Full Text of HB4533 98th General Assembly
HB4533 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB4533 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: | | New Act | | 35 ILCS 5/224 new | | 215 ILCS 5/409.1 new | |
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Creates the Illinois Rehabilitation and Revitalization Tax Credit Act. Creates a credit against taxes imposed under the Illinois Income Tax Act and the Illinois Insurance Code in an aggregate amount equal to 20% of qualified expenditures incurred by a qualified taxpayer pursuant to a qualified rehabilitation plan on a qualified structure, provided that the total amount of such qualified expenditures exceeds the greater of $5,000 or the adjusted basis of the property. Provides that credits may be carried forward for a period of 5 years, or carried back for a period of one year. Provides that credits awarded for each qualified rehabilitation project shall be limited to a maximum of $3,000,000. Provides that credits may be assigned or transferred. Effective January 1, 2015. |
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Illinois Rehabilitation and Revitalization Tax Credit Act. | 6 | | Section 5. Definitions. As used in this Section, unless the | 7 | | context clearly indicates otherwise: | 8 | | (a) "Agency" means the Historic Preservation Agency. | 9 | | (b) "Department" means the Department of Commerce and | 10 | | Economic Opportunity. | 11 | | (c) "Qualified expenditures" means all the costs and | 12 | | expenses defined as qualified rehabilitation expenditures | 13 | | under Section 47 of the federal Internal Revenue Code. | 14 | | Applicants may incur qualified expenditures, at their own risk, | 15 | | from the earlier of (i) the commencement of construction or | 16 | | (ii) one year prior to receipt of preliminary approval of an | 17 | | application pursuant to Section 40. | 18 | | (d) "Qualified structure" means any building located in | 19 | | Illinois that is defined as a certified historic structure | 20 | | under Section 47(c)(3) of the federal Internal Revenue Code. | 21 | | (e) "Qualified rehabilitation plan" means a proposed | 22 | | rehabilitation design that is approved by the Agency and | 23 | | certified by the National Park Service as being consistent with |
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| 1 | | the Secretary of the Interior's Standards for Rehabilitation, | 2 | | as adopted by the United States Secretary of the Interior. | 3 | | (f) "Qualified rehabilitation project" means a completed | 4 | | rehabilitation project that is approved by the Agency and | 5 | | certified by the National Park Service as being consistent with | 6 | | the Secretary of the Interior's Standards for Rehabilitation, | 7 | | as adopted by the United States Secretary of the Interior. | 8 | | (g) "Qualified taxpayer" means any owner of the qualified | 9 | | structure or any other person who may qualify for the federal | 10 | | rehabilitation credit allowed by Section 47 of the federal | 11 | | Internal Revenue Code. If the taxpayer is (i) a corporation | 12 | | having an election in effect under Subchapter S of the federal | 13 | | Internal Revenue Code, (ii) a partnership, or (iii) a limited | 14 | | liability company, the credit provided by this subsection may | 15 | | be claimed by the shareholders of the corporation, the partners | 16 | | of the partnership, or the members of the limited liability | 17 | | company in the same manner as those shareholders, partners, or | 18 | | members account for their proportionate shares of the income or | 19 | | losses of the corporation, partnership, or limited liability | 20 | | company, or as provided in the bylaws or other executed | 21 | | agreement of the corporation, partnership, or limited | 22 | | liability company. Credits granted to a partnership, a limited | 23 | | liability company taxed as a partnership, or other multiple | 24 | | owners of property shall be passed through to the partners, | 25 | | members, or owners respectively on a pro rata basis or pursuant | 26 | | to an executed agreement among the partners, members, or owners |
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| 1 | | documenting any alternate distribution method. Nothing in this | 2 | | Act is intended to prohibit a non-profit entity with a Section | 3 | | 501(c)(3) designation under the federal Internal Revenue Code | 4 | | from serving as a shareholder, partner, member or other owner | 5 | | of a qualified taxpayer. | 6 | | Section 10. Functional obsolescence test. When the credits | 7 | | requested with respect to a qualified rehabilitation plan are | 8 | | $1,000,000 or more, the Department must confirm that the | 9 | | property satisfies at least 2 of the following factors: | 10 | | (1) Dilapidation. Dilapidation means that the primary | 11 | | structural components of buildings or improvements on the | 12 | | property are in an advanced state of disrepair or neglect | 13 | | of necessary repairs such that a documented building | 14 | | condition analysis determines that major repair is | 15 | | required or the defects are so serious and so extensive | 16 | | that the buildings must be removed. | 17 | | (2) Obsolescence. Obsolescence means that the property | 18 | | has fallen or is in the process of falling into disuse, | 19 | | that structures on the property have become ill suited for | 20 | | the original use, or both. | 21 | | (3) Deterioration. Deterioration means: that buildings | 22 | | located on the property contain defects including, but not | 23 | | limited to, major defects in the secondary building | 24 | | components such as doors, windows, porches, gutters and | 25 | | downspouts, and fascia; that surface improvements, |
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| 1 | | roadways, alleys, curbs, gutters, sidewalks, off-street | 2 | | parking, and surface storage areas evidence deterioration, | 3 | | including, but not limited to, surface cracking, | 4 | | crumbling, potholes, depressions, loose paving material, | 5 | | or weeds protruding through paved surfaces; or that any | 6 | | combination of these problems exists. | 7 | | (4) Presence of structures below minimum code | 8 | | standards. The property contains structures that do not | 9 | | meet the standards of zoning, subdivision, building, fire, | 10 | | and other governmental codes applicable to property, but | 11 | | not including housing and property maintenance codes. | 12 | | (5) Illegal use of individual structures. The use of | 13 | | structures in violation of applicable federal, State, or | 14 | | local laws, exclusive of those applicable to the presence | 15 | | of structures below minimum code standards. | 16 | | (6) Excessive vacancies. Buildings on the property are | 17 | | unoccupied or underused and represent an adverse influence | 18 | | on the area because of the frequency, extent, or duration | 19 | | of the vacancies. | 20 | | (7) Inadequate ventilation, natural light, or sanitary | 21 | | facilities. Inadequate ventilation means the absence of | 22 | | ventilation for air circulation in spaces or rooms that | 23 | | lack windows or require the removal of dust, odor, gas, | 24 | | smoke, or other noxious airborne materials. Inadequate | 25 | | natural light means the absence of skylights or windows for | 26 | | interior spaces or rooms or improper window sizes or |
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| 1 | | amounts as determined by room area to window area ratios. | 2 | | Inadequate sanitary facilities refers to the absence or | 3 | | inadequacy of garbage storage and enclosure, bathroom | 4 | | facilities, hot water and kitchens, or structural | 5 | | inadequacies preventing ingress and egress to and from all | 6 | | rooms and units within a building. | 7 | | (8) Inadequate utilities. Inadequate utilities are | 8 | | underground and overhead utilities such as storm sewers and | 9 | | storm drainage, sanitary sewers, water lines, and gas, | 10 | | telephone, and electrical services that are: (1) of | 11 | | insufficient capacity to serve the uses in the | 12 | | redevelopment project area; (2) deteriorated, antiquated, | 13 | | obsolete, or in disrepair; or (3) lacking within the | 14 | | redevelopment project area. | 15 | | Section 15. Allowable credit. There shall be allowed a tax | 16 | | credit against (i) the tax imposed by subsections (a) and (b) | 17 | | of Section 201 of the Illinois Income Tax Act and (ii) the | 18 | | taxes imposed under Sections 409, 413, 444, and 444.1 of the | 19 | | Illinois Insurance Code in an aggregate amount equal to 20% of | 20 | | qualified expenditures incurred by a qualified taxpayer | 21 | | pursuant to a qualified rehabilitation plan on a qualified | 22 | | structure, provided that the total amount of such qualified | 23 | | expenditures exceeds the greater of $5,000 or the adjusted | 24 | | basis of the property. A tax credit may be earned under this | 25 | | Act during the period beginning January 1, 2015 and ending |
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| 1 | | December 31, 2019. While a tax credit may be earned before July | 2 | | 1, 2016, no tax credit shall be actually issued by the | 3 | | Department before July 1, 2016. While a tax credit must be | 4 | | earned on or before December 31, 2019, a credit shall be | 5 | | allowed after December 31, 2019 in accordance with the terms of | 6 | | this Act. If the amount of any tax credit awarded under this | 7 | | Act exceeds the taxpayer's tax liability for the year in which | 8 | | the qualified rehabilitation project was placed in service, the | 9 | | excess amount may be carried forward for deduction from the | 10 | | taxpayer's tax liability in the next succeeding year or years | 11 | | or may be carried back for deduction from the taxpayer's tax | 12 | | liability for the immediately preceding year until the total | 13 | | amount of the credit has been used, except that a credit may | 14 | | not be carried forward for deduction after the fifth taxable | 15 | | year after the taxable year in which the qualified | 16 | | rehabilitation project was placed in service or carried back | 17 | | for deduction more than one year before the taxable year in | 18 | | which the qualified rehabilitation project was placed in | 19 | | service. | 20 | | Section 20. Economic needs test. When the credits requested | 21 | | with respect to a qualified rehabilitation plan will be | 22 | | $1,000,000 or more, the Department shall evaluate whether, | 23 | | without public intervention, the economic development project | 24 | | would not otherwise benefit from private sector investment. The | 25 | | Department shall have the power to adopt rules for such |
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| 1 | | evaluation purpose. | 2 | | Section 25. Transfer of credits. Any qualified taxpayer, | 3 | | referred to in this Section as the assignor, may allocate, | 4 | | sell, assign, convey, or otherwise transfer tax credits allowed | 5 | | and earned under this Act, to any individual or entity, | 6 | | including without limitation, a non-profit entity with a | 7 | | Section 501(c)(3) designation under the federal Internal | 8 | | Revenue Code. The individual or entity acquiring the credits, | 9 | | referred to in this Section as the assignee, may use the amount | 10 | | of the acquired credits to offset up to 100% of its tax | 11 | | liability, if any, for either the taxable year in which the | 12 | | qualified rehabilitation project was first placed into service | 13 | | or the taxable year in which the credits were acquired, or any | 14 | | years in between. Unused credit amounts may be carried forward | 15 | | for up to 5 years and carried back for up to one year, except | 16 | | that all credits must be claimed within 5 years after the tax | 17 | | year in which the qualified rehabilitation project was first | 18 | | placed into service. The assignor shall enter into a written | 19 | | agreement with the assignee establishing the terms and | 20 | | conditions of the agreement and shall perfect the transfer by | 21 | | notifying the Department in writing within 30 calendar days | 22 | | after the effective date of the transfer and shall provide any | 23 | | information as may be required by the Department to administer | 24 | | and carry out the provisions of this Section. The Department | 25 | | shall develop a system to track the transfer of credits and to |
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| 1 | | certify the ownership of credits, and the Department may adopt | 2 | | rules to permit verification of the ownership of credits but | 3 | | shall not adopt any rules which unduly restrict or hinder the | 4 | | transfer of credits. The assignee also may sell, assign, | 5 | | convey, or otherwise transfer the credits, and the credits may | 6 | | be transferred more than once. The credits may be bifurcated to | 7 | | be transferred to more than one assignee. If credits that have | 8 | | been transferred are subsequently reduced, adjusted, or | 9 | | cancelled, in whole or in part, by the Department, the | 10 | | Department of Revenue, or any other applicable government | 11 | | agency, only the original qualified taxpayer that was awarded | 12 | | the credits, and not any subsequent assignee of the credits, | 13 | | shall be held liable to repay any amount of such reduction, | 14 | | adjustment, or cancellation of the credits. The credits are not | 15 | | subject to recapture. | 16 | | Section 30. Maximum limits. The credits awarded for each | 17 | | qualified rehabilitation project shall be limited to a maximum | 18 | | of $3,000,000. A qualified rehabilitation project shall not | 19 | | receive credits pursuant to this Act if the qualified | 20 | | rehabilitation project has received credits pursuant to the | 21 | | River Edge Redevelopment Zone Act. | 22 | | Section 35. Maximum annual cap. The total amount of credits | 23 | | approved by the Department under this Act may not exceed: (1) | 24 | | $10,000,000 in Fiscal Year 2014; (2) $20,000,000 in Fiscal Year |
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| 1 | | 2015; (3) $30,000,000 in Fiscal Year 2016; (4) $40,000,000 for | 2 | | Fiscal Year 2017; and (5) $50,000,000 for Fiscal Year 2018. If | 3 | | the total amount of credits awarded in any of those fiscal | 4 | | years is less than the maximum amount available for that fiscal | 5 | | year, then the maximum amount available for the next fiscal | 6 | | year shall be increased by the difference between the maximum | 7 | | amount and the total amount awarded. | 8 | | Section 40. Application Process. | 9 | | (a) To obtain the credits allowed under this Act, the | 10 | | applicant shall submit an application for tax credits to the | 11 | | Department. The Department shall prioritize each application | 12 | | for review and approval in the order of the date on which the | 13 | | application was postmarked, with the oldest postmarked date | 14 | | receiving priority. Applications postmarked on the same day | 15 | | shall go through a lottery process to determine the order in | 16 | | which applications shall be received for approval. The | 17 | | application shall be in such form as the Department and the | 18 | | Agency shall reasonably require, and the application shall | 19 | | include sufficient information to permit the Agency to approve, | 20 | | approve with conditions, or reject the structure, | 21 | | rehabilitation plan, or rehabilitation project. The Department | 22 | | may charge an application fee of up to $1,000 per application | 23 | | per project. All application fees will be deposited into the | 24 | | Department's Administrative Fund, with the fee to be equally | 25 | | divided between the Department and the Agency. |
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| 1 | | (b) To ensure that an applicant has sufficient ownership of | 2 | | the qualified structure, each application shall include all of | 3 | | the following: | 4 | | (1) Proof of ownership or site control. Proof of | 5 | | ownership shall include evidence that the applicant is the | 6 | | fee simple owner of the qualified structure, such as a | 7 | | warranty deed or a closing statement. Proof of site control | 8 | | may be evidenced by a leasehold interest or an option to | 9 | | acquire such an interest. If the applicant is in the | 10 | | process of acquiring fee simple ownership, proof of site | 11 | | control shall include an executed sales contract or an | 12 | | executed option to purchase the qualified structure. | 13 | | (2) The estimated qualified expenditures, the | 14 | | anticipated total costs of the project, the adjusted basis | 15 | | of the property, as shown by proof of actual acquisition | 16 | | costs, the anticipated total labor costs, the estimated | 17 | | project start date, and the estimated project completion | 18 | | date. | 19 | | (3) Proof that the property is a qualified structure as | 20 | | defined in this Act or evidence that the necessary | 21 | | documentation has been prepared for the property to become | 22 | | a qualified structure, but a final determination of such | 23 | | qualification shall not be a prerequisite for approval of | 24 | | the preliminary application or the incurrence of qualified | 25 | | expenditures. | 26 | | (4) Any other information which the Department and the |
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| 1 | | Agency may reasonably require. | 2 | | (c) If the Agency approves the applicant's rehabilitation | 3 | | plan for a qualified structure as meeting the Secretary of | 4 | | Interior's Standards for Rehabilitation and if the application | 5 | | is otherwise complete, the plan shall be forwarded to the | 6 | | National Park Service for review. If the National Park Service | 7 | | certifies the rehabilitation plan, the plan shall be considered | 8 | | qualified for this Act. The Department shall notify the | 9 | | applicant in writing of the preliminary approval for an amount | 10 | | of credits equal to the amount provided under this Section as | 11 | | may be limited elsewhere in this Act. Such preliminary approval | 12 | | requires full compliance thereafter with all other | 13 | | requirements of law as a condition to any claim for such | 14 | | credits. If the Agency or the National Park Service deems the | 15 | | applicant's rehabilitation plan to not be qualified, or if the | 16 | | application is not complete, the applicant shall be notified in | 17 | | writing of the rejection of the application. Any rejected | 18 | | application shall be removed from the review process. Rejected | 19 | | applications shall lose priority in the review process. A | 20 | | rejected application may be resubmitted, but shall be deemed to | 21 | | be a new application for purposes of the priority procedures | 22 | | described in this Section. | 23 | | (d) Following approval of an application, the identity of | 24 | | the applicant contained in such application shall not be | 25 | | modified, except that: | 26 | | (1) the applicant may add partners, members, or |
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| 1 | | shareholders as part of the ownership structure, so long as | 2 | | the primary owner remains the same; however, prior to the | 3 | | commencement of renovation and the expenditure of at least | 4 | | 10% of the proposed rehabilitation budget, removal of the | 5 | | principal for failure to perform duties and the appointment | 6 | | of a new principal thereafter shall not constitute a change | 7 | | of the principal; and | 8 | | (2) the identity of the applicant may be changed if the | 9 | | ownership of the project is changed due to a foreclosure, | 10 | | deed in lieu of a foreclosure, or voluntary conveyance, or | 11 | | a transfer in bankruptcy. | 12 | | (e) In the event that the Department grants approval for | 13 | | credits in any fiscal year equal to the maximum amount | 14 | | available under this Act, all applicants with applications then | 15 | | awaiting approval or thereafter submitted for approval shall be | 16 | | notified by the Department that no additional credits shall be | 17 | | approved during such fiscal year and shall be notified of the | 18 | | priority given to such applicant's application then awaiting | 19 | | approval. Those applications shall be kept on file by the | 20 | | Department and shall be considered for approval for credits in | 21 | | the order established in this Act in the event that additional | 22 | | credits become available due to the rescission of preliminary | 23 | | approvals or when a new fiscal year's allocation of credits | 24 | | becomes available for approval. | 25 | | (f) All applicants with applications receiving preliminary | 26 | | approval on or after the effective date of this Act shall |
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| 1 | | commence rehabilitation within 2 years of the date of issue of | 2 | | the letter from the Department granting preliminary approval | 3 | | for credits. Commencement of rehabilitation means that, as of | 4 | | the date in which actual physical work has begun, the applicant | 5 | | has incurred no less than 10% of the estimated costs of | 6 | | rehabilitation provided in the application. The applicant may | 7 | | commence and incur qualified expenditures, at its own risk, | 8 | | before the property becomes a qualified structure. If the | 9 | | rehabilitation receives final approval under this Section, | 10 | | including the necessary verification of the total costs and | 11 | | expenses of rehabilitation, the applicant shall receive tax | 12 | | credits for all qualified expenditures incurred within the time | 13 | | periods allowed in this Act. If the Department determines that | 14 | | an applicant has failed to comply with the requirements | 15 | | provided under this Section, the preliminary approval for the | 16 | | amount of credits for such applicant shall be rescinded and | 17 | | such amount of credits shall then be included in the total | 18 | | amount of credits from which preliminary approvals for other | 19 | | projects may be granted. Any applicant whose preliminary | 20 | | approval shall be rescinded shall be notified of such from the | 21 | | Department and, upon receipt of such notice, may submit a new | 22 | | application for the project but such application shall be | 23 | | deemed to be a new application for purposes of the priority | 24 | | procedures described in this Section. | 25 | | (g) If the Agency approves the completed rehabilitation | 26 | | project as meeting the Secretary of Interior's Standards for |
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| 1 | | Rehabilitation, the completed rehabilitation project shall be | 2 | | forwarded to the National Park Service for review. If the | 3 | | National Park Service certifies the completed rehabilitation | 4 | | project, the project shall be considered qualified for this | 5 | | Act. For qualified rehabilitation projects, the applicant | 6 | | shall submit a cost certification, and when the credits | 7 | | requested with respect to a qualified rehabilitation project | 8 | | are $250,000 or more, the Department shall require an outside | 9 | | audit of the cost certification. The Department shall determine | 10 | | the amount of qualified expenditures and the amount of credits | 11 | | to be issued to the applicant. The issuance of certificates of | 12 | | credits to applicants shall be performed by the Department. The | 13 | | Department shall coordinate with the Illinois Department of | 14 | | Revenue to determine if the applicant has any outstanding | 15 | | Illinois tax obligations that can be satisfied by the credits | 16 | | to be issued. The Department shall inform the applicant of | 17 | | final approval and of final credit amount by letter. An | 18 | | issuance fee of up to 2% of the amount of the credits issued by | 19 | | the tax credit certificate may be collected from the applicant | 20 | | and remitted to the Department, to be deposited into the | 21 | | Historic Property Administrative Fund, with the fee to be | 22 | | divided equally between the Department and the Agency, for the | 23 | | purpose of administering the Act. When the Department has | 24 | | received the issuance fee from the applicant and deposited it | 25 | | into the Historic Property Administrative Fund, the Department | 26 | | shall issue the tax credit certificates to the applicant. The |
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| 1 | | taxpayer must attach the tax credit certificate to the tax | 2 | | return on which the credits are to be claimed. | 3 | | (h) In the event the amount of qualified expenditures | 4 | | actually incurred by an applicant are more than those estimated | 5 | | in its application, the applicant can submit a new application | 6 | | for such excess amount of qualified expenditures on a form | 7 | | prescribed by the Department, but that application shall be | 8 | | deemed to be a new application for purposes of the priority | 9 | | procedures described in this Act with respect to such excess | 10 | | amount of qualified expenditures. Such applications shall be | 11 | | automatically approved, subject only to availability of tax | 12 | | credits and all provisions regarding priority provided in this | 13 | | Act. | 14 | | Section 45. Biennial report; powers of the Department and | 15 | | Agency. The Department shall determine, on a biennial basis | 16 | | beginning at the end of the second fiscal year after the date | 17 | | this Act takes effect, the overall economic impact to the State | 18 | | from the qualified rehabilitation projects. The overall | 19 | | economic impact shall include the number of jobs created. The | 20 | | Department and the Agency are granted and have all the powers | 21 | | necessary or convenient to carry out the provisions of this | 22 | | Act, including, but not limited to, the power to promulgate | 23 | | rules for the administration of this Act and the power to | 24 | | establish application forms and other agreements. |
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| 1 | | Section 50. Appeals process. Decisions of the National Park | 2 | | Service on whether a structure, rehabilitation plan or | 3 | | rehabilitation project meets the Secretary of the Interior's | 4 | | Standards for Rehabilitation shall be considered final and | 5 | | shall determine whether a structure, rehabilitation plan or | 6 | | rehabilitation project is considered qualified for the | 7 | | purposes of this Act. The applicant may appeal the decision of | 8 | | the National Park Service in the manner described in 36 C.F.R. | 9 | | 67 - Historic Preservation Certifications Pursuant to Sec. | 10 | | 48(g) and Sec. 170(h) of the Internal Revenue Code of 1986, as | 11 | | amended. The applicant may appeal any official decision other | 12 | | than the qualification of the structure, rehabilitation plan, | 13 | | or rehabilitation project to the Department with regard to an | 14 | | application submitted under this Act to an independent, | 15 | | third-party appeals officer to be identified by the Department | 16 | | and the Agency. | 17 | | Appeals must be submitted to the designated appeals officer | 18 | | in writing within 30 days of receipt by the applicant of the | 19 | | decision which is the subject of the appeal, and shall include | 20 | | all information the applicant wishes the appeals officer to | 21 | | consider in deciding the appeal. | 22 | | Upon receipt of an appeal, the appeals officer shall notify | 23 | | the Department and the Agency that an appeal is pending, | 24 | | identify the decision being appealed and forward a copy of the | 25 | | information submitted by the applicant. The Department or the | 26 | | Agency, or both, may submit a written response to the appeal. |
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| 1 | | The applicant shall be entitled to one meeting with the | 2 | | appeals officer to discuss the appeal, but the appeals officer | 3 | | may schedule additional meetings at their discretion. The | 4 | | Department and the Agency shall be permitted to appear at all | 5 | | meetings. | 6 | | The appeals officer shall consider the record of the | 7 | | decision in question, any further written submissions by the | 8 | | applicant, the Department, or the Agency, and other available | 9 | | information and shall deliver a written decision to all parties | 10 | | as promptly as circumstances permit. | 11 | | Appeals under this Section constitute an administrative | 12 | | review of the decision appealed from and are not conducted as | 13 | | an adjudicative proceeding. | 14 | | Section 80. The Illinois Income Tax Act is amended by | 15 | | adding Section 224 as follows: | 16 | | (35 ILCS 5/224 new) | 17 | | Sec. 224. Rehabilitation and revitalization credit. For | 18 | | tax years commencing on or after January 1, 2015, a taxpayer | 19 | | who qualifies for a credit under the Illinois Rehabilitation | 20 | | and Revitalization Tax Credit Act is entitled to a credit | 21 | | against the taxes imposed under subsections (a) and (b) of | 22 | | Section 201 of this Act. If the taxpayer is a partnership or | 23 | | Subchapter S corporation, the credit shall be allowed to the | 24 | | partners or shareholders in accordance with the determination |
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| 1 | | of income and distributive share of income under Sections 702 | 2 | | and 704 and Subchapter S of the Internal Revenue Code or the | 3 | | credit shall be allowed to the partners or shareholders | 4 | | pursuant to an executed agreement among the partners or | 5 | | shareholders documenting any alternate distribution method. | 6 | | This Section is exempt from the provisions of Section 250 of | 7 | | this Act. | 8 | | Section 85. The Illinois Insurance Code is amended by | 9 | | adding Section 409.1 as follows: | 10 | | (215 ILCS 5/409.1 new) | 11 | | Sec. 409.1. Rehabilitation and revitalization credit. For | 12 | | taxes payable after January 1, 2014, credits may be granted | 13 | | against the taxes imposed under Section 409, 413, 444, and | 14 | | 444.1 of this Act as provided in the Illinois Rehabilitation | 15 | | and Revitalization Tax Credit Act.
| 16 | | Section 99. Effective date. This Act takes effect January | 17 | | 1, 2015. |
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