REVENUE-HOMEBUILDER CREDIT

104th Regular Session Introduced by Darby Hills

Establishes a state tax credit for homebuilding or homeownership to incentivize housing development and reduce state revenue accordingly.

Summary of SB 3918 (104th Illinois General Assembly)

Purpose and intent

The bill is titled “Revenue-Homemaker/Homebuilder Credit” in Illinois. Based on the title and typical tax-credit framing, it appears to establish or modify a tax credit related to homebuilding or homebuyers, aiming to incentivize construction or purchase of homes and/or to provide targeted relief or support within the state’s revenue system.

Sponsored by a Senate member with a co-sponsor listed as Darby Hills. The exact policy objective is to support housing development or homeowner-related revenue measures, though the precise mechanics require reading the bill’s text for specifics.

Key provisions and changes (high-level overview)

Establishment or modification of a tax credit tied to homebuilding or homeownership. The bill would define eligibility criteria, calculation methodology, and allowable credits against state revenue.

Credit parameters likely include:

Eligible applicants: individuals, developers, or builders seeking to claim the credit.
Credit amount: a dollar value or percentage of qualifying costs (e.g., construction costs, home purchase price, or improvements) used to determine the credit.
Duration and cap: any time-limited applicability, annual aggregate cap, or per-project limits.

Interaction with other tax provisions:

How the new credit interacts with existing Illinois credits or deductions.
Ordering rules (e.g., credits may be claimed after other credits, or may be nonrefundable/refundable as defined in the bill).

Administrative and compliance details:

Required applications or certifications to claim the credit.
Documentation to substantiate eligibility (e.g., project completion, income thresholds, location requirements).
Oversight, auditing, and penalties for improper claims.

Who/what would be affected

Eligible taxpayers: individuals, families, developers, and builders involved in home construction or home purchases in Illinois.

Housing market impact: potential influence on homebuilding activity, affordability, and development timelines.

State revenue: potential reduction in state tax receipts corresponding to the value of the credits claimed; fiscal notes typically accompany such bills to estimate revenue impact.

Procedural and timeline aspects

As a bill introduced in the 104th General Assembly, it would follow the Illinois legislative process: committee hearings, possible amendments, and votes in both chambers before reaching the governor.

If enacted, the bill would specify its effective date (e.g., immediately upon passage, or a date set in the law) and whether there is a phase-in or sunset provision.

Administrative implementation would require regulations or guidance from the Illinois Department of Revenue or related agencies.

Notes for readers

The summary above reflects the typical structure of revenue-related homebuilder/homemaker credits. For precise eligibility criteria, credit amounts, caps, sunset dates, and administration details, the bill’s full text and any fiscal impact statements should be reviewed.

If you are considering claiming the credit or advising a client, consult the official bill language and any Department of Revenue guidance once available.