HB0319 Summary

• Reduces the corporate income tax rate to 2.625% for taxable years beginning on or after January 1, 2019, down from the previous 7% rate.

• Creates a transition provision for corporations with tax years beginning before January 1, 2019 and ending after December 31, 2018, applying 7% to pre-2019 income and 2.625% to post-2018 income.

• Amends Section 201 of the Illinois Income Tax Act to establish the new corporate tax rates while maintaining existing individual income tax rates and various tax credits.

• Takes effect immediately upon becoming law.