Illinois corporations could see a sharp decrease in income taxes under a proposal from House Speaker Mike Madigan.
Madigan has introduced legislation to cut the corporate income tax rate in half, effective retroactively back to January 1st. Dropping that rate from 7 down to 3.5 percent will save businesses $1.5 billion a year, according to Madigan’s office.
A second corporate tax would remain intact, for a total corporate tax rate of six-percent if Madigan’s plan is approved. That’s lower than most surrounding states, and Madigan says that should help Illinois attract and retain businesses.