HB2888 Summary

• Reduces the corporate income tax rate from 7% to 5.5% for taxable years beginning on or after January 1, 2021.

• Applies a transition rate of 5.5% to income earned after December 31, 2020 for corporations with taxable years beginning before January 1, 2021 and ending after December 31, 2020.

• Maintains all existing tax credits, surcharges, and other provisions of the Illinois Income Tax Act.

• Takes effect immediately upon becoming law.