summary
Introduced
02/06/2025
02/06/2025
In Committee
06/02/2025
06/02/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Makes changes in provisions concerning (i) an addition modification for interest paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act and (ii) an addition modification for intangible expenses and costs otherwise allowed as a deduction in computing the taxpayer's base income that were paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act by modifying provisions related to interest and intangible expenses for certain business transactions. Specifically, the bill introduces changes for taxable years ending on or after December 31, 2025, concerning how interest deductions are treated for tax purposes. For businesses with transactions involving foreign or related entities, the bill provides new rules for allocating interest expense reductions and creates additional exceptions for how these modifications are applied. The bill allows taxpayers to potentially subtract certain interest income or intangible property income under specific circumstances, particularly when these transactions involve entities that would be part of a unitary business group but are not due to specific reporting requirements. The changes aim to provide more clarity and flexibility in how businesses calculate their tax liability, especially for complex multinational or multi-entity corporate structures, while also preventing potential tax avoidance strategies.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 06/02/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1956&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1956.htm |
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