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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 221 as follows: |
6 | | (35 ILCS 5/221) |
7 | | Sec. 221. Rehabilitation costs; qualified historic |
8 | | properties; River Edge Redevelopment Zone. |
9 | | (a) For taxable years beginning on or after January 1, 2012 |
10 | | and ending prior to January 1, 2018 January 1, 2017 , there |
11 | | shall be allowed a tax credit against the tax imposed by |
12 | | subsections (a) and (b) of Section 201 in an amount equal to |
13 | | 25% of qualified expenditures incurred by a qualified taxpayer |
14 | | during the taxable year in the restoration and preservation of |
15 | | a qualified historic structure located in a River Edge |
16 | | Redevelopment Zone pursuant to a qualified rehabilitation |
17 | | plan, provided that the total amount of such expenditures (i) |
18 | | must equal $5,000 or more and (ii) must exceed 50% of the |
19 | | purchase price of the property. |
20 | | (b) To obtain a tax credit pursuant to this Section, the |
21 | | taxpayer must apply with the Department of Commerce and |
22 | | Economic Opportunity. The Department of Commerce and Economic |
23 | | Opportunity, in consultation with the Historic Preservation |
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1 | | Agency, shall determine the amount of eligible rehabilitation |
2 | | costs and expenses. The Historic Preservation Agency shall |
3 | | determine whether the rehabilitation is consistent with the |
4 | | standards of the Secretary of the United States Department of |
5 | | the Interior for rehabilitation. Upon completion and review of |
6 | | the project, the Department of Commerce and Economic |
7 | | Opportunity shall issue a certificate in the amount of the |
8 | | eligible credits. At the time the certificate is issued, an |
9 | | issuance fee up to the maximum amount of 2% of the amount of |
10 | | the credits issued by the certificate may be collected from the |
11 | | applicant to administer the provisions of this Section. If |
12 | | collected, this issuance fee shall be deposited into the |
13 | | Historic Property Administrative Fund, a special fund created |
14 | | in the State treasury. Subject to appropriation, moneys in the |
15 | | Historic Property Administrative Fund shall be evenly divided |
16 | | between the Department of Commerce and Economic Opportunity and |
17 | | the Historic Preservation Agency to reimburse the Department of |
18 | | Commerce and Economic Opportunity and the Historic |
19 | | Preservation Agency for the costs associated with |
20 | | administering this Section. The taxpayer must attach the |
21 | | certificate to the tax return on which the credits are to be |
22 | | claimed. The Department of Commerce and Economic Opportunity |
23 | | may adopt rules to implement this Section. |
24 | | (c) The tax credit under this Section may not reduce the |
25 | | taxpayer's liability to less than
zero. |
26 | | (d) As used in this Section, the following terms have the |
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1 | | following meanings. |
2 | | "Qualified expenditure" means all the costs and expenses |
3 | | defined as qualified rehabilitation expenditures under Section |
4 | | 47 of the federal Internal Revenue Code that were incurred in |
5 | | connection with a qualified historic structure. |
6 | | "Qualified historic structure" means a certified historic |
7 | | structure as defined under Section 47 (c)(3) of the federal |
8 | | Internal Revenue Code. |
9 | | "Qualified rehabilitation plan" means a project that is |
10 | | approved by the Historic Preservation Agency as being |
11 | | consistent with the standards in effect on the effective date |
12 | | of this amendatory Act of the 97th General Assembly for |
13 | | rehabilitation as adopted by the federal Secretary of the |
14 | | Interior. |
15 | | "Qualified taxpayer" means the owner of the qualified |
16 | | historic structure or any other person who qualifies for the |
17 | | federal rehabilitation credit allowed by Section 47 of the |
18 | | federal Internal Revenue Code with respect to that qualified |
19 | | historic structure. Partners, shareholders of subchapter S |
20 | | corporations, and owners of limited liability companies (if the |
21 | | limited liability company is treated as a partnership for |
22 | | purposes of federal and State income taxation) are entitled to |
23 | | a credit under this Section to be determined in accordance with |
24 | | the determination of income and distributive share of income |
25 | | under Sections 702 and 703 and subchapter S of the Internal |
26 | | Revenue Code, provided that credits granted to a partnership, a |
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1 | | limited liability company taxed as a partnership, or other |
2 | | multiple owners of property shall be passed through to the |
3 | | partners, members, or owners respectively on a pro rata basis |
4 | | or pursuant to an executed agreement among the partners, |
5 | | members, or owners documenting any alternate distribution |
6 | | method.
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7 | | (Source: P.A. 97-203, eff. 7-28-11.)
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8 | | Section 99. Effective date. This Act takes effect upon |
9 | | becoming law.
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