Illinois has agreed to push back its 0.2 percent tax on digital asset businesses by six months, from 1 January to 1 July 2027, provided a judge signs off.
The state and the industry groups suing it, the Digital Chamber and the Illinois Blockchain Association, were expected to file the agreement with the circuit court in Sangamon County on Thursday morning, CoinDesk reported.
The tax comes from the Digital Asset Tax Act, which Illinois passed in June. It applies to crypto firms with more than $100,000 in receipts and reaches transactions and the storage of assets, which means custody as well as trading.
The groups asked for a temporary injunction on 9 September. The deal gives them most of what an injunction would have, without a ruling.
Cody Carbone, chief executive of the Digital Chamber, said the delay spares businesses and users costly compliance while the groups keep pushing to have the tax struck down for good.
Their case is that the levy breaches state constitutional protections and is pre-empted by the federal Internet Tax Freedom Act, which limits how states can tax online commerce.
The state has conceded none of that. It has only agreed to wait, so both sides can argue the constitutional questions without the tax already being collected.
What is missing is the price. Neither side has put a figure on what 0.2 percent would raise or what it would cost exchanges and custodians with Illinois customers, and that number would tell other states whether the idea is worth copying.
