(35 ILCS 31/5)
    Sec. 5. Definitions. As used in this Act, unless the context clearly indicates otherwise:
    "Director" means the Director of Natural Resources or his or her designee.
    "Division" means the State Historic Preservation Office within the Department of Natural Resources.
    "Placed in service" means the date when the property is placed in a condition or state of readiness and availability for a specifically assigned function as defined under Section 47 of the federal Internal Revenue Code and federal Treasury Regulation Sections 1.46 and 1.48.
    "Qualified expenditures" means all the costs and expenses defined as qualified rehabilitation expenditures under Section 47 of the federal Internal Revenue Code that were incurred in connection with a qualified rehabilitation plan.
    "Qualified historic structure" means any structure that is located in Illinois and is defined as a certified historic structure under Section 47(c)(3) of the federal Internal Revenue Code.
    "Qualified rehabilitation plan" means a project that is approved by the Department of Natural Resources and the National Park Service as being consistent with the United States Secretary of the Interior's Standards for Rehabilitation.
    "Qualified taxpayer" means the owner of the structure or any other person or entity that may qualify for the federal rehabilitation credit allowed by Section 47 of the federal Internal Revenue Code.
    "Recapture event" means any of the following events occurring during the recapture period:
        (1) failure to place in service the rehabilitated
    
portions of the qualified historic structure, or failure to maintain the rehabilitated portions of the qualified historic structure in service after they are placed in service; provided that a recapture event under this paragraph (1) shall not include a removal from service for a reasonable period of time to conduct maintenance and repairs that are reasonably necessary to protect the health and safety of the public or to protect the structural integrity of the qualified historic structure or a neighboring structure;
        (2) demolition or other alteration of the qualified
    
historic structure in a manner that is inconsistent with the qualified rehabilitation plan or the Secretary of the Interior's Standards for Rehabilitation;
        (3) disposition of the rehabilitated qualified
    
historic structure in whole or a proportional disposition of a partnership interest therein, except as otherwise permitted by this Section; or
        (4) use of the qualified historic structure in a
    
manner that is inconsistent with the qualified rehabilitation plan or that is otherwise inconsistent with the provisions and intent of this Section.
    A recapture event occurring in one taxable year shall be deemed continuing to subsequent taxable years unless and until corrected.
    The following dispositions of a qualified historic structure shall not be deemed to be a recapture event for purposes of this Section:
        (1) a transfer by reason of death;
        (2) a transfer between spouses incident to divorce;
        (3) a sale by and leaseback to an entity that, when
    
the rehabilitated portions of the qualified historic structure are placed in service, will be a lessee of the qualified historic structure, but only for so long as the entity continues to be a lessee; and
        (4) a mere change in the form of conducting the trade
    
or business by the owner (or, if applicable, the lessee) of the qualified historic structure, so long as the property interest in such qualified historic structure is retained in such trade or business and the owner or lessee retains a substantial interest in such trade or business.
    "Recapture period" means the 5-year period beginning on the date that the qualified historic structure or rehabilitated portions of the qualified historic structure are placed in service.
(Source: P.A. 102-741, eff. 5-6-22; 103-154, eff. 6-30-23.)