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SB 3121

INC TX-GILTI AND SAFE HARBOR

104th Regular Session Introduced by Neil Anderson and 1 co-sponsor

Illinois would conform to or create safe harbor rules for GILTI in corporate tax, affecting how GILTI is calculated and reported for Illinois tax purposes.

Added as Co-Sponsor Sen. Neil Anderson
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WeVote Research Nonpartisan
Bill Summary · SB 3121

Summary of SB 3121 (Illinois, 104th Session) – INC TX-GILTI AND SAFE HARBOR

Purpose and intent

SB 3121 seeks to modify Illinois tax policy to address United States multinational tax provisions, specifically involving the inclusion of GILTI (Global Intangible Low-Taxed Income) and related safe harbor considerations for corporate taxpayers. The bill appears aimed at clarifying or altering Illinois corporate tax treatment in light of federal GILTI provisions, with a focus on how GILTI is calculated, reported, or offset for Illinoisincome tax purposes. The exact policy goals (e.g., conformity with federal rules, decoupling, or providing a Illinois-specific safe harbor) would be clarified in the bill’s text; the title indicates emphasis on GILTI and safe harbor provisions.

Note: The provided material does not include the full bill text, so the summary reflects the purpose suggested by the title and standard patterns for similar state legislation addressing GILTI and safe harbor treatment.

Key provisions (anticipated types based on the title)

While the full text is not provided, bills with similar scope typically include:
- Conformity or decoupling provisions: Determining whether Illinois corporate income tax conforms to or decouples from federal GILTI rules for purposes of Illinois taxable income.
- Safe harbor specifics: Establishing safe harbor rules to limit or define how GILTI, or the deduction/credit related to GILTI, is treated for Illinois taxes—potentially setting thresholds, calculations, or election options for taxpayers.
- Allocation and apportionment: Rules governing how GILTI-related income is allocated to Illinois for multijurisdictional filers, including any state-specific adjustments.
- Interaction with other incentives: Clarifications on interplay with existing Illinois tax credits or incentives that may be affected by GILTI calculations.
- Compliance and reporting: Requirements for taxpayers to report GILTI-related amounts, including forms or schedules, and potential penalties for noncompliance.

Who would be affected

  • Corporate taxpayers subject to Illinois corporate income tax, particularly those with multinational operations generating GILTI.
  • Tax professionals and corporate filers who prepare Illinois returns, as they would need to apply any conformity or safe harbor rules.
  • Illinois Department of Revenue, which would administer the new provisions, including guidance, audits, and compliance oversight.

Procedural and timeline aspects

  • Introduction and referral: The bill was filed on February 2, 2026, and referred to assignments for committee consideration.
  • First readings and sponsorship: The bill had its first reading on February 2, 2026. Co-sponsors include Sen. Chris Balkema and Sen. Neil Anderson (added March 24, 2026).
  • Next steps: If advanced, the bill would progress through committee hearings, potential amendments, and floor votes in the Illinois Senate, then onward to the House (subject to legislative process and timelines for the 104th session).

Potential impacts and considerations

  • Tax burden: Depending on whether the bill conforms to or decouples from federal GILTI, Illinois corporate tax liabilities for some multinationals could increase or decrease.
  • Compliance: Changes may require updates to accounting systems, tax software, and reporting processes for Illinois returns.
  • Economic effects: If conformity reduces incentives or alters effective tax rates for GILTI, it could influence corporate decision-making on investments or operations in Illinois.
  • Revenue: The measure could affect state revenue depending on how GILTI is treated and the extent of conformity or safe harbor utilization.

If you can provide the full bill text or specific sections, I can expand this summary with precise language, exact provisions, calculated figures, dates, and any fiscal impact estimates.

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

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