Tax Credit for Illinois Flood Victims Signed into Law

State Representative Dan Swanson announced that Governor Bruce Rauner has signed legislation Rep. Swanson co-sponsored providing a tax credit worth up to $750 for property owners who were victims of flood damage in July in 18 counties declared state disaster areas.  

“This tax credit will help those homeowners and businesses who have expended costs on recovering their property due to flood damage in July,” said Rep. Swanson.  “Taxpayers in 18 counties may be eligible for this credit to help them on the path to recovery.”

Senate Bill 403 created a natural disaster tax credit that eligible, affected property owners may apply to their 2017 Illinois income taxes.  Counties eligible for the tax credit include Cook, Lake, Kane, McHenry, Alexander, Clinton, Jackson, Marshall, Union, Woodford, Carroll, Henry, Jo Daviess, Lee, Ogle, Rock Island, Stephenson, and Whiteside- all of which were declared state disaster areas by the Governor this Summer.

Qualified properties include a taxpayers principle residence or land owned by a small business, but not a rental or leasing business.  The allowable income tax credit will be the lesser of $750 or the deduction allowed under the IRS Code for each taxpayer who owns qualified property in a county declared a state disaster area.

The bill provides that township assessors shall issue eligibility certificates for appropriately requesting property owners (you may request this letter by contacting your local township assessors office), and that assessors shall certify to the Illinois Department of Revenue (IDOR) the listings of flood-damaged properties.