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HB 2846

Education; Higher Education Reform Act of 2025; effective date.

2025 Regular Session Introduced by Toni Hasenbeck

Illinois repeals corporate franchise tax liability starting 2026 and transfers any remaining refund fund balance to General Revenue by end of 2026.

Second Reading referred to Rules
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WeVote Research Nonpartisan
Bill Summary · HB 2846

Summary — HB 2846 (Franchise Tax — Repeal) — Illinois (2025)

Note: The materials you provided include text from two different bills both labeled “HB 2846” (an Arizona chiropractic regulation bill and an Illinois bill amending the Business Corporation Act). This summary focuses on the Illinois bill titled “Franchise Tax — Repeal,” which amends the Business Corporation Act of 1983.

Purpose

To eliminate (effectively repeal) corporate franchise tax liability in Illinois for taxes that would be due on or after January 1, 2026, and to wind down the related Corporate Franchise Tax Refund Fund.

Key provisions

  • Amends the Business Corporation Act of 1983 (805 ILCS 5/15.35 and related sections).
  • Eliminates the requirement that domestic and foreign corporations pay franchise taxes that would be due and payable on or after January 1, 2026. (Text: “The provisions of this Section shall not require the payment of any franchise tax that would otherwise have been due and payable on or after January 1, 2026.”)
  • States there shall be no refunds or proration based on a corporation’s taxable year extending past January 1, 2026 for taxes due on or after that date.
  • Directs that all amounts remaining in the Corporate Franchise Tax Refund Fund be transferred to the General Revenue Fund no later than December 31, 2026.
  • Makes unspecified changes to statutes of limitations related to franchise tax provisions (the bill text notes changes but the detailed amendments are not included in the excerpt).
  • Contains a sunset/repeal clause for the affected section(s): one provision reads “This Section is repealed on January 1, 2027,” reflecting statutory housekeeping to remove franchise tax provisions from law.
  • Effective date: the bill states “Effective immediately.”

Who is affected

  • Domestic and foreign corporations subject to Illinois franchise taxes — they would no longer owe franchise tax amounts that would have been payable on or after January 1, 2026.
  • Illinois Secretary of State and agencies that administer and collect franchise taxes and maintain the Corporate Franchise Tax Refund Fund.
  • State budget and programs funded (directly or indirectly) by corporate franchise tax revenue — potential reduction in long‑term revenues, offset in part by transfer of remaining refund fund balances to the General Revenue Fund.

Fiscal and timeline implications

  • Immediate policy change for franchise tax liability beginning January 1, 2026.
  • One-time transfer of remaining Corporate Franchise Tax Refund Fund balances to the General Revenue Fund by December 31, 2026.
  • Net long-term reduction in state revenue from franchise taxes beginning in FY 2026, magnitude unspecified in the bill text — requires fiscal estimate from the Illinois Comptroller/CBO for exact impact.
  • The statutory repeal language (Jan 1, 2027) suggests legislative housekeeping to remove the now‑obsolete franchise tax sections.

Legislative status & sponsors (from provided record)

  • Introduced in Illinois General Assembly by Rep. Jeff Keicher (filed/introduced in early February 2025).
  • Co-sponsors include Representative Tony M. McCombie (added May 13, 2025) and others per the record.
  • Companion bills noted: SB 86 and HB 4002.
  • The bill amends multiple sections of the Business Corporation Act (805 ILCS 5/15.35, 15.65, 15.90, 15.97).

Notes and uncertainties

  • The excerpt references changes to statutes of limitations but does not include full amended language — full bill text should be consulted for precise legal changes.
  • The materials also include an unrelated Arizona bill (also numbered HB 2846) concerning chiropractic regulation; ensure references and analyses use the correct state/context.

If you want, I can:
- Pull and summarize the complete legislative text (full IL bill) to identify all technical changes,
- Prepare a short fiscal impact checklist to request from state analysts, or
- Summarize the Arizona HB 2846 (chiropractic board) text that appears in your packet.

Compiled from official sources — confirm details with the bill’s official record.

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