Synopsis As Introduced Amends the Illinois Procurement Code. Provides that an expatriate corporation shall be considered a non-resident bidder for purposes of the Code. Provides that no business or member of a unitary business group shall submit a bid for or enter into a contract with a State agency under the Code if the business is an expatriate corporation. Defines "expatriate corporation". Amends the Illinois Income Tax Act. Provides that notwithstanding provisions of the Act, any person formed or incorporated in a foreign tax haven may be a member of a unitary business group without regard to where its business activities are conducted. Defines "foreign tax haven". Amends the General Provisions Article of the Illinois Pension Code. Requires the Illinois Investment Policy Board to make its best efforts to identify all expatriate companies and include those companies in the list of restricted companies distributed to each retirement system and the Illinois State Board of Investment.
Fiscal Note (Dept. of Revenue)
This bill would have no impact on State income tax revenue. Since the Illinois Income Tax Act is already a territorial based taxing system, a corporate inversion transaction is not a State Income tax avoidance scheme. Under current law, the Illinois Income Tax Act taxes U.S. companies only on their domestic income derived from Illinois business activities but does not tax foreign income. As a result, the bill does not provide a remedy to any State income tax planning.
Replaces everything after the enacting clause with provisions of the introduced bill with the following changes: Changes references of "expatriate corporation" to "expatriated entity", and makes changes to the definition of "expatriated entity". Removes provisions concerning resident bidders. Includes certain exceptions to the prohibition on expatriated entities submitting bids or entering into contracts with the State. Removes changes to the Illinois Income Tax Act. In provisions amending the Illinois Pension Code, sets forth procedures for retirement systems to adhere to in dealing with expatriated entities. Includes "expatriated entities" in the definition of "restricted companies". Requires certain information to be provided to the State Treasurer. Requires notice to certain restricted companies that it may be subject to shareholder activism. Requires certain information to be provided to the Illinois Investment Policy Board by April 1 of each year (rather than at least annually).