HB 4293/SB 3189
Amends the Illinois Income Tax Act. Imposes a privilege tax on partnerships and S corporations engaged in the business of conducting investment management services. Provides that the tax shall be imposed at the rate of 20% of the fees calculated by reference to the performance of the investment portfolio funds and not from the investment itself.
SB 2604/HB 5045
Support - Chamber Initiative
This proposal amends the Uniform Penalty and Interest Act to automatically rescind underpayment penalties on taxpayers that are more than 95% compliant.
SB 1286 rewrites the Captive Insurance law to make Illinois more attractive and receptive to form or relocate captive insurance companies that will in turn generate more premium tax revenue.
Amends the Illinois False Claims Act. Provides that no court has jurisdiction over a civil action relating to or involving a false claim regarding certain tax acts administered by the Department of Revenue unless the action is brought by the Attorney General. Provides that the Department of Revenue has the sole authority to bring an administrative action and that the Attorney General has the sole authority to bring a judicial action under the Act for a false claim, statement, or record pertaining to certain taxes administered by the Department of Revenue. Contains provisions concerning reporting, investigative, and enforcement procedures for allegations of false claims pertaining to certain taxes. Contains provisions governing the payment of rewards to persons who provide information that leads to recovery of funds under the new provisions. Provides that the appeal of a determination regarding an award may be appealed exclusively to the Court of Claims and must be filed within 30 days of the determination of the award. Makes other changes, including a corresponding change in the Court of Claims Act.
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for coal and aggregate exploration, mining, off-highway hauling, processing, maintenance, and reclamation equipment sunsets on June 30, 2023 (currently, the exemption is subject to the Acts' automatic sunset provisions).
Support - Chamber Initiative
Amends the Illinois Enterprise Zone Act. Provides that enterprise zone applicants shall receive a specific score based on whether or not an applicant meets certain criteria (currently, the applicant receives a score based on the extent to which the applicant meets the criteria). Provides that the Enterprise Zone Board shall approve any application that receives at least 200 points, with the exception of a zone that has previously been decertified for cause.
HB 5504/SB 3505
Modify the temporary storage exemption to provide that the exemption is not lost if otherwise eligible items are returned to Illinois only for storage, repair or refurbishment.
HB 5570/SB 3401
Both bills reinstate and extend the sunset (expiration) date of the expanded temporary storage exemption from the sales and use taxes.
Amends the Illinois Independent Tax Tribunal Act of 2012. Expands the jurisdiction of the Tribunal to include the County Motor Fuel Tax Law, the Live Adult Entertainment Facility Surcharge Act, the Vehicle Use Tax, the Metropolitan Pier and Exposition Authority Food and Beverage Tax, the Tire User Fee, the Chicago Soft Drink Tax, the Drycleaning Solvent Tax, the Energy Assistance Act of 1989, the Qualified Solid Waste Fee, the Illinois Hydraulic Fracturing Tax Act, or the Medical Cannabis Cultivation Privilege Tax Law. Provides for additional procedures, including automatic remand.
Level the playing field for Illinois cigar retailers by capping the tax on cigars at $0.50/cigar.
HB 5002/SB 3111
Both bills create a bonus investment credit for small businesses.
SB 3227 would reinstate the Research and Development Illinois income tax credit and make the credit permanent. The Chamber’s proposal will also strengthen the research and development credit by extending the credit carryforward period from 5 years to 20 years and by modifying the base period calculation for purposes of calculating the required increase in qualifying expenditures.
HB 5001 would expand the Manufacturing Machinery and Equipment exemption to include “production-related tangible personal property formerly subject to the manufacturers’ purchase credit.
Amend the Revised Uniform Unclaimed Property Act to modify certain anti-business provisions.
Create a sales and use tax exemption for tangible personal property used in the construction or operation of a new or existing data center.
SB 3121 would eliminate the “throwback” rule from the Illinois Income Tax Act (“IITA”) that taxes Illinois companies on sales made to other states.
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Provides that, subject to certain restrictions, if the Department of Revenue may disclose confidential financial information to a municipality or county, then the Department of Revenue may also disclose that financial information to an independent third party who is authorized in writing by that municipality or county to receive the information.
HR 1025 (Madigan) passed the House this session 61-52-0. HR 1025 urges support for the implementation of a "progressive" (graduated) income tax. This was a non-binding resolution. The Chamber opposes this resolution. This resolution signals what will be a major campaign issue in the 2018 November elections and proceeding years to come.
HB 4237 (Carrol/Morrison), the work around to the $10,000 federal SALT tax deduction cap was amended in the Senate to authorize the Treasurer to adopt rules for withholding of contributions and to provide that a taxpayer will receive credit against income and property tax liabilities of 90% of the donated amounts. The bill went back to the House this week, but apparently the sponsor did not agree with the changes made by the Senate and did not call the bill in the House for concurrence with the Senate amendments. Instead of calling HB 4237, the sponsor amended SB 3238 to be a modified version of HB 4237. SB 3238 as amended added a direction to the Department of Revenue to seek guidance from the Internal Revenue Service verifying that the contributions will qualify as charitable deductions.
SB 2577 (Castro/Moeller) mirrors the South Dakota law before the U.S. Supreme Court in the Wayfair case. Provides, beginning January 1, 2019, that an out-of-state retailer is required to charge and collect Illinois Use Tax on sales to Illinois customers if the company makes either 200 sales into Illinois or has gross receipts from Illinois sales of at least $100,000 in a year. If the U.S. Supreme Court rules in favor of SD and abolishes the current physical presence requirement from the 1992 Quill case this law will be enforceable. If the court uphold the physical presence requirement it will not be enforceable. This bill passed the Senate 39-10-1 but was eventually held in the House. However, the language was eventually inserted into the budget implementation bill (HB 3342). The Chamber was neutral on the bill.
Extension and reinstatement of the EDGE program.
HB 1814 / SB 1701
Support — Chamber Initiative
Both bills amend the Illinois False Claims Act (the “IFCA”) to correct abuses allowed under current law.
Both bills would reinstate the graphic arts machinery and equipment exemption from Illinois sales and use taxes. Expand the statutory definitions of manufacturing machinery and equipment and graphic arts machinery and equipment to include production-related property as exempt from sales and use taxes.
Imposes a tax on distributors of sugar-sweetened beverages in the State at the rate of $0.01 per ounce. Contains provisions concerning the distribution of the proceeds from the tax. Creates a multi-sector Advisory Council for Health and Wellness to govern the distribution of the proceeds.
The legislation also amends the Procurement Code to forbid “expatriate” companies from bidding on state contracts, as well as amending state pension laws to forbid investment by the state pension systems in “expatriate” companies.
Amendment 1 to SB 472 (Mulore) would eliminate most of the current credits and exemptions under the Illinois Income Tax Act and the sales and use tax acts. A number of the credits would not be eliminated completely, but rather in the case of some individual credits like the property tax credit from the income tax would be eliminated for individuals with adjusted gross income over $250,000 or $500,000 in the case of a married couple filing jointly. Additionally, other credits such as the farm machinery and equipment exemption from the sales and use taxes tax would be imposed on 50% of the proceeds of sales of previously exempt property.
Both bills would create a sales and use tax exemption for tangible personal property used in the construction or operation of a new or existing data center.
Would extend the sunset date of the EDGE credit for an additional 5 years from December 31, 2016.
HB 3393 (Welch) and SB 1719 (Biss) would both put Illinois’ vital financial service sector and the tens of thousands of jobs it employs at risk by imposing a new 20% gross receipts tax on partnerships and S corps engaged in the business of conducting investment management services. Illinois has benefited from being a top ten globally-recognized financial hub. HB 3393 and SB 1719 would hurt our state’s global reputation and would force investors to look to less hostile cities such as Boston, Dallas, and Charlotte.
HB 2744 / SB 1766
Both bills would replace the EDGE credit with a new Business and Employment Development Tax credit, effective for tax years beginning on and after January 1, 2018. This new credit legislation would be administered by the Department of Commerce and Economic Opportunity and would consist of credits against the Illinois Income Tax Act for investment and increasing employment in Illinois, with additional credits granted for creating jobs with wages in excess of 150% of the Illinois minimum wage, and for increasing employment in areas of high poverty.
This is the revenue omnibus bill. Below are are some pertinent highlights of what is law and what was left out in the revenue portion of the package laid out under SB 9: