Rep. Linda Chapa LaVia

Filed: 11/28/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 1488, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Illinois Income Tax Act is amended by
6changing Section 221 as follows:
7    (35 ILCS 5/221)
8    Sec. 221. Rehabilitation costs; qualified historic
9properties; River Edge Redevelopment Zone.
10    (a) For taxable years beginning on or after January 1, 2012
11and ending prior to January 1, 2018 January 1, 2017, there
12shall be allowed a tax credit against the tax imposed by
13subsections (a) and (b) of Section 201 in an amount equal to
1425% of qualified expenditures incurred by a qualified taxpayer
15during the taxable year in the restoration and preservation of
16a qualified historic structure located in a River Edge



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1Redevelopment Zone pursuant to a qualified rehabilitation
2plan, provided that the total amount of such expenditures (i)
3must equal $5,000 or more and (ii) must exceed 50% of the
4purchase price of the property.
5    (b) To obtain a tax credit pursuant to this Section, the
6taxpayer must apply with the Department of Commerce and
7Economic Opportunity. The Department of Commerce and Economic
8Opportunity, in consultation with the Historic Preservation
9Agency, shall determine the amount of eligible rehabilitation
10costs and expenses. The Historic Preservation Agency shall
11determine whether the rehabilitation is consistent with the
12standards of the Secretary of the United States Department of
13the Interior for rehabilitation. Upon completion and review of
14the project, the Department of Commerce and Economic
15Opportunity shall issue a certificate in the amount of the
16eligible credits. At the time the certificate is issued, an
17issuance fee up to the maximum amount of 2% of the amount of
18the credits issued by the certificate may be collected from the
19applicant to administer the provisions of this Section. If
20collected, this issuance fee shall be deposited into the
21Historic Property Administrative Fund, a special fund created
22in the State treasury. Subject to appropriation, moneys in the
23Historic Property Administrative Fund shall be evenly divided
24between the Department of Commerce and Economic Opportunity and
25the Historic Preservation Agency to reimburse the Department of
26Commerce and Economic Opportunity and the Historic



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1Preservation Agency for the costs associated with
2administering this Section. The taxpayer must attach the
3certificate to the tax return on which the credits are to be
4claimed. The Department of Commerce and Economic Opportunity
5may adopt rules to implement this Section.
6    (c) The tax credit under this Section may not reduce the
7taxpayer's liability to less than zero.
8    (d) As used in this Section, the following terms have the
9following meanings.
10    "Qualified expenditure" means all the costs and expenses
11defined as qualified rehabilitation expenditures under Section
1247 of the federal Internal Revenue Code that were incurred in
13connection with a qualified historic structure.
14    "Qualified historic structure" means a certified historic
15structure as defined under Section 47 (c)(3) of the federal
16Internal Revenue Code.
17    "Qualified rehabilitation plan" means a project that is
18approved by the Historic Preservation Agency as being
19consistent with the standards in effect on the effective date
20of this amendatory Act of the 97th General Assembly for
21rehabilitation as adopted by the federal Secretary of the
23    "Qualified taxpayer" means the owner of the qualified
24historic structure or any other person who qualifies for the
25federal rehabilitation credit allowed by Section 47 of the
26federal Internal Revenue Code with respect to that qualified



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