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| Public Act 096-1276 | ||||
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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 5. The Illinois Income Tax Act is amended by | ||||
changing Section 214 as follows:
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(35 ILCS 5/214)
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Sec. 214. Tax credit for affordable housing donations.
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(a) Beginning with taxable years ending on or after | ||||
December 31, 2001 and
until the taxable year ending on December | ||||
31, 2016 2011, a taxpayer who makes a
donation under Section | ||||
7.28 of the Illinois Housing Development Act is entitled to a | ||||
credit
against the tax imposed by subsections (a) and (b) of | ||||
Section 201 in an amount
equal
to 50% of the value of the | ||||
donation. Partners, shareholders of subchapter S
corporations, | ||||
and owners of limited liability companies (if the limited
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liability company is treated as a partnership for purposes of | ||||
federal and State
income
taxation) are entitled a credit under | ||||
this Section to be determined in
accordance with the | ||||
determination of income and distributive share of income
under | ||||
Sections 702 and 703 and subchapter S of the Internal Revenue | ||||
Code.
Persons or entities not subject to the tax imposed by | ||||
subsections (a) and (b)
of Section 201 and who make a donation | ||||
under Section 7.28 of the Illinois
Housing Development Act are | ||||
entitled to a credit as described in this
subsection and may | ||
transfer that credit as described in subsection (c).
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(b) If the amount of the credit exceeds the tax liability | ||
for the year, the
excess may be carried forward and applied to | ||
the tax liability of the 5 taxable
years following the excess | ||
credit year. The tax credit shall be applied to the
earliest | ||
year for which there is a tax liability. If there are credits | ||
for
more than one year that are available to offset a | ||
liability, the earlier credit
shall be applied first.
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(c) The transfer of the tax credit allowed under this | ||
Section may be made
(i) to the purchaser of land that has been | ||
designated solely for affordable
housing projects in | ||
accordance with the Illinois Housing Development Act or
(ii) to | ||
another donor who has also made a donation in accordance with | ||
Section 7.28 of the
Illinois Housing
Development Act.
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(d) A taxpayer claiming the credit provided by this Section | ||
must maintain
and record any information that the Department | ||
may require by regulation
regarding the project for which the | ||
credit is claimed.
When
claiming the credit provided by this | ||
Section, the taxpayer must provide
information regarding the | ||
taxpayer's donation to the project under the Illinois Housing | ||
Development Act.
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(Source: P.A. 93-369, eff. 7-24-03; 94-46, eff. 6-17-05.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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