summary
Introduced
01/31/2025
01/31/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.
AI Summary
This bill creates a comprehensive framework for providing tax incentives and assessment freezes for large-scale economic development projects, called "megaprojects," in Illinois. Under the legislation, companies can qualify for significant tax benefits if they make a minimum investment of $100 million and create at least 100 new full-time jobs within the state. The bill allows companies to receive an assessment freeze on property taxes, meaning the taxable value of the property will remain at its base year valuation for up to 23 years, with the potential for a 17-year extension. Companies must enter into an incentive agreement with local municipalities and taxing districts, agreeing to make special annual payments in addition to property taxes. To be eligible, companies must also commit to a project labor agreement with local building trades councils and establish a goal of awarding 20% of project-related contracts to minority-owned businesses. The bill applies to various types of economic development projects, excluding sports stadiums (which require additional legislative approval), and projects located in Tax Increment Financing (TIF) districts. The legislation aims to attract large-scale investments and job creation by offering substantial tax incentives while also promoting local workforce development and minority business participation.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2403&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2403.htm |
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