104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2126
 
Introduced 2/7/2025, by Sen. Doris Turner
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/15-41 new
35 ILCS 200/18-184.25 new
    Amends the Property Tax Code. Provides that property that is owned by a faith-based organization or an organization described under Section 501(c)(3) of the Internal Revenue Code of 1986 that is leased for a minimum of 50 years for the purpose of, and is predominantly used for, providing affordable housing for households with a household income of between 20% and 90% of the area median income is exempt from taxation under the Code until (i) the end of the ground lease term or (ii) the first taxable year during which the property is no longer used for affordable housing purposes, whichever occurs first. Provides that taxing districts may abate all or a portion of the property taxes levied on a qualified affordable housing developments.


LRB104 06941 HLH 16978 b

 
 
A BILL FOR
 
SB2126LRB104 06941 HLH 16978 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 Property Tax Code is amended by adding 
5Sections 15-41 and 18-184.25 as follows:
 
6    (35 ILCS 200/15-41 new)
7    Sec. 15-41. Faith-based organizations. Property that is 
8owned by a faith-based organization or an organization 
9described under Section 501(c)(3) of the Internal Revenue Code 
10of 1986 that is leased for a minimum of 50 years for the 
11purpose of, and is predominantly used for, providing 
12affordable housing for households with a household income of 
13between 20% and 90% of the area median income is exempt from 
14taxation under this Code until (i) the end of the ground lease 
15term or (ii) the first taxable year during which the property 
16is no longer used for affordable housing purposes, whichever 
17occurs first.
 
18    (35 ILCS 200/18-184.25 new)
19    Sec. 18-184.25. Affordable housing abatement. Any taxing 
20district, upon a majority vote of its governing authority, 
21may, after the determination of the assessed valuation of its 
22property, order the clerk of that county to abate all or a 
 
 
SB2126- 2 -LRB104 06941 HLH 16978 b

1portion of its taxes on affordable housing developments that 
2are subject to an affordable housing agreement with a unit of 
3local government. If the affordable housing development serves 
4households with a household income of between 70% and 90% of 
5the area median income, then the amount of the abatement may 
6not exceed 80% of the property taxes levied by the taxing 
7district. If the affordable housing development serves 
8households with a household income of between 20% and 69% of 
9the area median income, then the taxing district may abate all 
10of its taxes on the property.