Illinois Administrative Code › Title 14 - COMMERCE › Part 520 - ENTERPRISE ZONE AND HIGH IMPACT BUSINESS PROGRAMS › Subpart P - HIGH IMPACT SERVICE FACILITY MACHINERY AND EQUIPMENT SALES TAX EXEMPTION › Section 520.1600 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions are applicable to Subpart P.
"Act" means Sections 1i and 1j of the Retailers' Occupation
				  Tax Act [35 ILCS 120 /li and lj].
"Business enterprise", for the purpose of determining whether
				  the minimum eligible investment has been made at the High Impact Service
				  Facility, means the taxpayer and any related corporation. For purposes of this
				  definition, related corporation includes any wholly-owned subsidiary of the
				  taxpayer, any corporation that wholly owns the taxpayer, or any corporation
				  that is wholly-owned by the same common parent corporation as the
				  taxpayer.
"Business enterprise project" means a facility used primarily
				  for the sorting, handling and redistribution of mail, freight, cargo or other
				  parcels received from agents or employees of the handler or shipper for
				  processing at a common location and redistribution to other employees or agents
				  for delivery to an ultimate destination on an item-by-item basis, and that
				  consists of an investment of $100 million or more and will cause the creation
				  of 750 or more jobs in an Enterprise Zone established pursuant to the Illinois
				  Enterprise Zone Act and certified by the Department.
"Contractually obligated" means the business enterprise has
				  entered into a legally binding agreement with the Department to comply with
				  Section 1i of the Retailers' Occupation Tax Act.
"Department" means the Department of Commerce and Economic
				  Opportunity.
"Eligible investment" means:
Investments in qualified property that will be placed in
				  service at a High Impact Service Facility located in an Enterprise Zone.
				  Qualified properties are statutorily defined in Section 201(f) and (h) of the
				  Illinois Income Tax Act [35 ILCS
				  5/201(f) and (h) ]; or
Noncapital/nonroutine investments, and associated service
				  costs (direct labor or contractual fees), that will be placed in service at a
				  High Impact Service Facility located in an Enterprise Zone and made for the
				  improvement or renovation of qualified properties. These activities are
				  undertaken for the purposes of improving productive capacity, efficiency,
				  product quality, or competitive position, and cannot be repetitious,
				  commonplace, or associated with regular maintenance expenditures; or
Includes motor driven heavy equipment, not considered rolling
				  stock, used for transporting parcels, machinery, or equipment, or is used to
				  maintain and provide in-house services within the confines of the facility; and
				  automated machinery and equipment used for the purposes of transporting parcels
				  within the facility, along with all components contained in the electronic
				  control systems.
"Full-time equivalent job" means a job in which the new
				  employee works for the recipient or for a corporation under contract to the
				  recipient at a rate of at least 35 hours per week. A recipient who employs
				  labor or services at a specific site or facility under contract with another
				  may declare one full-time, permanent job for every 1,820 man hours worked per
				  year under that contract. Vacations, paid holidays, and sick time are included
				  in this computation. Overtime is not considered a part of regular hours.
				  [20 ILCS
				  655/3(i) ]
"Full-time retained job" means any employee defined as having
				  a full-time or full-time equivalent job preserved at a specific facility or
				  site, the continuance of which is threatened by a specific and demonstrable
				  threat, which shall be specified in the application for development assistance.
				  A recipient who employs labor or services at a specific site or facility under
				  contract with another may declare one retained employee per year for every
				  1,750 man hours worked per year under that contract, even if different
				  individuals perform on-site labor or services. [20 ILCS
				  655/3(j) ]
"High Impact Service Facility" means a facility used
				  primarily for the sorting, handling, and redistribution of mail, freight,
				  cargo, or other parcels received from agents or employees of the handler or
				  shipper for processing at a common location and redistribution to other
				  employees or agents for delivery to an ultimate destination on an item-by-item
				  basis [35 ILCS 120/li].
"Job creation" means at least 750 or more full-time
				  equivalent employees have been hired in an Enterprise Zone over the number of
				  full-time equivalent employees that were employed by the applicant in the
				  Enterprise Zone as of July 1, 1989 or the date the Enterprise Zone was
				  certified, whichever is later. Job titles being filled or refilled as a result
				  of strikes or layoffs or replacement workers to replace company locked out
				  employees cannot be counted as job creation.
"New employee" means a full-time equivalent job that
				  represents a net increase in the number of the recipient's employees statewide.
				  "New employee" includes an employee who previously filled a new employee
				  position with the recipient who was rehired or called back from a layoff that
				  occurs during or following the base years. The term "new employee" does not
				  include any of the following:
An employee of the recipient who performs a job that was
				  previously performed by another employee in this State, if that job existed in
				  this State for at least 6 months before hiring the employee;
Any individual who has a direct or indirect ownership
				  interest of at least 5% in the profits, capital or value of any member of the
				  recipient;
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 interest of at least 5% in the profits, capital or
				  value of any member of the recipient;
Employee positions being filled or refilled as a result of
				  strikes or layoffs or replacement workers to replace recipient company locked
				  out employees.
"Placed in service" means the state or condition of readiness
				  and availability for a specifically assigned function as defined in 26 CFR 1.46
				  - 3(d) (July 1, 2012). An eligible investment, as defined in this Section,
				  shall be considered placed in service on the earlier of:
The date the property is placed in a condition of readiness
				  and availability for use; or
The date on which the depreciation period of that property
				  begins.