IL
Illinois House Bill HB2893

Illinois 2023-2024 Regular Session

Illinois House Bill HB2893 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2893 Introduced , by Rep. Jenn Ladisch Douglass SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Business Corporation Act of 1983. Provides that a business with an average employee head count of 49 or fewer employees is exempt from the taxes imposed under the Act. LRB103 27511 HLH 53886 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2893 Introduced , by Rep. Jenn Ladisch Douglass SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Business Corporation Act of 1983. Provides that a business with an average employee head count of 49 or fewer employees is exempt from the taxes imposed under the Act. LRB103 27511 HLH 53886 b LRB103 27511 HLH 53886 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2893 Introduced , by Rep. Jenn Ladisch Douglass SYNOPSIS AS INTRODUCED:
33 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
44 805 ILCS 5/15.35 from Ch. 32, par. 15.35
55 805 ILCS 5/15.65 from Ch. 32, par. 15.65
66 Amends the Business Corporation Act of 1983. Provides that a business with an average employee head count of 49 or fewer employees is exempt from the taxes imposed under the Act.
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1212 1 AN ACT concerning revenue.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Business Corporation Act of 1983 is amended
1616 5 by changing Sections 15.35 and 15.65 as follows:
1717 6 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
1818 7 (Text of Section from P.A. 102-16)
1919 8 Sec. 15.35. Franchise taxes payable by domestic
2020 9 corporations. For the privilege of exercising its franchises
2121 10 in this State, each domestic corporation shall pay to the
2222 11 Secretary of State the following franchise taxes, computed on
2323 12 the basis, at the rates and for the periods prescribed in this
2424 13 Act:
2525 14 (a) An initial franchise tax at the time of filing its
2626 15 first report of issuance of shares.
2727 16 (b) An additional franchise tax at the time of filing
2828 17 (1) a report of the issuance of additional shares, or (2) a
2929 18 report of an increase in paid-in capital without the
3030 19 issuance of shares, or (3) an amendment to the articles of
3131 20 incorporation or a report of cumulative changes in paid-in
3232 21 capital, whenever any amendment or such report discloses
3333 22 an increase in its paid-in capital over the amount thereof
3434 23 last reported in any document, other than an annual
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2893 Introduced , by Rep. Jenn Ladisch Douglass SYNOPSIS AS INTRODUCED:
3939 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4040 805 ILCS 5/15.35 from Ch. 32, par. 15.35
4141 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4242 Amends the Business Corporation Act of 1983. Provides that a business with an average employee head count of 49 or fewer employees is exempt from the taxes imposed under the Act.
4343 LRB103 27511 HLH 53886 b LRB103 27511 HLH 53886 b
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7171 1 report, interim annual report or final transition annual
7272 2 report required by this Act to be filed in the office of
7373 3 the Secretary of State.
7474 4 (c) An additional franchise tax at the time of filing
7575 5 a report of paid-in capital following a statutory merger
7676 6 or consolidation, which discloses that the paid-in capital
7777 7 of the surviving or new corporation immediately after the
7878 8 merger or consolidation is greater than the sum of the
7979 9 paid-in capital of all of the merged or consolidated
8080 10 corporations as last reported by them in any documents,
8181 11 other than annual reports, required by this Act to be
8282 12 filed in the office of the Secretary of State; and in
8383 13 addition, the surviving or new corporation shall be liable
8484 14 for a further additional franchise tax on the paid-in
8585 15 capital of each of the merged or consolidated corporations
8686 16 as last reported by them in any document, other than an
8787 17 annual report, required by this Act to be filed with the
8888 18 Secretary of State from their taxable year end to the next
8989 19 succeeding anniversary month or, in the case of a
9090 20 corporation which has established an extended filing
9191 21 month, the extended filing month of the surviving or new
9292 22 corporation; however if the taxable year ends within the
9393 23 2-month period immediately preceding the anniversary month
9494 24 or, in the case of a corporation which has established an
9595 25 extended filing month, the extended filing month of the
9696 26 surviving or new corporation the tax will be computed to
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107107 1 the anniversary month or, in the case of a corporation
108108 2 which has established an extended filing month, the
109109 3 extended filing month of the surviving or new corporation
110110 4 in the next succeeding calendar year.
111111 5 (d) An annual franchise tax payable each year with the
112112 6 annual report which the corporation is required by this
113113 7 Act to file.
114114 8 On or after January 1, 2020 and prior to January 1, 2021,
115115 9 the first $30 in liability is exempt from the tax imposed under
116116 10 this Section. On or after January 1, 2021, the first $1,000 in
117117 11 liability is exempt from the tax imposed under this Section.
118118 12 (e) Notwithstanding any other provision of law, beginning
119119 13 on June 1, 2023, a business with an average employee head count
120120 14 of 49 or fewer employees is exempt from the taxes imposed under
121121 15 this Section.
122122 16 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21.)
123123 17 (Text of Section from P.A. 102-282)
124124 18 Sec. 15.35. Franchise taxes payable by domestic
125125 19 corporations. For the privilege of exercising its franchises
126126 20 in this State, each domestic corporation shall pay to the
127127 21 Secretary of State the following franchise taxes, computed on
128128 22 the basis, at the rates and for the periods prescribed in this
129129 23 Act:
130130 24 (a) An initial franchise tax at the time of filing its
131131 25 first report of issuance of shares.
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142142 1 (b) An additional franchise tax at the time of filing
143143 2 (1) a report of the issuance of additional shares, or (2) a
144144 3 report of an increase in paid-in capital without the
145145 4 issuance of shares, or (3) an amendment to the articles of
146146 5 incorporation or a report of cumulative changes in paid-in
147147 6 capital, whenever any amendment or such report discloses
148148 7 an increase in its paid-in capital over the amount thereof
149149 8 last reported in any document, other than an annual
150150 9 report, interim annual report or final transition annual
151151 10 report required by this Act to be filed in the office of
152152 11 the Secretary of State.
153153 12 (c) An additional franchise tax at the time of filing
154154 13 a report of paid-in capital following a statutory merger
155155 14 or consolidation, which discloses that the paid-in capital
156156 15 of the surviving or new corporation immediately after the
157157 16 merger or consolidation is greater than the sum of the
158158 17 paid-in capital of all of the merged or consolidated
159159 18 corporations as last reported by them in any documents,
160160 19 other than annual reports, required by this Act to be
161161 20 filed in the office of the Secretary of State; and in
162162 21 addition, the surviving or new corporation shall be liable
163163 22 for a further additional franchise tax on the paid-in
164164 23 capital of each of the merged or consolidated corporations
165165 24 as last reported by them in any document, other than an
166166 25 annual report, required by this Act to be filed with the
167167 26 Secretary of State from their taxable year end to the next
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178178 1 succeeding anniversary month or, in the case of a
179179 2 corporation which has established an extended filing
180180 3 month, the extended filing month of the surviving or new
181181 4 corporation; however if the taxable year ends within the
182182 5 2-month period immediately preceding the anniversary month
183183 6 or, in the case of a corporation which has established an
184184 7 extended filing month, the extended filing month of the
185185 8 surviving or new corporation the tax will be computed to
186186 9 the anniversary month or, in the case of a corporation
187187 10 which has established an extended filing month, the
188188 11 extended filing month of the surviving or new corporation
189189 12 in the next succeeding calendar year.
190190 13 (d) An annual franchise tax payable each year with the
191191 14 annual report which the corporation is required by this
192192 15 Act to file.
193193 16 On or after January 1, 2020 and prior to January 1, 2021,
194194 17 the first $30 in liability is exempt from the tax imposed under
195195 18 this Section. On or after January 1, 2021 and prior to January
196196 19 1, 2022, the first $1,000 in liability is exempt from the tax
197197 20 imposed under this Section. On or after January 1, 2022 and
198198 21 prior to January 1, 2023, the first $10,000 in liability is
199199 22 exempt from the tax imposed under this Section. On or after
200200 23 January 1, 2023 and prior to January 1, 2024, the first
201201 24 $100,000 in liability is exempt from the tax imposed under
202202 25 this Section. The provisions of this Section shall not require
203203 26 the payment of any franchise tax that would otherwise have
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214214 1 been due and payable on or after January 1, 2024. There shall
215215 2 be no refunds or proration of franchise tax for any taxes due
216216 3 and payable on or after January 1, 2024 on the basis that a
217217 4 portion of the corporation's taxable year extends beyond
218218 5 January 1, 2024. Public Act 101-9 shall not affect any right
219219 6 accrued or established, or any liability or penalty incurred
220220 7 prior to January 1, 2024.
221221 8 (e) Notwithstanding any other provision of law, beginning
222222 9 on June 1, 2023, a business with an average employee head count
223223 10 of 49 or fewer employees is exempt from the taxes imposed under
224224 11 this Section.
225225 12 This Section is repealed on December 31, 2024.
226226 13 (Source: P.A. 101-9, eff. 6-5-19; 102-282, eff. 1-1-22.)
227227 14 (Text of Section from P.A. 102-558)
228228 15 Sec. 15.35. Franchise taxes payable by domestic
229229 16 corporations. For the privilege of exercising its franchises
230230 17 in this State, each domestic corporation shall pay to the
231231 18 Secretary of State the following franchise taxes, computed on
232232 19 the basis, at the rates and for the periods prescribed in this
233233 20 Act:
234234 21 (a) An initial franchise tax at the time of filing its
235235 22 first report of issuance of shares.
236236 23 (b) An additional franchise tax at the time of filing
237237 24 (1) a report of the issuance of additional shares, or (2) a
238238 25 report of an increase in paid-in capital without the
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249249 1 issuance of shares, or (3) an amendment to the articles of
250250 2 incorporation or a report of cumulative changes in paid-in
251251 3 capital, whenever any amendment or such report discloses
252252 4 an increase in its paid-in capital over the amount thereof
253253 5 last reported in any document, other than an annual
254254 6 report, interim annual report or final transition annual
255255 7 report required by this Act to be filed in the office of
256256 8 the Secretary of State.
257257 9 (c) An additional franchise tax at the time of filing
258258 10 a report of paid-in capital following a statutory merger
259259 11 or consolidation, which discloses that the paid-in capital
260260 12 of the surviving or new corporation immediately after the
261261 13 merger or consolidation is greater than the sum of the
262262 14 paid-in capital of all of the merged or consolidated
263263 15 corporations as last reported by them in any documents,
264264 16 other than annual reports, required by this Act to be
265265 17 filed in the office of the Secretary of State; and in
266266 18 addition, the surviving or new corporation shall be liable
267267 19 for a further additional franchise tax on the paid-in
268268 20 capital of each of the merged or consolidated corporations
269269 21 as last reported by them in any document, other than an
270270 22 annual report, required by this Act to be filed with the
271271 23 Secretary of State from their taxable year end to the next
272272 24 succeeding anniversary month or, in the case of a
273273 25 corporation which has established an extended filing
274274 26 month, the extended filing month of the surviving or new
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285285 1 corporation; however if the taxable year ends within the
286286 2 2-month period immediately preceding the anniversary month
287287 3 or, in the case of a corporation which has established an
288288 4 extended filing month, the extended filing month of the
289289 5 surviving or new corporation the tax will be computed to
290290 6 the anniversary month or, in the case of a corporation
291291 7 which has established an extended filing month, the
292292 8 extended filing month of the surviving or new corporation
293293 9 in the next succeeding calendar year.
294294 10 (d) An annual franchise tax payable each year with the
295295 11 annual report which the corporation is required by this
296296 12 Act to file.
297297 13 On or after January 1, 2020 and prior to January 1, 2021,
298298 14 the first $30 in liability is exempt from the tax imposed under
299299 15 this Section. On or after January 1, 2021 and prior to January
300300 16 1, 2022, the first $1,000 in liability is exempt from the tax
301301 17 imposed under this Section. On or after January 1, 2022 and
302302 18 prior to January 1, 2023, the first $10,000 in liability is
303303 19 exempt from the tax imposed under this Section. On or after
304304 20 January 1, 2023 and prior to January 1, 2024, the first
305305 21 $100,000 in liability is exempt from the tax imposed under
306306 22 this Section. The provisions of this Section shall not require
307307 23 the payment of any franchise tax that would otherwise have
308308 24 been due and payable on or after January 1, 2024. There shall
309309 25 be no refunds or proration of franchise tax for any taxes due
310310 26 and payable on or after January 1, 2024 on the basis that a
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321321 1 portion of the corporation's taxable year extends beyond
322322 2 January 1, 2024. Public Act 101-9 shall not affect any right
323323 3 accrued or established, or any liability or penalty incurred
324324 4 prior to January 1, 2024.
325325 5 (e) Notwithstanding any other provision of law, beginning
326326 6 on June 1, 2023, a business with an average employee head count
327327 7 of 49 or fewer employees is exempt from the taxes imposed under
328328 8 this Section.
329329 9 This Section is repealed on December 31, 2025.
330330 10 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
331331 11 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
332332 12 Sec. 15.65. Franchise taxes payable by foreign
333333 13 corporations. For the privilege of exercising its authority to
334334 14 transact such business in this State as set out in its
335335 15 application therefor or any amendment thereto, each foreign
336336 16 corporation shall pay to the Secretary of State the following
337337 17 franchise taxes, computed on the basis, at the rates and for
338338 18 the periods prescribed in this Act:
339339 19 (a) An initial franchise tax at the time of filing its
340340 20 application for authority to transact business in this
341341 21 State.
342342 22 (b) An additional franchise tax at the time of filing
343343 23 (1) a report of the issuance of additional shares, or (2) a
344344 24 report of an increase in paid-in capital without the
345345 25 issuance of shares, or (3) a report of cumulative changes
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356356 1 in paid-in capital or a report of an exchange or
357357 2 reclassification of shares, whenever any such report
358358 3 discloses an increase in its paid-in capital over the
359359 4 amount thereof last reported in any document, other than
360360 5 an annual report, interim annual report or final
361361 6 transition annual report, required by this Act to be filed
362362 7 in the office of the Secretary of State.
363363 8 (c) Whenever the corporation shall be a party to a
364364 9 statutory merger and shall be the surviving corporation,
365365 10 an additional franchise tax at the time of filing its
366366 11 report following merger, if such report discloses that the
367367 12 amount represented in this State of its paid-in capital
368368 13 immediately after the merger is greater than the aggregate
369369 14 of the amounts represented in this State of the paid-in
370370 15 capital of such of the merged corporations as were
371371 16 authorized to transact business in this State at the time
372372 17 of the merger, as last reported by them in any documents,
373373 18 other than annual reports, required by this Act to be
374374 19 filed in the office of the Secretary of State; and in
375375 20 addition, the surviving corporation shall be liable for a
376376 21 further additional franchise tax on the paid-in capital of
377377 22 each of the merged corporations as last reported by them
378378 23 in any document, other than an annual report, required by
379379 24 this Act to be filed with the Secretary of State, from
380380 25 their taxable year end to the next succeeding anniversary
381381 26 month or, in the case of a corporation which has
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392392 1 established an extended filing month, the extended filing
393393 2 month of the surviving corporation; however if the taxable
394394 3 year ends within the 2-month period immediately preceding
395395 4 the anniversary month or the extended filing month of the
396396 5 surviving corporation, the tax will be computed to the
397397 6 anniversary or, extended filing month of the surviving
398398 7 corporation in the next succeeding calendar year.
399399 8 (d) An annual franchise tax payable each year with any
400400 9 annual report which the corporation is required by this
401401 10 Act to file.
402402 11 On or after January 1, 2020 and prior to January 1, 2021,
403403 12 the first $30 in liability is exempt from the tax imposed under
404404 13 this Section. On or after January 1, 2021, the first $1,000 in
405405 14 liability is exempt from the tax imposed under this Section.
406406 15 (e) Notwithstanding any other provision of law, beginning
407407 16 on June 1, 2023, a business with an average employee head count
408408 17 of 49 or fewer employees is exempt from the taxes imposed under
409409 18 this Section.
410410 19 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
411411 20 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
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