Illinois Administrative Code › Title 14 - COMMERCE › Part 527 - ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY PROGRAM (EDGE) › Section 527.80 - Tax Credit Agreement

Current through Register Vol. 48, No. 28, July 12, 2024
The Department and each Taxpayer whom the Department determines
				qualifies for a Credit under the Act shall enter into an Agreement that
				specifies terms and conditions regarding the provision of the Credit and
				defines the rights and responsibilities of the Taxpayer and the Department.
				Provisions that the Taxpayer will be contractually bound to comply with
				include, but are not limited to, the following:
a)
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.
b)
The duration of the Credit and the
			 first taxable year for which the Credit may be claimed.
c)
The Credit amount that will be
			 allowed for each taxable year.
d)
A requirement that the Taxpayer
			 shall maintain operations at the project location that shall be stated as a
			 minimum number of years
not to exceed 10.
e)
A specific method for determining
			 the number of New Employees
and Retained Employees
employed
			 during a taxable year.
f)
A requirement that the Taxpayer shall annually report to the Department
			 the number of New Employees
and Retained Employees
, the
			 Incremental
Income Tax
withheld in connection
			 with the New Employees
and Retained Employees
, and any other
			 information the
Department requires to ensure compliance with the Act,
			 the Agreement, or other applicable law.
g)
A requirement that the
Director or Department
is authorized to verify with the appropriate
			 State agencies
information required to be reported by the
			 Taxpayer.
h)
A requirement
			 that the Taxpayer shall provide written notification to the
Department
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.
i)
A detailed description of the number of New Employees to be
			 hired
and Retained Employees to be maintained
, and the
			 occupation and payroll of the full-time jobs to be created or retained as a
			 result of the Project.
j)
			 The Agreement shall include the total number of Full-time Employees employed by
			 the Applicant and any Related Member, subsidiary, parent, sister, and any other
			 related or associated company in the State of Illinois at the time of the
			 Application (the "baseline"), and a provision that allowance of the Credit
			 shall be suspended if the number of Full-time Employees employed by the
			 Taxpayer in Illinois falls below that baseline until the number of Full-time
			 Employees equals or exceeds the baseline amount identified in the
			 Agreement.
k)
The minimum
			 investment the business enterprise will make in capital improvements
,
			 if applicable
, the time period for placing the property in service, and
			 the designated location in Illinois for the investment
.
l)
A requirement that the Taxpayer
			 shall provide written notification to the
Department
not more
			 than 30 days after the Taxpayer determines that the minimum job creation or
			 retention, employment payroll, or investment no longer is being or will be
			 achieved or maintained as set forth in the terms and conditions of the
			 Agreement.
m)
A
			 provision that, if the total number of New Employees
and Retained
			 Employees
falls below a specified level, the allowance of Credit shall
			 be suspended until the number of New Employees
and Retained Employees
equals or exceeds the Agreement amount.
n)
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 5-
30.
o)
A provision that, if the Taxpayer
			 never meets either 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
.
p)
A
			 provision specifying that, if the Taxpayer ceases principal operations with the
			 intent to shut down the Project in the State permanently 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 is located.
q) Any other performance conditions or
			 contract provisions the Department determines are necessary to comply with the
			 Act and other applicable State laws and administrative rules. [
			 35 ILCS
			 10/5-50 ]