HB4246 Summary

• Amends the Illinois Income Tax Act to create a deduction for 100% of the income of a "qualified new business" for taxable years beginning on or after January 1, 2025 and before January 1, 2026.

• Defines "qualified new business" as a business that has its principal place of business in Illinois and first begins operating in the State during the taxable year.

• Applies to sole proprietorships and single-member limited liability companies (disregarded entities) where the owner/member qualifies as a new business entity.

• Exempts the deduction from Section 250 limitations and requires the business to be entirely new to the state during the specified taxable year.