(35 ILCS 5/214)
Sec. 214. Tax credit for affordable housing donations.
(a) Beginning with taxable years ending on or after December 31, 2001 and
until the taxable year ending on December 31, 2026, a taxpayer who makes a
donation under Section 7.28 of the Illinois Housing Development Act is entitled to a credit
against the tax imposed by subsections (a) and (b) of Section 201 in an amount
equal
to 50% of the value of the donation. For taxable years ending before December 31, 2023, partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if the limited
liability company is treated as a partnership for purposes of federal and State
income
taxation) are entitled to a credit under this Section to be determined in
accordance with the determination of income and distributive share of income
under Sections 702 and 703 and subchapter S of the Internal Revenue Code.
For taxable years ending on or after December 31, 2023, partners and shareholders of subchapter S
corporations are entitled to a credit under this Section as provided in Section 251. Persons or entities not subject to the tax imposed by subsections (a) and (b)
of Section 201 and who make a donation under Section 7.28 of the Illinois
Housing Development Act are entitled to a credit as described in this
subsection and may transfer that credit as described in subsection (c).
(b) If the amount of the credit exceeds the tax liability for the year, the
excess may be carried forward and applied to the tax liability of the 5 taxable
years following the excess credit year. The tax credit shall be applied to the
earliest year for which there is a tax liability. If there are credits for
more than one year that are available to offset a liability, the earlier credit
shall be applied first.
(c) The transfer of the tax credit allowed under this Section may be made
(i) to the purchaser of land that has been designated solely for affordable
housing projects in accordance with the Illinois Housing Development Act or
(ii) to another donor who has also made a donation in accordance with Section 7.28 of the
Illinois Housing
Development Act.
(d) A taxpayer claiming the credit provided by this Section must maintain
and record any information that the Department may require by regulation
regarding the project for which the credit is claimed.
When
claiming the credit provided by this Section, the taxpayer must provide
information regarding the taxpayer's donation to the project under the Illinois Housing Development Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21; 103-396, eff. 1-1-24.)
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