Large projects could qualify for a property tax freeze

The Department of Commerce and Economic Opportunity could certify qualifying projects for a property tax assessment freeze. The company must invest at least $1 billion and create 50 new full-time jobs, or invest at least $500 million and create 100 new full-time jobs. Required jobs must be in Illinois and cannot be moved from another Illinois location. The company must make the required investment, meet any job target, sign an agreement with the local municipality, and set a goal of awarding 15% of project contracts to minority-owned businesses. Projects with homes or data centers cannot receive a certificate. The agreement must require annual special payments of at least 10% of the property tax levied on the project before the base year. The municipality must put 30% of those payments into a fund for property tax rebates to local commercial and residential property owners. Companies must apply to the local municipality before January 1, 2031. The freeze begins in the first calendar year after the project is operating and meets its requirements. The company must agree to operate there for at least 20 years.

The Department could certify taxpayers for an exemption on building materials used at a qualifying megaproject. The exemption covers state and local use and sales taxes on qualifying building materials. Contractors and other entities need an active exemption certificate when they buy the materials. The materials must be incorporated into real estate at a certified megaproject site, and the taxpayer must meet the project requirements. A sale cannot use this exemption if it qualifies for certain other project tax breaks. If the taxpayer fails to comply, the Department must revoke the certification, and the taxpayer must repay taxes exempted on purchases made during the noncompliance period. The Department may certify taxpayers for this exemption until January 1, 2032. An initial certificate may last up to 10 years and may be renewed for up to 5 years.

A public corporation’s authority to levy taxes for bond payments would end when the debt is paid or the bond matures, whichever comes first. This applies to taxes levied by a public corporation to pay bonds or other debt. The rule would not impair a contract that exists when the Act takes effect. The tax-levy authority would end at the bond’s maturity or when the debt is discharged, whichever happens first.

Bond questions initiated by a local government would go to voters only at general elections. This applies to public questions initiated by a political subdivision asking voters to approve issuing bonds. The general-election requirement would apply whenever a local government puts a bond question to voters.