103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2656
 
Introduced 1/10/2024, by Sen. Bill Cunningham
 
SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new
 Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.


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A BILL FOR
 
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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4 Section 5. The Illinois Income Tax Act is amended by 
5adding Section 241 as follows:

6 (35 ILCS 5/241 new)
7 Sec. 241. Small business property tax relief credit.
8 (a) For taxable years ending on or after December 31, 
92024, each qualified small business is entitled to a credit 
10against the taxes imposed by subsections (a) and (b) of 
11Section 201 in an amount equal to the lesser of (i) 10% of the 
12property taxes paid by the qualified small business during the 
13taxable year for eligible real property or (ii) $1,500. 
14 (b) In no event shall a credit under this Section reduce 
15the taxpayer's liability to less than zero. If the amount of 
16the credit exceeds the tax liability for the year, the excess 
17may be carried forward and applied to the tax liability of the 
185 taxable years following the excess credit year. The tax 
19credit shall be applied to the earliest year for which there is 
20a tax liability. If there are credits for more than one year 
21that are available to offset a liability, the earlier credit 
22shall be applied first. 
23 (c) If the taxpayer is a partnership or Subchapter S 
 
 
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1corporation, the credit is allowed to pass through to the 
2partners and shareholders as provided in Section 251. 
3 (d) This Section is exempt from the provisions of Section 
4250. 
5 (e) As used in this Section: 
6 "Eligible real property" means property located in 
7Illinois that meets the following criteria: 
8  (1) the taxpayer has an ownership interest in the 
9 property, whether legal, equitable, or as a lessee, and 
10 the taxpayer is liable for the payment of property taxes 
11 on the property; 
12  (2) the property is used to conduct the taxpayer's 
13 business operations; and 
14  (3) the property is not residential. 
15 "Qualified small business" means a sole proprietorship, 
16partnership, corporation, joint venture, association, or 
17cooperative that conducts business in Illinois, employs fewer 
18than 50 employees in the State during the taxable year, and is 
19current with all State and federal tax obligations as of the 
20last day of the taxable year.