It’s been since January 15, 2015, that Rep. William Davis of East Hazel Crest introduced HB293, a complete change in the income tax. And now, during this veto session, it is under consideration. The amendment to HB293, a 581 page, killer of business, was filed last Thursday, 11/10/16; another amendment is anticipated.
To recap, HB293 is a shell bill that as filed, only makes a non-substantive change to the Illinois Income Tax Act Section 250. The killer amendment is a series of anti-business amendments to the Illinois Income Tax Act and the sales and excise tax act that would raise the tax of employers by more than $2.5 billion.
Here are some of the specific changes:
Increase in Corporate Income Tax from the current 5.25% rate to 6%
Elimination of the Manufacturing Machinery & Equipment Exemption
Eliminates the Rolling Stock Exemption
Eliminates the remaining carry forward amounts of the expired research and development credit
Eliminates the foreign and domestic dividend subtractions
Eliminates the charity care credit for for-profit hospitals
Eliminates the lower amount of tax imposed on gasohol
Eliminates the sales factor apportionment adjustment for federally-regulated exchanges (“CME legislation”)
Eliminates Enterprise Zones – no new or extensions of existing zones
Eliminates EDGE Credits
Eliminates the unitary business non-combination rule,
Eliminates the Water’s Edge Credit
Eliminates Rail Carrier sales tax exemption
Modifies the apportionment of income by airlines, includes “tax haven” legislation
Modifies the distribution of income tax receipts to local governments
Repeals the Estate Tax, dropping the exclusion amount to $2 million from $4 million
Requires an add back of the federal Domestic Production Activities Deduction (IRC Section 199)
Reduces the vendor discounts under the retailers occupation tax, cigarette tax, hotel operators tax, motor fuel tax, liquor tax and telecommunications excise tax
Returns income apportionment to a three factor formula with a double-weighted sales factor
Changes the definition of United States.
The House Revenue and Finance Committee considered this amendment but did not take a vote. Chamber630 asks businesses to contact Committee members as soon as possible to oppose the HB293 Amendment. Contact information is as follows:
Chairperson John Bradley – D 217-782-1051 repjohnbradley@mychoice.net
Vice-Chairperson Michael Zalewski – D 217-782-5280 info@repmikezalewski.org
Republican Spokesperson David Harris – R 217-782-3739 repharris@yahoo.com
Barbara Flynn Currie – D 217-782-8121
Marcus Evans, Jr. – D 217-782-8272 repevans33@gmail.com
Christian Mitchell – D 217-782-2023 mitchelldistrict26@att.net
Robert Rita – D 217-558-1000
Elgie Sims, Jr. – D 217-782-6476 repsims34@gmail.com
Joe Sosnowski – R 217-782-0548
Brian Stewart – R 217-782-8186 repstewart@gmail.com
Ed Sullivan – R 217-782-3696 sullivan@ilhousegop.org
Michael Tryon – R 217-782-0432 tryon@ilhousegop.org
Arthur Turner – D 217-782-8116 arthurt@ilga.gov
