Illinois General Assembly - Full Text of HB5730
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Full Text of HB5730  100th General Assembly

HB5730ham001 100TH GENERAL ASSEMBLY

Rep. Michael Halpin

Filed: 4/10/2018

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5730

2    AMENDMENT NO. ______. Amend House Bill 5730 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Bicentennial Mississippi River Region Redevelopment Historic
6Tax Credit Act.
 
7    Section 5. Definitions. As used in this Act, unless the
8context clearly indicates otherwise:
9    "Department" means the Department of Commerce and Economic
10Opportunity.
11    "Division" means the Historic Preservation Division within
12the Department of Natural Resources.
13    "Prevailing wage" means the hourly cash wages plus fringe
14benefits for training and apprenticeship programs approved by
15the U.S. Department of Labor, Bureau of Apprenticeship and
16Training, health and welfare, insurance, vacations and

 

 

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1pensions paid generally, in the locality in which the work is
2being performed, to employees engaged in work of a similar
3character on public works.
4    "Qualified county" means Adams, Alexander, Bond, Brown,
5Calhoun, Carroll, Clinton, Greene, Hancock, Henderson, Henry,
6Jackson, Jersey, Jo Daviess, Johnson, Knox, Macoupin, Madison,
7McDonough, Mercer, Monroe, Perry, Pike, Pulaski, Randolph,
8Rock Island, Schuyler, St. Clair, Stephenson, Union, Warren,
9Washington, Whiteside, and Williamson Counties.
10    "Qualified expenditures" means all the costs and expenses
11defined as qualified rehabilitation expenditures under Section
1247 of the federal Internal Revenue Code which were incurred in
13connection with a qualified historic structure.
14    "Qualified historic structure" means any structure that is
15located in a qualified county and that is defined as a
16certified historic structure under Section 47(c)(3) of the
17federal Internal Revenue Code.
18    "Qualified rehabilitation plan" means a project that is
19approved by the Division as being consistent with the standards
20in effect on the effective date of this Act for rehabilitation
21as adopted by the federal Secretary of the Interior.
22    "Qualified taxpayer" means the owner of the qualified
23historic structure or any other person who may qualify for the
24federal rehabilitation credit allowed by Section 47 of the
25federal Internal Revenue Code. If the taxpayer is (i) a
26corporation having an election in effect under Subchapter S of

 

 

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1the federal Internal Revenue Code, (ii) a partnership, or (iii)
2a limited liability company, the credit provided under this Act
3may be claimed by the shareholders of the corporation, the
4partners of the partnership, or the members of the limited
5liability company in the same manner as those shareholders,
6partners, or members account for their proportionate shares of
7the income or losses of the corporation, partnership, or
8limited liability company, or as provided in the by-laws or
9other executed agreement of the corporation, partnership, or
10limited liability company. Credits granted to a partnership, a
11limited liability company taxed as a partnership, or other
12multiple owners of property shall be passed through to the
13partners, members, or owners respectively on a pro rata basis
14or pursuant to an executed agreement among the partners,
15members, or owners documenting any alternate distribution
16method.
 
17    Section 10. Allowable credit. To the extent authorized by
18this Act, for qualified historic structures placed in service
19during a taxable year beginning on or after January 1, 2019 and
20ending on or before December 31, 2029, there shall be allowed a
21tax credit against the tax imposed by subsections (a) and (b)
22of Section 201 of the Illinois Income Tax Act in an amount
23equal to 25% of qualified expenditures incurred by a qualified
24taxpayer during the taxable year in the restoration and
25preservation of a qualified historic structure pursuant to a

 

 

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1qualified rehabilitation plan, provided that the total amount
2of such expenditures (i) must equal $5,000 or more, and (ii)
3must exceed 50% of the purchase price of the property. The
4qualified taxpayer must pay a prevailing wage to employees who
5are engaged in construction, as defined in the Prevailing Wage
6Act, pursuant to a qualified rehabilitation plan. If the amount
7of any tax credit awarded under this Act exceeds the qualified
8taxpayer's income tax liability for the year in which the
9qualified rehabilitation plan was placed in service, the excess
10amount may be carried forward for deduction from the taxpayer's
11income tax liability in the next succeeding year or years until
12the total amount of the credit has been used, except that a
13credit may not be carried forward for deduction after the tenth
14taxable year after the taxable year in which the qualified
15rehabilitation plan was placed in service. To obtain a tax
16credit pursuant to this Act, an application must be made to the
17Department no later than 6 months after the effective date of
18this Act. The Department, in consultation with the Division,
19shall determine the amount of eligible rehabilitation costs and
20expenses. The Division shall determine whether the
21rehabilitation is consistent with the standards of the
22Secretary of the United States Department of the Interior for
23rehabilitation. Upon completion and review of the project, the
24Department shall issue a certificate in the amount of the
25eligible credits. At the time the certificate is issued, an
26issuance fee up to the maximum amount of 2% of the amount of

 

 

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1the credits issued by the certificate may be collected from the
2applicant to administer the Act. If collected, this issuance
3fee shall be evenly divided between the Department and the
4Division. The taxpayer must attach the certificate to the tax
5return on which the credits are to be claimed.
 
6    Section 15. Transfer of credits. Any qualified taxpayer,
7referred to in this Section as the assignor, may sell, assign,
8convey, or otherwise transfer tax credits allowed and earned
9under this Act. The taxpayer acquiring the credits, referred to
10in this Section as the assignee, may use the amount of the
11acquired credits to offset up to 100% of its income tax
12liability for either the taxable year in which the qualified
13rehabilitation plan was first placed into service or the
14taxable year in which such acquisition was made. Unused credit
15amounts claimed by the assignee may be carried forward for up
16to 10 years or carried back for up to 3 years, except that all
17credits must be claimed within 10 years after the tax year in
18which the qualified rehabilitation plan was first placed into
19service and may not be carried back to a tax year prior to the
20tax year in which the credit was issued. The assignor shall
21enter into a written agreement with the assignee establishing
22the terms and conditions of the agreement and shall perfect the
23transfer by notifying the Department in writing within 90
24calendar days after the effective date of the transfer and
25shall provide any information as may be required by the

 

 

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1Department to administer and carry out the provisions of this
2Section. If credits that have been transferred are subsequently
3reduced, adjusted, or recaptured, in whole or in part, by the
4Department, the Department of Revenue, or any other applicable
5government agency, only the original qualified taxpayer that
6was awarded the credits, and not any subsequent assignee of the
7credits, shall be held liable to repay any amount of such
8reduction, adjustment, or recapture of the credits.
 
9    Section 25. Pilot program; report. The Department may award
10no more than an aggregate of (i) $30,000,000 in total tax
11credits for qualified rehabilitation plans located in Madison,
12Rock Island, or Jo Daviess County and (ii) $15,000,000 in total
13tax credits for qualified rehabilitation plans located in any
14other qualified county. On or before December 31, 2019 and on
15or before December 31 of each year thereafter through 2029, the
16Department must submit a report to the General Assembly
17evaluating the effectiveness of this Act in stimulating
18economic revitalization in the pilot program area.
 
19    Section 30. Powers. The Department and the Division shall
20adopt rules for the administration of this Act.
 
21    Section 45. The Illinois Income Tax Act is amended by
22adding Section 227 as follows:
 

 

 

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1    (35 ILCS 5/227 new)
2    Sec. 227. Bicentennial Mississippi River Region
3Redevelopment Historic Tax Credit Act. For tax years beginning
4on or after January 1, 2019 and ending on or before December
531, 2029, a taxpayer who qualifies for a credit under the
6Bicentennial Mississippi River Region Redevelopment Historic
7Tax Credit Act is entitled to a credit against the taxes
8imposed under subsections (a) and (b) of Section 201 of this
9Act as provided in that Act. If the taxpayer is a partnership
10or Subchapter S corporation, the credit shall be allowed to the
11partners or shareholders in accordance with the determination
12of income and distributive share of income under Sections 702
13and 704 and Subchapter S of the Internal Revenue Code.
14    If the amount of any tax credit awarded under this Section
15exceeds the qualified taxpayer's income tax liability for the
16year in which the qualified rehabilitation plan was placed in
17service, the excess amount may be carried forward or back as
18provided in the Bicentennial Mississippi River Region
19Redevelopment Historic Tax Credit Act.
 
20    Section 95. The Prevailing Wage Act is amended by changing
21Section 2 as follows:
 
22    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
23    Sec. 2. This Act applies to the wages of laborers,
24mechanics and other workers employed in any public works, as

 

 

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1hereinafter defined, by any public body and to anyone under
2contracts for public works. This includes any maintenance,
3repair, assembly, or disassembly work performed on equipment
4whether owned, leased, or rented.
5    As used in this Act, unless the context indicates
6otherwise:
7    "Public works" means all fixed works constructed or
8demolished by any public body, or paid for wholly or in part
9out of public funds. "Public works" as defined herein includes
10all projects financed in whole or in part with bonds, grants,
11loans, or other funds made available by or through the State or
12any of its political subdivisions, including but not limited
13to: bonds issued under the Industrial Project Revenue Bond Act
14(Article 11, Division 74 of the Illinois Municipal Code), the
15Industrial Building Revenue Bond Act, the Illinois Finance
16Authority Act, the Illinois Sports Facilities Authority Act, or
17the Build Illinois Bond Act; loans or other funds made
18available pursuant to the Build Illinois Act; loans or other
19funds made available pursuant to the Riverfront Development
20Fund under Section 10-15 of the River Edge Redevelopment Zone
21Act; or funds from the Fund for Illinois' Future under Section
226z-47 of the State Finance Act, funds for school construction
23under Section 5 of the General Obligation Bond Act, funds
24authorized under Section 3 of the School Construction Bond Act,
25funds for school infrastructure under Section 6z-45 of the
26State Finance Act, and funds for transportation purposes under

 

 

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1Section 4 of the General Obligation Bond Act. "Public works"
2also includes (i) all projects financed in whole or in part
3with funds from the Department of Commerce and Economic
4Opportunity under the Illinois Renewable Fuels Development
5Program Act for which there is no project labor agreement; (ii)
6all work performed pursuant to a public private agreement under
7the Public Private Agreements for the Illiana Expressway Act or
8the Public-Private Agreements for the South Suburban Airport
9Act; and (iii) all projects undertaken under a public-private
10agreement under the Public-Private Partnerships for
11Transportation Act. "Public works" also includes all projects
12at leased facility property used for airport purposes under
13Section 35 of the Local Government Facility Lease Act. "Public
14works" also includes the construction of a new wind power
15facility by a business designated as a High Impact Business
16under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
17"Public works" also includes projects for which a tax credit
18has been granted under the Bicentennial Mississippi River
19Region Redevelopment Historic Tax Credit Act. "Public works"
20does not include work done directly by any public utility
21company, whether or not done under public supervision or
22direction, or paid for wholly or in part out of public funds.
23"Public works" also includes any corrective action performed
24pursuant to Title XVI of the Environmental Protection Act for
25which payment from the Underground Storage Tank Fund is
26requested. "Public works" does not include projects undertaken

 

 

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1by the owner at an owner-occupied single-family residence or at
2an owner-occupied unit of a multi-family residence. "Public
3works" does not include work performed for soil and water
4conservation purposes on agricultural lands, whether or not
5done under public supervision or paid for wholly or in part out
6of public funds, done directly by an owner or person who has
7legal control of those lands.
8    "Construction" means all work on public works involving
9laborers, workers or mechanics. This includes any maintenance,
10repair, assembly, or disassembly work performed on equipment
11whether owned, leased, or rented.
12    "Locality" means the county where the physical work upon
13public works is performed, except (1) that if there is not
14available in the county a sufficient number of competent
15skilled laborers, workers and mechanics to construct the public
16works efficiently and properly, "locality" includes any other
17county nearest the one in which the work or construction is to
18be performed and from which such persons may be obtained in
19sufficient numbers to perform the work and (2) that, with
20respect to contracts for highway work with the Department of
21Transportation of this State, "locality" may at the discretion
22of the Secretary of the Department of Transportation be
23construed to include two or more adjacent counties from which
24workers may be accessible for work on such construction.
25    "Public body" means the State or any officer, board or
26commission of the State or any political subdivision or

 

 

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1department thereof, or any institution supported in whole or in
2part by public funds, and includes every county, city, town,
3village, township, school district, irrigation, utility,
4reclamation improvement or other district and every other
5political subdivision, district or municipality of the state
6whether such political subdivision, municipality or district
7operates under a special charter or not.
8    The terms "general prevailing rate of hourly wages",
9"general prevailing rate of wages" or "prevailing rate of
10wages" when used in this Act mean the hourly cash wages plus
11annualized fringe benefits for training and apprenticeship
12programs approved by the U.S. Department of Labor, Bureau of
13Apprenticeship and Training, health and welfare, insurance,
14vacations and pensions paid generally, in the locality in which
15the work is being performed, to employees engaged in work of a
16similar character on public works.
17(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
1898-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
197-16-14.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".