HB5228 Summary

• Amends the Illinois Income Tax Act to require taxpayers to exclude income or loss from trades or businesses conducted both within and outside Illinois, as well as income from pass-through entities conducting multi-state business, to the extent such income is not derived from or connected with Illinois sources.

• Modifies the calculation of "base income" for individuals, corporations, trusts, estates, and partnerships by adjusting federal adjusted gross income to account for apportionment under Article 3 of the Act.

• Applies to all taxpayers with business activities spanning multiple states, ensuring that only income connected to Illinois operations is subject to state income taxation.

• Effective for taxable years beginning on or after January 1, 2023.

• Takes effect immediately upon becoming law.