Sometimes it is helpful to think of the legislative session as a HIIT workout. If last week’s deadline was an all-out sprint, this week was more of a light jog to catch our collective breath before things pick up again.
Speaking of running, the 147th Kentucky Derby is this weekend. Todd is so excited that he purchased special socks for the occasion. Me? I’m more interested in the Mint Juleps but I’ll go with Midnight Bourbon to place.
Committee Updates
There was no committee action of interest this week. No relevant committees have been scheduled for next week.
Data Center Updates
SB 2182, Data Center Exemptions remains on 3rd reading and was not called this week. This is a Chamber initiative and we are lobbying to have this bill heard in the next week. As amended, this bill provides that a "qualifying Illinois data center" means a new or existing data center that, among other criteria, is located in the State of Illinois, is located within a 5-mile geographic radius, and is connected by common infrastructure. Provides that a data center and an associated tenant may enter into an ancillary memorandum of understanding, as prescribed by the Department of Commerce and Economic Opportunity, for purposes of receipt of an exemption. Provides that the Department is authorized to conform existing memorandums of understanding with the provisions concerning data center investments. Modifies the definition of "tenant". This bill is a Chamber initiative.
The Chamber has spoken with sponsors of the bill, as well as legislative staff, and are confident this bill will pass out of the Senate next week.
HB 2411 passed out of the House 110-0-0. It 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 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. Senator Sims is carrying this bill in the Senate.
Meanwhile, the Department of Revenue has formally adopted rules proposed several months ago to implement income tax portions of the data center legislation. Keith Staats of the Chamber’s Tax Institute has reviewed the rules and sees no issues. The formal rule is below:
INCOME TAX
The DEPARTMENT OF REVENUE adopted an amendment to Income Tax (86 IAC 100; 44 Ill Reg 18641), effective 4/ 15/21, implementing two Public Acts. The amendment provides that the data center investment tax credit awarded by the Department of Commerce and Economic Opportunity beginning in calendar year 2019 shall be 20% of the wages paid to a full- or part-time employee of a construction contractor employed by the certified data center, provided that those wages were paid for construction of a new data center in an economically distressed area meeting one of the following criteria: unemployment rate more than 120% of the national average, poverty rate of 20% or more, 20% or more households receiving SNAP, or 75% or more of children receiving free school lunches. The rulemaking specifies how the credit will be documented; how it will be awarded when earned by a partnership or subchapter S corporation; and that if the credit amount exceeds the taxpayer’s tax liability for the year the excess may be carried forward to the next 5 tax years. Businesses claiming the data center investment tax credit are affected.
SB 672 Passes the Senate
SB 672, Food Delivery passed the Senate by a vote of 55-0-0. This bill Creates the Fair Food Delivery Act. Provides that a third-party delivery service may not purchase or use the name, likeness, registered trademark, or intellectual property belonging to a merchant, and may not take or arrange for the pickup or delivery of an order from a merchant through the marketplace, without first obtaining written consent from the merchant. Provides that an agreement entered into pursuant to the Act may not include a provision that requires a merchant to indemnify a third-party delivery service, an independent contractor of the third-party delivery service, or a registered agent of the third-party delivery service for any damages or harm partially or wholly caused by or resulting from the third-party delivery service, an independent contractor of the third-party delivery service, or a registered agent of the third-party delivery service. Authorizes recovery of actual damages or $5,000, whichever is greater. Imposes a civil penalty of not more than $1,000 per violation. Provides that each day a violation occurs constitutes a separate violation.
Governor Pritzker Proposals on Electric Vehicles
On Wednesday, the Governor released a 900-page comprehensive energy proposal. The bill represents his marker for energy policies and start the real negotiation on an issue where every legislative leader expects there to be significant legislation passed before the adjournment.
Our Energy Council will be taking an in-depth examination of that bill. However, I expect many of you in the Tech Council will be interested in the provisions concerning “transportation electricficiation”.
Here are some dot points from that section:
• Increase the adoption of electric vehicles on the road to 1,000,000 by 2030.
• Require IEPA to issue EV charging rebates to organizations and companies who build charging stations, up to 90% of the cost of the charging station, up to $4,000 for Level 2 chargers and up to $5,000 for Level 3 chargers.
• Require electric utilities to file transportation electrification plans with the ICC for programs to address investments and incentives to facilitate the deployment of charging equipment.
• Appoint an EV Coordinator at IEPA to oversee all electric vehicle-related policies and activities and reconvene the EV Advisory Council.
• Offer $4,000 rebates for consumers who buy an electric vehicle.
Expect more in the upcoming weeks on this issue.
Florida Passes Privacy Bill
The Florida Senate has passed HB 969 by a vote of 29 to 11. This is a comprehensive privacy bill but, importantly, does not have a PRA. This bill is similar to the CCPA. Thanks to the Florida Chamber and the US Chamber for their work on this issue. The Illinois Tech Chamber followed this issue as similar legislation has been introduced many times in Illinois and I expect it to remain a hot issue here- particularly next legislative session. As many of you know, lawmakers love to heavily borrow from the work done in other states.
Articles of Interest
Until next time,
Clark
