The House and Senate were not n session this week. The Senate is scheduled to return to Springfield on April 13 and the House may also return to Springfield on April 13.

As of today, the House Revenue committee has not scheduled its next hearing.

The Senate Revenue committee is scheduled to meet next Wednesday at 4:00. SB 2531 the Chamber Tax Institute SALT cap work around legislation has been posted for committee consideration. If you would like to sign on in support of this bill, you can do so at this link.

SB 1166 - Harmon - This bill was originally a shell bill. Senator Hastings filed the following amendment: Replaces everything after the enacting clause. Creates the Investing in Illinois Works Tax Credit Act. Provides that each owner or operator, as defined in the Illinois Hazardous Materials Workforce Training Act, may apply for a credit against withholding payments due under the Illinois Income Tax Act for each member of its skilled and trained workforce who is also a qualifying graduate. Provides limitations on the credit. Creates the Access to Apprenticeship Act. Provides that no preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance. Amends the Illinois Administrative Procedure Act and the Illinois Income Tax Act to make conforming changes. Creates the Illinois Hazardous Workforce Materials Training Act. Requires workers at high hazard facilities to obtain minimum approved safety training, provided by the Occupational and Safety Health Administration, and to file a certificate of completion with the Department of Labor. Contains enforcement provisions. Provides that the Act does not apply to any owner or operator that has an executed national or local labor agreement in effect pertaining to the performance of construction work at a given facility or site under the terms of the agreement. Requires applicable apprenticeship and training programs, approved by and registered with the U.S. Department of Labor's Office of Apprenticeship, providing minimum approved safety training for workers in high hazard facilities and contractors employing workers at high hazard facilities to file an annual report with the Department and the Illinois Works Review Panel. Provides that an owner or operator who violates the requirements of the Act shall be subject to a minimum civil penalty of $10,000 for each violation. Requires all moneys received by the Department as fees and civil penalties under the Act to be deposited into the Illinois Works Fund to be used to recruit, prescreen, and provide preapprenticeship skills training. Contains other provisions. Effective January 1, 2022.

SB 1582 - Martwick - This bill is a Department of Revenue initiative. In provisions concerning recapture of Economic Development for a Growing Economy Tax Credits, provides that the taxpayer's income tax liability shall be increased by the amount of any credit allowed under the Agreement for that project location prior to the date the taxpayer ceases operations (in the introduced bill, the amount of any credit allowed prior to the date the taxpayer ceases operations).

SB 1711 - Castro - Further amends the Historic Preservation Tax Credit Act to provide that the amount of qualified expenditures must (i) equal $5,000 or more and (ii) exceed the adjusted basis of the structure on the first day the qualified rehabilitation plan commenced (currently, the expenditures must (i) equal $5,000 or more or (ii) exceed the adjusted basis of the structure on the first day the qualified rehabilitation plan commenced). Makes various technical corrections.

SB 2202 - Sims - Replaces everything after the enacting clause. Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, with respect to the sale of a manufactured home where (i) the purchase is the first purchase of the manufactured home for use as a dwelling and (ii) the taxpayer certifies to the Department of Revenue that, within 30 days after the sale, the manufactured home will be affixed to a permanent foundation in the State, the tax imposed by the Acts applies to 50% of the proceeds of sales.

SB 2278 - Stadelman - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Provides that each county that imposes a special county occupation tax for public safety, public facilities, mental health, substance abuse, or transportation shall (in the introduced bill, may) establish a 7-member board to administer the tax. Provides that home rule units are exempt from the provisions of the amendatory Act but may adopt some or all of its provisions by ordinance. Sets forth the terms of the members of the Board. Provides for the removal of members of the board by the appointing authority.

SB 2430 - Cunningham - Makes formatting changes to the introduced bill to clarify that the provisions concerning investment partnerships apply for tax years ending on or after January 1, 2021.

SB 2445 - Hunter - Provides that the credits and incentives created in the introduced bill apply on or after January 1, 2024 (in the introduced bill January 1, 2021). In provisions creating the Build Illinois Homes Tax Credit Act, provides that notice of recapture shall be sent to the owner of the qualified development, the Department of Revenue, and the Department of Insurance (in the introduced bill, the Department of Revenue and Department of Insurance only). Further amends the Property Tax Code. Makes changes concerning the assessment of low-income housing projects that qualify for the Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code. Makes other technical changes.

SB 2531 - Stoller-Conner-Martwick - This bill is an Illinois Chamber Tax Institute initiative and is provides a work around to the federal $10,000 SALT cap. Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with changes. Provides that the tax imposed under the introduced bill applies for taxable years beginning on or after January 1, 2021. Provides that certain nonresident individuals with no Illinois income tax liability after taking into account the deductions in the amendatory Act are not required to file returns. Makes various technical corrections concerning pass-through entities. Effective immediately.

The Department issued a Compliance Alert on the subject of the proper taxation of cannabis concentrates by Illinois dispensaries.

The April 9 edition of the Illinois Register did not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity.

Today's Illinois Register contains two proposed rulemakings by the Illinois Department of Revenue. The Department has proposed amendment of the Retailers' Occupation Tax rules. The Department described the amendment as follows:

"This amended regulation implements PA 101-629 which retroactively reinstated the Aircraft Maintenance exemption. This rule retroactively allows the exemption from December 31, 2014, when this exemption originally sunset, through the new sunset date of December 31, 2024. This amended regulation disallows any credit or refund for taxes paid from the original sunset date through the effective date of PA 101-629 (February 5, 2020)."

The Department also has proposed amendments to the Telecommunications Excise Tax rules. The proposed rulemaking is described as follows:

"The rulemaking amends 86 Ill. Adm. Code 495, Telecommunications Excise Tax, by adding two new sections: Section 495.111, Registration of Retailers, and Section 495.112, Revocation of Certificate of Registration. The Telecommunications Excise Tax Act and Part 495 do not contain provisions regarding registration of telecommunications retailers. Under the Act, telecommunications retailers are responsible for collecting and remitting the tax and filing returns. The rulemaking sets forth information to be included on an application for certificate of registration, circumstances under which the Department may decline to issue a certificate, and an opportunity for hearing after such a declination. Section 495.112 permits the Department to revoke a certificate of registration if a retailer is in violation of the Act or rules after notice and an opportunity for hearing." 

The Department of Revenue also published an index of sales and excise tax private letter rulings and general information letters issued by the Department during the first quarter of 2021. However, the actual letter rulings have not yet been posted on the Department's web site.

No tax-related cases,

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

The U.S. Treasury Department released a summary of the President's "Made In America Tax Plan."

Not surprisingly, the President's tax plan is supported by the Center on Budget and Policy Priorities.