102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2444
 
Introduced 2/26/2021, by Sen. Mattie Hunter
 
SYNOPSIS AS INTRODUCED:



  
35 ILCS 5/214

 Amends the Illinois Income Tax Act. Provides that the credit for affordable housing donations sunsets on December 31, 2026 (currently, December 31, 2021). Effective immediately.



LRB102 04120 HLH 14137 b


FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


SB2444LRB102 04120 HLH 14137 b



1 AN ACT concerning revenue.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Income Tax Act is amended by 
5changing Section 214 as follows:




6 (35 ILCS 5/214)



7 Sec. 214. Tax credit for affordable housing donations. 

8 (a) Beginning with taxable years ending on or after 
9December 31, 2001 and
until the taxable year ending on 
10December 31, 2026 December 31, 2021, a taxpayer who makes a

11donation under Section 7.28 of the Illinois Housing 
12Development Act is entitled to a credit
against the tax 
13imposed by subsections (a) and (b) of Section 201 in an amount

14equal
to 50% of the value of the donation. Partners, 
15shareholders of subchapter S
corporations, and owners of 
16limited liability companies (if the limited
liability company 
17is treated as a partnership for purposes of federal and State

18income
taxation) are entitled to a credit under this Section 
19to be determined in
accordance with the determination of 
20income and distributive share of income
under Sections 702 and 
21703 and subchapter S of the Internal Revenue Code.
Persons or 
22entities not subject to the tax imposed by subsections (a) and 
23(b)
of Section 201 and who make a donation under Section 7.28 
 
 
SB2444- 2 -LRB102 04120 HLH 14137 b


1of the Illinois
Housing Development Act are entitled to a 
2credit as described in this
subsection and may transfer that 
3credit as described in subsection (c).

4 (b) If the amount of the credit exceeds the tax liability 
5for the year, the
excess may be carried forward and applied to 
6the tax liability of the 5 taxable
years following the excess 
7credit year. The tax credit shall be applied to the
earliest 
8year for which there is a tax liability. If there are credits 
9for
more than one year that are available to offset a 
10liability, the earlier credit
shall be applied first.

11 (c) The transfer of the tax credit allowed under this 
12Section may be made
(i) to the purchaser of land that has been 
13designated solely for affordable
housing projects in 
14accordance with the Illinois Housing Development Act or
(ii) 
15to another donor who has also made a donation in accordance 
16with Section 7.28 of the
Illinois Housing
Development Act.

17 (d) A taxpayer claiming the credit provided by this 
18Section must maintain
and record any information that the 
19Department may require by regulation
regarding the project for 
20which the credit is claimed.
When
claiming the credit provided 
21by this Section, the taxpayer must provide
information 
22regarding the taxpayer's donation to the project under the 
23Illinois Housing Development Act.

24(Source: P.A. 99-915, eff. 12-20-16.)



25 Section 99. Effective date. This Act takes effect upon 
26becoming law.