TMA Supports Business Savings Account Proposal

 SPRINGFIELD – Members of the Technology & Manufacturing Association (TMA) could cut their state income tax bills a bit if a measure encouraging business savings accounts moves along in the State Capitol this session. 

The proposed legislation—HB 4669 in the House and SB 3152 in the Senate—creates small-business savings accounts, allowing businesses to put aside up to $50,000 per year for future business investments.

“Small and mid-sized manufacturers certainly would be helped by this legislation. It’s these kinds of initiatives that our employers need so they can grow in Illinois,” said Dennis LaComb, Executive Vice President of the Technology and Manufacturing Association.

If passed, funds contributed to these small-business savings accounts would be eligible for an income tax deduction in the year the small business contributed them. The company could then reinvest them later—as operational needs dictate—to build out its operations.

State Senator Win Stoller (R, Germantown Hills) and State Representative Amy Elik (R, Alton) introduced the legislation to encourage small businesses to reinvest earnings in their communities. 

State Senator Win Stoller
State Senator Win Stoller

“With the passage of this legislation, we can provide our small-business community with the necessary flexibility they need to effectively reinvest in their operations,” said Sen. Stoller.

These small-business savings accounts will empower entrepreneurs throughout the state with the means to make strategic decisions for the long-term growth and vitality of their communities.”

State Representative Amy Elik
State Representative Amy Elik

“I filed this bill to help small businesses save for their future investment in their business,” said Rep. Elik. “When a small business invests in their business, not only is it a win for them, it’s a win for their employees and the community they serve.”

Major business organizations are lauding the idea and are enthusiastic about it getting through the General Assembly in the spring session.

“This legislation will free small-business owners’ reinvestment decisions from an arbitrary tax calendar,” said NFIB Illinois State Director Noah Finley. “Instead of having to make investments based upon the tax year, business owners will be able to choose the optimal time to reinvest in their businesses.”

“Legislation that allows small businesses the autonomy to make smart business decisions is good legislation,” said Lou Sandoval, CEO of the Illinois Chamber of Commerce. “This legislation does just that along with the ability to direct investments into their businesses which is solid pro-business policy, which is the key reason we support this bill.”

“In the construction industry, headwinds, including tight credit conditions, elevated materials prices, rising wages, and worker shortages challenge the 8 out of 10 contractors that are also small businesses,” said Alicia Martin, president of Associated Builders and Contractors Illinois. “We commend Sen. Stoller and Rep. Elik for supporting the entrepreneurial businesses that build the places where America lives, works, plays, heals, and prays so they can continue to invest in their communities.” 

Besides these groups and the Technology and Manufacturing Association, others, such as the Chicagoland Chamber of Commerce and the Illinois Trucking Association, support the effort