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92_HB2559 LRB9206116SMdv 1 AN ACT in relation to taxation. 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 adding Section 213 as follows: 6 (35 ILCS 5/213 new) 7 Sec. 213. Illinois low-income housing tax credit. 8 (a) As used in this Section, unless the context clearly 9 requires otherwise: 10 "Authority" means the Illinois Housing Development 11 Authority. 12 "Director" means the Director of Revenue. 13 "Eligibility statement" means a statement authorized and 14 issued by the Authority certifying that a given project 15 qualifies for the Illinois low-income housing tax credit. 16 The Authority shall promulgate rules establishing criteria 17 upon which the eligibility statements will be issued. The 18 eligibility statement shall specify the amount of the 19 Illinois low-income housing tax credit allowed. The 20 Authority shall authorize the tax credits only to qualified 21 projects that begin after December 31, 2001. 22 "Federal low-income housing tax credit" means the federal 23 tax credit as provided in Section 42 of the Internal Revenue 24 Code of 1986, as amended. 25 "Geographic area" means the metropolitan area or county 26 designated as an area by the federal Department of Housing 27 and Urban Development under Section 8 of the United States 28 Housing Act of 1937, as amended, for purposes of determining 29 fair market rental rates. 30 "Low-income project" means a housing project that has at 31 least 20% of its units occupied by persons and families whose -2- LRB9206116SMdv 1 income does not exceed 50% of the median family income for 2 the geographic area in which the project is located or the 3 median family income for the State of Illinois, whichever is 4 larger; or at least 40% of its units occupied by persons and 5 families whose income does not exceed 60% the median income 6 for the geographic area in which the project is located or 7 the median family income for the State of Illinois, whichever 8 is larger. 9 "Median income" means those incomes that are determined 10 by the federal Department of Housing and Urban Development 11 guidelines and adjusted for family size. 12 "Qualified Illinois project" means a qualified low-income 13 building as that term is determined in Section 42 of the 1986 14 Internal Revenue Code of 1986, as amended, that is located in 15 Illinois. 16 (b) A taxpayer owning an interest in a qualified 17 Illinois project shall be allowed a credit against the tax 18 imposed by subsections (a) and (b) of Section 201, whether or 19 not allowed a federal tax credit, to be termed the "Illinois 20 low-income housing tax credit", if the Authority issues an 21 eligibility statement for that project. For qualified 22 Illinois projects, the Illinois low-income housing tax credit 23 available to a project shall be the amount as the Authority 24 shall determine is necessary to ensure the feasibility of the 25 project, up to an amount equal to the federal low-income 26 housing tax credit for a qualified Illinois project, for a 27 federal tax period. The Illinois low-income housing tax 28 credit issued in accordance with this Section may be 29 allocated to 2 or more taxpayers eligible for the credit 30 under this Section. An owner of a qualified Illinois project 31 shall certify to the Director the ownership interest of each 32 taxpayer eligible for the credit and other appropriate 33 information so that the low-income housing tax credit can be 34 properly allocated by the Director. The Director shall -3- LRB9206116SMdv 1 allocate the credit based upon the amount of each eligible 2 taxpayer's ownership interest. If the amount of the 3 allocated credit exceeds the tax liability owned under 4 subsections (a) and (b) of Section 201 by the taxpayer for 5 the year, the excess may be carried forward and applied to 6 the tax liability of the 10 taxable years following the 7 excess credit year. The tax credit shall be applied to the 8 earliest year for which there is a tax liability. If there 9 are credits for more than one year that are available to 10 offset a liability, the earlier credit shall be applied 11 first. 12 (c) The owner of a qualified Illinois project eligible 13 for the Illinois low-income housing tax credit shall submit 14 an eligibility statement at the time of filing the owner's 15 returns. 16 (d) If under Section 42 of the Internal Revenue Code of 17 1986, as amended, a portion of any federal low-income housing 18 credits taken on a low-income project is required to be 19 recaptured, the taxpayer claiming State credits with respect 20 to the project shall also be required to recapture a portion 21 of the State credit claimed by the taxpayer that equals the 22 proportion that the federal recapture amount bears to the 23 original low-income housing credit amount subject to 24 recapture. 25 (e) The provisions of this Section are exempt from 26 Section 250. 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.
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