SB 3377 Illinois Senate · 104th Regular Session

INDUSTRIAL HEMP ACT

Summary
Amends the Illinois Income Tax Act. Creates a corporate income tax deduction for hemp business establishments in an amount equal to 50% of the income generated by the sale of products made by businesses owned by minority and other specific priority-population-owned businesses. Amends the Tobacco Products Tax Act of 1995 to exclude hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products. Amends the Liquor Control Act of 1934 to provide that hemp extract and hemp-cannabinoid products made in compliance with State law are considered fit for human consumption. Authorizes liquor license holders to manufacture, distribute, and sell such products. Amends the Industrial Hemp Act to establish a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, enforcement, and penalties. Creates the Hemp Social Equity Fund to support loans, grants, and technical assistance for social equity applicants. Makes conforming changes to the State Finance Act. Effective January 1, 2027.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 4, 2026 Last action May 22, 2026
Floor votes

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Full legislative history

Actions timeline

Total actions
10
Key actions
2
Committee
5
May 22, 2026
Committee
Rule 3-9(a) / Re-referred to Assignments
upper
Mar 27, 2026
Upper · Passed
Rule 2-10 Committee Deadline Established As April 24, 2026
upper
Mar 13, 2026
Upper · Passed
Rule 2-10 Committee Deadline Established As March 27, 2026
upper
Feb 17, 2026
Committee
Assigned to Executive
upper
Feb 4, 2026
Committee
Referred to Assignments
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Emil Jones
Emil Jones
DDemocratic
IL
14