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Earlier this week, President & CEO Lou Sandoval sent a letter to the Governor’s Office urging that the Governor issue an Amendatory Veto to the Revenue bill to remove harmful provisions that, in totality, make Illinois an incredible outlier and send the wrong message to job-creators in the State and those seeking to invest in Illinois. Provided below is a portion of the letter.

On behalf of the over 3,000 member companies represented by the Illinois Chamber of Commerce, I write to express the Chamber’s serious concerns with provisions contained in the FY26 Revenue Omnibus (House Bill 2755) pertaining to the GILTI income modification, Joyce-Finnigan changes, and limitations to the 80/20 exemption and respectfully urge you to issue an Amendatory Veto of the legislation to remove those provisions. The bill was first filed on Saturday, May 31st, the Illinois General Assembly’s scheduled adjournment date for the 2025 spring session. The nearly 1,300-page bill includes a broad list of items impacting our state’s tax laws, including  

several items that we were supportive of, such as the various FY26 business development package provisions. The positive provisions in the legislation, however, are almost entirely overshadowed by the proposed corporate tax changes in the legislation, including modifications to the taxation of the global intangible low-taxed income (i.e., GILTI) at 50%, income apportionment changes that move Illinois from Joyce to Finnigan, and significant limitations on the existing 80/20 exemptions. The combined effect of these corporate tax changes will have a material impact on the tax liability for many Illinois employers.

     1. The corporate tax provisions in this legislation will make Illinois an outlier.

Looking at the tax treatment of GILTI across the country, Illinois would join approximately a dozen other state jurisdictions to impose a 50% tax on the GILTI taxable income. While it may be the case that other states impose a similar rate of tax on this income, Illinois would be by far the largest, by population, to adopt these changes. The further transition from Joyce to Finnigan will compound the tax exposure of many Illinois taxpayers. As reported by the Tax Foundation, Illinois’ corporate income tax rate is the 3rd highest in the nation. Combining an already high tax rate with the new tax exposure, we strongly believe, sends the wrong message to companies both here in Illinois and prospective employers.

     2. The estimated fiscal impact of these corporate tax changes will be significant.

According to data that was shared during House and Senate Committee testimony over the weekend, as well as fiscal impact information reported by the Governor’s Office of Management and Budget, specifically related to these three corporate tax law changes, the State is looking to add an additional $330-350 million per year in additional corporate tax collections. Early indications based on discussions with many of our member companies give us serious reasons to believe that these estimates are very conservative. The combined effect of these changes, especially as they are related to GILTI and JoyceFinnigan, will result in significant income tax exposure for many companies.

Read the entire letter here.