HB 5039 Illinois House · 104th Regular Session

INDUSTRIAL HEMP ACT

Summary
Amends the Illinois Income Tax Act. Creates a corporate income tax deduction for hemp business establishments in an amount equal to 50% of the income generated by the sale of products made by businesses owned by minority and other specific priority-population-owned businesses. Amends the Tobacco Products Tax Act of 1995 to exclude hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products. Amends the Liquor Control Act of 1934 to provide that hemp extract and hemp-cannabinoid products made in compliance with State law are considered fit for human consumption. Authorizes liquor license holders to manufacture, distribute, and sell such products. Amends the Industrial Hemp Act to establish a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, enforcement, and penalties. Creates the Hemp Social Equity Fund to support loans, grants, and technical assistance for social equity applicants. Makes conforming changes to the State Finance Act. Effective January 1, 2027.
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 4, 2026 Last action Mar 27, 2026
Floor votes

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Full legislative history

Actions timeline

Total actions
6
Key actions
1
Committee
4
Mar 27, 2026
Committee
Rule 19(a) / Re-referred to Rules Committee
lower
Mar 26, 2026
Lower · Passed
To Cannabis & Intoxicating Products Subcommittee
lower
Mar 12, 2026
Committee
Assigned to Executive Committee
lower
Feb 10, 2026
Committee
Referred to Rules Committee
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Sonya Harper
Sonya Harper
DDemocratic
IL
6