Elgin Mayor David Kaptain and officials from the Kane County cities of Elgin and Aurora urged the Illinois House Revenue Committee to quickly approve House Bill 3566, which would extend the River Edge Historic Tax Credit before the critical legislation expires at the end of this year.

Testifying Thursday, April 14, 2016, before the House Revenue Committee in Springfield, officials from Elgin, Aurora, Joliet and Rockford said the tax credit must be extended because the nation’s economic slowdown over the last few years has made it impossible for old buildings to be refurbished and renovated. The market has recently improved and the only way to revitalize aging river cities in the River Edge program is to extend the credit past its expiration date of Dec. 31, 2016, the officials said.

Elgin Tower

Kaptain said the renovation of Elgin Tower, which is listed on the National Register of Historic Places, is one of several projects in Elgin that needs the historic tax credit to be extended.

“The economy has been terrible for downtown development the last few years but I see signs that it is coming back,” Kaptain said. “By extending the River Edge Historic Tax Credit, the General Assembly and the Governor can make sure that economic development blossoms in older river cities across the state.”

Kaptain thanked the sponsors of the legislation – including Rep. Anna Moeller and Sens. Michael Noland and Karen McConnaughay – for their support of the effort.

The River Edge Historic Tax Credit allows for a credit on state income taxes equal to 25 percent of the qualified cost of a historic rehabilitation. The credit only applies to commercial and industrial properties and parallels the 20 percent federal historic preservation tax credit, creating more development opportunities in Illinois and leveraging millions of dollars in federal monies not currently flowing into the state.

A study by the University of Illinois‐Springfield found that this credit and other state tax credits return up to $10 for every $1 invested.

The bill is also supported by the Landmarks Illinois and the American Institute of Architects-Illinois.

“Putting the pilot state historic tax credit in place was a vital economic develop strategy and regenerative investment by the state of Illinois,” said Bonnie McDonald, President and CEO of Landmarks Illinois, a statewide nonprofit group that advocated for the incentive.  “The pilot phase has proven that the credit works by raising private capital, returning vacant properties to the tax rolls, and returning more than it costs to the state’s general fund.”

SOURCE: City of Elgin news release