Bill Text: IL HB2331 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a credit for financial institutions with less than $50,000,000,000 in assets in an amount equal to the aggregate amount of all fees, penalties, and any other income derived during the taxable year from each commercial loan transaction that is (i) less than $5,000,000, (ii) originated by the financial institution, (iii) made to a person residing or located in this State, and (iv) made primarily for a business or agricultural project in this State. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2331 Detail]

Download: Illinois-2023-HB2331-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2331 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates a credit for financial institutions with less than $50,000,000,000 in assets in an amount equal to the aggregate amount of all fees, penalties, and any other income derived during the taxable year from each commercial loan transaction that is (i) less than $5,000,000, (ii) originated by the financial institution, (iii) made to a person residing or located in this State, and (iv) made primarily for a business or agricultural project in this State. Effective immediately.
LRB103 25194 HLH 51535 b
A BILL FOR
HB2331 LRB103 25194 HLH 51535 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Financial institutions.
(a) For tax years ending after July 1, 2023, a financial
institution with less than $50,000,000,000 in assets at the
close of the preceding tax year shall be allowed a credit
against the tax imposed by subsections (a) and (b) of Section
201 in an amount equal to the aggregate amount of all fees,
penalties, and any other income derived during the taxable
year from each commercial loan transaction that is (i) less
than $5,000,000, (ii) originated by the financial institution,
(iii) made to a person residing or located in this State, and
(iv) made primarily for a business or agricultural project in
this State.
(b) For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this subsection to be determined in accordance

HB2331 - 2 - LRB103 25194 HLH 51535 b
with the determination of income and distributive share of
income under Sections 702 and 704 and subchapter S of the
Internal Revenue Code.
(c) As used in this Section, "financial institution" means
a partnership, association, limited liability company, or
corporation doing business under and as permitted by any law
of this State or of the United States relating to banks,
savings and loan associations, or savings banks.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.