IL HB4909

Creates the Build Illinois Homes Tax Credit Act providing tax credits to owners of qualified low-income housing developments for taxable years beginning January 1, 2025 or later.

Establishes a $20,000,000 annual credit allocation with 75.5% directed to the Illinois Housing Development Authority and 24.5% to the City of Chicago Department of Housing, plus carryover of unused credits.

Allows qualified taxpayers to claim credits against Illinois income taxes or insurance privilege and retaliatory taxes, with credits carried forward up to 5 years if they exceed current year liability.

Requires a 6-year credit period beginning when a qualified development is placed in service, with state credit eligibility statements issued simultaneously with federal Form 8609.

Implements compliance monitoring through the authorities, with recapture provisions mirroring federal tax credit rules and 1% reservation fees to support monitoring costs.