Taxes in Illinois
Issue Status:
HB 750 (Miller) Amends the State Finance Act. Creates the School District Property Tax Relief Fund. Requires annual appropriations from the education appropriation minimum to the School District Property Tax Relief Fund. Requires the Department of Revenue to annually certify the amounts of property tax relief grants that school districts will receive from the Fund. Sets forth procedures for appropriating these grants. Amends the Illinois Income Tax Act. Increases the tax rate for individuals, trusts, and estates from 3 percent to 5 percent and increased the tax rate for corporations from 4.8 percent to 8 percent. Includes retirement income within the definition of "base income" for certain individuals. Eliminates certain corporate exemptions. Creates the Family Tax Credit, which is a refundable tax credit. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Eliminates exemptions concerning newsprint and ink and concerning manufacturing and assembling machinery. Includes certain arts, entertainment, and recreation services within the definition of "sale at retail" in the Retailers' Occupation Tax Act. Amends the Property Tax Code. Requires county clerks to abate the extensions for educational purposes by the amount of the property tax relief grants. Amends the Motor Fuel Tax Law. Deletes provisions concerning discounts for timely filing and paying the taxes. Amends the School Code. In the State aid formula provisions, increases the foundation level of support and grant amount for supplemental general State aid. Provides for an education appropriation minimum and supplemental State aid for rapidly expanding school districts.
Status: House Rules Committee
NFIB Position: Oppose
HB 4388 (Tracy) Amends the Illinois Income Tax Act. Creates an income tax credit through taxable years ending before Dec. 31, 2014 to taxpayers who, during the taxable year, pay wages to one or more net new employees. Sets the amount of the credit at 50 percent of the amount of Illinois income taxes withheld by the taxpayer with respect to a net new employee, except that, for taxable years ending before Dec. 31, 2012, the credit is 75 percent of the amount of Illinois income taxes withheld if the taxpayer provides health and retirement benefits to that employee. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Defines "net new employees" as the number of Illinois-based employees on the taxpayer's withholding rolls on the last day of the current taxable year less the number of Illinois-based employees on the taxpayer's withholding rolls on Dec. 31, 2007. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 4607 (Bost) Amends the Illinois Income Tax Act. Provides that the credit for wages paid to qualified veterans also applies to wages paid to employees who are currently a member of the Illinois National Guard or a member of any reserve component of the Armed Forces of the United States. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 4636 (Collins) Increases the rate of tax on individuals and on trusts and estates from 3 percent to 4 percent on Jan. 1, 2009. Effective immediately.
Status: House Rules Committee
NFIB Position: Oppose
HB 4761 (Wait) Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2008, an individual taxpayer may deduct from adjusted gross income an amount equal to the medical, dental, and other expenses allowed as a deduction under Section 213 of the Internal Revenue Code to the extent allowed as a deduction from adjusted gross income in computing federal income taxes. Provides that to obtain this subtraction modification the taxpayer must submit to the Department, along with his or her tax return, a copy of the Schedule A form or any successor form completed and submitted for federal income tax purposes. Excepts the deduction from the sunset requirements. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 5001 (Flider) Amends the Use Tax Act and the Retailers' Occupation Tax Act. Extends the manufacturing and assembly exemption from 2008 to 2013. Provides that, for purchases made on or after July 1, 2008, and on or before June 30, 2013, the maximum aggregate amount of the exemptions for production related tangible personal property awarded under the Acts to all taxpayers may not exceed $29,000,000. Makes a technical change. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 5103 (Franks) Amends the Illinois Income Tax Act. Creates an income tax credit for individual taxpayers who purchase qualified merchandise during the period from 12:01 a.m. on the first Friday in August through midnight of the Sunday that follows 9 days later. Sets the amount of the credit at an amount equal to 6.25 percent of the purchase. Defines "qualified merchandise" as any article of clothing or footwear or computer that is sold at or below certain selling prices. Sets forth criteria for transactions to qualify for the credit. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 5104 (Cultra) This looks like a tax swap bill. In the Property Tax Code, creates the standard homestead exemption in an amount equal to $150,000 and repeals Sections concerning various other homestead exemptions. In the Illinois Income Tax Act, increases the rate of tax on individuals and on trusts and estates from 3 percent to 5.7 percent and requires that the additional revenue generated from the increased rate must be deposited into the Homestead Property Tax Replacement Fund. Creates that Fund in the State Finance Act and requires that, from the moneys in that Fund, the Department of Revenue must make grants to taxing districts in the State in the amount of any decreased property tax revenue due to the implementation of the standard homestead exemption.
Status: House Rules Committee
NFIB Position: Oppose
HB 5606 (Bellock) Amends the Illinois Income Tax Act. For taxable years ending on or after Dec. 31, 2008, allows small businesses that provide health care insurance for their employees to claim a tax credit in an amount equal to $100 for each employee covered, $50 for each spouse covered, and $40 for each dependent (up to 2 dependents) covered. Provides that the taxpayer may not carry the credit forward or back and that the credit may not reduce a taxpayer's liability to less than zero. Exempts the credit from the Act's sunset provisions. Effective immediately.
Status: House Rules Committee
NFIB Position: Support
HB 5951 (Hassert) Amends the Illinois Income Tax Act. Creates an income tax deduction for individual taxpayers in an amount equal to any private health insurance premiums paid by the taxpayer during the taxable year for coverage for the taxpayer and his or her dependents. Limits the deduction to $5,000 in any taxable year. Sets forth eligibility criteria.
Status: House Rules Committee
NFIB Position: Support
HB 5952 (Munson) Amends the Illinois Income Tax Act. Creates a credit for individual taxpayers who pay a private health insurance premium for coverage for themselves or for a dependent. Provides that the amount of the credit is equal to the premium paid during that taxable year up to $500 per covered individual, but not to exceed $1,000 per taxable year. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.
Status: House Rules Committee
NFIB Position: Support
SB 2288 (Meeks) Another Tax Swap bill -- Increases the income tax rates for individuals, trusts, and estates from 3 percent to 5 percent of the taxpayer's net income and increases the rate of income tax for corporations from 4.8 percent to 8 percent of the taxpayer's net income. Creates an income tax credit for families with incomes below certain levels. Creates the School District Property Tax Relief Fund, and requires the General Assembly appropriate certain amounts into the Fund. Provides that grants must be made from the Fund to school districts. Requires that property taxes be abated in school districts by the amount of the grants from the Fund.
Status: Senate Second Reading
NFIB Position: Oppose
SB 2301 (DeFrancesco) Amends the Illinois Income Tax Act. Creates an income tax credit for employers who pay costs in connection with a qualified wellness program. Provides that the amount of the credit is 50 percent of those costs per year up to $200 per employee for the first 200 employees and $100 per employee for the remaining employees. Sets forth the requirements for qualified wellness programs. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Effective immediately.
Status: House Third Reading Passed (060-052-001)
NFIB Position: Support
SB 2339 (Link) Amends the Use Tax Act and the Retailers' Occupation Tax Act. Extends the manufacturing and assembling machinery and equipment exemption from June 30, 2008 to June 30, 2013. Effective immediately.
Status: Senate Rules Committee
NFIB Position: Support
SB 2631 (Dahl) Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying after Dec. 31, 2008 (now, Dec. 31, 2009), the "State tax credit" is the amount.
Status: Senate Rules Committee
NFIB Position: Support
SB 2859 (Kotowski) Amends the Illinois Income Tax Act concerning the credit for wages paid to qualified veterans. Extends the credit to also apply to wages paid to qualified veterans who did not serve on active duty in Southwest Asia. Increases the amount of the credit to (i) 10 percent (but in no event to exceed $1,200) of the gross wages paid to qualified veterans who served on active duty in Southwest Asia and (ii) 7.5 percent (but in no event to exceed $800) of the gross wages paid to all other qualified veterans.
Status: House Rules Committee
NFIB Position: Support
