The House and Senate were not in session this week. The Senate is scheduled to be back in session on March 2.

The Senate Revenue committee is scheduled to meet next week on March 3. Here is a link to the bills that have been posted for the hearing. At this time, it is unclear which, if any, of the bills posted will be considered by the committee.

The full membership of the House committees has been posted. Here is a link to the membership of House Revenue committee. The House Revenue committee is scheduled to meet next week on March 4. The committee will meet online. Here is a link to the bills that have posted for the committee hearing.

At this time, it is unclear which, if any, of the bills will be considered by the House Revenue committee next week. You will recall that in past years the Chairman generally posts all bills that have been assigned to the committee, and a day or two before the hearing provides information about which bills will actually be considered. If he runs the committee as he has in prior years, at the first hearing he will likely establish a series of subcommittees and assign many, if not most of the bills that have been assigned to the committee to subcommittee.

There is some notably bad legislation that has been assigned to the House Revenue committee and is posted for next week. HB 95 - Halpin - and HB 145 - Morgan - would authorize Illinois participation in the "Phase Out of Corporate Giveaways Interstate Compact." Members of the compact would agree not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development. Identical legislation has been proposed in a number of other states over the past two years. I am unaware that any other state has adopted this legislation.

Also posted for committee consideration are HB 283 and HB 284 both sponsored by Representative Flowers. HB 283 would establish a financial transactions tax and HB 284 would authorize any home rule municipality with 1,000,000 or more inhabitants (Chicago) to enact a local tax on stock, commodity or options transactions.

While I don't expect these bills to be discussed next week, between now and then I will reach out to committee members to indicate our continued strong opposition and be ready to testify if the bills are called.

The introduction of new legislation continues.

HB 3974 - Halpin - Amends the Historic Preservation Tax Credit Act. Provides that the State Historic Preservation Office may not award more than $45,000,000 (currently, $15,000,000) in total annual tax credits under the Act.

HB 3981 - Yednock - Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are caregivers of a veteran with a disability. Provides that the credit shall be in an amount equal to 5% of the costs incurred in caring for the veteran, not to exceed $1,000 in credits in any taxable year. Effective immediately.

SB 472 - Bennett - Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain startup taxpayers are eligible to elect to claim the Credit against their obligation to pay over withholding taxes. Makes changes to the definition of "underserved area" to change certain references from the federal decennial census to the American Community Survey.

SB 483 - Castro - Amends the Illinois Income Tax Act. Provides that the live theater production credit applies for tax years beginning prior to January 1, 2029 (currently, January 1, 2022). Amends the Live Theater Production Tax Credit Act. Includes commercial Broadway touring productions in the list of accredited productions. Increases the maximum aggregate credit amount from $2,000,000 per fiscal year to $4,000,000 per fiscal year. Provides that, beginning in State fiscal year 2021, $2,000,000 of the $4,000,000 cap shall be reserved for applicants that are operators of qualified production facilities solely in connection with the presentation of commercial Broadway touring shows. Effective immediately.

SB 490 - Stoller - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Illinois Income Tax Act. Creates an income tax deduction for an amount of up to $50,000 per tax year contributed to a small business asset purchase account and all interest earned on such accounts during the tax year. Provides that a "small business asset purchase account" means an account established by a taxpayer, the proceeds of which are used to purchase property used primarily in Illinois for which a federal income tax deduction is claimed under Section 179 of the Internal Revenue Code. Provides an addition modification for amounts withdrawn from a small business asset purchase account that are not used for qualified purchases. Amends the Uniform Penalty and Interest Act to establish a penalty for improper use of moneys in a small business asset purchase account. Effective immediately.

SB 491 - Stoller - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Illinois Income Tax Act. Increases the research and development credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period (instead of 100% of the average of the qualifying expenditures for each year in the base period). Provides that the research and development credit applies on a permanent basis. Effective immediately.

SB 492 - Stoller - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Illinois Income Tax Act. Provides that the personal property tax replacement income tax credit for investments in qualified property applies for costs incurred on or after the effective date and on or before December 31, 2025 (currently, December 31, 2018). Effective immediately.

SB 503 - DeWitte - Amends the State Finance Act, the Motor Fuel Tax Law, the Emergency Telephone System Act, the Illinois Gambling Act, and the Video Gaming Act. Provides that, in the absence of an appropriation for any State fiscal year, moneys that are required to be distributed to units of local government and other entities from the State and Local Sales Tax Reform Fund, the Motor Fuel Tax Fund, the State Gaming Fund, the Local Government Video Gaming Distributive Fund, and the Statewide 9-1-1 Fund are subject to a continuing appropriation. Effective immediately.

SB 508 - DeWitte - Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that a taxing district's aggregate extension base shall be adjusted whenever an assessment increase or decrease due to the issuance of a certificate of error, a decision of the board of review, or a decision of the Property Tax Appeal Board results in the overextension or underextension of taxes for the last preceding levy year. Effective immediately.

SB 509 - DeWitte - Amends the Illinois Income Tax Act. Provides that an amount equal to 10% of the net revenue realized from the State income tax during the preceding month shall be transferred from the General Revenue Fund to the Local Government Distributive Fund (currently, the amount transferred is equal to the sum of (i) 6.06% of the net revenue realized from the tax imposed upon individuals, trusts, and estates and (ii) 6.85% of the net revenue realized from the tax imposed upon corporations). Effective immediately.

SB 510 - DeWitte - Amends the Property Tax Code. Provides that provisions concerning delinquencies by lessees of property owned by a taxing district apply in all counties with a population of fewer than 3,000,000 inhabitants (currently, counties with more than 800,000 but less than 1,000,000 inhabitants). Provides that those provisions apply if the taxes remain unpaid 60 days after the final (currently, second) installment due date. Effective immediately.

SB 511 - DeWitte - Amends the Illinois Income Tax Act. Increases the research and development credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period (instead of 100% of the average of the qualifying expenditures for each year in the base period). Provides that the research and development credit applies on a permanent basis. Effective immediately.

SB 540 - Feigenholtz - Amends the Illinois Municipal Code. In a Section concerning preemption of certain taxes in home rule municipalities, provides that nothing in the Section shall be construed as prohibiting a home rule municipality that imposed a tax based on the number of units of cigarettes or other tobacco products before July 1, 1993 from imposing a tax on either the number of units of cigarettes or other tobacco products, or both, on or after July 1, 1993.

SB 611 - Wilcox - Amends the Business Enterprise for Minorities, Women, and Persons with Disabilities Act. Modifies the provisions of the Act to apply to veterans and veteran-owned businesses. Modifies a Section concerning the short title. Changes the title of the Act to the Business Enterprise for Minorities, Women, Veterans, and Persons with Disabilities Act, and makes conforming changes throughout various statutes referencing the title of the Act. Amends the Illinois Procurement Code. Removes a provision concerning procurement preferences for veterans and veteran-owned businesses. Applies administrative penalties for falsely certified businesses to minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Defines terms. Makes conforming changes in various statutes concerning minority-owned businesses, women-owned businesses, veteran-owned businesses, and businesses owned by persons with a disability. Effective immediately.

SB 664 - Gillespie - Amends the Illinois Enterprise Zone Act. Adds requirements concerning enterprise zone applications and provisional certification and decertification of enterprise zones. Modifies the criteria for determining Enterprise Zones and underserved areas under the Act. Modifies reporting requirements under the Act. Makes conforming and other changes.

SB 674 - Villivalam - Creates the Phase Out Corporate Giveaways 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 not to offer or provide any company-specific tax incentive or company-specific grant to any entity for a corporate headquarters, manufacturing facility, office space, or other real estate development located in any other member state as an inducement for the corporate headquarters, manufacturing facility, office space, or other real estate development to relocate to the offering member state. Defines terms. Excludes: (1) workforce development grants that train employees; (2) company-specific tax incentives or company-specific grants from local governments; and (3) specified company-specific tax incentives or company-specific grants related to companies already within the member state. Creates the Phase Out Corporate Giveaways Board and provides for membership and meeting requirements. Provides for withdrawal of a member state with a 6-month written notice to each member state's chief executive officer. Contains construction and severability provisions.

The February 26 edition of the Illinois Register contained no proposed or adopted rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity.

No new decisions in tax-related cases this week.

While it isn't a tax case, a case set for oral argument before the Supreme Court may be of interest. Tillman v. Pritzker is an appeal of the appellate court's reversal of the circuit court's denial of Tillman's petition under section 11–303 of the Code of Civil Procedure for leave to file a complaint seeking to enjoin the State from making approximately $14 billion in principal and interest payments on two series of bonds it issued pursuant to laws enacted in 2003 and 2017. Tillman alleges that the bonds were issued for an improper purpose. The remedy he seeks is that the state of Illinois should be ordered not to pay the principal and interest to the bondholders. These are general obligation bonds. Whatever you think of the merits of Tillman's lawsuit, a win by Tillman that results in a default by the state on a portion of its general obligation bonds doesn't seem to me to have a positive result for Illinois finances.

No new decisions were issued by the Tribunal this week. None of the new cases raise unique issues.

The Tax Foundation recently issued its annual report State Individual Income Tax Rates and Brackets for 2021.

The Recruitment Manager at the Illinois Department of Revenue asked if I would forward a job posting. The Department is seeking an Audit Bureau Assistant Division Manager for the Audit Division.