Illinois General Assembly Passes Bill, Establishing Statewide Historic Preservation Tax Credits
ILLINOIS GENERAL ASSEMBLY PASSES BILL, ESTABLISHING STATEWIDE HISTORIC PRESERVATION TAX CREDITS
If signed into law, the bill would be a boon for developers of historic properties in Illinois
June 12, 2018 | Earlier this month, the Illinois General Assembly passed SB3527, a bill which both amends and expands the River Edge Redevelopment Zone Historic Tax Credit (RERZ) and establishes a new statewide Illinois Historic Preservation Tax Credit, effectively incenting developers to undertake historic reuse projects across Illinois.
If signed into law, the bill would extend the 2012 RERZ “pilot” credit to historic redevelopments throughout the state; originally it applied only to qualifying projects in Aurora, East St. Louis, Elgin, Peoria and Rockford. Additionally, the creation of a new statewide Illinois Historic Preservation Tax Credit would provide for up to $3 million in state tax credits for each development that meets one of the following criteria:
- The building located in a county bordering a state with a state historic tax credit
- The building previously was owned by a federal, state or local government entity
- The structure is located in an eligible census tract where median family income is at or below
the state median
- Development partnerships include a nonprofit or low-profit corporation or community
- The project is situated in an area subject to a Disaster Declaration
This is particularly welcome news for many developers after federal tax reform adopted in 2017 limited the use of federal historic tax credits. The bill is now headed to Governor Rauner’s desk for signature and, if signed into law, will substantially alter the landscape for historic redevelopment and low-income housing in Illinois.
For more information about SB3527 or applying tax credits to your next development, contact Geoff Morgan of Morgan Legal Group.