Business Taxes
Gov. Pritzker Signs FY22 State Budget into Law
Governor JB Pritzker has signed Senate Bill 2017, the FY22 Budget Implementation Act, as well as the certification of the General Assembly’s concurrence on Senate Bill 2800, the state’s spending plan.
“By signing the state budget today, Illinois is taking a giant step forward, toward true fiscal stability,” said Governor JB Pritzker. “We balanced the 2022 fiscal year budget independent of the American Rescue Plan, by working together with tireless lawmakers who went up against the challenges of a global pandemic and passed a budget that meets the moment. Together, we are putting Illinois on the right track.”
Notable changes to the Illinois tax law include:
- Corporate net operating loss deductions will be limited to $100,000 annually. This applies to C corporations only (i.e. the net loss deduction for S Corporations and Partnerships will not be limited). Effective for taxable years ending on or after December 31, 2021 and before December 31, 2024.
- Taxpayers who claim the 100% federal bonus depreciation deduction will be required to add the deduction back into income for Illinois tax purposes. A subtraction will be allowed equal to the deprecation deduction that would have been allowed if the taxpayer elected out of bonus depreciation. Effective for taxable years ending on or after December 31, 2021.
- Decouples from the federal corporate deductions for GILTI related to certain foreign sourced dividends. Effective for taxable years ending on or after June 30, 2021.
- Eliminates the planned phaseout of the state franchise tax which was set to expire on 1/1/24
For more details about the FY22 State Budget, view the full press release.
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