The House returned to Springfield on February 10. The House returned to vote on the House rules. The rules authorize committee hearings to be held remotely.

The Senate was not in Springfield this week. The Senate held some remote committee hearings this week. As of today, the Senate Revenue committee has not met year, nor has anything been scheduled.

The Democratic members of the House Revenue committee were announced late yesterday afternoon: Croke, Evans, Harper, L. Hernandez, Kifowit, Rita, Tarver (Vice Chair), Walker, West and Yingling. I haven't yet seen an announcement of Republican committee members.

The introduction of new legislation continues.

HB 659 - Wheeler - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year, or 15% of the manufacturing capital expenditures if the taxpayer is located in a rural or economically challenged area. Provides that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000. Effective immediately.

HB 673 - Hirschauer - Amends the Property Tax Code. In provisions concerning the Senior Citizens Assessment Freeze Homestead Exemption, provides that, for taxable years 2021 and thereafter, the maximum income limitation is $85,000 (currently, $65,000). Effective immediately.

HB 675 - Yednock - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 20%, but in no event to exceed $2,000, of the gross wages paid by the taxpayer during the taxable year to each creditable employee. Provides that a "creditable employee" is an employee who: (1) was employed by the taxpayer for the first time on or after the effective date of the amendatory Act; (2) completed his or her twenty-fourth consecutive month of employment with the taxpayer during the taxable year; (3) received unemployment benefits in this State for at least 2 months immediately prior to being hired by the taxpayer; and (4) was employed at a location in this State for at least 30 hours per week during the entire 24-month period of his or her employment with the taxpayer. Effective immediately.

HB 678 - Mason - Creates the Regional Economic Development Act. Provides that the Department of Commerce and Economic Opportunity, in consultation with the Office of the Governor, shall establish economic development regions of the State and shall establish within each region at least one regional office. Provides for the boundaries of economic development regions. Provides for duties of the Department concerning economic development regions. Provides that the Governor shall establish regional economic development councils, one for each of the economic development regions. Provides for the duties, membership, and meetings of each council. Provides for the adoption of rules. Defines terms.

HB 686 - Mason - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any investment made by the taxpayer during the taxable year for the installation or operation of an anaerobic digester. Effective immediately.

HB 695 - Niemerg - Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to the amount received by the taxpayer in gratuities during the taxable year. Provides that the deduction is exempt from the Act's automatic sunset provision. Effective immediately.

HB 696 - Niemerg - Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to the out-of-pocket costs incurred by a taxpayer during the taxable year for expenses associated with long-term care for the taxpayer or the taxpayer's family member. Effective immediately.

HB 697 - Niemerg - Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 50% of the contributions made by the taxpayer during the taxable year to one or more qualifying pregnancy resource centers. Provides that the term "qualifying pregnancy resource center" means a nonprofit organization that is exempt from taxation under Section 501(c) of the Internal Revenue Code and is established for the purpose of providing free assistance to pregnant women in carrying their pregnancies to term.

HB 708 - Gong-Gershowitz - Amends the Property Tax Code. Provides that, for taxable years 2021 and thereafter, the maximum income limitation for the senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000) for all qualified property.

HB 732 - Yingling - Amends the Property Tax Code. Provides that the county clerk shall abate property taxes levied by a unit of local government on property that is included in a neighborhood association that maintains the roads or sidewalks serving the property. Provides that the amount of the abatement shall be equal to the amount of property taxes levied by the unit of local government on that property for the purpose of maintaining roads or sidewalks. Effective immediately.

HB 779 - Windhorst - Amends the Property Tax Code. Provides that the homestead exemption for veterans with disabilities carries over to the benefit of the veteran's surviving spouse if the veteran resided outside of the State but otherwise qualified for the exemption at the time of his or her death and the surviving spouse relocates to Illinois after the death of the veteran. Effective immediately.

HB 801 - Gong-Gershowitz - Amends the Illinois Income Tax Act. Creates an income tax credit for an employer who hires a qualified employee to work at a location in the State. Sets forth the amount of the credit. Provides that the credit shall be increased if (i) the qualified employee is hired to work at a location in a disproportionately impacted area or (ii) on the date the qualified employee is hired, the qualified employee resides in a disproportionately impacted area. Limits the total amount of income tax credits that the Department of Commerce and Economic Opportunity may issue over the duration of the program. Provides that the term "qualified employee" means a resident of the State who is hired by the taxpayer to fill a full-time net new job and was unemployed as a result of COVID-19 prior to the date he or she was hired by the taxpayer. Provides that the term "qualified employee" does not include an individual who was furloughed by the taxpayer. Effective immediately.

HB 805 - Tarver - Amends the Property Tax Code. Provides for a reduction in the assessed value of newly-constructed or rehabilitated rental property if the owner of the residential real property commits that, for a period of 10 years, at least 15% of the multifamily building's units will have rents that are at or below maximum rents and are occupied by households with household incomes at or below maximum income limits. Provides that the chief county assessment officer of a county with 3,000,000 or more inhabitants shall establish such a program. Sets forth application requirements and the amount of the reduction. Effective immediately.

HB 834 - Bennett - Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to (i) 5 qualified college interns or (ii) 5 qualified high school interns during the taxable year. Provides that no taxpayer may claim more than $5,000 in total credits under that Section for all taxable years combined. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

HB 837 - Mason - Amends the Illinois Vehicle Code. Decreases the minimum mileage weight tax and flat weight tax for certain trailers.

HB 844 - Ugaste - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Effective immediately.

HB 845 - Ugaste - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that the estimated dates of completion of the redevelopment project and retirement of obligations issued to finance redevelopment project costs is the 15th calendar year (rather than the 23rd calendar year) after the year in which the ordinance approving the redevelopment project area was adopted for ordinances adopted on or after the effective date of the amendatory Act. Effective immediately.

HB 851 - Zalewski - Amends the Revised Uniform Unclaimed Property Act. Makes changes concerning the time and circumstances under which financial organization deposits are presumed abandoned. Makes changes in provisions governing extending the reporting date of certain reported renewable time deposits. Deletes language requiring a holder to inform the State Treasurer, as administrator, to provide a telephone number that persons may call to inquire about or claim property. 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 he or she 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. Provides that the State Treasurer may, at reasonable times and upon reasonable notice: (1) examine the records of specified types of financial organizations under certain conditions; (2) issue an administrative subpoena requiring the financial organization to make records available for examination; and (3) bring an action seeking judicial enforcement of the subpoena. Provides that records obtained in examinations of State-regulated financial organizations are subject to the same provisions concerning use and confidentiality as records obtained in examinations of other persons. Makes other changes. Effective immediately.

HB 852 - Zalewski - Amends the Parking Excise Tax Act. Removes provisions from the Act providing that a booking intermediary is not considered an operator. Provides that separately stated charges that are not optional are presumed to be part of the purchase price unless proven otherwise. Provides that the tax does not apply to: (1) parking in a lot or garage that is owned or operated by a federal, State, or local government entity if the purchase price does not exceed a stated amount; or (2) if the purchase price is paid by any federal, State, or local government entity. Effective immediately.

HB 854 - Zalewski - 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.

HB 858 - Zalewski - Amends the Property Tax Code. In provisions requiring the court to declare a sale in error when the assessor, chief county assessment officer, board of review, board of appeals, or other county official has made an error, provides that the error must be material to the tax sale at issue. Provides that those provisions do not apply if the error is in the description of the physical characteristics or location of any property displayed on the website of any county assessing official. Provides that, in the case of a sale in error where a voluntary or involuntary bankruptcy petition has been filed, the sale in error shall be granted if the property is subject to an automatic stay pursuant to that petition and the petition is active on the date of the application or the date of the tax sale. Effective immediately.

HB 859 - Zalewski - Amends the Property Tax Code. Provides that the redemption amount shall include a 3% penalty amount (currently 12%). Effective immediately.

HB 860 - Davis - This is the Cook County Assessor's so-called "data modernization legislation. We remain strongly opposed to this unnecessary and intrusive legislation.

HB 864 - Mason - Amends the Property Tax Code. Creates an assessment freeze homestead exemption for persons with a disability. Sets forth the amount of the exemption. Provides that applicants must reapply on an annual basis. Effective immediately.

HB 865 - DeLuca - Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.

HB 1723 - Davis - Amends the Property Tax Code. Provides that any taxing district that has an aggregate property tax levy of more than $5,000,000 for the applicable levy year shall make a good faith effort to collect and electronically publish data from all vendors and subcontractors doing business with the taxing district as to whether the vendor or subcontractor is a minority-owned, women-owned, or veteran-owned business or whether the vendor or subcontractor is a small business. Preempts the concurrent exercise of home rule powers. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

HB 1750 - Miller - Amends the Property Tax Code. Provides that any taxing district may order the county clerk to abate any portion of its taxes, in any given year, on the essential business property that demonstrates financial hardship due to the restrictions on operations during the 2020 and 2021 tax year due to the Covid-19 public health emergency. Defines "essential business property". Effective immediately.

HB 1751 - Mazzochi - Amends the Property Tax Code. In provisions concerning exemptions related to hospitals and health care services, provides that ambulance transport is considered a service that addresses the health care needs of low-income or underserved individuals. Effective immediately.

HB 1752 - Mazzochi - Amends the Property Tax Code. Provides that, if a board of review or the Property Tax Appeal Board reduces the assessment of a condominium unit, then the owner of a neighboring unit in the same condominium development may, upon a timely petition, request the same reduction, so long as the neighboring unit has no discernible benefits or amenities that the condominium unit that received the initial reduction does not. Effective immediately.

HB 1753 - Mazzochi - Amends the Property Tax Code. Provides that taxing districts, other than certain school districts, shall annually certify their levy on or before the third (currently, last) Tuesday in December. Effective immediately.

HB 1754 - Mazzochi - Amends the Property Tax Code. Provides that certain notices may be given by electronic means. Provides that the county assessor shall compile and post on its website a list with certain information concerning certificates of error. Effective immediately.

HB 1761 - Zalewski - Creates the Endow Illinois Tax Credit Act and amends the Illinois Income Tax Act. Requires the Department of Revenue to authorize an income tax credit to taxpayers who provide an endowment gift to a permanent endowment fund. Sets forth procedures and criteria for authorizing the credits. Provides that the aggregate amount of all credits that the Department of Revenue may authorize may not exceed $10,000,000 in 2022, $25,000,000 in 2023, or $50,000,000 in 2024 and each calendar year thereafter. Provides conditions for eligibility. Requires the Department of Revenue to make an annual report concerning the credits. Provides that the credit may be carried forward for 5 years. Exempts the credit from the Act's sunset provisions. Further amends the Illinois Income Tax Act to provide that provisions concerning the unrelated business taxable income of an exempt organization apply for taxable years beginning on or after January 1, 2021 (currently, January 1, 2019). Effective immediately.

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.

SB 104 - Feigenholtz - Amends the Liquor Control Act of 1934. Provides that payment by credit card during the period during which merchandising credit may be extended shall be considered payment. Provides that a retailer may use a credit card to make purchases from a distributor, and the distributor may charge to the retailer any fees associated with that credit card transaction. Provides that manufacturers, non-resident dealers, foreign importers, distributors, or importing distributors may make certain donations related to COVID-19. Provides that retail license holders may accept those donations. Repeals provisions related to the receipt of items of value on January 1, 2024. Authorizes the delivery and carry out of a single serving of wine if specified conditions are met. Provides that the provision concerning delivery and carry out of mixed drinks is repealed on January 1, 2024 (instead of June 2, 2021). Makes other changes. Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to certain eating and drinking establishments, the obligation to make quarter monthly payments shall be suspended, and the taxpayer shall, instead, make monthly payments as otherwise provided by law. Effective immediately.

SB 151 - Barickman - Amends the Property Tax Code. In provisions creating the homestead exemption for veterans with disabilities, provides that the term "surviving spouse" means any of the following: (i) the surviving spouse of a veteran who qualified for the exemption prior to his or her death; (ii) the surviving spouse of a veteran who was killed in the line of duty in the current taxable year or any preceding taxable year; or (iii) the surviving spouse of a veteran who did not obtain an exemption before death, but who would have qualified for the exemption in the current taxable year if he or she had survived. Effective immediately.

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 188 - Feigenholtz - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include costs payable to businesses located within the redevelopment area that have experienced business interruption or other adverse conditions directly or indirectly attributable to the COVID-19 public health emergency. Provides that the costs may be reimbursed in the form of grants, subsidies, or loans and that the municipality may establish procedures for the payment of such costs, including application procedures, grant or loan agreements, certifications, payment methodologies, and other accountability measures that may be imposed upon participating businesses. Defines "costs of business interruption".

According to press reports, the State of Illinois would receive $7.549 billion and local governments would receive 5.684 billion under the pending $1.9 trillion federal coronavirus relief package.

As I discussed in my special edition newsletter of February 9, on February 9 the Governor released limited details on his proposed next budget. Among the skeletal details released by the Governor was a threat to eliminate $900 million in so-called corporate loopholes. The timing of the Governor's announcement was interesting, given the fact that the next day, February 10, details of the federal assistance that will be provided to the State of Illinois under the pending $1.9 trillion federal relief package were released.

The Governor needs to explain the impact of this federal assistance on the budget. If the State of Illinois receives $7.549 in federal assistance, there would appear to be sufficient funds to address any budget shortfall for the current fiscal year, address the repayment of short-term borrowing from the federal reserve and close the "budget gap" for FY 2022 that was on February 9 by the Governor.

Rich Miller shared on his Capitol Fax blog information he received from Congressman Krishnamoorthi on the current details of the proposed federal legislation, including an estimate of the allocations of assistance by state and local government. The first link is a spreadsheet which has a detailed breakdown to the local government level. I am adding a second link in the form of a pdf that is the summary page of the spreadsheet in the event that it is difficult access the Excel link.

We are beginning to get details of the Illinois share of the federal coronavirus legislation. Here is a link to federal statutory language. Pages 6 and 7 of the federal language deals with the acceptable uses of the federal funds. Funds may be used to respond to or mitigate the Covid pandemic, and "replace revenue that was lost, delayed or decreased (as determined based on revenue projections for the State, Tribal Government, or territory as of January 27, 2020) as a result of such emergency; or address negative economic impacts of such emergency.

The Department issued Informational Bulletin FY 2021-14 "What's New for Illinois Income Taxes."

The Department recently issued a Compliance Alert "Tax Remittance Obligations for the Metropolitan Pier and Exposition Authority (MPEA) Retailers' Occupation Tax on Food and Beverages Under the New Marketplace Facilitator Law."

The Department recently issued a Compliance Alert "Tax Collection Obligations of Remote Retailers, Marketplace Sellers, and Marketplace Facilitators for Chicago Home Rule Municipal Soft Drink Retailers' Occupation Tax, Prepaid Wireless E911 Surcharge, Illinois Telecommunications Access Corporation Assessment, and Tire User.

The Department recently published a new version of Publication 131 "Withholding Income Tax Payment and Filing Requirements."

The February 12 edition of the Illinois Register has not been published by the time I sent the newsletter out this morning.

No new decisions in tax-related cases this week.

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

The Center for Tax and Budget Accountability issued the following report: Illinois Should Decouple from Federal CARES Act Tax Breaks

The Center on Budget and Policy Priorities recently issued the following report: States Should Decouple From New Federal Tax Break for PPP Loans. In this article Michael Mazerov contends that states should decouple from a provision of the Covid-19 relief legislation of December 2019 that allows businesses to deduct expenses covered by PPP loans that are forgiven. From my discussion with the Department of Revenue, although not stated specifically, it is my sense that the Department has proposed to the Governor decoupling from this federal provision.

Last month, the Center on Budget and Policy Priorities issued the following report: First, Do No Harm: States Can Preserve Revenue by Decoupling from CARES Act Tax Breaks for Business Losses.