SPRINGFIELD – To encourage support of affordable housing projects, State Senator Suzy Glowiak Hilton (D-Western Springs) advanced legislation to renew the state’s tax credit program and steadily increase benefits over time.
“The Illinois Affordable Housing Tax Credit has been instrumental in the development and preservation of affordable housing across the state over the last two decades,” Glowiak Hilton. “With its renewal, Illinois stays committed to the public and private partnerships needed to provide ongoing economic activity in communities.”
Each fiscal year, the state caps the amount for the Illinois Affordable Housing Tax Credit (IAHTC) program, which is scheduled to sunset Dec. 31, 2021. Glowiak Hilton’s proposal would extend the sunset for five years and cap the credit amount at $32.85 million for the next two fiscal years. The cap would steadily increase by 5% each year after.
The IAHTC gives a 50-cent state income tax credit for every dollar contributed to a qualified affordable housing project. Donations must total at least $10,000, and project sponsors must be nonprofit organizations with a mission to construct or rehabilitate affordable housing.
“By renewing the IAHTC program, our state is working to ensure nonprofit sponsors have access to resources to rehabilitate buildings and construct affordable homes for renters and homebuyers,” Glowiak Hilton. “This credit supports a more flexible affordable housing approach that allows donors to support projects that meet community needs.”
House Bill 3107 passed the Senate Revenue Committee Wednesday and moves for further consideration before the full Senate.
May 13, 2021 at 06:45AM