HB2331 Summary

• Creates a tax credit for financial institutions with less than $50 billion in assets for tax years ending after July 1, 2023

• Credit equals all fees, penalties, and other income from commercial loans under $5 million that are originated by the institution, made to Illinois residents or businesses, and used primarily for business or agricultural projects in Illinois

• Allows partners, S-corporation shareholders, and LLC owners to claim the credit based on their proportionate distributive share of income under federal tax code sections 702, 704, and subchapter S

• Defines "financial institution" as partnerships, associations, limited liability companies, or corporations operating as banks, savings and loan associations, or savings banks under state or federal law

• Exempts the credit from the provisions of Section 250, taking effect immediately upon enactment