Full Text of HB3974 102nd General Assembly
HB3974 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3974 Introduced 3/4/2021, by Rep. Michael Halpin SYNOPSIS AS INTRODUCED: |
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Amends the Historic Preservation Tax Credit Act. Provides that the State Historic Preservation Office may not award more than $45,000,000 (currently, $15,000,000) in total annual tax credits under the Act.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Historic Preservation Tax Credit Act is | 5 | | amended by changing Section 20 as follows: | 6 | | (35 ILCS 31/20)
| 7 | | Sec. 20. Limitations, reporting, and monitoring. | 8 | | (a) The Division shall award not more than an aggregate of | 9 | | $45,000,000 $15,000,000 in total annual tax credits pursuant | 10 | | to qualified rehabilitation plans for qualified historic | 11 | | structures. The Division shall award not more than $3,000,000 | 12 | | in tax credits with regard to a single qualified | 13 | | rehabilitation plan. In awarding tax credits under this Act, | 14 | | the Division must prioritize projects that meet one or more of | 15 | | the following: | 16 | | (1) the qualified historic structure is located in a | 17 | | county that borders a State with a historic property | 18 | | rehabilitation credit; | 19 | | (2) the qualified historic structure was previously | 20 | | owned by a federal, state, or local governmental entity; | 21 | | (3) the qualified historic structure is located in a | 22 | | census tract that has a median family income at or below | 23 | | the State median family income; data from the most recent |
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| 1 | | 5-year estimate from the American Community Survey (ACS), | 2 | | published by the U.S. Census Bureau, shall be used to | 3 | | determine eligibility; | 4 | | (4) the qualified rehabilitation plan includes in the | 5 | | development partnership a Community Development Entity or | 6 | | a low-profit (B Corporation) or not-for-profit | 7 | | organization, as defined by Section 501(c)(3) of the | 8 | | Internal Revenue Code; or | 9 | | (5) the qualified historic structure is located in an | 10 | | area declared under an Emergency Declaration or Major | 11 | | Disaster Declaration under the federal Robert T. Stafford | 12 | | Disaster Relief and Emergency Assistance Act. | 13 | | (b) The annual aggregate program allocation of $45,000,000 | 14 | | $15,000,000 set forth in subsection (a) shall be allocated by | 15 | | the Division, in such proportion as determined by the | 16 | | Department, on a per calendar basis twice in each year that the | 17 | | program is in effect, provided that: (i) the amount initially | 18 | | allocated by the Division for any one calendar application | 19 | | period shall not exceed 65% of the total allowable amount and | 20 | | (ii) any portion of the allocated allowable amount remaining | 21 | | unused as of the end of any of the second calendar application | 22 | | period of a given calendar year shall be rolled into and added | 23 | | to the total allocated amount for the next available calendar | 24 | | year. The qualified rehabilitation plan must meet a readiness | 25 | | test, as defined in the rules created by the Division, in order | 26 | | for the Applicant to qualify. Applicants that qualify under |
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| 1 | | this Act will be placed in a queue based on the date and time | 2 | | the application is received until such time as the application | 3 | | period total allowable amount is reached. Applicants must | 4 | | reapply for each application period. | 5 | | (c) On or before December 31, 2019,
and on or before | 6 | | December 31 of each odd-numbered year thereafter through
2023, | 7 | | subject to appropriation and prior to equal disbursement to | 8 | | the Division, moneys in the Historic Property Administrative | 9 | | Fund shall be used, beginning at the end of the first fiscal | 10 | | year after the effective date of this Act, to hire a qualified | 11 | | third party to prepare a biennial report to assess the overall | 12 | | effectiveness of this Act from the qualified rehabilitation | 13 | | projects under this Act completed in that year and in previous | 14 | | years. Baseline data of the metrics in the report shall be | 15 | | collected at the initiation of a qualified rehabilitation | 16 | | project. The overall economic impact shall include at least: | 17 | | (1) the number of applications, project locations, and | 18 | | proposed use of qualified historic structures; | 19 | | (2) the amount of credits awarded and the number and | 20 | | location of projects receiving credit allocations; | 21 | | (3) the status of ongoing projects and projected | 22 | | qualifying expenditures for ongoing projects;
| 23 | | (4) for completed projects, the total amount of | 24 | | qualifying rehabilitation expenditures and non-qualifying | 25 | | expenditures, the number of housing units created and the | 26 | | number of housing units that qualify as affordable, and |
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| 1 | | the total square footage rehabilitated and developed; | 2 | | (5) direct, indirect, and induced economic impacts; | 3 | | (6) temporary, permanent, and construction jobs | 4 | | created; and | 5 | | (7) sales, income, and property tax generation before | 6 | | construction, during construction, and after completion. | 7 | | The report to the General Assembly shall be filed with the | 8 | | Clerk of the House of Representatives and the Secretary of the | 9 | | Senate in electronic form only, in the manner that the Clerk | 10 | | and the Secretary shall direct. | 11 | | (d) Any time prior to issuance of a tax credit | 12 | | certificate, the Director of the Division, the State Historic | 13 | | Preservation Officer, or staff of the Division may, upon | 14 | | reasonable notice to the project owner of not less than 3 | 15 | | business days, conduct a site visit to the project to inspect | 16 | | and evaluate the project. | 17 | | (e) Any time prior to the issuance of a tax credit | 18 | | certificate and for a period of 4 years following the | 19 | | effective date of a project tax credit certificate, the | 20 | | Director may, upon reasonable notice of not less than 30 | 21 | | calendar days, request a status report from the Applicant | 22 | | consisting of information and updates relevant to the status | 23 | | of the project. Status reports shall not be requested more | 24 | | than twice yearly. | 25 | | (f) In order to demonstrate sufficient evidence of | 26 | | reviewable progress within 12 months after the date the |
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| 1 | | Applicant received notification of approval from the Division, | 2 | | the Applicant shall provide all of the following: | 3 | | (1) a viable financial plan which demonstrates by way | 4 | | of an executed agreement that all financing has been | 5 | | secured for the project; such financing shall include, but | 6 | | not be limited to, equity investment as demonstrated by | 7 | | letters of commitment from the owner of the property, | 8 | | investment partners, and equity investors; | 9 | | (2) final construction drawings or approved building | 10 | | permits that demonstrate the complete rehabilitation of | 11 | | the full scope of the application; and | 12 | | (3) all historic approvals, including all federal and | 13 | | State rehabilitation documents required by the Division. | 14 | | The Director shall review the submitted evidence and may | 15 | | request additional documentation from the Applicant if | 16 | | necessary. The Applicant will have 30 calendar days to provide | 17 | | the information requested, otherwise the approval may be | 18 | | rescinded at the discretion of the Director. | 19 | | (g) In order to demonstrate sufficient evidence of | 20 | | reviewable progress within 18 months after the date the | 21 | | application received notification of approval from the | 22 | | Division, the Applicant is required to provide detailed | 23 | | evidence that the Applicant has secured and closed on | 24 | | financing for the complete scope of rehabilitation for the | 25 | | project. To demonstrate evidence that the Applicant has | 26 | | secured and closed on financing, the Applicant will need to |
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| 1 | | provide signed and processed loan agreements, bank financing | 2 | | documents or other legal and contractual evidence to | 3 | | demonstrate that adequate financing is available to complete | 4 | | the project. The Director shall review the submitted evidence | 5 | | and may request additional documentation from the Applicant if | 6 | | necessary. The Applicant will have 30 calendar days to provide | 7 | | the information requested, otherwise the approval may be | 8 | | rescinded at the discretion of the Director. | 9 | | If the Applicant fails to document reviewable progress | 10 | | within 18 months of approval, the Director may notify the | 11 | | Applicant that the application is rescinded. However, should | 12 | | financing and construction be imminent, the Director may elect | 13 | | to grant the Applicant no more than 5 months to close on | 14 | | financing and commence construction. If the Applicant fails to | 15 | | meet these conditions in the required timeframe, the Director | 16 | | shall notify the Applicant that the application is rescinded. | 17 | | Any such rescinded allocation shall be added to the aggregate | 18 | | amount of credits available for allocation for the year in | 19 | | which the forfeiture occurred. | 20 | | The amount of the qualified expenditures identified in the | 21 | | Applicant's certification of completion and reflected on the | 22 | | Historic Preservation Tax Credit certificate issued by the | 23 | | Director is subject to inspection, examination, and audit by | 24 | | the Department of Revenue. | 25 | | The Applicant shall establish and maintain for a period of | 26 | | 4 years following the effective date on a project tax credit |
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| 1 | | certificate such records as required by the Director. Such | 2 | | records include, but are not limited to, records documenting | 3 | | project expenditures and compliance with the U.S. Secretary of | 4 | | the Interior's Standards. The Applicant shall make such | 5 | | records available for review and verification by the Director, | 6 | | the State Historic Preservation Officer, the Department of | 7 | | Revenue, or appropriate staff, as well as other appropriate | 8 | | State agencies. In the event the Director determines an | 9 | | Applicant has submitted an annual report containing erroneous | 10 | | information or data not supported by records established and | 11 | | maintained under this Act, the Director may, after providing | 12 | | notice, require the Applicant to resubmit corrected reports.
| 13 | | (Source: P.A. 100-629, eff. 1-1-19 .)
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