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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Historic Preservation Agency Act is amended | ||||||||||||||||||||||||||
5 | by adding Section 40 as follows: | ||||||||||||||||||||||||||
6 | (20 ILCS 3405/40 new)
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7 | Sec. 40. Authorizations of historic preservation credits. | ||||||||||||||||||||||||||
8 | (a) The Agency shall authorize an income tax credit to | ||||||||||||||||||||||||||
9 | taxpayers who incur eligible costs and expenses
for | ||||||||||||||||||||||||||
10 | rehabilitation of a certified historic structure or a
structure | ||||||||||||||||||||||||||
11 | in a certified
historic district. The amount of the credit that | ||||||||||||||||||||||||||
12 | may be authorized to a taxpayer by the Agency under this | ||||||||||||||||||||||||||
13 | Section is an amount equal to 25% of the eligible costs and | ||||||||||||||||||||||||||
14 | expenses
incurred in the
taxable year. The Agency shall develop | ||||||||||||||||||||||||||
15 | and make available a standardized application pertaining to the | ||||||||||||||||||||||||||
16 | allocation of tax credits under this Section. The Department | ||||||||||||||||||||||||||
17 | must accepts applications and authorize credits on an ongoing | ||||||||||||||||||||||||||
18 | basis. The Department must make public, by June 1 and by | ||||||||||||||||||||||||||
19 | December 1 of each year, the total number of requests for tax | ||||||||||||||||||||||||||
20 | credits and the total amount of requested tax credits that have | ||||||||||||||||||||||||||
21 | been submitted and awarded. | ||||||||||||||||||||||||||
22 | (b) The aggregate amount of all credits that the Agency may | ||||||||||||||||||||||||||
23 | authorize in any calendar year under this Section may not |
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1 | exceed $40,000,000. Of the annual amount available for tax | ||||||
2 | credits, 50% must be reserved for those rehabilitation projects | ||||||
3 | incurring eligible costs and expenses of $1,000,000 or less and | ||||||
4 | 25% must be reserved for those rehabilitation projects | ||||||
5 | incurring eligible costs and expenses of $50,000 or less. If, | ||||||
6 | by September 1 of any year, any percentage of credits that is | ||||||
7 | reserved under this subsection is not allocated, then the | ||||||
8 | remaining amount is available for other applicants. | ||||||
9 | (c) If the Agency receives applications for tax credit in | ||||||
10 | excess of the amount available, then the applications must be | ||||||
11 | prioritized by the date that the Agency received them. If the | ||||||
12 | number of applications exceeds the amount of annual tax credits | ||||||
13 | available, then the Agency must establish a wait list for the | ||||||
14 | next year's allocation of tax credits, and applications must | ||||||
15 | first be funded in the order listed on that wait list. | ||||||
16 | (d) For the purposes of this Section: | ||||||
17 | "Eligible costs and expenses" are those expenses that | ||||||
18 | exceed 50% of the federal tax basis of
the
property and that | ||||||
19 | meet the requirements for qualified rehabilitation | ||||||
20 | expenditures
as defined
under Section 47(c)(2)(A) of the | ||||||
21 | Internal Revenue Code. | ||||||
22 | "Rehabilitation" includes only those rehabilitations that | ||||||
23 | meet the standards of the Secretary of the United States
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24 | Department of the Interior for rehabilitation, as determined by | ||||||
25 | the Agency.
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1 | Section 10. The Illinois Income Tax Act is amended by | ||||||
2 | adding Section 218 as
follows:
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3 | (35 ILCS 5/218 new) | ||||||
4 | Sec. 218. Historic Preservation Tax Credit. | ||||||
5 | (a) For taxable years ending on or after December 31, 2007, | ||||||
6 | each taxpayer for whom a tax credit has been authorized by the | ||||||
7 | Historic Preservation Agency under Section 40 of the Historic | ||||||
8 | Preservation Agency Act, is entitled to a credit against the | ||||||
9 | tax imposed under subsections (a) and (b) of Section 201 in an | ||||||
10 | amount equal to the amount authorized under that Section. | ||||||
11 | (b) For partners, shareholders of Subchapter S | ||||||
12 | corporations, and owners of limited liability companies, if the | ||||||
13 | liability company is treated as a partnership for purposes of | ||||||
14 | federal and State income taxation, there is allowed a credit | ||||||
15 | under this Section to be determined in accordance with the | ||||||
16 | determination of income and distributive share of income under | ||||||
17 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
18 | Code. | ||||||
19 | (c) The credit may not be carried back and may not reduce | ||||||
20 | the taxpayer's liability to less than zero. If the amount of | ||||||
21 | the credit exceeds the tax liability for the year, the excess | ||||||
22 | may be carried forward and applied to the tax liability of the | ||||||
23 | 2 taxable years following the excess credit year. The tax | ||||||
24 | credit must be applied to the earliest year for which there is | ||||||
25 | a tax liability. If there are credits for more than one year |
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1 | that are available to offset a liability, the earlier credit | ||||||
2 | shall be applied first. | ||||||
3 | (d) This Section is exempt from the provisions of Section | ||||||
4 | 250.
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law. |