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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 214 as follows:
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| 6 | (35 ILCS 5/214)
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| 7 | Sec. 214. Tax credit for affordable housing donations.
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| 8 | (a) Beginning with taxable years ending on or after | ||||||
| 9 | December 31, 2001 and
until the taxable year ending on | ||||||
| 10 | December 31, 2026 December 31, 2021, a taxpayer who makes a
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| 11 | donation under Section 7.28 of the Illinois Housing | ||||||
| 12 | Development Act is entitled to a credit
against the tax | ||||||
| 13 | imposed by subsections (a) and (b) of Section 201 in an amount
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| 14 | equal
to 50% of the value of the donation. Partners, | ||||||
| 15 | shareholders of subchapter S
corporations, and owners of | ||||||
| 16 | limited liability companies (if the limited
liability company | ||||||
| 17 | is treated as a partnership for purposes of federal and State
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| 18 | income
taxation) are entitled to a credit under this Section | ||||||
| 19 | to be determined in
accordance with the determination of | ||||||
| 20 | income and distributive share of income
under Sections 702 and | ||||||
| 21 | 703 and subchapter S of the Internal Revenue Code.
Persons or | ||||||
| 22 | entities not subject to the tax imposed by subsections (a) and | ||||||
| 23 | (b)
of Section 201 and who make a donation under Section 7.28 | ||||||
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| 1 | of the Illinois
Housing Development Act are entitled to a | ||||||
| 2 | credit as described in this
subsection and may transfer that | ||||||
| 3 | credit as described in subsection (c).
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| 4 | (b) If the amount of the credit exceeds the tax liability | ||||||
| 5 | for the year, the
excess may be carried forward and applied to | ||||||
| 6 | the tax liability of the 5 taxable
years following the excess | ||||||
| 7 | credit year. The tax credit shall be applied to the
earliest | ||||||
| 8 | year for which there is a tax liability. If there are credits | ||||||
| 9 | for
more than one year that are available to offset a | ||||||
| 10 | liability, the earlier credit
shall be applied first.
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| 11 | (c) The transfer of the tax credit allowed under this | ||||||
| 12 | Section may be made
(i) to the purchaser of land that has been | ||||||
| 13 | designated solely for affordable
housing projects in | ||||||
| 14 | accordance with the Illinois Housing Development Act or
(ii) | ||||||
| 15 | to another donor who has also made a donation in accordance | ||||||
| 16 | with Section 7.28 of the
Illinois Housing
Development Act.
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| 17 | (d) A taxpayer claiming the credit provided by this | ||||||
| 18 | Section must maintain
and record any information that the | ||||||
| 19 | Department may require by regulation
regarding the project for | ||||||
| 20 | which the credit is claimed.
When
claiming the credit provided | ||||||
| 21 | by this Section, the taxpayer must provide
information | ||||||
| 22 | regarding the taxpayer's donation to the project under the | ||||||
| 23 | Illinois Housing Development Act.
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| 24 | (Source: P.A. 99-915, eff. 12-20-16.)
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| 25 | Section 99. Effective date. This Act takes effect upon | ||||||
| 26 | becoming law.
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