Full Text of SB3527 100th General Assembly
SB3527 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB3527 Introduced 2/16/2018, by Sen. Steve Stadelman SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/221 | | 215 ILCS 5/409.1 new | |
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Amends the Illinois Income Tax Act. Provides that taxpayers of a qualified historic structure located in a River Edge Redevelopment Zone shall be allowed a tax credit against certain provisions of the Illinois Insurance Code during a 48-month period. Provides that a taxpayer is required to provide a third-party cost certification regarding costs attributable to the rehabilitation of a historic building when the costs exceed $200,000. Defines "phased rehabilitation" and "placed in service". Amends the Illinois Insurance Code. Makes conforming changes. Effective immediately.
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| | 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 Illinois Income Tax Act is amended by | 5 | | changing Section 221 as follows: | 6 | | (35 ILCS 5/221) | 7 | | Sec. 221. Rehabilitation costs; qualified historic | 8 | | properties; River Edge Redevelopment Zone. | 9 | | (a) For taxable years beginning on or after January 1, 2012 | 10 | | and ending prior to January 1, 2022, there shall be allowed a | 11 | | tax credit against (i) the tax imposed by subsections (a) and | 12 | | (b) of Section 201 and (ii) taxes imposed under Section 409, | 13 | | 413, 444, and 444.1 of the Illinois Insurance Code in an amount | 14 | | equal to 25% of qualified expenditures incurred by a qualified | 15 | | taxpayer during a 48-month period selected by the taxpayer the | 16 | | taxable year in the restoration and preservation of a qualified | 17 | | historic structure located in a River Edge Redevelopment Zone | 18 | | pursuant to a qualified rehabilitation plan, provided that the | 19 | | total amount of such expenditures (i) must equal $5,000 or more | 20 | | and (ii) must exceed 50% of the purchase price of the property. | 21 | | The tax credit shall be allowed in the tax year the qualified | 22 | | historic structure is placed in service; except in the case of | 23 | | a phased rehabilitation, where the tax credit shall be allowed |
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| 1 | | in each tax year that a phase is placed in service. | 2 | | (b) To obtain a tax credit pursuant to this Section, the | 3 | | taxpayer must apply with the Department of Commerce and | 4 | | Economic Opportunity. The Department of Commerce and Economic | 5 | | Opportunity shall require the taxpayer to provide a third-party | 6 | | cost certification by a certified public accountant of the | 7 | | actual costs attributed to the rehabilitation of the historic | 8 | | building when qualified rehabilitation expenditures exceed | 9 | | $200,000. The Department of Commerce and Economic Opportunity, | 10 | | in consultation with the Historic Preservation Agency, shall | 11 | | determine the amount of eligible rehabilitation costs and | 12 | | expenses. The Historic Preservation Agency shall determine | 13 | | whether the rehabilitation is consistent with the standards of | 14 | | the Secretary of the United States Department of the Interior | 15 | | for rehabilitation. Upon completion and review of the project, | 16 | | the Department of Commerce and Economic Opportunity shall issue | 17 | | a certificate in the amount of the eligible credits. At the | 18 | | time the certificate is issued, an issuance fee up to the | 19 | | maximum amount of 2% of the amount of the credits issued by the | 20 | | certificate may be collected from the applicant to administer | 21 | | the provisions of this Section. If collected, this issuance fee | 22 | | shall be deposited into the Historic Property Administrative | 23 | | Fund, a special fund created in the State treasury. Subject to | 24 | | appropriation, moneys in the Historic Property Administrative | 25 | | Fund shall be evenly divided between the Department of Commerce | 26 | | and Economic Opportunity and the Historic Preservation Agency |
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| 1 | | to reimburse the Department of Commerce and Economic | 2 | | Opportunity and the Historic Preservation Agency for the costs | 3 | | associated with administering this Section. The taxpayer must | 4 | | attach the certificate to the tax return on which the credits | 5 | | are to be claimed. The Department of Commerce and Economic | 6 | | Opportunity may adopt rules to implement this Section. | 7 | | (c) The tax credit under this Section may not reduce the | 8 | | taxpayer's liability to less than
zero. If the amount of the | 9 | | credit exceeds the tax liability for the year, the excess may | 10 | | be carried forward and applied to the tax liability of the 5 | 11 | | taxable years following the excess credit year retroactive for | 12 | | any tax credit generated for taxable years beginning on or | 13 | | after January 1, 2012. | 14 | | (d) As used in this Section, the following terms have the | 15 | | following meanings. | 16 | | "Phased rehabilitation" means a phased rehabilitation as | 17 | | defined in item (ii) of subparagraph (b) of paragraph (1) of | 18 | | subsection (c) of Section 47 of the federal Internal Revenue | 19 | | Code. | 20 | | "Placed in service" means the date the structure was placed | 21 | | in service for purposes of paragraph (1) of subsection (a) of | 22 | | Section 47 of the federal Internal Revenue Code. | 23 | | "Qualified expenditure" means all the costs and expenses | 24 | | defined as qualified rehabilitation expenditures under Section | 25 | | 47 of the federal Internal Revenue Code that were incurred in | 26 | | connection with a qualified historic structure. |
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| 1 | | "Qualified historic structure" means a certified historic | 2 | | structure as defined under Section 47(c)(3) of the federal | 3 | | Internal Revenue Code. | 4 | | "Qualified rehabilitation plan" means a project that is | 5 | | approved by the Historic Preservation Agency as being | 6 | | consistent with the standards in effect on the effective date | 7 | | of this amendatory Act of the 97th General Assembly for | 8 | | rehabilitation as adopted by the federal Secretary of the | 9 | | Interior. | 10 | | "Qualified taxpayer" means the owner of the qualified | 11 | | historic structure or any other person who qualifies for the | 12 | | federal rehabilitation credit allowed by Section 47 of the | 13 | | federal Internal Revenue Code with respect to that qualified | 14 | | historic structure. Partners, shareholders of subchapter S | 15 | | corporations, and owners of limited liability companies (if the | 16 | | limited liability company is treated as a partnership for | 17 | | purposes of federal and State income taxation) are entitled to | 18 | | a credit under this Section to be determined in accordance with | 19 | | the determination of income and distributive share of income | 20 | | under Sections 702 and 703 and subchapter S of the Internal | 21 | | Revenue Code, provided that credits granted to a partnership, a | 22 | | limited liability company taxed as a partnership, or other | 23 | | multiple owners of property shall be passed through to the | 24 | | partners, members, or owners respectively on a pro rata basis | 25 | | or pursuant to an executed agreement among the partners, | 26 | | members, or owners documenting any alternate distribution |
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| 1 | | method.
| 2 | | (Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.) | 3 | | Section 10. The Illinois Insurance Code is amended by | 4 | | adding Section 409.1 as follows: | 5 | | (215 ILCS 5/409.1 new) | 6 | | Sec. 409.1. River Edge Redevelopment Zone Rehabilitation | 7 | | credit. For taxes payable after January 1, 2018, credit may be | 8 | | granted against the taxes imposed under Sections 409, 413, 444, | 9 | | and 444.1 of this Act as provided in Section 221 of the | 10 | | Illinois Income Tax Act.
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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