IL HB3658

Creates the "Revitalizing Illinois Downtowns Tax Credit" providing a 20% income tax credit for qualified expenditures to convert office buildings to residential, retail, or other commercial use, effective for tax years beginning January 1, 2026

Qualifying buildings must be at least 25 years old, eligible for federal depreciation, and meet green building certification standards (LEED, ENERGY STAR, Green Globes, or equivalent) or be carbon neutral

Residential conversions must include at least 20% affordable housing units that are rent-restricted and occupied by individuals earning 80% or less of the area median income, with a binding affordable housing financing agreement

Credit is capped at $15,000 per taxpayer annually, though multi-year projects may claim aggregate credits in the final year; total statewide credits cannot exceed $50,000,000 per fiscal year

Unused credits may be carried forward for 5 years; construction work must be subject to a project labor agreement; credits awarded on first-come, first-served basis