Illinois HB2861 repeals the domestic franchise tax for corporations on January 1, 2028.
Illinois HB2861 amends the Business Corporation Act of 1983 to repeal the domestic franchise tax for corporations. The bill phases out the tax by exempting increasing amounts of liability from the tax over several years, culminating in a complete exemption for the first $100,000 in liability from January 1, 2026, to January 1, 2027. The tax is fully repealed on January 1, 2028. The bill also eliminates the requirement for any franchise tax payments due on or after January 1, 2027.
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- Core Provisions
- Implementation
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- Legal Framework
- Critical Issues
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