Bill Status of HB 3477   102nd General Assembly

Short Description:  INC TX-COMBINED REPORTING

House Sponsors
Rep. Delia C. Ramirez, Kelly M. Cassidy, Will Guzzardi and Anna Moeller

Last Action  View All Actions

DateChamber Action
  1/10/2023HouseSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 5/304from Ch. 120, par. 3-304
35 ILCS 5/304.1 new
35 ILCS 5/1501from Ch. 120, par. 15-1501

Synopsis As Introduced
Amends the Illinois Income Tax Act. Provides that all the corporations, wherever incorporated or domiciled, that are members of a unitary business shall file a combined return as a combined group. Makes changes to the definition of "unitary business". Contains provisions concerning a water's edge election. Provides that, with respect to unitary business groups, "United States" means the 50 states of the United States, the District of Columbia, and United States' territories and possessions.

 Fiscal Note (Dept. of Revenue)
 The revenue impact of this bill is unknown. Several issues need to be addressed before determining if and how this bill might impact State revenues. As an example, in a provision relating to a water's-edge election, the bill provides that a taxpayer's "entire income" must be considered. The bill does not define "entire income" nor is this a relevant term in the Illinois Income Tax Act. Aside from this and similar type issues needing addressed, there are other challenges to determining a fiscal impact. For example, where there might be a revenue impact, there is no way to compute an estimate since the provision brings income into the apportionable base from companies that previously have not had to file with the Department. There is no way for the Department to know anything about those companies, their income, or their apportionment factors. In fact, the Department cannot definitively say whether the overall revenue impact of this bill, as written, is positive, negative, or neutral.

Actions 
DateChamber Action
  2/19/2021HouseFiled with the Clerk by Rep. Delia C. Ramirez
  2/22/2021HouseFirst Reading
  2/22/2021HouseReferred to Rules Committee
  3/16/2021HouseAssigned to Revenue & Finance Committee
  3/22/2021HouseFiscal Note Filed
  3/25/2021HouseAdded Co-Sponsor Rep. Kelly M. Cassidy
  3/27/2021HouseRule 19(a) / Re-referred to Rules Committee
  5/7/2021HouseAdded Co-Sponsor Rep. Will Guzzardi
  5/14/2021HouseAdded Co-Sponsor Rep. Anna Moeller
  2/9/2022HouseAssigned to Revenue & Finance Committee
  2/15/2022HouseTo Income Tax Subcommittee
  2/18/2022HouseRule 19(a) / Re-referred to Rules Committee
  1/10/2023HouseSession Sine Die

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