103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0341

 

Introduced 2/2/2023, by Sen. Paul Faraci

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates a credit for financial institutions with less than $50,000,000,000 in assets in an amount equal to the aggregate amount of all fees, penalties, and any other income derived during the taxable year from each commercial loan transaction that is (i) less than $5,000,000, (ii) originated by the financial institution, (iii) made to a person residing or located in this State, and (iv) made primarily for a business or agricultural project in this State. Effective immediately.


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A BILL FOR

 

SB0341LRB103 25195 HLH 51536 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Financial institutions.
8    (a) For tax years ending after July 1, 2023, a financial
9institution with less than $50,000,000,000 in assets at the
10close of the preceding tax year shall be allowed a credit
11against the tax imposed by subsections (a) and (b) of Section
12201 in an amount equal to the aggregate amount of all fees,
13penalties, and any other income derived during the taxable
14year from each commercial loan transaction that is (i) less
15than $5,000,000, (ii) originated by the financial institution,
16(iii) made to a person residing or located in this State, and
17(iv) made primarily for a business or agricultural project in
18this State.
19    (b) For partners, shareholders of subchapter S
20corporations, and owners of limited liability companies, if
21the liability company is treated as a partnership for purposes
22of federal and State income taxation, there shall be allowed a
23credit under this subsection to be determined in accordance

 

 

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1with the determination of income and distributive share of
2income under Sections 702 and 704 and subchapter S of the
3Internal Revenue Code.
4    (c) As used in this Section, "financial institution" means
5a partnership, association, limited liability company, or
6corporation doing business under and as permitted by any law
7of this State or of the United States relating to banks,
8savings and loan associations, or savings banks.
9    (d) This Section is exempt from the provisions of Section
10250.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.