HB2108ham001 104TH GENERAL ASSEMBLY

Rep. Charles Meier

Filed: 3/14/2025

10400HB2108ham001 LRB104 11575 HLH 23877 a

AMENDMENT TO HOUSE BILL 2108

AMENDMENT NO. ______. Amend House Bill 2108 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by changing Section 226 as follows:

(35 ILCS 5/226)

Sec. 226. Natural disaster credit.

(a) For taxable years that begin on or after January 1, 2017 and begin prior to January 1, 2019, each taxpayer who owns qualified real property located in a county in Illinois that was declared a State disaster area by the Governor due to flooding in 2017 or 2018 is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to the lesser of $750 or the deduction allowed (whether or not the taxpayer determines taxable income under subsection (b) of Section 63 of the Internal Revenue Code) with respect to the qualified property under Section 165 of the Internal Revenue Code, determined without regard to the limitations imposed under subsection (h) of that Section. The township assessor or, if the township assessor is unable, the chief county assessment officer of the county in which the property is located, shall issue a certificate to the taxpayer identifying the taxpayer's property as damaged as a result of the natural disaster. The certificate shall include the name and address of the property owner, as well as the property index number or permanent index number (PIN) of the damaged property. The taxpayer shall attach a copy of such certificate to the taxpayer's return for the taxable year for which the credit is allowed.

(b) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset liability, the earlier credit shall be applied first.

(c) If the taxpayer is a partnership or Subchapter S corporation, the credit shall be allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) A taxpayer is not entitled to the credit under this Section if the taxpayer receives a Natural Disaster and Mine Subsidence Homestead Exemption under Section 15-173 of the Property Tax Code with respect to the qualified real property as a result of the natural disaster.

(e) The township assessor or, if the township assessor is unable to certify, the chief county assessment officer of the county in which the property is located, shall certify to the Department a listing of the properties located within the county that have been damaged as a result of the natural disaster (including the name and address of the property owner and the property index number or permanent index number (PIN) of each damage property).

(f) As used in this Section:

(1) "Qualified real property" means real property that is: (i) the taxpayer's principal residence or owned by a small business; (ii) damaged during the taxable year as a result of a disaster; and (iii) not used in a rental or leasing business.

(2) "Small business" has the meaning given to that term in Section 1-75 of the Illinois Administrative Procedure Act.

(g) Nothing in this Act prohibits the disclosure of information by officials of a county or municipality involving reports of damaged property or the owners of damaged property if that disclosure is made to a township or county assessment official in connection with a credit obtained or sought under this Section.

(Source: P.A. 100-555, eff. 11-16-17; 100-587, eff. 6-4-18; 100-731, eff. 1-1-19; 101-81, eff. 7-12-19.)

Section 10. The Property Tax Code is amended by changing Section 15-173 as follows:

(35 ILCS 200/15-173)

Sec. 15-173. Natural Disaster and Mine Subsidence Homestead Exemption.

(a) This Section may be cited as the Natural Disaster and Mine Subsidence Homestead Exemption.

(b) As used in this Section:

"Base amount" means the base year equalized assessed value of the residence.

"Base year" means the taxable year prior to the taxable year in which the natural disaster or mine subsidence occurred.

"Chief county assessment officer" means the County Assessor or Supervisor of Assessments of the county in which the property is located.

"Equalized assessed value" means the assessed value as equalized by the Illinois Department of Revenue.

"Homestead property" has the meaning ascribed to that term in Section 15-175 of this Code.

Mine subsidence" means an occurrence of widespread or severe damage or loss of property resulting from lateral or vertical ground movement that is caused by a failure, initiated at the mine level, of man-made underground mines, including, but not limited to, coal mines, clay mines, limestone mines, and fluorspar mines, and that directly damages residences or commercial buildings.

"Mine subsidence" does not include lateral or vertical ground movement caused by earthquakes, landslides, volcanic eruption, soil conditions, soil erosion, soil freezing and thawing, improperly compacted soil, construction defects, roots of trees and shrubs, or the collapse of storm and sewer drains and rapid transit tunnels.

"Natural disaster" means an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, storm, or extended period of severe inclement weather. In the case of a residential structure affected by flooding, the structure shall not be eligible for this homestead improvement exemption unless it is located within a local jurisdiction which is participating in the National Flood Insurance Program. A proclamation of disaster by the President of the United States or Governor of the State of Illinois is not a prerequisite to the classification of an occurrence as a natural disaster under this Section.

(c) A homestead exemption shall be granted by the chief county assessment officer for homestead properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year 2012 or any taxable year thereafter. In addition, for taxable year 2026 and each taxable year thereafter, a homestead exemption shall be granted by the chief county assessment officer for homestead properties containing a residential structure that has been rebuilt following an occurrence of mine subsidence that occurred in taxable year 2020 or thereafter. The amount of the exemption is the equalized assessed value of the residence in the first taxable year for which the taxpayer applies for an exemption under this Section minus the base amount. To be eligible for an exemption under this Section: (i) the residential structure must be rebuilt within 2 years after the date of the natural disaster or mine subsidence; and (ii) the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster or mine subsidence. If the exemption is granted as a result of a natural disaster, the The taxpayer's initial application for an exemption under this Section must be made no later than the first taxable year after the residential structure is rebuilt. If the exemption is granted as a result of mine subsidence, the taxpayer's initial application for an exemption under this Section must be made no later than (i) the third taxable year after the effective date of this amendatory Act of the 104th General Assembly or (ii) the third taxable year after the residential structure is rebuilt or newly-constructed, as applicable, whichever is later. If the exemption is granted as a result of mine subsidence, the structure may be rebuilt on the original property, or the exemption under this Section may be applied to a newly-constructed residence on different property in the same county if (i) the structure was not able to be rebuilt on the original property because of the effects of mine subsidence, (ii) the newly-constructed residence is homestead property that is owned and occupied as a primary residence by the taxpayer who qualified for the exemption under this Section, and (iii) the newly-constructed residence is the first residence that is owned by the taxpayer after the mine subsidence occurrence that gave rise to the exemption under this Section. The exemption shall continue at the same annual amount until the taxable year in which the property is sold or transferred.

(d) To receive the exemption, the taxpayer shall submit an application to the chief county assessment officer of the county in which the property is located by July 1 of each taxable year. A county may, by resolution, establish a date for submission of applications that is different than July 1. The chief county assessment officer may require additional documentation to be provided by the applicant. The applications shall be clearly marked as applications for the Natural Disaster and Mine Subsidence Homestead Exemption.

(e) Property is not eligible for an exemption under this Section and Section 15-180 for the same natural disaster or catastrophic event. The property may, however, remain eligible for an additional exemption under Section 15-180 for any separate event occurring after the property qualified for an exemption under this Section.

(f) The exemption under this Section carries over to the benefit of the surviving spouse as long as the spouse holds the legal or beneficial title to the homestead and permanently resides thereon.

(g) Notwithstanding Sections 6 and 8 of the State Mandates Act, no reimbursement by the State is required for the implementation of any mandate created by this Section.

(Source: P.A. 97-716, eff. 6-29-12.)".