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

Vice-Chairperson Michael Zalewski – D  217-782-5280

Republican Spokesperson David Harris – R 217-782-3739

Barbara Flynn Currie – D 217-782-8121

Marcus Evans, Jr. – D 217-782-8272

Christian Mitchell – D 217-782-2023

Robert Rita – D 217-558-1000

Elgie Sims, Jr. – D 217-782-6476

Joe Sosnowski – R 217-782-0548

Brian Stewart – R 217-782-8186

Ed Sullivan – R 217-782-3696

Michael Tryon – R 217-782-0432

Arthur Turner – D 217-782-8116