SB3460 Summary

• Amends the Illinois Income Tax Act to provide a tax incentive for new businesses by exempting them from personal property replacement income tax for the year they begin doing business in Illinois and the 2 immediately following taxable years.

• After the 3-year exemption period, the personal property replacement income tax increases gradually by 0.5% per year until the full statutory rates are reached.

• The gradual phase-in applies to taxes imposed under subsections (c) and (d) of Section 201, which govern the personal property tax replacement income tax on corporations, partnerships, and trusts.

• The provision is effective for taxable years ending on or after December 31, 2012.

• This subsection is exempt from Section 250 provisions, meaning the tax reduction cannot be overridden by other statutory provisions.