HB5569 102ND GENERAL ASSEMBLY

LRB102 22294 HLH 31427 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5569

Introduced 1/31/2022, by Rep. Maurice A. West, II

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates a credit for taxpayers that make an eligible donation to a certified home improvement provider in an amount equal to 75% of the amount donated to that certified home improvement provider. Provides that a certified home improvement provider is a local agency, community organization, or community development corporation that (i) specializes in the area of housing improvement, (ii) targets underserved communities that meet the definition of a qualified census tract under Section 42 of the Internal Revenue Code, and (iii) has been approved to issue certificates of receipt for credits by the Illinois Housing Development Authority. Effective immediately.

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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Donations to certified home improvement providers.

(a) For taxable years beginning on or after January 1, 2023, each taxpayer that makes an eligible donation to a certified home improvement provider is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 75% of the amount donated to that certified home improvement provider. Certified home improvement providers are not eligible to make donations under this Section to themselves or to any other certified home improvement providers.

(b) Each prospective certified home improvement provider shall submit an application to the Authority for approval to issue certificates of receipt for credits under this Section in the form and manner prescribed by the Authority. The Authority shall review and either approve or deny each application to issue certificates of receipt pursuant to this Section. Approval or denial of an application shall be made on a periodic basis. Applicants shall be notified of the Authority's determination within 30 business days after the application is received.

(c) In no event shall a credit under this Section 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 a liability, the earlier credit shall be applied first.

(d) As used in this Section:

"Authority" means the Illinois Housing Development Authority.

"Certified home improvement provider" means a local agency, community organization, or community development corporation that (i) specializes in the area of housing improvement, (ii) targets underserved communities that meet the definition of a qualified census tract under Section 42 of the Internal Revenue Code, and (iii) has been approved to issue certificates of receipt for credits under this Section by the Illinois Housing Development Authority.

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

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