Budget & Taxes

Makes appropriations for the ordinary and contingent expenses of the State Universities Civil Service System for the fiscal year beginning July 1, 2026, as follows: General Funds $1,581,400.

Appropriates $5,000,000 to the Department of Healthcare and Family Services for implementing and administering the Lead-Safe Water for Families Act. Effective July 1, 2026.

Amends the Illinois Income Tax Act. Provides that provisions of the Act that provide that a taxpayer's unitary business group does not include members whose business activity outside the United States is 80% or more of the member's total business activity apply only for taxable years ending before January 1, 2026. Makes corresponding changes to deductions and addition modifications concerning those members of the unitary business group. Provides that, with respect to the term "foreign person", "United States" means the 50 states of the United States, the District of Columbia, the territories and possessions of the United States, and any area over which the United States has asserted jurisdiction or claimed exclusive rights with respect to the exploration for or exploitation of natural resources. Adds provisions concerning joint and several liability of members of a combined reporting group. Effective immediately.

Amends the Hospital Services Trust Fund Article of the Illinois Public Aid Code. In provisions requiring the Department of Healthcare and Family Services to pay safety-net hospitals a low volume add-on payment of $200 for each inpatient General Acute and Psychiatric day of care, removes the December 31, 2026 sunset date for such add-on payments. Effective immediately.

Makes appropriations for the ordinary and contingent expenses of the University of Illinois for the fiscal year beginning July 1, 2026, as follows: General Funds $736,484,400; Other State Funds $10,240,800; Total $746,725,200.

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are the custodians of one or more children who attend an eligible preschool program in the State during the taxable year. Provides that the amount of the credit shall be 100% of the eligible expenses incurred by the taxpayer during the taxable year in sending the child to the eligible preschool program, but not to exceed $1,500 per child. Effective immediately.

Creates the Long-Term Care Trust Act. Establishes the Long-Term Services and Supports Trust Program (Trust Program) within the Department on Aging to provide long-term services and supports funding benefits to eligible employees through payroll deductions to be deposited into the Long-Term Services and Supports Trust Fund created under the Act. Requires the Department on Aging, an actuary contracted with the Department on Aging, and the Department of Revenue to have the responsibilities of implementing and administering the Trust Program. Sets forth the Department on Aging's responsibilities, including, but not limited to: (i) making determinations regarding an individual's status as an eligible beneficiary; (ii) approving long-term services and supports eligible for payment; (iii) registering long-term services and supports providers that meet minimum qualifications; and (iv) disbursing payments of benefits to registered long-term services and supports providers. Requires the Department of Revenue to collect and assess employee premiums under the program, make eligibility determinations, and other responsibilities. Contains provisions on the responsibilities of the contracted actuary; the establishment of a Long-Term Services and Supports Trust Commission and a Long-Term Services and Supports Trust Council; qualifying beneficiary requirements; payroll premiums and the disbursement of benefits; coverage for self-employed individuals; the management of the Long-Term Services and Supports Trust Fund; appeals of benefit determinations; federal waiver requirements; reporting requirements; and other matters. Effective immediately.

Appropriates $2,500,000 from the General Revenue Fund to the Department of Human Services for a grant to the Illinois Prison Project for the purposes of legal support, representation, and education for incarcerated persons in the Illinois Department of Corrections. Effective July 1, 2026.

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that an election to claim the credit against the taxpayer's withholding tax liability also applies to certain taxpayers that are primarily engaged in the business of pharmacy, health, and wellness and that have a corporate headquarters and distribution centers located in Illinois.

Appropriates $10,000,000 from the General Revenue Fund to the Department of Human Services for a grant to Live Free Illinois to cover operational expenses for its Community Healing Resource Center Network. Effective July 1, 2026.