HB4430 103RD GENERAL ASSEMBLY

LRB103 36817 HLH 66928 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4430

Introduced 1/16/2024, by Rep. Debbie Meyers-Martin

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Small business property tax relief credit.

(a) For taxable years ending on or after December 31, 2024, each qualified small business is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to pass through to the partners and shareholders as provided in Section 251.

(d) This Section is exempt from the provisions of Section 250.

(e) As used in this Section:

"Eligible real property" means property located in Illinois that meets the following criteria:

(1) the taxpayer has an ownership interest in the property, whether legal, equitable, or as a lessee, and the taxpayer is liable for the payment of property taxes on the property;

(2) the property is used to conduct the taxpayer's business operations; and

(3) the property is not residential.

"Qualified small business" means a sole proprietorship, partnership, corporation, joint venture, association, or cooperative that conducts business in Illinois, employs fewer than 50 employees in the State during the taxable year, and is current with all State and federal tax obligations as of the last day of the taxable year.

Section 99. Effective date. This Act takes effect upon becoming law.