Bill Text: IL SB2445 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against (i) State income taxes and (ii) any privilege tax or retaliatory tax, penalty, fee, charge, or payment imposed under the Illinois Insurance Code. Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall develop a form and include it with certain financing agreements. Amends the Retailers' Occupation Tax Act. Creates an exemption for building materials to be incorporated into an 100% affordable housing project by rehabilitation or new construction. Amends the Property Tax Code. Provides for a reduction in assessed value for affordable rental housing construction or rehabilitation. Amends the Affordable Housing Planning and Appeal Act. Provides that an affordable housing plan, or any revision thereof, shall not be adopted by a non-exempt local government until notice and opportunity for public hearing have first been afforded. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2021-07-16 - Senate Floor Amendment No. 2 Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB2445 Detail]

Download: Illinois-2021-SB2445-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB2445 Introduced 2/26/2021, by Sen. Mattie Hunter - Ann Gillespie - Sara Feigenholtz SYNOPSIS AS INTRODUCED:
New Act
20 ILCS 3805/13.1 new
35 ILCS 5/232 new
35 ILCS 120/5m new
35 ILCS 200/15-178 new
215 ILCS 5/409 from Ch. 73, par. 1021
215 ILCS 5/444 from Ch. 73, par. 1056
310 ILCS 67/15
310 ILCS 67/25
310 ILCS 67/50
310 ILCS 67/70 new
Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against (i) State income taxes and (ii) any privilege tax or retaliatory tax, penalty, fee, charge, or payment imposed under the Illinois Insurance Code. Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall develop a form and include it with certain financing agreements. Amends the Retailers' Occupation Tax Act. Creates an exemption for building materials to be incorporated into an 100% affordable housing project by rehabilitation or new construction. Amends the Property Tax Code. Provides for a reduction in assessed value for affordable rental housing construction or rehabilitation. Amends the Affordable Housing Planning and Appeal Act. Provides that an affordable housing plan, or any revision thereof, shall not be adopted by a non-exempt local government until notice and opportunity for public hearing have first been afforded. Makes other changes. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1. Build Illinois Homes Tax Credit Act
Section 1-1. Short title. This Act may be cited as the
Build Illinois Homes Tax Credit Act. References in this
Article to "this Act" mean this Article.
Section 1-5. Definitions. As used in this Act, unless the
context clearly requires otherwise:
"Allocation" means an award of tax credits to the owner of
a qualified development in any allocation round, to be claimed
ratably annually over the credit period.
"Allocation round" means all allocations by the Authority
of credits under this Act to qualified developments in any
calendar year.
"Allocation schedule certification" means the
certification issued by the owner of a qualified development
or its designee pursuant to subsection (d) of Section 1-10 of
this Act.
"Authority" means:
(1) the Illinois Housing Development Authority; or
(2) the City of Chicago Department of Housing.

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"Credit" means the credit allowed pursuant to this Act.
"Credit period" means the period of 10 taxable years
beginning with the taxable year in which a qualified
development is placed in service. If a qualified development
consists of more than one building, the qualified development
is deemed to be placed in service in the taxable year during
which the last building of the qualified development is placed
in service.
"Department" means the Department of Revenue.
"Federal tax credit" means the federal low-income housing
tax credit provided by Section 42 of the federal Internal
Revenue Code, including federal low-income housing tax credits
issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
"Qualified allocation plan" means the qualified allocation
plan adopted by the Authority pursuant to Section 42(m) of the
federal Internal Revenue Code of 1986.
"Qualified basis" means the qualified basis of the
qualified development as determined pursuant to Section 42 of
the federal Internal Revenue Code of 1986.
"Qualified development" means a qualified low-income
housing project, as that term is defined in Section 42 of the
federal Internal Revenue Code of 1986, that is located in the
State and is determined to be eligible for the federal tax
credit set forth in Section 42 of the Internal Revenue Code,
whether or not a federal tax credit is allocated with respect
to that qualified development.

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"Qualified taxpayer" means an individual, person, firm,
corporation, or other entity that owns an interest, direct or
indirect, in a qualified development and is subject to any or
all of the following: (i) the taxes imposed by the Illinois
Income Tax Act; or (ii) any privilege tax or retaliatory tax,
penalty, fee, charge or payment imposed by the Illinois
Insurance Code.
"State credit eligibility statement" means a statement
issued by the Authority under Section 1-7.
"State tax return" means the income tax return filed with
the Department or the privilege and retaliatory tax return
filed with the Department of Insurance, as applicable.
Section 1-7. State credit eligibility statements. A State
credit eligibility statement shall be issued by the Authority
with respect to each building within the qualified development
following construction or rehabilitation of the qualified
development certifying that each such building within that
qualified development qualifies for the credit and specifying:
(1) the calendar year in which the last building of
the qualified development was placed in service;
(2) the amount of the credit allowed for each year of
the credit period;
(3) the maximum qualified basis of the qualified
development taken into account in determining such annual
credit amount; and

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(4) a unique identification number for each State
credit eligibility statement issued.
The State credit eligibility statement shall be issued by
the Authority simultaneously with IRS Form 8609 if the
qualified development was also allocated federal tax credits.
The State credit eligibility statement shall include a
Section to be completed by the owner of the qualified
development annually for each year of the credit period
certifying that the qualified development was in conformance
with all compliance requirements. That certification shall be
filed with the project owner's State tax return annually of
each year of the credit period.
Section 1-10. Credit for low-income housing developments.
(a) The Authority shall include the credit in its annual
qualified allocation plan each year until expiration of this
Act. Each allocation round shall be simultaneous with
allocations of federal tax credits.
(b) For taxable years beginning on or after January 1,
2021, the Authority may allocate a credit to the owner of a
qualified development in any allocation round in an amount
determined by the Authority, subject to the following
guidelines:
(1) the Authority must find that the credit is
necessary for the financial feasibility of the qualified
development;

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(2) the aggregate sum of credits allocated to
qualified developments in any allocation round shall not
exceed $35,000,000, plus the amount of unallocated
credits, if any, from the preceding allocation round, plus
the amount of any credit recaptured or otherwise returned
to the Authority since the previous allocation round;
(3) of the $35,000,000 annual allocation: (i) 75.5% of
the available credits in each allocation round shall be
allocated by the Illinois Housing Development Authority,
plus any credits the Illinois Housing Development
Authority did not allocate from the previous allocation
round, plus the amount of any credits recaptured or
otherwise returned to the Illinois Housing Development
Authority since the previous allocation round; and (ii)
24.5% of the available credits in each allocation round
shall be allocated by the City of Chicago Department of
Housing, plus any credits the City of Chicago Department
of Housing did not allocate from the previous allocation
round, plus the amount of any credits recaptured or
otherwise returned to the City of Chicago Department of
Housing since the previous allocation round; and
(4) unless otherwise provided in this Act, or unless
the context clearly requires otherwise, the Authority must
determine eligibility for credits and allocate credits in
accordance with the standards and requirements set forth
in Section 42 of the federal Internal Revenue Code of

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1986.
(c) For tax years during the credit period, any qualified
taxpayer is allowed a credit as provided in this Act against
any or all of the following: (i) the taxes imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act; or (ii) any privilege tax or retaliatory tax,
penalty, fee, charge, or payment imposed under the Illinois
Insurance Code.
(d) If a taxpayer receiving an allocation of a credit is
(i) a corporation that has an election in effect under
Subchapter S of the federal Internal Revenue Code, (ii) a
partnership, or (iii) a limited liability company that is
taxed as a partnership, the credit provided under this Act may
be claimed by the shareholders of the corporation, the
partners of the partnership, or the members of the limited
liability company as such terms are defined under applicable
State law in the same manner as those shareholders, partners,
or members account for their proportionate shares of the
income or losses of the corporation, partnership, or limited
liability company, or as provided in the bylaws or other
executed agreement of the corporation, partnership, or limited
liability company. Credits granted to a partnership, a limited
liability company taxed as a partnership, or other multiple
owners of property shall be passed through to the partners,
members, or owners respectively on a pro rata basis or
pursuant to an executed agreement among the partners, members,

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or owners documenting any alternative distribution method. A
qualified taxpayer may claim a credit so long as its direct or
indirect interest in the qualified development is acquired
prior to the filing of its tax return claiming the credit. On
or before February 28th following each year of the credit
period, the owner must submit an allocation schedule
certification in an electronic format prescribed by the
Department and the Department of Insurance to the Department
and the Department of Insurance detailing the amount of credit
allocated to each qualified taxpayer for the applicable year
and whether each qualified taxpayer intends to apply the
credit to income tax or insurance premium tax, or the owner
must notify the Department and the Department of Insurance
that it has assigned the duty of the allocation schedule
certification to its designee who must provide such allocation
schedule certification to the Department and the Department of
Insurance by the deadline. Such allocation schedule
certification may be amended in the event the State credit
eligibility statement for a project is received after the
deadline for filing the allocation schedule certification. Any
such amendment shall be filed prior to any taxpayer attempting
to claim tax credits associated with the applicable State
credit eligibility statement. Each qualified taxpayer is
allowed to claim its allocated amount of credit subject to any
restrictions set forth in this Section.
(e) No credit may be allocated pursuant to this Act unless

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the qualified development is the subject of a recorded
restrictive covenant requiring the development to be
maintained and operated as a qualified development; this
requirement for a recorded restrictive covenant may be
satisfied by the agreement for an extended low-income housing
commitment required for the federal tax credits as defined in
Section 42(h)(6)(B) of the federal Internal Revenue Code of
1986.
(f) If, during a taxable year, there is a determination
that no recorded restrictive covenant meeting the requirements
of subsection (e) was in effect as of the beginning of that
year, such determination shall not apply to any period before
that year and subsection (e) shall be applied without regard
to that determination if the failure is corrected within one
year from the date of the determination.
(g) The credit amount may be taken against the taxes
imposed by the Illinois Income Tax Act for each taxable year of
the credit period. The credit amount may be taken against the
taxes, penalties, fees, charges, and payments imposed by the
Illinois Insurance Code for each reporting period in the
credit period. Any credit amount that exceeds the tax due for a
taxable year may be carried forward as a tax credit against
payments due for up to 5 taxable years following the tax year
to which the credit relates and must be applied first to the
earliest reporting periods possible. Credits that are not
claimed may not be refunded to the qualified taxpayer.

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(h) By January 15, 2022 and by January 15 of each year
thereafter, the Authority shall provide to the Department and
the Department of Insurance an electronic file containing all
data related to all State credit eligibility statements issued
during the preceding year in the manner and form as provided by
the Department.
Section 1-15. Recapture. If, under Section 42 of the
Internal Revenue Code of 1986, a portion of any federal tax
credit claimed with respect to a qualified development is
required to be recaptured during the first 10 years after a
project is placed in service, then the Authority shall provide
written notice, upon a form created by the Authority, to the
Department and the Department of Insurance of the amount to be
recaptured. The amount of credit subject to recapture shall be
proportionately equal to the amount of the qualified
development's federal tax credits which are subject to
recapture. The Department and the Department of Insurance, as
applicable, shall notify the qualified taxpayer that claimed
the credit of the amount recaptured, and the qualified
taxpayer subject to recapture shall increase the qualified
taxpayer's tax by the amount of any credit wrongfully claimed
in the tax year the qualified taxpayer is notified of the
recapture.
Section 1-20. Filing requirements. An owner of a qualified

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development that has received an allocation and each qualified
taxpayer claiming any portion of the credit must file with
their State tax returns a copy of the State credit eligibility
statement issued by the Authority for that qualified
development. A qualified taxpayer receiving an allocation of
credit through a pass-through entity shall attach to its State
tax return a copy of the Schedule K-1-P or other written
statement from the pass-through entity stating the portion of
the annual credit shown on the State credit eligibility
statement that is allocated to that partner, member or
shareholder for that taxable year. In addition, the owner of a
qualified development or its designee shall file a copy of the
allocation schedule certification prior to any tax return
being filed claiming a State credit for such qualified
development.
Section 1-25. Rules. The Illinois Housing Development
Authority, the Department, and the Department of Insurance, in
consultation with each other, shall adopt such rules as are
necessary to carry out their respective responsibilities under
this Act.
Section 1-30. Compliance monitoring. The Authority, in
consultation with the Department, shall monitor and oversee
compliance with the provisions of this Act and shall report
specific occurrences of noncompliance to the Department and

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the Department of Insurance.
Section 1-35. Report to the General Assembly.
(a) The Illinois Housing Development Authority and the
Chicago Department of Housing must, by December 31 of each
allocation year, provide a written report to the General
Assembly and must publish that report on their websites.
(b) The report shall:
(1) set forth the number of qualified developments
that have been allocated tax credits under this Act during
the allocation year and the total number of units
supported by each qualified development;
(2) describe each qualified development that has been
allocated tax credits under this Act including, without
limitation, the geographic location of the qualified
development, the household type and any specific
demographic information available about residents intended
to be served by the qualified development, the income
levels intended to be served by the qualified development,
and the rents or set-asides authorized for each qualified
development;
(3) provide housing market and demographic information
that demonstrates how the qualified developments supported
by the tax credits are addressing the need for affordable
housing within the communities they are intended to serve
as well as information about any remaining disparities in

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the affordability of housing within those communities; and
(4) provide information on the percentage of qualified
developments allocated credits that received incentive
scoring points in the qualified allocation plan as a
result of the general contractor, property manager,
architect, or sponsor being certified under the Business
Enterprise Program for Minorities, Females, and Persons
with a Disability.
Section 1-40. Exempt from automatic sunset. The credit
under this Act is exempt from the provisions of Section 250 of
the Illinois Income Tax Act.
Article 90. Amendatory Provisions
Section 90-5. The Illinois Housing Development Act is
amended by adding Section 13.1 as follows:
(20 ILCS 3805/13.1 new)
Sec. 13.1. Form for local agencies. The Authority shall
develop a form and include it with the final financing
agreement that summarizes the terms of the financing
agreement, which should include the following: the length of
the affordability period guaranteed under the financing
agreement; a legal description; if then available, the address
and property index numbers for all applicable property

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contemplated by the agreement; and any other information that
may be relevant for a local county assessor's office and local
county and municipal housing development authority to qualify
or evidence eligibility for an applicable reduction in the
assessed value of an affordable rental housing. This form may
vary by county only if the Authority deems necessary. The
nonprofit corporation, housing corporation, limited-profit
entity, developer, or other entity receiving financing or
other assistance under this Act shall file the form with the
local county assessor's office and, where applicable, the
local county and municipal housing authority for the county in
which the property is located. No fees shall be levied against
the nonprofit corporation, housing corporation, limited-profit
entity, developer, or other entity for filing the form with
the county assessor's office of local housing authority.
Section 90-10. The Illinois Income Tax Act is amended by
adding Section 232 as follows:
(35 ILCS 5/232 new)
Sec. 232. Build Illinois Homes Tax Credit Act.
(a) For taxable years beginning on or after January 1,
2022, any eligible taxpayer with respect to a credit awarded
in accordance with the Build Illinois Homes Tax Credit Act on
or after January 1, 2021 that is named on the allocation
schedule certification for a particular tax year is entitled

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to a credit against the taxes imposed by subsections (a) and
(b) of Section 201 as provided in the Build Illinois Homes Tax
Credit Act.
(b) The taxpayer shall attach a copy of the allocation
schedule certification and the State credit eligibility
certificate issued under the Build Illinois Homes Tax Credit
Act to the tax return on which the credits are to be claimed.
(c) If, during any taxable year, a taxpayer is notified of
a recapture of a credit previously claimed on a State income
tax return in accordance with the Build Illinois Homes Tax
Credit Act, the tax imposed under subsections (a) and (b) of
Section 201 for that taxpayer for that taxable year shall be
increased. The amount of the increase shall be determined by
(i) recomputing the Build Illinois Homes Tax Credit that would
have been allowed for the year in which the credit was
originally allowed by eliminating the recaptured amount from
such computation, and (ii) subtracting that recomputed credit
from the amount of credit previously allowed. No Build
Illinois Homes tax Credit shall be allowed with respect to any
credit subject to a recapture notice for any taxable year
ending after the issuance of a recapture notice.
(d) This Section is exempt from the provisions of Section
250.
Section 90-15. The Retailers' Occupation Tax Act is
amended by changing Section 5m as follows:

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(35 ILCS 120/5m new)
Sec. 5m. Building materials exemption; affordable housing.
(a) Beginning July 1, 2022, each retailer located within a
disproportionately impacted area who makes a qualified sale of
building materials to be incorporated into an 100% affordable
housing project by rehabilitation or new construction, may
deduct receipts from those sales when calculating the tax
imposed by this Act. For purposes of this Section, "qualified
sale" means a sale of building materials from a business
located in a disproportionately impacted area that will be
incorporated an 100% affordable housing project for which an
Affordable Housing Building Materials Exemption Certificate
has been issued to the purchaser by the Department. A
construction contractor or other entity shall not make
tax-free purchases unless it has an active exemption
certificate issued by the Department at the time of the
purchase.
(b) To document the exemption allowed under this Section,
the retailer must obtain from the purchaser the certification
required under subsection (c), which must contain the
Affordable Housing Building Materials Exemption Certificate
number issued to the purchaser by the Department. The
Department shall make the exemption certificates available
directly to each construction contractor or other entity. The
request for an Affordable Housing Building Materials Exemption

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Certificate from the Department must include the following
information:
(1) the name and address of the construction
contractor or other entity;
(2) the name and location or address of the 100%
affordable housing project;
(3) the estimated amount of the exemption for each
construction contractor or other entity for which a
request for exemption certificate is made, based on a
stated estimated average tax rate and the percentage of
the contract that consists of materials;
(4) the period of time over which supplies for the
project are expected to be purchased;
(5) statement demonstrating the commitment to provide
affordable units that will remain affordable 10 years
after being put into service; this statement must provide
evidence by a financing agreement with the State or unit
of local government, certification from a local housing
development authority, or other documentation as
determined by the Department; and
(6) other reasonable information as the Department may
require, including, but not limited to FEIN numbers, to
determine if the contractor or other entity, or any
partner, or a corporate officer, and in the case of a
limited liability company, any manager or member, of the
construction contractor or other entity, is or has been

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the owner, a partner, a corporate officer, and in the case
of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by
the Department.
The Department shall issue the Affordable Housing Building
Materials Exemption Certificate within 5 business days after
receipt of a request to the Department. This requirement does
not apply in circumstances where the Department, for
reasonable cause, is unable to issue the exemption certificate
within 5 business days. The Department may refuse to issue an
exemption certificate under this Section if the owner, any
partner, any corporate officer, or, in the case of a limited
liability company, any manager or member, of the construction
contractor or other entity is or has been the owner, a partner,
a corporate officer, or, in the case of a limited liability
company, a manager or member, of a person that is in default
for moneys due to the Department under this Act or any other
tax or fee Act administered by the Department.
The Department, in its discretion, may require that
requests for Affordable Housing Building Materials Exemption
Certificates be submitted electronically. The Department may,
in its discretion, issue exemption certificates
electronically. The Affordable Housing Building Materials
Exemption Certificate number shall be designed in such a way
that the Department can identify, from the unique number on

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the exemption certificate issued to a given construction
contractor or other entity, the project for which the
exemption certificate is issued and the construction
contractor or other entity to whom the exemption certificate
is issued. The exemption certificate shall contain an
expiration date, which shall be no more than 2 years after the
date of issuance. The Department may adopt rules allowing a
contractor or other entity to renew an exemption certificate.
A contractor or other entity may request that the Department
rescind an Affordable Housing Building Materials Exemption
Certificate previously issued by the Department that has not
yet expired.
If the Department determines that a construction
contractor or other entity that was issued an Affordable
Housing Building Materials Exemption Certificate made a
tax-exempt purchase, as described in this Section, that was
not eligible for exemption under this Section or allowed
another person to make a tax-exempt purchase, as described in
this Section, that was not eligible for exemption under this
Section, then, in addition to any tax or other penalty
imposed, the construction contractor or other entity is
subject to a penalty equal to the tax that would have been paid
by the retailer under this Act as well as any applicable local
retailers' occupation tax on the purchase that was not
eligible for the exemption. The Affordable Housing Building
Materials Exemption Certificate shall contain language stating

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that if the construction contractor or other entity who is
issued the exemption certificate makes a tax-exempt purchase,
as described in this Section, that is not eligible for
exemption under this Section or allows another person to make
a tax-exempt purchase, as described in this Section, that is
not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that is not eligible for the exemption.
(c) In addition, the retailer must obtain certification
from the purchaser that contains:
(1) a statement that the building materials are being
purchased for a 100% affordable housing project;
(2) the location or address of the real estate into
which the building materials will be incorporated;
(3) a description of the building materials being
purchased;
(4) the purchaser's Affordable Housing Building
Materials Exemption Certificate number issued by the
Department; and
(5) the purchaser's signature and date of purchase.
(d) The deduction allowed by this Section for the sale of
building materials may be limited, to the extent authorized by
ordinance adopted after the effective date of this amendatory

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Act of the 102nd General Assembly, by a municipality or county
located in a disproportionately impacted area into which the
building materials will be incorporated. The ordinance may
neither require nor prohibit the purchase of building
materials from any retailer or class of retailers in order to
qualify for the exemption allowed under this Section. The
provisions of this Section are exempt from Section 2-70.
(e) For the purposes of this Section, the following terms
have the same meanings given to those terms in the Illinois
Affordable Housing Act: "affordable housing"; "low-income
household"; and "very low-income household".
In addition, the following terms have the following
meanings:
"Disproportionately impacted area" means a census tract or
comparable geographic area that meets at least one of the
following criteria, as determined by the Department of
Commerce and Economic Opportunity:
(1) the area has a poverty rate of at least 20%
according to the latest federal decennial census; or
(2) 75% or more of the children in the area
participate in the federal free lunch program according to
reported statistics from the State Board of Education; or
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program; or
(4) the area has an average unemployment rate, as

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determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as
determined by the United States Department of Labor, for a
period of at least 2 consecutive calendar years preceding
the date of the application.
"One hundred percent affordable housing project" means a
residential housing project that, after rehabilitation or new
construction will lead to 100% of the units being utilized as
affordable housing units. These units must remain affordable
housing for 10 years commencing from the time a unit is put
into operation.
Section 90-20. The Property Tax Code is amended by adding
Section 15-178 as follows:
(35 ILCS 200/15-178 new)
Sec. 15-178. Reduction in assessed value for affordable
rental housing construction or rehabilitation.
(a) The General Assembly finds that there is a shortage of
high quality affordable rental homes for low-income and
very-low-income households throughout Illinois; that owners
and developers of rental housing face significant challenges
building newly constructed apartments or undertaking
rehabilitation of existing properties that results in rents
that are affordable for low-income and very-low-income
households; and that it will help Cook County and other parts

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of Illinois address the extreme shortage of affordable rental
housing by developing a Statewide policy to determine the
assessed value for newly constructed and rehabilitated
affordable rental housing that both encourages investment and
incentivizes property owners to keep rents affordable.
(b) Each chief county assessment officer shall implement
special assessment programs to reduce the assessed value of
all eligible newly-constructed residential real property or
qualifying rehabilitation to all eligible existing residential
real property in accordance with subsection (c) for 10 taxable
years after the newly constructed residential real property or
improvements to existing residential real property are put in
service. Any county with less than 3,000,000 inhabitants may
decide not to implement one or both of the special assessment
programs defined in in subparagraph (1) of subsection (c) of
this Section and subparagraph (2) of subsection (c) of this
Section upon passage of an ordinance by a majority vote of the
county board. Subsequent to a vote to opt-out of this special
assessment program, any county with less than 3,000,000
inhabitants may decide to implement one or both of the special
assessment programs defined in in subparagraph (1) of
subsection (c) of this Section and subparagraph (2) of
subsection (c) of this Section upon passage of an ordinance by
a majority vote of the county board. Property is eligible for
the special assessment program if and only if all of the
following factors have been met:

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(1) at the conclusion of the new construction or
qualifying rehabilitation, the property consists of a
newly-constructed multifamily building containing 7 or
more rental dwelling units or an existing multifamily
building that has undergone qualifying rehabilitation
resulting in 7 or more rental dwelling units; and
(2) the property meets the application requirements
defined in subsection (f).
(c) For those counties that are required to implement the
special assessment program and do not opt-out of such special
assessment program, the chief county assessment officer for
that county shall require that residential real property is
eligible for the special assessment program if and only if one
of the additional factors have been met:
(1) except as defined in subparagraphs (E), (F), and
(G) of paragraph (5) of subsection (f) of this Section,
prior to the newly-constructed residential real property
or improvements to existing residential real property
being put in service, the owner of the residential real
property commits that, for a period of 10 years, at least
15% of the multifamily building's units will have rents as
defined in this Section that are at or below maximum rents
and are occupied by households with household incomes at
or below maximum income limits; or
(2) except as defined in subparagraphs (E), (F), and
(G) of paragraph (5) of subsection (f) of this Section,

SB2445 - 24 - LRB102 17214 HLH 22672 b
prior to the newly constructed residential real property
located in a low affordability community being put in
service, the owner of the residential real property
commits that, for a period of 30 years after the newly
constructed residential real property or improvements to
existing residential real property are put in service, at
least 20% of the multifamily building's units will have
rents as defined in this Section that are at or below
maximum rents and are occupied by households with
household incomes at or below maximum income limits.
If a reduction in assessed value is granted under one
special assessment program provided for in this Section, then
that same residential real property is not eligible for an
additional special assessment program under this Section at
the same time.
(d) The amount of the reduction in assessed value for
residential real property meeting the conditions set forth in
subparagraph (1) of subsection (c) shall be calculated as
follows:
(1) if the owner of the residential real property
commits for a period of at least 10 years that at least 15%
but fewer than 35% of the multifamily building's units
have rents at or below maximum rents and are occupied by
households with household incomes at or below maximum
income limits, the assessed value of the property used to
calculate the tax bill shall be reduced by an amount equal

SB2445 - 25 - LRB102 17214 HLH 22672 b
to 25% of the assessed value of the property as determined
by the assessor for the property in the current taxable
year for the newly-constructed residential real property
or based on the improvements to an existing residential
real property; and
(2) if the owner of the residential real property
commits for a period of at least 10 years that at least 35%
of the multifamily building's units have rents at or below
maximum rents and are occupied by households with
household incomes at or below maximum income limits, the
assessed value of the property used to calculate the tax
bill shall be reduced by an amount equal to 35% of the
assessed value of the property as determined by the
assessor for the property in the current assessment year
for the newly constructed residential real property or
based on the improvements to an existing residential real
property.
(e) The amount of the reduction for residential real
property meeting the conditions set forth in subparagraph (2)
of subsection (c) shall be calculated as follows:
(1) for the first, second, and third taxable year
after the residential real property or improvements are
placed in service, the residential real property is
entitled to a reduction in its assessed value in an amount
equal to the difference between the assessed value in the
year for which the incentive is sought and the assessed

SB2445 - 26 - LRB102 17214 HLH 22672 b
value for the residential real property in the base year;
(2) for the fourth, fifth, and sixth taxable year
after the residential real property or improvements are
placed in service, the property is entitled to a reduction
in its assessed value in an amount equal to 80% of the
difference between the assessed value in the year for
which the incentive is sought and the assessed value for
the residential real property in the base year;
(3) for the seventh, eighth, and ninth taxable year
after the property or improvements are placed in service,
the residential real property is entitled to a reduction
in its assessed value in an amount equal to 60% of the
difference between the assessed value in the year for
which the incentive is sought and the assessed value for
the residential real property in the base year;
(4) for the tenth, eleventh, and twelfth taxable year
after the residential real property or improvements are
placed in service, the residential real property is
entitled to a reduction in its assessed value in an amount
equal to 40% of the difference between the assessed value
in the year for which the incentive is sought and the
assessed value for the residential real property in the
base year; and
(5) for the thirteenth through the thirtieth taxable
year after the residential real property or improvements
are placed in service, the residential real property is

SB2445 - 27 - LRB102 17214 HLH 22672 b
entitled to a reduction in its assessed value in an amount
equal to 20% of the difference between the assessed value
in the year for which the incentive is sought and the
assessed value for the residential real property in the
base year.
(f) Application requirements.
(1) In order to receive the reduced valuation under
this Section, the owner must submit an application
containing the following information to the chief county
assessment officer for review in the form and by the date
required by the chief county assessment officer:
(A) the owner's name;
(B) the postal address and permanent index number
or numbers of the parcel or parcels for which the owner
is applying to receive reduced valuation under this
Section;
(C) a deed or other instrument conveying the
parcel or parcels to the current owner;
(D) written evidence that the new construction or
qualifying rehabilitation has been completed with
respect to the residential real property, including,
but not limited to, copies of building permits, a
notarized contractor's sworn affidavit, and
photographs of the interior and exterior of the
building after new construction or rehabilitation is
completed;

SB2445 - 28 - LRB102 17214 HLH 22672 b
(E) written evidence that the residential real
property meets local building codes, or if there are
no local building codes, Housing Quality Standards, as
determined by the United States Department of Housing
and Urban Development;
(F) a list identifying the affordable units in
residential real property and a written statement that
the affordable units are comparable to the market rate
units in terms of unit type, number of bedrooms per
unit, quality of exterior appearance, energy
efficiency, and overall quality of construction;
(G) a written schedule certifying the rents in
each affordable unit and a written statement that
these rents do not exceed the maximum rents allowable
for the area in which the residential real property is
located;
(H) documentation from the administering agency
verifying the owner's participation in a qualifying
income-based rental subsidy program as defined in
subsection (e) of this Section if units receiving
rental subsidies are to be counted among the
affordable units in order to meet the thresholds
defined in this Section;
(I) a written statement identifying the household
income for every household occupying an affordable
unit and certifying that the household income does not

SB2445 - 29 - LRB102 17214 HLH 22672 b
exceed the maximum income limits allowable for the
area in which the residential real property is
located;
(J) a written statement that the owner has
verified and retained documentation of household
income for every household occupying an affordable
unit; and
(K) any additional information consistent with
this Section as reasonably required by the chief
county assessment officer, including, but not limited
to, any information necessary to ensure compliance
with applicable local ordinances and to ensure the
owner is complying with the provisions of subparagraph
(F) of paragraph (4) of subsection (d) of this
Section.
(2) The application requirements contained in
paragraph (1) of subsection (f) are continuing
requirements for the duration of the reduction in assessed
value received and may be annually or periodically
verified by the chief county assessment officer for the
county whereby the benefit is being issued.
(3) In lieu of submitting an application containing
the information prescribed in paragraph (1) of subsection
(f), the chief county assessment officer may allow for
submission of a substantially similar certification
granted by the Illinois Housing Development Authority or a

SB2445 - 30 - LRB102 17214 HLH 22672 b
comparable local authority provided that the chief county
assessment officer independently verifies the veracity of
the certification with the Illinois Housing Development
Authority or comparable local authority.
(4) The chief county assessment officer shall notify
the owner as to whether or not the property meets the
requirements of this Section. If the property does not
meet the requirements of this Section, the chief county
assessment officer shall provide written notice of any
deficiencies to the owner, who shall then have 30 days
from the date of notification to provide supplemental
information showing compliance with this Section. The
chief county assessment officer shall, in its discretion,
grant additional time to cure any deficiency. If the owner
does not exercise this right to cure the deficiency, or if
the information submitted, in the sole judgment of the
chief county assessment officer, is insufficient to meet
the requirements of this Section, the chief county
assessment officer shall provide a written explanation of
the reasons for denial.
(5) The chief county assessment officer may charge a
reasonable application fee to offset the administrative
expenses associated with the program.
(6) The reduced valuation conferred by this Section is
limited as follows:
(A) The owner is eligible to apply for the reduced

SB2445 - 31 - LRB102 17214 HLH 22672 b
valuation conferred by this Section beginning in the
first assessment year after the effective date of this
amendatory Act of the 102nd General Assembly through
December 31, 2031. If approved, the reduction will be
effective for the current assessment year, which will
be reflected in the tax bill issued in the following
calendar year. Owners that are approved for the
reduced valuation under this Section before December
31, 2031 shall, at minimum, be eligible for annual
renewal of the reduced valuation during an initial
10-year period if annual certification requirements
are met for each of the 10 years, as described in
subparagraph (B) of paragraph (4) of subsection (d) of
this Section until December 31, 2041.
(B) Property receiving a reduction outlined in
paragraph (1) of subsection (c) of this Section shall
continue to be eligible for an initial period of up to
10 years if annual certification requirements are met
for each of the 10 years, but shall be extended for up
to 2 additional 10-year periods with annual renewals
if the owner continues to meet the requirements of
this Section, including annual certifications, and
excluding the requirements regarding new construction
or qualifying rehabilitation defined in subparagraph
(D) of paragraph (1) of this subsection.
(C) The annual certification materials in the year

SB2445 - 32 - LRB102 17214 HLH 22672 b
prior to final year of eligibility for the reduction
in assessed value must include a dated copy of the
written notice provided to tenants informing them of
the date of the termination if the owner is not seeking
a renewal.
(D) If the property is sold or transferred, the
purchaser or transferee must comply with all
requirements of this Section, excluding the
requirements regarding new construction or qualifying
rehabilitation defined in subparagraph (D) of
paragraph (1) of this subsection, in order to continue
receiving the reduction in assessed value. Purchasers
and transferees who comply with all requirements of
this Section excluding the requirements regarding new
construction or qualifying rehabilitation defined in
subparagraph (D) of paragraph (1) of this subsection
are eligible to apply for renewal on the schedule set
by the initial application.
(E) The owner may apply for the reduced valuation
if the residential real property meets all
requirements of this Section and the newly-constructed
residential real property or improvements to existing
residential real property were put in service on or
after January 1, 2015. However, the initial 10-year
eligibility period shall be reduced by the number of
years between the placed in service date and the date

SB2445 - 33 - LRB102 17214 HLH 22672 b
the owner first receives this reduced valuation.
(F) The owner may apply for the reduced valuation
within 2 years after the newly-constructed residential
real property or improvements to existing residential
real property are put in service. However, the initial
10 year eligibility period shall be reduced for the
number of years between the placed in service date and
the date the owner first receives this reduced
valuation.
(G) Owners of a multifamily building receiving a
reduced valuation through the Cook County Class 9
program during the year in which this amendatory Act
of the 102nd General Assembly takes effect shall be
deemed automatically eligible for the reduced
valuation defined in this Section in terms of meeting
the criteria for new construction or substantial
rehabilitation for a specific multifamily building
regardless of when the newly-constructed residential
real property or improvements to existing residential
real property were put in service. If a Cook County
Class 9 owner had Class 9 status revoked on or after
January 1, 2017 but can provide documents sufficient
to prove that the revocation was in error or any
deficiencies leading to the revocation have been
cured, the chief county assessment officer may deem
the owner to be eligible. However, owners may not

SB2445 - 34 - LRB102 17214 HLH 22672 b
receive both the reduced valuation under this Section
and the reduced valuation under the Cook County Class
9 program in any single assessment year. In addition,
the number of years during which an owner has
participated in the Class 9 program shall count
against the 3 10-year periods of eligibility for the
reduced valuation as defined in subparagraph (1) of
subsection (c) of this Section.
(H) At the completion of the assessment reduction
period described in this Section, the entire parcel
will be assessed as otherwise provided by law.
(e) For the purposes of this Section,
"Affordable units" means units that have rents that do not
exceed the maximum rents as defined in this Section.
"Household income" includes the annual income for all the
people who occupy a housing unit that is anticipated to be
received from a source outside of the family during the
12-month period following admission or the annual
recertification, including related family members and all the
unrelated people who share the housing unit. Household income
includes the sum total of the following income sources: wages,
salaries and tips before any payroll deductions; net business
income; interest and dividends; payments in lieu of earnings,
such as unemployment and disability compensation, worker's
compensation and severance pay; Social Security income,
including lump sum payments; payments from insurance policies,

SB2445 - 35 - LRB102 17214 HLH 22672 b
annuities, pensions, disability benefits and other types of
periodic payments, alimony, child support, and other regular
monetary contributions; and public assistance, except for
assistance from the Supplemental Nutrition Assistance Program
(SNAP). "Household income" does not include: earnings of
children under age 18; temporary income such as cash gifts;
reimbursement for medical expenses; lump sums from
inheritance, insurance payments, settlements for personal or
property losses; student financial assistance paid directly to
the student or to an educational institution; foster child
care payments; receipts from government-funded training
programs; assistance from the Supplemental Nutrition
Assistance Program (SNAP).
"Low affordability community" means (1) a municipality or
jurisdiction in which 40% or less of its total year-round
housing units are affordable, as determined by the Illinois
Housing Development Authority during the exemption
determination process under the Affordable Housing Planning
and Appeal Act; or (2) a jurisdiction located in a
municipality with 1,000,000 or more inhabitants that has been
designated as a low affordability community by passage of a
local ordinance by that municipality, specifying the census
tract or property by permanent index number or numbers.
"Maximum income limits" means the maximum regular income
limits for 60% of area median income for the geographic area in
which the multifamily building is located for multifamily

SB2445 - 36 - LRB102 17214 HLH 22672 b
programs as determined by the United States Department of
Housing and Urban Development and published annually by the
Illinois Housing Development Authority.
"Maximum rent" means the maximum regular rent for 60% of
the area median income for the geographic area in which the
multifamily building is located for multifamily programs as
determined by the United States Department of Housing and
Urban Development and published annually by the Illinois
Housing Development Authority. To be eligible for the reduced
valuation defined in this Section, maximum rents are to be
consistent with the Illinois Housing Development Authority's
rules; or if the owner is leasing an affordable unit to a
household with an income at or below the maximum income limit
who is participating in qualifying income-based rental subsidy
program, "maximum rent" means the maximum rents allowable
under the guidelines of the qualifying income-based rental
subsidy program.
"Qualifying income-based rental subsidy program" means a
Housing Choice Voucher issued by a housing authority under
Section 8 of the United States Housing Act of 1937, a tenant
voucher converted to a project-based voucher by a housing
authority or any other program administered or funded by a
housing authority, the Illinois Housing Development Authority,
another State agency, a federal agency, or a unit of local
government where participation is limited to households with
incomes at or below the maximum income limits as defined in

SB2445 - 37 - LRB102 17214 HLH 22672 b
this Section and the tenants' portion of the rent payment is
based on a percentage of their income or a flat amount that
does not exceed the maximum rent as defined in this Section.
"Qualifying rehabilitation" means, at a minimum,
compliance with local building codes and the replacement or
renovation of at least 2 primary building systems to be
approved for the reduced valuation under paragraph (1) of
subsection (c) of this Section and at least 5 primary building
systems to be approved for the reduced valuation under
paragraph (2) of subsection (c) of this Section. Although the
cost of each primary building system may vary, to be approved
for the reduced valuation under paragraph (1) of subsection
(c) of this Section, the combined expenditure for making the
building compliant with local codes and replacing primary
building systems must be at least $8 per square foot for work
completed between January 1 of the year in which this
amendatory Act of the 102nd General Assembly takes effect and
December 31 of the year in which this amendatory Act of the
102nd General Assembly takes effect and, in subsequent years,
$8 adjusted by the Consumer Price Index for All Urban
Consumers, as published annually by the U.S. Department of
Labor. To be approved for the reduced valuation under
paragraph (2) of subsection (c) of this Section, the combined
expenditure for making the building compliant with local codes
and replacing primary building systems must be at least $60
per square foot for work completed between January 1 of the

SB2445 - 38 - LRB102 17214 HLH 22672 b
year that this amendatory Act of the 102nd General Assembly
becomes effective and December 31 of the year that this
amendatory Act of the 102nd General Assembly becomes effective
and, in subsequent years, $60 adjusted by the Consumer Price
Index for All Urban Consumers, as published annually by the
U.S. Department of Labor. "Primary building systems", together
with their related rehabilitations, specifically approved for
this program are:
(1) Electrical. All electrical work must comply with
applicable codes; it may consist of a combination of any
of the following alternatives:
(A) installing individual equipment and appliance
branch circuits as required by code (the minimum being
a kitchen appliance branch circuit);
(B) installing a new emergency service, including
emergency lighting with all associated conduits and
wiring;
(C) rewiring all existing feeder conduits ("home
runs") from the main switchgear to apartment area
distribution panels;
(D) installing new in-wall conduits for
receptacles, switches, appliances, equipment, and
fixtures;
(E) replacing power wiring for receptacles,
switches, appliances, equipment, and fixtures;
(F) installing new light fixtures throughout the

SB2445 - 39 - LRB102 17214 HLH 22672 b
building including closets and central areas;
(G) replacing, adding, or doing work as necessary
to bring all receptacles, switches, and other
electrical devices into code compliance;
(H) installing a new main service, including
conduit, cables into the building, and main disconnect
switch; and
(I) installing new distribution panels, including
all panel wiring, terminals, circuit breakers, and all
other panel devices.
(2) Heating. All heating work must comply with
applicable codes; it may consist of a combination of any
of the following alternatives:
(A) installing a new system to replace one of the
following heat distribution systems:
(i) piping and heat radiating units, including
new main line venting and radiator venting; or
(ii) duct work, diffusers, and cold air
returns; or
(iii) any other type of existing heat
distribution and radiation/diffusion components;
or
(B) installing a new system to replace one of the
following heat generating units:
(i) hot water/steam boiler;
(ii) gas furnace; or

SB2445 - 40 - LRB102 17214 HLH 22672 b
(iii) any other type of existing heat
generating unit.
(3) Plumbing. All plumbing work must comply with
applicable codes. Replace all or a part of the in-wall
supply and waste plumbing; however, main supply risers,
waste stacks and vents, and code-conforming waste lines
need not be replaced.
(4) Roofing. All roofing work must comply with
applicable codes; it may consist of either of the
following alternatives, separately or in combination:
(A) replacing all rotted roof decks and
insulation; or
(B) replacing or repairing leaking roof membranes
(10% is the suggested minimum replacement of
membrane); restoration of the entire roof is an
acceptable substitute for membrane replacement.
(5) Exterior doors and windows. Replace the exterior
doors and windows. Renovation of ornate entry doors is an
acceptable substitute for replacement.
(6) Floors, walls, and ceilings. Finishes must be
replaced or covered over with new material. Acceptable
replacement or covering materials are as follows:
(A) floors must have new carpeting, vinyl tile,
ceramic, refurbished wood finish, or a similar
substitute;
(B) walls must have new drywall, including joint

SB2445 - 41 - LRB102 17214 HLH 22672 b
taping and painting; or
(C) new ceilings must be either drywall, suspended
type, or a similar
(7) Exterior walls.
(A) replace loose or crumbling mortar and masonry
with new material;
(B) replace or paint wall siding and trim as
needed;
(C) bring porches and balconies to a sound
condition; or
(D) any combination of (A), (B), and (C).
(8) Elevators. Where applicable, at least 4 of the
following 7 alternatives must be accomplished:
(A) replace or rebuild the machine room controls
and refurbish the elevator machine (or equivalent
mechanisms in the case of hydraulic elevators);
(B) replace hoistway electro-mechanical items
including: ropes, switches, limits, buffers, levelers,
and deflector sheaves (or equivalent mechanisms in the
case of hydraulic elevators);
(C) replace hoistway wiring;
(D) replace door operators and linkage;
(E) replace door panels at each opening;
(F) replace hall stations, car stations, and
signal fixtures; or
(G) rebuild the car shell and refinish the

SB2445 - 42 - LRB102 17214 HLH 22672 b
interior.
(9) Health and safety.
(A) install or replace fire suppression systems;
(B) install or replace security systems; or
(C) environmental remediation of lead-based paint,
asbestos, leaking underground storage tanks, or radon.
(10) Energy conservation improvements undertaken to
limit the amount of solar energy absorbed by a building's
roof or to reduce energy use for the property, including,
but not limited to, any of the following activities:
(A) installing or replacing reflective roof
coatings (flat roofs);
(B) installing or replacing R-49 roof insulation;
(C) installing or replacing R-19 perimeter wall
insulation;
(D) installing or replacing insulated entry doors;
(E) installing or replacing Low E, insulated
windows;
(F) installing or replacing WaterSense labeled
plumbing fixtures;
(G) installing or replacing 90% or better sealed
combustion heating systems;
(H) installing Energy Star hot water heaters;
(I) installing or replacing mechanical ventilation
to exterior for kitchens and baths;
(J) installing or replacing Energy Star

SB2445 - 43 - LRB102 17214 HLH 22672 b
appliances;
(K) installing or replacing Energy Star certified
lighting in common areas; or
(L) installing or replacing grading and
landscaping to promote on-site water retention if the
retained water is used to replace water that is
provided from a municipal source.
(11) Accessibility improvements. All accessibility
improvements must comply with applicable codes. An owner
may make accessibility improvements to residential real
property to increase access for people with disabilities.
As used in this paragraph (11), "disability" has the
meaning given to that term in the Illinois Human Rights
Act. As used in this paragraph (11), "accessibility
improvements" means a home modification listed under the
Home Services Program administered by the Department of
Human Services (Part 686 of Title 89 of the Illinois
Administrative Code) including, but not limited to:
installation of ramps, grab bars, or wheelchair lifts;
widening doorways or hallways; re-configuring rooms and
closets; and any other changes to enhance the independence
of people with disabilities.
(12) Any applicant who has purchased the property in
an arm's length transaction not more than 90 days before
applying for this reduced valuation may use the cost of
rehabilitation or repairs required by documented code

SB2445 - 44 - LRB102 17214 HLH 22672 b
violations, up to a maximum of $2 per square foot, to meet
the qualifying rehabilitation requirements.
Section 90-25. The Illinois Insurance Code is amended by
changing Sections 409 and 444 as follows:
(215 ILCS 5/409) (from Ch. 73, par. 1021)
Sec. 409. Annual privilege tax payable by companies.
(1) As of January 1, 1999 for all health maintenance
organization premiums written; as of July 1, 1998 for all
premiums written as accident and health business, voluntary
health service plan business, dental service plan business, or
limited health service organization business; and as of
January 1, 1998 for all other types of insurance premiums
written, every company doing any form of insurance business in
this State, including, but not limited to, every risk
retention group, and excluding all fraternal benefit
societies, all farm mutual companies, all religious charitable
risk pooling trusts, and excluding all statutory residual
market and special purpose entities in which companies are
statutorily required to participate, whether incorporated or
otherwise, shall pay, for the privilege of doing business in
this State, to the Director for the State treasury a State tax
equal to 0.5% of the net taxable premium written, together
with any amounts due under Section 444 of this Code, except
that the tax to be paid on any premium derived from any

SB2445 - 45 - LRB102 17214 HLH 22672 b
accident and health insurance or on any insurance business
written by any company operating as a health maintenance
organization, voluntary health service plan, dental service
plan, or limited health service organization shall be equal to
0.4% of such net taxable premium written, together with any
amounts due under Section 444. Upon the failure of any company
to pay any such tax due, the Director may, by order, revoke or
suspend the company's certificate of authority after giving 20
days written notice to the company, or commence proceedings
for the suspension of business in this State under the
procedures set forth by Section 401.1 of this Code. The gross
taxable premium written shall be the gross amount of premiums
received on direct business during the calendar year on
contracts covering risks in this State, except premiums on
annuities, premiums on which State premium taxes are
prohibited by federal law, premiums paid by the State for
health care coverage for Medicaid eligible insureds as
described in Section 5-2 of the Illinois Public Aid Code,
premiums paid for health care services included as an element
of tuition charges at any university or college owned and
operated by the State of Illinois, premiums on group insurance
contracts under the State Employees Group Insurance Act of
1971, and except premiums for deferred compensation plans for
employees of the State, units of local government, or school
districts. The net taxable premium shall be the gross taxable
premium written reduced only by the following:

SB2445 - 46 - LRB102 17214 HLH 22672 b
(a) the amount of premiums returned thereon which
shall be limited to premiums returned during the same
preceding calendar year and shall not include the return
of cash surrender values or death benefits on life
policies including annuities;
(b) dividends on such direct business that have been
paid in cash, applied in reduction of premiums or left to
accumulate to the credit of policyholders or annuitants.
In the case of life insurance, no deduction shall be made
for the payment of deferred dividends paid in cash to
policyholders on maturing policies; dividends left to
accumulate to the credit of policyholders or annuitants
shall be included as gross taxable premium written when
such dividend accumulations are applied to purchase
paid-up insurance or to shorten the endowment or premium
paying period.
(2) The annual privilege tax payment due from a company
under subsection (4) of this Section may be reduced by: (a) the
excess amount, if any, by which the aggregate income taxes
paid by the company, on a cash basis, for the preceding
calendar year under Sections 601 and 803 of the Illinois
Income Tax Act exceed 1.5% of the company's net taxable
premium written for that prior calendar year, as determined
under subsection (1) of this Section; and (b) the amount of any
fire department taxes paid by the company during the preceding
calendar year under Section 11-10-1 of the Illinois Municipal

SB2445 - 47 - LRB102 17214 HLH 22672 b
Code. Any deductible amount or offset allowed under items (a)
and (b) of this subsection for any calendar year will not be
allowed as a deduction or offset against the company's
privilege tax liability for any other taxing period or
calendar year.
(3) If a company survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the
premiums received and amounts returned or paid by all
companies party to the merger, consolidation, reorganization,
or reincorporation shall, for purposes of determining the
amount of the tax imposed by this Section, be regarded as
received, returned, or paid by the surviving or new company.
(4)(a) All companies subject to the provisions of this
Section shall make an annual return for the preceding calendar
year on or before March 15 setting forth such information on
such forms as the Director may reasonably require. Payments of
quarterly installments of the taxpayer's total estimated tax
for the current calendar year shall be due on or before April
15, June 15, September 15, and December 15 of such year, except
that all companies transacting insurance in this State whose
annual tax for the immediately preceding calendar year was
less than $5,000 shall make only an annual return. Failure of a
company to make the annual payment, or to make the quarterly
payments, if required, of at least 25% of either (i) the total
tax paid during the previous calendar year or (ii) 80% of the
actual tax for the current calendar year shall subject it to

SB2445 - 48 - LRB102 17214 HLH 22672 b
the penalty provisions set forth in Section 412 of this Code.
(b) Notwithstanding the foregoing provisions, no annual
return shall be required or made on March 15, 1998, under this
subsection. For the calendar year 1998:
(i) each health maintenance organization shall have no
estimated tax installments;
(ii) all companies subject to the tax as of July 1,
1998 as set forth in subsection (1) shall have estimated
tax installments due on September 15 and December 15 of
1998 which installments shall each amount to no less than
one-half of 80% of the actual tax on its net taxable
premium written during the period July 1, 1998, through
December 31, 1998; and
(iii) all other companies shall have estimated tax
installments due on June 15, September 15, and December 15
of 1998 which installments shall each amount to no less
than one-third of 80% of the actual tax on its net taxable
premium written during the calendar year 1998.
In the year 1999 and thereafter all companies shall make
annual and quarterly installments of their estimated tax as
provided by paragraph (a) of this subsection.
(5) In addition to the authority specifically granted
under Article XXV of this Code, the Director shall have such
authority to adopt rules and establish forms as may be
reasonably necessary for purposes of determining the
allocation of Illinois corporate income taxes paid under

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subsections (a) through (d) of Section 201 of the Illinois
Income Tax Act amongst members of a business group that files
an Illinois corporate income tax return on a unitary basis,
for purposes of regulating the amendment of tax returns, for
purposes of defining terms, and for purposes of enforcing the
provisions of Article XXV of this Code. The Director shall
also have authority to defer, waive, or abate the tax imposed
by this Section if in his opinion the company's solvency and
ability to meet its insured obligations would be immediately
threatened by payment of the tax due.
(6) This Section is subject to the provisions of Section
10 of the New Markets Development Program Act.
(7) This Section is subject to the provisions of the Build
Illinois Homes Tax Credit Act. For taxable years beginning on
or after January 1, 2022, qualified taxpayers are entitled to
claim credits awarded in accordance with the Build Illinois
Homes Tax Credit on or after January 1, 2021 against the taxes
imposed by this Section as provided in the Build Illinois
Homes Tax Credit Act. Companies claiming a credit under the
Build Illinois Homes Tax Credit Act are not required to pay any
additional tax as a result of claiming the credit. The credit
may fully offset any amounts imposed under this Section.
(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
(215 ILCS 5/444) (from Ch. 73, par. 1056)
Sec. 444. Retaliation.

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(1) Whenever the existing or future laws of any other
state or country shall require of companies incorporated or
organized under the laws of this State as a condition
precedent to their doing business in such other state or
country, compliance with laws, rules, regulations, and
prohibitions more onerous or burdensome than the rules and
regulations imposed by this State on foreign or alien
companies, or shall require any deposit of securities or other
obligations in such state or country, for the protection of
policyholders or otherwise or require of such companies or
agents thereof or brokers the payment of penalties, fees,
charges, or taxes greater than the penalties, fees, charges,
or taxes required in the aggregate for like purposes by this
Code or any other law of this State, of foreign or alien
companies, agents thereof or brokers, then such laws, rules,
regulations, and prohibitions of said other state or country
shall apply to companies incorporated or organized under the
laws of such state or country doing business in this State, and
all such companies, agents thereof, or brokers doing business
in this State, shall be required to make deposits, pay
penalties, fees, charges, and taxes, in amounts equal to those
required in the aggregate for like purposes of Illinois
companies doing business in such state or country, agents
thereof or brokers. Whenever any other state or country shall
refuse to permit any insurance company incorporated or
organized under the laws of this State to transact business

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according to its usual plan in such other state or country, the
director may, if satisfied that such company of this State is
solvent, properly managed, and can operate legally under the
laws of such other state or country, forthwith suspend or
cancel the license of every insurance company doing business
in this State which is incorporated or organized under the
laws of such other state or country to the extent that it
insures in this State against any of the risks or hazards which
are sought to be insured against by the company of this State
in such other state or country.
(2) The provisions of this Section shall not apply to
residual market or special purpose assessments or guaranty
fund or guaranty association assessments, both under the laws
of this State and under the laws of any other state or country,
and any tax offset or credit for any such assessment shall, for
purposes of this Section, be treated as a tax paid both under
the laws of this State and under the laws of any other state or
country.
(3) The terms "penalties", "fees", "charges", and "taxes"
in subsection (1) of this Section shall include: the
penalties, fees, charges, and taxes collected on a cash basis
under State law and referenced within Article XXV exclusive of
any items referenced by subsection (2) of this Section, but
including any tax offset allowed under Section 531.13 of this
Code; the aggregate Illinois corporate income taxes paid under
Sections 601 and 803 of the Illinois Income Tax Act during the

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calendar year for which the retaliatory tax calculation is
being made, less the recapture of any Illinois corporate
income tax cash refunds to the extent that the amount of tax
refunded was reported as part of the Illinois basis in the
calculation of the retaliatory tax for a prior tax year,
provided that such recaptured refund shall not exceed the
amount necessary for equivalence of the Illinois basis with
the state of incorporation basis in such tax year, and after
any tax offset allowed under Section 531.13 of this Code;
income or personal property taxes imposed by other states or
countries; penalties, fees, charges, and taxes of other states
or countries imposed for purposes like those of the penalties,
fees, charges, and taxes specified in Article XXV of this Code
exclusive of any item referenced in subsection (2) of this
Section; and any penalties, fees, charges, and taxes required
as a franchise, privilege, or licensing tax for conducting the
business of insurance whether calculated as a percentage of
income, gross receipts, premium, or otherwise.
(4) Nothing contained in this Section or Section 409 or
Section 444.1 is intended to authorize or expand any power of
local governmental units or municipalities to impose taxes,
fees, or charges.
(5) This Section is subject to the provisions of Section
10 of the New Markets Development Program Act.
(6) This Section is subject to the provisions of the Build
Illinois Homes Tax Credit Act. For taxable years beginning on

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or after January 1, 2022, qualified taxpayers are entitled to
claim credits awarded in accordance with the Build Illinois
Homes Tax Credit on or after January 1, 2021 against the taxes
imposed by this Section as provided in the Build Illinois
Homes Tax Credit Act. Companies claiming a credit under the
Build Illinois Homes Tax Credit Act are not required to pay any
additional tax as a result of claiming the credit. The credit
may fully offset any amounts imposed under this Section.
(Source: P.A. 98-1169, eff. 1-9-15.)
Section 90-30. The Affordable Housing Planning and Appeal
Act is amended by changing Sections 15, 25, and 50 and by
adding Section 70 as follows:
(310 ILCS 67/15)
Sec. 15. Definitions. As used in this Act:
"Affordable housing" means housing that has a value or
cost or rental amount that is within the means of a household
that may occupy moderate-income or low-income housing. In the
case of owner-occupied dwelling units, housing that is
affordable means housing in which mortgage, amortization,
taxes, insurance, and condominium or association fees, if any,
constitute no more than 30% of the gross annual household
income for a household of the size that may occupy the unit. In
the case of dwelling units for rent, housing that is
affordable means housing for which the rent, any required

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parking, maintenance, landlord-imposed fees, and utilities
constitute no more than 30% of the gross annual household
income for a household of the size that may occupy the unit.
"Affordable housing developer" means a nonprofit entity,
limited equity cooperative or public agency, or private
individual, firm, corporation, or other entity seeking to
build an affordable housing development.
"Affordable housing development" means (i) any housing
that is subsidized by the federal or State government or (ii)
any housing in which at least 20% of the dwelling units are
subject to covenants or restrictions that require that the
dwelling units be sold or rented at prices that preserve them
as affordable housing for a period of at least 15 years, in the
case of owner-occupied housing, and at least 30 years, in the
case of rental housing.
"Approving authority" means the governing body of the
county or municipality.
"Area median household income" means the median household
income adjusted for family size for applicable income limit
areas as determined annually by the federal Department of
Housing and Urban Development under Section 8 of the United
States Housing Act of 1937.
"Community land trust" means a private, not-for-profit
corporation organized exclusively for charitable, cultural,
and other purposes and created to acquire and own land for the
benefit of the local government, including the creation and

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preservation of affordable housing.
"Development" means any building, construction,
renovation, or excavation or any material change in any
structure or land, or change in the use of such structure or
land, that results in a net increase in the number of dwelling
units in a structure or on a parcel of land by more than one
dwelling unit.
"Exempt local government" means any local government in
which at least 10% of its total year-round housing units are
affordable, as determined by the Illinois Housing Development
Authority pursuant to Section 20 of this Act; or any
municipality under 1,000 population.
"Household" means the person or persons occupying a
dwelling unit.
"Housing trust fund" means a separate fund, either within
a local government or between local governments pursuant to
intergovernmental agreement, established solely for the
purposes authorized in subsection (d) of Section 25,
including, without limitation, the holding and disbursing of
financial resources to address the affordable housing needs of
individuals or households that may occupy low-income or
moderate-income housing.
"Local government" means a county or municipality.
"Low-income housing" means housing that is affordable,
according to the federal Department of Housing and Urban
Development, for either home ownership or rental, and that is

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occupied, reserved, or marketed for occupancy by households
with a gross household income that does not exceed 50% of the
area median household income.
"Moderate-income housing" means housing that is
affordable, according to the federal Department of Housing and
Urban Development, for either home ownership or rental, and
that is occupied, reserved, or marketed for occupancy by
households with a gross household income that is greater than
50% but does not exceed 80% of the area median household
income.
"Non-appealable local government requirements" means all
essential requirements that protect the public health and
safety, including any local building, electrical, fire, or
plumbing code requirements or those requirements that are
critical to the protection or preservation of the environment.
(Source: P.A. 98-287, eff. 8-9-13.)
(310 ILCS 67/25)
Sec. 25. Affordable housing plan.
(a) Prior to April 1, 2005, all non-exempt local
governments must approve an affordable housing plan. Any local
government that is determined by the Illinois Housing
Development Authority under Section 20 to be non-exempt for
the first time based on the recalculation of U.S. Census
Bureau data after 2010 shall have 18 months from the date of
notification of its non-exempt status to approve an affordable

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housing plan under this Act. On and after the effective date of
this amendatory Act of the 102nd General Assembly, an
affordable housing plan, or any revision thereof, shall not be
adopted by a non-exempt local government until notice and
opportunity for public hearing have first been afforded.
(b) For the purposes of this Act, the affordable housing
plan shall consist of at least the following:
(i) a statement of the total number of affordable
housing units that are necessary to exempt the local
government from the operation of this Act as defined in
Section 15 and Section 20;
(ii) an identification of lands within the
jurisdiction that are most appropriate for the
construction of affordable housing and of existing
structures most appropriate for conversion to, or
rehabilitation for, affordable housing, including a
consideration of lands and structures of developers who
have expressed a commitment to provide affordable housing
and lands and structures that are publicly or
semi-publicly owned;
(iii) incentives that local governments may provide
for the purpose of attracting affordable housing to their
jurisdiction; and
(iv) a goal of a minimum of 15% of all new development
or redevelopment within the local government that would be
defined as affordable housing in this Act; or a minimum of

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a 3 percentage point increase in the overall percentage of
affordable housing within its jurisdiction, as described
in subsection (b) of Section 20 of this Act; or a minimum
of a total of 10% affordable housing within its
jurisdiction as described in subsection (b) of Section 20
of this Act. These goals may be met, in whole or in part,
through the creation of affordable housing units under
intergovernmental agreements as described in subsection
(e) of this Section.
(c) Within 60 days after the adoption of an affordable
housing plan or revisions to its affordable housing plan, the
local government must submit a copy of that plan to the
Illinois Housing Development Authority.
(d) In order to promote the goals of this Act and to
maximize the creation, establishment, or preservation of
affordable housing throughout the State of Illinois, a local
government, whether exempt or non-exempt under this Act, may
adopt the following measures to address the need for
affordable housing:
(1) Local governments may individually or jointly
create or participate in a housing trust fund or otherwise
provide funding or support for the purpose of supporting
affordable housing, including, without limitation, to
support the following affordable housing activities:
(A) Housing production, including, without
limitation, new construction, rehabilitation, and

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adaptive re-use.
(B) Acquisition, including, without limitation,
land, single-family homes, multi-unit buildings, and
other existing structures that may be used in whole or
in part for residential use.
(C) Rental payment assistance.
(D) Home-ownership purchase assistance.
(E) Preservation of existing affordable housing.
(F) Weatherization.
(G) Emergency repairs.
(H) Housing related support services, including
homeownership education and financial counseling.
(I) Grants or loans to not-for-profit
organizations engaged in addressing the affordable
housing needs of low-income and moderate-income
households.
Local governments may authorize housing trust funds to
accept and utilize funds, property, and other resources
from all proper and lawful public and private sources so
long as those funds are used solely for addressing the
affordable housing needs of individuals or households that
may occupy low-income or moderate-income housing.
(2) A local government may create a community land
trust, which may: acquire developed or undeveloped
interests in real property and hold them for affordable
housing purposes; convey such interests under long-term

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leases, including ground leases; convey such interests for
affordable housing purposes; and retain an option to
reacquire any such real property interests at a price
determined by a formula ensuring that such interests may
be utilized for affordable housing purposes.
(3) A local government may use its zoning powers to
require the creation and preservation of affordable
housing as authorized under Section 5-12001 of the
Counties Code and Section 11-13-1 of the Illinois
Municipal Code.
(4) A local government may accept donations of money
or land for the purpose of addressing the affordable
housing needs of individuals or households that may occupy
low-income or moderate-income housing. These donations may
include, without limitation, donations of money or land
from persons, as long as the donations are demonstrably
used to preserve, create, or subsidize low-income housing
or moderate-income housing within the jurisdiction in lieu
of building affordable housing.
(e) In order to encourage regional cooperation and the
maximum creation of affordable housing in areas lacking such
housing in the State of Illinois, any non-exempt local
government may enter into intergovernmental agreements under
subsection (e) of Section 25 with local governments within 10
miles of its corporate boundaries in order to create
affordable housing units to meet the goals of this Act. A

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non-exempt local government may not enter into an
intergovernmental agreement, however, with any local
government that contains more than 25% affordable housing as
determined under Section 20 of this Act. All intergovernmental
agreements entered into to create affordable housing units to
meet the goals of this Act must also specify the basis for
determining how many of the affordable housing units created
will be credited to each local government participating in the
agreement for purposes of complying with this Act. All
intergovernmental agreements entered into to create affordable
housing units to meet the goals of this Act must also specify
the anticipated number of newly created affordable housing
units that are to be credited to each local government
participating in the agreement for purposes of complying with
this Act. In specifying how many affordable housing units will
be credited to each local government, the same affordable
housing unit may not be counted by more than one local
government.
(f) To enforce compliance with the provisions of this
Section, and to encourage local governments to submit their
affordable housing plans to the Illinois Housing Development
Authority in a timely manner, the Illinois Housing Development
Authority shall notify any local government and may notify the
Office of the Attorney General that the local government is in
violation of State law if the Illinois Housing Development
Authority finds that the affordable housing plan submitted is

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not in substantial compliance with this Section or that the
local government failed to submit an affordable housing plan.
The Attorney General may enforce this provision of the Act by
an action for mandamus or injunction or by means of other
appropriate relief.
(Source: P.A. 98-287, eff. 8-9-13.)
(310 ILCS 67/50)
Sec. 50. Housing Appeals Board.
(a) Prior to January 1, 2008, a Housing Appeals Board
shall be created consisting of 7 members appointed by the
Governor as follows:
(1) a retired circuit judge or retired appellate
judge, who shall act as chairperson;
(2) a zoning board of appeals member;
(3) a planning board member;
(4) a mayor or municipal council or board member;
(5) a county board member;
(6) an affordable housing developer; and
(7) an affordable housing advocate.
In addition, the Chairman of the Illinois Housing
Development Authority, ex officio, shall serve as a non-voting
member. No more than 4 of the appointed members may be from the
same political party. Appointments under items (2), (3), and
(4) shall be from local governments that are not exempt under
this Act.

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(b) Initial terms of 4 members designated by the Governor
shall be for 2 years. Initial terms of 3 members designated by
the Governor shall be for one year. Thereafter, members shall
be appointed for terms of 2 years. After a member's term
expires, the member shall continue to serve until a successor
is appointed. There shall be no limit to the number of terms an
appointee may serve. A member shall receive no compensation
for his or her services, but shall be reimbursed by the State
for all reasonable expenses actually and necessarily incurred
in the performance of his or her official duties. The board
shall hear all petitions for review filed under this Act and
shall conduct all hearings in accordance with the rules and
regulations established by the chairperson. The Illinois
Housing Development Authority shall provide space and clerical
and other assistance that the Board may require.
(c) (Blank).
(d) Any vacancies in the Housing Appeals Board shall be
filled within 90 days of the vacancy.
(Source: P.A. 98-287, eff. 8-9-13.)
(310 ILCS 67/70 new)
Sec. 70. Home rule application. Unless otherwise provided
under this Act or otherwise in accordance with State law, a
unit of local government, including a home rule unit, or any
non-home rule county within the unincorporated territory of
the county, may not regulate the activities described in this

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Act in a manner more restrictive than the regulation of those
activities by the State under this Act. This Section is a
limitation under subsection (i) of Section 6 of Article VII of
the Illinois Constitution on the concurrent exercise by home
rule units of powers and functions exercised by the State.
Article 99. Effective Date