Budget & Taxes (Income Tax)

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 May 22, 2026

HB 5215: MARK-TO-MARKET TAX ACT

Creates the Extremely High Wealth Mark-to-Market Tax Act. Provides that a resident taxpayer with net assets worth $1,000,000,000 or more shall recognize gains or losses as if each asset owned by that taxpayer had been sold for its fair market value on December 31 of the taxable year. Contains provisions concerning the calculation of the amount of tax due from those gains or losses. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes tax on ultra-wealthy's unrealized gains, increasing state revenue and closing a potential loophole per tax code amendment.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jul 6, 2026

SB 3873: INC TX-R AND D CREDIT

SB 3873 permanently extends Illinois' research and development (R&D) tax credit for businesses. It amends the Illinois Income Tax Act to make the R&D credit permanent, removing any expiration date. This change directly affects businesses that claim R&D credits on their state tax returns, providing ongoing eligibility without needing annual legislative renewal. The credit applies immediately upon the bill's effective date, offering predictable tax relief for qualifying companies investing in innovation.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently extends R&D tax credit, providing ongoing tax relief for businesses investing in innovation, directly supporting business tax incentives under Budget & Taxes.95% confidence ✓ TechnologySupports TechnologyPermanently extends R&D tax credit, providing ongoing financial support for technology innovation and business investment in tech R&D.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · Illinois · House Mar 2, 2026

HB 5527: INC TAX-R AND D CREDIT

Amends the Illinois Income Tax Act. Increases the amount of the research and development credit by calculating the increase in the taxpayer's research activities in the State over 50% (currently, 100%) of the qualifying expenditures for the base period. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases R&D tax credit by expanding eligibility, directly modifying tax policy to provide business tax relief and incentivize research activities.95% confidence

Sub-Topics Income Tax

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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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in committee · Illinois · Senate May 22, 2026

SB 3614: SMALL BUSINESS ASSET ACCT

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 50% tax deduction for small business contributions, reducing taxable income and offering direct tax relief per Illinois Income Tax Act amendment.92% confidence

Sub-Topics Income Tax Tags Small Business

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in committee · Illinois · Senate May 22, 2026

SB 3535: INC TX- PAID TIME OFF

Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer that is an eligible small employer in an amount equal to the amount paid during the taxable year by the eligible small employer to its employees as paid leave that is required by the Paid Leave for All Workers Act. Provides that an eligible small employer is an employer that employs 50 or fewer employees during the taxable year and is subject to the Paid Leave for All Workers Act. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small employers providing paid leave, reducing tax liability and incentivizing compliance with labor law under tax policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for small employers providing mandated paid leave under Paid Leave for All Workers Act, expanding worker benefits and incentivizing compliance with paid leave requirements.95% confidence

Sub-Topics Income Tax Tax Credits Paid Leave

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