IL HB2044

Creates the Build Illinois Homes Tax Credit Act, establishing a state income 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, with credits available for taxable years beginning January 1, 2024.

Allows qualified taxpayers to claim credits against Illinois income tax or insurance premium taxes, with excess credits carried forward up to 5 taxable years; credits are allocated ratably over a 10-year credit period following project placement in service.

Requires State credit eligibility statements issued by the Authority for each qualified development, annual allocation schedule certifications by project owners by February 28th, and compliance monitoring with recapture provisions aligned to federal credit recapture events.

Amends the Illinois Income Tax Act and Illinois Insurance Code to permit insurance companies to claim the credit against privilege and retaliatory taxes, with the credit fully offsetting tax amounts owed.