IL SB2297

Amends the Property Tax Code Section 10-260 to require emphasis on the income approach when determining fair cash value of Section 42 low-income housing tax credit properties.

In counties with more than 3,000,000 inhabitants, assessment officers must consider actual or projected net operating income capitalized at rates for similarly encumbered Section 42 properties.

Capitalization rates must reflect the prevailing cost of capital for similarly encumbered Section 42 properties in the geographic market where the low-income housing project is located.

Beginning with taxable year 2022, all low-income housing projects qualifying for Section 42 tax credits must be assessed under this method if owners certify to the local assessment officer that they qualify for the credit.