SB0491 Summary

• Amends the Illinois Income Tax Act to modify the research and development (R&D) credit by lowering the threshold for calculating increased research activities from 100% to 50% of the average qualifying expenditures for the base period.

• Makes the research and development credit permanent, applicable to tax years ending on or after December 31, 2004 and prior to January 1, 2027.

• The R&D credit equals 6.5% of qualifying expenditures for increasing research activities conducted in Illinois.

• Allows the credit to be carried forward for up to 5 taxable years if the credit exceeds tax liability in the year earned.

• Takes effect immediately upon becoming law.