Full Text of SB2559 96th General Assembly
SB2559eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Historic Preservation Tax Credit Act. | 6 |
| Section 5. Definitions. As used in this Section, unless the | 7 |
| context clearly indicates otherwise: | 8 |
| (a) "Qualified expenditures" means all the costs and | 9 |
| expenses of exterior and interior rehabilitation and | 10 |
| construction, including all costs relating to adaptive reuse | 11 |
| and parking structures, incurred by a qualified taxpayer in the | 12 |
| restoration and preservation of a qualified historic structure | 13 |
| pursuant to a qualified rehabilitation plan. | 14 |
| (b) "Qualified historic structure" means any building, | 15 |
| regardless of whether the building is income producing, is a | 16 |
| condominium building, or is of any other ownership structure, | 17 |
| that (i) is defined as a certified historic structure under | 18 |
| Section 47 (c)(3) of the federal Internal Revenue Code and is | 19 |
| located in Illinois, (ii) is individually listed on the | 20 |
| Illinois Register of Historic Places, (iii) is located and | 21 |
| contributes to a district listed on the Illinois Register of | 22 |
| Historic Places, (iv) is located and contributes to a district | 23 |
| listed on the register of Illinois Main Street places, or (v) |
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| is located and contributes to a district listed on a local | 2 |
| register of historic places within a home rule county or home | 3 |
| rule municipality. | 4 |
| (c) "Qualified rehabilitation plan" means a project that is | 5 |
| approved by the Illinois Historic Preservation Agency, by a | 6 |
| local historic preservation commission certified by the | 7 |
| Illinois Historic Preservation Agency according to rules | 8 |
| adopted by the Agency, or by a local historic preservation | 9 |
| commission of a home rule county or home rule municipality, as | 10 |
| being consistent with the standards for rehabilitation and | 11 |
| guidelines for rehabilitation of historic buildings as adopted | 12 |
| by the federal Secretary of the Interior and in effect on the | 13 |
| effective date of this Act. | 14 |
| (d) "Qualified taxpayer" means the owner of the qualified | 15 |
| historic structure or any other person who may qualify for the | 16 |
| federal rehabilitation credit allowed by Section 47 of the | 17 |
| federal Internal Revenue Code. If the taxpayer is (i) a | 18 |
| corporation having an election in effect under Subchapter S of | 19 |
| the federal Internal Revenue Code, (ii) a partnership, or (iii) | 20 |
| a limited liability company, the credit provided by this | 21 |
| subsection may be claimed by the shareholders of the | 22 |
| corporation, the partners of the partnership, or the members of | 23 |
| the limited liability company in the same manner as those | 24 |
| shareholders, partners, or members account for their | 25 |
| proportionate shares of the income or losses of the | 26 |
| corporation, partnership, or limited liability company, or as |
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| provided in the bylaws or other executed agreement of the | 2 |
| corporation, partnership, or limited liability company. | 3 |
| Credits granted to a partnership, a limited liability company | 4 |
| taxed as a partnership, or other multiple owners of property | 5 |
| shall be passed through to the partners, members, or owners | 6 |
| respectively on a pro rata basis or pursuant to an executed | 7 |
| agreement among the partners, members, or owners documenting | 8 |
| any alternate distribution method. | 9 |
| Section 10. Allowable credit. For all taxable years | 10 |
| commencing after December 31, 2009, there shall be allowed a | 11 |
| tax credit against the tax imposed by subsections (a) and (b) | 12 |
| of Section 201 of the Illinois Income Tax Act in an amount | 13 |
| equal to 25% of qualified expenditures incurred by a qualified | 14 |
| taxpayer in the restoration and preservation of a qualified | 15 |
| historic structure pursuant to a qualified rehabilitation plan | 16 |
| if the total amount of such expenditures equals $5,000 or more. | 17 |
| If the amount of any tax credit awarded under this Act exceeds | 18 |
| the qualified taxpayer's income tax liability for the year in | 19 |
| which the qualified rehabilitation plan was placed in service, | 20 |
| the excess amount may be carried forward for deduction from the | 21 |
| taxpayer's income tax liability in the next succeeding year or | 22 |
| years until the total amount of the credit has been used, | 23 |
| except that a credit may not be carried forward for deduction | 24 |
| after the tenth taxable year after the taxable year in which | 25 |
| the qualified rehabilitation plan was placed in service. |
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| Section 15. Transfer of credits. Any qualified taxpayer, | 2 |
| referred to in this Section as the assignor, may sell, assign, | 3 |
| convey, or otherwise transfer tax credits allowed and earned | 4 |
| under this Act. The taxpayer acquiring the credits, referred to | 5 |
| in this Section as the assignee, may use the amount of the | 6 |
| acquired credits to offset up to 100% of its income tax | 7 |
| liability for either the taxable year in which the qualified | 8 |
| rehabilitation plan was first placed into service or the | 9 |
| taxable year in which such acquisition was made. Unused credit | 10 |
| amounts claimed by the assignee may be carried forward for up | 11 |
| to 10 years or carried back for up to 3 years, except that all | 12 |
| credits must be claimed within 10 years after the tax year in | 13 |
| which the qualified rehabilitation plan was first placed into | 14 |
| service and may not be carried back to a tax year prior to the | 15 |
| tax year in which the credit was issued. The assignor shall | 16 |
| enter into a written agreement with the assignee establishing | 17 |
| the terms and conditions of the agreement and shall perfect the | 18 |
| transfer by notifying the Illinois Historic Preservation | 19 |
| Agency in writing within 90 calendar days after the effective | 20 |
| date of the transfer and shall provide any information as may | 21 |
| be required by the Agency to administer and carry out the | 22 |
| provisions of this Section. The amount received by the assignor | 23 |
| of such tax credit shall be taxable as capital gains income of | 24 |
| the assignor, and the excess of the value of such credit over | 25 |
| the amount paid by the assignee for such credit shall be |
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| taxable as capital gains income of the assignee. | 2 |
| Section 20. Annual county limit. The cumulative amount | 3 |
| allowable for credits awarded under this Act shall be limited | 4 |
| to a maximum of $25,000,000 per year per county, based on the | 5 |
| location of the approved project. Notwithstanding the 10-year | 6 |
| carry forward period for credits awarded under this Act, if a | 7 |
| credit is disallowed because it exceeds the annual $25,000,000 | 8 |
| cumulative limit per county, the credit shall be allowed in the | 9 |
| next year if, within the limit, the claim period for the credit | 10 |
| is extended by one additional year for each year disallowed as | 11 |
| a result of this Section. Except in cases of bad faith or | 12 |
| fraud, no penalty or interest shall be due as a result of any | 13 |
| credit disallowed by this Section. | 14 |
| Section 25. Biennial report. The Department of Commerce and | 15 |
| Economic Opportunity shall determine, on a biennial basis | 16 |
| beginning at the end of the second fiscal year after the date | 17 |
| this Act takes effect, the overall economic impact to the State | 18 |
| from the rehabilitation of eligible property. | 19 |
| Section 50. The Illinois Income Tax Act is amended by | 20 |
| adding Section 219 as follows: | 21 |
| (35 ILCS 5/219 new) | 22 |
| Sec. 219. Historic preservation credit. For tax years |
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| commencing after December 31, 2009, a taxpayer who qualifies | 2 |
| for a credit under the Historic Preservation Tax Credit Act is | 3 |
| entitled to a credit against the taxes imposed under | 4 |
| subsections (a) and (b) of Section 201 of this Act as provided | 5 |
| in that Act. If the taxpayer is a partnership or Subchapter S | 6 |
| corporation, the credit shall be allowed to the partners or | 7 |
| shareholders in accordance with the determination of income and | 8 |
| distributive share of income under Sections 702 and 704 and | 9 |
| Subchapter S of the Internal Revenue Code. This Section is | 10 |
| exempt from the provisions of Section 250 of this Act.
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| Section 99. Effective date. This Act takes effect upon | 12 |
| becoming law.
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