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1 | | tax credit against the tax imposed by subsections (a) and (b) |
2 | | of Section 201 in an amount equal to 25% of qualified |
3 | | expenditures incurred by a qualified taxpayer during the |
4 | | taxable year in the restoration and preservation of a qualified |
5 | | historic structure located in a River Edge Redevelopment Zone |
6 | | pursuant to a qualified rehabilitation plan, provided that the |
7 | | total amount of such expenditures (i) must equal $5,000 or more |
8 | | and (ii) must exceed 50% of the purchase price of the property. |
9 | | (b) To obtain a tax credit pursuant to this Section, the |
10 | | taxpayer must apply with the Department of Commerce and |
11 | | Economic Opportunity. The Department of Commerce and Economic |
12 | | Opportunity, in consultation with the Historic Preservation |
13 | | Agency, shall determine the amount of eligible rehabilitation |
14 | | costs and expenses. The Historic Preservation Agency shall |
15 | | determine whether the rehabilitation is consistent with the |
16 | | standards of the Secretary of the United States Department of |
17 | | the Interior for rehabilitation. Upon completion and review of |
18 | | the project, the Department of Commerce and Economic |
19 | | Opportunity shall issue a certificate in the amount of the |
20 | | eligible credits. At the time the certificate is issued, an |
21 | | issuance fee up to the maximum amount of 2% of the amount of |
22 | | the credits issued by the certificate may be collected from the |
23 | | applicant to administer the provisions of this Section. If |
24 | | collected, this issuance fee shall be deposited into the |
25 | | Historic Property Administrative Fund, a special fund created |
26 | | in the State treasury. Subject to appropriation, moneys in the |
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1 | | Historic Property Administrative Fund shall be evenly divided |
2 | | between the Department of Commerce and Economic Opportunity and |
3 | | the Historic Preservation Agency to reimburse the Department of |
4 | | Commerce and Economic Opportunity and the Historic |
5 | | Preservation Agency for the costs associated with |
6 | | administering this Section. The taxpayer must attach the |
7 | | certificate to the tax return on which the credits are to be |
8 | | claimed. The Department of Commerce and Economic Opportunity |
9 | | may adopt rules to implement this Section. |
10 | | (c) The tax credit under this Section may not reduce the |
11 | | taxpayer's liability to less than
zero. |
12 | | (d) As used in this Section, the following terms have the |
13 | | following meanings. |
14 | | "Qualified expenditure" means all the costs and expenses |
15 | | defined as qualified rehabilitation expenditures under Section |
16 | | 47 of the federal Internal Revenue Code that were incurred in |
17 | | connection with a qualified historic structure. |
18 | | "Qualified historic structure" means a certified historic |
19 | | structure as defined under Section 47 (c)(3) of the federal |
20 | | Internal Revenue Code. |
21 | | "Qualified rehabilitation plan" means a project that is |
22 | | approved by the Historic Preservation Agency as being |
23 | | consistent with the standards in effect on the effective date |
24 | | of this amendatory Act of the 97th General Assembly for |
25 | | rehabilitation as adopted by the federal Secretary of the |
26 | | Interior. |
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1 | | "Qualified taxpayer" means the owner of the qualified |
2 | | historic structure or any other person who qualifies for the |
3 | | federal rehabilitation credit allowed by Section 47 of the |
4 | | federal Internal Revenue Code with respect to that qualified |
5 | | historic structure. Partners, shareholders of subchapter S |
6 | | corporations, and owners of limited liability companies (if the |
7 | | limited liability company is treated as a partnership for |
8 | | purposes of federal and State income taxation) are entitled to |
9 | | a credit under this Section to be determined in accordance with |
10 | | the determination of income and distributive share of income |
11 | | under Sections 702 and 703 and subchapter S of the Internal |
12 | | Revenue Code, provided that credits granted to a partnership, a |
13 | | limited liability company taxed as a partnership, or other |
14 | | multiple owners of property shall be passed through to the |
15 | | partners, members, or owners respectively on a pro rata basis |
16 | | or pursuant to an executed agreement among the partners, |
17 | | members, or owners documenting any alternate distribution |
18 | | method.
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19 | | Section 15. The River Edge Redevelopment Zone Act is |
20 | | amended by changing Sections 10-2 and 10-5.3 as follows:
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21 | | (65 ILCS 115/10-2)
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22 | | Sec. 10-2. Findings. The General Assembly finds and |
23 | | declares that those municipalities adjacent to or surrounding |
24 | | river areas often lack critical tools to safely revive and |
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1 | | redevelop environmentally-challenged properties that will |
2 | | stimulate economic revitalization and create jobs in Illinois. |
3 | | Environmentally-challenged properties adjacent to or |
4 | | surrounding Illinois rivers are a threat to the health, safety, |
5 | | and welfare of the people of this State. Many of these |
6 | | environmentally-challenged properties adjacent to or |
7 | | surrounding rivers were former industrial areas that now, |
8 | | subject to appropriate environmental clean-up and remediation, |
9 | | would be ideal for office, residential, retail, hospitality, |
10 | | commercial, recreational, warehouse and distribution, and |
11 | | other economically productive uses. The cost of the cleaning |
12 | | and remediation of these environmentally-challenged properties |
13 | | is often the primary obstacle to returning these properties to |
14 | | a safe and economically productive use. |
15 | | Cooperative and continuous partnership among the State, |
16 | | through the Department of Commerce and Economic Opportunity and |
17 | | the Environmental Protection Agency, municipalities adjacent |
18 | | to or surrounding rivers, and the private sector is necessary |
19 | | to appropriately encourage the cost-effective cleaning and |
20 | | remediation of these environmentally-challenged properties in |
21 | | order to bring about a safe and economically productive use of |
22 | | the properties. |
23 | | Therefore, it is declared to be the purpose of this Act to |
24 | | identify and initiate 3 pilot River Edge Redevelopment Zones to |
25 | | stimulate the safe and cost-effective re-use of |
26 | | environmentally-challenged properties adjacent to or |
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1 | | surrounding rivers by means of tax incentives or grants. On or |
2 | | after the effective date of this amendatory Act of the 97th |
3 | | General Assembly, the Department may certify an additional |
4 | | pilot River Edge Redevelopment Zone in the City of Peoria.
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5 | | (Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
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6 | | (65 ILCS 115/10-5.3)
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7 | | Sec. 10-5.3. Certification of River Edge Redevelopment |
8 | | Zones. |
9 | | (a) Approval of designated River Edge Redevelopment Zones |
10 | | shall be made by the Department by certification of the |
11 | | designating ordinance. The Department shall promptly issue a |
12 | | certificate for each zone upon its approval. The certificate |
13 | | shall be signed by the Director of the Department, shall make |
14 | | specific reference to the designating ordinance, which shall be |
15 | | attached thereto, and shall be filed in the office of the |
16 | | Secretary of State. A certified copy of the River Edge |
17 | | Redevelopment Zone Certificate, or a duplicate original |
18 | | thereof, shall be recorded in the office of the recorder of |
19 | | deeds of the county in which the River Edge Redevelopment Zone |
20 | | lies. |
21 | | (b) A River Edge Redevelopment Zone shall be effective upon |
22 | | its certification. The Department shall transmit a copy of the |
23 | | certification to the Department of Revenue, and to the |
24 | | designating municipality.
Upon certification of a River Edge |
25 | | Redevelopment Zone, the terms and provisions of the designating |
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1 | | ordinance shall be in effect, and may not be amended or |
2 | | repealed except in accordance with Section 10-5.4. |
3 | | (c) A River Edge Redevelopment Zone shall be in effect for |
4 | | the period stated in the certificate, which shall in no event |
5 | | exceed 30 calendar years. Zones shall terminate at midnight of |
6 | | December 31 of the final calendar year of the certified term, |
7 | | except as provided in Section 10-5.4. |
8 | | (d) In calendar years 2006 and 2007, the Department may |
9 | | certify one pilot River Edge Redevelopment Zone in the City of |
10 | | East St. Louis, one pilot River Edge Redevelopment Zone in the |
11 | | City of Rockford, and one pilot River Edge Redevelopment Zone |
12 | | in the City of Aurora. |
13 | | In calendar year 2009, the Department may certify one pilot |
14 | | River Edge Redevelopment Zone in the City of Elgin. |
15 | | On or after the effective date of this amendatory Act of |
16 | | the 97th General Assembly, the Department may certify one |
17 | | additional pilot River Edge Redevelopment Zone in the City of |
18 | | Peoria. |
19 | | Thereafter the Department may not certify any additional |
20 | | River Edge Redevelopment Zones, but may amend and rescind |
21 | | certifications of existing River Edge Redevelopment Zones in |
22 | | accordance with Section 10-5.4. |
23 | | (e) A municipality in which a River Edge Redevelopment Zone |
24 | | has been certified must submit to the Department, within 60 |
25 | | days after the certification, a plan for encouraging the |
26 | | participation by minority persons, females, persons with |
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1 | | disabilities, and veterans in the zone. The Department may |
2 | | assist the municipality in developing and implementing the |
3 | | plan. The terms "minority person", "female", and "person with a |
4 | | disability" have the meanings set forth under Section 2 of the |
5 | | Business Enterprise for Minorities, Females, and Persons with |
6 | | Disabilities Act. "Veteran" means an Illinois resident who is a |
7 | | veteran as defined in subsection (h) of Section 1491 of Title |
8 | | 10 of the United States Code.
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9 | | (Source: P.A. 96-37, eff. 7-13-09.)
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10 | | Section 99. Effective date. This Act takes effect upon |
11 | | becoming law.".
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