Budget & Taxes

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that diapers for use by infants, children, or adults are exempt from the taxes under the Acts. Effective immediately.

Authorizes the Department of Military Affairs, on behalf of the State of Illinois, to sell, convey, lease, or otherwise dispose of all right, title, and interest in and to the real property commonly known as The Midway Flight Facility, Chicago Illinois. Provides that all proceeds from the sale or disposition of the property must be deposited into the General Revenue Fund and, subject to appropriation by the General Assembly, must be designated for the rehabilitation, redevelopment, or reuse planning of the former Illinois National Guard Armory located at 5500 S. Cottage Grove Avenue, Chicago, Illinois, in the Washington Park community area. Effective immediately.

Specifies that the amendatory Act may be referred to as the Reducing Expenses and Advancing Local (REAL) Housing Act. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Middle Housing Incentive Program. Amends the Department of Labor Law of the Civil Administrative Code of Illinois. Authorizes the Department to establish workforce development initiatives. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Extends the Veteran Property Tax Relief Reimbursement Pilot Program to July 1, 2030 (rather than July 1, 2028). Describes administrative responsibilities of the Department. Amends the State Finance Act. Creates the Veterans Property Tax Relief Reimbursement Pilot Program Fund and the Middle Housing Incentive Program Fund as special funds in the State treasury. Amends the Illinois Municipal Code and the Counties Code. Provides that a county or municipality may opt in, by resolution, to participate in the receipt of Local Government Distributive Fund revenues exceeding 8% of State income tax collections. Authorizes by-right overlay districts for middle housing and other housing-related innovations. Amends the Tax Increment Allocation Redevelopment Act. Makes changes to the definition of "redevelopment costs." Amends the Use Tax Act, the Services Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Changes the rate of tax on qualified residential development building materials to 1.25% (rather than 6.25%). Amends the Property Tax Code. Makes changes concerning the distribution of moneys collected from the Real Estate Transfer Tax. Amends the Prevailing Wage Act. Modifies the definition of "public works". Amends the Illinois Housing Development Act. Establishes grant-making and reporting requirements for the Illinois Housing Development Authority. Amends the Real Estate License Act of 2000. Limits commissions charged in residential real estate transactions. Amends the Security Deposit Return Act, the Security Deposit Interest Act, and the Landlord and Tenant Act. Makes changes regarding screening reports of prospective tenants and upfront rental costs of residential units. Makes conforming changes in the Condominium Property Act and the Common Interest Community Association Act regarding middle housing. Makes other changes. Effective January 1, 2028.

Expresses strong support for the American High Speed Rail Act of 2026 and commends Illinois congressional delegation members for their leadership as original cosponsors of this landmark legislation. Urges the United States Congress to advance and pass the American High Speed Rail Act of 2026 and to ensure that any federal surface transportation reauthorization package includes substantial, dedicated funding for high-speed and higher-speed rail development nationwide. Calls upon the Trump administration to include robust funding for high-speed rail in its federal budget proposals. Affirms support for the ongoing work of the Illinois High Speed Rail Commission and the Illinois Department of Transportation in developing a statewide high-speed rail plan. Recognizes this state-level planning effort represents the kind of serious groundwork that merits strong federal investment.

Expresses support for ongoing federal efforts to eliminate fraud, waste, abuse, and corruption in government spending. Commends President Donald Trump and Vice President JD Vance for their leadership and commitment to restoring transparency, accountability, and fiscal discipline in the administration of public benefit programs. Calls upon Governor JB Pritzker, all relevant state agencies, and the State of Illinois to fully comply with all federal antifraud reviews, audits, and enforcement initiatives related to Medicaid and other taxpayer-funded programs. Encourages the State of Illinois to strengthen its own antifraud oversight tools, improve accountability mechanisms, and fully cooperate with efforts to ensure taxpayer dollars are protected from misuse.

Appropriates $1,000,000 from the General Revenue Fund to the University of Illinois for the purpose of increasing the extension service trust fund allocation for the University of Illinois Extension program to enable the University of Illinois Extension program to achieve the stated purpose of the Farmland Transition Commission under the Farmland Transition Commission Act, which includes examining current barriers individuals ages 25 through 40 years old face when trying to purchase or access farmland, reviewing current incentives and policies to encourage the transfer of farmland to current or prospective farmers ages 25 through 40 years old, and compiling resources about and assisting current and prospective farmers ages 25 through 40 years old with barriers in purchasing or otherwise accessing farmland for farm operations. Effective July 1, 2026.

Amends the Compensation Review Act. Provides that, in fiscal year 2027 and each fiscal year thereafter, members of the General Assembly are prohibited from receiving and shall not receive any increase in compensation that would otherwise apply based on a cost-of-living adjustment. Effective immediately.

Appropriates the sum of $1,250,000 from the General Revenue Fund to the Department of Commerce and Economic Opportunity for a grant to the Illinois Restaurant Association for all costs associated with workforce development and training. Effective July 1, 2026.

Appropriates $450,000 from the General Revenue Fund to the Illinois Community College Board for competitive per capita grants for prison education programs that assist incarcerated students in attaining associate degrees. Appropriates $350,000 from the General Revenue Fund to the Board of Higher Education for competitive per capita grants for prison education programs that assist incarcerated students in attaining bachelor's degrees. Effective July 1, 2026.

Amends the Illinois Municipal Code. Provides that the corporate authorities of a municipality may impose a tax upon all persons engaged in the business of acting as a resale facilitator within the municipality. Provides that the tax may not be imposed on (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; (ii) the resale of a ticket or license to a ticket broker registered with the Office of the Secretary of State under the Ticket Sale and Resale Act; or (iii) the resale of a ticket or license by a ticket broker to another ticket broker registered with the Office of the Secretary of State under the Ticket Sale and Resale Act.