IL SB3436

Creates the Capital City Redevelopment Zone Act to provide tax incentives and grants for redevelopment of downtown Springfield, Illinois, addressing challenges from declining State office presence and approximately two-thirds of downtown property being non-taxable due to government and nonprofit ownership.

Establishes a zone between one-half and 4 square miles in Springfield's downtown that must be certified by the Department of Commerce and Economic Opportunity, with municipalities required to hold public hearings and submit detailed applications.

Provides a capital city construction jobs income tax credit of 50% of incremental income tax for construction employees, or 75% for projects in underserved areas (defined as areas with 20%+ poverty rate, 20%+ SNAP participation, or unemployment 120%+ of national average).

Creates the Capital City Development Fund for grants to eligible developers and allows adoption of tax increment financing, with businesses in overlapping Enterprise Zone areas required to elect benefits from only one program.

Amends the Illinois Income Tax Act, Retailers' Occupation Tax Act, Property Tax Code, and Environmental Protection Act to incorporate references to the new zone; effective immediately.