Budget & Taxes

Amends the Property Tax Code. Provides that a municipality may, by ordinance, designate an area within its jurisdiction as a retail improvement abatement area if the area (i) is a contiguous area, (ii) consists of at least one-half square mile and  not more than 12 square miles, exclusive of lakes and waterways, and (iii) has a vacancy rate for retail properties that exceeds 40% at the time the ordinance is adopted. Provides that owners of retail property that is in a retail improvement abatement area may enter into one or more agreements with any of the taxing districts in which the property is located to abate all or a portion of the taxes levied by the taxing district on the subject property. Provides that the agreement shall require the property owner to make a special payment to the taxing district in lieu of the property taxes that would otherwise be imposed on the property.

Appropriates the sum of $2,100,000 from the General Revenue Fund to the Department of Healthcare and Family Services for a grant to Safer Pathways to support the Supportive Reentry Network Collaborative. Effective July 1, 2026.

Amends the Property Tax Code. Provides that the equalized assessed value of property in a general assessment year, other than long-term ownership property, shall not exceed the equalized assessed value of the property in the immediately preceding general assessment year, increased by the lesser of: (1) 3% of the equalized assessed value of the property for the immediately preceding general assessment year; or (2) the percentage increase, if any, in the Consumer Price Index during the 12-month calendar year preceding the general assessment year for which the property is being reassessed. Provides that the equalized assessed value of long-term ownership property in a general assessment year shall not exceed the equalized assessed value of the property in the immediately preceding general assessment year increased by 2% of the equalized assessed value of the property for the immediately preceding general assessment year. Defines "long-term ownership property". Preempts the power of home rule units to tax. Effective immediately.

Amends the Property Tax Code. Provides that provisions allowing a chief county assessment officer to renew the homestead exemption for persons with disabilities without an annual application apply permanently. Effective immediately.

Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.

Amends the Property Tax Code. Provides that property that is used as a qualified residence by the surviving spouse of a law enforcement officer who was killed in the line of duty at any time prior to the expiration of the application period in effect for the exemption for the taxable year for which the exemption is sought is exempt. Effective immediately.

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.

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.

Creates the Billionaire Hedge Fund Fee Act. Imposes a fee on each covered transaction occurring on or after July 1, 2026. Provides that the amount of the fee shall be the base amount with respect to the covered transaction, multiplied by 0.002. Provides that the term "covered transaction" means: (1) the purchase by a United States person of a security if the purchase occurs on, or is subject to the rules of, the Chicago Board Options Exchange or the Chicago Mercantile Exchange; or (2) the purchase by a United States person of a derivative if the derivative is traded on, or is subject to the rules of, the Chicago Board Options Exchange or the Chicago Mercantile Exchange. Specifies that, for purposes of the Act, "United States person" includes controlled foreign corporations, hedge funds, and private equity funds and their officers and employees. Exempts from the provisions of the Act the purchase of a security or a derivative by an individual for that individual's personal investment account or personal investment portfolio. Provides that the proceeds from the tax imposed under the Act shall be deposited into the Reducing the Cost of Living Fund. Amends the Illinois Administrative Procedure Act. Grants emergency rulemaking powers to the Department of Revenue. Amends the State Finance Act. Create the Reducing the Cost of Living Fund. Effective immediately.

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.