Full Text of HB3109 99th General Assembly
HB3109 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3109 Introduced , by Rep. Steven Andersson SYNOPSIS AS INTRODUCED: |
| |
Amends the Illinois Income Tax Act. Provides that the credit awarded for the restoration and preservation of a qualified historic structure applies on a permanent basis. Removes a requirement that the historic structure must be located in a River Edge Redevelopment Zone. Effective immediately.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
| | | HB3109 | | LRB099 09218 HLH 29421 b |
|
| 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 | | The credit under this Section is exempt from the provisions of | 20 | | Section 250. | 21 | | (b) To obtain a tax credit pursuant to this Section, the | 22 | | taxpayer must apply with the Department of Commerce and | 23 | | Economic Opportunity. The Department of Commerce and Economic |
| | | HB3109 | - 2 - | LRB099 09218 HLH 29421 b |
|
| 1 | | Opportunity, in consultation with the Historic Preservation | 2 | | Agency, shall determine the amount of eligible rehabilitation | 3 | | costs and expenses. The Historic Preservation Agency shall | 4 | | determine whether the rehabilitation is consistent with the | 5 | | standards of the Secretary of the United States Department of | 6 | | the Interior for rehabilitation. Upon completion and review of | 7 | | the project, the Department of Commerce and Economic | 8 | | Opportunity shall issue a certificate in the amount of the | 9 | | eligible credits. At the time the certificate is issued, an | 10 | | issuance fee up to the maximum amount of 2% of the amount of | 11 | | the credits issued by the certificate may be collected from the | 12 | | applicant to administer the provisions of this Section. If | 13 | | collected, this issuance fee shall be deposited into the | 14 | | Historic Property Administrative Fund, a special fund created | 15 | | in the State treasury. Subject to appropriation, moneys in the | 16 | | Historic Property Administrative Fund shall be evenly divided | 17 | | between the Department of Commerce and Economic Opportunity and | 18 | | the Historic Preservation Agency to reimburse the Department of | 19 | | Commerce and Economic Opportunity and the Historic | 20 | | Preservation Agency for the costs associated with | 21 | | administering this Section. The taxpayer must attach the | 22 | | certificate to the tax return on which the credits are to be | 23 | | claimed. The Department of Commerce and Economic Opportunity | 24 | | may adopt rules to implement this Section. | 25 | | (c) The tax credit under this Section may not reduce the | 26 | | taxpayer's liability to less than
zero. |
| | | HB3109 | - 3 - | LRB099 09218 HLH 29421 b |
|
| 1 | | (d) As used in this Section, the following terms have the | 2 | | following meanings. | 3 | | "Qualified expenditure" means all the costs and expenses | 4 | | defined as qualified rehabilitation expenditures under Section | 5 | | 47 of the federal Internal Revenue Code that were incurred in | 6 | | connection with a qualified historic structure. | 7 | | "Qualified historic structure" means a certified historic | 8 | | structure as defined under Section 47 (c)(3) of the federal | 9 | | Internal Revenue Code. | 10 | | "Qualified rehabilitation plan" means a project that is | 11 | | approved by the Historic Preservation Agency as being | 12 | | consistent with the standards in effect on the effective date | 13 | | of this amendatory Act of the 97th General Assembly for | 14 | | rehabilitation as adopted by the federal Secretary of the | 15 | | Interior. | 16 | | "Qualified taxpayer" means the owner of the qualified | 17 | | historic structure or any other person who qualifies for the | 18 | | federal rehabilitation credit allowed by Section 47 of the | 19 | | federal Internal Revenue Code with respect to that qualified | 20 | | historic structure. Partners, shareholders of subchapter S | 21 | | corporations, and owners of limited liability companies (if the | 22 | | limited liability company is treated as a partnership for | 23 | | purposes of federal and State income taxation) are entitled to | 24 | | a credit under this Section to be determined in accordance with | 25 | | the determination of income and distributive share of income | 26 | | under Sections 702 and 703 and subchapter S of the Internal |
| | | HB3109 | - 4 - | LRB099 09218 HLH 29421 b |
|
| 1 | | Revenue Code, provided that credits granted to a partnership, a | 2 | | limited liability company taxed as a partnership, or other | 3 | | multiple owners of property shall be passed through to the | 4 | | partners, members, or owners respectively on a pro rata basis | 5 | | or pursuant to an executed agreement among the partners, | 6 | | members, or owners documenting any alternate distribution | 7 | | method.
| 8 | | (Source: P.A. 97-203, eff. 7-28-11.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
|
|