Budget & Taxes

Amends the School Code. Provides that all mandated categorical programs under the Code and the School Breakfast and Lunch Program Act shall be funded at 100% of their required levels as calculated by the State Board of Education, without proration. Provides that, beginning with Fiscal Year 2027, the General Assembly shall appropriate funds for each fiscal year sufficient to fully reimburse school districts for all services and costs under mandated categorical programs, as required under the Code. Requires the State Board to annually provide to the General Assembly, no later than May 1 of each year, the appropriation levels needed to fully fund mandated categorical grant funding for the upcoming fiscal year. With respect to the evidence-based funding formula, provides that the State shall increase annual new State funds to ensure full funding of the formula beginning with Fiscal Year 2027. Requires the State Board to annually determine and report the amount necessary to bring all Tier 1 and Tier 2 organizational units to 100% of their adequacy targets, and requires the General Assembly to appropriate sufficient funds to meet this requirement no later than Fiscal Year 2027. Provides that no organizational unit may receive less than the amount determined under the formula in any fiscal year. Effective immediately.

Amends the Environmental Protection Act. Provides that, on July 1, 2026, and each July 1 thereafter, the State Comptroller shall direct and the State Treasurer shall transfer the sum of $5,000,000 from the Underground Storage Tank Fund to the Brownfields Redevelopment Fund. Provides that, among other things, moneys in the Brownfields Redevelopment Fund may be used for the issuance of grants or providing additional subsidization. Removes provisions limiting the size of grants to municipalities issued under the Municipal Brownfields Redevelopment Grant Program.

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that not more than 5% of all surplus funds in the special tax allocation fund may be distributed. Provides that surplus funds in the special tax allocation fund may be distributed not more than once every 10 years (rather than annually). Provides that, if the termination date for a redevelopment project area is extended beyond the 23rd calendar year after the year in which the ordinance approving the redevelopment project area was adopted, then following the 23rd calendar year, no surplus funds may be distributed until the redevelopment project area is terminated. Effective immediately.

Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual: (i) who is domiciled in this State; (ii) who is eligible for and receives either the general homestead exemption or the general alternative homestead exemption; (iii) who has experienced property tax bill spikes; and (iv) who has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of the person's property tax bill spike. Provides that the maximum amount of grant to which a claimant is entitled is 50% of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.

Makes appropriations for the ordinary and contingent expenses of the Illinois Arts Council for the fiscal year beginning July 1, 2026, as follows: General Funds $24,511,800; Other State Funds $70,000; Federal Funds $1,325,000; Total $25,906,800.

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.

Makes appropriations for the ordinary and contingent expenses of the Department of Labor for the fiscal year beginning July 1, 2026, as follows: General Funds $14,822,800; Other State Funds $6,250,000; Federal Funds $6,400,000; Total $27,472,800.

Amends the Illinois Enterprise Zone Act. Provides that, if a municipality has adopted an enterprise zone pursuant to the Act and subsequently establishes a redevelopment project area pursuant to the Tax Increment Allocation Redevelopment Act, the municipality may provide for a partial abatement of taxes for property located within both the enterprise zone and the redevelopment project area. Provides that, if a municipality has established a redevelopment project area pursuant to Tax Increment Allocation Redevelopment Act and subsequently adopts an enterprise zone that includes property within the redevelopment project area, the municipality may provide for a partial abatement of taxes for property located within both the enterprise zone and the redevelopment project area. Amends the Statewide Innovation Development and Economy Act. Provides that certain local hotel taxes are considered local taxes for purposes of the Act.

Makes appropriations for the ordinary and contingent expenses of the Illinois Law Enforcement Training Standards Board for the fiscal year beginning July 1, 2026, as follows: Other State Funds $133,287,910; Federal Funds $8,000,000; Total $141,287,910.

Creates the Employee Ownership Development Act. Provides that the State Treasurer shall segregate a portion of the Treasurer's State investment portfolio in the Employee Ownership Development Account. Provides that moneys in the Employee Ownership Development Account shall be invested by the State Treasurer to provide employee ownership capital to employee ownership development projects seeking to locate, expand, or remain in the State. Sets forth provisions concerning Employee Ownership Development Account-Recipient Funds. Provides that the Employee Ownership Development Fund is created as a non-appropriated trust fund within the State treasury, which may receive a portion of earnings from the Employee Ownership Development Account. Provides for reporting requirements. Provides that the State Treasurer may adopt rules necessary to implement the Act. Effective immediately.