SB2857 Summary: Megaproject Assessment Freeze and Payment Law

• Establishes the "Megaproject Assessment Freeze and Payment Law" allowing the Department of Commerce and Economic Opportunity to certify projects meeting minimum $100 million investment and 100 new full-time job creation requirements for property tax assessment freezes.

• Freezes assessed property values at base year levels during the incentive period (7-10 years initially, extendable to 40 years) while companies pay annual special payments negotiated with local municipalities and taxing districts instead of increased property taxes.

• Requires megaproject companies to enter into incentive agreements with local municipalities and taxing districts, execute project labor agreements with building trades councils, and establish goals to award 20% of project contracts to minority-owned businesses.

• Exempts qualified tangible personal property used in megaproject construction from Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act imposed across Illinois.

• Prohibits megaproject assessment freezes for sports stadiums unless General Assembly approves by joint resolution and prohibits freezes for projects located in Tax Increment Financing districts; effective June 1, 2024.