Budget & Taxes

Amends the State Finance Act. Provides that, within 30 days after July 1, 2026, or as soon thereafter as practical, specified sums shall be transferred from various named funds into the Audit Expense Fund. Effective immediately.

Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately.

Makes appropriations for the ordinary and contingent expenses of the Illinois Labor Relations Board for the fiscal year beginning July 1, 2026, as follows: General Funds $2,855,100.

Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Effective immediately.

SB 4085 is a funding bill that allocates specific sums from various state funds to the Illinois State Treasurer for fiscal year 2027 (ending June 30, 2027). It appropriates $18.68 million for the Treasurer’s operational costs, $1 million for tax refund interest, $28.05 million for pension fund operations, and $3.72 billion for bond payments covering projects like transportation, schools, and pollution control. The bill also funds specific programs, including $2.5 million for the Illinois Higher Education Savings Program and $1 million for arbitrage rebate payments. It takes effect July 1, 2026, and solely directs existing budget allocations without creating new policies.

Appropriates $780,000 from the General Revenue Fund to the Department of Commerce and Economic Opportunity for a grant to the Forest Preserve District of Cook County for the administration and operation of Greencorps Chicago and Forest Preserve Experience programs within the Conservation Corps program. Effective July 1, 2026.

Creates the Local Government Business Anti-Poaching Act. Provides that no municipality or county shall offer after the effective date of the Act any incentive to a business or corporation to move its headquarters located in Illinois, or any part of its business located in Illinois, away from the current location. Defines "incentive". Limits home rule powers. Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Adds 2 factors to the determination of a "blighted area" for improved, industrial, commercial, and residential buildings or improvements: (i) if the redevelopment project area has had an annual average unemployment rate of at least 120% of the State's annual average unemployment rate; and (ii) if the redevelopment project area has a poverty rate of at least 20%, 50% or more of children in the redevelopment project area participate in the federal free lunch program, or 20% or more households in the redevelopment project area receive assistance under the Supplemental Nutrition Assistance Program. Removes or modifies various factors from the definitions of "blighted area" and "conservation area" for improved and vacant areas. Provides that a new redevelopment project shall have a completion date no later than December 31st of the 10th year after the ordinance was adopted (rather than the 23rd year) and may be extended to 15 years (rather than 35 years). Provides that the joint review board and municipality shall approve surplus funds and extensions of redevelopment project area completion dates. Provides that surplus funds shall be distributed annually within 90 days (rather than 180 days) after the close of a municipality's fiscal year. Provides that a new or modified redevelopment project area that overlaps with any existing redevelopment project area shall not be approved. Provides that 10% of the moneys deposited into the special tax allocation fund shall be transferred, by the municipal treasurer, to the local chamber of commerce or chambers of commerce representing the redevelopment project area no later than 30 days after each deposit to the tax allocation fund. Makes other changes. Effective July 1, 2026, except that provisions concerning the Local Government Business Anti-Poaching Act are effective immediately.

Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer who owns, operates, or manages a hotel. Provides that the amount of the credit is equal to 25% of the qualified renovation expenditures incurred during the taxable year, subject to specified limitations. Effective immediately.

Creates the Job Creation Zone Pilot Program Act. Sets forth the boundaries of the job creation zone. Provides that applicants that pledge to hire at least 5 new employees at a designated location within the job creation zone are eligible for credits against their obligation to pay over withholding taxes under the Illinois Income Tax Act. Authorizes an applicant to request a credit award under the Act by making a formal written request or application with the Department of Commerce and Economic Opportunity. Specifies that the amount of the credit may not exceed (i) 50% of the incremental income tax attributable to each new employee during the calendar year in which the new employee is hired and for the first 2 calendar years after the new employee is hired and (ii) 25% of the incremental income tax attributable to each new employee during the third and fourth calendar years after the new employee is hired. Grants the Department of Commerce and Economic Opportunity rulemaking powers to implement and enforce the Act. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.

HB 5721 allocates specific funding from the General Revenue Fund to multiple legislative support agencies for fiscal year 2027 (starting July 1, 2026). It provides $4.79 million for the Commission on Government Forecasting and Accountability’s operations, $1.5 million for pension contributions to the State Employees' Retirement System for legislative staff, and $3.5 million for equipment purchases at the Architect of the Capitol, among other allocations. The bill directly affects internal legislative agencies, including the Legislative Audit Commission, Legislative Ethics Commission, and Legislative Information System, covering their operational and contingent expenses. This is a routine funding measure with no new policy changes, solely ensuring these agencies have budgeted resources for the upcoming fiscal year.