Budget & Taxes (Income Tax)

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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in committee · Illinois · Senate May 22, 2026

SB 3624: STATE'S ATTORNEY SALARY

Amends the Counties Code. Provides that, beginning July 1, 2026, each State's Attorney whose term begins after July 1, 2026 shall be compensated at the rate of 100% of the mean of the amount paid to the resident circuit judges in the county courthouse for the State's Attorney.. Provides that the State shall furnish 66 2/3% of the total annual compensation to be paid to each State's Attorney in the State based on the salary in effect on December 31, 1988, and 100% of the increases in salary taking effect after December 31, 1988. Provides that the amount shall be paid from the Personal Property Tax Replacement Fund. Provides that the county shall be responsible for the State and federal income tax reporting and withholding and the employer contributions under the Illinois Pension Code.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates state funding for State's Attorney salaries (66.67% of 1988 rates + 100% increases), directly allocating budget resources for public office compensation.90% confidence

Sub-Topics Income Tax Pensions Property Tax

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in committee · Illinois · Senate May 22, 2026

SB 3765: RAILROAD MOD CREDIT

Creates the Short Line Railroad Modernization Act. Creates an income tax credit for taxpayers that incur qualified railroad expenditures or qualified new rail infrastructure expenditures. Sets forth the amount of the credit and limitations on the amount of the credit that may be awarded. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for railroad expenditures, providing tax relief under Illinois Income Tax Act.90% confidence ✓ TransportationSupports TransportationProvides tax credit for railroad infrastructure investments, directly funding rail modernization under transportation infrastructure95% confidence

Sub-Topics Income Tax Tax Credits Rail

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in committee · Illinois · Senate Apr 23, 2026

SB 3376: 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 mark-to-market tax on ultra-wealthy ($1B+ net assets), generating revenue via new tax on asset appreciation, closing loophole for fiscal responsibility.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jul 9, 2026

SB 3781: INC TX-PROP TX CREDIT

This bill makes Illinois' residential property tax credit refundable starting in 2026. It directly affects homeowners who claim the credit by allowing them to receive a cash refund if the credit amount exceeds their income tax liability. The key change is that taxpayers will get the excess credit amount paid back to them as a refund, rather than only reducing their tax bill. This refund won't count as income for means-tested programs (like food assistance), unless federal law requires otherwise. The change applies to tax years beginning January 1, 2026, and updates the existing credit structure under the Illinois Income Tax Act.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes property tax credit refundable, providing direct tax relief to homeowners by refunding excess credit amount, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 3216: INC TX-EARLY CHILDHOOD

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are employed as an early childhood teacher or an early childhood assistant during the taxable year and who have a federal adjusted gross income for the taxable year of $75,000 or less. Provides that, for taxable years beginning on January 1, 2026 and beginning before January 1, 2027, the amount of the credit is $1,000. Provides that, for subsequent taxable years, the credit amount shall be adjusted by the percentage increase, if any, in the Consumer Price Index for the preceding calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $1,000 income tax credit for early childhood educators with AGI ≤$75k, offering tax relief to lower/middle income public education workers.90% confidence ✓ EducationSupports EducationProvides $1,000 income tax credit for early childhood teachers with AGI under $75k, directly supporting educator compensation in K-12 education.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $1,000 tax credit for early childhood educators under $75k AGI, directly supporting income stability and workforce retention in low-wage education sector.90% confidence

Sub-Topics Income Tax Tax Credits Early Childhood Teachers

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