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HB 1203

INC TX-RATES

104th Regular Session Introduced by Dave Severin

HB 1203 increases Illinois corporate income tax rates to generate additional state revenue, raising operating costs for businesses in a state already facing competitive tax disadvantages.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1203

Legislative bill overview

HB 1203 proposes to increase Illinois' corporate income tax rates. The bill was filed in January 2025 and has been moving through the standard committee review process, most recently being referred back to the Rules Committee in March 2025 following subcommittee consideration.

Why is this important

Corporate income tax changes directly affect business operating costs and state revenue, influencing both economic competitiveness and funding for public services. Illinois already has a relatively high corporate tax rate (9.5%) compared to neighboring states, making tax policy a significant factor in business location decisions and the state's fiscal balance.

Potential points of contention

  • Business competitiveness concerns: Higher corporate rates could disadvantage Illinois businesses relative to competitors in lower-tax states, potentially affecting job growth and business relocation decisions
  • Revenue generation vs. economic impact: While increased rates would generate more state revenue for services and debt reduction, there's debate about whether revenue gains offset potential economic slowdown or business flight
  • Regional tax burden: Illinois already faces perceptions of being a high-tax state; further increases may intensify concerns about overall tax burden on corporations and their employees

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

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