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Illinois Senate Bill SB1831

Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1831 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1831 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-165 Amends the Property Tax Code. Allows for an abatement of taxes if the property is included in a new residential construction development that is located in a county with fewer than 300,000 inhabitants. Effective immediately. LRB104 03834 HLH 13858 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1831 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-165 35 ILCS 200/18-165 Amends the Property Tax Code. Allows for an abatement of taxes if the property is included in a new residential construction development that is located in a county with fewer than 300,000 inhabitants. Effective immediately. LRB104 03834 HLH 13858 b LRB104 03834 HLH 13858 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1831 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
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55 Amends the Property Tax Code. Allows for an abatement of taxes if the property is included in a new residential construction development that is located in a county with fewer than 300,000 inhabitants. Effective immediately.
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1111 1 AN ACT concerning revenue.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Property Tax Code is amended by changing
1515 5 Section 18-165 as follows:
1616 6 (35 ILCS 200/18-165)
1717 7 Sec. 18-165. Abatement of taxes.
1818 8 (a) Any taxing district, upon a majority vote of its
1919 9 governing authority, may, after the determination of the
2020 10 assessed valuation of its property, order the clerk of that
2121 11 county to abate any portion of its taxes on the following types
2222 12 of property:
2323 13 (1) Commercial and industrial.
2424 14 (A) The property of any commercial or industrial
2525 15 firm, including but not limited to the property of (i)
2626 16 any firm that is used for collecting, separating,
2727 17 storing, or processing recyclable materials, locating
2828 18 within the taxing district during the immediately
2929 19 preceding year from another state, territory, or
3030 20 country, or having been newly created within this
3131 21 State during the immediately preceding year, or
3232 22 expanding an existing facility, or (ii) any firm that
3333 23 is used for the generation and transmission of
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3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1831 Introduced 2/5/2025, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
3838 35 ILCS 200/18-165 35 ILCS 200/18-165
3939 35 ILCS 200/18-165
4040 Amends the Property Tax Code. Allows for an abatement of taxes if the property is included in a new residential construction development that is located in a county with fewer than 300,000 inhabitants. Effective immediately.
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6868 1 electricity locating within the taxing district during
6969 2 the immediately preceding year or expanding its
7070 3 presence within the taxing district during the
7171 4 immediately preceding year by construction of a new
7272 5 electric generating facility that uses natural gas as
7373 6 its fuel, or any firm that is used for production
7474 7 operations at a new, expanded, or reopened coal mine
7575 8 within the taxing district, that has been certified as
7676 9 a High Impact Business by the Illinois Department of
7777 10 Commerce and Economic Opportunity. The property of any
7878 11 firm used for the generation and transmission of
7979 12 electricity shall include all property of the firm
8080 13 used for transmission facilities as defined in Section
8181 14 5.5 of the Illinois Enterprise Zone Act. The abatement
8282 15 shall not exceed a period of 10 years and the aggregate
8383 16 amount of abated taxes for all taxing districts
8484 17 combined shall not exceed $4,000,000.
8585 18 (A-5) Any property in the taxing district of a new
8686 19 electric generating facility, as defined in Section
8787 20 605-332 of the Department of Commerce and Economic
8888 21 Opportunity Law of the Civil Administrative Code of
8989 22 Illinois. The abatement shall not exceed a period of
9090 23 10 years. The abatement shall be subject to the
9191 24 following limitations:
9292 25 (i) if the equalized assessed valuation of the
9393 26 new electric generating facility is equal to or
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104104 1 greater than $25,000,000 but less than
105105 2 $50,000,000, then the abatement may not exceed (i)
106106 3 over the entire term of the abatement, 5% of the
107107 4 taxing district's aggregate taxes from the new
108108 5 electric generating facility and (ii) in any one
109109 6 year of abatement, 20% of the taxing district's
110110 7 taxes from the new electric generating facility;
111111 8 (ii) if the equalized assessed valuation of
112112 9 the new electric generating facility is equal to
113113 10 or greater than $50,000,000 but less than
114114 11 $75,000,000, then the abatement may not exceed (i)
115115 12 over the entire term of the abatement, 10% of the
116116 13 taxing district's aggregate taxes from the new
117117 14 electric generating facility and (ii) in any one
118118 15 year of abatement, 35% of the taxing district's
119119 16 taxes from the new electric generating facility;
120120 17 (iii) if the equalized assessed valuation of
121121 18 the new electric generating facility is equal to
122122 19 or greater than $75,000,000 but less than
123123 20 $100,000,000, then the abatement may not exceed
124124 21 (i) over the entire term of the abatement, 20% of
125125 22 the taxing district's aggregate taxes from the new
126126 23 electric generating facility and (ii) in any one
127127 24 year of abatement, 50% of the taxing district's
128128 25 taxes from the new electric generating facility;
129129 26 (iv) if the equalized assessed valuation of
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140140 1 the new electric generating facility is equal to
141141 2 or greater than $100,000,000 but less than
142142 3 $125,000,000, then the abatement may not exceed
143143 4 (i) over the entire term of the abatement, 30% of
144144 5 the taxing district's aggregate taxes from the new
145145 6 electric generating facility and (ii) in any one
146146 7 year of abatement, 60% of the taxing district's
147147 8 taxes from the new electric generating facility;
148148 9 (v) if the equalized assessed valuation of the
149149 10 new electric generating facility is equal to or
150150 11 greater than $125,000,000 but less than
151151 12 $150,000,000, then the abatement may not exceed
152152 13 (i) over the entire term of the abatement, 40% of
153153 14 the taxing district's aggregate taxes from the new
154154 15 electric generating facility and (ii) in any one
155155 16 year of abatement, 60% of the taxing district's
156156 17 taxes from the new electric generating facility;
157157 18 (vi) if the equalized assessed valuation of
158158 19 the new electric generating facility is equal to
159159 20 or greater than $150,000,000, then the abatement
160160 21 may not exceed (i) over the entire term of the
161161 22 abatement, 50% of the taxing district's aggregate
162162 23 taxes from the new electric generating facility
163163 24 and (ii) in any one year of abatement, 60% of the
164164 25 taxing district's taxes from the new electric
165165 26 generating facility.
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176176 1 The abatement is not effective unless the owner of
177177 2 the new electric generating facility agrees to repay
178178 3 to the taxing district all amounts previously abated,
179179 4 together with interest computed at the rate and in the
180180 5 manner provided for delinquent taxes, in the event
181181 6 that the owner of the new electric generating facility
182182 7 closes the new electric generating facility before the
183183 8 expiration of the entire term of the abatement.
184184 9 The authorization of taxing districts to abate
185185 10 taxes under this subdivision (a)(1)(A-5) expires on
186186 11 January 1, 2010.
187187 12 (B) The property of any commercial or industrial
188188 13 development of at least (i) 500 acres or (ii) 225 acres
189189 14 in the case of a commercial or industrial development
190190 15 that applies for and is granted designation as a High
191191 16 Impact Business under paragraph (F) of item (3) of
192192 17 subsection (a) of Section 5.5 of the Illinois
193193 18 Enterprise Zone Act, having been created within the
194194 19 taxing district. The abatement shall not exceed a
195195 20 period of 20 years and the aggregate amount of abated
196196 21 taxes for all taxing districts combined shall not
197197 22 exceed $12,000,000.
198198 23 (C) The property of any commercial or industrial
199199 24 firm currently located in the taxing district that
200200 25 expands a facility or its number of employees. The
201201 26 abatement shall not exceed a period of 10 years and the
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212212 1 aggregate amount of abated taxes for all taxing
213213 2 districts combined shall not exceed $4,000,000. The
214214 3 abatement period may be renewed at the option of the
215215 4 taxing districts.
216216 5 (2) Horse racing. Any property in the taxing district
217217 6 which is used for the racing of horses and upon which
218218 7 capital improvements consisting of expansion, improvement
219219 8 or replacement of existing facilities have been made since
220220 9 July 1, 1987. The combined abatements for such property
221221 10 from all taxing districts in any county shall not exceed
222222 11 $5,000,000 annually and shall not exceed a period of 10
223223 12 years.
224224 13 (3) Auto racing. Any property designed exclusively for
225225 14 the racing of motor vehicles. Such abatement shall not
226226 15 exceed a period of 10 years.
227227 16 (4) Academic or research institute. The property of
228228 17 any academic or research institute in the taxing district
229229 18 that (i) is an exempt organization under paragraph (3) of
230230 19 Section 501(c) of the Internal Revenue Code, (ii) operates
231231 20 for the benefit of the public by actually and exclusively
232232 21 performing scientific research and making the results of
233233 22 the research available to the interested public on a
234234 23 non-discriminatory basis, and (iii) employs more than 100
235235 24 employees. An abatement granted under this paragraph shall
236236 25 be for at least 15 years and the aggregate amount of abated
237237 26 taxes for all taxing districts combined shall not exceed
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248248 1 $5,000,000.
249249 2 (5) Housing for older persons. Any property in the
250250 3 taxing district that is devoted exclusively to affordable
251251 4 housing for older households. For purposes of this
252252 5 paragraph, "older households" means those households (i)
253253 6 living in housing provided under any State or federal
254254 7 program that the Department of Human Rights determines is
255255 8 specifically designed and operated to assist elderly
256256 9 persons and is solely occupied by persons 55 years of age
257257 10 or older and (ii) whose annual income does not exceed 80%
258258 11 of the area gross median income, adjusted for family size,
259259 12 as such gross income and median income are determined from
260260 13 time to time by the United States Department of Housing
261261 14 and Urban Development. The abatement shall not exceed a
262262 15 period of 15 years, and the aggregate amount of abated
263263 16 taxes for all taxing districts shall not exceed
264264 17 $3,000,000.
265265 18 (6) Historical society. For assessment years 1998
266266 19 through 2018, the property of an historical society
267267 20 qualifying as an exempt organization under Section
268268 21 501(c)(3) of the federal Internal Revenue Code.
269269 22 (7) Recreational facilities. Any property in the
270270 23 taxing district (i) that is used for a municipal airport,
271271 24 (ii) that is subject to a leasehold assessment under
272272 25 Section 9-195 of this Code and (iii) which is sublet from a
273273 26 park district that is leasing the property from a
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284284 1 municipality, but only if the property is used exclusively
285285 2 for recreational facilities or for parking lots used
286286 3 exclusively for those facilities. The abatement shall not
287287 4 exceed a period of 10 years.
288288 5 (8) Relocated corporate headquarters. If approval
289289 6 occurs within 5 years after the effective date of this
290290 7 amendatory Act of the 92nd General Assembly, any property
291291 8 or a portion of any property in a taxing district that is
292292 9 used by an eligible business for a corporate headquarters
293293 10 as defined in the Corporate Headquarters Relocation Act.
294294 11 Instead of an abatement under this paragraph (8), a taxing
295295 12 district may enter into an agreement with an eligible
296296 13 business to make annual payments to that eligible business
297297 14 in an amount not to exceed the property taxes paid
298298 15 directly or indirectly by that eligible business to the
299299 16 taxing district and any other taxing districts for
300300 17 premises occupied pursuant to a written lease and may make
301301 18 those payments without the need for an annual
302302 19 appropriation. No school district, however, may enter into
303303 20 an agreement with, or abate taxes for, an eligible
304304 21 business unless the municipality in which the corporate
305305 22 headquarters is located agrees to provide funding to the
306306 23 school district in an amount equal to the amount abated or
307307 24 paid by the school district as provided in this paragraph
308308 25 (8). Any abatement ordered or agreement entered into under
309309 26 this paragraph (8) may be effective for the entire term
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320320 1 specified by the taxing district, except the term of the
321321 2 abatement or annual payments may not exceed 20 years.
322322 3 (9) United States Military Public/Private Residential
323323 4 Developments. Each building, structure, or other
324324 5 improvement designed, financed, constructed, renovated,
325325 6 managed, operated, or maintained after January 1, 2006
326326 7 under a "PPV Lease", as set forth under Division 14 of
327327 8 Article 10, and any such PPV Lease.
328328 9 (10) Property located in a business corridor that
329329 10 qualifies for an abatement under Section 18-184.10.
330330 11 (11) Under Section 11-15.4-25 of the Illinois
331331 12 Municipal Code, property located within an urban
332332 13 agricultural area that is used by a qualifying farmer for
333333 14 processing, growing, raising, or otherwise producing
334334 15 agricultural products.
335335 16 (12) Property included in a new residential
336336 17 construction development, as determined by the taxing
337337 18 district, that is located in a county with fewer than
338338 19 300,000 inhabitants.
339339 20 (b) Upon a majority vote of its governing authority, any
340340 21 municipality may, after the determination of the assessed
341341 22 valuation of its property, order the county clerk to abate any
342342 23 portion of its taxes on any property that is located within the
343343 24 corporate limits of the municipality in accordance with
344344 25 Section 8-3-18 of the Illinois Municipal Code.
345345 26 (Source: P.A. 100-1133, eff. 1-1-19.)
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