IL SB1178

Creates an income tax credit for developers investing in brownfield or grayfield redevelopment projects, with credits of 10% for brownfields and 5% for grayfields on up to $1,000,000 in rehabilitation costs, available for taxable years December 31, 2025 through December 31, 2028

Caps total credits issued under the program at $20,000,000 and allows unused credits to be carried forward for 5 years; credits may also be transferred to other taxpayers during that period

Provides that municipalities or counties acting as developers receive the credit amount as a grant from the General Revenue Fund rather than a tax credit

Establishes a sales tax exemption for tangible personal property purchased by certified developers for use in rehabilitating brownfield or grayfield properties after environmental remediation

Defines brownfields as former industrial/commercial sites affected by environmental contamination and grayfields as commercial buildings vacant for at least 12 consecutive months, including vacant shopping malls; gives enhanced consideration to projects providing middle-income housing