SPRINGFIELD, Ill. (AP) — Illinois lawmakers have sent Gov. Pat Quinn a legislative package designed to cut tax costs for some major companies, business in general and families struggling in the economic downturn. Officials estimate the package is li
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SPRINGFIELD, Ill. (AP) — Illinois lawmakers have sent Gov. Pat Quinn a legislative package designed to cut tax costs for some major companies, business in general and families struggling in the economic downturn. Officials estimate the package is likely to cost Illinois about $330 million in revenues during the second year, when the tax measures are fully in effect. (Their estimates do not include any costs from extending existing credits that are about to expire.)
Here are details of the legislation and their annual cost:
SPECIFIC BUSINESSES(equals)
— Commodities exchanges, like the Chicago Board of Trade, will no longer be taxed on all their business since much of it now involves electronic transactions with no connection to Illinois. $85 million.
— Sears gets a 10-year extension of the "EDGE" tax credit for its headquarters in the Chicago suburbs. $15 million.
— Champion Laboratories gets a 10-year "EDGE" credit for its operations in the Chicago suburbs. $350,000.
— A tax credit for companies mounting major theater productions in Chicago. $2 million total.
GENERAL BUSINESSES(equals)
— Companies will be able to write off more of their losses. $50 million.
— The value of assets exempt from estate taxes doubles to $4 million. $62 million.
— A credit for research and development costs will be extended for five years. $0.
— Various tax breaks for gasohol and other bio-fuels are extended for five years. $0.
— A long list of other tax breaks are extended for five years to give businesses more certainty about Illinois taxes. $0.
INDIVIDUALS(equals)
— The personal exemption — that is, the amount of money exempt from income taxes for each person in a household — increases by $50 to $2,050. It would also increase each year by the rate of inflation. $20 million.
— The state’s earned-income tax credit would double, to 10 percent of the federal credit. $90 million.
Copyright 2011 The Associated Press.
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