The Senate returns to Springfield next week on the 15th for one day to address energy-related legislation. It is unclear at this point as to whether any other matters will be considered by the Senate on the 15th.

The House plans to return to Springfield on the 16th to address any energy-related legislation passed by the Senate and also to consider legislation to require an elected school board for the Chicago Public Schools that passed the Senate prior to May 31, but was not considered by the House.

Today, I will reference some bills with tax-related provisions that passed in the last days of the spring legislative session that I haven't highlighted in previous newsletters.

HB 2621 - Replaces everything after the enacting clause. Creates the COVID-19 Affordable Housing Grant Program Act. Amends the Illinois Income Tax Act. Extends the tax credit for affordable housing donations until December 31, 2026. Amends the Illinois Housing Development Act. Provides that the amount of tax credits reserved by the administrative housing agency for an approved project under the affordable housing tax donation credit program is limited to $32,850,352 in State fiscal years 2022 and 2023 and shall be increased by 5% in each fiscal year thereafter. Amends the Property Tax Code. Makes changes concerning the valuation of low-income housing projects that qualify for the Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code. Provides for a reduction in assessed value for affordable rental housing construction or rehabilitation.

HB 34 - Amends the Illinois Enterprise Zone Act. In a Section concerning eligibility for an Enterprise Zone based on the local labor market area, provides that the Department of Commerce and Economic Opportunity may consider information released in the most recent American Community Survey (currently, the federal decennial census only). Provides that the Department of Commerce and Economic Opportunity may award partial points if the applicant demonstrates specific job creation and investment below specified thresholds. Contains provisions concerning provisional certification and provisional decertification. Provides that, for Enterprise Zones that are scheduled to expire on or after January 1, 2024, an application process shall begin 5 years prior to the year in which the Zone expires. Provides that the Department of Commerce and Economic Opportunity may consider written comments or any other information regarding a pending Enterprise Zone application submitted after the deadline and received prior to the decision on all pending applications. Makes changes concerning the total number of Enterprise Zones that may be certified. Adds requirements concerning provisional certification and decertification of enterprise zones. Provides for the suspension of the benefits to specific businesses rather than an outright decertification of the particular Enterprise Zone for failure to submit specified information. 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 3174 - Amends the Illinois Enterprise Zone Act. Amends high impact business provisions dealing with wind power generation.

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

SB 1690 - 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. Amends the State Finance Act to make a conforming change. Repeals the Illinois Small Business Incubator Article within the Build Illinois Act.

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

The June 11 edition of the Illinois Register does not contain any proposed or adopted rulemakings by the Department of Commerce and Economic Opportunity or the Department of Revenue.

No tax-related cases this week.

In case you haven't seen it ProPublica issued a "report" in recent days that is based on federal income tax return information that was illegally obtained by someone and released to ProPublica.

The gist of the ProPublica article is that a number of U.S. billionaires are not paying enough personal income taxes, because the Internal Revenue Code doesn't tax these persons on their "increases" in wealth - the annual increases in the value of their assets - they are taxed "only" on their income.

The authors of the article reach this conclusion by taking the amount of income taxes paid by this group of billionaires and comparing that amount to the supposed increases in wealth of each individual for a tax year. The figures that they use for calculating "increases" in wealth are taken from the annual list compiled by Forbes of the richest individuals - a notoriously inaccurate estimate.

Why do spend I spend so much time on this article? As you will recall, there was legislation proposed in the Illinois General Assembly this year that if enacted, would impose tax on high net worth taxpayers based on a "mark-to-market" concept. In other words, taxpayers would be required to pay income taxes based on unrealized increases in the value of their assets measured on December 31 of each year. The legislation didn't move, but articles like this will fuel the passion of the proponents of this type of legislation. It is necessary to understand the flawed reasoning in the ProPublica article in order to rebut it.

The Assessor announced that the Assessor's offices reopen on Monday June 14, by appointment only.

The Illinois Chamber is returning to its traditional Annual Luncheon & Reception format with its September 30^th get together at the Palmer House in Chicago. This year’s Keynote Speaker is Holly Sullivan, VP of Worldwide Economic Development, Amazon.