Budget & Taxes (Income Tax)

in committee · Illinois · Senate May 12, 2026

SB 3796: REVENUE-CREDITS-DEDUCTIONS

Amends the Enterprise Zone Act. Provides that certain credits related to high impact businesses do not apply on or after the effective date of the amendatory Act. Amends the Illinois Income Tax Act. Provides that a construction jobs credit does not apply for taxable years ending on or after the effective date of the amendatory Act. Provides that a high impact business construction jobs credit does not apply for taxable years ending on or after the effective date of the amendatory Act. Makes changes concerning the business interest deduction. Creates an addition modification for the federal deduction for domestic research or experimental expenditures. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Makes changes concerning incentives for biodiesel, renewable diesel, and biodiesel blends. Makes other changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes business tax credits (construction jobs, high impact businesses), increasing state revenue and closing tax loopholes per fiscal responsibility indicators.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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in committee · Illinois · Senate Feb 6, 2026

SB 3884: REVENUE-CHILD CARE

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. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois Provides that the Department of Commerce and Economic Opportunity shall develop a child care assistance program that includes child care subsidies and has benchmarks for limiting co-payments, by the year 2030, to no more than 7% of a family's income. Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2027, the corporate income tax rate shall be 9% (currently, 7%). Effective immediately

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes mark-to-market tax on ultra-wealthy ($1B+ net assets), increasing tax revenue from high-net-worth individuals per Illinois Income Tax Act amendments.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Illinois · Senate Jul 9, 2026

SB 3175: INC TX-OVERTIME WAGES

Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to any overtime wages paid to the taxpayer during the taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for overtime wages, providing direct relief to workers by reducing taxable income under Illinois Income Tax Act.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate Jul 9, 2026

SB 3851: USE/OCC TX-EXEMPT PRESCRIPTION

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that prescription medicines and products classified as Class III medical devices by the United States Food and Drug Administration that are used for cancer treatment pursuant to a prescription are exempt from the tax under the Acts. Amends the Illinois Income Tax Act. Increases the amount deposited into the Local Government Distributive Fund to: (i) 7.47% of the net revenue realized from the tax imposed upon individuals, trusts, estates, and pass-through entities; and (ii) 7.85% of the net revenue realized from the tax imposed upon corporations. Effective July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts cancer treatment prescriptions from taxes, providing targeted tax relief for essential medical care under tax acts.85% confidence ✓ HealthcareSupports HealthcareExempts cancer treatment prescriptions from taxes, reducing patient costs and improving access to essential medications per bill's tax exemption provision.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Illinois · Senate Jun 29, 2026

SB 3786: DCEO-TAX CREDIT REPORT

Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates business and employee tax credits under Illinois Income Tax Act, providing tax relief and incentivizing economic activity within state budget framework.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates a collective bargaining employee tax credit, directly supporting workers' right to organize and negotiate, a core labor right.90% confidence

Sub-Topics Income Tax Tax Credits Collective Bargaining

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in committee · Illinois · Senate Jul 9, 2026

SB 3792: INC TX-DEDUCTION FOR TIPS

Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for tips, providing relief to service workers (lower/middle income) by reducing taxable income under Illinois tax law.90% confidence

Sub-Topics Income Tax

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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 Feb 5, 2026

SB 3544: JOB CREATION PILOT PROGRAM ACT

Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits against withholding taxes for businesses hiring 5+ employees in designated zones, reducing tax liability for job creators.95% confidence

Sub-Topics Income Tax Tax Incentives Tags Economic Development

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in committee · Illinois · House Apr 20, 2026

HB 5123: INC TX-PROP TX CREDIT

Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable property tax credit for seniors with low income ($50k AGI), offering targeted tax relief to lower-income residents under Budget & Taxes policy.95% confidence

Sub-Topics Income Tax

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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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