Illinois 2023-2024 Regular Session

Illinois House Bill HB2044 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2044 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056 Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately. LRB103 24915 HLH 51249 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2044 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056 New Act 35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056 Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately. LRB103 24915 HLH 51249 b LRB103 24915 HLH 51249 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2044 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056 New Act 35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056
4	4	New Act
5	5	35 ILCS 5/234 new
6	6	215 ILCS 5/409 from Ch. 73, par. 1021
7	7	215 ILCS 5/444 from Ch. 73, par. 1056
8	8	Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.
9	9	LRB103 24915 HLH 51249 b LRB103 24915 HLH 51249 b
10	10	LRB103 24915 HLH 51249 b
11	11	A BILL FOR
12	12	HB2044LRB103 24915 HLH 51249 b HB2044 LRB103 24915 HLH 51249 b
13	13	HB2044 LRB103 24915 HLH 51249 b
14	14	1 AN ACT concerning revenue.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 1. Short title. This Act may be cited as the Build
18	18	5 Illinois Homes Tax Credit Act.
19	19	6 Section 5. Definitions. As used in this Act, unless the
20	20	7 context clearly requires otherwise:
21	21	8 "Allocation" means an award of tax credits to the owner of
22	22	9 a qualified development in any allocation round, to be claimed
23	23	10 ratably annually over the credit period.
24	24	11 "Allocation round" means all allocations by the Authority
25	25	12 of credits under this Act to qualified developments in any
26	26	13 calendar year.
27	27	14 "Allocation schedule certification" means the
28	28	15 certification issued by the owner of a qualified development
29	29	16 or its designee pursuant to subsection (d) of Section 10 of
30	30	17 this Act.
31	31	18 "Authority" means:
32	32	19 (1) the Illinois Housing Development Authority; or
33	33	20 (2) the City of Chicago Department of Housing.
34	34	21 "Credit" means the credit allowed pursuant to this Act.
35	35	22 "Credit period" means the period of 10 taxable years
36	36	23 beginning with the taxable year in which a qualified
37	37
38	38
39	39
40	40	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2044 Introduced , by Rep. Dagmara Avelar SYNOPSIS AS INTRODUCED:
41	41	New Act35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056 New Act 35 ILCS 5/234 new 215 ILCS 5/409 from Ch. 73, par. 1021 215 ILCS 5/444 from Ch. 73, par. 1056
42	42	New Act
43	43	35 ILCS 5/234 new
44	44	215 ILCS 5/409 from Ch. 73, par. 1021
45	45	215 ILCS 5/444 from Ch. 73, par. 1056
46	46	Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.
47	47	LRB103 24915 HLH 51249 b LRB103 24915 HLH 51249 b
48	48	LRB103 24915 HLH 51249 b
49	49	A BILL FOR
50	50
51	51
52	52
53	53
54	54
55	55	New Act
56	56	35 ILCS 5/234 new
57	57	215 ILCS 5/409 from Ch. 73, par. 1021
58	58	215 ILCS 5/444 from Ch. 73, par. 1056
59	59
60	60
61	61
62	62	LRB103 24915 HLH 51249 b
63	63
64	64
65	65
66	66
67	67
68	68
69	69
70	70
71	71
72	72	HB2044 LRB103 24915 HLH 51249 b
73	73
74	74
75	75	HB2044- 2 -LRB103 24915 HLH 51249 b HB2044 - 2 - LRB103 24915 HLH 51249 b
76	76	HB2044 - 2 - LRB103 24915 HLH 51249 b
77	77	1 development is placed in service. No credit period may include
78	78	2 a taxable year beginning prior to January 1, 2024. If a
79	79	3 qualified development consists of more than one building, the
80	80	4 qualified development is deemed to be placed in service in the
81	81	5 taxable year during which the last building of the qualified
82	82	6 development is placed in service.
83	83	7 "Department" means the Department of Revenue.
84	84	8 "Federal tax credit" means the federal low-income housing
85	85	9 tax credit provided by Section 42 of the federal Internal
86	86	10 Revenue Code, including federal low-income housing tax credits
87	87	11 issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
88	88	12 "Qualified allocation plan" means the qualified allocation
89	89	13 plan adopted by the Authority pursuant to Section 42(m) of the
90	90	14 federal Internal Revenue Code of 1986.
91	91	15 "Qualified basis" means the qualified basis of the
92	92	16 qualified development as determined pursuant to Section 42 of
93	93	17 the federal Internal Revenue Code of 1986.
94	94	18 "Qualified development" means a qualified low-income
95	95	19 housing project, as that term is defined in Section 42 of the
96	96	20 federal Internal Revenue Code of 1986, that is located in the
97	97	21 State and is determined to be eligible for the federal tax
98	98	22 credit set forth in Section 42 of the Internal Revenue Code.
99	99	23 "Qualified taxpayer" means an individual, person, firm,
100	100	24 corporation, or other entity that owns an interest, direct or
101	101	25 indirect, in a qualified development and is subject to any or
102	102	26 all of the following: (i) the taxes imposed by the Illinois
103	103
104	104
105	105
106	106
107	107
108	108	HB2044 - 2 - LRB103 24915 HLH 51249 b
109	109
110	110
111	111	HB2044- 3 -LRB103 24915 HLH 51249 b HB2044 - 3 - LRB103 24915 HLH 51249 b
112	112	HB2044 - 3 - LRB103 24915 HLH 51249 b
113	113	1 Income Tax Act; or (ii) any privilege tax or retaliatory tax,
114	114	2 penalty, fee, charge or payment imposed by the Illinois
115	115	3 Insurance Code.
116	116	4 "State credit eligibility statement" means a statement
117	117	5 issued by the Authority under Section 7.
118	118	6 "State tax return" means the income tax return filed with
119	119	7 the Department or the privilege and retaliatory tax return
120	120	8 filed with the Department of Insurance, as applicable.
121	121	9 Section 7. State credit eligibility statements. A State
122	122	10 credit eligibility statement shall be issued by the Authority
123	123	11 with respect to each building within the qualified development
124	124	12 following construction or rehabilitation of the qualified
125	125	13 development certifying that each such building within that
126	126	14 qualified development qualifies for the credit and specifying:
127	127	15 (1) the calendar year in which the last building of
128	128	16 the qualified development was placed in service;
129	129	17 (2) the amount of the credit allowed for each year of
130	130	18 the credit period;
131	131	19 (3) the maximum qualified basis of the qualified
132	132	20 development taken into account in determining the annual
133	133	21 credit amount; and
134	134	22 (4) a unique identification number for each State
135	135	23 credit eligibility statement issued.
136	136	24 The State credit eligibility statement shall be issued by
137	137	25 the Authority simultaneously with IRS Form 8609 if the
138	138
139	139
140	140
141	141
142	142
143	143	HB2044 - 3 - LRB103 24915 HLH 51249 b
144	144
145	145
146	146	HB2044- 4 -LRB103 24915 HLH 51249 b HB2044 - 4 - LRB103 24915 HLH 51249 b
147	147	HB2044 - 4 - LRB103 24915 HLH 51249 b
148	148	1 qualified development was also allocated federal tax credits.
149	149	2 The State credit eligibility statement shall include a
150	150	3 Section to be completed by the owner of the qualified
151	151	4 development annually for each year of the credit period
152	152	5 certifying that the qualified development was in conformance
153	153	6 with all compliance requirements. That certification shall be
154	154	7 filed with the project owner's State tax return annually in
155	155	8 each year of the credit period.
156	156	9 Section 10. Credit for low-income housing developments.
157	157	10 (a) The Authority shall include the credit in its annual
158	158	11 qualified allocation plan each year until expiration of this
159	159	12 Act. Each allocation round shall be simultaneous with
160	160	13 allocations of federal tax credits.
161	161	14 (b) For taxable years beginning on or after January 1,
162	162	15 2024, the Authority may allocate a credit to the owner of a
163	163	16 qualified development in any allocation round in an amount
164	164	17 determined by the Authority, subject to the following
165	165	18 guidelines:
166	166	19 (1) the Authority must find that the credit is
167	167	20 necessary for the financial feasibility of the qualified
168	168	21 development;
169	169	22 (2) the aggregate sum of credits allocated to
170	170	23 qualified developments in any allocation round shall not
171	171	24 exceed $35,000,000, plus the amount of unallocated
172	172	25 credits, if any, from the preceding allocation round, plus
173	173
174	174
175	175
176	176
177	177
178	178	HB2044 - 4 - LRB103 24915 HLH 51249 b
179	179
180	180
181	181	HB2044- 5 -LRB103 24915 HLH 51249 b HB2044 - 5 - LRB103 24915 HLH 51249 b
182	182	HB2044 - 5 - LRB103 24915 HLH 51249 b
183	183	1 the amount of any credit recaptured or otherwise returned
184	184	2 to the Authority since the previous allocation round;
185	185	3 (3) of the $35,000,000 annual allocation: (i) 75.5% of
186	186	4 the available credits in each allocation round shall be
187	187	5 allocated by the Illinois Housing Development Authority,
188	188	6 plus any credits the Illinois Housing Development
189	189	7 Authority did not allocate from the previous allocation
190	190	8 round, plus the amount of any credits recaptured or
191	191	9 otherwise returned to the Illinois Housing Development
192	192	10 Authority since the previous allocation round; and (ii)
193	193	11 24.5% of the available credits in each allocation round
194	194	12 shall be allocated by the City of Chicago Department of
195	195	13 Housing, plus any credits the City of Chicago Department
196	196	14 of Housing did not allocate from the previous allocation
197	197	15 round, plus the amount of any credits recaptured or
198	198	16 otherwise returned to the City of Chicago Department of
199	199	17 Housing since the previous allocation round; and
200	200	18 (4) unless otherwise provided in this Act, or unless
201	201	19 the context clearly requires otherwise, the Authority must
202	202	20 determine eligibility for credits and allocate credits in
203	203	21 accordance with the standards and requirements set forth
204	204	22 in Section 42 of the federal Internal Revenue Code of
205	205	23 1986.
206	206	24 (c) For tax years during the credit period, any qualified
207	207	25 taxpayer is allowed a credit as provided in this Act against
208	208	26 any or all of the following: (i) the taxes imposed by
209	209
210	210
211	211
212	212
213	213
214	214	HB2044 - 5 - LRB103 24915 HLH 51249 b
215	215
216	216
217	217	HB2044- 6 -LRB103 24915 HLH 51249 b HB2044 - 6 - LRB103 24915 HLH 51249 b
218	218	HB2044 - 6 - LRB103 24915 HLH 51249 b
219	219	1 subsections (a) and (b) of Section 201 of the Illinois Income
220	220	2 Tax Act; or (ii) any privilege tax or retaliatory tax,
221	221	3 penalty, fee, charge, or payment imposed under the Illinois
222	222	4 Insurance Code.
223	223	5 (d) If a taxpayer receiving an allocation of a credit is
224	224	6 (i) a corporation that has an election in effect under
225	225	7 Subchapter S of the federal Internal Revenue Code, (ii) a
226	226	8 partnership, or (iii) a limited liability company, that is
227	227	9 taxed as a partnership, the credit provided under this Act may
228	228	10 be claimed by the shareholders of the corporation, the
229	229	11 partners of the partnership, or the members of the limited
230	230	12 liability company (as those terms are defined under applicable
231	231	13 State law) in the same manner as those shareholders, partners,
232	232	14 or members account for their proportionate shares of the
233	233	15 income or losses of the corporation, partnership, or limited
234	234	16 liability company, or as provided in the bylaws or other
235	235	17 executed agreement of the corporation, partnership, or limited
236	236	18 liability company. Credits granted to a partnership, a limited
237	237	19 liability company taxed as a partnership, or other multiple
238	238	20 owners of property shall be passed through to the partners,
239	239	21 members, or owners respectively on a pro rata basis or
240	240	22 pursuant to an executed agreement among the partners, members,
241	241	23 or owners documenting any alternative distribution method. A
242	242	24 qualified taxpayer may claim a credit so long as its direct or
243	243	25 indirect interest in the qualified development is acquired
244	244	26 prior to the filing of its tax return claiming the credit. On
245	245
246	246
247	247
248	248
249	249
250	250	HB2044 - 6 - LRB103 24915 HLH 51249 b
251	251
252	252
253	253	HB2044- 7 -LRB103 24915 HLH 51249 b HB2044 - 7 - LRB103 24915 HLH 51249 b
254	254	HB2044 - 7 - LRB103 24915 HLH 51249 b
255	255	1 or before February 28th following each year of the credit
256	256	2 period, the owner must submit an allocation schedule
257	257	3 certification in an electronic format prescribed by the
258	258	4 Department and the Department of Insurance to the Department
259	259	5 and the Department of Insurance detailing the amount of credit
260	260	6 allocated to each qualified taxpayer for the applicable year
261	261	7 and whether each qualified taxpayer intends to apply the
262	262	8 credit to income tax or insurance premium tax, or the owner
263	263	9 must notify the Department and the Department of Insurance
264	264	10 that it has assigned the duty of the allocation schedule
265	265	11 certification to its designee who must provide such allocation
266	266	12 schedule certification to the Department and the Department of
267	267	13 Insurance by the deadline. Such allocation schedule
268	268	14 certification may be amended in the event the State credit
269	269	15 eligibility statement for a project is received after the
270	270	16 deadline for filing the allocation schedule certification. Any
271	271	17 such amendment shall be filed prior to any taxpayer attempting
272	272	18 to claim tax credits associated with the applicable State
273	273	19 credit eligibility statement. Each qualified taxpayer is
274	274	20 allowed to claim its allocated amount of credit subject to any
275	275	21 restrictions set forth in this Section.
276	276	22 (e) No credit may be allocated pursuant to this Act unless
277	277	23 the qualified development is the subject of a recorded
278	278	24 restrictive covenant requiring the development to be
279	279	25 maintained and operated as a qualified development; this
280	280	26 requirement for a recorded restrictive covenant may be
281	281
282	282
283	283
284	284
285	285
286	286	HB2044 - 7 - LRB103 24915 HLH 51249 b
287	287
288	288
289	289	HB2044- 8 -LRB103 24915 HLH 51249 b HB2044 - 8 - LRB103 24915 HLH 51249 b
290	290	HB2044 - 8 - LRB103 24915 HLH 51249 b
291	291	1 satisfied by the agreement for an extended low-income housing
292	292	2 commitment required for the federal tax credits as defined in
293	293	3 Section 42(h)(6)(B) of the federal Internal Revenue Code of
294	294	4 1986.
295	295	5 (f) If, during a taxable year, there is a determination
296	296	6 that no recorded restrictive covenant meeting the requirements
297	297	7 of subsection (e) was in effect as of the beginning of that
298	298	8 year, such determination shall not apply to any period before
299	299	9 that year and subsection (e) shall be applied without regard
300	300	10 to that determination if the failure is corrected within one
301	301	11 year from the date of the determination.
302	302	12 (g) In any year of the credit period, a qualified taxpayer
303	303	13 may claim the credit against the taxes imposed by the Illinois
304	304	14 Income Tax Act or the taxes, penalties, fees, charges, and
305	305	15 payments imposed by the Illinois Insurance Code. Any credit
306	306	16 amount that exceeds the tax due for a taxable year may be
307	307	17 carried forward as a credit against payments due for up to 5
308	308	18 taxable years following the taxable year in which the credit
309	309	19 is first claimed to which the credit relates. Credits that are
310	310	20 carried forward must be applied first to the earliest
311	311	21 reporting period possible. Credits that are initially claimed
312	312	22 against taxes imposed by the Illinois Income Tax Act may be
313	313	23 carried forward only against the taxpayer's future Illinois
314	314	24 Income Tax liability. Credits that are initially claimed
315	315	25 against taxes, penalties, fees, charges, and payments imposed
316	316	26 by the Illinois Insurance Code may be carried forward only
317	317
318	318
319	319
320	320
321	321
322	322	HB2044 - 8 - LRB103 24915 HLH 51249 b
323	323
324	324
325	325	HB2044- 9 -LRB103 24915 HLH 51249 b HB2044 - 9 - LRB103 24915 HLH 51249 b
326	326	HB2044 - 9 - LRB103 24915 HLH 51249 b
327	327	1 against taxes, penalties, fees, charges, and payments imposed
328	328	2 by the Illinois Insurance Code. Credits that are not claimed
329	329	3 or carried forward may not be refunded to the taxpayer.
330	330	4 (h) By February 28, 2023 and by February 28 of each year
331	331	5 thereafter, the Authority shall provide to the Department and
332	332	6 the Department of Insurance an electronic file containing all
333	333	7 data related to all State credit eligibility statements issued
334	334	8 during the preceding year in the manner and form as provided by
335	335	9 the Department.
336	336	10 Section 15. Recapture. If, under Section 42 of the
337	337	11 Internal Revenue Code of 1986, a portion of any federal tax
338	338	12 credit claimed with respect to a qualified development is
339	339	13 required to be recaptured during the first 10 years after a
340	340	14 project is placed in service, then the Authority shall provide
341	341	15 written notice, upon a form created by the Authority, to the
342	342	16 owner of the qualified development, the Department and the
343	343	17 Department of Insurance of the amount to be recaptured and the
344	344	18 event triggering recapture. The Authority shall provide such
345	345	19 notice to the Department and Department of Insurance no
346	346	20 earlier than 6 months after the event triggering recapture to
347	347	21 allow the owner of the qualified development an opportunity to
348	348	22 correct this event. The amount of credit subject to recapture
349	349	23 shall be proportionately equal to the amount of the qualified
350	350	24 development's federal tax credits which are subject to
351	351	25 recapture. The Authority shall notify the qualified taxpayer
352	352
353	353
354	354
355	355
356	356
357	357	HB2044 - 9 - LRB103 24915 HLH 51249 b
358	358
359	359
360	360	HB2044- 10 -LRB103 24915 HLH 51249 b HB2044 - 10 - LRB103 24915 HLH 51249 b
361	361	HB2044 - 10 - LRB103 24915 HLH 51249 b
362	362	1 that claimed the credit of the amount recaptured, and the
363	363	2 qualified taxpayer subject to recapture shall increase the
364	364	3 qualified taxpayer's tax by the amount of any credit
365	365	4 wrongfully claimed in the tax year the qualified taxpayer is
366	366	5 notified of the recapture. If multiple taxpayers claimed
367	367	6 credit with respect to the building for which credit is to be
368	368	7 recaptured, each of those taxpayers shall be liable for a
369	369	8 portion of the recapture equal to the percentages of credit
370	370	9 with respect to the building originally claimed by the
371	371	10 taxpayer.
372	372	11 Section 20. Filing requirements. An owner of a qualified
373	373	12 development that has received an allocation and each qualified
374	374	13 taxpayer claiming any portion of the credit must file with
375	375	14 their State tax returns a copy of the State credit eligibility
376	376	15 statement issued by the Authority for that qualified
377	377	16 development. A qualified taxpayer receiving an allocation of
378	378	17 credit through a pass-through entity shall attach to its State
379	379	18 tax return a copy of the Schedule K-1-P or other written
380	380	19 statement from the pass-through entity stating the portion of
381	381	20 the annual credit shown on the State credit eligibility
382	382	21 statement that is allocated to that partner, member or
383	383	22 shareholder for that taxable year. In addition, the owner of a
384	384	23 qualified development or its designee shall file a copy of the
385	385	24 allocation schedule certification prior to any tax return
386	386	25 being filed claiming a State credit for such qualified
387	387
388	388
389	389
390	390
391	391
392	392	HB2044 - 10 - LRB103 24915 HLH 51249 b
393	393
394	394
395	395	HB2044- 11 -LRB103 24915 HLH 51249 b HB2044 - 11 - LRB103 24915 HLH 51249 b
396	396	HB2044 - 11 - LRB103 24915 HLH 51249 b
397	397	1 development.
398	398	2 Section 25. Rules. The Illinois Housing Development
399	399	3 Authority, the Department, and the Department of Insurance, in
400	400	4 consultation with each other, shall adopt such rules as are
401	401	5 necessary to carry out their respective responsibilities under
402	402	6 this Act.
403	403	7 Section 30. Compliance monitoring. The Authority, in
404	404	8 consultation with the Department, shall monitor and oversee
405	405	9 compliance with the provisions of this Act and shall report
406	406	10 specific occurrences of noncompliance to the Department and
407	407	11 the Department of Insurance.
408	408	12 Section 35. Report to the General Assembly.
409	409	13 (a) The Illinois Housing Development Authority and the
410	410	14 Chicago Department of Housing must, by February 28 of each
411	411	15 year following the annual allocation, provide a written report
412	412	16 to the General Assembly and must publish that report on their
413	413	17 websites.
414	414	18 (b) The report shall:
415	415	19 (1) set forth the number of qualified developments
416	416	20 that have been allocated tax credits under this Act during
417	417	21 the allocation year and the total number of units
418	418	22 supported by each qualified development;
419	419	23 (2) describe each qualified development that has been
420	420
421	421
422	422
423	423
424	424
425	425	HB2044 - 11 - LRB103 24915 HLH 51249 b
426	426
427	427
428	428	HB2044- 12 -LRB103 24915 HLH 51249 b HB2044 - 12 - LRB103 24915 HLH 51249 b
429	429	HB2044 - 12 - LRB103 24915 HLH 51249 b
430	430	1 allocated tax credits under this Act including, without
431	431	2 limitation, the geographic location of the qualified
432	432	3 development, the household type and any specific
433	433	4 demographic information available about residents intended
434	434	5 to be served by the qualified development, the income
435	435	6 levels intended to be served by the qualified development,
436	436	7 and the rents or set-asides authorized for each qualified
437	437	8 development;
438	438	9 (3) provide housing market and demographic information
439	439	10 that demonstrates how the qualified developments supported
440	440	11 by the tax credits are addressing the need for affordable
441	441	12 housing within the communities they are intended to serve
442	442	13 as well as information about any remaining disparities in
443	443	14 the affordability of housing within those communities; and
444	444	15 (4) provide information on the percentage of qualified
445	445	16 developments allocated credits that received incentive
446	446	17 scoring points in the qualified allocation plan as a
447	447	18 result of the general contractor, property manager,
448	448	19 architect, or sponsor being certified under the Business
449	449	20 Enterprise Program for Minorities, Females, and Persons
450	450	21 with a Disability.
451	451	22 Section 40. Exempt from automatic sunset. The credit under
452	452	23 this Act is exempt from the provisions of Section 250 of the
453	453	24 Illinois Income Tax Act.
454	454
455	455
456	456
457	457
458	458
459	459	HB2044 - 12 - LRB103 24915 HLH 51249 b
460	460
461	461
462	462	HB2044- 13 -LRB103 24915 HLH 51249 b HB2044 - 13 - LRB103 24915 HLH 51249 b
463	463	HB2044 - 13 - LRB103 24915 HLH 51249 b
464	464	1 Section 900. The Illinois Income Tax Act is amended by
465	465	2 adding Section 234 as follows:
466	466	3 (35 ILCS 5/234 new)
467	467	4 Sec. 234. Build Illinois Homes Tax Credit Act.
468	468	5 (a) For taxable years beginning on or after January 1,
469	469	6 2024, any eligible taxpayer with respect to a credit awarded
470	470	7 in accordance with the Build Illinois Homes Tax Credit Act
471	471	8 that is named on the allocation schedule certification for a
472	472	9 particular tax year is entitled to a credit against the taxes
473	473	10 imposed by subsections (a) and (b) of Section 201 as provided
474	474	11 in the Build Illinois Homes Tax Credit Act.
475	475	12 (b) The taxpayer shall attach a copy of the allocation
476	476	13 schedule certification and the State credit eligibility
477	477	14 certificate issued under the Build Illinois Homes Tax Credit
478	478	15 Act to the tax return on which the credits are to be claimed.
479	479	16 (c) If, during any taxable year, a taxpayer is notified of
480	480	17 a recapture of a credit previously claimed on a State income
481	481	18 tax return in accordance with the Build Illinois Homes Tax
482	482	19 Credit Act, the tax imposed under subsections (a) and (b) of
483	483	20 Section 201 for that taxpayer for that taxable year shall be
484	484	21 increased. The amount of the increase shall be determined by
485	485	22 (i) recomputing the Build Illinois Homes Tax Credit that would
486	486	23 have been allowed for the year in which the credit was
487	487	24 originally allowed by eliminating the recaptured amount from
488	488	25 such computation, and (ii) subtracting that recomputed credit
489	489
490	490
491	491
492	492
493	493
494	494	HB2044 - 13 - LRB103 24915 HLH 51249 b
495	495
496	496
497	497	HB2044- 14 -LRB103 24915 HLH 51249 b HB2044 - 14 - LRB103 24915 HLH 51249 b
498	498	HB2044 - 14 - LRB103 24915 HLH 51249 b
499	499	1 from the amount of credit previously allowed. No Build
500	500	2 Illinois Homes Tax Credit shall be allowed with respect to any
501	501	3 credit subject to a recapture notice for any taxable year
502	502	4 ending after the issuance of a recapture notice.
503	503	5 (d) This Section is exempt from the provisions of Section
504	504	6 250.
505	505	7 Section 905. The Illinois Insurance Code is amended by
506	506	8 changing Sections 409 and 444 as follows:
507	507	9 (215 ILCS 5/409) (from Ch. 73, par. 1021)
508	508	10 Sec. 409. Annual privilege tax payable by companies.
509	509	11 (1) As of January 1, 1999 for all health maintenance
510	510	12 organization premiums written; as of July 1, 1998 for all
511	511	13 premiums written as accident and health business, voluntary
512	512	14 health service plan business, dental service plan business, or
513	513	15 limited health service organization business; and as of
514	514	16 January 1, 1998 for all other types of insurance premiums
515	515	17 written, every company doing any form of insurance business in
516	516	18 this State, including, but not limited to, every risk
517	517	19 retention group, and excluding all fraternal benefit
518	518	20 societies, all farm mutual companies, all religious charitable
519	519	21 risk pooling trusts, and excluding all statutory residual
520	520	22 market and special purpose entities in which companies are
521	521	23 statutorily required to participate, whether incorporated or
522	522	24 otherwise, shall pay, for the privilege of doing business in
523	523
524	524
525	525
526	526
527	527
528	528	HB2044 - 14 - LRB103 24915 HLH 51249 b
529	529
530	530
531	531	HB2044- 15 -LRB103 24915 HLH 51249 b HB2044 - 15 - LRB103 24915 HLH 51249 b
532	532	HB2044 - 15 - LRB103 24915 HLH 51249 b
533	533	1 this State, to the Director for the State treasury a State tax
534	534	2 equal to 0.5% of the net taxable premium written, together
535	535	3 with any amounts due under Section 444 of this Code, except
536	536	4 that the tax to be paid on any premium derived from any
537	537	5 accident and health insurance or on any insurance business
538	538	6 written by any company operating as a health maintenance
539	539	7 organization, voluntary health service plan, dental service
540	540	8 plan, or limited health service organization shall be equal to
541	541	9 0.4% of such net taxable premium written, together with any
542	542	10 amounts due under Section 444. Upon the failure of any company
543	543	11 to pay any such tax due, the Director may, by order, revoke or
544	544	12 suspend the company's certificate of authority after giving 20
545	545	13 days written notice to the company, or commence proceedings
546	546	14 for the suspension of business in this State under the
547	547	15 procedures set forth by Section 401.1 of this Code. The gross
548	548	16 taxable premium written shall be the gross amount of premiums
549	549	17 received on direct business during the calendar year on
550	550	18 contracts covering risks in this State, except premiums on
551	551	19 annuities, premiums on which State premium taxes are
552	552	20 prohibited by federal law, premiums paid by the State for
553	553	21 health care coverage for Medicaid eligible insureds as
554	554	22 described in Section 5-2 of the Illinois Public Aid Code,
555	555	23 premiums paid for health care services included as an element
556	556	24 of tuition charges at any university or college owned and
557	557	25 operated by the State of Illinois, premiums on group insurance
558	558	26 contracts under the State Employees Group Insurance Act of
559	559
560	560
561	561
562	562
563	563
564	564	HB2044 - 15 - LRB103 24915 HLH 51249 b
565	565
566	566
567	567	HB2044- 16 -LRB103 24915 HLH 51249 b HB2044 - 16 - LRB103 24915 HLH 51249 b
568	568	HB2044 - 16 - LRB103 24915 HLH 51249 b
569	569	1 1971, and except premiums for deferred compensation plans for
570	570	2 employees of the State, units of local government, or school
571	571	3 districts. The net taxable premium shall be the gross taxable
572	572	4 premium written reduced only by the following:
573	573	5 (a) the amount of premiums returned thereon which
574	574	6 shall be limited to premiums returned during the same
575	575	7 preceding calendar year and shall not include the return
576	576	8 of cash surrender values or death benefits on life
577	577	9 policies including annuities;
578	578	10 (b) dividends on such direct business that have been
579	579	11 paid in cash, applied in reduction of premiums or left to
580	580	12 accumulate to the credit of policyholders or annuitants.
581	581	13 In the case of life insurance, no deduction shall be made
582	582	14 for the payment of deferred dividends paid in cash to
583	583	15 policyholders on maturing policies; dividends left to
584	584	16 accumulate to the credit of policyholders or annuitants
585	585	17 shall be included as gross taxable premium written when
586	586	18 such dividend accumulations are applied to purchase
587	587	19 paid-up insurance or to shorten the endowment or premium
588	588	20 paying period.
589	589	21 (2) The annual privilege tax payment due from a company
590	590	22 under subsection (4) of this Section may be reduced by: (a) the
591	591	23 excess amount, if any, by which the aggregate income taxes
592	592	24 paid by the company, on a cash basis, for the preceding
593	593	25 calendar year under Sections 601 and 803 of the Illinois
594	594	26 Income Tax Act exceed 1.5% of the company's net taxable
595	595
596	596
597	597
598	598
599	599
600	600	HB2044 - 16 - LRB103 24915 HLH 51249 b
601	601
602	602
603	603	HB2044- 17 -LRB103 24915 HLH 51249 b HB2044 - 17 - LRB103 24915 HLH 51249 b
604	604	HB2044 - 17 - LRB103 24915 HLH 51249 b
605	605	1 premium written for that prior calendar year, as determined
606	606	2 under subsection (1) of this Section; and (b) the amount of any
607	607	3 fire department taxes paid by the company during the preceding
608	608	4 calendar year under Section 11-10-1 of the Illinois Municipal
609	609	5 Code. Any deductible amount or offset allowed under items (a)
610	610	6 and (b) of this subsection for any calendar year will not be
611	611	7 allowed as a deduction or offset against the company's
612	612	8 privilege tax liability for any other taxing period or
613	613	9 calendar year.
614	614	10 (3) If a company survives or was formed by a merger,
615	615	11 consolidation, reorganization, or reincorporation, the
616	616	12 premiums received and amounts returned or paid by all
617	617	13 companies party to the merger, consolidation, reorganization,
618	618	14 or reincorporation shall, for purposes of determining the
619	619	15 amount of the tax imposed by this Section, be regarded as
620	620	16 received, returned, or paid by the surviving or new company.
621	621	17 (4)(a) All companies subject to the provisions of this
622	622	18 Section shall make an annual return for the preceding calendar
623	623	19 year on or before March 15 setting forth such information on
624	624	20 such forms as the Director may reasonably require. Payments of
625	625	21 quarterly installments of the taxpayer's total estimated tax
626	626	22 for the current calendar year shall be due on or before April
627	627	23 15, June 15, September 15, and December 15 of such year, except
628	628	24 that all companies transacting insurance in this State whose
629	629	25 annual tax for the immediately preceding calendar year was
630	630	26 less than $5,000 shall make only an annual return. Failure of a
631	631
632	632
633	633
634	634
635	635
636	636	HB2044 - 17 - LRB103 24915 HLH 51249 b
637	637
638	638
639	639	HB2044- 18 -LRB103 24915 HLH 51249 b HB2044 - 18 - LRB103 24915 HLH 51249 b
640	640	HB2044 - 18 - LRB103 24915 HLH 51249 b
641	641	1 company to make the annual payment, or to make the quarterly
642	642	2 payments, if required, of at least 25% of either (i) the total
643	643	3 tax paid during the previous calendar year or (ii) 80% of the
644	644	4 actual tax for the current calendar year shall subject it to
645	645	5 the penalty provisions set forth in Section 412 of this Code.
646	646	6 (b) Notwithstanding the foregoing provisions, no annual
647	647	7 return shall be required or made on March 15, 1998, under this
648	648	8 subsection. For the calendar year 1998:
649	649	9 (i) each health maintenance organization shall have no
650	650	10 estimated tax installments;
651	651	11 (ii) all companies subject to the tax as of July 1,
652	652	12 1998 as set forth in subsection (1) shall have estimated
653	653	13 tax installments due on September 15 and December 15 of
654	654	14 1998 which installments shall each amount to no less than
655	655	15 one-half of 80% of the actual tax on its net taxable
656	656	16 premium written during the period July 1, 1998, through
657	657	17 December 31, 1998; and
658	658	18 (iii) all other companies shall have estimated tax
659	659	19 installments due on June 15, September 15, and December 15
660	660	20 of 1998 which installments shall each amount to no less
661	661	21 than one-third of 80% of the actual tax on its net taxable
662	662	22 premium written during the calendar year 1998.
663	663	23 In the year 1999 and thereafter all companies shall make
664	664	24 annual and quarterly installments of their estimated tax as
665	665	25 provided by paragraph (a) of this subsection.
666	666	26 (5) In addition to the authority specifically granted
667	667
668	668
669	669
670	670
671	671
672	672	HB2044 - 18 - LRB103 24915 HLH 51249 b
673	673
674	674
675	675	HB2044- 19 -LRB103 24915 HLH 51249 b HB2044 - 19 - LRB103 24915 HLH 51249 b
676	676	HB2044 - 19 - LRB103 24915 HLH 51249 b
677	677	1 under Article XXV of this Code, the Director shall have such
678	678	2 authority to adopt rules and establish forms as may be
679	679	3 reasonably necessary for purposes of determining the
680	680	4 allocation of Illinois corporate income taxes paid under
681	681	5 subsections (a) through (d) of Section 201 of the Illinois
682	682	6 Income Tax Act amongst members of a business group that files
683	683	7 an Illinois corporate income tax return on a unitary basis,
684	684	8 for purposes of regulating the amendment of tax returns, for
685	685	9 purposes of defining terms, and for purposes of enforcing the
686	686	10 provisions of Article XXV of this Code. The Director shall
687	687	11 also have authority to defer, waive, or abate the tax imposed
688	688	12 by this Section if in his opinion the company's solvency and
689	689	13 ability to meet its insured obligations would be immediately
690	690	14 threatened by payment of the tax due.
691	691	15 (6) This Section is subject to the provisions of Section
692	692	16 10 of the New Markets Development Program Act.
693	693	17 (7) This Section is subject to the provisions of the Build
694	694	18 Illinois Homes Tax Credit Act. For taxable years beginning on
695	695	19 or after January 1, 2024, qualified taxpayers are entitled to
696	696	20 claim credits against the taxes imposed by this Section as
697	697	21 provided in the Build Illinois Homes Tax Credit Act. Companies
698	698	22 claiming a credit under the Build Illinois Homes Tax Credit
699	699	23 Act are not required to pay any additional tax as a result of
700	700	24 claiming the credit. The credit may fully offset any amounts
701	701	25 imposed under this Section.
702	702	26 (Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
703	703
704	704
705	705
706	706
707	707
708	708	HB2044 - 19 - LRB103 24915 HLH 51249 b
709	709
710	710
711	711	HB2044- 20 -LRB103 24915 HLH 51249 b HB2044 - 20 - LRB103 24915 HLH 51249 b
712	712	HB2044 - 20 - LRB103 24915 HLH 51249 b
713	713	1 (215 ILCS 5/444) (from Ch. 73, par. 1056)
714	714	2 Sec. 444. Retaliation.
715	715	3 (1) Whenever the existing or future laws of any other
716	716	4 state or country shall require of companies incorporated or
717	717	5 organized under the laws of this State as a condition
718	718	6 precedent to their doing business in such other state or
719	719	7 country, compliance with laws, rules, regulations, and
720	720	8 prohibitions more onerous or burdensome than the rules and
721	721	9 regulations imposed by this State on foreign or alien
722	722	10 companies, or shall require any deposit of securities or other
723	723	11 obligations in such state or country, for the protection of
724	724	12 policyholders or otherwise or require of such companies or
725	725	13 agents thereof or brokers the payment of penalties, fees,
726	726	14 charges, or taxes greater than the penalties, fees, charges,
727	727	15 or taxes required in the aggregate for like purposes by this
728	728	16 Code or any other law of this State, of foreign or alien
729	729	17 companies, agents thereof or brokers, then such laws, rules,
730	730	18 regulations, and prohibitions of said other state or country
731	731	19 shall apply to companies incorporated or organized under the
732	732	20 laws of such state or country doing business in this State, and
733	733	21 all such companies, agents thereof, or brokers doing business
734	734	22 in this State, shall be required to make deposits, pay
735	735	23 penalties, fees, charges, and taxes, in amounts equal to those
736	736	24 required in the aggregate for like purposes of Illinois
737	737	25 companies doing business in such state or country, agents
738	738
739	739
740	740
741	741
742	742
743	743	HB2044 - 20 - LRB103 24915 HLH 51249 b
744	744
745	745
746	746	HB2044- 21 -LRB103 24915 HLH 51249 b HB2044 - 21 - LRB103 24915 HLH 51249 b
747	747	HB2044 - 21 - LRB103 24915 HLH 51249 b
748	748	1 thereof or brokers. Whenever any other state or country shall
749	749	2 refuse to permit any insurance company incorporated or
750	750	3 organized under the laws of this State to transact business
751	751	4 according to its usual plan in such other state or country, the
752	752	5 director may, if satisfied that such company of this State is
753	753	6 solvent, properly managed, and can operate legally under the
754	754	7 laws of such other state or country, forthwith suspend or
755	755	8 cancel the license of every insurance company doing business
756	756	9 in this State which is incorporated or organized under the
757	757	10 laws of such other state or country to the extent that it
758	758	11 insures in this State against any of the risks or hazards which
759	759	12 are sought to be insured against by the company of this State
760	760	13 in such other state or country.
761	761	14 (2) The provisions of this Section shall not apply to
762	762	15 residual market or special purpose assessments or guaranty
763	763	16 fund or guaranty association assessments, both under the laws
764	764	17 of this State and under the laws of any other state or country,
765	765	18 and any tax offset or credit for any such assessment shall, for
766	766	19 purposes of this Section, be treated as a tax paid both under
767	767	20 the laws of this State and under the laws of any other state or
768	768	21 country.
769	769	22 (3) The terms "penalties", "fees", "charges", and "taxes"
770	770	23 in subsection (1) of this Section shall include: the
771	771	24 penalties, fees, charges, and taxes collected on a cash basis
772	772	25 under State law and referenced within Article XXV exclusive of
773	773	26 any items referenced by subsection (2) of this Section, but
774	774
775	775
776	776
777	777
778	778
779	779	HB2044 - 21 - LRB103 24915 HLH 51249 b
780	780
781	781
782	782	HB2044- 22 -LRB103 24915 HLH 51249 b HB2044 - 22 - LRB103 24915 HLH 51249 b
783	783	HB2044 - 22 - LRB103 24915 HLH 51249 b
784	784	1 including any tax offset allowed under Section 531.13 of this
785	785	2 Code; the aggregate Illinois corporate income taxes paid under
786	786	3 Sections 601 and 803 of the Illinois Income Tax Act during the
787	787	4 calendar year for which the retaliatory tax calculation is
788	788	5 being made, less the recapture of any Illinois corporate
789	789	6 income tax cash refunds to the extent that the amount of tax
790	790	7 refunded was reported as part of the Illinois basis in the
791	791	8 calculation of the retaliatory tax for a prior tax year,
792	792	9 provided that such recaptured refund shall not exceed the
793	793	10 amount necessary for equivalence of the Illinois basis with
794	794	11 the state of incorporation basis in such tax year, and after
795	795	12 any tax offset allowed under Section 531.13 of this Code;
796	796	13 income or personal property taxes imposed by other states or
797	797	14 countries; penalties, fees, charges, and taxes of other states
798	798	15 or countries imposed for purposes like those of the penalties,
799	799	16 fees, charges, and taxes specified in Article XXV of this Code
800	800	17 exclusive of any item referenced in subsection (2) of this
801	801	18 Section; and any penalties, fees, charges, and taxes required
802	802	19 as a franchise, privilege, or licensing tax for conducting the
803	803	20 business of insurance whether calculated as a percentage of
804	804	21 income, gross receipts, premium, or otherwise.
805	805	22 (4) Nothing contained in this Section or Section 409 or
806	806	23 Section 444.1 is intended to authorize or expand any power of
807	807	24 local governmental units or municipalities to impose taxes,
808	808	25 fees, or charges.
809	809	26 (5) This Section is subject to the provisions of Section
810	810
811	811
812	812
813	813
814	814
815	815	HB2044 - 22 - LRB103 24915 HLH 51249 b
816	816
817	817
818	818	HB2044- 23 -LRB103 24915 HLH 51249 b HB2044 - 23 - LRB103 24915 HLH 51249 b
819	819	HB2044 - 23 - LRB103 24915 HLH 51249 b
820	820	1 10 of the New Markets Development Program Act.
821	821	2 (6) This Section is subject to the provisions of the Build
822	822	3 Illinois Homes Tax Credit Act. For taxable years beginning on
823	823	4 or after January 1, 2024, qualified taxpayers are entitled to
824	824	5 claim credits against the taxes imposed by this Section as
825	825	6 provided in the Build Illinois Homes Tax Credit Act. Companies
826	826	7 claiming a credit under the Build Illinois Homes Tax Credit
827	827	8 Act are not required to pay any additional tax as a result of
828	828	9 claiming the credit. The credit may fully offset any amounts
829	829	10 imposed under this Section.
830	830	11 (Source: P.A. 98-1169, eff. 1-9-15.)
831	831
832	832
833	833
834	834
835	835
836	836	HB2044 - 23 - LRB103 24915 HLH 51249 b