Small businesses in Illinois, where taxes are among the highest in the nation, stand to benefit from a state senator’s legislation to alter tax deductions.
The legislation passed the Senate on Thursday.
The bill utilizes an IRS-approved method to allow pass-through entities to bypass the $10,000 cap on the State and Local Tax, or SALT, deduction.
The sponsor of the bill, state Sen. Win Stoller, R-Germantown Hills, said the legislation has the potential to help up to 400,000 Illinois business owners save thousands of dollars annually on their federal tax filings.
“The beauty of this bill is it costs Illinois nothing,” Stoller said. “All the tax savings are on the federal side, but we just have to make a simple change in Illinois tax law to allow our businesses to take advantage of this opportunity.”
Stoller said 14 other states have passed or are in the process of passing similar legislation, which he says is good for Illinois businesses during a difficult time.
“It has a very broad impact on businesses, everything from contracting engineering firms, small business hair salons, restaurants, mom-and-pop shops,” Stoller said.
Senate Bill 2531 passed by the vote of 56-0 vote and now heads to the House. State Rep. Anthony DeLuca, D-Chicago Heights, will carry the bill in the House.
“This is a common-sense, bipartisan proposal that passed unanimously out of the Senate,” Stoller said. “I look forward to continuing to advocate for this proposal as it moves through the legislative process.”
This article was originally posted on Senate passes state and local tax deduction bill