HB3971 Summary

• Amends the Illinois Income Tax Act to make the research and development credit permanent by removing the previous expiration date of January 1, 2016.

• The research and development credit allows taxpayers a credit equal to 6.5% of qualifying expenditures for increasing research activities conducted in Illinois.

• Credit applies to tax years ending after July 1, 1990 and prior to December 31, 2003, and beginning again for all tax years ending on or after December 31, 2004 with no end date.

• Unused research and development credits may be carried forward for up to 5 taxable years until fully used.

• Takes effect immediately upon becoming law.