HB2237 Summary

• Amends the definition of "investment partnership" under the Illinois Income Tax Act to allow dealers in qualifying investment securities to be considered investment partnerships, effective for tax years ending on or after January 1, 2023.

• Expands the definition of "qualifying investment securities" to include partnership interests that qualify as securities under the federal Securities Act of 1933 (15 U.S.C. § 77b(a)(1)), effective for tax years ending on or after January 1, 2023.

• Modifies the 90% gross income test for investment partnerships to include the distributive share of partnership income from lower-tier partnership interests that meet the definition of qualifying investment securities, while excluding income from partnerships operating at a federal taxable loss.

• Maintains the existing 90% asset cost requirement and adds clarifying language that partnership interests in other investment partnerships continue to qualify as qualifying investment securities.

• Takes effect immediately upon becoming law.