State of Illinois
91st General Assembly
Legislation

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[ House Amendment 001 ]

91_HB1957

 
                                               LRB9103739PTpk

 1        AN ACT in relation to taxation.

 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    adding Section 212 as follows:

 6        (35 ILCS 5/212 new)
 7        Sec. 212.  Illinois low-income housing tax credit.
 8        (a)  As  used in this Section, unless the context clearly
 9    requires otherwise:
10        "Authority"  means  the  Illinois   Housing   Development
11    Authority.
12        "Director" means the Director of Revenue.
13        "Eligibility  statement" means a statement authorized and
14    issued by the  Authority  certifying  that  a  given  project
15    qualifies  for  the  Illinois  low-income housing tax credit.
16    The Authority shall promulgate  rules  establishing  criteria
17    upon  which  the  eligibility statements will be issued.  The
18    eligibility  statement  shall  specify  the  amount  of   the
19    Illinois   low-income   housing   tax  credit  allowed.   The
20    Authority shall authorize the tax credits only  to  qualified
21    projects that begin after December 31, 1999.
22        "Federal low-income housing tax credit" means the federal
23    tax  credit as provided in Section 42 of the Internal Revenue
24    Code of 1986, as amended.
25        "Geographic area" means the metropolitan area  or  county
26    designated  as  an  area by the federal Department of Housing
27    and Urban Development under Section 8 of  the  United  States
28    Housing  Act of 1937, as amended, for purposes of determining
29    fair market rental rates.
30        "Low-income project" means a housing project that has  at
31    least 20% of its units occupied by persons and families whose
 
                            -2-                LRB9103739PTpk
 1    income  does  not  exceed 50% of the median family income for
 2    the geographic area in which the project is  located  or  the
 3    median  family income for the State of Illinois, whichever is
 4    larger; or at least 40% of its units occupied by persons  and
 5    families  whose  income does not exceed 60% the median income
 6    for the geographic area in which the project  is  located  or
 7    the median family income for the State of Illinois, whichever
 8    is larger.
 9        "Median  income"  means those incomes that are determined
10    by the federal Department of Housing  and  Urban  Development
11    guidelines and adjusted for family size.
12        "Qualified Illinois project" means a qualified low-income
13    building as that term is determined in Section 42 of the 1986
14    Internal Revenue Code of 1986, as amended, that is located in
15    Illinois.
16        (b)  A   taxpayer  owning  an  interest  in  a  qualified
17    Illinois project shall be allowed a credit  against  the  tax
18    imposed by subsections (a) and (b) of Section 201, whether or
19    not  allowed a federal tax credit, to be termed the "Illinois
20    low-income housing tax credit", if the  Authority  issues  an
21    eligibility   statement  for  that  project.   For  qualified
22    Illinois projects, the Illinois low-income housing tax credit
23    available to a project shall be the amount as  the  Authority
24    shall determine is necessary to ensure the feasibility of the
25    project,  up  to  an  amount  equal to the federal low-income
26    housing tax credit for a qualified Illinois  project,  for  a
27    federal  tax  period.   The  Illinois  low-income housing tax
28    credit  issued  in  accordance  with  this  Section  may   be
29    allocated  to  2  or  more  taxpayers eligible for the credit
30    under this Section.  An owner of a qualified Illinois project
31    shall certify to the Director the ownership interest of  each
32    taxpayer  eligible  for  the  credit  and  other  appropriate
33    information  so that the low-income housing tax credit can be
34    properly allocated  by  the  Director.   The  Director  shall
 
                            -3-                LRB9103739PTpk
 1    allocate  the  credit  based upon the amount of each eligible
 2    taxpayer's  ownership  interest.   If  the  amount   of   the
 3    allocated  credit  exceeds  the  tax  liability  owned  under
 4    subsections  (a)  and  (b) of Section 201 by the taxpayer for
 5    the year, the excess may be carried forward  and  applied  to
 6    the  tax  liability  of  the  10  taxable years following the
 7    excess credit year.  The tax credit shall be applied  to  the
 8    earliest  year  for which there is a tax liability.  If there
 9    are credits for more than one  year  that  are  available  to
10    offset  a  liability,  the  earlier  credit  shall be applied
11    first.
12        (c)  The owner of a qualified Illinois  project  eligible
13    for  the  Illinois low-income housing tax credit shall submit
14    an eligibility statement at the time of  filing  the  owner's
15    returns.
16        (d)  If  under Section 42 of the Internal Revenue Code of
17    1986, as amended, a portion of any federal low-income housing
18    credits taken on a  low-income  project  is  required  to  be
19    recaptured,  the taxpayer claiming State credits with respect
20    to the project shall also be required to recapture a  portion
21    of  the  State credit claimed by the taxpayer that equals the
22    proportion that the federal recapture  amount  bears  to  the
23    original   low-income   housing   credit  amount  subject  to
24    recapture.
25        (e)  The provisions  of  this  Section  are  exempt  from
26    Section 250.

27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.

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