Public Act 097-0203
 
SB2168 EnrolledLRB097 09058 HLH 49192 b



    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 
and ending prior to January 1, 2017, 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 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. 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 attach the 
certificate to the tax return on which the credits are to be 
claimed. The Department of Commerce and Economic Opportunity 
may adopt rules to implement this Section. 
    (c)  The tax credit under this Section may not reduce the 
taxpayer's liability to less than
zero. 
    (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 
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.  Partners, shareholders of subchapter S 
corporations, and owners of limited liability companies (if the 
limited liability company is treated as  a partnership for 
purposes of federal and State income taxation) are entitled to 
a credit under this Section to be determined in accordance with 
the determination of income and distributive share of income 
under Sections 702 and 703 and subchapter S of the Internal 
Revenue Code, provided that 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:
 
    (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 
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, the Department may certify an additional 
pilot 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 
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, the Department may certify one 
additional pilot 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 
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.