HB5526

DOMESTIC FRANCHISE TAX-REPEAL

Introduced·2/6/26
Introduced Text

HB5526 repeals the domestic franchise tax for corporations in Illinois starting January 1, 2028.

HB5526 amends the Business Corporation Act of 1983 to repeal the domestic franchise tax for corporations in Illinois. The repeal takes effect on January 1, 2028, and no refunds or proration of franchise tax will be allowed for taxes due after that date. The bill also exempts certain amounts of liability from the franchise tax in the years leading up to 2028. The changes are effective immediately upon becoming law.

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  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Rules Committee
Next
Committee decision

Sponsors

0
2
RR
Democratic CaucusRepublican Caucus

Calendar

Mar 26

8:00 AM

House Revenue & Finance Committee Hearing

Mar 26

8:01 AM

House Income Tax Subcommittee Committee Hearing

History

Mar 27

House

Rule 19(a) / Re-referred to Rules Committee

Mar 18

House

Assigned to Revenue & Finance Committee

Mar 2

House

Added Co-Sponsor Rep. Tony M. McCombie