103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2880

 

Introduced 1/24/2024, by Sen. Michael W. Halpin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 31/20

    Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2025 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately.


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A BILL FOR

 

SB2880LRB103 38031 HLH 68163 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 Act is
5amended by changing Section 20 as follows:
 
6    (35 ILCS 31/20)
7    Sec. 20. Limitations, reporting, and monitoring.
8    (a) In each calendar year beginning on or after January 1,
92019 and ending on or before December 31, 2023, the Division is
10authorized to allocate $15,000,000 in tax credits in addition
11to any unallocated, returned, or rescinded allocations from
12previous years, pursuant to qualified rehabilitation plans. In
13the calendar year beginning on January 1, 2024 and ending on
14December 31, 2024, the Division is authorized to allocate
15$25,000,000 in tax credits in addition to any unallocated,
16returned, or rescinded allocations from previous years,
17pursuant to qualified rehabilitation plans. In each calendar
18year beginning on or after January 1, 2025 January 1, 2024 and
19ending on or before December 31, 2028, the Division is
20authorized to allocate $75,000,000 $25,000,000 in tax credits
21in addition to any unallocated, returned, or rescinded
22allocations from previous years, pursuant to qualified
23rehabilitation plans. The Division shall not allocate or award

 

 

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1more than $3,000,000 in tax credits with regard to a single
2qualified rehabilitation plan. In allocating tax credits under
3this Act, the Division must prioritize applications that meet
4one or more of the following:
5        (1) the structure is located in a county that borders
6    a State with a historic income-producing property
7    rehabilitation credit;
8        (2) the structure was previously owned by a federal,
9    state, or local governmental entity for no less than 6
10    months;
11        (3) the structure is located in a census tract that
12    has a median family income at or below the State median
13    family income; data from the most recent 5-year estimate
14    from the American Community Survey (ACS), published by the
15    U.S. Census Bureau, shall be used to determine
16    eligibility;
17        (4) the qualified rehabilitation plan includes in the
18    development partnership a Community Development Entity or
19    a low-profit (B Corporation) or not-for-profit
20    organization, as defined by Section 501(c)(3) of the
21    Internal Revenue Code; or
22        (5) the structure is located in an area declared under
23    an Emergency Declaration or Major Disaster Declaration
24    under the federal Robert T. Stafford Disaster Relief and
25    Emergency Assistance Act. The declaration must be no older
26    than 3 years at the time of application.

 

 

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1    (b) The annual aggregate authorization of $15,000,000 set
2forth in subsection (a) shall be allocated by the Division, in
3such proportion as determined by the Director twice in each
4calendar year that the program is in effect, provided that the
5amount initially allocated by the Division for the first
6calendar year application period shall not exceed 65% of the
7total amount available for allocation. Any unallocated amount
8remaining as of the end of the second application period of a
9given calendar year shall be rolled over and added to the total
10authorized amount for the next available calendar year. The
11qualified rehabilitation plan must meet a readiness test, as
12defined by the Division, in order for the application to
13qualify. In any given application period, applications that
14qualify under this Act will be prioritized as set forth in
15subsection (a) and placed in a queue based on the date and time
16the application is received. Applicants whose applications
17qualify but do not receive an allocation must reapply to be
18considered in subsequent application periods.
19    (c) Subject to appropriation to the Division, moneys in
20the Historic Property Administrative Fund shall be used, on a
21biennial basis, beginning at the end of the second fiscal year
22after the effective date of this Act, to hire a qualified third
23party to prepare a biennial report to assess the overall
24impact of this Act from the qualified rehabilitation plans
25under this Act completed in that year and in previous years.
26Baseline data of the metrics in the report shall be collected

 

 

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1at the initiation of a qualified rehabilitation plan. The
2overall economic impact shall include at least:
3        (1) the number of applications, project locations, and
4    proposed use of qualified historic structures;
5        (2) the amount of credits awarded and the number and
6    location of projects receiving credit allocations;
7        (3) the status of ongoing projects and projected
8    qualifying expenditures for ongoing projects;
9        (4) for completed projects, the total amount of
10    qualifying rehabilitation expenditures and non-qualifying
11    expenditures, the number of housing units created and the
12    number of housing units that qualify as affordable, and
13    the total square footage rehabilitated and developed;
14        (5) direct, indirect, and induced economic impacts;
15        (6) temporary, permanent, and construction jobs
16    created; and
17        (7) sales, income, and property tax generation before
18    construction, during construction, and after completion.
19    The report to the General Assembly shall be filed with the
20Clerk of the House of Representatives and the Secretary of the
21Senate in electronic form only, in the manner that the Clerk
22and the Secretary shall direct.
23    (d) Any time prior to issuance of a tax credit
24certificate, the Director of the Division, the State Historic
25Preservation Officer, or staff of the Division may, upon
26reasonable notice of not less than 3 business days, conduct a

 

 

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1site visit to the project to inspect and evaluate the project.
2    (e) Any time prior to the issuance of a tax credit
3certificate, the Director may, upon reasonable notice of not
4less than 30 calendar days, request a status report from the
5Applicant consisting of information and updates relevant to
6the status of the project. Status reports shall not be
7requested more than twice yearly.
8    (f) In order to demonstrate sufficient evidence of
9reviewable progress within 12 months after the date the
10Applicant received notification of allocation from the
11Division, the Director may require the Applicant to provide
12all of the following:
13        (1) a viable financial plan which demonstrates by way
14    of an executed agreement that all financing has been
15    secured for the project; such financing shall include, but
16    not be limited to, equity investment as demonstrated by
17    letters of commitment from the owner of the property,
18    investment partners, and equity investors;
19        (2) (blank); and
20        (3) all historic approvals, including all federal and
21    State rehabilitation documents required by the Division.
22    The Director shall review the submitted evidence and may
23request additional documentation from the Applicant if
24necessary. The Applicant will have 30 calendar days to provide
25the information requested, otherwise the allocation may be
26rescinded at the discretion of the Director.

 

 

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1    (g) In order to demonstrate sufficient evidence of
2reviewable progress within 24 months after the date the
3application received notification of approval from the
4Division, the Director may require the Applicant to provide
5detailed evidence that the Applicant has secured and closed on
6financing for the complete scope of rehabilitation for the
7project. To demonstrate evidence that the Applicant has
8secured and closed on financing, the Applicant will need to
9provide signed and processed loan agreements, bank financing
10documents or other legal and contractual evidence to
11demonstrate that adequate financing is available to complete
12the project. The Director shall review the submitted evidence
13and may request additional documentation from the Applicant if
14necessary. The Applicant will have 30 calendar days to provide
15the information requested, otherwise the allocation may be
16rescinded at the discretion of the Director.
17    If the Applicant fails to document reviewable progress
18within 24 months of approval, the Director may notify the
19Applicant that the allocation is rescinded. However, should
20financing and construction be imminent, the Director may elect
21to grant the Applicant no more than 5 months to close on
22financing and commence construction. If the Applicant fails to
23meet these conditions in the required timeframe, the Director
24shall notify the Applicant that the allocation is rescinded.
25Any such rescinded allocation shall be added to the aggregate
26amount of credits available for allocation for the year in

 

 

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1which the forfeiture occurred.
2    The amount of the qualified expenditures identified in the
3qualified taxpayer's certification of completion and reflected
4on the Historic Preservation Tax Credit certificate issued by
5the Director is subject to inspection, examination, and audit
6by the Department of Revenue.
7    The qualified taxpayer shall establish and maintain for a
8period of 4 years following the effective date on a project tax
9credit certificate such records as required by the Director.
10Such records include, but are not limited to, records
11documenting project expenditures and compliance with the U.S.
12Secretary of the Interior's Standards. The qualified taxpayer
13shall make such records available for review and verification
14by the Director, the State Historic Preservation Officer, the
15Department of Revenue, or appropriate staff, as well as other
16appropriate State agencies. In the event the Director
17determines an Applicant has submitted a status report
18containing erroneous information or data not supported by
19records established and maintained under this Act, the
20Director may, after providing notice, require the Applicant to
21resubmit corrected reports.
22(Source: P.A. 102-741, eff. 5-6-22; 103-9, eff. 6-7-23.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.