SB3724 Summary

• Creates a "small business asset purchase account" allowing taxpayers to deduct up to $50,000 per tax year in contributions plus interest earned for tax years beginning January 1, 2021 and later.

• Accounts must hold proceeds used to purchase property in Illinois for which a federal Section 179 income tax deduction is claimed.

• Withdrawals from accounts not used for qualifying Section 179 property purchases are subject to a 10% penalty under the Uniform Penalty and Interest Act.

• Adds corresponding deduction provisions for individuals, corporations, trusts, estates, and partnerships in the Illinois Income Tax Act (35 ILCS 5/203).

• Effective immediately upon becoming law.