Good day!

The Illinois General Assembly continues the fall (veto) session with the third and final day of scheduled session. The House convenes at 11:00 followed by the Senate at noon.  

RECAP OF YESTERDAY-Both chambers worked into the evening. Yesterday there was robust committee action with numerous amendments to legislation being filed throughout the day. Substantial time was also spent in chamber partisan caucus. Here is a readout on the large items:

SB 1911, HFA 1 Revenue Omnibus-passed out of House Revenue Committee. SB 1911 includes changes to the Illinois Income Tax Act that decouples from specified provisions of the OB3 (aka H.R. 1)/ Favorably, it includes the extension of the Pass-Through Entity Tax. Generally, decoupling includes: 
• Decouples from OBBB provisions related to bonus depreciation
• Adds Net CFC tested income to Illinois taxation (in addition to GILTI)
• Makes changes to the Film Tax Credit. 

I provided a more detailed breakdown in yesterday’s Morning Report.  Business groups were supportive of the PTE tax extension but were opposed to the tax increase created by the Net CFC Tested Income inclusion, along with the decoupling provisions.  ICPAS supported the PTE tax extension but remained neutral on the bill and amendments.

SB 25, Energy Omnibus-passed out of the House after HA#4 & 5 introduced and passed out of the House. Floor amendment #4 is a substantive amendment, while floor amendment #5 contained minor changes. State Chamber of Commerce Info Paper 

SB 2111 HFA#2 Public Transit-Passed House Executive Committee.  Below is a readout of funding mechanisms, however, it is anticipated that this will be amended. 
• Creates an “Extremely High Wealth Mark-to-Market Tax" on Illinois taxpayers with over $1 billion in net assets.
• Statewide Amusement Tax (like Chicago’s) to be imposed at the rate of 7%. The tax is applied to both in-person amusements (such as sports and music entertainment) but also streaming.
• Imposes a new “large event ticket surcharge” of $5 per ticket on venues with over 10,000-person capacity or larger.
• Earmarks automated speed safety system violation revenue for NITA.
• Increased the sales tax rate imposed by the RTA to 1.5% in Cook County and up to 1% in DuPage, Kane, Lake, McHenry, and Will Counties. (Or a .25% increase across the Board.)
• Interest earned on moneys in the Road Fund and the State Construction Account Fund on or after July 1, 2026, 90% shall be deposited into the Northern Illinois Transit Capital Improvement Fund to be used by the Northern Illinois Transit Authority for construction improvements and 10% shall be deposited into the Downstate Mass Transportation Capital Improvement Fund.
State Chamber Summary

ORDER OF THE DAY-As of this early morning writing, the House has no committees posted. The Senate has two committees posted with Senate Executive Committee kicking off at 10:00 a.m. 

I suspect a busy day of floor action in each chamber. My sense is that both chambers will consider the Revenue Omnibus package which is necessary to stabilize the state’s shaking fiscal hemorrhaging.  Most likely, the House will pass its version of the Transit legislation that will need to be considered by the Senate.

SUPPLEMENTAL RECORD-

• ICPAS Notable Work Anniversary-Let's all offer Jill Loeser, ICPAS Government Relations Office Manager a thank you and congratulations on her three decade plus work anniversary with ICPAS.  I have the pleasure of working with Jill in our Capitol Office. We could not accomplish our mission w/o Jill’s significant contributions.  Kudos to Jill!
• Resolution of the Public Transit Fiscal Cliff-As stated above, it is anticipated that the House will pass a version of the Senate Public Transit legislation. The trajectory of this legislation is uncertain currently.   The governor poured a bucket of cold water on proposed taxes yesterday.  The governor, the speaker and the president of the Senate met briefly last evening.  Timing will be key if they do so early enough in the final day of fall session for the Senate to consider the House changes to the original bill. If the House passes SB 2111 HFA# 2 and follow-on amendments, the measure will go back to the Senate for concurrence.  
• Let the Record Reflect-On Tuesday I erroneously reported that it was the Illinois Federation of Teachers Lobby Day. The IFT day was Wednesday with Teachers and University Professors descending on the Capitol advocating for additional funding for education.  
• ICPAS maintains live legislative tracking reports posted on our government relations landing page:
o General Legislative Tracking Report
o Tax Legislative Tracking Report