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Bill

HB 3776

INC TX-NOL LIMITATION

104th Regular Session Introduced by Travis Weaver

Illinois bill modifies net operating loss tax treatment for businesses, affecting how much taxable income they can offset with prior-year losses.

Referred to Rules Committee
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WeVote Research Nonpartisan
Bill Summary · HB 3776

Legislative bill overview

HB 3776 appears to address Illinois state income tax treatment of Net Operating Losses (NOLs), likely modifying how businesses can carry forward or apply losses against taxable income. The bill's exact provisions are not detailed in the available action history, but the title suggests changes to NOL limitation rules that currently govern corporate and business tax liability.

Why is this important

NOL provisions significantly affect business tax burdens and cash flow, particularly for startups, cyclical industries, and companies experiencing temporary losses. Changes to these rules can influence business competitiveness, state tax revenue, and decisions about whether companies locate or expand in Illinois.

Potential points of contention

  • Revenue impact: Expanding NOL deductions could reduce state tax collections; restricting them could hurt struggling businesses
  • Economic fairness: Debate over whether current NOL rules favor large corporations versus small businesses or whether changes should apply retroactively
  • Competitiveness with other states: Illinois's NOL rules versus neighboring states may influence business relocation decisions and economic development strategy

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

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