97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1801

 

Introduced 2/9/2011, by Sen. David Koehler

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 30/5
35 ILCS 30/15
35 ILCS 30/25

    Amends the Historic Preservation Tax Credit Pilot Program Act. Provides that the program applies to all qualified historic structures (instead of only a hotel in Peoria). Removes the requirement that an application for a credit must be filed within a 6-month period. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1801LRB097 07869 HLH 47984 b

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 Historic Preservation Tax Credit Pilot
5Program Act is amended by changing Sections 5, 15, and 25 as
6follows:
 
7    (35 ILCS 30/5)
8    Sec. 5. Definitions. As used in this Section, unless the
9context clearly indicates otherwise:
10    (a) "Agency" means the Historic Preservation Agency.
11    (b) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (c) "Qualified expenditures" means all the costs and
14expenses defined as qualified rehabilitation expenditures
15under Section 47 of the federal Internal Revenue Code which
16were incurred in connection with a qualified historic
17structure.
18    (d) "Qualified historic structure" means a building a hotel
19that is located in the City of Peoria and that is defined as a
20certified historic structure under Section 47 (c)(3) of the
21federal Internal Revenue Code.
22    (e) "Qualified rehabilitation plan" means a project that is
23approved by the Agency as being consistent with the standards

 

 

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1in effect on the effective date of this Act for rehabilitation
2as adopted by the federal Secretary of the Interior.
3    (f) "Qualified taxpayer" means the owner of the qualified
4historic structure or any other person who may qualify for the
5federal rehabilitation credit allowed by Section 47 of the
6federal Internal Revenue Code. If the taxpayer is (i) a
7corporation having an election in effect under Subchapter S of
8the federal Internal Revenue Code, (ii) a partnership, or (iii)
9a limited liability company, the credit provided under this Act
10may be claimed by the shareholders of the corporation, the
11partners of the partnership, or the members of the limited
12liability company in the same manner as those shareholders,
13partners, or members account for their proportionate shares of
14the income or losses of the corporation, partnership, or
15limited liability company, or as provided in the by-laws or
16other executed agreement of the corporation, partnership, or
17limited liability company. Credits granted to a partnership, a
18limited liability company taxed as a partnership, or other
19multiple owners of property shall be passed through to the
20partners, members, or owners respectively on a pro rata basis
21or pursuant to an executed agreement among the partners,
22members, or owners documenting any alternate distribution
23method.
24(Source: P.A. 96-933, eff. 6-21-10.)
 
25    (35 ILCS 30/15)

 

 

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1    Sec. 15. Allowable credit. To the extent authorized by
2Section 25 of this Act, for taxable years beginning on or after
3January 1, 2010 and ending on or before December 31, 2015,
4there shall be allowed a tax credit against the tax imposed by
5subsections (a) and (b) of Section 201 of the Illinois Income
6Tax Act in an amount equal to 25% of qualified expenditures
7incurred by a qualified taxpayer during the taxable year in the
8restoration and preservation of a qualified historic structure
9pursuant to a qualified rehabilitation plan, provided that the
10total amount of such expenditures (i) must equal $5,000 or
11more, and (ii) must exceed 50% of the purchase price of the
12property. If the amount of any tax credit awarded under this
13Act exceeds the qualified taxpayer's income tax liability for
14the year in which the qualified rehabilitation plan was placed
15in service, the excess amount may be carried forward for
16deduction from the taxpayer's income tax liability in the next
17succeeding year or years until the total amount of the credit
18has been used, except that a credit may not be carried forward
19for deduction after the tenth taxable year after the taxable
20year in which the qualified rehabilitation plan was placed in
21service. To obtain a tax credit pursuant to this Act, an
22application must be made to the Department no later than 6
23months after the effective date of this Act. The Department, in
24consultation with the Agency, shall determine the amount of
25eligible rehabilitation costs and expenses. The Agency shall
26determine whether the rehabilitation is consistent with the

 

 

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1standards of the Secretary of the United States Department of
2the Interior for rehabilitation. Upon completion and review of
3the project, the Department shall issue a certificate in the
4amount of the eligible credits. At the time the certificate is
5issued, an issuance fee up to the maximum amount of 2% of the
6amount of the credits issued by the certificate may be
7collected from the applicant to administer the Act. If
8collected, this issuance fee shall be evenly divided between
9the Department and the Agency. The taxpayer must attach the
10certificate to the tax return on which the credits are to be
11claimed.
12(Source: P.A. 96-933, eff. 6-21-10.)
 
13    (35 ILCS 30/25)
14    Sec. 25. Pilot program; report. The Department may award no
15more than an aggregate of $10,000,000 in total tax credits
16pursuant to one qualified rehabilitation plans plan for one
17qualified historic structures structure. On or before December
1831, 2010 and on or before December 31 of each year thereafter
19through 2016, the Department must submit a report to the
20General Assembly evaluating the effectiveness of this Act in
21stimulating economic revitalization in the pilot program area.
22(Source: P.A. 96-933, eff. 6-21-10.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.