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HB0881 - 104th General Assembly

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HB0881 Engrossed
LRB104 04779 SPS 14806 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Income Tax Act is amended by
5
changing Sections 214, 223, and 240 as follows:

6

(35 ILCS 5/214)
7

Sec. 214.
Tax credit for affordable housing donations.
8

(a) Beginning with taxable years ending on or after
9
December 31, 2001 and until the taxable year ending on
10
December 31, 2026, a taxpayer who makes a donation under
11
Section 7.28 of the Illinois Housing Development Act is
12
entitled to a credit against the tax imposed by subsections
13
(a) and (b) of Section 201 in an amount equal to 50% of the
14
value of the donation. For taxable years ending before
15
December 31, 2023, partners, shareholders of subchapter S
16
corporations, and owners of limited liability companies (if
17
the limited liability company is treated as a partnership for
18
purposes of federal and State income taxation) are entitled to
19
a credit under this Section to be determined in accordance
20
with the determination of income and distributive share of
21
income under Sections 702 and 703 and subchapter S of the
22
Internal Revenue Code. For taxable years ending on or after
23
December 31, 2023, partners and shareholders of subchapter S

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
corporations are entitled to a credit under this Section as
2
provided in Section 251. Persons or entities not subject to
3
the tax imposed by subsections (a) and (b) of Section 201 and
4
who make a donation under Section 7.28 of the Illinois Housing
5
Development Act are entitled to a credit as described in this
6
subsection and may transfer that credit as described in
7
subsection (c).
8

(b) If the amount of the credit exceeds the tax liability
9
for the year, the excess may be carried forward and applied to
10
the tax liability of the 5 taxable years following the excess
11
credit year. The tax credit shall be applied to the earliest
12
year for which there is a tax liability. If there are credits
13
for more than one year that are available to offset a
14
liability, the earlier credit shall be applied first.
15

(c) The transfer of the tax credit allowed under this
16
Section may be made (i) to the purchaser of land that has been
17
designated solely for affordable housing projects in
18
accordance with the Illinois Housing Development Act or (ii)
19
to another donor who has also made a donation in accordance
20
with Section 7.28 of the Illinois Housing Development Act.
21
Projects funded in whole or in part by the proceeds of tax
22
credits transferred pursuant to this subsection shall be
23
considered public works within the meaning of the Prevailing
24
Wage Act.

25

(d) A taxpayer claiming the credit provided by this
26
Section must maintain and record any information that the

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
Department may require by regulation regarding the project for
2
which the credit is claimed. When claiming the credit provided
3
by this Section, the taxpayer must provide information
4
regarding the taxpayer's donation to the project under the
5
Illinois Housing Development Act.
6
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21;
7
103-396, eff. 1-1-24
.)

8

(35 ILCS 5/223)
9

Sec. 223.
Hospital credit.

10

(a) For tax years ending on or after December 31, 2012 and
11
ending on or before December 31, 2027, a taxpayer that is the
12
owner of a hospital licensed under the Hospital Licensing Act,
13
but not including an organization that is exempt from federal
14
income taxes under the Internal Revenue Code, is entitled to a
15
credit against the taxes imposed under subsections (a) and (b)
16
of Section 201 of this Act in an amount equal to the lesser of
17
the amount of real property taxes paid during the tax year on
18
real property used for hospital purposes during the prior tax
19
year or the cost of free or discounted services provided
20
during the tax year pursuant to the hospital's charitable
21
financial assistance policy, measured at cost.
22

(b) If the taxpayer is a partnership or Subchapter S
23
corporation, the credit is allowed to the partners or
24
shareholders in accordance with the determination of income
25
and distributive share of income under Sections 702 and 704

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
and Subchapter S of the Internal Revenue Code. A transfer of
2
this credit may be made by the taxpayer earning the credit
3
within one year after the credit is earned in accordance with
4
rules adopted by the Department.
Projects funded in whole or
5
in part by the proceeds of tax credits transferred pursuant to
6
this subsection shall be considered public works within the
7
meaning of the Prevailing Wage Act.
The Department shall
8
prescribe rules to enforce and administer provisions of this
9
Section. If the amount of the credit exceeds the tax liability
10
for the year, then the excess credit may be carried forward and
11
applied to the tax liability of the 5 taxable years following
12
the excess credit year. The credit shall be applied to the
13
earliest year for which there is a tax liability. If there are
14
credits from more than one tax year that are available to
15
offset a liability, the earlier credit shall be applied first.
16
In no event shall a credit under this Section reduce the
17
taxpayer's liability to less than zero.
18
(Source: P.A. 102-700, eff. 4-19-22; 102-886, eff. 5-17-22.)

19

(35 ILCS 5/240)
20

Sec. 240.
Hydrogen fuel replacement tax credits.
21

(a) For tax years ending on or after December 31, 2027 and
22
beginning before January 1, 2029, an eligible taxpayer who
23
qualifies for a credit under the Hydrogen Fuel Replacement Tax
24
Credit Act is entitled to a credit against the taxes imposed
25
under subsections (a) and (b) of Section 201 of this Act as

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
provided in that Act. If the eligible taxpayer is a
2
partnership or Subchapter S corporation, the credit shall be
3
allowed to the partners or shareholders in accordance with the
4
determination of income and distributive share of income under
5
Sections 702 and 704 and Subchapter S of the Internal Revenue
6
Code.
7

(b) If the amount of the credit exceeds the tax liability
8
for the year, the excess may be carried forward and applied to
9
the tax liability of the 5 taxable years following the excess
10
credit year. The credit shall be applied to the earliest year
11
for which there is a tax liability. If there are credits from
12
more than one tax year that are available to offset a
13
liability, the earlier credit shall be applied first. In no
14
event shall a credit under this Section reduce the taxpayer's
15
liability to less than zero.
16

(c) A sale, assignment, or transfer of the tax credit may
17
be made by the taxpayer earning the credit within one year
18
after the credit is awarded in accordance with rules adopted
19
by the Department of Commerce and Economic Opportunity.
20
Projects funded in whole or in part by the proceeds of tax
21
credits transferred pursuant to this subsection shall be
22
considered public works within the meaning of the Prevailing
23
Wage Act.

24

(d) A person claiming the credit allowed under this
25
Section shall attach to its Illinois income tax return a copy
26
of the tax credit certificate or the transfer certificate

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
issued by the Department of Commerce and Economic Opportunity.
2
(Source: P.A. 103-268, eff. 7-25-23.)

3

Section 20.
The Prevailing Wage Act is amended by changing
4
Section 2 as follows:

5

(820 ILCS 130/2)
6

Sec. 2.
This Act applies to the wages of laborers,
7
mechanics and other workers employed in any public works, as
8
hereinafter defined, by any public body and to anyone under
9
contracts for public works. This includes any maintenance,
10
repair, assembly, or disassembly work performed on equipment
11
whether owned, leased, or rented.
12

As used in this Act, unless the context indicates
13
otherwise:
14

"Public works" means all fixed works constructed or
15
demolished by any public body, or paid for wholly or in part
16
out of public funds. "Public works" as defined herein includes
17
all projects financed in whole or in part with bonds, grants,
18
loans, or other funds made available by or through the State or
19
any of its political subdivisions, including but not limited
20
to: bonds issued under the Industrial Project Revenue Bond Act
21
(Article 11, Division 74 of the Illinois Municipal Code), the
22
Industrial Building Revenue Bond Act, the Illinois Finance
23
Authority Act, the Illinois Sports Facilities Authority Act,
24
or the Build Illinois Bond Act; loans or other funds made

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
available pursuant to the Build Illinois Act; loans or other
2
funds made available pursuant to the Riverfront Development
3
Fund under Section 10-15 of the River Edge Redevelopment Zone
4
Act;
funds received from the sale or transfer of tax credits
5
awarded by the State, other than tax credits awarded under the
6
Film Production Services Tax Credit Act of 2008 or the Live
7
Theater Production Tax Credit Act;
or funds from the Fund for
8
Illinois' Future under Section 6z-47 of the State Finance Act,
9
funds for school construction under Section 5 of the General
10
Obligation Bond Act, funds authorized under Section 3 of the
11
School Construction Bond Act, funds for school infrastructure
12
under Section 6z-45 of the State Finance Act, and funds for
13
transportation purposes under Section 4 of the General
14
Obligation Bond Act. "Public works" also includes (i) all
15
projects financed in whole or in part with funds from the
16
Environmental Protection Agency under the Illinois Renewable
17
Fuels Development Program Act for which there is no project
18
labor agreement; (ii) all work performed pursuant to a public
19
private agreement under the Public Private Agreements for the
20
Illiana Expressway Act or the Public-Private Agreements for
21
the South Suburban Airport Act; (iii) all projects undertaken
22
under a public-private agreement under the Public-Private
23
Partnerships for Transportation Act or the Department of
24
Natural Resources World Shooting and Recreational Complex Act;
25
and (iv) all transportation facilities undertaken under a
26
design-build contract or a Construction Manager/General

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
Contractor contract under the Innovations for Transportation
2
Infrastructure Act. "Public works" also includes all projects
3
at leased facility property used for airport purposes under
4
Section 35 of the Local Government Facility Lease Act. "Public
5
works" also includes the construction of a new wind power
6
facility by a business designated as a High Impact Business
7
under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone
8
Act, the construction of a new utility-scale solar power
9
facility by a business designated as a High Impact Business
10
under Section 5.5(a)(3)(E-5) of the Illinois Enterprise Zone
11
Act, the construction of a new battery energy storage solution
12
facility by a business designated as a High Impact Business
13
under Section 5.5(a)(3)(I) of the Illinois Enterprise Zone
14
Act, and the construction of a high voltage direct current
15
converter station by a business designated as a High Impact
16
Business under Section 5.5(a)(3)(J) of the Illinois Enterprise
17
Zone Act. "Public works" also includes electric vehicle
18
charging station projects financed pursuant to the Electric
19
Vehicle Act and renewable energy projects required to pay the
20
prevailing wage pursuant to the Illinois Power Agency Act.
21
"Public works" also includes power washing projects by a
22
public body or paid for wholly or in part out of public funds
23
in which steam or pressurized water, with or without added
24
abrasives or chemicals, is used to remove paint or other
25
coatings, oils or grease, corrosion, or debris from a surface
26
or to prepare a surface for a coating. "Public works" also

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
includes all electric transmission systems projects subject to
2
the Electric Transmission Systems Construction Standards Act.
3
"Public works" does not include work done directly by any
4
public utility company, whether or not done under public
5
supervision or direction, or paid for wholly or in part out of
6
public funds. "Public works" also includes construction
7
projects performed by a third party contracted by any public
8
utility, as described in subsection (a) of Section 2.1, in
9
public rights-of-way, as defined in Section 21-201 of the
10
Public Utilities Act, whether or not done under public
11
supervision or direction, or paid for wholly or in part out of
12
public funds. "Public works" also includes construction
13
projects that exceed 15 aggregate miles of new fiber optic
14
cable, performed by a third party contracted by any public
15
utility, as described in subsection (b) of Section 2.1, in
16
public rights-of-way, as defined in Section 21-201 of the
17
Public Utilities Act, whether or not done under public
18
supervision or direction, or paid for wholly or in part out of
19
public funds. "Public works" also includes any corrective
20
action performed pursuant to Title XVI of the Environmental
21
Protection Act for which payment from the Underground Storage
22
Tank Fund is requested. "Public works" also includes all
23
construction projects involving fixtures or permanent
24
attachments affixed to light poles that are owned by a public
25
body, including street light poles, traffic light poles, and
26
other lighting fixtures, whether or not done under public

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
supervision or direction, or paid for wholly or in part out of
2
public funds, unless the project is performed by employees
3
employed directly by the public body. "Public works" also
4
includes work performed subject to the Mechanical Insulation
5
Energy and Safety Assessment Act. "Public works" also includes
6
the removal, hauling, and transportation of biosolids, lime
7
sludge, and lime residue from a water treatment plant or
8
facility and the disposal of biosolids, lime sludge, and lime
9
residue removed from a water treatment plant or facility at a
10
landfill. "Public works" does not include projects undertaken
11
by the owner at an owner-occupied single-family residence or
12
at an owner-occupied unit of a multi-family residence. "Public
13
works" does not include work performed for soil and water
14
conservation purposes on agricultural lands, whether or not
15
done under public supervision or paid for wholly or in part out
16
of public funds, done directly by an owner or person who has
17
legal control of those lands.
18

"Construction" means all work on public works involving
19
laborers, workers or mechanics. This includes any maintenance,
20
repair, assembly, or disassembly work performed on equipment
21
whether owned, leased, or rented.
22

"Locality" means the county where the physical work upon
23
public works is performed, except (1) that if there is not
24
available in the county a sufficient number of competent
25
skilled laborers, workers and mechanics to construct the
26
public works efficiently and properly, "locality" includes any

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
other county nearest the one in which the work or construction
2
is to be performed and from which such persons may be obtained
3
in sufficient numbers to perform the work and (2) that, with
4
respect to contracts for highway work with the Department of
5
Transportation of this State, "locality" may at the discretion
6
of the Secretary of the Department of Transportation be
7
construed to include two or more adjacent counties from which
8
workers may be accessible for work on such construction.
9

"Public body" means the State or any officer, board or
10
commission of the State or any political subdivision or
11
department thereof, or any institution supported in whole or
12
in part by public funds, and includes every county, city,
13
town, village, township, school district, irrigation, utility,
14
reclamation improvement or other district and every other
15
political subdivision, district or municipality of the state
16
whether such political subdivision, municipality or district
17
operates under a special charter or not.
18

"Labor organization" means an organization that is the
19
exclusive representative of an employer's employees recognized
20
or certified pursuant to the National Labor Relations Act.
21

The terms "general prevailing rate of hourly wages",
22
"general prevailing rate of wages" or "prevailing rate of
23
wages" when used in this Act mean the hourly cash wages plus
24
annualized fringe benefits for training and apprenticeship
25
programs approved by the U.S. Department of Labor, Bureau of
26
Apprenticeship and Training, health and welfare, insurance,

HB0881 Engrossed
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LRB104 04779 SPS 14806 b
1
vacations and pensions paid generally, in the locality in
2
which the work is being performed, to employees engaged in
3
work of a similar character on public works.
4
(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
5
102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
6
6-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
7
eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
8
103-605, eff. 7-1-24; 103-1066, eff. 2-20-25.)

9

Section 99.
Effective date.
This Act takes effect upon
10
becoming law.

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