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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||
5 | changing Section 221 as follows:
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6 | (35 ILCS 5/221) | ||||||||||||||||||||||||||
7 | Sec. 221. Rehabilitation costs; qualified historic | ||||||||||||||||||||||||||
8 | properties; River Edge Redevelopment Zone. | ||||||||||||||||||||||||||
9 | (a) For taxable years beginning on or after January 1, 2012 | ||||||||||||||||||||||||||
10 | and ending prior to January 1, 2023 January 1, 2022 , there | ||||||||||||||||||||||||||
11 | shall be allowed a tax credit against the tax imposed by (i) | ||||||||||||||||||||||||||
12 | subsections (a) and (b) of Section 201 of this Act and (ii) | ||||||||||||||||||||||||||
13 | taxes imposed under Sections 409, 413, 444, and 444.1 of the | ||||||||||||||||||||||||||
14 | Illinois Insurance Code in an aggregate amount equal to 25% of | ||||||||||||||||||||||||||
15 | qualified expenditures incurred by a qualified taxpayer during | ||||||||||||||||||||||||||
16 | the taxable year in the restoration and preservation of a | ||||||||||||||||||||||||||
17 | qualified historic structure located in a River Edge | ||||||||||||||||||||||||||
18 | Redevelopment Zone pursuant to a qualified rehabilitation | ||||||||||||||||||||||||||
19 | plan, provided that the total amount of such expenditures (i) | ||||||||||||||||||||||||||
20 | must equal $5,000 or more and (ii) must exceed the adjusted | ||||||||||||||||||||||||||
21 | basis of the qualified historic structure on the first day the | ||||||||||||||||||||||||||
22 | qualified rehabilitation plan begins. If the qualified | ||||||||||||||||||||||||||
23 | rehabilitation plan spans multiple years, the aggregate credit |
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1 | for the entire project shall be allowed in the last taxable | ||||||
2 | year. 50% of the purchase price of the property. | ||||||
3 | (b) To obtain a tax credit pursuant to this Section, the | ||||||
4 | taxpayer must apply with the Department of Commerce and | ||||||
5 | Economic Opportunity. The Department of Commerce and Economic | ||||||
6 | Opportunity, in consultation with the Historic Preservation | ||||||
7 | Agency, shall determine the amount of eligible rehabilitation | ||||||
8 | costs and expenses. The Historic Preservation Agency and the | ||||||
9 | National Park Service shall determine whether the | ||||||
10 | rehabilitation is consistent with the standards of the | ||||||
11 | Secretary of the United States Department of the Interior for | ||||||
12 | rehabilitation. The Historic Preservation Agency may, after | ||||||
13 | its approval of any plan of rehabilitation and prior to the | ||||||
14 | completion of any project, issue a certification to the | ||||||
15 | taxpayer stating that, if the project is completed as proposed, | ||||||
16 | the rehabilitation work will qualify for the credits. Upon | ||||||
17 | completion and review of the project, the Department of | ||||||
18 | Commerce and Economic Opportunity shall issue a certificate in | ||||||
19 | the amount of the eligible credits. At the time the certificate | ||||||
20 | is issued, an issuance fee up to the maximum amount of 2% of | ||||||
21 | the amount of the credits issued by the certificate may be | ||||||
22 | collected from the applicant to administer the provisions of | ||||||
23 | this Section. If collected, this issuance fee shall be | ||||||
24 | deposited into the Historic Property Administrative Fund, a | ||||||
25 | special fund created in the State treasury. Subject to | ||||||
26 | appropriation, moneys in the Historic Property Administrative |
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1 | Fund shall be evenly divided between the Department of Commerce | ||||||
2 | and Economic Opportunity and the Historic Preservation Agency | ||||||
3 | to reimburse the Department of Commerce and Economic | ||||||
4 | Opportunity and the Historic Preservation Agency for the costs | ||||||
5 | associated with administering this Section. The taxpayer must | ||||||
6 | attach the certificate to the tax return on which the credits | ||||||
7 | are to be claimed. The Department of Commerce and Economic | ||||||
8 | Opportunity may adopt rules to implement this Section. | ||||||
9 | (c) The tax credit under this Section may not reduce the | ||||||
10 | taxpayer's liability to less than
zero. The credit may not be | ||||||
11 | carried back. If the amount of the credit exceeds the tax | ||||||
12 | liability for the year, the excess may be carried forward and | ||||||
13 | applied to the tax liability of the 5 taxable years following | ||||||
14 | the excess credit year. The credit shall be applied to the | ||||||
15 | earliest year for which there is a tax liability. If there are | ||||||
16 | credits from more than one tax year that are available to | ||||||
17 | offset a liability, the earlier credit shall be applied first. | ||||||
18 | (c-5) Taxpayers who are eligible to claim the credit, | ||||||
19 | including without limitation, any partners, shareholders of | ||||||
20 | subchapter S corporations, and members who are eligible to | ||||||
21 | claim the credit as provided in the definition of "qualified | ||||||
22 | taxpayer" below, may transfer all or any portion of the credit | ||||||
23 | to any individual or entity, within one year after the credit | ||||||
24 | is awarded, in accordance with rules adopted by the Department | ||||||
25 | of Commerce and Economic Opportunity. Any transferee of all or | ||||||
26 | any portion of a credit shall have the right to claim the |
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1 | credit, carry the credit forward as described in subsection (c) | ||||||
2 | above, and allocate such credit to its partners, shareholders | ||||||
3 | of subchapter S corporations, and members (and also through | ||||||
4 | tiers of such entities) as described in the definition of | ||||||
5 | "qualified taxpayer" below, as if the transferee had been | ||||||
6 | originally issued such credit. The tax credit may not be | ||||||
7 | transferred more than once. Allocations of credits to partners, | ||||||
8 | shareholders of S corporations, members, or other owners | ||||||
9 | (including through tiers of such entities) as described in the | ||||||
10 | definition of "qualified taxpayer" below shall not be | ||||||
11 | considered transfers under this subsection (c-5), and the | ||||||
12 | one-time transfer limitation set forth in the immediately | ||||||
13 | preceding sentence shall not apply to any such allocations. | ||||||
14 | (d) As used in this Section, the following terms have the | ||||||
15 | following meanings. | ||||||
16 | "Qualified expenditure" means all the costs and expenses | ||||||
17 | defined as qualified rehabilitation expenditures under Section | ||||||
18 | 47 of the federal Internal Revenue Code that were incurred in | ||||||
19 | connection with a qualified historic structure. | ||||||
20 | "Qualified historic structure" means a certified historic | ||||||
21 | structure as defined under Section 47(c)(3) of the federal | ||||||
22 | Internal Revenue Code. | ||||||
23 | "Qualified rehabilitation plan" means a project that is | ||||||
24 | approved by the Historic Preservation Agency and the National | ||||||
25 | Park Service as being consistent with the standards in effect | ||||||
26 | on the effective date of this amendatory Act of the 97th |
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1 | General Assembly for rehabilitation as adopted by the federal | ||||||
2 | Secretary of the Interior. | ||||||
3 | "Qualified taxpayer" means the owner of the qualified | ||||||
4 | historic structure or any other person who qualifies for the | ||||||
5 | federal rehabilitation credit allowed by Section 47 of the | ||||||
6 | federal Internal Revenue Code with respect to that qualified | ||||||
7 | historic structure. Partners, shareholders of subchapter S | ||||||
8 | corporations, and owners of limited liability companies (if the | ||||||
9 | limited liability company is treated as a partnership for | ||||||
10 | purposes of federal and State income taxation) are entitled to | ||||||
11 | a credit under this Section to be determined in accordance with | ||||||
12 | the determination of income and distributive share of income | ||||||
13 | under Sections 702 and 703 and subchapter S of the Internal | ||||||
14 | Revenue Code, provided that credits granted to a partnership, a | ||||||
15 | limited liability company taxed as a partnership, or other | ||||||
16 | multiple owners of property shall be passed through to the | ||||||
17 | partners, members, or owners respectively (and shall be passed | ||||||
18 | through more than once in the case of tiers of such entities) | ||||||
19 | on a pro rata basis or pursuant to an executed agreement among | ||||||
20 | the partners, members, or owners documenting any alternate | ||||||
21 | distribution method (which need not be on a pro-rata basis) .
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22 | (Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)
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23 | Section 10. The Illinois Insurance Code is amended by | ||||||
24 | adding Section 409.1 as follows:
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1 | (215 ILCS 5/409.1 new) | ||||||
2 | Sec. 409.1. River Edge Redevelopment Zone Rehabilitation | ||||||
3 | credit. For taxes payable after January 1, 2018, credits may be | ||||||
4 | granted against the taxes imposed under Section 409, 413, 444, | ||||||
5 | and 444.1 of this Act as provided in Section 221 of the | ||||||
6 | Illinois Income Tax Act.
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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