Illinois now has a statewide historic tax Credit
Illinois has expanded their state historic tax credit to make the 25% rehabilitation tax credit available to projects across the state. In its first year (2019), there is a $3 million cap per-project and a $15 million program cap to be allocated during two application rounds in June and September. A total of $75 million will be allocated through the end of the pilot program in 2023.
• QRE must exceed the building’s adjusted basis.
• A project applying for the IL-HTC must also apply for the federal historic tax credit and show National Parks Service Part 2 approval.
• Projects can apply retroactively, but only QREs incurred after January 1, 2019 are eligible.
• The IL-HTC is not transferable.
Application and Allocation Process
Anticipating high demand for a limited pool of credits, Illinois created a semi-annual allocation process. In addition to an approved federal Part 2, applications must document that they meet one or more of the following priorities. Projects that meet the most priorities are allocated first.
• Location in a county bordering another state
• Building formerly owned by a government entity
• Location in census tracts that meet specific program criteria
• Not-for-profit ownership
• Location in an area with a Federal Disaster Declaration
An allocation may be rescinded if the applicant cannot document progress on a project. Rescinded allocations will be made available in future allocation rounds.
Credits are awarded following submittal of an NPS-certified part 3, a cost certification, and a 2% issuance fee.
More information on application process, forms, definitions, and deadlines can be found here https://www2.illinois.gov/dnrhistoric/Preserve/Pages/statecredit.aspx
Contact us to find out how many priorities your project meets. firstname.lastname@example.org