SB3401 Summary

• Amends the Economic Development for a Growing Economy Tax Credit Act to expand withholding tax credit eligibility from specific manufacturing industries to any taxpayer awarded a credit under the Act, effective immediately upon enactment.

• Allows any taxpayer receiving a credit award to elect to claim the credit against withholding tax obligations under Section 704A of the Illinois Income Tax Act, rather than only against income tax liabilities.

• Adds three new categories of eligible taxpayers with specific criteria: discount department store operators with Illinois headquarters and 4,250+ employees; filtration parts manufacturers relocating headquarters to Illinois with 1,000+ employees; and tire/inner tube manufacturers with 2,400+ employees.

• Permits the withholding tax election to be made in the calendar year following the taxable year in which the credit is awarded, with elections being irrevocable once made.

• For certain taxpayers meeting specific historical criteria, prohibits amendment of existing agreements with the Department once they elect to claim credits against withholdings.