The House and Senate returned to Springfield on April 20. The House was in session through Friday. The Senate was in session through Thursday.

The House and Senate return to Springfield next week on Tuesday. Both chambers are in session next week through Thursday.

The House Revenue committee met on Thursday. Nothing controversial was considered by the committee. Here is a link to the legislation that was passed out of the committee on Thursday.

The Senate Revenue committee first met on Wednesday. The committee approved an amendment to SB 2182 which amends the data center exemption. This legislation is an initiative of the Illinois Chamber of Commerce and the Chicagoland Chamber.

The Senate Revenue committee also approved an amendment to SB 2531 - this is the Illinois Chamber's initiative to adopt a workaround to the federal $10,000 state and local tax cap.

The Senate Revenue committee also passed a number of other bills and amendments out of committee to the floor. Here is a link to the bills considered by committee.

The Senate Revenue committee also met this morning to hold a subject matter hearing on the Governor's FY 22 revenue proposals. Along with Illinois Chamber CEO Todd Maisch I am scheduled to testify in opposition to the Governor's so-called loophole closing proposals.

SB 1138 - Hastings - Replaces everything after the enacting clause. 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. The amendment imposes a $2500 fee to be imposed on any CPA who undergoes training at through the Department of Revenue to be certified to participate in the certified audit program. Makes other changes. Effective immediately.

SB 1823 - Koehler - Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Provides that the credit for qualified expenditures incurred by a taxpayer in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone applies for taxable years beginning on or before January 1, 2031 (currently, ending prior to January 1, 2022). Provides, however, that no such credit shall be allowed for a project that does not begin incurring qualified rehabilitation expenditures prior to January 1, 2027. Effective immediately.

SB 1983 - Bennett - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Provides that, to avoid revocation or suspension of credits under the provisions of the bill, the Taxpayer shall also maintain job creation and retention at the level of 85% of the Agreement requirements. Provides that the taxpayer must show a direct and substantial hardship caused by the COVID-19 pandemic (in the introduced bill, a financial hardship). Effective immediately.

HB 1539 - Crespo - Replaces everything after the enacting clause. Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, for Township High School District 211, the aggregate extension base for levy year 2022 shall be the amount that the district's aggregate extension for levy year 2021 would have been assuming an extension of taxes for levy year 2021 at the limiting rate for levy year 2021. Effective immediately.

HB 34 - Walker - Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2024, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified.

HB 1769 - Harris - Amends the Property Tax Code. For the purposes of determining the fair cash value of a supportive living facility using the income capitalization approach, provides that gross potential income must not exceed the maximum individual Supplemental Security Income (SSI) amount, minus a resident's personal allowance, multiplied by the number of apartments authorized by the supportive living facility certification. Effective immediately.

HB 1839 - Croke - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may require a business organization to agree to certain terms that ensure the business is a good corporate citizen as a condition for receiving development assistance. 

HB 3107 - Evans - Amends the Illinois Income Tax Act. Extends the tax credit for affordable housing donations until December 31, 2026. Amendment 1 -  Adds provisions to the introduced bill amending the Illinois Housing Development Act. Provides that the amount of tax credits reserved by the administrative housing agency for an approved project under the affordable housing tax donation credit program is limited to $32,850,352 in State fiscal years 2022 and 2023 and shall be increased by 5% in each fiscal year thereafter. Amendment 3 - Further amends the Illinois Housing Development Act. In provisions concerning the affordable housing tax donation credit program, provides that, for property that is for sale to homeowners, the gross monthly income standard is based on 120% (currently, 60%) of the area median income.

HB 3174 - Walsh - Amends the Illinois Enterprise Zone Act. With respect to new wind power facilities and Wind Energy Businesses, repeals language providing that (i) the penalties for failure to comply with the Prevailing Wage Act are limited to the penalties identified in the Prevailing Wage Act and (ii) the Department of Commerce and Economic Opportunity may not revoke a High Impact Business designation as a result of the failure to comply with the Prevailing Wage Act. Effective immediately.

HB 3289 - Walsh - Amends the Property Tax Code. Provides that each chief county assessment officer may approve a homestead exemption for the 2021 taxable year, without application, for any property that was approved for the exemption for the 2020 taxable year, if: (1) the county board has declared a local disaster as provided in the Illinois Emergency Management Agency Act related to the COVID-19 public health emergency; (2) the owner of record of the property as of January 1, 2021 is the same as the owner of record of the property as of January 1, 2020; (3) the exemption for the 2020 taxable year has not been determined to be an erroneous exemption as defined by the Code; and (4) the taxpayer for the 2020 taxable year has not asked for the exemption to be removed for the 2020 or 2021 taxable years. Effective immediately.

HB 2409 - Davis - Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity shall not issue a tax certificate to any taxpayer under this Act unless the taxpayer first submits a supplier diversity report. Provides that the Department of Commerce and Economic Opportunity shall publish on its website all supplier diversity reports filed by taxpayers under this Act and maintain those reports for at least 5 years.

SB 157 - Holmes - Amends the Illinois Income Tax Act. Provides that the credit for expenditures incurred in the restoration and preservation of a qualified historic structure located in a River Edge Redevelopment Zone applies for taxable years ending prior to January 1, 2027 (currently January 1, 2022). Effective immediately.

SB 252 - Belt - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Innovation, Automation, and Structural Pilot Program to be implemented and administered by the Department of Commerce and Economic Opportunity. Specifies the purpose of the Program. Provides Program qualification requirements. Provides Program certification requirements. Provides for the adoption of rules. Specifies the duration of the Program. Repeals provisions on January 1, 2029. Effective immediately.

SB 338 - Crowe - Amends the State Treasurer Act. Repeals provisions regarding transfer of power; transfer of personnel; transfer of property; and rules and standards. Amends the Revised Uniform Unclaimed Property Act. Changes the definition of "virtual currency". Provides that a money order is presumed abandoned if it is unclaimed by the apparent owner 3 (rather than 7) years after issuance. Provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property. Provides that a business association who has no reportable property shall so report to the administrator under specified circumstances. Provides that the administrator does not need to notify the Department of Revenue of the names or social security numbers of apparent owners of abandoned property if the administrator reasonably believes that the Department of Revenue will be unable to provide information that would provide sufficient evidence to establish that the person in the Department of Revenue's records is the apparent owner of unclaimed property in the custody of the administrator. Includes a provision regarding identification of apparent owners of abandoned property using other State databases. Provides that if property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. Makes changes to provisions regarding: when tax-deferred and tax-exempt retirement accounts presumed abandoned; United States savings bonds; crediting income or gain to owner's account; and action by a person whose claim is denied.

Amendment 1 - Provides that the Secretary of State may (rather than shall) provide the Treasurer with the last known address as it appears in its respective records of any person reasonably believed to be the apparent owner of abandoned property. Provides that any warrants issued by the Comptroller pursuant to a voucher from the Treasurer to pay an owner that are not presented to the Treasurer within 12 months of the date of issuance shall be void, but the funds shall not escheat to the State and shall instead be redeposited in the Unclaimed Property Trust Fund. Provides that the Treasurer shall be responsible for any tax reporting required by federal law related to payments under the Revised Uniform Unclaimed Property Act.

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 1582 - Martwick - This bill is an Illinois Department of Revenue initiative Amends the Illinois Income Tax Act. Provides that, when a taxpayer sells or transfers the major part of (i) the stock of goods which he is engaged in the business of selling, (ii) furniture or fixtures, (iii) machinery and equipment, or (iv) real property, then the taxpayer shall notify the Department of Revenue (currently, the Chicago office of the Department of Revenue) no more than 10 business days before (currently, after) the sale or transfer. Provides that payments of winnings from sports wagering conducted in accordance with the Sports Wagering Act are allocable to this State. In provisions concerning the Economic Development for a Growing Economy (EDGE) Tax Credit, provides that, if, during any taxable year, a taxpayer ceases operations at a project location that is the subject of an EDGE agreement with the intent to terminate operations in the State, then the taxpayer's State income tax liability shall be increased by the amount of any credit allowed prior to the date the taxpayer ceases operations.

SB 1706 - Castro - Amends the Tobacco Products Tax Act of 1995. Provides that specified components of an "electronic cigarette" do not include any solution or substance that contains cannabis subject to tax under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Cultivation Privilege Tax Law. Effective immediately.

SB 1975 - Fine - Amends the Property Tax Code. Provides that the chief county assessment officer in a county of more than 3,000,000 residents, and in any other county where the county board has authorized such action by ordinance or resolution, may automatically renew the homestead exemption for persons with disabilities without application for any person who applied for the exemption and presented a Disability Identification Card stating that the claimant is under a Class 2 disability.

SB 2066 - Castro - Amendment 1 - Replaces everything after the enacting clause. Amends the Retailers' Occupation Tax Act. Provides that, beginning January 1, 2020 and through December 31, 2020, sales of tangible personal property made by a marketplace seller over a marketplace for which tax is due but for which use tax has been collected and remitted to the Department of Revenue by a marketplace facilitator are exempt. Provides that the term "marketplace facilitator" does not include any person licensed under the Auction License Act, other than any person who is an Internet auction listing service. Amends the Leveling the Playing Field for Illinois Retail Act. Provides that certified service providers who collect and remit taxes on behalf of retailers may claim the retailers' discount with respect to those taxes. Provides that the retailer is not entitled to the discount with respect to those taxes. Effective immediately.

SB 2153 - Rezin - Amends the Hospital Licensing Act. Requires a hospital to provide a plan of correction to the Department of Public Health within 60 days if the hospital demonstrates a pattern or practice of failing to substantially comply with specified requirements or with the hospital's written staffing plan. Allows the Department to impose specified fines on a hospital for failing to comply with written staffing plans for nursing services or plans of correction. Requires money from fines to be deposited into the Hospital Licensure Fund (instead of the Long Term Care Provider Fund). Contains provisions concerning staffing plans. Amends the Nursing Education Scholarship Law. Provides that the Department of Public Health may award a total of $500,000 annually in nursing education scholarships. Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are employed during the taxable year as nurse educators. Provides that the credit shall be equal to 2.5% of the taxpayer's federal adjusted gross income for the taxable year. Effective immediately, except that provisions amending the Hospital Licensing Act take effect on the first day of the first full calendar month that begins 6 months after the Act becomes law.

SB 2244 - Murphy - Amends the Property Tax Code. Provides that for taxable year 2020, the maximum income limitation under the senior citizens assessment freeze homestead exemption is $75,000 for counties with 3,000,000 or more inhabitants (currently, $65,000). Provides that, for taxable year 2021 and thereafter, the maximum income limitation under the senior citizens assessment freeze homestead exemption is $75,000 for all counties (currently, $65,000). Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the income limitation is $75,000 for tax year 2019 and thereafter.

SB 2279 - Stadelman - This bill is an Illinois Department of Revenue initiative. I testified in revenue committee to the provision of the bill that extends the statute of limitations for Department of Revenue assessments whenever a claim for refund is filed less than 12 months before the normal statute expiration. The bill passed the Senate on a partisan vote. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois and the Retailers' Occupation Tax Act. In provisions that allow the Department of Revenue to refuse to issue, reissue, or renew a certificate of registration, provides that a person is considered to be in default for moneys due if the amount was established as a final liability within the 23 years (currently, 20 years) prior to the date of the Department of Revenue's notice of refusal to issue or reissue the certificate of registration, permit, or license. Amends the Property Tax Code. Provides that the effective date of a pollution control facility certificate shall be the date of the last submission of documentation that finalizes the application or the date of the construction of the facility, whichever is later. Creates the Property Tax Appeal Board Supplemental Fund. Provides that all filing fees collected by the Board shall be deposited in the Fund. Provides for the uses of moneys deposited in the Fund. Amends various tax Acts to provide that upon filing a claim for a credit or for a refund, if the statute of limitations will expire less than 12 months after the date a taxpayer files the claim for credit or refund, that will trigger an automatic 12-month extension of the statute of limitations for assessing additional tax due. Effective immediately.

SB 2365 - Connor - Amends the Property Tax Code. Provides that photovoltaic electricity generation systems subject to power purchase agreements or leases for solar energy between a third-party owner, an operator, or both, and an end user of electricity are considered solar energy systems. Effective immediately.

SB 2444 - Hunter - Amends the Illinois Income Tax Act. Provides that the credit for affordable housing donations sunsets on December 31, 2026 (currently, December 31, 2021). Effective immediately.

SB 2531 - Stoller - This bill is an Illinois Chamber Tax Institute initiative. Amendment 2 - Replaces everything after the enacting clause. Reinserts provisions of the introduced bill creating an entity-level tax, but makes certain formatting changes. Provides that the entity-level tax applies for taxable years ending on or after December 31, 2021 and beginning prior to January 1, 2026. Provides that the entity-level tax shall be in an amount equal to 4.95% of the taxpayer's net income for the taxable year. Defines "net income". Provides that a partnership or Subchapter S corporation that elects to pay tax at the entity level is required to pay estimated tax if the amount payable as estimated tax can reasonably be expected to exceed $500. Effective immediately.

The April 23 edition of the Illinois Register did not contain any proposed or adopted 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 Commerce and Economic Opportunity amending the Film Tax Credit..

No tax-related cases this week.

None of the new cases this week raise unique issues.