Bill Text: IL HB3582 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit 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. Defines "qualified taxpayer, "qualified historic structure", and "qualified rehabilitation plan". Provides that the credit may be carried forward until the tenth taxable year after the qualified rehabilitation plan was placed in service. Amends the River Edge Redevelopment Zone Act. Provides that, until December 31, 2012, the Department may certify one additional River Edge Redevelopment Zone in the City of Peoria. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3582 Detail]

Download: Illinois-2011-HB3582-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3582 Introduced 2/24/2011, by Rep. Jehan A. Gordon SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.786 new
35 ILCS 5/221 new
65 ILCS 115/10-2
65 ILCS 115/10-5.3
Amends the Illinois Income Tax Act. Creates a credit 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. Defines "qualified taxpayer, "qualified historic structure", and "qualified rehabilitation plan". Provides that the credit may be carried forward until the tenth taxable year after the qualified rehabilitation plan was placed in service. Amends the River Edge Redevelopment Zone Act. Provides that, until December 31, 2012, the Department may certify one additional River Edge Redevelopment Zone in the City of Peoria. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.786 as follows:
(30 ILCS 105/5.786 new)
Sec. 5.786. The Historic Property Administrative Fund.
Section 10. The Illinois Income Tax Act is amended by
adding Section 221 as follows:
(35 ILCS 5/221 new)
Sec. 221. Rehabilitation costs; qualified historic
properties; River Edge Redevelopment Zone.
(a) For taxable years beginning on or after January 1,
2012, 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

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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 no later than 6 months after the effective
date of this amendatory Act of the 97th General Assembly. 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

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attach the certificate to the tax return on which the credits
are to be claimed.
(c) The tax credit under this Section may not reduce the
taxpayer's liability to less than zero. If the amount of any
tax credit awarded under this Section exceeds the qualified
taxpayer's income tax liability for the year in which the
qualified rehabilitation plan was placed in service, the excess
amount may be carried forward for deduction from the taxpayer's
income tax liability in the next succeeding year or years until
the total amount of the credit has been used, except that a
credit may not be carried forward for deduction after the tenth
taxable year after the taxable year in which the qualified
rehabilitation plan was placed in service.
(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

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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. If the taxpayer is (i) a corporation having
an election in effect under Subchapter S of the federal
Internal Revenue Code, (ii) a partnership, or (iii) a limited
liability company, the credit provided under this Act may be
claimed by the shareholders of the corporation, the partners of
the partnership, or the members of the limited liability
company in the same manner as those shareholders, partners, or
members account for their proportionate shares of the income or
losses of the corporation, partnership, or limited liability
company, or as provided in the by-laws or other executed
agreement of the corporation, partnership, or limited
liability company. 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.
Section 15. The River Edge Redevelopment Zone Act is
amended by changing Sections 10-2 and 10-5.3 as follows:

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(65 ILCS 115/10-2)
Sec. 10-2. Findings. The General Assembly finds and
declares that those municipalities adjacent to or surrounding
river areas often lack critical tools to safely revive and
redevelop environmentally-challenged properties that will
stimulate economic revitalization and create jobs in Illinois.
Environmentally-challenged properties adjacent to or
surrounding Illinois rivers are a threat to the health, safety,
and welfare of the people of this State. Many of these
environmentally-challenged properties adjacent to or
surrounding rivers were former industrial areas that now,
subject to appropriate environmental clean-up and remediation,
would be ideal for office, residential, retail, hospitality,
commercial, recreational, warehouse and distribution, and
other economically productive uses. The cost of the cleaning
and remediation of these environmentally-challenged properties
is often the primary obstacle to returning these properties to
a safe and economically productive use.
Cooperative and continuous partnership among the State,
through the Department of Commerce and Economic Opportunity and
the Environmental Protection Agency, municipalities adjacent
to or surrounding rivers, and the private sector is necessary
to appropriately encourage the cost-effective cleaning and
remediation of these environmentally-challenged properties in
order to bring about a safe and economically productive use of

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the properties.
Therefore, it is declared to be the purpose of this Act to
identify and initiate 3 pilot River Edge Redevelopment Zones to
stimulate the safe and cost-effective re-use of
environmentally-challenged properties adjacent to or
surrounding rivers by means of tax incentives or grants. On or
after the effective date of this amendatory Act of the 97th
General Assembly and until December 31, 2012, the Department
may certify an additional River Edge Redevelopment Zone in the
City of Peoria.
(Source: P.A. 94-1021, eff. 7-12-06; 94-1022, eff. 7-12-06.)
(65 ILCS 115/10-5.3)
Sec. 10-5.3. Certification of River Edge Redevelopment
Zones.
(a) Approval of designated River Edge Redevelopment Zones
shall be made by the Department by certification of the
designating ordinance. The Department shall promptly issue a
certificate for each zone upon its approval. The certificate
shall be signed by the Director of the Department, shall make
specific reference to the designating ordinance, which shall be
attached thereto, and shall be filed in the office of the
Secretary of State. A certified copy of the River Edge
Redevelopment Zone Certificate, or a duplicate original
thereof, shall be recorded in the office of the recorder of
deeds of the county in which the River Edge Redevelopment Zone

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lies.
(b) A River Edge Redevelopment Zone shall be effective upon
its certification. The Department shall transmit a copy of the
certification to the Department of Revenue, and to the
designating municipality. Upon certification of a River Edge
Redevelopment Zone, the terms and provisions of the designating
ordinance shall be in effect, and may not be amended or
repealed except in accordance with Section 10-5.4.
(c) A River Edge Redevelopment Zone shall be in effect for
the period stated in the certificate, which shall in no event
exceed 30 calendar years. Zones shall terminate at midnight of
December 31 of the final calendar year of the certified term,
except as provided in Section 10-5.4.
(d) In calendar years 2006 and 2007, the Department may
certify one pilot River Edge Redevelopment Zone in the City of
East St. Louis, one pilot River Edge Redevelopment Zone in the
City of Rockford, and one pilot River Edge Redevelopment Zone
in the City of Aurora.
In calendar year 2009, the Department may certify one pilot
River Edge Redevelopment Zone in the City of Elgin.
On or after the effective date of this amendatory Act of
the 97th General Assembly and until December 31, 2012, the
Department may certify one additional River Edge Redevelopment
Zone in the City of Peoria.
Thereafter the Department may not certify any additional
River Edge Redevelopment Zones, but may amend and rescind

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certifications of existing River Edge Redevelopment Zones in
accordance with Section 10-5.4.
(e) A municipality in which a River Edge Redevelopment Zone
has been certified must submit to the Department, within 60
days after the certification, a plan for encouraging the
participation by minority persons, females, persons with
disabilities, and veterans in the zone. The Department may
assist the municipality in developing and implementing the
plan. The terms "minority person", "female", and "person with a
disability" have the meanings set forth under Section 2 of the
Business Enterprise for Minorities, Females, and Persons with
Disabilities Act. "Veteran" means an Illinois resident who is a
veteran as defined in subsection (h) of Section 1491 of Title
10 of the United States Code.
(Source: P.A. 96-37, eff. 7-13-09.)
Section 99. Effective date. This Act takes effect upon
becoming law.