Full Text of SB3527 100th General Assembly
SB3527ham001 100TH GENERAL ASSEMBLY | Rep. Jehan Gordon-Booth Filed: 5/11/2018
| | 10000SB3527ham001 | | LRB100 20468 HLH 39946 a |
|
| 1 | | AMENDMENT TO SENATE BILL 3527
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3527 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 221 as follows: | 6 | | (35 ILCS 5/221) | 7 | | Sec. 221. Rehabilitation costs; qualified historic | 8 | | properties; River Edge Redevelopment Zone. | 9 | | (a) For taxable years that begin beginning on or after | 10 | | January 1, 2012 and begin ending prior to January 1, 2018 | 11 | | January 1, 2022 , there shall be allowed a tax credit against | 12 | | the tax imposed by subsections (a) and (b) of Section 201 of | 13 | | this Act in an amount equal to 25% of qualified expenditures | 14 | | incurred by a qualified taxpayer during the taxable year in the | 15 | | restoration and preservation of a qualified historic structure | 16 | | located in a River Edge Redevelopment Zone pursuant to a |
| | | 10000SB3527ham001 | - 2 - | LRB100 20468 HLH 39946 a |
|
| 1 | | qualified rehabilitation plan, provided that the total amount | 2 | | of such expenditures (i) must equal $5,000 or more and (ii) | 3 | | must exceed 50% of the purchase price of the property. | 4 | | (a-1) For taxable years that begin on or after January 1, | 5 | | 2018 and end prior to January 1, 2022, there shall be allowed a | 6 | | tax credit against the tax imposed by subsections (a) and (b) | 7 | | of Section 201 of this Act in an aggregate amount equal to 25% | 8 | | of qualified expenditures incurred by a qualified taxpayer in | 9 | | the restoration and preservation of a qualified historic | 10 | | structure located in a River Edge Redevelopment Zone pursuant | 11 | | to a qualified rehabilitation plan, provided that the total | 12 | | amount of such expenditures must (i) equal $5,000 or more and | 13 | | (ii) exceed the adjusted basis of the qualified historic | 14 | | structure on the first day the qualified rehabilitation plan | 15 | | begins. For any rehabilitation project, regardless of duration | 16 | | or number of phases, the project's compliance with the | 17 | | foregoing provisions (i) and (ii) shall be determined based on | 18 | | the aggregate amount of qualified expenditures for the entire | 19 | | project and may include expenditures incurred under subsection | 20 | | (a), this subsection, or both subsection (a) and this | 21 | | subsection. If the qualified rehabilitation plan spans | 22 | | multiple years, the aggregate credit for the entire project | 23 | | shall be allowed in the last taxable year, except for phased | 24 | | rehabilitation projects, which may receive credits upon | 25 | | completion of each phase. Before obtaining the first phased | 26 | | credit: (A) the total amount of such expenditures must meet the |
| | | 10000SB3527ham001 | - 3 - | LRB100 20468 HLH 39946 a |
|
| 1 | | requirements of provisions (i) and (ii) of this subsection; (B) | 2 | | the rehabilitated portion of the qualified historic structure | 3 | | must be placed in service; and (C) the requirements of | 4 | | subsection (b) must be met. | 5 | | (b) To obtain a tax credit pursuant to this Section, the | 6 | | taxpayer must apply with the Department of Natural Resources | 7 | | Commerce and Economic Opportunity . The Department of Natural | 8 | | Resources Commerce and Economic Opportunity, in consultation | 9 | | with the Historic Preservation Agency, shall determine the | 10 | | amount of eligible rehabilitation costs and expenses within 45 | 11 | | days of receipt of a complete application. The taxpayer must | 12 | | submit a certification of costs prepared by an independent | 13 | | certified public accountant that certifies (i) the project | 14 | | expenses, (ii) whether those expenses are qualified | 15 | | expenditures, and (iii) that the qualified expenditures exceed | 16 | | the adjusted basis of the qualified historic structure on the | 17 | | first day the qualified rehabilitation plan commenced. The | 18 | | Department of Natural Resources is authorized, but not | 19 | | required, to accept this certification of costs to determine | 20 | | the amount of qualified expenditures and the amount of the | 21 | | credit. The Department of Natural Resources shall provide | 22 | | guidance as to the minimum standards to be followed in the | 23 | | preparation of such certification . The Department of Natural | 24 | | Resources and the National Park Service Historic Preservation | 25 | | Agency shall determine whether the rehabilitation is | 26 | | consistent with the United States Secretary of the Interior's |
| | | 10000SB3527ham001 | - 4 - | LRB100 20468 HLH 39946 a |
|
| 1 | | Standards for Rehabilitation the standards of the Secretary of | 2 | | the United States Department of the Interior for | 3 | | rehabilitation . | 4 | | (b-1) Upon completion and review of the project and | 5 | | approval of the complete application , the Department of Natural | 6 | | Resources Commerce and Economic Opportunity shall issue a | 7 | | single certificate in the amount of the eligible credits equal | 8 | | to 25% of qualified expenditures incurred during the eligible | 9 | | taxable years, as defined in subsections (a) and (a-1), | 10 | | excepting any credits awarded under subsection (a) prior to the | 11 | | effective date of this amendatory Act of the 100th General | 12 | | Assembly and any phased credits issued prior to the eligible | 13 | | taxable year under subsection (a-1) . At the time the | 14 | | certificate is issued, an issuance fee up to the maximum amount | 15 | | of 2% of the amount of the credits issued by the certificate | 16 | | may be collected from the applicant to administer the | 17 | | provisions of this Section. If collected, this issuance fee | 18 | | shall be deposited into the Historic Property Administrative | 19 | | Fund, a special fund created in the State treasury. Subject to | 20 | | appropriation, moneys in the Historic Property Administrative | 21 | | Fund shall be provided to the Department of Natural Resources | 22 | | as reimbursement evenly divided between the Department of | 23 | | Commerce and Economic Opportunity and the Historic | 24 | | Preservation Agency to reimburse the Department of Commerce and | 25 | | Economic Opportunity and the Historic Preservation Agency for | 26 | | the costs associated with administering this Section. The |
| | | 10000SB3527ham001 | - 5 - | LRB100 20468 HLH 39946 a |
|
| 1 | | taxpayer must attach the certificate to the tax return on which | 2 | | the credits are to be claimed. The Department of Commerce and | 3 | | Economic Opportunity may adopt rules to implement this Section. | 4 | | (c) The taxpayer must attach the certificate to the tax | 5 | | return on which the credits are to be claimed. The tax credit | 6 | | under this Section may not reduce the taxpayer's liability to | 7 | | less than
zero. If the amount of the credit exceeds the tax | 8 | | liability for the year, the excess credit may be carried | 9 | | forward and applied to the tax liability of the 5 taxable years | 10 | | following the excess credit year. | 11 | | (c-1) Subject to appropriation, moneys in the Historic | 12 | | Property Administrative Fund shall be used, on a biennial basis | 13 | | beginning at the end of the second fiscal year after the | 14 | | effective date of this amendatory Act of the 100th General | 15 | | Assembly, to hire a qualified third party to prepare a biennial | 16 | | report to assess the overall economic impact to the State from | 17 | | the qualified rehabilitation projects under this Section | 18 | | completed in that year and in previous years. The overall | 19 | | economic impact shall include at least: (1) the direct and | 20 | | indirect or induced economic impacts of completed projects; (2) | 21 | | temporary, permanent, and construction jobs created; (3) | 22 | | sales, income, and property tax generation before, during | 23 | | construction, and after completion; and (4) indirect | 24 | | neighborhood impact after completion. The report shall be | 25 | | submitted to Governor and the General Assembly. The report to | 26 | | the General Assembly shall be filed with the Clerk of the House |
| | | 10000SB3527ham001 | - 6 - | LRB100 20468 HLH 39946 a |
|
| 1 | | of Representatives and the Secretary of the Senate in | 2 | | electronic form only, in the manner that the Clerk and the | 3 | | Secretary shall direct. | 4 | | (c-2) The Department of Natural Resources may adopt rules | 5 | | to implement this Section in addition to the rules expressly | 6 | | authorized in this Section. | 7 | | (d) As used in this Section, the following terms have the | 8 | | following meanings. | 9 | | "Phased rehabilitation" means a project that is completed | 10 | | in phases as defined under Section 47 of the federal Internal | 11 | | Revenue Code and pursuant to National Park Service regulations | 12 | | at 36 C.F.R. 67. | 13 | | "Placed in service" means the date when the property is | 14 | | placed in a condition or state of readiness and availability | 15 | | for a specifically assigned function as defined under Section | 16 | | 47 of the federal Internal Revenue Code and federal Treasury | 17 | | Regulation Sections 1.46 and 1.48. | 18 | | "Qualified expenditure" means all the costs and expenses | 19 | | defined as qualified rehabilitation expenditures under Section | 20 | | 47 of the federal Internal Revenue Code that were incurred in | 21 | | connection with a qualified historic structure. | 22 | | "Qualified historic structure" means a certified historic | 23 | | structure as defined under Section 47(c)(3) of the federal | 24 | | Internal Revenue Code. | 25 | | "Qualified rehabilitation plan" means a project that is | 26 | | approved by the Department of Natural Resources and the |
| | | 10000SB3527ham001 | - 7 - | LRB100 20468 HLH 39946 a |
|
| 1 | | National Park Service Historic Preservation Agency as being | 2 | | consistent with the United States Secretary of the Interior's | 3 | | Standards for Rehabilitation standards in effect on the | 4 | | effective date of this amendatory Act of the 97th General | 5 | | Assembly for rehabilitation as adopted by the federal Secretary | 6 | | of the Interior . | 7 | | "Qualified taxpayer" means the owner of the qualified | 8 | | historic structure or any other person who qualifies for the | 9 | | federal rehabilitation credit allowed by Section 47 of the | 10 | | federal Internal Revenue Code with respect to that qualified | 11 | | historic structure. Partners, shareholders of subchapter S | 12 | | corporations, and owners of limited liability companies (if the | 13 | | limited liability company is treated as a partnership for | 14 | | purposes of federal and State income taxation) are entitled to | 15 | | a credit under this Section to be determined in accordance with | 16 | | the determination of income and distributive share of income | 17 | | under Sections 702 and 703 and subchapter S of the Internal | 18 | | Revenue Code, provided that credits granted to a partnership, a | 19 | | limited liability company taxed as a partnership, or other | 20 | | multiple owners of property shall be passed through to the | 21 | | partners, members, or owners respectively on a pro rata basis | 22 | | or pursuant to an executed agreement among the partners, | 23 | | members, or owners documenting any alternate distribution | 24 | | method.
| 25 | | (Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)".
|
|