Bill Text: IL HB4703 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Creates the Historic Preservation Tax Credit Supplemental Pilot Program Act. Provides that an income tax credit is granted to an eligible taxpayer who makes expenditures pursuant to a qualified rehabilitation plan for the rehabilitation of a historic structure located in Rock Island County. Provides that the credit is available for taxable years beginning on or after January 1, 2019 and ending on or before December 31, 2029. Provides that the credit is equal to 25% of the amount of the eligible expenditure. Contains provisions concerning eligible expenditures. Provides that eligible taxpayers must apply with the Department of Commerce and Economic Opportunity within 6 months after the effective date of the Act. Provides that the credit may be carried forward for up to 10 years and may be carried back for up to 3 years. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4703 Detail]

Download: Illinois-2017-HB4703-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4703 Introduced , by Rep. Michael Halpin SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 5/227 new
Creates the Historic Preservation Tax Credit Supplemental Pilot Program Act. Provides that an income tax credit is granted to an eligible taxpayer who makes expenditures pursuant to a qualified rehabilitation plan for the rehabilitation of a historic structure located in Rock Island County. Provides that the credit is available for taxable years beginning on or after January 1, 2019 and ending on or before December 31, 2029. Provides that the credit is equal to 25% of the amount of the eligible expenditure. Contains provisions concerning eligible expenditures. Provides that eligible taxpayers must apply with the Department of Commerce and Economic Opportunity within 6 months after the effective date of the Act. Provides that the credit may be carried forward for up to 10 years and may be carried back for up to 3 years. Amends the Illinois Income Tax Act to make conforming changes. 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 1. Short title. This Act may be cited as the
Historic Preservation Tax Credit Supplemental Pilot Program
Act.
Section 5. Definitions. As used in this Act, unless the
context clearly indicates otherwise:
"Agency" means the Historic Preservation Agency.
"Department" means the Department of Commerce and Economic
Opportunity.
"Qualified expenditures" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code which were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means any structure that is
located in Rock Island County and that is defined as a
certified historic structure under Section 47 (c)(3) of the
federal Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Agency as being consistent with the standards
in effect on the effective date of this Act for rehabilitation
as adopted by the federal Secretary of the Interior.

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"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who may qualify for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code. 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 10. Allowable credit. To the extent authorized by
this Act, for taxable years beginning on or after January 1,
2019 and ending on or before December 31, 2029, there shall be
allowed a tax credit against the tax imposed by subsections (a)

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and (b) of Section 201 of the Illinois Income Tax Act 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 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. If the
amount of any tax credit awarded under this Act 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. To
obtain a tax credit pursuant to this Act, an application must
be made to the Department no later than 6 months after the
effective date of this Act. The Department, in consultation
with the Agency, shall determine the amount of eligible
rehabilitation costs and expenses. The 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 shall issue a certificate in the amount of the
eligible credits. At the time the certificate is issued, an

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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 Act. If collected, this issuance
fee shall be evenly divided between the Department and the
Agency. The taxpayer must attach the certificate to the tax
return on which the credits are to be claimed.
Section 15. Transfer of credits. Any qualified taxpayer,
referred to in this Section as the assignor, may sell, assign,
convey, or otherwise transfer tax credits allowed and earned
under this Act. The taxpayer acquiring the credits, referred to
in this Section as the assignee, may use the amount of the
acquired credits to offset up to 100% of its income tax
liability for either the taxable year in which the qualified
rehabilitation plan was first placed into service or the
taxable year in which such acquisition was made. Unused credit
amounts claimed by the assignee may be carried forward for up
to 10 years or carried back for up to 3 years, except that all
credits must be claimed within 10 years after the tax year in
which the qualified rehabilitation plan was first placed into
service and may not be carried back to a tax year prior to the
tax year in which the credit was issued. The assignor shall
enter into a written agreement with the assignee establishing
the terms and conditions of the agreement and shall perfect the
transfer by notifying the Department in writing within 90
calendar days after the effective date of the transfer and

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shall provide any information as may be required by the
Department to administer and carry out the provisions of this
Section. If credits that have been transferred are subsequently
reduced, adjusted, or recaptured, in whole or in part, by the
Department, the Department of Revenue, or any other applicable
government agency, only the original qualified taxpayer that
was awarded the credits, and not any subsequent assignee of the
credits, shall be held liable to repay any amount of such
reduction, adjustment, or recapture of the credits.
Section 25. Pilot program; report. The Department may award
no more than an aggregate of $10,000,000 in total annual tax
credits pursuant to qualified rehabilitation plans for
qualified historic structures. On or before December 31, 2019
and on or before December 31 of each year thereafter through
2029, the Department must submit a report to the General
Assembly evaluating the effectiveness of this Act in
stimulating economic revitalization in the pilot program area.
Section 30. Powers. The Department and the Agency shall
adopt rules for the administration of this Act.
Section 90. The Illinois Income Tax Act is amended by
adding Section 227 as follows:
(35 ILCS 5/227 new)

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Sec. 227. Historic preservation supplemental credit. For
tax years beginning on or after January 1, 2019 and ending on
or before December 31, 2029, a taxpayer who qualifies for a
credit under the Historic Preservation Tax Credit Supplemental
Pilot Program Act is entitled to a credit against the taxes
imposed under subsections (a) and (b) of Section 201 of this
Act as provided in that Act. If the taxpayer is a partnership
or Subchapter S corporation, the credit shall be allowed to the
partners or shareholders in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code.
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 or back as
provided in the Historic Preservation Tax Credit Supplemental
Pilot Program Act.
Section 99. Effective date. This Act takes effect upon
becoming law.