Illinois General Assembly - Full Text of HB2429
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of HB2429  102nd General Assembly

HB2429 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2429

 

Introduced 2/19/2021, by Rep. LaToya Greenwood

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221

    Amends the Illinois Income Tax Act. In provisions creating a credit for rehabilitation costs associated with qualified historic property located in a River Edge Redevelopment Zone, provides that, if the River Edge Redevelopment Zone is located in the City of East St. Louis, then the tax credit applies for taxable years that end prior to January 1, 2027 (currently, January 1, 2022). Effective immediately.


LRB102 14980 HLH 20335 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2429LRB102 14980 HLH 20335 b

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 Illinois Income Tax Act is amended by
5changing Section 221 as follows:
 
6    (35 ILCS 5/221)
7    Sec. 221. Rehabilitation costs; qualified historic
8properties; River Edge Redevelopment Zone.
9    (a) For taxable years that begin on or after January 1,
102012 and begin prior to January 1, 2018, there shall be allowed
11a tax credit against the tax imposed by subsections (a) and (b)
12of Section 201 of this Act in an amount equal to 25% of
13qualified expenditures incurred by a qualified taxpayer during
14the taxable year in the restoration and preservation of a
15qualified historic structure located in a River Edge
16Redevelopment Zone pursuant to a qualified rehabilitation
17plan, provided that the total amount of such expenditures (i)
18must equal $5,000 or more and (ii) must exceed 50% of the
19purchase price of the property.
20    (a-1) For taxable years that begin on or after January 1,
212018 and end prior to January 1, 2022, there shall be allowed a
22tax credit against the tax imposed by subsections (a) and (b)
23of Section 201 of this Act in an aggregate amount equal to 25%

 

 

HB2429- 2 -LRB102 14980 HLH 20335 b

1of qualified expenditures incurred by a qualified taxpayer in
2the restoration and preservation of a qualified historic
3structure located in a River Edge Redevelopment Zone pursuant
4to a qualified rehabilitation plan, provided that the total
5amount of such expenditures must (i) equal $5,000 or more and
6(ii) exceed the adjusted basis of the qualified historic
7structure on the first day the qualified rehabilitation plan
8begins. For any rehabilitation project, regardless of duration
9or number of phases, the project's compliance with the
10foregoing provisions (i) and (ii) shall be determined based on
11the aggregate amount of qualified expenditures for the entire
12project and may include expenditures incurred under subsection
13(a), this subsection, or both subsection (a) and this
14subsection. If the qualified rehabilitation plan spans
15multiple years, the aggregate credit for the entire project
16shall be allowed in the last taxable year, except for phased
17rehabilitation projects, which may receive credits upon
18completion of each phase. Before obtaining the first phased
19credit: (A) the total amount of such expenditures must meet
20the requirements of provisions (i) and (ii) of this
21subsection; (B) the rehabilitated portion of the qualified
22historic structure must be placed in service; and (C) the
23requirements of subsection (b) must be met. Notwithstanding
24any other provision of law, if the River Edge Redevelopment
25Zone is located in the City of East St. Louis, then the tax
26credit under this subsection (a-1) applies for taxable years

 

 

HB2429- 3 -LRB102 14980 HLH 20335 b

1that end prior to January 1, 2027.
2    (a-2) For taxable years beginning on or after January 1,
32021 and ending prior to January 1, 2022, there shall be
4allowed a tax credit against the tax imposed by subsections
5(a) and (b) of Section 201 as provided in Section 10-10.3 of
6the River Edge Redevelopment Zone Act. The credit allowed
7under this subsection (a-2) shall apply only to taxpayers that
8make a capital investment of at least $1,000,000 in a
9qualified rehabilitation plan. Notwithstanding any other
10provision of law, if the River Edge Redevelopment Zone is
11located in the City of East St. Louis, then the tax credit
12under this subsection (a-2) applies for taxable years that end
13prior to January 1, 2027.
14    The credit or credits may not reduce the taxpayer's
15liability to less than zero. If the amount of the credit or
16credits exceeds the taxpayer's liability, the excess may be
17carried forward and applied against the taxpayer's liability
18in succeeding calendar years in the manner provided under
19paragraph (4) of Section 211 of this Act. The credit or credits
20shall be applied to the earliest year for which there is a tax
21liability. If there are credits from more than one taxable
22year that are available to offset a liability, the earlier
23credit shall be applied first.
24    For partners, shareholders of Subchapter S corporations,
25and owners of limited liability companies, if the liability
26company is treated as a partnership for the purposes of

 

 

HB2429- 4 -LRB102 14980 HLH 20335 b

1federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and Subchapter S of the Internal
5Revenue Code.
6    The total aggregate amount of credits awarded under the
7Blue Collar Jobs Act (Article 20 of this amendatory Act of the
8101st General Assembly) shall not exceed $20,000,000 in any
9State fiscal year.
10    (b) To obtain a tax credit pursuant to this Section, the
11taxpayer must apply with the Department of Natural Resources.
12The Department of Natural Resources shall determine the amount
13of eligible rehabilitation costs and expenses in addition to
14the amount of the River Edge construction jobs credit within
1545 days of receipt of a complete application. The taxpayer
16must submit a certification of costs prepared by an
17independent certified public accountant that certifies (i) the
18project expenses, (ii) whether those expenses are qualified
19expenditures, and (iii) that the qualified expenditures exceed
20the adjusted basis of the qualified historic structure on the
21first day the qualified rehabilitation plan commenced. The
22Department of Natural Resources is authorized, but not
23required, to accept this certification of costs to determine
24the amount of qualified expenditures and the amount of the
25credit. The Department of Natural Resources shall provide
26guidance as to the minimum standards to be followed in the

 

 

HB2429- 5 -LRB102 14980 HLH 20335 b

1preparation of such certification. The Department of Natural
2Resources and the National Park Service shall determine
3whether the rehabilitation is consistent with the United
4States Secretary of the Interior's Standards for
5Rehabilitation.
6    (b-1) Upon completion of the project and approval of the
7complete application, the Department of Natural Resources
8shall issue a single certificate in the amount of the eligible
9credits equal to 25% of qualified expenditures incurred during
10the eligible taxable years, as defined in subsections (a) and
11(a-1), excepting any credits awarded under subsection (a)
12prior to January 1, 2019 (the effective date of Public Act
13100-629) and any phased credits issued prior to the eligible
14taxable year under subsection (a-1). At the time the
15certificate is issued, an issuance fee up to the maximum
16amount 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
19fee shall be deposited into the Historic Property
20Administrative Fund, a special fund created in the State
21treasury. Subject to appropriation, moneys in the Historic
22Property Administrative Fund shall be provided to the
23Department of Natural Resources as reimbursement for the costs
24associated with administering this Section.
25    (c) The taxpayer must attach the certificate to the tax
26return on which the credits are to be claimed. The tax credit

 

 

HB2429- 6 -LRB102 14980 HLH 20335 b

1under this Section may not reduce the taxpayer's liability to
2less than zero. If the amount of the credit exceeds the tax
3liability for the year, the excess credit may be carried
4forward and applied to the tax liability of the 5 taxable years
5following the excess credit year.
6    (c-1) Subject to appropriation, moneys in the Historic
7Property Administrative Fund shall be used, on a biennial
8basis beginning at the end of the second fiscal year after
9January 1, 2019 (the effective date of Public Act 100-629), to
10hire a qualified third party to prepare a biennial report to
11assess the overall economic impact to the State from the
12qualified rehabilitation projects under this Section completed
13in that year and in previous years. The overall economic
14impact shall include at least: (1) the direct and indirect or
15induced economic impacts of completed projects; (2) temporary,
16permanent, and construction jobs created; (3) sales, income,
17and property tax generation before, during construction, and
18after completion; and (4) indirect neighborhood impact after
19completion. The report shall be submitted to the Governor and
20the General Assembly. The report to the General Assembly shall
21be filed with the Clerk of the House of Representatives and the
22Secretary of the Senate in electronic form only, in the manner
23that the Clerk and the Secretary shall direct.
24    (c-2) The Department of Natural Resources may adopt rules
25to implement this Section in addition to the rules expressly
26authorized in this Section.

 

 

HB2429- 7 -LRB102 14980 HLH 20335 b

1    (d) As used in this Section, the following terms have the
2following meanings.
3    "Phased rehabilitation" means a project that is completed
4in phases, as defined under Section 47 of the federal Internal
5Revenue Code and pursuant to National Park Service regulations
6at 36 C.F.R. 67.
7    "Placed in service" means the date when the property is
8placed in a condition or state of readiness and availability
9for a specifically assigned function as defined under Section
1047 of the federal Internal Revenue Code and federal Treasury
11Regulation Sections 1.46 and 1.48.
12    "Qualified expenditure" means all the costs and expenses
13defined as qualified rehabilitation expenditures under Section
1447 of the federal Internal Revenue Code that were incurred in
15connection with a qualified historic structure.
16    "Qualified historic structure" means a certified historic
17structure as defined under Section 47(c)(3) of the federal
18Internal Revenue Code.
19    "Qualified rehabilitation plan" means a project that is
20approved by the Department of Natural Resources and the
21National Park Service as being consistent with the United
22States Secretary of the Interior's Standards for
23Rehabilitation.
24    "Qualified taxpayer" means the owner of the qualified
25historic structure or any other person who qualifies for the
26federal rehabilitation credit allowed by Section 47 of the

 

 

HB2429- 8 -LRB102 14980 HLH 20335 b

1federal Internal Revenue Code with respect to that qualified
2historic structure. Partners, shareholders of subchapter S
3corporations, and owners of limited liability companies (if
4the limited liability company is treated as a partnership for
5purposes of federal and State income taxation) are entitled to
6a credit under this Section to be determined in accordance
7with the determination of income and distributive share of
8income under Sections 702 and 703 and subchapter S of the
9Internal Revenue Code, provided that credits granted to a
10partnership, a limited liability company taxed as a
11partnership, or other multiple owners of property shall be
12passed through to the partners, members, or owners
13respectively on a pro rata basis or pursuant to an executed
14agreement among the partners, members, or owners documenting
15any alternate distribution method.
16(Source: P.A. 100-236, eff. 8-18-17; 100-629, eff. 1-1-19;
17100-695, eff. 8-3-18; 101-9, eff. 6-5-19; 101-81, eff.
187-12-19.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.