April 20 - Webinar - Introduction to Illinois sales taxes and an Illinois update. 2 hours of Illinois CPE and CLE submitted for approval. Free to Tax Institute members. Register at this link
April 25 - Tax Institute Quarterly meeting - 2:00 - 4:00 pm. We are planning a hybrid meeting with an in person option at our Chicago offices and a webcast for those who don't wish to attend in person. I'll present a legislative wrap up
Special Guest - Roger Koss - Head of the IDOR Audit Bureau who will give an update and answer questions. RSVP to Keith
April 9, 2022
State and Local Tax
Special End of Session Edition
Illinois General Assembly
The House and Senate wrapped up the spring legislative session after an all night session that ended close to dawn on Saturday..
The budget and budget implementation legislation passed both chambers.
The tax-related changes were passed in SB 157 amendment 2. The following provisions are included in the tax bill:
The EDGE credit sunset date for new agreements is extended to June 30, 2027 and the credit is expanded to startup businesses.(P. 1 -19 - the page references are to amendment 2)
The River Edge Redevelopment Zone Act is amended to expand the definition of "undeserved area." (P. 22-23)
The Film Production Tax Credit is amended. (P. 23)
The Live Theater Production Tax Credit Act is amended. (P.35)
The sales taxation of Biodiesel is amended. (P.36 - 64)
The sunset dates for the Hospital income tax credit available to for-profit hospitals and the sales tax exemption for not-for-profit hospitals are extended to December 31, 2027. (P. 65 - 112)
Organ Donation income tax credit. (P. 123 - 125)
Additional property tax income tax credit (P. 130 - 131)
Individual Income income tax rebates - $50 for individuals and $100 for a joint return, and $100 for each dependent up to 3 dependents. (P. 132)
Motor Fuel taxes - the 2.2 cents per gallon increase in the motor fuel tax originally scheduled to go into effect on July 1 is delayed. On January 1, 2023, the Motor Fuel Tax will be increased by the increase in the Consumer Price Index for the 12 month period ending in September 2022. On July 1, 2023 there will be another inflation adjustment to the Motor Fuel Tax. The legislation provides that beginning July 1 through December 31, motor fuel retailers are required to post a notice on the pumps announcing that the State of Illinois suspended the inflation adjustment. (P. 145 - 151)
The Reimagining Electric Vehicles in Illinois Act is amended to expand the definition of electric vehicle component parts manufacturers to include manufacturers of advanced battery components and the definition of electric vehicle power supply equipment to include hydrogen fuel cells or solar refueling infrastructure, In addition, the definition of electric vehicle power supply manufacturer is expanded to include hydrogen fuel cell or solar refueling infrastructure.. (p. 152 - 167)
The earned income credit is increased to 20% of the federal earned income tax credit and is expanded to include in the Illinois credit the following persons who are ineligible the federal credit - individuals between the age of 18 and 24, individuals aged 65 and older, and individuals filing an individual income tax return using an individual taxpayer identification number. (P. 167 - 172)
The 1% state sales tax on groceries is suspended from July 1, 2022 until July 1, 2023. (P. 172 - 528)
School supplies sales tax holiday (P. 528 - 641)
Sales tax exemption for breast pumps (P. 641 - 725)
Coal and aggregate mining equipment exemption sunset is extended to July 1, 2028. (P. 725 - 802)
Income tax credit for teachers for instructional materials and supplies is increased. (P. 806 - 807)
New income tax credit for agritourism liability insurance. (P. 807 - 811)
The Parking Excise Tax is amended to eliminate language that defines "charge or fee paid for parking" and the definition of "booking intermediary." (P. 811 - 815)
The Unemployment Insurance Act is amended. P 815 - 842)
Amendment 3 establishes Manufacturing Illinois Chips for Real Opportunity Act. The legislative findings state in relevant part that "It is the intent of the General Assembly that Illinois should lead the nation in production of semiconductors and microchips as they become even more prevalent in everyday life. The General Assembly finds that, through investments in semiconductors and microchips, Illinois will be on the forefront of reshoring semiconductor and microchip production that fuels modern technologies that are essential to the operation of computers, phones, vehicles and any electric product that have become essential to modern life."
The legislation establishes a series of tax credits for taxpayers that (i) operates a business in Illinois as a semiconductor manufacturer, a microchip manufacturer, or a manufacturer of semiconductor or microchip component parts; or (ii) is planning to locate a business within the State of Illinois as a semiconductor manufacturer, a microchip manufacturer, or a manufacturer of semiconductor or microchip component parts.
