Il 2025 Budget Bill Changes Corporate Income Franchise Tax

Illinois Governor JB Pritzker Signs FY 2025 Budget Bill, Revenue Omnibus Legislation

Key Points

* Illinois Governor JB Pritzker signed the fiscal year 2025 state budget bill and revenue omnibus legislation on June 7, 2024. * The budget and tax bills aim to increase revenue, fund education and infrastructure, and make changes to several existing taxes.

Details

Budget Bill

The fiscal year 2025 budget bill (HB 4951) was signed by Governor Pritzker on June 7, 2024. The budget includes:

* Increased funding for education, infrastructure, and social services * Changes to income tax rates and brackets * Tax credits for businesses

Revenue Omnibus Legislation

The fiscal year 2025 revenue omnibus legislation (House Bill 3081) was also signed by Governor Pritzker on June 7, 2024. The legislation includes:

* Changes to the sales tax rate and exemptions * New taxes on certain services * Increased taxes on tobacco products

Proposed Tax Changes

In his fiscal year 2025 budget, Governor Pritzker outlined a number of proposed tax changes. These changes were not included in the signed legislation and will require further consideration by the legislature:

* Increase the income tax rate for high-income earners * Create a new tax on capital gains * Expand the sales tax to include more services

Significance

The signed budget and tax bills represent a significant investment in Illinois. The changes to the state's tax system are intended to drive revenue, fund important programs, and make the tax system more equitable.