97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3582

 

Introduced 2/24/2011, by Rep. Jehan A. Gordon

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.786 new
35 ILCS 5/221 new
65 ILCS 115/10-2
65 ILCS 115/10-5.3

    Amends the Illinois Income Tax Act. Creates a credit 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 located in a River Edge Redevelopment Zone pursuant to a qualified rehabilitation plan. Defines "qualified taxpayer, "qualified historic structure", and "qualified rehabilitation plan". Provides that the credit may be carried forward until the tenth taxable year after the qualified rehabilitation plan was placed in service. Amends the River Edge Redevelopment Zone Act. Provides that, until December 31, 2012, the Department may certify one additional River Edge Redevelopment Zone in the City of Peoria. 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,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.786 as follows:
 
6    (30 ILCS 105/5.786 new)
7    Sec. 5.786. The Historic Property Administrative Fund.
 
8    Section 10. The Illinois Income Tax Act is amended by
9adding Section 221 as follows:
 
10    (35 ILCS 5/221 new)
11    Sec. 221. Rehabilitation costs; qualified historic
12properties; River Edge Redevelopment Zone.
13    (a) For taxable years beginning on or after January 1,
142012, there shall be allowed a tax credit against the tax
15imposed by subsections (a) and (b) of Section 201 in an amount
16equal to 25% of qualified expenditures incurred by a qualified
17taxpayer during the taxable year in the restoration and
18preservation of a qualified historic structure located in a
19River Edge Redevelopment Zone pursuant to a qualified
20rehabilitation plan, provided that the total amount of such
21expenditures (i) must equal $5,000 or more and (ii) must exceed

 

 

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150% of the purchase price of the property.
2    (b) To obtain a tax credit pursuant to this Section, the
3taxpayer must apply with the Department of Commerce and
4Economic Opportunity no later than 6 months after the effective
5date of this amendatory Act of the 97th General Assembly. The
6Department of Commerce and Economic Opportunity, in
7consultation with the Historic Preservation Agency, shall
8determine the amount of eligible rehabilitation costs and
9expenses. The Historic Preservation Agency shall determine
10whether the rehabilitation is consistent with the standards of
11the Secretary of the United States Department of the Interior
12for rehabilitation. Upon completion and review of the project,
13the Department of Commerce and Economic Opportunity shall issue
14a certificate in the amount of the eligible credits. At the
15time the certificate is issued, an issuance fee up to the
16maximum amount of 2% of the amount of the credits issued by the
17certificate may be collected from the applicant to administer
18the provisions of this Section. If collected, this issuance fee
19shall be deposited into the Historic Property Administrative
20Fund, a special fund created in the State treasury. Subject to
21appropriation, moneys in the Historic Property Administrative
22Fund shall be evenly divided between the Department of Commerce
23and Economic Opportunity and the Historic Preservation Agency
24to reimburse the Department of Commerce and Economic
25Opportunity and the Historic Preservation Agency for the costs
26associated with administering this Section. The taxpayer must

 

 

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1attach the certificate to the tax return on which the credits
2are to be claimed.
3    (c) The tax credit under this Section may not reduce the
4taxpayer's liability to less than zero. If the amount of any
5tax credit awarded under this Section exceeds the qualified
6taxpayer's income tax liability for the year in which the
7qualified rehabilitation plan was placed in service, the excess
8amount may be carried forward for deduction from the taxpayer's
9income tax liability in the next succeeding year or years until
10the total amount of the credit has been used, except that a
11credit may not be carried forward for deduction after the tenth
12taxable year after the taxable year in which the qualified
13rehabilitation plan was placed in service.
14    (d) As used in this Section, the following terms have the
15following meanings.
16    "Qualified expenditure" means all the costs and expenses
17defined as qualified rehabilitation expenditures under Section
1847 of the federal Internal Revenue Code that were incurred in
19connection with a qualified historic structure.
20    "Qualified historic structure" means a certified historic
21structure as defined under Section 47 (c)(3) of the federal
22Internal Revenue Code.
23    "Qualified rehabilitation plan" means a project that is
24approved by the Historic Preservation Agency as being
25consistent with the standards in effect on the effective date
26of this amendatory Act of the 97th General Assembly for

 

 

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1rehabilitation as adopted by the federal Secretary of the
2Interior.
3    "Qualified taxpayer" means the owner of the qualified
4historic structure or any other person who qualifies for the
5federal rehabilitation credit allowed by Section 47 of the
6federal Internal Revenue Code with respect to that qualified
7historic structure. If the taxpayer is (i) a corporation having
8an election in effect under Subchapter S of the federal
9Internal Revenue Code, (ii) a partnership, or (iii) a limited
10liability company, the credit provided under this Act may be
11claimed by the shareholders of the corporation, the partners of
12the partnership, or the members of the limited liability
13company in the same manner as those shareholders, partners, or
14members account for their proportionate shares of the income or
15losses of the corporation, partnership, or limited liability
16company, or as provided in the by-laws or other executed
17agreement of the corporation, partnership, or limited
18liability company. Credits granted to a partnership, a limited
19liability company taxed as a partnership, or other multiple
20owners of property shall be passed through to the partners,
21members, or owners respectively on a pro rata basis or pursuant
22to an executed agreement among the partners, members, or owners
23documenting any alternate distribution method.
 
24    Section 15. The River Edge Redevelopment Zone Act is
25amended by changing Sections 10-2 and 10-5.3 as follows:
 

 

 

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1    (65 ILCS 115/10-2)
2    Sec. 10-2. Findings. The General Assembly finds and
3declares that those municipalities adjacent to or surrounding
4river areas often lack critical tools to safely revive and
5redevelop environmentally-challenged properties that will
6stimulate economic revitalization and create jobs in Illinois.
7Environmentally-challenged properties adjacent to or
8surrounding Illinois rivers are a threat to the health, safety,
9and welfare of the people of this State. Many of these
10environmentally-challenged properties adjacent to or
11surrounding rivers were former industrial areas that now,
12subject to appropriate environmental clean-up and remediation,
13would be ideal for office, residential, retail, hospitality,
14commercial, recreational, warehouse and distribution, and
15other economically productive uses. The cost of the cleaning
16and remediation of these environmentally-challenged properties
17is often the primary obstacle to returning these properties to
18a safe and economically productive use.
19    Cooperative and continuous partnership among the State,
20through the Department of Commerce and Economic Opportunity and
21the Environmental Protection Agency, municipalities adjacent
22to or surrounding rivers, and the private sector is necessary
23to appropriately encourage the cost-effective cleaning and
24remediation of these environmentally-challenged properties in
25order to bring about a safe and economically productive use of

 

 

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1the properties.
2     Therefore, it is declared to be the purpose of this Act to
3identify and initiate 3 pilot River Edge Redevelopment Zones to
4stimulate the safe and cost-effective re-use of
5environmentally-challenged properties adjacent to or
6surrounding rivers by means of tax incentives or grants. On or
7after the effective date of this amendatory Act of the 97th
8General Assembly and until December 31, 2012, the Department
9may certify an additional River Edge Redevelopment Zone in the
10City of Peoria.
11(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
 
12    (65 ILCS 115/10-5.3)
13    Sec. 10-5.3. Certification of River Edge Redevelopment
14Zones.
15    (a) Approval of designated River Edge Redevelopment Zones
16shall be made by the Department by certification of the
17designating ordinance. The Department shall promptly issue a
18certificate for each zone upon its approval. The certificate
19shall be signed by the Director of the Department, shall make
20specific reference to the designating ordinance, which shall be
21attached thereto, and shall be filed in the office of the
22Secretary of State. A certified copy of the River Edge
23Redevelopment Zone Certificate, or a duplicate original
24thereof, shall be recorded in the office of the recorder of
25deeds of the county in which the River Edge Redevelopment Zone

 

 

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1lies.
2    (b) A River Edge Redevelopment Zone shall be effective upon
3its certification. The Department shall transmit a copy of the
4certification to the Department of Revenue, and to the
5designating municipality. Upon certification of a River Edge
6Redevelopment Zone, the terms and provisions of the designating
7ordinance shall be in effect, and may not be amended or
8repealed except in accordance with Section 10-5.4.
9    (c) A River Edge Redevelopment Zone shall be in effect for
10the period stated in the certificate, which shall in no event
11exceed 30 calendar years. Zones shall terminate at midnight of
12December 31 of the final calendar year of the certified term,
13except as provided in Section 10-5.4.
14    (d) In calendar years 2006 and 2007, the Department may
15certify one pilot River Edge Redevelopment Zone in the City of
16East St. Louis, one pilot River Edge Redevelopment Zone in the
17City of Rockford, and one pilot River Edge Redevelopment Zone
18in the City of Aurora.
19    In calendar year 2009, the Department may certify one pilot
20River Edge Redevelopment Zone in the City of Elgin.
21    On or after the effective date of this amendatory Act of
22the 97th General Assembly and until December 31, 2012, the
23Department may certify one additional River Edge Redevelopment
24Zone in the City of Peoria.
25    Thereafter the Department may not certify any additional
26River Edge Redevelopment Zones, but may amend and rescind

 

 

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1certifications of existing River Edge Redevelopment Zones in
2accordance with Section 10-5.4.
3    (e) A municipality in which a River Edge Redevelopment Zone
4has been certified must submit to the Department, within 60
5days after the certification, a plan for encouraging the
6participation by minority persons, females, persons with
7disabilities, and veterans in the zone. The Department may
8assist the municipality in developing and implementing the
9plan. The terms "minority person", "female", and "person with a
10disability" have the meanings set forth under Section 2 of the
11Business Enterprise for Minorities, Females, and Persons with
12Disabilities Act. "Veteran" means an Illinois resident who is a
13veteran as defined in subsection (h) of Section 1491 of Title
1410 of the United States Code.
15(Source: P.A. 96-37, eff. 7-13-09.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.