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| 1 | AN ACT concerning revenue.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Section 214 as follows:
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| 6 | (35 ILCS 5/214)
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| 7 | Sec. 214. Tax credit for affordable housing donations.
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| 8 | (a) Beginning with taxable years ending on or after | ||||||
| 9 | December 31, 2001 and
until the taxable year ending on December | ||||||
| 10 | 31, 2021 December 31, 2016, a taxpayer who makes a
donation | ||||||
| 11 | under Section 7.28 of the Illinois Housing Development Act is | ||||||
| 12 | entitled to a credit
against the tax imposed by subsections (a) | ||||||
| 13 | and (b) of Section 201 in an amount
equal
to 50% of the value of | ||||||
| 14 | the donation. Partners, shareholders of subchapter S
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| 15 | corporations, and owners of limited liability companies (if the | ||||||
| 16 | limited
liability company is treated as a partnership for | ||||||
| 17 | purposes of federal and State
income
taxation) are entitled to | ||||||
| 18 | a credit under this Section to be determined in
accordance with | ||||||
| 19 | the determination of income and distributive share of income
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| 20 | under Sections 702 and 703 and subchapter S of the Internal | ||||||
| 21 | Revenue Code.
Persons or entities not subject to the tax | ||||||
| 22 | imposed by subsections (a) and (b)
of Section 201 and who make | ||||||
| 23 | a donation under Section 7.28 of the Illinois
Housing | ||||||
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| 1 | Development Act are entitled to a credit as described in this
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| 2 | subsection and may transfer that credit as described in | ||||||
| 3 | subsection (c).
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| 4 | (b) If the amount of the credit exceeds the tax liability | ||||||
| 5 | for the year, the
excess may be carried forward and applied to | ||||||
| 6 | the tax liability of the 5 taxable
years following the excess | ||||||
| 7 | credit year. The tax credit shall be applied to the
earliest | ||||||
| 8 | year for which there is a tax liability. If there are credits | ||||||
| 9 | for
more than one year that are available to offset a | ||||||
| 10 | liability, the earlier credit
shall be applied first.
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| 11 | (c) The transfer of the tax credit allowed under this | ||||||
| 12 | Section may be made
(i) to the purchaser of land that has been | ||||||
| 13 | designated solely for affordable
housing projects in | ||||||
| 14 | accordance with the Illinois Housing Development Act or
(ii) to | ||||||
| 15 | another donor who has also made a donation in accordance with | ||||||
| 16 | Section 7.28 of the
Illinois Housing
Development Act.
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| 17 | (d) A taxpayer claiming the credit provided by this Section | ||||||
| 18 | must maintain
and record any information that the Department | ||||||
| 19 | may require by regulation
regarding the project for which the | ||||||
| 20 | credit is claimed.
When
claiming the credit provided by this | ||||||
| 21 | Section, the taxpayer must provide
information regarding the | ||||||
| 22 | taxpayer's donation to the project under the Illinois Housing | ||||||
| 23 | Development Act.
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| 24 | (Source: P.A. 96-1276, eff. 7-26-10; 97-507, eff. 8-23-11.)
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| 25 | Section 99. Effective date. This Act takes effect upon | ||||||
| 26 | becoming law. | ||||||