SB3787 Summary

• Creates the Build Illinois Homes Tax Credit Act providing tax credits for qualified low-income housing projects allocated by the Illinois Housing Development Authority and City of Chicago Department of Housing, effective for taxable years beginning January 1, 2021.

• Allows credits to be claimed against Illinois Income Tax Act taxes or any retaliatory or privilege taxes under the Illinois Insurance Code, with unused credits carried forward for up to 5 years.

• Establishes annual allocation cap of $35,000,000 in credits per allocation round, with 75.5% allocated by the Illinois Housing Development Authority and 24.5% by the City of Chicago Department of Housing, plus any unallocated or recaptured credits from prior rounds.

• Credits apply for a 10-year credit period starting when a qualified development is placed in service and can be transferred among pass-through entity partners, shareholders, and members, with recapture provisions mirroring federal tax credit recapture requirements.

• Requires the Illinois Housing Development Authority to submit annual reports to the General Assembly detailing qualified developments funded, number of units supported, demographic information, and percentage of developments receiving minority/women/disability business enterprise incentive points.