Rep. Jehan A. Gordon

Filed: 5/29/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2168

2    AMENDMENT NO. ______. Amend Senate Bill 2168 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1tax credit against the tax imposed by subsections (a) and (b)
2of Section 201 in an amount equal to 25% of qualified
3expenditures incurred by a qualified taxpayer during the
4taxable year in the restoration and preservation of a qualified
5historic structure located in a River Edge Redevelopment Zone
6pursuant to a qualified rehabilitation plan, provided that the
7total amount of such expenditures (i) must equal $5,000 or more
8and (ii) must exceed 50% of the purchase price of the property.
9    (b) To obtain a tax credit pursuant to this Section, the
10taxpayer must apply with the Department of Commerce and
11Economic Opportunity. The Department of Commerce and Economic
12Opportunity, in consultation with the Historic Preservation
13Agency, shall determine the amount of eligible rehabilitation
14costs and expenses. The Historic Preservation Agency shall
15determine whether the rehabilitation is consistent with the
16standards of the Secretary of the United States Department of
17the Interior for rehabilitation. Upon completion and review of
18the project, the Department of Commerce and Economic
19Opportunity shall issue a certificate in the amount of the
20eligible credits. At the time the certificate is issued, an
21issuance fee up to the maximum amount of 2% of the amount of
22the credits issued by the certificate may be collected from the
23applicant to administer the provisions of this Section. If
24collected, this issuance fee shall be deposited into the
25Historic Property Administrative Fund, a special fund created
26in the State treasury. Subject to appropriation, moneys in the

 

 

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1Historic Property Administrative Fund shall be evenly divided
2between the Department of Commerce and Economic Opportunity and
3the Historic Preservation Agency to reimburse the Department of
4Commerce and Economic Opportunity and the Historic
5Preservation Agency for the costs associated with
6administering this Section. The taxpayer must attach the
7certificate to the tax return on which the credits are to be
8claimed. The Department of Commerce and Economic Opportunity
9may adopt rules to implement this Section.
10    (c) The tax credit under this Section may not reduce the
11taxpayer's liability to less than zero.
12    (d) As used in this Section, the following terms have the
13following meanings.
14    "Qualified expenditure" means all the costs and expenses
15defined as qualified rehabilitation expenditures under Section
1647 of the federal Internal Revenue Code that were incurred in
17connection with a qualified historic structure.
18    "Qualified historic structure" means a certified historic
19structure as defined under Section 47 (c)(3) of the federal
20Internal Revenue Code.
21    "Qualified rehabilitation plan" means a project that is
22approved by the Historic Preservation Agency as being
23consistent with the standards in effect on the effective date
24of this amendatory Act of the 97th General Assembly for
25rehabilitation as adopted by the federal Secretary of the
26Interior.

 

 

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1    "Qualified taxpayer" means the owner of the qualified
2historic structure or any other person who qualifies for the
3federal rehabilitation credit allowed by Section 47 of the
4federal Internal Revenue Code with respect to that qualified
5historic structure. Partners, shareholders of subchapter S
6corporations, and owners of limited liability companies (if the
7limited liability company is treated as a partnership for
8purposes of federal and State income taxation) are entitled to
9a credit under this Section to be determined in accordance with
10the determination of income and distributive share of income
11under Sections 702 and 703 and subchapter S of the Internal
12Revenue Code, provided that credits granted to a partnership, a
13limited liability company taxed as a partnership, or other
14multiple owners of property shall be passed through to the
15partners, members, or owners respectively on a pro rata basis
16or pursuant to an executed agreement among the partners,
17members, or owners documenting any alternate distribution
18method.
 
19    Section 15. The River Edge Redevelopment Zone Act is
20amended by changing Sections 10-2 and 10-5.3 as follows:
 
21    (65 ILCS 115/10-2)
22    Sec. 10-2. Findings. The General Assembly finds and
23declares that those municipalities adjacent to or surrounding
24river areas often lack critical tools to safely revive and

 

 

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1redevelop environmentally-challenged properties that will
2stimulate economic revitalization and create jobs in Illinois.
3Environmentally-challenged properties adjacent to or
4surrounding Illinois rivers are a threat to the health, safety,
5and welfare of the people of this State. Many of these
6environmentally-challenged properties adjacent to or
7surrounding rivers were former industrial areas that now,
8subject to appropriate environmental clean-up and remediation,
9would be ideal for office, residential, retail, hospitality,
10commercial, recreational, warehouse and distribution, and
11other economically productive uses. The cost of the cleaning
12and remediation of these environmentally-challenged properties
13is often the primary obstacle to returning these properties to
14a safe and economically productive use.
15    Cooperative and continuous partnership among the State,
16through the Department of Commerce and Economic Opportunity and
17the Environmental Protection Agency, municipalities adjacent
18to or surrounding rivers, and the private sector is necessary
19to appropriately encourage the cost-effective cleaning and
20remediation of these environmentally-challenged properties in
21order to bring about a safe and economically productive use of
22the properties.
23     Therefore, it is declared to be the purpose of this Act to
24identify and initiate 3 pilot River Edge Redevelopment Zones to
25stimulate the safe and cost-effective re-use of
26environmentally-challenged properties adjacent to or

 

 

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1surrounding rivers by means of tax incentives or grants. On or
2after the effective date of this amendatory Act of the 97th
3General Assembly, the Department may certify an additional
4pilot River Edge Redevelopment Zone in the City of Peoria.
5(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
 
6    (65 ILCS 115/10-5.3)
7    Sec. 10-5.3. Certification of River Edge Redevelopment
8Zones.
9    (a) Approval of designated River Edge Redevelopment Zones
10shall be made by the Department by certification of the
11designating ordinance. The Department shall promptly issue a
12certificate for each zone upon its approval. The certificate
13shall be signed by the Director of the Department, shall make
14specific reference to the designating ordinance, which shall be
15attached thereto, and shall be filed in the office of the
16Secretary of State. A certified copy of the River Edge
17Redevelopment Zone Certificate, or a duplicate original
18thereof, shall be recorded in the office of the recorder of
19deeds of the county in which the River Edge Redevelopment Zone
20lies.
21    (b) A River Edge Redevelopment Zone shall be effective upon
22its certification. The Department shall transmit a copy of the
23certification to the Department of Revenue, and to the
24designating municipality. Upon certification of a River Edge
25Redevelopment Zone, the terms and provisions of the designating

 

 

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1ordinance shall be in effect, and may not be amended or
2repealed except in accordance with Section 10-5.4.
3    (c) A River Edge Redevelopment Zone shall be in effect for
4the period stated in the certificate, which shall in no event
5exceed 30 calendar years. Zones shall terminate at midnight of
6December 31 of the final calendar year of the certified term,
7except as provided in Section 10-5.4.
8    (d) In calendar years 2006 and 2007, the Department may
9certify one pilot River Edge Redevelopment Zone in the City of
10East St. Louis, one pilot River Edge Redevelopment Zone in the
11City of Rockford, and one pilot River Edge Redevelopment Zone
12in the City of Aurora.
13    In calendar year 2009, the Department may certify one pilot
14River Edge Redevelopment Zone in the City of Elgin.
15    On or after the effective date of this amendatory Act of
16the 97th General Assembly, the Department may certify one
17additional pilot River Edge Redevelopment Zone in the City of
18Peoria.
19    Thereafter the Department may not certify any additional
20River Edge Redevelopment Zones, but may amend and rescind
21certifications of existing River Edge Redevelopment Zones in
22accordance with Section 10-5.4.
23    (e) A municipality in which a River Edge Redevelopment Zone
24has been certified must submit to the Department, within 60
25days after the certification, a plan for encouraging the
26participation by minority persons, females, persons with

 

 

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1disabilities, and veterans in the zone. The Department may
2assist the municipality in developing and implementing the
3plan. The terms "minority person", "female", and "person with a
4disability" have the meanings set forth under Section 2 of the
5Business Enterprise for Minorities, Females, and Persons with
6Disabilities Act. "Veteran" means an Illinois resident who is a
7veteran as defined in subsection (h) of Section 1491 of Title
810 of the United States Code.
9(Source: P.A. 96-37, eff. 7-13-09.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".