Bill
SB 2716
Makes Illinois' pass-through entity tax permanent, allowing entity-level tax payments for partnerships and S corporations and affecting owners' Illinois filings.
Status: Died in committee (Listed as: Died In Committee — 2025-02-04)
Primary sponsor: Sen. Li Arellano, Jr.
Introduced: metadata shows multiple filing/reading dates (see Procedural history below).
Subject: Public health and welfare (metadata) / Revenue (bill text)
Important note on sources: The metadata supplied (bill title referencing the Board of Medical Licensure and Board of Health Professions) does not match the bill text included. The bill text and synopsis enclosed in the packet instead amend the Illinois Income Tax Act (35 ILCS 5/201) and state that “the pass-through entity tax applies on a permanent basis.” This summary focuses on the substantive tax language provided.
What the bill would do (purpose and intent)
- Make Illinois’ pass‑through entity (PTE) tax permanent. The synopsis states the PTE tax would be established on a permanent basis and be effective immediately.
- The bill’s text is presented as an amendment to Section 201 of the Illinois Income Tax Act (35 ILCS 5/201), which sets income tax rates and related provisions.
Key provisions and changes
- Explicit provision (synopsis): the pass‑through entity tax — an entity‑level option that allows partnerships, S corporations and similar pass‑through entities to pay Illinois income tax at the entity level — is continued permanently rather than as a temporary or sunsetted program.
- The included text reproduces Section 201’s historical and current rate schedule for individuals and corporations and also includes a (b-5) surcharge provision tied to certain gaming licensee asset transfers (taxable years 2019–2027). The packet does not show a full, discrete statutory insertion of the PTE mechanism; the synopsis states permanence but the detailed enabling language (definitions, elections, calculation, credits) is not shown in the excerpt provided.
Who would be affected
- Pass‑through entities (partnerships, S corporations, LLCs taxed as pass‑throughs) and their owners — the availability of a permanent PTE election would affect state tax payment timing and potentially federal itemized deduction interactions for owners.
- Individual owners of pass‑through entities (owners could see changes to their Illinois tax reporting and liabilities depending on whether entities elect to pay the PTE tax).
- State revenues and budget planning — making the PTE tax permanent reduces future uncertainty about related receipts.
- Tax preparers, accountants and legal counsel who advise entities on the PTE election and filing.
Procedural / timeline highlights
- Multiple dates are listed in the record; notable actions include: filed and received by Secretary of the Senate (March 13, 2025), referred to committees (Public Health and Welfare; State Affairs; Assignments), first readings (April 3, 2025 and Oct 15, 2025 entries), and ultimately recorded as Died In Committee (listed as 2025-02-04).
- The bill is shown as “Introduced” in the packet’s text as of Oct 15, 2025 (Sen. Li Arellano Jr.), but the procedural history contains conflicting earlier dates. Review of the official legislative clerk’s record or the General Assembly website is recommended for authoritative procedural status.
Notes and recommendations
- The packet contains inconsistent metadata (title about medical licensure) and an income tax amendment text/synopsis. Before action or analysis, consult the official bill page or legislative counsel files to confirm the intended bill text, the exact statutory amendments, and any fiscal notes that estimate revenue impacts.
Compiled from official sources — confirm details with the bill’s official record.
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