SB1715 amends the Illinois Income Tax Act to create a new subtraction modification for amounts included in federal gross income because of a basis adjustment to investment credit property under the Internal Revenue Code. In practical terms, the bill would allow taxpayers to deduct from Illinois base income certain income amounts that arise when federal tax rules require a basis adjustment related to investment credit property, thereby reducing the Illinois income tax base for affected taxpayers. The bill is effective immediately.
The measure is narrowly focused on state income tax conformity and does not create a new credit or tax rate change. Instead, it adds a specific deduction to Section 203 of the Illinois Income Tax Act, which governs how Illinois base income is calculated for individuals, corporations, partnerships, and trusts/estates. Because the bill amends the base-income computation, it would affect taxpayers who recognize income from federal basis adjustments tied to investment credit property, while leaving the broader structure of Illinois income taxation unchanged.
Impact
SB1715 would modify Illinois tax law by adding a new subtraction from base income in the Illinois Income Tax Act for income recognized due to a basis adjustment to investment credit property under federal law. This would reduce Illinois taxable income for affected taxpayers and could lower state revenue to the extent the deduction is claimed. The bill amends Section 203, which is the core provision defining base income for individuals, corporations, partnerships, and trusts and estates, so the change would apply within Illinois’s existing income tax conformity framework and would be administered by the Department of Revenue under current rules.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the proposal appears technical and tax-specific rather than ideological, suggesting it is aimed at aligning Illinois treatment with a federal tax consequence. The caption and structure indicate a targeted revenue measure rather than a broad policy change.
Contention
Because there are no transcripts or votes, no specific points of contention are documented in the available record. Potential areas of concern, based on the bill’s substance, would likely center on revenue impact, whether the deduction is narrowly tailored to a small set of taxpayers, and whether Illinois should conform to the federal treatment of basis adjustments for investment credit property. Any opposition would likely come from those concerned about reducing the tax base or creating another special-purpose subtraction in the income tax code.