Budget & Taxes

in committee · Illinois · Senate Feb 6, 2025

SB 1829: INC TX-STATE AND LOCAL DEDUCT

Amends the Illinois Income Tax Act. Creates a deduction for amounts that are disallowed as a deduction on the taxpayer's federal income tax return because of the $10,000 limitation under the federal Internal Revenue Code on deductions for certain State and local taxes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for state/local tax disallowances under federal cap, providing relief to affected taxpayers per Illinois Income Tax Act amendment.90% confidence

Sub-Topics Income Tax

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in committee · Illinois · House May 7, 2026

HB 9: SCHOOL CD-PROPERTY TAX RELIEF

Amends the School Code. Provides that the State Board of Education shall establish and administer a program to award property tax relief grants to school districts in this State. Provides that, in exchange for receiving a grant, a school district's maximum aggregate property tax extension for the taxable year that begins on January 1 of the fiscal year for which the grant is awarded may not exceed an adjusted maximum aggregate property tax extension for that taxable year. Creates the Education Property Tax Relief Fund as a special fund in the State treasury for the purpose of awarding grants. Sets forth provisions concerning the Education Property Tax Relief Fund. Amends the State Finance Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax relief grants to school districts, reducing their tax burden and aligning with fiscal responsibility in budget management.95% confidence

Sub-Topics Property Tax

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in committee · Illinois · House Feb 6, 2025

HB 2605: INC TX-STANDARD EXEMPTION

HB 2605 increases Illinois' standard income tax exemption for individual taxpayers from $2,050 to $150,000, effective immediately. This change directly affects individual Illinois residents by raising the income threshold before state income tax applies. The bill amends Section 204 of the Illinois Income Tax Act, specifically updating the "basic amount" provision in subsection (b)(8) for taxable years ending after December 31, 2025. This represents a significant policy shift from the prior $2,050 standard, reducing the tax burden for many middle- and lower-income earners.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard tax exemption from $2,050 to $150,000, providing immediate tax relief to middle-income Illinois residents by raising income threshold before tax applies.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · Illinois · House Feb 6, 2025

HB 2798: USE/OCC TX-SCHOOL SUPPLIES

Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesSales tax holiday on school supplies provides temporary tax relief for families, aligning with tax relief indicators for middle/lower income.95% confidence ✓ EducationSupports EducationProvides tax holiday on school supplies, reducing costs for families and improving access to educational materials.95% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate May 22, 2026

SB 1543: INC TX-UNION DUES

Amends the Illinois Income Tax Act. Creates a deduction for the full amount of union dues paid by the taxpayer during the taxable year if the taxpayer was not allowed a federal deduction under the Internal Revenue Code. Provides that, if any amount of union dues representing federal miscellaneous itemized deductions was allowed as a federal deduction, then the amount allowed as an Illinois deduction shall be a specified percentage of the union dues disallowed under the Internal Revenue Code. Provides that the deduction is exempt from the Act's automatic sunset provision. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for union dues, providing relief to workers by reducing taxable income where federal deduction wasn't available. Aligns with tax relief for middle/lower income.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates Illinois tax deduction for union dues, directly supporting collective bargaining and reducing financial burden on union members.90% confidence

Sub-Topics Collective Bargaining

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in committee · Illinois · Senate May 22, 2026

SB 2678: IDOR-PUBLIC PURPOSE TASK FORCE

Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Creates the State Empowerment Task Force. Provides that the State Empowerment Task Force shall study methods by which the State may retain moneys that are otherwise due to the federal government if the federal government impounds or withholds moneys appropriated by Congress to the State. Sets forth the membership of the Task Force. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates task force to retain federal moneys due to state, promoting fiscal responsibility in budget management by preventing loss of allocated funds.95% confidence

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in committee · Illinois · House Mar 27, 2026

HB 4134: PROP TX-PERSONS W/DISABILITY

Amends the Property Tax Code. Provides that, beginning with taxable year 2026, the amount of the homestead exemption for persons with disabilities shall be the greater of (i) $2,000 or (ii) an amount that, when deducted from the property's value as equalized or assessed by the Department of Revenue, will cause the total aggregate property tax liability for the property for the taxable year for which the exemption is claimed to equal a specified base amount. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemption for disabled persons, reducing their tax liability, aligning with tax relief indicators for vulnerable groups.95% confidence ✓ HousingSupports HousingProvides property tax relief for disabled homeowners, reducing housing costs and supporting affordability for a specific group within housing policy.75% confidence

Sub-Topics Property Tax Property Taxes

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in committee · Illinois · House Mar 27, 2026

HB 4080: INC TX-CREDIT-SECURITY-JUDGES

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, a taxpayer who is an eligible member of the judiciary is allowed an income tax credit in an amount equal to the qualified security expenses incurred by the taxpayer during the taxable year. Specifies that the credit may not be carried back and may not reduce the taxpayer's liability to less than zero. Provides that, if the amount of the credit exceeds the taxpayer's tax liability for the taxable year, then the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. Requires the tax credit to be applied to the earliest year for which there is a tax liability. Provides that, if there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. Defines the terms "eligible member of the judiciary", "federal judge", and "qualified security expense". Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides targeted tax credit for judiciary security expenses, reducing taxable income for eligible members. This constitutes tax relief within Budget & Taxes policy area.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Oct 15, 2025

SB 1862: PROP TX-30 YEAR HOMESTEAD

Amends the Property Tax Code. Establishes a homestead exemption for qualified homestead property that has been continuously owned, used, and occupied as the primary residence by the qualified taxpayer for at least 30 years any time prior to January 1 of the taxable year for which the exemption would apply. Requires taxpayers who have been granted an exemption to reapply on an annual basis. Provides that the assessor or chief county assessment officer may determine the eligibility of residential property to receive the homestead exemption by application, visual inspection, questionnaire, or other reasonable methods. Sets forth provisions concerning the review of exemptions granted under the provisions. Defines "qualified homestead property" and "qualified taxpayer". Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for long-term homeowners, reducing tax burden for qualifying residents per Property Tax Code amendment.95% confidence

Sub-Topics Property Tax

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in committee · Illinois · House Oct 15, 2025

HB 4151: USE/OCC TX-CLOTHING

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that the rate of tax on clothing with a selling price of less than $100 shall be 1.25% (currently, 6.25%). Makes changes concerning the distribution of proceeds from the taxes imposed on those sales to provide that 100% of the proceeds are deposited into certain local government funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces clothing tax rate from 6.25% to 1.25% for items under $100, providing direct tax relief for lower-income shoppers on essential goods.90% confidence

Sub-Topics Sales Tax

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