SB1848 Summary

• Creates the Build Illinois Homes Tax Credit Act allowing owners of qualified low-income housing developments to claim tax credits against Illinois state income taxes and insurance privilege/retaliatory taxes beginning in taxable year 2022.

• Allocates $35,000,000 annually in tax credits, with 75.5% distributed 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 years.

• Provides a 10-year credit period beginning when the last building in a qualified development is placed in service, with credits claimed ratably each year and available for carryforward up to 5 years if unused.

• Requires qualified developments to maintain recorded restrictive covenants ensuring they operate as low-income housing, with annual compliance certifications filed by owners and an allocation schedule certification submitted by February 28 each year.

• Amends the Illinois Income Tax Act and Illinois Insurance Code to allow tax credits against income taxes under Section 201 and insurance premium taxes under Sections 409 and 444, with credits potentially offsetting these taxes entirely.