The Illinois General Assembly gaveled out of session in the wee hours of October 31 after voting on a number of tax, energy, and workplace proposals during its fall veto session.

Taxes

• Chicago-Area Transit (SB 2111): After much pushback, the retail delivery tax, among others, was stripped from the Chicago-area transit bailout bill. The final proposal shifted money from statewide road projects to the Chicago-Area Transit system and authorized an additional .25% sales tax in the Regional Transit Authority (RTA) area. The bill also raised tolls ($0.45 for cars, 30% for trucks) to fund additional tollway infrastructure projects.
• Tax Changes (SB 1911): Legislators pushed through a tax omnibus bill that:
  • decoupled Illinois from the new federal bonus depreciation provisions passed by Congress this summer
  • made Illinois’ SALT Workaround provision permanent! (Read more about this key provision here. This was an important provision for businesses that file their federal taxes as pass-through entities.)

Energy

• Energy Policy (SB 25): The Illinois General Assembly pushed through a massive overhaul of Illinois’ energy market that grants state regulators more power to direct energy policy and development. The measure includes provisions that are problematic from a small business perspective and that could further exacerbate already high prices. These provisions include:
  • Substantial expansions of the project labor agreement (PLA) mandates,
    • decreasing competition and raising costs. SB 25 applies PLA mandates to battery storage projects, geothermal projects, and additional community solar projects. PLA mandates create undue burdens for small, merit-shop contractors seeking to compete for energy projects, raising building and development costs and decreasing the number of contractors available to bid for projects.
    • discriminating against non-union contractors and workers. PLA mandates effectively limit these contracts to union contractors and workers, boxing out non-union, merit contractors and their workers. All contractors—union or merit—should have the opportunity to compete fairly for energy projects.
  • Significant subsidies paid for by Illinois ratepayers. SB 25 extends ratepayer subsidies to battery storage projects and energy efficiency programs with no long-term guarantee of price savings for small-business ratepayers.

Workplace & Other Issues

• Surveillance Pricing (HB 220): A proposal to ban “surveillance data” in pricing decisions was halted in the House Labor Committee after unified opposition from the business community.
• Mediation Services & Prevailing Wage (HB 3005): The General Assembly passed legislation that 1) allows the Illinois Department of Labor, subject to appropriation, to create a Illinois Department of Labor mediation service for employers and labor groups and 2) states that prevailing wage mandates apply to “field mechanics, technicians, or similar position, including time spent transporting parts, materials, or equipment to and from a [public works] site, regardless of whether the person is employed by a contractor, subcontractor, seller, or supplies.” The proponents stated that the intent was to specify that prevailing wage rates were due when employees already subject to prevailing wage rates transported equipment and parts to a public works site.
• “Interested Parties” Right to Sue (SB 2339): A bill that grants so-called “interested parties” the right to sue employers under the Right to Privacy in the Workplace Act was passed late Thursday night. Under the legislation, “interested parties” do not need to suffer injury or harm to bring the lawsuit and recover legal costs/fees and a percentage of the civil penalties.
• Prevailing Wage Mandate on Private Projects that Receive TIF Funds (HB 3266): A last-minute push to apply Illinois’ prevailing wage mandates to private projects that receive TIF funds was held off and didn’t receive a vote.

The General Assembly is set to return to Springfield on January 13.