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HB 5318·IL·house

INC TAX-COMBINED REPORTING

In CommitteeFiled Feb 5, 2026
Sponsor: Maurice A. West, II
Latest Action

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

Mar 27, 2026

Summary

The measure amends the Illinois Income Tax Act so that, starting in 2027, businesses whose foreign activity makes up 80% or more of a unit will no longer be excluded from a combined reporting group. It also defines "United States" to include all states, DC, territories, possessions, and areas where the U.S. claims resource rights, and adds joint liability rules for group members. This changes how multinational companies calculate state taxes and could increase tax liability for some foreign‑focused operations.

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