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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The 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, 2012
14and ending prior to January 1, 2017, there shall be allowed a
15tax credit against the tax imposed by subsections (a) and (b)
16of Section 201 in an amount equal to 25% of qualified
17expenditures incurred by a qualified taxpayer during the
18taxable year in the restoration and preservation of a qualified
19historic structure located in a River Edge Redevelopment Zone
20pursuant to a qualified rehabilitation plan, provided that the
21total amount of such expenditures (i) must equal $5,000 or more

 

 

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1and (ii) must exceed 50% of the purchase price of the property.
2    (b) To obtain a tax credit pursuant to this Section, the
3taxpayer must apply with the Department of Commerce and
4Economic Opportunity. The Department of Commerce and Economic
5Opportunity, in consultation with the Historic Preservation
6Agency, shall determine the amount of eligible rehabilitation
7costs and expenses. The Historic Preservation Agency shall
8determine whether the rehabilitation is consistent with the
9standards of the Secretary of the United States Department of
10the Interior for rehabilitation. Upon completion and review of
11the project, the Department of Commerce and Economic
12Opportunity shall issue a certificate in the amount of the
13eligible credits. At the time the certificate is issued, an
14issuance fee up to the maximum amount of 2% of the amount of
15the credits issued by the certificate may be collected from the
16applicant to administer the provisions of this Section. If
17collected, this issuance fee shall be deposited into the
18Historic Property Administrative Fund, a special fund created
19in the State treasury. Subject to appropriation, moneys in the
20Historic Property Administrative Fund shall be evenly divided
21between the Department of Commerce and Economic Opportunity and
22the Historic Preservation Agency to reimburse the Department of
23Commerce and Economic Opportunity and the Historic
24Preservation Agency for the costs associated with
25administering this Section. The taxpayer must attach the
26certificate to the tax return on which the credits are to be

 

 

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1claimed. The Department of Commerce and Economic Opportunity
2may adopt rules to implement this Section.
3    (c) The tax credit under this Section may not reduce the
4taxpayer's liability to less than zero.
5    (d) As used in this Section, the following terms have the
6following meanings.
7    "Qualified expenditure" means all the costs and expenses
8defined as qualified rehabilitation expenditures under Section
947 of the federal Internal Revenue Code that were incurred in
10connection with a qualified historic structure.
11    "Qualified historic structure" means a certified historic
12structure as defined under Section 47 (c)(3) of the federal
13Internal Revenue Code.
14    "Qualified rehabilitation plan" means a project that is
15approved by the Historic Preservation Agency as being
16consistent with the standards in effect on the effective date
17of this amendatory Act of the 97th General Assembly for
18rehabilitation as adopted by the federal Secretary of the
19Interior.
20    "Qualified taxpayer" means the owner of the qualified
21historic structure or any other person who qualifies for the
22federal rehabilitation credit allowed by Section 47 of the
23federal Internal Revenue Code with respect to that qualified
24historic structure. Partners, shareholders of subchapter S
25corporations, and owners of limited liability companies (if the
26limited liability company is treated as a partnership for

 

 

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1purposes of federal and State income taxation) are entitled to
2a credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 703 and subchapter S of the Internal
5Revenue Code, provided that credits granted to a partnership, a
6limited liability company taxed as a partnership, or other
7multiple owners of property shall be passed through to the
8partners, members, or owners respectively on a pro rata basis
9or pursuant to an executed agreement among the partners,
10members, or owners documenting any alternate distribution
11method.
 
12    Section 15. The River Edge Redevelopment Zone Act is
13amended by changing Sections 10-2 and 10-5.3 as follows:
 
14    (65 ILCS 115/10-2)
15    Sec. 10-2. Findings. The General Assembly finds and
16declares that those municipalities adjacent to or surrounding
17river areas often lack critical tools to safely revive and
18redevelop environmentally-challenged properties that will
19stimulate economic revitalization and create jobs in Illinois.
20Environmentally-challenged properties adjacent to or
21surrounding Illinois rivers are a threat to the health, safety,
22and welfare of the people of this State. Many of these
23environmentally-challenged properties adjacent to or
24surrounding rivers were former industrial areas that now,

 

 

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1subject to appropriate environmental clean-up and remediation,
2would be ideal for office, residential, retail, hospitality,
3commercial, recreational, warehouse and distribution, and
4other economically productive uses. The cost of the cleaning
5and remediation of these environmentally-challenged properties
6is often the primary obstacle to returning these properties to
7a safe and economically productive use.
8    Cooperative and continuous partnership among the State,
9through the Department of Commerce and Economic Opportunity and
10the Environmental Protection Agency, municipalities adjacent
11to or surrounding rivers, and the private sector is necessary
12to appropriately encourage the cost-effective cleaning and
13remediation of these environmentally-challenged properties in
14order to bring about a safe and economically productive use of
15the properties.
16     Therefore, it is declared to be the purpose of this Act to
17identify and initiate 3 pilot River Edge Redevelopment Zones to
18stimulate the safe and cost-effective re-use of
19environmentally-challenged properties adjacent to or
20surrounding rivers by means of tax incentives or grants. On or
21after the effective date of this amendatory Act of the 97th
22General Assembly, the Department may certify an additional
23pilot River Edge Redevelopment Zone in the City of Peoria.
24(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
 
25    (65 ILCS 115/10-5.3)

 

 

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1    Sec. 10-5.3. Certification of River Edge Redevelopment
2Zones.
3    (a) Approval of designated River Edge Redevelopment Zones
4shall be made by the Department by certification of the
5designating ordinance. The Department shall promptly issue a
6certificate for each zone upon its approval. The certificate
7shall be signed by the Director of the Department, shall make
8specific reference to the designating ordinance, which shall be
9attached thereto, and shall be filed in the office of the
10Secretary of State. A certified copy of the River Edge
11Redevelopment Zone Certificate, or a duplicate original
12thereof, shall be recorded in the office of the recorder of
13deeds of the county in which the River Edge Redevelopment Zone
14lies.
15    (b) A River Edge Redevelopment Zone shall be effective upon
16its certification. The Department shall transmit a copy of the
17certification to the Department of Revenue, and to the
18designating municipality. Upon certification of a River Edge
19Redevelopment Zone, the terms and provisions of the designating
20ordinance shall be in effect, and may not be amended or
21repealed except in accordance with Section 10-5.4.
22    (c) A River Edge Redevelopment Zone shall be in effect for
23the period stated in the certificate, which shall in no event
24exceed 30 calendar years. Zones shall terminate at midnight of
25December 31 of the final calendar year of the certified term,
26except as provided in Section 10-5.4.

 

 

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1    (d) In calendar years 2006 and 2007, the Department may
2certify one pilot River Edge Redevelopment Zone in the City of
3East St. Louis, one pilot River Edge Redevelopment Zone in the
4City of Rockford, and one pilot River Edge Redevelopment Zone
5in the City of Aurora.
6    In calendar year 2009, the Department may certify one pilot
7River Edge Redevelopment Zone in the City of Elgin.
8    On or after the effective date of this amendatory Act of
9the 97th General Assembly, the Department may certify one
10additional pilot River Edge Redevelopment Zone in the City of
11Peoria.
12    Thereafter the Department may not certify any additional
13River Edge Redevelopment Zones, but may amend and rescind
14certifications of existing River Edge Redevelopment Zones in
15accordance with Section 10-5.4.
16    (e) A municipality in which a River Edge Redevelopment Zone
17has been certified must submit to the Department, within 60
18days after the certification, a plan for encouraging the
19participation by minority persons, females, persons with
20disabilities, and veterans in the zone. The Department may
21assist the municipality in developing and implementing the
22plan. The terms "minority person", "female", and "person with a
23disability" have the meanings set forth under Section 2 of the
24Business Enterprise for Minorities, Females, and Persons with
25Disabilities Act. "Veteran" means an Illinois resident who is a
26veteran as defined in subsection (h) of Section 1491 of Title

 

 

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110 of the United States Code.
2(Source: P.A. 96-37, eff. 7-13-09.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.