Budget & Taxes (Income Tax)

in committee · Illinois · Senate Feb 14, 2025

SB 1734: INC TX-STANDARD EXEMPTION

Amends the Illinois Income Tax Act. Provides that the cost-of-living adjustment to the standard exemption applies on a permanent basis (currently, for taxable years that end on or before December 31, 2028). Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanent cost-of-living adjustment to standard exemption prevents erosion of tax relief for middle-income taxpayers, maintaining purchasing power through inflation adjustments.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jun 2, 2025

SB 1877: EDGE WITHHOLDING-STEEL

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the recycling and melting of steel products and in the manufacturing of new steel wire and rod products may elect to claim the credit under the Act against their withholding tax liability instead of their income tax liability. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit option allowing steel industry to reduce withholding tax liability, a form of targeted tax relief aligning with fiscal responsibility indicators.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Illinois · House May 14, 2026

HB 1750: INC TX-DEDUCT TIPS AND OT

Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deductions for tips and overtime, reducing taxable income and providing relief to workers in service/ot roles, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Mar 21, 2025

HB 3038: INC TX-YOUTH AND GOVERNMENT

Amends the Illinois Income Tax Act. Creates the Illinois Youth and Government Fund. Provides that moneys in the Illinois Youth and Government Fund shall be used by the Department of Commerce and Economic Opportunity to make grants to support the Illinois YMCA Youth and Government program. Creates an income tax checkoff for contributions to the Illinois Youth and Government Fund. Amends the State Finance Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax checkoff for youth program funding, establishing new tax-related funding stream for public program. Directly advances budget/tax mechanism for program support.92% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jun 2, 2025

SB 252: INC TX-R AND D CREDIT

SB 252 amends the Illinois Income Tax Act to make the state's research and development tax credit permanent. This bill removes any expiration date for the credit, ensuring its continuous availability. It directly affects businesses in Illinois that conduct research and development activities and claim this specific income tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes R&D tax credit permanent, providing ongoing tax relief for businesses engaged in research and development activities.90% confidence ✓ TechnologySupports TechnologyPermanently funds R&D tax credit, directly supporting tech innovation and business R&D activities through tax incentives.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 1188: INC TX-EMPLOYEE RAISES

Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for employers giving raises to employees earning ≥$31,200, offering tax relief to middle-income workers through employer tax reduction.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes employers to provide raises to qualifying workers ($31,200+ salary), directly advancing wage increases within labor & employment framework.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Feb 6, 2025

SB 1829: INC TX-STATE AND LOCAL DEDUCT

Amends the Illinois Income Tax Act. Creates a deduction for amounts that are disallowed as a deduction on the taxpayer's federal income tax return because of the $10,000 limitation under the federal Internal Revenue Code on deductions for certain State and local taxes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for state/local tax disallowances under federal cap, providing relief to affected taxpayers per Illinois Income Tax Act amendment.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Feb 6, 2025

HB 2605: INC TX-STANDARD EXEMPTION

HB 2605 increases Illinois' standard income tax exemption for individual taxpayers from $2,050 to $150,000, effective immediately. This change directly affects individual Illinois residents by raising the income threshold before state income tax applies. The bill amends Section 204 of the Illinois Income Tax Act, specifically updating the "basic amount" provision in subsection (b)(8) for taxable years ending after December 31, 2025. This represents a significant policy shift from the prior $2,050 standard, reducing the tax burden for many middle- and lower-income earners.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard tax exemption from $2,050 to $150,000, providing immediate tax relief to middle-income Illinois residents by raising income threshold before tax applies.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Illinois · House Mar 27, 2026

HB 4080: INC TX-CREDIT-SECURITY-JUDGES

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, a taxpayer who is an eligible member of the judiciary is allowed an income tax credit in an amount equal to the qualified security expenses incurred by the taxpayer during the taxable year. Specifies that the credit may not be carried back and may not reduce the taxpayer's liability to less than zero. Provides that, if the amount of the credit exceeds the taxpayer's tax liability for the taxable year, then the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. Requires the tax credit to be applied to the earliest year for which there is a tax liability. Provides that, if there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. Defines the terms "eligible member of the judiciary", "federal judge", and "qualified security expense". Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides targeted tax credit for judiciary security expenses, reducing taxable income for eligible members. This constitutes tax relief within Budget & Taxes policy area.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Jul 1, 2026

HJRCA 21: CONAMEND-REVENUE

Proposes to amend the Revenue Article of the Illinois Constitution. Provides that an additional income tax shall be imposed on individuals in an amount equal to 3% of the portion of the individual's net income that is greater than $1,000,000 for the taxable year. Provides that, of the revenue collected pursuant to those provisions, 50% shall be used to provide property tax relief and 50% shall be distributed to school districts solely on a per pupil basis. Effective upon being declared adopted.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 3% tax on high earners ($1M+), allocates 50% to property tax relief and 50% to schools per pupil, supporting fiscal responsibility and public services.90% confidence ✓ EducationSupports EducationAllocates 50% of new tax revenue to school districts via per-pupil funding, directly increasing education funding as specified in the bill's summary.95% confidence

Sub-Topics Income Tax Property Tax

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