Full Text of SB2534 96th General Assembly
SB2534ham002 96TH GENERAL ASSEMBLY
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Rep. Jehan A. Gordon
Filed: 5/24/2010
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| AMENDMENT TO SENATE BILL 2534
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| AMENDMENT NO. ______. Amend Senate Bill 2534, AS AMENDED, | 3 |
| by replacing everything after the enacting clause with the | 4 |
| following:
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| "Section 1. Short title. This Act may be cited as the | 6 |
| Historic Preservation Tax Credit Pilot Program Act. | 7 |
| Section 5. Definitions. As used in this Section, unless the
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| context clearly indicates otherwise: | 9 |
| (a) "Agency" means the Historic Preservation Agency. | 10 |
| (b) "Department" means the Department of Commerce and | 11 |
| Economic Opportunity. | 12 |
| (c) "Qualified expenditures" means all the costs and
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| expenses defined as qualified rehabilitation expenditures | 14 |
| under Section 47 of the federal Internal Revenue Code which | 15 |
| were incurred in connection with a qualified historic | 16 |
| structure. |
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| (d) "Qualified historic structure" means a hotel that is | 2 |
| located in the City of Peoria and that is defined as a | 3 |
| certified historic structure under Section 47 (c)(3) of the | 4 |
| federal Internal Revenue Code. | 5 |
| (e) "Qualified rehabilitation plan" means a project that is
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| approved by the Agency as being consistent with the standards | 7 |
| in effect on the effective date of this Act for rehabilitation | 8 |
| as adopted by the federal Secretary of the Interior. | 9 |
| (f) "Qualified taxpayer" means the owner of the qualified
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| historic structure or any other person who may qualify for the
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| federal rehabilitation credit allowed by Section 47 of the
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| federal Internal Revenue Code. If the taxpayer is (i) a
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| corporation having an election in effect under Subchapter S of
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| the federal Internal Revenue Code, (ii) a partnership, or (iii)
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| a limited liability company, the credit provided under this Act | 16 |
| may be claimed by the shareholders of the
corporation, the | 17 |
| partners of the partnership, or the members of
the limited | 18 |
| liability company in the same manner as those
shareholders, | 19 |
| partners, or members account for their
proportionate shares of | 20 |
| the income or losses of the
corporation, partnership, or | 21 |
| limited liability company, or as
provided in the by-laws or | 22 |
| other executed agreement of the
corporation, partnership, or | 23 |
| limited liability company.
Credits granted to a partnership, a | 24 |
| limited liability company
taxed as a partnership, or other | 25 |
| multiple owners of property
shall be passed through to the | 26 |
| partners, members, or owners
respectively on a pro rata basis |
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| or pursuant to an executed
agreement among the partners, | 2 |
| members, or owners documenting
any alternate distribution | 3 |
| method. | 4 |
| Section 15. Allowable credit. To the extent authorized by | 5 |
| Section 25 of this Act, for taxable years beginning on or after | 6 |
| January 1, 2010 and ending on or before December 31, 2015, | 7 |
| there shall be allowed a
tax credit against the tax imposed by | 8 |
| subsections (a) and (b)
of Section 201 of the Illinois Income | 9 |
| Tax Act in an amount
equal to 25% of qualified expenditures | 10 |
| incurred by a qualified
taxpayer during the taxable year in the | 11 |
| restoration and preservation of a qualified
historic structure | 12 |
| pursuant to a qualified rehabilitation plan, provided that the | 13 |
| total amount of such expenditures (i) must equal $5,000 or | 14 |
| more, and (ii) must exceed 50% of the purchase price of the | 15 |
| property. If the amount of any tax credit awarded under this | 16 |
| Act exceeds the qualified taxpayer's income tax liability for | 17 |
| the year in which the qualified rehabilitation plan was placed | 18 |
| in service, the excess amount may be carried forward for | 19 |
| deduction from the taxpayer's income tax liability in the next | 20 |
| succeeding year or years until the total amount of the credit | 21 |
| has been used, except that a credit may not be carried forward | 22 |
| for deduction after the tenth taxable year after the taxable | 23 |
| year in which the qualified rehabilitation plan was placed in | 24 |
| service. To obtain a tax credit pursuant to this Act, an | 25 |
| application must be made to the Department no later than 6 |
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| months after the effective date of this Act. The Department, in | 2 |
| consultation with the Agency, shall determine the amount of | 3 |
| eligible rehabilitation costs and expenses. The Agency shall | 4 |
| determine whether the rehabilitation is consistent with the | 5 |
| standards of the Secretary of the United States Department of | 6 |
| the Interior for rehabilitation. Upon completion and review of | 7 |
| the project, the Department shall issue a certificate in the | 8 |
| amount of the eligible credits. At the time the certificate is | 9 |
| issued, an issuance fee up to the maximum amount of 2% of the | 10 |
| amount of the credits issued by the certificate may be | 11 |
| collected from the applicant to administer the Act. If | 12 |
| collected, this issuance fee shall be evenly divided between | 13 |
| the Department and the Agency. The taxpayer must attach the | 14 |
| certificate to the tax return on which the credits are to be | 15 |
| claimed. | 16 |
| Section 20. Transfer of credits. Any qualified taxpayer,
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| referred to in this Section as the assignor, may sell, assign,
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| convey, or otherwise transfer tax credits allowed and earned
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| under this Act. The taxpayer acquiring the credits, referred to
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| in this Section as the assignee, may use the amount of the
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| acquired credits to offset up to 100% of its income tax
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| liability for either the taxable year in which the qualified
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| rehabilitation plan was first placed into service or the
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| taxable year in which such acquisition was made. Unused credit
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| amounts claimed by the assignee may be carried forward for up
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| to 10 years or carried back for up to 3 years, except that all
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| credits must be claimed within 10 years after the tax year in
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| which the qualified rehabilitation plan was first placed into
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| service and may not be carried back to a tax year prior to the
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| tax year in which the credit was issued. The assignor shall
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| enter into a written agreement with the assignee establishing
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| the terms and conditions of the agreement and shall perfect the
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| transfer by notifying the Department in writing within 90 | 9 |
| calendar days after the effective date of the transfer and | 10 |
| shall provide any information as may be required by the | 11 |
| Department to administer and carry out the provisions of this | 12 |
| Section. If credits that have been transferred are subsequently | 13 |
| reduced, adjusted, or recaptured, in whole or in part, by the | 14 |
| Department, the Department of Revenue, or any other applicable | 15 |
| government agency, only the original qualified taxpayer that | 16 |
| was awarded the credits, and not any subsequent assignee of the | 17 |
| credits, shall be held liable to repay any amount of such | 18 |
| reduction, adjustment, or recapture of the credits. | 19 |
| Section 25. Pilot program; report. The Department may award | 20 |
| no more than an aggregate of $10,000,000 in total tax credits | 21 |
| pursuant to one qualified rehabilitation plan for one qualified | 22 |
| historic structure. On or before December 31, 2010 and on or | 23 |
| before December 31 of each year thereafter through 2016, the | 24 |
| Department must submit a report to the General Assembly | 25 |
| evaluating the effectiveness of this Act in stimulating |
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| economic revitalization in the pilot program area. | 2 |
| Section 30. Powers. The Department and the Agency shall | 3 |
| promulgate rules and regulations for the administration of this | 4 |
| Act. | 5 |
| Section 35. The Illinois Income Tax Act is amended by | 6 |
| adding Section 219 as follows: | 7 |
| (35 ILCS 5/219 new) | 8 |
| Sec. 219. Historic preservation credit. For tax years
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| beginning on or after January 1, 2010 and ending on or before | 10 |
| December 31, 2015, a taxpayer who qualifies
for a credit under | 11 |
| the Historic Preservation Tax Credit Pilot Program Act is
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| entitled to a credit against the taxes imposed under
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| subsections (a) and (b) of Section 201 of this Act as provided
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| in that Act. If the taxpayer is a partnership or Subchapter S
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| corporation, the credit shall be allowed to the partners or
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| shareholders in accordance with the determination of income and
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| distributive share of income under Sections 702 and 704 and
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| Subchapter S of the Internal Revenue Code. | 19 |
| If the amount of any tax credit awarded under this Section | 20 |
| exceeds the qualified taxpayer's income tax liability for the | 21 |
| year in which the qualified rehabilitation plan was placed in | 22 |
| service, the excess amount may be carried forward or back as | 23 |
| provided in the Historic Preservation Tax Credit Pilot Program |
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| Act.
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.".
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