HB0176 Summary

• Reduces Illinois income tax rates effective January 1, 2015: from 5% to 3% for individuals, trusts, and estates; from 7% to 4.8% for corporations.

• Makes corresponding adjustments to tax revenue distributions, including modifications to Local Government Distributive Fund transfers and removal of deposits to the Fund for the Advancement of Education and Commitment to Human Services Fund.

• Requires the Auditor General to post supplemental spending reports on his or her website if state spending exceeds specified limitations, and provides procedures for the Governor to designate spending reserves.

• Repeals sections of the State Finance Act related to tax rate increases (sections 5.786, 5.787, 6z-85, and 6z-86).

• Effective immediately upon becoming law.