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.
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.
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.
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.
Would extend the sunset date of the EDGE credit for an additional 5 years from December 31, 2016.
Both bills reinstate and extend the sunset (expiration) date of the expanded temporary storage exemption from the sales and use taxes.
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 3430 would expand the Manufacturing Machinery and Equipment exemption to include “production-related tangible personal property formerly subject to the manufacturers’ purchase credit.
Amend the Uniform Penalty and Interest Act to automatically rescind underpayment penalties on taxpayers that are more than 95% compliant.
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.
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.
SB 859 would eliminate the “throwback” rule from the Illinois Income Tax Act (“IITA”) that taxes Illinois companies on sales made to other states.
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:
HB 3433 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.
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.
Support — Chamber Initiative
HB 3263 expands the jurisdiction of the Independent Tax Tribunal to all protests of assessments of all taxes administered by the Illinois Department of Revenue and property tax and sales tax exemption determinations of the Illinois Department of Revenue.
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.
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.