* Crain’s…

[The IMA’s Mark Denzler] charged that Team Pritzker is mischaracterizing the biggest proposed shift: limiting the corporate net operating loss deduction to $100,000 a year per company. In fact, all the Trump tax bill did was boost the percentage of losses that could be claimed at once, from 80 percent to 100 percent, Denzler said. The idea of a flat-dollar cap is new, and many Illinois companies will lose, he said, pointing to the aviation, automotive and hospitality sectors in particular.

Illinois Chamber of Commerce CEO Todd Maisch said that cap would give Illinois the most restrictive loss-deduction law of any state in the country. He points to a Tax Foundation study showing only a handful of other states limited such deductions, all of them at much higher rates. (Click here to read the study, page 58.)

“This is a massive tax increase, and it comes after the governor’s graduated income tax plan was resoundingly defeated by voters,” Maisch said. Whatever help Pritzker gave business in recent months, “They’re going to take all of the money back, and then some. Effectively, we’re getting a huge tax increase in the middle of a recession.”

* From the governor’s office…

An estimated 80 percent of Illinois corporate income taxpayers carrying [net operating losses] will not be impacted by the limit. In the 2018 tax year, 2,805 corporations had NOLs totaling over $6.4 billion, over half of which was claimed by only 89 corporations. Those that are impacted will only be delayed in using their NOL deductions; they will not lose them. However, with this change, it is estimated that an additional $314 million in corporate income tax revenues for the general funds will be collected in fiscal year 2022 and $21 million for local governments.

More here.