Fiscal Year 2025 Estimate for Replacement Taxes

In accordance with Illinois statute (50 ILCS 420/4.1), the Illinois Department of Revenue is required to provide an estimated entitlement* of the amount of Personal Property Replacement Taxes ("PPRT")** for Fiscal Year 2025.

The Fiscal Year 2025 PPRT allocations are estimated at $2.016 billion. This is a decrease from Fiscal Year 2024 PPRT allocations that totaled $2.991 billion.

The following factors contributed to changes in PPRT allocations:

• A review of past business tax payments will divert a larger share of tax payments made from pass-through entities during FY 2025 away from PPRT and towards IIT. The purpose of this change is to minimize future diversions out of the PPRT fund.
• The FY 2025 BIT payment true-up process increased the amount diverted out of the PPRT fund. This will lead to a decrease in shared revenue payments of $280.6 million in FY 2025 compared to FY 2024.  For more information see the Personal Property Replacement Tax Allocation Statement.
• In FY 2025 there will be a decline in the transfer from the refund fund to the PPRT fund of $99.5 million compared to FY 2024. Although the transfer amount is still positive, the amount transferred will only be $3.1 million.
• The reinstatement of the net loss deduction limitation will have a positive impact on PPRT payments made by C corporations.
• Like FY 2024, IDOR does not expect much to change in the underlying economics that drive PPRT. IDOR expects corporate profits to remain stable, resulting in sustained collections during the fiscal year.

A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2025 (July 1, 2024 through June 30, 2025) is available here. The list contains the following information:

District name

District number

FY 2025 estimated amount

FY 2024 actual disbursement amount

Vendor number

This information may be considered certified by the Director of the Illinois Department of Revenue solely for purposes of allowing local taxing districts to issue tax anticipation notes, in accordance with 50 ILCS 420/1 et seq., Tax Anticipation Note Act.

These numbers represent an ESTIMATE based on the best available economic data. The actual amount a local government will receive may vary. Please note that the Illinois Department of Revenue is not liable for error or miscalculation in certification of entitlements.

* "Entitlement" - the amount of the Replacement Tax paid or to be paid in any given full year to a unit of government.

** "Personal Property Replacement taxes" –  the tax or taxes, as by law now or hereafter enacted or amended, imposed by the General Assembly to replace revenue lost by units of government as a result of the abolition of ad valorem personal property taxes pursuant to Article IX, Section 5(c) of the Constitution of the State of Illinois.