HB0240 Summary: Illinois Rehabilitation and Revitalization Tax Credit Act

• Creates a tax credit equal to 20% of qualified rehabilitation expenditures on certified historic structures in Illinois, applicable to income taxes and insurance company taxes, with credits capped at $3,000,000 per project.

• Requires qualified expenditures to exceed $5,000 or the property's adjusted basis, and allows credits to be carried forward 5 years or back 1 year.

• Establishes annual statewide credit caps: $10,000,000 (FY2016), $20,000,000 (FY2017), $30,000,000 (FY2018), $40,000,000 (FY2019), and $50,000,000 (FY2020), with unused amounts rolling forward to subsequent years.

• Allows taxpayers to assign or transfer credits to other individuals or entities, including non-profits, with Department tracking and certification required.

• For projects requesting $1,000,000 or more in credits, requires Department confirmation that property meets at least 2 functional obsolescence factors (dilapidation, obsolescence, deterioration, code violations, excessive vacancies, etc.) and an economic needs test.

• Effective January 1, 2016, with applications processed by postmark date priority and certification by the National Park Service required for historic structure and rehabilitation plan qualification.