Bill Text: IL SB1923 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Amends the Illinois Enterprise Zone Act. Provides that businesses that intend to establish a new wind power facility in Illinois may be considered "high impact businesses" and qualify for certain occupation tax exemptions. Exempts businesses that intend to establish new wind power facilities from provisions of the Act requiring applicants for designation as high impact businesses to provide the Department with (i) the prospective plan for which 1,500 full-time jobs would be eliminated if the business is not designated and (ii) proof of alternative non-Illinois sites which would receive the proposed investment and job creation if the business is not designated, and from provisions of the Act concerning revocation of high impact business status. Requires payment of prevailing hourly wages.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Passed) 2009-06-30 - Public Act . . . . . . . . . 96-0028 [SB1923 Detail]

Download: Illinois-2009-SB1923-Enrolled.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Enterprise Zone Act is amended by
changing Section 5.5 as follows:
(20 ILCS 655/5.5) (from Ch. 67 1/2, par. 609.1)
Sec. 5.5. High Impact Business.
(a) In order to respond to unique opportunities to assist
in the encouragement, development, growth and expansion of the
private sector through large scale investment and development
projects, the Department is authorized to receive and approve
applications for the designation of "High Impact Businesses" in
Illinois subject to the following conditions:
(1) such applications may be submitted at any time
during the year;
(2) such business is not located, at the time of
designation, in an enterprise zone designated pursuant to
this Act;
(3) the business intends to do one or more of the
following:
(A) the business intends to make a minimum
investment of $12,000,000 which will be placed in
service in qualified property and intends to create 500

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full-time equivalent jobs at a designated location in
Illinois or intends to make a minimum investment of
$30,000,000 which will be placed in service in
qualified property and intends to retain 1,500
full-time jobs at a designated location in Illinois.
The business must certify in writing that the
investments would not be placed in service in qualified
property and the job creation or job retention would
not occur without the tax credits and exemptions set
forth in subsection (b) of this Section. The terms
"placed in service" and "qualified property" have the
same meanings as described in subsection (h) of Section
201 of the Illinois Income Tax Act; or
(B) the business intends to establish a new
electric generating facility at a designated location
in Illinois. "New electric generating facility", for
purposes of this Section, means a newly-constructed
electric generation plant or a newly-constructed
generation capacity expansion at an existing electric
generation plant, including the transmission lines and
associated equipment that transfers electricity from
points of supply to points of delivery, and for which
such new foundation construction commenced not sooner
than July 1, 2001. Such facility shall be designed to
provide baseload electric generation and shall operate
on a continuous basis throughout the year; and (i)

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shall have an aggregate rated generating capacity of at
least 1,000 megawatts for all new units at one site if
it uses natural gas as its primary fuel and foundation
construction of the facility is commenced on or before
December 31, 2004, or shall have an aggregate rated
generating capacity of at least 400 megawatts for all
new units at one site if it uses coal or gases derived
from coal as its primary fuel and shall support the
creation of at least 150 new Illinois coal mining jobs,
or (ii) shall be funded through a federal Department of
Energy grant before December 31, 2010 and shall support
the creation of Illinois coal-mining jobs, or (iii)
shall use coal gasification or integrated
gasification-combined cycle units that generate
electricity or chemicals, or both, and shall support
the creation of Illinois coal-mining jobs. The
business must certify in writing that the investments
necessary to establish a new electric generating
facility would not be placed in service and the job
creation in the case of a coal-fueled plant would not
occur without the tax credits and exemptions set forth
in subsection (b-5) of this Section. The term "placed
in service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(B-5) the business intends to establish a new

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gasification facility at a designated location in
Illinois. As used in this Section, "new gasification
facility" means a newly constructed coal gasification
facility that generates chemical feedstocks or
transportation fuels derived from coal (which may
include, but are not limited to, methane, methanol, and
nitrogen fertilizer), that supports the creation or
retention of Illinois coal-mining jobs, and that
qualifies for financial assistance from the Department
before December 31, 2010. A new gasification facility
does not include a pilot project located within
Jefferson County or within a county adjacent to
Jefferson County for synthetic natural gas from coal;
or
(C) the business intends to establish production
operations at a new coal mine, re-establish production
operations at a closed coal mine, or expand production
at an existing coal mine at a designated location in
Illinois not sooner than July 1, 2001; provided that
the production operations result in the creation of 150
new Illinois coal mining jobs as described in
subdivision (a)(3)(B) of this Section, and further
provided that the coal extracted from such mine is
utilized as the predominant source for a new electric
generating facility. The business must certify in
writing that the investments necessary to establish a

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new, expanded, or reopened coal mine would not be
placed in service and the job creation would not occur
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in
subsection (h) of Section 201 of the Illinois Income
Tax Act; or
(D) the business intends to construct new
transmission facilities or upgrade existing
transmission facilities at designated locations in
Illinois, for which construction commenced not sooner
than July 1, 2001. For the purposes of this Section,
"transmission facilities" means transmission lines
with a voltage rating of 115 kilovolts or above,
including associated equipment, that transfer
electricity from points of supply to points of delivery
and that transmit a majority of the electricity
generated by a new electric generating facility
designated as a High Impact Business in accordance with
this Section. The business must certify in writing that
the investments necessary to construct new
transmission facilities or upgrade existing
transmission facilities would not be placed in service
without the tax credits and exemptions set forth in
subsection (b-5) of this Section. The term "placed in
service" has the same meaning as described in

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subsection (h) of Section 201 of the Illinois Income
Tax Act; or and
(E) the business intends to establish a new wind
power facility at a designated location in Illinois.
For purposes of this Section, "new wind power facility"
means a newly constructed electric generation
facility, or a newly constructed expansion of an
existing electric generation facility, placed in
service on or after July 1, 2009, that generates
electricity using wind energy devices, and such
facility shall be deemed to include all associated
transmission lines, substations, and other equipment
related to the generation of electricity from wind
energy devices. For purposes of this Section, "wind
energy device" means any device, with a nameplate
capacity of at least 0.5 megawatts, that is used in the
process of converting kinetic energy from the wind to
generate electricity; and
(4) no later than 90 days after an application is
submitted, the Department shall notify the applicant of the
Department's determination of the qualification of the
proposed High Impact Business under this Section.
(b) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(A) of this Section shall qualify
for the credits and exemptions described in the following Acts:
Section 9-222 and Section 9-222.1A of the Public Utilities Act,

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subsection (h) of Section 201 of the Illinois Income Tax Act,
and Section 1d of the Retailers' Occupation Tax Act; provided
that these credits and exemptions described in these Acts shall
not be authorized until the minimum investments set forth in
subdivision (a)(3)(A) of this Section have been placed in
service in qualified properties and, in the case of the
exemptions described in the Public Utilities Act and Section 1d
of the Retailers' Occupation Tax Act, the minimum full-time
equivalent jobs or full-time jobs set forth in subdivision
(a)(3)(A) of this Section have been created or retained.
Businesses designated as High Impact Businesses under this
Section shall also qualify for the exemption described in
Section 5l of the Retailers' Occupation Tax Act. The credit
provided in subsection (h) of Section 201 of the Illinois
Income Tax Act shall be applicable to investments in qualified
property as set forth in subdivision (a)(3)(A) of this Section.
(b-5) Businesses designated as High Impact Businesses
pursuant to subdivisions (a)(3)(B), (a)(3)(B-5), (a)(3)(C),
and (a)(3)(D) of this Section shall qualify for the credits and
exemptions described in the following Acts: Section 51 of the
Retailers' Occupation Tax Act, Section 9-222 and Section
9-222.1A of the Public Utilities Act, and subsection (h) of
Section 201 of the Illinois Income Tax Act; however, the
credits and exemptions authorized under Section 9-222 and
Section 9-222.1A of the Public Utilities Act, and subsection
(h) of Section 201 of the Illinois Income Tax Act shall not be

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authorized until the new electric generating facility, the new
gasification facility, the new transmission facility, or the
new, expanded, or reopened coal mine is operational, except
that a new electric generating facility whose primary fuel
source is natural gas is eligible only for the exemption under
Section 5l of the Retailers' Occupation Tax Act.
(b-6) Businesses designated as High Impact Businesses
pursuant to subdivision (a)(3)(E) of this Section shall qualify
for the exemptions described in Section 5l of the Retailers'
Occupation Tax Act; any business so designated as a High Impact
Business being, for purposes of this Section, a "Wind Energy
Business".
(c) High Impact Businesses located in federally designated
foreign trade zones or sub-zones are also eligible for
additional credits, exemptions and deductions as described in
the following Acts: Section 9-221 and Section 9-222.1 of the
Public Utilities Act; and subsection (g) of Section 201, and
Section 203 of the Illinois Income Tax Act.
(d) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, existing Existing Illinois
businesses which apply for designation as a High Impact
Business must provide the Department with the prospective plan
for which 1,500 full-time jobs would be eliminated in the event
that the business is not designated.
(e) Except for new wind power facilities contemplated under
subdivision (a)(3)(E) of this Section, new New proposed

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facilities which apply for designation as High Impact Business
must provide the Department with proof of alternative
non-Illinois sites which would receive the proposed investment
and job creation in the event that the business is not
designated as a High Impact Business.
(f) Except for businesses contemplated under subdivision
(a)(3)(E) of this Section, in In the event that a business is
designated a High Impact Business and it is later determined
after reasonable notice and an opportunity for a hearing as
provided under the Illinois Administrative Procedure Act, that
the business would have placed in service in qualified property
the investments and created or retained the requisite number of
jobs without the benefits of the High Impact Business
designation, the Department shall be required to immediately
revoke the designation and notify the Director of the
Department of Revenue who shall begin proceedings to recover
all wrongfully exempted State taxes with interest. The business
shall also be ineligible for all State funded Department
programs for a period of 10 years.
(g) The Department shall revoke a High Impact Business
designation if the participating business fails to comply with
the terms and conditions of the designation. However, the
penalties for new wind power facilities or Wind Energy
Businesses for failure to comply with any of the terms or
conditions of the Illinois Prevailing Wage Act shall be only
those penalties identified in the Illinois Prevailing Wage Act,

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and the Department shall not revoke a High Impact Business
designation as a result of the failure to comply with any of
the terms or conditions of the Illinois Prevailing Wage Act in
relation to a new wind power facility or a Wind Energy
Business.
(h) Prior to designating a business, the Department shall
provide the members of the General Assembly and Commission on
Government Forecasting and Accountability with a report
setting forth the terms and conditions of the designation and
guarantees that have been received by the Department in
relation to the proposed business being designated.
(Source: P.A. 94-65, eff. 6-21-05; 95-18, eff. 7-30-07.)
Section 10. The Prevailing Wage Act is amended by changing
Section 2 as follows:
(820 ILCS 130/2) (from Ch. 48, par. 39s-2)
Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed by any

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public body, other than work done directly by any public
utility company, whether or not done under public supervision
or direction, or paid for wholly or in part out of public
funds. "Public works" as defined herein includes all projects
financed in whole or in part with bonds issued under the
Industrial Project Revenue Bond Act (Article 11, Division 74 of
the Illinois Municipal Code), the Industrial Building Revenue
Bond Act, the Illinois Finance Authority Act, the Illinois
Sports Facilities Authority Act, or the Build Illinois Bond
Act, and all projects financed in whole or in part with loans
or other funds made available pursuant to the Build Illinois
Act. "Public works" also includes all projects financed in
whole or in part with funds from the Fund for Illinois' Future
under Section 6z-47 of the State Finance Act, funds for school
construction under Section 5 of the General Obligation Bond
Act, funds authorized under Section 3 of the School
Construction Bond Act, funds for school infrastructure under
Section 6z-45 of the State Finance Act, and funds for
transportation purposes under Section 4 of the General
Obligation Bond Act. "Public works" also includes all projects
financed in whole or in part with funds from the Department of
Commerce and Economic Opportunity under the Illinois Renewable
Fuels Development Program Act for which there is no project
labor agreement. "Public works" also includes all projects at
leased facility property used for airport purposes under
Section 35 of the Local Government Facility Lease Act. "Public

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works" also includes the construction of a new wind power
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
"Construction" means all work on public works involving
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the public
works efficiently and properly, "locality" includes any other
county nearest the one in which the work or construction is to
be performed and from which such persons may be obtained in
sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or in
part by public funds, and includes every county, city, town,
village, township, school district, irrigation, utility,
reclamation improvement or other district and every other

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political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
fringe benefits for training and apprenticeship programs
approved by the U.S. Department of Labor, Bureau of
Apprenticeship and Training, health and welfare, insurance,
vacations and pensions paid generally, in the locality in which
the work is being performed, to employees engaged in work of a
similar character on public works.
(Source: P.A. 94-750, eff. 5-9-06; 95-341, eff. 8-21-07.)
Section 99. Effective date. This Act takes effect July 1,
2009.