SPRINGFIELD – Legislation sponsored by State Representative Mike Murphy (R-Springfield) seeks to address the exodus of families and businesses from Illinois by creating a tax incentive for small businesses to save and invest in Illinois. House Bill 4021, which is gaining bipartisan support, was assigned to the House Revenue and Finance Committee for consideration earlier this week.
“As a former small business owner, I know how hard it is for our small businesses to save and plan for the future because of the high cost to do business in Illinois,” said Murphy. “To address this, House Bill 4021 creates a tax-deferred savings incentive to allow small businesses to set aside up to $50,000 a year for capital improvements. As the backbone of our economy, making it easier for small businesses to plan for the future is essential to maintaining and growing the base of good-paying jobs in our state.”
As Murphy referenced, HB 4021 creates an income tax deduction for an amount up to $50,000 per tax year contributed to a small business asset purchase account. The process of deferred savings for capital improvements is something regularly employed by local governments in Illinois to plan for the future and creating a similar incentive for small businesses helps ensure greater economic stability.
Nearly half of Illinois’ workforce is employed by a small business and small businesses account for 99.6 percent of the state’s private enterprises, making their contribution to the state’s economy vital.
In addition to growing bipartisan support in the House, HB 4021 is supported by the Illinois Chamber of Commerce and the small business community in the 99th House District represented by Murphy.
For more information about HB 4021, click here.