Bill > HB4274

This bill, titled the Master Development Plan Recognition Act, aims to clarify how certain financial contributions made by the State or local governments are treated for tax purposes. Specifically, it establishes that contributions made under an approved "master development plan" (a comprehensive strategy for economic and community revitalization) will be recognized as such for the purposes of Section 118 of the Internal Revenue Code, which deals with contributions to capital. This recognition is important because it allows for a deduction on Illinois income taxes for capital contributions that are included in a taxpayer's federal taxable income and made under such a plan. The bill also amends the Illinois Income Tax Act to create this specific deduction, ensuring that these government contributions supporting economic development are not taxed twice. This legislation takes effect immediately upon becoming law.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4274&GAID=18&DocTypeID=HB&SessionID=114&GA=104