IL HB4870

Creates a state income tax credit for new construction (15% of expenditures) and rehabilitation (25% of expenditures) of residential properties in underserved areas, effective for tax years 2027-2032.

Eligible properties must have a market value of $300,000 or less and be either vacant for at least 2 years or condemned by local government.

New construction credits are capped at $40,000 per project, with a minimum expenditure requirement of $10,000 to qualify.

Total statewide credits are limited to $5,000,000 per calendar year, distributed on a first-come, first-served basis.

Department of Commerce and Economic Opportunity must report to the Governor and General Assembly on program effectiveness by December 31, 2028 and every even-numbered year through 2032.