SB 687

Abstract

Amends the Small Business Job Creation Tax Credit Act. Makes a technical change in a Section concerning the short title. Senate Floor Amendment No. 1 Deletes reference to: 35 ILCS 25/1 Adds reference to: 35 ILCS 5/201 from Ch. 120, par. 2-201 35 ILCS 5/201.1 new 35 ILCS 5/208 from Ch. 120, par. 2-208 35 ILCS 5/229 new 35 ILCS 5/502 from Ch. 120, par. 5-502 35 ILCS 5/901 from Ch. 120, par. 9-901 Replaces everything after the enacting clause. Amends the Illinois Income Tax Act. Sets forth a schedule of income-based tax rates for individuals, trusts, and estates for taxable years beginning on or after January 1, 2021. Provides that, for taxable years beginning on or after January 1, 2021, the tax on corporations shall be imposed at the rate of 7.99% of the taxpayer's net income for the taxable year. Makes changes concerning transfers to the Local Government Distributive Fund to provide that the transfer shall be equal to 10.75% of the amount that would have been generated if the tax had been imposed at the rate of 3% for individuals, trusts, and estates and at the rate of 4.8% for corporations. Creates a child tax credit. Provides that taxpayers who are required to file a federal joint return shall file a joint return with the State. Provides that the income tax credit for property taxes shall be equal to 6% (currently, 5%) of real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer. Effective January 1, 2021, but does not take effect at all unless Senate Joint Resolution Constitutional Amendment No. 1 of the 101st General Assembly is approved by the voters prior to that date. Senate Floor Amendment No. 2 Makes technical changes to the bill as amended by Senate Amendment No. 1 concerning the filing of joint returns. House Floor Amendment No. 1 Makes changes to the engrossed bill to provide that, beginning on February 1, 2021, the monthly transfers from the General Revenue Fund to the Local Government Distributive Fund shall be equal to the sum of (i) 5.32% of the net revenue realized from the tax imposed upon individuals, trusts, and estates during the preceding month and (ii) 6.16% of the net revenue realized from the tax imposed upon corporations during the preceding month (in the engrossed bill, an amount equal to 10.75% of the amount that would have been generated if the taxes had been imposed at the rate of 3% for individuals, trusts, and estates and at the rate of 4.8% for corporations).