Not much action on tax issues this week at the Capitol. Legislators focused on whether to legalize medical marijuana or to allow the concealed carrying of firearms—both of which were voted down on Thursday.
Next week is the deadline to get bills out of committee in both the House and Senate as we roll into the final few weeks of session. It appears that the House appropriation committees are getting closer to releasing their budget proposals for the year. Their budget will be based on the House estimate of $33 billion of available FY 2012 revenues. The Senate, with a higher estimate of $34 billion to work with, seems to be having more difficulty in getting members on board with necessary budget cuts. Reconciling the House and Senate proposals with the Governor’s even higher $35+ billion dollar proposal should prove challenging for the legislative leadership.
We continue to hear rumors that decoupling from the 100% federal bonus depreciation remains on the table. Governor Quinn included the decoupling in his original budget proposal with a $600 million revenue estimate attached. We haven’t seen any legislation specifically attempting to decouple just yet, but anticipate that it will be included in the final budget package if the leaders decide to pursue another tax increase on business.