IL HB3571

Creates a "Small Business Bonus Investment Credit" equal to 1% of expenses claimed as federal income tax deductions under Internal Revenue Code Section 179, applicable to tax years beginning January 1, 2019 and later.

Credit may be carried forward for up to 5 taxable years if it exceeds tax liability in the year earned, with earlier-year credits applied first.

Allows taxpayers to sell, assign, or transfer the credit; original taxpayer remains liable to the Department if audit reduces credit amount, but purchasers/assignees are not responsible for additional taxes.

Caps total credits awarded statewide at $45,000,000 per calendar year; if claims exceed cap, Department reduces credits pro-rata by March 1 of following year.

Taxpayers have 60 days to pay additional taxes resulting from credit reduction without penalty or interest accrual under the Uniform Penalty and Interest Act.