HB3062 Summary: Small Business Asset Purchase Account

• Creates a new income tax deduction allowing taxpayers to deduct up to $50,000 per tax year contributed to a small business asset purchase account, plus all interest earned on such accounts, for tax years beginning on or after January 1, 2020.

• Defines a "small business asset purchase account" as an account established by a taxpayer whose proceeds are used to purchase property used primarily in Illinois for which a federal income tax deduction is claimed under Internal Revenue Code Section 179.

• Provides an addition modification (adjustment increasing taxable income) for amounts withdrawn from a small business asset purchase account that are not used for qualified Section 179 property purchases.

• Establishes a 10% penalty under the Uniform Penalty and Interest Act for improper use of account proceeds, including withdrawals used for property not qualifying for Section 179 deductions or property not used predominately in Illinois.

• Applies to individuals, corporations, trusts, estates, and partnerships, with conforming amendments made across all taxpayer classifications in the Illinois Income Tax Act.