HB2893 Summary

• Amends the Business Corporation Act of 1983 to exempt businesses with an average employee head count of 49 or fewer employees from franchise taxes imposed under the Act, effective June 1, 2023.

• Applies the small business exemption to both domestic corporations (Section 15.35) and foreign corporations (Section 15.65) conducting business in Illinois.

• Maintains existing franchise tax exemption thresholds for all businesses through January 1, 2024 ($100,000 liability exemption for 2023-2024 period).

• Small business exemption is permanent, superseding previous sunset provisions in prior versions of the law that were set to expire on specific dates.