Bill Text: IL HB5434 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for qualified landlords. Provides that the term "qualified landlord" means an individual, partnership, trust, or corporation that incurred rental income losses from residential rental property as a result of the COVID-19 eviction moratorium and (1) owns fewer than 7 residential rental units in the State; or (2) actively maintains at least 25% of its rental units as affordable housing. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-31 - Referred to Rules Committee [HB5434 Detail]

Download: Illinois-2021-HB5434-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5434

Introduced , by Rep. Deanne M. Mazzochi

SYNOPSIS AS INTRODUCED:
35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for qualified landlords. Provides that the term "qualified landlord" means an individual, partnership, trust, or corporation that incurred rental income losses from residential rental property as a result of the COVID-19 eviction moratorium and (1) owns fewer than 7 residential rental units in the State; or (2) actively maintains at least 25% of its rental units as affordable housing. Effective immediately.
LRB102 23464 HLH 32639 b

A BILL FOR

HB5434LRB102 23464 HLH 32639 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5adding Section 232 as follows:
6 (35 ILCS 5/232 new)
7 Sec. 232. Landlord credit.
8 (a) For taxable years beginning on or after January 1,
92022 and beginning prior to January 1, 2023, each qualified
10landlord is entitled to a credit against the taxes imposed
11under subsections (a) and (b) of Section 201 in an amount equal
12to the lesser of: (1) actual rental income lost by the taxpayer
13due an eviction moratorium in effect as a result of the
14COVID-19 pandemic; or (2) $50,000.
15 (b) In no event shall a credit under this Section reduce
16the taxpayer's liability to less than zero. If the amount of
17the credit exceeds the tax liability for the year, the excess
18may be carried forward and applied to the tax liability of the
195 taxable years following the excess credit year. The tax
20credit shall be applied to the earliest year for which there is
21a tax liability. If there are credits for more than one year
22that are available to offset a liability, the earlier credit
23shall be applied first.

HB5434- 2 -LRB102 23464 HLH 32639 b
1 (c) For partners, shareholders of Subchapter S
2corporations, and owners of limited liability companies, if
3the liability company is treated as a partnership for the
4purposes of federal and State income taxation, there shall be
5allowed a credit under this Section to be determined in
6accordance with the determination of income and distributive
7share of income under Sections 702 and 704 and Subchapter S of
8the Internal Revenue Code.
9 (d) Credits under this Section shall be awarded by the
10Illinois Housing Development Authority. Application shall be
11made in the form and manner required by the Illinois Housing
12Development Authority. In no event may the Illinois Housing
13Development Authority award more than $50,000,000 in credits
14in any taxable year. Credits shall be awarded on a
15first-come-first-served basis.
16 (e) As used in this Section:
17 "Qualified landlord" means an individual, partnership,
18trust, or corporation that incurred rental income losses from
19residential rental property as a result of the COVID-19
20eviction moratorium and (1) owns fewer than 7 residential
21rental units in the State; or (2) actively maintains at least
2225% of its rental units as affordable housing, as defined in 42
23U.S.C. 12745.
24 Section 99. Effective date. This Act takes effect upon
25becoming law.
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