SB2209 Summary

• Increases the research and development tax credit from 6.5% to 10% of qualifying expenditures for taxable years beginning on or after January 1, 2014.

• Removes the January 1, 2016 expiration date, allowing the credit to continue indefinitely beyond that date.

• Allows excess research and development credits to be refunded to taxpayers rather than only carried forward, with refunds exempt from means-tested benefit program calculations.

• Provides an alternative election for taxpayers to claim 20% of the federal research credit (Section 41 of the Internal Revenue Code) multiplied by Illinois's apportioned share of qualifying research expenditures.

• All provisions take effect immediately upon enactment.