summary
Introduced
02/04/2025
02/04/2025
In Committee
02/04/2025
02/04/2025
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 establishes a comprehensive framework for creating tax incentives and property assessment freezes for large-scale economic development projects, called "megaprojects," in Illinois. The bill defines a megaproject as an economic development initiative requiring a minimum investment of $100 million and creating at least 100 new full-time jobs. Companies seeking to develop a megaproject can receive several key benefits, including a property tax assessment freeze for up to 23 years (potentially extendable to 40 years), exemptions from state and local use taxes and retailers' occupation taxes on building materials, and the ability to make special payments to local taxing districts instead of full property taxes. To qualify, companies must enter into an incentive agreement with local municipalities, establish a project labor agreement with local building trades councils, commit to awarding 20% of project contracts to minority-owned businesses, and maintain the project's operations at the designated location for a minimum of 20 years. The bill also includes detailed provisions for application, certification, reporting, and potential revocation of these incentives, ensuring accountability and transparency in the economic development process. Importantly, projects located in Tax Increment Financing (TIF) districts are not eligible for these benefits, and companies cannot satisfy job creation requirements by simply relocating existing jobs within Illinois.
Sponsors (1)
Last Action
Referred to Assignments (on 02/04/2025)
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=1514&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1514.htm |
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