Legislative Issues

The New Downtown Burr Ridge

As the 100th General Assembly is underway, the Illinois Economic Development Association (IEDA) is preparing now for a broader expansion of its government affairs activities, including an expanded distribution of legislation of direct importance to its members; timely composition of white papers on key legislation; and extending the communication outreach of IEDA beyond just its membership to discuss issues like tax incentives and enterprise zones.

IEDA Watch List

APPOINTMENTS

AM1000007 – Sean McCarthy – DCEO Director
AM1000035 – Brittany Ladd – DCEO Assistant Director


HOUSE BILLS

HB209 – UNEMPLOYMNT CONTRIBUTE QUARTRLY
Provides that upon payment of an annual administrative fee not exceeding $100, during the first 3 calendar quarters an employer may pay its quarterly contributions due for wages in equal installments. Establishes a schedule for payment of the contributions. Provides for the accrual of interest.

HB220 – MOTOR FUEL – Local Gov Disadvantaged Business Enterprise
Provides that no municipality, county, or road district that received motor fuel tax distributions totaling more than $100,000 in the previous State fiscal year shall receive a future distribution of motor fuel tax moneys unless that municipality, county, or road district implements a disadvantaged business enterprise program setting goals for the inclusion of minority, disadvantaged, and female-owned businesses in the procurement of contracts.

HB306 – JOB CREATION FINANCE ACT
Provides that municipalities may designate job creation areas. Provides that businesses that undertake job creation projects in those designated areas are eligible for certain tax incentives. Provides that municipalities may issue bonds in connection with those projects. Contains provisions concerning public hearings.

HB335 – RIVER EDGE REDEVELOP-KANKAKEE
Amends the River Edge Redevelopment Zone Act. Provides that the Department of Commerce and Economic Opportunity may certify one additional pilot River Edge Redevelopment Zone in the City of Kankakee.

HB337 – PROP TX-ASSESSMENT FREEZE
Creates a Township Property Tax Extension Freeze for the 2017 levy year for townships with a population of 100,000 or less that are located within a county that is subject to the Property Tax Extension Limitation Law.

HB342 – MUNI CD-TIF BONDS
Provides that all obligations issued by a non-home rule municipality in connection with the Tax Increment Allocation Redevelopment Act (instead of TIF obligations secured by the full faith and credit of the municipality) are subject to a backdoor referendum. Provides that a petition calling for a referendum on the issuance of those bonds shall be filed within 45 (instead of 30) days after the publication of the ordinance. Makes changes concerning the signature requirement for those petitions.

HB361 – PROP TX-TIF INFO ON BILL
Provides that each tax bill shall contain a list of each tax increment financing (TIF) district in which the property is located and the dollar amount of tax due that is allocable to the TIF district.

HB372 – MUNI CD-WAUKEGAN REDEVELOP
Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the City of Waukegan may utilize revenues, other than State sales tax increment revenues, from one redevelopment project area for eligible costs in another redevelopment project area.

HB387 – LLC FEE SCHEDULE
Amends the Limited Liability Company Act. Reduces some fees in the fee schedule for limited liability companies filing documents with the Secretary of State to match the fees for similar documents in the fee schedule for corporations.

HB398 – DCEO-REVITALIZATION GRANTS
Provides that the Department is authorized to create a Regional Economic Revitalization Competition Program for the purpose of making competitive grants for the economic development regions of the State in need of community and economic revitalization.

HB450 – INC TX-R AND D CREDIT
Amends the Illinois Income Tax Act. Provides that the research and development credit applies on a permanent basis. Provides that the research and development credit applies for all tax years ending on or after December 31, 2004.

HB460 – INC TX-CORPORATE INCOME TAX
Amends the Illinois Income Tax Act. Reduces the income tax rate for corporations to 2.625% for taxable years beginning on or after January 1, 2017 (currently, the rate is 5.25% for taxable years beginning prior to January 1, 2025 and 4.8% for taxable years beginning on or after January 1, 2025).

HB713 – MUNI CD-TIF REDEVELOPMENT PLAN
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Revises the definition of “redevelopment project costs” by providing that redevelopment project costs for a redevelopment project area includes all or a portion of a taxing district’s capital or operating costs (currently, only capital costs) resulting from the redevelopment project reasonably incurred (currently, necessarily incurred) or to be incurred within a taxing district as a result of the redevelopment plan and project (currently, incurred within a taxing district in furtherance of the objectives of the redevelopment plan and project). Removes a requirement that the municipality, by written agreement, accept and approve these costs.

HB729 – LOCAL GOV STABILIZATION ACT
Creates the Local Government Stabilization Authority Act. Authorizes the corporate authorities of Bloom Township, Bremen Township, Calumet Township, Rich Township, and Thornton Township in Cook County to establish, by ordinance, a Local Government Stabilization Authority that shall use available funds to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use, combatting community deterioration, and creating economic growth.

HB730 – INC TX-RIVER EDGE
Provides that the credit for expenditures incurred in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone applies for taxable years beginning on or after January 1, 2012 and ending prior to January 1, 2023 (currently, January 1, 2018).

HB818 – USE/OCC-DATA CENTERS
Provides that the Department of Commerce and Economic Opportunity shall issue certificates of exemption to qualified Illinois data centers. Provides that qualified tangible personal property used in the construction or operation of a certified data center is exempt from the taxes imposed under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act. Provides that certified data centers are exempt from the tax imposed under the Electricity Excise Tax Law.

HB1780 – INCOME TAX-RIVER EDGE CREDIT
Provides that the income tax credit awarded for the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone sunsets on January 1, 2022 (currently, January 1, 2017).

HB1813 – DCEO-SMALL BUSINESS PROGRAM
Provides that the Department shall establish a Networking for Success Program. Provides that the program shall assist small to mid-sized businesses in strategic market research, geographic information systems, web design and search engine optimization, and social media marketing.

HB2359 – ENTERPRISE ZONES-ADDITIONAL
Provides that, in calendar year 2017, the Department of Commerce and Economic Opportunity may certify an additional 25 Enterprise Zones. Provides that for Enterprise Zones scheduled to expire after January 1, 2017, the application process shall begin 5 years (currently, 2 years) prior to the year in which the Zone expires.

HB2363 – HGHWY CD-MOTOR FUEL TAX-PLAN
Provides that in order to properly plan the utilization of motor fuel tax funds, each municipality of over 5,000 population shall be required to develop and update a 5 year (rather than 20 year) long-range highway transportation plan. Provides that the plan shall, amongst other requirements, include the projected future traffic usage of each highway for a 5 year (rather than 20 year) period and include a listing of the major improvements anticipated within 3 years (rather than 5 years) of the date of each plan.

HB2393 – ST CONTRACTS-MINORITY BUSINESS
Amends the Business Enterprise for Minorities, Females, and Persons with Disabilities Act. Provides that all State agencies shall increase their award of State contracts to minority owned businesses by 15%.

HB2438 – INCOME TAX-R AND D CREDIT
Provides that the research and development credit applies on a permanent basis. Provides that the research and development credit may be carried forward for a period of 20 taxable years (now, 5 taxable years) or carried back for one taxable year. Extends the research and development credit for 10 years.

HB2808 – SCHOOL FUNDING-EVIDENCE-BASED
Provides that the Act may be referred to as the Evidence-Based Funding for Student Success Act. Amends the Economic Development Area Tax Increment Allocation Act, State Finance Act, Property Tax Code, Innovation Development and Economy Act, County Economic Development Project Area Property Tax Allocation Act, County Economic Development Project Area Tax Increment Allocation Act of 1991, Illinois Municipal Code, Economic Development Project Area Tax Increment Allocation Act of 1995, School Code, and Educational Opportunity for Military Children Act. Provides that the State aid formula provisions of the School Code apply through the 2016-2017 school year. Provides for an evidence-based funding formula beginning with the 2017-2018 school year. Sets forth provisions concerning an adequacy target calculation, a local capacity calculation, a base funding minimum calculation, a percent of adequacy and final resources calculation, an evidence-based funding formula distribution system, State Superintendent of Education administration of funding and school district submission requirements, and a Professional Judgment Panel.

HB2834 – EDGE-SUNSET
Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall not enter into any new EDGE Agreements after December 31, 2021 (currently, December 31, 2016). Effective immediately.

HB2859 – DCEO-JOB TRAINING-UNEMPLOYMENT
Requires the Department of Commerce and Economic Opportunity to survey the various counties of the State to assess the degree of labor surplus on a monthly basis. Requires the Department to give priority to providing grants under its Job Training and Economic Development Grant Program for the purpose of job-training programs in any county or counties which have an unemployment rate in excess of 110% of the U.S. civilian unemployment rate, seasonally adjusted for comparable periods.

HB3105 – GROWING ECONOMY TAX CREDIT
Removes provisions concerning conditions that the Business Investment Committee shall determine exist in order for the Committee to make its recommendation that an Applicant’s application for Credit should or should not be accepted.

HB3290 – INC TX-APPRENTICE CREDIT
Creates a credit for wages paid pursuant to a qualified apprenticeship program. Provides that a “qualified apprenticeship program” means an apprenticeship program in manufacturing, plastics, or construction trades that is (i) certified by the Department of Commerce and Economic Opportunity and (ii) at least 3 years in duration. Provides that the credit may not exceed the lesser of (i) 50% of the wages paid by the taxpayer to each apprentice during the taxable year or (ii) $4,800 per apprentice. Provides that the credit may be carried forward for 5 taxable years.


SENATE BILLS

SB1-SB13: Cullerton/Radogno “Grand Bargain” Budget Proposal
SB1 – EDUCATION/SCHOOL CONSTRUCTION
SB2 – MINIMUM WAGE
SB3 – LOCAL GOVERNMENT CONSOLIDATION
SB4 – GO RESTRUCTURING BONDS/BORROWING
SB5 – CPS PENSIONS
SB6 – APPROPRIATIONS AND REAPPROP
SB7 – GAMING EXPANSION – CHICAGO CASINO
SB8 – PROCUREMENT COMPLIANCE
SB9 – INCOME TAX, SERVICE TAX INCREASE
SB10 – HOME RULE AGREEMENTS
SB11 – FIVE PENSION SYSTEMS
SB12 – WORKERS COMP & FOIA
SB13 – PROPERTY TAXES

SB85 – LOCAL GOVT INSPECTOR GENERAL
Creates the Local Government Inspector General Act. Provides that the purpose of the Act is to establish an independent entity to which allegations of incompetence, neglect of duty, malfeasance in office, corruption, or official misconduct involving units of local government, including their officers, employees, and agents, or elected or appointed local officials, may be reported and investigated with the assistance of the Attorney General. Creates the Local Government Ethics Commission and the Office of the Local Government Inspector General and provides that members of the Commission and the Inspector General shall be appointed by the Governor with the advice and consent of the Senate. Sets forth the procedures of investigating a complaint and the issuing of reports.

SB190 – DCEO-CLEAN FUEL ED PROGRAM
Amends the Alternate Fuels Act. Repeals a provision requiring the Department of Commerce and Economic Opportunity to administer, subject to appropriation, the Clean Fuel Education Program.

SB606 – REHABILITATION TAX CREDIT
Creates the Illinois Rehabilitation and Revitalization Tax Credit Act. Creates a credit against taxes imposed under the Illinois Income Tax Act and the Illinois Insurance Code in an aggregate amount equal to 20% of qualified expenditures incurred by a qualified taxpayer pursuant to a qualified rehabilitation plan on a qualified structure, provided that the total amount of such qualified expenditures exceeds the greater of $5,000 or the adjusted basis of the property.

SB652 – NEW MARKETS-REQUIREMENTS
New Markets Development Program Act. Provides that, to be considered a “qualified equity investment” under the Act, 100% (currently, 85%) of the cash purchase price of the investment must be used by the issuer to make qualified low-income community investments in the State of Illinois. Requires qualified community development entities to submit an annual job creation report. Provides that the application for certification as a qualified community development entity must include the amount of qualified equity investment authority the applicant agrees to designate as a federal qualified equity investment under Section 45D of the Internal Revenue Code. Provides that no qualified active low-income community business that receives a qualified low-income community investment from a qualified community development entity that issues qualified equity investments under the Act may directly or indirectly (i) own or have the right to acquire an ownership interest in a qualified community development entity or member or affiliate of a qualified community development entity or (ii) loan to or invest in a qualified community development entity or member or affiliate of a qualified community development entity. Provides that the annual cap on credits under the Act is $50,000,000 (currently, $20,000,000)

SB1285 – REVENUE-VARIOUS
Amends the Corporate Accountability for Tax Expenditures Act. Provides that the Unified Economic Development Budget shall be due within 6 months (instead of 3 months) after the end of the fiscal year. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. For the purposes of mandatory payments by electronic funds transfer, provides that the annual tax liability includes motor fuel tax liability and fees under the Environmental Impact Fee law. Amends the Illinois Income Tax Act. Makes changes concerning deposits into the Income Tax Refund Fund, the Fund for the Advancement of Education, and the Commitment to Human Services Fund. Amends the Property Tax Code to allow the Department of Revenue to publish equalization factors on its website. Amends the Retailers’ Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, and the Use Tax Act to make technical corrections. Amends various tax Acts to provide that, if a payment provided for under one of those Acts exceeds the taxpayer’s liability under that Act, then the taxpayer may credit the excess payment against liability subsequently to be remitted to the Department of Revenue. Amends the Renewable Energy, Energy Efficiency, and Coal Resources Development Law of 1997 and the Energy Assistance Act to incorporate certain provisions of the Retailers’ Occupation Tax Act.

SB1563 – INC TX-PUBLICLY TRADED COMPANY
Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that no tax credit may be granted under either of those Acts for any publicly traded company that reports a pay ratio between its chief executive officer’s compensation and its employees’ median pay of more than 200:1 on a disclosure filed with the United States Securities and Exchange Commission during the taxable year in accordance with the pay ratio disclosure requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

SB1567 – EDGE-REPORTS
Provides that each taxpayer claiming a credit under the Act shall, no later than April 15 of each taxable year for which the taxpayer claims a credit, submit to the Illinois Commerce Commission an annual report containing certain information concerning procurement goals and spending for female-owned, minority-owned, veteran-owned, and small business enterprises. Provides that the reports shall be submitted in the form and manner required by the Illinois Commerce Commission.

SB1622 – INC TX-ANGEL INVESTMENT
Provides that the angel investment credit applies for taxable years ending on or before December 31, 2022 (instead of December 31, 2016). Makes changes concerning the annual report submitted by the Department of Commerce and Economic Opportunity to the Governor and the General Assembly.

SB1744 – USE/OCC-DATA CENTERS
Provides that the Department of Commerce and Economic Opportunity shall issue certificates of exemption to qualified Illinois data centers. Provides that qualified tangible personal property used in the construction or operation of a certified data center is exempt from the taxes imposed under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers’ Occupation Tax Act. Provides that certified data centers are exempt from the tax imposed under the Electricity Excise Tax Law.

SB1766 – INC TX-BUSINESS DEVELOPMENT
Creates the Business and Employment Development Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity may certify a business as eligible for an income tax credit under the Act and may award credits to certified businesses. Sets forth the amount of the credit, which is calculated as a percentage of the wages paid to new or retained full-time and part-time employees. Provides that the duration of the credit is 5 taxable years, except that the credit may be carried forward for 5 years. Contains provisions concerning recapture of the credit. Amends the Illinois Income Tax Act to make conforming changes. Provides that the Business and Employment Development Tax Credit is exempt from the Act’s automatic sunset provision.


JOINT RESOLUTIONS

HRJ3 – TRADE POLICY TASK FORCE
Creates the Trade Policy Task Force within the Illinois Department of Commerce and Economic Opportunity – Office of Trade and Investment to (1) analyze important issues relative to the growth of international trade from and to Illinois; (2) make recommendations to Congress, the United States Trade Representative, and the White House National Trade Council regarding trade policies that best serve Illinois; and (3) promote the exportation of goods and services from Illinois and the importation of goods and services into Illinois.