Find news, events, articles, videos, and more that answer your questions and keep you up-to-date.
Visit Resource Center
Stay informed on compliance updates
Illinois — Senate Bill 689, which was signed by Illinois’ Governor Pritzker on June 5, provides for the phase out of Illinois’ franchise tax on domestic and foreign corporations. Currently, Sec. 15.35 of the Illinois Business Corporation Act imposes a franchise tax on domestic corporations for the privilege of exercising their franchise and Sec. 15.65 imposes a franchise tax on qualified foreign corporations for the privilege of exercising their authority to do business in Illinois. The tax is measured by the paid-in capital – which is basically the funds raised when a corporation issues stock. There is an initial tax, an annual tax, and a tax upon changes in paid-in capital.
Senate Bill 689 amends Secs. 15.35 and 15.65 to provide for a phase out of the franchise tax imposed by those sections. Specifically the bill provides as follows:
Senate Bill 689, a bill in excess of 300 pages, contains many other changes to Illinois’ tax laws which may be of interest. The entire bill may be accessed here. The amendments to the corporation law’s franchise tax provisions can be found in Article 30 of the bill.