A former restaurant owner turned lawmaker has introduced legislation aimed at keeping businesses in the Illinois.
State Representative Mike Murphy of Springfield introduced House Bill 4021 which would create an income tax deduction for small businesses for an amount of up to $50,000 per tax year, to set aside in order to make capitol improvements such as buying new equipment.
Murphy says that the purpose is to assist small businesses in the state with upkeep and improvements to equipment without them being forced to take out loans when a piece of equipment breaks down, and put more debt on a company.
Murphy stressed that his plan is not a tax break, and that the funds would be required to be used on capitol expenses as defined by the federal government. He says that should a business use the funds for a non-capitol expense, the taxes would be required to be paid back along with a 10% penalty.
House Bill 4021 is currently under consideration in the House Revenue and Finance Committee.