SB3731 - Build Illinois Homes Tax Credit Act

• Creates a state tax credit for owners of qualified low-income housing developments that receive federal low-income housing tax credits under Section 42 of the Internal Revenue Code.

• 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, starting in 2023.

• Credits can be claimed against Illinois income tax or insurance premium taxes and carried forward for up to 5 years if unused; credits are recaptured proportionately if the development loses federal tax credit eligibility.

• Requires state credit eligibility statements issued by authorities, annual allocation schedule certifications filed by February 28th, and compliance monitoring to ensure developments maintain low-income housing requirements.

• Exempts the credit from automatic sunset provisions and requires annual reporting to the General Assembly on allocated credits, qualifying developments, units supported, and demographic information.