Associated Builders and Contractors, Inc. - Illinois Chapter
Your Merit Shop Voice Across Illinois

Capitol News Reports

By Shattuck & Associates Consulting, Inc.

Capitol News Report: July 2019

ABC July Merit Update

 

Since our last report, Governor Pritzker has acted upon the following bills impacting ABC members. Other measures, approved by the General Assembly have been sent to the Governor for his review or are being processed to be forwarded to his office. The General Assembly has 30 days from approval of a bill to send it to the Governor. The Governor has 60 days to act upon its receipt from the General Assembly.

 

HB 1438 RECREATIONAL MARIJUANA

Last Action: Signed into law as PA101-27, effective June 25, 2019

Primary Sponsor: Representative Kelly Cassidy (D)/Senator Heather Steans (D)

Summary: Legalizes the use of and regulates the production and distribution of recreational marijuana to individuals over 21 years of age. For employers, the legislative sponsors worked and negotiated with ABC’s lobbyist to provide the strongest workplace protections in the country. The goal of protecting employers with zero tolerance, drug free workplace and drug testing policies is being met. Based on the final language and legislative intent, we are confident that employers will be free to continue to provide for safe workplaces through their reasonable, non-discriminatory employment policies. For more information on these provisions contact your ABC Illinois office.

 

SB 687 GRADUATED INCOME TAX RATE

Last Action: Signed into law as PA101-9, effective June 5, 2019

Primary Sponsor: Senator Toi Hutchinson (D)/Mike Zalewski ((D)

Summary: Sets graduated income tax rates effective January 2021, if the constitutional amendment authorizing graduated rates is approved by the voters.

  • Corporations will be taxed at a rate of 7.99% of the taxpayer's net income.

  • Individuals who do not file a joint return and have net income of $750,000 or less:

    • 4.75% of the portion of the taxpayer's net income that does not exceed $10,000;

    • (B) 4.9% of the portion of the taxpayer's net income that exceeds $10,000 but does not exceed $100,000;

    • (C) 4.95% of the portion of the taxpayer's net income that exceeds $100,000 but does not exceed $250,000;

    • (D) 7.75% of the portion of the taxpayer's net income that exceeds $250,000 but does not exceed $350,000; and

    • (E) 7.85% of the portion of the taxpayer's net income that exceeds $350,000 but does not exceed $750,000;

    • In the case of taxpayers who do not file a joint return and have income over $750,000, 7.99% of all of the taxpayer's net income.

  • For taxpayers who file a joint return and have net income of $1,000,000 or less:

    • (A) 4.75% of the portion of the taxpayer's net income that does not exceed $10,000;

    • (B) 4.9% of the portion of the taxpayer's net income that exceeds $10,000 but does not exceed $100,000;

    • (C) 4.95% of the portion of the taxpayer's net income that exceeds $100,000 but does not exceed $250,000;

    • (D) 7.75% of the portion of the taxpayer's net income that exceeds $250,000 but does not exceed $500,000; and

    • (E) 7.85% of the portion of the taxpayer's net income that exceeds $500,000 but does not exceed $1,000,000;

    • In the case of taxpayers who file a joint return and have a net income of more than $1,000,000, 7.99% of all of the taxpayer's net income.

 

SB 689 TAX ISSUES/CONSTRUCTION PROJECT TAX INCENTIVES

Last Action: Signed into law as PA101-8, effective June 5, 2019

Primary Sponsor: Sen. Toi Hutchinson (D)/Rep. Greg Harris (D)

Summary: changes impacting construction industry:

  • Creates Blue Collar Jobs Act (total credits capped at $20 million per fiscal year)/High Impact Business construction jobs income tax credit,

    • 50% of incremental income tax from construction jobs

    • 75% of incremental income tax from construction jobs in underserved

  • Enterprise Zone construction jobs income tax credit

    • 50% of incremental income tax from construction jobs

    • 75% of incremental income tax from construction jobs in underserved areas

  • River Edge Income Tax Credit - capital investment of at least $1,000,000 in a qualified rehabilitation plan

  • amends EDGE to authorize "New Construction EDGE credits" - requires capital investment of at least $10,000,000

  • River Edge construction jobs credit.

 

Elisa Fox