Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0240 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0240 Introduced 1/22/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 35 ILCS 31/20 Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately. LRB104 06900 HLH 16936 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0240 Introduced 1/22/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: 35 ILCS 31/20 35 ILCS 31/20 Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately. LRB104 06900 HLH 16936 b LRB104 06900 HLH 16936 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0240 Introduced 1/22/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 31/20 35 ILCS 31/20
4	4	35 ILCS 31/20
5	5	Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately.
6	6	LRB104 06900 HLH 16936 b LRB104 06900 HLH 16936 b
7	7	LRB104 06900 HLH 16936 b
8	8	A BILL FOR
9	9	SB0240LRB104 06900 HLH 16936 b SB0240 LRB104 06900 HLH 16936 b
10	10	SB0240 LRB104 06900 HLH 16936 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Historic Preservation Tax Credit Act is
15	15	5 amended by changing Section 20 as follows:
16	16	6 (35 ILCS 31/20)
17	17	7 Sec. 20. Limitations, reporting, and monitoring.
18	18	8 (a) In each calendar year beginning on or after January 1,
19	19	9 2019 and ending on or before December 31, 2023, the Division is
20	20	10 authorized to allocate $15,000,000 in tax credits in addition
21	21	11 to any unallocated, returned, or rescinded allocations from
22	22	12 previous years, pursuant to qualified rehabilitation plans. In
23	23	13 each calendar year beginning on or after January 1, 2024 and
24	24	14 ending on or before December 31, 2025, the Division is
25	25	15 authorized to allocate $25,000,000 in tax credits in addition
26	26	16 to any unallocated, returned, or rescinded allocations from
27	27	17 previous years, pursuant to qualified rehabilitation plans. In
28	28	18 each calendar year beginning on or after January 1, 2026
29	29	19 January 1, 2024 and ending on or before December 31, 2028, the
30	30	20 Division is authorized to allocate $75,000,000 $25,000,000 in
31	31	21 tax credits in addition to any unallocated, returned, or
32	32	22 rescinded allocations from previous years, pursuant to
33	33	23 qualified rehabilitation plans. The Division shall not
34	34
35	35
36	36
37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0240 Introduced 1/22/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 31/20 35 ILCS 31/20
39	39	35 ILCS 31/20
40	40	Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately.
41	41	LRB104 06900 HLH 16936 b LRB104 06900 HLH 16936 b
42	42	LRB104 06900 HLH 16936 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	35 ILCS 31/20
50	50
51	51
52	52
53	53	LRB104 06900 HLH 16936 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB0240 LRB104 06900 HLH 16936 b
64	64
65	65
66	66	SB0240- 2 -LRB104 06900 HLH 16936 b SB0240 - 2 - LRB104 06900 HLH 16936 b
67	67	SB0240 - 2 - LRB104 06900 HLH 16936 b
68	68	1 allocate or award more than $3,000,000 in tax credits with
69	69	2 regard to a single qualified rehabilitation plan. In
70	70	3 allocating tax credits under this Act, the Division must
71	71	4 prioritize applications that meet one or more of the
72	72	5 following:
73	73	6 (1) the structure is located in a county that borders
74	74	7 a State with a historic income-producing property
75	75	8 rehabilitation credit;
76	76	9 (2) the structure was previously owned by a federal,
77	77	10 state, or local governmental entity for no less than 6
78	78	11 months;
79	79	12 (3) the structure is located in a census tract that
80	80	13 has a median family income at or below the State median
81	81	14 family income; data from the most recent 5-year estimate
82	82	15 from the American Community Survey (ACS), published by the
83	83	16 U.S. Census Bureau, shall be used to determine
84	84	17 eligibility;
85	85	18 (4) the qualified rehabilitation plan includes in the
86	86	19 development partnership a Community Development Entity or
87	87	20 a low-profit (B Corporation) or not-for-profit
88	88	21 organization, as defined by Section 501(c)(3) of the
89	89	22 Internal Revenue Code; or
90	90	23 (5) the structure is located in an area declared under
91	91	24 an Emergency Declaration or Major Disaster Declaration
92	92	25 under the federal Robert T. Stafford Disaster Relief and
93	93	26 Emergency Assistance Act. The declaration must be no older
94	94
95	95
96	96
97	97
98	98
99	99	SB0240 - 2 - LRB104 06900 HLH 16936 b
100	100
101	101
102	102	SB0240- 3 -LRB104 06900 HLH 16936 b SB0240 - 3 - LRB104 06900 HLH 16936 b
103	103	SB0240 - 3 - LRB104 06900 HLH 16936 b
104	104	1 than 3 years at the time of application.
105	105	2 (b) The annual aggregate authorization of $15,000,000 set
106	106	3 forth in subsection (a) shall be allocated by the Division, in
107	107	4 such proportion as determined by the Director twice in each
108	108	5 calendar year that the program is in effect, provided that the
109	109	6 amount initially allocated by the Division for the first
110	110	7 calendar year application period shall not exceed 65% of the
111	111	8 total amount available for allocation. Any unallocated amount
112	112	9 remaining as of the end of the second application period of a
113	113	10 given calendar year shall be rolled over and added to the total
114	114	11 authorized amount for the next available calendar year. The
115	115	12 qualified rehabilitation plan must meet a readiness test, as
116	116	13 defined by the Division, in order for the application to
117	117	14 qualify. In any given application period, applications that
118	118	15 qualify under this Act will be prioritized as set forth in
119	119	16 subsection (a) and placed in a queue based on the date and time
120	120	17 the application is received. Applicants whose applications
121	121	18 qualify but do not receive an allocation must reapply to be
122	122	19 considered in subsequent application periods.
123	123	20 (c) Subject to appropriation to the Division, moneys in
124	124	21 the Historic Property Administrative Fund shall be used, on a
125	125	22 biennial basis, beginning at the end of the second fiscal year
126	126	23 after the effective date of this Act, to hire a qualified third
127	127	24 party to prepare a biennial report to assess the overall
128	128	25 impact of this Act from the qualified rehabilitation plans
129	129	26 under this Act completed in that year and in previous years.
130	130
131	131
132	132
133	133
134	134
135	135	SB0240 - 3 - LRB104 06900 HLH 16936 b
136	136
137	137
138	138	SB0240- 4 -LRB104 06900 HLH 16936 b SB0240 - 4 - LRB104 06900 HLH 16936 b
139	139	SB0240 - 4 - LRB104 06900 HLH 16936 b
140	140	1 Baseline data of the metrics in the report shall be collected
141	141	2 at the initiation of a qualified rehabilitation plan. The
142	142	3 overall economic impact shall include at least:
143	143	4 (1) the number of applications, project locations, and
144	144	5 proposed use of qualified historic structures;
145	145	6 (2) the amount of credits awarded and the number and
146	146	7 location of projects receiving credit allocations;
147	147	8 (3) the status of ongoing projects and projected
148	148	9 qualifying expenditures for ongoing projects;
149	149	10 (4) for completed projects, the total amount of
150	150	11 qualifying rehabilitation expenditures and non-qualifying
151	151	12 expenditures, the number of housing units created and the
152	152	13 number of housing units that qualify as affordable, and
153	153	14 the total square footage rehabilitated and developed;
154	154	15 (5) direct, indirect, and induced economic impacts;
155	155	16 (6) temporary, permanent, and construction jobs
156	156	17 created; and
157	157	18 (7) sales, income, and property tax generation before
158	158	19 construction, during construction, and after completion.
159	159	20 The report to the General Assembly shall be filed with the
160	160	21 Clerk of the House of Representatives and the Secretary of the
161	161	22 Senate in electronic form only, in the manner that the Clerk
162	162	23 and the Secretary shall direct.
163	163	24 (d) Any time prior to issuance of a tax credit
164	164	25 certificate, the Director of the Division, the State Historic
165	165	26 Preservation Officer, or staff of the Division may, upon
166	166
167	167
168	168
169	169
170	170
171	171	SB0240 - 4 - LRB104 06900 HLH 16936 b
172	172
173	173
174	174	SB0240- 5 -LRB104 06900 HLH 16936 b SB0240 - 5 - LRB104 06900 HLH 16936 b
175	175	SB0240 - 5 - LRB104 06900 HLH 16936 b
176	176	1 reasonable notice of not less than 3 business days, conduct a
177	177	2 site visit to the project to inspect and evaluate the project.
178	178	3 (e) Any time prior to the issuance of a tax credit
179	179	4 certificate, the Director may, upon reasonable notice of not
180	180	5 less than 30 calendar days, request a status report from the
181	181	6 Applicant consisting of information and updates relevant to
182	182	7 the status of the project. Status reports shall not be
183	183	8 requested more than twice yearly.
184	184	9 (f) In order to demonstrate sufficient evidence of
185	185	10 reviewable progress within 12 months after the date the
186	186	11 Applicant received notification of allocation from the
187	187	12 Division, the Director may require the Applicant to provide
188	188	13 all of the following:
189	189	14 (1) a viable financial plan which demonstrates by way
190	190	15 of an executed agreement that all financing has been
191	191	16 secured for the project; such financing shall include, but
192	192	17 not be limited to, equity investment as demonstrated by
193	193	18 letters of commitment from the owner of the property,
194	194	19 investment partners, and equity investors;
195	195	20 (2) (blank); and
196	196	21 (3) all historic approvals, including all federal and
197	197	22 State rehabilitation documents required by the Division.
198	198	23 The Director shall review the submitted evidence and may
199	199	24 request additional documentation from the Applicant if
200	200	25 necessary. The Applicant will have 30 calendar days to provide
201	201	26 the information requested, otherwise the allocation may be
202	202
203	203
204	204
205	205
206	206
207	207	SB0240 - 5 - LRB104 06900 HLH 16936 b
208	208
209	209
210	210	SB0240- 6 -LRB104 06900 HLH 16936 b SB0240 - 6 - LRB104 06900 HLH 16936 b
211	211	SB0240 - 6 - LRB104 06900 HLH 16936 b
212	212	1 rescinded at the discretion of the Director.
213	213	2 (g) In order to demonstrate sufficient evidence of
214	214	3 reviewable progress within 24 months after the date the
215	215	4 application received notification of approval from the
216	216	5 Division, the Director may require the Applicant to provide
217	217	6 detailed evidence that the Applicant has secured and closed on
218	218	7 financing for the complete scope of rehabilitation for the
219	219	8 project. To demonstrate evidence that the Applicant has
220	220	9 secured and closed on financing, the Applicant will need to
221	221	10 provide signed and processed loan agreements, bank financing
222	222	11 documents or other legal and contractual evidence to
223	223	12 demonstrate that adequate financing is available to complete
224	224	13 the project. The Director shall review the submitted evidence
225	225	14 and may request additional documentation from the Applicant if
226	226	15 necessary. The Applicant will have 30 calendar days to provide
227	227	16 the information requested, otherwise the allocation may be
228	228	17 rescinded at the discretion of the Director.
229	229	18 If the Applicant fails to document reviewable progress
230	230	19 within 24 months of approval, the Director may notify the
231	231	20 Applicant that the allocation is rescinded. However, should
232	232	21 financing and construction be imminent, the Director may elect
233	233	22 to grant the Applicant no more than 5 months to close on
234	234	23 financing and commence construction. If the Applicant fails to
235	235	24 meet these conditions in the required timeframe, the Director
236	236	25 shall notify the Applicant that the allocation is rescinded.
237	237	26 Any such rescinded allocation shall be added to the aggregate
238	238
239	239
240	240
241	241
242	242
243	243	SB0240 - 6 - LRB104 06900 HLH 16936 b
244	244
245	245
246	246	SB0240- 7 -LRB104 06900 HLH 16936 b SB0240 - 7 - LRB104 06900 HLH 16936 b
247	247	SB0240 - 7 - LRB104 06900 HLH 16936 b
248	248	1 amount of credits available for allocation for the year in
249	249	2 which the forfeiture occurred.
250	250	3 The amount of the qualified expenditures identified in the
251	251	4 qualified taxpayer's certification of completion and reflected
252	252	5 on the Historic Preservation Tax Credit certificate issued by
253	253	6 the Director is subject to inspection, examination, and audit
254	254	7 by the Department of Revenue.
255	255	8 The qualified taxpayer shall establish and maintain for a
256	256	9 period of 4 years following the effective date on a project tax
257	257	10 credit certificate such records as required by the Director.
258	258	11 Such records include, but are not limited to, records
259	259	12 documenting project expenditures and compliance with the U.S.
260	260	13 Secretary of the Interior's Standards. The qualified taxpayer
261	261	14 shall make such records available for review and verification
262	262	15 by the Director, the State Historic Preservation Officer, the
263	263	16 Department of Revenue, or appropriate staff, as well as other
264	264	17 appropriate State agencies. In the event the Director
265	265	18 determines an Applicant has submitted a status report
266	266	19 containing erroneous information or data not supported by
267	267	20 records established and maintained under this Act, the
268	268	21 Director may, after providing notice, require the Applicant to
269	269	22 resubmit corrected reports.
270	270	23 (Source: P.A. 102-741, eff. 5-6-22; 103-9, eff. 6-7-23.)
271	271
272	272
273	273
274	274
275	275
276	276	SB0240 - 7 - LRB104 06900 HLH 16936 b