HB4496 Summary

• Creates the Master Development Plan Recognition Act to define governmental contributions that qualify as capital contributions under Section 118 of the Internal Revenue Code for tax purposes.

• Specifies eligible contributions include grants from the Department of Commerce and Economic Opportunity, county and municipal agencies, tax increment financing approvals, and other financing under approved development or revitalization plans.

• Amends the Illinois Income Tax Act to allow a deduction for capital contributions made pursuant to a master development plan that are included in the taxpayer's federal taxable income for the taxable year.

• Applies to taxable years ending on or after December 31, 2024, and exempts the deduction from Section 250 limitations.

• Takes effect immediately upon enactment.