Budget & Taxes (Tax Credits)

in committee · Illinois · House Apr 28, 2025

HB 1501: INC TX-BEGINNING FARMER

Amends the Illinois Income Tax Act. Creates an income tax credit for an owner of an agricultural asset who sells or rents the agricultural asset to a beginning farmer. Sets forth the amount of the credit. Provides that the amount of the credit awarded with respect to any single sale or lease agreement shall not exceed $50,000 in any taxable year. Provides that the taxpayer shall apply to the Department of Agriculture for credits under the program. Provides that, for taxable years beginning on or after January 1, 2025 and beginning before January 1, 2030, the Department of Agriculture may not approve more than $5,000,000 in credits under the program in any taxable year. Provides that, for taxable years beginning on or after January 1, 2030, the Department of Agriculture may not approve more than $10,000,000 in credits under the program in any taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for agricultural asset sales/leases to beginning farmers, reducing taxable income and providing fiscal relief under Illinois Income Tax Act.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 30, 2025

SB 1835: INC TAX-MANUFACTURING

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 10-15% tax credit for manufacturing capital expenditures, reducing business tax burden and incentivizing investment in rural/economically challenged areas.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate May 30, 2025

SB 1271: DCEO-TAX CREDIT REPORT

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates business and employee tax credits, reducing state tax revenue and weakening tax base per bill's tax credit provisions.92% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates collective bargaining employee tax credit, incentivizing business support for union activities, directly advancing labor rights protections.90% confidence

Sub-Topics Tax Credits Collective Bargaining

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in committee · Illinois · House Aug 17, 2026

HB 2606: INC TX-PREGNANCY RESOURCE

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 50% of the contributions made by the taxpayer during the taxable year to one or more qualifying pregnancy resource centers. Provides that the term "qualifying pregnancy resource center" means a nonprofit organization that is exempt from taxation under Section 501(c) of the Internal Revenue Code and is established for the purpose of providing free assistance to pregnant women in carrying their pregnancies to term.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% income tax credit for donations to pregnancy resource centers, providing tax relief to incentivize support for essential services.95% confidence ✓ HealthcareSupports HealthcareProvides tax credit for donations to pregnancy resource centers offering free assistance to pregnant women, supporting maternal health services access.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 2710: INC TX-FIRE SPRINKLERS

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who have an approved NFPA 13D residential fire sprinkler system installed in a new or existing residential dwelling in the State during the taxable year. Provides that the credit shall be in an amount equal to 50% of the total cost of the installation but not to exceed $10,000 per taxpayer in any taxable year. Provides that credit awards under the amendatory Act shall be limited to the lesser of 2,000 credit awards per year or $8,000,000 in total credits per year. Provides that the credit is exempt from the Act's automatic sunset provisions. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% income tax credit (up to $10k) for residential fire sprinkler installations, providing direct tax relief to homeowners under Illinois Income Tax Act.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Mar 21, 2025

HB 3474: INC TX-COVER CROPS

HB 3474 creates an Illinois income tax credit equal to the cost of planting cover crops for individual taxpayers. It directly affects Illinois farmers and landowners who grow cover crops (plants like grasses, legumes, or wheat grown to protect soil, not for harvest). The credit applies to taxable years beginning January 1, 2026, and can be carried forward for up to five years if it exceeds the current tax liability. The bill does not change tax rates but provides a direct financial incentive for adopting cover crop practices.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for cover crop costs, reducing taxable liability for farmers. Direct financial incentive aligns with tax relief for targeted taxpayers, advancing fiscal support for agricultural practices.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax credit for cover crops, a soil conservation practice that reduces erosion and improves soil health, directly supporting environmental protection.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Mar 5, 2026

SB 2390: 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 & TaxesCreates 1.3% income tax credit for qualified R&D expenses, directly modifying Illinois tax policy to provide targeted tax relief for businesses.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · House Apr 9, 2025

HB 1900: INC TX-CAREGIVERS

Amends the Illinois Income Tax Act. Creates an income tax credit for caregivers who have uncompensated eligible expenditures in connection with the care of an eligible related person during the taxable year. Provides that "eligible related person" means a person who meets certain age and residency requirements, requires assistance with at least one activity of daily living, and qualifies as a dependent, spouse, parent, or other relation of the primary caregiver or has a close association with the primary caregiver, including as a friend or neighbor. Provides that taxpayers shall apply for the credit to the Department on Aging. Sets forth limitations on the amount of the credit. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for caregivers, providing direct tax relief for middle/lower income households caring for dependents, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Feb 27, 2025

SB 227: INC TX-DATA CENTERS

Amends the Illinois Income Tax Act. Provides that, if a taxpayer is awarded a credit by the Department of Commerce and Economic Opportunity in connection with a qualifying Illinois data center located in a qualified area or a data center developed by a minority-owned business, a women-owned business, or a business owned a person with a disability, then the taxpayer is entitled to an additional income tax credit in an amount equal to 5% of the taxpayer's investment in qualified tangible personal property used in the construction or operation of that data center. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 5% income tax credit for qualifying data center investments, incentivizing business development through tax relief.95% confidence ✓ TechnologySupports TechnologyBill provides 5% income tax credit for data center investments, directly funding technology infrastructure development in qualified areas.92% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Illinois · Senate Jun 2, 2025

SB 1993: INC TX-ABLE ACCOUNTS

Amends the Illinois Income Tax Act. Creates an income tax credit for contributions to an ABLE account. Provides that the credit shall be in an amount equal to 25% of that matching contribution, but not to exceed $500 per contributing employee per taxable year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 25% tax credit for ABLE contributions (up to $500), reducing taxable income for contributors. Aligns with tax relief for lower/middle income via targeted credit.85% confidence

Sub-Topics Income Tax Tax Credits

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