Bill
HB 2632
Extends public-works to projects funded by transferable Illinois tax credits, requiring prevailing wages for labor on these projects, affecting developers, investors, and workers.
Status: Introduced in 2025; Passed the Illinois House (2/20/2025); transmitted to the Senate; House Amendment 001 filed (3/13/2025). Current status reported: Rule 19(a) / Re‑referred to Rules Committee (4/11/2025).
Sponsor: Rep. Marcus C. Evans, Jr.
Purpose
- To classify certain projects funded (in whole or in part) by proceeds of transferable state tax credits as "public works" under the Illinois Prevailing Wage Act, thereby making prevailing‑wage requirements applicable to labor on those projects.
Key provisions
- Amends multiple sections of the Illinois Income Tax Act (sections cited in the bill: 35 ILCS 5/213, 5/214, 5/222, 5/223, 5/240) and the Prevailing Wage Act (820 ILCS 130/2).
- Adds language across several tax‑credit programs stating that projects funded wholly or partly by proceeds from tax credits that are sold, assigned, or otherwise transferred “shall be considered public works within the meaning of the Prevailing Wage Act.”
- Affects, among others, credits for: film production services, affordable housing donations, live theater production, certain hospital credits, and hydrogen fuel replacement tax credits (as those sections are amended or referenced in the bill text).
- Preserves or restates existing transfer windows for credits (e.g., transfers generally permitted within one year after the credit is awarded under the affected programs).
- House Amendment 001 refines the bill text for several sections (notably §§214, 223, 240) but retains the core change that transferred‑credit‑funded projects are public works.
- Some program‑specific provisions (present in the bill text) include fee requirements associated with film production credits that fund an Illinois Production Workforce Development Fund (e.g., fees equal to 2.5% and 0.25% of certain credit amounts), though the bill’s primary policy change is the prevailing‑wage classification.
Who is affected
- Developers, owners, contractors, subcontractors and workers on projects financed (wholly or in part) by proceeds from transferable Illinois tax credits.
- Purchasers/recipients of transferable credits (investors who buy tax credits to fund projects) because projects they finance would trigger prevailing‑wage obligations.
- State agencies that administer tax credits (Department of Commerce & Economic Opportunity, Department of Revenue) and agencies charged with enforcing prevailing wage rules (e.g., Department of Labor or other enforcement entities).
- Potentially impacts state and local budgets indirectly through project costs, and the market for purchasing/transferring credits.
Potential impacts
- Legal: Expands statutory scope of “public works” to include many private projects that are financed via tax‑credit transfers.
- Economic/Cost: Projects financed by transferred credits may face higher labor costs (prevailing wages, benefits, reporting and compliance), which could alter project feasibility, pricing, and investor demand for transferable credits.
- Administrative: Raises compliance and enforcement needs (wage determinations, payroll oversight, possible audits/penalties).
- Market behavior: May reduce the attractiveness of credit transfers or increase the price charged by developers/investors to cover higher labor costs.
Timing / Effective date
- The bill’s synopsis indicates provisions are to be effective immediately; specific effective dates are determined by the enacted language. Procedurally, the bill passed the House and is pending further action in the Senate and Rules Committee per the legislative history above.
Notes
- The bill text is substantial and applies across multiple credit programs; program‑specific administrative details (transfer mechanics, fees, certification steps) remain governed by each program’s statutes and implementing rules unless otherwise changed.
Compiled from official sources — confirm details with the bill’s official record.
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