State Legislative Issues

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 Illinois River cities of: Aurora, East St. Louis, Elgin, Peoria and Rockford. The RERX 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.

WHY DOES ILLINOIS NEED A STATEWIDE HISTORIC REHABILITATION TAX CREDIT?

A state historic rehabilitation tax credit is critical to create new jobs and leverage private investment in Illinois. Without this tax credit, Illinois risks losing hundreds of redevelopment, investment, and job creation opportunities to neighboring states that do have this type of incentive, thereby slowing our overall economic recovery. In the fall of 2013, Landmarks Illinois released a study demonstrating the positive economic return a state historic tax credit would provide for communities and the state. Read the study: “Economic Development Opportunities from an Illinois Historic Tax Credit.”

Further Reading

State HISTORIC TAX CREDIT PROJECT

The Cooperage 214 in Peoria one example of a historic preservation project in Illinois that used the RERZ Historic Tax Credit. The preservation project at the Cooperage 214 transformed a 27,000-square-foot cooperage factory in Peoria’s downtown warehouse district into attractive office space and 18 luxury apartments.

Before Restoration

After Restoration

Before Restoration

After Restoration

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