Budget & Taxes (Tax Credits)

in committee · Illinois · Senate May 22, 2026

SB 3791: INC TX-INNOVATION CREDIT

Amends the Illinois Income Tax Act. Provides that a taxpayer shall be allowed an income tax credit in an amount equal to 1.3% of the qualified research expenses made by the taxpayer in Illinois. Provides that the taxpayer is not required to have obtained a research and development credit with respect to his or her federal income taxes to qualify for the Illinois research and development credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 1.3% income tax credit for R&D expenses, reducing business tax burden to incentivize innovation and economic development within state fiscal framework.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 29, 2026

SB 3619: INC TX-HEALTH INSURANCE CREDIT

Amends the Illinois Income Tax Act. Creates an income tax credit for a qualified employer who makes a qualified contribution toward a health reimbursement arrangement for the qualified taxpayer's employees. Provides that the amount of the credit is $400 per covered employee in the first taxable year and $200 per covered employee in the second taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for employers, reducing business tax liability and incentivizing health benefits coverage per employees.90% confidence ✓ HealthcareSupports HealthcareCreates tax credit for employers providing health reimbursement arrangements, expanding employee health insurance access through financial incentives.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employer health benefits, incentivizing expanded employee health coverage under employment standards.90% confidence

Sub-Topics Income Tax Tax Credits Insurance

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in committee · Illinois · House Apr 17, 2026

HB 4841: INC TX-AFFORDABLE HOUSING

HB 4841 permanently extends a 50% tax credit for Illinois taxpayers who donate to affordable housing projects under the Illinois Housing Development Act. It directly affects donors - such as individuals, businesses, and investors - who contribute to qualifying housing developments. The bill removes the previous expiration date (December 31, 2026), making the credit permanent and effective immediately. Taxpayers can apply the credit against state income tax, carry forward excess credits for up to five years, and transfer the credit to eligible projects or other donors.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends permanent 50% tax credit for affordable housing donations, providing tax relief and incentivizing private funding for essential housing programs.92% confidence ✓ HousingSupports HousingPermanently extends 50% tax credit for donations to affordable housing projects, directly increasing funding for development under Illinois Housing Development Act.95% confidence

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

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in committee · Illinois · Senate May 22, 2026

SB 3852: TREASURER-CHILD CARE FUND

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish a Child Care Solutions Pilot Program to make grants to child care centers in pilot communities. Creates the Illinois Child Care Solutions Fund for the purpose of funding the Program. Provides that the Illinois Child Care Solutions Fund may receive private donations. Provides that the State shall provide $2 in matching funds from the General Revenue Fund for each $1 in private donations received by the Fund, provided that the total amount of matching funds may not exceed $3,000,000 in any State fiscal year. Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 75% of the amount donated by the taxpayer during the taxable year to the Illinois Child Care Solutions Fund. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allocates state General Revenue funds ($2 matching) to establish a child care program, directly increasing public service funding under state budget appropriations.95% confidence

Sub-Topics Income Tax Revenue Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 3692: EDGE-AMOUNT OF CREDIT

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that the credit against withholding that is awarded to taxpayers who are primarily engaged in the recycling and melting of steel products and in the manufacturing of new steel wire and rod products shall be 100% of the amount of withholding.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit to 100% for steel recycling/manufacturing businesses, providing direct tax relief under economic development program.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax credit for steel recycling and manufacturing, a recognized environmental conservation practice that conserves resources and reduces pollution.80% confidence

Sub-Topics Tax Credits Tax Incentives Recycling Tags Economic Development

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in committee · Illinois · Senate May 22, 2026

SB 3535: INC TX- PAID TIME OFF

Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer that is an eligible small employer in an amount equal to the amount paid during the taxable year by the eligible small employer to its employees as paid leave that is required by the Paid Leave for All Workers Act. Provides that an eligible small employer is an employer that employs 50 or fewer employees during the taxable year and is subject to the Paid Leave for All Workers Act. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small employers providing paid leave, reducing tax liability and incentivizing compliance with labor law under tax policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for small employers providing mandated paid leave under Paid Leave for All Workers Act, expanding worker benefits and incentivizing compliance with paid leave requirements.95% confidence

Sub-Topics Income Tax Tax Credits Paid Leave

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in committee · Illinois · Senate May 22, 2026

SB 3765: RAILROAD MOD CREDIT

Creates the Short Line Railroad Modernization Act. Creates an income tax credit for taxpayers that incur qualified railroad expenditures or qualified new rail infrastructure expenditures. Sets forth the amount of the credit and limitations on the amount of the credit that may be awarded. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for railroad expenditures, providing tax relief under Illinois Income Tax Act.90% confidence ✓ TransportationSupports TransportationProvides tax credit for railroad infrastructure investments, directly funding rail modernization under transportation infrastructure95% confidence

Sub-Topics Income Tax Tax Credits Rail

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in committee · Illinois · Senate Jul 9, 2026

SB 3781: INC TX-PROP TX CREDIT

This bill makes Illinois' residential property tax credit refundable starting in 2026. It directly affects homeowners who claim the credit by allowing them to receive a cash refund if the credit amount exceeds their income tax liability. The key change is that taxpayers will get the excess credit amount paid back to them as a refund, rather than only reducing their tax bill. This refund won't count as income for means-tested programs (like food assistance), unless federal law requires otherwise. The change applies to tax years beginning January 1, 2026, and updates the existing credit structure under the Illinois Income Tax Act.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes property tax credit refundable, providing direct tax relief to homeowners by refunding excess credit amount, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Property Tax Tax Credits

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in committee · Illinois · Senate May 22, 2026

SB 3216: INC TX-EARLY CHILDHOOD

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are employed as an early childhood teacher or an early childhood assistant during the taxable year and who have a federal adjusted gross income for the taxable year of $75,000 or less. Provides that, for taxable years beginning on January 1, 2026 and beginning before January 1, 2027, the amount of the credit is $1,000. Provides that, for subsequent taxable years, the credit amount shall be adjusted by the percentage increase, if any, in the Consumer Price Index for the preceding calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $1,000 income tax credit for early childhood educators with AGI ≤$75k, offering tax relief to lower/middle income public education workers.90% confidence ✓ EducationSupports EducationProvides $1,000 income tax credit for early childhood teachers with AGI under $75k, directly supporting educator compensation in K-12 education.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $1,000 tax credit for early childhood educators under $75k AGI, directly supporting income stability and workforce retention in low-wage education sector.90% confidence

Sub-Topics Income Tax Tax Credits Early Childhood Teachers

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in committee · Illinois · House May 13, 2026

HB 4923: DISTRESSED FARMERS ACT

Creates the Distressed Farmers Act. Provides that the Department of Agriculture shall fund and administer programs to address the needs of distressed farmers. Amends The Illinois Income Tax Act. Provides that for taxable years beginning on or after January 1, 2026, each taxpayer who is a distressed farmer and who incurs qualified farming expenses during the taxable year is entitled to a tax credit in an amount equal to 100% of those qualified farming expenses, not to exceed $50,000 per taxpayer in any taxable year. Provides that qualified farming expenses include: (1) repairing tractors, trailers, and other vehicles; (2) purchasing, repairing, or constructing greenhouses and other covers for agricultural products; (3) purchasing tractors with tillers and other attachments; and (4) planting or harvesting food that will be delivered to an underserved community.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 100% tax credit for distressed farmers' qualified expenses, reducing tax burden and supporting agricultural sector through targeted tax relief.90% confidence

Sub-Topics Income Tax Procurement Tax Credits

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