IL HB5527

Amends the Illinois Income Tax Act to increase the research and development tax credit by changing the calculation baseline from 100% to 50% of qualifying expenditures for the base period.

Taxpayers can claim the credit on research activity increases in Illinois that exceed 50% of their base period qualifying expenditures, rather than the current threshold of 100%.

The change effectively makes it easier for businesses to qualify for larger R&D credits by lowering the threshold against which increased research spending is measured.

The bill takes effect immediately upon becoming law.