Legislative Update…

 The House and Senate have adjourned for a two week spring break and return for the remainder of the legislative session on Wednesday, April 17^th. Today was the deadline for passing bills out of their house of origin, and several bills of interest to our members have advanced, including:

SB 179  Amends the River Edge Redevelopment Zone Act to provide that the incremental income tax attributable to a new employee of an individual, partnership, corporation, or other entity that develops within certain specified river edge redevelopment zones will be deposited into the Riverfront Development Fund and that moneys in the Fund shall be used by the Department of Commerce and Economic Opportunity to make grants to eligible developers for infrastructure improvements.  

SB 410 Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, for levy years 2013 and later, the taxing district’s aggregate extension base is the greater of (A) the taxing district’s last preceding aggregate extension limit or (B) the taxing district’s last preceding aggregate extension, subject to adjustments for taxing districts in 2 or more counties, merged or consolidated taxing districts, and adjustments by a rate increase or decrease factor. Provides that the term “aggregate extension limit” means the district’s last preceding aggregate extension if the taxing district had utilized the maximum limiting rate permitted without referendum.

SB 2886 Amends the Illinois Income Tax Act. In a Section granting a credit for the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone, provides that taxpayers may sell, assign, convey, or otherwise transfer those credits.

SB 3212 A new Brownfield Remediation Credit: Amends the Illinois Income Tax Act. Provides that qualified taxpayers that undertake one or more eligible projects related to the remodeling, rehabilitation, modernization, or remediation of certain contaminated property may apply with the Department of Commerce and Economic Opportunity to obtain a tax credit against their income tax liability.  

SB 3241 Amends the Illinois Income Tax Act. Creates a credit for wages paid to qualified unemployed veterans. Provides that the credit is equal to 20%, but in no event to exceed $5,000, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran’s sustained employment during each taxable year ending on or after the date of hire by the taxpayer if the veteran was unemployed for an aggregate period of 4 weeks or more during the one-year period ending on the date he or she was hired by the taxpayer. Provides that the term “qualified veteran” means an Illinois resident who: (i) was a member of the Armed Forces of the United States, a member of the Illinois National Guard, or a member of any reserve component of the Armed Forces of the United States; (ii) served on active duty on or after September 11, 2001; (iii) has provided, to the taxpayer, documentation showing that he or she was honorably discharged; and (iv) was initially hired by the taxpayer on or after January 1, 2012.

SB 3507 A Department of Revenue initiative which amends the Illinois Income Tax Act to provide that unemployment benefits paid by the Illinois Department of Employment Security are allocable to this State. Effective July 1, 2012.

SB 3526 Amends the Illinois Income Tax Act. Provides that provisions of the Act concerning the apportionment of business income of a transportation company apply to (i) income derived by the transportation company from the movement of freight or passengers by air, land, or water, (ii) income derived by the transportation company from the movement of liquid or gaseous substances, and (iii) the provision of services related to those activities. Defines “transportation company”.

SB 3711 Amends the Corporate Accountability for Tax Expenditures Act to provide that the Department of Commerce and Economic Opportunity must post on its website (i) the identity of each recipient from whom amounts were recaptured, (ii) the amount recaptured, and (iii) the identity of each recipient receiving a waiver of the recapture provisions.

HB 3934 Amends the Economic Development for a Growing Economy Tax Credit Act to require the Department of Commerce and Economic Opportunity to post on its website the terms of each EDGE Agreement entered into under the Act on or after the effective date of the amendatory Act.  

HB 4314 Amends the Public Utilities Act to provide that a business entity that meets certain specifications shall be exempt from the additional charges added to the business enterprise’s utility bills as a pass-on of the municipal and State utility taxes if the business enterprise makes investments that cause the retention of a minimum of 300 full-time equivalent jobs in the manufacturing sector in an area in Illinois in which the unemployment rate is above 9% and makes an application to the Department within 3 months of a certain date and certifies relocation of the 300 full-time equivalent jobs within 48 months (rather than 36 months) after the application.

HB 4940 Amends the Counties Code. In a Section concerning school facility occupation taxes, provides that if a county board imposes a tax pursuant to a referendum held before August 23, 2011 at a rate below the rate set forth in the question approved by a majority of electors, then, notwithstanding the imposition of the tax by the county board at such rate, beginning on the following January 1 or July 1, as applicable, the tax shall be imposed at the rate set forth in the question approved by a majority of electors of that county. Sets forth procedures that authorize the county board to reduce or discontinue the tax under specified circumstances. Sets forth requirements concerning when the Illinois Department of Revenue shall administer and enforce the change in the rate of a tax to be used exclusively for school facility purposes.

HB 5289 A Department of Revenue initiative. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers’ Occupation Tax Act. In provisions setting forth criminal penalties for failure to file a return and for filing a fraudulent return, provides that: (i) when the amount due is under $300, the person is guilty of a Class 4 felony; (ii) when the amount due is at least $300 but less than $1,000, the person is guilty of a Class 3 felony; and (iii) when the amount due is at least $1,000, the person is guilty of a Class 2 felony. Creates the offense of tax evasion.

HB 5342 Amends the Corporate Accountability for Tax Expenditures Act. Requires the Department of Commerce and Economic Opportunity to post on its website (i) the identity of each recipient from whom amounts were recaptured under this Section on or after the effective date of this amendatory Act of the 97th General Assembly, (ii) the date of the recapture, (iii) a summary of the reasons supporting the recapture, and (iv) the amount recaptured (in the introduced bill, the Department is required to publish the identity of each recipient from whom amounts were recaptured, the amount recaptured, and the identity of each recipient receiving a waiver).

HB 5866 Another Department of Revenue bill initiative. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department may revoke a certificate of registration, permit, or license of an entity that is in default for moneys due to the Department. Amends the State Finance Act to provide that the Department of Revenue may maintain a petty cash fund not to exceed $2,000. Amends the Illinois Income Tax Act. Provides that payments received in taxable years ending on or after December 31, 2012 from the assignment of a prize under Section 13.1 of the Illinois Lottery Law are allocable to this State. Amends the Use Tax Act. Provides that retailers that do not possess a valid certificate of registration at the time the sale or sales are made upon which the discount is taken are not entitled to a vendor’s discount under the Act.