HB3633 Summary

• Amends Section 304 of the Illinois Income Tax Act to modify how compensation paid to nonresidents is sourced to Illinois for tax liability purposes, effective for tax years ending on or after December 31, 2019.

• Establishes that compensation is paid in Illinois if: (1) some of the individual's service is performed within the state, (2) the service performed in Illinois is nonincidental to service performed outside the state, and (3) the individual performs service in Illinois for more than 30 working days during the tax year.

• Defines "working day" as all days during the tax year in which an individual performs duties for their employer, excluding weekends, vacation, sick days, and holidays.

• Specifies that a working day is spent in Illinois if more time is spent performing duties in the state than outside it on that day (excluding travel time), or if the only service performed that day is traveling to an Illinois destination.

• For tax years ending prior to December 31, 2019, retains the prior standard based on base of operations, place of direction or control, or residence.