Budget & Taxes

Amends the Property Tax Code. In a provision concerning the exemption for property used for charitable or beneficent purposes, provides that the term "institution of public charity" includes a not-for-profit organization that is organized and operated primarily as an entrepreneurial support organization and that supports, mentors, and trains entrepreneurs, if the applicant provides: (i) affirmative evidence that the organization is an exempt organization under Section 501(c)(3) of the Internal Revenue Code or its successor and (ii) affirmative evidence that the property is used for the provision of services typically provided by entrepreneurial support organizations. Provides that an entrepreneurial support organization shall satisfy the conditions for a property tax exemption with respect to any of its properties and shall be issued a charitable exemption for that property if the value of charitable services or activities provided by the entrepreneurial support organization using the property during the relevant year equals or exceeds the estimated property tax liability of the property for the year for which an exemption is sought. Specifies that the provisions of the amendatory Act are declarative of existing law and are to be given retroactive effect.

Creates the Digital Advertising Tax Act. Imposes a tax on the portion of a person's annual gross revenue that is derived from digital advertising services in the State if the person's total revenue derived from digital advertising in the State exceeds $150,000,000. Provides that the tax is imposed at the rate of 10% of the annual gross revenues derived from digital advertising services in the State. Effective immediately.

HB 5094 appropriates $15,000,000 from the General Revenue Fund to the Illinois Department of Human Services (DHS) for the Pretrial Success Program. This funding, effective July 1, 2026, directly supports DHS in implementing or expanding pretrial services, such as supervision, case management, or community-based alternatives to detention. The bill does not create new policy but allocates state funds to sustain existing pretrial services under DHS. It affects individuals in the pretrial system who may access these services and DHS as the administering agency.

Amends the Grant Accountability and Transparency Act. Provides that, notwithstanding any other provision of law to the contrary, all subcontractors and subrecipients who receive State grants, whether directly or indirectly, are subject to the provisions of the Act, including auditing by the Auditor General and the transparency provisions of the Act.

Creates the Small Business Asset Purchase Account Act. Provides that a small business in the State may open a small business asset purchase account at an eligible financial institution. Provides that funds from a small business asset purchase account may be used only for specified eligible costs. Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to 50% of the amount contributed during the taxable year to a small business asset purchase account. Creates a deduction of 100% of the interest earned on the account that is not included in the taxpayer's federal adjusted gross income. Amends the Uniform Penalty and Interest Act to provide for penalties for amounts withdrawn that are not used for eligible costs.

Creates the Legal Deserts Act. Provides that, subject to appropriation, the Administrative Office of the Illinois Courts may establish a program to provide grants or reimbursements to compensate an individual lawyer or law firms that relocate or open an office within a geographic area for the purpose of providing legal services to individuals residing within a legal desert. Provides that the grants or reimbursements may cover marketing expenses, compensation for an attorney or up to 2 attorneys per firm, or other eligible expenses identified by the Administrative Office of the Illinois Courts.

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.

Appropriates moneys from the General Revenue Fund to the Office of the State Appellate Defender for its ordinary and contingent expenses. Effective July 1, 2026.

Amends the Property Tax Code. Provides that, for the purpose of granting the homestead exemption for veterans with disabilities, for taxable years 2025 and thereafter, if the veteran has a service connected disability of 60% or more, then the property is exempt from taxation under the Code (currently, if the veteran has a service connected disability of 70% or more, then the first $250,000 in equalized assessed value is exempt from taxation under the Code). Effective immediately.

Makes appropriations for the ordinary and contingent expenses of the Illinois Department of Gaming Regulation and Enforcement for the fiscal year beginning July 1, 2026, as follows: Other State Funds $299,454,900.