HB3234 Summary

• Creates a tax credit for financial institutions with less than $50 billion in assets for tax years ending after July 1, 2019.

• Credit equals the aggregate amount of all fees, penalties, and other income derived from commercial loans under $5 million that are originated by the institution and made to persons/businesses in Illinois.

• Applies only to loans made primarily for business or agricultural projects located in the State of Illinois.

• Allows pass-through entities (partnerships, S corporations, LLCs) to allocate the credit to their owners based on distributive share of income.

• Exempts this credit from the provisions of Section 250 of the Illinois Income Tax Act.