Budget & Taxes (Tax Credits)

in committee · Illinois · Senate Jun 2, 2025

SB 1620: INC TAX-MANUFACTURING

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of the manufacturing capital expenditures. Provides that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for manufacturing capital expenditures, reducing business tax liability and incentivizing investment in rural/economically challenged areas.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Jun 2, 2025

SB 1709: INC TX-FIRE SPRINKLERS

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that credit awards under the amendatory Act shall be limited to the lesser of 2,000 credit awards per year or $8,000,000 in total credits per year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit (50% of sprinkler installation cost, up to $10k) reducing taxable income for homeowners, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 3264: INC TX-ABLE ACCOUNTS

Amends the Illinois Income Tax Act. Creates an income tax credit for contributions to an ABLE account. Provides that the credit shall be in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% income tax credit (up to $500) for ABLE account contributions, providing direct tax relief to contributors and aligning with fiscal responsibility for middle-income savers.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Feb 6, 2025

SB 2025: PREVAILING WAGE-TAX CREDITS

Amends the Illinois Income Tax Act and the Prevailing Wage Act. Provides that certain transferable tax credits are considered public works within the meaning of the Prevailing Wage Act. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables transferable tax credits for public works projects, strengthening fiscal mechanisms to fund infrastructure through tax incentives.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill ensures tax credits for public works comply with prevailing wage laws, protecting worker pay rates under Illinois law.95% confidence

Sub-Topics Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 13: INC TX-ADOPTION

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the foster care expenses, not to exceed $1,000 in any taxable year, paid or incurred by the taxpayer with respect to a qualified dependent child. Provides that the credit may be prorated. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $1,000 tax credit for foster care expenses, providing direct tax relief to families, supporting Budget & Taxes95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 1725: INC TX-LOCAL MEDIA

Amends the Illinois Income Tax Act. Provides that a qualified small business may apply to the Department of Commerce and Economic Opportunity for an income tax credit in an amount equal to the amount paid by the taxpayer during the taxable year for qualified advertising with a local news organization. Provides that the credit may not exceed $2,500 per eligible taxpayer in any taxable year. Provides that the aggregate amount of all tax credits awarded by the Department under the amendatory Act in any calendar year may not exceed $3,000,000. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for small businesses advertising with local news, reducing taxable income and providing tax relief.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Apr 23, 2026

SB 1646: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit ($1,000) for early childhood teachers/assistants with AGI ≤$75k, providing targeted tax relief to lower-income educators and supporting public education funding.92% confidence ✓ EducationSupports EducationProvides $1,000 income tax credit for early childhood teachers with AGI ≤$75k, directly supporting educator compensation and retention in K-12 education.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $1,000 income tax credit for early childhood educators with AGI ≤$75k, increasing disposable income and supporting workforce retention in this labor sector.90% confidence

Sub-Topics Tax Credits Teachers

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in committee · Illinois · House Mar 21, 2025

HB 1853: TREASURER-HIGHER EDUCATION

Amends the State Treasurer Act. Provides that the State Treasurer shall establish and administer the Invest in Illinois Higher Education Program for the purposes of expanding access to higher education through scholarships awarded from the Invest in Illinois Higher Education Fund. Amends the State Finance Act. Creates the Invest in Illinois Higher Education Fund. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to any donations made by the taxpayer to the Invest in Illinois Higher Education Fund. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for donations to fund higher education scholarships, promoting public education funding through tax incentives.95% confidence ✓ EducationSupports EducationCreates Invest in Illinois Higher Education Fund for scholarships, explicitly expanding access to higher education through tax credit incentives.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Apr 28, 2025

HB 1501: INC TX-BEGINNING FARMER

Amends the Illinois Income Tax Act. Creates an income tax credit for an owner of an agricultural asset who sells or rents the agricultural asset to a beginning farmer. Sets forth the amount of the credit. Provides that the amount of the credit awarded with respect to any single sale or lease agreement shall not exceed $50,000 in any taxable year. Provides that the taxpayer shall apply to the Department of Agriculture for credits under the program. Provides that, for taxable years beginning on or after January 1, 2025 and beginning before January 1, 2030, the Department of Agriculture may not approve more than $5,000,000 in credits under the program in any taxable year. Provides that, for taxable years beginning on or after January 1, 2030, the Department of Agriculture may not approve more than $10,000,000 in credits under the program in any taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for agricultural asset sales/leases to beginning farmers, reducing taxable income and providing fiscal relief under Illinois Income Tax Act.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 30, 2025

SB 1835: INC TAX-MANUFACTURING

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 10-15% tax credit for manufacturing capital expenditures, reducing business tax burden and incentivizing investment in rural/economically challenged areas.95% confidence

Sub-Topics Income Tax Tax Credits

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