HB3050 101ST GENERAL ASSEMBLY

LRB101 08641 HLH 53725 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3050

Introduced , by Rep. Aaron M. Ortiz

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Provides that each taxpayer who owns rental property in the State is entitled to an income tax credit if the taxpayer (i) rents the property to a low-income household during the taxable year and (ii) charges rent to that household that is not more than 50% of the fair market rental value for the property. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT 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 adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Affordable housing credit.

(a) For taxable years beginning on or after January 1, 2019, each taxpayer who owns rental property in the State is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 if the taxpayer (i) rents the property to a low-income household during the taxable year and (ii) charges rent to that household that is not more than 50% of the fair market rental value for the property. The amount of the credit shall be 100% of the difference between the average rent charged to the low-income household during the taxable year and the fair market rental value for the property.

(b) For partners, shareholders of subchapter S corporations, and owners of limited liability companies, if the entity is treated as a partnership for purposes of federal and State income taxation, the credit under this Section shall be determined 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.

(c) The credit may not be carried back and may not reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset the liability, the earlier credit shall be applied first.

(d) As used in this Section, "low-income household" means a household whose adjusted gross income for the taxable year is less than 135% of the federal poverty level, as determined by the most recent United States census.

(e) This Section is exempt from the provisions of Section 250.

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