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 520.1630 - Application Approval Process

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Application Approval Requirements. Applications shall be submitted to the
				Department, which shall approve or deny the application in writing within 60
				days after receipt. The application shall be approved if it meets the
				requirements of Sections
				520.1610 and
				520.1620 and
				the applicant has submitted a spending plan and financial commitments for the
				proposed eligible investment. The applicant must sign a written agreement with
				the Department obligating the business to place in service the eligible
				investment in qualified property within five years after the date of
				certification. Should the business fail to place in service the eligible
				investment in qualified property within five years following certification, the
				business shall be decertified for the tax exemption and required to repay the
				exempted taxes. Should the business place in service eligible investment
				subsequent to decertification, the business may reapply to the Department for
				recertification. However, this reapplication must utilize the procedures set
				forth in Section 520.1620, and contain the same information as required
				pursuant to Section 520.1610.
b)
				Application Denial Requirements. When the Department denies an application, it
				shall specify in writing the reasons for denial and allow the applicant 15 days
				from the date of application denial to amend and resubmit the application.
				Resubmitted applications shall be approved or denied within 30 days after
				receipt.
c) Certificate of
				Eligibility for Exemption. Applicants determined eligible by the Department in
				accordance with Sections
				520.1610 and
				520.1620 will
				be issued a Certificate of Eligibility for Exemption.
d) 10-Year Exemption Period. All certified
				businesses shall receive a 10-year exemption from the tax imposed by Section 2
				of the Retailers' Occupation Tax Act on purchases of machinery and equipment
				used in the operation of a high impact service facility, as provided in Section
				1j of the Retailers' Occupation Tax Act, and on purchases of jet fuel and
				petroleum products sold to and used in the conduct of its business of sorting,
				handling and redistribution of mail, freight, cargo or other parcels in the
				operation of a high impact service facility, defined in Section 1j of the
				Retailers' Occupation Tax Act.
e)
				Quarterly Reports Required. All certified businesses shall submit quarterly
				reports describing the progress made toward the creation of 750 or more
				full-time or full-time equivalent jobs, and the investment of $100 million in
				qualified property at the High Impact Service Facility.
f) Additional Exemption Periods. At the
				expiration of this initial 10-year period, certified businesses may apply to
				the Department for renewals of the exemption for additional 5-year time
				periods. Any previously certified business that had its exemption expire for
				the sole reason that it could not seek an additional renewal under the previous
				version of this Section may apply to the Department for a renewal, and the
				Department may grant an exemption to the business and make that exemption
				retroactively effective as of the date of its previous expiration. The
				Department shall grant an exemption to a certified business for an additional
				5-year period provided that, at the time of application for renewal:
1) Minimum Jobs Created. The business has
				created a minimum of 750 or more full-time or full-time equivalent jobs at a
				High Impact Service Facility in Illinois.
2) Business is Located in an Enterprise Zone.
				The business is located in an Enterprise Zone established pursuant to the
				Illinois Enterprise Zone Act [20 ILCS 655 ].
3) Business Provides an Audited Financial
				Statement. The business provides a financial statement, including balance
				sheets and income statements, audited according to generally accepted auditing
				standards by a public accountant certified in the State of Illinois as
				contained in the publication entitled AICPA Professional Standards, American
				Institute of Certified Public Accountants, 1211 Avenue of the Americas, New
				York NY 10036-8775 (June 2011, no later editions are incorporated). In
				addition, the certified business chief financial officer shall attest in
				writing that the certified business is not aware of a condition or occurrence
				that would result in a bankruptcy or closure.
4) Maximum Period of Exemption. This
				exemption shall not be allowed beyond the term of the certified Enterprise
				Zone.