Peoria Standard

A Senate proposal that would reshape small business taxes is gaining bipartisan support. 

The bill would allow a small company to elect to be taxed at the entity level. That would fall into place instead of letting the income advance through to the business's personal return. 

The owner of the company would then claim an offsetting continuance on their state return. The Senate Revenue Committee approved the non-partisan bill with a vote of 9-0 vote. The bill will now go to the Senate for additional deliberation.

"My S.A.L.T Bill has started to pick up support as it moves through the legislative process," bill sponsor Sen. Win Stroller (R-Peoria) said in a mid-April Facebook post. "I look forward to advocating on behalf of Illinois small businesses as we work to pass it out of the General Assembly."

However, in November 2020, the IRS issued direction on how pass-through companies such as ‘S’ corporations and partnerships can bypass the cap.

It requires an election by the business to be taxed at the entity level on the business's income.

The rather simple bill would not affect the Illinois tax revenue would only benefit Illinois corporations at the federal level.