Budget & Taxes (Income Tax)

in committee · Illinois · House Feb 19, 2026

HJRCA 26: CONAMEND-INCOME TAX

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 3% tax on income >$1M to fund property tax relief, directly advancing fiscal management and targeted tax relief per bill's explicit purpose.95% confidence

Sub-Topics Income Tax Property Tax

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in committee · Illinois · House Jan 14, 2026

HB 4350: INC TX-SMALL BUSINESS CREDIT

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100%, but in no event more than $250,000 per taxpayer in any taxable year, of qualified business expenses paid by a qualified small business during the taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 100% tax credit for small business expenses (up to $250k), reducing tax burden and supporting fiscal responsibility for small businesses.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Tags Small Business

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in committee · Illinois · Senate Jan 29, 2026

SB 3064: INC TX-EMERGENCY WORKER

Amends the Illinois Income Tax Act. Removes a provision that prohibits the aggregate amount awarded for volunteer emergency worker credits from exceeding $5,000,000 in any calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $5M annual cap on emergency worker tax credits, enabling increased state spending on these credits without fiscal restriction.92% confidence

Sub-Topics Income Tax

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in committee · Illinois · House May 11, 2026

HB 4413: REVENUE-AFFORDABLE HOUSING

Amends the Illinois Housing Development Act and the Illinois Income Tax Act. Provides that the amount of credits awarded under the affordable housing tax donation program is limited to $41,831,227 in State fiscal year 2027 and shall increase by 10% each fiscal year thereafter (currently, $32,850,352 in State fiscal years 2022 and 2023 increased by 5% each fiscal year thereafter). Provides that the affordable housing donation income tax credit applies through the taxable year ending on December 31, 2036 (currently, December 31, 2026). Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit limit for affordable housing (from $32.8M to $41.8M + 10% annually), increasing funding for housing programs through tax incentives.95% confidence ✓ HousingSupports HousingBill increases annual affordable housing tax credit cap to $41.8M in 2027, growing 10% yearly, directly funding housing programs.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Property Development Property Taxes

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in committee · Illinois · House Feb 6, 2026

HB 4653: INC TX-BONUS DEPRECIATION

HB 4653 repeals Illinois' enhanced bonus depreciation deduction from the state income tax law, removing a more generous tax break for businesses. This change directly affects businesses that previously claimed accelerated deductions for equipment purchases. The bill eliminates the specific provision allowing this enhanced deduction, effective immediately upon enactment. The policy change simplifies the tax code by removing this targeted incentive without creating new requirements or benefits.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals enhanced business tax deduction, removing targeted incentive and restricting tax breaks for corporations.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Illinois · Senate May 22, 2026

SB 2855: ILLINOIS GIVES-SECA

Amends the Voluntary Payroll Deductions Act of 1983. Provides that a qualified community foundation that has been approved by the Department of Revenue to issue certificates of receipt under the Illinois Gives Tax Credit Act shall automatically be considered a qualified organization under the Voluntary Payroll Deductions Act of 1983. 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 those provisions in any calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for volunteer hours, providing tax relief for individuals under Illinois Income Tax Act95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Jun 29, 2026

HB 4294: INC TX-LGDF TRANSFERS

Amends the Illinois Income Tax Act. Increases the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases state transfer to local governments, boosting funding for local public services and government spending via tax fund reallocation.90% confidence

Sub-Topics Income Tax Revenue

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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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