Full Text of SB0488 96th General Assembly
SB0488sam001 96TH GENERAL ASSEMBLY
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Sen. Dan Kotowski
Filed: 3/25/2009
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| AMENDMENT TO SENATE BILL 488
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| AMENDMENT NO. ______. Amend Senate Bill 488 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the | 5 |
| Historic Rehabilitation Tax Pilot Project Credit Act. | 6 |
| Section 5. Definitions. | 7 |
| As used in this Act, unless the context requires otherwise: | 8 |
| (1) "Certified historic structure" means a property | 9 |
| located in Illinois that is listed individually on the National | 10 |
| Register of Historic Places or is designated as a historic | 11 |
| structure by a unit of local government. | 12 |
| (2) "Eligible property" means property located in an | 13 |
| approved demonstration area in Illinois that is offered or used | 14 |
| for residential, non-profit, local governmental, or business | 15 |
| purposes. | 16 |
| (3) "Structure in a historic district" means a structure |
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| located in an approved demonstration area in Illinois that is | 2 |
| certified by the United States Department of the Interior as | 3 |
| contributing to the historic significance of a certified | 4 |
| historic district listed on the National Register of Historic | 5 |
| Places, a local district that has been certified by the United | 6 |
| States Department of the Interior, or a local district that has | 7 |
| been designated by a local government, either municipal or | 8 |
| county. | 9 |
| Section 10. Rehabilitation of eligible property. Any | 10 |
| person, firm, partnership, trust, estate, corporation, or | 11 |
| association incurring costs and expenses for the | 12 |
| rehabilitation of eligible property, when that eligible | 13 |
| property is a certified historic structure or a structure in a | 14 |
| certified historic district, is entitled to a credit against | 15 |
| the taxes imposed under the Illinois Income Tax Act (35 ILCS | 16 |
| 5/), except Article 7 of that Act, and under Section 409 of the | 17 |
| Illinois Insurance Code (215 ILCS 5/409) in an amount equal to | 18 |
| 25% of the total costs and expenses of rehabilitation incurred | 19 |
| after July 1, 2009. Expenses of rehabilitation include, but are | 20 |
| not limited to, qualified rehabilitation expenditures as | 21 |
| defined under Section 47(c)(2)(A) of the Internal Revenue Code | 22 |
| of 1986, as amended, and the related regulations thereunder, | 23 |
| provided the rehabilitation costs associated with | 24 |
| rehabilitation and the expenses exceed 50% of the total basis | 25 |
| in the property and the rehabilitation meets standards |
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| consistent with the standards of the Secretary of the United | 2 |
| States Department of the Interior for rehabilitation as | 3 |
| determined by the Department of Commerce and Economic | 4 |
| Opportunity in consultation with the State Historic | 5 |
| Preservation Officer. | 6 |
| Section 15. Use of tax credits, carried forward or carried | 7 |
| back, assignment. | 8 |
| (a) If the amount of the credit exceeds the total tax | 9 |
| liability for the year in which the rehabilitated property is | 10 |
| placed in service, the amount that exceeds the tax liability | 11 |
| may be carried back to any of the 3 preceding years and carried | 12 |
| forward for any of the succeeding 10 years as a credit against | 13 |
| the taxes imposed under the Illinois Income Tax Act (except | 14 |
| Article 7) and Section 409 of the Illinois Insurance Code, or | 15 |
| until the full credit is used, whichever occurs first. | 16 |
| Taxpayers eligible for the credits may transfer, sell, or | 17 |
| assign all or part of the credits. Not-for-profit entities are | 18 |
| eligible to receive, transfer, sell, or assign the credits. | 19 |
| Credits granted to a partnership, a limited liability company | 20 |
| taxed as a partnership, or multiple owners of property shall be | 21 |
| passed through to the partners, members, or owners respectively | 22 |
| pro rata or pursuant to an executed agreement among the | 23 |
| partners, members, or owners documenting an alternate | 24 |
| distribution method. | 25 |
| (b) The assignor of the credits may transfer, sell, or |
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| assign any or all of the credits to the assignee who may use | 2 |
| the acquired credits to offset tax liabilities imposed under | 3 |
| the Illinois Income Tax Act (except Article 7) and Section 409 | 4 |
| of the Illinois Insurance Code. The assignor must perfect the | 5 |
| transfer, sale, or assignment by notifying the Department of | 6 |
| Commerce and Economic Opportunity in writing within 30 calendar | 7 |
| days following the effective date of the transfer, sale, or | 8 |
| assignment, and must provide any information that is required | 9 |
| by the Department of Commerce and Economic Opportunity to | 10 |
| administer and carry out the provisions of this Section. The | 11 |
| credits may be transferred more than once. | 12 |
| (c) If credits that have been transferred are subsequently | 13 |
| reduced, adjusted, or recaptured by the Department of Commerce | 14 |
| and Economic Opportunity, Department of Revenue, or any other | 15 |
| applicable government agency, only the transferor originally | 16 |
| allowed the credits, and not any subsequent transferee of the | 17 |
| credits, shall be held liable to repay any amount of that | 18 |
| reduction, adjustment, or recapture of the credits. | 19 |
| Section 20. Application to claim tax credit; certificates | 20 |
| of eligible credits. | 21 |
| (a) To obtain the credit, an application must be made to | 22 |
| the Department of Commerce and Economic Opportunity. The | 23 |
| Department may approve tax credit applications for building | 24 |
| rehabilitation projects located in communities selected for | 25 |
| participation in the heritage tourism and preservation program |
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| of its Bureau of Tourism. The Department may award no more than | 2 |
| an aggregate of $1,000,000 in total tax credits in any single | 3 |
| Regional Tourism Development area. Owners of historic | 4 |
| properties located within heritage tourism and preservation | 5 |
| communities may apply to the Department for a tax credit of up | 6 |
| to 25% of approved costs for historic rehabilitation. The | 7 |
| Department, in consultation with the Director of Historic Sites | 8 |
| and Preservation and the United States Department of the | 9 |
| Interior, shall determine the amount of eligible | 10 |
| rehabilitation costs and expenses and whether the | 11 |
| rehabilitation meets the standards of the Secretary of the | 12 |
| United States Department of the Interior for rehabilitation. | 13 |
| The Department of Commerce and Economic Opportunity shall issue | 14 |
| a certificate in the amount of the eligible credits. The | 15 |
| taxpayer must attach the certificate to the tax return on which | 16 |
| the credits are to be claimed. | 17 |
| (b) The Department of Commerce and Economic Opportunity | 18 |
| shall determine, on an annual basis, the overall economic | 19 |
| impact to the State from the rehabilitation of eligible | 20 |
| property. | 21 |
| (c) The Department of Commerce and Economic Opportunity is | 22 |
| granted and has all powers necessary or convenient to carry out | 23 |
| the provisions of this Act, including, but not limited to, the | 24 |
| power to adopt rules for the administration of this Act and the | 25 |
| power to establish application forms and other agreements.
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| Section 99. Effective date. This Act takes effect upon | 2 |
| becoming law.".
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