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Public Act 097-0203
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| SB2168 Enrolled | LRB097 09058 HLH 49192 b |
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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 State Finance Act is amended by adding |
Section 5.786 as follows:
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(30 ILCS 105/5.786 new) |
Sec. 5.786. The Historic Property Administrative Fund.
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Section 10. The Illinois Income Tax Act is amended by |
adding Section 221 as follows:
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(35 ILCS 5/221 new) |
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, 2017, 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 |
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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 |
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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 |
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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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Section 15. The River Edge Redevelopment Zone Act is |
amended by changing Sections 10-2 and 10-5.3 as follows:
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(65 ILCS 115/10-2)
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Sec. 10-2. Findings. The General Assembly finds and |
declares that those municipalities adjacent to or surrounding |
river areas often lack critical tools to safely revive and |
redevelop environmentally-challenged properties that will |
stimulate economic revitalization and create jobs in Illinois. |
Environmentally-challenged properties adjacent to or |
surrounding Illinois rivers are a threat to the health, safety, |
and welfare of the people of this State. Many of these |
environmentally-challenged properties adjacent to or |
surrounding rivers were former industrial areas that now, |
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subject to appropriate environmental clean-up and remediation, |
would be ideal for office, residential, retail, hospitality, |
commercial, recreational, warehouse and distribution, and |
other economically productive uses. The cost of the cleaning |
and remediation of these environmentally-challenged properties |
is often the primary obstacle to returning these properties to |
a safe and economically productive use. |
Cooperative and continuous partnership among the State, |
through the Department of Commerce and Economic Opportunity and |
the Environmental Protection Agency, municipalities adjacent |
to or surrounding rivers, and the private sector is necessary |
to appropriately encourage the cost-effective cleaning and |
remediation of these environmentally-challenged properties in |
order to bring about a safe and economically productive use of |
the properties. |
Therefore, it is declared to be the purpose of this Act to |
identify and initiate 3 pilot River Edge Redevelopment Zones to |
stimulate the safe and cost-effective re-use of |
environmentally-challenged properties adjacent to or |
surrounding rivers by means of tax incentives or grants. On or |
after the effective date of this amendatory Act of the 97th |
General Assembly, the Department may certify an additional |
pilot River Edge Redevelopment Zone in the City of Peoria.
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(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
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(65 ILCS 115/10-5.3)
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Sec. 10-5.3. Certification of River Edge Redevelopment |
Zones. |
(a) Approval of designated River Edge Redevelopment Zones |
shall be made by the Department by certification of the |
designating ordinance. The Department shall promptly issue a |
certificate for each zone upon its approval. The certificate |
shall be signed by the Director of the Department, shall make |
specific reference to the designating ordinance, which shall be |
attached thereto, and shall be filed in the office of the |
Secretary of State. A certified copy of the River Edge |
Redevelopment Zone Certificate, or a duplicate original |
thereof, shall be recorded in the office of the recorder of |
deeds of the county in which the River Edge Redevelopment Zone |
lies. |
(b) A River Edge Redevelopment Zone shall be effective upon |
its certification. The Department shall transmit a copy of the |
certification to the Department of Revenue, and to the |
designating municipality.
Upon certification of a River Edge |
Redevelopment Zone, the terms and provisions of the designating |
ordinance shall be in effect, and may not be amended or |
repealed except in accordance with Section 10-5.4. |
(c) A River Edge Redevelopment Zone shall be in effect for |
the period stated in the certificate, which shall in no event |
exceed 30 calendar years. Zones shall terminate at midnight of |
December 31 of the final calendar year of the certified term, |
except as provided in Section 10-5.4. |
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(d) In calendar years 2006 and 2007, the Department may |
certify one pilot River Edge Redevelopment Zone in the City of |
East St. Louis, one pilot River Edge Redevelopment Zone in the |
City of Rockford, and one pilot River Edge Redevelopment Zone |
in the City of Aurora. |
In calendar year 2009, the Department may certify one pilot |
River Edge Redevelopment Zone in the City of Elgin. |
On or after the effective date of this amendatory Act of |
the 97th General Assembly, the Department may certify one |
additional pilot River Edge Redevelopment Zone in the City of |
Peoria. |
Thereafter the Department may not certify any additional |
River Edge Redevelopment Zones, but may amend and rescind |
certifications of existing River Edge Redevelopment Zones in |
accordance with Section 10-5.4. |
(e) A municipality in which a River Edge Redevelopment Zone |
has been certified must submit to the Department, within 60 |
days after the certification, a plan for encouraging the |
participation by minority persons, females, persons with |
disabilities, and veterans in the zone. The Department may |
assist the municipality in developing and implementing the |
plan. The terms "minority person", "female", and "person with a |
disability" have the meanings set forth under Section 2 of the |
Business Enterprise for Minorities, Females, and Persons with |
Disabilities Act. "Veteran" means an Illinois resident who is a |
veteran as defined in subsection (h) of Section 1491 of Title |