The House and Senate returned to Springfield on April 27. The House and Senate were in session through Thursday.

The Senate return to Springfield next week on Monday and is scheduled to be in Springfield through Friday. The House returns to Springfield on Tuesday and is scheduled to be in Springfield through Friday.

The House Revenue committee met on Wednesday. Nothing controversial was considered by the committee. Here is a link to the two resolutions that were passed out of the committee on Thursday. No substantive legislation was considered by the committee.

The House Revenue committee held subject matter hearings on three bills: HB 154 which would exempt breast pumps and related equipment and supplies from sales and use taxation, HB 801 which would create an income tax credit for an employee who hires a "qualified employee" - a resident of the State who is hired to fill a full-time net new job and was unemployed as a result of Covid-19 prior the date he or she was hired by the taxpayer, and HB 3920 which includes a provision that would impose an additional estate tax and generation-skipping transfer tax on taxable transferred property valued at $4 million or more in an amount equal to 5% of the value of the transferred property. The proceeds of the tax would deposited into a special fund for supplemental payments to recipients of federal SSI.

The Senate Revenue committee also met on Wednesday. The committee passed amendments to SB 1747 - the Illinois Energy Transition Zone Act. As originally proposed the bill creates the Illinois Energy Transition Zone Act and provides for the certification by the Department of Commerce and Economic Opportunity of municipal ordinances designating an area as an Energy Transition Zone. Provides that green energy enterprises located in Energy Transition Zones shall be eligible to apply for certain tax incentives. Provides that a green energy enterprise is a company that is engaged in the production of solar energy, wind energy, water energy, geothermal energy, bioenergy, or hydrogen fuel and cells. Contains provisions concerning qualifications and applications. Creates the Energy Transition Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall make income tax credit awards under the Act to foster job creation and the development of green energy in Energy Transition Zones. Amends the Illinois Income Tax Act, the Retailers' Occupation Tax Act, and the Public Utilities Act to make conforming changes concerning tax incentives. Effective immediately.

Amendment 2 to SB 1747 also passed the Senate Revenue committee and adds provisions to the Illinois Energy Transition Zone Act to provide that green energy enterprise projects shall comply with the requirements of the Prevailing Wage Act. Amends the Prevailing Wage Act to make conforming changes.

The House Revenue committee is scheduled to meet next Thursday morning. A number of bills that passed the Senate that have been posted for committee consideration, including SB 2531 the Chamber's federal SALT cap work around legislation. Representative DeLuca is the House sponsor.

Then Senate Revenue committee is scheduled to meet next Wednesday afternoon. So far, only two bills have been posted for committee consideration - HB 571 which amends the Tax Increment Allocation Redevelopment Act in the Municipal Code and provides that the municipality may chose the financial advisor or underwriter who shall prepare an analysis required to be submitted to the Comptroller and taxing districts relating to setting forth the: (i) nature and term of obligation; (ii) projected debt service including required reserves and debt coverage; and (iii) actual debt service (currently, only (i) and (ii) are required). Requires, for Fiscal Year 2022 and each fiscal year thereafter, the following additional items to be included in the report required to be submitted before the annual meeting of the Joint Review Board to the Comptroller and taxing districts: (1) the number of jobs, if any, projected to be created for each redevelopment project area at the time of approval of the redevelopment agreement; (2) the number of jobs, if any, created as a result of the development to date for that reporting period under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement; (3) the amount of increment projected to be created at the time of approval of the redevelopment agreement for each redevelopment project area; (4) the amount of increment created as a result of the development to date for that reporting period using the same assumptions as was used for the projections used at the time of the approval of the redevelopment agreement; and (5) the stated rate of return identified by the developer to the municipality for each redevelopment project area, if any. Stated rates of return required to be reported in item (5) shall be independently verified by a third party chosen by the municipality. Makes other changes. 

The Senate Revenue committee is also scheduled to consider HB 648 which amends the Rental Housing Support Program Act. Provides that once a tenant has received assistance under the Rental Housing Support Program the tenant shall remain eligible for assistance under the Program until the tenant reaches an income level of 35% of area median family income and will then begin the transition out of the Program, as described in the rules governing the Program. Provides that local administering agencies should (rather than must) include 2-bedroom, 3-bedroom, and 4-bedroom units among those intended to be supported by grants under the Program.

Also, the Senate Revenue committee is scheduled to hold a subject matter hearing on SB 2132 which amends the Illinois Income Tax Act. Creates a credit for each child of the taxpayer who is under the age of 17 in an amount equal to $100. Provides that the credit shall be reduced by $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.

None this week.

No tax-related bills passed the House this week.

SB 1138 - Hastings - Amends the Local Government Revenue Recapture Act. Provides that a niece, nephew, great-niece, or great-nephew is considered a "family member" for purposes of the Act. Makes changes concerning circumstances under which a third party may access a municipality's or county's financial information. In provisions concerning third party aggregated data, provides that no aggregated data may be published that includes taxpayer information for 4 or fewer taxpayers. Makes other changes. Effective immediately.

SB 1139 - Villivalam - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Includes in the definition of "redevelopment project costs" costs of real or personal property and improvements to accommodate public health and safety concerns resulting from the COVID-19 public health emergency, including, but not limited to, equipment purchases and construction costs.

SB 1823 - Koehler - As introduced, amends the Illinois Income Tax Act. Extends a tax credit allowable for qualified expenditures incurred by a qualified taxpayer in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone to January 1, 2031 (currently, through January 1, 2022). Provides that, in order to qualify for such a tax credit, expenditures must: (i) equal $5,000 or more, (ii) exceed the adjusted basis of the qualified historic structure on the first day the qualified rehabilitation plan begins, and (iii) be a part of a qualified rehabilitation plan or phase of a qualified rehabilitation plan that received final approval to begin the expenditures no later than December 31, 2026 (currently, only (i) and (ii) are required). Effective immediately.

The April 30 edition of the did not contain any proposed rulemakings by the Department of Revenue or proposed rulemakings by the Department of Commerce and Economic Opportunity.

Today's Illinois Register contains one adopted rulemaking by the Department of Revenue that implement the data center income tax credit equal to 20% of the wages paid during the taxable year to a full-time or part-time employee of a construction contractor employed by a certified data center in a geographic area that meets certain socio-economic criteria.

No tax-related cases this week.

The Governor has appointed a new judge for the Tribunal - retired Circuit Court Judge Edward Washington II. Here is a link to the appointment message. The appointment was for a vacant position, so it appears that judges Conway and Barov continue in their roles

One of the new cases this week may be of interest. SDO Fund II D37, LLC. The Department of Revenue assessed a tax liability asserting that the Fund is a purchaser or transferee from Bloomington Chateau Partners.

The Fund protested the assessment on the basis that the repossession and foreclosure by the Fund of the mortgaged premises does not constitute a sale, purchase, or transfer of assets as a matter of law due to the relationship between the Fund and Bloomington Chateau being that of lender and borrower pursuant to a written loan agreement. As a result, the Fund should not be held personally responsible for the unpaid tax liabilities of Bloomington Chateau