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

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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

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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
HB5434 LRB102 23464 HLH 32639 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Landlord credit.
(a) For taxable years beginning on or after January 1,
2022 and beginning prior to January 1, 2023, each qualified
landlord is entitled to a credit against the taxes imposed
under subsections (a) and (b) of Section 201 in an amount equal
to the lesser of: (1) actual rental income lost by the taxpayer
due an eviction moratorium in effect as a result of the
COVID-19 pandemic; or (2) $50,000.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.

HB5434 - 2 - LRB102 23464 HLH 32639 b
(c) For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for the
purposes of federal and State income taxation, there shall be
allowed a credit under this Section to be determined in
accordance with the determination of income and distributive
share of income under Sections 702 and 704 and Subchapter S of
the Internal Revenue Code.
(d) Credits under this Section shall be awarded by the
Illinois Housing Development Authority. Application shall be
made in the form and manner required by the Illinois Housing
Development Authority. In no event may the Illinois Housing
Development Authority award more than $50,000,000 in credits
in any taxable year. Credits shall be awarded on a
first-come-first-served basis.
(e) As used in this Section:
"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, as defined in 42
U.S.C. 12745.
Section 99. Effective date. This Act takes effect upon
becoming law.