Ill. Admin. Code tit. 14 § 521.110

Current through Register Vol. 48, No. 49, December 6, 2024

Section 521.110 - Noncompliance with Memorandum of Understanding

a) If the Department determines that a certified data center or data center tenant that has received a certificate of exemption or verification for credits under the Statute is not complying with the requirements of the MOU or all of the provisions of the Statute, the Director shall:

1) Notify a certified data center or data center tenant, in writing, that its certification of exemption is temporarily revoked, the date of revocation, the reason for the revocation, and the option to cure or seek a hearing contesting the revocation;

2) Temporarily suspend the exemption, except in instances of noncompliance where the number of employees in new full-time equivalent jobs temporarily falls below the required number. The data center must provide documentation to the Department sufficient to show current insufficient employment is temporary; and

3) Notify the Illinois Department of Revenue of the temporary suspension and the starting date.

b) Upon notice of noncompliance, the certified data center will have 30 days to either:

1) Cure the cause of the noncompliance and provide documentation sufficient to demonstrate the certified data center has cured the non-compliance, or

2) Request a hearing under Article 10 of the Illinois Administrative Procedure Act [5 ILCS 100 ].

c) If within the 30 days after receipt of the notice described in subsection (a)(1), the certified data center provides documentation sufficient to demonstrate cure of the noncompliance, then the Director will inform the Illinois Department of Revenue of the date the temporary suspension is lifted.

d) If, after notice and any hearing, the Director determines that a noncompliance event exists, the Director shall issue to the Illinois Department of Revenue notice to that effect, stating the noncompliance date and requesting proceedings be initiated to recover wrongfully exempted State taxes or an erroneous refund, within the meaning of the Illinois Income Tax Act.

e) If a certified data center neither cures the cause of noncompliance nor requests a hearing within the prescribed period, the temporary suspension shall become permanent and the Director shall notify the Department of Revenue of the permanent revocation and request proceedings be initiated to recover wrongfully exempted State taxes or an erroneous refund, within the meaning of the Illinois Income Tax Act.

f) Alleged noncompliance shall include, but is not limited to, the following:

1) a demonstration that the certified data center or data center tenant failed materially to comply with the terms and conditions of the MOU;

2) a determination, upon investigation, that the certified data center or data center tenants, or any of their agents or representatives, provided false or misleading information to the Department; or

3) a failure to submit annual reports as required by the MOU.

Ill. Admin. Code tit. 14, § 521.110

Adopted at 47 Ill. Reg. 89, effective 12/22/2022.