The governor of Illinois is expected to receive the fiscal year 2025 budget revenue bill.
The bill introduces several tax changes, which includes:
- Introduction of a USD 500,000 cap on net operating loss (NOL) carryovers for corporate taxes, applicable to tax years ending on 31 December, 2024, and before 31 December, 2027.
- Numerous changes concerning the retailer’s occupation tax (ROT).
- Starting 1 January, 2025, the vendor’s discount of 1.75% – which reimburses expenses incurred in collecting ROT, use taxes, and relevant local taxes – will be limited to USD 1,000 per month.
- Lease payments will be subject to ROT, and purchases intended for leasing will be classified as sales for resale.
- Introduction of measures preventing banks from imposing interchange fees on taxes and gratuities.
- The Hotel Operators’ Occupation Tax Act has been modified to include hotel room re-renters within the definition of hotel operators, requiring them to remit the hotel tax.
