IL SB3227

Modifies the research and development credit calculation by changing the "qualifying expenditures for the base period" from 100% to 50% of the average qualifying expenditures for tax years ending on or after December 31, 2018.

Defines qualifying expenditures using federal Section 41 standards for research activities conducted in Illinois, with the credit equal to 6.5% of qualifying expenditures for increasing research activities.

Allows unused research and development credits to be carried forward for up to 5 taxable years, with earlier credits applied first against tax liability.

Applies to tax years ending after July 1, 1990 through December 31, 2003, and again for tax years ending December 31, 2004 through January 1, 2022.

Takes effect immediately upon becoming law.