Will County Gazette

Dagmara Avelar introduced HB1147 in the Illinois House on Jan. 9, 2025, during the general assembly session 104, according to the Illinois General Assembly.

According to the Illinois General Assembly site, the legislature summarized the bill's official text as follows: "Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately."

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill creates the Build Illinois Homes Tax Credit Act, offering tax credits to owners of qualified low-income housing developments in Illinois. These credits can be applied against taxes imposed by the Illinois Income Tax Act or the Illinois Insurance Code. The bill specifies that for tax years beginning on or after Jan. 1, 2026, and ending before Jan. 1, 2031, the Illinois Housing Development Authority and the City of Chicago Department of Housing will allocate up to $20 million annually in credits. The tax credit is tied to federal low-income housing tax credits, with an eligibility statement issued alongside IRS Form 8609. The bill ensures compliance through annual reporting and monitoring by relevant authorities and imposes recapture provisions for certain federal credit issues. The act is effective immediately upon becoming law.

Avelar graduated from Northeastern Illinois University in 2010 with a BS.

Dagmara Avelar is currently serving in the Illinois State House, representing the state's 85th House District. She replaced previous state representative John Connor in 2021.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Bill Number	Date Introduced	Short Description
HB1147	01/09/2025	Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.