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| Public Act 100-0236 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 221 as follows: | ||||
(35 ILCS 5/221) | ||||
Sec. 221. Rehabilitation costs; qualified historic | ||||
properties; River Edge Redevelopment Zone. | ||||
(a) For taxable years beginning on or after January 1, 2012 | ||||
and ending prior to January 1, 2022 January 1, 2018, there | ||||
shall be allowed a tax credit against the tax imposed by | ||||
subsections (a) and (b) of Section 201 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 located in a River Edge | ||||
Redevelopment Zone 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. | ||||
(b) To obtain a tax credit pursuant to this Section, the | ||||
taxpayer must apply with the Department of Commerce and | ||||
Economic Opportunity. The Department of Commerce and Economic | ||||
Opportunity, in consultation with the Historic Preservation | ||||
Agency, shall determine the amount of eligible rehabilitation | ||
costs and expenses. The Historic Preservation 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 of Commerce and Economic | ||
Opportunity 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 provisions of this Section. If | ||
collected, this issuance fee shall be deposited into the | ||
Historic Property Administrative Fund, a special fund created | ||
in the State treasury. Subject to appropriation, moneys in the | ||
Historic Property Administrative Fund shall be evenly divided | ||
between the Department of Commerce and Economic Opportunity and | ||
the Historic Preservation Agency to reimburse the Department of | ||
Commerce and Economic Opportunity and the Historic | ||
Preservation Agency for the costs associated with | ||
administering this Section. The taxpayer must attach the | ||
certificate to the tax return on which the credits are to be | ||
claimed. The Department of Commerce and Economic Opportunity | ||
may adopt rules to implement this Section. | ||
(c) The tax credit under this Section may not reduce the | ||
taxpayer's liability to less than
zero. | ||
(d) As used in this Section, the following terms have the | ||
following meanings. | ||
"Qualified expenditure" means all the costs and expenses | ||
defined as qualified rehabilitation expenditures under Section | ||
47 of the federal Internal Revenue Code that were incurred in | ||
connection with a qualified historic structure. | ||
"Qualified historic structure" means a certified historic | ||
structure as defined under Section 47 (c)(3) of the federal | ||
Internal Revenue Code. | ||
"Qualified rehabilitation plan" means a project that is | ||
approved by the Historic Preservation Agency as being | ||
consistent with the standards in effect on the effective date | ||
of this amendatory Act of the 97th General Assembly for | ||
rehabilitation as adopted by the federal Secretary of the | ||
Interior. | ||
"Qualified taxpayer" means the owner of the qualified | ||
historic structure or any other person who qualifies for the | ||
federal rehabilitation credit allowed by Section 47 of the | ||
federal Internal Revenue Code with respect to that qualified | ||
historic structure. 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, provided that 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.
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(Source: P.A. 99-914, eff. 12-20-16.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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