SB0240 amends the Illinois Historic Preservation Tax Credit Act to increase the annual amount of historic preservation tax credits that may be allocated by the State Historic Preservation Office within the Department of Natural Resources. For calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the bill raises the annual credit cap from $25 million to $75 million. The bill retains the existing per-project cap of $3 million and the program’s general structure for allocating credits to qualified rehabilitation plans.
The bill also keeps and reinforces the program’s prioritization framework for projects that are likely to have broader public benefits. Priority is given to projects in border counties with comparable credits in neighboring states, formerly government-owned structures, projects in lower-income census tracts, projects involving community development or nonprofit partners, and projects in federally declared disaster areas. The measure is effective immediately, but the increased allocation authority would apply beginning in 2026 and run through 2028.
Impact
The bill would amend Section 20 of the Historic Preservation Tax Credit Act, increasing the amount of tax credits the State Historic Preservation Office may allocate each year during the specified period. This change expands the state’s fiscal exposure under the credit program and could increase the number and size of historic rehabilitation projects that receive support. It does not change the basic eligibility structure, the $3 million cap per qualified rehabilitation plan, or the reporting, monitoring, and rescission provisions already in the Act.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears supportive of historic preservation and redevelopment incentives, with the measure framed as an expansion of an existing economic development tool. The bill’s design suggests an emphasis on encouraging rehabilitation of historic properties, especially in distressed or disaster-affected areas, which typically draws support from preservation, redevelopment, and community investment interests. No recorded opposition or divided vote history is available in the provided materials.
Contention
The main policy issue is the size of the credit increase, since the bill would triple the annual allocation authority from $25 million to $75 million for three years. Potential concerns would likely come from fiscal watchdogs or budget-focused lawmakers who may question the revenue impact and whether the larger cap is justified by economic returns. Another possible point of debate is the prioritization scheme, which favors certain geographies and project types; supporters may view that as targeted and equitable, while critics could argue it creates uneven access or steers credits toward preferred categories of projects.