Vote Smart's Synopsis:

Vote to pass a bill that establishes tax advantaged zones to incentivize the creation of green energy businesses in areas reliant on fossil fuel energies.

Highlights:

• Defines "department" as the Department of Commerce and Economic Opportunity (Sec. 1-45).

• Defines "agreement" as the Agreement between a Taxpayer and the Department under the provisions of Section 5-55 of this Act (Sec. 5-10).

• Establishes green energy enterprises are eligible to purchase building materials exempt from use and occupation taxes to be incorporated into their green energy projects within the Energy Transition Zone when purchased from a retailer within the Energy Transition Zone (Sec. 1-25.c).

• Requires, no later than June 30, the Department to notify all applicant municipalities of the Department's determination of the qualification of their respective designated energy transition Zone areas, along with supporting documentation of the basis for the Department's decision (Sec. 1-35.c).

• Requires green energy enterprises to report their job creation, retention, and capital investment numbers within the Zone annually to the Department of Revenue no later than May 31 of each calendar year (Sec. 1-75.c).

• Requires the Department to conduct an ongoing review of such agency rules as may be identified by the Department or representatives of designating municipalities and counties as green energy enterprises and preliminarily appearing to the Department to (Sec. 1-85.a):

• Affect the conduct of business, industry and commerce;

• Impose excessive costs on either the creation or conduct of such enterprises; and

• Inhibit the development and expansions of enterprises within Energy Transition Zones.

• Authorizes an employee to be considered a New Employee under the Agreement if the employee performs a job that was previously performed by an employee who was (Sec. 5-5):

• Treated under the Agreement as a New Employee; and

• Promoted by the Taxpayer to another job. Notwithstanding any other provisions of this Section, the Department may award a Credit to an Applicant with respect to an employee hired prior to the date of the Agreement if:

• The Applicant is in receipt of a letter from the Department stating an intent to enter into a credit Agreement; and

• The letter described in paragraph (1) is issued by the Department not later than 15 days after the effective.

• Requires applicants to issue any necessary authorization to the appropriate federal, state, or local authority for the release of information concerning a project being considered under the provisions of this Act, with the information requested to include, but not be limited to, financial reports, returns, or records relating to the Taxpayer or its project (Sec. 5-5-8).

• Prohibits the total amount of the Credit allowed during all tax years from exceeding the aggregate amount of costs incurred by the Taxpayer during all prior tax years for the following items, to the extent provided in the Agreement (Sec. 5-35):

• 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.

• Specifies if the Taxpayer never meets either the investment or job creation and retention requirements during the entire 5-year period beginning on the first day of the first taxable year in which the Agreement is executed and ending on the last day of the fifth taxable year after the Agreement is executed, then the Agreement is automatically terminated on the last day of the fifth taxable year after the Agreement is executed and the Taxpayer is not entitled to the award of any credits for any of that 5-year period (Sec. 5-55-14).

Full Bill Text