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HB 5470

DCEO-VARIOUS

104th Regular Session Introduced by Sharon Chung and 6 co-sponsors

Extends key tax credits and creates a new Clean Water Workforce Pipeline Program to train and place 300+ individuals in water sector jobs annually, prioritizing underserved communi

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Bill Summary · HB 5470

Overview

HB5470 (Illinois, 104th General Assembly) introduces a package of reforms and extensions across multiple programs tied to the Department of Commerce and Economic Opportunity (DCEO), tax credits, and specific industry initiatives. The bill’s immediate effect includes repealing a website reporting requirement by July 1, 2026, shifting certain annual reporting deadlines, updating governance for the Southeastern Illinois Economic Development Authority, extending several tax credits, and creating a Clean Water Workforce Pipeline Program. It also makes a broad set of cross-references to other statutes and Acts listed in the bill text.

Key Provisions and Changes

  • Public-facing economic benefits website requirement (repeal): Repeals the mandate that DCEO’s official website contain a comprehensive, county-by-county list of economic benefits, effective July 1, 2026.

  • Annual reporting timelines (adjusted):

    • Shifts certain annual reports to be due by January 31 (instead of January 1) of each year. Reports affected include those on entrepreneurial assistance centers, the Enterprise Zone Loan Fund, the Large Business Attraction Fund, and cannabis social equity-related matters.

  • Southeastern Illinois Economic Development Authority Act: Makes changes to the Authority’s board membership (details not specified in the excerpt).

  • Tax credits – sunset extensions (Income Tax Act):

    • Extends the sunset dates for several key tax credits, including:
    • Apprenticeship education expense tax credit
    • Research and development tax credit
    • Angel investment tax credit
    • River Edge Redevelopment Zone tax credit
    • The extension is described as “effective immediately” in the act’s language, subject to future appropriations and program rules.

  • Water infrastructure workforce program (New program):

    • Creates the Clean Water Workforce Pipeline Program (subject to appropriation) to fund grants and other assistance to prepare and place individuals in water infrastructure careers.
    • Prioritized populations: environmental justice communities, economically and socially disadvantaged communities, those returning from the justice system, foster care alumni, and especially women and transgender individuals.
    • Activities funded include: recruitment, training, counseling, transportation assistance, placement services, and administrative support for organizations delivering training.
    • Goal: train and place at least 300 individuals (or 25% of annual state-financed water infrastructure jobs, whichever is greater) in water sector apprenticeships each year among targeted populations.
    • Coordination with IEPA, IFA, and other agencies to align with state water projects. Creation of a program administrator through a competitive process and annual reporting to the General Assembly.

  • Enterprise Zone and River Edge-related tax credits (Tax Code changes):

    • Continues and clarifies multiple credits tied to Enterprise Zones and River Edge Redevelopment Zones, including: investment credits (subsections f, h, and related provisions), construction jobs credits, and related ranges of eligibility and carryforward rules.
    • Maintains caps and sequencing rules for credits and allows carryforwards under specified conditions.

  • High Impact Business and related construction credits (Tax Code):

    • Continues credits for High Impact Businesses and construction-related credits with alignment to enterprise zones and zones in law.
    • Extends applicability and carryforward provisions and clarifies interaction with other credits (Section 251 treatment post-2023 for passthrough entities).

  • Personal Property Tax Replacement Income Tax (and related rates):

    • The bill references ongoing framework for the personal property tax replacement income tax, including rate structures and adjustments for various taxpayer types (corporations, partnerships, and trusts). The text includes historical rate structures and carryforward mechanics related to credits.

  • Administrative preemption on home rule (Power to tax for electricity):

    • Repeals on January 1, 2033, a home-rule preemption section that restricts local units from imposing new taxes or fees specifically related to electricity generation or emissions after the act’s effective date. This is a scheduled repeal in 2028-2033 window context.

  • At-risk women’s program and related acts (cross-references):

    • Various cross-references to existing acts (Opportunities for At-Risk Women Act, Urban Weatherization Initiative) are updated in line with the broader bill package.

Who/What Is Affected

  • State agencies and programs:

    • Department of Commerce and Economic Opportunity (DCEO) — administrative changes, website reporting repeal, annual plan and report timing.
    • Southeastern Illinois Economic Development Authority — governance changes.
    • Illinois Environmental Protection Agency (IEPA) and Illinois Finance Authority (IFA) — coordination for the Clean Water Workforce Pipeline Program.

  • Taxpayers and businesses:

    • Individual and corporate taxpayers eligible for extended or continued tax credits (apprenticeship, research and development, angel investment, River Edge, Enterprise Zone, High Impact Business, construction jobs, and related credits).
    • Pass-through entities and S corporations — treatment changes post-2023 for some credits (Section 251 alignment).
    • Entities receiving benefits under Enterprise Zone and River Edge programs — investment and construction credits.

  • Workforce and communities:

    • Targeted populations for the new Clean Water Workforce Pipeline Program (environmental justice communities, disadvantaged groups, justice-system returnees, foster care alumni, women, and transgender individuals).

Procedural and Timeline Aspects

  • Effective date: Immediate for the tax-extension provisions and many changes; as described, several sections become effective promptly upon enactment.
  • Repeal date for the web-reporting requirement: July 1, 2026.
  • Public input and rulemaking timelines: The Clean Water Workforce Pipeline Program includes rulemaking steps aligned with the Illinois Administrative Procedure Act; initial planning steps and rule adoption are referenced, including opportunities for public comment and hearings.
  • Sunset/repeal references: Several sections reference sunset dates (e.g., home-rule preemption repeal window) or interaction with other Acts that specify ongoing program lifecycles, carryforwards, and caps.

If you’d like, I can provide a side-by-side comparison with current law or a bullet-point bill impact briefing focused on a particular stakeholder (e.g., small businesses, local governments, or environmental justice communities).

Compiled from official sources — confirm details with the bill’s official record.

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