HB4021 Summary: Small Business Asset Purchase Account

• Creates a "small business asset purchase account" allowing taxpayers to deduct up to $50,000 per tax year in contributions plus interest earned on such accounts, effective for tax years beginning January 1, 2021.

• Account proceeds must be used exclusively to purchase property used primarily in Illinois for which a federal Section 179 income tax deduction is claimed in the same tax year as the withdrawal.

• Amounts withdrawn from the account not used for qualifying Section 179 property purchases are subject to an addition modification (taxable income adjustment) and a 10% penalty under the Uniform Penalty and Interest Act.

• Applies to individuals, corporations, trusts, estates, and partnerships filing Illinois income tax returns.

• Takes effect immediately upon becoming law.