IL SB2188

Creates a new income tax credit for financial institutions with less than $50 billion in assets, equal to all fees, penalties, and other income derived from qualifying commercial loans during the taxable year

Qualifying loans must meet four criteria: (1) less than $5 million in value, (2) originated by the financial institution, (3) made to a person residing or located in Illinois, and (4) made primarily for a business or agricultural project in Illinois

Defines "financial institution" as partnerships, associations, limited liability companies, or corporations operating under state or federal banking laws, including banks, savings and loan associations, and savings banks

For partnerships or Subchapter S corporations, the credit passes through to partners or shareholders according to existing provisions

Takes effect immediately upon becoming law, applying to tax years ending after July 1, 2025