SB3816 Summary

• Amends the Illinois Income Tax Act to exclude non-Illinois source income from base income calculations for taxpayers engaged in multi-state business operations or pass-through entities.

• Effective for taxable years beginning on or after January 1, 2023, requires taxpayers to subtract the portion of federal adjusted gross income not derived from or connected with Illinois sources when calculating Illinois tax liability.

• Applies to trades or businesses conducted both within and outside Illinois, as well as income from pass-through entities (partnerships, S-corps, etc.) operating in multiple states.

• Takes effect immediately upon becoming law.