Bill Text: IL SB3643 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Civil Administrative Code of Illinois. Defines "cryptocurrency" and "cryptocurrency mining." Modifies "qualifying Illinois Data center" to include data centers engaged in cryptocurrency mining over a 60-month period that may begin no earlier than 60 months prior the effective date of this Act; or data centers engaged in cryptocurrency commencing before the effective date of this Act and ending after the effective date of this Act in the case of a data center. Effective immediately.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2022-06-22 - Sponsor Removed Sen. Julie A. Morrison [SB3643 Detail]
Download: Illinois-2021-SB3643-Introduced.html
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning State government.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 5. The Department of Commerce and Economic | |||||||||||||||||||
5 | Opportunity Law of the
Civil Administrative Code of Illinois | |||||||||||||||||||
6 | is amended by changing Section 605-1025 as follows:
| |||||||||||||||||||
7 | (20 ILCS 605/605-1025) | |||||||||||||||||||
8 | Sec. 605-1025. Data center investment. | |||||||||||||||||||
9 | (a) The Department shall issue certificates of exemption | |||||||||||||||||||
10 | from the Retailers' Occupation Tax Act, the Use Tax Act, the | |||||||||||||||||||
11 | Service Use Tax Act, and the Service Occupation Tax Act, all | |||||||||||||||||||
12 | locally-imposed retailers' occupation taxes administered and | |||||||||||||||||||
13 | collected by the Department, the Chicago non-titled Use Tax, | |||||||||||||||||||
14 | and a credit certification against the taxes imposed under | |||||||||||||||||||
15 | subsections (a) and (b) of Section 201 of the Illinois Income | |||||||||||||||||||
16 | Tax Act to qualifying Illinois data centers. | |||||||||||||||||||
17 | (b) For taxable years beginning on or after January 1, | |||||||||||||||||||
18 | 2019, the Department shall award credits against the taxes | |||||||||||||||||||
19 | imposed under subsections (a) and (b) of Section 201 of the | |||||||||||||||||||
20 | Illinois Income Tax Act as provided in Section 229 of the | |||||||||||||||||||
21 | Illinois Income Tax Act. | |||||||||||||||||||
22 | (c) For purposes of this Section: | |||||||||||||||||||
23 | "Cryptocurrency" means a type of virtual currency that |
| |||||||
| |||||||
1 | utilizes cryptography to secure transactions that are | ||||||
2 | digitally recorded on a distributed ledger, such as a | ||||||
3 | blockchain. | ||||||
4 | "Cryptocurrency mining" means the process whereby | ||||||
5 | computers, also known as nodes or mining rigs, validate | ||||||
6 | blockchain transactions for a specific cryptocurrency and, in | ||||||
7 | turn, receive a mining reward for their computational efforts. | ||||||
8 | "Data center" means a facility: (1) whose primary | ||||||
9 | services are the storage, management, and processing of | ||||||
10 | digital data and cryptocurrency mining ; and (2) that is | ||||||
11 | used to house (i) computer and network systems, including | ||||||
12 | associated components such as servers, network equipment | ||||||
13 | and appliances, telecommunications, and data storage | ||||||
14 | systems, (ii) systems for monitoring and managing | ||||||
15 | infrastructure performance, (iii) Internet-related | ||||||
16 | equipment and services, (iv) data communications | ||||||
17 | connections, (v) environmental controls, (vi) fire | ||||||
18 | protection systems, and (vii) security systems and | ||||||
19 | services. | ||||||
20 | "Qualifying Illinois data center" means a new or | ||||||
21 | existing data center that: | ||||||
22 | (1) is located in the State of Illinois; | ||||||
23 | (2) in the case of an existing data center, made a | ||||||
24 | capital investment of at least $250,000,000 | ||||||
25 | collectively by the data center operator and the | ||||||
26 | tenants of the data center over the 60-month period |
| |||||||
| |||||||
1 | immediately prior to January 1, 2020 , or in the case of | ||||||
2 | a data center engaged in cryptocurrency mining over a | ||||||
3 | 60-month period that may begin no earlier than 60 | ||||||
4 | months prior the effective date of this amendatory act | ||||||
5 | of 2022, or committed to make a capital investment of | ||||||
6 | at least $250,000,000 over a 60-month period | ||||||
7 | commencing before January 1, 2020 and ending after | ||||||
8 | January 1, 2020 , or commencing before the effective | ||||||
9 | date of this amendatory Act of 2022 and ending after | ||||||
10 | the effective date of this amendatory Act of 2022 in | ||||||
11 | the case of a data center engaged in cryptocurrency ; | ||||||
12 | or | ||||||
13 | (3) in the case of a new data center, or an | ||||||
14 | existing data center making an upgrade, makes a | ||||||
15 | capital investment of at least $250,000,000 over a | ||||||
16 | 60-month period beginning on or after January 1, 2020; | ||||||
17 | and | ||||||
18 | (4) in the case of both existing and new data | ||||||
19 | centers, results in the creation of at least 20 | ||||||
20 | full-time or full-time equivalent new jobs over a | ||||||
21 | period of 60 months by the data center operator and the | ||||||
22 | tenants of the data center, collectively, associated | ||||||
23 | with the operation or maintenance of the data center; | ||||||
24 | those jobs must have a total compensation equal to or | ||||||
25 | greater than 120% of the average wage paid to | ||||||
26 | full-time employees in the county where the data |
| |||||||
| |||||||
1 | center is located, as determined by the U.S. Bureau of | ||||||
2 | Labor Statistics; and | ||||||
3 | (5) within 2 years after being placed in service, | ||||||
4 | certifies to the Department that it is carbon neutral | ||||||
5 | or has attained certification under one or more of the | ||||||
6 | following green building standards: | ||||||
7 | (A) BREEAM for New Construction or BREEAM | ||||||
8 | In-Use; | ||||||
9 | (B) ENERGY STAR; | ||||||
10 | (C) Envision; | ||||||
11 | (D) ISO 50001-energy management; | ||||||
12 | (E) LEED for Building Design and Construction | ||||||
13 | or LEED for Operations and Maintenance; | ||||||
14 | (F) Green Globes for New Construction or Green | ||||||
15 | Globes for Existing Buildings; | ||||||
16 | (G) UL 3223; or | ||||||
17 | (H) an equivalent program approved by the | ||||||
18 | Department of Commerce and Economic Opportunity. | ||||||
19 | "Full-time equivalent job" means a job in which the | ||||||
20 | new employee works for the owner, operator, contractor, or | ||||||
21 | tenant of a data center or for a corporation under | ||||||
22 | contract with the owner, operator or tenant of a data | ||||||
23 | center at a rate of at least 35 hours per week. An owner, | ||||||
24 | operator or tenant who employs labor or services at a | ||||||
25 | specific site or facility under contract with another may | ||||||
26 | declare one full-time, permanent job for every 1,820 man |
| |||||||
| |||||||
1 | hours worked per year under that contract. Vacations, paid | ||||||
2 | holidays, and sick time are included in this computation. | ||||||
3 | Overtime is not considered a part of regular hours. | ||||||
4 | "Qualified tangible personal property" means: | ||||||
5 | electrical systems and equipment; climate control and | ||||||
6 | chilling equipment and systems; mechanical systems and | ||||||
7 | equipment; monitoring and secure systems; emergency | ||||||
8 | generators; hardware; computers; servers; data storage | ||||||
9 | devices; network connectivity equipment; racks; cabinets; | ||||||
10 | telecommunications cabling infrastructure; raised floor | ||||||
11 | systems; peripheral components or systems; software; | ||||||
12 | mechanical, electrical, or plumbing systems; battery | ||||||
13 | systems; cooling systems and towers; temperature control | ||||||
14 | systems; other cabling; and other data center | ||||||
15 | infrastructure equipment and systems necessary to operate | ||||||
16 | qualified tangible personal property, including fixtures; | ||||||
17 | and component parts of any of the foregoing, including | ||||||
18 | installation, maintenance, repair, refurbishment, and | ||||||
19 | replacement of qualified tangible personal property to | ||||||
20 | generate, transform, transmit, distribute, or manage | ||||||
21 | electricity necessary to operate qualified tangible | ||||||
22 | personal property; and all other tangible personal | ||||||
23 | property that is essential to the operations of a computer | ||||||
24 | data center. "Qualified tangible personal property" also | ||||||
25 | includes building materials physically incorporated in to | ||||||
26 | the qualifying data center. |
| |||||||
| |||||||
1 | To document the exemption allowed under this Section, the | ||||||
2 | retailer must obtain from the purchaser a copy of the | ||||||
3 | certificate of eligibility issued by the Department. | ||||||
4 | (d) New and existing data centers seeking a certificate of | ||||||
5 | exemption for new or existing facilities shall apply to the | ||||||
6 | Department in the manner specified by the Department. The | ||||||
7 | Department shall determine the duration of the certificate of | ||||||
8 | exemption awarded under this Act. The duration of the | ||||||
9 | certificate of exemption may not exceed 20 calendar years. The | ||||||
10 | Department and any data center seeking the exemption, | ||||||
11 | including a data center operator on behalf of itself and its | ||||||
12 | tenants, must enter into a memorandum of understanding that at | ||||||
13 | a minimum provides: | ||||||
14 | (1) the details for determining the amount of capital | ||||||
15 | investment to be made; | ||||||
16 | (2) the number of new jobs created; | ||||||
17 | (3) the timeline for achieving the capital investment | ||||||
18 | and new job goals; | ||||||
19 | (4) the repayment obligation should those goals not be | ||||||
20 | achieved and any conditions under which repayment by the | ||||||
21 | qualifying data center or data center tenant claiming the | ||||||
22 | exemption will be required; | ||||||
23 | (5) the duration of the exemption; and | ||||||
24 | (6) other provisions as deemed necessary by the | ||||||
25 | Department. | ||||||
26 | (e) Beginning July 1, 2021, and each year thereafter, the |
| |||||||
| |||||||
1 | Department shall annually report to the Governor and the | ||||||
2 | General Assembly on the outcomes and effectiveness of Public | ||||||
3 | Act 101-31 that shall include the following: | ||||||
4 | (1) the name of each recipient business; | ||||||
5 | (2) the location of the project; | ||||||
6 | (3) the estimated value of the credit; | ||||||
7 | (4) the number of new jobs and, if applicable, | ||||||
8 | retained jobs pledged as a result of the project; and | ||||||
9 | (5) whether or not the project is located in an | ||||||
10 | underserved area. | ||||||
11 | (f) New and existing data centers seeking a certificate of | ||||||
12 | exemption related to the rehabilitation or construction of | ||||||
13 | data centers in the State shall require the contractor and all | ||||||
14 | subcontractors to comply with the requirements of Section | ||||||
15 | 30-22 of the Illinois Procurement Code as they apply to | ||||||
16 | responsible bidders and to present satisfactory evidence of | ||||||
17 | that compliance to the Department. | ||||||
18 | (g) New and existing data centers seeking a certificate of | ||||||
19 | exemption for the rehabilitation or construction of data | ||||||
20 | centers in the State shall require the contractor to enter | ||||||
21 | into a project labor agreement approved by the Department. | ||||||
22 | (h) Any qualifying data center issued a certificate of | ||||||
23 | exemption under this Section must annually report to the | ||||||
24 | Department the total data center tax benefits that are | ||||||
25 | received by the business. Reports are due no later than May 31 | ||||||
26 | of each year and shall cover the previous calendar year. The |
| |||||||
| |||||||
1 | first report is for the 2019 calendar year and is due no later | ||||||
2 | than May 31, 2020. | ||||||
3 | To the extent that a business issued a certificate of | ||||||
4 | exemption under this Section has obtained an Enterprise Zone | ||||||
5 | Building Materials Exemption Certificate or a High Impact | ||||||
6 | Business Building Materials Exemption Certificate, no | ||||||
7 | additional reporting for those building materials exemption | ||||||
8 | benefits is required under this Section. | ||||||
9 | Failure to file a report under this subsection (h) may | ||||||
10 | result in suspension or revocation of the certificate of | ||||||
11 | exemption. Factors to be considered in determining whether a | ||||||
12 | data center certificate of exemption shall be suspended or | ||||||
13 | revoked include, but are not limited to, prior compliance with | ||||||
14 | the reporting requirements, cooperation in discontinuing and | ||||||
15 | correcting violations, the extent of the violation, and | ||||||
16 | whether the violation was willful or inadvertent. | ||||||
17 | (i) The Department shall not issue any new certificates of | ||||||
18 | exemption under the provisions of this Section after July 1, | ||||||
19 | 2029. This sunset shall not affect any existing certificates | ||||||
20 | of exemption in effect on July 1, 2029.
| ||||||
21 | (j) The Department shall adopt rules to implement and | ||||||
22 | administer this Section. | ||||||
23 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19; | ||||||
24 | 102-427, eff. 8-20-21; 102-558, eff. 8-20-21.)
| ||||||
25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
|