As of today, no session days have been scheduled. Discussion continues to center on SB 1, the education funding bill. The bill is currently being held by a procedure motion in the Senate that is preventing it from being sent to the governor. As a reminder, there was a poison pill inserted in the budget bill that passed in the beginning of July that would require SB 1 to be signed into law in order for K-12 education to get their full fiscal year appropriation. As noted in the press, the Governor has expressed his intention to amendatorily veto SB 1 when the bill reaches his desk, due to the pension relief language that was inserted in the bill at the behest of the City of Chicago.
Today during a press conference, Gov. Rauner stated that if legislators did not send SB 1 to his desk by noon Monday that a special session would be called immediately.
Given that the legislature is expected to come back to take up education, the Chamber will be advocating for two specific proposals during the “education funding reform special session.” One, urge the Senate to take up the EDGE credit reform bill (HB 162). As you may recall, HB 162 is agreed language that would provide for an extension and reinstatement of the EDGE program that contains many key components of the Chamber’s own EDGE legislation including a training expense credit, bonuses for distressed communities, and retention benefits.
Due to the expiration of the EDGE credit, the state currently does not have any major job credit available. The bill previously passed out of the House 102-5-0. It is currently on 3rd (final) reading in the Senate.
The Chamber is also looking to work with members and other interested parties on legislation to minimize financial reporting impact of the enactment of the permanent tax rate increase.
Companies are required to record deferred tax liabilities for financial reporting purposes under general accepted accounting principles. Tax law changes, such as the enactment of a permanent tax rate increase, mandate a recalculation of deferred tax liabilities (future tax liabilities recorded on the company’s books). When a state increases the statutory income tax rate, a company is required for financial statement purposes to restate existing deferred tax liabilities at the higher rate. Such an increase in deferred tax liability requires companies to recognize an expense to the income statement in the quarter the rate change is enacted. The recognition of these additional expenses will impact a company’s overall financial performance, which in turn could affect its stock price.
The Chamber is proposing an amendment to Section 203 of the Illinois Income Tax Act to establish a subtraction modification (deduction) that would offset the adverse impact of a permanent tax rate increase on the financial statements of publicly traded companies. Given the third quarter is set to end September 30, a legislative fix is needed by then.
If you belong to a publicly traded company or represent publicly traded companies and would like to receive updates or more information, please email Tyler Diers at email@example.com
CSBS LAUNCHES FINTECH ADVISORY PANEL
The Council of State Bank Supervisors (CSBS) is seeking representatives from the financial technology sector who wish to serve on a new advisory panel with state regulators. Beginning today, representatives can express their desire to serve on the CSBS Fintech Industry Advisory Panel by logging onto an online portal and providing a statement of interest along with basic information about their company. CSBS will keep the portal open until Friday, July 28th. Final Panel members will be determined after a short review by state regulators.
REGISTRATION IS OPEN FOR CHAMBER GOLF OUTING
It’s time again to start thinking about your foursome for the Illinois Chamber’s annual golf outing at the Rail Golf Course in Springfield! As always, your attendance includes food, beverages, raffle prizes and SWAG (stuff we all get!).