Budget & Taxes (Income Tax)

in committee · Illinois · House May 20, 2025

HB 3871: INC TX-NIL DEDUCTION

Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to the amount of compensation that is earned during the taxable year by a taxpayer who is a student-athlete from the taxpayer's name, image, and likeness and that is included in the taxpayer's federal adjusted gross income for the taxable year.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for student-athletes' NIL income, reducing taxable income and tax liability. Directly provides tax relief per 'support' indicators for tax relief measures.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Aug 17, 2026

HB 2606: INC TX-PREGNANCY RESOURCE

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 50% of the contributions made by the taxpayer during the taxable year to one or more qualifying pregnancy resource centers. Provides that the term "qualifying pregnancy resource center" means a nonprofit organization that is exempt from taxation under Section 501(c) of the Internal Revenue Code and is established for the purpose of providing free assistance to pregnant women in carrying their pregnancies to term.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% income tax credit for donations to pregnancy resource centers, providing tax relief to incentivize support for essential services.95% confidence ✓ HealthcareSupports HealthcareProvides tax credit for donations to pregnancy resource centers offering free assistance to pregnant women, supporting maternal health services access.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 2697: INC TX-ESTIMATED TAX

Amends the Illinois Income Tax Act. In provisions concerning the estimated tax, provides that the required annual payment is the lesser of: (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for the year; (ii) 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and the preceding year was a taxable year of 12 months; or (iii) 90% of the tax for the taxable year that would have been due based on the Act as it exists on the first day of the taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdjusts estimated tax calculation to potentially lower payments by allowing lesser of two options, aligning with tax relief indicators without specifying income brackets.85% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Mar 21, 2025

HB 2710: INC TX-FIRE SPRINKLERS

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that credit awards under the amendatory Act shall be limited to the lesser of 2,000 credit awards per year or $8,000,000 in total credits per year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% income tax credit (up to $10k) for residential fire sprinkler installations, providing direct tax relief to homeowners under Illinois Income Tax Act.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 3474: INC TX-COVER CROPS

HB 3474 creates an Illinois income tax credit equal to the cost of planting cover crops for individual taxpayers. It directly affects Illinois farmers and landowners who grow cover crops (plants like grasses, legumes, or wheat grown to protect soil, not for harvest). The credit applies to taxable years beginning January 1, 2026, and can be carried forward for up to five years if it exceeds the current tax liability. The bill does not change tax rates but provides a direct financial incentive for adopting cover crop practices.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for cover crop costs, reducing taxable liability for farmers. Direct financial incentive aligns with tax relief for targeted taxpayers, advancing fiscal support for agricultural practices.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax credit for cover crops, a soil conservation practice that reduces erosion and improves soil health, directly supporting environmental protection.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Mar 5, 2026

SB 2390: INC TX-INNOVATION CREDIT

Amends the Illinois Income Tax Act. Provides that a taxpayer shall be allowed an income tax credit in an amount equal to 1.3% of the qualified research expenses made by the taxpayer in Illinois. Provides that the taxpayer is not required to have obtained a research and development credit with respect to his or her federal income taxes to qualify for the Illinois research and development credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 1.3% income tax credit for qualified R&D expenses, directly modifying Illinois tax policy to provide targeted tax relief for businesses.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Apr 9, 2025

HB 1900: INC TX-CAREGIVERS

Amends the Illinois Income Tax Act. Creates an income tax credit for caregivers who have uncompensated eligible expenditures in connection with the care of an eligible related person during the taxable year. Provides that "eligible related person" means a person who meets certain age and residency requirements, requires assistance with at least one activity of daily living, and qualifies as a dependent, spouse, parent, or other relation of the primary caregiver or has a close association with the primary caregiver, including as a friend or neighbor. Provides that taxpayers shall apply for the credit to the Department on Aging. Sets forth limitations on the amount of the credit. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for caregivers, providing direct tax relief for middle/lower income households caring for dependents, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Feb 27, 2025

SB 227: INC TX-DATA CENTERS

Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5% income tax credit for qualifying data center investments, incentivizing business development through tax relief.95% confidence ✓ TechnologySupports TechnologyBill provides 5% income tax credit for data center investments, directly funding technology infrastructure development in qualified areas.92% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 3336: ELECTION INCOME TAX REBATE

Amends the Election Code. Provides that the State Board of Elections shall create a payment system to collect fees from any prospective candidate for elected office in a consolidated or general election in the State. Provides that the State Board of Elections shall deposit all moneys collected under the provision into the Election Income Tax Rebate Fund. Provides that, beginning in 2027, the Department of Revenue shall pay an annual rebate to each individual taxpayer who files an Illinois income tax return with the moneys in the Election Income Tax Rebate Fund. Amends the State Finance Act to create the Election Income Tax Rebate Fund.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides annual tax rebates to individual taxpayers via a fund created from candidate fees, offering direct tax relief to filers.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jun 2, 2025

SB 1993: INC TX-ABLE ACCOUNTS

Amends the Illinois Income Tax Act. Creates an income tax credit for contributions to an ABLE account. Provides that the credit shall be in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax credit for ABLE contributions (up to $500), reducing taxable income for contributors. Aligns with tax relief for lower/middle income via targeted credit.85% confidence

Sub-Topics Income Tax Tax Credits

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