State Sen. Stoller passes legislation to give a tax break to small businesses
PEORIA, Ill. (WMBD) — State Sen. Win Stoller (R-Germantown Hills), a fresh face in the Illinois Senate, has passed major legislation in just four months in office.
The latest bill, Senate Bill 2531, would help small businesses save thousands of dollars on their taxes. It would allow the 400,000 small businesses in Illinois to work around the SALT cap, a $10,000 deduction limit on federal, state, and local taxes, Stoller said.
Stoller held a presser at Peoria Tire on Thursday to discuss the legislation.
“My bill allows Illinois small businesses to opt-in a federal tax cut… As a business owner myself, I know how hard it is to deal with all the regulations from the state of Illinois,” Stoller said. He further said the legislation would come at no cost to the state.
Stoller said IRS allows states to create laws that shift state income taxation of partnerships and S corporations from the partner and shareholder level to the entity level. The shift would mean taxes would not count against the SALT cap of the individual partners and S corporation shareholders. He said 14 states have either introduced or passed similar legislation.
Michael Reiker, owner of Peoria Tire, said the tax break will help him keep up with the competition.
“It means we can give raises to our employees. It means we can hold our pricing competitive with our national and regional retailers. It means that we can compete. And if we can’t compete, we can’t grow, and without growing we can’t even offer our own share of the taxes,” Reiker said.
The bill now heads to Gov. J.B. Pritzker’s desk for his signature.