IL HB3412

Creates the Preserving Illinois Neighborhoods Act providing state income tax credits for residential construction and rehabilitation in underserved areas from January 1, 2026 through December 31, 2031

Tax credit equals 15% of qualified new construction expenditures for building owner-occupied residences on eligible property, with a maximum credit of $40,000 per project and minimum $10,000 in expenditures required

Tax credit equals 25% of qualified rehabilitation expenditures for renovating single-family residences that are 40 years or older on eligible property

Eligible property must have a market value of $300,000 or less prior to work, be located in a designated underserved area, and either be vacant for at least 2 years or contain a condemned structure

Department of Commerce and Economic Opportunity administers the program with a cap of $5,000,000 in total credits awarded annually on a first-come, first-served basis; the Act repeals on January 1, 2032