SB2358 Summary

• Modifies Illinois Income Tax Act to exclude income or loss not derived from or connected with Illinois sources when calculating taxpayer base income for taxable years beginning January 1, 2022 and later.

• Applies the exclusion to income from trades or businesses conducted both within and outside Illinois, as well as pass-through entities conducting multi-state business activities.

• Repeals the foreign tax credit provision in Section 601 for taxable years beginning January 1, 2022 and later, eliminating the ability to credit taxes paid to other states or countries against Illinois income tax liability.

• Determines the portion of income subject to exclusion based on Article 3 apportionment provisions of the Illinois Income Tax Act.

• Takes effect immediately upon becoming law.