HB 5470 changesDCEO-VARIOUS

What changed

+240 / −31 words · LargeConfidence: high

This bill comprehensively removes numerous obsolete and expired Illinois tax code provisions spanning 1989 through 2027, while simultaneously eliminating the separate Personal Property Tax Replacement Income Tax structure that has existed since 1979. The changes primarily constitute technical cleanup of expired transitional rate provisions from multiple tax rate changes over the past 35 years, removing dozens of historical corporate and individual income tax rate provisions (ranging from 2.5% to 7%) that applied to specific time periods now long past. The most substantive change is the complete elimination of the Personal Property Tax Replacement Income Tax (subsections (c) and (d)), which imposed an additional 2.5% tax on corporate net income and 1.5% on partnerships, trusts, and S corporations. The bill also repeals a specialized surcharge on gaming licensee asset sales (effective 2019-2027), removes state preemption over local electric generation facility taxes, and eliminates various related provisions including foreign insurer rate adjustments and investment credit mechanisms tied to the repealed replacement tax.

Change log

• SECTION 15

  removedhigh confidence

  Repeal of Illinois Power Agency Act amendment concerning home rule preemption

  This section removes a previously enacted amendment to the Illinois Power Agency Act regarding home rule preemption. The removed section was scheduled to be automatically repealed on January 1, 2028. By removing this section from the bill, the underlying statute remains unchanged from its current form.

• SECTION 15 > (a)

  removedhigh confidence

  Repeal of state preemption over electric generation facility taxes and fees

  This section previously prohibited home rule units (such as municipalities and counties) from imposing new taxes or fees specifically related to electricity generation, generation capacity, or emissions from electric generating facilities. The state had reserved this as an exclusive power. By removing this section, local governments may now have authority to impose such taxes or fees, though this depends on other applicable law not shown in this diff.

• SECTION 15 > (g)

  removedhigh confidence

  Constitutional reference removed

  A reference to Section 6 of Article VII of the Illinois Constitution has been deleted. The removal eliminates a citation to the constitutional provision without any replacement text. This appears to be a technical deletion of a standalone constitutional reference.

• SECTION 15 > (b)

  removedhigh confidence