SB0511 Summary

• Amends the Illinois Income Tax Act to modify the research and development (R&D) credit calculation by reducing the base period threshold from 100% to 50% of average qualifying expenditures for taxable years ending on or after December 31, 2021.

• Makes the research and development credit permanent on an ongoing basis rather than subject to expiration dates.

• Increases the R&D credit by lowering the hurdle for what qualifies as "increasing research activities," making it easier for taxpayers to claim the credit when research expenditures exceed the reduced base period amount.

• Becomes effective immediately upon enactment.