Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1271 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1271 Introduced 1/28/2025, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new35 ILCS 5/247 new35 ILCS 5/248 new Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately. LRB104 03817 HLH 13841 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1271 Introduced 1/28/2025, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new35 ILCS 5/247 new35 ILCS 5/248 new 35 ILCS 5/246 new 35 ILCS 5/247 new 35 ILCS 5/248 new Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately. LRB104 03817 HLH 13841 b LRB104 03817 HLH 13841 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1271 Introduced 1/28/2025, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/246 new35 ILCS 5/247 new35 ILCS 5/248 new 35 ILCS 5/246 new 35 ILCS 5/247 new 35 ILCS 5/248 new
4	4	35 ILCS 5/246 new
5	5	35 ILCS 5/247 new
6	6	35 ILCS 5/248 new
7	7	Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.
8	8	LRB104 03817 HLH 13841 b LRB104 03817 HLH 13841 b
9	9	LRB104 03817 HLH 13841 b
10	10	A BILL FOR
11	11	SB1271LRB104 03817 HLH 13841 b SB1271 LRB104 03817 HLH 13841 b
12	12	SB1271 LRB104 03817 HLH 13841 b
13	13	1 AN ACT concerning State government.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Income Tax Act is amended by
17	17	5 adding Sections 246, 247, and 248 as follows:
18	18	6 (35 ILCS 5/246 new)
19	19	7 Sec. 246. Legacy credit.
20	20	8 (a) For taxable years beginning on or after January 1,
21	21	9 2025, any sole proprietorship, limited liability company, or
22	22	10 corporation that is headquartered in the State is entitled to
23	23	11 a credit against the taxes imposed by subsections (a) and (b)
24	24	12 of Section 201 in an amount equal to $100 multiplied by the
25	25	13 number of years during which the taxpayer has been
26	26	14 headquartered in Illinois as of the last day of the taxable
27	27	15 year.
28	28	16 (b) If the taxpayer is a Subchapter S corporation, the
29	29	17 credit shall be allowed to shareholders in accordance with the
30	30	18 determination of income and distributive share of income under
31	31	19 subchapter S of the Internal Revenue Code.
32	32	20 (c) In no event shall a credit under this Section reduce
33	33	21 the taxpayer's liability to less than zero. If the amount of
34	34	22 the credit exceeds the tax liability for the year, the excess
35	35	23 may be carried forward and applied to the tax liability of the
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1271 Introduced 1/28/2025, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 5/246 new35 ILCS 5/247 new35 ILCS 5/248 new 35 ILCS 5/246 new 35 ILCS 5/247 new 35 ILCS 5/248 new
41	41	35 ILCS 5/246 new
42	42	35 ILCS 5/247 new
43	43	35 ILCS 5/248 new
44	44	Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.
45	45	LRB104 03817 HLH 13841 b LRB104 03817 HLH 13841 b
46	46	LRB104 03817 HLH 13841 b
47	47	A BILL FOR
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53	53	35 ILCS 5/246 new
54	54	35 ILCS 5/247 new
55	55	35 ILCS 5/248 new
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59	59	LRB104 03817 HLH 13841 b
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74	74	1 5 taxable years following the excess credit year. The tax
75	75	2 credit shall be applied to the earliest year for which there is
76	76	3 a tax liability. If there are credits for more than one year
77	77	4 that are available to offset a liability, the earlier credit
78	78	5 shall be applied first.
79	79	6 (d) This Section is exempt from the provisions of Section
80	80	7 250.
81	81	8 (35 ILCS 5/247 new)
82	82	9 Sec. 247. Employee tax credit.
83	83	10 (a) For taxable years beginning on or after January 1,
84	84	11 2025, any sole proprietorship, limited liability company, or
85	85	12 corporation that has a business location in the State is
86	86	13 entitled to a credit against the taxes imposed by subsections
87	87	14 (a) and (b) of Section 201 in an amount equal to $100 for each
88	88	15 employee who is a resident of the State and is on the
89	89	16 employer's payroll with 6 or more months of consecutive
90	90	17 employment with the employer at the end of the taxable year.
91	91	18 (b) If the taxpayer is a Subchapter S corporation, the
92	92	19 credit shall be allowed to shareholders in accordance with the
93	93	20 determination of income and distributive share of income under
94	94	21 subchapter S of the Internal Revenue Code.
95	95	22 (c) In no event shall a credit under this Section reduce
96	96	23 the taxpayer's liability to less than zero. If the amount of
97	97	24 the credit exceeds the tax liability for the year, the excess
98	98	25 may be carried forward and applied to the tax liability of the
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109	109	1 5 taxable years following the excess credit year. The tax
110	110	2 credit shall be applied to the earliest year for which there is
111	111	3 a tax liability. If there are credits for more than one year
112	112	4 that are available to offset a liability, the earlier credit
113	113	5 shall be applied first.
114	114	6 (d) This Section is exempt from the provisions of Section
115	115	7 250.
116	116	8 (35 ILCS 5/248 new)
117	117	9 Sec. 248. Collective bargaining employee tax credit.
118	118	10 (a) For taxable years beginning on or after January 1,
119	119	11 2025, any sole proprietorship, limited liability company, or
120	120	12 corporation that has a business location in the State is
121	121	13 entitled to a credit against the taxes imposed by subsections
122	122	14 (a) and (b) of Section 201 in an amount equal to $25 for each
123	123	15 employee who is a resident of the State, qualifies under the
124	124	16 definitions of the National Labor Standards Board, and has 6
125	125	17 or more months of consecutive employment with the employer at
126	126	18 the end of the taxable year.
127	127	19 (b) If the taxpayer is a Subchapter S corporation, the
128	128	20 credit shall be allowed to shareholders in accordance with the
129	129	21 determination of income and distributive share of income under
130	130	22 subchapter S of the Internal Revenue Code.
131	131	23 (c) In no event shall a credit under this Section reduce
132	132	24 the taxpayer's liability to less than zero. If the amount of
133	133	25 the credit exceeds the tax liability for the year, the excess
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144	144	1 may be carried forward and applied to the tax liability of the
145	145	2 5 taxable years following the excess credit year. The tax
146	146	3 credit shall be applied to the earliest year for which there is
147	147	4 a tax liability. If there are credits for more than one year
148	148	5 that are available to offset a liability, the earlier credit
149	149	6 shall be applied first.
150	150	7 (d) This Section is exempt from the provisions of Section
151	151	8 250.
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157	157	SB1271 - 4 - LRB104 03817 HLH 13841 b