SB1832 Summary

• Extends the research and development tax credit application period from taxable years ending prior to January 1, 2027 to January 1, 2037 (10-year extension).

• Increases the research and development credit rate for qualifying quantum information science expenditures from 6.5% to 13% of qualifying expenditures for increasing research activities in Illinois.

• Allows qualified startup taxpayers to elect to claim the research and development credit against their obligation to pay withholding taxes under Section 704A instead of claiming it against income tax liability.

• Defines "qualified startup taxpayer" as a business entity incorporated or organized no more than 5 years before the taxable year in which credit is sought, with no prior Illinois income tax liability, and allows 90% refund of excess credits related to quantum information science expenditures.

• Takes effect immediately upon becoming law.