The state has long been a bastion of tax avoidance for corporate tax dodgers, with businesses and individuals able to avoid paying the state’s 25 percent corporate tax rate by deferring payments to state and local governments.
Now, with the Illinois Business and Professions Tax Relief Act, the state could go even further by allowing businesses to defer state and city taxes for as long as they are in the business.
But in order to qualify for the state tax relief, businesses must either have been established in the state in the past five years or have been in the local government for three years.
The tax relief will not apply to businesses in Illinois, as long-term leases are not part of the deal, but to individuals who have been employees of a local government, such as police officers or school officials.
The Illinois Business Tax Relief, or ILBITRA, was signed into law in 2017 and became effective in January 2018.
It was meant to help small businesses with the transition to a state-funded tax system.
The Illinois Business Association says it supports the state government’s ability to help local governments transition to the new state tax system and it will continue to work with the state and the business community to create a system that benefits small businesses and all businesses.
The ILBITR was also designed to help the state grow its economy and create jobs.
In a statement, the Illinois State Treasurer’s Office said it has been working with state and private sector partners to develop and implement a streamlined system that helps small businesses.
“We recognize that our state has a long-standing need for an efficient and efficient state-owned business tax relief program and that this new relief will help small and medium-sized businesses,” the statement read.
“We also recognize that the ILBITRI will help ensure that all Illinois businesses can access the state-tax relief, which we believe will have a positive impact on Illinois economic growth and job creation.”