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HB 1361

INC TX-SMALL BUSINESS CREDIT

104th Regular Session Introduced by Lindsey LaPointe and 3 co-sponsors

Illinois bill increases small business tax credit to boost business profitability and competitiveness, pending committee approval since February 2025.

Added Co-Sponsor Rep. Martin McLaughlin
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Bill Summary · HB 1361

Legislative bill overview

HB 1361 proposes to increase the Illinois small business tax credit, making it more generous for qualifying small business owners. The bill has been in committee review since February 2025, with multiple sponsors added throughout the legislative process, indicating evolving support for the measure.

Why is this important

Small business tax credits directly affect business profitability and can influence hiring, expansion, and retention decisions. Illinois's competitiveness in attracting and retaining small businesses depends partly on its tax incentive structure relative to neighboring states.

Potential points of contention

  • Revenue impact: Increasing tax credits reduces state tax revenue without corresponding spending cuts, raising questions about budget implications during fiscal constraints
  • Targeting and fairness: Determining which businesses qualify (size thresholds, industry types, geographic location) creates winners and losers among the business community
  • Effectiveness debate: Limited evidence on whether tax credits meaningfully drive new business creation versus simply reducing taxes for businesses that would exist anyway

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

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