Budget & Taxes (Business Taxes)

in committee · Illinois · Senate May 27, 2026

SB 3780: INC TX-LGDF

Amends the Illinois Income Tax Act. Provides that an amount equal to 10% of the net revenue realized from the State income tax during the preceding month shall be transferred from the General Revenue Fund to the Local Government Distributive Fund (currently, the amount transferred is equal to the sum of (i) 6.47% of the net revenue realized from the tax imposed upon individuals, trusts, and estates during the preceding month; (ii) 6.85% of the net revenue realized from the tax imposed upon corporations during the preceding month; and (iii) 6.47% of the net revenue realized from the tax imposed upon electing pass-through entities). Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesReduces transfer to Local Government Distributive Fund from ~13.3% to 10% of income tax revenue, cutting local funding90% confidence

Sub-Topics Business Taxes Income Tax Revenue

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in committee · Illinois · House Apr 17, 2026

HB 5237: LOCAL GOV-PREEMPT TAX

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesProhibits local governments from imposing employee-based business taxes, restricting a potential tax source under Budget & Taxes.95% confidence

Sub-Topics Business Taxes

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in committee · Illinois · Senate Mar 4, 2026

SB 3441: FRANCHISE TAX-REPEAL

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals corporate franchise tax starting 2029, reducing government revenue. Transfers existing funds but primarily weakens tax collection, aligning with OPPOSE stance.95% confidence

Sub-Topics Business Taxes Revenue

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in committee · Illinois · Senate Feb 6, 2026

SB 3893: LOCAL GOV-PREEMPT TAX

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesPrevents counties/municipalities from imposing employee-based business taxes, restricting local tax authority and new revenue sources.95% confidence

Sub-Topics Business Taxes

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in committee · Illinois · Senate Feb 6, 2026

SB 3874: INC TX-BONUS DEPRECIATION

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals Illinois' enhanced bonus depreciation tax deduction, eliminating a business tax benefit. Directly reduces available tax breaks under state tax code.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Illinois · House Mar 27, 2026

HB 5526: DOMESTIC FRANCHISE TAX-REPEAL

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals franchise tax for domestic corporations, eliminating a government revenue source and reducing tax liability for businesses.95% confidence

Sub-Topics Business Taxes

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in committee · Illinois · House Mar 27, 2026

HB 4254: USE/OCC TX-MEDICAL APPLIANCES

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts medical appliances from multiple taxes, reducing state tax revenue and weakening the tax base.90% confidence ✓ HealthcareSupports HealthcareExempts medical appliances from multiple taxes, reducing costs for patients and improving access to essential healthcare equipment.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Illinois · House Mar 21, 2025

HB 2702: INC TX-PASS-THROUGH ENTITIES

Amends the Illinois Income Tax Act. Removes provisions providing that the pass-through entity level election applies only for tax years beginning prior to January 1, 2026. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExtends pass-through entity tax election, maintaining tax breaks for business owners (often wealthy), aligning with 'oppose' indicators of tax breaks for wealthy.90% confidence

Sub-Topics Business Taxes

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in committee · Illinois · House Mar 21, 2025

HB 1459: MANUFACTURING-ENERGY-EXEMPTION

Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts businesses from gas/electricity taxes, reducing state tax revenue and weakening fiscal management per bill's amendments to tax laws.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Illinois · House Mar 21, 2025

HB 3643: USE/OCC TX-BROADBAND

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for broadband infrastructure, reducing state tax revenue. Direct tax policy change aligning with 'oppose' indicators of tax breaks.85% confidence ✓ TechnologySupports TechnologyExempts broadband infrastructure equipment from taxes, incentivizing investment in internet access expansion and deployment.95% confidence

Sub-Topics Business Taxes Sales Tax Broadband Access

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