SB2445sam001 102ND GENERAL ASSEMBLY

Sen. Mattie Hunter

Filed: 4/8/2021

10200SB2445sam001 LRB102 17214 HLH 24846 a

AMENDMENT TO SENATE BILL 2445

AMENDMENT NO. ______. Amend Senate Bill 2445 on page 2, line 4, after "service.", by inserting "No credit period may include a taxable year beginning prior to January 1, 2024."; and

on page 2, by replacing lines 24 through 26 with the following: "credit set forth in Section 42 of the Internal Revenue Code."; and

on page 4, line 19, by replacing "2021" with "2024"; and

on page 9, line 1, by replacing "2022" with "2025"; and

on page 9, line 13, by replacing "Department and the Department of Insurance" with "owner of the qualified development, the Department, and the Department of Insurance"; and

on page 9, line 14, by replacing "recaptured", with "recaptured and the event triggering recapture. The Authority shall provide such notice to the Department and Department of Insurance no earlier than 6 months after the event triggering recapture to allow the owner of the qualified development an opportunity to correct the event."; and

on page 9, line 17, by replacing "and" with "or"; and

on page 9, line 23, after "recapture.", by inserting "If multiple taxpayers claimed a credit with respect to the building for which the credit is to be recaptured, each of those taxpayers shall be liable for a portion of the recapture equal to the percentage of credit with respect to that building originally claimed by that taxpayer."; and

on page 11, lines 4 and 5, by replacing "by December 31 of each allocation year" with "by February 28 of each year following the annual allocation"; and

on page 13, line 21, by replacing "2022" with "2025"; and

on page 13, line 23, by replacing "2021" with "2024"; and

on page 15, line 3, by replacing "2022" with "2024"; and

on page 21, lines 12 and 13, by replacing "by adding Section 15-178" with "by changing Section 10-260 and by adding Section 15-178"; and

on page 21, immediately below line 13, by inserting the following:

"(35 ILCS 200/10-260)

Sec. 10-260. Low-income housing. In determining the fair cash value of property receiving benefits from the Low-Income Housing Tax Credit authorized by Section 42 of the Internal Revenue Code, 26 U.S.C. 42, emphasis shall be given to the income approach, except in those circumstances where another method is clearly more appropriate.

In counties with more than 3,000,000 inhabitants, during a general reassessment year in accordance with Section 9-220 or at such other time that a property is reassessed, to determine the fair cash value of any low-income housing project that qualifies for the Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code: (i) in assessing any building with 7 or more units, the assessment officer must consider the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties; and (ii) in assessing any building with 6 units or less, the assessment officer, prior to finalizing and certifying assessments to the Board of Review, shall reassess the building considering the actual or projected net operating income attributable to the property, capitalized at rates for similarly encumbered Section 42 properties. The capitalization rate for items (i) and (ii) shall be one that reflects the prevailing cost of capital for other types of similarly encumbered Section 42 properties in the geographic market in which the low-income housing project is located.

All low-income housing projects that seek to be assessed in accordance with the provisions of this Section shall certify to the appropriate local assessment officer that the owner or owners qualify for the Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code for the property, in a form prescribed by that assessment officer.

(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)"; and

on page 25, line 22, by replacing "or improvements are" with "is"; and

on page 26, line 3, by replacing "or improvements are" with "is"; and

on page 26, line 10, by replacing "or improvements are" with "is"; and

on page 26, line 17, by replacing "or improvements are" with "is"; and

on page 26, lines 25 and 26, by replacing "or improvements are" with "is"; and

on page 34, line 11, by replacing "," with ":"; and

on page 34, immediately below line 14, by inserting the following:

""Assessed value for the residential real property in the base year" means the value in effect at the end of the taxable year prior to the latter of: (1) the date of initial application; or (2) the date on which 20% of the total number of units in the property are occupied by eligible tenants paying eligible rent under this Section."; and

on page 49, line 15, by replacing "2022" with "2025"; and

on page 49, line 17, by replacing "2021" with "2024"; and

on page 53, line 1, by replacing "2022" with "2025"; and

on page 53, line 3, by replacing "2021" with "2024".