The House and Senate returned to Springfield for the second week of the veto session and are scheduled to be in Springfield Tuesday through Thursday.
As you know from the special edition of my newsletter on the 25th, the Governor's package of tax incentives to encourage location of electric vehicle manufacturers and their suppliers in Illinois surfaced in HB 1769. The bill as amended passed the Senate unanimously. The bill passed the House with two no votes.
In the course of the discussions of HB 1769, we worked with the Senate Republican leadership to seek expansion of the legislation to add language that extends the carryforward period for Illinois net losses for all taxpayers under Section 207 of the Illinois Income Tax Act from 12 years to 20 years. I am pleased to report that the effort was successful and I worked with the others to draft the change to Section 207. My recommended language that extends the carryforward period to 20 years for existing net losses, as well as for years going forward beginning with calendar 2021, was included. Here is the language amending Section 207:
"(3) for any taxable year ending on or after December 31, 2003 and prior to December 31, 2021, such loss shall be allowed as a net operating loss carryover to each of the 12 taxable years following the taxable year of such loss, except as provided in subsection (d); and
(4) for any taxable year ending on or after December 31, 2021, and for any net loss incurred in a taxable year prior to a taxable year ending on or after December 31, 2021 for which the statute of limitation for utilization of such net loss has not expired, such loss shall be allowed as a net operating loss carryover to each of the 20 taxable years following the taxable year of such loss, except as provided in subsection (d)."
New legislation was introduced this week.
SB 2951 - Hunter - Amends the Illinois Income Tax Act. Extends the income tax credit for certain hospitals through taxable years ending on or before December 31, 2027 (currently, December 31, 2022). Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the credit for personal property sold to or used by certain hospitals is exempt from the Acts' automatic sunset provisions. Effective immediately.
Rulemaking
I am sending out the newsletter early in the morning of October 29 as the House and Senate wrap up the veto session, so the October 29 edition of the Illinois Register has not yet been published. I'll update you with any pertinent rulemaking from October 29 in next week's newsletter.
Court cases
No new tax-related cases this week.
Tax Tribunal
No new decisions have been posted by the Tribunal this week. No unique issues were raised in the cases filed with the Tribunal this week.
