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


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-Engrossed.html



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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 Section 232 of the Illinois Income Tax
18Act.
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 (e) Green energy enterprise projects receiving incentives
7under this Act shall comply with the requirements of the
8Prevailing Wage Act.
9 Section 1-30. Initiation of Energy Transition Zones by
10municipality or county.
11 (a) No area may be designated as an Energy Transition Zone
12except pursuant to an initiating ordinance adopted in
13accordance with this Section.
14 (b) A municipality may by ordinance designate an area
15within its jurisdiction as an Energy Transition Zone, subject
16to the certification of the Department in accordance with this
17Act, if:
18 (1) the area is qualified in accordance with Section
19 1-15; and
20 (2) the municipality has conducted at least one public
21 hearing within the proposed Zone area considering all of
22 the following questions: whether to create the Zone; what
23 local plans, tax incentives and other programs should be
24 established in connection with the Zone; and what the
25 boundaries of the Zone should be; public notice of the

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1 hearing shall be published in at least one newspaper of
2 general circulation within the Zone area, not more than 20
3 days nor less than 5 days before the hearing.
4 (c) An ordinance designating an area as an Energy
5Transition Zone shall set forth:
6 (1) a precise description of the area comprising the
7 Zone, either in the form of a legal description or by
8 reference to roadways, lakes and waterways, and township,
9 county boundaries;
10 (2) a finding that the Zone area meets the
11 qualifications of Section 1-15;
12 (3) provisions for any tax incentives or reimbursement
13 for taxes, which pursuant to State and federal law apply
14 to green energy enterprises within the Zone at the
15 election of the designating municipality, and which are
16 not applicable throughout the municipality;
17 (4) a designation of the area as an Energy Transition
18 Zone, subject to the approval of the Department in
19 accordance with this Act; and
20 (5) the duration or term of the Energy Transition
21 Zone.
22 (d) This Section does not prohibit a municipality from
23extending additional tax incentives or reimbursement for
24business enterprises in Energy Transition Zones or throughout
25their territory by separate ordinance.

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1 Section 1-35. Application to Department. A municipality
2that has adopted an ordinance designating an area as an Energy
3Transition Zone shall make written application to the
4Department to have such proposed Energy Transition Zone
5certified by the Department as an Energy Transition Zone. The
6application shall include:
7 (1) a certified copy of the ordinance designating the
8 proposed Zone;
9 (2) a map of the proposed Energy Transition Zone,
10 showing existing streets and highways;
11 (3) an analysis, and any appropriate supporting
12 documents and statistics, demonstrating that the proposed
13 Zone area is qualified in accordance with Section 1-15;
14 (4) a statement detailing any tax, grant, and other
15 financial incentives or benefits, and any programs, to be
16 provided by the municipality or county to green energy
17 enterprises within the Zone, other than those provided in
18 the designating ordinance, which are not to be provided
19 throughout the municipality or county;
20 (5) a statement setting forth the economic development
21 and planning objectives for the Zone;
22 (6) an estimate of the economic impact of the Zone,
23 considering all of the tax incentives, financial benefits
24 and programs contemplated, upon the revenues of the
25 municipality or county;
26 (7) a transcript of all public hearings on the Zone;

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

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1 (c) No later than June 30, the Department shall notify all
2applicant municipalities of the Department's determination of
3the qualification of their respective designated energy
4transition Zone areas, along with supporting documentation of
5the basis for the Department's decision.
6 (d) If any such designated area is found to be qualified to
7be an Energy Transition Zone by the Department under
8subsection (c) of this Section, the Department shall, no later
9than July 15, send a letter of notification to each member of
10the General Assembly whose legislative district or
11representative district contains all or part of the designated
12area and publish a notice in at least one newspaper of general
13circulation within the proposed Zone area to notify the
14general public of the application and their opportunity to
15comment. Such notice shall include a description of the area
16and a brief summary of the application and shall indicate
17locations where the applicant has provided copies of the
18application for public inspection. The notice shall also
19indicate appropriate procedures for the filing of written
20comments from Zone residents, business, civic and other
21organizations and property owners to the Department.
22 Section 1-45. Energy Transition Zone Board.
23 (a) An Energy Transition Zone Board is hereby created
24within the Department.
25 (b) The Board shall consist of the following 5 members:

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

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1shall be considered denied. If an application is denied, the
2Board shall inform the applicant of the specific reasons for
3the denial.
4 (f) A majority of the Board shall determine whether an
5application is approved or denied.
6 Section 1-50. Certification of Energy Transition Zones;
7effective date.
8 (a) Certification of Board-approved designated Energy
9Transition Zones shall be made by the Department by
10certification of the designating ordinance. The Department
11shall promptly issue a certificate for each Energy Transition
12Zone upon approval by the Board. The certificate shall be
13signed by the Director of the Department, shall make specific
14reference to the designating ordinance, which shall be
15attached thereto, and shall be filed in the office of the
16Secretary of State. A certified copy of the Energy Transition
17Zone Certificate, or a duplicate original thereof, shall be
18recorded in the office of recorder of deeds of the county in
19which the Energy Transition Zone lies.
20 (b) An Energy Transition Zone shall be effective on the
21date of the Department's certification. The Department shall
22transmit a copy of the certification to the Department of
23Revenue, and to the designating municipality.
24 (c) Upon certification of an Energy Transition Zone, the
25terms and provisions of the designating ordinance shall be in

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1effect, and may not be amended or repealed except in
2accordance with Section 1-55.
3 (d) Energy Transition Zone designation will last for 13
4years from the effective date of such designation and shall be
5subject to review by the Board after 13 years for an additional
610-year designation beginning on the expiration date of the
7Energy Transition Zone. During the review process, the Board
8shall consider the costs incurred by the State and units of
9local government as a result of tax benefits received by the
10Energy Transition Zone. Energy Transition Zones shall
11terminate at midnight of December 31 of the final calendar
12year of the certified term, except as provided in Section
131-55.
14 (e) Each Energy Transition Zone that reapplies for
15certification but does not receive a new certification shall
16expire on its scheduled termination date.
17 Section 1-55. Amendment and decertification of Energy
18Transition Zones.
19 (a) The terms of a certified Energy Transition Zone
20designating ordinance may be amended to:
21 (1) alter the boundaries of the Energy Transition
22 Zone;
23 (2) expand, limit, or repeal tax incentives or
24 benefits provided in the ordinance;
25 (3) alter the termination date of the Zone;

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

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

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

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

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

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

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

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1previous calendar year. The first report will be for the 2022
2calendar year and is due no later than May 31, 2023.
3 (b) Green energy enterprises shall report their job
4creation, retention, and capital investment numbers within the
5Zone annually to the Department of Revenue no later than May 31
6of each calendar year.
7 (c) The Department of Revenue shall aggregate and collect
8the tax, job, and capital investment data by Energy Transition
9Zone and report this information, formatted to exclude
10company-specific proprietary information, to the Department
11and the Board by August 1, 2023, and by August 1 of every
12calendar year thereafter. The Department shall include this
13information in their required reports under this Act.
14 (d) The Department of Revenue, in its discretion, may
15require that the reports filed under this Section be submitted
16electronically.
17 (e) If the Department determines that 80% or more of the
18businesses receiving tax incentives because of their location
19within a particular Energy Transition Zone failed to submit
20the information required under subsection (a) to the
21Department of Revenue in any calendar year, then the Energy
22Transition Zone may be decertified by the Department. If the
23Department is able to determine that specific businesses are
24failing to submit to the Zone Administrator the information
25required under subsection (a) to be submitted to the
26Department of Revenue, regardless of the Administrator's

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1efforts to enforce reporting, the Department may, in its
2discretion, suspend the benefits to the specific business
3rather than decertifying the particular Energy Transition
4Zone.
5 (f) The Department of Revenue shall have the authority to
6adopt rules as are reasonable and necessary to implement the
7provisions of this Section.
8 Section 1-80. Zone Administrator.
9 (a) Each Zone Administrator shall post a copy of the
10boundaries of the Energy Transition Zone on its official
11Internet website and shall provide an electronic copy to the
12Department. The Department shall post each copy of the
13boundaries of an Energy Transition Zone that it receives from
14a Zone Administrator on its official Internet website.
15 (b) The Zone Administrator shall collect and aggregate the
16following information:
17 (1) the estimated cost of each building project,
18 broken down into labor and materials; and
19 (2) within 60 days after the end of the project, the
20 estimated cost of each building project, broken down into
21 labor and materials.
22 (c) By April 1 of each year, each Zone Administrator shall
23file a copy of its fee schedule with the Department, and the
24Department shall post the fee schedule on its website. Zone
25Administrators shall charge no more than 0.5% of the cost of

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1building materials of the project associated with the specific
2Energy Transition Zone, with a maximum fee of no more than
3$50,000.
4 Section 1-85. State regulatory exemptions in Energy
5Transition Zones.
6 (a) The Department shall conduct an ongoing review of such
7agency rules as may be identified by the Department or
8representatives of designating municipalities and counties as
9green energy enterprises and preliminarily appearing to the
10Department to:
11 (1) affect the conduct of business, industry and
12 commerce;
13 (2) impose excessive costs on either the creation or
14 conduct of such enterprises; and
15 (3) inhibit the development and expansions of
16 enterprises within Energy Transition Zones.
17 The Department shall conduct hearings, pursuant to public
18notice, to solicit public comment on such identified rules as
19part of this review process.
20 (b) No later than August 1 of each calendar year, the
21Department shall publish in the Illinois Register a list of
22such rules identified pursuant to subsection (a). The
23Department shall transmit a copy of the list to each agency
24which has adopted rules on the list.
25 (c) Within 90 days of the publication of the list by the

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1Department, each agency which adopted rules identified therein
2shall file a written report with the Department detailing for
3each identified rule:
4 (1) the need or justification;
5 (2) whether the rule is mandated by State or federal
6 law, or is discretionary, and to what extent;
7 (3) a synopsis of the history of the rule, including
8 any internal agency review after its original adoption;
9 and
10 (4) any appropriate explanation of its relationship to
11 other regulatory requirements.
12 The agency that adopted the rules shall also include any
13available data, analysis and studies concerning the economic
14impact of the identified rules. The agency responses shall be
15public records.
16 (d) No later than January 1 of the following calendar
17year, the Department shall file proposed rules exempting green
18energy enterprises within Energy Transition Zones from those
19agency rules contained in the published list, for which the
20Department finds that the job creation or business development
21incentives for Energy Transition Zone development engendered
22by the exemption outweigh the need and justification for the
23rule. In making its findings, the Department shall consider
24all information, data, and opinions submitted to it by the
25public, as well as by adopting agencies, as well as
26information otherwise available to it.

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1 (e) The proposed rules adopted by the Department shall be
2in the form of amendments to the existing rules to be affected,
3and shall be subject to the Illinois Administrative Procedure
4Act.
5 (f) Upon its effective date, any exempting rule of the
6Department shall supersede the exempted agency rule in
7accordance with the terms of the exemption. Such exemptions
8may apply only to green energy enterprises within Energy
9Transition Zones during the effective term of the respective
10Zones. Agencies may not adopt emergency rules to circumvent an
11exemption affected by a Department exemption rule; any such
12emergency rules shall not be effective within Energy
13Transition Zones to the extent inconsistent with the terms of
14such an exemption.
15 Section 1-90. State and local regulatory alternatives.
16 (a) Agencies may provide in their rules for:
17 (1) the exemption of green energy enterprises within
18 Energy Transition Zones; or
19 (2) modifications or alternatives specifically
20 applicable to green energy enterprises within Energy
21 Transition Zones, which impose less stringent standards or
22 alternative standards for compliance (including, but not
23 limited to, performance-based standards as a substitute
24 for specific mandates of methods, procedures or
25 equipment).

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1 Such exemptions, modifications, or alternatives shall
2become effective by rule adopted in accordance with the
3Illinois Administrative Procedure Act. The Agency adopting
4such exemptions, modifications or alternatives shall file with
5its proposed rule its findings that the proposed rule provides
6economic incentives within Energy Transition Zones which
7promote the purposes of this Act, and which, to the extent they
8include any exemptions or reductions in regulatory standards
9or requirements, outweigh the need or justification for the
10existing rule.
11 (b) If any agency adopts a rule pursuant to paragraph (a)
12affecting a rule contained on the list published by the
13Department, prior to the completion of the rulemaking process
14for the Department's rules under that Section, the agency
15shall immediately transmit a copy of its proposed rule to the
16Department, together with a statement of reasons as to why the
17Department should defer to the agency's proposed rule. Agency
18rules adopted under subsection (a) shall, however, be subject
19to the exemption rules adopted by the Department.
20 (c) Within Energy Transition Zones, the designating
21municipality may modify all local ordinances and regulations
22regarding (i) zoning; (ii) licensing; (iii) building codes,
23excluding however, any regulations treating building defects;
24or (iv) price controls (except for the minimum wage).
25Notwithstanding any shorter statute of limitation to the
26contrary, actions against any contractor or architect who

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1designs, constructs or rehabilitates a building or structure
2in an Energy Transition Zone in accordance with local
3standards specifically applicable within Zones which have been
4relaxed may be commenced within 10 years from the time of
5beneficial occupancy of the building or use of the structure.
6 Section 1-95. Exemptions from regulatory relaxation.
7Sections 1-85 and 1-90 do not apply to rules adopted pursuant
8to:
9 (1) the Environmental Protection Act;
10 (2) the Illinois Historic Preservation Act;
11 (3) the Illinois Human Rights Act;
12 (4) any successor Acts to any of the foregoing; or
13 (5) any other Acts whose purpose is the protection of
14 the environment, the preservation of historic places and
15 landmarks, or the protection of persons against
16 discrimination on the basis of race, color, religion, sex,
17 marital status, national origin, or physical or mental
18 disability.
19 (b) No exemption, modification, or alternative to any
20agency rule shall be effective which:
21 (1) presents a significant risk to the health or
22 safety of persons resident in or employed within an Energy
23 Transition Zone;
24 (2) would conflict with federal law such that the
25 State, or any unit of local government or school district,

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1 or any area of the State other than Energy Transition
2 Zones, or any business enterprise located outside of an
3 Energy Transition Zone would be disqualified from a
4 federal program or from federal tax or other benefits;
5 (3) would suspend or modify an agency rule mandated by
6 law; or
7 (4) would eliminate or reduce benefits to individuals
8 who are residents of or employed within a Zone.
9 Section 1-100. Business notifications. Any business
10located within the Energy Transition Zone which has received
11tax credits or exemptions, regulatory relief or any other
12benefits under this Act shall notify the Department and the
13county and municipal officials in which the Energy Transition
14Zone is located within 60 days of the cessation of any business
15operations conducted within the Energy Transition Zone. The
16Department shall adopt rules to carry out this Section.
17
Article 5. Energy Transition Tax Credit Act
18 Section 5-1. Short title. This Article may be cited as the
19Energy Transition Tax Credit Act. References in this Article
20to "this Act" mean this Article.
21 Section 5-5. Purpose. The General Assembly finds and
22declares that the health, safety, and welfare of the people of

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1this State are dependent upon a healthy economy and vibrant
2communities; that the closure of coal plants, coal mines, and
3nuclear energy plants across the states are detrimental to
4maintaining a healthy economy and vibrant communities; that
5the expansion of green energy creates significant job growth
6and contributes significantly to the health, safety, and
7welfare of the people of this State; that the continual
8encouragement, development, growth and expansion of green
9energy within the State requires a cooperative and continuous
10partnership between government and the green energy sector;
11and that there are certain depressed areas in this State that
12have lost jobs due to the closure of coal plants, coal mines,
13and nuclear energy plants and need the particular attention of
14government, labor and the citizens of Illinois to help attract
15green energy investment into these areas and directly aid the
16local community and its residents. Therefore, it is declared
17to be the purpose of this Act, in conjunction with the Energy
18Transition Zone Act, to provide green energy enterprises an
19incentive to stimulate the growth of green energy in the State
20and to foster job growth in areas depressed by the closure of
21coal plants, coal mines, and nuclear energy plants.
22 Section 5-10. Definitions. As used in this Act:
23 "Agreement" means the Agreement between a Taxpayer and the
24Department under the provisions of Section 5-55 of this Act.
25 "Applicant" means a Taxpayer operating a green energy

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

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1and the Applicant under this Act, but not to exceed the lesser
2of: (1) the sum of (i) 50% of the Incremental Income Tax
3attributable to New Employees at the Applicant's project and
4(ii) 10% of the training costs of New Employees; or (2) 100% of
5the Incremental Income Tax attributable to New Employees at
6the Applicant's project. However, if the project is located in
7an underserved area, then the amount of the Credit may not
8exceed the lesser of: (1) the sum of (i) 75% of the Incremental
9Income Tax attributable to New Employees at the Applicant's
10project and (ii) 10% of the training costs of New Employees; or
11(2) 100% of the Incremental Income Tax attributable to New
12Employees at the Applicant's project. If an Applicant agrees
13to hire the required number of New Employees, then the maximum
14amount of the Credit for that Applicant may be increased by an
15amount not to exceed 25% of the Incremental Income Tax
16attributable to retained employees at the Applicant's project;
17provided that, in order to receive the increase for retained
18employees, the Applicant must provide the additional evidence
19required under paragraph (3) of subsection (b) of Section
205-30.
21 "Department" means the Department of Commerce and Economic
22Opportunity.
23 "Director" means the Director of Commerce and Economic
24Opportunity.
25 "Full-time Employee" means an individual who is employed
26for consideration for at least 35 hours each week or who

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1renders any other standard of service generally accepted by
2industry custom or practice as full-time employment. An
3individual for whom a W-2 is issued by a Professional Employer
4Organization (PEO) is a full-time employee if employed in the
5service of the Applicant for consideration for at least 35
6hours each week or who renders any other standard of service
7generally accepted by industry custom or practice as full-time
8employment to Applicant.
9 "Green energy" means solar energy, wind energy, water
10energy, geothermal energy, bioenergy, or hydrogen fuel and
11cells.
12 "Green energy production facility" means a facility owned
13by a green energy enterprise (as defined in the Illinois
14Energy Transition Zone Act) that is used in the production of
15solar energy, wind energy, water energy, geothermal energy,
16bioenergy, or hydrogen fuel and cells."Incremental Income Tax"
17means the total amount withheld during the taxable year from
18the compensation of New Employees and, if applicable, retained
19employees under Article 7 of the Illinois Income Tax Act
20arising from employment at a project that is the subject of an
21Agreement.
22 "New Employee" means a full-time employee first employed
23by a taxpayer in the project that is the subject of an
24agreement and who is hired after the taxpayer enters into the
25agreement. The term "New Employee" does not include:
26 (1) an employee of the Taxpayer who performs a job

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1 that was previously performed by another employee, if that
2 job existed for at least 6 months before hiring the
3 employee;
4 (2) an employee of the Taxpayer who was previously
5 employed in Illinois by a Related Member of the Taxpayer
6 and whose employment was shifted to the Taxpayer after the
7 Taxpayer entered into the Agreement; or
8 (3) a child, grandchild, parent, or spouse, other than
9 a spouse who is legally separated from the individual, of
10 any individual who has a direct or an indirect ownership
11 interest of at least 5% in the profits, capital, or value
12 of the taxpayer.
13 Notwithstanding any other provisions of this Section, an
14employee may be considered a New Employee under the Agreement
15if the employee performs a job that was previously performed
16by an employee who was:
17 (1) treated under the Agreement as a New Employee; and
18 (2) promoted by the Taxpayer to another job.
19 Notwithstanding any other provisions of this Section, the
20Department may award a Credit to an Applicant with respect to
21an employee hired prior to the date of the Agreement if:
22 (1) the Applicant is in receipt of a letter from the
23 Department stating an intent to enter into a credit
24 Agreement;
25 (2) the letter described in paragraph (1) is issued by
26 the Department not later than 15 days after the effective

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1 date of this Act; and
2 (3) the employee was hired after the date the letter
3 described in paragraph (1) was issued.
4 "Noncompliance Date" means, in the case of a Taxpayer that
5is not complying with the requirements of the Agreement or the
6provisions of this Act, the day following the last date upon
7which the Taxpayer was in compliance with the requirements of
8the Agreement and the provisions of this Act, as determined by
9the Director, pursuant to Section 5-75.
10 "Pass through entity" means an entity that is exempt from
11the tax under subsection (b) or (c) of Section 205 of the
12Illinois Income Tax Act.
13 "Related Member" means a person that, with respect to the
14Taxpayer during any portion of the taxable year, is any one of
15the following:
16 (1) An individual stockholder, if the stockholder and
17 the members of the stockholder's family (as defined in
18 Section 318 of the Internal Revenue Code) own directly,
19 indirectly, beneficially, or constructively, in the
20 aggregate, at least 50% of the value of the Taxpayer's
21 outstanding stock.
22 (2) A partnership, estate, or trust and any partner or
23 beneficiary, if the partnership, estate, or trust, and its
24 partners or beneficiaries own directly, indirectly,
25 beneficially, or constructively, in the aggregate, at
26 least 50% of the profits, capital, stock, or value of the

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1 Taxpayer.
2 (3) A corporation, and any party related to the
3 corporation in a manner that would require an attribution
4 of stock from the corporation to the party or from the
5 party to the corporation under the attribution rules of
6 Section 318 of the Internal Revenue Code, if the Taxpayer
7 owns directly, indirectly, beneficially, or constructively
8 at least 50% of the value of the corporation's outstanding
9 stock.
10 (4) A corporation and any party related to that
11 corporation in a manner that would require an attribution
12 of stock from the corporation to the party or from the
13 party to the corporation under the attribution rules of
14 Section 318 of the Internal Revenue Code, if the
15 corporation and all such related parties own in the
16 aggregate at least 50% of the profits, capital, stock, or
17 value of the Taxpayer.
18 (5) A person to or from whom there is attribution of
19 stock ownership in accordance with Section 1563(e) of the
20 Internal Revenue Code, except, for purposes of determining
21 whether a person is a Related Member under this paragraph,
22 20% shall be substituted for 5% wherever 5% appears in
23 Section 1563(e) of the Internal Revenue Code.
24 "Taxpayer" means an individual, corporation, partnership,
25or other entity that has any Illinois income tax liability.
26 "Underserved area" means a geographic area that meets one

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1or more of the following conditions:
2 (1) the area has a poverty rate of at least 20%
3 according to the latest federal decennial census;
4 (2) 75% or more of the children in the area
5 participate in the federal free lunch program according to
6 reported statistics from the State Board of Education;
7 (3) at least 20% of the households in the area receive
8 assistance under the Supplemental Nutrition Assistance
9 Program (SNAP); or
10 (4) the area has an average unemployment rate, as
11 determined by the Illinois Department of Employment
12 Security, that is more than 120% of the national
13 unemployment average, as determined by the U.S. Department
14 of Labor, for a period of at least 2 consecutive calendar
15 years preceding the date of the application.
16 Section 5-15. Powers of the Department. The Department, in
17addition to those powers granted under the Civil
18Administrative Code of Illinois, is granted and shall have all
19the powers necessary or convenient to carry out and effectuate
20the purposes and provisions of this Act, including, but not
21limited to, power and authority to:
22 (1) Adopt rules deemed necessary and appropriate for
23 the administration of the programs; establish forms for
24 applications, notifications, contracts, or any other
25 agreements; and accept applications at any time during the

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1 year.
2 (2) Provide and assist Taxpayers pursuant to the
3 provisions of this Act, and cooperate with Taxpayers that
4 are parties to Agreements to promote, foster, and support
5 economic development, capital investment, and job creation
6 or retention within the Energy Transition Zone.
7 (c) Enter into agreements and memoranda of
8 understanding for participation of and engage in
9 cooperation with agencies of the federal government, local
10 units of government, universities, research foundations or
11 institutions, regional economic development corporations,
12 or other organizations for the purposes of this Act.
13 (4) Gather information and conduct inquiries, in the
14 manner and by the methods as it deems desirable, including
15 without limitation, gathering information with respect to
16 Applicants for the purpose of making any designations or
17 certifications necessary or desirable or to gather
18 information to assist the Committee with any
19 recommendation or guidance in the furtherance of the
20 purposes of this Act.
21 (5) Establish, negotiate and effectuate any term,
22 agreement or other document with any person, necessary or
23 appropriate to accomplish the purposes of this Act; and to
24 consent, subject to the provisions of any Agreement with
25 another party, to the modification or restructuring of any
26 Agreement to which the Department is a party.

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1 (6) Fix, determine, charge, and collect any premiums,
2 fees, charges, costs, and expenses from Applicants,
3 including, without limitation, any application fees,
4 commitment fees, program fees, financing charges, or
5 publication fees as deemed appropriate to pay expenses
6 necessary or incident to the administration, staffing, or
7 operation in connection with the Department's or
8 Committee's activities under this Act, or for preparation,
9 implementation, and enforcement of the terms of the
10 Agreement, or for consultation, advisory and legal fees,
11 and other costs; however, all fees and expenses incident
12 thereto shall be the responsibility of the Applicant.
13 (7) Provide for sufficient personnel to permit
14 administration, staffing, operation, and related support
15 required to adequately discharge its duties and
16 responsibilities described in this Act from funds made
17 available through charges to Applicants or from funds as
18 may be appropriated by the General Assembly for the
19 administration of this Act.
20 (8) Require Applicants, upon written request, to issue
21 any necessary authorization to the appropriate federal,
22 state, or local authority for the release of information
23 concerning a project being considered under the provisions
24 of this Act, with the information requested to include,
25 but not be limited to, financial reports, returns, or
26 records relating to the Taxpayer or its project.

SB1747 Engrossed- 39 -LRB102 12964 HLH 18307 b
1 (9) Require that a Taxpayer shall at all times keep
2 proper books of record and account in accordance with
3 generally accepted accounting principles consistently
4 applied, with the books, records, or papers related to the
5 Agreement in the custody or control of the Taxpayer open
6 for reasonable Department inspection and audits, and
7 including, without limitation, the making of copies of the
8 books, records, or papers, and the inspection or appraisal
9 of any of the Taxpayer or project assets.
10 (10) Take whatever actions are necessary or
11 appropriate to protect the State's interest in the event
12 of bankruptcy, default, foreclosure, or noncompliance with
13 the terms and conditions of financial assistance or
14 participation required under this Act, including the power
15 to sell, dispose, lease, or rent, upon terms and
16 conditions determined by the Director to be appropriate,
17 real or personal property that the Department may receive
18 as a result of these actions.
19 Section 5-20. Tax credit awards.
20 (a) Subject to the conditions set forth in this Act, a
21Taxpayer is entitled to a Credit against or, as described in
22subsection (f) of this Section, a payment towards taxes
23imposed pursuant to subsections (a) and (b) of Section 201 of
24the Illinois Income Tax Act that may be imposed on the Taxpayer
25for a taxable year beginning on or after January 1, 2022, if

SB1747 Engrossed- 40 -LRB102 12964 HLH 18307 b
1the Taxpayer is awarded a Credit by the Department under this
2Act for that taxable year.
3 The Department shall make Credit awards under this Act to
4foster job creation and the development of green energy in
5Energy Transition Zones.
6 (b) A person that proposes a project to create new jobs and
7to invest in the development of a green energy production
8facility in an Energy Transition Zone must enter into an
9Agreement with the Department for the Credit under this Act
10 (c) The Credit shall be claimed for the taxable years
11specified in the Agreement.
12 (d) The Credit shall not exceed the Incremental Income Tax
13attributable to the project that is the subject of the
14Agreement.
15 (e) Nothing herein shall prohibit a Tax Credit Award to an
16Applicant that uses a PEO if all other award criteria are
17satisfied.
18 (f) This Section is exempt from the provisions of Section
19250 of the Illinois Income Tax Act.
20 Section 5-25. Application for a project to create and
21retain new jobs and to develop green energy.
22 (a) Any green energy enterprise proposing a project to
23build a green energy production facility located or planned to
24be located in an Energy Transition Zone may request
25consideration for designation of its project, by formal

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1written letter of request or by formal application to the
2Department, in which the Applicant states its intent to make
3at least a specified level of investment and intends to hire or
4retain a specified number of full-time employees at a
5designated location in Illinois. As circumstances require, the
6Department may require a formal application from an Applicant
7and a formal letter of request for assistance.
8 (b) In order to qualify for Credits under this Act, an
9Applicant's project must:
10 (1) be for the purpose of producing green energy;
11 (2) if the Applicant has more than 100 employees,
12 involve an investment of at least $2,500,000 in capital
13 improvements to be placed in service within an Energy
14 Transition Zone as a direct result of the project; if the
15 Applicant has 100 or fewer employees, then there is no
16 capital investment requirement; and
17 (3) if the Applicant has more than 100 employees,
18 employ a number of new employees in the Energy Transition
19 Zone equal to the lesser of (A) 10% of the number of
20 full-time employees employed by the applicant world-wide
21 on the date the application is filed with the Department
22 or (B) 50 New Employees; and, if the Applicant has 100 or
23 fewer employees, employ a number of new employees in the
24 State equal to the lesser of (A) 5% of the number of
25 full-time employees employed by the applicant world-wide
26 on the date the application is filed with the Department

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1 or (B) 50 New Employees;
2 (c) After receipt of an application, the Department may
3enter into an Agreement with the Applicant if the application
4is accepted in accordance with Section 5-25.
5 Section 5-30. Review of application.
6 (a) In addition to those duties granted under the Illinois
7Economic Development Board Act, the Illinois Economic
8Development Board shall form an Energy Transition Investment
9Committee for the purpose of making recommendations for
10applications. At the request of the Board, the Director of
11Commerce and Economic Opportunity or his or her designee, the
12Director of the Governor's Office of Management and Budget or
13his or her designee, the Director of Revenue or his or her
14designee, the Director of Employment Security or his or her
15designee, and an elected official of the affected locality,
16such as the chair of the county board or the mayor, may serve
17as members of the Committee to assist with its analysis and
18deliberations.
19 (b) At the Department's request, the Committee shall
20convene, make inquiries, and conduct studies in the manner and
21by the methods as it deems desirable, review information with
22respect to Applicants, and make recommendations for projects
23to benefit an Energy Transition Zone. In making its
24recommendation that an Applicant's application for Credit
25should or should not be accepted, which shall occur within a

SB1747 Engrossed- 43 -LRB102 12964 HLH 18307 b
1reasonable time frame as determined by the nature of the
2application, the Committee shall determine that all the
3following conditions exist:
4 (1) The Applicant's project intends, as required by
5 subsection (b) of Section 5, to make the required
6 investment in the Energy Transition Zone and intends to
7 hire the required number of New Employees in the Energy
8 Transition Zone as a result of that project.
9 (2) The Applicant's project is economically sound and
10 will benefit the people of the Energy Transition Zone by
11 increasing opportunities for employment and engaging in
12 the development of green energy.
13 (3) That, if not for the Credit, the project would not
14 occur in Illinois, which may be demonstrated by evidence
15 that receipt of the Credit is essential to the Applicant's
16 decision to create new jobs in the State, such as the
17 magnitude of the cost differential between Illinois and a
18 competing State; in addition, if the Applicant is seeking
19 an increase in the maximum amount of the Credit for
20 retained employees, the Applicant must provide evidence
21 the Applicant has multi-state location options and could
22 reasonably and efficiently locate outside of the State or
23 demonstrate that at least one other state is being
24 considered for the project.
25 (4) A cost differential is identified, using best
26 available data, in the projected costs for the Applicant's

SB1747 Engrossed- 44 -LRB102 12964 HLH 18307 b
1 project compared to the costs in the competing state,
2 including the impact of the competing state's incentive
3 programs. The competing state's incentive programs shall
4 include state, local, private, and federal funds
5 available.
6 (5) The political subdivisions affected by the project
7 have committed local incentives with respect to the
8 project, considering local ability to assist.
9 (6) Awarding the Credit will result in an overall
10 positive fiscal impact to the State, as certified by the
11 Committee using the best available data.
12 (7) The Credit is not otherwise prohibited by this
13 Act.
14 Section 5-35. Limitation to amount of costs of specified
15items. The total amount of the Credit allowed during all tax
16years may not exceed the aggregate amount of costs incurred by
17the Taxpayer during all prior tax years for the following
18items, to the extent provided in the Agreement:
19 (1) capital investment, including, but not limited to,
20 equipment, buildings, or land;
21 (2) infrastructure development;
22 (3) debt service, except refinancing of current debt;
23 (4) research and development;
24 (5) job training and education;
25 (6) lease costs; or

SB1747 Engrossed- 45 -LRB102 12964 HLH 18307 b
1 (7) relocation costs.
2 Section 5-40. Relocation of jobs to Energy Transition
3Zone. A taxpayer is not entitled to claim the credit provided
4by this Act with respect to any jobs that the taxpayer
5relocates from one site in Illinois to another site in an
6Energy Transition Zone. Moreover, any full-time employee of an
7eligible green energy enterprise relocated to an Energy
8Transition Zone in connection with that qualifying project is
9deemed to be a new employee for purposes of this Act.
10Determinations under this Section shall be made by the
11Department.
12 Section 5-45. Determination of amount of the Credit. In
13determining the amount of the Credit that should be awarded,
14the Committee shall provide guidance on, and the Department
15shall take into consideration, all of the following factors:
16 (1) The number and location of jobs created and
17 retained in relation to the economy of the Energy
18 Transition Zone where the projected investment is to
19 occur.
20 (2) The potential impact on the economy of the Energy
21 Transition Zone.
22 (3) The advancement of green energy in the Energy
23 Transition Zone.
24 (4) The incremental payroll attributable to the

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1 project.
2 (5) The capital investment attributable to the
3 project.
4 (6) The amount of the average wage and benefits paid
5 by the Applicant in relation to the wage and benefits of
6 the Energy Transition Zone.
7 (7) The costs to Illinois and the affected political
8 subdivisions with respect to the project.
9 (8) The financial assistance that is otherwise
10 provided by Illinois and the affected political
11 subdivisions.
12 Section 5-50. Amount and duration of credit.
13 (a) The Department shall determine the amount and duration
14of the credit awarded under this Act. The duration of the
15credit may not exceed 10 taxable years. The credit may be
16stated as a percentage of the Incremental Income Tax
17attributable to the applicant's project and may include a
18fixed dollar limitation. An Agreement for the credit must be
19finalized and signed by all parties while the area in which the
20project is located is designated an Energy Transition Zone.
21The credit may last longer than the applicable Energy
22Transition Zone designation. Agreements entered into prior to
23the de-designation of an Energy Transition Zone will be
24honored for the length of the Agreement.
25 (b) The tax credit may not reduce the taxpayer's liability

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

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1 report to the Department the number of New Employees, the
2 Incremental Income Tax withheld in connection with the New
3 Employees, and any other information the Director needs to
4 perform the Director's duties under this Act.
5 (7) A requirement that the Director is authorized to
6 verify with the appropriate State agencies the amounts
7 reported under paragraph (6), and after doing so shall
8 issue a certificate to the Taxpayer stating that the
9 amounts have been verified.
10 (8) A requirement that the Taxpayer shall provide
11 written notification to the Director not more than 30 days
12 after the Taxpayer makes or receives a proposal that would
13 transfer the Taxpayer's State tax liability obligations to
14 a successor Taxpayer.
15 (9) A detailed description of the number of New
16 Employees to be hired, and the occupation and payroll of
17 the full-time jobs to be created or retained as a result of
18 the project.
19 (10) The minimum investment the green energy
20 enterprise will make in capital improvements, the time
21 period for placing the property in service, and the
22 designated green energy production of the project.
23 (11) A requirement that the Taxpayer shall provide
24 written notification to the Director and the Committee not
25 more than 30 days after the Taxpayer determines that the
26 minimum job creation or retention, employment payroll, or

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1 investment no longer is being or will be achieved or
2 maintained as set forth in the terms and conditions of the
3 Agreement.
4 (12) A provision that, if the total number of New
5 Employees falls below a specified level, the allowance of
6 Credit shall be suspended until the number of New
7 Employees equals or exceeds the Agreement amount.
8 (13) A detailed description of the items for which the
9 costs incurred by the Taxpayer will be included in the
10 limitation on the Credit provided in Section 5-40.
11 (14) A provision that, if the Taxpayer never meets
12 either the investment or job creation and retention
13 requirements specified in the Agreement during the entire
14 5-year period beginning on the first day of the first
15 taxable year in which the Agreement is executed and ending
16 on the last day of the fifth taxable year after the
17 Agreement is executed, then the Agreement is automatically
18 terminated on the last day of the fifth taxable year after
19 the Agreement is executed and the Taxpayer is not entitled
20 to the award of any credits for any of that 5-year period.
21 (15) A provision specifying that, if the Taxpayer
22 ceases principal operations with the intent to shut down
23 the project in the Energy Transition Zone permanently
24 during the term of the Agreement, then the entire credit
25 amount awarded to the Taxpayer prior to the date the
26 Taxpayer ceases principal operations shall be returned to

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

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1 of new full-time jobs in the Energy Transition Zone, as
2 specified in its Agreement.
3 (2) The project has substantially achieved the level
4 of annual payroll in the Energy Transition Zone, as
5 specified in its Agreement.
6 (3) The project has substantially achieved the level
7 of capital investment in the Energy Transition Zone, as
8 specified in its Agreement;
9 (4) The project has assisted in the development of
10 green energy production in the Energy Transition Zone, as
11 specified in its Agreement.
12 Section 5-65. Supplier diversity. Each taxpayer claiming
13a credit under this Act shall, no later than April 15 of each
14taxable year for which the taxpayer claims a credit under this
15Act, submit to the Department of Commerce and Economic
16Opportunity an annual report containing the information
17described in subsections (b), (c), (d), and (e) of Section
185-117 of the Public Utilities Act. Those reports shall be
19submitted in the form and manner required by the Department of
20Commerce and Economic Opportunity.
21 Section 5-70. Pass through entities.
22 (a) For partners, shareholders of Subchapter S
23corporations, and owners of limited liability companies, if
24the liability company is treated as a partnership for purposes

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1of federal and State income taxation, there is 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 (b) The Credit provided under subsection (a) is in
7addition to any Credit to which a shareholder or partner is
8otherwise entitled under a separate Agreement under this Act.
9A pass through entity and a shareholder or partner of the pass
10through entity may not claim more than one Credit under the
11same Agreement.
12 Section 5-75. Noncompliance; notice; assessment. If the
13Director determines that a Taxpayer who has received a Credit
14under this Act is not complying with the requirements of the
15Agreement or all of the provisions of this Act, the Director
16shall provide notice to the Taxpayer of the alleged
17noncompliance, and allow the Taxpayer a hearing under the
18provisions of the Illinois Administrative Procedure Act. If,
19after such notice and any hearing, the Director determines
20that a noncompliance exists, the Director shall issue to the
21Department of Revenue notice to that effect, stating the
22Noncompliance Date. If, during the term of an Agreement, the
23Taxpayer ceases operations at a project location that is the
24subject of that Agreement with the intent to terminate
25operations in the Energy Transition Zone, the Department and

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

SB1747 Engrossed- 54 -LRB102 12964 HLH 18307 b
1 in meeting the terms of the original Agreement;
2 (4) a statement of wages paid to New Employees and, if
3 applicable, retained employees in the State;
4 (5) any information reported under Section 5-65 of
5 this Act; and
6 (6) a copy of the original Agreement.
7 Section 5-85. Evaluation of tax credit program. On a
8biennial basis, the Department shall evaluate the tax credit
9program. The evaluation shall include an assessment of the
10effectiveness of the program in creating new jobs in Illinois
11and of the revenue impact of the program, and may include a
12review of the practices and experiences of other states with
13similar programs. The Director shall submit a report on the
14evaluation to the Governor and the General Assembly after June
1530 and before November 1 in each odd-numbered year.
16 Section 5-90. Adoption of rules. The Department may adopt
17rules necessary to implement this Act. The rules may provide
18for recipients of Credits under this Act to be charged fees to
19cover administrative costs of the tax credit program. Fees
20collected shall be deposited into the Energy Transition Fund.
21 Section 5-95. The Energy Transition Fund.
22 (a) The Energy Transition Fund is established as a special
23fund within the State treasury to be used exclusively for the

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1purposes of this Act, including paying for the costs of
2administering this Act. The Fund shall be administered by the
3Department.
4 (b) The Fund consists of collected fees, appropriations
5from the General Assembly, and gifts and grants to the Fund.
6 (c) The State Treasurer shall invest the money in the Fund
7not currently needed to meet the obligations of the Fund in the
8same manner as other public funds may be invested. Interest
9that accrues from these investments shall be deposited into
10the Fund.
11 (d) The money in the Fund at the end of a State fiscal year
12remains in the Fund to be used exclusively for the purposes of
13this Act. Expenditures from the Fund are subject to
14appropriation by the General Assembly.
15 Section 5-100. Program terms and conditions.
16 (a) Any documentary materials or data made available or
17received by any member of a Committee or any agent or employee
18of the Department shall be deemed confidential and shall not
19be deemed public records to the extent that the materials or
20data consists of trade secrets, commercial or financial
21information regarding the operation of the business conducted
22by the Applicant for or recipient of any tax credit under this
23Act, or any information regarding the competitive position of
24a business in a particular field of endeavor.
25 (b) Nothing in this Act shall be construed as creating any

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1rights in any Applicant to enter into an Agreement or in any
2person to challenge the terms of any Agreement.
3
Article 10. Amendatory Provisions
4 Section 10-5. The Illinois Administrative Procedure Act is
5amended by changing Section 5-45 as follows:
6 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
7 Sec. 5-45. Emergency rulemaking.
8 (a) "Emergency" means the existence of any situation that
9any agency finds reasonably constitutes a threat to the public
10interest, safety, or welfare.
11 (b) If any agency finds that an emergency exists that
12requires adoption of a rule upon fewer days than is required by
13Section 5-40 and states in writing its reasons for that
14finding, the agency may adopt an emergency rule without prior
15notice or hearing upon filing a notice of emergency rulemaking
16with the Secretary of State under Section 5-70. The notice
17shall include the text of the emergency rule and shall be
18published in the Illinois Register. Consent orders or other
19court orders adopting settlements negotiated by an agency may
20be adopted under this Section. Subject to applicable
21constitutional or statutory provisions, an emergency rule
22becomes effective immediately upon filing under Section 5-65
23or at a stated date less than 10 days thereafter. The agency's

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1finding and a statement of the specific reasons for the
2finding shall be filed with the rule. The agency shall take
3reasonable and appropriate measures to make emergency rules
4known to the persons who may be affected by them.
5 (c) An emergency rule may be effective for a period of not
6longer than 150 days, but the agency's authority to adopt an
7identical rule under Section 5-40 is not precluded. No
8emergency rule may be adopted more than once in any 24-month
9period, except that this limitation on the number of emergency
10rules that may be adopted in a 24-month period does not apply
11to (i) emergency rules that make additions to and deletions
12from the Drug Manual under Section 5-5.16 of the Illinois
13Public Aid Code or the generic drug formulary under Section
143.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
15emergency rules adopted by the Pollution Control Board before
16July 1, 1997 to implement portions of the Livestock Management
17Facilities Act, (iii) emergency rules adopted by the Illinois
18Department of Public Health under subsections (a) through (i)
19of Section 2 of the Department of Public Health Act when
20necessary to protect the public's health, (iv) emergency rules
21adopted pursuant to subsection (n) of this Section, (v)
22emergency rules adopted pursuant to subsection (o) of this
23Section, or (vi) emergency rules adopted pursuant to
24subsection (c-5) of this Section. Two or more emergency rules
25having substantially the same purpose and effect shall be
26deemed to be a single rule for purposes of this Section.

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1 (c-5) To facilitate the maintenance of the program of
2group health benefits provided to annuitants, survivors, and
3retired employees under the State Employees Group Insurance
4Act of 1971, rules to alter the contributions to be paid by the
5State, annuitants, survivors, retired employees, or any
6combination of those entities, for that program of group
7health benefits, shall be adopted as emergency rules. The
8adoption of those rules shall be considered an emergency and
9necessary for the public interest, safety, and welfare.
10 (d) In order to provide for the expeditious and timely
11implementation of the State's fiscal year 1999 budget,
12emergency rules to implement any provision of Public Act
1390-587 or 90-588 or any other budget initiative for fiscal
14year 1999 may be adopted in accordance with this Section by the
15agency charged with administering that provision or
16initiative, except that the 24-month limitation on the
17adoption of emergency rules and the provisions of Sections
185-115 and 5-125 do not apply to rules adopted under this
19subsection (d). The adoption of emergency rules authorized by
20this subsection (d) shall be deemed to be necessary for the
21public interest, safety, and welfare.
22 (e) In order to provide for the expeditious and timely
23implementation of the State's fiscal year 2000 budget,
24emergency rules to implement any provision of Public Act 91-24
25or any other budget initiative for fiscal year 2000 may be
26adopted in accordance with this Section by the agency charged

SB1747 Engrossed- 59 -LRB102 12964 HLH 18307 b
1with administering that provision or initiative, except that
2the 24-month limitation on the adoption of emergency rules and
3the provisions of Sections 5-115 and 5-125 do not apply to
4rules adopted under this subsection (e). The adoption of
5emergency rules authorized by this subsection (e) shall be
6deemed to be necessary for the public interest, safety, and
7welfare.
8 (f) In order to provide for the expeditious and timely
9implementation of the State's fiscal year 2001 budget,
10emergency rules to implement any provision of Public Act
1191-712 or any other budget initiative for fiscal year 2001 may
12be adopted in accordance with this Section by the agency
13charged with administering that provision or initiative,
14except that the 24-month limitation on the adoption of
15emergency rules and the provisions of Sections 5-115 and 5-125
16do not apply to rules adopted under this subsection (f). The
17adoption of emergency rules authorized by this subsection (f)
18shall be deemed to be necessary for the public interest,
19safety, and welfare.
20 (g) In order to provide for the expeditious and timely
21implementation of the State's fiscal year 2002 budget,
22emergency rules to implement any provision of Public Act 92-10
23or any other budget initiative for fiscal year 2002 may be
24adopted in accordance with this Section by the agency charged
25with administering that provision or initiative, except that
26the 24-month limitation on the adoption of emergency rules and

SB1747 Engrossed- 60 -LRB102 12964 HLH 18307 b
1the provisions of Sections 5-115 and 5-125 do not apply to
2rules adopted under this subsection (g). The adoption of
3emergency rules authorized by this subsection (g) shall be
4deemed to be necessary for the public interest, safety, and
5welfare.
6 (h) In order to provide for the expeditious and timely
7implementation of the State's fiscal year 2003 budget,
8emergency rules to implement any provision of Public Act
992-597 or any other budget initiative for fiscal year 2003 may
10be adopted in accordance with this Section by the agency
11charged with administering that provision or initiative,
12except that the 24-month limitation on the adoption of
13emergency rules and the provisions of Sections 5-115 and 5-125
14do not apply to rules adopted under this subsection (h). The
15adoption of emergency rules authorized by this subsection (h)
16shall be deemed to be necessary for the public interest,
17safety, and welfare.
18 (i) In order to provide for the expeditious and timely
19implementation of the State's fiscal year 2004 budget,
20emergency rules to implement any provision of Public Act 93-20
21or any other budget initiative for fiscal year 2004 may be
22adopted in accordance with this Section by the agency charged
23with administering that provision or initiative, except that
24the 24-month limitation on the adoption of emergency rules and
25the provisions of Sections 5-115 and 5-125 do not apply to
26rules adopted under this subsection (i). The adoption of

SB1747 Engrossed- 61 -LRB102 12964 HLH 18307 b
1emergency rules authorized by this subsection (i) shall be
2deemed to be necessary for the public interest, safety, and
3welfare.
4 (j) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62005 budget as provided under the Fiscal Year 2005 Budget
7Implementation (Human Services) Act, emergency rules to
8implement any provision of the Fiscal Year 2005 Budget
9Implementation (Human Services) Act may be adopted in
10accordance with this Section by the agency charged with
11administering that provision, except that the 24-month
12limitation on the adoption of emergency rules and the
13provisions of Sections 5-115 and 5-125 do not apply to rules
14adopted under this subsection (j). The Department of Public
15Aid may also adopt rules under this subsection (j) necessary
16to administer the Illinois Public Aid Code and the Children's
17Health Insurance Program Act. The adoption of emergency rules
18authorized by this subsection (j) shall be deemed to be
19necessary for the public interest, safety, and welfare.
20 (k) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222006 budget, emergency rules to implement any provision of
23Public Act 94-48 or any other budget initiative for fiscal
24year 2006 may be adopted in accordance with this Section by the
25agency charged with administering that provision or
26initiative, except that the 24-month limitation on the

SB1747 Engrossed- 62 -LRB102 12964 HLH 18307 b
1adoption of emergency rules and the provisions of Sections
25-115 and 5-125 do not apply to rules adopted under this
3subsection (k). The Department of Healthcare and Family
4Services may also adopt rules under this subsection (k)
5necessary to administer the Illinois Public Aid Code, the
6Senior Citizens and Persons with Disabilities Property Tax
7Relief Act, the Senior Citizens and Disabled Persons
8Prescription Drug Discount Program Act (now the Illinois
9Prescription Drug Discount Program Act), and the Children's
10Health Insurance Program Act. The adoption of emergency rules
11authorized by this subsection (k) shall be deemed to be
12necessary for the public interest, safety, and welfare.
13 (l) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152007 budget, the Department of Healthcare and Family Services
16may adopt emergency rules during fiscal year 2007, including
17rules effective July 1, 2007, in accordance with this
18subsection to the extent necessary to administer the
19Department's responsibilities with respect to amendments to
20the State plans and Illinois waivers approved by the federal
21Centers for Medicare and Medicaid Services necessitated by the
22requirements of Title XIX and Title XXI of the federal Social
23Security Act. The adoption of emergency rules authorized by
24this subsection (l) shall be deemed to be necessary for the
25public interest, safety, and welfare.
26 (m) In order to provide for the expeditious and timely

SB1747 Engrossed- 63 -LRB102 12964 HLH 18307 b
1implementation of the provisions of the State's fiscal year
22008 budget, the Department of Healthcare and Family Services
3may adopt emergency rules during fiscal year 2008, including
4rules effective July 1, 2008, in accordance with this
5subsection to the extent necessary to administer the
6Department's responsibilities with respect to amendments to
7the State plans and Illinois waivers approved by the federal
8Centers for Medicare and Medicaid Services necessitated by the
9requirements of Title XIX and Title XXI of the federal Social
10Security Act. The adoption of emergency rules authorized by
11this subsection (m) shall be deemed to be necessary for the
12public interest, safety, and welfare.
13 (n) In order to provide for the expeditious and timely
14implementation of the provisions of the State's fiscal year
152010 budget, emergency rules to implement any provision of
16Public Act 96-45 or any other budget initiative authorized by
17the 96th General Assembly for fiscal year 2010 may be adopted
18in accordance with this Section by the agency charged with
19administering that provision or initiative. The adoption of
20emergency rules authorized by this subsection (n) shall be
21deemed to be necessary for the public interest, safety, and
22welfare. The rulemaking authority granted in this subsection
23(n) shall apply only to rules promulgated during Fiscal Year
242010.
25 (o) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

SB1747 Engrossed- 64 -LRB102 12964 HLH 18307 b
12011 budget, emergency rules to implement any provision of
2Public Act 96-958 or any other budget initiative authorized by
3the 96th General Assembly for fiscal year 2011 may be adopted
4in accordance with this Section by the agency charged with
5administering that provision or initiative. The adoption of
6emergency rules authorized by this subsection (o) is deemed to
7be necessary for the public interest, safety, and welfare. The
8rulemaking authority granted in this subsection (o) applies
9only to rules promulgated on or after July 1, 2010 (the
10effective date of Public Act 96-958) through June 30, 2011.
11 (p) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 97-689,
13emergency rules to implement any provision of Public Act
1497-689 may be adopted in accordance with this subsection (p)
15by the agency charged with administering that provision or
16initiative. The 150-day limitation of the effective period of
17emergency rules does not apply to rules adopted under this
18subsection (p), and the effective period may continue through
19June 30, 2013. The 24-month limitation on the adoption of
20emergency rules does not apply to rules adopted under this
21subsection (p). The adoption of emergency rules authorized by
22this subsection (p) is deemed to be necessary for the public
23interest, safety, and welfare.
24 (q) In order to provide for the expeditious and timely
25implementation of the provisions of Articles 7, 8, 9, 11, and
2612 of Public Act 98-104, emergency rules to implement any

SB1747 Engrossed- 65 -LRB102 12964 HLH 18307 b
1provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
2may be adopted in accordance with this subsection (q) by the
3agency charged with administering that provision or
4initiative. The 24-month limitation on the adoption of
5emergency rules does not apply to rules adopted under this
6subsection (q). The adoption of emergency rules authorized by
7this subsection (q) is deemed to be necessary for the public
8interest, safety, and welfare.
9 (r) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 98-651,
11emergency rules to implement Public Act 98-651 may be adopted
12in accordance with this subsection (r) by the Department of
13Healthcare and Family Services. The 24-month limitation on the
14adoption of emergency rules does not apply to rules adopted
15under this subsection (r). The adoption of emergency rules
16authorized by this subsection (r) is deemed to be necessary
17for the public interest, safety, and welfare.
18 (s) In order to provide for the expeditious and timely
19implementation of the provisions of Sections 5-5b.1 and 5A-2
20of the Illinois Public Aid Code, emergency rules to implement
21any provision of Section 5-5b.1 or Section 5A-2 of the
22Illinois Public Aid Code may be adopted in accordance with
23this subsection (s) by the Department of Healthcare and Family
24Services. The rulemaking authority granted in this subsection
25(s) shall apply only to those rules adopted prior to July 1,
262015. Notwithstanding any other provision of this Section, any

SB1747 Engrossed- 66 -LRB102 12964 HLH 18307 b
1emergency rule adopted under this subsection (s) shall only
2apply to payments made for State fiscal year 2015. The
3adoption of emergency rules authorized by this subsection (s)
4is deemed to be necessary for the public interest, safety, and
5welfare.
6 (t) In order to provide for the expeditious and timely
7implementation of the provisions of Article II of Public Act
899-6, emergency rules to implement the changes made by Article
9II of Public Act 99-6 to the Emergency Telephone System Act may
10be adopted in accordance with this subsection (t) by the
11Department of State Police. The rulemaking authority granted
12in this subsection (t) shall apply only to those rules adopted
13prior to July 1, 2016. The 24-month limitation on the adoption
14of emergency rules does not apply to rules adopted under this
15subsection (t). The adoption of emergency rules authorized by
16this subsection (t) is deemed to be necessary for the public
17interest, safety, and welfare.
18 (u) In order to provide for the expeditious and timely
19implementation of the provisions of the Burn Victims Relief
20Act, emergency rules to implement any provision of the Act may
21be adopted in accordance with this subsection (u) by the
22Department of Insurance. The rulemaking authority granted in
23this subsection (u) shall apply only to those rules adopted
24prior to December 31, 2015. The adoption of emergency rules
25authorized by this subsection (u) is deemed to be necessary
26for the public interest, safety, and welfare.

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1 (v) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 99-516,
3emergency rules to implement Public Act 99-516 may be adopted
4in accordance with this subsection (v) by the Department of
5Healthcare and Family Services. The 24-month limitation on the
6adoption of emergency rules does not apply to rules adopted
7under this subsection (v). The adoption of emergency rules
8authorized by this subsection (v) is deemed to be necessary
9for the public interest, safety, and welfare.
10 (w) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 99-796,
12emergency rules to implement the changes made by Public Act
1399-796 may be adopted in accordance with this subsection (w)
14by the Adjutant General. The adoption of emergency rules
15authorized by this subsection (w) is deemed to be necessary
16for the public interest, safety, and welfare.
17 (x) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 99-906,
19emergency rules to implement subsection (i) of Section
2016-115D, subsection (g) of Section 16-128A, and subsection (a)
21of Section 16-128B of the Public Utilities Act may be adopted
22in accordance with this subsection (x) by the Illinois
23Commerce Commission. The rulemaking authority granted in this
24subsection (x) shall apply only to those rules adopted within
25180 days after June 1, 2017 (the effective date of Public Act
2699-906). The adoption of emergency rules authorized by this

SB1747 Engrossed- 68 -LRB102 12964 HLH 18307 b
1subsection (x) is deemed to be necessary for the public
2interest, safety, and welfare.
3 (y) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 100-23,
5emergency rules to implement the changes made by Public Act
6100-23 to Section 4.02 of the Illinois Act on the Aging,
7Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
8Section 55-30 of the Alcoholism and Other Drug Abuse and
9Dependency Act, and Sections 74 and 75 of the Mental Health and
10Developmental Disabilities Administrative Act may be adopted
11in accordance with this subsection (y) by the respective
12Department. The adoption of emergency rules authorized by this
13subsection (y) is deemed to be necessary for the public
14interest, safety, and welfare.
15 (z) In order to provide for the expeditious and timely
16implementation of the provisions of Public Act 100-554,
17emergency rules to implement the changes made by Public Act
18100-554 to Section 4.7 of the Lobbyist Registration Act may be
19adopted in accordance with this subsection (z) by the
20Secretary of State. The adoption of emergency rules authorized
21by this subsection (z) is deemed to be necessary for the public
22interest, safety, and welfare.
23 (aa) In order to provide for the expeditious and timely
24initial implementation of the changes made to Articles 5, 5A,
2512, and 14 of the Illinois Public Aid Code under the provisions
26of Public Act 100-581, the Department of Healthcare and Family

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1Services may adopt emergency rules in accordance with this
2subsection (aa). The 24-month limitation on the adoption of
3emergency rules does not apply to rules to initially implement
4the changes made to Articles 5, 5A, 12, and 14 of the Illinois
5Public Aid Code adopted under this subsection (aa). The
6adoption of emergency rules authorized by this subsection (aa)
7is deemed to be necessary for the public interest, safety, and
8welfare.
9 (bb) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-587,
11emergency rules to implement the changes made by Public Act
12100-587 to Section 4.02 of the Illinois Act on the Aging,
13Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
14subsection (b) of Section 55-30 of the Alcoholism and Other
15Drug Abuse and Dependency Act, Section 5-104 of the
16Specialized Mental Health Rehabilitation Act of 2013, and
17Section 75 and subsection (b) of Section 74 of the Mental
18Health and Developmental Disabilities Administrative Act may
19be adopted in accordance with this subsection (bb) by the
20respective Department. The adoption of emergency rules
21authorized by this subsection (bb) is deemed to be necessary
22for the public interest, safety, and welfare.
23 (cc) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 100-587,
25emergency rules may be adopted in accordance with this
26subsection (cc) to implement the changes made by Public Act

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1100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
2Pension Code by the Board created under Article 14 of the Code;
3Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
4the Board created under Article 15 of the Code; and Sections
516-190.5 and 16-190.6 of the Illinois Pension Code by the
6Board created under Article 16 of the Code. The adoption of
7emergency rules authorized by this subsection (cc) is deemed
8to be necessary for the public interest, safety, and welfare.
9 (dd) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 100-864,
11emergency rules to implement the changes made by Public Act
12100-864 to Section 3.35 of the Newborn Metabolic Screening Act
13may be adopted in accordance with this subsection (dd) by the
14Secretary of State. The adoption of emergency rules authorized
15by this subsection (dd) is deemed to be necessary for the
16public interest, safety, and welfare.
17 (ee) In order to provide for the expeditious and timely
18implementation of the provisions of Public Act 100-1172,
19emergency rules implementing the Illinois Underground Natural
20Gas Storage Safety Act may be adopted in accordance with this
21subsection by the Department of Natural Resources. The
22adoption of emergency rules authorized by this subsection is
23deemed to be necessary for the public interest, safety, and
24welfare.
25 (ff) In order to provide for the expeditious and timely
26initial implementation of the changes made to Articles 5A and

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114 of the Illinois Public Aid Code under the provisions of
2Public Act 100-1181, the Department of Healthcare and Family
3Services may on a one-time-only basis adopt emergency rules in
4accordance with this subsection (ff). The 24-month limitation
5on the adoption of emergency rules does not apply to rules to
6initially implement the changes made to Articles 5A and 14 of
7the Illinois Public Aid Code adopted under this subsection
8(ff). The adoption of emergency rules authorized by this
9subsection (ff) is deemed to be necessary for the public
10interest, safety, and welfare.
11 (gg) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 101-1,
13emergency rules may be adopted by the Department of Labor in
14accordance with this subsection (gg) to implement the changes
15made by Public Act 101-1 to the Minimum Wage Law. The adoption
16of emergency rules authorized by this subsection (gg) is
17deemed to be necessary for the public interest, safety, and
18welfare.
19 (hh) In order to provide for the expeditious and timely
20implementation of the provisions of Public Act 101-10,
21emergency rules may be adopted in accordance with this
22subsection (hh) to implement the changes made by Public Act
23101-10 to subsection (j) of Section 5-5.2 of the Illinois
24Public Aid Code. The adoption of emergency rules authorized by
25this subsection (hh) is deemed to be necessary for the public
26interest, safety, and welfare.

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1 (ii) In order to provide for the expeditious and timely
2implementation of the provisions of Public Act 101-10,
3emergency rules to implement the changes made by Public Act
4101-10 to Sections 5-5.4 and 5-5.4i of the Illinois Public Aid
5Code may be adopted in accordance with this subsection (ii) by
6the Department of Public Health. The adoption of emergency
7rules authorized by this subsection (ii) is deemed to be
8necessary for the public interest, safety, and welfare.
9 (jj) In order to provide for the expeditious and timely
10implementation of the provisions of Public Act 101-10,
11emergency rules to implement the changes made by Public Act
12101-10 to Section 74 of the Mental Health and Developmental
13Disabilities Administrative Act may be adopted in accordance
14with this subsection (jj) by the Department of Human Services.
15The adoption of emergency rules authorized by this subsection
16(jj) is deemed to be necessary for the public interest,
17safety, and welfare.
18 (kk) In order to provide for the expeditious and timely
19implementation of the Cannabis Regulation and Tax Act and
20Public Act 101-27, the Department of Revenue, the Department
21of Public Health, the Department of Agriculture, the
22Department of State Police, and the Department of Financial
23and Professional Regulation may adopt emergency rules in
24accordance with this subsection (kk). The rulemaking authority
25granted in this subsection (kk) shall apply only to rules
26adopted before December 31, 2021. Notwithstanding the

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1provisions of subsection (c), emergency rules adopted under
2this subsection (kk) shall be effective for 180 days. The
3adoption of emergency rules authorized by this subsection (kk)
4is deemed to be necessary for the public interest, safety, and
5welfare.
6 (ll) In order to provide for the expeditious and timely
7implementation of the provisions of the Leveling the Playing
8Field for Illinois Retail Act, emergency rules may be adopted
9in accordance with this subsection (ll) to implement the
10changes made by the Leveling the Playing Field for Illinois
11Retail Act. The adoption of emergency rules authorized by this
12subsection (ll) is deemed to be necessary for the public
13interest, safety, and welfare.
14 (mm) In order to provide for the expeditious and timely
15implementation of the provisions of Section 25-70 of the
16Sports Wagering Act, emergency rules to implement Section
1725-70 of the Sports Wagering Act may be adopted in accordance
18with this subsection (mm) by the Department of the Lottery as
19provided in the Sports Wagering Act. The adoption of emergency
20rules authorized by this subsection (mm) is deemed to be
21necessary for the public interest, safety, and welfare.
22 (nn) In order to provide for the expeditious and timely
23implementation of the Sports Wagering Act, emergency rules to
24implement the Sports Wagering Act may be adopted in accordance
25with this subsection (nn) by the Illinois Gaming Board. The
26adoption of emergency rules authorized by this subsection (nn)

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1is deemed to be necessary for the public interest, safety, and
2welfare.
3 (oo) In order to provide for the expeditious and timely
4implementation of the provisions of subsection (c) of Section
520 of the Video Gaming Act, emergency rules to implement the
6provisions of subsection (c) of Section 20 of the Video Gaming
7Act may be adopted in accordance with this subsection (oo) by
8the Illinois Gaming Board. The adoption of emergency rules
9authorized by this subsection (oo) is deemed to be necessary
10for the public interest, safety, and welfare.
11 (pp) In order to provide for the expeditious and timely
12implementation of the provisions of Section 50 of the Sexual
13Assault Evidence Submission Act, emergency rules to implement
14Section 50 of the Sexual Assault Evidence Submission Act may
15be adopted in accordance with this subsection (pp) by the
16Department of State Police. The adoption of emergency rules
17authorized by this subsection (pp) is deemed to be necessary
18for the public interest, safety, and welfare.
19 (qq) In order to provide for the expeditious and timely
20implementation of the provisions of the Illinois Works Jobs
21Program Act, emergency rules may be adopted in accordance with
22this subsection (qq) to implement the Illinois Works Jobs
23Program Act. The adoption of emergency rules authorized by
24this subsection (qq) is deemed to be necessary for the public
25interest, safety, and welfare.
26 (rr) In order to provide for the expeditious and timely

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1implementation of the Illinois Energy Transition Zone Act,
2emergency rules to implement the provisions of subsection
3(a-5) of Section 1-40 of the Illinois Energy Transition Zone
4Act may be adopted in accordance with this subsection (aa) by
5the Department of Commerce and Economic Opportunity for period
6of 12 months after the effective date of the Illinois Energy
7Transition Zone Act. The adoption of emergency rules
8authorized by this subsection (aa) is deemed to be necessary
9for the public interest, safety, and welfare.
10(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
11100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
126-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
13100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
143-8-19; 101-1, eff. 2-19-19; 101-10, Article 20, Section 20-5,
15eff. 6-5-19; 101-10, Article 35, Section 35-5, eff. 6-5-19;
16101-27, eff. 6-25-19; 101-31, Article 15, Section 15-5, eff.
176-28-19; 101-31, Article 25, Section 25-900, eff. 6-28-19;
18101-31, Article 35, Section 35-3, eff. 6-28-19; 101-377, eff.
198-16-19; 101-601, eff. 12-10-19.)
20 Section 10-10. The State Finance Act is amended by adding
21Section 5.935 as follows:
22 (30 ILCS 105/5.935 new)
23 Sec. 5.935. The Energy Transition Fund.

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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
9adding Sections 232 and 233 as follows:
10 (35 ILCS 5/232 new)
11 Sec. 232. Investment credit; Energy Transition Zone.
12 (a) For tax years beginning on or after January 1, 2022, a
13taxpayer shall be allowed a credit against the tax imposed by
14subsections (a) and (b) of Section 201 for investment in
15qualified property which is placed in service for the use of
16the production of green energy by a green energy enterprise in
17an Energy Transition Zone created pursuant to the Illinois
18Energy Transition Zone Act. For partners, shareholders of
19Subchapter S corporations, and owners of limited liability
20companies, if the liability company is treated as a
21partnership for purposes of federal and State income taxation,
22there shall be allowed a credit under this Section to be
23determined in accordance with the determination of income and

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1distributive share of income under Sections 702 and 704 and
2Subchapter S of the Internal Revenue Code. The credit shall be
30.5% of the basis for such property. The credit shall be
4available only in the taxable year in which the property is
5placed in service in the Energy Transition Zone and shall not
6be allowed to the extent that it would reduce a taxpayer's
7liability for the tax imposed by subsections (a) and (b) of
8Section 201 to below zero. The credit shall be allowed for the
9tax year in which the property is placed in service, or, if the
10amount of the credit exceeds the tax liability for that year,
11whether it exceeds the original liability or the liability as
12later amended, such excess may be carried forward and applied
13to the tax liability of the 5 taxable years following the
14excess credit year. The credit shall be applied to the
15earliest year for which there is a liability. If there is
16credit from more than one tax year that is available to offset
17a liability, the credit accruing first in time shall be
18applied first.
19 (b) The term "qualified property" means property which:
20 (1) is tangible, whether new or used, including
21 buildings and structural components of buildings;
22 (2) is depreciable pursuant to Section 167 of the
23 Internal Revenue Code, except that "3-year property" as
24 defined in Section 168(c)(2)(A) of that Code is not
25 eligible for the credit provided by this subsection (f-1);
26 (3) is acquired by purchase as defined in Section

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1 179(d) of the Internal Revenue Code;
2 (4) is used in the Energy Transition Zone by the
3 taxpayer in relation to producing green energy; and
4 (5) has not been previously used in Illinois in such a
5 manner and by such a person as would qualify for the credit
6 provided by this Section.
7 (c) The basis of qualified property shall be the basis
8used to compute the depreciation deduction for federal income
9tax purposes.
10 (d) If the basis of the property for federal income tax
11depreciation purposes is increased after it has been placed in
12service in the Energy Transition Zone by the taxpayer, the
13amount of such increase shall be deemed property placed in
14service on the date of such increase in basis.
15 (e) The term "placed in service" shall have the same
16meaning as under Section 46 of the Internal Revenue Code.
17 (f) If during any taxable year, any property ceases to be
18qualified property in the hands of the taxpayer within 48
19months after being placed in service, or the situs of any
20qualified property is moved outside the Energy Transition Zone
21within 48 months after being placed in service, the tax
22imposed under subsections (a) and (b) of Section 201 for such
23taxable year shall be increased. Such increase shall be
24determined by (i) recomputing the investment credit which
25would have been allowed for the year in which credit for such
26property was originally allowed by eliminating such property

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1from such computation, and (ii) subtracting such recomputed
2credit from the amount of credit previously allowed. For the
3purposes of this subsection, a reduction of the basis of
4qualified property resulting from a redetermination of the
5purchase price shall be deemed a disposition of qualified
6property to the extent of such reduction.
7 (g) The Department of Commerce and Economic Opportunity
8shall provide a tax credit certificate indicating the credit
9amount and the year in which the property is placed in service.
10 (35 ILCS 5/233 new)
11 Sec. 233. Energy Transition Tax Credit Act. For tax years
12beginning on or after January 1, 2022, a taxpayer who
13qualifies for a credit under the Energy Transition Tax Credit
14Act is entitled to a credit against the taxes imposed under
15subsections (a) and (b) of Section 201 of this Act as provided
16in that Act.
17 Section 10-25. The Retailers' Occupation Tax Act is
18amended by adding Section 5k-1 as follows:
19 (35 ILCS 120/5k-1 new)
20 Sec. 5k-1. Building materials exemption; Energy Transition
21Zone.
22 (a) Each retailer who makes a qualified sale of building
23materials to be incorporated into a green energy project, as

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1defined in the Energy Transition Zone Act, being built by a
2green energy enterprise in an Energy Transition Zone
3established by or municipality under the Illinois Energy
4Transition Zone Act by remodeling, rehabilitation or new
5construction, may deduct receipts from such sales when
6calculating the tax imposed by this Act. For purposes of this
7Section, "qualified sale" means a sale of building materials
8that will be incorporated into real estate as part of a
9building project for which an Energy Transition Zone Building
10Materials Exemption Certificate has been issued to the
11purchaser by the Department. A construction contractor or
12other entity shall not make tax-free purchases unless it has
13an active Energy Transition Zone Building Materials Exemption
14Certificate issued by the Department at the time of the
15purchase.
16 (b) To document the exemption allowed under this Section,
17the retailer must obtain from the purchaser the certification
18required under subsection (c), which must contain the Energy
19Transition Zone Building Materials Exemption Certificate
20number issued to the purchaser by the Department. Upon request
21from the Energy Transition Zone Administrator, the Department
22shall issue an Energy Transition Zone Building Materials
23Exemption Certificate for each construction contractor or
24other entity identified by the Energy Transition Zone
25Administrator. The Department shall make the Energy Transition
26Zone Building Materials Exemption Certificates available

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1directly to each Energy Transition Zone Administrator,
2construction contractor, or other entity. The request for
3Energy Transition Zone Building Materials Exemption
4Certificates from the Energy Transition Zone Administrator to
5the Department must include the following information:
6 (1) the name and address of the construction
7 contractor or other entity;
8 (2) the name and number of the Energy Transition Zone;
9 (3) the name and location or address of the green
10 energy enterprise;
11 (4) the estimated amount of the exemption for each
12 construction contractor or other entity for which a
13 request for Energy Transition Zone Building Materials
14 Exemption Certificate is made, based on a stated estimated
15 average tax rate and the percentage of the contract that
16 consists of materials;
17 (5) the period of time over which supplies for the
18 project are expected to be purchased; and
19 (6) other reasonable information as the Department may
20 require, including, but not limited to FEIN numbers, to
21 determine if the contractor or other entity, or any
22 partner, or a corporate officer, and in the case of a
23 limited liability company, any manager or member, of the
24 construction contractor or other entity, is or has been
25 the owner, a partner, a corporate officer, and in the case
26 of a limited liability company, a manager or member, of a

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1 person that is in default for moneys due to the Department
2 under this Act or any other tax or fee Act administered by
3 the Department.
4 The Department shall issue the Energy Transition Zone
5Building Materials Exemption Certificates within 3 business
6days after receipt of request from the Zone Administrator.
7This requirement does not apply in circumstances where the
8Department, for reasonable cause, is unable to issue the
9Energy Transition Zone Building Materials Exemption
10Certificate within 3 business days. The Department may refuse
11to issue an Energy Transition Zone Building Materials
12Exemption Certificate if the owner, any partner, or a
13corporate officer, and in the case of a limited liability
14company, any manager or member, of the construction contractor
15or other entity is or has been the owner, a partner, a
16corporate officer, and in the case of a limited liability
17company, a manager or member, of a person that is in default
18for moneys due to the Department under this Act or any other
19tax or fee Act administered by the Department. The Energy
20Transition Zone Building Materials Exemption Certificate shall
21contain language stating that if the construction contractor
22or other entity who is issued the Energy Transition Zone
23Building Materials Exemption Certificate makes a tax-exempt
24purchase, as described in this Section, that is not eligible
25for exemption under this Section or allows another person to
26make a tax-exempt purchase, as described in this Section, that

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1is not eligible for exemption under this Section, then, in
2addition to any tax or other penalty imposed, the construction
3contractor or other entity is subject to a penalty equal to the
4tax that would have been paid by the retailer under this Act as
5well as any applicable local retailers' occupation tax on the
6purchase that is not eligible for the exemption.
7 The Department, in its discretion, may require that the
8request for Energy Transition Zone Building Materials
9Exemption Certificates be submitted electronically. The
10Department may, in its discretion, issue the Energy Transition
11Zone Building Materials Exemption Certificates electronically.
12The Energy Transition Zone Building Materials Exemption
13Certificate number shall be designed in such a way that the
14Department can identify from the unique number on the Energy
15Transition Zone Building Materials Exemption Certificate
16issued to a given construction contractor or other entity, the
17name of the Energy Transition Zone, the project for which the
18Energy Transition Zone Building Materials Exemption
19Certificate is issued, and the construction contractor or
20other entity to whom the Energy Transition Zone Building
21Materials Exemption Certificate is issued. The Energy
22Transition Zone Building Materials Exemption Certificate shall
23contain an expiration date, which shall be no more than 2 years
24after the date of issuance. At the request of the Zone
25Administrator, the Department may renew an Energy Transition
26Zone Building Materials Exemption Certificate. After the

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1Department issues Energy Transition Zone Building Materials
2Exemption Certificates for a given Energy Transition Zone
3project, the Energy Transition Zone Administrator may notify
4the Department of additional construction contractors or other
5entities eligible for an Energy Transition Zone Building
6Materials Exemption Certificate. Upon notification by the
7Energy Transition Zone Administrator and subject to the other
8provisions of this subsection (b), the Department shall issue
9an Energy Transition Zone Building Materials Exemption
10Certificate to each additional construction contractor or
11other entity identified by the Energy Transition Zone
12Administrator. An Energy Transition Zone Administrator may
13notify the Department to rescind an Energy Transition Zone
14Building Materials Exemption Certificate previously issued by
15the Department but that has not yet expired. Upon notification
16by the Energy Transition Zone Administrator and subject to the
17other provisions of this subsection (b), the Department shall
18issue the rescission of the Energy Transition Zone Building
19Materials Exemption Certificate to the construction contractor
20or other entity identified by the Energy Transition Zone
21Administrator and provide a copy to the Energy Transition Zone
22Administrator.
23 If the Department of Revenue determines that a
24construction contractor or other entity that was issued an
25Energy Transition Zone Building Materials Exemption
26Certificate under this subsection (b) made a tax-exempt

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1purchase, as described in this Section, that was not eligible
2for exemption under this Section or allowed another person to
3make a tax-exempt purchase, as described in this Section, that
4was not eligible for exemption under this Section, then, in
5addition to any tax or other penalty imposed, the construction
6contractor or other entity is subject to a penalty equal to the
7tax that would have been paid by the retailer under this Act as
8well as any applicable local retailers' occupation tax on the
9purchase that was not eligible for the exemption.
10 (c) In addition, the retailer must obtain certification
11from the purchaser that contains:
12 (1) a statement that the building materials are being
13 purchased for incorporation into a green energy project
14 located in an Illinois Energy Transition Zone;
15 (2) the location or address of the real estate into
16 which the building materials will be incorporated;
17 (3) the name of the Energy Transition Zone in which
18 that real estate is located;
19 (4) a description of the building materials being
20 purchased;
21 (5) the purchaser's Energy Transition Zone Building
22 Materials Exemption Certificate number issued by the
23 Department; and
24 (6) the purchaser's signature and date of purchase.
25 (d) The deduction allowed by this Section for the sale of
26building materials may be limited, to the extent authorized by

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1ordinance by the municipality or county that created the
2Energy Transition Zone into which the building materials will
3be incorporated. The ordinance, however, may neither require
4nor prohibit the purchase of building materials from any
5retailer or class of retailers in order to qualify for the
6exemption allowed under this Section. The provisions of this
7Section are exempt from Section 2-70.
8 Section 10-30. The Illinois Municipal Code is amended by
9changing Section 8-11-2 as follows:
10 (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
11 Sec. 8-11-2. The corporate authorities of any municipality
12may tax any or all of the following occupations or privileges:
13 1. (Blank).
14 2. Persons engaged in the business of distributing,
15 supplying, furnishing, or selling gas for use or
16 consumption within the corporate limits of a municipality
17 of 500,000 or fewer population, and not for resale, at a
18 rate not to exceed 5% of the gross receipts therefrom.
19 2a. Persons engaged in the business of distributing,
20 supplying, furnishing, or selling gas for use or
21 consumption within the corporate limits of a municipality
22 of over 500,000 population, and not for resale, at a rate
23 not to exceed 8% of the gross receipts therefrom. If
24 imposed, this tax shall be paid in monthly payments.

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1 3. The privilege of using or consuming electricity
2 acquired in a purchase at retail and used or consumed
3 within the corporate limits of the municipality at rates
4 not to exceed the following maximum rates, calculated on a
5 monthly basis for each purchaser:
6 (i) For the first 2,000 kilowatt-hours used or
7 consumed in a month; 0.61 cents per kilowatt-hour;
8 (ii) For the next 48,000 kilowatt-hours used or
9 consumed in a month; 0.40 cents per kilowatt-hour;
10 (iii) For the next 50,000 kilowatt-hours used or
11 consumed in a month; 0.36 cents per kilowatt-hour;
12 (iv) For the next 400,000 kilowatt-hours used or
13 consumed in a month; 0.35 cents per kilowatt-hour;
14 (v) For the next 500,000 kilowatt-hours used or
15 consumed in a month; 0.34 cents per kilowatt-hour;
16 (vi) For the next 2,000,000 kilowatt-hours used or
17 consumed in a month; 0.32 cents per kilowatt-hour;
18 (vii) For the next 2,000,000 kilowatt-hours used
19 or consumed in a month; 0.315 cents per kilowatt-hour;
20 (viii) For the next 5,000,000 kilowatt-hours used
21 or consumed in a month; 0.31 cents per kilowatt-hour;
22 (ix) For the next 10,000,000 kilowatt-hours used
23 or consumed in a month; 0.305 cents per kilowatt-hour;
24 and
25 (x) For all electricity used or consumed in excess
26 of 20,000,000 kilowatt-hours in a month, 0.30 cents

SB1747 Engrossed- 88 -LRB102 12964 HLH 18307 b
1 per kilowatt-hour.
2 If a municipality imposes a tax at rates lower than
3 either the maximum rates specified in this Section or the
4 alternative maximum rates promulgated by the Illinois
5 Commerce Commission, as provided below, the tax rates
6 shall be imposed upon the kilowatt-hour categories set
7 forth above with the same proportional relationship as
8 that which exists among such maximum rates.
9 Notwithstanding the foregoing, until December 31, 2008, no
10 municipality shall establish rates that are in excess of
11 rates reasonably calculated to produce revenues that equal
12 the maximum total revenues such municipality could have
13 received under the tax authorized by this subparagraph in
14 the last full calendar year prior to August 1, 1998 (the
15 effective date of Section 65 of Public Act 90-561);
16 provided that this shall not be a limitation on the amount
17 of tax revenues actually collected by such municipality.
18 Upon the request of the corporate authorities of a
19 municipality, the Illinois Commerce Commission shall,
20 within 90 days after receipt of such request, promulgate
21 alternative rates for each of these kilowatt-hour
22 categories that will reflect, as closely as reasonably
23 practical for that municipality, the distribution of the
24 tax among classes of purchasers as if the tax were based on
25 a uniform percentage of the purchase price of electricity.
26 A municipality that has adopted an ordinance imposing a

SB1747 Engrossed- 89 -LRB102 12964 HLH 18307 b
1 tax pursuant to subparagraph 3 as it existed prior to
2 August 1, 1998 (the effective date of Section 65 of Public
3 Act 90-561) may, rather than imposing the tax permitted by
4 Public Act 90-561, continue to impose the tax pursuant to
5 that ordinance with respect to gross receipts received
6 from residential customers through July 31, 1999, and with
7 respect to gross receipts from any non-residential
8 customer until the first bill issued to such customer for
9 delivery services in accordance with Section 16-104 of the
10 Public Utilities Act but in no case later than the last
11 bill issued to such customer before December 31, 2000. No
12 ordinance imposing the tax permitted by Public Act 90-561
13 shall be applicable to any non-residential customer until
14 the first bill issued to such customer for delivery
15 services in accordance with Section 16-104 of the Public
16 Utilities Act but in no case later than the last bill
17 issued to such non-residential customer before December
18 31, 2000.
19 4. Persons engaged in the business of distributing,
20 supplying, furnishing, or selling water for use or
21 consumption within the corporate limits of the
22 municipality, and not for resale, at a rate not to exceed
23 5% of the gross receipts therefrom.
24 None of the taxes authorized by this Section may be
25imposed with respect to any transaction in interstate commerce
26or otherwise to the extent to which the business or privilege

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1may not, under the constitution and statutes of the United
2States, be made the subject of taxation by this State or any
3political sub-division thereof; nor shall any persons engaged
4in the business of distributing, supplying, furnishing,
5selling or transmitting gas, water, or electricity, or using
6or consuming electricity acquired in a purchase at retail, be
7subject to taxation under the provisions of this Section for
8those transactions that are or may become subject to taxation
9under the provisions of the Municipal Retailers' Occupation
10Tax Act authorized by Section 8-11-1; nor shall any tax
11authorized by this Section be imposed upon any person engaged
12in a business or on any privilege unless the tax is imposed in
13like manner and at the same rate upon all persons engaged in
14businesses of the same class in the municipality, whether
15privately or municipally owned or operated, or exercising the
16same privilege within the municipality.
17 Any of the taxes enumerated in this Section may be in
18addition to the payment of money, or value of products or
19services furnished to the municipality by the taxpayer as
20compensation for the use of its streets, alleys, or other
21public places, or installation and maintenance therein,
22thereon or thereunder of poles, wires, pipes, or other
23equipment used in the operation of the taxpayer's business.
24 (a) If the corporate authorities of any home rule
25municipality have adopted an ordinance that imposed a tax on
26public utility customers, between July 1, 1971, and October 1,

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11981, on the good faith belief that they were exercising
2authority pursuant to Section 6 of Article VII of the 1970
3Illinois Constitution, that action of the corporate
4authorities shall be declared legal and valid, notwithstanding
5a later decision of a judicial tribunal declaring the
6ordinance invalid. No municipality shall be required to
7rebate, refund, or issue credits for any taxes described in
8this paragraph, and those taxes shall be deemed to have been
9levied and collected in accordance with the Constitution and
10laws of this State.
11 (b) In any case in which (i) prior to October 19, 1979, the
12corporate authorities of any municipality have adopted an
13ordinance imposing a tax authorized by this Section (or by the
14predecessor provision of the Revised Cities and Villages Act)
15and have explicitly or in practice interpreted gross receipts
16to include either charges added to customers' bills pursuant
17to the provision of paragraph (a) of Section 36 of the Public
18Utilities Act or charges added to customers' bills by
19taxpayers who are not subject to rate regulation by the
20Illinois Commerce Commission for the purpose of recovering any
21of the tax liabilities or other amounts specified in such
22paragraph (a) of Section 36 of that Act, and (ii) on or after
23October 19, 1979, a judicial tribunal has construed gross
24receipts to exclude all or part of those charges, then neither
25that municipality nor any taxpayer who paid the tax shall be
26required to rebate, refund, or issue credits for any tax

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1imposed or charge collected from customers pursuant to the
2municipality's interpretation prior to October 19, 1979. This
3paragraph reflects a legislative finding that it would be
4contrary to the public interest to require a municipality or
5its taxpayers to refund taxes or charges attributable to the
6municipality's more inclusive interpretation of gross receipts
7prior to October 19, 1979, and is not intended to prescribe or
8limit judicial construction of this Section. The legislative
9finding set forth in this subsection does not apply to taxes
10imposed after January 1, 1996 (the effective date of Public
11Act 89-325).
12 (c) The tax authorized by subparagraph 3 shall be
13collected from the purchaser by the person maintaining a place
14of business in this State who delivers the electricity to the
15purchaser. This tax shall constitute a debt of the purchaser
16to the person who delivers the electricity to the purchaser
17and if unpaid, is recoverable in the same manner as the
18original charge for delivering the electricity. Any tax
19required to be collected pursuant to an ordinance authorized
20by subparagraph 3 and any such tax collected by a person
21delivering electricity shall constitute a debt owed to the
22municipality by such person delivering the electricity,
23provided, that the person delivering electricity shall be
24allowed credit for such tax related to deliveries of
25electricity the charges for which are written off as
26uncollectible, and provided further, that if such charges are

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1thereafter collected, the delivering supplier shall be
2obligated to remit such tax. For purposes of this subsection
3(c), any partial payment not specifically identified by the
4purchaser shall be deemed to be for the delivery of
5electricity. Persons delivering electricity shall collect the
6tax from the purchaser by adding such tax to the gross charge
7for delivering the electricity, in the manner prescribed by
8the municipality. Persons delivering electricity shall also be
9authorized to add to such gross charge an amount equal to 3% of
10the tax to reimburse the person delivering electricity for the
11expenses incurred in keeping records, billing customers,
12preparing and filing returns, remitting the tax and supplying
13data to the municipality upon request. If the person
14delivering electricity fails to collect the tax from the
15purchaser, then the purchaser shall be required to pay the tax
16directly to the municipality in the manner prescribed by the
17municipality. Persons delivering electricity who file returns
18pursuant to this paragraph (c) shall, at the time of filing
19such return, pay the municipality the amount of the tax
20collected pursuant to subparagraph 3.
21 (d) For the purpose of the taxes enumerated in this
22Section:
23 "Gross receipts" means the consideration received for
24distributing, supplying, furnishing or selling gas for use or
25consumption and not for resale, and the consideration received
26for distributing, supplying, furnishing or selling water for

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1use or consumption and not for resale, and for all services
2rendered in connection therewith valued in money, whether
3received in money or otherwise, including cash, credit,
4services and property of every kind and material and for all
5services rendered therewith, and shall be determined without
6any deduction on account of the cost of the service, product or
7commodity supplied, the cost of materials used, labor or
8service cost, or any other expenses whatsoever. "Gross
9receipts" shall not include that portion of the consideration
10received for distributing, supplying, furnishing, or selling
11gas or water to business enterprises or green energy
12enterprises described in paragraph (e) of this Section to the
13extent and during the period in which the exemption authorized
14by paragraph (e) is in effect or for school districts or units
15of local government described in paragraph (f) during the
16period in which the exemption authorized in paragraph (f) is
17in effect.
18 For utility bills issued on or after May 1, 1996, but
19before May 1, 1997, and for receipts from those utility bills,
20"gross receipts" does not include one-third of (i) amounts
21added to customers' bills under Section 9-222 of the Public
22Utilities Act, or (ii) amounts added to customers' bills by
23taxpayers who are not subject to rate regulation by the
24Illinois Commerce Commission for the purpose of recovering any
25of the tax liabilities described in Section 9-222 of the
26Public Utilities Act. For utility bills issued on or after May

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11, 1997, but before May 1, 1998, and for receipts from those
2utility bills, "gross receipts" does not include two-thirds of
3(i) amounts added to customers' bills under Section 9-222 of
4the Public Utilities Act, or (ii) amount added to customers'
5bills by taxpayers who are not subject to rate regulation by
6the Illinois Commerce Commission for the purpose of recovering
7any of the tax liabilities described in Section 9-222 of the
8Public Utilities Act. For utility bills issued on or after May
91, 1998, and for receipts from those utility bills, "gross
10receipts" does not include (i) amounts added to customers'
11bills under Section 9-222 of the Public Utilities Act, or (ii)
12amounts added to customers' bills by taxpayers who are not
13subject to rate regulation by the Illinois Commerce Commission
14for the purpose of recovering any of the tax liabilities
15described in Section 9-222 of the Public Utilities Act.
16 For purposes of this Section "gross receipts" shall not
17include amounts added to customers' bills under Section 9-221
18of the Public Utilities Act. This paragraph is not intended to
19nor does it make any change in the meaning of "gross receipts"
20for the purposes of this Section, but is intended to remove
21possible ambiguities, thereby confirming the existing meaning
22of "gross receipts" prior to January 1, 1996 (the effective
23date of Public Act 89-325).
24 "Person" as used in this Section means any natural
25individual, firm, trust, estate, partnership, association,
26joint stock company, joint adventure, corporation, limited

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1liability company, municipal corporation, the State or any of
2its political subdivisions, any State university created by
3statute, or a receiver, trustee, guardian or other
4representative appointed by order of any court.
5 "Person maintaining a place of business in this State"
6shall mean any person having or maintaining within this State,
7directly or by a subsidiary or other affiliate, an office,
8generation facility, distribution facility, transmission
9facility, sales office or other place of business, or any
10employee, agent, or other representative operating within this
11State under the authority of the person or its subsidiary or
12other affiliate, irrespective of whether such place of
13business or agent or other representative is located in this
14State permanently or temporarily, or whether such person,
15subsidiary or other affiliate is licensed or qualified to do
16business in this State.
17 "Public utility" shall have the meaning ascribed to it in
18Section 3-105 of the Public Utilities Act and shall include
19alternative retail electric suppliers as defined in Section
2016-102 of that Act.
21 "Purchase at retail" shall mean any acquisition of
22electricity by a purchaser for purposes of use or consumption,
23and not for resale, but shall not include the use of
24electricity by a public utility directly in the generation,
25production, transmission, delivery or sale of electricity.
26 "Purchaser" shall mean any person who uses or consumes,

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1within the corporate limits of the municipality, electricity
2acquired in a purchase at retail.
3 (e) Any municipality that imposes taxes upon public
4utilities or upon the privilege of using or consuming
5electricity pursuant to this Section whose territory includes
6any part of an enterprise zone, Energy Transition Zone, or
7federally designated Foreign Trade Zone or Sub-Zone may, by a
8majority vote of its corporate authorities, exempt from those
9taxes for a period not exceeding 20 years any specified
10percentage of gross receipts of public utilities received
11from, or electricity used or consumed by, business enterprises
12or green energy enterprises that:
13 (1) either (i) make investments that cause the
14 creation of a minimum of 200 full-time equivalent jobs in
15 Illinois, (ii) make investments of at least $175,000,000
16 that cause the creation of a minimum of 150 full-time
17 equivalent jobs in Illinois, or (iii) make investments
18 that cause the retention of a minimum of 1,000 full-time
19 jobs in Illinois; and
20 (2) are either (i) located in an Enterprise Zone
21 established pursuant to the Illinois Enterprise Zone Act
22 or (ii) Department of Commerce and Economic Opportunity
23 designated High Impact Businesses located in a federally
24 designated Foreign Trade Zone or Sub-Zone; or (iii)
25 located in an Energy Transition Zone established pursuant
26 to the Illinois Energy Transition Zone Act; and

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1 (3) are certified by the Department of Commerce and
2 Economic Opportunity as complying with the requirements
3 specified in clauses (1) and (2) of this paragraph (e).
4 Upon adoption of the ordinance authorizing the exemption,
5the municipal clerk shall transmit a copy of that ordinance to
6the Department of Commerce and Economic Opportunity. The
7Department of Commerce and Economic Opportunity shall
8determine whether the business enterprises or green energy
9enterprises located in the municipality meet the criteria
10prescribed in this paragraph. If the Department of Commerce
11and Economic Opportunity determines that the business
12enterprises or green energy enterprises meet the criteria, it
13shall grant certification. The Department of Commerce and
14Economic Opportunity shall act upon certification requests
15within 30 days after receipt of the ordinance.
16 Upon certification of the business enterprise or green
17energy enterprises by the Department of Commerce and Economic
18Opportunity, the Department of Commerce and Economic
19Opportunity shall notify the Department of Revenue of the
20certification. The Department of Revenue shall notify the
21public utilities of the exemption status of the gross receipts
22received from, and the electricity used or consumed by, the
23certified business enterprises and certified green energy
24enterprises. Such exemption status shall be effective within 3
25months after certification.
26 (f) A municipality that imposes taxes upon public

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1utilities or upon the privilege of using or consuming
2electricity under this Section and whose territory includes
3part of another unit of local government or a school district
4may by ordinance exempt the other unit of local government or
5school district from those taxes.
6 (g) The amendment of this Section by Public Act 84-127
7shall take precedence over any other amendment of this Section
8by any other amendatory Act passed by the 84th General
9Assembly before August 1, 1985 (the effective date of Public
10Act 84-127).
11 (h) In any case in which, before July 1, 1992, a person
12engaged in the business of transmitting messages through the
13use of mobile equipment, such as cellular phones and paging
14systems, has determined the municipality within which the
15gross receipts from the business originated by reference to
16the location of its transmitting or switching equipment, then
17(i) neither the municipality to which tax was paid on that
18basis nor the taxpayer that paid tax on that basis shall be
19required to rebate, refund, or issue credits for any such tax
20or charge collected from customers to reimburse the taxpayer
21for the tax and (ii) no municipality to which tax would have
22been paid with respect to those gross receipts if the
23provisions of Public Act 87-773 had been in effect before July
241, 1992, shall have any claim against the taxpayer for any
25amount of the tax.
26(Source: P.A. 100-201, eff. 8-18-17.)

SB1747 Engrossed- 100 -LRB102 12964 HLH 18307 b
1 Section 10-35. The Public Utilities Act is amended by
2changing Sections 9-221 and 9-222 and by adding Section
39-222.1b as follows:
4 (220 ILCS 5/9-221) (from Ch. 111 2/3, par. 9-221)
5 Sec. 9-221. Whenever a municipality pursuant to Section
68-11-2 of the Illinois Municipal Code, as heretofore and
7hereafter amended, imposes a tax on any public utility, such
8utility may charge its customers, other than customers who are
9certified business enterprises or certified green energy
10enterprises under paragraph (e) of Section 8-11-2 of the
11Illinois Municipal Code or are exempted from those taxes under
12paragraph (f) of that Section, to the extent of such exemption
13and during the period in which such exemption is in effect, in
14addition to any rate authorized by this Act, an additional
15charge equal to the sum of (1) an amount equal to such
16municipal tax, or any part thereof (2) 3% of such tax, or any
17part thereof, as the case may be, to cover costs of accounting,
18and (3) an amount equal to the increase in taxes and other
19payments to governmental bodies resulting from the amount of
20such additional charge. Such utility shall file with the
21Commission a true and correct copy of the municipal ordinance
22imposing such tax; and also shall file with the Commission a
23supplemental schedule applicable to such municipality which
24shall specify such additional charge and which shall become

SB1747 Engrossed- 101 -LRB102 12964 HLH 18307 b
1effective upon filing without further notice. Such additional
2charge shall be shown separately on the utility bill to each
3customer. The Commission shall have power to investigate
4whether or not such supplemental schedule correctly specifies
5such additional charge, but shall have no power to suspend
6such supplemental schedule. If the Commission finds, after a
7hearing, that such supplemental schedule does not correctly
8specify such additional charge, it shall by order require a
9refund to the appropriate customers of the excess, if any,
10with interest, in such manner as it shall deem just and
11reasonable, and in and by such order shall require the utility
12to file an amended supplemental schedule corresponding to the
13finding and order of the Commission.
14(Source: P.A. 87-895; 88-132.)
15 (220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
16 Sec. 9-222. Whenever a tax is imposed upon a public
17utility engaged in the business of distributing, supplying,
18furnishing, or selling gas for use or consumption pursuant to
19Section 2 of the Gas Revenue Tax Act, or whenever a tax is
20required to be collected by a delivering supplier pursuant to
21Section 2-7 of the Electricity Excise Tax Act, or whenever a
22tax is imposed upon a public utility pursuant to Section 2-202
23of this Act, such utility may charge its customers, other than
24customers who are high impact businesses under Section 5.5 of
25the Illinois Enterprise Zone Act, or certified business

SB1747 Engrossed- 102 -LRB102 12964 HLH 18307 b
1enterprises under Section 9-222.1 of this Act, or certified
2green energy enterprises under Section 9-221.B, to the extent
3of such exemption and during the period in which such
4exemption is in effect, in addition to any rate authorized by
5this Act, an additional charge equal to the total amount of
6such taxes. The exemption of this Section relating to high
7impact businesses shall be subject to the provisions of
8subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
9Enterprise Zone Act. This requirement shall not apply to taxes
10on invested capital imposed pursuant to the Messages Tax Act,
11the Gas Revenue Tax Act and the Public Utilities Revenue Act.
12Such utility shall file with the Commission a supplemental
13schedule which shall specify such additional charge and which
14shall become effective upon filing without further notice.
15Such additional charge shall be shown separately on the
16utility bill to each customer. The Commission shall have the
17power to investigate whether or not such supplemental schedule
18correctly specifies such additional charge, but shall have no
19power to suspend such supplemental schedule. If the Commission
20finds, after a hearing, that such supplemental schedule does
21not correctly specify such additional charge, it shall by
22order require a refund to the appropriate customers of the
23excess, if any, with interest, in such manner as it shall deem
24just and reasonable, and in and by such order shall require the
25utility to file an amended supplemental schedule corresponding
26to the finding and order of the Commission. Except with

SB1747 Engrossed- 103 -LRB102 12964 HLH 18307 b
1respect to taxes imposed on invested capital, such tax
2liabilities shall be recovered from customers solely by means
3of the additional charges authorized by this Section.
4(Source: P.A. 91-914, eff. 7-7-00; 92-12, eff. 7-1-01.)
5 (220 ILCS 5/9-222.1b new)
6 Sec. 9-222.1b. Green energy enterprises. A green energy
7enterprise as defined in the Illinois Energy Transition Zone
8Act, which is located within an area designated by a county or
9municipality as an Energy Transition Zone pursuant to the
10Illinois Energy Transition Zone Act shall be exempt from the
11additional charges added to the green energy enterprise's
12utility bills as a pass-on of municipal and State utility
13taxes under Sections 9-221 and 9-222 of this Act, to the extent
14such charges are exempted by ordinance adopted in accordance
15with paragraph (e) of Section 8-11-2 of the Illinois Municipal
16Code in the case of municipal utility taxes, and to the extent
17such charges are exempted by the percentage specified by the
18Department of Commerce and Economic Opportunity in the case of
19State utility taxes, provided such green energy enterprise
20meets the following criteria:
21 (1) it (i) makes investments which cause the creation
22 of a minimum of 200 full-time equivalent jobs in an Energy
23 Transition Zone; (ii) makes investments of at least
24 $175,000,000 which cause the creation of a minimum of 150
25 full-time equivalent jobs in an Energy Transition Zone; or

SB1747 Engrossed- 104 -LRB102 12964 HLH 18307 b
1 (iii) makes investments which cause the retention of a
2 minimum of 1,000 full-time jobs in an Energy Transition
3 Zone; and
4 (2) it is located in an Energy Transition Zone
5 established pursuant to the Illinois Energy Transition
6 Zone Act; and
7 (3) it is certified by the Department of Commerce and
8 Economic Opportunity as complying with the requirements
9 specified in clauses (1) and (2) of this Section.
10 The Department of Commerce and Economic Opportunity shall
11determine the period during which such exemption from the
12charges imposed under Section 9-222 is in effect which shall
13not exceed 30 years or the certified term of the energy
14transition Zone, whichever period is shorter.
15 The Department of Commerce and Economic Opportunity shall
16have the power to adopt rules to carry out the provisions of
17this Section including procedures for complying with the
18requirements specified in clauses (1) and (2) of this Section
19and procedures for applying for the exemptions authorized
20under this Section; to define the amounts and types of
21eligible investments which green energy enterprises must make
22in order to receive State utility tax exemptions pursuant to
23Sections 9-222 and 9-222.1B of this Act; to approve such
24utility tax exemptions for green energy enterprises whose
25investments are not yet placed in service; and to require that
26green energy enterprises granted tax exemptions repay the

SB1747 Engrossed- 105 -LRB102 12964 HLH 18307 b
1exempted tax should the green energy enterprise fail to comply
2with the terms and conditions of the certification. However,
3no green energy enterprise shall be required, as a condition
4for certification under clause (3) of this Section, to attest
5that its decision to invest under clause (1) of this Section
6and to locate under clause (2) of this Section is predicated
7upon the availability of the exemptions authorized by this
8Section.
9 A green energy enterprise shall be exempt, in whole or in
10part, from the pass-on charges of municipal utility taxes
11imposed under Section 9-221, only if it meets the criteria
12specified in clauses (1) through (3) of this Section and the
13municipality has adopted an ordinance authorizing the
14exemption under paragraph (e) of Section 8-11-2 of the
15Illinois Municipal Code. Upon certification of the green
16energy enterprises by the Department of Commerce and Economic
17Opportunity, the Department of Commerce and Economic
18Opportunity shall notify the Department of Revenue of such
19certification. The Department of Revenue shall notify the
20public utilities of the exemption status of green energy
21enterprises from the pass-on charges of State and municipal
22utility taxes. Such exemption status shall be effective within
233 months after certification of the green energy enterprise.
24 Section 10-40. The Prevailing Wage Act is amended by
25changing Section 2 as follows:

SB1747 Engrossed- 106 -LRB102 12964 HLH 18307 b
1 (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
2 Sec. 2. This Act applies to the wages of laborers,
3mechanics and other workers employed in any public works, as
4hereinafter defined, by any public body and to anyone under
5contracts for public works. This includes any maintenance,
6repair, assembly, or disassembly work performed on equipment
7whether owned, leased, or rented.
8 As used in this Act, unless the context indicates
9otherwise:
10 "Public works" means all fixed works constructed or
11demolished by any public body, or paid for wholly or in part
12out of public funds. "Public works" as defined herein includes
13all projects financed in whole or in part with bonds, grants,
14loans, or other funds made available by or through the State or
15any of its political subdivisions, including but not limited
16to: bonds issued under the Industrial Project Revenue Bond Act
17(Article 11, Division 74 of the Illinois Municipal Code), the
18Industrial Building Revenue Bond Act, the Illinois Finance
19Authority Act, the Illinois Sports Facilities Authority Act,
20or the Build Illinois Bond Act; loans or other funds made
21available pursuant to the Build Illinois Act; loans or other
22funds made available pursuant to the Riverfront Development
23Fund under Section 10-15 of the River Edge Redevelopment Zone
24Act; or funds from the Fund for Illinois' Future under Section
256z-47 of the State Finance Act, funds for school construction

SB1747 Engrossed- 107 -LRB102 12964 HLH 18307 b
1under Section 5 of the General Obligation Bond Act, funds
2authorized under Section 3 of the School Construction Bond
3Act, funds for school infrastructure under Section 6z-45 of
4the State Finance Act, and funds for transportation purposes
5under Section 4 of the General Obligation Bond Act. "Public
6works" also includes (i) all projects financed in whole or in
7part with funds from the Department of Commerce and Economic
8Opportunity under the Illinois Renewable Fuels Development
9Program Act for which there is no project labor agreement;
10(ii) all work performed pursuant to a public private agreement
11under the Public Private Agreements for the Illiana Expressway
12Act or the Public-Private Agreements for the South Suburban
13Airport Act; and (iii) all projects undertaken under a
14public-private agreement under the Public-Private Partnerships
15for Transportation Act. "Public works" also includes all
16projects at leased facility property used for airport purposes
17under Section 35 of the Local Government Facility Lease Act.
18"Public works" also includes the construction of a new wind
19power facility by a business designated as a High Impact
20Business under Section 5.5(a)(3)(E) of the Illinois Enterprise
21Zone Act. "Public works" also includes projects qualifying for
22incentives under the Illinois Energy Transition Zone Act.
23"Public works" does not include work done directly by any
24public utility company, whether or not done under public
25supervision or direction, or paid for wholly or in part out of
26public funds. "Public works" also includes any corrective

SB1747 Engrossed- 108 -LRB102 12964 HLH 18307 b
1action performed pursuant to Title XVI of the Environmental
2Protection Act for which payment from the Underground Storage
3Tank Fund is requested. "Public works" does not include
4projects undertaken by the owner at an owner-occupied
5single-family residence or at an owner-occupied unit of a
6multi-family residence. "Public works" does not include work
7performed for soil and water conservation purposes on
8agricultural lands, whether or not done under public
9supervision or paid for wholly or in part out of public funds,
10done directly by an owner or person who has legal control of
11those lands.
12 "Construction" means all work on public works involving
13laborers, workers or mechanics. This includes any maintenance,
14repair, assembly, or disassembly work performed on equipment
15whether owned, leased, or rented.
16 "Locality" means the county where the physical work upon
17public works is performed, except (1) that if there is not
18available in the county a sufficient number of competent
19skilled laborers, workers and mechanics to construct the
20public works efficiently and properly, "locality" includes any
21other county nearest the one in which the work or construction
22is to be performed and from which such persons may be obtained
23in sufficient numbers to perform the work and (2) that, with
24respect to contracts for highway work with the Department of
25Transportation of this State, "locality" may at the discretion
26of the Secretary of the Department of Transportation be

SB1747 Engrossed- 109 -LRB102 12964 HLH 18307 b
1construed to include two or more adjacent counties from which
2workers may be accessible for work on such construction.
3 "Public body" means the State or any officer, board or
4commission of the State or any political subdivision or
5department thereof, or any institution supported in whole or
6in part by public funds, and includes every county, city,
7town, village, township, school district, irrigation, utility,
8reclamation improvement or other district and every other
9political subdivision, district or municipality of the state
10whether such political subdivision, municipality or district
11operates under a special charter or not.
12 "Labor organization" means an organization that is the
13exclusive representative of an employer's employees recognized
14or certified pursuant to the National Labor Relations Act.
15 The terms "general prevailing rate of hourly wages",
16"general prevailing rate of wages" or "prevailing rate of
17wages" when used in this Act mean the hourly cash wages plus
18annualized fringe benefits for training and apprenticeship
19programs approved by the U.S. Department of Labor, Bureau of
20Apprenticeship and Training, health and welfare, insurance,
21vacations and pensions paid generally, in the locality in
22which the work is being performed, to employees engaged in
23work of a similar character on public works.
24(Source: P.A. 100-1177, eff. 6-1-19.)
25
Article 99. Effective date

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1 Section 99-99. Effective date. This Act takes effect upon
2becoming law.
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