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Jul 28, 2021 · Illinois Gov. J.B. Pritzker recently signed the fiscal 2022 budget bill containing significant provisions addressing Illinois income and franchise taxes. These provisions include a temporary limitation of the net operating loss (NOL) carryover deduction to $100,000 per year, a decoupling from 100% bonus depreciation, changes to align domestic ...
- Jamie Yesnowitz
Jamie Yesnowitz, principal serving as the State and Local...
- Jamie Yesnowitz
- Decoupling from 100% Bonus Depreciation Deduction
- $100,000 Nol Limitation
- Foreign Income Deduction Addback & IRC Section 1248 Income
- Elimination of Franchise Tax Repeal
- Extension of Sunset Dates For Credits
Illinois decouples from the 100% federal bonus depreciation for all taxpayers starting with tax years ending on or after Dec. 31, 2021. Under the new depreciation provisions, taxpayers are required to add back the full bonus depreciation and are provided a subtraction for depreciation computed using IRC Sec. 168 as if they elected out of 100% bonus...
C corporations are limited to a $100,000 net operating loss deduction for tax years ending on or after Dec. 31, 2021, and prior to Dec. 31, 2024. The carryforward period for the limitation on utilizing net operating losses will toll in years a taxpayer could have utilized more than $100,000 of net operating loss. However, if a taxpayer has a loss o...
The bill contains several modifications related to foreign income. For taxable years ending on or after June 30, 2021, corporate taxpayers are required to add back the deduction allowed under IRC Sec. 250(a)(1)(B)(i), commonly referred to as the GILTI deduction. Additionally, taxpayers are required to add back federal dividend received deductions u...
Senate Bill 2017 eliminates the phase out of the franchise tax while retaining the current $1,000 tax liability offset (i.e., tax is paid on the excess of a $1,000 liability). Pursuant to Senate Bill 689, passed in the spring of 2019, the Illinois franchise tax was set to gradually phase out starting 2020 with complete elimination for taxes due and...
The following credits that were set to expire after 2021 have been extended to 2026: 1. Angel Investment credit 2. Affordable housing donations credit 3. River Edge Redevelopment Zone credit 4. Live theater production credit
May 10, 2021 · As taxpayers face a May 17 tax filing deadline, Congress is negotiating the possible expansion or elimination of the $10,000 cap on state and local tax deductions — an issue of particular...
On June 1, 2021, the Illinois Legislature approved the state's FY 2022 budget legislation, Senate Bill 2017 ( SB 2017 ), which includes provisions that would modify Illinois's income, franchise and sales/use tax laws and would extend the sunset date for certain credit and incentive provisions.
Jun 7, 2021 · The Illinois bill decouples the state from the federal 100% bonus depreciation deduction. Illinois will now require an addback and future subtraction modification when calculating state taxable income, pursuant to 35 ILCS 5/203 (b) (2) (T) (3).
Mar 11, 2024 · In his FY 2025 budget, Illinois Gov. Pritzker outlined a number of proposed tax changes, including to individual and corporate income taxes, state sales taxes, and sports betting excise taxes.
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What's new in Illinois' FY 2022 budget?
Will Illinois decouple from federal bonus depreciation rules for 2021?
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Does Illinois' budget bill increase personal income tax rates?
Sep 30, 2021 · The following is a summary of some of the more significant changes in Illinois law on state taxation enacted by the Illinois Legislature in its 2021 session. Illinois Enacts SALT Deduction Limit Work-Around for Pass-Through Entity Owners.
