Bill > HB3776

This bill amends the Illinois Income Tax Act to modify the limitations on net operating loss (NOL) carryover deductions for corporations. Specifically, the bill removes a previous provision that would have limited NOL carryover deductions to $500,000 for tax years ending between December 31, 2024, and December 31, 2027. Instead, the bill declares the intent of the General Assembly to fully repeal this limitation, making it inapplicable for all tax years ending on or after December 31, 2024. Net operating losses are accounting mechanisms that allow businesses to use losses from one tax year to offset profits in other tax years, which can help reduce a company's overall tax liability. By removing the previous $500,000 cap, the bill provides more flexibility for corporations to utilize their net operating losses across multiple tax years. The bill takes effect immediately upon passage, meaning corporations can potentially benefit from the expanded NOL deduction in upcoming tax years.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3776&GAID=18&DocTypeID=HB&SessionID=114&GA=104