Illinois HB2846 repeals the annual franchise tax for corporations starting January 1, 2026.
HB2846 amends the Business Corporation Act of 1983 to eliminate the annual franchise tax for both domestic and foreign corporations in Illinois. The bill phases out the tax by increasing the exempt liability threshold over several years, culminating in a full exemption starting January 1, 2026. It also repeals related provisions concerning franchise taxes and the Corporate Franchise Tax Refund Fund, effective January 1, 2027. The bill ensures no refunds or prorations will be made for taxes due after January 1, 2026.
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