95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0490

 

Introduced 2/8/2007, by Sen. Kirk W. Dillard

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/218 new

    Amends the Illinois Income Tax Act. Creates a tax credit, for taxable years ending on or after December 31, 2007, for taxpayers who make an eligible expenditure during the taxable year for the rehabilitation of a qualified historic building. Sets the credit at an amount equal to 25% of the total expenditures made during the taxable year for the rehabilitation, but not to exceed $100,000. Defines "eligible expenditure" as an expenditure equal to at least 10% of the fair cash value of the qualified historic building before the rehabilitation. Defines "qualified historic building" as a commercial building or an owner-occupied residential building that is listed in a national, State, or local historic registry. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning revenue.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Income Tax Act is amended by adding
5 Section 218 as follows:
 
6     (35 ILCS 5/218 new)
7     Sec. 218. Historic preservation credit.
8     (a) For taxable years ending on or after December 31, 2007,
9 each taxpayer who makes an eligible expenditure during the
10 taxable year for the rehabilitation of a qualified historic
11 building is entitled to a credit against the tax imposed under
12 subsections (a) and (b) of Section 201 in an amount equal to
13 25% of the total expenditures made during the taxable year for
14 the rehabilitation, but not to exceed $100,000.
15     (b) For the purpose of this Section:
16     "Eligible expenditure" means an expenditure equal to at
17 least 10% of the fair cash value of the qualified historic
18 building before the rehabilitation.
19     "Qualified historic building" means a commercial building
20 or an owner-occupied residential building that is listed in a
21 national, State, or local historic registry.
22     (c) For partners, shareholders of Subchapter S
23 corporations, and owners of limited liability companies, if the

 

 

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1 liability company is treated as a partnership for purposes of
2 federal and State income taxation, there is allowed a credit
3 under this Section to be determined in accordance with the
4 determination of income and distributive share of income under
5 Sections 702 and 704 and Subchapter S of the Internal Revenue
6 Code.
7     (d) The credit may not be carried back and may not reduce
8 the taxpayer's liability to less than zero. If the amount of
9 the credit exceeds the tax liability for the year, the excess
10 may be carried forward and applied to the tax liability of the
11 5 taxable years following the excess credit year. The tax
12 credit shall be applied to the earliest year for which there is
13 a tax liability. If there are credits for more than one year
14 that are available to offset a liability, the earlier credit
15 shall be applied first.
16     (e) This Section is exempt from the provisions of Section
17 250.
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.