Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and products classified as Class III medical devices by the United States Food and Drug Administration that are used for cancer treatment pursuant to a prescription are exempt from the tax under the Acts. Amends the Illinois Income Tax Act. Increases the amount deposited into the Local Government Distributive Fund to: (i) 7.47% of the net revenue realized from the tax imposed upon individuals, trusts, estates, and pass-through entities; and (ii) 7.85% of the net revenue realized from the tax imposed upon corporations. Effective July 1, 2026.
Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on and after January 1, 2029. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2030. Makes changes in provisions concerning the statute of limitations. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2030. Effective immediately.
Amends the Counties Code and the Illinois Municipal Code. Provides that neither a county nor a municipality may impose a tax on businesses calculated based on the number of employees of the business. Effective immediately.
SB 3874 repeals Illinois' enhanced bonus depreciation deduction for business equipment from the state income tax code. This change directly affects businesses that previously claimed accelerated tax deductions for qualifying equipment purchases. The bill eliminates this specific tax provision effective immediately upon enactment, with no new mechanisms or alternative deductions introduced. It is a straightforward repeal of an existing tax benefit, not a new policy.
Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2027 and prior to January 1, 2028, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2028. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately.
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100%, but in no event more than $250,000 per taxpayer in any taxable year, of qualified business expenses paid by a qualified small business during the taxable year. Effective immediately.
Creates the Small Business Economic Incentive Act. Provides that at least 50% of the dollar value of all economic incentives awarded to businesses by the State or by any State agency on or after January 1, 2027 shall be awarded to businesses with 50 or fewer full-time employees. Effective January 1, 2027.
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that medical appliances are exempt from the taxes imposed under those Acts. Effective January 1, 2027.
Amends the Grant Accountability and Transparency Act. Provides that the Governor's Office of Management and Budget shall adopt rules pertaining to expedient and efficient processing of grants awarded to public safety agencies though the State's awarding agencies, including those awards provided through the Illinois Law Enforcement Training Standards Board. Provides that the rules pertaining to the issuance of awards to public safety agencies shall include, but are not limited to, the following: (1) in accordance with the Grant Accountability and Transparency Act, continued uniform administrative requirements, cost principles, and audit requirements for State and federal pass-through awards to non-federal public safety entities; (2) an application process for public safety agencies that proceeds to process applicants, upon the receipt of their application on a first-come, first-serve basis; and (3) an award process that proceeds on a chronological case-by-case basis where a public safety agency's award is processed with no delay upon that agency's completion of all requirements, including the application process, reporting requirements, monitoring, and all other considerations and regulations as required under the Act. Provides that the Grant Accountability and Transparency Unit and the Office of the State Comptroller shall consider and determine revised factors when determining permanent or temporary cease payments, the garnishment of funds, or any other action by a State agency to hinder receipt of an award by a public safety agency recipient or subrecipient. Provides that those factors shall be disseminated to all State agencies that award grants to public safety agencies. Effective immediately.
Provides that the amendatory Act may be referred to as the Land Conservation Incentives Act. Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, there is a tax credit of up to $200,000 with respect to qualified real property interest conveyed for conservation and preservation purposes as the qualified donation by the taxpayer, with certain requirements. Provides that any taxpayer claiming this tax credit may not claim a credit under any similar law for costs related to the same project. Provides that any tax credits from the donation of an interest in land made by a pass-through tax entity such as a trust, estate, partnership, limited liability corporation or partnership, limited partnership, S corporation, or other fiduciary shall be used either by such entity if it is the taxpayer on behalf of such entity or by the member, manager, partner, shareholder, or beneficiary, as the case may be, in proportion to their interest in such entity if the income, deductions, and tax liability passes through such entity to such member, manager, partner, shareholder, or beneficiary, and that such tax credits may not be claimed by both the entity and the member, manager, partner, shareholder, or beneficiary for the same donation. Requires the Department of Natural Resources and Department of Revenue to adopt rules. Defines terms. Makes findings.
