Public Act 096-0933
 
SB2534 Enrolled LRB096 17408 HLH 32761 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Historic Preservation Tax Credit Pilot Program Act.
 
    Section 5. Definitions. As used in this Section, unless the
context clearly indicates otherwise:
    (a) "Agency" means the Historic Preservation Agency.
    (b) "Department" means the Department of Commerce and
Economic Opportunity.
    (c) "Qualified expenditures" means all the costs and
expenses defined as qualified rehabilitation expenditures
under Section 47 of the federal Internal Revenue Code which
were incurred in connection with a qualified historic
structure.
    (d) "Qualified historic structure" means a hotel that is
located in the City of Peoria and that is defined as a
certified historic structure under Section 47 (c)(3) of the
federal Internal Revenue Code.
    (e) "Qualified rehabilitation plan" means a project that is
approved by the Agency as being consistent with the standards
in effect on the effective date of this Act for rehabilitation
as adopted by the federal Secretary of the Interior.
    (f) "Qualified taxpayer" means the owner of the qualified
historic structure or any other person who may qualify for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code. If the taxpayer is (i) a
corporation having an election in effect under Subchapter S of
the federal Internal Revenue Code, (ii) a partnership, or (iii)
a limited liability company, the credit provided under this Act
may be claimed by the shareholders of the corporation, the
partners of the partnership, or the members of the limited
liability company in the same manner as those shareholders,
partners, or members account for their proportionate shares of
the income or losses of the corporation, partnership, or
limited liability company, or as provided in the by-laws or
other executed agreement of the corporation, partnership, or
limited liability company. Credits granted to a partnership, a
limited liability company taxed as a partnership, or other
multiple owners of property shall be passed through to the
partners, members, or owners respectively on a pro rata basis
or pursuant to an executed agreement among the partners,
members, or owners documenting any alternate distribution
method.
 
    Section 15. Allowable credit. To the extent authorized by
Section 25 of this Act, for taxable years beginning on or after
January 1, 2010 and ending on or before December 31, 2015,
there shall be allowed a tax credit against the tax imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act in an amount equal to 25% of qualified expenditures
incurred by a qualified taxpayer during the taxable year in the
restoration and preservation of a qualified historic structure
pursuant to a qualified rehabilitation plan, provided that the
total amount of such expenditures (i) must equal $5,000 or
more, and (ii) must exceed 50% of the purchase price of the
property. If the amount of any tax credit awarded under this
Act exceeds the qualified taxpayer's income tax liability for
the year in which the qualified rehabilitation plan was placed
in service, the excess amount may be carried forward for
deduction from the taxpayer's income tax liability in the next
succeeding year or years until the total amount of the credit
has been used, except that a credit may not be carried forward
for deduction after the tenth taxable year after the taxable
year in which the qualified rehabilitation plan was placed in
service. To obtain a tax credit pursuant to this Act, an
application must be made to the Department no later than 6
months after the effective date of this Act. The Department, in
consultation with the Agency, shall determine the amount of
eligible rehabilitation costs and expenses. The Agency shall
determine whether the rehabilitation is consistent with the
standards of the Secretary of the United States Department of
the Interior for rehabilitation. Upon completion and review of
the project, the Department shall issue a certificate in the
amount of the eligible credits. At the time the certificate is
issued, an issuance fee up to the maximum amount of 2% of the
amount of the credits issued by the certificate may be
collected from the applicant to administer the Act. If
collected, this issuance fee shall be evenly divided between
the Department and the Agency. The taxpayer must attach the
certificate to the tax return on which the credits are to be
claimed.
 
    Section 20. Transfer of credits. Any qualified taxpayer,
referred to in this Section as the assignor, may sell, assign,
convey, or otherwise transfer tax credits allowed and earned
under this Act. The taxpayer acquiring the credits, referred to
in this Section as the assignee, may use the amount of the
acquired credits to offset up to 100% of its income tax
liability for either the taxable year in which the qualified
rehabilitation plan was first placed into service or the
taxable year in which such acquisition was made. Unused credit
amounts claimed by the assignee may be carried forward for up
to 10 years or carried back for up to 3 years, except that all
credits must be claimed within 10 years after the tax year in
which the qualified rehabilitation plan was first placed into
service and may not be carried back to a tax year prior to the
tax year in which the credit was issued. The assignor shall
enter into a written agreement with the assignee establishing
the terms and conditions of the agreement and shall perfect the
transfer by notifying the Department in writing within 90
calendar days after the effective date of the transfer and
shall provide any information as may be required by the
Department to administer and carry out the provisions of this
Section. If credits that have been transferred are subsequently
reduced, adjusted, or recaptured, in whole or in part, by the
Department, the Department of Revenue, or any other applicable
government agency, only the original qualified taxpayer that
was awarded the credits, and not any subsequent assignee of the
credits, shall be held liable to repay any amount of such
reduction, adjustment, or recapture of the credits.
 
    Section 25. Pilot program; report. The Department may award
no more than an aggregate of $10,000,000 in total tax credits
pursuant to one qualified rehabilitation plan for one qualified
historic structure. On or before December 31, 2010 and on or
before December 31 of each year thereafter through 2016, the
Department must submit a report to the General Assembly
evaluating the effectiveness of this Act in stimulating
economic revitalization in the pilot program area.
 
    Section 30. Powers. The Department and the Agency shall
promulgate rules and regulations for the administration of this
Act.
 
    Section 35. The Illinois Income Tax Act is amended by
adding Section 219 as follows:
 
    (35 ILCS 5/219 new)
    Sec. 219. Historic preservation credit. For tax years
beginning on or after January 1, 2010 and ending on or before
December 31, 2015, a taxpayer who qualifies for a credit under
the Historic Preservation Tax Credit Pilot Program Act is
entitled to a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of this Act as provided
in that Act. If the taxpayer is a partnership or Subchapter S
corporation, the credit shall be allowed to the partners or
shareholders in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
Subchapter S of the Internal Revenue Code.
    If the amount of any tax credit awarded under this Section
exceeds the qualified taxpayer's income tax liability for the
year in which the qualified rehabilitation plan was placed in
service, the excess amount may be carried forward or back as
provided in the Historic Preservation Tax Credit Pilot Program
Act.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 06/21/2010