§ 110-45 — Contents of agreements with applicants

(a) The Department shall enter into an agreement with an applicant that is awarded a credit under this Act. The agreement shall include all of the following: (1) A detailed description of the project that is the subject of the agreement, including the location and amount of the investment and jobs created or retained. (2) The duration of the credit, the first taxable year for which the credit may be awarded, and the first taxable year in which the credit may be used by the taxpayer. (3) The credit amount that will be allowed for each taxable year. (4) For a project qualified under paragraphs (1), (2), or (4) of subsection (c) of Section 110-20, a requirement that the taxpayer shall maintain operations at the project location a minimum number of years not to exceed 15. For project qualified under paragraph (3) of subsection (c) of Section 110-20, a requirement that the taxpayer shall maintain operations at the project location a minimum number of years not to exceed 10. (5) A specific method for determining the number of new employees and, if applicable, retained employees, employed during a taxable year. (6) A requirement that the taxpayer shall annually report to the Department the number of new employees, the incremental income tax withheld in connection with the new employees, and any other information the Department deems necessary and appropriate to perform its duties under this Act. (7) A requirement that the Director is authorized to verify with the appropriate State agencies the amounts reported under paragraph (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified. (8) A requirement that the taxpayer shall provide written notification to the Director not more than 30 days after the taxpayer makes or receives a proposal that would transfer the taxpayer's State tax liability obligations to a successor taxpayer. (9) A detailed description of the number of new employees to be hired, and the occupation and payroll of full-time jobs to be created or retained because of the project. (10) The minimum investment the taxpayer will make in capital improvements, the time period for placing the property in service, and the designated location in Illinois for the investment. (11) A requirement that the taxpayer shall provide written notification to the Director and the Director's designee not more than 30 days after the taxpayer determines that the minimum job creation or retention, employment payroll, or investment no longer is or will be achieved or maintained as set forth in the terms and conditions of the agreement. Additionally, the notification should outline to the Department the number of layoffs, date of the layoffs, and detail taxpayer's efforts to provide career and training counseling for the impacted workers with industry-related certifications and trainings. (12) A provision that, if the total number of new employees falls below a specified level, the allowance of credit shall be suspended until the number of new employees equals or exceeds the agreement amount. (13) If applicable, a provision that specifies the statewide baseline at the time of application for retained employees. Additionally, the agreement must have a provision addressing if the total number retained employees falls below the statewide baseline, the allowance of the credit shall be suspended until the number of retained employees equals or exceeds the agreement amount. (14) A detailed description of the items for which the costs incurred by the taxpayer will be included in the limitation on the credit. (15) A provision stating that if the taxpayer fails to meet either the investment or job creation and retention requirements specified in the agreement during the entire 5-year period beginning on the first day of the first taxable year in which the agreement is executed and ending on the last day of the fifth taxable year after the agreement is executed, then the agreement is automatically terminated on the last day of the fifth taxable year after the agreement is executed, and the taxpayer is not entitled to the award of any credits for any of that 5-year period. (16) A provision stating that if the taxpayer ceases principal operations with the intent to permanently shut down the project in the State during the term of the agreement, then the entire credit amount awarded to the taxpayer prior to the date the taxpayer ceases principal operations shall be returned to the Department and shall be reallocated to the local workforce investment area in which the project was located. (17) A provision stating that the taxpayer must provide the reports outlined in Sections 110-50 and 110-55 on or before April 15 each year. (18) A provision requiring the taxpayer to report annually its contractual obligations or otherwise with a recycling facility for its operations. (19) Any other performance conditions or contract provisions the Department determines are necessary or appropriate. (20) Each taxpayer under paragraph (1) of subsection (c) of Section 110-20 above shall maintain labor neutrality toward any union organizing campaign for any employees of the taxpayer assigned to work on the premises of the project. This paragraph shall not apply to a manufacturer who is subject to collective bargaining agreement entered into prior to the taxpayer filing an application pursuant to this Act. (b) The Department shall post on its website the terms of each agreement entered into under this Act. Such information shall be posted within 10 days after entering into the agreement and must include the following: (1) the name of the taxpayer; (2) the location of the project; (3) the estimated value of the credit; (4) the number of new employee jobs and, if applicable, number of retained employee jobs at the project; and (5) whether or not the project is in an underserved area or energy transition area.

Legislative History

(Source: P.A. 102-700, eff. 4-19-22.)