SB2516 Summary

• Makes the research and development tax credit permanent on a statewide basis by removing the expiration date of January 1, 2027.

• Allows Illinois taxpayers to claim a credit equal to 6.5% of qualifying research expenditures that exceed their base period average for increasing research activities conducted in Illinois.

• Credit applies to tax years ending after December 31, 2004, with no end date, enabling continuous availability for businesses investing in research and development.

• Allows unused credits to be carried forward for up to 5 years, with credits earned before December 31, 2003 having different carryforward limitations.

• Applies to individual, corporate, and pass-through entity taxpayers (partners, S-corp shareholders, LLC owners) conducting qualifying research activities in Illinois.