SB1905 Summary

• Makes the research and development tax credit permanent on a basis applying to all tax years ending on or after December 31, 2004, removing the previous sunset date of January 1, 2022

• Extends the research and development credit carryforward period from 5 taxable years to 20 taxable years for credits earned on or after the bill's effective date

• Modifies the calculation of qualifying expenditures for the base period by reducing it to 50% of the average qualifying expenditures for tax years ending on or after December 31, 2019 (previously 100% of the average)

• Makes the research and development credit exempt from the provisions of Section 250 of the Illinois Income Tax Act

• Takes effect immediately upon becoming law