IL SB2325

Amends the Business Corporation Act of 1983 to change penalty and interest rates on franchise taxes: for notices sent on or after January 1, 2026, the rate will match the Illinois Income Tax Act's interest rate, replacing the current 2% per month penalty/interest structure

Modifies the 7-year statute of limitations for franchise tax obligations by removing provisions that allowed the Secretary of State to extend collection when a corporation filed a report but failed to pay the associated tax or filed an incomplete/erroneous report

Clarifies that in statutory mergers, paid-in capital may be calculated using either the sum of merged corporations' paid-in capital or the "aggregation rule method," declaring this change as existing law

Eliminates several outdated provisions including penalty structures for supplemental annual franchise taxes from 1967-1983 and references to the expired 2007-2008 Franchise Tax and License Fee Amnesty Act

Takes effect immediately upon becoming law