SB1767 100TH GENERAL ASSEMBLY

LRB100 09267 HLH 19425 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1767

Introduced 2/9/2017, by Sen. Chuck Weaver

SYNOPSIS AS INTRODUCED:

35 ILCS 5/219
35 ILCS 30/15

Amends the Illinois Income Tax Act and the Historic Preservation Tax Credit Pilot Program Act. Provides that the historic preservation tax credit applies again for tax years beginning on or after January 1, 2017 and beginning prior to January 1, 2023 (currently, the credit applied for tax years beginning on or after January 1, 2010 and ending on or before December 31, 2015). Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by changing Section 219 as follows:

(35 ILCS 5/219)

Sec. 219. Historic preservation credit. For tax years beginning on or after January 1, 2010 and ending on or before December 31, 2015, and beginning again for tax years beginning on or after January 1, 2017 and beginning prior to January 1, 2023, 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.

(Source: P.A. 96-933, eff. 6-21-10.)

Section 10. The Historic Preservation Tax Credit Pilot Program Act is amended by changing Section 15 as follows:

(35 ILCS 30/15)

Sec. 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, and beginning again for tax years beginning on or after January 1, 2017 and beginning prior to January 1, 2023, 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 (i) no later than 6 months after the effective date of this Act or (ii) no later than 6 months after the effective date of this amendatory Act of the 100th General Assembly. 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.

(Source: P.A. 96-933, eff. 6-21-10.)

Section 99. Effective date. This Act takes effect upon becoming law.