Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2476 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2476 Introduced 2/7/2025, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the qualified conversion expenditures incurred by a taxpayer for a qualified converted building. Effective immediately. LRB104 07187 HLH 17224 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2476 Introduced 2/7/2025, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the qualified conversion expenditures incurred by a taxpayer for a qualified converted building. Effective immediately. LRB104 07187 HLH 17224 b LRB104 07187 HLH 17224 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2476 Introduced 2/7/2025, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/246 new 35 ILCS 5/246 new
4	4	35 ILCS 5/246 new
5	5	Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the qualified conversion expenditures incurred by a taxpayer for a qualified converted building. Effective immediately.
6	6	LRB104 07187 HLH 17224 b LRB104 07187 HLH 17224 b
7	7	LRB104 07187 HLH 17224 b
8	8	A BILL FOR
9	9	SB2476LRB104 07187 HLH 17224 b SB2476 LRB104 07187 HLH 17224 b
10	10	SB2476 LRB104 07187 HLH 17224 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 Illinois Income Tax Act is amended by
15	15	5 adding Section 246 as follows:
16	16	6 (35 ILCS 5/246 new)
17	17	7 Sec. 246. Revitalizing Illinois Downtowns Tax Credit.
18	18	8 (a) For taxable years beginning on or after January 1,
19	19	9 2026, a taxpayer may apply to the Department, in the form and
20	20	10 manner required by the Department, for a credit against the
21	21	11 taxes imposed under subsections (a) and (b) of Section 201 of
22	22	12 this Act. The amount of the credit shall be equal to 20% of the
23	23	13 qualified conversion expenditures incurred by the qualified
24	24	14 taxpayer during the taxable year with respect to a qualified
25	25	15 converted building. If the qualified conversion expenditures
26	26	16 include construction work, then that construction work must be
27	27	17 subject to a project labor agreement. In no event shall the
28	28	18 amount of the credit exceed $15,000 per taxpayer in a single
29	29	19 tax year; however, if the qualified conversion plan spans
30	30	20 multiple years, the aggregate credit for the entire project
31	31	21 may be claimed in the last taxable year so long as the total
32	32	22 credit amount for the entire project does not exceed $15,000
33	33	23 per year for each year of the project. The total aggregate
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2476 Introduced 2/7/2025, by Sen. Mattie Hunter SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/246 new 35 ILCS 5/246 new
39	39	35 ILCS 5/246 new
40	40	Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the qualified conversion expenditures incurred by a taxpayer for a qualified converted building. Effective immediately.
41	41	LRB104 07187 HLH 17224 b LRB104 07187 HLH 17224 b
42	42	LRB104 07187 HLH 17224 b
43	43	A BILL FOR
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49	49	35 ILCS 5/246 new
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68	68	1 amount of credits awarded by the Department under this Section
69	69	2 shall not exceed $50,000,000 in any State fiscal year. Credits
70	70	3 shall be awarded on a first-come, first-served basis.
71	71	4 (b) The credit for partners and shareholders of subchapter
72	72	5 S corporations shall be determined as provided in Section 251.
73	73	6 (c) In no event shall a credit under this Section reduce
74	74	7 the taxpayer's liability to less than zero. If the amount of
75	75	8 the credit exceeds the tax liability for the year, the excess
76	76	9 may be carried forward and applied to the tax liability of the
77	77	10 5 taxable years following the excess credit year. The tax
78	78	11 credit shall be applied to the earliest year for which there is
79	79	12 a tax liability. If there are credits for more than one year
80	80	13 that are available to offset a liability, the earlier credit
81	81	14 shall be applied first.
82	82	15 (d) As used in this Section:
83	83	16 "Qualified converted building" means a building that meets
84	84	17 all of the following criteria:
85	85	18 (1) the building has been substantially converted from
86	86	19 office use to residential, retail, or other commercial use
87	87	20 by the qualified taxpayer;
88	88	21 (2) prior to the conversion described in item (1), the
89	89	22 building was not used for residential purposes and was
90	90	23 leased to office tenants or was available for lease to
91	91	24 office tenants;
92	92	25 (3) the building was initially placed in service at
93	93	26 least 25 years before the beginning of the conversion
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104	104	1 described in item (1);
105	105	2 (4) the building is eligible for depreciation on the
106	106	3 taxpayer's federal income taxes;
107	107	4 (5) the building is carbon neutral or has attained
108	108	5 certification under one or more of the following green
109	109	6 building standards: BREEAM for New Construction or BREEAM
110	110	7 In-Use; ENERGY STAR; Envision; ISO 50001-energy
111	111	8 management; LEED for Building Design and Construction or
112	112	9 LEED for Operations and Maintenance; Green Globes for New
113	113	10 Construction or Green Globes for Existing Buildings; UL
114	114	11 3223; or an equivalent standard approved by the
115	115	12 Department; and
116	116	13 (6) in the case of a building that is converted to
117	117	14 residential use property under item (1):
118	118	15 (A) upon the completion of the conversion, 20% or
119	119	16 more of the residential housing units will be both
120	120	17 rent-restricted and occupied by individuals whose
121	121	18 income is 80% or less of the median income for the
122	122	19 municipality as established by the United States
123	123	20 Department of Health and Human Services; and
124	124	21 (B) the property is subject to a binding State or
125	125	22 local agreement with respect to the provision of
126	126	23 financing of affordable housing, and that agreement is
127	127	24 documented in writing.
128	128	25 "Qualified conversion expenditure" means any expenditure
129	129	26 that is incurred by the taxpayer in converting a building from
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140	140	1 office use to residential, retail, or other commercial use and
141	141	2 that is properly chargeable to a capital account. "Qualified
142	142	3 expenditure" does not include the cost of acquisition of the
143	143	4 building or property to be converted, the cost to enlarge the
144	144	5 building, any expenditure that is allocable to a portion of
145	145	6 the property that is tax-exempt use property, or any
146	146	7 expenditure incurred by a lessee of a building on or after the
147	147	8 date on which the conversion is complete.
148	148	9 "Qualified office building" means (i) commercial property
149	149	10 that is leased or available for lease to office tenants or is
150	150	11 used primarily for office use and (ii) the structural
151	151	12 components of that property.
152	152	13 "Qualified taxpayer" means an Illinois resident that is
153	153	14 the owner of a qualified office building located in the State.
154	154	15 "Substantially converted" means that the qualified
155	155	16 expenditures incurred by the qualified taxpayer with respect
156	156	17 to the subject building during the 24-month period selected by
157	157	18 the taxpayer at the time and in the manner prescribed by the
158	158	19 Department by rule and ending during the taxable year for
159	159	20 which the credit is claimed exceed the greater of: (i) the
160	160	21 adjusted basis of the building and its structural components
161	161	22 or (ii) $15,000. The adjusted basis of the building and its
162	162	23 structural components shall be determined as of the first day
163	163	24 of that 24-month period or the beginning of the first day of
164	164	25 the holding period of the building, whichever is later. For
165	165	26 purposes of determining the adjusted basis, the determination
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176	176	1 of the beginning of the holding period shall be made without
177	177	2 regard to any reconstruction by the qualified taxpayer.
178	178	3 (e) The Department may, in consultation with the
179	179	4 Department of Commerce and Economic Opportunity, adopt rules
180	180	5 to administer the provisions of this Section.
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