Bill > HB5191

This bill amends the Illinois Income Tax Act to provide partnerships that elect to pay an entity-level tax with two options for determining their tax base: either the full distributive share method, where the partnership pays tax on the entire net income allocated to each resident partner and the portion of income for non-resident partners that is sourced to Illinois, or the Illinois-sourced income method, where the partnership pays tax only on the portion of each partner's distributive share of net income that is derived from or attributable to Illinois sources. These options, which become available for taxable years beginning on or after January 1, 2026, allow partnerships to choose the method that best suits their tax situation, with the chosen method being irrevocable for that taxable year.

https://www.ilga.gov/Legislation/BillStatus?DocNum=5191&GAID=18&DocTypeID=HB&SessionID=114&GA=104