Bill > SB2390

This bill amends the Illinois Income Tax Act to create a new tax credit called the Illinois Innovation Credit. Specifically, for tax years ending on or after December 31, 2025, taxpayers can claim a credit equal to 1.3% of their qualified research expenses made within Illinois. The credit cannot reduce a taxpayer's tax liability below zero, and any unused credit can be carried forward and applied to tax liability for the next 5 taxable years. Qualified research is defined as activities designed to promote new computer modeling technology, 3-D modeling or imaging technology, public infrastructure materials, or public infrastructure design. Qualified research expenses include wages paid to employees for qualified services and amounts paid for supplies used in research. The bill also clarifies that taxpayers do not need to have obtained a federal research and development credit to qualify for this state-level credit, making it more accessible to businesses conducting innovative research in Illinois.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2390&GAID=18&DocTypeID=SB&SessionID=114&GA=104