Full Text of SB2922 103rd General Assembly
SB2922 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB2922 Introduced 1/26/2024, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: | | | Amends the Illinois Income Tax Act. Provides a tax credit for certain developers of single-family residences that incur development costs and that sell or rent qualified residences to individuals who meet certain income thresholds. Sets forth the amount of the credit. Effective immediately. |
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| | 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 | 5 | | adding Section 241 as follows: | 6 | | (35 ILCS 5/241 new) | 7 | | Sec. 241. Middle-income Housing Development Tax Credit | 8 | | Pilot Program. | 9 | | (a) For taxable years ending on or after December 31, 2024 | 10 | | and ending on or before December 31, 2027, each taxpayer that | 11 | | is a developer of a qualified residence and that invests up to | 12 | | $200,000 in development costs associated with the qualified | 13 | | residence may apply to the Authority for a credit against the | 14 | | taxes imposed by subsections (a) and (b) of Section 201 in an | 15 | | amount set forth in subsection (b). | 16 | | (b) The amount of the credit shall be calculated as | 17 | | follows: | 18 | | (1) if the qualified residence is sold or rented to | 19 | | one or more individuals with a combined household income | 20 | | that exceeds 80% of the median household income in | 21 | | Illinois but does not exceed 90% of the median household | 22 | | income in Illinois, then the credit is equal to 20% of the | 23 | | development costs associated with the qualified residence |
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| 1 | | but not to exceed $40,000 for that qualified residence; | 2 | | (2) if the qualified residence is sold or rented to | 3 | | one or more individuals with a combined household income | 4 | | that exceeds 90% of the median household income in | 5 | | Illinois but does not exceed 110% of the median household | 6 | | income in Illinois, then the credit is equal to 15% of the | 7 | | development costs associated with the qualified residence | 8 | | but not to exceed $30,000 for that qualified residence; | 9 | | and | 10 | | (3) if the qualified residence is sold or rented to | 11 | | one or more individuals with a combined household income | 12 | | that exceeds 110% of the median household income in | 13 | | Illinois but does not exceed 120% of the median household | 14 | | income in Illinois, then the credit is equal to 20% of the | 15 | | development costs associated with the qualified residence | 16 | | but not to exceed $20,000 for that qualified residence. | 17 | | The Authority shall determine the median household income | 18 | | in Illinois using data compiled by the United States Census | 19 | | Bureau. Development costs that are paid for using federal, | 20 | | State, or local incentives that do not require repayment are | 21 | | not included as qualifying investments and shall not be | 22 | | included when calculating the tax credit award amount under | 23 | | this Section. | 24 | | (c) The Authority may not issue more than $50,000,000 in | 25 | | credits under this Section. Of the total credits awarded under | 26 | | this Section, 35% must be for qualified residences located in |
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| 1 | | a county with 100,000 or more residents and 350,000 or fewer | 2 | | residents. Each qualified residence may qualify for only one | 3 | | credit during the taxable year in which the residence is first | 4 | | sold or rented. No taxpayer may receive more than $2,000,000 | 5 | | in credits under this Section for any one project. | 6 | | (d) In no event shall a credit under this Section reduce | 7 | | the taxpayer's liability to less than zero. If the amount of | 8 | | the credit exceeds the tax liability for the year, the excess | 9 | | may be carried forward and applied to the tax liability of the | 10 | | 5 taxable years following the excess credit year. The tax | 11 | | credit shall be applied to the earliest year for which there is | 12 | | a tax liability. If there are credits for more than one year | 13 | | that are available to offset a liability, the earlier credit | 14 | | shall be applied first. | 15 | | (e) If the taxpayer is a partnership or Subchapter S | 16 | | corporation, the credit is allowed to pass through to the | 17 | | partners and shareholders as provided in Section 251. Credits | 18 | | may also be transferred during the 5 taxable years after the | 19 | | taxable year in which the credit is claimed. | 20 | | (f) The Authority shall adopt rules to implement and | 21 | | administer this Section, including rules concerning | 22 | | applications for the tax credit. A taxpayer claiming a credit | 23 | | under this Section must maintain and record any information | 24 | | that the Authority may require regarding the development | 25 | | project for which the credit is claimed. | 26 | | (g) As used in this Section: |
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| 1 | | "Authority" means the Illinois Housing Development | 2 | | Authority. | 3 | | "Developer" includes for-profit and non-profit developers, | 4 | | as well as land banks. | 5 | | "Development costs" means any costs associated with the | 6 | | construction or rehabilitation of a qualified residence. | 7 | | "Household" means all persons using the qualified | 8 | | residence as their principal place of residence upon the sale | 9 | | or lease of the qualified residence by the developer. | 10 | | "Household income" means the combined federal adjusted | 11 | | gross income of the members of the household for the taxable | 12 | | year immediately preceding the year in which the qualified | 13 | | residence is sold or rented to the members of the household. | 14 | | "Qualified residence" means a single-family residence that | 15 | | (i) is new construction or has been rehabilitated with $30,000 | 16 | | or more in rehabilitative development costs incurred by the | 17 | | taxpayer and (ii) is sold or rented pursuant to a contract with | 18 | | a term of one year or longer to one or more individuals with a | 19 | | combined household income that exceeds 80% of the median | 20 | | household income in Illinois but does not exceed 120% of the | 21 | | median household income in Illinois. The residence must also | 22 | | have at least a $1,000 local match investment. | 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law. |
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