Bill > SB0062

This bill establishes the Build Illinois Homes Tax Credit Act, which creates a tax credit program to incentivize the development of low-income housing in Illinois. The bill allows owners of qualified low-income housing developments to claim tax credits against either the Illinois Income Tax or insurance premium taxes for a period of 6 taxable years, beginning in 2026. The total annual credit allocation is $20,000,000, with 75.5% awarded by the Illinois Housing Development Authority and 24.5% by the City of Chicago Department of Housing. To be eligible, developments must meet federal low-income housing tax credit requirements and be subject to a recorded restrictive covenant ensuring affordable housing. Qualified taxpayers can claim the credit based on their ownership interest in the development and must submit annual documentation to the state. The credit cannot reduce tax liability to less than zero, but excess credits can be carried forward for up to 5 years. The bill also requires authorities to monitor compliance and submit annual reports to the General Assembly detailing the impact of the tax credits on affordable housing. Importantly, the program includes provisions for recapture of credits if a development fails to meet compliance requirements, ensuring accountability and proper use of the tax incentive.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=62&GAID=18&DocTypeID=SB&SessionID=114&GA=104