Illinois Legislature Has Second Chance to Repeal Self-Procurement Tax on Captives

Overview


Mary Kay Martire and Matthew Boch said that a $6.2 billion state budget deficit may trump business concerns that have led the Illinois legislature to consider repeal of the self-procurement tax on premiums paid to out-of-state captive insurance companies that went into effect Jan. 1. Because the deficit could lead to severe budget cuts, it is hard to determine whether a full repeal of the tax would occur given the state’s financial situation, the lawyers said, adding that amending the law in some fashion may be more popular than completely repealing the tax.