection Act that were paid in performing
22 environmental remediation at a site within a River Edge
23 Redevelopment Zone for which a No Further Remediation
24 Letter was issued by the Agency and recorded under Section
25 58.10 of the Environmental Protection Act. The credit must
26 be claimed for the taxable year in which Agency approval

SB1747- 115 -LRB102 12964 HLH 18307 b
1 of the eligible remediation costs is granted. The credit
2 is not available to any taxpayer if the taxpayer or any
3 related party caused or contributed to, in any material
4 respect, a release of regulated substances on, in, or
5 under the site that was identified and addressed by the
6 remedial action pursuant to the Site Remediation Program
7 of the Environmental Protection Act. Determinations as to
8 credit availability for purposes of this Section shall be
9 made consistent with rules adopted by the Pollution
10 Control Board pursuant to the Illinois Administrative
11 Procedure Act for the administration and enforcement of
12 Section 58.9 of the Environmental Protection Act. For
13 purposes of this Section, "taxpayer" includes a person
14 whose tax attributes the taxpayer has succeeded to under
15 Section 381 of the Internal Revenue Code and "related
16 party" includes the persons disallowed a deduction for
17 losses by paragraphs (b), (c), and (f)(1) of Section 267
18 of the Internal Revenue Code by virtue of being a related
19 taxpayer, as well as any of its partners. The credit
20 allowed against the tax imposed by subsections (a) and (b)
21 shall be equal to 25% of the unreimbursed eligible
22 remediation costs in excess of $100,000 per site.
23 (ii) A credit allowed under this subsection that is
24 unused in the year the credit is earned may be carried
25 forward to each of the 5 taxable years following the year
26 for which the credit is first earned until it is used. This

SB1747- 116 -LRB102 12964 HLH 18307 b
1 credit shall be applied first to the earliest year for
2 which there is a liability. If there is a credit under this
3 subsection from more than one tax year that is available
4 to offset a liability, the earliest credit arising under
5 this subsection shall be applied first. A credit allowed
6 under this subsection may be sold to a buyer as part of a
7 sale of all or part of the remediation site for which the
8 credit was granted. The purchaser of a remediation site
9 and the tax credit shall succeed to the unused credit and
10 remaining carry-forward period of the seller. To perfect
11 the transfer, the assignor shall record the transfer in
12 the chain of title for the site and provide written notice
13 to the Director of the Illinois Department of Revenue of
14 the assignor's intent to sell the remediation site and the
15 amount of the tax credit to be transferred as a portion of
16 the sale. In no event may a credit be transferred to any
17 taxpayer if the taxpayer or a related party would not be
18 eligible under the provisions of subsection (i).
19 (iii) For purposes of this Section, the term "site"
20 shall have the same meaning as under Section 58.2 of the
21 Environmental Protection Act.
22 (o) For each of taxable years during the Compassionate Use
23of Medical Cannabis Program, a surcharge is imposed on all
24taxpayers on income arising from the sale or exchange of
25capital assets, depreciable business property, real property
26used in the trade or business, and Section 197 intangibles of

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

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1 (F) a transfer by a parent company to a wholly
2 owned subsidiary; or
3 (G) the transfer or sale to or by one person to
4 another person where both persons were initial owners
5 of the registration when the registration was issued;
6 or
7 (2) the cannabis cultivation center registration,
8 medical cannabis dispensary registration, or the
9 controlling interest in a registrant's property is
10 transferred in a transaction to lineal descendants in
11 which no gain or loss is recognized or as a result of a
12 transaction in accordance with Section 351 of the Internal
13 Revenue Code in which no gain or loss is recognized.
14(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
15eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
16revised 11-18-20.)
17 (Text of Section with 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
23of earning or receiving income in or as a resident of this
24State. Such tax shall be in addition to all other occupation or
25privilege taxes imposed by this State or by any municipal

SB1747- 119 -LRB102 12964 HLH 18307 b
1corporation or political subdivision thereof.
2 (b) Rates. The tax imposed by subsection (a) of this
3Section shall be determined as follows, except as adjusted by
4subsection (d-1):
5 (1) In the case of an individual, trust or estate, for
6 taxable years ending prior to July 1, 1989, an amount
7 equal to 2 1/2% of the taxpayer's net income for the
8 taxable year.
9 (2) In the case of an individual, trust or estate, for
10 taxable years beginning prior to July 1, 1989 and ending
11 after June 30, 1989, an amount equal to the sum of (i) 2
12 1/2% of the taxpayer's net income for the period prior to
13 July 1, 1989, as calculated under Section 202.3, and (ii)
14 3% of the taxpayer's net income for the period after June
15 30, 1989, as calculated under Section 202.3.
16 (3) In the case of an individual, trust or estate, for
17 taxable years beginning after June 30, 1989, and ending
18 prior to January 1, 2011, an amount equal to 3% of the
19 taxpayer's net income for the taxable year.
20 (4) In the case of an individual, trust, or estate,
21 for taxable years beginning prior to January 1, 2011, and
22 ending after December 31, 2010, an amount equal to the sum
23 of (i) 3% of the taxpayer's net income for the period prior
24 to January 1, 2011, as calculated under Section 202.5, and
25 (ii) 5% of the taxpayer's net income for the period after
26 December 31, 2010, as calculated under Section 202.5.

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1 (5) In the case of an individual, trust, or estate,
2 for taxable years beginning on or after January 1, 2011,
3 and ending prior to January 1, 2015, an amount equal to 5%
4 of the taxpayer's net income for the taxable year.
5 (5.1) In the case of an individual, trust, or estate,
6 for taxable years beginning prior to January 1, 2015, and
7 ending after December 31, 2014, an amount equal to the sum
8 of (i) 5% of the taxpayer's net income for the period prior
9 to January 1, 2015, as calculated under Section 202.5, and
10 (ii) 3.75% of the taxpayer's net income for the period
11 after December 31, 2014, as calculated under Section
12 202.5.
13 (5.2) In the case of an individual, trust, or estate,
14 for taxable years beginning on or after January 1, 2015,
15 and ending prior to July 1, 2017, an amount equal to 3.75%
16 of the taxpayer's net income for the taxable year.
17 (5.3) In the case of an individual, trust, or estate,
18 for taxable years beginning prior to July 1, 2017, and
19 ending after June 30, 2017, an amount equal to the sum of
20 (i) 3.75% of the taxpayer's net income for the period
21 prior to July 1, 2017, as calculated under Section 202.5,
22 and (ii) 4.95% of the taxpayer's net income for the period
23 after June 30, 2017, as calculated under Section 202.5.
24 (5.4) In the case of an individual, trust, or estate,
25 for taxable years beginning on or after July 1, 2017 and
26 beginning prior to January 1, 2021, an amount equal to

SB1747- 121 -LRB102 12964 HLH 18307 b
1 4.95% of the taxpayer's net income for the taxable year.
2 (5.5) In the case of an individual, trust, or estate,
3 for taxable years beginning on or after January 1, 2021,
4 an amount calculated under the rate structure set forth in
5 Section 201.1.
6 (6) In the case of a corporation, for taxable years
7 ending prior to July 1, 1989, an amount equal to 4% of the
8 taxpayer's net income for the taxable year.
9 (7) In the case of a corporation, for taxable years
10 beginning prior to July 1, 1989 and ending after June 30,
11 1989, an amount equal to the sum of (i) 4% of the
12 taxpayer's net income for the period prior to July 1,
13 1989, as calculated under Section 202.3, and (ii) 4.8% of
14 the taxpayer's net income for the period after June 30,
15 1989, as calculated under Section 202.3.
16 (8) In the case of a corporation, for taxable years
17 beginning after June 30, 1989, and ending prior to January
18 1, 2011, an amount equal to 4.8% of the taxpayer's net
19 income for the taxable year.
20 (9) In the case of a corporation, for taxable years
21 beginning prior to January 1, 2011, and ending after
22 December 31, 2010, an amount equal to the sum of (i) 4.8%
23 of the taxpayer's net income for the period prior to
24 January 1, 2011, as calculated under Section 202.5, and
25 (ii) 7% of the taxpayer's net income for the period after
26 December 31, 2010, as calculated under Section 202.5.

SB1747- 122 -LRB102 12964 HLH 18307 b
1 (10) In the case of a corporation, for taxable years
2 beginning on or after January 1, 2011, and ending prior to
3 January 1, 2015, an amount equal to 7% of the taxpayer's
4 net income for the taxable year.
5 (11) In the case of a corporation, for taxable years
6 beginning prior to January 1, 2015, and ending after
7 December 31, 2014, an amount equal to the sum of (i) 7% of
8 the taxpayer's net income for the period prior to January
9 1, 2015, as calculated under Section 202.5, and (ii) 5.25%
10 of the taxpayer's net income for the period after December
11 31, 2014, as calculated under Section 202.5.
12 (12) In the case of a corporation, for taxable years
13 beginning on or after January 1, 2015, and ending prior to
14 July 1, 2017, an amount equal to 5.25% of the taxpayer's
15 net income for the taxable year.
16 (13) In the case of a corporation, for taxable years
17 beginning prior to July 1, 2017, and ending after June 30,
18 2017, an amount equal to the sum of (i) 5.25% of the
19 taxpayer's net income for the period prior to July 1,
20 2017, as calculated under Section 202.5, and (ii) 7% of
21 the taxpayer's net income for the period after June 30,
22 2017, as calculated under Section 202.5.
23 (14) In the case of a corporation, for taxable years
24 beginning on or after July 1, 2017 and beginning prior to
25 January 1, 2021, an amount equal to 7% of the taxpayer's
26 net income for the taxable year.

SB1747- 123 -LRB102 12964 HLH 18307 b
1 (15) In the case of a corporation, for taxable years
2 beginning on or after January 1, 2021, an amount equal to
3 7.99% of the taxpayer's net income for the taxable year.
4 The rates under this subsection (b) are subject to the
5provisions of Section 201.5.
6 (b-5) Surcharge; sale or exchange of assets, properties,
7and intangibles of organization gaming licensees. For each of
8taxable years 2019 through 2027, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles (i)
12of an organization licensee under the Illinois Horse Racing
13Act of 1975 and (ii) of an organization gaming licensee under
14the Illinois Gambling Act. The amount of the surcharge is
15equal to the amount of federal income tax liability for the
16taxable year attributable to those sales and exchanges. The
17surcharge imposed shall not apply if:
18 (1) the organization gaming license, organization
19 license, or racetrack property is transferred as a result
20 of any of the following:
21 (A) bankruptcy, a receivership, or a debt
22 adjustment initiated by or against the initial
23 licensee or the substantial owners of the initial
24 licensee;
25 (B) cancellation, revocation, or termination of
26 any such license by the Illinois Gaming Board or the

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1 Illinois Racing Board;
2 (C) a determination by the Illinois Gaming Board
3 that transfer of the license is in the best interests
4 of Illinois gaming;
5 (D) the death of an owner of the equity interest in
6 a licensee;
7 (E) the acquisition of a controlling interest in
8 the stock or substantially all of the assets of a
9 publicly traded company;
10 (F) a transfer by a parent company to a wholly
11 owned subsidiary; or
12 (G) the transfer or sale to or by one person to
13 another person where both persons were initial owners
14 of the license when the license was issued; or
15 (2) the controlling interest in the organization
16 gaming license, organization license, or racetrack
17 property is transferred in a transaction to lineal
18 descendants in which no gain or loss is recognized or as a
19 result of a transaction in accordance with Section 351 of
20 the Internal Revenue Code in which no gain or loss is
21 recognized; or
22 (3) live horse racing was not conducted in 2010 at a
23 racetrack located within 3 miles of the Mississippi River
24 under a license issued pursuant to the Illinois Horse
25 Racing Act of 1975.
26 The transfer of an organization gaming license,

SB1747- 125 -LRB102 12964 HLH 18307 b
1organization license, or racetrack property by a person other
2than the initial licensee to receive the organization gaming
3license is not subject to a surcharge. The Department shall
4adopt rules necessary to implement and administer this
5subsection.
6 (c) Personal Property Tax Replacement Income Tax.
7Beginning on July 1, 1979 and thereafter, in addition to such
8income tax, there is also hereby imposed the Personal Property
9Tax Replacement Income Tax measured by net income on every
10corporation (including Subchapter S corporations), partnership
11and trust, for each taxable year ending after June 30, 1979.
12Such taxes are imposed on the privilege of earning or
13receiving income in or as a resident of this State. The
14Personal Property Tax Replacement Income Tax shall be in
15addition to the income tax imposed by subsections (a) and (b)
16of this Section and in addition to all other occupation or
17privilege taxes imposed by this State or by any municipal
18corporation or political subdivision thereof.
19 (d) Additional Personal Property Tax Replacement Income
20Tax Rates. The personal property tax replacement income tax
21imposed by this subsection and subsection (c) of this Section
22in the case of a corporation, other than a Subchapter S
23corporation and except as adjusted by subsection (d-1), shall
24be an additional amount equal to 2.85% of such taxpayer's net
25income for the taxable year, except that beginning on January
261, 1981, and thereafter, the rate of 2.85% specified in this

SB1747- 126 -LRB102 12964 HLH 18307 b
1subsection shall be reduced to 2.5%, and in the case of a
2partnership, trust or a Subchapter S corporation shall be an
3additional amount equal to 1.5% of such taxpayer's net income
4for the taxable year.
5 (d-1) Rate reduction for certain foreign insurers. In the
6case of a foreign insurer, as defined by Section 35A-5 of the
7Illinois Insurance Code, whose state or country of domicile
8imposes on insurers domiciled in Illinois a retaliatory tax
9(excluding any insurer whose premiums from reinsurance assumed
10are 50% or more of its total insurance premiums as determined
11under paragraph (2) of subsection (b) of Section 304, except
12that for purposes of this determination premiums from
13reinsurance do not include premiums from inter-affiliate
14reinsurance arrangements), beginning with taxable years ending
15on or after December 31, 1999, the sum of the rates of tax
16imposed by subsections (b) and (d) shall be reduced (but not
17increased) to the rate at which the total amount of tax imposed
18under this Act, net of all credits allowed under this Act,
19shall equal (i) the total amount of tax that would be imposed
20on the foreign insurer's net income allocable to Illinois for
21the taxable year by such foreign insurer's state or country of
22domicile if that net income were subject to all income taxes
23and taxes measured by net income imposed by such foreign
24insurer's state or country of domicile, net of all credits
25allowed or (ii) a rate of zero if no such tax is imposed on
26such income by the foreign insurer's state of domicile. For

SB1747- 127 -LRB102 12964 HLH 18307 b
1the purposes of this subsection (d-1), an inter-affiliate
2includes a mutual insurer under common management.
3 (1) For the purposes of subsection (d-1), in no event
4 shall the sum of the rates of tax imposed by subsections
5 (b) and (d) be reduced below the rate at which the sum of:
6 (A) the total amount of tax imposed on such
7 foreign insurer under this Act for a taxable year, net
8 of all credits allowed under this Act, plus
9 (B) the privilege tax imposed by Section 409 of
10 the Illinois Insurance Code, the fire insurance
11 company tax imposed by Section 12 of the Fire
12 Investigation Act, and the fire department taxes
13 imposed under Section 11-10-1 of the Illinois
14 Municipal Code,
15 equals 1.25% for taxable years ending prior to December
16 31, 2003, or 1.75% for taxable years ending on or after
17 December 31, 2003, of the net taxable premiums written for
18 the taxable year, as described by subsection (1) of
19 Section 409 of the Illinois Insurance Code. This paragraph
20 will in no event increase the rates imposed under
21 subsections (b) and (d).
22 (2) Any reduction in the rates of tax imposed by this
23 subsection shall be applied first against the rates
24 imposed by subsection (b) and only after the tax imposed
25 by subsection (a) net of all credits allowed under this
26 Section other than the credit allowed under subsection (i)

SB1747- 128 -LRB102 12964 HLH 18307 b
1 has been reduced to zero, against the rates imposed by
2 subsection (d).
3 This subsection (d-1) is exempt from the provisions of
4Section 250.
5 (e) Investment credit. A taxpayer shall be allowed a
6credit against the Personal Property Tax Replacement Income
7Tax for investment in qualified property.
8 (1) A taxpayer shall be allowed a credit equal to .5%
9 of the basis of qualified property placed in service
10 during the taxable year, provided such property is placed
11 in service on or after July 1, 1984. There shall be allowed
12 an additional credit equal to .5% of the basis of
13 qualified property placed in service during the taxable
14 year, provided such property is placed in service on or
15 after July 1, 1986, and the taxpayer's base employment
16 within Illinois has increased by 1% or more over the
17 preceding year as determined by the taxpayer's employment
18 records filed with the Illinois Department of Employment
19 Security. Taxpayers who are new to Illinois shall be
20 deemed to have met the 1% growth in base employment for the
21 first year in which they file employment records with the
22 Illinois Department of Employment Security. The provisions
23 added to this Section by Public Act 85-1200 (and restored
24 by Public Act 87-895) shall be construed as declaratory of
25 existing law and not as a new enactment. If, in any year,
26 the increase in base employment within Illinois over the

SB1747- 129 -LRB102 12964 HLH 18307 b
1 preceding year is less than 1%, the additional credit
2 shall be limited to that percentage times a fraction, the
3 numerator of which is .5% and the denominator of which is
4 1%, but shall not exceed .5%. The investment credit shall
5 not be allowed to the extent that it would reduce a
6 taxpayer's liability in any tax year below zero, nor may
7 any credit for qualified property be allowed for any year
8 other than the year in which the property was placed in
9 service in Illinois. For tax years ending on or after
10 December 31, 1987, and on or before December 31, 1988, the
11 credit shall be allowed for the tax year in which the
12 property is placed in service, or, if the amount of the
13 credit exceeds the tax liability for that year, whether it
14 exceeds the original liability or the liability as later
15 amended, such excess may be carried forward and applied to
16 the tax liability of the 5 taxable years following the
17 excess credit years if the taxpayer (i) makes investments
18 which cause the creation of a minimum of 2,000 full-time
19 equivalent jobs in Illinois, (ii) is located in an
20 enterprise zone established pursuant to the Illinois
21 Enterprise Zone Act and (iii) is certified by the
22 Department of Commerce and Community Affairs (now
23 Department of Commerce and Economic Opportunity) as
24 complying with the requirements specified in clause (i)
25 and (ii) by July 1, 1986. The Department of Commerce and
26 Community Affairs (now Department of Commerce and Economic

SB1747- 130 -LRB102 12964 HLH 18307 b
1 Opportunity) shall notify the Department of Revenue of all
2 such certifications immediately. For tax years ending
3 after December 31, 1988, the credit shall be allowed for
4 the tax year in which the property is placed in service,
5 or, if the amount of the credit exceeds the tax liability
6 for that year, whether it exceeds the original liability
7 or the liability as later amended, such excess may be
8 carried forward and applied to the tax liability of the 5
9 taxable years following the excess credit years. The
10 credit shall be applied to the earliest year for which
11 there is a liability. If there is credit from more than one
12 tax year that is available to offset a liability, earlier
13 credit shall be applied first.
14 (2) The term "qualified property" means property
15 which:
16 (A) is tangible, whether new or used, including
17 buildings and structural components of buildings and
18 signs that are real property, but not including land
19 or improvements to real property that are not a
20 structural component of a building such as
21 landscaping, sewer lines, local access roads, fencing,
22 parking lots, and other appurtenances;
23 (B) is depreciable pursuant to Section 167 of the
24 Internal Revenue Code, except that "3-year property"
25 as defined in Section 168(c)(2)(A) of that Code is not
26 eligible for the credit provided by this subsection

SB1747- 131 -LRB102 12964 HLH 18307 b
1 (e);
2 (C) is acquired by purchase as defined in Section
3 179(d) of the Internal Revenue Code;
4 (D) is used in Illinois by a taxpayer who is
5 primarily engaged in manufacturing, or in mining coal
6 or fluorite, or in retailing, or was placed in service
7 on or after July 1, 2006 in a River Edge Redevelopment
8 Zone established pursuant to the River Edge
9 Redevelopment Zone Act; and
10 (E) has not previously been used in Illinois in
11 such a manner and by such a person as would qualify for
12 the credit provided by this subsection (e) or
13 subsection (f).
14 (3) For purposes of this subsection (e),
15 "manufacturing" means the material staging and production
16 of tangible personal property by procedures commonly
17 regarded as manufacturing, processing, fabrication, or
18 assembling which changes some existing material into new
19 shapes, new qualities, or new combinations. For purposes
20 of this subsection (e) the term "mining" shall have the
21 same meaning as the term "mining" in Section 613(c) of the
22 Internal Revenue Code. For purposes of this subsection
23 (e), the term "retailing" means the sale of tangible
24 personal property for use or consumption and not for
25 resale, or services rendered in conjunction with the sale
26 of tangible personal property for use or consumption and

SB1747- 132 -LRB102 12964 HLH 18307 b
1 not for resale. For purposes of this subsection (e),
2 "tangible personal property" has the same meaning as when
3 that term is used in the Retailers' Occupation Tax Act,
4 and, for taxable years ending after December 31, 2008,
5 does not include the generation, transmission, or
6 distribution of electricity.
7 (4) The basis of qualified property shall be the basis
8 used to compute the depreciation deduction for federal
9 income tax purposes.
10 (5) If the basis of the property for federal income
11 tax depreciation purposes is increased after it has been
12 placed in service in Illinois by the taxpayer, the amount
13 of such increase shall be deemed property placed in
14 service on the date of such increase in basis.
15 (6) The term "placed in service" shall have the same
16 meaning as under Section 46 of the Internal Revenue Code.
17 (7) If during any taxable year, any property ceases to
18 be qualified property in the hands of the taxpayer within
19 48 months after being placed in service, or the situs of
20 any qualified property is moved outside Illinois within 48
21 months after being placed in service, the Personal
22 Property Tax Replacement Income Tax for such taxable year
23 shall be increased. Such increase shall be determined by
24 (i) recomputing the investment credit which would have
25 been allowed for the year in which credit for such
26 property was originally allowed by eliminating such

SB1747- 133 -LRB102 12964 HLH 18307 b
1 property from such computation and, (ii) subtracting such
2 recomputed credit from the amount of credit previously
3 allowed. For the purposes of this paragraph (7), a
4 reduction of the basis of qualified property resulting
5 from a redetermination of the purchase price shall be
6 deemed a disposition of qualified property to the extent
7 of such reduction.
8 (8) Unless the investment credit is extended by law,
9 the basis of qualified property shall not include costs
10 incurred after December 31, 2018, except for costs
11 incurred pursuant to a binding contract entered into on or
12 before December 31, 2018.
13 (9) Each taxable year ending before December 31, 2000,
14 a partnership may elect to pass through to its partners
15 the credits to which the partnership is entitled under
16 this subsection (e) for the taxable year. A partner may
17 use the credit allocated to him or her under this
18 paragraph only against the tax imposed in subsections (c)
19 and (d) of this Section. If the partnership makes that
20 election, those credits shall be allocated among the
21 partners in the partnership in accordance with the rules
22 set forth in Section 704(b) of the Internal Revenue Code,
23 and the rules promulgated under that Section, and the
24 allocated amount of the credits shall be allowed to the
25 partners for that taxable year. The partnership shall make
26 this election on its Personal Property Tax Replacement

SB1747- 134 -LRB102 12964 HLH 18307 b
1 Income Tax return for that taxable year. The election to
2 pass through the credits shall be irrevocable.
3 For taxable years ending on or after December 31,
4 2000, a partner that qualifies its partnership for a
5 subtraction under subparagraph (I) of paragraph (2) of
6 subsection (d) of Section 203 or a shareholder that
7 qualifies a Subchapter S corporation for a subtraction
8 under subparagraph (S) of paragraph (2) of subsection (b)
9 of Section 203 shall be allowed a credit under this
10 subsection (e) equal to its share of the credit earned
11 under this subsection (e) during the taxable year by the
12 partnership or Subchapter S corporation, determined in
13 accordance with the determination of income and
14 distributive share of income under Sections 702 and 704
15 and Subchapter S of the Internal Revenue Code. This
16 paragraph is exempt from the provisions of Section 250.
17 (f) Investment credit; Enterprise Zone; River Edge
18Redevelopment Zone.
19 (1) A taxpayer shall be allowed a credit against the
20 tax imposed by subsections (a) and (b) of this Section for
21 investment in qualified property which is placed in
22 service in an Enterprise Zone created pursuant to the
23 Illinois Enterprise Zone Act or, for property placed in
24 service on or after July 1, 2006, a River Edge
25 Redevelopment Zone established pursuant to the River Edge
26 Redevelopment Zone Act. For partners, shareholders of

SB1747- 135 -LRB102 12964 HLH 18307 b
1 Subchapter S corporations, and owners of limited liability
2 companies, if the liability company is treated as a
3 partnership for purposes of federal and State income
4 taxation, there shall be allowed a credit under this
5 subsection (f) to be determined in accordance with the
6 determination of income and distributive share of income
7 under Sections 702 and 704 and Subchapter S of the
8 Internal Revenue Code. The credit shall be .5% of the
9 basis for such property. The credit shall be available
10 only in the taxable year in which the property is placed in
11 service in the Enterprise Zone or River Edge Redevelopment
12 Zone and shall not be allowed to the extent that it would
13 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, 1985, 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.

SB1747- 136 -LRB102 12964 HLH 18307 b
1 (2) The term qualified property means property which:
2 (A) is tangible, whether new or used, including
3 buildings and structural components of buildings;
4 (B) is depreciable pursuant to Section 167 of the
5 Internal Revenue Code, except that "3-year property"
6 as defined in Section 168(c)(2)(A) of that Code is not
7 eligible for the credit provided by this subsection
8 (f);
9 (C) is acquired by purchase as defined in Section
10 179(d) of the Internal Revenue Code;
11 (D) is used in the Enterprise Zone or River Edge
12 Redevelopment Zone by the taxpayer; and
13 (E) has not been previously used in Illinois in
14 such a manner and by such a person as would qualify for
15 the credit provided by this subsection (f) or
16 subsection (e).
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 the Enterprise Zone or River Edge
23 Redevelopment Zone by the taxpayer, the amount of such
24 increase shall be deemed property placed in service on the
25 date of such increase in basis.
26 (5) The term "placed in service" shall have the same

SB1747- 137 -LRB102 12964 HLH 18307 b
1 meaning as under Section 46 of the Internal Revenue Code.
2 (6) If during any taxable year, any property ceases to
3 be qualified property in the hands of the taxpayer within
4 48 months after being placed in service, or the situs of
5 any qualified property is moved outside the Enterprise
6 Zone or River Edge Redevelopment Zone within 48 months
7 after being placed in service, the tax imposed under
8 subsections (a) and (b) of this Section for such taxable
9 year shall be increased. Such increase shall be determined
10 by (i) recomputing the investment credit which would have
11 been allowed for the year in which credit for such
12 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) There shall be allowed an additional credit equal
21 to 0.5% of the basis of qualified property placed in
22 service during the taxable year in a River Edge
23 Redevelopment Zone, provided such property is placed in
24 service on or after July 1, 2006, and the taxpayer's base
25 employment within Illinois has increased by 1% or more
26 over the preceding year as determined by the taxpayer's

SB1747- 138 -LRB102 12964 HLH 18307 b
1 employment records filed with the Illinois Department of
2 Employment Security. Taxpayers who are new to Illinois
3 shall be deemed to have met the 1% growth in base
4 employment for the first year in which they file
5 employment records with the Illinois Department of
6 Employment Security. If, in any year, the increase in base
7 employment within Illinois over the preceding year is less
8 than 1%, the additional credit shall be limited to that
9 percentage times a fraction, the numerator of which is
10 0.5% and the denominator of which is 1%, but shall not
11 exceed 0.5%.
12 (8) For taxable years beginning on or after January 1,
13 2021, there shall be allowed an Enterprise Zone
14 construction jobs credit against the taxes imposed under
15 subsections (a) and (b) of this Section as provided in
16 Section 13 of the Illinois Enterprise Zone Act.
17 The credit or credits may not reduce the taxpayer's
18 liability to less than zero. If the amount of the credit or
19 credits exceeds the taxpayer's liability, the excess may
20 be carried forward and applied against the taxpayer's
21 liability in succeeding calendar years in the same manner
22 provided under paragraph (4) of Section 211 of this Act.
23 The credit or credits shall be applied to the earliest
24 year for which there is a tax liability. If there are
25 credits from more than one taxable year that are available
26 to offset a liability, the earlier credit shall be applied

SB1747- 139 -LRB102 12964 HLH 18307 b
1 first.
2 For partners, shareholders of Subchapter S
3 corporations, and owners of limited liability companies,
4 if the liability company is treated as a partnership for
5 the purposes of federal and State income taxation, there
6 shall be allowed a credit under this Section to be
7 determined in accordance with the determination of income
8 and distributive share of income under Sections 702 and
9 704 and Subchapter S of the Internal Revenue Code.
10 The total aggregate amount of credits awarded under
11 the Blue Collar Jobs Act (Article 20 of Public Act 101-9
12 this amendatory Act of the 101st General Assembly) shall
13 not exceed $20,000,000 in any State fiscal year.
14 This paragraph (8) is exempt from the provisions of
15 Section 250.
16 (f-1) Investment credit; Energy Transition Zone.
17 (1) For tax years beginning on or after January 1,
18 2021, a taxpayer shall be allowed a credit against the tax
19 imposed by subsections (a) and (b) of this Section for
20 investment in qualified property which is placed in
21 service for the use of the production of green energy by a
22 green energy enterprise in an Energy Transition Zone
23 created pursuant to the Illinois Energy Transition Zone
24 Act. For partners, shareholders of Subchapter S
25 corporations, and owners of limited liability companies,
26 if the liability company is treated as a partnership for

SB1747- 140 -LRB102 12964 HLH 18307 b
1 purposes of federal and State income taxation, there shall
2 be allowed a credit under this subsection (f-1) to be
3 determined in accordance with the determination of income
4 and distributive share of income under Sections 702 and
5 704 and Subchapter S of the Internal Revenue Code. The
6 credit shall be 0.5% of the basis for such property. The
7 credit shall be available only in the taxable year in
8 which the property is placed in service in the Energy
9 Transition Zone and shall not be allowed to the extent
10 that it would reduce a taxpayer's liability for the tax
11 imposed by subsections (a) and (b) of this Section to
12 below zero. The credit shall be allowed for the tax year in
13 which the property is placed in service, or, if the amount
14 of the credit exceeds the tax liability for that year,
15 whether it exceeds the original liability or the liability
16 as later amended, such excess may be carried forward and
17 applied to the tax liability of the 5 taxable years
18 following the excess credit year. The credit shall be
19 applied to the earliest year for which there is a
20 liability. If there is credit from more than one tax year
21 that is available to offset a liability, the credit
22 accruing first in time shall be applied first.
23 (2) The term qualified property means property which:
24 (A) is tangible, whether new or used, including
25 buildings and structural components of buildings;
26 (B) is depreciable pursuant to Section 167 of the

SB1747- 141 -LRB102 12964 HLH 18307 b
1 Internal Revenue Code, except that "3-year property"
2 as defined in Section 168(c)(2)(A) of that Code is not
3 eligible for the credit provided by this subsection
4 (f-1);
5 (C) is acquired by purchase as defined in Section
6 179(d) of the Internal Revenue Code;
7 (D) is used in the Energy Transition Zone by the
8 taxpayer in relation to producing green energy; and
9 (E) has not been previously used in Illinois in
10 such a manner and by such a person as would qualify for
11 the credit provided by this subsection (f-1).
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 Energy Transition Zone by the
18 taxpayer, the amount of such increase shall be deemed
19 property placed in service on the date of such increase in
20 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 Energy

SB1747- 142 -LRB102 12964 HLH 18307 b
1 Transition Zone within 48 months after being placed in
2 service, the tax imposed under subsections (a) and (b) of
3 this Section for such taxable year shall be increased.
4 Such increase shall be determined by (i) recomputing the
5 investment credit which would have been allowed for the
6 year in which credit for such property was originally
7 allowed by eliminating such property from such
8 computation, and (ii) subtracting such recomputed credit
9 from the amount of credit previously allowed. For the
10 purposes of this paragraph (6), a reduction of the basis
11 of qualified property resulting from a redetermination of
12 the purchase price shall be deemed a disposition of
13 qualified property to the extent of such reduction.
14 (g) (Blank).
15 (h) Investment credit; High Impact Business.
16 (1) Subject to subsections (b) and (b-5) of Section
17 5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
18 be allowed a credit against the tax imposed by subsections
19 (a) and (b) of this Section for investment in qualified
20 property which is placed in service by a Department of
21 Commerce and Economic Opportunity designated High Impact
22 Business. The credit shall be .5% of the basis for such
23 property. The credit shall not be available (i) until the
24 minimum investments in qualified property set forth in
25 subdivision (a)(3)(A) of Section 5.5 of the Illinois
26 Enterprise Zone Act have been satisfied or (ii) until the

SB1747- 143 -LRB102 12964 HLH 18307 b
1 time authorized in subsection (b-5) of the Illinois
2 Enterprise Zone Act for entities designated as High Impact
3 Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
4 (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
5 Act, and shall not be allowed to the extent that it would
6 reduce a taxpayer's liability for the tax imposed by
7 subsections (a) and (b) of this Section to below zero. The
8 credit applicable to such investments shall be taken in
9 the taxable year in which such investments have been
10 completed. The credit for additional investments beyond
11 the minimum investment by a designated high impact
12 business authorized under subdivision (a)(3)(A) of Section
13 5.5 of the Illinois Enterprise Zone Act shall be available
14 only in the taxable year in which the property is placed in
15 service and shall not be allowed to the extent that it
16 would reduce a taxpayer's liability for the tax imposed by
17 subsections (a) and (b) of this Section to below zero. For
18 tax years ending on or after December 31, 1987, the credit
19 shall be allowed for the tax year in which the property is
20 placed in service, or, if the amount of the credit exceeds
21 the tax liability for that year, whether it exceeds the
22 original liability or the liability as later amended, such
23 excess may be carried forward and applied to the tax
24 liability of the 5 taxable years following the excess
25 credit year. The credit shall be applied to the earliest
26 year for which there is a liability. If there is credit

SB1747- 144 -LRB102 12964 HLH 18307 b
1 from more than one tax year that is available to offset a
2 liability, the credit accruing first in time shall be
3 applied first.
4 Changes made in this subdivision (h)(1) by Public Act
5 88-670 restore changes made by Public Act 85-1182 and
6 reflect existing law.
7 (2) The term qualified property means property which:
8 (A) is tangible, whether new or used, including
9 buildings and structural components of buildings;
10 (B) is depreciable pursuant to Section 167 of the
11 Internal Revenue Code, except that "3-year property"
12 as defined in Section 168(c)(2)(A) of that Code is not
13 eligible for the credit provided by this subsection
14 (h);
15 (C) is acquired by purchase as defined in Section
16 179(d) of the Internal Revenue Code; and
17 (D) is not eligible for the Enterprise Zone
18 Investment Credit provided by subsection (f) of this
19 Section.
20 (3) The basis of qualified property shall be the basis
21 used to compute the depreciation deduction for federal
22 income tax purposes.
23 (4) If the basis of the property for federal income
24 tax depreciation purposes is increased after it has been
25 placed in service in a federally designated Foreign Trade
26 Zone or Sub-Zone located in Illinois by the taxpayer, the

SB1747- 145 -LRB102 12964 HLH 18307 b
1 amount of such increase shall be deemed property placed in
2 service on the date of such increase in basis.
3 (5) The term "placed in service" shall have the same
4 meaning as under Section 46 of the Internal Revenue Code.
5 (6) If during any taxable year ending on or before
6 December 31, 1996, any property ceases to be qualified
7 property in the hands of the taxpayer within 48 months
8 after being placed in service, or the situs of any
9 qualified property is moved outside Illinois within 48
10 months after being placed in service, the tax imposed
11 under subsections (a) and (b) of this Section for such
12 taxable year shall be increased. Such increase shall be
13 determined by (i) recomputing the investment credit which
14 would have been allowed for the year in which credit for
15 such property was originally allowed by eliminating such
16 property from such computation, and (ii) subtracting such
17 recomputed credit from the amount of credit previously
18 allowed. For the purposes of this paragraph (6), a
19 reduction of the basis of qualified property resulting
20 from a redetermination of the purchase price shall be
21 deemed a disposition of qualified property to the extent
22 of such reduction.
23 (7) Beginning with tax years ending after December 31,
24 1996, if a taxpayer qualifies for the credit under this
25 subsection (h) and thereby is granted a tax abatement and
26 the taxpayer relocates its entire facility in violation of

SB1747- 146 -LRB102 12964 HLH 18307 b
1 the explicit terms and length of the contract under
2 Section 18-183 of the Property Tax Code, the tax imposed
3 under subsections (a) and (b) of this Section shall be
4 increased for the taxable year in which the taxpayer
5 relocated its facility by an amount equal to the amount of
6 credit received by the taxpayer under this subsection (h).
7 (h-5) High Impact Business construction constructions jobs
8credit. For taxable years beginning on or after January 1,
92021, there shall also be allowed a High Impact Business
10construction jobs credit against the tax imposed under
11subsections (a) and (b) of this Section as provided in
12subsections (i) and (j) of Section 5.5 of the Illinois
13Enterprise Zone Act.
14 The credit or credits may not reduce the taxpayer's
15liability to less than zero. If the amount of the credit or
16credits exceeds the taxpayer's liability, the excess may be
17carried forward and applied against the taxpayer's liability
18in succeeding calendar years in the manner provided under
19paragraph (4) of Section 211 of this Act. The credit or credits
20shall be applied to the earliest year for which there is a tax
21liability. If there are credits from more than one taxable
22year that are available to offset a liability, the earlier
23credit shall be applied first.
24 For partners, shareholders of Subchapter S corporations,
25and owners of limited liability companies, if the liability
26company is treated as a partnership for the purposes of

SB1747- 147 -LRB102 12964 HLH 18307 b
1federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and Subchapter S of the Internal
5Revenue Code.
6 The total aggregate amount of credits awarded under the
7Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
8amendatory Act of the 101st General Assembly) shall not exceed
9$20,000,000 in any State fiscal year.
10 This subsection (h-5) is exempt from the provisions of
11Section 250.
12 (i) Credit for Personal Property Tax Replacement Income
13Tax. For tax years ending prior to December 31, 2003, a credit
14shall be allowed against the tax imposed by subsections (a)
15and (b) of this Section for the tax imposed by subsections (c)
16and (d) of this Section. This credit shall be computed by
17multiplying the tax imposed by subsections (c) and (d) of this
18Section by a fraction, the numerator of which is base income
19allocable to Illinois and the denominator of which is Illinois
20base income, and further multiplying the product by the tax
21rate imposed by subsections (a) and (b) of this Section.
22 Any credit earned on or after December 31, 1986 under this
23subsection which is unused in the year the credit is computed
24because it exceeds the tax liability imposed by subsections
25(a) and (b) for that year (whether it exceeds the original
26liability or the liability as later amended) may be carried

SB1747- 148 -LRB102 12964 HLH 18307 b
1forward and applied to the tax liability imposed by
2subsections (a) and (b) of the 5 taxable years following the
3excess credit year, provided that no credit may be carried
4forward to any year ending on or after December 31, 2003. This
5credit shall be applied first to the earliest year for which
6there is a liability. If there is a credit under this
7subsection from more than one tax year that is available to
8offset a liability the earliest credit arising under this
9subsection shall be applied first.
10 If, during any taxable year ending on or after December
1131, 1986, the tax imposed by subsections (c) and (d) of this
12Section for which a taxpayer has claimed a credit under this
13subsection (i) is reduced, the amount of credit for such tax
14shall also be reduced. Such reduction shall be determined by
15recomputing the credit to take into account the reduced tax
16imposed by subsections (c) and (d). If any portion of the
17reduced amount of credit has been carried to a different
18taxable year, an amended return shall be filed for such
19taxable year to reduce the amount of credit claimed.
20 (j) Training expense credit. Beginning with tax years
21ending on or after December 31, 1986 and prior to December 31,
222003, a taxpayer shall be allowed a credit against the tax
23imposed by subsections (a) and (b) under this Section for all
24amounts paid or accrued, on behalf of all persons employed by
25the taxpayer in Illinois or Illinois residents employed
26outside of Illinois by a taxpayer, for educational or

SB1747- 149 -LRB102 12964 HLH 18307 b
1vocational training in semi-technical or technical fields or
2semi-skilled or skilled fields, which were deducted from gross
3income in the computation of taxable income. The credit
4against the tax imposed by subsections (a) and (b) shall be
51.6% of such training expenses. For partners, shareholders of
6subchapter S corporations, and owners of limited liability
7companies, if the liability company is treated as a
8partnership for purposes of federal and State income taxation,
9there shall be allowed a credit under this subsection (j) to be
10determined in accordance with the determination of income and
11distributive share of income under Sections 702 and 704 and
12subchapter S of the Internal Revenue Code.
13 Any credit allowed under this subsection which is unused
14in the year the credit is earned may be carried forward to each
15of the 5 taxable years following the year for which the credit
16is first computed until it is used. This credit shall be
17applied first to the earliest year for which there is a
18liability. If there is a credit under this subsection from
19more than one tax year that is available to offset a liability,
20the earliest credit arising under this subsection shall be
21applied first. No carryforward credit may be claimed in any
22tax year ending on or after December 31, 2003.
23 (k) Research and development credit. For tax years ending
24after July 1, 1990 and prior to December 31, 2003, and
25beginning again for tax years ending on or after December 31,
262004, and ending prior to January 1, 2027, a taxpayer shall be

SB1747- 150 -LRB102 12964 HLH 18307 b
1allowed a credit against the tax imposed by subsections (a)
2and (b) of this Section for increasing research activities in
3this State. The credit allowed against the tax imposed by
4subsections (a) and (b) shall be equal to 6 1/2% of the
5qualifying expenditures for increasing research activities in
6this State. For partners, shareholders of subchapter S
7corporations, and owners of limited liability companies, if
8the liability company is treated as a partnership for purposes
9of federal and State income taxation, there shall be allowed a
10credit under this subsection to be determined in accordance
11with the determination of income and distributive share of
12income under Sections 702 and 704 and subchapter S of the
13Internal Revenue Code.
14 For purposes of this subsection, "qualifying expenditures"
15means the qualifying expenditures as defined for the federal
16credit for increasing research activities which would be
17allowable under Section 41 of the Internal Revenue Code and
18which are conducted in this State, "qualifying expenditures
19for increasing research activities in this State" means the
20excess of qualifying expenditures for the taxable year in
21which incurred over qualifying expenditures for the base
22period, "qualifying expenditures for the base period" means
23the average of the qualifying expenditures for each year in
24the base period, and "base period" means the 3 taxable years
25immediately preceding the taxable year for which the
26determination is being made.

SB1747- 151 -LRB102 12964 HLH 18307 b
1 Any credit in excess of the tax liability for the taxable
2year may be carried forward. A taxpayer may elect to have the
3unused credit shown on its final completed return carried over
4as a credit against the tax liability for the following 5
5taxable years or until it has been fully used, whichever
6occurs first; provided that no credit earned in a tax year
7ending prior to December 31, 2003 may be carried forward to any
8year ending on or after December 31, 2003.
9 If an unused credit is carried forward to a given year from
102 or more earlier years, that credit arising in the earliest
11year will be applied first against the tax liability for the
12given year. If a tax liability for the given year still
13remains, the credit from the next earliest year will then be
14applied, and so on, until all credits have been used or no tax
15liability for the given year remains. Any remaining unused
16credit or credits then will be carried forward to the next
17following year in which a tax liability is incurred, except
18that no credit can be carried forward to a year which is more
19than 5 years after the year in which the expense for which the
20credit is given was incurred.
21 No inference shall be drawn from Public Act 91-644 this
22amendatory Act of the 91st General Assembly in construing this
23Section for taxable years beginning before January 1, 1999.
24 It is the intent of the General Assembly that the research
25and development credit under this subsection (k) shall apply
26continuously for all tax years ending on or after December 31,

SB1747- 152 -LRB102 12964 HLH 18307 b
12004 and ending prior to January 1, 2027, including, but not
2limited to, the period beginning on January 1, 2016 and ending
3on July 6, 2017 (the effective date of Public Act 100-22) this
4amendatory Act of the 100th General Assembly. All actions
5taken in reliance on the continuation of the credit under this
6subsection (k) by any taxpayer are hereby validated.
7 (l) Environmental Remediation Tax Credit.
8 (i) For tax years ending after December 31, 1997 and
9 on or before December 31, 2001, a taxpayer shall be
10 allowed a credit against the tax imposed by subsections
11 (a) and (b) of this Section for certain amounts paid for
12 unreimbursed eligible remediation costs, as specified in
13 this subsection. For purposes of this Section,
14 "unreimbursed eligible remediation costs" means costs
15 approved by the Illinois Environmental Protection Agency
16 ("Agency") under Section 58.14 of the Environmental
17 Protection Act that were paid in performing environmental
18 remediation at a site for which a No Further Remediation
19 Letter was issued by the Agency and recorded under Section
20 58.10 of the Environmental Protection Act. The credit must
21 be claimed for the taxable year in which Agency approval
22 of the eligible remediation costs is granted. The credit
23 is not available to any taxpayer if the taxpayer or any
24 related party caused or contributed to, in any material
25 respect, a release of regulated substances on, in, or
26 under the site that was identified and addressed by the

SB1747- 153 -LRB102 12964 HLH 18307 b
1 remedial action pursuant to the Site Remediation Program
2 of the Environmental Protection Act. After the Pollution
3 Control Board rules are adopted pursuant to the Illinois
4 Administrative Procedure Act for the administration and
5 enforcement of Section 58.9 of the Environmental
6 Protection Act, determinations as to credit availability
7 for purposes of this Section shall be made consistent with
8 those rules. For purposes of this Section, "taxpayer"
9 includes a person whose tax attributes the taxpayer has
10 succeeded to under Section 381 of the Internal Revenue
11 Code and "related party" includes the persons disallowed a
12 deduction for losses by paragraphs (b), (c), and (f)(1) of
13 Section 267 of the Internal Revenue Code by virtue of
14 being a related taxpayer, as well as any of its partners.
15 The credit allowed against the tax imposed by subsections
16 (a) and (b) shall be equal to 25% of the unreimbursed
17 eligible remediation costs in excess of $100,000 per site,
18 except that the $100,000 threshold shall not apply to any
19 site contained in an enterprise zone as determined by the
20 Department of Commerce and Community Affairs (now
21 Department of Commerce and Economic Opportunity). The
22 total credit allowed shall not exceed $40,000 per year
23 with a maximum total of $150,000 per site. For partners
24 and shareholders of subchapter S corporations, there shall
25 be allowed a credit under this subsection to be determined
26 in accordance with the determination of income and

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1 distributive share of income under Sections 702 and 704
2 and subchapter S of the Internal Revenue Code.
3 (ii) A credit allowed under this subsection that is
4 unused in the year the credit is earned may be carried
5 forward to each of the 5 taxable years following the year
6 for which the credit is first earned until it is used. The
7 term "unused credit" does not include any amounts of
8 unreimbursed eligible remediation costs in excess of the
9 maximum credit per site authorized under paragraph (i).
10 This credit shall be applied first to the earliest year
11 for which there is a liability. If there is a credit under
12 this subsection from more than one tax year that is
13 available to offset a liability, the earliest credit
14 arising under this subsection shall be applied first. A
15 credit allowed under this subsection may be sold to a
16 buyer as part of a sale of all or part of the remediation
17 site for which the credit was granted. The purchaser of a
18 remediation site and the tax credit shall succeed to the
19 unused credit and remaining carry-forward period of the
20 seller. To perfect the transfer, the assignor shall record
21 the transfer in the chain of title for the site and provide
22 written notice to the Director of the Illinois Department
23 of Revenue of the assignor's intent to sell the
24 remediation site and the amount of the tax credit to be
25 transferred as a portion of the sale. In no event may a
26 credit be transferred to any taxpayer if the taxpayer or a

SB1747- 155 -LRB102 12964 HLH 18307 b
1 related party would not be eligible under the provisions
2 of subsection (i).
3 (iii) For purposes of this Section, the term "site"
4 shall have the same meaning as under Section 58.2 of the
5 Environmental Protection Act.
6 (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the
8custodian of one or more qualifying pupils shall be allowed a
9credit against the tax imposed by subsections (a) and (b) of
10this Section for qualified education expenses incurred on
11behalf of the qualifying pupils. The credit shall be equal to
1225% of qualified education expenses, but in no event may the
13total credit under this subsection claimed by a family that is
14the custodian of qualifying pupils exceed (i) $500 for tax
15years ending prior to December 31, 2017, and (ii) $750 for tax
16years ending on or after December 31, 2017. In no event shall a
17credit under this subsection reduce the taxpayer's liability
18under this Act to less than zero. Notwithstanding any other
19provision of law, for taxable years beginning on or after
20January 1, 2017, no taxpayer may claim a credit under this
21subsection (m) if the taxpayer's adjusted gross income for the
22taxable year exceeds (i) $500,000, in the case of spouses
23filing a joint federal tax return or (ii) $250,000, in the case
24of all other taxpayers. This subsection is exempt from the
25provisions of Section 250 of this Act.
26 For purposes of this subsection:

SB1747- 156 -LRB102 12964 HLH 18307 b
1 "Qualifying pupils" means individuals who (i) are
2residents of the State of Illinois, (ii) are under the age of
321 at the close of the school year for which a credit is
4sought, and (iii) during the school year for which a credit is
5sought were full-time pupils enrolled in a kindergarten
6through twelfth grade education program at any school, as
7defined in this subsection.
8 "Qualified education expense" means the amount incurred on
9behalf of a qualifying pupil in excess of $250 for tuition,
10book fees, and lab fees at the school in which the pupil is
11enrolled during the regular school year.
12 "School" means any public or nonpublic elementary or
13secondary school in Illinois that is in compliance with Title
14VI of the Civil Rights Act of 1964 and attendance at which
15satisfies the requirements of Section 26-1 of the School Code,
16except that nothing shall be construed to require a child to
17attend any particular public or nonpublic school to qualify
18for the credit under this Section.
19 "Custodian" means, with respect to qualifying pupils, an
20Illinois resident who is a parent, the parents, a legal
21guardian, or the legal guardians of the qualifying pupils.
22 (n) River Edge Redevelopment Zone site remediation tax
23credit.
24 (i) For tax years ending on or after December 31,
25 2006, a taxpayer shall be allowed a credit against the tax
26 imposed by subsections (a) and (b) of this Section for

SB1747- 157 -LRB102 12964 HLH 18307 b
1 certain amounts paid for unreimbursed eligible remediation
2 costs, as specified in this subsection. For purposes of
3 this Section, "unreimbursed eligible remediation costs"
4 means costs approved by the Illinois Environmental
5 Protection Agency ("Agency") under Section 58.14a of the
6 Environmental Protection Act that were paid in performing
7 environmental remediation at a site within a River Edge
8 Redevelopment Zone for which a No Further Remediation
9 Letter was issued by the Agency and recorded under Section
10 58.10 of the Environmental Protection Act. The credit must
11 be claimed for the taxable year in which Agency approval
12 of the eligible remediation costs is granted. The credit
13 is not available to any taxpayer if the taxpayer or any
14 related party caused or contributed to, in any material
15 respect, a release of regulated substances on, in, or
16 under the site that was identified and addressed by the
17 remedial action pursuant to the Site Remediation Program
18 of the Environmental Protection Act. Determinations as to
19 credit availability for purposes of this Section shall be
20 made consistent with rules adopted by the Pollution
21 Control Board pursuant to the Illinois Administrative
22 Procedure Act for the administration and enforcement of
23 Section 58.9 of the Environmental Protection Act. For
24 purposes of this Section, "taxpayer" includes a person
25 whose tax attributes the taxpayer has succeeded to under
26 Section 381 of the Internal Revenue Code and "related

SB1747- 158 -LRB102 12964 HLH 18307 b
1 party" includes the persons disallowed a deduction for
2 losses by paragraphs (b), (c), and (f)(1) of Section 267
3 of the Internal Revenue Code by virtue of being a related
4 taxpayer, as well as any of its partners. The credit
5 allowed against the tax imposed by subsections (a) and (b)
6 shall be equal to 25% of the unreimbursed eligible
7 remediation costs in excess of $100,000 per site.
8 (ii) A credit allowed under this subsection that is
9 unused in the year the credit is earned may be carried
10 forward to each of the 5 taxable years following the year
11 for which the credit is first earned until it is used. This
12 credit shall be applied first to the earliest year for
13 which there is a liability. If there is a credit under this
14 subsection from more than one tax year that is available
15 to offset a liability, the earliest credit arising under
16 this subsection shall be applied first. A credit allowed
17 under this subsection may be sold to a buyer as part of a
18 sale of all or part of the remediation site for which the
19 credit was granted. The purchaser of a remediation site
20 and the tax credit shall succeed to the unused credit and
21 remaining carry-forward period of the seller. To perfect
22 the transfer, the assignor shall record the transfer in
23 the chain of title for the site and provide written notice
24 to the Director of the Illinois Department of Revenue of
25 the assignor's intent to sell the remediation site and the
26 amount of the tax credit to be transferred as a portion of

SB1747- 159 -LRB102 12964 HLH 18307 b
1 the sale. In no event may a credit be transferred to any
2 taxpayer if the taxpayer or a related party would not be
3 eligible under the provisions of subsection (i).
4 (iii) For purposes of this Section, the term "site"
5 shall have the same meaning as under Section 58.2 of the
6 Environmental Protection Act.
7 (o) For each of taxable years during the Compassionate Use
8of Medical Cannabis Program, a surcharge is imposed on all
9taxpayers on income arising from the sale or exchange of
10capital assets, depreciable business property, real property
11used in the trade or business, and Section 197 intangibles of
12an organization registrant under the Compassionate Use of
13Medical Cannabis Program Act. The amount of the surcharge is
14equal to the amount of federal income tax liability for the
15taxable year attributable to those sales and exchanges. The
16surcharge imposed does not apply if:
17 (1) the medical cannabis cultivation center
18 registration, medical cannabis dispensary registration, or
19 the property of a registration is transferred as a result
20 of any of the following:
21 (A) bankruptcy, a receivership, or a debt
22 adjustment initiated by or against the initial
23 registration or the substantial owners of the initial
24 registration;
25 (B) cancellation, revocation, or termination of
26 any registration by the Illinois Department of Public

SB1747- 160 -LRB102 12964 HLH 18307 b
1 Health;
2 (C) a determination by the Illinois Department of
3 Public Health that transfer of the registration is in
4 the best interests of Illinois qualifying patients as
5 defined by the Compassionate Use of Medical Cannabis
6 Program Act;
7 (D) the death of an owner of the equity interest in
8 a registrant;
9 (E) the acquisition of a controlling interest in
10 the stock or substantially all of the assets of a
11 publicly traded company;
12 (F) a transfer by a parent company to a wholly
13 owned subsidiary; or
14 (G) the transfer or sale to or by one person to
15 another person where both persons were initial owners
16 of the registration when the registration was issued;
17 or
18 (2) the cannabis cultivation center registration,
19 medical cannabis dispensary registration, or the
20 controlling interest in a registrant's property is
21 transferred in a transaction to lineal descendants in
22 which no gain or loss is recognized or as a result of a
23 transaction in accordance with Section 351 of the Internal
24 Revenue Code in which no gain or loss is recognized.
25(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
26effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;

SB1747- 161 -LRB102 12964 HLH 18307 b
1101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 11-18-20.)
2 Section 10-25. The Retailers' Occupation Tax Act is
3amended by adding Section 5k-1 as follows:
4 (35 ILCS 120/5k-1 new)
5 Sec. 5k-1. Building materials exemption; Energy Transition
6Zone.
7 (a) Each retailer who makes a qualified sale of building
8materials to be incorporated into a green energy project, as
9defined in the Energy Transition Zone Act, being built by a
10green energy enterprise in an Energy Transition Zone
11established by or municipality under the Illinois Energy
12Transition Zone Act by remodeling, rehabilitation or new
13construction, may deduct receipts from such sales when
14calculating the tax imposed by this Act. For purposes of this
15Section, "qualified sale" means a sale of building materials
16that will be incorporated into real estate as part of a
17building project for which an Energy Transition Zone Building
18Materials Exemption Certificate has been issued to the
19purchaser by the Department. A construction contractor or
20other entity shall not make tax-free purchases unless it has
21an active Energy Transition Zone Building Materials Exemption
22Certificate issued by the Department at the time of the
23purchase.
24 (b) To document the exemption allowed under this Section,

SB1747- 162 -LRB102 12964 HLH 18307 b
1the retailer must obtain from the purchaser the certification
2required under subsection (c), which must contain the Energy
3Transition Zone Building Materials Exemption Certificate
4number issued to the purchaser by the Department. Upon request
5from the Energy Transition Zone Administrator, the Department
6shall issue an Energy Transition Zone Building Materials
7Exemption Certificate for each construction contractor or
8other entity identified by the Energy Transition Zone
9Administrator. The Department shall make the Energy Transition
10Zone Building Materials Exemption Certificates available
11directly to each Energy Transition Zone Administrator,
12construction contractor, or other entity. The request for
13Energy Transition Zone Building Materials Exemption
14Certificates from the Energy Transition Zone Administrator to
15the Department must include the following information:
16 (1) the name and address of the construction
17 contractor or other entity;
18 (2) the name and number of the Energy Transition Zone;
19 (3) the name and location or address of the green
20 energy enterprise;
21 (4) the estimated amount of the exemption for each
22 construction contractor or other entity for which a
23 request for Energy Transition Zone Building Materials
24 Exemption Certificate is made, based on a stated estimated
25 average tax rate and the percentage of the contract that
26 consists of materials;

SB1747- 163 -LRB102 12964 HLH 18307 b
1 (5) the period of time over which supplies for the
2 project are expected to be purchased; and
3 (6) other reasonable information as the Department may
4 require, including, but not limited to FEIN numbers, to
5 determine if the contractor or other entity, or any
6 partner, or a corporate officer, and in the case of a
7 limited liability company, any manager or member, of the
8 construction contractor or other entity, is or has been
9 the owner, a partner, a corporate officer, and in the case
10 of a limited liability company, a manager or member, of a
11 person that is in default for moneys due to the Department
12 under this Act or any other tax or fee Act administered by
13 the Department.
14 The Department shall issue the Energy Transition Zone
15Building Materials Exemption Certificates within 3 business
16days after receipt of request from the Zone Administrator.
17This requirement does not apply in circumstances where the
18Department, for reasonable cause, is unable to issue the
19Energy Transition Zone Building Materials Exemption
20Certificate within 3 business days. The Department may refuse
21to issue an Energy Transition Zone Building Materials
22Exemption Certificate if the owner, any partner, or a
23corporate officer, and in the case of a limited liability
24company, any manager or member, of the construction contractor
25or other entity is or has been the owner, a partner, a
26corporate officer, and in the case of a limited liability

SB1747- 164 -LRB102 12964 HLH 18307 b
1company, a manager or member, of a person that is in default
2for moneys due to the Department under this Act or any other
3tax or fee Act administered by the Department. The Energy
4Transition Zone Building Materials Exemption Certificate shall
5contain language stating that if the construction contractor
6or other entity who is issued the Energy Transition Zone
7Building Materials Exemption Certificate makes a tax-exempt
8purchase, as described in this Section, that is not eligible
9for exemption under this Section or allows another person to
10make a tax-exempt purchase, as described in this Section, that
11is not eligible for exemption under this Section, then, in
12addition to any tax or other penalty imposed, the construction
13contractor or other entity is subject to a penalty equal to the
14tax that would have been paid by the retailer under this Act as
15well as any applicable local retailers' occupation tax on the
16purchase that is not eligible for the exemption.
17 The Department, in its discretion, may require that the
18request for Energy Transition Zone Building Materials
19Exemption Certificates be submitted electronically. The
20Department may, in its discretion, issue the Energy Transition
21Zone Building Materials Exemption Certificates electronically.
22The Energy Transition Zone Building Materials Exemption
23Certificate number shall be designed in such a way that the
24Department can identify from the unique number on the Energy
25Transition Zone Building Materials Exemption Certificate
26issued to a given construction contractor or other entity, the

SB1747- 165 -LRB102 12964 HLH 18307 b
1name of the Energy Transition Zone, the project for which the
2Energy Transition Zone Building Materials Exemption
3Certificate is issued, and the construction contractor or
4other entity to whom the Energy Transition Zone Building
5Materials Exemption Certificate is issued. The Energy
6Transition Zone Building Materials Exemption Certificate shall
7contain an expiration date, which shall be no more than 2 years
8after the date of issuance. At the request of the Zone
9Administrator, the Department may renew an Energy Transition
10Zone Building Materials Exemption Certificate. After the
11Department issues Energy Transition Zone Building Materials
12Exemption Certificates for a given Energy Transition Zone
13project, the Energy Transition Zone Administrator may notify
14the Department of additional construction contractors or other
15entities eligible for an Energy Transition Zone Building
16Materials Exemption Certificate. Upon notification by the
17Energy Transition Zone Administrator and subject to the other
18provisions of this subsection (b), the Department shall issue
19an Energy Transition Zone Building Materials Exemption
20Certificate to each additional construction contractor or
21other entity identified by the Energy Transition Zone
22Administrator. An Energy Transition Zone Administrator may
23notify the Department to rescind an Energy Transition Zone
24Building Materials Exemption Certificate previously issued by
25the Department but that has not yet expired. Upon notification
26by the Energy Transition Zone Administrator and subject to the

SB1747- 166 -LRB102 12964 HLH 18307 b
1other provisions of this subsection (b), the Department shall
2issue the rescission of the Energy Transition Zone Building
3Materials Exemption Certificate to the construction contractor
4or other entity identified by the Energy Transition Zone
5Administrator and provide a copy to the Energy Transition Zone
6Administrator.
7 If the Department of Revenue determines that a
8construction contractor or other entity that was issued an
9Energy Transition Zone Building Materials Exemption
10Certificate under this subsection (b) made a tax-exempt
11purchase, as described in this Section, that was not eligible
12for exemption under this Section or allowed another person to
13make a tax-exempt purchase, as described in this Section, that
14was not eligible for exemption under this Section, then, in
15addition to any tax or other penalty imposed, the construction
16contractor or other entity is subject to a penalty equal to the
17tax that would have been paid by the retailer under this Act as
18well as any applicable local retailers' occupation tax on the
19purchase that was not eligible for the exemption.
20 (c) In addition, the retailer must obtain certification
21from the purchaser that contains:
22 (1) a statement that the building materials are being
23 purchased for incorporation into a green energy project
24 located in an Illinois Energy Transition Zone;
25 (2) the location or address of the real estate into
26 which the building materials will be incorporated;

SB1747- 167 -LRB102 12964 HLH 18307 b
1 (3) the name of the Energy Transition Zone in which
2 that real estate is located;
3 (4) a description of the building materials being
4 purchased;
5 (5) the purchaser's Energy Transition Zone Building
6 Materials Exemption Certificate number issued by the
7 Department; and
8 (6) the purchaser's signature and date of purchase.
9 (d) The deduction allowed by this Section for the sale of
10building materials may be limited, to the extent authorized by
11ordinance by the municipality or county that created the
12Energy Transition Zone into which the building materials will
13be incorporated. The ordinance, however, may neither require
14nor prohibit the purchase of building materials from any
15retailer or class of retailers in order to qualify for the
16exemption allowed under this Section. The provisions of this
17Section are exempt from Section 2-70.
18 Section 10-30. The Illinois Municipal Code is amended by
19changing Section 8-11-2 as follows:
20 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
21 Sec. 8-11-2. The corporate authorities of any municipality
22may tax any or all of the following occupations or privileges:
23 1. (Blank).
24 2. Persons engaged in the business of distributing,

SB1747- 168 -LRB102 12964 HLH 18307 b
1 supplying, furnishing, or selling gas for use or
2 consumption within the corporate limits of a municipality
3 of 500,000 or fewer population, and not for resale, at a
4 rate not to exceed 5% of the gross receipts therefrom.
5 2a. Persons engaged in the business of distributing,
6 supplying, furnishing, or selling gas for use or
7 consumption within the corporate limits of a municipality
8 of over 500,000 population, and not for resale, at a rate
9 not to exceed 8% of the gross receipts therefrom. If
10 imposed, this tax shall be paid in monthly payments.
11 3. The privilege of using or consuming electricity
12 acquired in a purchase at retail and used or consumed
13 within the corporate limits of the municipality at rates
14 not to exceed the following maximum rates, calculated on a
15 monthly basis for each purchaser:
16 (i) For the first 2,000 kilowatt-hours used or
17 consumed in a month; 0.61 cents per kilowatt-hour;
18 (ii) For the next 48,000 kilowatt-hours used or
19 consumed in a month; 0.40 cents per kilowatt-hour;
20 (iii) For the next 50,000 kilowatt-hours used or
21 consumed in a month; 0.36 cents per kilowatt-hour;
22 (iv) For the next 400,000 kilowatt-hours used or
23 consumed in a month; 0.35 cents per kilowatt-hour;
24 (v) For the next 500,000 kilowatt-hours used or
25 consumed in a month; 0.34 cents per kilowatt-hour;
26 (vi) For the next 2,000,000 kilowatt-hours used or

SB1747- 169 -LRB102 12964 HLH 18307 b
1 consumed in a month; 0.32 cents per kilowatt-hour;
2 (vii) For the next 2,000,000 kilowatt-hours used
3 or consumed in a month; 0.315 cents per kilowatt-hour;
4 (viii) For the next 5,000,000 kilowatt-hours used
5 or consumed in a month; 0.31 cents per kilowatt-hour;
6 (ix) For the next 10,000,000 kilowatt-hours used
7 or consumed in a month; 0.305 cents per kilowatt-hour;
8 and
9 (x) For all electricity used or consumed in excess
10 of 20,000,000 kilowatt-hours in a month, 0.30 cents
11 per kilowatt-hour.
12 If a municipality imposes a tax at rates lower than
13 either the maximum rates specified in this Section or the
14 alternative maximum rates promulgated by the Illinois
15 Commerce Commission, as provided below, the tax rates
16 shall be imposed upon the kilowatt-hour categories set
17 forth above with the same proportional relationship as
18 that which exists among such maximum rates.
19 Notwithstanding the foregoing, until December 31, 2008, no
20 municipality shall establish rates that are in excess of
21 rates reasonably calculated to produce revenues that equal
22 the maximum total revenues such municipality could have
23 received under the tax authorized by this subparagraph in
24 the last full calendar year prior to August 1, 1998 (the
25 effective date of Section 65 of Public Act 90-561);
26 provided that this shall not be a limitation on the amount

SB1747- 170 -LRB102 12964 HLH 18307 b
1 of tax revenues actually collected by such municipality.
2 Upon the request of the corporate authorities of a
3 municipality, the Illinois Commerce Commission shall,
4 within 90 days after receipt of such request, promulgate
5 alternative rates for each of these kilowatt-hour
6 categories that will reflect, as closely as reasonably
7 practical for that municipality, the distribution of the
8 tax among classes of purchasers as if the tax were based on
9 a uniform percentage of the purchase price of electricity.
10 A municipality that has adopted an ordinance imposing a
11 tax pursuant to subparagraph 3 as it existed prior to
12 August 1, 1998 (the effective date of Section 65 of Public
13 Act 90-561) may, rather than imposing the tax permitted by
14 Public Act 90-561, continue to impose the tax pursuant to
15 that ordinance with respect to gross receipts received
16 from residential customers through July 31, 1999, and with
17 respect to gross receipts from any non-residential
18 customer until the first bill issued to such customer for
19 delivery services in accordance with Section 16-104 of the
20 Public Utilities Act but in no case later than the last
21 bill issued to such customer before December 31, 2000. No
22 ordinance imposing the tax permitted by Public Act 90-561
23 shall be applicable to any non-residential customer until
24 the first bill issued to such customer for delivery
25 services in accordance with Section 16-104 of the Public
26 Utilities Act but in no case later than the last bill

SB1747- 171 -LRB102 12964 HLH 18307 b
1 issued to such non-residential customer before December
2 31, 2000.
3 4. Persons engaged in the business of distributing,
4 supplying, furnishing, or selling water for use or
5 consumption within the corporate limits of the
6 municipality, and not for resale, at a rate not to exceed
7 5% of the gross receipts therefrom.
8 None of the taxes authorized by this Section may be
9imposed with respect to any transaction in interstate commerce
10or otherwise to the extent to which the business or privilege
11may not, under the constitution and statutes of the United
12States, be made the subject of taxation by this State or any
13political sub-division thereof; nor shall any persons engaged
14in the business of distributing, supplying, furnishing,
15selling or transmitting gas, water, or electricity, or using
16or consuming electricity acquired in a purchase at retail, be
17subject to taxation under the provisions of this Section for
18those transactions that are or may become subject to taxation
19under the provisions of the Municipal Retailers' Occupation
20Tax Act authorized by Section 8-11-1; nor shall any tax
21authorized by this Section be imposed upon any person engaged
22in a business or on any privilege unless the tax is imposed in
23like manner and at the same rate upon all persons engaged in
24businesses of the same class in the municipality, whether
25privately or municipally owned or operated, or exercising the
26same privilege within the municipality.

SB1747- 172 -LRB102 12964 HLH 18307 b
1 Any of the taxes enumerated in this Section may be in
2addition to the payment of money, or value of products or
3services furnished to the municipality by the taxpayer as
4compensation for the use of its streets, alleys, or other
5public places, or installation and maintenance therein,
6thereon or thereunder of poles, wires, pipes, or other
7equipment used in the operation of the taxpayer's business.
8 (a) If the corporate authorities of any home rule
9municipality have adopted an ordinance that imposed a tax on
10public utility customers, between July 1, 1971, and October 1,
111981, on the good faith belief that they were exercising
12authority pursuant to Section 6 of Article VII of the 1970
13Illinois Constitution, that action of the corporate
14authorities shall be declared legal and valid, notwithstanding
15a later decision of a judicial tribunal declaring the
16ordinance invalid. No municipality shall be required to
17rebate, refund, or issue credits for any taxes described in
18this paragraph, and those taxes shall be deemed to have been
19levied and collected in accordance with the Constitution and
20laws of this State.
21 (b) In any case in which (i) prior to October 19, 1979, the
22corporate authorities of any municipality have adopted an
23ordinance imposing a tax authorized by this Section (or by the
24predecessor provision of the Revised Cities and Villages Act)
25and have explicitly or in practice interpreted gross receipts
26to include either charges added to customers' bills pursuant

SB1747- 173 -LRB102 12964 HLH 18307 b
1to the provision of paragraph (a) of Section 36 of the Public
2Utilities Act or charges added to customers' bills by
3taxpayers who are not subject to rate regulation by the
4Illinois Commerce Commission for the purpose of recovering any
5of the tax liabilities or other amounts specified in such
6paragraph (a) of Section 36 of that Act, and (ii) on or after
7October 19, 1979, a judicial tribunal has construed gross
8receipts to exclude all or part of those charges, then neither
9that municipality nor any taxpayer who paid the tax shall be
10required to rebate, refund, or issue credits for any tax
11imposed or charge collected from customers pursuant to the
12municipality's interpretation prior to October 19, 1979. This
13paragraph reflects a legislative finding that it would be
14contrary to the public interest to require a municipality or
15its taxpayers to refund taxes or charges attributable to the
16municipality's more inclusive interpretation of gross receipts
17prior to October 19, 1979, and is not intended to prescribe or
18limit judicial construction of this Section. The legislative
19finding set forth in this subsection does not apply to taxes
20imposed after January 1, 1996 (the effective date of Public
21Act 89-325).
22 (c) The tax authorized by subparagraph 3 shall be
23collected from the purchaser by the person maintaining a place
24of business in this State who delivers the electricity to the
25purchaser. This tax shall constitute a debt of the purchaser
26to the person who delivers the electricity to the purchaser

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1and if unpaid, is recoverable in the same manner as the
2original charge for delivering the electricity. Any tax
3required to be collected pursuant to an ordinance authorized
4by subparagraph 3 and any such tax collected by a person
5delivering electricity shall constitute a debt owed to the
6municipality by such person delivering the electricity,
7provided, that the person delivering electricity shall be
8allowed credit for such tax related to deliveries of
9electricity the charges for which are written off as
10uncollectible, and provided further, that if such charges are
11thereafter collected, the delivering supplier shall be
12obligated to remit such tax. For purposes of this subsection
13(c), any partial payment not specifically identified by the
14purchaser shall be deemed to be for the delivery of
15electricity. Persons delivering electricity shall collect the
16tax from the purchaser by adding such tax to the gross charge
17for delivering the electricity, in the manner prescribed by
18the municipality. Persons delivering electricity shall also be
19authorized to add to such gross charge an amount equal to 3% of
20the tax to reimburse the person delivering electricity for the
21expenses incurred in keeping records, billing customers,
22preparing and filing returns, remitting the tax and supplying
23data to the municipality upon request. If the person
24delivering electricity fails to collect the tax from the
25purchaser, then the purchaser shall be required to pay the tax
26directly to the municipality in the manner prescribed by the

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1municipality. Persons delivering electricity who file returns
2pursuant to this paragraph (c) shall, at the time of filing
3such return, pay the municipality the amount of the tax
4collected pursuant to subparagraph 3.
5 (d) For the purpose of the taxes enumerated in this
6Section:
7 "Gross receipts" means the consideration received for
8distributing, supplying, furnishing or selling gas for use or
9consumption and not for resale, and the consideration received
10for distributing, supplying, furnishing or selling water for
11use or consumption and not for resale, and for all services
12rendered in connection therewith valued in money, whether
13received in money or otherwise, including cash, credit,
14services and property of every kind and material and for all
15services rendered therewith, and shall be determined without
16any deduction on account of the cost of the service, product or
17commodity supplied, the cost of materials used, labor or
18service cost, or any other expenses whatsoever. "Gross
19receipts" shall not include that portion of the consideration
20received for distributing, supplying, furnishing, or selling
21gas or water to business enterprises or green energy
22enterprises described in paragraph (e) of this Section to the
23extent and during the period in which the exemption authorized
24by paragraph (e) is in effect or for school districts or units
25of local government described in paragraph (f) during the
26period in which the exemption authorized in paragraph (f) is

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1in effect.
2 For utility bills issued on or after May 1, 1996, but
3before May 1, 1997, and for receipts from those utility bills,
4"gross receipts" does not include one-third of (i) amounts
5added to customers' bills under Section 9-222 of the Public
6Utilities Act, or (ii) amounts added to customers' bills by
7taxpayers who are not subject to rate regulation by the
8Illinois Commerce Commission for the purpose of recovering any
9of the tax liabilities described in Section 9-222 of the
10Public Utilities Act. For utility bills issued on or after May
111, 1997, but before May 1, 1998, and for receipts from those
12utility bills, "gross receipts" does not include two-thirds of
13(i) amounts added to customers' bills under Section 9-222 of
14the Public Utilities Act, or (ii) amount added to customers'
15bills by taxpayers who are not subject to rate regulation by
16the Illinois Commerce Commission for the purpose of recovering
17any of the tax liabilities described in Section 9-222 of the
18Public Utilities Act. For utility bills issued on or after May
191, 1998, and for receipts from those utility bills, "gross
20receipts" does not include (i) amounts added to customers'
21bills under Section 9-222 of the Public Utilities Act, or (ii)
22amounts added to customers' bills by taxpayers who are not
23subject to rate regulation by the Illinois Commerce Commission
24for the purpose of recovering any of the tax liabilities
25described in Section 9-222 of the Public Utilities Act.
26 For purposes of this Section "gross receipts" shall not

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1include amounts added to customers' bills under Section 9-221
2of the Public Utilities Act. This paragraph is not intended to
3nor does it make any change in the meaning of "gross receipts"
4for the purposes of this Section, but is intended to remove
5possible ambiguities, thereby confirming the existing meaning
6of "gross receipts" prior to January 1, 1996 (the effective
7date of Public Act 89-325).
8 "Person" as used in this Section means any natural
9individual, firm, trust, estate, partnership, association,
10joint stock company, joint adventure, corporation, limited
11liability company, municipal corporation, the State or any of
12its political subdivisions, any State university created by
13statute, or a receiver, trustee, guardian or other
14representative appointed by order of any court.
15 "Person maintaining a place of business in this State"
16shall mean any person having or maintaining within this State,
17directly or by a subsidiary or other affiliate, an office,
18generation facility, distribution facility, transmission
19facility, sales office or other place of business, or any
20employee, agent, or other representative operating within this
21State under the authority of the person or its subsidiary or
22other affiliate, irrespective of whether such place of
23business or agent or other representative is located in this
24State permanently or temporarily, or whether such person,
25subsidiary or other affiliate is licensed or qualified to do
26business in this State.

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1 "Public utility" shall have the meaning ascribed to it in
2Section 3-105 of the Public Utilities Act and shall include
3alternative retail electric suppliers as defined in Section
416-102 of that Act.
5 "Purchase at retail" shall mean any acquisition of
6electricity by a purchaser for purposes of use or consumption,
7and not for resale, but shall not include the use of
8electricity by a public utility directly in the generation,
9production, transmission, delivery or sale of electricity.
10 "Purchaser" shall mean any person who uses or consumes,
11within the corporate limits of the municipality, electricity
12acquired in a purchase at retail.
13 (e) Any municipality that imposes taxes upon public
14utilities or upon the privilege of using or consuming
15electricity pursuant to this Section whose territory includes
16any part of an enterprise zone, Energy Transition Zone, or
17federally designated Foreign Trade Zone or Sub-Zone may, by a
18majority vote of its corporate authorities, exempt from those
19taxes for a period not exceeding 20 years any specified
20percentage of gross receipts of public utilities received
21from, or electricity used or consumed by, business enterprises
22or green energy enterprises that:
23 (1) either (i) make investments that cause the
24 creation of a minimum of 200 full-time equivalent jobs in
25 Illinois, (ii) make investments of at least $175,000,000
26 that cause the creation of a minimum of 150 full-time

SB1747- 179 -LRB102 12964 HLH 18307 b
1 equivalent jobs in Illinois, or (iii) make investments
2 that cause the retention of a minimum of 1,000 full-time
3 jobs in Illinois; and
4 (2) are either (i) located in an Enterprise Zone
5 established pursuant to the Illinois Enterprise Zone Act
6 or (ii) Department of Commerce and Economic Opportunity
7 designated High Impact Businesses located in a federally
8 designated Foreign Trade Zone or Sub-Zone; or (iii)
9 located in an Energy Transition Zone established pursuant
10 to the Illinois Energy Transition Zone Act; and
11 (3) are certified by the Department of Commerce and
12 Economic Opportunity as complying with the requirements
13 specified in clauses (1) and (2) of this paragraph (e).
14 Upon adoption of the ordinance authorizing the exemption,
15the municipal clerk shall transmit a copy of that ordinance to
16the Department of Commerce and Economic Opportunity. The
17Department of Commerce and Economic Opportunity shall
18determine whether the business enterprises or green energy
19enterprises located in the municipality meet the criteria
20prescribed in this paragraph. If the Department of Commerce
21and Economic Opportunity determines that the business
22enterprises or green energy enterprises meet the criteria, it
23shall grant certification. The Department of Commerce and
24Economic Opportunity shall act upon certification requests
25within 30 days after receipt of the ordinance.
26 Upon certification of the business enterprise or green

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1energy enterprises by the Department of Commerce and Economic
2Opportunity, the Department of Commerce and Economic
3Opportunity shall notify the Department of Revenue of the
4certification. The Department of Revenue shall notify the
5public utilities of the exemption status of the gross receipts
6received from, and the electricity used or consumed by, the
7certified business enterprises and certified green energy
8enterprises. Such exemption status shall be effective within 3
9months after certification.
10 (f) A municipality that imposes taxes upon public
11utilities or upon the privilege of using or consuming
12electricity under this Section and whose territory includes
13part of another unit of local government or a school district
14may by ordinance exempt the other unit of local government or
15school district from those taxes.
16 (g) The amendment of this Section by Public Act 84-127
17shall take precedence over any other amendment of this Section
18by any other amendatory Act passed by the 84th General
19Assembly before August 1, 1985 (the effective date of Public
20Act 84-127).
21 (h) In any case in which, before July 1, 1992, a person
22engaged in the business of transmitting messages through the
23use of mobile equipment, such as cellular phones and paging
24systems, has determined the municipality within which the
25gross receipts from the business originated by reference to
26the location of its transmitting or switching equipment, then

SB1747- 181 -LRB102 12964 HLH 18307 b
1(i) neither the municipality to which tax was paid on that
2basis nor the taxpayer that paid tax on that basis shall be
3required to rebate, refund, or issue credits for any such tax
4or charge collected from customers to reimburse the taxpayer
5for the tax and (ii) no municipality to which tax would have
6been paid with respect to those gross receipts if the
7provisions of Public Act 87-773 had been in effect before July
81, 1992, shall have any claim against the taxpayer for any
9amount of the tax.
10(Source: P.A. 100-201, eff. 8-18-17.)
11 Section 10-35. The Public Utilities Act is amended by
12changing Sections 9-221 and 9-222 and by adding Section
139-222.1b as follows:
14 (220 ILCS 5/9-221) (from Ch. 111 2/3, par. 9-221)
15 Sec. 9-221. Whenever a municipality pursuant to Section
168-11-2 of the Illinois Municipal Code, as heretofore and
17hereafter amended, imposes a tax on any public utility, such
18utility may charge its customers, other than customers who are
19certified business enterprises or certified green energy
20enterprises under paragraph (e) of Section 8-11-2 of the
21Illinois Municipal Code or are exempted from those taxes under
22paragraph (f) of that Section, to the extent of such exemption
23and during the period in which such exemption is in effect, in
24addition to any rate authorized by this Act, an additional

SB1747- 182 -LRB102 12964 HLH 18307 b
1charge equal to the sum of (1) an amount equal to such
2municipal tax, or any part thereof (2) 3% of such tax, or any
3part thereof, as the case may be, to cover costs of accounting,
4and (3) an amount equal to the increase in taxes and other
5payments to governmental bodies resulting from the amount of
6such additional charge. Such utility shall file with the
7Commission a true and correct copy of the municipal ordinance
8imposing such tax; and also shall file with the Commission a
9supplemental schedule applicable to such municipality which
10shall specify such additional charge and which shall become
11effective upon filing without further notice. Such additional
12charge shall be shown separately on the utility bill to each
13customer. The Commission shall have power to investigate
14whether or not such supplemental schedule correctly specifies
15such additional charge, but shall have no power to suspend
16such supplemental schedule. If the Commission finds, after a
17hearing, that such supplemental schedule does not correctly
18specify such additional charge, it shall by order require a
19refund to the appropriate customers of the excess, if any,
20with interest, in such manner as it shall deem just and
21reasonable, and in and by such order shall require the utility
22to file an amended supplemental schedule corresponding to the
23finding and order of the Commission.
24(Source: P.A. 87-895; 88-132.)
25 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)

SB1747- 183 -LRB102 12964 HLH 18307 b
1 Sec. 9-222. Whenever a tax is imposed upon a public
2utility engaged in the business of distributing, supplying,
3furnishing, or selling gas for use or consumption pursuant to
4Section 2 of the Gas Revenue Tax Act, or whenever a tax is
5required to be collected by a delivering supplier pursuant to
6Section 2-7 of the Electricity Excise Tax Act, or whenever a
7tax is imposed upon a public utility pursuant to Section 2-202
8of this Act, such utility may charge its customers, other than
9customers who are high impact businesses under Section 5.5 of
10the Illinois Enterprise Zone Act, or certified business
11enterprises under Section 9-222.1 of this Act, or certified
12green energy enterprises under Section 9-221.B, to the extent
13of such exemption and during the period in which such
14exemption is in effect, in addition to any rate authorized by
15this Act, an additional charge equal to the total amount of
16such taxes. The exemption of this Section relating to high
17impact businesses shall be subject to the provisions of
18subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
19Enterprise Zone Act. This requirement shall not apply to taxes
20on invested capital imposed pursuant to the Messages Tax Act,
21the Gas Revenue Tax Act and the Public Utilities Revenue Act.
22Such utility shall file with the Commission a supplemental
23schedule which shall specify such additional charge and which
24shall become effective upon filing without further notice.
25Such additional charge shall be shown separately on the
26utility bill to each customer. The Commission shall have the

SB1747- 184 -LRB102 12964 HLH 18307 b
1power to investigate whether or not such supplemental schedule
2correctly specifies such additional charge, but shall have no
3power to suspend such supplemental schedule. If the Commission
4finds, after a hearing, that such supplemental schedule does
5not correctly specify such additional charge, it shall by
6order require a refund to the appropriate customers of the
7excess, if any, with interest, in such manner as it shall deem
8just and reasonable, and in and by such order shall require the
9utility to file an amended supplemental schedule corresponding
10to the finding and order of the Commission. Except with
11respect to taxes imposed on invested capital, such tax
12liabilities shall be recovered from customers solely by means
13of the additional charges authorized by this Section.
14(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
15 (220 ILCS 5/9-222.1b new)
16 Sec. 9-222.1b. Green energy enterprises. A green energy
17enterprise as defined in the Illinois Energy Transition Zone
18Act, which is located within an area designated by a county or
19municipality as an Energy Transition Zone pursuant to the
20Illinois Energy Transition Zone Act shall be exempt from the
21additional charges added to the green energy enterprise's
22utility bills as a pass-on of municipal and State utility
23taxes under Sections 9-221 and 9-222 of this Act, to the extent
24such charges are exempted by ordinance adopted in accordance
25with paragraph (e) of Section 8-11-2 of the Illinois Municipal

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1Code in the case of municipal utility taxes, and to the extent
2such charges are exempted by the percentage specified by the
3Department of Commerce and Economic Opportunity in the case of
4State utility taxes, provided such green energy enterprise
5meets the following criteria:
6 (1) it (i) makes investments which cause the creation
7 of a minimum of 200 full-time equivalent jobs in an Energy
8 Transition Zone; (ii) makes investments of at least
9 $175,000,000 which cause the creation of a minimum of 150
10 full-time equivalent jobs in an Energy Transition Zone; or
11 (iii) makes investments which cause the retention of a
12 minimum of 1,000 full-time jobs in an Energy Transition
13 Zone; and
14 (2) it is located in an Energy Transition Zone
15 established pursuant to the Illinois Energy Transition
16 Zone Act; 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 certified term of the energy
24transition Zone, whichever period is shorter.
25 The Department of Commerce and Economic Opportunity shall
26have the power to adopt rules to carry out the provisions of

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

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1Opportunity, the Department of Commerce and Economic
2Opportunity shall notify the Department of Revenue of such
3certification. The Department of Revenue shall notify the
4public utilities of the exemption status of green energy
5enterprises from the pass-on charges of State and municipal
6utility taxes. Such exemption status shall be effective within
73 months after certification of the green energy enterprise.
8
Article 99. Effective date
9 Section 99-99. Effective date. This Act takes effect upon
10becoming law.
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