Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3607

Introduced
2/9/24  
Refer
2/9/24  
Refer
2/20/24  

Caption

INC TX-BROWNFIELD

Impact

The enactment of SB3607 is poised to encourage the cleanup and productive use of properties that may otherwise remain abandoned due to contamination issues. By offering financial incentives, the bill aims to bolster local economies, create jobs, and improve environmental conditions. The tax credits are expected to lower the financial barriers for developers and attract private investment in areas critical to urban revitalization efforts. This could potentially lead to new residential and commercial developments, particularly those aimed at middle-income housing, making communities more vibrant and sustainable.

Summary

SB3607, introduced to the Illinois General Assembly, proposes significant tax incentives aimed at encouraging the redevelopment of contaminated properties known as brownfields and underused sites referred to as grayfields. The bill seeks to amend the Illinois Income Tax Act by establishing an income tax credit for developers who invest in qualified redevelopment projects from January 1, 2024, to December 31, 2027. Developers will be eligible for a tax credit amounting to 10% of rehabilitation costs, capped at $1,000,000 for brownfield projects, and 5% for grayfield projects. Additionally, the total credits issued under this program will not exceed $20 million over this same period.

Contention

However, discussions around SB3607 may reveal some points of contention, particularly regarding the effectiveness of tax credits as a means to achieve substantial improvements in local conditions. Some stakeholders might argue that while tax credits could incentivize redevelopment, the actual realization of benefits depends on proper project execution and monitoring. Additionally, there will likely be scrutiny over how the credits are administered and whether they convincingly contribute to community needs versus disproportionately benefiting developers. It remains critical for the bill's guidelines to ensure a balance between fostering economic development and addressing environmental justice concerns.

Companion Bills

No companion bills found.

Previously Filed As

IL SB1178

INC TX-BROWNFIELD

IL H0733

Brownfields

IL HB733

Brownfields:

IL S0736

Brownfields

IL HB808

Creating the Montana brownfields program

IL SB3667

EPA-BROWNFIELDS REDEVELOPMENT

IL HB4960

EPA-BROWNFIELDS REDEVELOPMENT

IL S387

Brownfields Property Reuse Act Revisions

IL A4914

Expands Brownfields Redevelopment Incentive Program to provide tax credits to developers of residential redevelopment projects undertaken on remediated brownfield sites.

IL SB3293

BROWNFIELD PHOTOVOLATIC REGS

Similar Bills

IA HF975

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, arts and culture, and the Iowa reinvestment Act and including applicability and retroactive applicability provisions. (Formerly HSB 221.) Effective date: 07/01/2025. Applicability date: 07/01/2020, 07/01/2025.

IA SF642

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, arts and culture, and the Iowa reinvestment Act and including applicability and retroactive applicability provisions.(Formerly SF 622, SF 465, SSB 1106.)

IL SB1178

INC TX-BROWNFIELD

MO HB1715

Establishes tax incentives in relation to workforce and disaster recovery housing

MO SB565

Establishes the Workforce Housing Tax Incentives Program

MO HB2211

Enacts provisions governing development of the workforce

IA SSB1106

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture, and including applicability and retroactive applicability provisions.(See SF 465, SF 622, SF 642.)

IA HSB221

A bill for an act relating to matters under the purview of the economic development authority and the Iowa finance authority including the strategic infrastructure program, brownfield, grayfield, and redevelopment tax credits, community attraction and tourism, vision Iowa, sports tourism marketing, the historic preservation tax credit, homelessness, the title guaranty board, and arts and culture, and including applicability and retroactive applicability provisions.(See HF 975.)