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HOT TOPICS |
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BUDGET |
State Operating Budget Reallocation
SB2412
(Sen. Heather Steans,
D-7, Chicago; Speaker Michael Madigan, D-22,
Chicago) reallocates $202 million from
within the existing FY12 State Operating
Budget to keep facilities open until the end of the current budget year. The reallocated money mostly comes from appropriations vetoed by the Governor in the spring.
Status: passed both Chambers and is awaiting action by the Governor.
Read More.
(Illinois Statehouse News)
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TAX |
Take Two: House and Senate Pass Omnibus Tax Bills
The House and Senate were called back to the Capital on December 12
& 13 to consider two bills that provide business and personal tax changes. An omnibus tax bill previously passed the Senate but failed to pass the House, necessitating the extra session days.
Status: SB397 was signed into law by the Governor and is now Public Act 97-0636. The effective date is June 1, 2012 but most sections have dates as to when the changes apply. No gubernatorial action on SB400 has been taken at this time.
Tax Changes for Employers
SB397 / House Amendment 7 (Sen. Toi Hutchinson, D-40, Olympia Fields; Rep. John Bradley, D-117, Marion) creates a tax credit for live theater productions,
and:
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New Markets Development Act (p. 58) extends the program from 2012 to 2017.
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Income Tax Act (p. 60) extends from 2013 to 2018 certain investment tax credits; extends R&D tax credits from 2011to 2016 (p. 85, 94); limits corporations' loss carryover to $100,000 after 2012 (p. 99); increases the earned income tax credit to 7.5% of the federal tax credit (p. 101); includes a formula for tax rate based upon in-state and out-of-state income and other stipulations for federally regulated exchanges (p. 140).
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Economic Development for a Growing Economy Tax Credit Act (p. 186) provides Sears tax break.
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For Use Tax Act (p. 207) extends the sales tax exemption from 2011 to 2016 for food consumed off premises.
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Property Tax Code (p. 289) extends from 2013 to 2018 the abatement for historical properties owned by 501 C-3s.
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Illinois Estate and Generation Skipping Transfer Tax Act (p. 216) sets a scale of exclusion for estates at $2 million for persons dying prior to 2012, $3 million if they die between 2012 and 2013, and $4 million if they die thereafter.
Tax Changes for Personal Income Tax
SB400 / House
Amendment 2 (Sen. James Clayborne, Jr., D-57, Belleville; Rep.
Barbara Flynn Currie, D-25, Chicago)
provides that the earned income tax credit
is (i) 7.5% of the federal tax credit for
each taxable year beginning on or after
January 1, 2012 and ending prior to December
31, 2013, and (ii) 10% of the federal tax
credit for each taxable year beginning on or
after January 1, 2013. Provides that the
standard exemption is (i) $2,050 for taxable
years ending on or after December 31, 2012
and prior to December 31, 2013, and (ii)
$2,050 plus a cost-of-living adjustment for
taxable years ending on or after December
31, 2013.
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GENERAL GOVERNMENT |
Transfer on Death Instrument Comes to Illinois
Public Act 97-555 (Sen. A.J. Wilhemi, D-43, Joliet; Rep. John Bradley, D-117, Marion) creates the Illinois Residential Real Property Transfer on Death Instrument Act, defining the terms and requirements for an owner to transfer residential real estate by a transfer on death instrument. Provides that a transfer on death instrument must include the essential elements and formalities of a deed and be recorded before the owner's death.
The Act will apply to all TODIs executed before January 1, 2012, the effective date of the Act, but only if the owners dies on or after January 12, 2012.
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OTHER NEWS |
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STATE |
Illinois Same-sex Couples can File Joint Tax Returns
Beginning
next year, couples in Illinois that obtained
civil union licenses in 2011 will be able to
file joint state income tax returns. Execution details haven't been finalized, but officials expect that same-sex couples will fill out a joint federal return for the state's use.
Read More.
(Chicago Sun-Times)
Illinois Ranks Low in Study of Best/Worst Run States
In a recent 24/7 Wall St. study, Illinois ranked 49 out of 50 according to how well each state is run. Factors included the state's financial health, standard of living, education system, employment rate, crime rate and how efficiently the state uses its resources to provide government services.
Read More.
(24/7 Wall St.)
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NATIONAL |
IRS Preparer Compliance Initiative
Last month, the IRS sent more than 21,000 letters to selected tax return preparers nationwide to
"remind them of their obligation to prepare accurate tax returns on behalf of their clients." The letters were sent to paid preparers
"who complete large volumes of tax returns." During the 2012 filing season, IRS representatives will visit approximately 2,100 letter recipients
"to further discuss their responsibilities as a return preparer and to verify their compliance with existing return preparer and e-file requirements."
See AICPA Background on
the Initiative.
See IRS FAQs.
Congress Could Help States Collect Online Sales Taxes
Several plans are moving through Congress that would allow states to force online and catalog retailers to collect sales tax on intrastate sales. This spring, Illinois joined the ranks of California, New York, Texas, Tennessee and other states that require any business with a physical presence in the state to collect sales tax.
Read More.
(Illinois Statehouse News)
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CONTACTS |
Marty Green, JD
Vice President,
Government Relations
Jill Loeser
Manager,
Government Relations
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Government
Relations Office
Join the Legislative Contact Program
The Legislative Contact Program is a network of CPAs who seek to represent the profession's views on issues being considered by the legislatures.
Learn More & Join.
Illinois CPAs for Political Action
The CPA PAC serves as a strong collective voice for CPAs and CPA firms and provides a foundation for successful legislative advocacy.
Learn More.
Federal Legislation Resource
The AICPA has launched
The CPA Advocate,
a new resource to help track federal
legislation and regulatory issues of
interest to the CPA profession.
Item of Importance
Fox Valley Chapter Legislative Breakfast
The Fox Valley Chapter hosted a legislative
breakfast on November 17. Legislative
Inspector General Tom Homer was the keynote
speaker. Senate Minority Leader Chris
Radogno, Senators Kirk Dillard, Carole
Pankau, Tom Johnson along with
Representatives Jim Durkin, Michael
Connelly, Mike Fortner, and Linda Chapa
LaVia attended.
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New General Assembly Members
113th District: Fairmont City Police Chief
Scott Penny was selected to replace veteran representative Tom Holbrooke for the 113th House District. Holbrooke who served in the House since 1995 was appointed as the Chair of the Illinois Pollution Control Board.
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Key 2012 Dates
March 20:
General Primary Election
November 6: General Election
House Sessions:
Calendar
Senate Sessions:
Calendar
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Legislative Metrics
Bills Introduced: 7,717
Bills Sent to Governor: 652 (8.45%)
Bills signed by Governor: 624 (8.09%)
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