Budget & Taxes (Tax Credits)

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 · Senate May 30, 2026

SB 2970: ESTATE TAX-SPECIAL USE

Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Makes changes concerning the taxes due under the Act on estates that contain qualified farm property. Provides that, for the purposes of calculating the State Death Tax Credit, those estates are subject to an exemption of $6,000,000 (rather than an exclusion amount of $4,000,000), which shall be deducted from the net estate value after the net estate value is computed in accordance with the Act. Provides that the exemption shall be adjusted each year according to the increase in the Consumer Price Index. Makes changes concerning the calculation of the deceased spousal unused exclusion amount for those estates. Provides for a special use valuation to provide that the value of the qualified farm property shall be calculated without regard to certain limitations under the Internal Revenue Code. Makes changes concerning the definition of "qualified heir". Effective January 1, 2027.

Topics ✗ Budget & TaxesOpposes Budget & TaxesIncreases estate tax exemption for farm property estates, reducing state tax revenue and providing tax break for wealthy landowners.90% confidence

Sub-Topics Tax Credits

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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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in committee · Illinois · Senate May 22, 2026

SB 2744: INC TX-EMPLOYMENT DISABILITIES

Amends the Illinois Income Tax Act. Provides that a taxpayer who employs a person with a developmental disability or a severe mental illness, as certified by the Department of Human Services, during the taxable year is entitled to an income tax credit in an amount equal to 25% of the wages paid by the taxpayer to the person with a developmental disability or severe mental illness, but not to exceed $6,000 in wages paid during the taxable year to any single qualified employee. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% income tax credit for wages paid to disabled workers, reducing employer tax burden to incentivize hiring and support workforce inclusion.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit to employers hiring workers with disabilities, incentivizing employment and supporting workforce inclusion for protected groups.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 14, 2026

SB 3015: ESTATE TAX-MANUFACTURING

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for manufacturing businesses, reducing state estate tax revenue by excluding business interests from taxable estate calculations.92% confidence

Sub-Topics Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 2776: INC TX-AVIATION

Amends the Illinois Income Tax Act. Provides that each taxpayer that makes a donation to an educational improvement organization for aviation during the taxable year may apply to the Department of Commerce and Economic Opportunity for an income tax credit in an amount not to exceed the amount of the taxpayer's donation that is used to provide scholarships for prospective pilots, airline and aerospace mechanics, and other aviation and aerospace professionals as part of a program that operates in this State. Requires educational improvement organizations for aviation to apply to the Department of Commerce and Economic Opportunity to be eligible to accept donations that qualify for the credit. Provides that the Department of Commerce and Economic Opportunity may award no more than $5,000,000 in credits under the program in any calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides income tax credit for aviation education donations, offering tax relief to incentivize private funding of aviation scholarships per Illinois Income Tax Act amendment.95% confidence ✓ EducationSupports EducationProvides tax credits for donations funding aviation scholarships, directly advancing educational access in aerospace fields through financial incentives.92% confidence ✓ TransportationSupports TransportationFunds aviation education scholarships via tax credits, directly supporting transportation workforce development in aviation sector95% confidence

Sub-Topics Income Tax Tax Credits Airports

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in committee · Illinois · House Mar 27, 2026

HB 4513: INC TX-R AND D CREDIT

HB 4513 makes Illinois' research and development (R&D) tax credit permanent, removing its previous temporary status. This change directly affects businesses conducting qualified research activities in Illinois, allowing them to claim the credit indefinitely without needing annual legislative renewal. The bill amends Section 201 of the Illinois Income Tax Act to ensure the R&D credit remains available as a permanent provision, effective immediately upon enactment. It does not alter tax rates or create new requirements for taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes R&D tax credit permanent, providing ongoing tax relief for businesses conducting research, strengthening business incentives within tax policy.95% confidence ✓ TechnologySupports TechnologyPermanently extends R&D tax credit, incentivizing tech innovation and business investment in research without annual renewal requirements.85% confidence

Sub-Topics Income Tax Tax Credits

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