BUILD ILLINOIS TAX CREDIT
If passed, SB1737 will have a significant impact on both housing authorities and developers within Illinois. The Illinois Housing Development Authority and, in the case of Chicago, the City of Chicago Department of Housing, will be integral to the allocation of credits, which will be capped at $35 million annually. The credits will not only help stimulate the construction of new low-income housing but will also potentially enhance compliance with federal housing standards, thereby elevating the quality and accessibility of housing available to those in need.
SB1737, known as the Build Illinois Homes Tax Credit Act, aims to incentivize the development of low-income housing by providing tax credits to owners of qualified developments. These credits can be applied against taxes imposed by the Illinois Income Tax Act and the Illinois Insurance Code. This act seeks to address the growing need for affordable housing within the state, especially as housing costs continue to rise. The legislation is designed to complement existing federal tax credits available for low-income housing, aligning state initiatives with federal resources.
However, the bill is not without its points of contention. Critics may argue that while tax credits can serve to incentivize development, they might also lead to inefficiencies where developers prioritize maximum tax benefits over community needs. There are concerns about ensuring that the developments remain genuinely accessible and affordable over the long term, as the structure of tax credits could encourage developers to focus on maximizing profits rather than serving lower-income residents. Additionally, how the credits are allocated between state and local authorities could invoke discussion regarding control and responsibility in local housing policies.