Bill Text: IL HB3109 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that the credit awarded for the restoration and preservation of a qualified historic structure applies on a permanent basis. Removes a requirement that the historic structure must be located in a River Edge Redevelopment Zone. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3109 Detail]
Download: Illinois-2015-HB3109-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 221 as follows:
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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, 2017 , there shall be allowed a | ||||||||||||||||||||||||
11 | tax credit against the tax imposed by subsections (a) and (b) | ||||||||||||||||||||||||
12 | of Section 201 in an amount equal to 25% of qualified | ||||||||||||||||||||||||
13 | expenditures incurred by a qualified taxpayer during the | ||||||||||||||||||||||||
14 | taxable year in the restoration and preservation of a qualified | ||||||||||||||||||||||||
15 | historic structure located in a River Edge Redevelopment Zone | ||||||||||||||||||||||||
16 | pursuant to a qualified rehabilitation plan, provided that the | ||||||||||||||||||||||||
17 | total amount of such expenditures (i) must equal $5,000 or more | ||||||||||||||||||||||||
18 | and (ii) must exceed 50% of the purchase price of the property. | ||||||||||||||||||||||||
19 | The credit under this Section is exempt from the provisions of | ||||||||||||||||||||||||
20 | Section 250. | ||||||||||||||||||||||||
21 | (b) To obtain a tax credit pursuant to this Section, the | ||||||||||||||||||||||||
22 | taxpayer must apply with the Department of Commerce and | ||||||||||||||||||||||||
23 | Economic Opportunity. The Department of Commerce and Economic |
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1 | Opportunity, in consultation with the Historic Preservation | ||||||
2 | Agency, shall determine the amount of eligible rehabilitation | ||||||
3 | costs and expenses. The Historic Preservation Agency shall | ||||||
4 | determine whether the rehabilitation is consistent with the | ||||||
5 | standards of the Secretary of the United States Department of | ||||||
6 | the Interior for rehabilitation. Upon completion and review of | ||||||
7 | the project, the Department of Commerce and Economic | ||||||
8 | Opportunity shall issue a certificate in the amount of the | ||||||
9 | eligible credits. At the time the certificate is issued, an | ||||||
10 | issuance fee up to the maximum amount of 2% of the amount of | ||||||
11 | the credits issued by the certificate may be collected from the | ||||||
12 | applicant to administer the provisions of this Section. If | ||||||
13 | collected, this issuance fee shall be deposited into the | ||||||
14 | Historic Property Administrative Fund, a special fund created | ||||||
15 | in the State treasury. Subject to appropriation, moneys in the | ||||||
16 | Historic Property Administrative Fund shall be evenly divided | ||||||
17 | between the Department of Commerce and Economic Opportunity and | ||||||
18 | the Historic Preservation Agency to reimburse the Department of | ||||||
19 | Commerce and Economic Opportunity and the Historic | ||||||
20 | Preservation Agency for the costs associated with | ||||||
21 | administering this Section. The taxpayer must attach the | ||||||
22 | certificate to the tax return on which the credits are to be | ||||||
23 | claimed. The Department of Commerce and Economic Opportunity | ||||||
24 | may adopt rules to implement this Section. | ||||||
25 | (c) The tax credit under this Section may not reduce the | ||||||
26 | taxpayer's liability to less than
zero. |
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1 | (d) As used in this Section, the following terms have the | ||||||
2 | following meanings. | ||||||
3 | "Qualified expenditure" means all the costs and expenses | ||||||
4 | defined as qualified rehabilitation expenditures under Section | ||||||
5 | 47 of the federal Internal Revenue Code that were incurred in | ||||||
6 | connection with a qualified historic structure. | ||||||
7 | "Qualified historic structure" means a certified historic | ||||||
8 | structure as defined under Section 47 (c)(3) of the federal | ||||||
9 | Internal Revenue Code. | ||||||
10 | "Qualified rehabilitation plan" means a project that is | ||||||
11 | approved by the Historic Preservation Agency as being | ||||||
12 | consistent with the standards in effect on the effective date | ||||||
13 | of this amendatory Act of the 97th General Assembly for | ||||||
14 | rehabilitation as adopted by the federal Secretary of the | ||||||
15 | Interior. | ||||||
16 | "Qualified taxpayer" means the owner of the qualified | ||||||
17 | historic structure or any other person who qualifies for the | ||||||
18 | federal rehabilitation credit allowed by Section 47 of the | ||||||
19 | federal Internal Revenue Code with respect to that qualified | ||||||
20 | historic structure. Partners, shareholders of subchapter S | ||||||
21 | corporations, and owners of limited liability companies (if the | ||||||
22 | limited liability company is treated as a partnership for | ||||||
23 | purposes of federal and State income taxation) are entitled to | ||||||
24 | a credit under this Section to be determined in accordance with | ||||||
25 | the determination of income and distributive share of income | ||||||
26 | under Sections 702 and 703 and subchapter S of the Internal |
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1 | Revenue Code, provided that credits granted to a partnership, a | ||||||
2 | limited liability company taxed as a partnership, or other | ||||||
3 | multiple owners of property shall be passed through to the | ||||||
4 | partners, members, or owners respectively on a pro rata basis | ||||||
5 | or pursuant to an executed agreement among the partners, | ||||||
6 | members, or owners documenting any alternate distribution | ||||||
7 | method.
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8 | (Source: P.A. 97-203, eff. 7-28-11.)
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9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law.
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