Budget & Taxes

Amends the Illinois Income Tax Act. Removes a provision that prohibits the aggregate amount awarded for volunteer emergency worker credits from exceeding $5,000,000 in any calendar year. Effective immediately.

Amends the Illinois Housing Development Act and the Illinois Income Tax Act. Provides that the amount of credits awarded under the affordable housing tax donation program is limited to $41,831,227 in State fiscal year 2027 and shall increase by 10% each fiscal year thereafter (currently, $32,850,352 in State fiscal years 2022 and 2023 increased by 5% each fiscal year thereafter). Provides that the affordable housing donation income tax credit applies through the taxable year ending on December 31, 2036 (currently, December 31, 2026). Effective immediately.

Appropriates $26,000,000 from the General Revenue Fund to the Illinois Student Assistance Commission to reimburse public universities and community colleges for costs associated with the Illinois Veteran grant program and the Illinois National Guard and Naval Militia grant program. Effective July 1, 2026.

HB 4653 repeals Illinois' enhanced bonus depreciation deduction from the state income tax law, removing a more generous tax break for businesses. This change directly affects businesses that previously claimed accelerated deductions for equipment purchases. The bill eliminates the specific provision allowing this enhanced deduction, effective immediately upon enactment. The policy change simplifies the tax code by removing this targeted incentive without creating new requirements or benefits.

Appropriates $7,500,000 from the General Revenue Fund to the Department of Human Services for the purpose of making a grant to the Illinois Network of Centers for Independent Living to administer and implement the Home Modification Program. Effective July 1, 2026.

Amends the Property Tax Extension Limitation Law in the Property Tax Code. Provides that special purpose levies made for the purpose of funding a Veterans Assistance Commission are not included in a taxing district's aggregate extension.

Appropriates $18,000,000 from the General Revenue Fund to the Illinois Emergency Management Agency and Office of Homeland Security for deposit into the IEMA State Projects Fund for grants and operational expenses associated with the administration of Illinois' Not-For-Profit Security Grant Program. Effective July 1, 2026.

Amends the Board of Higher Education Act. Subject to appropriation, requires the Board of Higher Education to create a school counselor stipend program. Provides that an educator preparation program shall notify the Board of all eligible students and eligible cooperating school counselors who qualify for the stipend program. Sets forth requirements for the disbursement of stipend funds under the program. Provides that an educator preparation program may not prohibit an eligible student from participating in the stipend program or from receiving a stipend from the stipend program. Requires an eligible cooperating school counselor who receives a stipend to complete specific training. Requires the Board to issue a report, in collaboration with the State Board of Education, evaluating the impact of the stipend program. Permits the Board to adopt emergency rules regarding the administration of the stipend program in certain circumstances. Amends the Illinois Administrative Procedure Act to make corresponding changes. Effective immediately.

Amends the Department of Human Services Act and the State Finance Act. Creates the Operation Midway Blitz Recovery Fund, a special fund in the State treasury, to receive and disburse funds to community-based organizations to provide mental health services and mobilize rapid response networks for Illinois residents affected by immigration enforcement activities. Provides for the transfer of $10,000,000 from the General Revenue Fund to the Operation Midway Blitz Recovery Fund on July 1, 2026 and on July 1, 2027. Effective July 1, 2026.

Amends the Illinois Act on the Aging. Provides that, subject to federal approval, on and after January 1, 2027, rates for in-home services shall be increased to $33.92 to sustain a minimum wage of $20.75 per hour for direct service workers. Requires rates in subsequent State fiscal years to be no lower than the rates put into effect upon federal approval. Provides that in order for a provider of in-home services to be eligible to receive the $33.92 rate, the provider must pay a minimum wage of $20.75 per hour to all direct service workers employed by the provider. Requires providers of in-home services to certify to the Department on Aging that they remain in compliance with the mandated wage increase for direct service workers. Requires each provider of in-home services to submit cost reports to the Department consistent with a specified administrative rule in order to be eligible for the $33.92 rate for in-home services. Provides that fringe benefits shall not be reduced in relation to the described rate increases. Requires the Department, beginning January 1, 2027, to ensure that each in-home service provider spends a minimum of 79% of the total payments the provider receives for home care aide services it furnishes under the Community Care Program on total compensation for direct service workers who furnish those services. Requires annual direct service worker cost reports from providers; and requires the Department to amend existing rules on financial reporting and minimum direct service worker costs to reflect the increase in the direct service worker spending requirement from 77% to 79%.