Bill > HB1824

This bill creates the Master Development Plan Recognition Act, which provides clarification and tax benefits for certain state and local government contributions made as part of a master development plan. Specifically, the bill defines contributions made by governmental entities pursuant to an approved master development plan for purposes of Section 118 of the Internal Revenue Code. These contributions can include grants from state or local agencies, tax increment financing approvals, and other financing provided under development, redevelopment, or revitalization plans. The bill amends the Illinois Income Tax Act to create a tax deduction for capital contributions made pursuant to a master development plan that are included in a taxpayer's federal taxable income. This means that for tax years beginning on or after December 31, 2025, taxpayers can deduct contributions to their capital from the Department of Commerce and Economic Opportunity or other state agencies that are part of an approved master development plan. The legislation aims to provide clarity and financial incentives for economic development projects by explicitly recognizing certain governmental contributions under federal tax law.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1824&GAID=18&DocTypeID=HB&SessionID=114&GA=104