Springfield, IL... In an effort to improve Illinois' jobs climate and provide meaningful tax relief, State Representative Rich Morthland (R-Cordova) voted to pass a jobs package on Monday.
Senate Bill 397 passed the Illinois House with a vote of 81-28-7 and passed the Senate Tuesday on a vote of 44-9-0. The bill now goes to Governor Quinn for his signature.
"It became clear that we would not have the opportunity to vote on a perfect bill, but because of House Republicans' persistence, we passed a bill that provides real, broad-based relief for large and small employers all across Illinois - not just preferential treatment for a few," said Rep. Morthland. "While this bill offers necessary reform, our next move must be to repeal the income tax increase."
"Democrats passed a 67 percent income tax increase late in the final hours of the lame-duck session in January," added Morthland. "Their tax increase is killing jobs and driving businesses out of Illinois. To get our economy back on track, we must repeal the tax hike."
Along with increasing the individual and corporate income tax during the lame-duck session, Democrats allowed the Research and Development tax credit to expire. Senate Bill 397 will extend the R & D tax credit for five years, with an additional five year carry forward. The R & D tax credit is an important tool for manufacturers such as John Deere and Caterpillar.
Senate Bill 397 also increases the estate tax exemption from $2 million to $4 million over a two year period, lessening the tax burden on family farmers and small businesses. Another key provision included from the House Republicans' Jobs Package is the reinstatement of the Net Operating Loss Deduction. This gives business the ability to carry their losses forward in a tough economy.
"Increasing the estate tax exemption will help our family farmers keep their farms in the family," said Morthland. "This legislation also extends the sales tax exemptions and credits for renewable ethanol and biodiesel fuels, which will also help Illinois agriculture."
The provisions of the bill are supported by the Illinois Manufacturers' Association, the Illinois Chamber of Commerce, Midwest Truckers Association, Caterpillar Inc., the National Federation of Independent Business and the Illinois Farm Bureau. For more information about Senate Bill 397, please contact Rep. Morthland's Moline District Office at 309-762-3008 or via email at repmorthland@gmail.com.
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