SB0336sam002 98TH GENERAL ASSEMBLY

Sen. Andy Manar

Filed: 4/12/2013

09800SB0336sam002 LRB098 04615 HLH 44003 a

AMENDMENT TO SENATE BILL 336

AMENDMENT NO. ______. Amend Senate Bill 336, AS AMENDED, with reference to page and line numbers of Senate Amendment No. 1, on page 6, by replacing lines 6 through 8 with the following:

"basis of the property. A tax credit may be earned under this Act during the period beginning January 1, 2014 and ending December 31, 2018. While a tax credit may be earned before July 1, 2015, no tax credit shall be actually issued by the Department before July 1, 2015. While a tax credit must be earned on or before December 31, 2018, a credit shall be allowed after December 31, 2018 in accordance with the terms of this Act. If the amount of any tax credit"; and

on page 8, immediately below line 23, by inserting the following:

"Section 35. Maximum annual cap. The total amount of credits approved by the Department under this Act may not exceed: (1) $10,000,000 in Fiscal Year 2014; (2) $20,000,000 in Fiscal Year 2015; (3) $30,000,000 in Fiscal Year 2016; (4) $40,000,000 for Fiscal Year 2017; and (5) $50,000,000 for Fiscal Year 2018. If the total amount of credits awarded in any of those fiscal years is less than the maximum amount available for that fiscal year, then the maximum amount available for the next fiscal year shall be increased by the difference between the maximum amount and the total amount awarded."; and

on page 9, line 3, after "Department.", by inserting "The Department shall prioritize each application for review and approval in the order of the date on which the application was postmarked, with the oldest postmarked date receiving priority. Applications postmarked on the same day shall go through a lottery process to determine the order in which applications shall be received for approval."; and

on page 9, immediately below line 11, by inserting the following:

"(b) To ensure that an applicant has sufficient ownership of the qualified structure, each application shall include all of the following:

(1) Proof of ownership or site control. Proof of ownership shall include evidence that the applicant is the fee simple owner of the qualified structure, such as a warranty deed or a closing statement. Proof of site control may be evidenced by a leasehold interest or an option to acquire such an interest. If the applicant is in the process of acquiring fee simple ownership, proof of site control shall include an executed sales contract or an executed option to purchase the qualified structure.

(2) The estimated qualified expenditures, the anticipated total costs of the project, the adjusted basis of the property, as shown by proof of actual acquisition costs, the anticipated total labor costs, the estimated project start date, and the estimated project completion date.

(3) Proof that the property is a qualified structure as defined in this Act or evidence that the necessary documentation has been prepared to for the property to become a qualified structure, but a final determination of such qualification shall not be a prerequisite for approval of the preliminary application or the incurrence of qualified expenditures.

(4) Any other information which the Department and the Agency may reasonably require."; and

on page 9, line 12, by replacing "(b)" with "(c)"; and

on page 9, line 20, after "Section", by inserting "as may be limited elsewhere in this Act"; and

on page 9, line 26, after "application.", by inserting "Any rejected application shall be removed from the review process. Rejected applications shall lose priority in the review process."; and

on page 10, line 1, after "resubmitted", by inserting ", but shall be deemed to be a new application for purposes of the priority procedures described in this Section"; and

on page 10, immediately below line 1, by inserting the following:

"(d) Following approval of an application, the identity of the applicant contained in such application shall not be modified, except that:

(1) the applicant may add partners, members, or shareholders as part of the ownership structure, so long as the primary owner remains the same; however, prior to the commencement of renovation and the expenditure of at least 10% of the proposed rehabilitation budget, removal of the principal for failure to perform duties and the appointment of a new principal thereafter shall not constitute a change of the principal; and

(2) the identity of the applicant may be changed if the ownership of the project is changed due to a foreclosure, deed in lieu of a foreclosure, or voluntary conveyance, or a transfer in bankruptcy.

(e) In the event that the Department grants approval for credits in any fiscal year equal to the maximum amount available under this Act, all applicants with applications then awaiting approval or thereafter submitted for approval shall be notified by the Department that no additional credits shall be approved during such fiscal year and shall be notified of the priority given to such applicant's application then awaiting approval. Those applications shall be kept on file by the Department and shall be considered for approval for credits in the order established in this Act in the event that additional credits become available due to the rescission of preliminary approvals or when a new fiscal year's allocation of credits becomes available for approval."; and

on page 10, line 2, by replacing "(c)" with "(f)"; and

on page 10, line 16, after the period, by inserting "If the Department determines that an applicant has failed to comply with the requirements provided under this Section, the preliminary approval for the amount of credits for such applicant shall be rescinded and such amount of credits shall then be included in the total amount of credits from which preliminary approvals for other projects may be granted. Any applicant whose preliminary approval shall be rescinded shall be notified of such from the Department and, upon receipt of such notice, may submit a new application for the project but such application shall be deemed to be a new application for purposes of the priority procedures described in this Section."; and

on page 10, line 17, by replacing "(d)" with "(g)"; and

on page 11, line 12, after "Department,", by inserting "to be deposited into the Historic Property Administrative Fund,"; and

on page 11, line 16, by replacing "Department's Administrative" with "Historic Property Administrative"; and

on page 11, immediately below line 19, by inserting the following:

"(h) In the event the amount of qualified expenditures actually incurred by an applicant are more than those estimated in its application, the applicant can submit a new application for such excess amount of qualified expenditures on a form prescribed by the Department, but that application shall be deemed to be a new application for purposes of the priority procedures described in this Act with respect to such excess amount of qualified expenditures. Such applications shall be automatically approved, subject only to availability of tax credits and all provisions regarding priority provided in this Act."; and

on page 11, line 24, after the period, by inserting "The overall economic impact shall include the number of jobs created.".