Illinois General Assembly - Full Text of SB2534
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Full Text of SB2534  96th General Assembly

SB2534ham002 96TH GENERAL ASSEMBLY

Rep. Jehan A. Gordon

Filed: 5/24/2010

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2534

2     AMENDMENT NO. ______. Amend Senate Bill 2534, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
 
5     "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
8 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
13 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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1     (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
6 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
10 historic structure or any other person who may qualify for the
11 federal rehabilitation credit allowed by Section 47 of the
12 federal Internal Revenue Code. If the taxpayer is (i) a
13 corporation having an election in effect under Subchapter S of
14 the federal Internal Revenue Code, (ii) a partnership, or (iii)
15 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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1 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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1 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,
17 referred to in this Section as the assignor, may sell, assign,
18 convey, or otherwise transfer tax credits allowed and earned
19 under this Act. The taxpayer acquiring the credits, referred to
20 in this Section as the assignee, may use the amount of the
21 acquired credits to offset up to 100% of its income tax
22 liability for either the taxable year in which the qualified
23 rehabilitation plan was first placed into service or the
24 taxable year in which such acquisition was made. Unused credit
25 amounts claimed by the assignee may be carried forward for up

 

 

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1 to 10 years or carried back for up to 3 years, except that all
2 credits must be claimed within 10 years after the tax year in
3 which the qualified rehabilitation plan was first placed into
4 service and may not be carried back to a tax year prior to the
5 tax year in which the credit was issued. The assignor shall
6 enter into a written agreement with the assignee establishing
7 the terms and conditions of the agreement and shall perfect the
8 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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1 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
9 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
12 entitled to a credit against the taxes imposed under
13 subsections (a) and (b) of Section 201 of this Act as provided
14 in that Act. If the taxpayer is a partnership or Subchapter S
15 corporation, the credit shall be allowed to the partners or
16 shareholders in accordance with the determination of income and
17 distributive share of income under Sections 702 and 704 and
18 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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1 Act.
 
2     Section 99. Effective date. This Act takes effect upon
3 becoming law.".