HB1725 104TH GENERAL ASSEMBLY

LRB104 06550 HLH 16586 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1725

Introduced 1/28/2025, by Rep. Amy Elik

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Provides that a qualified small business may apply to the Department of Commerce and Economic Opportunity for an income tax credit in an amount equal to the amount paid by the taxpayer during the taxable year for qualified advertising with a local news organization. Provides that the credit may not exceed $2,500 per eligible taxpayer in any taxable year. Provides that the aggregate amount of all tax credits awarded by the Department under the amendatory Act in any calendar year may not exceed $3,000,000. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Local business advertising.

(a) For taxable years that begin on or after January 1, 2026 and begin before January 1, 2031, each taxpayer that is a qualified small business may apply to the Department for a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the amount paid by the taxpayer during the taxable year for qualified advertising with a local news organization. The credit may not exceed $2,500 per eligible taxpayer in any taxable year. The aggregate amount of all tax credits awarded by the Department under this Section in any calendar year may not exceed $3,000,000. Credits shall be awarded on a first-come first-served basis until the maximum credit amount is reached. Upon approval of a tax credit award under this Section, the Department shall issue a tax credit certificate to the taxpayer, and the taxpayer shall attach that certificate to the taxpayer's Illinois income tax return.

(b) The credit shall be available only in the taxable year in which the investment is made and shall not be allowed to the extent that it would reduce a taxpayer's liability for the tax imposed by subsections (a) and (b) of Section 201 to less than zero.

(c) If the taxpayer is a partnership or a Subchapter S corporation, then the provisions of Section 251 apply.

(c) As used in this Section:

"Department" means the Department of Commerce and Economic Opportunity.

"Local news organization" has the meaning given to that term in the Strengthening Community Media Act.

"Qualified advertising" means any advertising with a local news organization for the purpose of promoting the qualified small business, including advertising that appears in a newspaper, on television, on a billboard, or through other digital or print media.

"Qualified small business" means an independently owned and operated for-profit entity that (i) has 50 or fewer full-time employees or grosses less than $4,000,000 per year and (ii) is located within a 25 mile radius of a business location of the local news organization.

Section 99. Effective date. This Act takes effect upon becoming law.