March 8 RSTINLEY PARK- Small businesses in Illinois competing for state contracts will no longer be pitted against large corporations that don’t play by the rules while.

A new law passed by State Senator Michael E. Hastings (D-Tinley Park) to level the playing field among businesses that compete for state contracts and investments will go into effect at the start of the New Year.

“Large corporations that dodge taxes should not be earning taxpayer money,” Hastings said. “If businesses are going to use offshore tax havens to avoid paying taxes, they should not be rewarded with taxpayer-funded state contracts and business.”

Hastings championed House Bill 3419, which prohibits expatriate corporations from submitting bids or entering into contracts with state agencies.

Some corporations use tax havens to avoid paying taxes. Figures reported by U.S. Public Interest Research Groups found the federal government lost over $150 billion in revenue in 2013 due to offshore corporate tax havens.

“We need to give local businesses that play fair and pay their fair share of Illinois income taxes a chance to compete and be successful when they bid for state contracts,” Hastings said. “Small businesses are the backbone of our economy. The more the state invests in them, the more they will invest in our great state.”

The new law will apply to businesses incorporated in any foreign country that does not impose a substantial income tax or substantial business activity tax.