Illinois General Assembly - Full Text of SB1783
Illinois General Assembly

Previous General Assemblies

Full Text of SB1783  100th General Assembly


Sen. Steve Stadelman

Filed: 4/6/2017





10000SB1783sam001LRB100 10546 HLH 25000 a


2    AMENDMENT NO. ______. Amend Senate Bill 1783 by replacing
3everything after the enacting clause with the following:
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 beginning on or after January 1, 2012
10and ending prior to January 1, 2022 January 1, 2018, there
11shall be allowed a tax credit against the tax imposed by
12subsections (a) and (b) of Section 201 in an amount equal to
1325% of qualified expenditures incurred by a qualified taxpayer
14during the taxable year in the restoration and preservation of
15a qualified historic structure located in a River Edge
16Redevelopment Zone pursuant to a qualified rehabilitation



10000SB1783sam001- 2 -LRB100 10546 HLH 25000 a

1plan, provided that the total amount of such expenditures (i)
2must equal $5,000 or more and (ii) must exceed 50% of the
3purchase price of the property.
4    (b) To obtain a tax credit pursuant to this Section, the
5taxpayer must apply with the Department of Commerce and
6Economic Opportunity. The Department of Commerce and Economic
7Opportunity, in consultation with the Historic Preservation
8Agency, shall determine the amount of eligible rehabilitation
9costs and expenses. The Historic Preservation Agency shall
10determine whether the rehabilitation is consistent with the
11standards of the Secretary of the United States Department of
12the Interior for rehabilitation. Upon completion and review of
13the project, the Department of Commerce and Economic
14Opportunity shall issue a certificate in the amount of the
15eligible credits. At the time the certificate is issued, an
16issuance fee up to the maximum amount of 2% of the amount of
17the credits issued by the certificate may be collected from the
18applicant to administer the provisions of this Section. If
19collected, this issuance fee shall be deposited into the
20Historic Property Administrative Fund, a special fund created
21in the State treasury. Subject to appropriation, moneys in the
22Historic Property Administrative Fund shall be evenly divided
23between the Department of Commerce and Economic Opportunity and
24the Historic Preservation Agency to reimburse the Department of
25Commerce and Economic Opportunity and the Historic
26Preservation Agency for the costs associated with



10000SB1783sam001- 3 -LRB100 10546 HLH 25000 a

1administering this Section. The taxpayer must attach the
2certificate to the tax return on which the credits are to be
3claimed. The Department of Commerce and Economic Opportunity
4may adopt rules to implement this Section.
5    (c) The tax credit under this Section may not reduce the
6taxpayer's liability to less than zero.
7    (d) As used in this Section, the following terms have the
8following meanings.
9    "Qualified expenditure" means all the costs and expenses
10defined as qualified rehabilitation expenditures under Section
1147 of the federal Internal Revenue Code that were incurred in
12connection with a qualified historic structure.
13    "Qualified historic structure" means a certified historic
14structure as defined under Section 47 (c)(3) of the federal
15Internal Revenue Code.
16    "Qualified rehabilitation plan" means a project that is
17approved by the Historic Preservation Agency as being
18consistent with the standards in effect on the effective date
19of this amendatory Act of the 97th General Assembly for
20rehabilitation as adopted by the federal Secretary of the
22    "Qualified taxpayer" means the owner of the qualified
23historic structure or any other person who qualifies for the
24federal rehabilitation credit allowed by Section 47 of the
25federal Internal Revenue Code with respect to that qualified
26historic structure. Partners, shareholders of subchapter S



10000SB1783sam001- 4 -LRB100 10546 HLH 25000 a

1corporations, and owners of limited liability companies (if the
2limited liability company is treated as a partnership for
3purposes of federal and State income taxation) are entitled to
4a credit under this Section to be determined in accordance with
5the determination of income and distributive share of income
6under Sections 702 and 703 and subchapter S of the Internal
7Revenue Code, provided that credits granted to a partnership, a
8limited liability company taxed as a partnership, or other
9multiple owners of property shall be passed through to the
10partners, members, or owners respectively on a pro rata basis
11or pursuant to an executed agreement among the partners,
12members, or owners documenting any alternate distribution
14(Source: P.A. 99-914, eff. 12-20-16.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".