103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 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 or after January 1, 2025. 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, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately. LRB103 37755 SPS 67883 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97 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 or after January 1, 2025. 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, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately. LRB103 37755 SPS 67883 b LRB103 37755 SPS 67883 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED:
805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.97 from Ch. 32, par. 15.97
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 or after January 1, 2025. 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, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately.
LRB103 37755 SPS 67883 b LRB103 37755 SPS 67883 b
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A BILL FOR
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1 AN ACT concerning business.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Business Corporation Act of 1983 is amended
5 by changing Sections 15.35, 15.65, and 15.97 as follows:
6 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
7 (Text of Section from P.A. 102-16 and 103-8)
8 Sec. 15.35. Franchise taxes payable by domestic
9 corporations. For the privilege of exercising its franchises
10 in this State, each domestic corporation shall pay to the
11 Secretary of State the following franchise taxes, computed on
12 the basis, at the rates and for the periods prescribed in this
13 Act:
14 (a) An initial franchise tax at the time of filing its
15 first report of issuance of shares.
16 (b) An additional franchise tax at the time of filing
17 (1) a report of the issuance of additional shares, or (2) a
18 report of an increase in paid-in capital without the
19 issuance of shares, or (3) an amendment to the articles of
20 incorporation or a report of cumulative changes in paid-in
21 capital, whenever any amendment or such report discloses
22 an increase in its paid-in capital over the amount thereof
23 last reported in any document, other than an annual
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED:
805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.97 from Ch. 32, par. 15.97
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 or after January 1, 2025. 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, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately.
LRB103 37755 SPS 67883 b LRB103 37755 SPS 67883 b
LRB103 37755 SPS 67883 b
A BILL FOR
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.97 from Ch. 32, par. 15.97
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1 report, interim annual report or final transition annual
2 report required by this Act to be filed in the office of
3 the Secretary of State.
4 (c) An additional franchise tax at the time of filing
5 a report of paid-in capital following a statutory merger
6 or consolidation, which discloses that the paid-in capital
7 of the surviving or new corporation immediately after the
8 merger or consolidation is greater than the sum of the
9 paid-in capital of all of the merged or consolidated
10 corporations as last reported by them in any documents,
11 other than annual reports, required by this Act to be
12 filed in the office of the Secretary of State; and in
13 addition, the surviving or new corporation shall be liable
14 for a further additional franchise tax on the paid-in
15 capital of each of the merged or consolidated corporations
16 as last reported by them in any document, other than an
17 annual report, required by this Act to be filed with the
18 Secretary of State from their taxable year end to the next
19 succeeding anniversary month or, in the case of a
20 corporation which has established an extended filing
21 month, the extended filing month of the surviving or new
22 corporation; however if the taxable year ends within the
23 2-month period immediately preceding the anniversary month
24 or, in the case of a corporation which has established an
25 extended filing month, the extended filing month of the
26 surviving or new corporation the tax will be computed to
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1 the anniversary month or, in the case of a corporation
2 which has established an extended filing month, the
3 extended filing month of the surviving or new corporation
4 in the next succeeding calendar year.
5 (d) An annual franchise tax payable each year with the
6 annual report which the corporation is required by this
7 Act to file.
8 On or after January 1, 2020 and prior to January 1, 2021,
9 the first $30 in liability is exempt from the tax imposed under
10 this Section. On or after January 1, 2021, and prior to January
11 1, 2024, the first $1,000 in liability is exempt from the tax
12 imposed under this Section. On or after January 1, 2024 and
13 prior to January 1, 2025, the first $5,000 in liability is
14 exempt from the tax imposed under this Section. The provisions
15 of this Section shall not require the payment of any franchise
16 tax that would otherwise have been due and payable on or after
17 January 1, 2025. There shall be no refunds or proration of
18 franchise tax for any taxes due and payable on or after January
19 1, 2025 on the basis that a portion of the corporation's
20 taxable year extends beyond January 1, 2025.
21 This Section is repealed on January 1, 2026.
22 (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
23 (Text of Section from P.A. 102-282, 102-558, and 103-8)
24 Sec. 15.35. Franchise taxes payable by domestic
25 corporations. For the privilege of exercising its franchises
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1 in this State, each domestic corporation shall pay to the
2 Secretary of State the following franchise taxes, computed on
3 the basis, at the rates and for the periods prescribed in this
4 Act:
5 (a) An initial franchise tax at the time of filing its
6 first report of issuance of shares.
7 (b) An additional franchise tax at the time of filing
8 (1) a report of the issuance of additional shares, or (2) a
9 report of an increase in paid-in capital without the
10 issuance of shares, or (3) an amendment to the articles of
11 incorporation or a report of cumulative changes in paid-in
12 capital, whenever any amendment or such report discloses
13 an increase in its paid-in capital over the amount thereof
14 last reported in any document, other than an annual
15 report, interim annual report or final transition annual
16 report required by this Act to be filed in the office of
17 the Secretary of State.
18 (c) An additional franchise tax at the time of filing
19 a report of paid-in capital following a statutory merger
20 or consolidation, which discloses that the paid-in capital
21 of the surviving or new corporation immediately after the
22 merger or consolidation is greater than the sum of the
23 paid-in capital of all of the merged or consolidated
24 corporations as last reported by them in any documents,
25 other than annual reports, required by this Act to be
26 filed in the office of the Secretary of State; and in
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1 addition, the surviving or new corporation shall be liable
2 for a further additional franchise tax on the paid-in
3 capital of each of the merged or consolidated corporations
4 as last reported by them in any document, other than an
5 annual report, required by this Act to be filed with the
6 Secretary of State from their taxable year end to the next
7 succeeding anniversary month or, in the case of a
8 corporation which has established an extended filing
9 month, the extended filing month of the surviving or new
10 corporation; however if the taxable year ends within the
11 2-month period immediately preceding the anniversary month
12 or, in the case of a corporation which has established an
13 extended filing month, the extended filing month of the
14 surviving or new corporation the tax will be computed to
15 the anniversary month or, in the case of a corporation
16 which has established an extended filing month, the
17 extended filing month of the surviving or new corporation
18 in the next succeeding calendar year.
19 (d) An annual franchise tax payable each year with the
20 annual report which the corporation is required by this
21 Act to file.
22 On or after January 1, 2020 and prior to January 1, 2021,
23 the first $30 in liability is exempt from the tax imposed under
24 this Section. On or after January 1, 2021 and prior to January
25 1, 2024, the first $1,000 in liability is exempt from the tax
26 imposed under this Section. On or after January 1, 2024 and
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1 prior to January 1, 2025, the first $5,000 in liability is
2 exempt from the tax imposed under this Section. The provisions
3 of this Section shall not require the payment of any franchise
4 tax that would otherwise have been due and payable on or after
5 January 1, 2025. There shall be no refunds or proration of
6 franchise tax for any taxes due and payable on or after January
7 1, 2025 on the basis that a portion of the corporation's
8 taxable year extends beyond January 1, 2025.
9 This Section is repealed on January 1, 2026.
10 (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
11 103-8, eff. 6-7-23.)
12 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
13 Sec. 15.65. Franchise taxes payable by foreign
14 corporations. For the privilege of exercising its authority to
15 transact such business in this State as set out in its
16 application therefor or any amendment thereto, each foreign
17 corporation shall pay to the Secretary of State the following
18 franchise taxes, computed on the basis, at the rates and for
19 the periods prescribed in this Act:
20 (a) An initial franchise tax at the time of filing its
21 application for authority to transact business in this
22 State.
23 (b) An additional franchise tax at the time of filing
24 (1) a report of the issuance of additional shares, or (2) a
25 report of an increase in paid-in capital without the
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1 issuance of shares, or (3) a report of cumulative changes
2 in paid-in capital or a report of an exchange or
3 reclassification of shares, whenever any such report
4 discloses an increase in its paid-in capital over the
5 amount thereof last reported in any document, other than
6 an annual report, interim annual report or final
7 transition annual report, required by this Act to be filed
8 in the office of the Secretary of State.
9 (c) Whenever the corporation shall be a party to a
10 statutory merger and shall be the surviving corporation,
11 an additional franchise tax at the time of filing its
12 report following merger, if such report discloses that the
13 amount represented in this State of its paid-in capital
14 immediately after the merger is greater than the aggregate
15 of the amounts represented in this State of the paid-in
16 capital of such of the merged corporations as were
17 authorized to transact business in this State at the time
18 of the merger, as last reported by them in any documents,
19 other than annual reports, required by this Act to be
20 filed in the office of the Secretary of State; and in
21 addition, the surviving corporation shall be liable for a
22 further additional franchise tax on the paid-in capital of
23 each of the merged corporations as last reported by them
24 in any document, other than an annual report, required by
25 this Act to be filed with the Secretary of State, from
26 their taxable year end to the next succeeding anniversary
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1 month or, in the case of a corporation which has
2 established an extended filing month, the extended filing
3 month of the surviving corporation; however if the taxable
4 year ends within the 2-month period immediately preceding
5 the anniversary month or the extended filing month of the
6 surviving corporation, the tax will be computed to the
7 anniversary or, extended filing month of the surviving
8 corporation in the next succeeding calendar year.
9 (d) An annual franchise tax payable each year with any
10 annual report which the corporation is required by this
11 Act to file.
12 On or after January 1, 2020 and prior to January 1, 2021,
13 the first $30 in liability is exempt from the tax imposed under
14 this Section. On or after January 1, 2021 and prior to January
15 1, 2025, the first $1,000 in liability is exempt from the tax
16 imposed under this Section.The provisions of this Section
17 shall not require the payment of any franchise tax that would
18 otherwise have been due and payable on or after January 1,
19 2025. There shall be no refunds or proration of franchise tax
20 for any taxes due and payable on or after January 1, 2025 on
21 the basis that a portion of the corporation's taxable year
22 extends beyond January 1, 2025.
23 This Section is repealed on January 1, 2026.
24 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
25 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
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1 (805 ILCS 5/15.97) (from Ch. 32, par. 15.97)
2 Sec. 15.97. Corporate Franchise Tax Refund Fund.
3 (a) Beginning July 1, 1993, a percentage of the amounts
4 collected under Sections 15.35, 15.45, 15.65, and 15.75 of
5 this Act shall be deposited into the Corporate Franchise Tax
6 Refund Fund, a special Fund hereby created in the State
7 treasury. From July 1, 1993, until December 31, 1994, there
8 shall be deposited into the Fund 3% of the amounts received
9 under those Sections. Beginning January 1, 1995, and for each
10 fiscal year beginning thereafter, 2% of the amounts collected
11 under those Sections during the preceding fiscal year shall be
12 deposited into the Fund.
13 (b) Beginning July 1, 1993, moneys in the Fund shall be
14 expended exclusively for the purpose of paying refunds payable
15 because of overpayment of franchise taxes, penalties, or
16 interest under Sections 13.70, 15.35, 15.45, 15.65, 15.75, and
17 16.05 of this Act and making transfers authorized under this
18 Section. Refunds in accordance with the provisions of
19 subsections (f) and (g) of Section 1.15 and Section 1.17 of
20 this Act may be made from the Fund only to the extent that
21 amounts collected under Sections 15.35, 15.45, 15.65, and
22 15.75 of this Act have been deposited in the Fund and remain
23 available. On or before August 31 of each year, the balance in
24 the Fund in excess of $100,000 shall be transferred to the
25 General Revenue Fund. Notwithstanding the provisions of this
26 subsection, for the period commencing on or after July 1,
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1 2022, amounts in the fund shall not be transferred to the
2 General Revenue Fund and shall be used to pay refunds in
3 accordance with the provisions of this Act. Within a
4 reasonable time after December 31, 2024, but no later than
5 December 31, 2025, the Secretary of State shall direct and the
6 Comptroller shall order transferred to the General Revenue
7 Fund all amounts remaining in the fund.
8 (c) This Act shall constitute an irrevocable and
9 continuing appropriation from the Corporate Franchise Tax
10 Refund Fund for the purpose of paying refunds upon the order of
11 the Secretary of State in accordance with the provisions of
12 this Section.
13 (d) This Section is repealed on January 1, 2026.
14 (Source: P.A. 102-282, eff. 1-1-22; 103-8, eff. 6-7-23.)
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