December 18, 2009—Issue 33

Governor Signs Bill Repealing Partnership Deduction BIMP Provision

A provision in the BIMP bill (SB 1912:  P.A. 96-0045) provided for the elimination of the partnership deduction from the personal property replacement tax (“PPRT”) for “reasonable compensation,” thereby increasing partnership taxes.  HB 2239 repeals the BIMP provision.  On December 16, the Governor signed the bill, which became P.A. 96-0835.  HB 2239 may be accessed at the following link:  click here.

Governor Signs EDGE Credit Bills

The Governor recently signed two EDGE credit bills:

• HB 1526 (Rep. Lou Lang & Sen. Lou Viverito)—EDGE Credit to Pay Withholding Tax Liability:  HB 1526 allows certain motor vehicle manufacturers to claim the EDGE credit as an offset to their withholding tax liability.  On December 14, the Governor signed the bill, which became P.A. 96-0834.  HB 1526 may be accessed at the following link:  click here.   
• HB 2414 (Rep. Will Burns & Sen. Kwame Raoul)—EDGE Credit Treated as a Tax Payment:  HB 2414 allows a pass-through entity to use the EDGE credit to pay tax liability rather than reduce it.  On December 16, the Governor signed the bill, which became P.A. 96-0836.  HB 2414 may be accessed at the following link:  click here.

Illinois State Budget & Property Tax Pocket Guides

The Illinois Tax Foundation, the research-focused sister organization to TFI, has released two new pocket guides regarding (1) the State budget and (2) Illinois property taxes.  Paper copies of the pocket guides may be obtained by contacting Kellie Cookson by phone (217-522-6818) or by E-Mail (kellie@iltaxwatch.org).  Electronic copies of the pocket guides may be accessed at the following links:    

 Happy Holidays!