Budget & Taxes (Tax Credits)

in committee · Illinois · House Mar 27, 2026

HB 5203: INC TX-HOTEL RENOVATION

Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer who owns, operates, or manages a hotel. Provides that the amount of the credit is equal to 25% of the qualified renovation expenditures incurred during the taxable year, subject to specified limitations. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax credit for hotel renovation expenses, providing direct tax relief to businesses under Illinois Income Tax Act.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Jul 13, 2026

SB 3784: INC TX-DONATIONS OF PROPERTY

Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer that makes a qualified donation of real property during the taxable year to an employer that will use the property for the purpose of providing onsite child care to its employees. Provides that the credit shall be in an amount equal to the fair market value of the property, as determined by the Department of Revenue by rule.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit equal to fair market value of donated property, providing direct tax relief to taxpayers under Illinois Income Tax Act per Budget & Taxes indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for employer-provided onsite childcare, directly enhancing workplace benefits and supporting employee retention through childcare access.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 27, 2026

HB 5080: INC TAX-CHILD CARE

Amends the Illinois Income Tax Act. Provides that the tax credit for employee child care shall be (i) 30% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees and (ii) 10% (currently, 5%) of the annual amount paid by the corporate taxpayer in providing the child care facility for the children of its employees. Creates an income tax credit for corporate taxpayers that are qualified small businesses in an amount equal to 10% of the federal tax credit claimed by the taxpayer for the taxable year for qualified child care expenditures. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases corporate tax credits for child care expenses, providing tax relief to businesses under Illinois tax law.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits for employers offering child care, supporting working parents' employment stability and reducing work-life conflict - a direct benefit to employment standards.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Jul 9, 2026

SB 3868: INC TAX-PROP TAX CREDIT

Amends the Illinois Income Tax Act. Increases the tax credit for residential real property taxes from 5% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer to 10% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax credit from 5% to 10% for homeowners, providing direct tax relief. Aligns with support indicators for middle-income tax relief.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Illinois · Senate Feb 5, 2026

SB 3542: 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 income tax credit for small employers providing paid leave, reducing tax liability (tax relief) for eligible businesses under Illinois tax code.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for small employers providing mandated paid leave, incentivizing expanded worker benefits under Paid Leave for All Workers Act.95% confidence

Sub-Topics Income Tax Tax Credits Paid Leave

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in committee · Illinois · Senate May 22, 2026

SB 3710: INC TX-R AND D CREDIT

SB 3710 permanently extends Illinois' research and development (R&D) tax credit under the Illinois Income Tax Act. This change makes the credit available indefinitely for eligible businesses, rather than as a temporary provision. The bill directly affects companies conducting qualifying R&D activities within Illinois that claim this tax credit. It amends Section 201 of the tax code to remove any expiration date, effective immediately upon enactment. The credit allows businesses to reduce their state tax liability based on qualified R&D expenditures.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently extends Illinois R&D tax credit, providing ongoing tax relief to businesses under Income Tax Act, directly strengthening tax incentive policy.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Jan 14, 2026

HB 4350: INC TX-SMALL BUSINESS CREDIT

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100%, but in no event more than $250,000 per taxpayer in any taxable year, of qualified business expenses paid by a qualified small business during the taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% tax credit for small business expenses (up to $250k), reducing tax burden and supporting fiscal responsibility for small businesses.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Tags Small Business

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in committee · Illinois · House May 11, 2026

HB 4413: 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 & TaxesExpands tax credit limit for affordable housing (from $32.8M to $41.8M + 10% annually), increasing funding for housing programs through tax incentives.95% confidence ✓ HousingSupports HousingBill increases annual affordable housing tax credit cap to $41.8M in 2027, growing 10% yearly, directly funding housing programs.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 2855: ILLINOIS GIVES-SECA

Amends the Voluntary Payroll Deductions Act of 1983. Provides that a qualified community foundation that has been approved by the Department of Revenue to issue certificates of receipt under the Illinois Gives Tax Credit Act shall automatically be considered a qualified organization under the Voluntary Payroll Deductions Act of 1983. Amends the Illinois Income Tax Act. Creates an income tax credit for individuals who (i) serve as a volunteer for 100 hours during the taxable year, (ii) do not receive any compensation for their services as a volunteer for the taxable year, and (iii) do not serve on a full-time or part-time career basis for the entity for which they volunteer. Provides that the Department of Revenue may award not more than $5,000,000 in credits under those provisions in any calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for volunteer hours, providing tax relief for individuals under Illinois Income Tax Act95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 2856: INC TX-VOLUNTEERS

Amends the Illinois Income Tax Act. Creates an income tax credit for individuals who (i) serve as a volunteer for 100 hours during the taxable year, (ii) do not receive any compensation for their services as a volunteer for the taxable year, and (iii) do not serve on a full-time or part-time career basis for the entity for which they volunteer. Provides that the Department of Revenue may award not more than $5,000,000 in credits under these provisions in any calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for volunteers, reducing tax burden for individuals. Aligns with tax relief indicators under Budget & Taxes.90% confidence

Sub-Topics Income Tax Tax Credits

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