Public Act 099-0914
 
SB1488 EnrolledLRB099 08763 HLH 28931 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 
changing Section 221 as follows:
 
    (35 ILCS 5/221)
    Sec. 221. Rehabilitation costs; qualified historic 
properties; River Edge Redevelopment Zone.
    (a)  For taxable years beginning on or after January 1, 2012 
and ending prior to January 1, 2018 January 1, 2017, there 
shall be allowed a tax credit against the tax imposed by 
subsections (a) and (b) of Section 201 in an amount equal to 
25% of qualified expenditures incurred by a qualified taxpayer 
during the taxable year in the restoration and preservation of 
a qualified historic structure located in a River Edge 
Redevelopment Zone pursuant to a qualified rehabilitation 
plan, provided that the total amount of such expenditures (i) 
must equal $5,000 or more and (ii) must exceed 50% of the 
purchase price of the property.
    (b)  To obtain a tax credit pursuant to this Section, the 
taxpayer must apply with the Department of Commerce and 
Economic Opportunity. The Department of Commerce and Economic 
Opportunity, in consultation with the Historic Preservation 
Agency, shall determine the amount of eligible rehabilitation 
costs and expenses. The Historic Preservation Agency shall 
determine whether the rehabilitation is consistent with the 
standards of the Secretary of the United States Department of 
the Interior for rehabilitation. Upon completion and review of 
the project, the Department of Commerce and Economic 
Opportunity shall issue a certificate in the amount of the 
eligible credits. At the time the certificate is issued, an 
issuance fee up to the maximum amount of 2% of the amount of 
the credits issued by the certificate may be collected from the 
applicant to administer the provisions of this Section. If 
collected, this issuance fee shall be deposited into the 
Historic Property Administrative Fund, a special fund created 
in the State treasury.  Subject to appropriation, moneys in the 
Historic Property Administrative Fund shall be evenly divided 
between the Department of Commerce and Economic Opportunity and 
the Historic Preservation Agency to reimburse the Department of 
Commerce and Economic Opportunity and the Historic 
Preservation Agency for the costs associated with 
administering this Section. The taxpayer must attach the 
certificate to the tax return on which the credits are to be 
claimed. The Department of Commerce and Economic Opportunity 
may adopt rules to implement this Section. 
    (c)  The tax credit under this Section may not reduce the 
taxpayer's liability to less than
zero. 
    (d)  As used in this Section, the following terms have the 
following meanings.
    "Qualified expenditure" means all the costs and expenses 
defined as qualified rehabilitation expenditures under Section 
47 of the federal Internal Revenue Code that were incurred in 
connection with a qualified historic structure. 
    "Qualified historic structure" means a certified historic 
structure as defined under Section 47 (c)(3) of the federal 
Internal Revenue Code. 
    "Qualified rehabilitation plan" means a project that is 
approved by the Historic Preservation Agency as being 
consistent with the standards in effect on the effective date 
of this amendatory Act of the 97th General Assembly for 
rehabilitation as adopted by the federal Secretary of the 
Interior. 
    "Qualified taxpayer" means the owner of the qualified 
historic structure or any other person who qualifies for the 
federal rehabilitation credit allowed by Section 47 of the 
federal Internal Revenue Code with respect to that qualified 
historic structure.  Partners, shareholders of subchapter S 
corporations, and owners of limited liability companies (if the 
limited liability company is treated as  a partnership for 
purposes of federal and State income taxation) are entitled to 
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, provided that credits granted to  a partnership, a 
limited liability company taxed as a partnership, or other 
multiple owners of property shall be passed through to the 
partners, members, or owners respectively on a pro rata basis 
or pursuant to an executed agreement among the partners, 
members, or owners documenting any alternate distribution 
method. 

(Source: P.A. 97-203, eff. 7-28-11.)
 

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


Effective Date:  12/20/2016