Illinois decoupling law recaptures taxes federal code cuts
[December 18, 2025]
By Greg Bishop | The Center Square
(The Center Square) – Gov. J.B. Pritzker says Illinois decoupling from
portions of the federal tax code was necessary to keep tax dollars
flowing to the state that the federal government was trying to give
back.
Signed with slew of other measures last week, Pritzker enacted Senate
Bill 1911. The governor’s office said the measure decouples from federal
bonus depreciation for newly constructed non-residential real property,
among other corporate tax changes.
After announcing grants to address homelessness in Springfield on
Monday, Pritzker said Illinois would be hurt if that money was not in
state government coffers.
“The decoupling is an effort to try and hold back the onslaught from the
federal government to make sure that we can support programs like the
one we’re announcing today,” Pritzker said. “So that’s what the purpose
is.”
As part of the federal tax changes President Donald Trump approved
earlier this year is 100% bonus depreciation, allowing expenses for new
construction to immediately be deducted from federal income taxes.
“The bonus depreciation provision … by decoupling from that provision,
we were able to recapture approximately $144 million,” state Sen. Elgie
Sims, D-Chicago, said on the Senate floor before passing SB 1911. “And
also, when you make the change from [Global Intangible Low-Taxed Income]
to the [Net Controlled foreign Corporation Tested Income], you're able
to garner another $90 million.”
State spending of public money since Pritzker took office in 2019 has
increased $16 billion annually, or nearly 43%.
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Before the measure passed early Halloween morning, Senate Minority
Leader John Curran, R-Downers Grove, said they know neighboring
states are conforming with the federal tax changes, allowing
businesses to keep more of their money.
“Neighboring states are offering this and we are not,” Curran said.
“We are going to be less competitive yet again in attracting that
investment.”
State Rep. Amy Elik, R-Alton, said while she supported some
elements, like extending the State and Local Tax Deduction, she said
decoupling from the federal tax code complicates things.
“And when the federal government tries to, you know, add rocket fuel
to manufacturing and other industries, we shouldn't have to be the
outlier,” Elik said on the House floor in October.
Another element of the bill expands the Illinois Film Production Tax
Credit. That move was supported by the Illinois Production Alliance.
“SB 1911 strengthens an already successful program, one that
supports thousands of high-quality jobs, drives economic growth
across the state, and reflects Governor Pritzker’s strong and
consistent support for the film, television, and commercial
production industries,” Illinois Production Alliance President
Anthony Barracca said in a statement.
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