(The Center Square) – The Illinois House is back in session in-person Thursday and some say a Senate bill could be amended by the House to increase taxes on small businesses by hundreds of millions of dollars by decoupling from the federal tax code.

Senate Bill 217 passed the Senate last week. The measure amends the Parking Excise Tax Act, making it not apply to public properties such as state universities or local governments. It passed unanimously.

In the House, SB 217 passed the Executive Committee along party lines Wednesday during a virtual hearing. With the House prepared for an in-person session, it could be amended and passed by the full House.

The Illinois Policy Institute said in a statement “insiders believe (SB217) will be the vehicle for the $1 billion small business tax hike the governor has championed since January.”

The House sponsor of the bill, state Rep. Mike Zalewski, D-Riverside, declined comment Wednesday. In January, he unsuccessfully pushed for passage of change to the state’s tax code that would decouple Illinois’ code from the federal government’s tax code.

That could impact hundreds of millions of dollars small businesses would have to pay in more taxes.

“2020 was one of the worst years on record for the state’s economy, and Illinois’ 440,000 small businesses felt this pain more than most,” Illinois Policy Institute Senior Research Analyst Bryce Hill said. “Taking away $500 million to $1 billion intended to help them stay afloat during COVID-19 and get an advance on their future tax returns would do more damage to small business owners and the jobs they help create. Plus, this won’t fix Illinois’ spending problems. Lawmakers should reconsider this bill.”

The House convenes Thursday at noon.