SB1655 Summary: Small Business Asset Purchase Account

• Creates a tax deduction for contributions up to $50,000 per year to a "small business asset purchase account" for tax years beginning January 1, 2020 or later.

• Accounts must be established by taxpayers with proceeds used exclusively to purchase property used primarily in Illinois that qualifies for a federal Section 179 deduction.

• Allows deduction of both contributions and all interest earned on the account during the tax year.

• Imposes a 10% penalty on amounts withdrawn from the account that are not used for qualifying Section 179 property purchases or used for property not primarily located in Illinois.

• Creates an addition modification requiring amounts withdrawn for ineligible uses to be added back to taxable income for Illinois tax purposes.