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Hutchinson law protects non-profits from tax hike

Sen. Toi HutchinsonSPRINGFIELD – Illinois non-profits will be spared a tax hike thanks to legislation passed by State Senator Toi Hutchinson (D-Chicago Heights) that was signed into law on Friday by Gov. Pritzker.

Hutchinson’s new law – passed under Senate Bill 1257 – decouples Illinois from a new tax on nonprofits that was included in President Trump’s 2017 Tax Cuts and Jobs Act.

“Across Illinois, nonprofits take care of our seniors, ensure children are safe in the community and support individuals with disabilities,” Hutchinson said. “Imposing a new tax on these organizations would only risk disrupting vital services that Illinoisans rely upon every day.”

The new tax charges nonprofits that provide transportation and parking benefits to their employees, such as transit passes or payments for employee parking costs, by requiring organizations to pay unrelated business income tax (UBIT) on these expenses.

By decoupling from this new tax, Illinois joins New York and North Carolina who have recently moved to protect nonprofits as well.

“True tax reform does not give wealthy business owners tax breaks at the expense of non-profits taking care of some of our most vulnerable,” Hutchinson said.

Senate Bill 1257 was signed into law on Friday and takes effect immediately.

Sen. Toi W. Hutchinson


40th District

Years served: 
2009 - Present

Committee assignments: Executive; Judiciary; Public Health; Revenue (Chairperson); Transportation; Subcommittee on Special Issues.

Biography: Full-time state legislator; Born May 20, 1973; Graduated University of Illinois at Urbana with a Bachelor in English; Olympia Fields Village Clerk from 2002-2006; Harvard Kennedy School of Government Executive Management Program; Women and Power, 2004; Former Chief of Staff to State Senator Debbie Halvorson; Lives in Olympia Fields with husband, Paul, and 3 children.

Associated Representatives:
Anthony DeLuca
Lindsay Parkhurst