Budget & Taxes (Income Tax)

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 Jan 20, 2026

HR 605: PROGRESSIVE INCOME TAX-OPPOSE

Opposes a progressive income tax in Illinois. Opposes the reconsideration by the Illinois General Assembly of any constitutional amendment intended to change the flat-rate income tax language of subsection (a) of Section 3 of Article IX of the Constitution of Illinois.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill explicitly opposes implementing a progressive income tax in Illinois, maintaining the current flat tax structure and resisting constitutional changes to alter tax rates for higher earners.95% confidence

Sub-Topics Income Tax

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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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in committee · Illinois · Senate May 22, 2026

SB 3025: IL CLEAN ELECTIONS ACT

Creates the Illinois Clean Elections Act. Establishes a voluntary method of public financing of the campaigns of candidates for statewide constitutional offices and the General Assembly. Amends the State Finance Act to create the Illinois Clean Elections Fund as a special fund in the State treasury. Amends the Illinois Income Tax Act to create an individual tax return checkoff in support of the Fund. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates voluntary tax checkoff (amends Income Tax Act) to fund public election financing via new state treasury fund, directly advancing fiscal management of campaign funding.95% confidence

Sub-Topics Income Tax

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in committee · Illinois · Senate May 22, 2026

SB 3072: INC TAX-FUEL COSTS

Amends the Illinois Income Tax Act. Provides that a taxpayer that incurs qualified infrastructure costs in connection with the sale at a qualified retail motor fuel facility in the State of biodiesel, higher blends of ethanol fuel, and renewable diesel is allowed an income tax credit in an amount equal to 30% of those qualified infrastructure costs. Provides that the credit may not exceed $200,000 per qualified facility and $1,000,000 per taxpayer per taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 30% income tax credit for renewable fuel infrastructure costs, reducing tax liability for eligible businesses, aligning with tax relief support indicators.95% confidence ✓ EnergySupports EnergyProvides 30% tax credit for renewable fuel infrastructure (biodiesel/ethanol), directly promoting clean energy adoption and reducing fossil fuel dependence.95% confidence ✓ EnvironmentSupports EnvironmentProvides 30% income tax credit for infrastructure supporting renewable fuels (biodiesel, ethanol blends, renewable diesel), directly promoting clean energy adoption and reducing fossil fuel reliance.90% confidence ✓ TransportationSupports TransportationProvides tax credit for infrastructure supporting renewable fuel retail, advancing sustainable transportation infrastructure funding per bill's focus on qualified infrastructure costs for alternative fuels.95% confidence

Sub-Topics Income Tax Tax Credits Transportation Funding

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