Budget & Taxes

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that leases of solar energy systems are exempt from the taxes imposed under the Acts.

Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to the taxpayer's losses from certain wagering transactions. Effective immediately.

SB 2359 stops a planned July 1, 2025 increase to Illinois' motor fuel tax that would have been triggered by the Consumer Price Index (CPI). The bill directly affects fuel retailers and consumers by freezing this specific tax hike, which would have raised gas and diesel prices based on inflation. It amends the Motor Fuel Tax Law to explicitly state that the July 1, 2025 CPI-based adjustment "shall not occur," while leaving all other tax rates and provisions unchanged. The freeze applies only to the 2025 increase, not to current rates or future adjustments after that date.

Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.

Creates the Prohibition on Taxpayer Funding of Guaranteed Income Act. Provides that, on and after July 1, 2025, no unit of government may use taxpayer money to fund a guaranteed income program. Preempts the exercise of home rule powers. Effective July 1, 2025.

Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2027. Effective immediately.

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, each corporation that increases its average employee head count in the State by more than 10% over the corporation's average employee head count in the State in the immediately preceding taxable year is entitled to an income tax credit in an amount equal to 2% of the corporation's Illinois Income Tax liability for the taxable year.

This Illinois House resolution (HR 119) calls on President Trump to abandon proposed tariffs, arguing they would increase costs for Illinois families and businesses. It specifically highlights risks to Illinois agriculture (like soybeans), manufacturing, and the state's top trade relationships with Canada and Mexico - impacting thousands of jobs. The resolution does not create new laws but formally opposes the tariff plans based on economic projections of higher living costs and market instability. It is a symbolic statement, not a binding policy change.