Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 888 - REVIEW OF REMEDIATION COSTS FOR RIVER EDGE REDEVELOPMENT ZONE SITE REMEDIATION TAX CREDIT › Section 888.140 - Ineligible Costs

Current through Register Vol. 48, No. 28, July 12, 2024
Costs ineligible for the River Edge Redevelopment Zone Site
				Remediation Tax Credit under Section 201(n) of the Illinois Income Tax Act
				[35 ILCS
				5/201(n) ] include, but are not
				limited to, the following:
a) Costs
			 not incurred by the Remediation Applicant;
b) Costs incurred for activities, materials,
			 labor, or services relative to remediation at a site other than the site for
			 which the No Further Remediation Letter was issued;
c) Costs for remediating a release or
			 substantial threat of a release of regulated substances or pesticides that was
			 caused or contributed to in any material respect by the Remediation Applicant,
			 any related party (as described in Section 201(n) of the Illinois Income Tax
			 Act [35 ILCS
			 5/201(n) ]), or any person whose tax
			 attributes the Remediation Applicant has succeeded to under section 381 of the
			 Internal Revenue Code;
d) Costs
			 incurred before January 1, 2007, or more than 12 months before enrollment of
			 the site in the Site Remediation Program, or after the date of issuance of a No
			 Further Remediation Letter issued pursuant to Section 58.10 of the Act and 35
			 Ill. Adm. Code 740;
e) Costs
			 associated with material improvements to the extent that such improvements are
			 not necessary to achieve remediation objectives pursuant to an approved
			 Remedial Action Plan in accordance with 35 Ill. Adm. Code
			 740.450;
f) Costs or losses resulting from business
			 interruption;
g) Costs incurred as
			 a result of vandalism, theft, negligence, or fraudulent activity by the
			 Remediation Applicant or the agent of the Remediation Applicant;
h) Costs incurred as a result of negligence
			 in the practice of professional engineering as defined in Section 4 of the
			 Professional Engineering Practice Act of 1989 [225 ILCS
			 325/4 ];
i) Costs incurred as a result of negligence
			 by any contractor, subcontractor, or other person providing remediation
			 services at the site;
j) Costs
			 associated with replacement of above-grade structures destroyed or damaged
			 during remediation activities to the extent destruction or damage and the
			 replacement is not necessary to achieve remediation objectives pursuant to an
			 approved Remedial Action Plan in accordance with 35 Ill. Adm. Code
			 740.450;
k) Attorney
			 fees;
l) Purchase costs of
			 non-consumable materials, supplies, equipment or tools, except that a
			 reasonable rate may be charged for the usage of such materials, supplies,
			 equipment, or tools;
m) Costs for
			 repairs or replacement of equipment or tools due to neglect, improper or
			 inadequate maintenance, improper use, loss, or theft;
n) Costs associated with activities that
			 violate any provision of the Act or Board, Agency, or Illinois Department of
			 Transportation regulations;
o)
			 Costs associated with improperly installed or maintained groundwater monitoring
			 wells;
p) Costs associated with
			 unnecessary, irrelevant, or improperly conducted activities, including, but not
			 limited to, data collection, testing, measurement, reporting, analysis,
			 modeling, risk assessment, or sample collection, transportation, measurement,
			 analysis, or testing;
q) Stand-by
			 or demurrage costs;
r) Interest or
			 finance costs charged as direct costs;
s) Insurance costs charged as direct
			 costs;
t) Indirect costs for
			 personnel, labor, materials, services, or equipment charged as direct
			 costs;
u) Costs associated with
			 landscaping, vegetative cover, trees, shrubs, and aesthetic
			 considerations;
v) Costs associated
			 with activities, materials, labor, equipment, structures, or services to the
			 extent they are not necessary for compliance with 35 Ill. Adm. Code 740, 35
			 Ill. Adm. Code 742, and the approved Remedial Action Plan;
w) Costs determined to be incorrect as a
			 result of a mathematical, billing, or accounting error;
x) Costs that are not adequately
			 documented;
y) Costs that are
			 determined to be unreasonable;
z)
			 Costs associated with investigative action, preventive action, corrective
			 action, or enforcement action taken by the State of Illinois if the owner or
			 operator failed, without sufficient cause, to respond to a release or
			 substantial threat of a release upon, or in accordance with, a notice issued by
			 the Agency pursuant to 35 Ill. Adm. Code
			 732.105
			 or
			 734.125
			 of the Board's regulations and Section 57.12 of the Act;
aa) Costs related to activities, materials,
			 or services not necessary to stop, minimize, eliminate, or clean up a release
			 or its effects in accordance with the minimum requirements of the Act and
			 regulations;
bb) Costs for
			 activities and related services or materials that are unnecessary, inconsistent
			 with generally accepted engineering practices or principles of professional
			 geology, or unreasonable costs for justifiable activities, materials, or
			 services;
cc) Handling charges for
			 subcontractor costs that have been billed directly to the Remediation
			 Applicant;
dd) Handling charges for
			 subcontractor costs when the contractor has not submitted proof of payment of
			 the subcontractor costs;
ee) Costs
			 associated with oversight by a Remediation Applicant or a Remediation
			 Applicant's authorized agent;
ff)
			 Handling charges charged by persons other than the Remediation Applicant's
			 primary contractor;
gg) The
			 treatment or disposal of soil that does not exceed the applicable remediation
			 objectives for the release;
hh)
			 Costs associated with the removal or abandonment of a potable water supply
			 well, or the replacement of such a well or connection to a public water
			 supply;
ii) Costs associated with
			 the repair or replacement of potable water supply lines;
jj) Costs associated with the replacement of
			 underground structures or utilities, including but not limited to septic tanks,
			 utility vaults, sewer lines, electrical lines, telephone lines, cable lines, or
			 water supply lines;
kk) Costs
			 associated with the maintenance, repair, or replacement of leased or
			 subcontracted equipment;
ll) Costs
			 associated with corrective action to achieve remediation objectives that are
			 more stringent than Tier 2 remediation objectives developed in accordance with
			 35 Ill. Adm. Code 742;
mm) Costs
			 associated with groundwater remediation if a groundwater ordinance already
			 approved by the Agency for use as an institutional control in accordance with
			 35 Ill. Adm. Code 742 can be used as an institutional control for the release
			 being remediated.