SB0341 Summary

• Creates an income 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 derived from commercial loans that are (i) less than $5 million, (ii) originated by the institution, (iii) made to persons in Illinois, and (iv) made for business or agricultural projects in Illinois.

• Partners, S-corporation shareholders, and LLC members who own financial institutions may claim a proportional share of the credit based on their distributive share of income.

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

• Takes effect immediately upon becoming law and is exempt from tax credit limitation provisions.