WeVote
Log In

Bill

Bill

SB 1514

REVENUE-MEGAPROJECT

104th Regular Session Introduced by Mark Walker

Authorizes targeted tax relief for megaprojects: sales/use tax exemptions on building materials, property tax freezes/abatements, with local agreements and DCEO certification.

Referred to Assignments
0
WeVote Research Nonpartisan
Bill Summary · SB 1514

SB 1514 — Revenue: Megaproject tax incentives (summary)

Note: the posted bill file appears to include text from multiple unrelated measures (including Arizona and Hawaii drafts). This summary focuses on the core “REVENUE‑MEGAPROJECT” provisions that amend Illinois tax and property laws (the bill’s primary subject in the provided material).

Purpose / intent

Authorize targeted state and local tax relief and property‑tax treatment for qualifying large development projects (“megaprojects”) to lower construction costs, encourage investment and job creation, and create a framework for special payments/agreements with local taxing districts.

Key provisions

  • Department certification for sales/use tax exemption

    • The Illinois Department of Commerce and Economic Opportunity (DCEO) may certify a taxpayer for an exemption from any State or local use tax or retailers’ occupation tax on building materials that will be incorporated into real estate at a certified “megaproject” site.
    • Certification is supplemental to (does not replace) the megaproject certificate under Division 22, Article 10 of the Property Tax Code; applicants must meet those Division 22 eligibility criteria.
    • The Department may not issue these exemptions after December 31, 2030.

  • Term and renewal

    • The Department sets the exemption period; the initial term may not exceed 10 years. Certificates may be renewed for terms not to exceed 5 years.
    • Upon DCEO certification, DCEO must notify the Department of Revenue; exemption status takes effect within 3 months after certification and notice.

  • Compliance and revocation

    • If DCEO finds noncompliance (through procedures under the Administrative Procedure Act), it may revoke the certification. Revocation requires notice and, if revoked, the taxpayer must repay any previously exempted amounts of State or local use tax or retailers’ occupation tax.

  • Tax‑code conforming changes

    • Amendments to the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers’ Occupation Tax Act allow a retailer that makes a “qualified sale” of building materials for a megaproject to deduct those receipts when calculating tax under those Acts.

  • Property tax / assessment rules

    • Adds a “Megaproject Assessment Freeze and Payment Law” to the Property Tax Code: defines “megaproject” by meeting specified investment and job‑creation thresholds (per Division 22); makes megaproject property eligible for an assessment freeze and potential abatement.
    • Operators of certified megaprojects must enter agreements with the host municipality and other local taxing districts to make specified special payments (terms not detailed in the excerpt).

  • Administration

    • DCEO may adopt rules necessary to implement the exemption program.

Who is affected

  • Eligible developers/operators of large “megaprojects” (construction cost/investment and job thresholds apply).
  • Suppliers and retailers of building materials (can make tax‑exempt sales or claim deductions for qualified sales).
  • Municipalities and local taxing districts (may see reduced tax receipts but can negotiate special payments; assessment freezes/abatements affect property tax revenues).
  • Illinois Department of Commerce and Economic Opportunity and Department of Revenue (administration, certification, enforcement).

Timing / procedural notes

  • Effective date stated as July 1, 2025.
  • DCEO may not issue new exemptions after December 31, 2030.
  • Certification takes effect within three months after DCEO certification and notice to the Department of Revenue.
  • Revocation and enforcement follow the Administrative Procedure Act.

If you want, I can:
- Extract or compare the specific Division 22, Article 10 eligibility thresholds referenced (investment and job numbers), or
- Draft a short fiscal‑impact checklist (stakeholders, revenue exposure, likely negotiation points for municipalities).

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

Sign in to ask a question.