summary
Introduced
02/05/2026
02/05/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Small Business Asset Purchase Account Act. Provides that a small business in the State may open a small business asset purchase account at an eligible financial institution. Provides that funds from a small business asset purchase account may be used only for specified eligible costs. Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to 50% of the amount contributed during the taxable year to a small business asset purchase account. Creates a deduction of 100% of the interest earned on the account that is not included in the taxpayer's federal adjusted gross income. Amends the Uniform Penalty and Interest Act to provide for penalties for amounts withdrawn that are not used for eligible costs.
AI Summary
This bill establishes the Small Business Asset Purchase Account Act, allowing eligible small businesses in Illinois to open a special account at a financial institution to save for specific business expenses, known as "eligible costs," which are defined as purchases primarily used in Illinois and eligible for a federal Section 179 tax deduction. The bill also amends the Illinois Income Tax Act to provide tax benefits for these accounts, including a deduction of 50% of the amount contributed to the account and a full deduction for any interest earned on the account that isn't already excluded from federal income. Additionally, it introduces penalties for withdrawing funds from these accounts for purposes other than eligible costs, as outlined in the Uniform Penalty and Interest Act.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned to Revenue (on 02/17/2026)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...