HB2754 Summary

• Creates an income tax credit for business entities providing commuter benefits to employees, equal to 50% of costs but capped at $100 per employee per month, for taxable years beginning after December 31, 2020.

• Eligible commuter benefits include vanpools meeting specified criteria (minimum 6-person capacity, 80% of annual mileage for employee commute, carrying at least half of seating capacity) or transit instruments providing reduced or free fares on public/private mass transit, taxis, or ride-sharing services.

• Business entities must register with the Department using an Illinois Commuter Tax Credit Registration Form by the last day of the taxable year in which the credit is claimed.

• Credits apply against income taxes under Section 201 or insurance premium taxes under Section 121-2.08 of the Illinois Insurance Code; unused credits cannot be carried forward and total credits cannot exceed tax otherwise payable.

• Extends credit eligibility to partners, S-corporation shareholders, and LLC members (if treated as partnerships for tax purposes), determined according to their distributive income share under federal tax law.