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91_HB3492
LRB9112566SMdv
1 AN ACT in relation to taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 adding Section 214 as follows:
6 (35 ILCS 5/214 new)
7 Sec. 214. Affordable housing assistance tax credit.
8 (a) As used in this Section, unless the context clearly
9 requires otherwise:
10 "Affordable housing assistance expenditure" means money,
11 real or personal property, or a professional service that is
12 donated to a not-for-profit organization that: (i) is
13 organized under the laws of this State for the purpose of
14 constructing or rehabilitating affordable housing units in
15 this State; (ii) has been issued a ruling from the Internal
16 Revenue Service of the United States Department of the
17 Treasury that the organization is exempt from income taxation
18 under the provisions of the Internal Revenue Code; and (iii)
19 has been designated by the Illinois Housing Development
20 Authority as an organization qualified to receive donations
21 that are eligible for a tax credit under this Section.
22 "Affordable housing unit" means a residential unit
23 occupied by persons and families whose income does not exceed
24 50% of the median family income for the geographic area in
25 which the residential unit is located, or the median family
26 income for the State of Illinois, whichever is higher.
27 "Geographic area" means the metropolitan area or county
28 designated as an area by the federal Department of Housing
29 and Urban Development under Section 8 of the United States
30 Housing Act of 1937, as amended, for purposes of determining
31 fair market rental rates.
-2- LRB9112566SMdv
1 "Median income" means those incomes that are determined
2 by the federal Department of Housing and Urban Development
3 guidelines and adjusted for family size.
4 (b) For taxable years 2000 and thereafter, a taxpayer
5 shall be allowed a credit against the tax imposed by
6 subsections (a) and (b) of Section 201 for contributing to
7 the development of affordable housing in this State. The
8 credit allowed against the tax imposed by subsections (a) and
9 (b) of Section 201, to be termed the "affordable housing
10 assistance tax credit", shall be equal to 55% of the value of
11 the taxpayer's affordable housing assistance expenditures.
12 If the amount of the credit exceeds the tax liability for the
13 year, the excess may be carried forward and applied to the
14 tax liability of the 10 taxable years following the excess
15 credit year. The tax credit shall be applied to the earliest
16 year for which there is a tax liability. If there are
17 credits for more than one year that are available to offset a
18 liability, the earlier credit shall be applied first.
19 (c) The taxpayer claiming the credit provided by this
20 Section shall maintain and record such information as the
21 Department may require by regulation regarding the affordable
22 housing assistance expenditures for which the credit is
23 claimed.
24 (d) The Illinois Housing Development Authority shall
25 promulgate rules and regulations establishing criteria for
26 designating not-for-profit organizations that are qualified
27 to receive donations that are eligible for a tax credit under
28 this Section. The criteria shall require that designated
29 not-for-profit organizations utilize affordable housing
30 assistance expenditures solely for costs associated with
31 constructing or rehabilitating affordable housing units in
32 this State.
33 (e) The provisions of this Section are exempt from the
34 provisions of Section 250.
-3- LRB9112566SMdv
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.