In late May, TMA members were briefed on manufacturing related actions of the Illinois General Assembly. The update was provided by TMA lobbyist Jay Shattuck, who was joined by Illinois House Minority Leader Jim Durkin.
Just prior to the update, state lawmakers returned home expecting to reconvene to discuss an all-important energy bill expected to include over $600 million in Exelon Corporation subsidies the company says is needed to keep several Exelon nuclear plants from closing.
FY 2022 STATE BUDGET
Controlling party lawmakers chose not to release any information about the proposed FY 2022 State Budget
until 24 hours before the May 31 scheduled adjournment.
The final budget – SB 2800 – was nearly 3100 pages long. Changes that will directly affect TMA members include:
• Restricting the use of corporate net operating losses to $100,000 per year for any taxable year ending on or after December 31, 2021 and prior to December 31, 2024.
• Decoupling from federal tax bonus depreciation (100 percent expensing – Illinois had previously coupled from bonus depreciation of less than 100 percent expensing).
• Eliminating the phase-out of the Franchise Tax
• Requiring an addback for taxable years ending on or after June 30, 2021 of GILTI (the deduction allowed under IRC Section 250(a)(1)(B)(i))) and an amount equal to the deduction allowed under IRC Section 243(e) (certain dividends received from foreign corporations) and IRC Section 245A (deduction for foreign source-portion of dividends received by domestic corporations from specified 10 percent owned foreign corporations).
More on the 2021 Legislative Update
From May/June 2021 TMA News Bulletin