SB0062 creates the Build Illinois Homes Tax Credit Act, a new state tax credit program tied to the federal low-income housing tax credit under Section 42 of the Internal Revenue Code. The bill authorizes the Illinois Housing Development Authority and the City of Chicago Department of Housing to award state credits to owners of qualified low-income housing developments, and allows those credits to be passed through to qualified taxpayers with an ownership interest in the project. The credit may be applied against Illinois income tax or, for eligible insurance companies and related taxpayers, against taxes and certain other liabilities imposed under the Illinois Insurance Code.
The bill sets out detailed administrative rules for eligibility, allocation, filing, compliance monitoring, recapture, and reporting. It establishes a six-year credit period beginning with the year a project is placed in service, requires a recorded restrictive covenant or equivalent extended-use agreement, and ties state credit awards to federal credit awards and compliance standards. It also requires annual allocation schedule certifications, state credit eligibility statements, and annual reporting to the General Assembly on the number, location, and characteristics of supported housing developments.
Impact
SB0062 would add a new Section 246 to the Illinois Income Tax Act and amend the Illinois Insurance Code to recognize the new credit, making conforming changes to both laws. It would create a state-level housing tax credit program with a $20 million annual cap for taxable years beginning in 2026 through 2030, split between the Illinois Housing Development Authority and the City of Chicago Department of Housing. The bill would also subject insurance premium and retaliatory tax provisions to the new credit, and it would require the Department of Revenue and Department of Insurance to administer the credit in coordination with the housing authorities.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the available context suggests the measure is presented as a pro-housing, pro-affordable-development initiative rather than a controversial policy change. The structure of the bill emphasizes alignment with the federal low-income housing tax credit program, compliance oversight, and reporting, which indicates an intent to make the credit administratively workable and fiscally controlled. No formal vote history or transcript evidence is available to show opposition or support beyond the introduction of the bill.
Contention
The main policy questions likely to arise from SB0062 concern the cost of the credit, the $20 million annual allocation cap, and how credits are divided between the state housing authority and Chicago. Another likely point of discussion is the bill’s reliance on federal low-income housing tax credit rules, including recapture and compliance requirements, which may be seen as necessary safeguards by supporters but as administratively burdensome by some taxpayers or project owners. The bill also gives the authorities discretion to determine whether a credit is necessary for financial feasibility, which could prompt debate over program administration and project selection.