State Historic Tax Credit Effort
Illinois Gov. Bruce Rauner signed bipartisan legislation in August 2017 to extend the River Edge Redevelopment Zone (RERZ) Historic Tax Credit through 2021. This vital historic preservation tool and economic development incentive is currently available in the Illinois river cities of: Aurora, East St. Louis, Elgin, Peoria and Rockford. The RERZ tax credit provides a state income-tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures located within eligible Illinois cities who undertake a certified rehabilitation during the taxable year.
UPDATE: FEBRUARY 2018
Both the Illinois House and Illinois Senate have introduced bills to create a State Historic Tax Credit. Rep. Jerry Costello II has sponsored the House Bill HB5802, and Sen. Pamela J. Althoff has introduced the Senate version, SB2869. Both bills call for an Illinois Rehabilitation and Revitalization Tax Credit Act, “equal to 20% of qualified expenditures incurred by a qualified taxpayer pursuant to a qualified rehabilitation plan on a qualified structure, provided that the total amount of such qualified expenditures exceeds the greater of $5,000 or the adjusted basis of the property.” Read more below.