Bill > HB5527

This bill amends the Illinois Income Tax Act to adjust the calculation for the research and development (R&D) credit, which is a tax incentive for businesses investing in innovation within the state. Specifically, it changes how the increase in a taxpayer's research activities in Illinois is measured against their historical research expenditures. Previously, the credit was based on the increase over 100% of qualifying expenditures from a base period, but this bill modifies that to be based on the increase over 50% of those base period expenditures, effectively making it easier to qualify for a larger credit by demonstrating a smaller relative increase in R&D activities. The bill also includes a provision that exempts this specific subsection (k) from Section 250 of the Act, which typically deals with various tax credits and their limitations.

https://www.ilga.gov/Legislation/BillStatus?DocNum=5527&GAID=18&DocTypeID=HB&SessionID=114&GA=104