Full Text of SB2886 97th General Assembly
SB2886eng 97TH GENERAL ASSEMBLY |
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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 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 221 as follows: | 6 | | (35 ILCS 5/221) | 7 | | Sec. 221. Rehabilitation costs; qualified historic | 8 | | properties; River Edge Redevelopment Zone. | 9 | | (a) For taxable years beginning on or after January 1, 2012 | 10 | | and ending prior to January 1, 2017, there shall be allowed a | 11 | | tax credit against the tax imposed by subsections (a) and (b) | 12 | | of Section 201 in an amount equal to 25% of qualified | 13 | | expenditures incurred by a qualified taxpayer during the | 14 | | taxable year in the restoration and preservation of a qualified | 15 | | historic structure located in a River Edge Redevelopment Zone | 16 | | pursuant to a qualified rehabilitation plan, provided that the | 17 | | total amount of such expenditures (i) must equal $5,000 or more | 18 | | and (ii) must exceed 50% of the purchase price of the property. | 19 | | (b) To obtain a tax credit pursuant to this Section, the | 20 | | taxpayer must apply with the Department of Commerce and | 21 | | Economic Opportunity. The Department of Commerce and Economic | 22 | | Opportunity, in consultation with the Historic Preservation | 23 | | Agency, shall determine the amount of eligible rehabilitation |
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| 1 | | costs and expenses. The Historic Preservation Agency shall | 2 | | determine whether the rehabilitation is consistent with the | 3 | | standards of the Secretary of the United States Department of | 4 | | the Interior for rehabilitation. Upon completion and review of | 5 | | the project, the Department of Commerce and Economic | 6 | | Opportunity shall issue a certificate in the amount of the | 7 | | eligible credits. At the time the certificate is issued, an | 8 | | issuance fee up to the maximum amount of 2% of the amount of | 9 | | the credits issued by the certificate may be collected from the | 10 | | applicant to administer the provisions of this Section. If | 11 | | collected, this issuance fee shall be deposited into the | 12 | | Historic Property Administrative Fund, a special fund created | 13 | | in the State treasury. Subject to appropriation, moneys in the | 14 | | Historic Property Administrative Fund shall be evenly divided | 15 | | between the Department of Commerce and Economic Opportunity and | 16 | | the Historic Preservation Agency to reimburse the Department of | 17 | | Commerce and Economic Opportunity and the Historic | 18 | | Preservation Agency for the costs associated with | 19 | | administering this Section. The taxpayer must attach the | 20 | | certificate to the tax return on which the credits are to be | 21 | | claimed. The Department of Commerce and Economic Opportunity | 22 | | may adopt rules to implement this Section. | 23 | | (c) The tax credit under this Section may not reduce the | 24 | | taxpayer's liability to less than
zero. | 25 | | (c-5) Any person or entity, referred to in this Section as | 26 | | the assignor, may sell, assign, convey, or otherwise transfer |
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| 1 | | tax credits allowed and earned under this Act. The person or | 2 | | entity acquiring the tax credits, referred to in this Section | 3 | | as the assignee, may use the amount of the acquired tax credits | 4 | | to offset up to 100% of its tax liability for the taxable year | 5 | | in which the qualified rehabilitation plan was first placed | 6 | | into service, and any unused tax credits claimed by the | 7 | | assignee may be carried forward for up to 10 years or carried | 8 | | back for up to 1 year, except that all tax credits must be | 9 | | claimed within 10 years after the tax year in which the | 10 | | qualified rehabilitation plan was first placed into service and | 11 | | may not be carried back more than one year before the taxable | 12 | | year in which the qualified rehabilitation plan was placed in | 13 | | service. The assignor shall enter into a written agreement with | 14 | | the assignee establishing the terms and conditions of the | 15 | | agreement, shall perfect the transfer by notifying the | 16 | | Department of Commerce and Economic Opportunity in writing | 17 | | within 90 calendar days after the effective date of the | 18 | | transfer, and shall provide any information as may be required | 19 | | by the Department of Commerce and Economic Opportunity to | 20 | | administer and carry out the provisions of this Section. For | 21 | | purposes of this Section, assignors and assignees may include a | 22 | | non-profit entity with a Section 501(c)(3) designation under | 23 | | the federal Internal Revenue Code, although such entity shall | 24 | | not be the original recipient of the tax credits. The tax | 25 | | credits may be transferred more than once. The tax credits may | 26 | | be bifurcated to be transferred to more than one assignee. If |
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| 1 | | tax credits that have been transferred are subsequently | 2 | | reduced, adjusted, or recaptured, in whole or in part, by the | 3 | | Department of Commerce and Economic Opportunity, the | 4 | | Department of Revenue, or any other applicable government | 5 | | agency, only the original qualified taxpayer that was awarded | 6 | | the tax credits, and not any subsequent assignee of the tax | 7 | | credits, shall be held liable to repay any amount of such | 8 | | reduction, adjustment, or recapture of the tax credits. | 9 | | (d) As used in this Section, the following terms have the | 10 | | following meanings. | 11 | | "Qualified expenditure" means all the costs and expenses | 12 | | defined as qualified rehabilitation expenditures under Section | 13 | | 47 of the federal Internal Revenue Code that were incurred in | 14 | | connection with a qualified historic structure. | 15 | | "Qualified historic structure" means a certified historic | 16 | | structure as defined under Section 47 (c)(3) of the federal | 17 | | Internal Revenue Code. | 18 | | "Qualified rehabilitation plan" means a project that is | 19 | | approved by the Historic Preservation Agency as being | 20 | | consistent with the standards in effect on the effective date | 21 | | of this amendatory Act of the 97th General Assembly for | 22 | | rehabilitation as adopted by the federal Secretary of the | 23 | | Interior. | 24 | | "Qualified taxpayer" means the owner of the qualified | 25 | | historic structure or any other person who qualifies for the | 26 | | federal rehabilitation credit allowed by Section 47 of the |
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| 1 | | federal Internal Revenue Code with respect to that qualified | 2 | | historic structure. Partners, shareholders of subchapter S | 3 | | corporations, and owners of limited liability companies (if the | 4 | | limited liability company is treated as a partnership for | 5 | | purposes of federal and State income taxation) are entitled to | 6 | | a credit under this Section to be determined in accordance with | 7 | | the determination of income and distributive share of income | 8 | | under Sections 702 and 703 and subchapter S of the Internal | 9 | | Revenue Code, provided that credits granted to a partnership, a | 10 | | limited liability company taxed as a partnership, or other | 11 | | multiple owners of property shall be passed through to the | 12 | | partners, members, or owners respectively on a pro rata basis | 13 | | or pursuant to an executed agreement among the partners, | 14 | | members, or owners documenting any alternate distribution | 15 | | method.
| 16 | | (Source: P.A. 97-203, eff. 7-28-11.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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