101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3050

 

Introduced , by Rep. Aaron M. Ortiz

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new

    Amends the Illinois Income Tax Act. Provides that each taxpayer who owns rental property in the State is entitled to an income tax credit if the taxpayer (i) rents the property to a low-income household during the taxable year and (ii) charges rent to that household that is not more than 50% of the fair market rental value for the property. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3050LRB101 08641 HLH 53725 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 229 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. Affordable housing credit.
8    (a) For taxable years beginning on or after January 1,
92019, each taxpayer who owns rental property in the State is
10entitled to a credit against the tax imposed by subsections (a)
11and (b) of Section 201 if the taxpayer (i) rents the property
12to a low-income household during the taxable year and (ii)
13charges rent to that household that is not more than 50% of the
14fair market rental value for the property. The amount of the
15credit shall be 100% of the difference between the average rent
16charged to the low-income household during the taxable year and
17the fair market rental value for the property.
18    (b) For partners, shareholders of subchapter S
19corporations, and owners of limited liability companies, if the
20entity is treated as a partnership for purposes of federal and
21State income taxation, the credit under this Section shall be
22determined in accordance with the determination of income and
23distributive share of income under Sections 702 and 704 and

 

 

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1subchapter S of the Internal Revenue Code.
2    (c) The credit may not be carried back and may not reduce
3the taxpayer's liability to less than zero. If the amount of
4the credit exceeds the tax liability for the year, the excess
5may be carried forward and applied to the tax liability of the
65 taxable years following the excess credit year. The tax
7credit shall be applied to the earliest year for which there is
8a tax liability. If there are credits for more than one year
9that are available to offset the liability, the earlier credit
10shall be applied first.
11    (d) As used in this Section, "low-income household" means a
12household whose adjusted gross income for the taxable year is
13less than 135% of the federal poverty level, as determined by
14the most recent United States census.
15    (e) This Section is exempt from the provisions of Section
16250.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.