Bill Text: IL SB1783 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Illinois Income Tax Act and the Illinois Insurance Code. Provides that all or a portion of the income tax credit awarded for the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone may instead be taken as a credit against privilege and retaliatory taxes paid under the Illinois Insurance Code. Provides that the Historic Preservation Agency may issue a certification to the taxpayer stating that, if the project is completed as proposed, the project will qualify for the credits. Contains provisions concerning transfers of credits. Provides that the credit may be carried forward. Provides that the credit shall be based on qualified expenditures incurred by a qualified taxpayer (currently, qualified expenditures incurred by a qualified taxpayer during the taxable year). Provides that the qualified expenditures must exceed the adjusted basis of the qualified historic structure on the first day the qualified rehabilitation plan begins (currently, 50% of the purchase price of the property). Provides that the rehabilitation must be approved by the Historic Preservation Agency and the National Park Service (currently, the Historic Preservation Agency only). Provides that the credit sunsets on December 31, 2021 (currently, December 31, 2017). Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 15-8)

Status: (Enrolled) 2017-08-18 - Added as Co-Sponsor Sen. James F. Clayborne, Jr. [SB1783 Detail]

Download: Illinois-2017-SB1783-Enrolled.html



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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
5changing Section 221 as follows:
6 (35 ILCS 5/221)
7 Sec. 221. Rehabilitation costs; qualified historic
8properties; River Edge Redevelopment Zone.
9 (a) For taxable years beginning on or after January 1, 2012
10and ending prior to January 1, 2022 January 1, 2018, there
11shall be allowed a tax credit against the tax imposed by
12subsections (a) and (b) of Section 201 in an amount equal to
1325% of qualified expenditures incurred by a qualified taxpayer
14during the taxable year in the restoration and preservation of
15a qualified historic structure located in a River Edge
16Redevelopment Zone pursuant to a qualified rehabilitation
17plan, provided that the total amount of such expenditures (i)
18must equal $5,000 or more and (ii) must exceed 50% of the
19purchase price of the property.
20 (b) To obtain a tax credit pursuant to this Section, the
21taxpayer must apply with the Department of Commerce and
22Economic Opportunity. The Department of Commerce and Economic
23Opportunity, in consultation with the Historic Preservation

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1Agency, shall determine the amount of eligible rehabilitation
2costs and expenses. The Historic Preservation Agency shall
3determine whether the rehabilitation is consistent with the
4standards of the Secretary of the United States Department of
5the Interior for rehabilitation. Upon completion and review of
6the project, the Department of Commerce and Economic
7Opportunity shall issue a certificate in the amount of the
8eligible credits. At the time the certificate is issued, an
9issuance fee up to the maximum amount of 2% of the amount of
10the credits issued by the certificate may be collected from the
11applicant to administer the provisions of this Section. If
12collected, this issuance fee shall be deposited into the
13Historic Property Administrative Fund, a special fund created
14in the State treasury. Subject to appropriation, moneys in the
15Historic Property Administrative Fund shall be evenly divided
16between the Department of Commerce and Economic Opportunity and
17the Historic Preservation Agency to reimburse the Department of
18Commerce and Economic Opportunity and the Historic
19Preservation Agency for the costs associated with
20administering this Section. The taxpayer must attach the
21certificate to the tax return on which the credits are to be
22claimed. The Department of Commerce and Economic Opportunity
23may adopt rules to implement this Section.
24 (c) The tax credit under this Section may not reduce the
25taxpayer's liability to less than zero.
26 (d) As used in this Section, the following terms have the

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1following meanings.
2 "Qualified expenditure" means all the costs and expenses
3defined as qualified rehabilitation expenditures under Section
447 of the federal Internal Revenue Code that were incurred in
5connection with a qualified historic structure.
6 "Qualified historic structure" means a certified historic
7structure as defined under Section 47 (c)(3) of the federal
8Internal Revenue Code.
9 "Qualified rehabilitation plan" means a project that is
10approved by the Historic Preservation Agency as being
11consistent with the standards in effect on the effective date
12of this amendatory Act of the 97th General Assembly for
13rehabilitation as adopted by the federal Secretary of the
14Interior.
15 "Qualified taxpayer" means the owner of the qualified
16historic structure or any other person who qualifies for the
17federal rehabilitation credit allowed by Section 47 of the
18federal Internal Revenue Code with respect to that qualified
19historic structure. Partners, shareholders of subchapter S
20corporations, and owners of limited liability companies (if the
21limited liability company is treated as a partnership for
22purposes of federal and State income taxation) are entitled to
23a credit under this Section to be determined in accordance with
24the determination of income and distributive share of income
25under Sections 702 and 703 and subchapter S of the Internal
26Revenue Code, provided that credits granted to a partnership, a

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1limited liability company taxed as a partnership, or other
2multiple owners of property shall be passed through to the
3partners, members, or owners respectively on a pro rata basis
4or pursuant to an executed agreement among the partners,
5members, or owners documenting any alternate distribution
6method.
7(Source: P.A. 99-914, eff. 12-20-16.)
8 Section 99. Effective date. This Act takes effect upon
9becoming law.
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