The Illinois Senate Revenue Committee heard SB 3614, a proposal from the National Federation of Independent Business, on April 9. The bill would allow small businesses in Illinois to set up tax-preferred asset purchase accounts.
The measure is intended to give small businesses more flexibility in making investments for their operations, rather than being limited by tax deadlines. Senator Doris Turner, who sponsors the legislation, said, “Small businesses are the backbone of our communities. No big business can match the care and support of a local mom and pop shop. It’s time we allow small businesses to make necessary improvements that will allow them to grow and thrive.”
Testimony in support of SB 3614 came from Noah Finley, NFIB Illinois State Director, and Todd Bringuet of Ace Sign Co., an NFIB member. Bringuet said, “Operating a small business is not for the meek. Small business owners are the drumbeat of our economy. Small business asset purchase accounts are a way to let these entrepreneurs know that we support their desire to grow here in Illinois. By providing the flexibility to optimally time critical reinvestments, this tool empowers small businesses to maximize the impact of their investments to create jobs and grow the local economy.”
Finley told lawmakers that “Small business asset purchase accounts would free small-business owners from the artificial constraints of the tax calendar, allowing them to re-invest their hard-earned funds at the optimal time and for their most pressing needs while avoiding unnecessary financing costs.”
Supporters say this change could help strengthen local economies by giving smaller companies more control over when they invest in new equipment or improvements.
