IL HB5734

Amends the Illinois Income Tax Act to make the research and development credit permanent, removing the previous expiration date of January 1, 2022.

The credit allows a 6.5% deduction against income tax liability for qualifying research expenditures conducted in Illinois, calculated as the excess of current year expenditures over the average of the previous 3 years.

Unused credits may be carried forward for 5 taxable years or until fully used, with credits earned before December 31, 2003 unable to carry forward beyond that date.

Exempts the research and development credit provision from Section 250 of the Illinois Income Tax Act, providing special legislative protection for this credit.

Effective immediately upon becoming law.