January 12, 2011
Springfield Round Up
Income Tax Increase Passes
Late last night, the Senate approved the income tax increase proposal earlier passed by the House. The Governor will likely sign the bill today.
The House passed the increase on a 60 – 57 vote.
The Senate passed the increase on a 30-29 vote.
The detail of the bill is as follows:
1. Individual Rate increase from 3% to 5%.
a. Declining to 4% from 2015 thru 2024, and 3.5% after 2024.
2. Corporate Income Tax Rate increase from 4.8% to 7%
a. Declining to 5.6% from 2015 thru 2024, and 4.9% after 2024.
b. Combined corporate income tax rate of 9.5%, with PPRT of 2.5%.
3. Corporate Income Tax –4 year suspension of Net Operating Loss Deduction
a. Applicable for tax years 2011 to 2014.
4. State Spending Cap –
|Fiscal Year||Cap||Increase $ over p/y||Increase % over p/y|
|2013||$37.6 billion||$0.8 billion||2.2%|
|2014||$38.3 billion||$0.7 billion||1.9%|
|2015||$39.1 billion||$0.8 billion||2.1%|
No Vote on Workers’ Compensation Reform
The House did not call for a vote on the workers’ compensation reform legislation before they adjourned the session.
The Chicagoland Chamber along with the other members of the Joint Employers Group, agreed to support the proposed reforms to the workers’ compensation system. The legislation is a result of a series of special public hearings at which representatives of the Joint Employers Group, including the Chamber, testified to the challenging business environment specific to workers’ compensation benefits.
No Vote on Casino Expansion
The House also did not vote on Senate Bill 737, the casino expansion legislation that would have authorized a land-based casino in Chicago.
The expansion legislation, in addition to the Chicago casino, included four additional casinos for Rockford, Danville, the south suburbs and Lake County, as well as authorizing slots at racetracks and expanded gaming spots at existing casinos.
Tenaska’s Taylorville Energy Center Fails
The STOP Coalition successfully held off attempts by Tenaska to gain approval for the Taylorville Energy Center. The authorizing legislation Senate Bill 2485, failed in the Senate last night on a vote of 18 – 33 – 4.
The Chicagoland Chamber joined other business members of the STOP (Stop Tenaska Overpriced Power) Coalition to lobby in opposition to the legislation. Senate Bill 2485 did not address the steep electricity rate increases that would have adversely affecting business and industrial consumers.
Prepared with contributions by Joan Parker, Joan A. Parker Government Affairs, for the Chicagoland Chamber of Commerce
If you have any questions, or for ordinance copies, please contact the Government Relations Division.
GOVERNMENT RELATIONS STAFF
Last Updated on 2011-01-17 12:19:50.664