Bill > HB4870

This bill, titled the Preserving Illinois Neighborhoods Act, establishes a tax credit for qualified taxpayers in Illinois who undertake specific construction or renovation projects between January 1, 2027, and December 31, 2032. A "qualified taxpayer" is any individual or entity subject to Illinois income tax. The credit applies to "qualified new construction expenditures," which are costs associated with building a new owner-occupied residence on "eligible property" – residential property in a "qualified area" (an underserved area) that is valued at $300,000 or less before construction, has been vacant for at least two years, or is on the site of a condemned structure. It also covers "qualified rehabilitation expenditures," which are costs for renovating existing single-family homes that are at least 40 years old, also located in a qualified area. The credit is 15% of qualified new construction expenditures, capped at $40,000 per project, and 25% of qualified rehabilitation expenditures. Taxpayers must apply to the Department of Commerce and Economic Opportunity (DCEO) for these credits, which are awarded on a first-come, first-served basis, with a statewide annual limit of $5 million. The DCEO will issue tax credit certificates to be attached to tax returns, and the department is required to report on the program's effectiveness. This act will be repealed on January 1, 2032.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4870&GAID=18&DocTypeID=HB&SessionID=114&GA=104