HB4533 Summary: Illinois Rehabilitation and Revitalization Tax Credit Act

• Creates a tax credit equal to 20% of qualified expenditures for rehabilitation of certified historic structures, with minimum expenditures of $5,000 or the adjusted property basis and maximum credit of $3,000,000 per project.

• Allows credits against Illinois Income Tax (under Section 201) and Insurance Code taxes (Sections 409, 413, 444, 444.1), with unused credits carried forward up to 5 years or back 1 year.

• Establishes annual credit caps: $10,000,000 in Fiscal Year 2014, increasing to $50,000,000 by Fiscal Year 2018, with unused amounts rolling forward to subsequent years.

• Permits transfer and assignment of credits to other individuals or entities, including non-profits, with Department tracking system; credits are not subject to recapture if subsequently reduced or cancelled.

• Requires qualified rehabilitation projects to meet Secretary of Interior Standards for Rehabilitation certified by National Park Service; projects exceeding $1,000,000 in credits must satisfy functional obsolescence test (2 of 8 factors) and economic needs test.

• Effective January 1, 2015, with preliminary credit approvals withheld until July 1, 2016 and all credits earned by December 31, 2019.