SB2168 EngrossedLRB097 09058 HLH 49192 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.786 as follows:
 
6    (30 ILCS 105/5.786 new)
7    Sec. 5.786. The Historic Property Administrative Fund.
 
8    Section 10. The Illinois Income Tax Act is amended by
9adding Section 221 as follows:
 
10    (35 ILCS 5/221 new)
11    Sec. 221. Rehabilitation costs; qualified historic
12properties; River Edge Redevelopment Zone.
13    (a) For taxable years beginning on or after January 1,
142012, there shall be allowed a tax credit against the tax
15imposed by subsections (a) and (b) of Section 201 in an amount
16equal to 25% of qualified expenditures incurred by a qualified
17taxpayer during the taxable year in the restoration and
18preservation of a qualified historic structure located in a
19River Edge Redevelopment Zone that exists on the effective date
20of this amendatory Act of the 97th General Assembly pursuant to
21a qualified rehabilitation plan, provided that the total amount

 

 

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1of such expenditures (i) must equal $5,000 or more and (ii)
2must exceed 50% of the purchase price of the property.
3    (b) To obtain a tax credit pursuant to this Section, the
4taxpayer must apply with the Department of Commerce and
5Economic Opportunity no later than 6 months after the effective
6date of this amendatory Act of the 97th General Assembly. The
7Department of Commerce and Economic Opportunity, in
8consultation with the Historic Preservation Agency, shall
9determine the amount of eligible rehabilitation costs and
10expenses. The Historic Preservation Agency shall determine
11whether the rehabilitation is consistent with the standards of
12the Secretary of the United States Department of the Interior
13for rehabilitation. Upon completion and review of the project,
14the Department of Commerce and Economic Opportunity shall issue
15a certificate in the amount of the eligible credits. At the
16time the certificate is issued, an issuance fee up to the
17maximum amount of 2% of the amount of the credits issued by the
18certificate may be collected from the applicant to administer
19the provisions of this Section. If collected, this issuance fee
20shall be deposited into the Historic Property Administrative
21Fund, a special fund created in the State treasury. Subject to
22appropriation, moneys in the Historic Property Administrative
23Fund shall be evenly divided between the Department of Commerce
24and Economic Opportunity and the Historic Preservation Agency
25to reimburse the Department of Commerce and Economic
26Opportunity and the Historic Preservation Agency for the costs

 

 

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1associated with administering this Section. The taxpayer must
2attach the certificate to the tax return on which the credits
3are to be claimed.
4    (c) The tax credit under this Section may not reduce the
5taxpayer's liability to less than zero. If the amount of any
6tax credit awarded under this Section exceeds the qualified
7taxpayer's income tax liability for the year in which the
8qualified rehabilitation plan was placed in service, the excess
9amount may be carried forward for deduction from the taxpayer's
10income tax liability in the next succeeding year or years until
11the total amount of the credit has been used, except that a
12credit may not be carried forward for deduction after the tenth
13taxable year after the taxable year in which the qualified
14rehabilitation plan was placed in service.
15    (d) As used in this Section, the following terms have the
16following meanings.
17    "Qualified expenditure" means all the costs and expenses
18defined as qualified rehabilitation expenditures under Section
1947 of the federal Internal Revenue Code that were incurred in
20connection with a qualified historic structure.
21    "Qualified historic structure" means a certified historic
22structure as defined under Section 47 (c)(3) of the federal
23Internal Revenue Code.
24    "Qualified rehabilitation plan" means a project that is
25approved by the Historic Preservation Agency as being
26consistent with the standards in effect on the effective date

 

 

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1of this amendatory Act of the 97th General Assembly for
2rehabilitation as adopted by the federal Secretary of the
3Interior.
4    "Qualified taxpayer" means the owner of the qualified
5historic structure or any other person who qualifies for the
6federal rehabilitation credit allowed by Section 47 of the
7federal Internal Revenue Code with respect to that qualified
8historic structure. If the taxpayer is (i) a corporation having
9an election in effect under Subchapter S of the federal
10Internal Revenue Code, (ii) a partnership, or (iii) a limited
11liability company, the credit provided under this Act may be
12claimed by the shareholders of the corporation, the partners of
13the partnership, or the members of the limited liability
14company in the same manner as those shareholders, partners, or
15members account for their proportionate shares of the income or
16losses of the corporation, partnership, or limited liability
17company, or as provided in the by-laws or other executed
18agreement of the corporation, partnership, or limited
19liability company. Credits granted to a partnership, a limited
20liability company taxed as a partnership, or other multiple
21owners of property shall be passed through to the partners,
22members, or owners respectively on a pro rata basis or pursuant
23to an executed agreement among the partners, members, or owners
24documenting any alternate distribution method.
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.