Illinois General Assembly - Full Text of HB2754
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Full Text of HB2754  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Jehan A. Gordon-Booth


35 ILCS 5/221
215 ILCS 5/409.1 new

    Amends the Illinois Income Tax Act and the Illinois Insurance Code. Provides that all or a portion of the income tax credit awarded for the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone may instead be taken as a credit against privilege and retaliatory taxes paid under the Illinois Insurance Code. Provides that the credit may be transferred within one year after the credit is awarded. Provides that the credit may be transferred only once. Provides that the credit may be carried forward. Provides that the credit sunsets on January 1, 2022 (currently, January 1, 2017). Effective immediately.

LRB099 09044 HLH 29232 b






HB2754LRB099 09044 HLH 29232 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
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, 2022 January 1, 2017, there
11shall be allowed a tax credit against (i) the tax imposed by
12subsections (a) and (b) of Section 201 of this Act and (ii)
13taxes imposed under Sections 409, 413, 444, and 444.1 of the
14Illinois Insurance Code in an aggregate amount equal to 25% of
15qualified expenditures incurred by a qualified taxpayer during
16the taxable year in the restoration and preservation of a
17qualified historic structure located in a River Edge
18Redevelopment Zone pursuant to a qualified rehabilitation
19plan, provided that the total amount of such expenditures (i)
20must equal $5,000 or more and (ii) must exceed 50% of the
21purchase price of the property.
22    (b) To obtain a tax credit pursuant to this Section, the
23taxpayer must apply with the Department of Commerce and



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



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1taxpayer's liability to less than zero. The credit may not be
2carried back. If the amount of the credit exceeds the tax
3liability for the year, the excess may be carried forward and
4applied to the tax liability of the 5 taxable years following
5the excess credit year. The credit shall be applied to the
6earliest year for which there is a tax liability. If there are
7credits from more than one tax year that are available to
8offset a liability, the earlier credit shall be applied first.
9    (c-5) A transfer of this credit may be made by the taxpayer
10earning the credit within one year after the credit is awarded
11in accordance with rules adopted by the Department of Commerce
12and Economic Opportunity. The credit may not be transferred
13more than once.
14    (d) As used in this Section, the following terms have the
15following meanings.
16    "Qualified expenditure" means all the costs and expenses
17defined as qualified rehabilitation expenditures under Section
1847 of the federal Internal Revenue Code that were incurred in
19connection with a qualified historic structure.
20    "Qualified historic structure" means a certified historic
21structure as defined under Section 47 (c)(3) of the federal
22Internal Revenue Code.
23    "Qualified rehabilitation plan" means a project that is
24approved by the Historic Preservation Agency as being
25consistent with the standards in effect on the effective date
26of this amendatory Act of the 97th General Assembly for



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1rehabilitation as adopted by the federal Secretary of the
3    "Qualified taxpayer" means the owner of the qualified
4historic structure or any other person who qualifies for the
5federal rehabilitation credit allowed by Section 47 of the
6federal Internal Revenue Code with respect to that qualified
7historic structure. Partners, shareholders of subchapter S
8corporations, and owners of limited liability companies (if the
9limited liability company is treated as a partnership for
10purposes of federal and State income taxation) are entitled to
11a credit under this Section to be determined in accordance with
12the determination of income and distributive share of income
13under Sections 702 and 703 and subchapter S of the Internal
14Revenue Code, provided that credits granted to a partnership, a
15limited liability company taxed as a partnership, or other
16multiple owners of property shall be passed through to the
17partners, members, or owners respectively on a pro rata basis
18or pursuant to an executed agreement among the partners,
19members, or owners documenting any alternate distribution
21(Source: P.A. 97-203, eff. 7-28-11.)
22    Section 10. The Illinois Insurance Code is amended by
23adding Section 409.1 as follows:
24    (215 ILCS 5/409.1 new)



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1    Sec. 409.1. River Edge Redevelopment Zone rehabilitation
2credit. For taxes payable after January 1, 2015, credits may be
3granted against the taxes imposed under Sections 409, 413, 444,
4and 444.1 of this Act as provided in Section 221 of the
5Illinois Income Tax Act.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.