Budget & Taxes (Income Tax)

in committee · Illinois · House Mar 27, 2026

HB 5039: INDUSTRIAL HEMP ACT

Amends the Illinois Income Tax Act. Creates a corporate income tax deduction for hemp business establishments in an amount equal to 50% of the income generated by the sale of products made by businesses owned by minority and other specific priority-population-owned businesses. Amends the Tobacco Products Tax Act of 1995 to exclude hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products. Amends the Liquor Control Act of 1934 to provide that hemp extract and hemp-cannabinoid products made in compliance with State law are considered fit for human consumption. Authorizes liquor license holders to manufacture, distribute, and sell such products. Amends the Industrial Hemp Act to establish a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, enforcement, and penalties. Creates the Hemp Social Equity Fund to support loans, grants, and technical assistance for social equity applicants. Makes conforming changes to the State Finance Act. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% corporate income tax deduction for minority-owned hemp businesses, providing targeted tax relief under Illinois Income Tax Act.95% confidence

Sub-Topics Business Taxes Income Tax

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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 Feb 10, 2026

HB 5377: WORK ALWAYS PAYS ACT

Creates the Work Always Pays Act. Provide that a State-administered benefit program shall not reduce benefits by more than $0.50 for each $1.00 increase in a household's earned income. If an increase in earned income results in a reduction of net household resources compared to the level in effect immediately prior to the increase, then the household shall be eligible for a bridge credit. Provides that the amount of the bridge credit shall equal the difference between: (i) the household's net household resources immediately prior to the increase in earned income; and (ii) the household's net household resources after the increase in earned income and corresponding benefit adjustments. Provides that a household that experiences an increase in earned income shall be subject to a 90-day earnings buffer period. Amends the State Finance Act to make a conforming change. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents benefit reductions exceeding income gains, ensuring net household resources increase with earned income - supports low-income workers through fiscal policy.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill prevents benefit reductions exceeding 50% of earned income increases and provides bridge credits to maintain net household resources, directly protecting workers from benefit cliffs and strengthening income support.95% confidence

Sub-Topics Income Tax Labor Standards

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in committee · Illinois · Senate May 22, 2026

SB 3377: INDUSTRIAL HEMP ACT

Amends the Illinois Income Tax Act. Creates a corporate income tax deduction for hemp business establishments in an amount equal to 50% of the income generated by the sale of products made by businesses owned by minority and other specific priority-population-owned businesses. Amends the Tobacco Products Tax Act of 1995 to exclude hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products. Amends the Liquor Control Act of 1934 to provide that hemp extract and hemp-cannabinoid products made in compliance with State law are considered fit for human consumption. Authorizes liquor license holders to manufacture, distribute, and sell such products. Amends the Industrial Hemp Act to establish a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, enforcement, and penalties. Creates the Hemp Social Equity Fund to support loans, grants, and technical assistance for social equity applicants. Makes conforming changes to the State Finance Act. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% corporate tax deduction for minority-owned hemp businesses under Illinois Income Tax Act, providing targeted tax relief per bill's explicit amendment.95% confidence

Sub-Topics Business Taxes Income Tax

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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 3483: INC TX-VEHICLE LOANS

Amends the Illinois Income Tax Act. Provides that each individual taxpayer who incurs debt that does not exceed $60,000 in connection with the financing of a qualified motor vehicle is entitled to a deduction in an amount equal to the interest paid on the qualified motor vehicle loan during the taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for vehicle loan interest, reducing taxable income for taxpayers, aligning with tax relief support indicators.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate May 22, 2026

SB 3665: INC TAX-ENERGY CHOICE

Amends the Illinois Income Tax Act. Provides that a qualified taxpayer may apply to the Department of Revenue for an income tax credit in an amount equal to 20% of the wages paid by the qualified taxpayer to a qualified energy choice worker based in Illinois in the taxable year. Provides that the term "qualified taxpayer" means a taxpayer that is a regulated utility in the State of Illinois or a power generating company providing baseload or intermediate generation in Illinois and that meets specified criteria and is able to demonstrate an adverse and material operational impact to either its overall Illinois-based workforce or its ability to conduct business in Illinois based on the scheduled phaseout target dates of 2030, 2035, 2040, and 2045, as provided in Public Act 102-662. Sets forth limitations on the amount of the credit. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax credit reducing state revenue, weakening budget through targeted tax break for energy companies.90% confidence ✓ EnergySupports EnergyProvides 20% tax credit for wages paid to energy sector workers by utilities/power generators, incentivizing workforce development in Illinois energy infrastructure.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Jul 13, 2026

SB 3785: INC TX-CHILD CARE

Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2026, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides corporate tax credits (50% start-up, 20% annual) under Illinois Income Tax Act, directly advancing tax relief policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits to employers for child care facilities, directly supporting workers' access to childcare benefits and reducing work-life barriers for employees.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Mar 27, 2026

HB 5300: DCEO-FOOD DESERT ZONES

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may, upon an ordinance adopted by a municipality or a county, certify an area as a food desert opportunity zone if the area is a food desert and if the area meets other specified criteria. Provides that grocery stores that open in a food desert opportunity zone may receive certain incentives under the Illinois Income Tax Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Amends those Acts to make conforming changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax incentives for grocery stores in food deserts under Illinois Income Tax Act, aligning with tax relief policies to stimulate economic development in underserved areas.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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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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