Bill > HB3412

This bill creates the Preserving Illinois Neighborhoods Act, which provides tax credits for new construction and rehabilitation of residential properties in underserved areas from 2026 to 2031. Specifically, qualified taxpayers can receive a 15% tax credit for constructing a new residence or a 25% tax credit for rehabilitating an existing single-family home that is at least 40 years old in designated underserved areas. To be eligible, properties must have a market value of $300,000 or less and either be vacant for two years or located in a condemned structure. The credits are capped at $40,000 per project, with a minimum of $10,000 in eligible expenditures, and the total credits awarded statewide are limited to $5 million per calendar year. Taxpayers must apply to the Department of Commerce and Economic Opportunity, which will issue a tax credit certificate upon approval. Notably, taxpayers cannot receive credits for the same expenditure under other state tax credit programs. The bill requires the department to report on the program's effectiveness biennially and will automatically expire on January 1, 2032, aimed at revitalizing and preserving neighborhoods in economically challenged areas of Illinois.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3412&GAID=18&DocTypeID=HB&SessionID=114&GA=104