IL SB3152

Creates a "small business asset purchase account" deduction allowing taxpayers to deduct up to $50,000 per tax year in contributions plus interest earned, effective for tax years beginning January 1, 2025.

Defines qualifying accounts as those established to purchase property used primarily in Illinois for which a federal Section 179 income tax deduction is claimed.

Requires taxpayers to add back to income any withdrawals from these accounts not used for qualified property purchases, with such amounts also subject to a 10% penalty for ineligible use.

Establishes a new penalty provision in the Uniform Penalty and Interest Act imposing a 10% penalty on improper use of account proceeds for non-qualifying purchases or out-of-state property.

Applies effective immediately upon enactment for tax years beginning on or after January 1, 2025.