Bill Text: IL SB2912 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for qualified housing developers who incur development costs in the construction of new housing. Sets forth the amount of the credit. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-03 - Rule 3-9(a) / Re-referred to Assignments [SB2912 Detail]

Download: Illinois-2023-SB2912-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2912 Introduced 1/26/2024, by Sen. Rachel Ventura SYNOPSIS AS INTRODUCED:
35 ILCS 5/241 new
5 ILCS 100/5-45.55 new
Amends the Illinois Income Tax Act. Creates an income tax credit for qualified housing developers who incur development costs in the construction of new housing. Sets forth the amount of the credit. Effective immediately.
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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 Illinois Income Tax Act is amended by
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Housing development credit.
(a) For taxable years ending on or after December 31, 2024
and ending on or before December 31, 2029, each qualified
housing developer may apply to the Authority, in the form and
manner prescribed by the Authority, for a credit against the
taxes imposed by subsections (a) and (b) of Section 201 in an
amount equal to (i) 1% of the total development costs incurred
by the qualified housing developer for the construction of new
housing or (ii) 5% of the total development costs incurred by
the qualified housing developer for the construction of
passive housing. The credit may be claimed for the taxable
year during which construction is completed. The total amount
of credits that may be awarded in any given taxable year shall
not exceed $50,000,000. Credits shall be awarded on a
first-come, first-served basis.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of

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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.
(c) If the taxpayer is a partnership or Subchapter S
corporation, the credit is allowed to pass through to the
partners and shareholders as provided in Section 251.
(d) The Authority shall adopt rules to implement and
administer this Section, including rules concerning
applications for the tax credit. A taxpayer claiming the
credit under this Section must maintain and record any
information that the Authority may require regarding the
development project for which the credit is claimed.
(e) As used in this Section:
"Authority" means the Illinois Housing Development
Authority.
"Development costs" means any costs associated with the
construction or rehabilitation of new housing.
"New housing" means single-family housing that has not
been previously occupied for residential use in the 20 years
immediately preceding the taxable year in which the credit is
awarded.
"Passive housing" means new housing that, at the time

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construction is completed:
(1) does not use over 120 kilowatt-hours of energy per
10 square feet of usable living space annually for
heating, cooling, hot water, and domestic electricity.
(2) does not exceed 15 kilowatt-hours of energy per 10
square feet of living space for heating or 10 watts of
energy per 10 square feet at peak demand;
(3) does not have more than 0.6 air changes per hour at
0.00725189 pound-force per square inch of pressure; and
(4) does not exceed 77 degrees Fahrenheit for more
than 10% of the calendar year.
Section 10. The Illinois Administrative Procedure Act is
amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking. To provide for the
expeditious and timely implementation of this amendatory Act
of the 103rd General Assembly, emergency rules implementing
this amendatory Act of the 103rd General Assembly may be
adopted in accordance with Section 5-45 by the Illinois
Housing Development Authority. The adoption of emergency rules
authorized by Section 5-45 and this Section is deemed to be
necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.

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