Public Act 096-0933
 		





SB2534 Enrolled
LRB096 17408 HLH 32761 b





  
    AN ACT concerning State government.
  
 
    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 Pilot Program Act.
 
    Section 5. Definitions. As used in this Section, unless the

context clearly indicates otherwise:
    (a) "Agency" means the Historic Preservation Agency.
    (b) "Department" means the Department of Commerce and 
Economic Opportunity.
    (c) "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.
    (d) "Qualified historic structure" means a hotel  that is 
located in the City of Peoria and that  is defined as a 
certified historic structure under Section 47 (c)(3) of the 
federal Internal Revenue Code.
    (e) "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.
    (f) "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 15. Allowable credit. To the extent authorized by 
Section 25 of this Act, for taxable years beginning on or after 
January 1, 2010 and ending on or before December 31, 2015, 
there shall be allowed a
tax credit against the tax imposed by 
subsections (a) 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 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 20. 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 
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 tax credits 
pursuant to one qualified rehabilitation plan for one qualified 
historic structure. On or before December 31, 2010 and on or 
before December 31 of each year thereafter through  2016, 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 
promulgate rules and regulations for the administration of this 
Act.
 
    Section 35. The Illinois Income Tax Act is amended  by 
adding Section 219 as follows:
 
    (35 ILCS 5/219 new)
    Sec. 219. Historic preservation credit. For tax years

beginning on or after January 1, 2010 and ending on or before 
December 31, 2015, a taxpayer who qualifies
for a credit under 
the Historic Preservation Tax Credit 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 Pilot Program  
Act. 
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.