2021-MayJune

• Amends the Identity Protection Act allowing social security numbers to be included in applications and forms sent by mail, including, but not limited to, any material mailed in connection with the administration of the Unemployment Insurance Act pursuant to the limitations and requirements of that Act. • Extends benefits for noninstructional academic personnel until September 4, 2021. The federal government has increased from 50% to 75% the amount it will reimburse the UI Trust Fund. The remaining 25% will be funded from the recent $8.1 billion which is estimated at $65-70 million. • Waives collection of benefits overpaid by IDES due to no fault of the claimant. • Requires the IDES to, for each benefit claim that appears to have been filed other than by the individual in whose name the claim was filed or by their authorized agent, annually report to the Department of Revenue information that may assist in avoiding negative income tax consequences for the individual in whose name the claim was filed. • With the written consent of a claimant or employing unit and an agreement not to publicly disclose, the Director shall provide requested information related to a claim to a public officer or his or her agent. For business interests’ agreement to the above changes, the labor reps agreed to do a joint request with business to the Governor to use a “substantial portion” of ARPA funds to reduce the Unemployment Trust Fund deficit next year. EMPLOYMENT ISSUES • Non-Compete/Non-Solicit Covenants to Go to Governor: Non-compete and non-solicit agreements will be prohibited for construction employees unless the employee is primarily performing management, engineering or architectural, design, or sales functions for the employer or who are shareholders, partners, or owners in any capacity of the employer. • Cleanup of Equal Pay Certificate Registration Requirements Also on its Way to the Governor: During the Lame Duck Session of the 101st General Assembly, SB 1480 was approved by the General Assembly and signed into law by Gov. Pritzker as PA 101-656. It was effective March 23, 2021. Three amendment to SB 1847 address in a compromise fashion TMA’s major concerns with the Equal Pay Act Recently, TMA members were briefed on manufacturing- related actions of the Illinois General Assembly. The update was provided by TMA lobbyist Jay Shattuck, who was joined by Illinois House Minority Leader Jim Durkin. Just prior to the update, state lawmakers returned home expecting to reconvene to discuss an all-important energy bill expected to include over $600 million in Exelon Corporation subsidies the company says is needed to keep several Exelon nuclear plants from closing. FY 2022 STATE BUDGET Controlling party lawmakers chose not to release any information about the proposed FY 2022 State Budget until 24 hours before the May 31 scheduled adjournment. The final budget – SB 2800 - was nearly 3100 pages long. Changes that will directly affect TMA members include: • Restricting the use of corporate net operating losses to $100,000 per year for any taxable year ending on or after December 31, 2021 and prior to December 31, 2024. • Decoupling from federal tax bonus depreciation (100 percent expensing - Illinois had previously coupled from bonus depreciation of less than 100 percent expensing). • Eliminating the phase-out of the Franchise Tax • Requiring an addback for taxable years ending on or after June 30, 2021 of GILTI (the deduction allowed under IRC Section 250(a)(1)(B)(i))) and an amount equal to the deduction allowed under IRC Section 243(e) (certain dividends received from foreign corporations) and IRC Section 245A (deduction for foreign source-portion of dividends received by domestic corporations from specified 10 percent owned foreign corporations). UNEMPLOYMENT INSURANCE With the House adjourning, HB 2643 was not voted upon in the closing hours of the 2021 regular session. The House will need to concur on the Senate amendment in order to send to Governor Pritzker. As amended, the bill: TMA LEGISLATIVE UPDATE 8 TECHNOLOGY & MANUFACTURING ASSOCIATION

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