Public Act 097-0203
 
SB2168 EnrolledLRB097 09058 HLH 49192 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Finance Act is amended by adding
Section 5.786 as follows:
 
    (30 ILCS 105/5.786 new)
    Sec. 5.786. The Historic Property Administrative Fund.
 
    Section 10. The Illinois Income Tax Act is amended by
adding Section 221 as follows:
 
    (35 ILCS 5/221 new)
    Sec. 221. Rehabilitation costs; qualified historic
properties; River Edge Redevelopment Zone.
    (a) For taxable years beginning on or after January 1, 2012
and ending prior to January 1, 2017, there shall be allowed a
tax credit against the tax imposed by subsections (a) and (b)
of Section 201 in an amount equal to 25% of qualified
expenditures incurred by a qualified taxpayer during the
taxable year in the restoration and preservation of a qualified
historic structure located in a River Edge Redevelopment Zone
pursuant to a qualified rehabilitation plan, provided that the
total amount of such expenditures (i) must equal $5,000 or more
and (ii) must exceed 50% of the purchase price of the property.
    (b) To obtain a tax credit pursuant to this Section, the
taxpayer must apply with the Department of Commerce and
Economic Opportunity. The Department of Commerce and Economic
Opportunity, in consultation with the Historic Preservation
Agency, shall determine the amount of eligible rehabilitation
costs and expenses. The Historic Preservation Agency shall
determine whether the rehabilitation is consistent with the
standards of the Secretary of the United States Department of
the Interior for rehabilitation. Upon completion and review of
the project, the Department of Commerce and Economic
Opportunity shall issue a certificate in the amount of the
eligible credits. At the time the certificate is issued, an
issuance fee up to the maximum amount of 2% of the amount of
the credits issued by the certificate may be collected from the
applicant to administer the provisions of this Section. If
collected, this issuance fee shall be deposited into the
Historic Property Administrative Fund, a special fund created
in the State treasury. Subject to appropriation, moneys in the
Historic Property Administrative Fund shall be evenly divided
between the Department of Commerce and Economic Opportunity and
the Historic Preservation Agency to reimburse the Department of
Commerce and Economic Opportunity and the Historic
Preservation Agency for the costs associated with
administering this Section. The taxpayer must attach the
certificate to the tax return on which the credits are to be
claimed. The Department of Commerce and Economic Opportunity
may adopt rules to implement this Section.
    (c) The tax credit under this Section may not reduce the
taxpayer's liability to less than zero.
    (d) As used in this Section, the following terms have the
following meanings.
    "Qualified expenditure" 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 historic structure.
    "Qualified historic structure" means a certified historic
structure as defined under Section 47 (c)(3) of the federal
Internal Revenue Code.
    "Qualified rehabilitation plan" means a project that is
approved by the Historic Preservation Agency as being
consistent with the standards in effect on the effective date
of this amendatory Act of the 97th General Assembly for
rehabilitation as adopted by the federal Secretary of the
Interior.
    "Qualified taxpayer" means the owner of the qualified
historic structure or any other person who qualifies for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code with respect to that qualified
historic structure. Partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if the
limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 703 and subchapter S of the Internal
Revenue Code, provided that credits granted to a partnership, a
limited liability company taxed as a partnership, or other
multiple owners of property shall be passed through to the
partners, members, or owners respectively on a pro rata basis
or pursuant to an executed agreement among the partners,
members, or owners documenting any alternate distribution
method.
 
    Section 15. The River Edge Redevelopment Zone Act is
amended by changing Sections 10-2 and 10-5.3 as follows:
 
    (65 ILCS 115/10-2)
    Sec. 10-2. Findings. The General Assembly finds and
declares that those municipalities adjacent to or surrounding
river areas often lack critical tools to safely revive and
redevelop environmentally-challenged properties that will
stimulate economic revitalization and create jobs in Illinois.
Environmentally-challenged properties adjacent to or
surrounding Illinois rivers are a threat to the health, safety,
and welfare of the people of this State. Many of these
environmentally-challenged properties adjacent to or
surrounding rivers were former industrial areas that now,
subject to appropriate environmental clean-up and remediation,
would be ideal for office, residential, retail, hospitality,
commercial, recreational, warehouse and distribution, and
other economically productive uses. The cost of the cleaning
and remediation of these environmentally-challenged properties
is often the primary obstacle to returning these properties to
a safe and economically productive use.
    Cooperative and continuous partnership among the State,
through the Department of Commerce and Economic Opportunity and
the Environmental Protection Agency, municipalities adjacent
to or surrounding rivers, and the private sector is necessary
to appropriately encourage the cost-effective cleaning and
remediation of these environmentally-challenged properties in
order to bring about a safe and economically productive use of
the properties.
     Therefore, it is declared to be the purpose of this Act to
identify and initiate 3 pilot River Edge Redevelopment Zones to
stimulate the safe and cost-effective re-use of
environmentally-challenged properties adjacent to or
surrounding rivers by means of tax incentives or grants. On or
after the effective date of this amendatory Act of the 97th
General Assembly, the Department may certify an additional
pilot River Edge Redevelopment Zone in the City of Peoria.
(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
 
    (65 ILCS 115/10-5.3)
    Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
    (a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall be
attached thereto, and shall be filed in the office of the
Secretary of State. A certified copy of the River Edge
Redevelopment Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of the recorder of
deeds of the county in which the River Edge Redevelopment Zone
lies.
    (b) A River Edge Redevelopment Zone shall be effective upon
its certification. The Department shall transmit a copy of the
certification to the Department of Revenue, and to the
designating municipality. Upon certification of a River Edge
Redevelopment Zone, the terms and provisions of the designating
ordinance shall be in effect, and may not be amended or
repealed except in accordance with Section 10-5.4.
    (c) A River Edge Redevelopment Zone shall be in effect for
the period stated in the certificate, which shall in no event
exceed 30 calendar years. Zones shall terminate at midnight of
December 31 of the final calendar year of the certified term,
except as provided in Section 10-5.4.
    (d) In calendar years 2006 and 2007, the Department may
certify one pilot River Edge Redevelopment Zone in the City of
East St. Louis, one pilot River Edge Redevelopment Zone in the
City of Rockford, and one pilot River Edge Redevelopment Zone
in the City of Aurora.
    In calendar year 2009, the Department may certify one pilot
River Edge Redevelopment Zone in the City of Elgin.
    On or after the effective date of this amendatory Act of
the 97th General Assembly, the Department may certify one
additional pilot River Edge Redevelopment Zone in the City of
Peoria.
    Thereafter the Department may not certify any additional
River Edge Redevelopment Zones, but may amend and rescind
certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4.
    (e) A municipality in which a River Edge Redevelopment Zone
has been certified must submit to the Department, within 60
days after the certification, a plan for encouraging the
participation by minority persons, females, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "female", and "person with a
disability" have the meanings set forth under Section 2 of the
Business Enterprise for Minorities, Females, and Persons with
Disabilities Act. "Veteran" means an Illinois resident who is a
veteran as defined in subsection (h) of Section 1491 of Title
10 of the United States Code.
(Source: P.A. 96-37, eff. 7-13-09.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/28/2011