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Full Text of SB3527  100th General Assembly

SB3527ham003 100TH GENERAL ASSEMBLY

Rep. Jehan Gordon-Booth

Filed: 5/29/2018

 

 


 

 


 
10000SB3527ham003LRB100 20468 HLH 41092 a

1
AMENDMENT TO SENATE BILL 3527

2    AMENDMENT NO. ______. Amend Senate Bill 3527, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Short title. This Act may be cited as the
6Historic Preservation Tax Credit Act.
 
7    Section 5. Definitions. As used in this Act, unless the
8context clearly indicates otherwise:
9    "Division" means the State Historic Preservation Office
10within the Department of Natural Resources.
11    "Phased rehabilitation" means a project that is completed
12in phases, as defined under Section 47 of the federal Internal
13Revenue Code and pursuant to National Park Service regulations
14at 36 C.F.R. 67.
15    "Placed in service" means the date when the property is
16placed in a condition or state of readiness and availability

 

 

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1for a specifically assigned function as defined under Section
247 of the federal Internal Revenue Code and federal Treasury
3Regulation Sections 1.46 and 1.48.
4    "Qualified expenditures" means all the costs and expenses
5defined as qualified rehabilitation expenditures under Section
647 of the federal Internal Revenue Code that were incurred in
7connection with a qualified historic structure.
8    "Qualified historic structure" means any structure that is
9located in Illinois and is defined as a certified historic
10structure under Section 47 (c)(3) of the federal Internal
11Revenue Code.
12    "Qualified rehabilitation plan" means a project that is
13approved by the Department of Natural Resources and the
14National Park Service as being consistent with the United
15States Secretary of the Interior's Standards for
16Rehabilitation.
17    "Qualified taxpayer" means the owner of the qualified
18historic structure or any other person who may qualify for the
19federal rehabilitation credit allowed by Section 47 of the
20federal Internal Revenue Code.
21    "Recapture event" means any of the following events
22occurring during the recapture period:
23        (1) failure to place in service the rehabilitated
24    portions of the qualified historic structure, or failure to
25    maintain the rehabilitated portions of the qualified
26    historic structure in service after they are placed in

 

 

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1    service; provided that a recapture event under this
2    paragraph (1) shall not include a removal from service for
3    a reasonable period of time to conduct maintenance and
4    repairs that are reasonably necessary to protect the health
5    and safety of the public or to protect the structural
6    integrity of the qualified historic structure or a
7    neighboring structure;
8        (2) demolition or other alteration of the qualified
9    historic structure in a manner that is inconsistent with
10    the qualified rehabilitation plan or the Secretary of the
11    Interior's Standards for Rehabilitation;
12        (3) disposition of the rehabilitated qualified
13    historic structure in whole or a proportional disposition
14    of a partnership interest therein, except as otherwise
15    permitted by this Section; or
16        (4) use of the qualified historic structure in a manner
17    that is inconsistent with the qualified rehabilitation
18    plan or that is otherwise inconsistent with the provisions
19    and intent of this Section.
20    A recapture event occurring in one taxable year shall be
21deemed continuing to subsequent taxable years unless and until
22corrected.
23    The following dispositions of a qualified historic
24structure shall not be deemed to be a recapture event for
25purposes of this Section:
26        (1) a transfer by reason of death;

 

 

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1        (2) a transfer between spouses incident to divorce;
2        (3) a sale by and leaseback to an entity that, when the
3    rehabilitated portions of the qualified historic structure
4    are placed in service, will be a lessee of the qualified
5    historic structure, but only for so long as the entity
6    continues to be a lessee; and
7        (4) a mere change in the form of conducting the trade
8    or business by the owner (or, if applicable, the lessee) of
9    the qualified historic structure, so long as the property
10    interest in such qualified historic structure is retained
11    in such trade or business and the owner or lessee retains a
12    substantial interest in such trade or business.
13    "Recapture period" means the 5-year period beginning on the
14date that the qualified historic structure or rehabilitated
15portions of the qualified historic structure are placed in
16service.
17    "Substantial rehabilitation" means that the qualified
18rehabilitation expenditures during the 24-month period
19selected by the taxpayer at the time and in the manner
20prescribed by rule and ending with or within the taxable year
21exceed the greater of (i) the adjusted basis of the building
22and its structural components or (ii) $5,000. The adjusted
23basis of the building and its structural components shall be
24determined as of the beginning of the first day of such
2524-month period or as of the beginning of the first day of the
26holding period of the building, whichever is later. For

 

 

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1purposes of determining the adjusted basis, the determination
2of the beginning of the holding period shall be made without
3regard to any reconstruction by the taxpayer in connection with
4the rehabilitation. In the case of any phased rehabilitation,
5with phases set forth in architectural plans and specifications
6completed before the rehabilitation begins, this definition
7shall be applied by substituting "60-month period" for
8"24-month period" wherever that term occurs in the definition.
 
9    Section 10. Allowable credit.
10    (a) To the extent authorized by this Act, for taxable years
11beginning on or after January 1, 2019 and ending on or before
12December 31, 2023, there shall be allowed a tax credit against
13the tax imposed by subsections (a) and (b) of Section 201 of
14the Illinois Income Tax Act in an aggregate amount equal to 25%
15of qualified expenditures incurred by a qualified taxpayer
16undertaking a qualified rehabilitation plan of a qualified
17historic structure, provided that the total amount of such
18expenditures must (i) equal $5,000 or more or (ii) exceed the
19adjusted basis of the qualified historic structure on the first
20day the qualified rehabilitation plan commenced. If the
21qualified rehabilitation plan spans multiple years, the
22aggregate credit for the entire project shall be allowed in the
23last taxable year.
24    (b) To obtain a tax credit pursuant to this Section, the
25taxpayer must apply with the Division. The Division shall

 

 

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1determine the amount of eligible rehabilitation expenditures
2within 45 days after receipt of a complete application. The
3taxpayer must provide to the Division a third-party cost
4certification conducted by a certified public accountant
5verifying (i) the qualified and non-qualified rehabilitation
6expenses and (ii) that the qualified expenditures exceed the
7adjusted basis of the qualified historic structure on the first
8day the qualified rehabilitation plan commenced. The
9accountant shall provide appropriate review and testing of
10invoices. The Division is authorized, but not required, to
11accept this third-party cost certification to determine the
12amount of qualified expenditures. The Division and the National
13Park Service shall determine whether the rehabilitation is
14consistent with the Standards of the Secretary of the United
15States Department of the Interior.
16    (c) If the amount of any tax credit awarded under this Act
17exceeds the qualified taxpayer's income tax liability for the
18year in which the qualified rehabilitation plan was placed in
19service, the excess amount may be carried forward for deduction
20from the taxpayer's income tax liability in the next succeeding
21year or years until the total amount of the credit has been
22used, except that a credit may not be carried forward for
23deduction after the tenth taxable year after the taxable year
24in which the qualified rehabilitation plan was placed in
25service. Upon completion and review of the project, the
26Division shall issue a single certificate in the amount of the

 

 

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1eligible credits equal to 25% of the qualified expenditures
2incurred during the eligible taxable years. At the time the
3certificate is issued, an issuance fee up to the maximum amount
4of 2% of the amount of the credits issued by the certificate
5may be collected from the applicant to administer the Act. If
6collected, this issuance fee shall be directed to the Division
7Historic Property Administrative Fund or other such fund as
8appropriate for use of the Division in the administration of
9the Historic Preservation Tax Credit Program. The taxpayer must
10attach the certificate or legal documentation of her or his
11proportional share of the certificate to the tax return on
12which the credits are to be claimed. The tax credit under this
13Section may not reduce the taxpayer's liability to less than
14zero. If the amount of the credit exceeds the tax liability for
15the year, the excess credit may be carried forward and applied
16to the tax liability of the 10 taxable years following the
17excess credit year.
18    (d) If the taxpayer is (i) a corporation having an election
19in effect under Subchapter S of the federal Internal Revenue
20Code, (ii) a partnership, or (iii) a limited liability company,
21the credit provided under this Act may be claimed by the
22shareholders of the corporation, the partners of the
23partnership, or the members of the limited liability company in
24the same manner as those shareholders, partners, or members
25account for their proportionate shares of the income or losses
26of the corporation, partnership, or limited liability company,

 

 

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1or as provided in the by-laws or other executed agreement of
2the corporation, partnership, or limited liability company.
3Credits granted to a partnership, a limited liability company
4taxed as a partnership, or other multiple owners of property
5shall be passed through to the partners, members, or owners
6respectively on a pro rata basis or pursuant to an executed
7agreement among the partners, members, or owners documenting
8any alternate distribution method.
9    (e) If a recapture event occurs during the recapture period
10with respect to a qualified historic structure, then for any
11taxable year in which the credits are allowed as specified in
12this Act, the tax under the applicable section of this Act
13shall be increased by applying the recapture percentage set
14forth below to the tax decrease resulting from the application
15of credits allowed under this Act to the taxable year in
16question.
17    For the purposes of this subsection, the recapture
18percentage shall be determined as follows:
19        (1) if the recapture event occurs within the first year
20    after commencement of the recapture period, then the
21    recapture percentage is 100%;
22        (2) if the recapture event occurs within the second
23    year after commencement of the recapture period, then the
24    recapture percentage is 80%;
25        (3) if the recapture event occurs within the third year
26    after commencement of the recapture period, then the

 

 

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1    recapture percentage is 60%;
2        (4) if the recapture event occurs within the fourth
3    year after commencement of the recapture period, then the
4    recapture percentage is 40%; and
5        (5) if the recapture event occurs within the fifth year
6    after commencement of the recapture period, then the
7    recapture percentage is 20%.
8    In the case of any recapture event, the carryforwards under
9this Act shall be adjusted by reason of such event.
10    (d) The Division may adopt rules to implement this Section
11in addition to the rules expressly authorized herein.
 
12    Section 20. Limitations, reporting, and monitoring.
13    (a) The Division shall award not more than an aggregate of
14$15,000,000 in total annual tax credits pursuant to qualified
15rehabilitation plans for qualified historic structures. The
16Division shall award not more than $3,000,000 in tax credits
17with regard to a single qualified rehabilitation plan. In
18awarding tax credits under this Act, the Division must
19prioritize projects that meet one or more of the following:
20        (1) the qualified historic structure is located in a
21    county that borders a State with a historic property
22    rehabilitation credit;
23        (2) the qualified historic structure was previously
24    owned by a federal, State, or local governmental entity;
25        (3) the qualified historic structure is located in a

 

 

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1    census tract that has a median family income at or below
2    the State median family income; data from the most recent
3    5-year estimate from the American Community Survey (ACS),
4    published by the U.S. Census Bureau, shall be used to
5    determine eligibility;
6        (4) the qualified rehabilitation plan includes in the
7    development partnership a Community Development Entity or
8    a low-profit (B Corporation) or not-for-profit
9    organization, as defined by Section 501(c)(3) of the
10    Internal Revenue Code; or
11        (5) the qualified historic structure is located in an
12    area declared under an Emergency Declaration or Major
13    Disaster Declaration under the federal Robert T. Stafford
14    Disaster Relief and Emergency Assistance Act.
15     (b) The annual aggregate program allocation of $15,000,000
16set forth in subsection (a) shall be allocated by the Division,
17in such proportion as determined by the Department, on a per
18calendar basis twice in each year that the program is in
19effect, provided that: (i) the amount initially allocated by
20the Division for any one calendar application period shall not
21exceed 65% of the total allowable amount and (ii) any portion
22of the allocated allowable amount remaining unused as of the
23end of any of the second calendar application period of a given
24calendar year shall be rolled into and added to the total
25allocated amount for the next available calendar year. The
26qualified rehabilitation plan must meet a readiness test, as

 

 

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1defined in the rules created by the Division, in order for the
2Applicant to qualify. Applicants that qualify under this Act
3will be placed in a queue based on the date and time the
4application is received until such time as the application
5period total allowable amount is reached. Applicants must
6reapply for each application period.
7    (c) On or before December 31, 2019, and on or before
8December 31 of each odd-numbered year thereafter through 2023,
9subject to appropriation and prior to equal disbursement to the
10Division, moneys in the Historic Property Administrative Fund
11shall be used, beginning at the end of the first fiscal year
12after the effective date of this Act, to hire a qualified third
13party to prepare a biennial report to assess the overall
14effectiveness of this Act from the qualified rehabilitation
15projects under this Act completed in that year and in previous
16years. Baseline data of the metrics in the report shall be
17collected at the initiation of a qualified rehabilitation
18project. The overall economic impact shall include at least:
19        (1) the number of applications, project locations, and
20    proposed use of qualified historic structures;
21        (2) the amount of credits awarded and the number and
22    location of projects receiving credit allocations;
23        (3) the status of ongoing projects and projected
24    qualifying expenditures for ongoing projects;
25        (4) for completed projects, the total amount of
26    qualifying rehabilitation expenditures and non-qualifying

 

 

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1    expenditures, the number of housing units created and the
2    number of housing units that qualify as affordable, and the
3    total square footage rehabilitated and developed;
4        (5) direct, indirect, and induced economic impacts;
5        (6) temporary, permanent, and construction jobs
6    created; and
7        (7) sales, income, and property tax generation before
8    construction, during construction, and after completion.
9    The report to the General Assembly shall be filed with the
10Clerk of the House of Representatives and the Secretary of the
11Senate in electronic form only, in the manner that the Clerk
12and the Secretary shall direct.
13    (d) Any time prior to issuance of a tax credit certificate,
14the Director of the Division, the State Historic Preservation
15Officer, or staff of the Division may, upon reasonable notice
16to the project owner of not less than 3 business days, conduct
17a site visit to the project to inspect and evaluate the
18project.
19    (e) Any time prior to the issuance of a tax credit
20certificate and for a period of 4 years following the effective
21date of a project tax credit certificate, the Director may,
22upon reasonable notice of not less than 30 calendar days,
23request a status report from the Applicant consisting of
24information and updates relevant to the status of the project.
25Status reports shall not be requested more than twice yearly.
26    (f) In order to demonstrate sufficient evidence of

 

 

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1reviewable progress within 12 months after the date the
2Applicant received notification of approval from the Division,
3the Applicant shall provide all of the following:
4        (1) a viable financial plan which demonstrates by way
5    of an executed agreement that all financing has been
6    secured for the project; such financing shall include, but
7    not be limited to, equity investment as demonstrated by
8    letters of commitment from the owner of the property,
9    investment partners, and equity investors;
10        (2) final construction drawings or approved building
11    permits that demonstrate the complete rehabilitation of
12    the full scope of the application; and
13        (3) all historic approvals, including all federal and
14    State rehabilitation documents required by the Division.
15    The Director shall review the submitted evidence and may
16request additional documentation from the Applicant if
17necessary. The Applicant will have 30 calendar days to provide
18the information requested, otherwise the approval may be
19rescinded at the discretion of the Director.
20    (g) In order to demonstrate sufficient evidence of
21reviewable progress within 18 months after the date the
22application received notification of approval from the
23Division, the Applicant is required to provide detailed
24evidence that the Applicant has secured and closed on financing
25for the complete scope of rehabilitation for the project. To
26demonstrate evidence that the Applicant has secured and closed

 

 

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1on financing, the Applicant will need to provide signed and
2processed loan agreements, bank financing documents or other
3legal and contractual evidence to demonstrate that adequate
4financing is available to complete the project. The Director
5shall review the submitted evidence and may request additional
6documentation from the Applicant if necessary. The Applicant
7will have 30 calendar days to provide the information
8requested, otherwise the approval may be rescinded at the
9discretion of the Director.
10    If the Applicant fails to document reviewable progress
11within 18 months of approval, the Director may notify the
12Applicant that the application is rescinded. However, should
13financing and construction be imminent, the Director may elect
14to grant the Applicant no more than 5 months to close on
15financing and commence construction. If the Applicant fails to
16meet these conditions in the required timeframe, the Director
17shall notify the Applicant that the application is rescinded.
18Any such rescinded allocation shall be added to the aggregate
19amount of credits available for allocation for the year in
20which the forfeiture occurred.
21    The amount of the qualified expenditures identified in the
22Applicant's certification of completion and reflected on the
23Historic Preservation Tax Credit certificate issued by the
24Director is subject to inspection, examination, and audit by
25the Department of Revenue.
26    The Applicant shall establish and maintain for a period of

 

 

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14 years following the effective date on a project tax credit
2certificate such records as required by the Director. Such
3records include, but are not limited to, records documenting
4project expenditures and compliance with the U.S. Secretary of
5the Interior's Standards. The Applicant shall make such records
6available for review and verification by the Director, the
7State Historic Preservation Officer, the Department of
8Revenue, or appropriate staff, as well as other appropriate
9State agencies. In the event the Director determines an
10Applicant has submitted an annual report containing erroneous
11information or data not supported by records established and
12maintained under this Act, the Director may, after providing
13notice, require the Applicant to resubmit corrected reports.
 
14    Section 25. Powers. The Division shall adopt rules for the
15administration of this Act. The Division may enter into an
16intergovernmental agreement with the Department of Commerce
17and Economic Opportunity, the Department of Revenue, or both,
18for the administration of this Act. Such intergovernmental
19agreement may allow for the distribution of all or a portion of
20the issuance fee imposed under Section 10 to the Department of
21Commerce and Economic Opportunity or the Department of Revenue,
22as applicable.
 
23    Section 900. The Illinois Income Tax Act is amended by
24changing Section 221 and by adding Section 227 as follows:
 

 

 

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1    (35 ILCS 5/221)
2    Sec. 221. Rehabilitation costs; qualified historic
3properties; River Edge Redevelopment Zone.
4    (a) For taxable years that begin beginning on or after
5January 1, 2012 and begin ending prior to January 1, 2018
6January 1, 2022, there shall be allowed a tax credit against
7the tax imposed by subsections (a) and (b) of Section 201 of
8this Act in an amount equal to 25% of qualified expenditures
9incurred by a qualified taxpayer during the taxable year in the
10restoration and preservation of a qualified historic structure
11located in a River Edge Redevelopment Zone pursuant to a
12qualified rehabilitation plan, provided that the total amount
13of such expenditures (i) must equal $5,000 or more and (ii)
14must exceed 50% of the purchase price of the property.
15    (a-1) For taxable years that begin on or after January 1,
162018 and end prior to January 1, 2022, there shall be allowed a
17tax credit against the tax imposed by subsections (a) and (b)
18of Section 201 of this Act in an aggregate amount equal to 25%
19of qualified expenditures incurred by a qualified taxpayer in
20the restoration and preservation of a qualified historic
21structure located in a River Edge Redevelopment Zone pursuant
22to a qualified rehabilitation plan, provided that the total
23amount of such expenditures must (i) equal $5,000 or more and
24(ii) exceed the adjusted basis of the qualified historic
25structure on the first day the qualified rehabilitation plan

 

 

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1begins. For any rehabilitation project, regardless of duration
2or number of phases, the project's compliance with the
3foregoing provisions (i) and (ii) shall be determined based on
4the aggregate amount of qualified expenditures for the entire
5project and may include expenditures incurred under subsection
6(a), this subsection, or both subsection (a) and this
7subsection. If the qualified rehabilitation plan spans
8multiple years, the aggregate credit for the entire project
9shall be allowed in the last taxable year, except for phased
10rehabilitation projects, which may receive credits upon
11completion of each phase. Before obtaining the first phased
12credit: (A) the total amount of such expenditures must meet the
13requirements of provisions (i) and (ii) of this subsection; (B)
14the rehabilitated portion of the qualified historic structure
15must be placed in service; and (C) the requirements of
16subsection (b) must be met.
17    (b) To obtain a tax credit pursuant to this Section, the
18taxpayer must apply with the Department of Natural Resources
19Commerce and Economic Opportunity. The Department of Natural
20Resources Commerce and Economic Opportunity, in consultation
21with the Historic Preservation Agency, shall determine the
22amount of eligible rehabilitation costs and expenses within 45
23days of receipt of a complete application. The taxpayer must
24submit a certification of costs prepared by an independent
25certified public accountant that certifies (i) the project
26expenses, (ii) whether those expenses are qualified

 

 

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1expenditures, and (iii) that the qualified expenditures exceed
2the adjusted basis of the qualified historic structure on the
3first day the qualified rehabilitation plan commenced. The
4Department of Natural Resources is authorized, but not
5required, to accept this certification of costs to determine
6the amount of qualified expenditures and the amount of the
7credit. The Department of Natural Resources shall provide
8guidance as to the minimum standards to be followed in the
9preparation of such certification. The Department of Natural
10Resources and the National Park Service Historic Preservation
11Agency shall determine whether the rehabilitation is
12consistent with the United States Secretary of the Interior's
13Standards for Rehabilitation the standards of the Secretary of
14the United States Department of the Interior for
15rehabilitation.
16    (b-1) Upon completion and review of the project and
17approval of the complete application, the Department of Natural
18Resources Commerce and Economic Opportunity shall issue a
19single certificate in the amount of the eligible credits equal
20to 25% of qualified expenditures incurred during the eligible
21taxable years, as defined in subsections (a) and (a-1),
22excepting any credits awarded under subsection (a) prior to the
23effective date of this amendatory Act of the 100th General
24Assembly and any phased credits issued prior to the eligible
25taxable year under subsection (a-1). At the time the
26certificate is issued, an issuance fee up to the maximum amount

 

 

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1of 2% of the amount of the credits issued by the certificate
2may be collected from the applicant to administer the
3provisions of this Section. If collected, this issuance fee
4shall be deposited into the Historic Property Administrative
5Fund, a special fund created in the State treasury. Subject to
6appropriation, moneys in the Historic Property Administrative
7Fund shall be provided to the Department of Natural Resources
8as reimbursement evenly divided between the Department of
9Commerce and Economic Opportunity and the Historic
10Preservation Agency to reimburse the Department of Commerce and
11Economic Opportunity and the Historic Preservation Agency for
12the costs associated with administering this Section. The
13taxpayer must attach the certificate to the tax return on which
14the credits are to be claimed. The Department of Commerce and
15Economic Opportunity may adopt rules to implement this Section.
16    (c) The taxpayer must attach the certificate to the tax
17return on which the credits are to be claimed. The tax credit
18under this Section may not reduce the taxpayer's liability to
19less than zero. If the amount of the credit exceeds the tax
20liability for the year, the excess credit may be carried
21forward and applied to the tax liability of the 5 taxable years
22following the excess credit year.
23    (c-1) Subject to appropriation, moneys in the Historic
24Property Administrative Fund shall be used, on a biennial basis
25beginning at the end of the second fiscal year after the
26effective date of this amendatory Act of the 100th General

 

 

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1Assembly, to hire a qualified third party to prepare a biennial
2report to assess the overall economic impact to the State from
3the qualified rehabilitation projects under this Section
4completed in that year and in previous years. The overall
5economic impact shall include at least: (1) the direct and
6indirect or induced economic impacts of completed projects; (2)
7temporary, permanent, and construction jobs created; (3)
8sales, income, and property tax generation before, during
9construction, and after completion; and (4) indirect
10neighborhood impact after completion. The report shall be
11submitted to Governor and the General Assembly. The report to
12the General Assembly shall be filed with the Clerk of the House
13of Representatives and the Secretary of the Senate in
14electronic form only, in the manner that the Clerk and the
15Secretary shall direct.
16    (c-2) The Department of Natural Resources may adopt rules
17to implement this Section in addition to the rules expressly
18authorized in this Section.
19    (d) As used in this Section, the following terms have the
20following meanings.
21    "Phased rehabilitation" means a project that is completed
22in phases, as defined under Section 47 of the federal Internal
23Revenue Code and pursuant to National Park Service regulations
24at 36 C.F.R. 67.
25    "Placed in service" means the date when the property is
26placed in a condition or state of readiness and availability

 

 

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1for a specifically assigned function as defined under Section
247 of the federal Internal Revenue Code and federal Treasury
3Regulation Sections 1.46 and 1.48.
4    "Qualified expenditure" means all the costs and expenses
5defined as qualified rehabilitation expenditures under Section
647 of the federal Internal Revenue Code that were incurred in
7connection with a qualified historic structure.
8    "Qualified historic structure" means a certified historic
9structure as defined under Section 47(c)(3) of the federal
10Internal Revenue Code.
11    "Qualified rehabilitation plan" means a project that is
12approved by the Department of Natural Resources and the
13National Park Service Historic Preservation Agency as being
14consistent with the United States Secretary of the Interior's
15Standards for Rehabilitation standards in effect on the
16effective date of this amendatory Act of the 97th General
17Assembly for rehabilitation as adopted by the federal Secretary
18of the Interior.
19    "Qualified taxpayer" means the owner of the qualified
20historic structure or any other person who qualifies for the
21federal rehabilitation credit allowed by Section 47 of the
22federal Internal Revenue Code with respect to that qualified
23historic structure. Partners, shareholders of subchapter S
24corporations, and owners of limited liability companies (if the
25limited liability company is treated as a partnership for
26purposes of federal and State income taxation) are entitled to

 

 

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1a credit under this Section to be determined in accordance with
2the determination of income and distributive share of income
3under Sections 702 and 703 and subchapter S of the Internal
4Revenue Code, provided that credits granted to a partnership, a
5limited liability company taxed as a partnership, or other
6multiple owners of property shall be passed through to the
7partners, members, or owners respectively on a pro rata basis
8or pursuant to an executed agreement among the partners,
9members, or owners documenting any alternate distribution
10method.
11(Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)
 
12    (35 ILCS 5/227 new)
13    Sec. 227. Historic preservation credit. For tax years
14beginning on or after January 1, 2019 and ending on or before
15December 31, 2023, a taxpayer who qualifies for a credit under
16the Historic Preservation Tax Credit Act is entitled to a
17credit against the taxes imposed under subsections (a) and (b)
18of Section 201 of this Act as provided in that Act. If the
19taxpayer is a partnership or Subchapter S corporation, the
20credit shall be allowed to the partners or shareholders in
21accordance with the determination of income and distributive
22share of income under Sections 702 and 704 and Subchapter S of
23the Internal Revenue Code. If the amount of any tax credit
24awarded under this Section exceeds the qualified taxpayer's
25income tax liability for the year in which the qualified

 

 

10000SB3527ham003- 23 -LRB100 20468 HLH 41092 a

1rehabilitation plan was placed in service, the excess amount
2may be carried forward as provided in the Historic Preservation
3Tax Credit Act.".