The Senate returned to Springfield on Monday and was in Springfield through Friday. The House returned to Springfield on Tuesday and was originally scheduled to be in Springfield, including weekends, through May 31. However, the House cancelled the Saturday and Sunday sessions.

The House and Senate are both scheduled to return to Springfield on Monday and remain in Springfield in session through May 31.

SB 2531 - The Chamber's federal $10,000 SALT cap workaround initiative passed the House unanimously on Thursday. The bill now goes back to the Senate for concurrence in a technical amendment in the House that was at the request of the Illinois Department of Revenue.

The Cook County Assessor continues to press for passage of his so-called data modernization legislation HB 860 and his legislation that would mandate taxpayers to provide property descriptions HB 3529. We remain strongly opposed to both initiatives for reasons I have outlined in previous newsletters. I am a part of a coalition of business groups that opposes this legislation. Discussions are ongoing.

The House Revenue committee met on Thursday. The committee considered a number of bills. The full list of the bills voted on by the committee on Thursday is at this link

SB 2182-The Chamber's data center clean up legislation as amended by House committee amendment 1 passed the House Revenue committee on Thursday. We opposed the amendment. The amendment provides that within 180 days after the effective date of this amendatory Act of the 120nd General Assembly, all new and existing data centers seeking a certificate of exemption under this Section shall require the contractor to enter into a labor peace agreement with any union representing workers who operate and maintain a critical system or equipment used or maintained by the data center. We will continue in our efforts to block this amendment which would be detrimental to the data center industry.

I continued discussions with the Department of Revenue this week concerning our opposition to the portion of the Department's legislation SB 2279 which would extend the statute of limitations for assessment any time a claim for refund is filed by a taxpayer for a period for which there is left than 12 months remaining on the statute of limitations for assessment. The Department has been unable to articulate any reasons for why this is necessary, other than an assertion that they tend to receive some claims for refund, particularly in the sales and excise taxes close to the expiration of the statute. I explained, politely, once again that there is no basis for their assertion that taxpayers wait until shortly before the expiration of the statute of limitations to file refund claims. Discussions continue.

As of this morning, the House Revenue committee has not yet scheduled to its meeting next week. However, I suspect that as usual it will meet on Thursday morning.

The Senate Revenue committee met on Wednesday. The bills considered by the committee at the hearing are at this link.

As of this morning, the Senate Revenue committee is not yet scheduled to meet next week although I suspect that the committee will meet next Wednesday as usual.

SB 157 - House Floor amendment 1 - Makes changes to the engrossed bill to provide 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, 2025 (currently January 1, 2022; in the engrossed bill, January 1, 2027). Further amends the Illinois Income Tax Act to provide that the angel investment credit applies for tax years ending on or before December 31, 2024 (currently, December 31, 2021). Adds provisions amending the Historic Preservation Tax Credit Act. Provides that the aggregate amount of the credit may not exceed $3,000,000. Provides that credits may be awarded upon completion of the project and approval of a complete application (currently, review of the project). Provides that the taxpayer is not eligible to receive credits under that Act and as qualified River Edge Redevelopment Zone property for the same qualified expenditures or qualified rehabilitation plan. Makes various technical corrections concerning allocation of credits. Amends the Illinois Income Tax Act with respect to the Historic Preservation Tax Credit to include provisions concerning limited liability companies.

SB 2244 - House Floor amendment 1 - Replaces everything after the enacting clause. Amends the Senior Citizens Real Estate Tax Deferral Act. Provides that the income limitation under the Act is $65,000 for tax years 2022 through 2025 and $55,000 for tax year 2026 and thereafter (currently, $55,000). Provides that, for tax years 2022 through 2025, the total amount of any such deferral shall not exceed $7,500 per taxpayer in each tax year (currently, $5,000). Provides that, beginning again in tax year 2026, the total amount of any such deferral shall not exceed $5,000. Effective immediately.

No tax-related bills passed the House this week other than SB 2531 our SALT cap work around bill discussed above.

No tax-related bills passed the Senate this week.

tax-related bills that passed both Chambers

No tax related bills passed both chambers this week other than SB 2531 which will go back to the Senate for concurrence in the House amendment.

The May 21 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or the Department of Revenue.

No tax-related cases this week.

One of the new cases filed this week raise unique issues. MD's & We're Not Doctors, Inc. v. Department of Revenue is a protest of sales tax Notice of Tax Liability. The taxpayer protested the NTL explaining that the Department issued the NTL assessing tax without examining the taxpayer's books and records despite repeated attempts by the taxpayer to have the Department conduct an audit and the taxpayer's execution of an extension of the statute of limitations. This audit was apparently initiated shortly before the COVID pandemic.

I recently participated in a podcast with Breen Schiller and Nikii Dobay of Tax Institute member law firm Eversheds Sutherland in which I discussed the recent Pepsico decision.

The Center for Budget and Policy Priorities issued a report entitled Biden Proposals Would Reduce Large Tax Advantages for Those at the Top, Address Tax Gap. Please note that I am not linking this article because I agree with the conclusions of the article. On the contrary, I disagree. However, I think it is important to understand the contentions of the those groups who favor changes at the federal level.