Bill > SB2188

This bill amends the Illinois Income Tax Act to create a new tax credit for small financial institutions with less than $50 billion in assets. The credit allows these institutions to claim a credit against their income tax equal to the total amount of fees, penalties, and other income derived from commercial loans that meet four specific criteria: (1) the loan is less than $5 million, (2) originated by the financial institution, (3) made to a person in Illinois, and (4) primarily for a business or agricultural project in the state. For partnerships and S corporations, the credit will be passed through to partners or shareholders according to existing tax allocation rules. The bill defines "financial institution" broadly to include banks, savings and loan associations, and savings banks operating under state or federal law. The tax credit provision will take effect for tax years ending after July 1, 2025, and is exempted from certain standard legislative review provisions. This credit aims to incentivize smaller financial institutions to provide loans to local businesses and agricultural enterprises in Illinois by offsetting the income they generate from such loans.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2188&GAID=18&DocTypeID=SB&SessionID=114&GA=104