Bill > HB2846

This bill effectively repeals the franchise tax for domestic and foreign corporations in Illinois, with key provisions including the elimination of franchise tax payments for taxes that would have been due on or after January 1, 2026. Specifically, the bill amends the Business Corporation Act of 1983 to stop requiring corporations to pay annual franchise taxes and removes any administrative or judicial sanctions related to nonpayment of these taxes after this date. The legislation also mandates that all remaining funds in the Corporate Franchise Tax Refund Fund be transferred to the General Revenue Fund no later than December 31, 2026. No refunds or prorations of franchise taxes will be allowed for any taxes due on or after January 1, 2026, even if a portion of a corporation's taxable year extends beyond that date. The provisions related to franchise taxes will be completely repealed on January 1, 2027, effectively ending this tax obligation for corporations operating in Illinois. This change represents a significant reduction in corporate tax burden and administrative requirements for businesses in the state.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2846&GAID=18&DocTypeID=HB&SessionID=114&GA=104