Colleges
Illinois Register, Issue # 27 (July 7, 2017)
COMMUNITY COLLEGESThe ILLINOIS COMMUNITY COLLEGE BOARD proposed amendments to Administration of the Illinois Public Community College Act (23 IAC 1501; 41 Ill Reg 7712) that address the application and approval process for private business and vocational school programs to become eligible for credit transfer to a community college. Only the 6 programs outlined in Sec. 10 of the Career and Workforce Transition Act are eligible for credit transfer; community colleges may accept up to 30 credit hours from one of these programs. The rulemaking also outlines other criteria for an eligible program such as curriculum, accreditation, evaluation, and appeals process. This rulemaking may affect high school counselors, community colleges, other colleges/universities and private vocational schools.

Grants
Illinois Register, Issue # 31 (August 4, 2017)
GRANT APPLICATIONSThe OFFICE OF THE TREASURER proposed amendments to Rules for Charitable Trust Stabilization Committee (74 IAC 650; 41 Ill Reg 10322) updating the grant application process for the Charitable Trust Stabilization Program, which awards grants to community-based organizations and non-profits. Applicants must now submit a Certificate of Good Standing from the Office of the Illinois Secretary of State. Other documentation showing that the applicant is currently registered with the Illinois Attorney General’s Charitable Trust Bureau may be submitted in lieu of a Form CO-1 Charitable Organization Registration Statement. A separate financial statement is no longer required.  Applications may be submitted online via the Treasurer’s website, as well as by mail.

Revenue
Illinois Register, Issue # 33 (August 18, 2017)
USE TAX – The DEPARTMENT OF REVENUE proposed an amendment to Use Tax (86 IAC 150; 41 Ill Reg 10532) that exempts out-of-state retailers attending Illinois trade shows from incurring use tax on sales to Illinois purchasers from their out-of-State locations if they attend no more than 2 Illinois trade shows per calendar year, engage in trade show-related activity at those events for no more than 8 days per calendar year, and their total gross sales receipts from those shows in a single calendar year do not exceed $10,000. Sales made at trade shows remain subject to State and local sales taxes.

Business
Illinois Register, Issue # 11 (March 16, 2018)
SMALL BUSINESSESThe DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY adopted amendments to Illinois Small Business Development Program (14 IAC 570; 41 Ill Reg 12956), effective 3/2/18, implementing recent changes to the Small Business Development Act (PA 100-377). The amendments add veteran owned businesses (along with minority, female and disabled-owned businesses) to those eligible for certain business participation loans and raise the general loan limits (covering no more than 25% of the total project amount) from $750,000 to $2 million. For minority, female, veteran and disabled-owned businesses, the maximum loan amount is the lesser of 50% of the project cost or $400,000 (currently $100,000) unless the DCEO Director grants a waiver. Small businesses may be affected by this rulemaking. (Proposed on October 20, 2017, Issue # 42)

EDGE Credits
Illinois Register, Issue # 42 (October 20, 2017)
EDGE TAX CREDITSThe DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY adopted emergency amendments to Economic Development for a Growing Economy Program (EDGE) (14 IAC 527; 41 Ill Reg 13104), effective 10/3/17 for a maximum of 150 days. An identical proposed rulemaking appears in this week’s Illinois Register at 41 Ill Reg 12953. The emergency and proposed rules implement changes to the EDGE tax credit program stemming from Public Act 100-511 (HB 162), which reduces the capital improvement requirement for applicant projects to none for businesses employing 100 or fewer persons and $2.5 million (currently $5 million) for businesses with more than 100 employees. The Act and these rulemakings also limit the amount of credit available to participating businesses to the lesser of 100% of the incremental income tax attributable to new employees, or the sum of 50% of the incremental income tax (75% if the project is in an underserved area) plus 10% of new employee training costs. Businesses that close or substantially reduce operations at one Illinois location and merely relocate the same size operation to another Illinois location are not eligible to apply for EDGE credits (a relocating business that is expanding is eligible to apply). Agreements between an applicant business and DCEO must provide that if the applicant permanently ceases operations in Illinois during the term of the agreement, the entire credit amount must be refunded to DCEO and reallocated to the local workforce investment area in which that project was located.

A business also cannot enter into more than one agreement for a single location or address at the same time. Other provisions define underserved area, local workforce investment area, training costs, and other key terms; add new reporting and transparency rules; and add reporting provisions for supplier diversity goals.  Small businesses and municipalities will be affected by these rulemakings.

Illinois Register, Issue 50 (December 15, 2017)
Modification to an Emergency rule adopted by DCEO regarding EDGE Tax Credits – EDGE TAX CREDITSThe DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY, in response to a JCAR Objection, adopted a modification to an emergency rulemaking titled Economic Development for a Growing Economy Program (EDGE) (14 IAC 527; 41 Ill Reg 13104) effective 11/30/17 for the remainder of the 150-day term of the emergency rule. The modification removes the 2-year look back from two criteria used to define an “underserved area”: level of participation in the federal free/reduced price school lunch program and level of participation in SNAP. Applicants for EDGE tax credits are affected.

Illinois Register, Issue # 14 (April 6, 2018)
EDGE TAX CREDITSDCEO also adopted amendments to Economic Development for a Growing Economy Program (EDGE) (14 IAC 527; 41 Ill Reg 12953), effective 3/20/18, replacing emergency rules that were effective 10/3/17 (41 Ill Reg 13104) and expired on 3/1/18. The rulemaking implements changes to the EDGE tax credit program stemming from Public Act 100-511 (HB 162), which reduces the capital improvement requirement for applicant projects (none for businesses employing 100 or fewer persons, $2.5 million (formerly $5 million) for businesses with more than 100 employees).

The Act and the rulemaking also limit the amount of credit available to participating businesses to the lesser of 100% of the incremental income tax attributable to new employees, or the sum of 50% of the incremental income tax (75% if the project is in an underserved area) plus 10% of new employee training costs. Businesses that close or substantially reduce operations at one Illinois location and merely relocate the same size operation to another Illinois location are not eligible to apply for EDGE credits (a relocating business that is expanding is eligible to apply).

Agreements between an applicant business and DCEO must provide that if the applicant permanently ceases operations in Illinois during the term of the agreement, the entire credit amount must be refunded to DCEO and reallocated to the local workforce investment area in which that project was located. A business also cannot enter into more than one agreement for a single location or address at the same time. Other provisions define underserved area, local workforce investment area, training costs, and other key terms; add new reporting and transparency rules; and add reporting provisions for supplier diversity goals. Small businesses and municipalities will be affected.

Filing Fees
Illinois Register, Issue # 4 (January 26, 2018)
BUSINESS DOCUMENTSThe SECRETARY OF STATE adopted an emergency amendment to Business Corporation Act (14 IAC 150; 42 Ill Reg 2073), effective 1/9/18, modifying an earlier emergency rulemaking (42 Ill Reg 807, effective 12/29/17) for the remainder of its 150-day term. The original emergency rule implemented Public Act 100-571, effective 12/20/17, which reduced fees for various document filings effective immediately. This emergency amendment gives SOS authority to refund overpayments made by businesses that paid higher document filing fees in November and December 2017 before the PA was signed.

Other Credits
Illinois Register, Issue # 14 (April 6, 2018)
INVESTMENT TAX CREDITSThe DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY proposed amendments to Angel Investment Credit Program (14 IAC 531; 42 Ill Reg 5932) implementing Public Act 100-328, which extends the tax credit program through 12/3/21. The rulemaking replaces the term “angel investment” (an investment in a qualified business venture in exchange for stock, or a partnership or ownership interest in the new venture, which is at risk of loss if the business fails) with “investment” and further defines a “contingent equity investment” as an investment that matures or converts to equity within 3 years. New criteria for qualifying business ventures include minimum Illinois employment thresholds of at least 51% of current employee positions and at least 75% of employee positions created following receipt of the investment. These thresholds must be maintained for at least 3 years after the last tax credit certificate is issued to anyone claiming the credit for investment in that business. To qualify for the credit, an investor must invest at least $10,000, but no more than $2 million, in any single qualified new business venture.

From the $10 million in Statewide program tax credits that may be claimed annually, $500,000 will be allocated to investments in ventures owned by minorities, women, or persons with disabilities and another $500,000 allocated to investments in ventures whose principal place of business is in a county with a population of 250,000 or less. Other provisions address risk mitigation measures that make investments ineligible for the credit; liquidity events; allocation and rollover of credits by calendar quarter; tracking and reporting procedures; noncompliance by a credit claimant or a qualified business; and the definition of full-time employee. Those affected by this rulemaking include prospective investors in small businesses that qualify for the program.