HB4870

Preserving Illinois Neighborhoods Act offers tax credits for renovating or constructing homes in underserved areas.

The Preserving Illinois Neighborhoods Act provides tax credits for qualified taxpayers who renovate or construct homes in underserved areas. For taxable years from 2027 to 2032, taxpayers can claim credits for qualified new construction or rehabilitation expenditures. Credits are capped at $40,000 per project, with a minimum expenditure of $10,000. The Department of Commerce and Economic Opportunity limits annual credit awards to $5,000,000. Credits are calculated at 15% of qualified new construction expenditures and 25% of qualified rehabilitation expenditures.