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Illinois enacts major tax reform legislation

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IL Salt AlertIn June 2019, Illinois Gov. J.B. Pritzker signed a series of bills providing significant tax reform for many Illinois taxes. These bills include:

  • S.B. 689, which provides a corporate income tax addback for foreign-derived intangible income, gradually repeals the franchise tax, imposes a use tax collection requirement on marketplace facilitators, expands the manufacturing sales tax exemption, enacts various credits and incentives, and provides tax amnesty programs.
  • S.B. 687, which will increase the corporate income tax rate and enact graduated personal income tax rates if voters approve an amendment to the Illinois Constitution.
  • S.B. 690, which makes amendments that include changing the tax collection obligation for remote retailers from use tax to state and local retailers’ occupation tax, providing incentives for data centers, limiting the sales tax trade-in credit, and increasing cigarette taxes.
  • S.B. 1939, which makes changes related to transportation funding such as increasing motor fuel taxes.

Finally, Pritzker is expected to sign legislation that will change the estimated tax requirements and taxation of nonresidents working in the state.

For more details on these important Illinois tax law changes, read our full SALT Alert.