State historic tax credit programs

Illinois Historic Preservation Tax Credit Program

Program overview:

The Illinois Historic Preservation Tax Credit offers a 25 percent credit for eligible expenditures on rehabilitation of properties eligible for the federal historic credit located in designated River Edge Redevelopment Zones approved by the state in portions of Aurora, East St. Louis, Elgin, Peoria, and Rockford.

Annual cap: none

Program details:

  • Carry forward: 10 years.
  • Non-transferrable.
  • No recapture period.
  • Qualified rehabilitation expenditures (QREs) must exceed $5,000 or more and 50 percent of the purchase price of the property.
  • Sunset date: Dec. 31, 2026.

Bicentennial Mississippi River Region Redevelopment Historic Tax Credit Act

For tax years beginning on or after January 1, 2019 and ending on or before December 31, 2029, a taxpayer who qualifies for a credit under the Bicentennial Mississippi River Region Redevelopment Historic Tax Credit Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of this Act as provided in that Act.



To the extent authorized by this Act, for taxable years beginning on or after January 1, 2019 and ending on or before December 31, 2029, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act in an 8 amount equal to 25 percent of qualified expenditures incurred by a qualified taxpayer during the taxable year in the restoration and preservation of a qualified historic structure pursuant to a qualified rehabilitation plan, provided that the total amount of such expenditures (i) must equal $5,000 or more, and (ii) must exceed 50 percent of the purchase price of the property.



Annual state cap: $15 million.



Transaction cap: $3 million.

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