State of Illinois
91st General Assembly
Legislation

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[ House Amendment 001 ]

91_HB1958

 
                                               LRB9103738PTmb

 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 214 as follows:

 6        (35 ILCS 5/214 new)
 7        Sec. 214.  Affordable housing assistance tax credit.
 8        (a)  As  used in this Section, unless the context clearly
 9    requires otherwise:
10        "Affordable housing assistance expenditure" means  money,
11    real  or personal property, or a professional service that is
12    donated  to  a  not-for-profit  organization  that:  (i)   is
13    organized  under  the  laws  of this State for the purpose of
14    constructing or rehabilitating affordable  housing  units  in
15    this  State;  (ii) has been issued a ruling from the Internal
16    Revenue Service  of  the  United  States  Department  of  the
17    Treasury that the organization is exempt from income taxation
18    under  the provisions of the Internal Revenue Code; and (iii)
19    has been  designated  by  the  Illinois  Housing  Development
20    Authority  as  an organization qualified to receive donations
21    that are eligible for a tax credit under this Section.
22        "Affordable  housing  unit"  means  a  residential   unit
23    occupied by persons and families whose income does not exceed
24    50%  of  the  median family income for the geographic area in
25    which the residential unit is located, or the  median  family
26    income for the State of Illinois, whichever is higher.
27        "Geographic  area"  means the metropolitan area or county
28    designated as an area by the federal  Department  of  Housing
29    and  Urban  Development  under Section 8 of the United States
30    Housing Act of 1937, as amended, for purposes of  determining
31    fair market rental rates.
 
                            -2-                LRB9103738PTmb
 1        "Median  income"  means those incomes that are determined
 2    by the federal Department of Housing  and  Urban  Development
 3    guidelines and adjusted for family size.
 4        (b)  For  tax  years  ending  after  December 31, 1999, a
 5    taxpayer shall be allowed a credit against the tax imposed by
 6    subsections (a) and (b) of Section 201  for  contributing  to
 7    the  development  of  affordable  housing in this State.  The
 8    credit allowed against the tax imposed by subsections (a) and
 9    (b) of Section 201, to  be  termed  the  "affordable  housing
10    assistance tax credit", shall be equal to 55% of the value of
11    the  taxpayer's  affordable  housing assistance expenditures.
12    If the amount of the credit exceeds the tax liability for the
13    year, the excess may be carried forward and  applied  to  the
14    tax  liability  of  the 10 taxable years following the excess
15    credit year.  The tax credit shall be applied to the earliest
16    year for which there  is  a  tax  liability.   If  there  are
17    credits for more than one year that are available to offset a
18    liability, the earlier credit shall be applied first.
19        (c)  The  taxpayer  claiming  the credit provided by this
20    Section shall maintain and record  such  information  as  the
21    Department may require by regulation regarding the affordable
22    housing  assistance  expenditures  for  which  the  credit is
23    claimed.
24        (d)  The Illinois  Housing  Development  Authority  shall
25    promulgate  rules  and  regulations establishing criteria for
26    designating not-for-profit organizations that  are  qualified
27    to receive donations that are eligible for a tax credit under
28    this  Section.   The  criteria  shall require that designated
29    not-for-profit  organizations  utilize   affordable   housing
30    assistance  expenditures  solely  for  costs  associated with
31    constructing or rehabilitating affordable  housing  units  in
32    this State.
33        (e)  The  provisions  of this Section are exempt from the
34    provision of Section 250.
 
                            -3-                LRB9103738PTmb
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.

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