IL HB5616

Eliminates franchise tax obligations for domestic and foreign corporations for any taxes due on or after January 1, 2025, with no refunds or proration allowed for taxes split across that date.

Transfers all remaining amounts in the Corporate Franchise Tax Refund Fund to the General Revenue Fund by December 31, 2025.

Modifies statute of limitations provisions to eliminate enforcement actions and court access denials based on nonpayment of franchise taxes beginning January 1, 2025, while maintaining a 7-year limitation period for prior obligations.

Repeals Section 15.35 (domestic corporation franchise taxes), Section 15.65 (foreign corporation franchise taxes), Section 15.90 (statute of limitations), and Section 15.97 (Corporate Franchise Tax Refund Fund) effective January 1, 2026.

Takes effect immediately upon enactment.