summary
Introduced
02/07/2025
02/07/2025
In Committee
06/02/2025
06/02/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
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 creates a land conservation tax credit program in Illinois designed to incentivize private landowners to preserve natural resources, wildlife habitats, and open spaces. For taxable years beginning January 1, 2025, the bill allows taxpayers a tax credit of up to $200,000 for donating qualified real property interests (such as fee simple interests, remainder interests, or perpetual land use restrictions) to public or private conservation agencies for purposes like open space conservation, natural resource protection, biodiversity conservation, or historic preservation. The credit is equal to the fair market value of the donated property interest, can be carried forward for up to 20 consecutive tax years, and can be transferred to another taxpayer. Importantly, taxpayers cannot claim this credit for the same project under any other similar law, and for pass-through entities like partnerships or trusts, the credit can only be claimed by either the entity or its members, not both. The bill requires donations to be substantiated by a qualified appraisal and aims to complement existing state conservation laws by providing financial incentives for private landowners to protect important lands. The Department of Natural Resources and Department of Revenue are tasked with developing rules to implement the program and will be required to submit a report to the General Assembly documenting the lands protected under this initiative.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments (on 06/02/2025)
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2281&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
Senate Amendment 001 | https://www.ilga.gov/legislation/104/SB/10400SB2281sam001.htm |
BillText | https://www.ilga.gov/legislation/104/SB/10400SB2281.htm |
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