Budget & Taxes (Property Tax)

Amends the Budget Stabilization Act. Provides additional scheduled transfers to the Pension Stabilization Fund, sets termination conditions, and clarifies allocation and applicability of payments. Amends the School Code. Establishes a property tax relief grant program for school districts beginning in Fiscal Year 2030, funded from the Education Property Tax Relief Fund. Makes conforming changes in the State Finance Act.

Amends the Illinois Income Tax Act. Increases the tax credit for residential real property taxes from 5% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer to 10% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Proposes to amend the Revenue Article of the Illinois Constitution. Provides that an additional income tax shall be imposed on individuals in an amount equal to 3% of the portion of the individual's income that is greater than $1,000,000 for the taxable year. Provides that the revenue collected from the tax shall be used to provide property tax relief. Effective upon being declared adopted.

Amends the Property Tax Code. In provisions concerning the valuation of wind energy devices, provides that, for taxable year 2027 and thereafter, the real property cost basis is $588,000 per megawatt of nameplate capacity (currently, $360,000 per megawatt of nameplate capacity). In provisions concerning the valuation of solar energy systems, provides that, for taxable year 2027 and thereafter, the real property cost basis is $446,000 per megawatt of nameplate capacity (currently, $218,000 per megawatt of nameplate capacity). Effective immediately.

Amends the Property Tax Code. In provisions concerning the homestead exemption for veterans with disabilities and veterans of World War II, provides that the term "veteran" also includes veterans who were killed in the line of duty but were not Illinois residents at the time of their death. Provides that a requirement that a surviving spouse must be a resident of Illinois from the time of the veteran's death through the taxable year for which the homestead exemption for veterans with disabilities is sought does not apply if the veteran was killed in the line of duty. Effective immediately.

Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the amount of the general homestead exemption is the sum of: (i) $10,000 in counties with 3,000,000 or more inhabitants, $8,000 in counties that are contiguous to a county of 3,000,000 or more inhabitants, and $6,000 in all other counties; plus (ii) the difference between the equalized assessed value for the property in the current taxable year and the equalized assessed value for the property in the base year. Effective immediately.

Amends the Property Tax Code. In provisions concerning notices of increased assessments, provides that the chief county assessment officer shall continue to accept appeals from the taxpayer for a period of not less than 30 business days from the later of the date the assessment notice is mailed or is published on the assessor's website. Effective immediately.

Amends the Property Tax Code. Provides that, for taxable years 2026 and thereafter, the maximum income limitation for the low-income senior citizens assessment freeze homestead exemption is $75,000 for all qualified property (currently, $65,000). Effective immediately.

Amends the Downstate Police Article of the Illinois Pension Code. Provides that, beginning July 1, 2026, any line-of-duty disability pension shall be at least $40,000 per year (instead of $400 per month), without regard to whether the disability or death of the police officer occurred before July 1, 2026. In provisions concerning an annual increase in the line-of-duty disability pension, removes requirements that an applicant must file an affidavit stating that the applicant has not earned any income from gainful employment during the most recently concluded tax year; have service credit in the Fund for at least 7 years of active duty; and have been receiving a line-of-duty disability pension for a period which, when added to the officer's total service credit in the Fund, equals at least 20 years. Provides that, if a disabled police officer is receiving a line-of-duty disability pension and is an annuitant of a municipality that sponsors a group hospital and medical plan that includes police officers or is participating in certain group insurance coverage, then the pension fund shall pay the total monthly premium on behalf of that police officer for such group insurance coverage. Amends the Property Tax Code. Sets forth a homestead exemption for property owned by a person receiving a line-of-duty disability pension in an amount equal to 50% of the equalized or assessed value of the property if the person is age 25 or over and under the age of 36, 75% of the equalized or assessed value of the property if the person is age 36 or over and under the age of 50, and 100% of the equalized or assessed value of the property if the person is age 50 or over. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Amends the Property Tax Extension Limitation Law in the Property Tax Code. Makes changes to the definition of "limiting rate". Provides for alternative referendum procedures for a taxing district to increase its aggregate extension. Effective immediately.