Illinois Administrative Code › Title 14 - COMMERCE › Part 580 - REIMAGINING ENERGY AND VEHICLES IN ILLINOIS PROGRAM › Subpart A - ADMINISTRATIVE REQUIREMENTS › Section 580.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions are applicable to this Part.
"Act" means the Reimagining Energy and Vehicles in Illinois
				  Act. [20
				  ILCS 686 ]
"Advanced battery" means a battery that consists of a
				  battery cell that can be integrated into a module, pack or system to be used in
				  energy storage applications, including a battery used in an electric vehicle or
				  the electric grid.
"Advanced battery component" means a component of an
				  advanced battery, including materials, enhancements, enclosures, anodes,
				  cathodes, electrolytes, cells, and other associated technologies that comprise
				  an advanced battery.
"Agreement" means the agreement between a taxpayer
				  and the Department under the provisions of Section 45 of this
				  Act.
"Applicant" means a taxpayer that:
operates a business in Illinois or is planning to
				  locate a business within the State of Illinois and
is engaged in interstate or intrastate
				  commerce
as an
electric
vehicle manufacturer, an
electric vehicle component parts
manufacturer
,
an
electric vehicle power supply
				  equipment
manufacturer, or a renewable energy
				  manufacturer
.
"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 municipality or county.
"Battery raw materials" means the raw and processed
				  form of a mineral, metal, chemical, or other material used in an advanced
				  battery component.
"Battery raw materials refining service provider"
				  means a business that operates a facility that filters, sifts, and treats
				  battery raw materials for use in an advanced battery.
"Battery recycling and reuse manufacturer" means a
				  manufacturer that is primarily engaged in the recovery, retrieval, processing,
				  recycling, or recirculating of battery raw materials for new use in electric
				  vehicle batteries.
"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.
"Compensation" means compensation as defined in Section
				  1501(a)(3) of the Income Tax Act
.
[35 ILCS
				  5/1501(a)(3) ]
"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, including electricity
				  generated through a hydrogen fuel cells or solar technology. "Electric vehicle"
				  does not include hybrid electric vehicles, electric bicycles, or 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
primarily
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 focused on reequipping, expanding, or
				  establishing a manufacturing facility in Illinois that produces parts or
				  accessories used in electric vehicles, as defined in this Section, including
				  advanced battery component parts.
"Electric vehicle power supply equipment" means the
				  equipment used specifically for the purpose of delivering electricity to an
				  electric vehicle
including hydrogen fuel cells or solar refueling
				  infrastructure
.
"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
, including hydrogen fuel cells or solar
				  refueling infrastructure
.
"Energy Transition Area" means a county with less
				  than 100,000 people or a municipality that contains one or more of the
				  following:
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
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.
Annually scheduled periods for inventory or
				  repairs, vacations, holidays and paid time for sick leave, vacation or other
				  leave shall be included in this computation of 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.
"Local workforce investment area" means a single county or
				  multiple counties designated by the Governor, which allows for the receipt of
				  an allotment of funds under Sections 127(b) or 132(b) of the Workforce
				  Innovation and Opportunity Act, (PL 113 through 128 (2014)) (WIOA),
				  with considerations consisting of the extent to which the areas:
are consistent with labor market areas in the State;
are consistent with regional economic development areas in
				  the State; and
have available the federal and non-federal resources
				  necessary to effectively administer activities under subtitle B and other
				  applicable provisions of WIOA,
including whether the areas have the appropriate education
				  and training providers, such as institutions of higher education and area
				  career and technical education schools.
"Minority person" means a minority person as defined
				  in the Business Enterprise for Minorities, Women, and Persons with Disabilities
				  Act
[30 ILCS 575
				  ]
.
"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.
The term "New Employee" does not include:
an employee of the taxpayer who performs a job that was
				  previously performed by another employee, if that job existed for at least 6
				  months before hiring the employee;
an employee of the taxpayer who was previously employed in
				  Illinois by a related member of the taxpayer and whose employment was shifted
				  to the taxpayer after the taxpayer entered into the tax credit
				  agreement;
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 an
				  indirect ownership interest of at least 5% in the profits, equity, capital, or
				  value of the taxpayer.
"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
[35 ILCS 5 ].
"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" or "PEO" means
				  an employee leasing company
that is an individual or entity
				  contracting with a client to supply or assume responsibility for personnel
				  management of one or more workers to perform services for the client on an
				  on-going basis rather than under a temporary help arrangement,
as
				  defined in Section 206.1 of the Illinois
				  Unemployment Insurance Act
[820 ILCS 405
				  ].
"Program" means the Reimagining Energy and 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, electric vehicle power supply
				  equipment
or renewable energy products
which is designated by
				  the Department as a REV Illinois Project and is the subject of an
				  agreement.
"Project costs" includes cost of the project incurred or to
				  be incurred by the taxpayer including: capital investment, including, but not
				  limited to, equipment, buildings, or land; infrastructure development; debt
				  service, except refinancing of current debt; research and development; job
				  training and education; lease costs or relocation costs, but excludes the value
				  of State incentives, including discretionary tax credits, discretionary job
				  training grants, or the interest savings of below market rate loans.
"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:
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.
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.
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.
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.
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.
"Renewable energy" means energy produced using the
				  materials and sources of energy through which renewable energy resources are
				  generated.
"Renewable energy manufacturer" means a manufacturer
				  whose primary function is to manufacture or assemble:
equipment, systems, or products used to produce
				  renewable or nuclear energy;
products used for energy conservation, storage, or
				  grid efficiency purposes; or
component parts for that equipment or those systems
				  or products.
"Renewable energy resources" has the meaning ascribed
				  to that term in Section 1-10 of the Illinois Power Agency Act.
"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 related
				  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, administrative cost related to
				  full-time employees of the taxpayer,
or costs which an applicant
				  received a tax credit or payment for the same training costs for the subject
				  employees under another State program. (Section 10 of the Act)
"Underserved area" means any geographic areas as defined in
				  Section 55 of the Economic Development for a Growing Economy Tax Credit
				  Act.