New tax bill to help thousands of Illinois businesses save thousands of dollars
PEORIA, Ill. (WMBD) — Illinois State Senator Win Stoller invited local business owners to Peoria Tire on Thursday, June 3, discussing his newly passed bill that will help small Illinois businesses save thousands of dollars.
Stoller said Bill 2531 uses an IRS-approved method that will allow up to 400,000 small businesses to avoid the $10,000 cap on the State and Local Tax, or SALT.
“Most of the time, these small businesses…they’re not taxed as a business,” Stoller said. “That income is captured and passes through to their individual tax return.”
He said the legislation will change the state’s tax code, allowing businesses to opt into a major federal tax cut, and will come at no cost to the state.
“My bill allows them to elect, if they wish, to be taxed as a business at the entity level,” Stoller said.
Michael Reiker, the owner of Peoria Tire, said the tax break will allow him to give employees raises and keep up with the competition.
“It means we can hold our pricing competitive with our national and regional retailers,” Reiker said. “If we can’t compete we can’t grow, and without growing we can’t even offer our own share of the taxes.”
Stoller said, as a business owner, he understands the challenges involved with running a business in Illinois, and the past year’s changes and challenges.
“You’ve got high taxes, you’ve got mandates, rules…even in the last year it got immeasurably more difficult to operate a business in Illinois,” Stoller said. “So it is extraordinarily gratifying to me to have a bill that allows them to have some tax benefit.”
Stoller moved the major piece of legislation through the Illinois General Assembly in May, making it the fourth bill the fresh-faced Senator has passed in his four months in office.
The bill is now headed to Governor J.B. Pritzker’s desk for his signature.