HB0603 Enrolled

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    AN ACT concerning revenue.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Income Tax Act is amended  by 
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changing Section 214 as follows:
 



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    (35 ILCS 5/214)



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    Sec. 214. Tax credit for affordable housing donations. 

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    (a) Beginning with taxable years ending on or after 
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December 31, 2001 and
until the taxable year ending on December 
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31, 2011
December 31, 2006, a taxpayer who makes a
donation 
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under Section 7.28 of the Illinois Housing Development Act is 
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entitled to a credit
against the tax imposed by subsections (a) 
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and (b) of Section 201 in an amount
equal
to 50% of the value of 
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the donation. Partners, shareholders of subchapter S

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corporations, and owners of limited liability companies (if the 
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limited
liability company is treated as a partnership for 
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purposes of federal and State
income
taxation) are entitled a 
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credit under this Section to be determined in
accordance with 
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the determination of income and distributive share of income

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under Sections 702 and 703 and subchapter S of the Internal 
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Revenue Code.
Persons or entities not subject to the tax 
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imposed by subsections (a) and (b)
of Section 201 and who make 
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a donation under Section 7.28 of the Illinois
Housing 
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Development Act are entitled to a credit as described in this

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subsection and may transfer that credit as described in 
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subsection (c).

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    (b) If the amount of the credit exceeds the tax liability 
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for the year, the
excess may be carried forward and applied to 
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the tax liability of the 5 taxable
years following the excess 
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credit year.  The tax credit shall be applied to the
earliest 
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year for which there is a tax liability.  If there are credits 
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for
more than one year that are available to offset a 
 


 






HB0603 Enrolled
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LRB094 04998 BDD 35031 b




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liability, the earlier credit
shall be applied first.

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    (c) The transfer of the tax credit allowed under this 
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Section may be made
(i) to the purchaser of land that has been 
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designated solely for affordable
housing projects in 
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accordance with the Illinois Housing Development Act or
(ii) to 
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another donor who has also made a donation in accordance with 
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Section 7.28 of the
Illinois Housing
Development Act.

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    (d) A taxpayer claiming the credit provided by this Section 
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must maintain
and record any information that the Department 
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may require by regulation
regarding the project for which the 
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credit is claimed.
When
claiming the credit provided by this 
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Section, the taxpayer must provide
information regarding the 
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taxpayer's donation to the project under the Illinois Housing 
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Development Act.

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(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.