# Illinois HB2861: DOMESTIC FRANCHISE TAX-REPEAL

Illinois HB2861, DOMESTIC FRANCHISE TAX-REPEAL, is a 104th General Assembly (2025–2026) House bill sponsored by Tony M. McCombie (Republican); status in committee, last action 2025-03-21 (Rule 19(a) / Re-referred to Rules Committee) (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IL-HB2861-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Illinois HB2861
- State: Illinois
- Session: 104th General Assembly (2025–2026)
- Title: DOMESTIC FRANCHISE TAX-REPEAL
- Status: in committee
- Chamber: House
- Introduced: 2025-02-05
- Last action: 2025-03-21, Rule 19(a) / Re-referred to Rules Committee
- Sponsor: Tony M. McCombie (Republican)
- Cosponsors: 0
- Subjects: revenue & finance
- Touches household money: no
- Economic provisions PRIA read: 0

## Summary

Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2027. Effective immediately.

## Bill overview

No economic impacts identified for this bill.

## Sponsors and cosponsors

- Sponsor: Tony M. McCombie (Republican), House

## Actions (6)

- 2025-03-21: Rule 19(a) / Re-referred to Rules Committee (House)
- 2025-03-06: To Tax Policy: Other Taxes Subcommittee (House)
- 2025-03-04: Assigned to Revenue & Finance Committee (House)
- 2025-02-06: Referred to Rules Committee (House)
- 2025-02-06: First Reading (House)
- 2025-02-05: Filed with the Clerk by Rep. Tony M. McCombie (House)

## Bill text

- Introduced: [PDF](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2861.pdf)

## Related bills

- HB5198: AFFORDABLE HOUSING-CILAS (passed house)
- SB1937: PENSION CODE-VARIOUS (passed senate)
- HB2563: CONDO-RESERVE STUDY (in committee)
- HB4701: LIMITATIONS FACILITY FEES ACT (in committee)
- SB3008: DHS-ABLE PROGRAM INFO MATERIAL (passed senate)
- SB3484: VEH CD-PLATES-REGISTRATION (signed)

## Sources
- [Introduced (PDF)](https://www.ilga.gov/documents/legislation/104/HB/PDF/10400HB2861.pdf)

## Related
- [HB5198: AFFORDABLE HOUSING-CILAS](https://policyrisk.com/state-bill/IL-HB5198-2025-2026)
- [SB1937: PENSION CODE-VARIOUS](https://policyrisk.com/state-bill/IL-SB1937-2025-2026)
- [HB2563: CONDO-RESERVE STUDY](https://policyrisk.com/state-bill/IL-HB2563-2025-2026)
- [HB4701: LIMITATIONS FACILITY FEES ACT](https://policyrisk.com/state-bill/IL-HB4701-2025-2026)
- [SB3008: DHS-ABLE PROGRAM INFO MATERIAL](https://policyrisk.com/state-bill/IL-SB3008-2025-2026)
- [SB3484: VEH CD-PLATES-REGISTRATION](https://policyrisk.com/state-bill/IL-SB3484-2025-2026)
- [Illinois bills](https://policyrisk.com/states/illinois/bills)
- [Illinois state hub](https://policyrisk.com/states/illinois)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IL-HB2861-2025-2026 (as of 2026-11-01).