QuickView May 22, 2007

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QuickView – State Legislative UpdateApril 3, 2009

Tuesday, Nov. 29, 2011

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QuickView – State Legislative UpdateDecember 13, 2011

What Two Weeks Can Mean In Springfield –Tax PackageSB 397(Sen. Hutchison/Rep. Bradley) & SB 400 (Sen. Hutchison/Majority Leader Currie)

The Senate returned to the State House today and took action to approve the tax package. The Senate approved SB 397 (Sen. Hutchison/Rep. Bradley), which includes increasing the Estate Tax exemptions and extending the sales tax incentives for ethanol and biodiesel. The Senate approved SB 397 with 44 yes, 9 no, and 0 present votes. IFB supported SB 397.

SB 397 increases the Estate Tax exemption for individuals from $2 million to $3.5 million in 2012 and to $4 million in 2013 and thereafter. The bill also extends the state sales tax incentives for ethanol and biodiesel for an additional five years to 2018. There are many other components of the bill are listed at the end of this edition.

The second bill in the “package”, SB 400 (Sen. Hutchison/Majority Leader Currie), increases the Earned Income Tax Credit and increases the personal income tax deduction and was also approved. SB 400 was approved by the Senate with 48 yes, 4 no, and 0 present votes. IFB has a neutral position on SB 400.

Yesterday the House of Representatives approved SB 397 with 81 yes, 28 no, and 7 present votes and SB 400 with 67 yes, 49 no, and 0 present votes.The bills will now be sent to the Governor and it is expected that he will approve the bills quickly.

As you will recall, a similar package was considered two weeks ago. HB 1883 was a combined bill that passed the Senate with 36 yes, 18 no, and 1 present vote. However, the bill did not fare well in the House, where it was soundly defeated by a vote of 8 yes, 99 no, and 6 present votes. Today’s package contained in SB 397 and SB 400 was similar to the previous package, but they differed in the level of Estate Tax exemptions and a few other minor technical changes.

We would like to thank each and everyone of you for contacting your State Legislator. Your contacts were insturmental in getting the Estate Tax exemption increased and the sales tax incetives for ethanol and biodiesel extended.

We would also like to thank the numerous proponents of SB 397 who worked with in securing the passage of this package.

IFB supportsSB 397 and a neutral position on SB 400. The bills will be sent to the Governor for his action.

Cemetery Act ChangesPass – SB 1830(Majority Leader Currie, Sen. Emil Jones, III)

After passing the House during the last extra Veto Session day, the Senate voted to concur in the amendment to SB 1830 making needed changes to the Cemetery Oversight Act. These changes were the result of continued discussions among the Illinois Dept. of Financial and Professional Regulation (IDFPR) and the cemetery industry. The bill reduces the regulatory burden and provides relief for many small cemeteries throughout Illinois.

Among the numerous changes made by the bill, it providesa complete exemption from the Act for cemeteries that are family or religious burying grounds; have not had an internment, inurnment, or entombment in 10 years; or are less than three acres. The bill also providesa limited exemption for a cemetery that has engaged in 25 or fewer interments, inurnments, or entombments of human remains for each of the preceding 2 calendar years; operates as a public cemetery; or operates as a religious cemetery. Among the numerous additional changes to the Cemetery Oversight Act included in the bill is volunteer cemetery managers and customer service employees no longer need to be licensed.

SB 1830 passed the Senate unanimously with 52 yes votes and 0 no votes. The bill will be sent to the Governor for his consideration. IFB supports SB 1830.

Tax Package Details

SB 397:

  • Illinois Estate Tax individual exemption level is increased from $2 million to $3.5 million in 2012 and to $4 million in 2018 and thereafter.
  • The ethanol and biodiesel state sales tax incentive sunsets are extended to December 31, 2013.
  • Independent Tax Tribunal is Created. This will call for the creation of an independent body to take over of the Illinois Department of Revenues administrative duties regarding notices of tax liability, deficiencies on all taxes administered, and revocations of licenses issued by the Illinois Department of Revenue. There are no details on whom or how this new tribunal will operate. Those are to be worked out in subsequent legislation and administrative rule making.
  • Reinstates Net Operating Loss Deduction for tax years ending December 31, 2012 through December 31, 2014, but places a cap on the amount used as a carryforward at $100,000 per year.
  • Amends how the Chicago Mercantile Exchange and other exchanges source their revenue. Revenue is currently sourced at nearly 100% within Illinois. The proposal would require CME to source only a percentage to Illinois phased in over 2 years. CME will be taxed at 63.77% for FY 12 (The FY12 tax change will be late-end weighted so as to un-burden the FY12 budget) and 27.54% for FY 13 and thereafter.
  • Sears Economic Development Area Tax Increment (EDA) is extended and retains the $15 million withholding taxes from its employees for the next 10 years.
  • Live Theater Production Tax Credit Act is Created for pre-Broadway and long-runs shows for Illinois labor and production not to exceed $2 million in the aggregate.
  • Champion Lab Edge Tax Credit is created.
  • Other tax incentives extended for five years:
  • Investment Tax Credit under the Corporate Personal Property Replacement Tax.
  • Illinois Angel Investment Credit program which was designed to offer a tax credit to those who make investments in Illinois’ innovative, qualified new business ventures.
  • Affordable Housing Donation Credit
  • Ex-Felon Tax Credit
  • Veterans Hiring Tax Credit
  • River Edge Redevelopment Zone components and tax credits
  • Miners credit for retailers, manufactures, and coal against the Corporate Personal Property Tax Replacement Tax
  • TECH-PREP credit
  • The bill includes a description of the expected impact to the State budget. The proposal is expected to not exceed $250 million in tax incentives for 2013 which will be offset with the scheduled federal sunset of the bonus deprecation schedule to expire December 31st of this year.

SB 400:

  • Increases the personal exemption levelfrom 5% to 7.5% for the 2013 tax year and to 10% in the 2014 tax year and thereafter.
  • Increases the individual base income tax exemption from $2,000 to $2,050 for the 2013 tax year and then starting in the 2014 tax year the $2,050 will be adjusted for the cost-of-living annually.

Questions

If you have any questions on the items listed in this edition of QuickView or on other state legislative matters please contact us. The State Legislative Team can be reached at (309) 557-2308 or by e-mail at .

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