Budget & Taxes (Income Tax)

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 Jul 15, 2026

SB 2763: INC TX-ACA PREMIUMS

Amends the Illinois Income Tax Act. Creates a deduction in an amount equal to the amount paid by the taxpayer during the taxable year as monthly premiums for a health insurance plan bought through the Affordable Care Act (ACA) Marketplace, plus an amount equal to the qualified out-of-pocket medical expenses paid by the taxpayer during the taxable year.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for ACA premiums and medical expenses, reducing taxable income for eligible taxpayers - direct tax relief for middle/lower income individuals.95% confidence ✓ HealthcareSupports HealthcareCreates tax deduction for ACA premiums and out-of-pocket medical expenses, reducing cost burden and encouraging coverage under ACA healthcare marketplace.95% confidence

Sub-Topics Income Tax Insurance

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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 · House Mar 27, 2026

HB 4274: DCEO-MASTER REDEVELOPMENT PLAN

Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for capital contributions under redevelopment plans, providing tax relief per Illinois Income Tax Act amendment.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Illinois · House Jun 4, 2026

HB 4519: 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 included in federal AGI, providing direct tax relief to service workers earning gratuities.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · House Mar 27, 2026

HB 4522: INC TX-STUDENT LOAN REPAYMENT

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deductions for educational assistance, reducing taxable income for employees and employers, aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate May 22, 2026

SB 2963: INC TX-STUDENT LOAN REPAYMENT

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deductions for educational assistance, providing tax relief to taxpayers under Illinois Income Tax Act.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax deduction for employer-paid student loan assistance, expanding employee benefits without direct labor regulation85% confidence

Sub-Topics Income Tax

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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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in committee · Illinois · House Mar 27, 2026

HB 4329: 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, reducing tax burden on service workers (lower/middle income earners), aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax

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