IL HB2846

Eliminates Illinois corporate franchise taxes for both domestic and foreign corporations for any taxes due and payable on or after January 1, 2026

Prohibits refunds or proration of franchise taxes based on portions of a corporation's taxable year extending beyond January 1, 2026

Requires all remaining funds in the Corporate Franchise Tax Refund Fund to be transferred to the General Revenue Fund by December 31, 2026

Repeals the franchise tax provisions (Sections 15.35, 15.65, and 15.97 of the Business Corporation Act) on January 1, 2027

Modifies the statute of limitations to prevent collection of franchise taxes, fees, penalties, or interest more than 7 years after the annual report filing date, beginning January 1, 2026