100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1767

 

Introduced 2/9/2017, by Sen. Chuck Weaver

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/219
35 ILCS 30/15

    Amends the Illinois Income Tax Act and the Historic Preservation Tax Credit Pilot Program Act. Provides that the historic preservation tax credit applies again for tax years beginning on or after January 1, 2017 and beginning prior to January 1, 2023 (currently, the credit applied for tax years beginning on or after January 1, 2010 and ending on or before December 31, 2015). Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 219 as follows:
 
6    (35 ILCS 5/219)
7    Sec. 219. Historic preservation credit. For tax years
8beginning on or after January 1, 2010 and ending on or before
9December 31, 2015, and beginning again for tax years beginning
10on or after January 1, 2017 and beginning prior to January 1,
112023, a taxpayer who qualifies for a credit under the Historic
12Preservation Tax Credit Pilot Program Act is entitled to a
13credit against the taxes imposed under subsections (a) and (b)
14of Section 201 of this Act as provided in that Act. If the
15taxpayer is a partnership or Subchapter S corporation, the
16credit shall be allowed to the partners or shareholders in
17accordance with the determination of income and distributive
18share of income under Sections 702 and 704 and Subchapter S of
19the Internal Revenue Code.
20    If the amount of any tax credit awarded under this Section
21exceeds the qualified taxpayer's income tax liability for the
22year in which the qualified rehabilitation plan was placed in
23service, the excess amount may be carried forward or back as

 

 

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1provided in the Historic Preservation Tax Credit Pilot Program
2Act.
3(Source: P.A. 96-933, eff. 6-21-10.)
 
4    Section 10. The Historic Preservation Tax Credit Pilot
5Program Act is amended by changing Section 15 as follows:
 
6    (35 ILCS 30/15)
7    Sec. 15. Allowable credit. To the extent authorized by
8Section 25 of this Act, for taxable years beginning on or after
9January 1, 2010 and ending on or before December 31, 2015, and
10beginning again for tax years beginning on or after January 1,
112017 and beginning prior to January 1, 2023, there shall be
12allowed a tax credit against the tax imposed by subsections (a)
13and (b) of Section 201 of the Illinois Income Tax Act in an
14amount equal to 25% of qualified expenditures incurred by a
15qualified taxpayer during the taxable year in the restoration
16and preservation of a qualified historic structure pursuant to
17a qualified rehabilitation plan, provided that the total amount
18of such expenditures (i) must equal $5,000 or more, and (ii)
19must exceed 50% of the purchase price of the property. If the
20amount of any tax credit awarded under this Act exceeds the
21qualified taxpayer's income tax liability for the year in which
22the qualified rehabilitation plan was placed in service, the
23excess amount may be carried forward for deduction from the
24taxpayer's income tax liability in the next succeeding year or

 

 

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1years until the total amount of the credit has been used,
2except that a credit may not be carried forward for deduction
3after the tenth taxable year after the taxable year in which
4the qualified rehabilitation plan was placed in service. To
5obtain a tax credit pursuant to this Act, an application must
6be made to the Department (i) no later than 6 months after the
7effective date of this Act or (ii) no later than 6 months after
8the effective date of this amendatory Act of the 100th General
9Assembly. The Department, in consultation with the Agency,
10shall determine the amount of eligible rehabilitation costs and
11expenses. The Agency shall determine whether the
12rehabilitation is consistent with the standards of the
13Secretary of the United States Department of the Interior for
14rehabilitation. Upon completion and review of the project, the
15Department 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 Act. If collected, this issuance
20fee shall be evenly divided between the Department and the
21Agency. The taxpayer must attach the certificate to the tax
22return on which the credits are to be claimed.
23(Source: P.A. 96-933, eff. 6-21-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.