The Governor gave his combined State of the State and Budget address on Wednesday. The Governor proposed elimination of so-called "corporate loopholes." The first three of the Governor’s proposals reverse agreements the Governor entered into as a result of bi-partisan budget negotiations in 2019 for the FY 2020 budget.

Restrict the manufacturing machinery and equipment exemption from the sales tax by removing “production-related tangible personal property” from the exemption. To reach an agreement on the FY 2020 budget, in 2019 the Governor agreed to modify the manufacturing machinery and equipment exemption to include “production-related tangible person property” that was formerly exempted under the Manufacturers’ Purchase Credit. With this proposal, he goes back on that agreement.

Eliminate the Blue Collar Jobs Act that was scheduled to be effective on January 1, 2021. To reach an agreement on the FY 2020 budget, in 2019 the Governor agreed to a new Blue Collar Jobs Act program that is designed to spur investment and creation of good paying blue collar jobs. With this proposal, he goes back on that agreement.

 Reverse the repeal of the Corporate Franchise Tax. To reach an agreement on the FY 2020 budget, in 2019 the Governor agreed to a gradual phase out of the Corporate Franchise Tax. With this proposal, he goes back on that agreement.

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“Roll Back Federal Tax Cuts and Jobs Act 100% Foreign-Source Dividend Deduction.” I'm advised by the Department that they intend to add back the 100% deduction for dividends from 10%-owned foreign corporations and the 50% deduction for GILTI. They explain that they plan to do this while still permitting corporate taxpayers to take advantage of the standard deductions authorized under IRC Section 243 for domestic dividends and IITA Section 203(b)(2)(O) for foreign dividends. They state that the impact of this proposal will fall primarily on large, multi-national corporations with foreign subsidiaries or substantial ownership interests in foreign corporations.

“Limit the corporate net operating loss to $100,000 per year for the next three years.” Under Section 207 of the Illinois Income Tax Act, corporations are allowed to carry Illinois net losses forward to offset income in later years. Illinois decoupled from federal law on corporate net operating losses going back to the 1980s. This proposal would limit the amount of losses that can be used in a tax year to $100,000. The Department advises that this proposal will allow the restricted losses to be carried forward for use in later years. In essence, the Governor is seeking an interest free loan from Illinois business for the next 3 years.

Decouple from federal accelerated depreciation. Under the 2017 federal Tax Cuts and Jobs Act, purchasers of capitol assets were authorized to take the cost of such a purchase in the year of acquisition as an expense, rather than depreciating the cost of the asset over the life of the asset. Illinois conforms to this federal change. The idea behind the federal change was to spur investment by businesses. The Governor proposes to decouple from the federal treatment and "apply the standard depreciation schedules in IRC Section 168. Once again, in the long run this doesn't provide any additional money to the states. This is also an interest free loan to the State of Illinois by Illinois businesses.

Limit the retailers discount for the costs of sales tax collection to $1,000 per month. Illinois law recognizes that there are costs to retailers for collecting and remitting state and local sales taxes to the state of Illinois. Illinois law allows retailers to retain 1.75% of the taxes collected as reimbursement for the costs of collection. The Governor proposes to cap this discount at $1,000 per month contending that costs of collection do not increase based on the sales volume of the retailer. This is simply untrue.

Eliminate the sales tax exemption on the sales of biodiesel. Currently, biodiesel blends containing more than 10 percent biodiesel but no more than 99 percent biodiesel, 100-percent biodiesel, and majority blended ethanol currently receive a full sales tax exemption. 

Reduce the Illinois tuition tax credit program to a 40% credit for donations from 75%. The Governor campaigned on eliminating the tuition tax credit. This proposal, by reducing the tax credit to 40% of the amount of a donation from the current 75%, will likely have the same effect as an outright repeal by eliminating the attractiveness of making a donation. 

Decoupling from the individual net operating loss provisions under the CARES Act was not mentioned in the Governor's budget address. However, i am advised that there will be continued efforts by the Governor to pass decoupling legislation. I suspect the decoupling proposal wasn't highlighted in his address on Wednesday because the decoupling would be retroactive at this point and would not be a FY 2022 budget issue, but rather would affect the FY 2021 budget.

I am also staying alert for any efforts by the Department of Revenue to decouple from the provisions of the December federal Covid relief legislation that provided that taxpayers may deduct expenses that were paid for with PPP loan funds that have been forgiven. You will recall that the Internal Revenue Service ruled last year that when calculating taxable income, taxpayers could not deduct expenses that were paid for with PPP loans that are forgiven. Congress reversed this determination in the December Coivid relief legislation. My suspicion is that the Illinois Department of Revenue may seek legislation to decouple from this federal provision.

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 House did not hold any hearings this week. The House Revenue committee has not yet met, nor has anything been scheduled.

The introduction of new legislation continues.

HB 1807 - Vella - Amends the Property Tax Code. Creates an assessment freeze homestead exemption for persons receiving federal Supplemental Security Income. Effective immediately.

HB 1828 - Greenwood - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%).

HB 1829 - Mussman - 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.

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. Provides that a business that cannot truthfully agree to any required terms shall be ineligible for the development assistance. Specifies terms that may be required. Provides that compliance with good corporate citizen eligibility is required throughout a development assistance agreement. Provides that the Department may seek revocation of any credits or exemptions that were earned or used during a time when the business or its corporate parent or affiliate was not in compliance with any applicable requirements. Provides for the adoption of rules. Defines terms.

HB 1842 - DeLuca - Amends the Property Tax Code. Provides that certain property located in Bloom, Bremen, Calumet, Rich, Thornton, or Worth Township may be certified as southland reactivation property. Provides that, beginning with the first tax year after the property is certified as southland reactivation property and continuing through the twelfth tax year after the property is certified as southland reactivation property, the property shall be valued at 50% of the last known equalized assessed value. Sets forth the maximum aggregate tax liability for property that has been certified as southland reactivation property. Effective immediately.

HB 1848 - Robinson - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2022, meals and food products for human consumption furnished or served to low-income elderly persons at or below cost by a nonprofit organization or governmental agency under a program funded by this State or the United States are exempt from taxation under the Acts. Provides that the exemption is exempt from the Acts' automatic sunset provisions. Effective immediately.

HB 1855 - Hoffman - 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 is authorized to establish the Illinois Innovation Voucher Program for the purpose of fostering research and development in key industry clusters leading to the creation of new products and services that can be marketed by Illinois businesses. Provides that the Department may award innovation vouchers to eligible businesses to offset a portion of expenses incurred through a collaborative research engagement with an Illinois institution of higher education. Provides for the award of matching funds in the form of innovation vouchers. Provides eligibility requirements for receiving innovation vouchers. Provides requirements for administering the Program. Provides for the adoption of rules. Effective immediately.

HB 1857 - Avelar - Amends the Property Tax Code. In the Senior Citizens Assessment Freeze Homestead Exemption provisions of the Code, provides that "household income" does not include wages paid to a member of the household who is a person with a disability. Effective immediately.

HB 1858 - Avelar - Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.

HB 1860 - Gong-Gershowitz - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that of the federal funds received by the State for purposes related to the COVID-19 public health emergency, 25% of any such funds shall be allocated as grants to businesses with less than 50 employees. Provides eligibility requirements for businesses seeking to receive such grants. Provides that the Department of Commerce and Economic Opportunity shall award grants in the amount of $5,000 to eligible businesses. Provides that a business shall only be eligible for one such grant. Requires the Department to publish the names of the businesses that are awarded grants on its Internet website. Provides for the adoption of rules.

HB 1867 - Zalewski - Amends the Economic Development for a Growing Economy Tax Credit Act. Repeals provisions concerning the Illinois Business Investment Committee. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code. Creates the Illinois Small Business Fund as a nonappropriated separate and apart trust fund in the State Treasury. Provides that the Department of Commerce and Economic Opportunity shall use moneys in the Fund to manage proceeds that result from investments that the Department has undertaken through economic development programs. Repeals the Illinois Small Business Incubator Article within the Build Illinois Act.

HB 1868 - Zalewski - 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.

HB 1897 - Bennett - Amends the Illinois Income Tax Act. Provides that each individual who serves as a volunteer firefighter or a volunteer EMS provider during the taxable year is entitled to a credit in an amount equal to $500. Effective immediately.

HB 1921 - Spain & Carroll - Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act. Effective immediately.

HB 1922 - Spain - Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the term "selling price" does not include the value of or credit given for traded-in tangible personal property (currently, beginning on January 1, 2020, with respect to motor vehicles, "selling price" does include the trade-in value). Effective immediately.

HB 1923 - Spain & Carroll - Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the term "selling price" does not include the value of or credit given for traded-in tangible personal property (currently, beginning on January 1, 2020, with respect to motor vehicles, "selling price" does include the trade-in value). Amends the Illinois Vehicle Code. In a Section concerning the use tax on motor vehicles, makes changes concerning the amount of the tax. Provides that the tax on motorcycles, motor driven cycles, and mopeds shall be the same as for all other motor vehicles. Effective immediately.

HB 1937 - McCombie - Amends the State Finance Act, the Motor Fuel Tax Law, the Emergency Telephone System Act, the Riverboat 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.

HB 1938 - McCombie - This is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Use Tax Act and the Service Use Tax Act. Provides that the multistate exemption includes the return of property of an out-of-State lessor or purchaser to this State for storage, repair, or refurbishment, so long as the property is not used by a lessee or purchaser in this State. Effective immediately.

HB 1940 - McCombie - Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2022, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.

HB 1946 - Evans - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that all blood sugar testing materials are subject to the 1% reduced rate of tax (currently, urine testing materials for human use only). Effective immediately.

HB 1947 - Evans - Amends the Illinois Income Tax Act. Provides that each taxpayer who employs an individual who is 15 years of age or older but not yet 20 years of age during the taxable year to work for the taxpayer for at least 25 hours every two weeks is entitled an income tax credit in an amount equal to 60% of the wages paid to those employees during the taxable year. Effective immediately.

HB 1949 - Sosnowski - Amends the Property Tax Code. Provides that in counties with less than 3,000,000 inhabitants, the board of review may establish reasonable procedures for contesting the payment of taxes, interest, fees or costs that the chief county assessment officer determines are due because a portion of the property was omitted based on an erroneously granted homestead exemption. Provides for the number of years that may be contested, and for the collection of fees, interest and penalties.

HB 1959 - Evans - Amends the Illinois Income Tax Act. Creates a credit for financial institutions with less than $50,000,000,000 in assets in an amount equal to the aggregate amount of all fees, penalties, and any other income derived during the taxable year from each commercial loan transaction that is (i) less than $5,000,000, (ii) originated by the financial institution, (iii) made to a person residing or located in this State, and (iv) made primarily for a business or agricultural project in this State. Effective immediately.

HB 1962 - Keicher - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Office of the Apprenticeship Coordinator within the Department of Commerce and Economic Opportunity to implement programs and strategies related to apprenticeships and to provide assistance to individuals and groups in the State that have interest in or are qualified to be placed in an apprenticeship program. Amends the Illinois Income Tax Act to create a credit for qualified apprentices.

HB 1963 - Keicher - Amends the Property Tax Code. In provisions granting a homestead exemption for veterans with disabilities, provides that, if the veteran has a service connected, permanent disability of at least 60%, as certified by the United States Department of Veterans Affairs, then the property is exempt from taxation. Effective immediately.

HB 1964 - Keicher - Amends the Property Tax Code. Provides that, for the 2020 and 2021 taxable years only, the county board of each county shall, by ordinance or resolution, adopt a method of tax billing which allows for taxes to be paid in 4 installments if 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 during any part of the taxable year. Effective immediately.

HB 1967 - Walker - 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 shall provide on its website a central repository for new and existing businesses with specified business-related content. Amends the Illinois Enterprise Zone Act. Contains provisions concerning certification and decertification of Enterprise Zones. Amends the Illinois Income Tax Act. Makes changes concerning the angel investment credit. Provides for a credit for taxpayers who hire full-time employees to fill positions at a location in a county with fewer than 250,000 inhabitants. Amends the Technology Development Act. Removes a provision limiting investment in funds created by an Illinois venture capital firm. Provides that distributions from a TDA II-Recipient Fund, in an amount not to exceed the commitment amount and total distributions received, may be reinvested into a specified account without being counted against the 5% cap. Provides that specified moneys in the Technology Development Fund may be provided as grants to technology businesses in order to foster, accelerate, and scale technology innovation in Illinois. Modifies the term "technology business" to expand the meaning of technology oriented or emerging activity. Makes conforming changes. Effective immediately.

HB 1977 - Kifowit - Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that, prior to the adoption of an ordinance proposing the designation or extension of a redevelopment project area, the municipality must evaluate the potential costs incurred by affected school districts at a public hearing. Effective immediately.

HB 1988 - Kifowit - Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that, after the effective date of the amendatory Act, the municipal treasurer shall pay: (i) 25% of the money attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in a redevelopment project area directly to school districts within the redevelopment project area in proportion to the percent of that amount that each school district would have received if there was no redevelopment project area; and (ii) the remaining 75% into the special tax allocation fund for the purpose of paying redevelopment project costs and obligations incurred in the payment thereof. Provides that, for redevelopment project areas established after the effective date of the amendatory Act, a school district within a proposed redevelopment project area may negotiate an additional percentage of money for the school district.

HB 1989 - Stuart - Amends the Illinois Income Tax Act. Creates a credit for public school fees and contributions. Sets forth purposes for which those fees and contributions may be used. Provides that the credit may not exceed $200 for each individual taxpayer or $400 for a married couple filing jointly. Effective immediately.

HB 2371 - Crespo - Amends the Taxation Disclosure Act. Provides that each retailer that is required to collect and remit the tax imposed under the Retailers' Occupation Tax Act shall, in addition to other information included on the customer's receipt, include itemized line items on the customer's receipt detailing the use and occupation taxes imposed by each unit of local government.

HB 2378 - Mason - Amends the Property Tax Code. Provides that, for the 2015 taxable year and thereafter, the exemption for veterans with disabilities also carries over to the surviving spouse of a veteran who was killed in the line of duty in the current taxable year or any preceding taxable year. Provides that, for the 2021 taxable year and thereafter, the exemption for veterans with disabilities also carries over to (i) the surviving spouse of a veteran who did not obtain the exemption before death, but who would have qualified for the exemption in the current taxable year if he or she had survived and (ii) the surviving spouse of a veteran whose death was determined to be service-connected and who is certified by the United States Department of Veterans Affairs as being a current recipient of Dependency and Indemnity Compensation. Provides that, in the case of a surviving spouse who is certified by the United States Department of Veterans Affairs as being a current recipient of Dependency and Indemnity Compensation, the property is exempt. Provides that the exemption carries over to the benefit of the veteran's adult or minor child if the child receives social security disability benefits or social security supplemental income because of a permanent disability and the veteran is deceased and the veteran's surviving spouse is deceased, remarries, or disclaims the exemption under this Section. Effective immediately.

HB 2386 - Vella - Amends the Illinois Income Tax Act. Provides that each taxpayer business is entitled to an income tax credit in an amount equal to 100% of the costs incurred by the taxpayer in paying for screenings, treatments, and recommendations associated with individual employees' physical, mental, and emotional wellness. Effective immediately.

HB 2387 - Mason - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, with respect to diapers, infant formula, and breastfeeding supplies designed for human use, the tax is imposed at the rate of 1%.

HB 2388 - Stuart - Amends the Illinois Income Tax Act. Provides that a taxpayer who has incurred at least $20,000 in undergraduate student loan debt and has at least $5,000 in outstanding undergraduate student loan debt at the time of the application is entitled to a credit as awarded by the Department of Revenue. Provides that Department of Revenue that the amount of the credit shall not exceed $ 5,000 per taxpayer. Provides that the total amount of credits approved by the Department of Revenue under the provisions of the amendatory Act may not exceed $5,000,000 in any taxable year. Contains recapture provisions. Effective immediately.

HB 2391 - Kifowit - Amends the Property Tax Code. In a Section concerning the homestead exemption for veterans with disabilities, provides that: (1) for taxable years prior to 2015, "surviving spouse" means the surviving spouse of a veteran who obtained the exemption prior to his or her death; (2) for taxable years 2015 through 2020, "surviving spouse" means (A) the surviving spouse of a veteran who obtained the exemption prior to his or her death and (B) the surviving spouse of a veteran who was killed in the line of duty in the current taxable year or any preceding taxable year; and (3) for taxable year 2021 and thereafter, "surviving spouse" means (A) the surviving spouse of a veteran who qualified for the exemption prior to his or her death, (B) the surviving spouse of a veteran who was killed in the line of duty in the current taxable year or any preceding taxable year, (C) the surviving spouse of a veteran who did not obtain the exemption before death, but who would have qualified for the exemption if he or she had survived, and (D) the surviving spouse of a veteran whose death was determined to be service-connected who is a current recipient of Dependency and Indemnity Compensation. Effective immediately.

HB 2393 - Kifowit - Amends the Property Tax Code. Provides that there shall be printed on each tax bill, or on a separate slip mailed with a tax bill, each taxing district affected by revenues received by a tax increment financing district. 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.

HB 2411 - Davis - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that a qualifying Illinois date center is a place, among other criteria, that within 2 years (currently, 90 days) after being placed in service, certifies that it is carbon neutral or has attained other specified certification. Amends the Brownfields Redevelopment and Intermodal Promotion Act. Extends the use of the South Suburban Brownfields Redevelopment Fund. Amends the New Markets Development Program Act. Modifies provisions concerning certification of qualified equity investments and allocation thereof. Provides further rulemaking requirements. Provides that for fiscal years following fiscal year 2026 (currently, 2021), qualified equity investments under the Act shall not be made unless reauthorization is made. Makes other changes. Effective immediately.

HB 2424 - Croke - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that of the federal funds received by the State for purposes related to the COVID-19 public health emergency, 25% of any such funds received on or after March 1, 2021 shall be allocated for use by the Coronavirus Business Interruption Grant Program (BIG Program). Effective immediately.

HB 2429 - Greenwood - Amends the Illinois Income Tax Act. In provisions creating a credit for rehabilitation costs associated with qualified historic property located in a River Edge Redevelopment Zone, provides that, if the River Edge Redevelopment Zone is located in the City of East St. Louis, then the tax credit applies for taxable years that end prior to January 1, 2027 (currently, January 1, 2022). Effective immediately.

HB 2436 - Walker - Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that, for levy year 2022 and thereafter, the limiting rate shall include 50% of the value of new property (currently, 100% of the value of new property is excluded). Makes changes to the definition of "aggregate extension base". Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Adds two factors to the determination of a "blighted area" for improved, industrial, commercial, and residential buildings or improvements related to poverty and unemployment. Removes or modifies various factors from the definitions of "blighted area" and "conservation area" for improved and vacant areas. Provides that a new redevelopment project shall have a completion date no later than December 31st of the 10th year after the ordinance was adopted (rather than the 23rd year) and may be extended to 15 years (rather than 35 years). Provides that the joint review board and municipality shall approve surplus funds and extensions of redevelopment project area completion dates. Provides that surplus funds shall be distributed annually within 90 days (currently, 180 days) after the close of a municipality's fiscal year. Provides that a new or modified redevelopment project area that overlaps with any existing redevelopment project area shall not be approved. Effective immediately, except that provisions amending the Illinois Municipal Code take effect on January 1, 2022.

HB 2443 - Davidsmeyer - Amends the Motor Fuel Tax Law. Provides that, on and after July 1, 2021, marine fuel is exempt from the tax imposed under the Act. Provides that "marine fuel" means motor fuel specially formulated to be used in the propulsion of watercraft. Effective immediately.

HB 2444 - Davidsmeyer - Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue shall not require a taxpayer, whether an individual, not-for-profit, or other business entity, to collect and furnish to the Department individual tax identification information from vendors that participate in an event hosted or sponsored by the taxpayer. Effective immediately.

HB 2450 - Hammond - Amends the Property Tax Code. Provides that a veteran who has a service connected disability of 100% need not reapply for the homestead exemption for veterans with disabilities. Effective immediately.

HB 2478 - Mazzochi - Amends the Property Tax Code. Provides that, in the case of property that is occupied as a residence by a person who: (1) is 55 years of age or older during the taxable year; (2) is liable for paying real estate taxes on the property; and (3) is an owner of record of the property or has a legal or equitable interest in the property, property taxes shall be paid on a monthly basis. Effective immediately.

HB 2479 - Mazzochi - Amends the Property Tax Code. Creates the senior citizens homestead school levy exemption for property that is improved with a permanent structure that is occupied as a primary residence by an applicant who (i) is 65 years of age or older during the taxable year, (ii) has a household income that does not exceed the maximum income limitation, (iii) is liable for paying real property taxes on the property, (iv) is an owner of record of the property or has a legal or equitable interest in the property as evidenced by a written instrument, if no individual residing at the real property is or will be enrolled in a public school. Effective immediately.

HB 2487 - Mazzochi - Amends the Property Tax Code. Provides that, if an individual or entity (i) has been found by any court, administrative agency, assessor, deputy, or inspector general to have knowingly made fraudulent or material misrepresentations in connection with securing a reduced assessed value for any property and (ii) has a legal interest in any other property subject to the jurisdiction of any other county or township assessor within the State, then the board of review having jurisdiction over that property may initiate and conduct an investigation, and may summon any assessor, deputy, or other person to appear before it, so as to determine the accuracy of the assessed value of that property or the accuracy of the representations previously made by the person or entity regarding the assessment or valuation of that property.

HB 2493 - Meier - Amends the Illinois Hydraulic Fracturing Tax Act. Provides that moneys received under the Act shall be used only for the payment of pension obligations of the State of Illinois. Effective immediately.

HB 2498 - Moylan - 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 shall issue income tax credits, with certification, to qualified professional design firms in Illinois that hire qualified employees. Provides that the tax credit amount shall be (i) 10% of the qualified compensation paid to each qualified employee who graduated from an accredited institution of higher learning in the State and (ii) 5% of the qualified compensation paid to each qualified employee who graduated from an accredited institution of higher learning outside of the State. Provides that "qualified employee" means an employee working in the State for a qualified professional design firm as an architect, an architectural associate, a structural engineer, a structural engineer intern, a design professional, or an engineer intern who graduated from an accredited institution of higher learning with a Bachelor's degree within the 2 years immediately preceding the year in which the credit is taken. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

HB 2530 - Rita - Amends the Property Tax Code. Provides that certification of the levy by the county clerk may be done electronically.

HB 2534 - Bennett - Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall establish and administer a Land Bank Operations Program to make annual grants to intergovernmental or county land bank authorities. Requires the Illinois Housing Development Authority to maintain a Technical Assistance Network for the Land Bank Operations Program. Amends the Property Tax Code. Provides that tax purchasers shall pay to the county collector a land bank operations fee of $200 for each certificate purchased. Provides that the proceeds from the fee shall be disbursed as follows: (i) 95% of the proceeds shall be remitted to the State Treasurer for deposit into the Land Bank Operations Fund; and (ii) 5% may be retained by the county collector. Provides that moneys in the Land Bank Operations Fund shall be used for the Land Bank Operations Program. Amends the State Finance Act to create the Land Bank Operations Fund.

HB 2544 - Ugaste - Amends the Property Tax Code. Provides that no taxing district may hold more than 150% of the previous levy year's property tax collections in cash or cash-equivalent assets. Provides that excess amounts shall be refunded to taxpayers. Effective immediately.

HB 2547 - Chesney - Amends the Economic Development for a Growing Economy Tax Credit Act. Removes provisions concerning conditions that the Business Investment Committee shall determine exist in order for the Committee to make its recommendation that an Applicant's application for Credit should or should not be accepted. Effective immediately.

HB 2557 - Mazzochi - Creates the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive (RESTAURANTS) Act. Creates the Illinois Restaurant Revitalization Fund. Provides that the State Treasurer and certain units of local government shall award grants from the Fund to eligible entities. Provides that the term "eligible entity" means a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, or other similar place of business, subject to certain limitations. Amends the Illinois Income Tax Act and the State Finance Act to make conforming changes. Effective immediately.

HB 2582 - Murphy - Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2022, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.

HB 2583 - Murphy - 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.

HB 2587 - Kifowit - Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that any school district that is affected by the establishment of a tax increment financing district may file an objection with the State Board of Education, alleging: (i) that the redevelopment project area does not meet the criteria for designation; or (ii) that property tax revenue received by the school district after the establishment of the tax increment financing district is likely to be insufficient to allow the school district to meet its obligation to provide a high quality public education to students under Section 1 of Article X of the Illinois Constitution.

HB 2610 - Butler - Amends the Parking Excise Tax Act. Provides that the Act is repealed on July 1, 2021. Effective immediately.

HB 2624 - Yednock - Amends the Property Tax Code. Provides for a homestead exemption in the amount of $5,000 for property that is owned and occupied as the principal residence of an active duty member of the military. Effective immediately.

HB 2637 - Reick - Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

HB 2750 - Yednock - Amends the Illinois Income Tax Act. Creates an income tax credit for an owner of an agricultural asset who sells or rents the agricultural asset to a beginning farmer. Provides that the credit shall be equal to: (1) 5% of the lesser of the sale price or the fair market value of the agricultural asset, up to a maximum of $32,000; or (2) 10% of the gross rental income in each of the first, second, and third years of a rental agreement, up to a maximum of $7,000 per year. Provides that the taxpayer shall apply with the Department of Agriculture. Provides that the Department of Agriculture may not approve more than $5,000,000 in credits under those provisions in any one taxable year. Effective immediately.

HB 2754 - Slaughter - Amends the Illinois Income Tax Act. Creates an income tax credit and a credit against insurance premium taxes for business entities for the cost of providing certain commuter benefits to employees. Provides that the credit shall be equal to 50% of the cost of providing the eligible commuter benefits, but not to exceed $100 per individual employee per month. Effective immediately.

HB 2772 - Ness - Amends the Illinois Income Tax Act. Repeals a Section concerning a credit for coal research and utilization equipment, which sunset on January 1, 2005. Effective immediately.

HB 2792 - Ammons - Amends the Illinois Income Tax Act. Provides that an individual taxpayer age 65 or older is entitled to the earned income tax credit without regard to the requirement under the federal Internal Revenue Code that an individual taxpayer without a qualifying child has not attained age 65. Provides that an individual taxpayer age 18 to 24 is entitled to the earned income tax credit without regard to the requirement under the federal Internal Revenue Code that an individual taxpayer without a qualifying child has attained the age of 25. Provides that certain taxpayers using individual tax identification numbers are entitled to the earned income tax credit. Creates the eligible dependent tax credit. Provides that the total amount of credits between the eligible dependent tax credit and the earned income tax credit may not be less than $600. Amends the Earned Income Tax Credit Information Act to delete certain provisions concerning dependent children. Effective immediately.

HB 2802 - Halbrook - Amends the Illinois Income Tax Act. Creates a tax credit for individual taxpayers who were members in good standing of a volunteer fire department for at least 6 months during the taxable year. Provides that the amount of the credit is $1,000. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Exempts the credit from the Act's sunset requirements. Effective immediately.

HB 2803 - Halbrook - Amends the Property Tax Code. Provides that, for the 2015 taxable year and thereafter, the exemption for veterans with disabilities also carries over to the surviving spouse of a veteran who was killed in the line of duty in the current taxable year or any preceding taxable year. Provides that, for the 2021 taxable year and thereafter, the exemption for veterans with disabilities also carries over to (i) the surviving spouse of a veteran who did not obtain the exemption before death, but who would have qualified for the exemption in the current taxable year if he or she had survived and (ii) the surviving spouse of a veteran whose death was determined to be service-connected and who is certified by the United States Department of Veterans Affairs as being a current recipient of Dependency and Indemnity Compensation. Provides that, in the case of a surviving spouse who is certified by the United States Department of Veterans Affairs as being a current recipient of Dependency and Indemnity Compensation, the property is exempt. Effective immediately.

HB 2817 - Halbrook - Amends the Minimum Wage Law. Provides that unless an employer is officially recognized by the United States Internal Revenue Service as a tax-exempt organization under a specified Section of the Internal Revenue Code of 1986, then the employer shall, at a minimum, pay at a rate of $8.25 per hour.

HB 2820 - Halbrook - Amends the Property Tax Code. Provides that deputies and clerks appointed by a county assessor in a county with less than 3,000,000 inhabitants shall be appointed with the advice and consent of the county board. Provides that their compensation is to be fixed by the county board and paid by the county. Effective immediately.

HB 2823 - Sommer - Amends the Revised Uniform Unclaimed Property Act. Provides that an indication of an apparent owner's interest in property includes (rather than excludes) an automatic reinvestment of dividends or interest.

HB 2824 - Sommer - Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the term "selling price" does not include the value of or credit given for traded-in tangible personal property (currently, beginning on January 1, 2020, with respect to motor vehicles, "selling price" does include the trade-in value). Effective immediately.

HB 2836 - Butler - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Division on Downstate Economic Development within the Department of Commerce and Economic Opportunity. Provides legislative findings and a statement of purpose. Provides that the Division shall plan and coordinate existing State programs designed to aid and stimulate the economic development in downstate communities in specified regions. Sets forth the duties and responsibilities of the Division. Provides that the Division shall be overseen by the Assistant Director. Provides rulemaking authority. Effective January 1, 2022.

HB 2853 - Lewis - Amends the Property Tax Code. Provides that a school district, a unit of local government, a municipality, county, township, fire protection district, or any special district within the county of DuPage may perform special assessments upon any other taxing district for services provided to certain residents of a residential substance abuse treatment facility located within DuPage County under specified conditions.

HB 2871 - Manley - Amends the Illinois Income Tax Act. Provides that, when calculating the taxpayer's base income, the taxpayer's federal adjusted gross income shall be modified to exclude the portion of the income or loss received from a trade or business conducted within and without Illinois or from a pass-through entity conducting business within and without Illinois that is not derived from or connected with Illinois sources. Repeals provisions concerning a credit for foreign taxes. Effective immediately.

HB 2872 - Luft - Amends the Property Tax Code. Provides that, beginning with the 2021 levy year, the Property Tax Extension Limitation Law applies to all taxing districts, including home rule units. Provides that, beginning with the 2021 levy year, the extension limitation under the Property Tax Extension Limitation Law is 0% or the rate of increase approved by the voters. Preempts home rule. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

HB 2887 - Niemerg - Amends the Illinois Income Tax Act. Provides that a taxpayer who notifies the Department of Revenue that the taxpayer would face financial hardship in the payment of estimated taxes shall be granted a hardship waiver and shall not be subject to a penalty for failing to pay estimated tax. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective immediately.

HB 2888 - Niemerg - Amends the Illinois Income Tax Act. Reduces the rate of tax on corporations from 7% to 5.5%. Effective immediately.

HB 2889 - Niemerg - Amends the Illinois Income Tax Act. Reduces the rate of tax on individuals, trusts, and estates from 4.95% to 3.75%. Effective immediately.

HB 2890 - Niemerg - Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the eligible expenses incurred for engaging in qualified tourism activities by the taxpayer during the taxable year. Effective immediately.

HB 2895 - Frese - Amends the Illinois Vehicle Code. Reduces the trailer flat weight tax for maximum loads of 3,000 pounds and less from $118 to $18. Effective immediately.

HB 2909 - Kifowit - 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.

HB 2913 - Halpin - Amends the Illinois Procurement Code. Provides that the Code does not apply to the leasing of State-owned facilities by a wireless carrier. Amends the Illinois Income Tax Act. Creates credit for the cost of equipment and materials used in the business of providing broadband services in a county in the State with a population of fewer than 40,000 people or a township in the State with a population density of less than 50 households per square mile in a county with a population of less than 300,000 people. Provides that the credit does not apply to equipment and materials placed in service after December 31, 2026. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to exempt equipment and materials used to provide broadband services in a county in the State with a population of fewer than 40,000 people or a township in the State with a population density of less than 50 households per square mile in a county with a population of less than 300,000 people. Effective immediately.

HB 2917 - Niemerg - Amends the Illinois Vehicle Code. Reduces the trailer flat weight tax for maximum loads of 3,000 pounds and less from $118 to $18. Effective immediately.

HB 2934 - Bos - Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the term "selling price" does not include the value of or credit given for traded-in tangible personal property (currently, beginning on January 1, 2020, with respect to motor vehicles, "selling price" does include the trade-in value). Effective immediately.

HB 2942 - Meier - Creates the Spending Reduction and Revenue Control Act. Provides that the General Assembly shall not enact any bill that either (i) creates new State taxes or (ii) increases existing State taxes until an appropriation bill or bills are passed that, in the aggregate, represent a reduction in the spending levels from the previous fiscal year. Provides that every State agency shall submit to the General Assembly a recommended list of spending efficiencies and budget reductions they deem necessary in order to help the General Assembly comply with the provisions of the Act. Effective immediately.

HB 2953 - Lilly - Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that the Department of Commerce and Economic Opportunity may enter into new Agreements under the Act until June 30, 2025 (currently, June 30, 2022). Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2023 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.

HB 2966 - Elik - Amends the Property Tax Code. Provides that, for taxable years 2021 and thereafter, the maximum reduction under the senior citizens homestead exemption is $8,000 in all counties (currently, $8,000 in counties with 3,000,000 or more inhabitants and $5,000 in all other counties). Provides that the maximum income limitation for the senior citizens assessment freeze homestead exemption is $75,000 (currently, $65,000). Effective immediately.

HB 2972 - Morrison - Creates the Truth in Legislative Taxation Act. Provides that every new Act that creates a new tax or fee or increases an existing tax or fee shall include the words "Tax Increase", "Fee Increase", or "Tax and Fee Increase" in its short title. Requires the sponsor of the new Act to inform the Legislative Reference Bureau that the new Act creates a new tax or fee or increases an existing tax or fee each time a drafting request is made related to that new Act. Requires the sponsor to provide a statement of legislative intent to the Legislative Reference Bureau that describes each new or increased tax or fee in the new Act and that sets forth the reason for each new or increased tax or fee. Directs the Legislative Reference Bureau to: ensure that the short title of the new Act conforms to the naming requirements of this Act; include the statement of legislative intent provided by the sponsor in the Section of the new Act immediately following the short title; and in its synopsis of the bill or amendment, state that the new Act creates a new tax or fee or increases an existing tax or fee. When the new Act is drafted in the form of a bill, directs the Legislative Reference Bureau to affix to the first page of the bill a stamp or words indicating that the new Act is one to which this Act applies. Provides corresponding requirements for amendatory Acts. Effective immediately.

HB 2979 - Morrison - Amends the Illinois Income Tax Act. Increases the maximum amount of the education expense credit to $1,500 (currently, $500). Adds athletic fees, driver's education fees, and fees and costs associated with certain out-of-school activities to the list of qualified education expenses. Effective immediately.

HB 2999 - Severin - Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit applies on a permanent basis. Provides that the term "Illinois production spending" includes the compensation, not to exceed $1,000,000 per employee, for up to 4 contractual or salaried employees who perform services with respect to an accredited production. Provides that those employees are not required to be residents of the State. Provides that Illinois labor expenditures are limited to: (i) the first $200,000 of wages paid or incurred to each out-of-State employee of the production; and (ii) 100% of the wages paid or incurred to each employee of the production who is a resident of the State. Provides that talk shows, other than talk shows that are produced for local or regional markets, and reality competition productions may be considered accredited productions. Provides that the credit includes 5% of the Illinois labor expenditures generated by the employment of residents of the State who reside outside of the metropolitan area. Provides that the credit amount shall be increased by 5% if 50% or more of the total hours of principal filming or taping of the production are completed in the State but outside of the metropolitan area. Provides that the term "metropolitan area" means the City of Chicago and any part of the State located within 30 miles of the City of Chicago. Effective immediately.

HB 3000 - Severin - Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that if an in-State retailer or serviceman bids on a purchase order or contract to provide materials, equipment, or supplies to a municipality with a population under 1,000,000, and that purchase order or contract involves an amount in excess of $25,000, then the municipality may apply to the Department of Revenue for a certificate of exemption from the taxes imposed under specified local provisions of the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act for the in-State retailer or serviceman, or a third-party supplier of the retailer or serviceman, with respect to the materials, equipment, or supplies covered by the bid if: at least one other bid is received from an out-of-State retailer or serviceman; the in-State retailer or serviceman demonstrates the necessity of the exemption in order to submit the lowest responsible bid, including substantive proof furnished by the retailer or serviceman to the municipality or the Department of Revenue; and the in-State retailer provides an itemized estimate of cost to the corporate authorities of the municipality. Defines terms. Makes confirming changes in the following Acts and Codes: the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Salem Civic Center Law of 1997 of the Civic Center Code, the Metropolitan Pier and Exposition Authority Act, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Effective immediately.

HB 3002 - Batnick - Amends the Property Tax Code. Requires the county clerk to determine whether the aggregate property tax rate for the taxable year on any parcel of property in the county is equal to or greater than 3%. Provides that, with respect to those properties, the total tax liability expressed in dollars may not exceed the property tax liability for that property in the previous taxable year. Provides that, if the property did not have a tax liability in the previous taxable year, or if there have been improvements to the property since the previous taxable year that would increase the assessed value of the property, then the property tax liability for the current taxable year may not exceed 3% of the equalized assessed value of the property. Provides that the amendatory Act does not apply to counties that classify property for the purposes of taxation. Effective immediately.

HB 3017 - Sosnowski - Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and drugs are exempt from the tax under the Acts. Effective January 1, 2022.

HB 3021 - Reick - Amends the Property Tax Code. Creates an alternate valuation for certain property in the City of Harvard that meets the criteria to be certified as revitalized property for advanced technology.

HB 3028 - Wheeler - This legislation repeals the throwback rule from the income tax. The Illinois Chamber strongly supports this legislation. Amends the Illinois Income Tax Act. In provisions concerning business income of persons other than residents, removes provisions providing that sales of tangible personal property are in this State if the property is shipped from an office, store, warehouse, factory or other place of storage in this State and the purchaser is not subject to tax in the state of the purchaser.

HB 3032 - Wheeler - Creates the Revenue Estimate Act. Provides that the General Assembly shall not enact any bill to appropriate funds within any fiscal year prior to its adoption of a joint resolution reflecting the estimate of funds available for that fiscal year as required under the Commission on Government Forecasting and Accountability Act. Effective immediately.

HB 3033 - Wheeler - This is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the exemption for the use or sale of tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will temporarily store the property in Illinois (i) for the purpose of subsequently transporting it outside this State for use or consumption solely outside this State or (ii) for the purpose of being processed, fabricated, or manufactured into, attached to, or incorporated into other tangible personal property to be transported outside this State and used or consumed solely outside this State sunsets on June 30, 2022 (currently, June 30, 2016). Effective immediately.

HB 3034 - Wheeler - This bill is an Illinois Chamber of Commerce Tax Institute initiative. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 1% of the expenses claimed by the taxpayer as a federal income tax deduction pursuant to Section 179 of the Internal Revenue Code for the tax year. Provides that the taxpayer may sell, assign, or transfer the credit. Provides that the maximum aggregate amount of credits awarded for those purposes may not exceed $45,000,000 in any calendar year. Amends the Uniform Penalty and Interest Act to provide that, if the amount of the credit is reduced because the claims for credit exceed the maximum aggregate amount of the credit, then no underpayment penalty or interest shall accrue on the additional tax so long as the additional tax is paid within 60 days after the notice of reduction. Effective immediately.

HB 3038 - Wheeler - This legislation carves out taxes from the False Claims Act. The Illinois Chamber strongly supports this legislation. Amends the Illinois False Claims Act. Provides that no court has jurisdiction over a civil action relating to or involving a false claim regarding certain tax acts administered by the Department of Revenue unless the action is brought by the Attorney General. Provides that the Department has the sole authority to bring an administrative action and that the Attorney General has the sole authority to bring a judicial action under the Act for a false claim, statement, or record pertaining to certain taxes administered by the Department. Contains provisions concerning reporting, investigative, and enforcement procedures for allegations of false claims pertaining to certain taxes. Contains provisions governing the payment of rewards to persons who provide information that leads to recovery of funds under the new provisions. Provides that the appeal of a determination regarding an award may be appealed exclusively to the Court of Claims and must be filed within 30 days of the determination of the award. Makes other changes, including a corresponding change in the Court of Claims Act.

HB 3091 - Harper - Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who open and operate a supermarket or grocery store in a food desert community designated by the Department of Commerce and Economic Opportunity. Provides that the credit shall be in an amount equal to the total amount the taxpayer is assessed in property taxes for the location at which the supermarket or grocery store is located during the full taxable year that the supermarket or grocery store is open for business to the public. Effective immediately.

SB 217 - Castro - Amends the Parking Excise Tax Act. Provides that the tax does not apply to: (1) a parking area or garage operated by the State, a State university, or a unit of local government; (2) the purchase of a parking space by the State, a State university, or a unit of local government for use by employees of the State, State university, or unit of local government; (3) a parking space leased to a governmental entity for use by the public; or (4) a parking area or garage owned and operated by a person engaged in the business of renting real estate and used by the lessee to park motor vehicles, recreational vehicles, or self-propelled vehicles for the lessee's own use. Effective immediately.

SB 227 - Gillespie - Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the Act does not apply to the overcollection of any tax by a person, to the extent such overcollected tax is remitted to a government entity or agency. Provides that a tax is remitted to a governmental entity or agency when it is paid or transferred to the government entity or agency, or taken as a credit, allowance, or offset on a tax return or other tax form (including any amount of commission or discount taken by or allowed to a tax collector or taxpayer).

SB 253 - Koehler - Amends the Property Tax Code. Provides that the abatement for property located in an area of urban decay also applies to newly remodeled single-family or duplex residential dwelling units (currently, only newly constructed single-family or duplex dwelling units). Provides that provisions requiring the abatement to be reduced in 20% increments annually during the last 4 years of the abatement period apply only to abatements granted prior to the effective date.

The Department issued its January 2021 Regulatory Agenda. The Regulatory Agenda is a listing of rulemakings that the Department may propose over the next 6 months. State agency regulatory agendas are lists of rulemakings that an agency could do. The Department is not required to propose all of the rulemakings listed on the regulatory agenda, nor are they limited to rulemakings listed on the regulatory agenda.

The February 16 edition of the Illinois Register contained no proposed rulemakings by the Illinois Department of Revenue or the Department of Commerce and Economic Opportunity. The Illinois Register did not contain any adopted rulemakings by the Department of Commerce and Economic Opportunity. The Illinois Register contain one adopted rulemaking by the Illinois Department of Revenue.

The Department described the substance of the rulemaking as follows:

"This rulemaking implements the amendments PA 101-31 made to Sections 303, 304 and 710 of the Illinois Income Tax Act, 35 ILCS 5/303, 5/304 and 5/710. Section 303, 35 ILCS 5/303, is amended as follows. For tax years ending on or after December 31, 2019, all horse racing and casino winnings under the Illinois Horse Racing Act of 1975 and the Illinois Gambling Act (formerly the Illinois Riverboat Gambling Act) are allocable to Illinois. Section 304, 35 ILCS 5/304, is amended as follows. For tax years ending on or after December 31, 2019, all gross receipts from winnings from pari-mutuel wagering conducted at a wagering facility licensed under the Illinois Horse Racing Act of 1975 [230 ILCS 5] or from winnings from gambling games conducted on a riverboat or in a casino or organization gaming facility licensed under the Illinois Gambling Act [230 ILCS 10] are in this State. Section 710, 35 ILCS 5/710, is amended to require withholding for residents and nonresidents for payments for winnings at a pari-mutuel wagering facility or from gambling games conducted on a riverboat or in a casino or organization gaming facility provided that the person making the payment is required to withhold under Section 3402(q) of the Internal Revenue Code."

The February 19 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or adopted rulemakings by the Department of Revenue. Today's Illinois Register contains one proposed rulemaking by the Department of Revenue.

The Department of Revenue describes the proposed rulemaking as follows:

"The rulemaking adds a new Section 130.2081, Tax-Free Purchases by Exempt Entities and their Employees and Representatives, and Documenting Sales to Exempt Entities, their Employees and Representatives. It provides rules for tax exempt entities to make tax-exempt purchases of tangible personal property in furtherance of the organizational goals of the tax-exempt entities. The rulemaking also provides rules for employees and representatives of tax exempt entities that wish to make tax-exempt purchases of tangible personal property in furtherance of the organizational goals of the tax-exempt entities using their own funds and paying by cash, personal check, credit card, or debit card."

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.