SB2293 Summary: Small Business Loan Credit

• Amends the Illinois Income Tax Act to create a new tax credit for financial institutions with less than $50 billion in assets for tax years ending after July 1, 2021.

• Credit equals the aggregate amount of all fees, penalties, and other income derived from commercial loan transactions that are: (i) less than $5 million, (ii) originated by the financial institution, (iii) made to persons residing or located in Illinois, and (iv) made primarily for business or agricultural projects in the state.

• Allows the credit to pass through to partners, shareholders of Subchapter S corporations, and owners of limited liability companies treated as partnerships, determined according to income and distributive share rules.

• Defines "financial institution" as a partnership, association, limited liability company, or corporation doing business under state or federal banking laws relating to banks, savings and loan associations, or savings banks.

• Exempts this credit provision from the sunset provisions of Section 250 of the Illinois Income Tax Act.