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 | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Bicentennial Mississippi River Region Redevelopment Historic | 6 | | Tax Credit Act. | 7 | | Section 5. Definitions. As used in this Act, unless the | 8 | | context clearly indicates otherwise: | 9 | | "Department" means the Department of Commerce and Economic | 10 | | Opportunity. | 11 | | "Division" means the Historic Preservation Division within | 12 | | the Department of Natural Resources. | 13 | | "Prevailing wage" means the hourly cash wages plus fringe | 14 | | benefits for training and apprenticeship programs approved by | 15 | | the U.S. Department of Labor, Bureau of Apprenticeship and | 16 | | Training, health and welfare, insurance, vacations and |
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| 1 | | pensions paid generally, in the locality in which the work is | 2 | | being performed, to employees engaged in work of a similar | 3 | | character on public works. | 4 | | "Qualified county" means Adams, Alexander, Bond, Brown, | 5 | | Calhoun, Carroll, Clinton, Greene, Hancock, Henderson, Henry, | 6 | | Jackson, Jersey, Jo Daviess, Johnson, Knox, Macoupin, Madison, | 7 | | McDonough, Mercer, Monroe, Perry, Pike, Pulaski, Randolph, | 8 | | Rock Island, Schuyler, St. Clair, Stephenson, Union, Warren, | 9 | | Washington, Whiteside, and Williamson Counties. | 10 | | "Qualified expenditures" means all the costs and
expenses | 11 | | defined as qualified rehabilitation expenditures under Section | 12 | | 47 of the federal Internal Revenue Code which were incurred in | 13 | | connection with a qualified historic structure. | 14 | | "Qualified historic structure" means any structure that is | 15 | | located in a qualified county and that is defined as a | 16 | | certified historic structure under Section 47(c)(3) of the | 17 | | federal Internal Revenue Code. | 18 | | "Qualified rehabilitation plan" means a project that is
| 19 | | approved by the Division as being consistent with the standards | 20 | | in effect on the effective date of this Act for rehabilitation | 21 | | as adopted by the federal Secretary of the Interior. | 22 | | "Qualified taxpayer" means the owner of the qualified
| 23 | | historic structure or any other person who may qualify for the
| 24 | | federal rehabilitation credit allowed by Section 47 of the
| 25 | | federal Internal Revenue Code. If the taxpayer is (i) a
| 26 | | corporation having an election in effect under Subchapter S of
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| 1 | | the federal Internal Revenue Code, (ii) a partnership, or (iii)
| 2 | | a limited liability company, the credit provided under this Act | 3 | | may be claimed by the shareholders of the
corporation, the | 4 | | partners of the partnership, or the members of
the limited | 5 | | liability company in the same manner as those
shareholders, | 6 | | partners, or members account for their
proportionate shares of | 7 | | the income or losses of the
corporation, partnership, or | 8 | | limited liability company, or as
provided in the by-laws or | 9 | | other executed agreement of the
corporation, partnership, or | 10 | | limited liability company.
Credits granted to a partnership, a | 11 | | limited liability company
taxed as a partnership, or other | 12 | | multiple owners of property
shall be passed through to the | 13 | | partners, members, or owners
respectively on a pro rata basis | 14 | | or pursuant to an executed
agreement among the partners, | 15 | | members, or owners documenting
any alternate distribution | 16 | | method. | 17 | | Section 10. Allowable credit. To the extent authorized by | 18 | | this Act, for qualified historic structures placed in service | 19 | | during a taxable year beginning on or after January 1, 2019 and | 20 | | ending on or before December 31, 2029, there shall be allowed a
| 21 | | tax credit against the tax imposed by subsections (a) and (b)
| 22 | | of Section 201 of the Illinois Income Tax Act in an amount
| 23 | | equal to 25% of qualified expenditures incurred by a qualified
| 24 | | taxpayer during the taxable year in the restoration and | 25 | | preservation of a qualified
historic structure pursuant to a |
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| 1 | | qualified rehabilitation plan, provided that the total amount | 2 | | of such expenditures (i) must equal $5,000 or more, and (ii) | 3 | | must exceed 50% of the purchase price of the property. The | 4 | | qualified taxpayer must pay a prevailing wage to employees who | 5 | | are engaged in construction, as defined in the Prevailing Wage | 6 | | Act, pursuant to a qualified rehabilitation plan. If the amount | 7 | | of any tax credit awarded under this Act exceeds the qualified | 8 | | taxpayer's income tax liability for the year in which the | 9 | | qualified rehabilitation plan was placed in service, the excess | 10 | | amount may be carried forward for deduction from the taxpayer's | 11 | | income tax liability in the next succeeding year or years until | 12 | | the total amount of the credit has been used, except that a | 13 | | credit may not be carried forward for deduction after the tenth | 14 | | taxable year after the taxable year in which the qualified | 15 | | rehabilitation plan was placed in service. To obtain a tax | 16 | | credit pursuant to this Act, an application must be made to the | 17 | | Department no later than 6 months after the effective date of | 18 | | this Act. The Department, in consultation with the Division, | 19 | | shall determine the amount of eligible rehabilitation costs and | 20 | | expenses. The Division shall determine whether the | 21 | | rehabilitation is consistent with the standards of the | 22 | | Secretary of the United States Department of the Interior for | 23 | | rehabilitation. Upon completion and review of the project, the | 24 | | Department shall issue a certificate in the amount of the | 25 | | eligible credits. At the time the certificate is issued, an | 26 | | issuance fee up to the maximum amount of 2% of the amount of |
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| 1 | | the credits issued by the certificate may be collected from the | 2 | | applicant to administer the Act. If collected, this issuance | 3 | | fee shall be evenly divided between the Department and the | 4 | | Division. The taxpayer must attach the certificate to the tax | 5 | | return on which the credits are to be claimed. | 6 | | Section 15. Transfer of credits. Any qualified taxpayer,
| 7 | | referred to in this Section as the assignor, may sell, assign,
| 8 | | convey, or otherwise transfer tax credits allowed and earned
| 9 | | under this Act. The taxpayer acquiring the credits, referred to
| 10 | | in this Section as the assignee, may use the amount of the
| 11 | | acquired credits to offset up to 100% of its income tax
| 12 | | liability for either the taxable year in which the qualified
| 13 | | rehabilitation plan was first placed into service or the
| 14 | | taxable year in which such acquisition was made. Unused credit
| 15 | | amounts claimed by the assignee may be carried forward for up
| 16 | | to 10 years or carried back for up to 3 years, except that all
| 17 | | credits must be claimed within 10 years after the tax year in
| 18 | | which the qualified rehabilitation plan was first placed into
| 19 | | service and may not be carried back to a tax year prior to the
| 20 | | tax year in which the credit was issued. The assignor shall
| 21 | | enter into a written agreement with the assignee establishing
| 22 | | the terms and conditions of the agreement and shall perfect the
| 23 | | transfer by notifying the Department in writing within 90 | 24 | | calendar days after the effective date of the transfer and | 25 | | shall provide any information as may be required by the |
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| 1 | | Department to administer and carry out the provisions of this | 2 | | Section. If credits that have been transferred are subsequently | 3 | | reduced, adjusted, or recaptured, in whole or in part, by the | 4 | | Department, the Department of Revenue, or any other applicable | 5 | | government agency, only the original qualified taxpayer that | 6 | | was awarded the credits, and not any subsequent assignee of the | 7 | | credits, shall be held liable to repay any amount of such | 8 | | reduction, adjustment, or recapture of the credits. | 9 | | Section 25. Pilot program; report. The Department may award | 10 | | no more than an aggregate of (i) $30,000,000 in total tax | 11 | | credits for qualified rehabilitation plans located in Madison, | 12 | | Rock Island, or Jo Daviess County and (ii) $15,000,000 in total | 13 | | tax credits for qualified rehabilitation plans located in any | 14 | | other qualified county. On or before December 31, 2019 and on | 15 | | or before December 31 of each year thereafter through 2029, the | 16 | | Department must submit a report to the General Assembly | 17 | | evaluating the effectiveness of this Act in stimulating | 18 | | economic revitalization in the pilot program area. | 19 | | Section 30. Powers. The Department and the Division shall | 20 | | adopt rules for the administration of this Act. | 21 | | Section 45. The Illinois Income Tax Act is amended by | 22 | | adding Section 227 as follows: |
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| 1 | | (35 ILCS 5/227 new) | 2 | | Sec. 227. Bicentennial Mississippi River Region | 3 | | Redevelopment Historic Tax Credit Act. For tax years beginning | 4 | | on or after January 1, 2019 and ending on or before December | 5 | | 31, 2029, a taxpayer who qualifies for a credit under the | 6 | | Bicentennial Mississippi River Region Redevelopment Historic | 7 | | Tax Credit Act is entitled to a credit against the taxes | 8 | | imposed under subsections (a) and (b) of Section 201 of this | 9 | | Act as provided in that Act. If the taxpayer is a partnership | 10 | | or Subchapter S corporation, the credit shall be allowed to the | 11 | | partners or shareholders in accordance with the determination | 12 | | of income and distributive share of income under Sections 702 | 13 | | and 704 and Subchapter S of the Internal Revenue Code. | 14 | | If the amount of any tax credit awarded under this Section | 15 | | exceeds the qualified taxpayer's income tax liability for the | 16 | | year in which the qualified rehabilitation plan was placed in | 17 | | service, the excess amount may be carried forward or back as | 18 | | provided in the Bicentennial Mississippi River Region | 19 | | Redevelopment Historic Tax Credit Act. | 20 | | Section 95. The Prevailing Wage Act is amended by changing | 21 | | Section 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, | 24 | | mechanics and
other workers employed in any public works, as |
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| 1 | | hereinafter defined, by
any public body and to anyone under | 2 | | contracts for public works. This includes any maintenance, | 3 | | repair, assembly, or disassembly work performed on equipment | 4 | | whether owned, leased, or rented.
| 5 | | As used in this Act, unless the context indicates | 6 | | otherwise:
| 7 | | "Public works" means all fixed works constructed or | 8 | | demolished by
any public body,
or paid for wholly or in part | 9 | | out of public funds. "Public works" as
defined herein includes | 10 | | all projects financed in whole
or in part with bonds, grants, | 11 | | loans, or other funds made available by or through the State or | 12 | | any of its political subdivisions, including but not limited | 13 | | to: bonds issued under the Industrial Project Revenue Bond
Act | 14 | | (Article 11, Division 74 of the Illinois Municipal Code), the | 15 | | Industrial
Building Revenue Bond Act, the Illinois Finance | 16 | | Authority Act,
the Illinois Sports Facilities Authority Act, or | 17 | | the Build Illinois Bond Act; loans or other funds made
| 18 | | available pursuant to the Build Illinois Act; loans or other | 19 | | funds made available pursuant to the Riverfront Development | 20 | | Fund under Section 10-15 of the River Edge Redevelopment Zone | 21 | | Act; or funds from the Fund for
Illinois' Future under Section | 22 | | 6z-47 of the State Finance Act, funds for school
construction | 23 | | under Section 5 of the General Obligation Bond Act, funds
| 24 | | authorized under Section 3 of the School Construction Bond Act, | 25 | | funds for
school infrastructure under Section 6z-45 of the | 26 | | State Finance Act, and funds
for transportation purposes under |
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| 1 | | Section 4 of the General Obligation Bond
Act. "Public works" | 2 | | also includes (i) all projects financed in whole or in part
| 3 | | with funds from the Department of Commerce and Economic | 4 | | Opportunity under the Illinois Renewable Fuels Development | 5 | | Program
Act for which there is no project labor agreement; (ii) | 6 | | all work performed pursuant to a public private agreement under | 7 | | the Public Private Agreements for the Illiana Expressway Act or | 8 | | the Public-Private Agreements for the South Suburban Airport | 9 | | Act; and (iii) all projects undertaken under a public-private | 10 | | agreement under the Public-Private Partnerships for | 11 | | Transportation Act. "Public works" also includes all projects | 12 | | at leased facility property used for airport purposes under | 13 | | Section 35 of the Local Government Facility Lease Act. "Public | 14 | | works" also includes the construction of a new wind power | 15 | | facility by a business designated as a High Impact Business | 16 | | under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
| 17 | | "Public works" also includes projects for which a tax credit | 18 | | has been granted under the Bicentennial Mississippi River | 19 | | Region Redevelopment Historic Tax Credit Act. "Public works" | 20 | | does not include work done directly by any public utility | 21 | | company, whether or not done under public supervision or | 22 | | direction, or paid for wholly or in part out of public funds. | 23 | | "Public works" also includes any corrective action performed | 24 | | pursuant to Title XVI of the Environmental Protection Act for | 25 | | which payment from the Underground Storage Tank Fund is | 26 | | requested. "Public works" does not include projects undertaken |
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| 1 | | by the owner at an owner-occupied single-family residence or at | 2 | | an owner-occupied unit of a multi-family residence. "Public | 3 | | works" does not include work performed for soil and water | 4 | | conservation purposes on agricultural lands, whether or not | 5 | | done under public supervision or paid for wholly or in part out | 6 | | of public funds, done directly by an owner or person who has | 7 | | legal control of those lands.
| 8 | | "Construction" means all work on public works involving | 9 | | laborers,
workers or mechanics. This includes any maintenance, | 10 | | repair, assembly, or disassembly work performed on equipment | 11 | | whether owned, leased, or rented.
| 12 | | "Locality" means the county where the physical work upon | 13 | | public works
is performed, except (1) that if there is not | 14 | | available in the county a
sufficient number of competent | 15 | | skilled laborers, workers and mechanics
to construct the public | 16 | | works efficiently and properly, "locality"
includes any other | 17 | | county nearest the one in which the work or
construction is to | 18 | | be performed and from which such persons may be
obtained in | 19 | | sufficient numbers to perform the work and (2) that, with
| 20 | | respect to contracts for highway work with the Department of
| 21 | | Transportation of this State, "locality" may at the discretion | 22 | | of the
Secretary of the Department of Transportation be | 23 | | construed to include
two or more adjacent counties from which | 24 | | workers may be accessible for
work on such construction.
| 25 | | "Public body" means the State or any officer, board or | 26 | | commission of
the State or any political subdivision or |
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| 1 | | department thereof, or any
institution supported in whole or in | 2 | | part by public funds,
and includes every county, city, town,
| 3 | | village, township, school district, irrigation, utility, | 4 | | reclamation
improvement or other district and every other | 5 | | political subdivision,
district or municipality of the state | 6 | | whether such political
subdivision, municipality or district | 7 | | operates 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 | 10 | | wages" when used in
this Act mean the hourly cash wages plus | 11 | | annualized fringe benefits for training and
apprenticeship | 12 | | programs approved by the U.S. Department of Labor, Bureau of
| 13 | | Apprenticeship and Training, health and welfare, insurance, | 14 | | vacations and
pensions paid generally, in the
locality in which | 15 | | the work is being performed, to employees engaged in
work of a | 16 | | similar character on public works.
| 17 | | (Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13; | 18 | | 98-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff. | 19 | | 7-16-14.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.".
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