27 April 2015Accounting & tax analysis

Illinois Senate passes captive tax repeal

The Illinois Senate has unanimously passed legislation which will repeal a premium tax imposed on industrial insurer captive insurers.

Senate Bill (SB) 1573 initially sought to repeal parts of SB 3324, a self-procurement tax on insurance premiums paid to unauthorised insurers. The tax is equal to the tax on surplus lines brokers.

But the amended bill narrowed the scope of the bill to a tax exemption for industrial insured’s captives.

It has now been passed to the House Rules Committee, a standing committee of the Illinois House of Representatives. If passed, the bill would come into force on January 1, 2016.