Illinois General Assembly - Full Text of HB4430
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Full Text of HB4430  103rd General Assembly



State of Illinois
2023 and 2024


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


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.

LRB103 36817 HLH 66928 b





HB4430LRB103 36817 HLH 66928 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 241 as follows:
6    (35 ILCS 5/241 new)
7    Sec. 241. Small business property tax relief credit.
8    (a) For taxable years ending on or after December 31,
92024, each qualified small business is entitled to a credit
10against the taxes imposed by subsections (a) and (b) of
11Section 201 in an amount equal to the lesser of (i) 10% of the
12property taxes paid by the qualified small business during the
13taxable year for eligible real property or (ii) $1,500.
14    (b) In no event shall a credit under this Section reduce
15the taxpayer's liability to less than zero. If the amount of
16the credit exceeds the tax liability for the year, the excess
17may be carried forward and applied to the tax liability of the
185 taxable years following the excess credit year. The tax
19credit shall be applied to the earliest year for which there is
20a tax liability. If there are credits for more than one year
21that are available to offset a liability, the earlier credit
22shall be applied first.
23    (c) If the taxpayer is a partnership or Subchapter S



HB4430- 2 -LRB103 36817 HLH 66928 b

1corporation, the credit is allowed to pass through to the
2partners and shareholders as provided in Section 251.
3    (d) This Section is exempt from the provisions of Section
5    (e) As used in this Section:
6    "Eligible real property" means property located in
7Illinois that meets the following criteria:
8        (1) the taxpayer has an ownership interest in the
9    property, whether legal, equitable, or as a lessee, and
10    the taxpayer is liable for the payment of property taxes
11    on the property;
12        (2) the property is used to conduct the taxpayer's
13    business operations; and
14        (3) the property is not residential.
15    "Qualified small business" means a sole proprietorship,
16partnership, corporation, joint venture, association, or
17cooperative that conducts business in Illinois, employs fewer
18than 50 employees in the State during the taxable year, and is
19current with all State and federal tax obligations as of the
20last day of the taxable year.
21    Section 99. Effective date. This Act takes effect upon
22becoming law.