One of the notable changes introduced by SB1535 includes the repeal of provisions imposing a franchise tax on corporations, effective December 31, 2024. This bill specifies that corporations will benefit from an exemption on the first $10,000 in liability for the tax from January 1, 2022, until January 1, 2023, and on the first $100,000 from January 1, 2023, until January 1, 2024. These changes could stimulate economic growth by providing temporary financial relief to small businesses and fostering a more favorable corporate environment within the state.
SB1535, introduced by Senator Dan McConchie, proposes significant amendments to the Illinois Income Tax Act, specifically addressing the federal depreciation deduction and net operating losses. The bill aims to restore provisions that were previously in effect prior to Public Act 102-16. In addition, it seeks to amend the Illinois Estate and Generation-Skipping Transfer Tax Act to ensure that no tax is imposed for individuals dying on or after the effective date of the amended Act, as well as for transfers made after this date. This can potentially impact many families and estates in Illinois as they navigate estate planning and settlement processes.
The amendments proposed in SB1535 are likely to provoke discussion and debate among lawmakers and stakeholders regarding the efficiency and equity of Illinois' tax system. Supporters may argue that these provisions will promote business growth and better align state law with federal tax incentives, while critics may raise concerns over potential revenue losses for state programs. Additionally, the bill's implications for estate taxation could spark debate about fair taxation practices and the fiscal responsibility of the state government.