Sen. Win Stoller (R-Germantown Hills) has introduced legislation that is gaining sponsors from both parties, and would permit Illinois small businesses to opt to be taxed at the entity level rather than as personal income. | Photo Courtesy of Win Stoller
Sen. Win Stoller (R-Germantown Hills) has introduced legislation that is gaining sponsors from both parties, and would permit Illinois small businesses to opt to be taxed at the entity level rather than as personal income. | Photo Courtesy of Win Stoller
A piece of legislation sponsored by state Sen. Win Stoller (R-Germantown Hills) would enable small business owners to be taxed at the entity level, rather than having the income pass through to their return, and it’s gaining bipartisan support.
Senate Bill 2531 is meant to help small business owners save on their federal taxes through an IRS-approved means of bypassing the State and Local Tax cap, which is currently set at $10,000, according to coverage by WirePoints.
“My S.A.L.T Bill has started to pick up support as it moves through the legislative process,” Stoller said in a post to his official Facebook page. “I look forward to advocating on behalf of Illinois small businesses as we work to pass it out of the General Assembly.”
Current state law does not permit business income to be taxed at the entity level, requiring business owners to pay taxes on the income as personal income, Wirepoints reported. With the new federal cap on deductions for state taxes, Stoller’s legislation is expected to help take the pressure off of small business owners created by the cap on federal deductions. It’s estimated that the bill would affect approximately 400,000 small business owners in Illinois while not reducing any state or local tax revenues.
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