Illinois governor Pritzker proposes new company taxes to fill the void

0
61
Illinois governor Pritzker proposes new corporate taxes to fill the void

Corporations, especially large corporations, will face $ 932 million in proposed higher levies – or “closing corporate loopholes” as the Democratic governor and his advisors put it. And that number could grow.

On the block is the net operating loss allowance, which would be capped at $ 100,000 per year and would bring in an estimated $ 314 million for the fiscal year beginning in July. Align the tax treatment of foreign-sourced dividends, which many large corporations earn, with the tax rate on domestic dividends, estimated at $ 107 million; and withdrawal of the accelerated depreciation clause on companies valued at $ 214 million per year.

Officials said all three were merely reversing tax law changes that former Republican President Donald Trump pushed through in 2017 because of near-unanimous Democratic opposition. The proposed changes effectively roll back those changes as they affect state taxes.

Also planned is a planned acceleration of the exemptions for the use of biodiesel fuel by USD 107 million. a sales tax credit that manufacturers receive for purchases of non-machine items; and $ 30 million in corporate income tax, which has been repealed but which Pritzker plans to reintroduce.

In one particularly noteworthy move, Pritzker suggests capping the fee retailers receive for collecting state sales taxes to $ 1,000 per month. This would exclude many small businesses but would affect large chains. And he wants the state’s tax credit on private school grants back to 40 percent, down from 70 percent.

The Corporations tab could continue to grow – hundreds of millions more – if the governor manages to revive his bill to break away from a provision in the latest federal COVID relief bill that allows corporations to turn losses now with profits offset in the past and thereby receive tax refunds.