“The franchise tax only hits a small handful of mostly mom-and-pop small businesses, doesn’t generate much revenue for the state and keeps other employers from investing in Illinois. It was supposed to be phased out as part of a bipartisan agreement for the Blue Collar Jobs Act in 2019, but Democrats walked back that commitment. Now is the time to eliminate it, as promised, and offer a more welcoming environment to potential job creators.” – State Representative Jeff Keicher.
From the Daily Chronicle: State Rep. Jeff Keicher, R-Sycamore, has filed a bill in Springfield that would eliminate the franchise tax in Illinois.
That bill, HB2846, would amend the Business Corporation Act of 1983 so that domestic and foreign corporations are not required to pay a franchise tax that would be due or payable on or after Jan. 1, 2026.
Keicher said the franchise tax isn’t currently hitting the businesses you’d expect.
“The tax only hits a small handful of mostly mom and pop businesses and the tax doesn’t generate much at all,” Keicher said.
Keicher said he believes “it is the right and fair thing to do.” He said Illinois House Republicans, House Democrats and Illinois Gov. JB Pritzker had a deal in 2019 to eliminate the franchise tax along with the data center incentive, Blue Collar Jobs Act, manufacturer purchase credit, and research and development credit.
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