Budget & Taxes (Tax Incentives)

in committee · Illinois · Senate Feb 6, 2025

SB 1838: IDOT ECON DEVELOP PROGRAM

Amends the Corporate Accountability for Tax Expenditures Act. Provides that if an applicant is seeking development assistance for a project that is a new office construction or office relocation that retains at least 100 jobs in the county in which the project is located or is being relocated to and the county has more than 25,000 residents but less than 50,000 residents, the applicant shall be eligible for development assistance under the Department of Transportation's Economic Development Program.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax expenditure eligibility for economic development projects, increasing state support through tax benefits for job-retaining office relocations.90% confidence

Sub-Topics Tax Incentives Tags Economic Development

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in committee · Illinois · House Apr 11, 2025

HB 1824: DCEO-MASTER PLAN

Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for capital contributions under master development plans, reducing taxable income per Illinois Income Tax Act amendment.90% confidence

Sub-Topics Tax Incentives

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in committee · Illinois · Senate Feb 7, 2025

SB 2126: PROP TX-AFFORDABLE HOUSING

Amends the Property Tax Code. Provides that property that is owned by a faith-based organization or an organization described under Section 501(c)(3) of the Internal Revenue Code of 1986 that is leased for a minimum of 50 years for the purpose of, and is predominantly used for, providing affordable housing for households with a household income of between 20% and 90% of the area median income is exempt from taxation under the Code until (i) the end of the ground lease term or (ii) the first taxable year during which the property is no longer used for affordable housing purposes, whichever occurs first. Provides that taxing districts may abate all or a portion of the property taxes levied on a qualified affordable housing developments.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts affordable housing properties from property tax, providing tax relief for organizations serving low-to-moderate income households (20-90% AMI), aligning with tax relief indicators.95% confidence ✓ HousingSupports HousingTax exemption for 50+ year leases of affordable housing (20-90% AMI) by 501(c)(3) orgs directly incentivizes development, aligning with affordable housing support indicators.90% confidence

Sub-Topics Property Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

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in committee · Illinois · Senate Jun 2, 2025

SB 240: PRESERVATION TAX CREDIT

Amends the Historic Preservation Tax Credit Act. Provides that, in calendar years beginning on or after January 1, 2026 and ending on or before December 31, 2028, the State Historic Preservation Office within the Department of Natural Resources may allocate $75,000,000 (currently, $25,000,000) in credits under the Act. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit allocation from $25M to $75M for historic preservation, directly funding a public program via tax incentives.95% confidence

Sub-Topics Tax Credits Tax Incentives

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in committee · Illinois · Senate Jun 2, 2025

SB 2476: INC TX-DOWNTOWN CREDIT

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 20% of the qualified conversion expenditures incurred by a taxpayer for a qualified converted building. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 20% tax credit for building conversions, reducing taxpayer liability - direct tax relief measure under fiscal management.95% confidence

Sub-Topics Business Taxes Tax Incentives

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in committee · Illinois · House Mar 21, 2025

HB 3808: PROP TX-CIRCUIT BREAKER

Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax relief grants to low/middle-income homeowners facing sudden tax increases, directly reducing their tax burden per bill summary.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Illinois · Senate Jun 2, 2025

SB 1877: EDGE WITHHOLDING-STEEL

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the recycling and melting of steel products and in the manufacturing of new steel wire and rod products may elect to claim the credit under the Act against their withholding tax liability instead of their income tax liability. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit option allowing steel industry to reduce withholding tax liability, a form of targeted tax relief aligning with fiscal responsibility indicators.90% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives

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in committee · Illinois · Senate May 29, 2026

SB 1831: PROP TX-ABATEMENT-RESIDENTIAL

Amends the Property Tax Code. Allows for an abatement of taxes if the property is included in a new residential construction development that is located in a county with fewer than 300,000 inhabitants. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax abatement for new residential developments, reducing tax burden per Property Tax Code amendment.90% confidence ✓ HousingSupports HousingTax abatement for new residential construction incentivizes housing development in smaller counties, aligning with housing advancement goals.85% confidence

Sub-Topics Property Tax Tax Incentives Property Development Property Taxes

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in committee · Illinois · House Feb 6, 2025

HB 2605: INC TX-STANDARD EXEMPTION

HB 2605 increases Illinois' standard income tax exemption for individual taxpayers from $2,050 to $150,000, effective immediately. This change directly affects individual Illinois residents by raising the income threshold before state income tax applies. The bill amends Section 204 of the Illinois Income Tax Act, specifically updating the "basic amount" provision in subsection (b)(8) for taxable years ending after December 31, 2025. This represents a significant policy shift from the prior $2,050 standard, reducing the tax burden for many middle- and lower-income earners.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard tax exemption from $2,050 to $150,000, providing immediate tax relief to middle-income Illinois residents by raising income threshold before tax applies.95% confidence

Sub-Topics Income Tax Tax Incentives

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