Illinois Tax Hikes and Business Changes Take Effect July 1st

SPRINGFIELD – Starting July 1st, Illinois will raise taxes on short-term rentals, sports betting, telecommunications, tobacco, and vaping products, while also reducing electric vehicle tax rebates. Businesses will see changes to how foreign-earned income is taxed and a shift from the Joyce rule to the Finnigan rule, potentially increasing tax liability for companies with operations in multiple states. Critics warn these corporate tax changes could lead to double taxation and higher costs for consumers. The new rules were added to House Bill 2755 during the final hours of the spring legislative session.