SB0146 amends the Illinois Income Tax Act to create a new income tax credit for qualifying small businesses that pay property taxes on eligible real property used in their business operations. For taxable years ending on or after December 31, 2025 and on or before December 31, 2029, the credit equals the lesser of 10% of property taxes paid or $1,500. The credit applies against Illinois income taxes imposed on individuals and businesses under Section 201 and may be carried forward for up to five years if it exceeds the taxpayer’s liability.
The bill defines a “qualified small business” as a business entity operating in Illinois with fewer than 50 employees in the state during the taxable year and that is current on state and federal tax obligations. Eligible property must be located in Illinois, used for business operations, and not residential. The credit can pass through to partners and S corporation shareholders, and the bill states that it takes effect immediately.
Impact
SB0146 would add a new Section 246 to the Illinois Income Tax Act, creating a temporary small business property tax relief credit for tax years 2025 through 2029. It would reduce income tax liability for eligible small businesses that own, lease, or otherwise have a qualifying interest in nonresidential business property on which they pay Illinois property taxes. The measure would also affect pass-through entities by allowing the credit to flow to partners and shareholders, and it would permit unused credits to be carried forward for five years.
Sentiment
The available record shows no committee transcripts or recorded votes, so there is no documented debate or formal opposition in the materials provided. Based on the bill text and caption, the measure appears to be framed as targeted tax relief for small businesses, suggesting a generally supportive policy intent. However, without hearing records or vote history, the level of legislative support or concern cannot be determined from the provided context.
Contention
The main policy issues likely concern the scope and cost of the credit, including whether the benefit is large enough to meaningfully offset property tax burdens and whether the eligibility cutoff of fewer than 50 employees is the right threshold. Another possible point of contention is the exclusion of residential property and the requirement that taxpayers be current on all state and federal tax obligations, which narrows eligibility. Because no transcripts or votes are available, no specific lawmakers or stakeholder groups are identified as holding these positions in the provided materials.