IL SB2922

Amends Illinois Income Tax Act to create a Middle-Income Housing Development Tax Credit Pilot Program for taxable years ending December 31, 2024 through December 31, 2027.

Provides tax credits to developers of single-family residences with development costs up to $200,000, with credit amounts ranging from 15% to 20% of development costs depending on buyer household income relative to median Illinois household income, capped at $20,000 to $40,000 per residence.

Limits total credits issued to $50,000,000, with 35% of credits reserved for residences in counties with 100,000 to 350,000 residents, and individual developers limited to $2,000,000 per project.

Allows unused credits to be carried forward for 5 taxable years and permits pass-through to partners and shareholders of partnerships and S-corporations, with ability to transfer credits during the 5-year carryforward period.

Requires Illinois Housing Development Authority to adopt implementing rules and determine median household income using U.S. Census Bureau data, excluding development costs funded by non-repayable federal, state, or local incentives from credit calculations.