IL HB4457

Lowers the research and development tax credit threshold from 100% to 50% of the average qualifying expenditures for the base period, making it easier for businesses to qualify for the credit beginning with tax years ending on or after December 31, 2024.

Makes the research and development credit permanent on a continuous basis for all tax years ending on or after December 31, 2004 through January 1, 2027, and adds an exemption from Section 250 provisions.

Amends the Illinois Income Tax Act Section 201 to adjust how the increase in research and development activities is calculated by changing the baseline comparison from the full average to 50% of the average of qualifying expenditures.

Takes effect immediately upon enactment.