Sec. 531.60 - Qualified New Business Registration Guidelines

ยง 531.60. Qualified New Business Registration Guidelines

a) A business desiring registration shall submit an application to the Department in each taxable year for which the business desires registration. [35 ILCS 5/220(e)]

b) The Department may register the business only if the business satisfies all of the following conditions:

1) It has its principal place of business in this State;

2) At least 51% of the employees employed by the business are employed in this State;

3) It has the potential for increasing jobs in this State, increasing capital investment in this State, or both, as determined by the Department, and either of the following apply:

A) It is principally engaged in innovation in any of the following: manufacturing; biotechnology; nanotechnology; communications; agricultural sciences; clean energy creation or storage technology; processing or assembling products, including medical devices, pharmaceuticals, computer software, computer hardware, semiconductors, other innovative technology products, or other products that are produced using manufacturing methods that are enabled by applying proprietary technology; or providing services that are enabled by applying proprietary technology; or

B) It is undertaking pre-commercialization activity related to proprietary technology that includes conducting research, developing a new product or business process, or developing a service that is principally reliant on applying proprietary technology;

4) It is not principally engaged in real estate development; insurance; banking; lending; lobbying; political consulting; professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants; wholesale or retail trade; leisure; hospitality; transportation; or construction, except construction of power production plants that derive energy from a renewable energy resource, as defined in Section 1 of the Illinois Power Agency Act [20 ILCS 3855];

5) It has fewer than 100 employees at initial time of registration;

6) It has been in operation in Illinois for not more than 10 consecutive years prior to beginning of the year of certification;

7) It has received not more than:

A) $10,000,000 in aggregate investments; or

B) $4,000,000 in investments that qualified for tax credits; and

8) It agrees to maintain a minimum employment threshold in the State of Illinois for at least 3 years from the date of issuance of any tax credit certificate issued to a claimant with respect to that business. [35 ILCS 5/220(e)]

c) For purposes of subsection (b), the number of employees of a business shall be determined on a full-time equivalent basis.

(Amended at 42 Ill. Reg. 16493, effective August 21, 2018)

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