Illinois General Assembly - Full Text of SB3527
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Full Text of SB3527  100th General Assembly

SB3527enr 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB3527 EnrolledLRB100 20468 HLH 35824 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 1. Short title. This Act may be cited as the
5Historic Preservation Tax Credit Act.
 
6    Section 5. Definitions. As used in this Act, unless the
7context clearly indicates otherwise:
8    "Division" means the State Historic Preservation Office
9within the Department of Natural Resources.
10    "Phased rehabilitation" means a project that is completed
11in phases, as defined under Section 47 of the federal Internal
12Revenue Code and pursuant to National Park Service regulations
13at 36 C.F.R. 67.
14    "Placed in service" means the date when the property is
15placed in a condition or state of readiness and availability
16for a specifically assigned function as defined under Section
1747 of the federal Internal Revenue Code and federal Treasury
18Regulation Sections 1.46 and 1.48.
19    "Qualified expenditures" means all the costs and expenses
20defined as qualified rehabilitation expenditures under Section
2147 of the federal Internal Revenue Code that were incurred in
22connection with a qualified historic structure.
23    "Qualified historic structure" means any structure that is

 

 

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1located in Illinois and is defined as a certified historic
2structure under Section 47 (c)(3) of the federal Internal
3Revenue Code.
4    "Qualified rehabilitation plan" means a project that is
5approved by the Department of Natural Resources and the
6National Park Service as being consistent with the United
7States Secretary of the Interior's Standards for
8Rehabilitation.
9    "Qualified taxpayer" means the owner of the qualified
10historic structure or any other person who may qualify for the
11federal rehabilitation credit allowed by Section 47 of the
12federal Internal Revenue Code.
13    "Recapture event" means any of the following events
14occurring during the recapture period:
15        (1) failure to place in service the rehabilitated
16    portions of the qualified historic structure, or failure to
17    maintain the rehabilitated portions of the qualified
18    historic structure in service after they are placed in
19    service; provided that a recapture event under this
20    paragraph (1) shall not include a removal from service for
21    a reasonable period of time to conduct maintenance and
22    repairs that are reasonably necessary to protect the health
23    and safety of the public or to protect the structural
24    integrity of the qualified historic structure or a
25    neighboring structure;
26        (2) demolition or other alteration of the qualified

 

 

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1    historic structure in a manner that is inconsistent with
2    the qualified rehabilitation plan or the Secretary of the
3    Interior's Standards for Rehabilitation;
4        (3) disposition of the rehabilitated qualified
5    historic structure in whole or a proportional disposition
6    of a partnership interest therein, except as otherwise
7    permitted by this Section; or
8        (4) use of the qualified historic structure in a manner
9    that is inconsistent with the qualified rehabilitation
10    plan or that is otherwise inconsistent with the provisions
11    and intent of this Section.
12    A recapture event occurring in one taxable year shall be
13deemed continuing to subsequent taxable years unless and until
14corrected.
15    The following dispositions of a qualified historic
16structure shall not be deemed to be a recapture event for
17purposes of this Section:
18        (1) a transfer by reason of death;
19        (2) a transfer between spouses incident to divorce;
20        (3) a sale by and leaseback to an entity that, when the
21    rehabilitated portions of the qualified historic structure
22    are placed in service, will be a lessee of the qualified
23    historic structure, but only for so long as the entity
24    continues to be a lessee; and
25        (4) a mere change in the form of conducting the trade
26    or business by the owner (or, if applicable, the lessee) of

 

 

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1    the qualified historic structure, so long as the property
2    interest in such qualified historic structure is retained
3    in such trade or business and the owner or lessee retains a
4    substantial interest in such trade or business.
5    "Recapture period" means the 5-year period beginning on the
6date that the qualified historic structure or rehabilitated
7portions of the qualified historic structure are placed in
8service.
9    "Substantial rehabilitation" means that the qualified
10rehabilitation expenditures during the 24-month period
11selected by the taxpayer at the time and in the manner
12prescribed by rule and ending with or within the taxable year
13exceed the greater of (i) the adjusted basis of the building
14and its structural components or (ii) $5,000. The adjusted
15basis of the building and its structural components shall be
16determined as of the beginning of the first day of such
1724-month period or as of the beginning of the first day of the
18holding period of the building, whichever is later. For
19purposes of determining the adjusted basis, the determination
20of the beginning of the holding period shall be made without
21regard to any reconstruction by the taxpayer in connection with
22the rehabilitation. In the case of any phased rehabilitation,
23with phases set forth in architectural plans and specifications
24completed before the rehabilitation begins, this definition
25shall be applied by substituting "60-month period" for
26"24-month period" wherever that term occurs in the definition.
 

 

 

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1    Section 10. Allowable credit.
2    (a) To the extent authorized by this Act, for taxable years
3beginning on or after January 1, 2019 and ending on or before
4December 31, 2023, there shall be allowed a tax credit against
5the tax imposed by subsections (a) and (b) of Section 201 of
6the Illinois Income Tax Act in an aggregate amount equal to 25%
7of qualified expenditures incurred by a qualified taxpayer
8undertaking a qualified rehabilitation plan of a qualified
9historic structure, provided that the total amount of such
10expenditures must (i) equal $5,000 or more or (ii) exceed the
11adjusted basis of the qualified historic structure on the first
12day the qualified rehabilitation plan commenced. If the
13qualified rehabilitation plan spans multiple years, the
14aggregate credit for the entire project shall be allowed in the
15last taxable year.
16    (b) To obtain a tax credit pursuant to this Section, the
17taxpayer must apply with the Division. The Division shall
18determine the amount of eligible rehabilitation expenditures
19within 45 days after receipt of a complete application. The
20taxpayer must provide to the Division a third-party cost
21certification conducted by a certified public accountant
22verifying (i) the qualified and non-qualified rehabilitation
23expenses and (ii) that the qualified expenditures exceed the
24adjusted basis of the qualified historic structure on the first
25day the qualified rehabilitation plan commenced. The

 

 

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1accountant shall provide appropriate review and testing of
2invoices. The Division is authorized, but not required, to
3accept this third-party cost certification to determine the
4amount of qualified expenditures. The Division and the National
5Park Service shall determine whether the rehabilitation is
6consistent with the Standards of the Secretary of the United
7States Department of the Interior.
8    (c) If the amount of any tax credit awarded under this Act
9exceeds the qualified taxpayer's income tax liability for the
10year in which the qualified rehabilitation plan was placed in
11service, the excess amount may be carried forward for deduction
12from the taxpayer's income tax liability in the next succeeding
13year or years until the total amount of the credit has been
14used, except that a credit may not be carried forward for
15deduction after the tenth taxable year after the taxable year
16in which the qualified rehabilitation plan was placed in
17service. Upon completion and review of the project, the
18Division shall issue a single certificate in the amount of the
19eligible credits equal to 25% of the qualified expenditures
20incurred during the eligible taxable years. At the time the
21certificate is issued, an issuance fee up to the maximum amount
22of 2% of the amount of the credits issued by the certificate
23may be collected from the applicant to administer the Act. If
24collected, this issuance fee shall be directed to the Division
25Historic Property Administrative Fund or other such fund as
26appropriate for use of the Division in the administration of

 

 

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1the Historic Preservation Tax Credit Program. The taxpayer must
2attach the certificate or legal documentation of her or his
3proportional share of the certificate to the tax return on
4which the credits are to be claimed. The tax credit under this
5Section may not reduce the taxpayer's liability to less than
6zero. If the amount of the credit exceeds the tax liability for
7the year, the excess credit may be carried forward and applied
8to the tax liability of the 10 taxable years following the
9excess credit year.
10    (d) If the taxpayer is (i) a corporation having an election
11in effect under Subchapter S of the federal Internal Revenue
12Code, (ii) a partnership, or (iii) a limited liability company,
13the credit provided under this Act may be claimed by the
14shareholders of the corporation, the partners of the
15partnership, or the members of the limited liability company in
16the same manner as those shareholders, partners, or members
17account for their proportionate shares of the income or losses
18of the corporation, partnership, or limited liability company,
19or as provided in the bylaws or other executed agreement of the
20corporation, partnership, or limited liability company.
21Credits granted to a partnership, a limited liability company
22taxed as a partnership, or other multiple owners of property
23shall be passed through to the partners, members, or owners
24respectively on a pro rata basis or pursuant to an executed
25agreement among the partners, members, or owners documenting
26any alternate distribution method.

 

 

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1    (e) If a recapture event occurs during the recapture period
2with respect to a qualified historic structure, then for any
3taxable year in which the credits are allowed as specified in
4this Act, the tax under the applicable Section of this Act
5shall be increased by applying the recapture percentage set
6forth below to the tax decrease resulting from the application
7of credits allowed under this Act to the taxable year in
8question.
9    For the purposes of this subsection, the recapture
10percentage shall be determined as follows:
11        (1) if the recapture event occurs within the first year
12    after commencement of the recapture period, then the
13    recapture percentage is 100%;
14        (2) if the recapture event occurs within the second
15    year after commencement of the recapture period, then the
16    recapture percentage is 80%;
17        (3) if the recapture event occurs within the third year
18    after commencement of the recapture period, then the
19    recapture percentage is 60%;
20        (4) if the recapture event occurs within the fourth
21    year after commencement of the recapture period, then the
22    recapture percentage is 40%; and
23        (5) if the recapture event occurs within the fifth year
24    after commencement of the recapture period, then the
25    recapture percentage is 20%.
26    In the case of any recapture event, the carryforwards under

 

 

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1this Act shall be adjusted by reason of such event.
2    (d) The Division may adopt rules to implement this Section
3in addition to the rules expressly authorized herein.
 
4    Section 20. Limitations, reporting, and monitoring.
5    (a) The Division shall award not more than an aggregate of
6$15,000,000 in total annual tax credits pursuant to qualified
7rehabilitation plans for qualified historic structures. The
8Division shall award not more than $3,000,000 in tax credits
9with regard to a single qualified rehabilitation plan. In
10awarding tax credits under this Act, the Division must
11prioritize projects that meet one or more of the following:
12        (1) the qualified historic structure is located in a
13    county that borders a State with a historic property
14    rehabilitation credit;
15        (2) the qualified historic structure was previously
16    owned by a federal, state, or local governmental entity;
17        (3) the qualified historic structure is located in a
18    census tract that has a median family income at or below
19    the State median family income; data from the most recent
20    5-year estimate from the American Community Survey (ACS),
21    published by the U.S. Census Bureau, shall be used to
22    determine eligibility;
23        (4) the qualified rehabilitation plan includes in the
24    development partnership a Community Development Entity or
25    a low-profit (B Corporation) or not-for-profit

 

 

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1    organization, as defined by Section 501(c)(3) of the
2    Internal Revenue Code; or
3        (5) the qualified historic structure is located in an
4    area declared under an Emergency Declaration or Major
5    Disaster Declaration under the federal Robert T. Stafford
6    Disaster Relief and Emergency Assistance Act.
7     (b) The annual aggregate program allocation of $15,000,000
8set forth in subsection (a) shall be allocated by the Division,
9in such proportion as determined by the Department, on a per
10calendar basis twice in each year that the program is in
11effect, provided that: (i) the amount initially allocated by
12the Division for any one calendar application period shall not
13exceed 65% of the total allowable amount and (ii) any portion
14of the allocated allowable amount remaining unused as of the
15end of any of the second calendar application period of a given
16calendar year shall be rolled into and added to the total
17allocated amount for the next available calendar year. The
18qualified rehabilitation plan must meet a readiness test, as
19defined in the rules created by the Division, in order for the
20Applicant to qualify. Applicants that qualify under this Act
21will be placed in a queue based on the date and time the
22application is received until such time as the application
23period total allowable amount is reached. Applicants must
24reapply for each application period.
25    (c) On or before December 31, 2019, and on or before
26December 31 of each odd-numbered year thereafter through 2023,

 

 

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1subject to appropriation and prior to equal disbursement to the
2Division, moneys in the Historic Property Administrative Fund
3shall be used, beginning at the end of the first fiscal year
4after the effective date of this Act, to hire a qualified third
5party to prepare a biennial report to assess the overall
6effectiveness of this Act from the qualified rehabilitation
7projects under this Act completed in that year and in previous
8years. Baseline data of the metrics in the report shall be
9collected at the initiation of a qualified rehabilitation
10project. The overall economic impact shall include at least:
11        (1) the number of applications, project locations, and
12    proposed use of qualified historic structures;
13        (2) the amount of credits awarded and the number and
14    location of projects receiving credit allocations;
15        (3) the status of ongoing projects and projected
16    qualifying expenditures for ongoing projects;
17        (4) for completed projects, the total amount of
18    qualifying rehabilitation expenditures and non-qualifying
19    expenditures, the number of housing units created and the
20    number of housing units that qualify as affordable, and the
21    total square footage rehabilitated and developed;
22        (5) direct, indirect, and induced economic impacts;
23        (6) temporary, permanent, and construction jobs
24    created; and
25        (7) sales, income, and property tax generation before
26    construction, during construction, and after completion.

 

 

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1    The report to the General Assembly shall be filed with the
2Clerk of the House of Representatives and the Secretary of the
3Senate in electronic form only, in the manner that the Clerk
4and the Secretary shall direct.
5    (d) Any time prior to issuance of a tax credit certificate,
6the Director of the Division, the State Historic Preservation
7Officer, or staff of the Division may, upon reasonable notice
8to the project owner of not less than 3 business days, conduct
9a site visit to the project to inspect and evaluate the
10project.
11    (e) Any time prior to the issuance of a tax credit
12certificate and for a period of 4 years following the effective
13date of a project tax credit certificate, the Director may,
14upon reasonable notice of not less than 30 calendar days,
15request a status report from the Applicant consisting of
16information and updates relevant to the status of the project.
17Status reports shall not be requested more than twice yearly.
18    (f) In order to demonstrate sufficient evidence of
19reviewable progress within 12 months after the date the
20Applicant received notification of approval from the Division,
21the Applicant shall provide all of the following:
22        (1) a viable financial plan which demonstrates by way
23    of an executed agreement that all financing has been
24    secured for the project; such financing shall include, but
25    not be limited to, equity investment as demonstrated by
26    letters of commitment from the owner of the property,

 

 

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1    investment partners, and equity investors;
2        (2) final construction drawings or approved building
3    permits that demonstrate the complete rehabilitation of
4    the full scope of the application; and
5        (3) all historic approvals, including all federal and
6    State rehabilitation documents required by the Division.
7    The Director shall review the submitted evidence and may
8request additional documentation from the Applicant if
9necessary. The Applicant will have 30 calendar days to provide
10the information requested, otherwise the approval may be
11rescinded at the discretion of the Director.
12    (g) In order to demonstrate sufficient evidence of
13reviewable progress within 18 months after the date the
14application received notification of approval from the
15Division, the Applicant is required to provide detailed
16evidence that the Applicant has secured and closed on financing
17for the complete scope of rehabilitation for the project. To
18demonstrate evidence that the Applicant has secured and closed
19on financing, the Applicant will need to provide signed and
20processed loan agreements, bank financing documents or other
21legal and contractual evidence to demonstrate that adequate
22financing is available to complete the project. The Director
23shall review the submitted evidence and may request additional
24documentation from the Applicant if necessary. The Applicant
25will have 30 calendar days to provide the information
26requested, otherwise the approval may be rescinded at the

 

 

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1discretion of the Director.
2    If the Applicant fails to document reviewable progress
3within 18 months of approval, the Director may notify the
4Applicant that the application is rescinded. However, should
5financing and construction be imminent, the Director may elect
6to grant the Applicant no more than 5 months to close on
7financing and commence construction. If the Applicant fails to
8meet these conditions in the required timeframe, the Director
9shall notify the Applicant that the application is rescinded.
10Any such rescinded allocation shall be added to the aggregate
11amount of credits available for allocation for the year in
12which the forfeiture occurred.
13    The amount of the qualified expenditures identified in the
14Applicant's certification of completion and reflected on the
15Historic Preservation Tax Credit certificate issued by the
16Director is subject to inspection, examination, and audit by
17the Department of Revenue.
18    The Applicant shall establish and maintain for a period of
194 years following the effective date on a project tax credit
20certificate such records as required by the Director. Such
21records include, but are not limited to, records documenting
22project expenditures and compliance with the U.S. Secretary of
23the Interior's Standards. The Applicant shall make such records
24available for review and verification by the Director, the
25State Historic Preservation Officer, the Department of
26Revenue, or appropriate staff, as well as other appropriate

 

 

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1State agencies. In the event the Director determines an
2Applicant has submitted an annual report containing erroneous
3information or data not supported by records established and
4maintained under this Act, the Director may, after providing
5notice, require the Applicant to resubmit corrected reports.
 
6    Section 25. Powers. The Division shall adopt rules for the
7administration of this Act. The Division may enter into an
8intergovernmental agreement with the Department of Commerce
9and Economic Opportunity, the Department of Revenue, or both,
10for the administration of this Act. Such intergovernmental
11agreement may allow for the distribution of all or a portion of
12the issuance fee imposed under Section 10 to the Department of
13Commerce and Economic Opportunity or the Department of Revenue,
14as applicable.
 
15    Section 900. The Illinois Income Tax Act is amended by
16changing Section 221 and by adding Section 227 as follows:
 
17    (35 ILCS 5/221)
18    Sec. 221. Rehabilitation costs; qualified historic
19properties; River Edge Redevelopment Zone.
20    (a) For taxable years that begin beginning on or after
21January 1, 2012 and begin ending prior to January 1, 2018
22January 1, 2022, there shall be allowed a tax credit against
23the tax imposed by subsections (a) and (b) of Section 201 of

 

 

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1this Act in an amount equal to 25% of qualified expenditures
2incurred by a qualified taxpayer during the taxable year in the
3restoration and preservation of a qualified historic structure
4located in a River Edge Redevelopment Zone pursuant to a
5qualified rehabilitation plan, provided that the total amount
6of such expenditures (i) must equal $5,000 or more and (ii)
7must exceed 50% of the purchase price of the property.
8    (a-1) For taxable years that begin on or after January 1,
92018 and end prior to January 1, 2022, there shall be allowed a
10tax credit against the tax imposed by subsections (a) and (b)
11of Section 201 of this Act in an aggregate amount equal to 25%
12of qualified expenditures incurred by a qualified taxpayer in
13the restoration and preservation of a qualified historic
14structure located in a River Edge Redevelopment Zone pursuant
15to a qualified rehabilitation plan, provided that the total
16amount of such expenditures must (i) equal $5,000 or more and
17(ii) exceed the adjusted basis of the qualified historic
18structure on the first day the qualified rehabilitation plan
19begins. For any rehabilitation project, regardless of duration
20or number of phases, the project's compliance with the
21foregoing provisions (i) and (ii) shall be determined based on
22the aggregate amount of qualified expenditures for the entire
23project and may include expenditures incurred under subsection
24(a), this subsection, or both subsection (a) and this
25subsection. If the qualified rehabilitation plan spans
26multiple years, the aggregate credit for the entire project

 

 

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1shall be allowed in the last taxable year, except for phased
2rehabilitation projects, which may receive credits upon
3completion of each phase. Before obtaining the first phased
4credit: (A) the total amount of such expenditures must meet the
5requirements of provisions (i) and (ii) of this subsection; (B)
6the rehabilitated portion of the qualified historic structure
7must be placed in service; and (C) the requirements of
8subsection (b) must be met.
9    (b) To obtain a tax credit pursuant to this Section, the
10taxpayer must apply with the Department of Natural Resources
11Commerce and Economic Opportunity. The Department of Natural
12Resources Commerce and Economic Opportunity, in consultation
13with the Historic Preservation Agency, shall determine the
14amount of eligible rehabilitation costs and expenses within 45
15days of receipt of a complete application. The taxpayer must
16submit a certification of costs prepared by an independent
17certified public accountant that certifies (i) the project
18expenses, (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

 

 

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1preparation of such certification. The Department of Natural
2Resources and the National Park Service Historic Preservation
3Agency shall determine whether the rehabilitation is
4consistent with the United States Secretary of the Interior's
5Standards for Rehabilitation the standards of the Secretary of
6the United States Department of the Interior for
7rehabilitation.
8    (b-1) Upon completion and review of the project and
9approval of the complete application, the Department of Natural
10Resources Commerce and Economic Opportunity shall issue a
11single certificate in the amount of the eligible credits equal
12to 25% of qualified expenditures incurred during the eligible
13taxable years, as defined in subsections (a) and (a-1),
14excepting any credits awarded under subsection (a) prior to the
15effective date of this amendatory Act of the 100th General
16Assembly and any phased credits issued prior to the eligible
17taxable year under subsection (a-1). At the time the
18certificate is issued, an issuance fee up to the maximum amount
19of 2% of the amount of the credits issued by the certificate
20may be collected from the applicant to administer the
21provisions of this Section. If collected, this issuance fee
22shall be deposited into the Historic Property Administrative
23Fund, a special fund created in the State treasury. Subject to
24appropriation, moneys in the Historic Property Administrative
25Fund shall be provided to the Department of Natural Resources
26as reimbursement evenly divided between the Department of

 

 

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1Commerce and Economic Opportunity and the Historic
2Preservation Agency to reimburse the Department of Commerce and
3Economic Opportunity and the Historic Preservation Agency for
4the costs associated with administering this Section. The
5taxpayer must attach the certificate to the tax return on which
6the credits are to be claimed. The Department of Commerce and
7Economic Opportunity may adopt rules to implement this Section.
8    (c) The taxpayer must attach the certificate to the tax
9return on which the credits are to be claimed. The tax credit
10under this Section may not reduce the taxpayer's liability to
11less than zero. If the amount of the credit exceeds the tax
12liability for the year, the excess credit may be carried
13forward and applied to the tax liability of the 5 taxable years
14following the excess credit year.
15    (c-1) Subject to appropriation, moneys in the Historic
16Property Administrative Fund shall be used, on a biennial basis
17beginning at the end of the second fiscal year after the
18effective date of this amendatory Act of the 100th General
19Assembly, to hire a qualified third party to prepare a biennial
20report to assess the overall economic impact to the State from
21the qualified rehabilitation projects under this Section
22completed in that year and in previous years. The overall
23economic impact shall include at least: (1) the direct and
24indirect or induced economic impacts of completed projects; (2)
25temporary, permanent, and construction jobs created; (3)
26sales, income, and property tax generation before, during

 

 

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1construction, and after completion; and (4) indirect
2neighborhood impact after completion. The report shall be
3submitted to the Governor and the General Assembly. The report
4to the General Assembly shall be filed with the Clerk of the
5House of Representatives and the Secretary of the Senate in
6electronic form only, in the manner that the Clerk and the
7Secretary shall direct.
8    (c-2) The Department of Natural Resources may adopt rules
9to implement this Section in addition to the rules expressly
10authorized in this Section.
11    (d) As used in this Section, the following terms have the
12following meanings.
13    "Phased rehabilitation" means a project that is completed
14in phases, as defined under Section 47 of the federal Internal
15Revenue Code and pursuant to National Park Service regulations
16at 36 C.F.R. 67.
17    "Placed in service" means the date when the property is
18placed in a condition or state of readiness and availability
19for a specifically assigned function as defined under Section
2047 of the federal Internal Revenue Code and federal Treasury
21Regulation Sections 1.46 and 1.48.
22    "Qualified expenditure" means all the costs and expenses
23defined as qualified rehabilitation expenditures under Section
2447 of the federal Internal Revenue Code that were incurred in
25connection with a qualified historic structure.
26    "Qualified historic structure" means a certified historic

 

 

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1structure as defined under Section 47(c)(3) of the federal
2Internal Revenue Code.
3    "Qualified rehabilitation plan" means a project that is
4approved by the Department of Natural Resources and the
5National Park Service Historic Preservation Agency as being
6consistent with the United States Secretary of the Interior's
7Standards for Rehabilitation standards in effect on the
8effective date of this amendatory Act of the 97th General
9Assembly for rehabilitation as adopted by the federal Secretary
10of the Interior.
11    "Qualified taxpayer" means the owner of the qualified
12historic structure or any other person who qualifies for the
13federal rehabilitation credit allowed by Section 47 of the
14federal Internal Revenue Code with respect to that qualified
15historic structure. Partners, shareholders of subchapter S
16corporations, and owners of limited liability companies (if the
17limited liability company is treated as a partnership for
18purposes of federal and State income taxation) are entitled to
19a credit under this Section to be determined in accordance with
20the determination of income and distributive share of income
21under Sections 702 and 703 and subchapter S of the Internal
22Revenue Code, provided that credits granted to a partnership, a
23limited liability company taxed as a partnership, or other
24multiple owners of property shall be passed through to the
25partners, members, or owners respectively on a pro rata basis
26or pursuant to an executed agreement among the partners,

 

 

SB3527 Enrolled- 22 -LRB100 20468 HLH 35824 b

1members, or owners documenting any alternate distribution
2method.
3(Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)
 
4    (35 ILCS 5/227 new)
5    Sec. 227. Historic preservation credit. For tax years
6beginning on or after January 1, 2019 and ending on or before
7December 31, 2023, a taxpayer who qualifies for a credit under
8the Historic Preservation Tax Credit Act is entitled to a
9credit against the taxes imposed under subsections (a) and (b)
10of Section 201 of this Act as provided in that Act. If the
11taxpayer is a partnership or Subchapter S corporation, the
12credit shall be allowed to the partners or shareholders in
13accordance with the determination of income and distributive
14share of income under Sections 702 and 704 and Subchapter S of
15the Internal Revenue Code. If the amount of any tax credit
16awarded under this Section exceeds the qualified taxpayer's
17income tax liability for the year in which the qualified
18rehabilitation plan was placed in service, the excess amount
19may be carried forward as provided in the Historic Preservation
20Tax Credit Act.