Budget & Taxes

HB 86 proposes to appropriate $2 from the state's General Revenue Fund. These funds are designated for the Capital Development Board (CDB). The CDB would utilize this appropriation for various capital projects during Fiscal Year 2026. The bill is slated to take effect on July 1, 2025.

Amends the Illinois Income Tax Act. Provides that a taxpayer who employs a person with a developmental disability or a severe mental illness, as certified by the Department of Human Services, during the taxable year is entitled to an income tax credit in an amount equal to 25% of the wages paid by the taxpayer to the person with a developmental disability or severe mental illness, but not to exceed $6,000 in wages paid during the taxable year to any single qualified employee. Effective immediately.

Appropriates $60,549,700 from the General Revenue Fund to the Office of Statewide Pretrial Services for operational expenses, awards, grant, permanent improvements, and pretrial services reimbursements for the fiscal year ending June 30, 2026. Makes other appropriations to the Office. Effective July 1, 2025.

Creates the Adequate and Equitable Public University Funding Act. Provides that all general operating expenses for public universities shall be distributed by the Board of Higher Education through a funding formula for eligible public institutions and shall be administered by the Board. Defines "eligible public institution". Sets forth provisions concerning the adequacy targets and resource profiles of eligible public institutions. Provides for the distribution of State appropriations and the calculation of the base funding minimum for each eligible public institution. Provides that the Board shall oversee an accountability and transparency framework for assessing the distribution and use of all funds appropriated by the funding formula and evaluating the funds' effects on institutional outcomes pertaining to student affordability, enrollment, persistence, and outcome metrics. Provides for reporting and the establishment of an Accountability and Transparency Committee. Provides that the Board shall establish a Funding Formula Review Panel tasked with studying and reviewing topics pertaining to the implementation and impact of the funding formula. Contains provisions concerning the Board's annual budget request and the collection of data. Amends the Board of Higher Education Act. Removes certain provisions concerning budget proposals. Effective immediately.

Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to any overtime wages paid to the taxpayer during the taxable year. Effective immediately.

Amends the Property Tax Code. Provides that the long-time occupant homestead exemption applies in all counties beginning with taxable year 2026. Effective immediately.

Amends the Property Tax Code. Provides that, for the purposes of assessment, property registered in perpetuity with the register of areas under the Illinois Natural Areas Preservation Act is considered to be encumbered by a public easement and shall be depreciated to a level at which its value is $5 per acre, and any improvement, dwelling, or other appurtenant structure present on that land shall be valued at 33 1/3% of its fair cash value. Provides that a conservation right on land preserving a habitat for plant and animal species that are native to Illinois (currently, State or federal endangered or threatened species or federal candidate species) is considered to provide a demonstrated public benefit. Provides that a conservation right on land located adjacent to a park, conservation area, nature preserve, or other land or water area that is publicly owned or otherwise permanently protected for conservation purposes is considered to provide a demonstrated public benefit if the conservation right on that land furthers the conservation purposes of the adjacent protected area. Effective immediately.

Amends the Senior Citizens and Persons with Disabilities Property Tax Relief Act. Changes the income eligibility levels for programs that use the income limits in the Act for eligibility determinations.

Amends the Illinois Income Tax Act. Creates a child care credit in an amount equal to 25% of the federal tax credit for each qualifying child. Effective immediately.

Amends the Property Tax Code. Provides that property that is donated, granted, received, or used for a licensed not-for-profit child care center is exempt.