SB1328 Summary

• Creates a small business bonus investment credit equal to 1% of expenses claimed as federal Section 179 income tax deductions, applicable to tax years beginning January 1, 2019 or later.

• Allows partnerships and S-corporations to pass the credit through to partners and shareholders; permits sale, assignment, or transfer of the credit.

• Caps total credits awarded at $30,000,000 per calendar year, with pro rata reductions if claims exceed the cap; Department must determine total claims by March 1 following the calendar year.

• Allows excess credits to carry forward up to 5 years and exempts the credit from the sunset provision in Section 250 of the Illinois Income Tax Act.

• Provides that if a credit is reduced due to exceeding the cap, taxpayers must repay additional taxes within 60 days with no underpayment penalties or interest if paid timely.