Reimagining Electric Vehicles in Illinois Act.

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(20 ILCS 686/1)

Sec. 1. Short title. This Act may be cited as the Reimagining Electric Vehicles in Illinois Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/5)

Sec. 5. Purpose. It is the intent of the General Assembly that Illinois should lead the nation in the production of electric vehicles. The General Assembly finds that, through investments in electric vehicle manufacturing, Illinois will be on the forefront of emerging technologies that are currently transforming the auto manufacturing industry. This Act will reduce carbon emissions, create good paying jobs, and generate long-term economic investment in the Illinois business economy. Illinois must aggressively adopt new business development investment tools so that Illinois is more competitive in site location decision-making for manufacturing facilities directly related to the electric vehicle industry. Illinois' long-term development benefits from rational, strategic use of State resources in support of development and growth in the electric vehicle industry.

The General Assembly finds that workers are essential to the prosperity of our State's economy and play a critical role in Illinois becoming leader in manufacturing. The General Assembly further finds that, for the prosperity of our State, workers in this industry must be afforded high quality jobs that honor the dignity of work. Therefore, the General Assembly finds that it is in the best interest of Illinois to protect the work conditions, worker safety, and worker rights in the manufacturing industry and further finds that employer workplace policies shall be interpreted broadly to protect employees.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/10)

Sec. 10. Definitions. As used in this Act:

"Agreement" means the agreement between a taxpayer and the Department under the provisions of Section 45 of this Act.

"Applicant" means a taxpayer that (i) operates a business in Illinois or is planning to locate a business within the State of Illinois and (ii) is engaged in interstate or intrastate commerce for the purpose of manufacturing electric vehicles, electric vehicle component parts, or electric vehicle power supply equipment. "Applicant" does not include a taxpayer who closes or substantially reduces by more than 50% operations at one location in the State and relocates substantially the same operation to another location in the State. This does not prohibit a Taxpayer from expanding its operations at another location in the State. This also does not prohibit a Taxpayer from moving its operations from one location in the State to another location in the State for the purpose of expanding the operation, provided that the Department determines that expansion cannot reasonably be accommodated within the municipality or county in which the business is located, or, in the case of a business located in an incorporated area of the county, within the county in which the business is located, after conferring with the chief elected official of the municipality or county and taking into consideration any evidence offered by the municipality or county regarding the ability to accommodate expansion within the municipality or county.

"Capital improvements" means the purchase, renovation, rehabilitation, or construction of permanent tangible land, buildings, structures, equipment, and furnishings in an approved project sited in Illinois and expenditures for goods or services that are normally capitalized, including organizational costs and research and development costs incurred in Illinois. For land, buildings, structures, and equipment that are leased, the lease must equal or exceed the term of the agreement, and the cost of the property shall be determined from the present value, using the corporate interest rate prevailing at the time of the application, of the lease payments.

"Credit" means either a "REV Illinois Credit" or a "REV Construction Jobs Credit" agreed to between the Department and applicant under this Act.

"Department" means the Department of Commerce and Economic Opportunity.

"Director" means the Director of Commerce and Economic Opportunity.

"Electric vehicle" means a vehicle that is exclusively powered by and refueled by electricity, must be plugged in to charge or utilize a pre-charged battery, and is permitted to operate on public roadways. "Electric vehicle" does not include hybrid electric vehicles and extended-range electric vehicles that are also equipped with conventional fueled propulsion or auxiliary engines.

"Electric vehicle manufacturer" means a new or existing manufacturer that is focused on reequipping, expanding, or establishing a manufacturing facility in Illinois that produces electric vehicles as defined in this Section.

"Electric vehicle component parts manufacturer" means a new or existing manufacturer that is primarily focused on reequipping, expanding, or establishing a manufacturing facility in Illinois that produces key components that directly support the electric functions of electric vehicles, as defined by this Section.

"Electric vehicle power supply equipment" means the equipment used specifically for the purpose of delivering electricity to an electric vehicle.

"Electric vehicle power supply manufacturer" means a new or existing manufacturer that is focused on reequipping, expanding, or establishing a manufacturing facility in Illinois that produces electric vehicle power supply equipment used for the purpose of delivering electricity to an electric vehicle.

"Energy Transition Area" means a county with less than 100,000 people or a municipality that contains one or more of the following:

  • (1) a fossil fuel plant that was retired from service or has significant reduced service within 6 years before the time of the application or will be retired or have service significantly reduced within 6 years following the time of the application; or
  • (2) a coal mine that was closed or had operations significantly reduced within 6 years before the time of the application or is anticipated to be closed or have operations significantly reduced within 6 years following the time of the application.

"Full-time employee" means an individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. An individual for whom a W-2 is issued by a Professional Employer Organization (PEO) is a full-time employee if employed in the service of the applicant for consideration for at least 35 hours each week.

"Incremental income tax" means the total amount withheld during the taxable year from the compensation of new employees and, if applicable, retained employees under Article 7 of the Illinois Income Tax Act arising from employment at a project that is the subject of an agreement.

"Institution of higher education" or "institution" means any accredited public or private university, college, community college, business, technical, or vocational school, or other accredited educational institution offering degrees and instruction beyond the secondary school level.

"Minority person" means a minority person as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"New employee" means a newly-hired full-time employee employed to work at the project site and whose work is directly related to the project.

"Noncompliance date" means, in the case of a taxpayer that is not complying with the requirements of the agreement or the provisions of this Act, the day following the last date upon which the taxpayer was in compliance with the requirements of the agreement and the provisions of this Act, as determined by the Director, pursuant to Section 70.

"Pass-through entity" means an entity that is exempt from the tax under subsection (b) or (c) of Section 205 of the Illinois Income Tax Act.

"Placed in service" means the state or condition of readiness, availability for a specifically assigned function, and the facility is constructed and ready to conduct its facility operations to manufacture goods.

"Professional employer organization" (PEO) means an employee leasing company, as defined in Section 206.1 of the Illinois Unemployment Insurance Act.

"Program" means the Reimagining Electric Vehicles in Illinois Program (the REV Illinois Program) established in this Act.

"Project" or "REV Illinois Project" means a for-profit economic development activity for the manufacture of electric vehicles, electric vehicle component parts, or electric vehicle power supply equipment which is designated by the Department as a REV Illinois Project and is the subject of an agreement.

"Recycling facility" means a location at which the taxpayer disposes of batteries and other component parts in manufacturing of electric vehicles, electric vehicle component parts, or electric vehicle power supply equipment.

"Related member" means a person that, with respect to the taxpayer during any portion of the taxable year, is any one of the following:

  • (1) An individual stockholder, if the stockholder and the members of the stockholder's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the taxpayer's outstanding stock.
  • (2) A partnership, estate, trust and any partner or beneficiary, if the partnership, estate, or trust, and its partners or beneficiaries own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the profits, capital, stock, or value of the taxpayer.
  • (3) A corporation, and any party related to the corporation in a manner that would require an attribution of stock from the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the Taxpayer owns directly, indirectly, beneficially, or constructively at least 50% of the value of the corporation's outstanding stock.
  • (4) A corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own in the aggregate at least 50% of the profits, capital, stock, or value of the taxpayer.
  • (5) A person to or from whom there is an attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except, for purposes of determining whether a person is a related member under this paragraph, 20% shall be substituted for 5% wherever 5% appears in Section 1563(e) of the Internal Revenue Code.

"Retained employee" means a full-time employee employed by the taxpayer prior to the term of the Agreement who continues to be employed during the term of the agreement whose job duties are directly and substantially related to the project. For purposes of this definition, "directly and substantially related to the project" means at least two-thirds of the employee's job duties must be directly related to the project and the employee must devote at least two-thirds of his or her time to the project. The term "retained employee" does not include any individual who has a direct or an indirect ownership interest of at least 5% in the profits, equity, capital, or value of the taxpayer or a child, grandchild, parent, or spouse, other than a spouse who is legally separated from the individual, of any individual who has a direct or indirect ownership of at least 5% in the profits, equity, capital, or value of the taxpayer.

"REV Illinois credit" means a credit agreed to between the Department and the applicant under this Act that is based on the incremental income tax attributable to new employees and, if applicable, retained employees, and on training costs for such employees at the applicant's project.

"REV construction jobs credit" means a credit agreed to between the Department and the applicant under this Act that is based on the incremental income tax attributable to construction wages paid in connection with construction of the project facilities.

"Statewide baseline" means the total number of full-time employees of the applicant and any related member employed by such entities at the time of application for incentives under this Act.

"Taxpayer" means an individual, corporation, partnership, or other entity that has a legal obligation to pay Illinois income taxes and file an Illinois income tax return.

"Training costs" means costs incurred to upgrade the technological skills of full-time employees in Illinois and includes: curriculum development; training materials (including scrap product costs); trainee domestic travel expenses; instructor costs (including wages, fringe benefits, tuition and domestic travel expenses); rent, purchase or lease of training equipment; and other usual and customary training costs. "Training costs" do not include costs associated with travel outside the United States (unless the Taxpayer receives prior written approval for the travel by the Director based on a showing of substantial need or other proof the training is not reasonably available within the United States), wages and fringe benefits of employees during periods of training, or administrative cost related to full-time employees of the taxpayer.

"Underserved area" means any geographic areas as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/15)

Sec. 15. Powers of the Department. The Department, in addition to those powers granted under the Civil Administrative Code of Illinois, is granted and shall have all the powers necessary or convenient to administer the program under this Act and to carry out and effectuate the purposes and provisions of this Act, including, but not limited to, the power and authority to:

  • (1) adopt rules deemed necessary and appropriate for the administration of the REV Illinois Program, the designation of REV Illinois Projects, and the awarding of credits;
  • (2) establish forms for applications, notifications, contracts, or any other agreements and accept applications at any time during the year;
  • (3) assist taxpayers pursuant to the provisions of this Act and cooperate with taxpayers that are parties to agreements under this Act to promote, foster, and support economic development, capital investment, and job creation or retention within the State;
  • (4) enter into agreements and memoranda of understanding for participation of, and engage in cooperation with, agencies of the federal government, units of local government, universities, research foundations or institutions, regional economic development corporations, or other organizations to implement the requirements and purposes of this Act;
  • (5) gather information and conduct inquiries, in the manner and by the methods it deems desirable, including without limitation, gathering information with respect to applicants for the purpose of making any designations or certifications necessary or desirable or to gather information to assist the Department with any recommendation or guidance in the furtherance of the purposes of this Act;
  • (6) establish, negotiate and effectuate agreements and any term, agreement, or other document with any person, necessary or appropriate to accomplish the purposes of this Act; and to consent, subject to the provisions of any agreement with another party, to the modification or restructuring of any agreement to which the Department is a party;
  • (7) fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses from applicants, including, without limitation, any application fees, commitment fees, program fees, financing charges, or publication fees as deemed appropriate to pay expenses necessary or incident to the administration, staffing, or operation in connection with the Department's activities under this Act, or for preparation, implementation, and enforcement of the terms of the agreement, or for consultation, advisory and legal fees, and other costs; however, all fees and expenses incident thereto shall be the responsibility of the applicant;
  • (8) provide for sufficient personnel to permit administration, staffing, operation, and related support required to adequately discharge its duties and responsibilities described in this Act from funds made available through charges to applicants or from funds as may be appropriated by the General Assembly for the administration of this Act;
  • (9) require applicants, upon written request, to issue any necessary authorization to the appropriate federal, State, or local authority for the release of information concerning a project being considered under the provisions of this Act, with the information requested to include, but not be limited to, financial reports, returns, or records relating to the taxpayer or its project;
  • (10) require that a taxpayer shall at all times keep proper books of record and account in accordance with generally accepted accounting principles consistently applied, with the books, records, or papers related to the agreement in the custody or control of the taxpayer open for reasonable Department inspection and audits, and including, without limitation, the making of copies of the books, records, or papers, and the inspection or appraisal of any of the taxpayer or project assets;
  • (11) take whatever actions are necessary or appropriate to protect the State's interest in the event of bankruptcy, default, foreclosure, or noncompliance with the terms and conditions of financial assistance or participation required under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions determined by the Director to be appropriate, real or personal property that the Department may receive as a result of these actions.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/20)

Sec. 20. REV Illinois Program; project applications.

(a) The Reimagining Electric Vehicles in Illinois (REV Illinois) Program is hereby established and shall be administered by the Department. The Program will provide financial incentives to eligible manufacturers of electric vehicles, electric vehicle component parts, and electric vehicle power supply equipment.

(b) Any taxpayer planning a project to be located in Illinois may request consideration for designation of its project as a REV Illinois Project, by formal written letter of request or by formal application to the Department, in which the applicant states its intent to make at least a specified level of investment and intends to hire a specified number of full-time employees at a designated location in Illinois. As circumstances require, the Department shall require a formal application from an applicant and a formal letter of request for assistance.

(c) In order to qualify for credits under the REV Illinois Program, an Applicant must:

  • (1) for an electric vehicle manufacturer:
    • (A) make an investment of at least $1,500,000,000 in capital improvements at the project site;
    • (B) to be placed in service within the State within a 60-month period after approval of the application; and
    • (C) create at least 500 new full-time employee jobs; or
  • (2) for an electric vehicle component parts manufacturer:
    • (A) make an investment of at least $300,000,000 in capital improvements at the project site;
    • (B) manufacture one or more parts that are primarily used for electric vehicle manufacturing;
    • (C) to be placed in service within the State within a 60-month period after approval of the application; and
    • (D) create at least 150 new full-time employee jobs; or
  • (3) for an electric vehicle manufacturer, electric vehicle power supply equipment Manufacturer, or electric vehicle component part manufacturer that does not quality under paragraph (2) above:
    • (A) make an investment of at least $20,000,000 in capital improvements at the project site;
    • (B) for electric vehicle component part manufacturers, manufacture one or more parts that are primarily used for electric vehicle manufacturing;
    • (C) to be placed in service within the State within a 48-month period after approval of the application; and
    • (D) create at least 50 new full-time employee jobs; or
  • (4) for an electric vehicle manufacturer or electric vehicle component parts manufacturer with existing operations within Illinois that intends to convert or expand, in whole or in part, the existing facility from traditional manufacturing to electric vehicle manufacturing, electric vehicle component parts manufacturing, or electric vehicle power supply equipment manufacturing:
    • (A) make an investment of at least $100,000,000 in capital improvements at the project site;
    • (B) to be placed in service within the State within a 60-month period after approval of the application; and
    • (C) create the lesser of 75 new full-time employee jobs or new full-time employee jobs equivalent to 10% of the Statewide baseline applicable to the taxpayer and any related member at the time of application.

(d) For any applicant creating the full-time employee jobs noted in subsection (c), those jobs must have a total compensation equal to or greater than 120% of the average wage paid to full-time employees in the county where the project is located, as determined by the U.S. Bureau of Labor Statistics.

(e) For any applicant, within 24 months after being placed in service, it must certify to the Department that it is carbon neutral or has attained certification under one of more of the following green building standards:

  • (1) BREEAM for New Construction or BREEAM In-Use;
  • (2) ENERGY STAR;
  • (3) Envision;
  • (4) ISO 50001 - energy management;
  • (5) LEED for Building Design and Construction or LEED for Building Operations and Maintenance;
  • (6) Green Globes for New Construction or Green Globes for Existing Buildings; or
  • (7) UL 3223.

(f) Each applicant must outline its hiring plan and commitment to recruit and hire full-time employee positions at the project site. The hiring plan may include a partnership with an institution of higher education to provide internships, including, but not limited to, internships supported by the Clean Jobs Workforce Network Program, or full-time permanent employment for students at the project site. Additionally, the applicant may create or utilize participants from apprenticeship programs that are approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training. The Applicant may apply for apprenticeship education expense credits in accordance with the provisions set forth in 14 Ill. Admin. Code 522. Each applicant is required to report annually, on or before April 15, on the diversity of its workforce in accordance with Section 50 of this Act. For existing facilities of applicants under paragraph (3) of subsection (b) above, if the taxpayer expects a reduction in force due to its transition to manufacturing electric vehicle, electric vehicle component parts, or electric vehicle power supply equipment, the plan submitted under this Section must outline the taxpayer's plan to assist with retraining its workforce aligned with the taxpayer's adoption of new technologies and anticipated efforts to retrain employees through employment opportunities within the taxpayer's workforce.

(g) Each applicant must demonstrate a contractual or other relationship with a recycling facility, or demonstrate its own recycling capabilities, at the time of application and report annually a continuing contractual or other relationship with a recycling facility and the percentage of batteries used in electric vehicles recycled throughout the term of the agreement.

(h) A taxpayer may not enter into more than one agreement under this Act with respect to a single address or location for the same period of time. Also, a taxpayer may not enter into an agreement under this Act with respect to a single address or location for the same period of time for which the taxpayer currently holds an active agreement under the Economic Development for a Growing Economy Tax Credit Act. This provision does not preclude the applicant from entering into an additional agreement after the expiration or voluntary termination of an earlier agreement under this Act or under the Economic Development for a Growing Economy Tax Credit Act to the extent that the taxpayer's application otherwise satisfies the terms and conditions of this Act and is approved by the Department. An applicant with an existing agreement under the Economic Development for a Growing Economy Tax Credit Act may submit an application for an agreement under this Act after it terminates any existing agreement under the Economic Development for a Growing Economy Tax Credit Act with respect to the same address or location.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/25)

Sec. 25. Review of application. The Department shall determine which projects will benefit the State. In making its recommendation that an applicant's application for credit should or should not be accepted, which shall occur within a reasonable time frame as determined by the nature of the application, the Department shall determine that all the following conditions exist:

  • (1) the applicant intends to make the required investment in the State and intends to hire the required number of full-time employees;
  • (2) the applicant's project is economically sound, will benefit the people of the State by increasing opportunities for employment, and will strengthen the economy of the State;
  • (3) awarding the credit will result in an overall positive fiscal impact to the State, as certified by the Department using the best available data; and
  • (4) the credit is not prohibited under this Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/30)

Sec. 30. Tax credit awards.

(a) Subject to the conditions set forth in this Act, a taxpayer is entitled to a credit against the tax imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for a taxable year beginning on or after January 1, 2025 if the taxpayer is awarded a credit by the Department in accordance with an agreement under this Act. The Department has authority to award credits under this Act on and after January 1, 2022.

(b) REV Illinois Credits. A taxpayer may receive a tax credit against the tax imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, not to exceed the sum of (i) 75% of the incremental income tax attributable to new employees at the applicant's project and (ii) 10% of the training costs of the new employees. If the project is located in an underserved area or an energy transition area, then the amount of the credit may not exceed the sum of (i) 100% of the incremental income tax attributable to new employees at the applicant's project; and (ii) 10% of the training costs of the new employees. The percentage of training costs includable in the calculation may be increased by an additional 15% for training costs associated with new employees that are recent (2 years or less) graduates, certificate holders, or credential recipients from an institution of higher education in Illinois, or, if the training is provided by an institution of higher education in Illinois, the Clean Jobs Workforce Network Program, or an apprenticeship and training program located in Illinois and approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training. An applicant is also eligible for a training credit that shall not exceed 10% of the training costs of retained employees for the purpose of upskilling to meet the operational needs of the applicant or the REV Illinois Project. The percentage of training costs includable in the calculation shall not exceed a total of 25%. If an applicant agrees to hire the required number of new employees, then the maximum amount of the credit for that applicant may be increased by an amount not to exceed 25% of the incremental income tax attributable to retained employees at the applicant's project; provided that, in order to receive the increase for retained employees, the applicant must, if applicable, meet or exceed the statewide baseline. If the Project is in an underserved area or an energy transition area, the maximum amount of the credit attributable to retained employees for the applicant may be increased to an amount not to exceed 50% of the incremental income tax attributable to retained employees at the applicant's project; provided that, in order to receive the increase for retained employees, the applicant must meet or exceed the statewide baseline. REV Illinois Credits awarded may include credit earned for incremental income tax withheld and training costs incurred by the taxpayer beginning on or after January 1, 2022. Credits so earned and certified by the Department may be applied against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for taxable years beginning on or after January 1, 2025.

(c) REV Construction Jobs Credit. For construction wages associated with a project that qualified for a REV Illinois Credit under subsection (b), the taxpayer may receive a tax credit against the tax imposed under subsections (a) and (b) of Section 201 of the Illinois Income Tax Act in an amount equal to 50% of the incremental income tax attributable to construction wages paid in connection with construction of the project facilities, as a jobs credit for workers hired to construct the project.

The REV Construction Jobs Credit may not exceed 75% of the amount of the incremental income tax attributable to construction wages paid in connection with construction of the project facilities if the project is in an underserved area or an energy transition area.

(d) The Department shall certify to the Department of Revenue: (1) the identity of Taxpayers that are eligible for the REV Illinois Credit and REV Construction Jobs Credit; (2) the amount of the REV Illinois Credits and REV Construction Jobs Credits awarded in each calendar year; and (3) the amount of the REV Illinois Credit and REV Construction Jobs Credit claimed in each calendar year. REV Illinois Credits awarded may include credit earned for Incremental Income Tax withheld and Training Costs incurred by the Taxpayer beginning on or after January 1, 2022. Credits so earned and certified by the Department may be applied against the tax imposed by Section 201(a) and (b) of the Illinois Income Tax Act for taxable years beginning on or after January 1, 2025.

(e) Applicants seeking certification for a tax credits related to the construction of the project facilities in the State shall require the contractor to enter into a project labor agreement that conforms with the Project Labor Agreements Act.

(f) Any applicant issued a certificate for a tax credit or tax exemption under this Act must annually report to the Department the total project tax benefits received. Reports are due no later than May 31 of each year and shall cover the previous calendar year. The first report is for the 2022 calendar year and is due no later than May 31, 2023.

(g) Nothing in this Act shall prohibit an award of credit to an applicant that uses a PEO if all other award criteria are satisfied.

(h) With respect to any portion of a REV Illinois Credit that is based on the incremental income tax attributable to new employees or retained employees, in lieu of the Credit allowed under this Act against the taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, a taxpayer that otherwise meets the criteria set forth in this Section, the taxpayer may elect to claim the credit, on or after January 1, 2025, against its obligation to pay over withholding under Section 704A of the Illinois Income Tax Act. The election shall be made in the manner prescribed by the Department of Revenue and once made shall be irrevocable.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/35)

Sec. 35. Relocation of jobs in Illinois. A taxpayer is not entitled to claim a credit provided by this Act with respect to any jobs that the Taxpayer relocates from one site in Illinois to another site in Illinois. Any full-time employee relocated to Illinois in connection with a qualifying project is deemed to be a new employee for purposes of this Act. Determinations under this Section shall be made by the Department.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/40)

Sec. 40. Amount and duration of the credits; limitation to amount of costs of specified items. The Department shall determine the amount and duration of the REV Illinois Credit awarded under this Act, subject to the limitations set forth in this Act. For a project that qualified under paragraph (1), (2), or (4) of subsection (c) of Section 20, the duration of the credit may not exceed 15 taxable years. For project that qualified under paragraph (3) of subsection (c) of Section 20, the duration of the credit may not exceed 10 taxable years. The credit may be stated as a percentage of the incremental income tax and training costs attributable to the applicant's project and may include a fixed dollar limitation.

Nothing in this Section shall prevent the Department, in consultation with the Department of Revenue, from adopting rules to extend the sunset of any earned, existing, and unused tax credit or credits a taxpayer may be in possession of, as provided for in Section 605-1055 of the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois, notwithstanding the carry-forward provisions pursuant to paragraph (4) of Section 211 of the Illinois Income Tax Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/45)

Sec. 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 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 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 provided in Section 40.
  • (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 50 and 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 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 REV Illinois Project Site. This paragraph shall not apply to an electric vehicle manufacturer, electric vehicle component part manufacturer, electric vehicle power supply manufacturer or any joint venture including an electric vehicle manufacturer, electric vehicle component part manufacturer, and electric vehicle power supply 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.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/50)

Sec. 50. Diversity report on the taxpayer's workforce, board of directors, and vendors.

(a) Each taxpayer with a workforce of 100 or more employees and with an agreement for a REV Illinois project under this Act shall, starting on April 15, 2025, and every year thereafter prior to April 15, for which the Taxpayer has an Agreement under this Act, submit to the Department an annual report detailing the diversity of the taxpayer's own workforce, including full-time and part-time employees, contractors, and board of directors' membership. Any taxpayer seeking to claim a credit under this Act that fails to timely submit the required report shall not receive a credit for that taxable year unless and until such report is finalized and submitted to the Department. The report should also address the Taxpayer's best efforts to meet or exceed the recruitment and hiring plan outlined in the application referenced in Section 20. Those reports shall be submitted in the form and manner required by the Department.

(b) Vendor diversity and annual report. Each taxpayer with a workforce of 100 or more full-time employees shall, starting on April 15, 2025 and every year thereafter for which the taxpayer has an Agreement under this Act, report on the diversity of the vendors that it utilizes, for publication on the Department's website, and include the following information:

  • (1) a point of contact for potential vendors to register with the taxpayer's REV Illinois Project;
  • (2) certifications that the taxpayer accepts or recognizes for minority and women-owned businesses as entities;
  • (3) the taxpayers goals to contract with diverse vendors, if any, for the next fiscal year for the entire budget of the Taxpayer's REV Illinois Project;
  • (4) for the last fiscal year, the actual contractual spending for the entire budget of the REV Illinois Project and the actual spending for minority-owned businesses and women-owned businesses, expressed as a percentage of the total budget for actual spending for the REV Illinois project;
  • (5) A narrative explaining the results of the report and the taxpayer's plan to address the voluntary goals for the next fiscal year; and
  • (6) A copy of the taxpayer's submission of vendor diversity information to the federal government, including but not limited to vendor diversity goals and actual contractual spending for minority-and women-owned businesses, if the Taxpayer is a federal contractor and is required by the federal government to submit such information.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/55)

Sec. 55. Sexual harassment policy report. Each taxpayer claiming a credit under this Act shall, prior to April 15 of each taxable year for which the taxpayer claims a credit under this Act, submit to the Department a report detailing that taxpayer's sexual harassment policy, which contains, at a minimum, the following information: (i) the illegality of sexual harassment; (ii) the definition of sexual harassment under State law; (iii) a description of sexual harassment, utilizing examples; (iv) the vendor's internal complaint process, including penalties; (v) the legal recourse and investigative and complaint processes available through the Department; (vi) directions on how to contact the Department; and (vii) protection against retaliation as provided by Section 6-101 of the Illinois Human Rights Act. A copy of the policy shall be provided to the Department upon request. The reports required under this Section shall be submitted in a form and manner determined by the Department.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/60)

Sec. 60. Certificate of verification; submission to the Department of Revenue.

(a) A taxpayer claiming a credit under this Act shall submit to the Department of Revenue a copy of the Director's certificate of verification under this Act for the taxable year. However, failure to submit a copy of the certificate with the taxpayer's tax return shall not invalidate a claim for a credit.

(b) For a taxpayer to be eligible for a certificate of verification, the taxpayer shall provide proof as required by the Department, prior to the end of each calendar year, including, but not limited to, attestation by the taxpayer that:

  • (1) The project has achieved the level of new employee jobs specified in the agreement.
  • (2) The project has achieved the level of annual payroll in Illinois specified in its agreement.
  • (3) The project has achieved the level of capital improvements in Illinois specified in its agreement.
  • (4) The project has achieved and maintained carbon neutrality or one of the certifications specified in this Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/65)

Sec. 65. Certified payroll.

(a) Each contractor and subcontractor that is engaged in construction work on project facilities for a taxpayer who seeks to apply for a REV Construction Jobs credit shall:

  • (1) make and keep, for a period of 5 years from the date of the last payment made on a contract or subcontract for construction of facilities for a REV Illinois Project pursuant to an agreement, records of all laborers and other workers employed by the contractor or subcontractor on the project; the records shall include:
    • (A) the worker's name;
    • (B) the worker's address;
    • (C) the worker's telephone number, if available;
    • (D) the worker's social security number;
    • (E) the worker's classification or classifications;
    • (F) the worker's gross and net wages paid in each pay period;
    • (G) the worker's number of hours worked in each day;
    • (H) the worker's starting and ending times of work each day;
    • (I) the worker's hourly wage rate; and
    • (J) the worker's hourly overtime wage rate; and
  • (2) no later than the 15th day of each calendar month, provide a certified payroll for the immediately preceding month to the taxpayer in charge of the project; within 5 business days after receiving the certified payroll, the Taxpayer shall file the certified payroll with the Department of Labor and the Department; a certified payroll must be filed for only those calendar months during which construction on the REV Illinois Project facilities has occurred; the certified payroll shall consist of a complete copy of the records identified in paragraph (1), but may exclude the starting and ending times of work each day; the certified payroll shall be accompanied by a statement signed by the contractor or subcontractor or an officer, employee, or agent of the contractor or subcontractor which avers that:
    • (A) he or she has examined the certified payroll records required to be submitted by the Act and such records are true and accurate; and
    • (B) the contractor or subcontractor is aware that filing a certified payroll that he or she knows to be false is a Class A misdemeanor.

A general contractor is not prohibited from relying on a certified payroll of a lower-tier subcontractor, provided the general contractor does not knowingly rely upon a subcontractor's false certification.

(b) Any contractor or subcontractor subject to this Section, and any officer, employee, or agent of such contractor or subcontractor whose duty as an officer, employee, or agent it is to file a certified payroll under this Section, who willfully fails to file such a certified payroll, on or before the date such certified payroll is required to be filed and any person who willfully files a false certified payroll as to any material fact is in violation of this Act and guilty of a Class A misdemeanor and may be enforced by the Illinois Department of Labor or the Department. The Attorney General shall represented the Illinois Department of Labor or the Department in the proceeding.

(c) The taxpayer in charge of the project shall keep the records submitted in accordance with this Section for a period of 5 years from the date of the last payment for work on a contract or subcontract for the project.

(d) The records submitted in accordance with this Section shall be considered public records, except an employee's address, telephone number, and social security number, which shall be redacted. The records shall be made publicly available in accordance with the Freedom of Information Act. The contractor or subcontractor shall submit reports to the Department of Labor electronically that meet the requirements of this subsection and shall share the information with the Department to comply with the awarding of the REV Construction Jobs Credit. A contractor, subcontractor, or public body may retain records required under this Section in paper or electronic format.

(e) Upon 7 business days' notice, the contractor and each subcontractor shall make available for inspection and copying at a location within this State during reasonable hours, the records identified in paragraph (1) of this subsection to the Taxpayer in charge of the Project, its officers and agents, the Director of the Department of Labor and his/her deputies and agents, and to federal, State, or local law enforcement agencies and prosecutors.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/70)

Sec. 70. Noncompliance; notice; assessment. If the Director determines that a taxpayer who has received a credit under this Act is not complying with the requirements of the agreement or all of the provisions of this Act, the Director shall provide notice to the taxpayer of the alleged noncompliance and allow the taxpayer a hearing under the provisions of the Illinois Administrative Procedure Act. If, after such notice and any hearing, the Director determines that a noncompliance exists, the Director shall issue to the Department of Revenue notice to that effect, stating the noncompliance date. If, during the term of an agreement, the taxpayer ceases operations at a project location that is the subject of that agreement with the intent to terminate operations in the State, the Department and the Department of Revenue shall recapture from the taxpayer the entire credit amount awarded under that agreement prior to the date the taxpayer ceases operations. The Department shall, subject to appropriation, reallocate the recaptured amounts within 6 months to the local workforce investment area in which the project was located for purposes of workforce development, expanded opportunities for unemployed persons, and expanded opportunities for women and minority persons in the workforce. The taxpayer will be ineligible for future funding under other State tax credit or exemption programs for a 36-month period. Noncompliance of the agreement with result in a default of other agreements for State tax credits and exemption programs for the project.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/75)

Sec. 75. Annual report.

(a) On or before July 1 each year, the Department shall submit a report on the tax credit program under this Act to the Governor and the General Assembly. The report shall include information on the number of agreements that were entered into under this Act during the preceding calendar year, a description of the project that is the subject of each agreement, an update on the status of projects under agreements entered into before the preceding calendar year, and the sum of the credits awarded under this Act. A copy of the report shall be delivered to the Governor and to each member of the General Assembly.

(b) The report must include, for each agreement:

  • (1) the original estimates of the value of the credit and the number of new employee jobs to be created and, if applicable, the number of retained employee jobs;
  • (2) any relevant modifications to existing agreements;
  • (3) a statement of the progress made by each taxpayer in meeting the terms of the original agreement;
  • (4) a statement of wages paid to new employees and, if applicable, retained employees in the State; and
  • (5) a copy of the original agreement or link to the agreement on the Department's website.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/80)

Sec. 80. Evaluation of tax credit program. The Department shall evaluate the tax credit program every three years and issue a report. The evaluation shall include an assessment of the effectiveness of the program in creating new jobs in Illinois and of the revenue impact of the program and may include a review of the practices and experiences of other states with similar programs. The Director shall submit a report on the evaluation to the Governor and the General Assembly three years after the Effective Date of the Act and every three years thereafter.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/85)

Sec. 85. Sunset of new agreements. The Department shall not enter into any new Agreements under the provisions of this Act after December 31, 2027.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/90)

Sec. 90. Prioritization of project review with the Department of Transportation. A project that would directly assist in the feasibility of locating an electric vehicle manufacturing facility, component parts manufacturing facility, or electric vehicle power supply manufacturing facility may be prioritized by the Secretary of Transportation if: (i) such project is included in the Highway Improvement Program; and (ii) the company will operate the facility that was approved to receive a REV Construction Jobs credit or a REV Illinois credit. Under no circumstances should a project be prioritized if it would compromise the delivery of a project to remediate an immediate threat to safety.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/95)

Sec. 95. Utility tax exemptions for REV Illinois Project sites. The Department may certify a taxpayer with a REV Illinois credit for a Project that meets the qualifications under Section paragraphs (1), (2), and (4) of subsection (c) of Section 20, subject to an agreement under this Act for an exemption from the tax imposed at the project site by Section 2-4 of the Electricity Excise Tax Law. To receive such certification, the taxpayer must be registered to self-assess that tax. The taxpayer is also exempt from any additional charges added to the taxpayer's utility bills at the project site as a pass-on of State utility taxes under Section 9-222 of the Public Utilities Act. The taxpayer must meet any other the criteria for certification set by the Department.

The Department shall determine the period during which the exemption from the Electricity Excise Tax Law and the charges imposed under Section 9-222 of the Public Utilities Act are in effect, which shall not exceed 10 years from the date of the taxpayer's initial receipt of certification from the Department under this Section.

The Department is authorized to adopt rules to carry out the provisions of this Section, including procedures to apply for the exemptions; to define the amounts and types of eligible investments that an applicant must make in order to receive electricity excise tax exemptions or exemptions from the additional charges imposed under Section 9-222 and the Public Utilities Act; to approve such electricity excise tax exemptions for applicants whose investments are not yet placed in service; and to require that an applicant granted an electricity excise tax exemption or an exemption from additional charges under Section 9-222 of the Public Utilities Act repay the exempted amount if the Applicant fails to comply with the terms and conditions of the agreement.

Upon certification by the Department under this Section, the Department shall notify the Department of Revenue of the certification. The Department of Revenue shall notify the public utilities of the exempt status of any taxpayer certified for exemption under this Act from the electricity excise tax or pass-on charges. The exemption status shall take effect within 3 months after certification of the taxpayer and notice to the Department of Revenue by the Department.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/100)

Sec. 100. Investment tax credits for REV Illinois Projects. Subject to the conditions set forth in this Act, a Taxpayer is entitled to an investment tax credit toward taxes imposed pursuant to subsections (a) and (b) of Section 201 of the Illinois Income Tax Act for a taxable year in which the Taxpayer, in accordance with an Agreement under this Act for that taxable year, invests in qualified property which is placed in service at the site of a REV Illinois Project. The Department has authority to certify the amount of such investment tax credits to the Department of Revenue. The credit shall be 0.5% of the basis for such property and shall be determined in accordance with Section 237 of the Illinois Income Tax Act. The credit shall be available only in the taxable year in which the property is placed in service and shall not be allowed to the extent that it would reduce a taxpayer's liability for the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act to below zero. Unused credit may be carried forward in accordance with Section 237 of the Illinois Income Tax Act for use in future taxable years. Any taxpayer qualifying for the REV Illinois Investment Tax Credit shall not be eligible for either the investment tax credits in Section 201(e), (f), or (h) of the Illinois Income Tax Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/105)

Sec. 105. Building materials exemptions for REV Illinois Project sites.

(a) The Department may certify a Taxpayer with a REV Illinois Project that meets the qualifications under paragraphs (1), (2), or (4) of subsection (c) of Section 20, subject to an agreement under this Act, for an exemption from any State or local use tax or retailers' occupation tax on building materials for the construction of its project facilities. The taxpayer must meet any criteria for certification set by the Department under this Act.

The Department shall determine the period during which the exemption from State and local use tax and retailers' occupation tax are in effect, but in no event shall exceed 5 years in accordance with Section 5m of the Retailers' Occupation Tax Act.

The Department is authorized to promulgate rules and regulations to carry out the provisions of this Section, including procedures to apply for the exemption; to define the amounts and types of eligible investments that an applicant must make in order to receive tax exemption; to approve such tax exemption for an applicant whose investments are not yet placed in service; and to require that an applicant granted exemption repay the exempted amount if the applicant fails to comply with the terms and conditions of the agreement with the Department.

Upon certification by the Department under this Section, the Department shall notify the Department of Revenue of the certification. The exemption status shall take effect within 3 months after certification of the taxpayer and notice to the Department of Revenue by the Department.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/900)

Sec. 900. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/905)

Sec. 905. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/910)

Sec. 910. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/915)

Sec. 915. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/920)

Sec. 920. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/925)

Sec. 925. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/930)

Sec. 930. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/935)

Sec. 935. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/940)

Sec. 940. (Amendatory provisions; text omitted).

(Source: P.A. 102-669, eff. 11-16-21; text omitted.)

 

(20 ILCS 686/995)

Sec. 995. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.

(Source: P.A. 102-669, eff. 11-16-21.)

 

(20 ILCS 686/999)

Sec. 999. Effective date. This Act takes effect upon becoming law.

(Source: P.A. 102-669, eff. 11-16-21.)


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