Budget & Taxes (Tax Credits)

in committee · Illinois · Senate Jul 13, 2026

SB 3788: INC TX-CHILD CARE

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% child care tax credit reducing taxable income for qualifying families - direct tax relief for middle/lower income households.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Mar 10, 2026

SB 3793: INVEST IN KIDS-REENACT

SB 3793 reenacts and makes permanent the Invest in Kids Act, allowing Illinois taxpayers to claim a state income tax credit for contributions to scholarship granting organizations (SGOs). These SGOs provide scholarships to eligible students from Illinois households with income at or below 300% of the federal poverty level (initially) and 400% after receiving a scholarship, covering necessary school costs and fees at qualified non-public schools. The scholarships are available for students attending non-public schools, including technical academies with approved career and technical education programs. The bill amends the Illinois Income Tax Act to reflect these changes and takes effect immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides state income tax credit for contributions to SGOs, offering tax relief to contributors supporting lower-income education scholarships.90% confidence ✓ EducationSupports EducationProvides tax-credit-funded scholarships for low-income students to attend non-public schools, expanding educational access and funding for K-12 education.95% confidence

Sub-Topics Income Tax Tax Credits School Choice Student Financial Aid

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in committee · Illinois · House May 25, 2026

HB 4849: INC TAX-LAND PROTECTION

Creates the Farmer Tax Benefit Act. Provides that taxpayers may apply to the Department of Natural Resources for an income tax credit in an amount equal to either (i) 100% of the fair market value of a qualified donation to a conservation agency of a land protection agreement or (ii) 50% of the fair market value of the qualified donation to a conservation agency of a fee simple interest or a remainder interest in qualified real property. Amends the Illinois Income Tax Act to make conforming changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for conservation donations, reducing taxable income - direct tax relief under Illinois Income Tax Act.90% confidence ✓ EnvironmentSupports EnvironmentBill provides tax credits for land conservation donations to protect natural resources, directly advancing environmental conservation through financial incentives.95% confidence

Sub-Topics Income Tax Tax Credits Conservation

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in committee · Illinois · Senate May 22, 2026

SB 3738: REVENUE-AFFORDABLE HOUSING

Amends the Illinois Housing Development Act and the Illinois Income Tax Act. Provides that the amount of credits awarded under the affordable housing tax donation program is limited to $41,831,227 in State fiscal year 2027 and shall increase by 10% each fiscal year thereafter (currently, $32,850,352 in State fiscal years 2022 and 2023 increased by 5% each fiscal year thereafter). Provides that the affordable housing donation income tax credit applies through the taxable year ending on December 31, 2036 (currently, December 31, 2026). Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit funding cap for affordable housing from $32.8M to $41.8M (2027) with 10% annual growth, expanding state support for housing programs.95% confidence ✓ HousingSupports HousingBill increases affordable housing tax credit funding cap to $41.83M in 2027 with 10% annual growth, strengthening housing program funding.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Property Development Property Taxes

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in committee · Illinois · Senate May 22, 2026

SB 3865: INC TX-WHOLESOME FOOD

Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to 25% of the amount of the federal tax credit received for a donation of apparently wholesome food. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax deduction for food donation donations, providing tax relief under Illinois Income Tax Act.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 3539: INC TAX-MANUFACTURING

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 10-15% tax credit on manufacturing capital expenditures, reducing tax liability for businesses. Direct tax incentive alignates with fiscal support for economic growth.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Illinois · Senate May 22, 2026

SB 3791: 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 & TaxesProvides 1.3% income tax credit for R&D expenses, reducing business tax burden to incentivize innovation and economic development within state fiscal framework.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 29, 2026

SB 3619: INC TX-HEALTH INSURANCE CREDIT

Amends the Illinois Income Tax Act. Creates an income tax credit for a qualified employer who makes a qualified contribution toward a health reimbursement arrangement for the qualified taxpayer's employees. Provides that the amount of the credit is $400 per covered employee in the first taxable year and $200 per covered employee in the second taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employers, reducing business tax liability and incentivizing health benefits coverage per employees.90% confidence ✓ HealthcareSupports HealthcareCreates tax credit for employers providing health reimbursement arrangements, expanding employee health insurance access through financial incentives.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employer health benefits, incentivizing expanded employee health coverage under employment standards.90% confidence

Sub-Topics Income Tax Tax Credits Insurance

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in committee · Illinois · House Apr 17, 2026

HB 4841: INC TX-AFFORDABLE HOUSING

HB 4841 permanently extends a 50% tax credit for Illinois taxpayers who donate to affordable housing projects under the Illinois Housing Development Act. It directly affects donors - such as individuals, businesses, and investors - who contribute to qualifying housing developments. The bill removes the previous expiration date (December 31, 2026), making the credit permanent and effective immediately. Taxpayers can apply the credit against state income tax, carry forward excess credits for up to five years, and transfer the credit to eligible projects or other donors.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends permanent 50% tax credit for affordable housing donations, providing tax relief and incentivizing private funding for essential housing programs.92% confidence ✓ HousingSupports HousingPermanently extends 50% tax credit for donations to affordable housing projects, directly increasing funding for development under Illinois Housing Development Act.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Housing Finance Property Taxes

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in committee · Illinois · Senate May 22, 2026

SB 3852: TREASURER-CHILD CARE FUND

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish a Child Care Solutions Pilot Program to make grants to child care centers in pilot communities. Creates the Illinois Child Care Solutions Fund for the purpose of funding the Program. Provides that the Illinois Child Care Solutions Fund may receive private donations. Provides that the State shall provide $2 in matching funds from the General Revenue Fund for each $1 in private donations received by the Fund, provided that the total amount of matching funds may not exceed $3,000,000 in any State fiscal year. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 75% of the amount donated by the taxpayer during the taxable year to the Illinois Child Care Solutions Fund. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates state General Revenue funds ($2 matching) to establish a child care program, directly increasing public service funding under state budget appropriations.95% confidence

Sub-Topics Income Tax Revenue Tax Credits

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