Save the date for the Illinois Chamber Day - a virtual event. Here is a link with a bit more information
April 2, 2021
State and Local Tax
This Week
Illinois General Assembly
The House and Senate were not n session this week. The Senate is scheduled to return to Springfield on April 13 and the House may also return to Springfield on April 13.
As discussed in last week's newsletter last Friday was the official deadline for moving bills out of committee in the chamber of origin. In the House, every bill that was posted to the House Revenue committee was referred back to the Rules committee. In the Senate, the bills posted to the Senate Revenue committee remain posted to the committee despite last Friday's deadline.
As I discussed last week, the Senate has a longstanding tradition of allowing deadline extensions upon request of sponsor.
As of today, the House and the Senate Revenue committees have not scheduled their next hearing.
The House Revenue committee met on Thursday. The committee held subject matter hearings on a number of bills. The committee took testimony from proponents and opponents, but did not vote on any of the bills at the April 1 hearing. All of the bills for which subject matter testimony was given are currently back in the Rules committee.
I registered our opposition to certain of the bills:
HB 860 the Cook County Assessor's so called "data modernization bill is scheduled for a subject matter hearing on April 1. We remain strongly opposed to HB 860.
HB 95 - Halpin - Creates the Company-Specific Subsidy Interstate Compact. Enters into the compact, which may be entered into by any state and the District of Columbia, in which each member state agrees to not offer company-specific subsidies for companies currently located in or considering locating in the member state, including, but not limited to, for corporate headquarters, manufacturing facilities, office space, or other real estate developments. Excludes existing company-specific subsidies (until terms change, are renewed, or are reenacted) and workforce development grants. Creates the Interstate Company-Specific Subsidy Board upon the second member state entering into the compact. Provides for withdrawal of a member state with 6 months' written notice. Defines terms.
HB 3164 - Hernandez - Creates the Wire Transfer Tax Act. Provides that a tax of 1% of the amount transferred is imposed on each wire transfer originating from within the State. Provides that the moneys received from the tax shall be deposited into the Illinois DREAM Fund. Amends the Higher Education Student Assistance Act to make conforming changes.
There is also a Chamber Tax Institute initiative that we strongly support that was heard by the committee:
HB 570 - Carroll - Amends the Tobacco Products Tax Act of 1995. Provides that, beginning on January 1, 2022, the tax per cigar or other rolled tobacco product shall not exceed $0.50 per cigar or roll. Provides that distributors are allowed a discount in the amount of 2% of the distributor's tax liability, but not to exceed $2,000 per return.
Amendments with tax-related provisions filed this week:
SB 1100 - Harmon - This bill was passed out of Executive committee last week as a shell bill. Earlier this week, the bill was amended as follows: Replaces everything after the enacting clause. Creates the Energy Community Reinvestment Act. Provides that the Department of Commerce and Economic Opportunity shall designate certain regions impacted by the decline of coal generation, gas generation, nuclear generation, and coal mining as Empowerment Zones. Creates the Energy Workforce Development Program and Energy Community Development Program.
Creates the Empowerment Zone Tax Credit Act. Creates a tax credit for applicants operating a business in the State that hires a former energy worker or graduate or trainee from an equity-focused workforce training program designated by the Illinois Power Agency as a new employee. Creates a tax credit for applicants operating a renewable energy enterprise that proposes a project to create new jobs and invest in the development of a renewable energy production facility in an Empowerment Zone. Amends the Illinois Administrative Procedure Act to allow for emergency rulemaking.
Amends the Illinois Power Agency Act. Makes changes in provisions concerning the general powers of the Agency; the Illinois Power Agency Renewable Energy Resources Fund, Illinois Solar for All Program; and the Planning and Procurement Bureau. Creates the Coal Plant Retirement Advisory Committee. Amends the State Finance Act to create the Energy Community Reinvestment Fund. Amends the Illinois Works Jobs Program Act. Makes changes in provisions concerning definitions and the Illinois Works Preapprenticeship Program, Illinois Works Bid Credit Program.
Amends the School Construction Law. Makes changes in provisions concerning supervision of school construction projects. Amends the Public Utilities Act. Makes changes in provisions concerning energy efficiency and demand-response measures; recovery of costs associated with the provision of delivery and other services; provisions relating to procurement; customer information; and the establishment of customer information centers for electric utilities and alternative retail electric suppliers.
Creates provisions concerning the Beneficial Electrification Portfolio Standard; the Supplemental Low-Income Transportation Electrification Subsidy Program; the Clean Energy Integrated Distribution Plan; the Public Schools Carbon-Free Assessment Programs; the public solicitation process; the utility data reporting requirement; the utility plant disclosure and workshop process; performance metrics; electric rate reform; standards and compliance investigation; the Energy Industry Workforce Development and Job Training Program; expanding bill payment options; general rate case filing and revenue-neutral rate design; and the Combustion Engine New Sale Transition Task Force.
Amends the Energy Assistance Act. Makes changes in provisions concerning eligibility, conditions of participation, and energy assistance; the Supplemental Low-Income Energy Assistance Fund; and financial assistance, payment plans. Creates provisions concerning availability of programs to low-income residents. Amends the Consumer Fraud and Deceptive Business Practices Act. Creates provisions concerning Renewable Energy Providers and Community Energy Subscription Providers. Effective immediately.
SB 2132 - Simmons - This bill amends the Income Tax Act to establish a child credit. The amendment replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Provides that the credit shall be in the amount of $600 (in the introduced bill, $100). Provides that the credit shall be reduced by $50 (in the introduced bill, $5) for each $2,000 by which the taxpayer's net income exceeds $60,000 in the case of a joint return or exceeds $40,000 in the case of any other form of return. Effective immediately.
Illinois Department of Revenue
The Department issued Informational Bulletin FY 2021-17 "Changes to Individual Income Tax Estimated Payment Requirements"
The Department also issued an announcement with directions on how to reschedule or cancel an already scheduled electronic payment. This announcement was triggered by the federal delay, and Illinois delay, of the due
Rulemaking
The April 2 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Revenue or the Department of Commerce and Economic Opportunity.
Court cases
No tax-related cases, but the following False Claims Act case involving the unclaimed property law may be of interest. The State of Illinois ex rel. John Thulis, James Web v. City of Chicago is a False Claims Act case in which the relators filed a qui tam action against the City of Chicago. The case was based on an allegation that the City of Chicago failed to comply with the Revised Uniform Unclaimed Property Act due to its failure to report or turn over to the State more than 22,000 checks a total value in excess of $11 million. Unlike situations involving False Claims Act cases filed against the business community, the Attorney General appears to have quickly intervened and had the case dismissed. The relators appealed the dismissal. The appellate court upheld the dismissal.
Tax Tribunal
No new decisions were issued by the Tribunal this week. None of the new cases filed with the Tribunal raise unique issues.
Publications
The Internal Revenue Service issued updated Individual Income tax return statistics.
