Illinois General Assembly - Full Text of SB2886
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Full Text of SB2886  97th General Assembly




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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
5changing Section 221 as follows:
6    (35 ILCS 5/221)
7    Sec. 221. Rehabilitation costs; qualified historic
8properties; River Edge Redevelopment Zone.
9    (a) For taxable years beginning on or after January 1, 2012
10and ending prior to January 1, 2017, there shall be allowed a
11tax credit against the tax imposed by subsections (a) and (b)
12of Section 201 in an amount equal to 25% of qualified
13expenditures incurred by a qualified taxpayer during the
14taxable year in the restoration and preservation of a qualified
15historic structure located in a River Edge Redevelopment Zone
16pursuant to a qualified rehabilitation plan, provided that the
17total amount of such expenditures (i) must equal $5,000 or more
18and (ii) must exceed 50% of the purchase price of the property.
19    (b) To obtain a tax credit pursuant to this Section, the
20taxpayer must apply with the Department of Commerce and
21Economic Opportunity. The Department of Commerce and Economic
22Opportunity, in consultation with the Historic Preservation
23Agency, shall determine the amount of eligible rehabilitation



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1costs and expenses. The Historic Preservation Agency shall
2determine whether the rehabilitation is consistent with the
3standards of the Secretary of the United States Department of
4the Interior for rehabilitation. Upon completion and review of
5the project, the Department of Commerce and Economic
6Opportunity shall issue a certificate in the amount of the
7eligible credits. At the time the certificate is issued, an
8issuance fee up to the maximum amount of 2% of the amount of
9the credits issued by the certificate may be collected from the
10applicant to administer the provisions of this Section. If
11collected, this issuance fee shall be deposited into the
12Historic Property Administrative Fund, a special fund created
13in the State treasury. Subject to appropriation, moneys in the
14Historic Property Administrative Fund shall be evenly divided
15between the Department of Commerce and Economic Opportunity and
16the Historic Preservation Agency to reimburse the Department of
17Commerce and Economic Opportunity and the Historic
18Preservation Agency for the costs associated with
19administering this Section. The taxpayer must attach the
20certificate to the tax return on which the credits are to be
21claimed. The Department of Commerce and Economic Opportunity
22may adopt rules to implement this Section.
23    (c) The tax credit under this Section may not reduce the
24taxpayer's liability to less than zero.
25    (c-5) Any person or entity, referred to in this Section as
26the assignor, may sell, assign, convey, or otherwise transfer



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1tax credits allowed and earned under this Act. The person or
2entity acquiring the tax credits, referred to in this Section
3as the assignee, may use the amount of the acquired tax credits
4to offset up to 100% of its tax liability for the taxable year
5in which the qualified rehabilitation plan was first placed
6into service, and any unused tax credits claimed by the
7assignee may be carried forward for up to 10 years or carried
8back for up to 1 year, except that all tax credits must be
9claimed within 10 years after the tax year in which the
10qualified rehabilitation plan was first placed into service and
11may not be carried back more than one year before the taxable
12year in which the qualified rehabilitation plan was placed in
13service. The assignor shall enter into a written agreement with
14the assignee establishing the terms and conditions of the
15agreement, shall perfect the transfer by notifying the
16Department of Commerce and Economic Opportunity in writing
17within 90 calendar days after the effective date of the
18transfer, and shall provide any information as may be required
19by the Department of Commerce and Economic Opportunity to
20administer and carry out the provisions of this Section. For
21purposes of this Section, assignors and assignees may include a
22non-profit entity with a Section 501(c)(3) designation under
23the federal Internal Revenue Code, although such entity shall
24not be the original recipient of the tax credits. The tax
25credits may be transferred more than once. The tax credits may
26be bifurcated to be transferred to more than one assignee. If



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1tax credits that have been transferred are subsequently
2reduced, adjusted, or recaptured, in whole or in part, by the
3Department of Commerce and Economic Opportunity, the
4Department of Revenue, or any other applicable government
5agency, only the original qualified taxpayer that was awarded
6the tax credits, and not any subsequent assignee of the tax
7credits, shall be held liable to repay any amount of such
8reduction, adjustment, or recapture of the tax credits.
9    (d) As used in this Section, the following terms have the
10following meanings.
11    "Qualified expenditure" means all the costs and expenses
12defined as qualified rehabilitation expenditures under Section
1347 of the federal Internal Revenue Code that were incurred in
14connection with a qualified historic structure.
15    "Qualified historic structure" means a certified historic
16structure as defined under Section 47 (c)(3) of the federal
17Internal Revenue Code.
18    "Qualified rehabilitation plan" means a project that is
19approved by the Historic Preservation Agency as being
20consistent with the standards in effect on the effective date
21of this amendatory Act of the 97th General Assembly for
22rehabilitation as adopted by the federal Secretary of the
24    "Qualified taxpayer" means the owner of the qualified
25historic structure or any other person who qualifies for the
26federal rehabilitation credit allowed by Section 47 of the



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1federal Internal Revenue Code with respect to that qualified
2historic structure. Partners, shareholders of subchapter S
3corporations, and owners of limited liability companies (if the
4limited liability company is treated as a partnership for
5purposes of federal and State income taxation) are entitled to
6a credit under this Section to be determined in accordance with
7the determination of income and distributive share of income
8under Sections 702 and 703 and subchapter S of the Internal
9Revenue Code, provided that credits granted to a partnership, a
10limited liability company taxed as a partnership, or other
11multiple owners of property shall be passed through to the
12partners, members, or owners respectively on a pro rata basis
13or pursuant to an executed agreement among the partners,
14members, or owners documenting any alternate distribution
16(Source: P.A. 97-203, eff. 7-28-11.)
17    Section 99. Effective date. This Act takes effect upon
18becoming law.