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HB 4653

INC TX-BONUS DEPRECIATION

104th Regular Session Introduced by Tony McCombie

Illinois bill to increase bonus depreciation deductions for businesses, reducing near-term tax liability but also state tax revenue.

Filed with the Clerk by Rep. Tony M. McCombie
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Bill Summary · HB 4653

Legislative bill overview

HB 4653 proposes to increase bonus depreciation allowances for businesses in Illinois, allowing companies to deduct a larger portion of capital investments more quickly for state tax purposes. The bill appears designed to align Illinois tax policy with federal bonus depreciation provisions or potentially enhance them beyond current state law.

Why is this important

Bonus depreciation affects business investment decisions and state tax revenue. Accelerated depreciation reduces taxable income in earlier years, lowering business tax obligations and potentially incentivizing capital investments in Illinois. However, it also reduces state tax collections, creating tradeoffs between economic competitiveness and public revenue.

Potential points of contention

  • Revenue impact: The state would forgo tax revenue in the near term; fiscal note needed to quantify the cost to Illinois budget
  • Equity concerns: Primarily benefits capital-intensive industries and larger businesses with significant depreciable assets, potentially widening tax advantages between business types
  • Timing and scope: Unclear whether this mirrors federal bonus depreciation (currently 80% as of 2026) or proposes different rates; the extent of the increase matters significantly for budget impact

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

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