Budget & Taxes

HB 4653 repeals Illinois' enhanced bonus depreciation deduction from the state income tax law, removing a more generous tax break for businesses. This change directly affects businesses that previously claimed accelerated deductions for equipment purchases. The bill eliminates the specific provision allowing this enhanced deduction, effective immediately upon enactment. The policy change simplifies the tax code by removing this targeted incentive without creating new requirements or benefits.

Creates the Property Justice Act. Provides that no interest shall be paid on any sale-in-error refund arising from an error or omission of a county assessor, county treasurer, sheriff, or other county office. Provides that, if interest on a sale-in-error refund is permitted, then the interest shall not exceed 6% annually. Provides that a tax purchaser may not receive more than $2,000,000 in cumulative sale-in-error refunds in a year. Provides that a tax purchaser shall be responsible for not less than 10% of the purchase amount in any sale-in-error arising from conditions discoverable upon ordinary due diligence at the time of sale. Provides that, before an annual tax sale or scavenger sale is conducted, specified officials must each execute a presale certification stating that the parcels are legally eligible for sale, that notices have been properly served, and that assessed and delinquent amounts are accurate. Creates the Community Revitalization Property Trust. Provides that the Trust shall acquire parcels that (1) receive no bids in a scavenger sale or (2) are located in a distressed municipality. Provides that the Trust shall (1) clear title on any property acquired by the Trust; (2) extinguish liens on any property acquired by the Trust; (3) package parcels acquired by the Trust for redevelopment; (4) convey parcels owned by the Trust for $1 to qualified local purchasers, including residents, nonprofits, faith-based organizations, or small developers; and (5) prioritize community-driven redevelopment. Provides that, if the State and local delinquent taxes on a parcel exceed 125% of the assessed market value of a parcel, then all amounts in excess of 125% are extinguished. Provides that the State Treasurer shall publish quarterly reports containing: (1) all sale-in-error refunds issued because of an error or omission by a county assessor, county treasurer, sheriff, or other county office; (2) the county office that caused the error or omission; and (3) the payments made because of the error or omission. Limits home rule powers. Effective immediately.

SB 2800 prevents local governments (cities and counties with home rule status) from regulating, licensing, or taxing sports wagering (sports betting). It explicitly states that these powers are exclusively held by the state of Illinois under the Sports Wagering Act. The bill denies local units the authority to impose fees, surcharges, or taxes on sports betting activities or related receipts. This change takes effect immediately upon the bill becoming law.

Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2027, the State tax credit shall be calculated as though the decedent's federal taxable estate did not include the decedent's business interest in a manufacturing business located in this State. Defines "manufacturing business". Effective immediately.

Amends the Property Tax Code. Provides that, for taxable year 2026, the maximum reduction for the general homestead exemption shall be $10,000 in all counties. Provides that, for taxable years 2027 and thereafter, the maximum reduction for the general homestead exemption in all counties shall be the maximum reduction for the immediately preceding taxable year, increased by the lesser of (i) 5% or (ii) the percentage increase in the Consumer Price Index during the 12-month period ending on September 30 of the immediately preceding taxable year. Provides that, for assessment years following the next general assessment after the effective date of the amendatory Act, no increase in assessment may exceed 20% per year, subject to certain exceptions. Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that all surplus funds in the special tax allocation fund shall be distributed as soon as possible after they are calculated (rather than distributed annually within 180 days after the close of the municipality's fiscal year). Effective immediately.

Amends the School Code. Prohibits the State Board of Education from developing, purchasing, or requiring a school district to administer, develop, or purchase a standardized assessment for students enrolled or preparing to enroll in prekindergarten through grade 12 (rather than grade 2), other than for diagnostic purposes. Prohibits the State Board of Education from providing funding for any standardized assessment of students enrolled or preparing to enroll in prekindergarten through grade 12 (rather than grade 2). Makes related changes. Effective immediately.

Amends the Township Code. Provides that a township that maintains public parks pursuant to the Township Parks Article of the Township Code shall have, in addition to the rights, powers, and obligations granted to townships under the Township Code, all the rights, powers, and obligations of a park district organized under the Park District Code, except the authority to levy taxes pursuant to Taxing Powers Article of the Park District Code.

Opposes a progressive income tax in Illinois. Opposes the reconsideration by the Illinois General Assembly of any constitutional amendment intended to change the flat-rate income tax language of subsection (a) of Section 3 of Article IX of the Constitution of Illinois.

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that medical appliances are exempt from the taxes imposed under those Acts. Effective January 1, 2027.

Amends the Property Tax Code. In provisions concerning the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, provides that the term "household" does not include an exempt family member who uses the residence as his or her principal place of residence for less than 12 months during the taxable year and that the term "household income" does not include the income of an exempt family member if the exempt family member used the residence as his or her principal place of residence for less than 12 months during the calendar year preceding the taxable year. Provides that the term "exempt family member" means the applicant's son, daughter, stepson, or stepdaughter and the spouse of the applicant's son, daughter, stepson, or stepdaughter. Effective immediately.