Budget & Taxes

Amends the Property Tax Code. Provides that a county opting out of the special assessment programs to reduce the assessed value of certain residential real property shall not disqualify or shorten the maximum eligibility periods for any property approved to receive a reduced valuation prior to the county opting out. Requires that the special assessment programs be available to all qualifying residential real property regardless of whether or not the property has or is currently receiving any other public financing or subsidies or subject to any regulatory agreements with any public entity, or both. If an owner is approved for the reduced valuation prior to December 31, 2037 and the provisions are not subsequently extended, this shall not disqualify or shorten the maximum eligibility periods for any property approved to receive a reduced valuation. Provides that, if the chief county assessment officer has not created application forms, the chief county assessment officer shall make publicly available and accept applications forms that shall be available to local governments from the Illinois Department of Revenue. If a county Internet website exists, the application materials, as well as any other program requirements used by the county (such as application deadlines, fees, and other procedures required by the application) must be published on that website, otherwise it must be available to the public upon request at the office of the chief county assessment officer. On an annual basis, requires the Illinois Housing Development Authority to calculate and make available on its website the minimum per square foot expenditure requirements to be applicable statewide to be eligible for the reduced valuation, which shall include the historical annual expenditure requirements starting with calendar year 2021. Changes reference to improvements to existing residential real property to substantially rehabilitated residential real property. Makes other changes.

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that, in Fiscal Year 2026 and thereafter, the Department of Commerce and Economic Opportunity shall require that any convention and tourism bureau receiving a grant from the Local Tourism Fund that requires matching funds shall provide matching funds equal to no less than 25% of the grant amount (currently, no less than 40% of the grant amount in Fiscal Year 2026 and no less than 50% of the grant amount in subsequent years). Amends the Hotel Operators' Occupation Tax Act and the Illinois Sports Facilities Authority Act. Makes changes concerning the distribution of moneys under those Acts. Effective immediately.

Amends the Illinois Income Tax Act. Creates an income tax deduction for 50% of the amount contributed by the taxpayer to a small business asset purchase account during the tax year, but not to exceed $50,000 per taxpayer in any tax year. Defines "small business asset purchase account". Provides an addition modification for 50% of the amount that is withdrawn by the taxpayer from a small business asset purchase account during the taxable year. Amends the Uniform Penalty and Interest Act to establish a penalty for improper use of moneys in a small business asset purchase account.

Makes appropriations for the ordinary and contingent expenses of the Illinois Law Enforcement Training Standards Board for the fiscal year beginning July 1, 2025, as follows: Other State Funds $121,109,300; Federal Funds $8,000,000; Total $129,109,300.

Amends the Property Tax Code. Provides that, for taxable years 2026 through 2031, the total property tax liability for any parcel of residential property in Bloom, Rich, Bremen, Thornton, or Calumet township for any of those taxable years shall be limited to the lesser of (i) the actual property tax liability for the property or (ii) $5,000.

Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer that makes a qualified donation of real property during the taxable year to an employer that will use the property for the purpose of providing onsite child care to its employees. Provides that the credit shall be in an amount equal to the fair market value of the property, as determined by the Department of Revenue by rule.

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2026, hearing aids are exempt from the taxes under those Acts. Effective immediately.

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness may elect to claim the Credit under the Act against their obligation to pay over withholding taxes under the Illinois Income Tax Act.

Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities and veterans of World War II, provides that, if the taxpayer is the surviving spouse of a veteran whose death was determined to be service-connected or (currently, and) the taxpayer is certified by the United States Department of Veterans Affairs as a recipient of dependency and indemnity compensation, then the first $250,000 in equalized assessed value of the property is exempt from taxation under the Code. Effective immediately.

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Imposes a 3.75% surcharge on firearms and firearm component parts. Sets forth provisions concerning the distribution of the proceeds. Effective immediately.