IL SB3165

Modifies the research and development tax credit under the Illinois Income Tax Act to increase the credit threshold from 100% to 50% of average qualifying expenditures for the base period, effective for tax years ending on or after December 31, 2020.

Makes the research and development credit permanent on a continuing basis for all tax years ending on or after December 31, 2004, removing the prior January 1, 2027 sunset date.

Adds Section 250 exemption language to subsection (k) to ensure the R&D credit is exempt from certain limitation provisions.

Takes effect upon becoming law with changes to Section 201 of the Illinois Income Tax Act regarding qualifying expenditure calculations for R&D tax credit purposes.