House Votes to Bar State Contracts with Companies Using Tax

By  | 

The Illinois House Wednesday voted to bar state government from doing business with companies that use so-called 'tax havens' to avoid taxes.

The legislation would also end the exemption from state income taxes for companies using overseas tax havens. It passed 113 to zero and now goes to the Senate.

International companies often qualify for exemptions from Illinois taxes. Some companies claim international status by putting their headquarters in low-tax foreign countries even though they do little real business there.

The legislation being pushed by Comptroller Dan Hynes would ban state contracts with those companies. It also lifts the tax exemption for businesses based in any of about 40 common tax havens, such as Bermuda or Aruba.