Bill > SB1739

This bill amends the Illinois Income Tax Act to modify how gains and losses from certain pass-through entities are allocated for tax purposes. Specifically, for sales or exchanges of shares in a Subchapter S corporation or interests in certain partnerships (excluding investment partnerships), the gains and losses will be allocated to Illinois proportionally based on the average of the pass-through entity's Illinois apportionment factor in the year of sale and the two preceding tax years. If the pass-through entity did not exist during both of the preceding two years, only the years in which the entity was actually in existence will be used to calculate the average. This changes how these types of business income are attributed to the state for tax calculation purposes, providing a more nuanced approach that takes into account the entity's consistent presence and economic activity in Illinois over multiple years, rather than just the year of the sale or exchange.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1739&GAID=18&DocTypeID=SB&SessionID=114&GA=104