BUILD ILLINOIS HOMES ACT

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB0062

Introduced 1/13/2025, by Sen. Robert Peters

SYNOPSIS AS INTRODUCED:

New Act
35 ILCS 5/246 new
215 ILCS 5/409

from Ch. 73, par. 1021
215 ILCS 5/444

from Ch. 73, par. 1056

Creates the Build Illinois Homes Tax Credit Act. Provides that owners
of qualified low-income housing developments are eligible for credits
against the taxes imposed by the Illinois Income Tax Act or taxes,
penalties, fees, charges, and payments imposed by the Illinois Insurance
Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to
make conforming changes. Effective immediately.
LRB104 03041 HLH 13059 b

A BILL FOR

SB0062
LRB104 03041 HLH 13059 b
1

AN ACT concerning revenue.

2

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

4

Section 1.
Short title.
This Act may be cited as the
Build
5
Illinois Homes Tax Credit Act.

6

Section 5.
Definitions.
As used in this Act, unless the
7
context clearly requires otherwise:
8

"Allocation schedule certification" means a certification
9
issued by the owner of a qualified development, or by the
10
owner's designee, under subsection (d) of Section 15 of this
11
Act. The certification shall include the following:
12

(1) the building identification number for each
13

building included in the qualified development;
14

(2) the calendar year in which the last building of
15

the qualified development was placed in service;
16

(3) the amount of the credit allowed for each year of
17

the credit period;
18

(4) the amount of credit allocated to each qualified
19

taxpayer for the qualified development for the applicable
20

tax year; and
21

(5) confirmation of whether each qualified taxpayer
22

elects to apply the credit to income tax or insurance
23

premium tax.

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"Authority" means:
2

(1) the Illinois Housing Development Authority; or
3

(2) the City of Chicago Department of Housing.
4

"Building identification number" means the number assigned
5
to a building within the qualified development by an Authority
6
when allocating the federal tax credit.
7

"Credit" means the credit allowed under this Act.
8

"Credit period" means a period of 6 taxable years
9
beginning with the taxable year in which a qualified
10
development is placed in service. No credit period may include
11
a taxable year beginning prior to January 1, 2026. If a
12
qualified development consists of more than one building, then
13
the qualified development is deemed to be placed in service in
14
the taxable year in which the last building of the qualified
15
development is placed in service.
16

"Department" means the Department of Revenue.
17

"Federal tax credit" means the federal low-income housing
18
tax credit provided by Section 42 of the federal Internal
19
Revenue Code, including federal low-income housing tax credits
20
issued under 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
21

"Qualified basis" means the qualified basis of the
22
qualified development as determined under Section 42 of the
23
federal Internal Revenue Code of 1986.
24

"Qualified development" means a qualified low-income
25
housing project, as that term is defined in Section 42 of the
26
federal Internal Revenue Code of 1986, that is located in the

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State and is determined to be eligible for the federal tax
2
credit set forth in Section 42 of the Internal Revenue Code.
3

"Qualified taxpayer" means an individual, person, firm,
4
corporation, or other entity that owns a direct or indirect
5
interest in a qualified development and that is subject to the
6
taxes imposed by subsections (a) and (b) of Section 201 of the
7
Illinois Income Tax Act or any privilege tax or retaliatory
8
tax, penalty, fee, charge, or payment imposed by the Illinois
9
Insurance Code.
10

"Reservation letter" means a reservation letter issued by
11
the Illinois Housing Development Authority or a reservation
12
agreement issued by the City of Chicago Department of Housing.
13

"State credit eligibility statement" means a statement
14
issued by an Authority under Section 10 or documents submitted
15
in satisfaction of a statement as allowed under Section 10.
16

"State tax return" means the income tax return filed with
17
the Department or the privilege and retaliatory tax return
18
filed with the Department of Insurance, as applicable.

19

Section 10.
State credit eligibility statements.
Following
20
construction or rehabilitation of the qualified development,
21
the applicable Authority shall issue a State credit
22
eligibility statement with respect to each building located in
23
the qualified development certifying that the building
24
qualifies for the credit under this Act and specifying:
25

(1) the calendar year in which the last building of

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the qualified development was placed in service;
2

(2) the amount of the credit allowed for each year of
3

the credit period;
4

(3) the maximum qualified basis of the qualified
5

development taken into account in determining such annual
6

credit amount;
7

(4) a building identification number; and
8

(5) that the qualified development is eligible for and
9

has applied to receive a federal tax credit.
10

The State credit eligibility statement shall be issued by
11
an Authority simultaneously with IRS Form 8609. For taxable
12
years beginning on or after January 1, 2026 and beginning
13
before January 1, 2027, an Authority may issue, and the
14
Department and Department of Insurance may accept, an IRS Form
15
8609, including any additional statements attached to the IRS
16
Form 8609, and the reservation letter issued by the Authority
17
for the qualified development as the State credit eligibility
18
statement in satisfaction of both federal requirements and the
19
requirements set forth in this Section.
20

The State credit eligibility statement shall include a
21
section to be completed by the owner of the qualified
22
development annually for each year of the credit period
23
certifying that the qualified development conforms with all
24
compliance requirements, including all federal compliance
25
requirements for the federal tax credit. The State credit
26
eligibility statement shall be filed with the project owner's

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State tax return annually for each year of the credit period.

2

Section 15.
Credit for low-income housing developments.
3

(a) An Authority shall administer the credit in accordance
4
with the federal tax credit and shall award the credit
5
simultaneously with the award of the federal tax credit.
6

(a-5) For taxable years beginning on or after January 1,
7
2026 and beginning before January 1, 2031, an Authority may
8
award a credit to the owner of a qualified development
9
simultaneous with the federal tax credit in an amount
10
determined by an Authority, subject to the following
11
guidelines:
12

(1) an Authority must find that the credit is
13

necessary for the financial feasibility of the qualified
14

development;
15

(2) the aggregate amount of credits awarded to
16

qualified developments for each calendar year shall not
17

exceed $20,000,000, plus the amount of unallocated
18

credits, if any, from the preceding calendar year, plus
19

the amount of any credit recaptured or otherwise returned
20

to an Authority since the preceding calendar year;
21

(3) of the $20,000,000 annual allocation:
22

(A) 75.5% of the available credits for each
23

calendar year shall be awarded by the Illinois Housing
24

Development Authority, plus any credits the Illinois
25

Housing Development Authority did not award from prior

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calendar years, plus the amount of any credits
2

recaptured or otherwise returned to the Illinois
3

Housing Development Authority from prior calendar
4

years; and
5

(B) 24.5% of the available credits in each
6

calendar year shall be awarded by the City of Chicago
7

Department of Housing, plus any credits the City of
8

Chicago Department of Housing did not award from prior
9

calendar years, plus the amount of any credits
10

recaptured or otherwise returned to the City of
11

Chicago Department of Housing since the prior calendar
12

year; and
13

(4) unless otherwise provided in this Act, or unless
14

the context clearly requires otherwise, an Authority must
15

determine eligibility for credits and award credits in
16

accordance with the standards and requirements set forth
17

in Section 42 of the federal Internal Revenue Code of 1986
18

and, to the extent possible, use the same forms that are
19

used in administering the credit under Section 42 of the
20

federal Internal Revenue Code of 1986.
21

(b) For tax years during the credit period, any qualified
22
taxpayer is allowed a credit, as provided in this Act, against
23
either of the following: (i) the taxes imposed by subsections
24
(a) and (b) of Section 201 of the Illinois Income Tax Act; or
25
(ii) any privilege tax or retaliatory tax, penalty, fee,
26
charge, or payment imposed under the Illinois Insurance Code

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1
as provided in subsection (e-5).
2

(b-5) The amount of credit awarded pursuant to a
3
reservation letter shall be claimable in each year of the
4
credit period.
5

(c) A qualified taxpayer may claim a credit under this Act
6
so long as the taxpayer's direct or indirect interest in the
7
qualified development is acquired prior to the filing of its
8
tax return claiming the credit. On or before March 31
9
following each year of the credit period, the owner must
10
submit to the Department, the Department of Insurance, and the
11
applicable Authority an allocation schedule certification, in
12
an electronic format prescribed by the Department, the
13
Department of Insurance, and the Authority, respectively,
14
detailing the amount of the credit allocated to the qualified
15
taxpayer for the applicable year and stating whether the
16
qualified taxpayer has elected to claim the credit against the
17
taxpayer's State income tax or insurance privilege tax or
18
retaliatory tax liability. The taxpayer may assign to a
19
designee the duty of preparing and submitting the allocation
20
schedule certification. In that case, the designee must
21
provide the allocation schedule certification to the
22
Department, the Department of Insurance, and the applicable
23
Authority on or before the deadline for submission. The
24
qualified taxpayer must notify the Department, the Department
25
of Insurance, and the applicable Authority if it assigns that
26
duty to its designee.

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The allocation schedule certification submitted under this
2
Section may be amended if the State credit eligibility
3
statement for a project is received after the deadline for
4
filing the allocation schedule certification or if all credits
5
have not been awarded by the deadline for filing the
6
allocation schedule certification. Any amendment to an
7
allocation schedule certification shall be filed before the
8
taxpayer attempts to claim tax credits associated with the
9
applicable State credit eligibility statement. Each qualified
10
taxpayer is allowed to claim its awarded amount of credit
11
subject to any restrictions set forth in this Section. If the
12
credit is to be taken against the income tax and the qualified
13
taxpayer is a pass-through entity, then the provisions of
14
Section 251 of the Illinois Income Tax Act apply.
15

(d) No credit may be awarded under this Act unless the
16
qualified development is the subject of a recorded restrictive
17
covenant requiring the development to be maintained and
18
operated as a qualified development; this requirement for a
19
recorded restrictive covenant may be satisfied by the
20
agreement for an extended low-income housing commitment
21
required for the federal tax credits as defined in Section
22
42(h)(6)(B) of the federal Internal Revenue Code of 1986.
23

(e) If, during a taxable year, there is a determination
24
that no recorded restrictive covenant meeting the requirements
25
of subsection (d) was in effect as of the beginning of that
26
year, the determination shall not apply to any period before

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that year and subsection (e) shall be applied without regard
2
to that determination if the failure is corrected within one
3
year after the date of the determination.
4

(e-5) For tax years ending during the credit period, any
5
qualified taxpayer is allowed a credit as provided in this Act
6
against the taxes imposed by subsections (a) and (b) of
7
Section 201 of the Illinois Income Tax Act, unless the
8
qualified taxpayer elects to claim the credit against any
9
privilege tax or retaliatory tax, penalty, fee, charge, or
10
payment imposed under the Illinois Insurance Code. Those
11
elections shall be submitted by the owner of the qualified
12
development in the annual allocation schedule certification as
13
provided in subsection (c) of this Section.
14

(f) The tax credit under this Act may not reduce the
15
taxpayer's liability to less than zero. If the amount of the
16
tax credit exceeds the tax liability for the year, the excess
17
may be carried forward and applied to the tax liability of the
18
5 taxable years following the excess credit year. The credit
19
must be applied to the earliest year for which there is a tax
20
liability. If there are credits from more than one tax year
21
that are available to offset a liability, then the earlier
22
credit must be applied first. Credits that are initially
23
claimed against taxes imposed by the Illinois Income Tax Act
24
may be carried forward only against the taxpayer's future
25
Illinois Income Tax liability. Credits that are initially
26
claimed against taxes, penalties, fees, charges, and payments

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1
imposed by the Illinois Insurance Code may be carried forward
2
only against taxes, penalties, fees, charges, and payments
3
imposed by the Illinois Insurance Code. Credits that are not
4
claimed or carried forward may not be refunded to the
5
taxpayer. The qualified taxpayer is solely responsible for
6
correctly filing tax returns, and an Authority is not
7
responsible for monitoring the calculation of taxes under this
8
Section.
9

(g) By March 31, 2026 and by March 31 of each year
10
thereafter, each Authority shall provide to the Department and
11
the Department of Insurance an electronic file containing all
12
data related to all State credit eligibility statements issued
13
during the preceding year in the manner and form as provided by
14
each respective Department.
15

(h) Each Authority is entitled to a reservation fee of 1%
16
of the credit awarded under this Section for each year of the
17
award to support the cost of compliance monitoring. An
18
Authority may exercise the option to impose a compliance fee
19
or a penalty in the exercise of its compliance monitoring
20
function under this Act.

21

Section 20.
Recapture.
If, under Section 42 of the
22
Internal Revenue Code, a portion of any federal tax credit
23
claimed with respect to a qualified development for which a
24
credit has been awarded under this Act is required by a final
25
determination by the Internal Revenue Service or a court of

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LRB104 03041 HLH 13059 b
1
law with competent jurisdiction to be recaptured during the
2
first 6 years after a project is placed in service, then,
3
within 60 days after becoming aware of the federal tax credit
4
recapture, unless the taxpayer successfully disputes the
5
recapture, the project owner shall provide the Department, the
6
Department of Insurance, and the applicable Authority with
7
notice of the federal tax credit recapture. Notice shall be
8
provided in the manner and form as provided by the Department,
9
the Department of Insurance, and the Authority, respectively.
10
If an Authority issues a federal Form 8823 to the owner of a
11
qualified development that has been awarded a credit under
12
this Act, and an Authority has not been notified within 6
13
months of filing the Form 8823 that the noncompliance has been
14
remedied, an Authority shall submit the Form 8823 to the
15
Department or Department of Insurance, as applicable. The
16
amount of credit subject to recapture shall be proportionately
17
equal to the amount of the qualified development's federal tax
18
credits that are subject to recapture. If the project owner
19
(or one of the project owner's direct or indirect members)
20
fails to notify the Department or the Department of Insurance,
21
as applicable, of any final determination of recapture of the
22
federal tax credit, then the entire amount of the State tax
23
credit awarded for the qualified development may be subject to
24
recapture. The qualified taxpayer subject to recapture shall
25
increase the qualified taxpayer's tax by the amount of any
26
credit subject to recapture in the tax year the qualified

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1
taxpayer is notified of the recapture. If multiple taxpayers
2
claimed credit with respect to the building for which credit
3
is to be recaptured, each of those taxpayers shall be liable
4
for a portion of the recapture equal to the percentages of
5
credit with respect to the building originally claimed by the
6
taxpayer.

7

Section 25.
Filing requirements.
An owner of a qualified
8
development that has been awarded a credit and each qualified
9
taxpayer claiming any portion of the credit must file with
10
their State tax returns a copy of the State credit eligibility
11
statement issued by an Authority for that qualified
12
development. In addition, the owner of a qualified development
13
or its designee shall file a copy of the allocation schedule
14
certification and reservation letter prior to any tax return
15
being filed claiming a State credit for such qualified
16
development. A qualified taxpayer receiving any allocated
17
portion of a credit through a pass-through entity shall attach
18
to its State tax return a copy of the Schedule K-1-P for that
19
taxable year.

20

Section 30.
Compliance monitoring.
An Authority, in
21
consultation with the Department and Department of Insurance,
22
shall monitor and oversee compliance with the provisions of
23
this Act and shall report specific occurrences of
24
noncompliance to the Department and the Department of

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1
Insurance in the manner and form as provided by the Department
2
and the Department of Insurance. An Authority shall make every
3
effort to monitor and report noncompliance using the same
4
procedures used for compliance monitoring of the federal tax
5
credits.

6

Section 35.
Report to the General Assembly.
7

(a) Each Authority must, by March 31, 2027 and by March 31
8
of each year thereafter, provide a written report to the
9
General Assembly and must publish that report on its website.
10

(b) The report shall:
11

(1) set forth the number of qualified developments
12

that have been awarded tax credits under this Act during
13

the calendar year and the total number of units supported
14

by each qualified development;
15

(2) describe each qualified development that has been
16

awarded tax credits under this Act, including, without
17

limitation, the geographic location of the qualified
18

development, the household type, the income levels
19

intended to be served by the qualified development, and
20

the rents or set-asides authorized for each qualified
21

development;
22

(3) provide housing market information that
23

demonstrates how the qualified developments supported by
24

the tax credits are addressing the need for affordable
25

housing within the communities they are intended to serve

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1

as well as information about any remaining disparities in
2

the affordability of housing within those communities; and
3

(4) provide information about the percentage of
4

qualified developments that were awarded credits and that
5

received incentive scoring points as a result of the
6

general contractor, property manager, architect, or
7

sponsor being certified under the Business Enterprise
8

Program for Minorities, Females, and Persons with a
9

Disability.

10

Section 900.
The Illinois Income Tax Act is amended by
11
adding Section 246 as follows:

12

(35 ILCS 5/246 new)
13

Sec. 246.
Build Illinois Homes Tax Credit Act.
14

(a) For taxable years beginning on or after January 1,
15
2026 and until the expiration of the program under the Build
16
Illinois Homes Tax Credit Act, any eligible taxpayer with
17
respect to a credit awarded in accordance with the Build
18
Illinois Homes Tax Credit Act that is named on an allocation
19
schedule certification for a particular tax year is entitled
20
to a credit against the taxes imposed by subsections (a) and
21
(b) of Section 201 as provided in the Build Illinois Homes Tax
22
Credit Act.
23

(b) The taxpayer shall attach a copy of the allocation
24
schedule certification and the State credit eligibility

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1
certificate issued under the Build Illinois Homes Tax Credit
2
Act to the tax return on which the credits are to be claimed.
3

(c) If, during any taxable year, a taxpayer is notified of
4
a final determination that a credit previously claimed on a
5
State income tax return in accordance with 26 U.S.C. 42 has
6
been recaptured, the tax imposed under subsections (a) and (b)
7
of Section 201 for that taxpayer for that taxable year shall be
8
increased. The amount of the increase shall be determined by
9
(i) recomputing the Build Illinois Homes Tax Credit that would
10
have been allowed for the year in which the credit was
11
originally allowed by eliminating the recaptured amount from
12
such computation and (ii) subtracting that recomputed credit
13
from the amount of credit previously allowed. No Build
14
Illinois Homes Tax Credit shall be allowed with respect to any
15
credit subject to a final determination of recapture for any
16
taxable year ending after the issuance of a recapture notice.

17

Section 905.
The Illinois Insurance Code is amended by
18
changing Sections 409 and 444 as follows:

19

(215 ILCS 5/409)

(from Ch. 73, par. 1021)
20

Sec. 409.
Annual privilege tax payable by companies.
21

(1) As of January 1, 1999 for all health maintenance
22
organization premiums written; as of July 1, 1998 for all
23
premiums written as accident and health business, voluntary
24
health service plan business, dental service plan business, or

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1
limited health service organization business; and as of
2
January 1, 1998 for all other types of insurance premiums
3
written, every company doing any form of insurance business in
4
this State, including, but not limited to, every risk
5
retention group, and excluding all fraternal benefit
6
societies, all farm mutual companies, all religious charitable
7
risk pooling trusts, and excluding all statutory residual
8
market and special purpose entities in which companies are
9
statutorily required to participate, whether incorporated or
10
otherwise, shall pay, for the privilege of doing business in
11
this State, to the Director for the State treasury a State tax
12
equal to 0.5% of the net taxable premium written, together
13
with any amounts due under Section 444 of this Code, except
14
that the tax to be paid on any premium derived from any
15
accident and health insurance or on any insurance business
16
written by any company operating as a health maintenance
17
organization, voluntary health service plan, dental service
18
plan, or limited health service organization shall be equal to
19
0.4% of such net taxable premium written, together with any
20
amounts due under Section 444. Upon the failure of any company
21
to pay any such tax due, the Director may, by order, revoke or
22
suspend the company's certificate of authority after giving 20
23
days written notice to the company, or commence proceedings
24
for the suspension of business in this State under the
25
procedures set forth by Section 401.1 of this Code. The gross
26
taxable premium written shall be the gross amount of premiums

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1
received on direct business during the calendar year on
2
contracts covering risks in this State, except premiums on
3
annuities, premiums on which State premium taxes are
4
prohibited by federal law, premiums paid by the State for
5
health care coverage for Medicaid eligible insureds as
6
described in Section 5-2 of the Illinois Public Aid Code,
7
premiums paid for health care services included as an element
8
of tuition charges at any university or college owned and
9
operated by the State of Illinois, premiums on group insurance
10
contracts under the State Employees Group Insurance Act of
11
1971, and except premiums for deferred compensation plans for
12
employees of the State, units of local government, or school
13
districts. The net taxable premium shall be the gross taxable
14
premium written reduced only by the following:
15

(a) the amount of premiums returned thereon which
16

shall be limited to premiums returned during the same
17

preceding calendar year and shall not include the return
18

of cash surrender values or death benefits on life
19

policies including annuities;
20

(b) dividends on such direct business that have been
21

paid in cash, applied in reduction of premiums or left to
22

accumulate to the credit of policyholders or annuitants.
23

In the case of life insurance, no deduction shall be made
24

for the payment of deferred dividends paid in cash to
25

policyholders on maturing policies; dividends left to
26

accumulate to the credit of policyholders or annuitants

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shall be included as gross taxable premium written when
2

such dividend accumulations are applied to purchase
3

paid-up insurance or to shorten the endowment or premium
4

paying period.
5

(2) The annual privilege tax payment due from a company
6
under subsection (4) of this Section may be reduced by: (a) the
7
excess amount, if any, by which the aggregate income taxes
8
paid by the company, on a cash basis, for the preceding
9
calendar year under Sections 601 and 803 of the Illinois
10
Income Tax Act exceed 1.5% of the company's net taxable
11
premium written for that prior calendar year, as determined
12
under subsection (1) of this Section; and (b) the amount of any
13
fire department taxes paid by the company during the preceding
14
calendar year under Section 11-10-1 of the Illinois Municipal
15
Code. Any deductible amount or offset allowed under items (a)
16
and (b) of this subsection for any calendar year will not be
17
allowed as a deduction or offset against the company's
18
privilege tax liability for any other taxing period or
19
calendar year.
20

(3) If a company survives or was formed by a merger,
21
consolidation, reorganization, or reincorporation, the
22
premiums received and amounts returned or paid by all
23
companies party to the merger, consolidation, reorganization,
24
or reincorporation shall, for purposes of determining the
25
amount of the tax imposed by this Section, be regarded as
26
received, returned, or paid by the surviving or new company.

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(4)(a) All companies subject to the provisions of this
2
Section shall make an annual return for the preceding calendar
3
year on or before March 15 setting forth such information on
4
such forms as the Director may reasonably require. Payments of
5
quarterly installments of the taxpayer's total estimated tax
6
for the current calendar year shall be due on or before April
7
15, June 15, September 15, and December 15 of such year, except
8
that all companies transacting insurance in this State whose
9
annual tax for the immediately preceding calendar year was
10
less than $5,000 shall make only an annual return. Failure of a
11
company to make the annual payment, or to make the quarterly
12
payments, if required, of at least 25% of either (i) the total
13
tax paid during the previous calendar year or (ii) 80% of the
14
actual tax for the current calendar year shall subject it to
15
the penalty provisions set forth in Section 412 of this Code.
16

(b) Notwithstanding the foregoing provisions, no annual
17
return shall be required or made on March 15, 1998, under this
18
subsection. For the calendar year 1998:
19

(i) each health maintenance organization shall have no
20

estimated tax installments;
21

(ii) all companies subject to the tax as of July 1,
22

1998 as set forth in subsection (1) shall have estimated
23

tax installments due on September 15 and December 15 of
24

1998 which installments shall each amount to no less than
25

one-half of 80% of the actual tax on its net taxable
26

premium written during the period July 1, 1998, through

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December 31, 1998; and
2

(iii) all other companies shall have estimated tax
3

installments due on June 15, September 15, and December 15
4

of 1998 which installments shall each amount to no less
5

than one-third of 80% of the actual tax on its net taxable
6

premium written during the calendar year 1998.
7

In the year 1999 and thereafter all companies shall make
8
annual and quarterly installments of their estimated tax as
9
provided by paragraph (a) of this subsection.
10

(5) In addition to the authority specifically granted
11
under Article XXV of this Code, the Director shall have such
12
authority to adopt rules and establish forms as may be
13
reasonably necessary for purposes of determining the
14
allocation of Illinois corporate income taxes paid under
15
subsections (a) through (d) of Section 201 of the Illinois
16
Income Tax Act amongst members of a business group that files
17
an Illinois corporate income tax return on a unitary basis,
18
for purposes of regulating the amendment of tax returns, for
19
purposes of defining terms, and for purposes of enforcing the
20
provisions of Article XXV of this Code. The Director shall
21
also have authority to defer, waive, or abate the tax imposed
22
by this Section if in his opinion the company's solvency and
23
ability to meet its insured obligations would be immediately
24
threatened by payment of the tax due.
25

(6) This Section is subject to the provisions of Section
26
10 of the New Markets Development Program Act.

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(7) This Section is subject to the provisions of the Build
2
Illinois Homes Tax Credit Act.

3
(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)

4

(215 ILCS 5/444)

(from Ch. 73, par. 1056)
5

Sec. 444.
Retaliation.
6

(1) Whenever the existing or future laws of any other
7
state or country shall require of companies incorporated or
8
organized under the laws of this State as a condition
9
precedent to their doing business in such other state or
10
country, compliance with laws, rules, regulations, and
11
prohibitions more onerous or burdensome than the rules and
12
regulations imposed by this State on foreign or alien
13
companies, or shall require any deposit of securities or other
14
obligations in such state or country, for the protection of
15
policyholders or otherwise or require of such companies or
16
agents thereof or brokers the payment of penalties, fees,
17
charges, or taxes greater than the penalties, fees, charges,
18
or taxes required in the aggregate for like purposes by this
19
Code or any other law of this State, of foreign or alien
20
companies, agents thereof or brokers, then such laws, rules,
21
regulations, and prohibitions of said other state or country
22
shall apply to companies incorporated or organized under the
23
laws of such state or country doing business in this State, and
24
all such companies, agents thereof, or brokers doing business
25
in this State, shall be required to make deposits, pay

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penalties, fees, charges, and taxes, in amounts equal to those
2
required in the aggregate for like purposes of Illinois
3
companies doing business in such state or country, agents
4
thereof or brokers. Whenever any other state or country shall
5
refuse to permit any insurance company incorporated or
6
organized under the laws of this State to transact business
7
according to its usual plan in such other state or country, the
8
director may, if satisfied that such company of this State is
9
solvent, properly managed, and can operate legally under the
10
laws of such other state or country, forthwith suspend or
11
cancel the license of every insurance company doing business
12
in this State which is incorporated or organized under the
13
laws of such other state or country to the extent that it
14
insures in this State against any of the risks or hazards which
15
are sought to be insured against by the company of this State
16
in such other state or country.
17

(2) The provisions of this Section shall not apply to
18
residual market or special purpose assessments or guaranty
19
fund or guaranty association assessments, both under the laws
20
of this State and under the laws of any other state or country,
21
and any tax offset or credit for any such assessment shall, for
22
purposes of this Section, be treated as a tax paid both under
23
the laws of this State and under the laws of any other state or
24
country.
25

(3) The terms "penalties", "fees", "charges", and "taxes"
26
in subsection (1) of this Section shall include: the

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penalties, fees, charges, and taxes collected on a cash basis
2
under State law and referenced within Article XXV exclusive of
3
any items referenced by subsection (2) of this Section, but
4
including any tax offset allowed under Section 531.13 of this
5
Code; the aggregate Illinois corporate income taxes paid under
6
Sections 601 and 803 of the Illinois Income Tax Act during the
7
calendar year for which the retaliatory tax calculation is
8
being made, less the recapture of any Illinois corporate
9
income tax cash refunds to the extent that the amount of tax
10
refunded was reported as part of the Illinois basis in the
11
calculation of the retaliatory tax for a prior tax year,
12
provided that such recaptured refund shall not exceed the
13
amount necessary for equivalence of the Illinois basis with
14
the state of incorporation basis in such tax year, and after
15
any tax offset allowed under Section 531.13 of this Code;
16
income or personal property taxes imposed by other states or
17
countries; penalties, fees, charges, and taxes of other states
18
or countries imposed for purposes like those of the penalties,
19
fees, charges, and taxes specified in Article XXV of this Code
20
exclusive of any item referenced in subsection (2) of this
21
Section; and any penalties, fees, charges, and taxes required
22
as a franchise, privilege, or licensing tax for conducting the
23
business of insurance whether calculated as a percentage of
24
income, gross receipts, premium, or otherwise.
25

(4) Nothing contained in this Section or Section 409 or
26
Section 444.1 is intended to authorize or expand any power of

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local governmental units or municipalities to impose taxes,
2
fees, or charges.
3

(5) This Section is subject to the provisions of Section
4
10 of the New Markets Development Program Act.
5

(6) This Section is subject to the provisions of the Build
6
Illinois Homes Tax Credit Act.

7
(Source: P.A. 98-1169, eff. 1-9-15.)

8

Section 999.
Effective date.
This Act takes effect upon
9
becoming law.

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