Illinois Increases Income Tax Rates, Suspends NOLs, and Makes Other Tax Changes
(Jan. 19, 2011)
Illinois Governor Pat Quinn signed the Taxpayer Accountability and Budget Stabilization Act on Jan. 13, 2011, impacting a number of Illinois state tax provisions.
Highlights of the act include:
- The corporate tax rate increased from 7.3 percent to 9.5 percent for income earned on or after Jan. 1, 2011. Special rules apply to corporate taxpayers whose fiscal year includes Jan. 1, 2011;
- The use of corporate net operating losses (NOLs) is suspended for tax years ending after Dec. 31, 2010, and prior to Dec. 31, 2014;
- Individual income tax rates increased from 3 percent to 5 percent as of Jan. 1, 2011;
- Corporations and individuals will need to pay 150 percent of the prior year’s tax or 90 percent of the current year’s tax to avoid underpayment penalty for estimated payments due after Jan. 31, 2011, and prior to Feb. 1, 2012; and
- The Illinois Estate and Generation-Skipping Transfer Tax was reinstated for individuals dying in 2011 and later years.
For more information on how this might affect you, please contact Shawn Kane at 630.586.5250 or email@example.com, or any Crowe Horwath LLP tax professional.
Under U.S. Treasury rules issued in 2005, we must inform you that any advice in this communication to you was not intended or written to be used, and cannot be used, to avoid any government penalties that may be imposed on a taxpayer.