SB2008: GROCERY INITIATIVE-OWNER

Legislative Summary

Creates the Statewide Innovation Development and Economy Act. Provides that the purpose of the Act is to promote, stimulate, and develop the general and economic welfare of the State and its communities and to assist in the development and redevelopment of major tourism, entertainment, retail, and related projects within eligible areas of the State, thereby creating new jobs, stimulating significant capital investment, and promoting the general welfare of the citizens of the State, by authorizing municipalities and counties to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects and to otherwise exercise the powers and authorities granted to municipalities to provide incentives to create new job opportunities and to promote major tourism, entertainment, retail, and related projects within the State. Provides that the Office of the Governor, in consultation with the Department of Commerce and Economic Opportunity, shall have final approval of all STAR bond districts and STAR bond projects established under the Act, which may be established throughout the 10 Economic Development Regions in the State as established by the Department of Commerce and Economic Opportunity. Provides that regardless of the number of STAR bond districts established within any Economic Development Region, only one STAR bond project may be approved in each of the 10 Regions, excluding projects located in STAR bond districts established under the Innovation Development and Economy Act. Provides that each STAR bond district in which a STAR bonds project has been approved may only receive 50% of the total development costs up to $75,000,000 in State sales tax increment. Provides that a STAR bond district under the Act may not be located either entirely or partially inside of a municipality with a population in excess of 2,000,000. Amends the Illinois State Auditing Act. Changes the jurisdiction of the Auditor General to make post audits and investigations under the Act or Constitution. Amends the State Finance Act. Amends the Illinois Municipal Code. Amends the Counties Code. Amends the Metro-East Park and Recreation District Act. Amends the Local Mass Transit District Act. Creates the Advancing Innovative Manufacturing for Illinois Tax Credit Act. Creates the Advancing Innovative Manufacturing for Illinois Tax Credit program administered by the Department of Commerce and Economic Opportunity. Provides that the Program shall provide investment tax credit incentives to eligible manufacturers of critically demanded goods. Amends the Illinois Income Tax Act to make conforming changes. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes changes concerning data centers. Provides that the Department of Commerce and Economic Opportunity may award grants to match the funds received by a business through an SBIR/STTR Phase I proposal up to a maximum of $75,000 (currently, $50,000). Provides that the Department of Commerce and Economic Opportunity may award grants to match the funds received by a business through an SBIR/STTR Phase II proposal up to a maximum of $250,000. Amends the Illinois Income Tax Act to make changes concerning the apprenticeship education expense credit. Amends the Economic Development for a Growing Economy Tax Credit Act. Makes changes authorizing additional Agreements under the Act. Amends the Illinois Enterprise Zone Act to provide that certain economic development authorities may designate additional Enterprise Zones. Amends the Illinois Income Tax Act. Provides that, if compensation is paid through a loan out company, as defined under the Film Production Services Tax Credit Act of 2008, if the compensation is considered compensation paid in this State, and if the compensation is for in-State services performed for a production that is accredited under the Film Production Services Tax Credit Act of 2008 and concludes on or after July 1, 2025, then the production company or its authorized payroll service company shall be considered the employer for the purpose of withholding tax on that compensation and shall withhold at the tax rate provided in the Act on all payments to loan out companies for services performed in Illinois by the loan out company's employees. Specifies that nonresident employees of loan out companies who perform services in Illinois shall be considered taxable nonresidents and shall be subject to the tax under the Act in the taxable year in which the employee performs services in Illinois. Amends the Film Production Services Tax Credit Act of 2008. Modifies the definitions of the terms "credit", "Illinois labor expenditure", and "Illinois production spending". Provides that a taxpayer shall not be awarded any new credits under the Act for tax years beginning on or after January 1, 2039 (rather than 2033). Contains other provisions. Amends the Film Production Services Tax Credit Act of 2008. Provides that the term "Illinois labor expenditure" does not include: (1) above-the-line spending exceeding 40% of the total Illinois production spending for the production, unless the Department of Commerce and Economic Opportunity determines that the inclusion of such excess above-the-line spending is necessary for the production to be accredited; (2) above-the-line spending paid to related parties that exceeds, in the aggregate, 12% of the total Illinois production spending for the production; or (3) below-the-line spending paid to a related party that exceeds the fair market value of the transaction. Defines "above-the-line spending" and "below-the-line spending". Provides that the term "Illinois production spending" includes the fair market value of any transaction that (i) is entered into between the taxpayer and a related party or the taxpayer and an unrelated party, (ii) is related to the accredited production, and (iii) has terms that reflect the fair market value of the transaction. Effective immediately.