Are dividends paid by First Midwest exempt from Illinois income tax?
Dividends paid by First Midwest Bancorp, Inc. (“First Midwest”) in calendar years 1994, 1995 and 1997 through 2007 were exempt from Illinois income tax based on a provision of Illinois state tax law permitting an exemption for dividends paid by corporations conducting certain levels of activity in designated Enterprise Zones. However, while the level of First Midwest’s activity conducted within designated Enterprise Zones has not changed, the State of Illinois has enacted tax legislation that impacts the taxation of such dividends and as a result, dividends paid after January 1, 2008 by First Midwest will be subject to Illinois tax. For additional details or copies of past stockholder communications, please contact the Corporate Secretary’s department at (630) 875-7463. Click here to view a copy of the 2009 Tax Letter dated January 31, 2009. .
