Sen. James F. Clayborne, Jr.

Filed: 3/23/2011

 

 


 

 


 
09700SB2168sam001LRB097 09058 HLH 53240 a

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,
142012, there shall be allowed a tax credit against the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 in an amount
2equal to 25% of qualified expenditures incurred by a qualified
3taxpayer during the taxable year in the restoration and
4preservation of a qualified historic structure located in a
5River Edge Redevelopment Zone that exists on the effective date
6of this amendatory Act of the 97th General Assembly pursuant to
7a qualified rehabilitation plan, provided that the total amount
8of such expenditures (i) must equal $5,000 or more and (ii)
9must exceed 50% of the purchase price of the property.
10    (b) To obtain a tax credit pursuant to this Section, the
11taxpayer must apply with the Department of Commerce and
12Economic Opportunity no later than 6 months after the effective
13date of this amendatory Act of the 97th General Assembly. The
14Department of Commerce and Economic Opportunity, in
15consultation with the Historic Preservation Agency, shall
16determine the amount of eligible rehabilitation costs and
17expenses. The Historic Preservation Agency shall determine
18whether the rehabilitation is consistent with the standards of
19the Secretary of the United States Department of the Interior
20for rehabilitation. Upon completion and review of the project,
21the Department of Commerce and Economic Opportunity shall issue
22a certificate in the amount of the eligible credits. At the
23time the certificate is issued, an issuance fee up to the
24maximum amount of 2% of the amount of the credits issued by the
25certificate may be collected from the applicant to administer
26the provisions of this Section. If collected, this issuance fee

 

 

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1shall be deposited into the Historic Property Administrative
2Fund, a special fund created in the State treasury. Subject to
3appropriation, moneys in the Historic Property Administrative
4Fund shall be evenly divided between the Department of Commerce
5and Economic Opportunity and the Historic Preservation Agency
6to reimburse the Department of Commerce and Economic
7Opportunity and the Historic Preservation Agency for the costs
8associated with administering this Section. The taxpayer must
9attach the certificate to the tax return on which the credits
10are to be claimed.
11    (c) The tax credit under this Section may not reduce the
12taxpayer's liability to less than zero. If the amount of any
13tax credit awarded under this Section exceeds the qualified
14taxpayer's income tax liability for the year in which the
15qualified rehabilitation plan was placed in service, the excess
16amount may be carried forward for deduction from the taxpayer's
17income tax liability in the next succeeding year or years until
18the total amount of the credit has been used, except that a
19credit may not be carried forward for deduction after the tenth
20taxable year after the taxable year in which the qualified
21rehabilitation plan was placed in service.
22    (d) As used in this Section, the following terms have the
23following meanings.
24    "Qualified expenditure" means all the costs and expenses
25defined as qualified rehabilitation expenditures under Section
2647 of the federal Internal Revenue Code that were incurred in

 

 

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1connection with a qualified historic structure.
2    "Qualified historic structure" means a certified historic
3structure as defined under Section 47 (c)(3) of the federal
4Internal Revenue Code.
5    "Qualified rehabilitation plan" means a project that is
6approved by the Historic Preservation Agency as being
7consistent with the standards in effect on the effective date
8of this amendatory Act of the 97th General Assembly for
9rehabilitation as adopted by the federal Secretary of the
10Interior.
11    "Qualified taxpayer" means the owner of the qualified
12historic structure or any other person who qualifies for the
13federal rehabilitation credit allowed by Section 47 of the
14federal Internal Revenue Code with respect to that qualified
15historic structure. If the taxpayer is (i) a corporation having
16an election in effect under Subchapter S of the federal
17Internal Revenue Code, (ii) a partnership, or (iii) a limited
18liability company, the credit provided under this Act may be
19claimed by the shareholders of the corporation, the partners of
20the partnership, or the members of the limited liability
21company in the same manner as those shareholders, partners, or
22members account for their proportionate shares of the income or
23losses of the corporation, partnership, or limited liability
24company, or as provided in the by-laws or other executed
25agreement of the corporation, partnership, or limited
26liability company. Credits granted to a partnership, a limited

 

 

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1liability company taxed as a partnership, or other multiple
2owners of property shall be passed through to the partners,
3members, or owners respectively on a pro rata basis or pursuant
4to an executed agreement among the partners, members, or owners
5documenting any alternate distribution method.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".