SB3658eng 96TH GENERAL ASSEMBLY

SB3658 Engrossed LRB096 20358 HLH 35995 b

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 219 as follows:

(35 ILCS 5/219 new)

Sec. 219. Credit for rehabilitation of vacant buildings.

(a) For taxable years beginning on or after January 1, 2010, each taxpayer who is the owner or tenant of a building that (i) is located in an Enterprise Zone, River Edge Redevelopment Zone, or federally designated Foreign Trade Zone or Sub-Zone, (ii) is at least 20 years old, and (iii) has been unoccupied for a period of 2 consecutive years at any point during the taxable year is allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to (i) 25% of the aggregate qualified expenditures made by the taxpayer during the taxable year for the purpose of rehabilitating the building or (ii) $50,000 per building, whichever is less.

(b) Any taxpayer who is allowed a credit for costs incurred in the rehabilitation of property pursuant to the provisions of Section 38 of the federal Internal Revenue Code of 1986, as amended, shall not be allowed a credit under this Section.

(c) If the amount of the credit exceeds the taxpayer's liability for that year, whether it exceeds the original liability or the liability as later amended, that excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a liability. If there is a credit from more than one tax year that is available to offset a liability, then the earlier credit shall be applied first.

(d) For the purposes of this Section, the following terms have the following meanings:

"Qualified expenditures" means expenditures associated with any exterior improvements, structural improvements, mechanical improvements, or electrical improvements necessary to rehabilitate for commercial or industrial business use a building that meets the requirements established in subsection (a) of this Section.

"Qualified expenditures" also includes, but is not limited to, expenditures associated with demolition, carpentry, sheetrock, plaster, painting, ceilings, fixtures, doors, windows, sprinkler systems installed for fire protection purposes, roofing and flashing, exterior repair, tuckpointing, and cleanup.

"Qualified expenditures" does not include expenditures commonly referred to as soft costs, which include, but are not limited to, costs associated with appraisals; architectural, engineering, and interior design fees; legal, accounting, and realtor fees; loan fees; sales and marketing; closing; building permit, use, and inspection fees; bids; insurance; project signs and phones; temporary power; bid bonds; copying; rent loss during construction; costs included with acquisition; interior furnishings; new additions except as may be required to comply with building and safety codes; excavation; grading; paving; landscaping; and repairs to outbuildings.

"Business" means a for-profit legal entity, including, but not limited to, any sole proprietorship, partnership, corporation, joint venture, association, or cooperative.

(e) Taxpayers claiming the credit allowed by this Section shall furnish the Zone Administrator with copies of any receipts, bills, or other documentation of the qualified expenditures claimed for the purpose of this credit for certification by the Zone Administrator. Any form filed with the Department of Revenue for the purpose of claiming a credit under this Section shall be accompanied by a copy of the certification of qualified expenditures furnished to the taxpayer by the Zone Administrator. The taxpayer shall make available to the Department of Revenue, upon request, copies of any receipts, bills, or other documentation of any qualified expenditures claimed by the taxpayer for the purpose of this credit.

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

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