What's Happening?
Illinois Governor J.B. Pritzker has signed into law more than a dozen bills, including Senate Bill 1911, which decouples the state's tax code from the federal tax code. This measure, effective immediately, involves several tax-related changes such as decoupling
from federal bonus depreciation for newly constructed non-residential real property and replacing the Global Intangible Low Tax Income tax with Net Controlled Foreign Corporation Tested Income. Additionally, it extends the excess business loss deduction for trusts and the State and Local Tax Deduction. The bill also amends the Film Production Services Tax Credit Act and creates the Statewide Innovation Development and Economy Act. Republicans have expressed concerns that this decoupling could make Illinois less competitive. Other enacted bills include the Public Official Safety and Privacy Act and the establishment of a Task Force on Eliminating Food Deserts within the Illinois Department of Public Health.
Why It's Important?
The enactment of these bills, particularly the decoupling from the federal tax code, could have significant implications for Illinois' economic landscape. By altering how the state aligns with federal tax policies, Illinois may see changes in business investment and economic growth. The decoupling could potentially lead to a more complex tax environment, affecting businesses and individuals who rely on federal tax incentives. The move may also impact the state's competitiveness in attracting new businesses, as suggested by Republican concerns. Additionally, the creation of the Task Force on Eliminating Food Deserts highlights a focus on addressing public health and nutrition issues, which could lead to improved access to healthy food options in underserved areas.
What's Next?
As these legislative changes take effect, stakeholders, including businesses and tax professionals, will need to navigate the new tax landscape in Illinois. The state government may need to provide guidance and resources to help entities comply with the new regulations. The Task Force on Eliminating Food Deserts will likely begin its work to identify and address areas lacking access to nutritious food, potentially leading to policy recommendations or initiatives aimed at improving food security. The impact of these changes on Illinois' economic competitiveness and public health will be closely monitored by policymakers and industry leaders.
