IL HB1602

Amends the Illinois Income Tax Act to make the research and development (R&D) tax credit permanent by removing the January 1, 2032 expiration date

The R&D credit equals 6.5% of qualifying expenditures for increasing research activities conducted in Illinois above the taxpayer's base period average

Qualifying expenditures are defined as those allowable under Section 41 of the Internal Revenue Code that are conducted within Illinois

Unused R&D credits may be carried forward and applied against tax liability for up to 5 taxable years following the year the credit was earned

The bill takes effect immediately upon becoming law