summary
Introduced
02/07/2025
02/07/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Provides that the amendatory Act may be referred to as the Land Conservation Incentives Act. Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, there is a tax credit of up to $200,000 with respect to qualified real property interest conveyed for conservation and preservation purposes as the qualified donation by the taxpayer, with certain requirements. Provides that any taxpayer claiming this tax credit may not claim a credit under any similar law for costs related to the same project. Provides that any tax credits from the donation of an interest in land made by a pass-through tax entity such as a trust, estate, partnership, limited liability corporation or partnership, limited partnership, S corporation, or other fiduciary shall be used either by such entity if it is the taxpayer on behalf of such entity or by the member, manager, partner, shareholder, or beneficiary, as the case may be, in proportion to their interest in such entity if the income, deductions, and tax liability passes through such entity to such member, manager, partner, shareholder, or beneficiary, and that such tax credits may not be claimed by both the entity and the member, manager, partner, shareholder, or beneficiary for the same donation. Requires the Department of Natural Resources and Department of Revenue to adopt rules. Defines terms. Makes findings.
AI Summary
This bill establishes a tax credit program in Illinois to incentivize land conservation efforts by private landowners. Beginning in 2025, taxpayers can receive a tax credit of up to $200,000 for donating qualified real property interests (such as fee simple interests, remainder interests, or perpetual use restrictions) to public or private conservation agencies for purposes like open space preservation, natural resource protection, biodiversity conservation, agricultural conservation, watershed conservation, or historic preservation. The credit is based on the fair market value of the donated land interest and can be carried forward for up to 20 consecutive tax years if not fully used in the initial year. Importantly, taxpayers cannot claim credits for the same conservation project under multiple laws, and for pass-through entities like partnerships or trusts, the tax credit can only be claimed by either the entity or its members, but not both. The bill requires that donated land interests be secured in perpetuity and be substantiated by a qualified appraisal. The Department of Natural Resources and Department of Revenue are tasked with adopting rules to implement the program and will be required to submit a report to the General Assembly detailing the lands protected and the fiscal impact of the credits.
Committee Categories
Budget and Finance
Sponsors (5)
Will Guzzardi (D)*,
Laura Faver Dias (D),
Maura Hirschauer (D),
Hoan Huynh (D),
Michelle Mussman (D),
Last Action
Added Co-Sponsor Rep. Hoan Huynh (on 04/07/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3457&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3457.htm |
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