The Senate was in session the week in Springfield. The Senate is scheduled to return to Springfield on April 13.

The House was not in Springfield this week. The House returns to Springfield on April 13.

Today is the official deadline for moving bills out of committee in the chamber of origin. In theory, that means that all bills that have not yet been voted out of committee will be returned to the Rules committee (House) or the Assignments committee (Senate) and will effectively be dead. However, reality is different than theory.

The Senate has a longstanding tradition of allowing deadline extensions upon request of sponsor. In the past, the House was typically less likely to grant extensions. I have been advised that the Chairman of the House Revenue committee has indicated that there will be a number of bills that will be extended.

What does this all mean? The bad news is that I will continue to watch the bad legislation that I have previously identified - much of it will likely be extended. The good news is that the Chamber Tax Institute tax initiatives can also be extended.

The next two weeks are the scheduled Easter break for the General Assembly. In a normal year, that would mean no committee hearings during the two weeks. As of today, there are some committee hearings scheduled over the next two weeks.

As of today, the Senate Revenue committee has not scheduled hearings over the next two weeks.

The House Revenue committee is scheduled to meet on April 1 at 11:00. The committee is scheduled to hold subject matter hearings on 17 bills. The committee will take testimony from proponents and opponents, but will not vote on any of the bills at the April 1 hearing. In the House Revenue committee subject matter hearings are important. They are a way for proponents and opponents to make their case. In addition, in many instances, when bills that have been heard in subject matter hearings are later brought before the committee for a vote there will be little or no additional testimony because of the opportunity for testimony provided at the earlier subject matter hearing.

HB 860 the Cook County Assessor's so called "data modernization bill is scheduled for a subject matter hearing on April 1. We remain strongly opposed to HB 860.

There is other bad legislation to which we are opposed that is also scheduled for consideration.

HB 22 - Halpin - Amends the Public Officer Prohibited Activities Act. Provides that no officer, employee, or agent of a unit of local government may attempt to withhold disclosure to the public of information relating to tax incentives and other financial incentives by using a non-disclosure agreement. Defines "tax incentive". Effective immediately.

HB 95 - Halpin - Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms.

HB 3164 - Hernandez - Creates the Wire Transfer Tax Act. Provides that a tax of 1% of the amount transferred is imposed on each wire transfer originating from within the State. Provides that the moneys received from the tax shall be deposited into the Illinois DREAM Fund. Amends the Higher Education Student Assistance Act to make conforming changes.

There is also a Chamber Tax Institute initiative that we strongly support:

HB 570 - Carroll - Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2022, the tax per cigar or other rolled tobacco product shall not exceed $0.50 per cigar or roll. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability, but not to exceed $2,000 per return.

House and Senate committees continued to meet this week.

The Senate Revenue committee met this week on Wednesday The following bills were considered by the committee this week and moved to the floor:

SB 330 - Feigenholtz - Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall develop a form and include it with certain financing agreements. Amends the Property Tax Code. Provides for a reduction in assessed value for affordable rental housing construction or rehabilitation. Effective immediately.

SB 1720 - Stadelman - Amends the Illinois Enterprise Zone Act. Modifies the definition of "new wind power facility" for the purpose of designating High Impact Businesses under the Act. Provides that "new wind power facility" includes the replacement of an existing electric generation facility, including the demolition and removal of an electric generation facility irrespective of whether it will be replaced. Provides that a new wind power facility shall be deemed to include any permanent structures associated with the electric generation facility. Makes conforming changes.

SB 1747 - Bush - Creates the Illinois Energy Transition Zone Act. Provides for the certification by the Department of Commerce and Economic Opportunity of municipal ordinances designating an area as an Energy Transition Zone. Provides that green energy enterprises located in Energy Transition Zones shall be eligible to apply for certain tax incentives. Provides that a green energy enterprise is a company that is engaged in the production of solar energy, wind energy, water energy, geothermal energy, bioenergy, or hydrogen fuel and cells. Contains provisions concerning qualifications and applications. Creates the Energy Transition Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall make income tax credit awards under the Act to foster job creation and the development of green energy in Energy Transition Zones. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, and the Public Utilities Act to make conforming changes concerning tax incentives. Effective immediately.

SB 2182 - Sims - We support these amendments to the Data Center tax exemption. Amends Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes changes concerning data center investment. Modifies the criteria for determining qualifying Illinois data centers. Provides that the Department of Commerce and Economic Opportunity and any tenant of a qualifying data center seeking a specified exemption for new or existing facilities must enter into a memorandum of understanding. Defines "tenant". Effective immediately.

The House Revenue committee met on Thursday. The following bills were considered by the Revenue committee this week.

HB 34 - Walker - This bill amends the Enterprise Zone Act to make various changes concerning eligibility and the applicant scoring process. We support this bill.

HB 571 - Carroll - Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the municipality may chose the financial advisor or underwriter who shall prepare an analysis required to be submitted to the Comptroller and taxing districts relating to setting forth the: (i) nature and term of obligation; (ii) projected debt service including required reserves and debt coverage; and (iii) actual debt service (currently, only (i) and (ii) are required). Requires, for Fiscal Year 2022 and each fiscal year thereafter, the following additional items to be included in the report required to be submitted before the annual meeting of the Joint Review Board to the Comptroller and taxing districts: (1) the number of jobs, if any, projected to be created for each redevelopment project area at the time of approval of the redevelopment agreement; (2) the number of jobs, if any, created as a result of the development to date for that reporting period under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement; (3) the amount of increment projected to be created at the time of approval of the redevelopment agreement for each redevelopment project area; (4) the amount of increment created as a result of the development to date for that reporting period using the same assumptions as was used for the projections used at the time of the approval of the redevelopment agreement; and (5) the stated rate of return identified by the developer to the municipality for each redevelopment project area, if any. Stated rates of return required to be reported in item (5) shall be independently verified by a third party chosen by the municipality. Makes other changes. Effective immediately.

HB 1769- Harris - Amends the Property Tax Code. For the purposes of determining the fair cash value of a supportive living facility using the income capitalization approach, provides that gross potential income must not exceed the maximum individual Supplemental Security Income (SSI) amount, minus a resident's personal allowance, multiplied by the number of apartments authorized by the supportive living facility certification. Effective immediately.

HB 2409 - Davis - Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall not issue a tax certificate to any taxpayer under this Act unless the taxpayer first submits a supplier diversity report. Provides that the Department of Commerce and Economic Opportunity shall publish on its website all supplier diversity reports filed by taxpayers under this Act and maintain those reports for at least 5 years.

HB 2411 - Davis - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that a qualifying Illinois data center is a place, among other criteria, that within 2 years (rather than 90 days) after being placed in service, certifies that it is carbon neutral or has attained other specified certification. Amends the Brownfields Redevelopment and Intermodal Promotion Act. Extends the use of the South Suburban Brownfields Redevelopment Fund. Amends the New Markets Development Program Act. Modifies provisions concerning certification of qualified equity investments and allocation thereof. Provides further rulemaking requirements. Provides that for fiscal years following fiscal year 2026 (rather than 2021), qualified equity investments under the Act shall not be made unless reauthorization is made. Makes other changes. Effective immediately.

HB 2950 - Morgan - Amends the Counties Code. Provides that, in the counties of DuPage, Kane, Lake, Will, and McHenry, proceeds from the County Motor Fuel Tax Law may also be used for operating, constructing, improving, and acquiring land for shared-use paths for nonvehicular public travel, sidewalks, and bike paths. Amends the Illinois Highway Code. Provides that "highway" includes shared-use paths for nonvehicular public travel, sidewalks, and bike paths. Provides that any county may acquire property for the construction, maintenance or operation of any shared-use path for nonvehicular public travel, sidewalk, or bike path within the county. Provides that the county board of a county with a population over 500,000 may also use motor fuel tax funds allotted to it for the construction and maintenance of shared-use paths for nonvehicular public travel, sidewalks, and bike paths. Makes other changes. Effective immediately.

HB 3107 - Evans - Extends the sunset date for the income tax credit for affordable housing donations until December 31, 2026. As amended, adds provisions to the introduced bill amending the Illinois Housing Development Act. Provides that the amount of tax credits reserved by the administrative housing agency for an approved project under the affordable housing tax donation credit program is limited to $32,850,352 in State fiscal years 2022 and 2023 and shall be increased by 5% in each fiscal year thereafter.

HB 3289 - Walsh - Amends the Property Tax Code. Provides that each chief county assessment officer may approve a homestead exemption for the 2021 taxable year, without application, for any property that was approved for the exemption for the 2020 taxable year, if: (1) the county board has declared a local disaster as provided in the Illinois Emergency Management Agency Act related to the COVID-19 public health emergency; (2) the owner of record of the property as of January 1, 2021 is the same as the owner of record of the property as of January 1, 2020; (3) the exemption for the 2020 taxable year has not been determined to be an erroneous exemption as defined by the Code; and (4) the taxpayer for the 2020 taxable year has not asked for the exemption to be removed for the 2020 or 2021 taxable years. Effective immediately.

HB 3576 - Meyers-Martin - This bill is a Secretary of State "clean up" initiative. Amends the Business Corporation Act of 1983. Authorizes shareholder meetings to be held by means of remote communication. Provides for the combination of corporations and limited liability entities rather than limited liability companies and partnerships. Provides for reports of interim changes of corporations. Accelerates the repeal of provisions relating to franchise taxes from 2025 to 2024. Delays repeal of the corporate franchise tax refund fund from 2022 to 2024. Amends the Benefit Corporation Act to provide that a benefit corporation may be organized under the laws of another state. Amends the Uniform Limited Partnership Act to provide that a request submitted by electronics means may not be considered a request for expedited service.

Among the bills voted to the floor by the committee were TIF extensions: HB 227, HB 2365, HB 2826, HB 3313,

Tax-related Amendments filed this week:

SB 227 - Gillespie - Replaces everything after the enacting clause. Amends the Consumer Fraud and Deceptive Practices Act. Provides that an action for damages may not be brought under the Act against a person as a result of the over collection of any tax by a person to the extent such over collected tax is remitted to a government entity or agency rather than providing that the Act does not apply to the over collection of any tax by a person to the extent such over collected tax is remitted to a government entity or agency. Effective immediately.

SB 279 - Bryant - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Provides that the income tax credit to taxpayers that own and operate a small farm and make a qualifying food commodity donation to a food bank or emergency feeding organization applies for taxable years beginning on or after January 1, 2022 (in the introduced bill, January 1, 2021). Adds provisions concerning partnerships, subchapter S corporations, and owners of limited liability companies. Provides that the food bank or emergency feeding organization shall provide documentation to the taxpayer that (i) sets forth the value of the food commodity donated and (ii) verifies that the donation meets the requirements for the credit. Defines terms. Effective immediately.

SB 338 - Crowe - Amends the Revised Uniform Unclaimed Property Act. Provides that the Secretary of State may (rather than shall) provide the Treasurer with the last known address as it appears in its respective records of any person reasonably believed to be the apparent owner of abandoned property. Provides that any warrants issued by the Comptroller pursuant to a voucher from the Treasurer to pay an owner that are not presented to the Treasurer within 12 months of the date of issuance shall be void, but the funds shall not escheat to the State and shall instead be redeposited in the Unclaimed Property Trust Fund. Provides that the Treasurer shall be responsible for any tax reporting required by federal law related to payments under the Revised Uniform Unclaimed Property Act.

SB 664 - Gillespie - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with additions. Modifies requirements concerning qualifications for enterprise zones. Allows the Department of Commerce and Economic Opportunity to award partial points on a pro rata basis for the purpose of enterprise zone qualification if an applicant demonstrates specified job creation and investment criteria. Makes further changes concerning the awarding of points. Makes changes concerning the certification of enterprise zones. Provides that beginning in calendar year 2021 and for any year in which there are at least 4 Zones available for designation, at least 25% of zones available for designation in a given calendar year must be awarded to zones located in counties with populations of less than 300,000 unless there are no applicants from such locations for that calendar year. Provides that for enterprise zones that are scheduled to expire on or after January 1, 2017 and prior to January 1, 2024, an application process shall begin 2 years prior to the year in which the zone expires. Provides that with respect to job creation or retention, employers and High Impact Businesses shall use best efforts to submit diversity information related to the gender and ethnicity of such employees. Makes conforming and other changes.

SB 665 - Cunningham and Holmes - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: amends the Property Tax Code providing that property that is leased or conveyed to a nonprofit corporation or association for cultivation and sale of fresh fruits and vegetables or recreation under Section 11-11-4 of the Illinois Municipal Code is exempt when actually and exclusively used such purposes and not leased or otherwise used with a view to profit, and providing that the Department of Revenue shall, by rule, develop an application process for a nonprofit corporation or association to prove it will be eligible for the property tax exemption under the Section once the property is leased or sold to it by the municipality and for the Department to provide an exemption certificate, contingent on the lease or conveyance, and, thereafter, an annual certificate of status upon proof of continued eligibility; and makes conforming changes in Section 11-11-4.

SB 1721 - Stadelman - Amends the Property Tax Code. In provisions about delinquent property, provides that a county may take steps necessary (currently, shall take all steps necessary) to acquire title to the property and may manage and operate the property, including, but not limited to, mowing of grass, removal of nuisance greenery, removal of garbage, waste, debris or other materials, or the demolition, repair, or remediation of unsafe structures. Provides that, regarding a petition requesting property to be declared abandoned, service may be had by publication in a newspaper that is in circulation in the county in which the action is pending on persons named as defendants having an interest of record in the property.

SB 1820 - Koehler - The amendment removes provisions from the introduced bill amending the Property Tax Code. Adds provisions creating the Energy Community Reinvestment Act. Creates a schedule of transition payments for decommissioned wholesale electric generation companies.As originally introduced, amends the Property Tax Code to freeze the tax assessment for electricity generating plants for a period of 5 years beginning the year the electricity generating plant is closed.

SB 1975 - Fine and Fowler - Amends the Property Tax Code to authorize automatic renewal of the homestead exemption for persons with disabilities. Adds provisions to the introduced bill providing that an applicant for the homestead exemption for persons with disabilities may be examined by an optometrist if the person qualifies because of a visual disability. Provides that provisions of the introduced bill concerning automatic renewal (i) apply for taxable years 2021 through 2026 and (ii) apply if the person presents proof of eligibility (in the introduced bill, a Disability Identification Card stating that the claimant is under a Class 2 disability). Provides that the chief county assessment officer shall not automatically renew the homestead exemption for persons with disabilities if the physician, advanced practice registered nurse, optometrist, or physician assistant who examined the claimant determined that the disability is not expected to continue for 12 months or more.

SB 2066 - Castro - Senate committee amendment 1 - Replaces everything after the enacting clause. Amends the Retailers' Occupation Tax Act. Provides that, beginning January 1, 2020 and through December 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due but for which use tax has been collected and remitted to the Department of Revenue by a marketplace facilitator are exempt. Provides that the term "marketplace facilitator" does not include any person licensed under the Auction License Act, other than any person who is an Internet auction listing service. Amends the Leveling the Playing Field for Illinois Retail Act. Provides that certified service providers who collect and remit taxes on behalf of retailers may claim the retailers' discount with respect to those taxes. Provides that the retailer is not entitled to the discount with respect to those taxes. Effective immediately.

SB 2297 - Gillespie - Senate committee amendment 1 - Amends the Property Tax Code - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill. Makes changes concerning the valuation of low-income housing projects with 6 units or less to provide that the assessment officer, prior to finalizing and certifying assessments to the Board of Review, shall reassess the building considering the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. Provides that the assessment provisions of the introduced bill apply during a general reassessment year or at such other time that a property is reassessed.

HB 154 - Hernandez - Exempts breast pumps, breast pump collection and storage supplies from the sales tax acts. House committee amendment 1 delays the effective date of the legislation to January 1, 2022.

HB 805 - Tarver - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with various technical corrections. In provisions of the introduced bill concerning the reduction in assessed value for affordable rental housing construction or rehabilitation, provides that the application requirements are continuing requirements for the duration of the reduction in assessed value. Provides that, in lieu of the application requirements set forth in the introduced bill, the chief county assessment officer may allow for the submission of a substantially similar certification granted by the Illinois Housing Development Authority or a comparable local authority, subject to verification by the chief county assessment officer. Adds provisions to the introduced bill amending the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall develop a form and include it with certain financing agreements. Effective immediately.

HB 1868 - Walker - Replaces everything after the enacting clause. Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain startup taxpayers are eligible to elect to claim the Credit against their obligation to pay over withholding taxes. Makes changes to the definition of "underserved area" to change certain references from the federal decennial census to the American Community Survey.

HB 1967 - Walker - House Committee amendment #1 - Replaces everything in the introduced bill. Retains amendments to the Angel Investment Credit from the income tax and a new income tax for businesses in counties of less than 250,000 that hire new employees.

HB 3123 - Ramirez - Creates the Build Illinois Homes Tax Credit Act. House committee amendment 1 - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill. Removes provisions from the introduced bill providing that a qualified development is eligible for the credit whether or not a federal tax credit is allocated with respect to that qualified development. In provisions concerning recapture, provides that, in the event of a recapture the Illinois Housing Development Authority shall also provide notice to the owner of the qualified development. Provides that the Illinois Housing Development Authority shall provide notice of recapture to the Department of Revenue and the Department of Insurance no earlier than 6 months after the event triggering recapture to allow the owner of the qualified development an opportunity to correct this event. Contains provisions concerning the treatment of partnerships and limited liability companies under the introduced bill. Removes Article headings. Makes other changes. Effective immediately.

HB 3140 - Yednock - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that an elementary, secondary, or unit school district's increased costs attributable to assisted housing units located within the redevelopment project area shall, unless otherwise determined by intergovernmental agreement between the municipality and the affected school district, be paid by the municipality from the Special Tax Allocation Fund when the tax increment revenue is received as a result of the assisted housing units. Provides that, for any school district not in a municipality with a population in excess of 1,000,000, the elementary, secondary, or unit school district's increased costs shall be calculated annually by multiplying the district's increase in attendance resulting from specified students enrolled (rather than new students enrolled) in that school district less any increase in general State aid or evidence-based funding attributable to these students, subject to the specified annual limitations.

HB 3181 - Mah - House committee amendment #2 - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill. Makes changes concerning the valuation of low-income housing projects with 6 units or less to provide that the assessment officer, prior to finalizing and certifying assessments to the Board of Review, shall reassess the building considering the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. Provides that the assessment provisions of the introduced bill apply during a general reassessment year or at such other time that a property is reassessed.

HB 3437 - Walsh - Replaces everything after the enacting clause. Creates the Investing in Illinois Works Tax Credit Act. Provides that each owner or operator, as defined in the Illinois Hazardous Materials Workforce Training Act, may apply for a credit against withholding payments due under the Illinois Income Tax Act for each member of its skilled and trained workforce who is also a qualifying graduate. Provides limitations on the credit. Creates the Access to Apprenticeship Act. Provides that no preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance. Amends the Illinois Administrative Procedure Act and the Illinois Income Tax Act to make conforming changes. Creates the Illinois Hazardous Workforce Materials Training Act. Requires workers at high hazard facilities to obtain minimum approved safety training, provided by the Occupational and Safety Health Administration, and to file a certificate of completion with the Department of Labor. Contains enforcement provisions. Provides that the Act does not apply to any owner or operator that has an executed national or local labor agreement in effect pertaining to the performance of construction work at a given facility or site under the terms of the agreement. Requires applicable apprenticeship and training programs, approved by and registered with the U.S. Department of Labor's Office of Apprenticeship, providing minimum approved safety training for workers in high hazard facilities and contractors employing workers at high hazard facilities to file an annual report with the Department and the Illinois Works Review Panel. Provides that an owner or operator who violates the requirements of the Act shall be subject to a minimum civil penalty of $10,000 for each violation. Requires all moneys received by the Department as fees and civil penalties under the Act to be deposited into the Illinois Works Fund to be used to recruit, prescreen, and provide preapprenticeship skills training. Contains other provisions. Effective January 1, 2022.

The March 26 edition of the Illinois Register contained no proposed by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity and no adopted rulemakings by the Department of Commerce and Economic Opportunity.

Today's Illinois Register contained one adopted rulemaking by the Illinois Department of Revenue amending the Cannabis Purchaser Excise Tax. The Department described the rulemaking as follows:

The amendment amends 86 Ill. Adm. Code 423, Cannabis Purchaser Excise Tax, by amending Section 423.105, Definitions, in response to recent inquiries from taxpayers regarding the proper taxation of concentrates and cannabis-infused products. The proposed rulemaking adds a statement to the definition of "cannabis-infused products" that clarifies that the definition does not include cannabis concentrates; and, accordingly, cannabis concentrates shall not be taxed as cannabis-infused products at the rate of 20% of the purchase for cannabis-infused products but shall be taxed based on the amount of THC contained in the cannabis concentrate. (Cannabis with an adjusted delta-9-tetrahydrocannabinol level above 35% shall be taxed at a rate of 25% of the purchase price; cannabis with an adjusted delta-9- tetrahydrocannabinol level at or below 35% shall be taxed at a rate of 10% of the purchase price.). Section 423.105 is also amended by adding a new definition for "smoked" or "smoking." "Smoked" or "smoking" means changing cannabis from a hard, soft, or liquid form by combustion, heat, electricity, or batteries into a form that can be inhaled by the user. By adding a definition of "smoked" or "smoking," dispensaries are provided guidance in applying the definitions of "cannabis concentrates" and "cannabis-infused products." For example the definition clarifies that products such as vape devices that contain cannabis will not be taxed at the rate of 20% for cannabis-infused products but will be tax based on the percentage of THC in the solution in the device. 

None this week.

The Illinois Supreme Court granted a petition for leave to appeal in the following case:

In re: Application of the County Collector v. Blossom63 Enterprises LLC, No. 126929, 1st Dist.

No new decisions were issued by the Tribunal this week. None of the new cases filed with the Tribunal raise unique issues.

The Civic Federation recently issued a report Estimated Effective Property Tax Rates 2009-2018 for selected municipalities in Northeastern Illinois.