ILLINOIS CPA SOCIETY-CAPITOL OFFICE
State Tax Legislative Tracking Report
104th (2025-1st) General Assembly
Springfield, Illinois
Prepared by: Marty Green
Phone: 2177897914
E-mail: greenm@icpas.org
Report created on July 12, 2025
 
HB792REVENUE-TECH (REP. DAVE VELLA) Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
 Current Status:   3/21/2025 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
 Recent Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
3/20/2025 - House Revenue & Finance
 State Bill Page:   HB792
 Notes:   Income Tax-Gratuity Deduction
 
HB793REVENUE-TECH (REP. HARRY BENTON) Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
 Current Status:   3/21/2025 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
 Recent Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
3/20/2025 - House Revenue & Finance
 State Bill Page:   HB793
 Notes:   Income Tax Deduction-Overtime compensation
 
HB794REVENUE-TECH (REP. MARGARET CROKE) Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB794
 
HB1074INC TX-PROHIBIT E-FILING FEES (REP. JANET YANG ROHR) Amends the Illinois Income Tax Act. Provides that it is unlawful for an income tax return preparer or a software company to charge a separate fee for the electronic filing of returns under the Act. Provides that it is unlawful for a software company to offer for sale a version of its tax software that charges a separate fee for the electronic filing of returns under the Act and a version of the same tax software that does not. Sets forth penalties for violations of the provisions of the amendatory Act.
 Current Status:   4/11/2025 - House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
4/11/2025 - House Bills on Second Reading
 State Bill Page:   HB1074
 Notes:   INCOME TAX-Prohibition of Fees
  • A/O 8 April 25-HA#1 removes the prohibition on tax preparers.   The amendment still has prohibitions for tax software developers.  
  • Prohibits income tax return preparer or software company to charge a separate fee for the electronic filing of returns under the Act.
  • A/O 8 April 25-ICPAS Opposed to original bill, neutral on HA#1
 
HB1093INC TX-NEW BUSINESSES (REP. JED DAVIS) Amends the Illinois Income Tax Act. Creates a deduction for 100% of the income of a qualified new business. Provides that the term "qualified new business' means a business that has its principal place of business in the State and first begins operating in the State during the taxable year. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Income Tax Subcommittee
 State Bill Page:   HB1093
 
HB1147BUILD ILLINOIS HOMES ACT (REP. DAGMARA AVELAR) Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.
 Current Status:   5/28/2025 - Added Co-Sponsor Rep. Kevin John Olickal
 Recent Status:   5/16/2025 - Added Chief Co-Sponsor Rep. Curtis J. Tarver, II
5/16/2025 - Remove Chief Co-Sponsor Rep. Justin Slaughter
 State Bill Page:   HB1147
 
HB1188INC TX-EMPLOYEE RAISES (REP. MAURICE WEST, II) Amends the Illinois Income Tax Act. Provides that an employer with 250 or fewer full-time equivalent employees during the reporting period may claim a credit against the withholding payments for each qualified employee. Provides that a qualified employee is an employee who receives a raise from an employer, whose post-raise annual salary attributable to that employer is not less than $31,200, and who continues to be employed by the employer during the reporting period for which the credit is taken.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Income Tax Subcommittee
 State Bill Page:   HB1188
 Notes:   
 
HB1206HIGHER ED-OFFICER LOAN REPAY (REP. DAVID FRIESS) Amends the Higher Education Student Assistance Act. Provides that the Illinois Student Assistance Commission shall establish the Returning Police Officers Loan Repayment Assistance Program to assist police officers who have left law enforcement with repayment of student loans and in order to help place officers into areas of the State that are the most under-staffed and in need of additional officers. Sets forth qualifications for applicants. Provides that each award under the Program shall be equal to $6,000 per year (i) for up to 5 years or (ii) until the applicant's student loans are paid off, whichever is sooner. Provides that an applicant has one year from the date that the first student loan assistance payment is received to begin work in a shortage area. Provides that applicants currently working in shortage areas are eligible for the Program, but those who left law enforcement due to reasons other than retirement or a permanent disability shall be given priority for the Program. Provides for rulemaking. Effective July 1, 2026.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Appropriations-Higher Education3/13/2025 - House Appropriations-Higher Education
 State Bill Page:   HB1206
 
HB1218INC TX-DEPENDENT TAX CREDIT (REP. ADAM NIEMERG) Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to $1,500 for each person who is claimed as a dependent of the taxpayer for the taxable year under Section 152 of the Internal Revenue Code. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Income Tax Subcommittee
 State Bill Page:   HB1218
 
HB1228MEDICAL CANNABIS-TAX (REP. SONYA HARPER) Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2027.
 Current Status:   1/28/2025 - Referred to House Rules
 Recent Status:   1/28/2025 - FIRST READING
1/10/2025 - Filed with the Clerk by Rep. Sonya M. Harper
 State Bill Page:   HB1228
 
HB1361INC TX-SMALL BUSINESS CREDIT (REP. DEBBIE MEYERS-MARTIN) Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.
 Current Status:   4/7/2025 - Added Co-Sponsor Rep. Martin McLaughlin
 Recent Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
3/20/2025 - House Revenue & Finance
 State Bill Page:   HB1361
 
HB1369INC TX-CAREGIVERS (REP. SUZANNE NESS) Creates the Caring for Caregivers Act. Provides that a taxpayer who is a family caregiver and who incurs eligible expenditures during the taxable year for the care and support of an eligible family member may apply to the Department of Revenue for an income tax credit. Provides that the credit shall be equal to 50% of the eligible expenditures incurred during the taxable year by the family caregiver for the care and support of an eligible family member, subject to certain specified limitations. Amends the Illinois Income Tax Act to make conforming changes. Effective January 1, 2026.
 Current Status:   4/21/2025 - Added Co-Sponsor Rep. Stephanie A. Kifowit
 Recent Status:   4/1/2025 - Added Co-Sponsor Rep. Nicolle Grasse
3/31/2025 - Added Co-Sponsor Rep. Lindsey LaPointe
 State Bill Page:   HB1369
 
HB1396INC TX-FOREIGN TAX (REP. CURTIS TARVER, II) Amends the Illinois Income Tax Act. Provides that provisions concerning a credit for foreign taxes shall be applied without regard to provisions concerning distributions of investment partnership income to nonresident partners. Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB1396
 Notes:   TAX-Investment Partnerships
  • Clarifies the Tax Act's treatment of foreign investment partnership income-out of state income that may be subject to double taxation currently
  • No brainer-fixes an unintended consequence to an earlier change to the definition 
  • Initiative of the Taxpayers Federation of Illinois and the Illinois Venture Capital Association
  • See SB 145
 
HB1424FILM TAX CREDIT-WOMEN IN STEM (REP. JANET YANG ROHR) Amends the Film Production Services Tax Credit Act of 2008. Provides that the credit under the Act shall include an additional amount equal to 30% of the Illinois labor expenditures generated as a result of work performed in Illinois by an actor who portrays, in the production, a woman working in a STEM-related field.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Credit and Incentives Subcommittee
 State Bill Page:   HB1424
 
HB1501INC TX-BEGINNING FARMER (REP. DANIEL SWANSON) 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.
 Current Status:   4/28/2025 - Added Co-Sponsor Rep. Tony M. McCombie
 Recent Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
3/20/2025 - House Revenue & Finance
 State Bill Page:   HB1501
 Notes:   TAX-Agriculture Credit
  • Creates an income tax credit for an owner of an agricultural asset who sells or rents the agricultural asset to a beginning farmer.
 
HB1523REVENUE-TECH (REP. MARCUS EVANS, JR.) Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
 Current Status:   1/28/2025 - Referred to House Rules
 Recent Status:   1/28/2025 - FIRST READING
1/21/2025 - Filed with the Clerk by Rep. Marcus C. Evans, Jr.
 State Bill Page:   HB1523
 
HB1573INC TX-STUDENT LOAN REPAYMENT (REP. KATIE STUART) Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Income Tax Subcommittee
 State Bill Page:   HB1573
 
HB1752INC TX-STUDENT LOAN REPAYMENT (REP. BRADLEY STEPHENS) Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Income Tax Subcommittee
 State Bill Page:   HB1752
 
HB1803INC TX-ENGINEERING STUDENTS (REP. MARTIN MOYLAN) Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ qualified employees. Provides that the term "qualified employee" means an individual who (i) is employed by the taxpayer as an engineer and (ii) graduated from an engineering program at an accredited institution of higher learning with a Bachelor's degree or higher within the 5 years immediately preceding the taxable year. Provides that the credit shall be equal to (i) 10% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program at an accredited institution of higher learning in Illinois or (ii) 5% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program an accredited institution of higher learning not located in Illinois. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Income Tax Subcommittee
 State Bill Page:   HB1803
 
HB1822INTERCHANGE FEE-REPEAL (REP. MARGARET CROKE) Repeals the Interchange Fee Prohibition Act. Effective immediately.
 Current Status:   4/9/2025 - Added Co-Sponsor Rep. Travis Weaver
 Recent Status:   1/28/2025 - Referred to House Rules
1/28/2025 - FIRST READING
 State Bill Page:   HB1822
 
HB1827PROP TX-INCOME PROPERTY (REP. WILLIAM DAVIS) Amends the Property Tax Code. Provides that, in counties with 3,000,000 or more inhabitants, taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before July 1 of each year. Provides that, in counties of fewer than 3,000,000 inhabitants, the county board may provide by ordinance or resolution that taxpayers of income-producing property shall submit income and expense data annually to the chief county assessment officer on or before March 31 of each year. Contains certain exceptions. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Other Taxes Subcommittee
 State Bill Page:   HB1827
 Notes:   
COMMERCIAL REAL ESTATE ASSESSMENTS-Income and Expense Data 
  • Cook County Assessor Initiative
  • Physical description for properties over $500k
  • For 6 continuous years, business community has opposed the Assessors proposal
  • Compulsory information submission requirements-Would require business to submit or allow assessor access to data from commercial properties
  • Penalties for non-compliance
  • See also HB 1829
 
HB1829PROP TX-INCOME PROPERTY (REP. JUSTIN SLAUGHTER) Amends the Property Tax Code. Provides that, in counties in which the county board so provides, by ordinance or resolution, owners of income-producing properties in the county shall file physical descriptions of their properties with the chief county assessment officer upon request of the chief county assessment officer. Sets forth the period of time during which those provisions apply. Provides that the request for information shall include an individualized statement specifying all physical description information that the assessor's office has on record or recorded against the property and shall contain a statement that the owner may confirm the information if no changes are required. Imposes certain penalties if the property owner fails to respond to a request for information. Amends the Freedom of Information Act to provide that financial records and data related to real estate income, expenses, and occupancy submitted by or on behalf of a property owner to a chief county assessment officer, except if submitted as part of an assessment appeal, are exempt from disclosure. Effective immediately.
 Current Status:   4/10/2025 - Added Co-Sponsor Rep. Thaddeus Jones
 Recent Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
3/20/2025 - House Revenue & Finance
 State Bill Page:   HB1829
 Notes:   
COMMERCIAL REAL ESTATE ASSESSMENTS-Income and Expense Data 
  • Cook County Assessor Initiative
  • Physical description for properties over $500k
  • For 6 continuous years, business community has opposed the Assessors proposal
  • Compulsory information submission requirements-Would require business to submit or allow assessor access to data from commercial properties
  • Penalties for non-compliance
  • See also HB 1829
 
HB1832CMS-PROPERTY MANAGEMENT (REP. NICHOLAS SMITH; SEN. BILL CUNNINGHAM) Senate Committee Amendment No. 1 - Replaces everything after the enacting clause. Amends the Civil Administrative Code of Illinois. Makes a technical change in a Section concerning the Department of Central Management Services.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Senate Floor Amendment No. 2 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   HB1832
 Notes:   IDOR INITIATIVE
 
HB1866NEXT GEN 9-1-1 IMPLEMENTATION (REP. ANGELICA GUERRERO-CUELLAR; SEN. BILL CUNNINGHAM) Senate Committee Amendment No. 1 - Replaces everything after the enacting clause. Makes changes to the definitions of terms defined in the Act. Requires a municipality with a population over 500,000 to establish a network to network interface with the State. Provides that, before January 1, 2026, all local public agencies operating a 9-1-1 system shall operate under a plan that has been filed with and approved by the Commission or the Administrator. Makes changes to method of calculating and collecting surcharges imposed under the Act. Provides that an entity engaged in the business of installing, managing, or operating multiline telephone systems in the State shall comply with applicable federal laws. Removes references to "enhanced 9-1-1". Repeals provisions concerning the responsibilities of emergency telephone system boards; local wireless surcharges; grandfathered private residential switch or MLTS 9-1-1 service; grandfathered private business switch or MLTS 9-1-1 service; wireless emergency 9-1-1 service; requirements for MLTS installed after February 16, 2020; compliance with certification of 9-1-1 system providers by the Illinois Commerce Commission; configuration of MLTS; transfer of rights, functions, powers, duties, and property to Illinois State Police; rules and standards; and savings provisions. Provides that the Act is repealed on December 31, 2027 (rather than December 31, 2025). Makes other changes. Effective immediately.

Senate Floor Amendment No. 2 - Changes definitions for the purposes of the Emergency Telephone System Act. Corrects typographical errors. Requires a Joint ETSB created before the effective date of the amendatory Act to adopt and maintain bylaws for the governance and termination of the Joint ETSB within 6 months after the effective date of the amendatory Act. Requires a Joint ETSB created on or after the effective date of the amendatory Act to adopt and maintain bylaws for the governance and termination of the Joint ETSB within 6 months after the creation of the Joint ETSB.
 Current Status:   6/24/2025 - Sent to Governor for Signature
 Recent Status:   6/1/2025 - Passed Both Houses
6/1/2025 - House Concurs
 State Bill Page:   HB1866
 Notes:   911 Phone Tax Surcharge-Extends sunset date
  • Includes language to extend the sunset date of 911 phone tax surcharge
  • City of Chicago legislative priority
  • provides the city with $27.5 M
  • See also HB 3164
 
HB2368ESTATE TAX-COMPUTATION (REP. MARGARET CROKE) Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the amount of the Illinois estate tax shall be the amount of the Illinois taxable estate, multiplied by the Illinois estate tax rate. Sets forth the estate tax rate. Provides that the "Illinois taxable estate" means the decedent's federal gross estate, subject to certain modifications, including a deduction in the amount of $4,000,000. Makes conforming changes with respect to the generation-skipping transfer tax. Effective immediately.
 Current Status:   5/22/2025 - House Revenue & Finance
 Recent Status:   5/20/2025 - Motion to Suspend Rule 21 - Prevailed 005-000-000
5/20/2025 - Motion Filed to Suspend Rule 21 Rules Committee; Rep. Bob Morgan
 State Bill Page:   HB2368
 Notes:   Estate Tax Reform Proposal
  • Modifies the estate tax exemption amount including creating a new Illinois estate tax rate exemtpion amount and scope of estate

 
HB2403REVENUE-MEGAPROJECTS (REP. JAY HOFFMAN) Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Credit and Incentives Subcommittee
 State Bill Page:   HB2403
 Notes:   MEGAS PROJECTS
  • Would allow megaprojects to enter into agreements with state agencies and local government 
  • certification as 'megaproject' that meets certain investment, job creation, labor, and diversity in contracting goals 
  • Property Tax assessment freeze and other economic benefits related to the project in exchange for and addition to job and investment requirements
  • the owner would agree to make special payments each year to local taxing districts to include school districts.
  • Model for sports teams to use
 
HB2483INC TX-SURPLUS FUNDS (REP. AMY BRIEL) Amends the Illinois Income Tax Act. In provisions concerning transfers of surplus moneys from the Income Tax Refund Fund to the General Revenue Fund, provides that "surplus" means the cash balance in the Income Tax Refund Fund at the end of the applicable fiscal year, less amounts attributable to certain specified transfers. Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - Chief Sponsor Changed to Rep. Amy Briel
 State Bill Page:   HB2483
 Notes:   IDOR INITIATIVE
 
HB2520PROP TX-SENIOR FREEZE (REP. MAURA HIRSCHAUER) Amends the Property Tax Code. Provides that, for the purpose of the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, the term "household" includes only the applicant and the applicant's spouse (currently, the applicant, the spouse of the applicant, and all persons using the residence of the applicant as their principal place of residence). Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Other Taxes Subcommittee
 State Bill Page:   HB2520
 
HB2686REVENUE-LOCAL DISTRIBUTIONS (REP. WILLIAM DAVIS) Amends the State Finance Act and the State Revenue Sharing Act. Provides that certain provisions concerning distributions from the State and Local Sales Tax Reform Fund and from the Local Government Distributive Fund constitute an irrevocable and continuing appropriation. Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB2686
 Notes:   IDOR INITIATIVE
 
HB2697INC TX-ESTIMATED TAX (REP. CURTIS TARVER, II) Amends the Illinois Income Tax Act. In provisions concerning the estimated tax, provides that the required annual payment is the lesser of: (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for the year; (ii) 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and the preceding year was a taxable year of 12 months; or (iii) 90% of the tax for the taxable year that would have been due based on the Act as it exists on the first day of the taxable year. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Income Tax Subcommittee
 State Bill Page:   HB2697
 Notes:   TAXPAYER-Annual Payment
Taxpayers Federation of Illinois Initiative
  • Provides that if the General Assembly amends the law in the middle of the tax year increasing the taxpayer's liability the taxpayer would pay the difference with their return.
  • See House Companion Bill SB 2041
 
HB2702INC TX-PASS-THROUGH ENTITIES (REP. CURTIS TARVER, II) Amends the Illinois Income Tax Act. Removes provisions providing that the pass-through entity level election applies only for tax years beginning prior to January 1, 2026. Effective immediately.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Income Tax Subcommittee
 State Bill Page:   HB2702
 Notes:   TAX-PTE
Taxpayers Federation of Illinois Bill
  • A/O 4/1-ICPAS spoke with Chair Tarver and expressed support. Most likely this bill will be a part of a Revenue Omnibus Package.
  • Extends the optional pass-through entity tax as long as the limitation on state and local taxes exists under 26 U.S.C. 164(b)(6)
  • Senate companion bill-SB2021
  • ICPAS SUPPORTS
 
HB2767REVENUE-E-FILE (REP. JOE SOSNOWSKI) Amends the Retailers' Occupation Tax Act. Provides that certificates of registration shall be issued in the form and manner required by the Department of Revenue. Provides that certificates of registration shall be displayed in the manner and form as the Department of Revenue may require by rule. Amends the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995. Provides that certain returns and supporting schedules shall be filed and payments shall be made by electronic means. Effective immediately, except that provisions amending the Cigarette Machine Operators' Occupation Tax Act, the Cigarette Tax Act, the Cigarette Use Tax Act, and the Tobacco Products Tax Act of 1995 take effect January 1, 2026.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB2767
 Notes:   ELECTRONIC FILING
IDOR INITIATIVE
 
HB2899TAX-REMOTE RETAILER PROGRAM (REP. CURTIS TARVER, II) Amends the Retailers' Occupation Tax Act. Creates the Remote Retailer Amnesty Program. Requires the Department of Revenue to establish the Remote Retailer Amnesty Program for remote retailers owing State and local retailers' occupation taxes that are administered by the Department. Provides that the Program shall operate for a period from August 1, 2026 through October 31, 2026. Provides that the Program shall include a simplified retailers' occupation tax rate designed to allow a remote retailer who participates in the Program to report and remit at the authorized simplified retailers' occupation tax rate in lieu of the retailers' occupation tax rate otherwise due on sales made to Illinois customers. Provides that, upon payment by a remote retailer of all taxes due from that remote retailer using the simplified retailers' occupation tax rate for the eligible period, the Department shall abate and not seek to collect any interest or penalties that may be applicable, and the Department shall not seek civil or criminal prosecution against the remote retailer for the period of time for which amnesty has been granted to the taxpayer. Creates conditions for the provision of amnesty and remittance of local retailers' occupation tax under the Program. Provides conditions for the depositing of the net revenue realized under the Program. Provides that the Department shall have exclusive responsibility for reviewing and accepting applications for participation in the Program, as well as reviewing the eligibility of participants in the Program. Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB2899
 Notes:   REMOTE RETAILERS-Amnesty Program
IDOR INITIATIVE
  • Creates the Remote Retailer Amnesty Program
  • Would allow remote retailers to pay single, simplified rate of either 9% or 1.75% for any owed sales tax, w/o having to pay penalties or interest
 
HB2903USE/OCC TX-COMMON SCHOOL (REP. FRED CRESPO) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, of the remainder of the moneys received under the Acts after certain deposits have been made, 75% shall be deposited into the General Revenue Fund and 25% shall be deposited into the Common School Fund (currently, 75% shall be paid into the State Treasury and 25% shall be reserved in a special account and used only for the transfer to the Common School Fund as part of a specified monthly transfer). Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB2903
 Notes:   IDOR INITIATIVE
 
HB2982MINIMUM WAGE-GRATUITIES (REP. LISA HERNANDEZ) Amends the Minimum Wage Law. Provides that, on and after July 1, 2027, an employer shall not be entitled to an allowance for gratuities and shall pay each employee no less than the applicable minimum wage rate, including any minimum wage rate established by a municipality that is higher than the minimum wage rate provided in the Act. Provides for additional notice requirements that employers must provide to employees who receive gratuities. Provides that any employer or his agent, or the officer or agent of any private employer who violates that provision shall be liable to the Department of Labor for a penalty of up to $1,500 per day for each violation, payable to the Department's Wage Theft Enforcement Fund. Provides that every employer shall provide each employee who receives gratuities a notice containing specified information concerning the rate of pay. Amends the Illinois Wage Payment and Collection Act. Provides that no employer shall withhold from gratuities paid by credit card any credit card processing fees that the employer must pay in connection with the transaction. Provides that any service charge imposed by an employer on a customer shall be a gratuity and is the property of the employees. Effective July 1, 2025.

House Committee Amendment No. 1 - Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025 and ending before January 1, 2028, each taxpayer who employs an eligible tipped employee and does not take an allowance against the full minimum wage is entitled to a tax credit in each of those taxable years in an amount equal to the product of $1.50 multiplied by the total number of hours for which an allowance could have been claimed by the employer in the taxable year for eligible tipped employees but was not claimed by the employer in that taxable year. Effective July 1, 2025.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB2982
 Notes:   Eliminate tipped tax credit,
 
HB3022LIQUOR CONTROL-PROCEEDS (REP. WILL GUZZARDI) Amends the Liquor Control Act of 1934. Provides that, beginning on July 1, 2025, the proceeds from the tax imposed by the Act shall be deposited as follows: (1) 43% into the Capital Projects Fund; and (2) 57% into the General Revenue Fund. Effective immediately.
 Current Status:   4/11/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   4/11/2025 - House Bills on Second Reading
4/10/2025 - House Bills on Second Reading
 State Bill Page:   HB3022
 Notes:   IDOR INITIATIVE
 
HB3025INCOME TAX-TECH (REP. NATALIE MANLEY) Amends the Illinois Income Tax Act. Makes a technical change in a provision concerning the imposition of tax under the Act.
 Current Status:   2/6/2025 - Referred to House Rules
 Recent Status:   2/6/2025 - FIRST READING
2/6/2025 - Filed with the Clerk by Rep. Natalie A. Manley
 State Bill Page:   HB3025
 Notes:   ICPAS INITIATIVE-PTE Extension
-Shell Bill
 
HB3094TRANSPORTATION BENEFIT PROGRAM (REP. THERESA MAH; SEN. RAM VILLIVALAM) Amends the Transportation Benefits Program Act. Provides that the Act does not apply to a covered employer in the construction industry with respect to employees with whom the covered employer has entered into a bona fide collective bargaining agreement. Makes changes to definitions.
 Current Status:   6/20/2025 - Sent to Governor for Signature
 Recent Status:   5/22/2025 - Passed Both Houses
5/22/2025 - Third Reading - Passed; 044-013-000
 State Bill Page:   HB3094
 Notes:   TRANSPORATION BENEFIT PROGRAM
Expands the program by # of employees
 
HB3146PROP TX-SURPLUS SALE (REP. WILL GUZZARDI) Amends the Property Tax Code. Provides that, when the county, as trustee, files one petition for more than one delinquent tax lien or certificate, the county may request that the court issue a tax deed to the county, as trustee, without holding a judicial tax deed auction. Provides that the county shall offer the parcel for sale at a public auction within 120 days of recording the tax deed. Sets forth requirements for the county auction. Provides that any owner of property sold under any provision of the Code who sustains loss or damage by reason of the issuance of a tax deed shall have the right to recover surplus equity that was lost in the property through an award of indemnity. Amends the Mortgage Rescue Fraud Act. Provides that a distressed property conveyance contract must contain a statement that the property owner may have the right to obtain money for any equity lost if a tax deed is issued. Effective immediately.
 Current Status:   5/15/2025 - House Revenue & Finance
 Recent Status:   5/9/2025 - Added Co-Sponsor Rep. Dagmara Avelar
4/21/2025 - Added Co-Sponsor Rep. Stephanie A. Kifowit
 State Bill Page:   HB3146
 Notes:   PROPERTY TAX-Tax Sales
  • House Bill 3146 would harmonize provisions of the existing code with the Tyler decision outlined below by proposing that property owners whose taxes are delinquent and a tax sale occurs should have the right to recover surplus equity that was lost. 

  • County Officials challenge Unconstitutional Provisions of the Illinois Property Tax Code

  • Seven county officers from DuPage, Lake, Peoria, Carroll andBoone counties are suing officials of the State of Illinois (Henry v. Raul etal) over provisions of the Illinois Property Tax Code
  • Generally, these provisions have been declaredUnconstitutional by the U.S. Supreme Court in Tyler v. Hennepin County 
  • Counties that sell  a property’s title in order to collectdelinquent property taxes, it steals any equity the property owner may have hadin that property violating the Fifth Amendment’s guarantee that the governmentwon’t take away private property. 
  • The county officials assert in theirpleadings in the United States District Court for the Northern District ofIllinois that provisions of the Illinois Property Tax Code require them toeither violate the terms of the high court’s Tyler decision or, be sued bytaxing bodies for failing to collect property taxes.  

https://www.scribd.com/document/852396007/DuPage-v-Illinois-complaint 

https://www.supremecourt.gov/opinions/22pdf/22-166_8n59.pdf

 
HB3150USE/OCC TAX-VENDOR DISCOUNT (REP. KYLE MOORE) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and the Prepaid Wireless 9-1-1 Surcharge Act. Provides that provisions limiting the vendor's discount to $1,000 per month do not apply on and after the effective date of the amendatory Act.
 Current Status:   2/18/2025 - Referred to House Rules
 Recent Status:   2/18/2025 - FIRST READING
2/6/2025 - Filed with the Clerk by Rep. Kyle Moore
 State Bill Page:   HB3150
 
HB3164EMERGENCY TELEPHONE-SURCHARGE (REP. KAM BUCKNER; SEN. SARA FEIGENHOLTZ) Amends the Emergency Telephone System Act. Provides that, until December 31, 2027 (currently, December 31, 2025), a municipality with a population over 500,000 may not impose a monthly surcharge in excess of $5 per network connection. Provides that, on and after January 1, 2028 (currently, January 1, 2026), a municipality with a population over 500,000 may not impose a monthly surcharge in excess of $2.50 per network connection. Provides that, until December 31, 2027 (currently, December 31, 2025), a municipality with a population over 500,000 may by ordinance continue to impose and collect a monthly surcharge per commercial mobile radio service (CMRS) connection or in-service telephone number billed on a monthly basis that does not exceed $5. Provides that, on and after January 1, 2028 (currently, January 1, 2026), a municipality with a population over 500,000 may continue imposing and collecting its wireless carrier surcharge subject to certain limitations. Effective immediately.
 Current Status:   4/14/2025 - Referred to Senate Assignments
 Recent Status:   4/14/2025 - FIRST READING
4/14/2025 - Chief Senate Sponsor Sen. Sara Feigenholtz
 State Bill Page:   HB3164
 Notes:   911 Phone Tax Surcharge-Extends sunset date
  • Includes language to extend the sunset date of 911 phone tax surcharge
  • City of Chicago legislative priority
  • provides the city with $27.5 M
  • See also HB 1866
 
HB3338REVENUE-PROP TX REPLACE (REP. THADDEUS JONES) Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that the Department of Revenue, in consultation with the Governor's Office of Management and Budget, shall conduct a study to determine the feasibility of eliminating, by no later than January 1, 2030, the property tax system in the State and replacing that revenue with income tax receipts.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Other Taxes Subcommittee
 State Bill Page:   HB3338
 Notes:   PROPERTY TAX-Feasibility of Eliminating Property Tax
  • Requires state to conduct a feasibility study on eliminating the property tax no later than 1 Jan 2030
  • Requires proposed spending cuts OR an increased income tax rate to facilitate the change
  • To accommodate the elimination, tax collections would need to rise by 137% w/ individual and corporate taxes
  • Individual/corporate would have to rise by 96%
 
HB3588LIMITED LIABILITY-PROP TAX (REP. RITA MAYFIELD) Amends the Limited Liability Company Act. Provides that a single-member limited liability company shall be considered a single taxpayer and may appeal an assessment under specified provisions of the Property Tax Code.
 Current Status:   3/21/2025 - Rule 19(a) / Re-referred to Rules Committee
 Recent Status:   3/20/2025 - House Revenue & Finance3/20/2025 - House Tax Policy: Other Taxes Subcommittee
 State Bill Page:   HB3588
 Notes:   
  • Provides for a single member of the LLC to represent themselves.
 
HB3682CANNABIS REFORM (REP. BOB MORGAN) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2025, "prescription and nonprescription medicines and drugs" includes cannabis purchased by a qualified registered patient, provisional patient, or designated caregiver from a dispensing organization registered under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act. Amends the Compassionate Use of Medical Cannabis Program Act. Adds, changes, and provides for the repeal of certain definitions. Makes conforming changes to terms in the Act. Sunsets certain provisions on June 30, 2025. Adds references to the Cannabis Regulation and Tax Act, supplanting certain provisions in the Act on July 1, 2025. Provides for repeal of certain provisions on January 1, 2026, subjecting certain activities to the Cannabis Regulation and Tax Act. Repeals certain provisions. Amends the Cannabis Regulation and Tax Act. Adds and changes definitions. Makes conforming changes to terms in the Act. Removes certain references and provides for repeal of certain provisions related to the Compassionate Use of Medical Cannabis Program Act. Makes provisions regarding mergers of certain licenses and medical patient prioritization. Provides for Adult Use Dispensing Organization licensee relocation. Provides for rescission of a conditional license, with certain requirements. Makes changes to provisions regarding Adult Use Dispensing Organization Licenses. Adds to requirements for Responsible Vendor Program Training modules. Adds new prohibitions and exceptions to provisions regarding changes to a dispensing organization. Requires prioritizing qualifying patients, provisional patients, and dedicated caregivers, with certain requirements. Adds certain State agencies and local health officials to provisions regarding investigations. Makes changes to provisions regarding Cultivation Center Licenses. Makes other changes.
 Current Status:   2/18/2025 - Referred to House Rules
 Recent Status:   2/18/2025 - FIRST READING
2/7/2025 - Filed with the Clerk by Rep. Bob Morgan
 State Bill Page:   HB3682
 
HB3776INC TX-NOL LIMITATION (REP. TRAVIS WEAVER) Amends the Illinois Income Tax Act. Removes a provision providing that no carryover deduction shall exceed $500,000 for any taxable year ending on or after December 31, 2024 and prior to December 31, 2027. Provides that the limitation is inapplicable for all tax years ending on or after December 31, 2024. Effective immediately.
 Current Status:   2/18/2025 - Referred to House Rules
 Recent Status:   2/18/2025 - FIRST READING
2/7/2025 - Filed with the Clerk by Rep. Travis Weaver
 State Bill Page:   HB3776
 
HB4080INC TX-CREDIT-SECURITY-JUDGES (REP. MARCUS EVANS, JR.) Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, a taxpayer who is an eligible member of the judiciary is allowed an income tax credit in an amount equal to the qualified security expenses incurred by the taxpayer during the taxable year. Specifies that the credit may not be carried back and may not reduce the taxpayer's liability to less than zero. Provides that, if the amount of the credit exceeds the taxpayer's tax liability for the taxable year, then the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. Requires the tax credit to be applied to the earliest year for which there is a tax liability. Provides that, if there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first. Defines the terms "eligible member of the judiciary", "federal judge", and "qualified security expense". Effective immediately.
 Current Status:   7/2/2025 - Filed with the Clerk by Rep. Marcus C. Evans, Jr.
 Recent Status:   
 State Bill Page:   HB4080
 Notes:   INCOME TAX-Deduction (Judicial Security)
 
HC8REVENUE-EDUCATION (REP. CURTIS TARVER, II) Proposes to amend the Revenue Article of the Illinois Constitution. Provides that an additional income tax shall be imposed on individuals in an amount equal to 3% of the portion of the individual's income that is greater than $1,000,000 for the taxable year. Provides that the revenue collected from the tax shall be distributed to school districts on a per pupil basis. Effective upon being declared adopted.
 Current Status:   1/29/2025 - Referred to House Rules
 Recent Status:   1/29/2025 - Read in Full a First Time
1/28/2025 - Filed with the Clerk by Rep. Curtis J. Tarver, II
 State Bill Page:   HC8
 
HC16CONAMEND-INCOME TAX RATES (REP. ABDELNASSER RASHID) Proposes to amend the Revenue Article of the Illinois Constitution. Removes a provision that provides that a tax on income shall be measured at a non-graduated rate. Provides that the General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State (currently, there may be no more than one such tax imposed by the State on individuals and one such tax so imposed on corporations). Provides that the highest rate of tax imposed on corporations may not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5. Effective upon being declared adopted.
 Current Status:   5/1/2025 - Referred to House Rules
 Recent Status:   5/1/2025 - Read in Full a First Time
5/1/2025 - Added Co-Sponsor Rep. Barbara Hernandez
 State Bill Page:   HC16
 
HJ18TAX REVENUE POLICIES (REP. WILLIAM DAVIS) Urges the State of Illinois to make needed investments in Illinois communities by raising $6 billion in new revenue from the ultra-wealthy and mega-corporations. Affirms that, in addition to funding these critically-needed services, implementing these revenue policies will have the benefit of making our State's tax system less unfair to the lowest income Illinoisans.
 Current Status:   5/23/2025 - Added Co-Sponsor Rep. Sonya M. Harper
 Recent Status:   5/20/2025 - Added Co-Sponsor Rep. La Shawn K. Ford
5/1/2025 - Added Co-Sponsor Rep. Lindsey LaPointe
 State Bill Page:   HJ18
 
SB5METROPOLITAN MOBILITY AUTH ACT (SEN. RAM VILLIVALAM) Creates the Metropolitan Mobility Authority Act. Establishes the Metropolitan Mobility Authority. Provides that the Chicago Transit Authority, the Commuter Rail Division and the Suburban Bus Division of the Regional Transportation Authority, and the Regional Transportation Authority are consolidated into the Metropolitan Mobility Authority and the Service Boards are abolished. Creates the Suburban Bus Operating Division, Commuter Rail Operating Division, and the Chicago Transit Operating Division. Reinserts, reorganizes, and changes some provisions from the Metropolitan Transit Authority Act and the Regional Transportation Authority Act into the new Act. Includes provisions concerning the operation of the Metropolitan Mobility Authority. Repeals the Metropolitan Transit Authority Act and the Regional Transportation Authority Act. Amends various Acts, Laws, and Codes to make conforming changes. Creates the Equitable Transit-Supportive Development Act. Establishes the Office of Equitable Transit-Oriented Development and the Transit-Supportive Development Fund. Provides that the Office and the Fund are to aid transit-supportive development near high-quality transit by providing specified funding to municipalities that have adopted the standards in the transit support overlay district for that area or that have adopted zoning and other changes that the Office determines have benefits greater than or equal to such a District, including transit support overlay districts. Includes provisions relating to Office standards, procedures, and reports. Amends the State Finance Act to make a conforming change. Amends the Department of Transportation Law of the Civil Administrative Code. Requires the Department to establish, staff, and support an Office of Public Transportation Support for the purpose of optimizing the operation of public transportation vehicles and the delivery of public transportation services on highways under the Department's jurisdiction in the Metropolitan Mobility Authority's metropolitan region. Describes the duties and operations of the Office. Amends the Toll Highway Act. Provides that the Chair of the Metropolitan Mobility Authority is a nonvoting member of the Illinois State Toll Highway Authority.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB5
 Notes:   PUBLIC TRANSIT-Consolidation
  • CETA-Clean and Equitable Transportation Act
  • Combines public transit agencies under one umbrella
  • See also HB 1938
 
SB72INCOME TAX-TUITION CREDIT (SEN. LAURA MURPHY) Amends the Illinois Income Tax Act. Provides that a taxpayer who may claim a qualifying student as a dependent is allowed a credit of up to $2,000 for qualified tuition and fee expenses paid by the taxpayer. Provides that the term qualifying student means a person who (i) is a resident of the State, (ii) is under the age of 24 at the close of the school year for which a credit is sought, and (iii) during the school year for which a credit is sought, is a full-time student enrolled in a program at a qualifying college or university. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB72
 
SB137USE/OCC TX-VENDOR DISCOUNT (SEN. CRAIG WILCOX) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, if the retailer or serviceman reports less than $50,000 in sales during the month for which the return is filed, then the vendor's discount for that retailer or serviceman shall be 3.5% (currently, 1.75%) of the amount collected or $5 per calendar year, whichever is greater. Effective immediately.
 Current Status:   5/30/2025 - Added as Co-Sponsor Sen. Chris Balkema
 Recent Status:   1/17/2025 - Referred to Senate Assignments
1/17/2025 - FIRST READING
 State Bill Page:   SB137
 
SB139ESTATE TAX-EXCLUSION AMOUNT (SEN. JIL TRACY) Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code as that Section exists on the effective date of the amendatory Act, including the inflation adjustment and including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.
 Current Status:   5/21/2025 - Added as Co-Sponsor Sen. Dale Fowler
 Recent Status:   5/6/2025 - Added as Co-Sponsor Sen. Sue Rezin
2/20/2025 - Added as Co-Sponsor Sen. Donald P. DeWitte
 State Bill Page:   SB139
 
SB145INC TX-FOREIGN TAX (SEN. BILL CUNNINGHAM) Amends the Illinois Income Tax Act. Provides that provisions concerning a credit for foreign taxes shall be applied without regard to provisions concerning distributions of investment partnership income to nonresident partners. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB145
 Notes:   TAX-Investment Partnerships
  • Clarifies the Tax Act's treatment of foreign investment partnership income-out of state income that may be subject to double taxation currently
  • Initiative of the Taxpayers Federation of Illinois and the Illinois Venture Capital Association
  • See HB1396
 
SB146INC TX-SMALL BUSINESS CREDIT (SEN. BILL CUNNINGHAM) Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB146
 
SB752REVENUE-TECH (SEN. CRISTINA CASTRO) Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning the short title.
 Current Status:   7/2/2025 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 Recent Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
6/2/2025 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   SB752
 Notes:   

SALES TAX-Wayfair nexus + remote retailer/marketplace provisions

  • Beginning in 2026, a retailermaking sales to purchasers in Illinois from outside of Illinois is considered a“retailer maintaining a place of business in this State” if the retailer'scumulative gross receipts from sales to purchasers in Illinois are $100,000 ormore.
  • (Per-transaction portion of thenexus test).
  • Makes similar changes to“marketplace facilitators.”
  • The bill would also restrict theability of IDOR to apply the amount of any credit memorandum due to a taxpayeragainst any amount of tax or penalty or interest due from the taxpayer foramounts due under several tax acts. Makes other changes. 

 
SB753REVENUE-TECH (SEN. OMAR AQUINO) Amends the Electricity Excise Tax Law. Makes a technical change in a Section concerning the short title.
 Current Status:   7/2/2025 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 Recent Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
6/2/2025 - Senate Floor Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   SB753
 Notes:   INCOME TAX-CHILD TAX CREDIT
  • SA#1 is the Bill
 
SB1382MOTOR FUEL-PUBLIC HIGHWAYS (SEN. SARA FEIGENHOLTZ) Amends the Motor Fuel Tax Law. Provides that "motor fuel" means all volatile and inflammable substances, whether in liquid or gaseous form (currently, volatile and inflammable liquids). Provides that incidental use of motor fuel on private roads or private highways in the operation of a motor vehicle does not constitute a "purpose other than operating a motor vehicle upon the public highways" and does not form a basis for a claim for refund. Effective immediately, except that certain provisions take effect January 1, 2026.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1382
 Notes:   IDOR INITIATIVE
 
SB1449FOREST PRESERVE-REVENUE (SEN. LINDA HOLMES) Amends the Downstate Forest Preserve District Act. Allows the board of a forest preserve district to establish a special forest preserve district retailers' occupation tax and service occupation tax after referendum of the voters. Allows the tax to used exclusively for general purposes, including education, outdoor recreation, maintenance, operations, public safety at the forest preserves, trails, acquiring and restoring land, and any other lawful purposes or programs determined by the board of that district. Includes referendum language and additional ballot informational language. Incorporates provisions from the Retailers' Occupation Tax Act to implement the tax. Amends the State Finance Act to create the Special Forest Preserve Retailers' and Service Occupation Tax Fund. Effective immediately.
 Current Status:   6/2/2025 - Senate Committee Amendment No. 2 Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 State Bill Page:   SB1449
 Notes:   
 
SB1505SMALL BUSINESS TAX CREDIT (SEN. WILLIE PRESTON) Amends the Small Business Job Creation Tax Credit Act. Renews the program for incentive periods beginning on or after July 1, 2025 and ending on or before June 30, 2032. Removes language concerning the Put Illinois to Work Program for the second series of incentive periods. Provides that the term "full-time employee" means an individual who is employed for a basic wage for at least 35 hours each week (currently, employed for a basic wage for at least 35 hours each week or renders any other standard of service generally accepted by industry custom or practice as full-time employment). Provides that a net increase in the number of full-time Illinois employees shall be treated as continuous if a different new employee is hired as a replacement within 8 weeks after the position becomes vacant (currently, a reasonable time). Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1505
 Notes:   

Small Business Job Creation TaxCredit

  • Reinstates the Small Business Job Creation Tax Credit
  • Narrowly provides funding to eligible small businesses

 
SB1514REVENUE-MEGAPROJECT (SEN. MARK WALKER) Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity may certify a taxpayer for an exemption from any State or local use tax or retailers' occupation tax on building materials that will be incorporated into real estate at a megaproject site. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that a retailer that makes a qualified sale of building materials to be incorporated into real estate at a megaproject site may deduct the receipts from such sales when calculating the taxes imposed by those Acts. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law. Provides that a "megaproject" is a project that meets certain investment and job creation specifications. Provides that the megaproject property is eligible for an assessment freeze. Provides that megaproject property may be granted an abatement. Provides that a company that operates a megaproject shall enter into an agreement with the municipality in which the project is located and other local taxing districts to make certain special payments. Effective July 1, 2025.
 Current Status:   2/4/2025 - Referred to Senate Assignments
 Recent Status:   2/4/2025 - FIRST READING
2/4/2025 - Filed with Secretary by Sen. Mark L. Walker
 State Bill Page:   SB1514
 
SB1543INC TX-UNION DUES (SEN. RAM VILLIVALAM) Amends the Illinois Income Tax Act. Creates a deduction for the full amount of union dues paid by the taxpayer during the taxable year if the taxpayer was not allowed a federal deduction under the Internal Revenue Code. Provides that, if any amount of union dues representing federal miscellaneous itemized deductions was allowed as a federal deduction, then the amount allowed as an Illinois deduction shall be a specified percentage of the union dues disallowed under the Internal Revenue Code. Provides that the deduction is exempt from the Act's automatic sunset provision. Effective immediately.
 Current Status:   2/7/2025 - Added as Chief Co-Sponsor Sen. Christopher Belt
 Recent Status:   2/4/2025 - Referred to Senate Assignments
2/4/2025 - FIRST READING
 State Bill Page:   SB1543
 
SB1667TRUST CODE-UNCLAIMED PROPERTY (SEN. ROBERT MARTWICK; REP. DIANE BLAIR-SHERLOCK) Amends the Illinois Trust Code. Requires a trustee to maintain, for a minimum of 7 years after the termination of the trust, a copy of the governing trust instrument under which the trustee was authorized to act at the time the trust terminated. Amends the Revised Uniform Unclaimed Property Act. Provides that property held in an account or plan, including a health savings account, that qualifies for tax deferral under the United States income tax law, is presumed abandoned 20 years after the account was opened. Requires State agencies to report final compensation due a State employee to the Treasurer's Office as unclaimed property if the employee dies while employed. Requires a holder who holds property presumed abandoned to hold the property in trust for the benefit of the State Treasurer on behalf of the owner from and after the date the property is presumed abandoned. Requires that the State Treasurer provide written notice to a State agency and the Governor's Office of Management and Budget of property presumed to be abandoned and allegedly owned by the State agency before it can be escheated to the State's General Revenue Fund if the property remains unclaimed after one year. Creates authority for the Secretary of the Department of Financial and Professional Regulation to order a regulated person under the Act to immediately report and remit property subject to the Act if the Secretary determines that the action is necessary to protect the interest of an owner. Establishes a procedure regulating agreements between an owner or apparent owner and a finder to locate or recover property held by the State Treasurer. Requires a finder to be licensed by the State Treasurer and creates qualifications to be so licensed. Makes definitions. Makes other changes. The Treasurer is authorized to adopt rules as necessary to implement the Act. Effective immediately.

Senate Floor Amendment No. 5 - Replaces everything after the enacting clause with the provisions of the introduced bill with these changes. Amends the State Finance Act. Provides those funds owed to the estate or heirs of a deceased State employee under the Act that are not paid within one year of the State employee's death shall be reported and remitted to the State Treasurer under the Revised Uniform Unclaimed Property Act. Makes the changes to the licensing of a finder effective January 1, 2026. Provides that if the State Treasurer reasonably believes that the apparent owner of property presumed abandoned held under this Act is a State agency as defined in the Illinois State Auditing Act, the State Treasurer may give written notice to the chief executive officer of such State agency and the Governor's Office of Management and Budget. Requires that, before the termination of a trust, a trustee must conduct a reasonable search for any trust property that has been reported and remitted to a State unclaimed property administrator. Provides that, in the tenth year after the opening of an account holding property covered by the Act for which the apparent owner has not, within the previous 3 years, indicated interest under the Act and that is not otherwise presumed abandoned, the holder shall attempt to contact the apparent owner in a manner substantially similar to the notice required by the Act. Requires the State Treasurer to adopt rules to implement the Act. Specifies that a provision of the Act concerning presumptively abandoned property does not apply to property insured by the Federal Deposit Insurance Corporation, National Credit Union Administration, or other insurer of accounts approved by a depository institution's primary financial regulatory agency. Changes a cross-reference.
 Current Status:   6/18/2025 - Sent to Governor for Signature
 Recent Status:   5/20/2025 - Passed Both Houses
5/20/2025 - Third Reading - Short Debate - Passed 073-040-000
 State Bill Page:   SB1667
 Notes:   TRUST-Unclaimed Property
  • A/O 1 April
  • Amendment #2 
  • Amendment #3 addresses Bankers Association concerns.
  • House Companion Bill HB 2568
 
SB1715INC TX-BASIS ADJUSTMENT (SEN. MICHAEL HASTINGS) Amends the Illinois Income Tax Act. Creates a deduction for any amount included in gross income as a result of a basis adjustment to investment credit property under the Internal Revenue Code. Effective immediately.
 Current Status:   2/5/2025 - Referred to Senate Assignments
 Recent Status:   2/5/2025 - FIRST READING
2/5/2025 - Filed with Secretary by Sen. Michael E. Hastings
 State Bill Page:   SB1715
 Notes:   TAX ACT-Federal Income Tax Credits
Taxpayer's Federation of Illinois Bill
  • Allows taxpayers to subtract amounts that were limited on the federal level due to the taxpayer receiving certain federal income tax credits

 
SB1739INC TX-PASS THROUGH ENTITIES (SEN. ROBERT MARTWICK) Amends the Illinois Income Tax Act. Provides that, for the purpose of allocating gains and losses from sales or exchanges of shares in a Subchapter S corporation or from interests in certain partnerships, those gains and losses shall be allocated in proportion to the average of the pass-through entity's Illinois apportionment factor in the year of the sale or exchange and the 2 tax years immediately preceding the year of the sale or exchange. Provides that, if the pass-through entity was not in existence during both of the preceding 2 years, then only the years in which the pass-through entity was in existence shall be considered when computing the average.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1739
 Notes:   TAX-PTE Sourcing
  • IDOR INITIATIVE
  • Gains and losses from the sale of a pass-through entity would be allocated to Illinois based on a three-year average of the entity's apportionment factor
  • This would increase taxes on non-residents, but it would allow IL residents to receive the credit for taxes paid to other states for gains
  • See also SB 2021
 
SB1813INC TX-EDUCATION EXPENSE (SEN. RAM VILLIVALAM) Amends the Illinois Income Tax Act. Provides that the education expense credit shall be 50% of the qualified education expenses incurred by a custodian on behalf of a qualifying pupil. Provides that, for tax years ending on or after December 31, 2025, the education expense credit shall be no more than $2,000 per child for a maximum of $6,000 per family. Provides that no taxpayer may claim an education expense credit if the taxpayer's adjusted gross income exceeds 400% of the federal poverty level. Makes changes concerning the definition of "qualified education expense". Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1813
 
SB1833INC TX-ILLINOIS SOURCES (SEN. CHAPIN ROSE) Amends the Illinois Income Tax Act. Provides that, when calculating the taxpayer's base income, the taxpayer's federal adjusted gross income shall be modified to exclude (i) the portion of income or loss that is received from a trade or business conducted within and without Illinois and that is not derived from or connected with Illinois sources and (ii) the portion of income or loss that is received from a pass-through entity conducting business within and without Illinois and that is not derived from or connected with Illinois sources. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1833
 
SB1888USE/OCC TX-PURCHASING (SEN. DONALD DEWITTE) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that an exemption for tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois who will, upon receipt of the property in Illinois, temporarily store the property in Illinois for specified purposes applies from January 1, 2026 through December 31, 2031. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1888
 
SB1956INC TX-INTEREST MODIFICATION (SEN. ELGIE SIMS) Amends the Illinois Income Tax Act. Makes changes in provisions concerning (i) an addition modification for interest paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act and (ii) an addition modification for intangible expenses and costs otherwise allowed as a deduction in computing the taxpayer's base income that were paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1956
 Notes:   
INCOME TAX
A/O 29 May 2025
  • IDOR initiative Makes changes to the Illinois Income Tax Act in provisions concerning
  • i) an addition modification for interest paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act and
  • ii) an addition modification for intangible expenses and costs otherwise allowed as a deduction in computing the taxpayer's base income that were paid, accrued, or incurred to a person who would be a member of the taxpayer's unitary business group but for the fact that the person is ordinarily required to apportion business income under different provisions of the Act.
  • Business community opposed.  Basis of opposition are restrictions on the 80/20 exclusion rule,and eliminating flexibility to demonstrate business transactions.IDOR estimates changes would generate $80M in add’l Corp Income Taxes.
Repeals two of the exceptions when corporations do not need to add back interest paid:
  1. interest paid to an entity subject to income tax in a foreign country or state
  2. interest that the taxpayer can establish relates to a contract entered into at arm's length rates and terms and the principal purpose for the payment was not tax avoidance.
 
SB1977PROP TX-HOMESTEAD (SEN. ROBERT PETERS) Amends the Property Tax Code. Provides that, on and after July 1, 2026, any bill to amend an existing homestead exemption or to create a new homestead exemption shall include the submission of an impact statement prepared by the sponsor of the bill. Provides that the maximum income limitation for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption shall be $85,000 for taxable year 2025 and shall be subject to a cost-of-living adjustment in subsequent years. Provides that, for any tax certificates held by a county, the county clerk may create and administer a payment plan during the redemption period. Amends the Senior Citizens Real Estate Tax Deferral Act. Makes changes concerning the maximum household income. Effective immediately.
 Current Status:   6/2/2025 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
6/2/2025 - Senate Committee Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   SB1977
 Notes:   PROPERTY TAX OMNIBUS-Vehicle Bill
  • Senate Property Tax Omnibus
  • See SA#1
  • See House Property Tax Omnibus-SB 2156
 
SB1993INC TX-ABLE ACCOUNTS (SEN. CRISTINA CASTRO) 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.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB1993
 
SB2003INC TX-STUDENT LOAN REPAYMENT (SEN. MEG LOUGHRAN CAPPEL) Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 State Bill Page:   SB2003
 
SB2008GROCERY INITIATIVE-OWNER (SEN. JAVIER CERVANTES; REP. JAY HOFFMAN) House Floor Amendment No. 3 - Replaces everything after the enacting clause. Creates the Statewide Innovation Development and Economy Act. Provides that the purpose of the Act is to promote, stimulate, and develop the general and economic welfare of the State and its communities and to assist in the development and redevelopment of major tourism, entertainment, retail, and related projects within eligible areas of the State, thereby creating new jobs, stimulating significant capital investment, and promoting the general welfare of the citizens of the State, by authorizing municipalities and counties to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects and to otherwise exercise the powers and authorities granted to municipalities to provide incentives to create new job opportunities and to promote major tourism, entertainment, retail, and related projects within the State. Provides that the Office of the Governor, in consultation with the Department of Commerce and Economic Opportunity, shall have final approval of all STAR bond districts and STAR bond projects established under the Act, which may be established throughout the 10 Economic Development Regions in the State as established by the Department of Commerce and Economic Opportunity. Provides that regardless of the number of STAR bond districts established within any Economic Development Region, only one STAR bond project may be approved in each of the 10 Regions, excluding projects located in STAR bond districts established under the Innovation Development and Economy Act. Provides that each STAR bond district in which a STAR bonds project has been approved may only receive 50% of the total development costs up to $75,000,000 in State sales tax increment. Provides that a STAR bond district under the Act may not be located either entirely or partially inside of a municipality with a population in excess of 2,000,000. Amends the Illinois State Auditing Act. Changes the jurisdiction of the Auditor General to make post audits and investigations under the Act or Constitution. Amends the State Finance Act. Amends the Illinois Municipal Code. Amends the Counties Code. Amends the Metro-East Park and Recreation District Act. Amends the Local Mass Transit District Act. Creates the Advancing Innovative Manufacturing for Illinois Tax Credit Act. Creates the Advancing Innovative Manufacturing for Illinois Tax Credit program administered by the Department of Commerce and Economic Opportunity. Provides that the Program shall provide investment tax credit incentives to eligible manufacturers of critically demanded goods. Amends the Illinois Income Tax Act to make conforming changes. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Makes changes concerning data centers. Provides that the Department of Commerce and Economic Opportunity may award grants to match the funds received by a business through an SBIR/STTR Phase I proposal up to a maximum of $75,000 (currently, $50,000). Provides that the Department of Commerce and Economic Opportunity may award grants to match the funds received by a business through an SBIR/STTR Phase II proposal up to a maximum of $250,000. Amends the Illinois Income Tax Act to make changes concerning the apprenticeship education expense credit. Amends the Economic Development for a Growing Economy Tax Credit Act. Makes changes authorizing additional Agreements under the Act. Amends the Illinois Enterprise Zone Act to provide that certain economic development authorities may designate additional Enterprise Zones. Amends the Illinois Income Tax Act. Provides that, if compensation is paid through a loan out company, as defined under the Film Production Services Tax Credit Act of 2008, if the compensation is considered compensation paid in this State, and if the compensation is for in-State services performed for a production that is accredited under the Film Production Services Tax Credit Act of 2008 and concludes on or after July 1, 2025, then the production company or its authorized payroll service company shall be considered the employer for the purpose of withholding tax on that compensation and shall withhold at the tax rate provided in the Act on all payments to loan out companies for services performed in Illinois by the loan out company's employees. Specifies that nonresident employees of loan out companies who perform services in Illinois shall be considered taxable nonresidents and shall be subject to the tax under the Act in the taxable year in which the employee performs services in Illinois. Amends the Film Production Services Tax Credit Act of 2008. Modifies the definitions of the terms "credit", "Illinois labor expenditure", and "Illinois production spending". Provides that a taxpayer shall not be awarded any new credits under the Act for tax years beginning on or after January 1, 2039 (rather than 2033). Contains other provisions. Amends the Film Production Services Tax Credit Act of 2008. Provides that the term "Illinois labor expenditure" does not include: (1) above-the-line spending exceeding 40% of the total Illinois production spending for the production, unless the Department of Commerce and Economic Opportunity determines that the inclusion of such excess above-the-line spending is necessary for the production to be accredited; (2) above-the-line spending paid to related parties that exceeds, in the aggregate, 12% of the total Illinois production spending for the production; or (3) below-the-line spending paid to a related party that exceeds the fair market value of the transaction. Defines "above-the-line spending" and "below-the-line spending". Provides that the term "Illinois production spending" includes the fair market value of any transaction that (i) is entered into between the taxpayer and a related party or the taxpayer and an unrelated party, (ii) is related to the accredited production, and (iii) has terms that reflect the fair market value of the transaction. Effective immediately.
 Current Status:   7/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 Recent Status:   6/4/2025 - Added as Co-Sponsor Sen. Steve McClure
6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   SB2008
 Notes:   ECONOMIC DEVELOPMENT PACKAGE
A/O 1 June 2025 Final-The Economic Development Package outlined below was incorporated into SB 2755 (Revenue Omnibus) which passed both the House and Senate.   See SB 2755 for the Economic Development Package
  • STAR BONDS (Statewide STAR Bonds Program)
  • Creates the Statewide Innovation Development and Economy Act (Manufacturing for Illinois Tax Credit)
  • A/O 30 May 2025
  • Creates the Statewide Innovation Development and Economy Act which allows for the creation of additional STAR Bond Districts (STAR stands for Sales Tax and Revenue). A STAR Bond District is a designated area, and the new incremental sales tax revenue generated within the district is used to pay for the development costs of the district.
  • Creates the Advancing Innovative Manufacturing for Illinois Tax Credit Act which allows a tax credit equal to a 3% to 7% of the capital investment made by a manufacturer.
  • Allows each regional development authority to establish a new enterprise zone which would not count toward the existing 97 enterprise zone limit.
  • Allows a high voltage direct current converter station to qualify as a high impact business.
 
SB2021INC TX-PASS-THROUGH ENTITIES (SEN. CELINA VILLANUEVA) Amends the Illinois Income Tax Act. Removes provisions providing that the pass-through entity level election applies only for tax years beginning prior to January 1, 2026. Effective immediately.
 Current Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
5/23/2025 - Rule 2-10 Committee/3rd Reading Deadline Established As June 1, 2025
 Report Position:   Support
 State Bill Page:   SB2021
 Notes:   TAX-PTE
Taxpayers Federation of Illinois Bill
  • A/O 2 April-ICPAS will reach out to sponsor to discuss importance of legislation. Most likely this issue will be addressed in an end of session Revenue Omnibus Bill.
  • Extends the optional pass-through entity tax as long as the limitation on state and local taxes exists under 26 U.S.C. 164(b)(6)
  • House Companion Bill 2702
  • ICPAS Supports
 
SB2027USE/OCC TX-VEHICLES (SEN. CELINA VILLANUEVA) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that there is a rebuttable presumption that the exemption under the Acts for motor vehicles that are sold in this State to a nonresident and are not titled in this State does not apply if the purchaser is a limited liability company and a member of the limited liability company is a resident of Illinois. Provides that the rolling stock exemption for limousines applies only to limousines that are not subject to the provisions of the Transportation Network Providers Act. Amends the Illinois Vehicle Code. Provides that the motor vehicle privilege tax does not apply if the motor vehicle is purchased for the purpose of resale by a retailer registered under the Retailers' Occupation Tax Act. Effective immediately.
 Current Status:   6/2/2025 - Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   6/2/2025 - Rule 3-9(a) / Re-referred to Assignments
6/2/2025 - Senate Committee Amendment No. 1 Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 State Bill Page:   SB2027
 Notes:   IDOR INITIATIVE
 
SB2041INC TX-ESTIMATED TAX (SEN. CELINA VILLANUEVA) Amends the Illinois Income Tax Act. In provisions concerning the estimated tax, provides that the required annual payment is the lesser of: (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for the year; (ii) 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and the preceding year was a taxable year of 12 months; or (iii) 90% of the tax for the taxable year that would have been due based on the Act as it exists on the first day of the taxable year. Effective immediately.
 Current Status:   2/6/2025 - Referred to Senate Assignments
 Recent Status:   2/6/2025 - FIRST READING
2/6/2025 - Filed with Secretary by Sen. Celina Villanueva
 State Bill Page:   SB2041
 Notes:   TAXPAYER-Annual Payment
Taxpayers Federation of Illinois Initiative
  • Provides that if the General Assembly amends the law in the middle of the tax year increasing the taxpayer's liability the taxpayer would pay the difference with their return.
  • See House Companion Bill HB 2697
 
SB2156JUV DETENTION CENTR-TASK FORCE (SEN. RACHEL VENTURA; REP. JEHAN GORDON-BOOTH) House Floor Amendment No. 2 - Replaces everything after the enacting clause. Amends the Property Tax Code. Makes changes concerning the following: claims for refunds; billing; tax deeds; the maximum income limitation under the Low-Income Senior Citizens Assessment Freeze Homestead Exemption; subdivisions; eligibility under the Energy Assistance Act; multi-township assessors; tax certificates; and affordable housing programs. Amends the Fox Waterway Agency Act. Allows the Agency to impose property taxes, subject to referendum approval. Effective immediately.
 Current Status:   7/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
 Recent Status:   6/2/2025 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments
6/1/2025 - Placed on Calendar Order of Concurrence House Amendment(s) 2 - June 1, 2025
 State Bill Page:   SB2156
 Notes:   PROPERTY TAX OMNIBUS-Shell Bill
  • House Property Tax Omnibus
  • See House Amendment that make numerous property tax changes
  • See Senate Property Tax Omnibus-SB 1977

 
SB2325BUSINESS CORP-FRANCHISE TAX (SEN. ROBERT MARTWICK) Amends the Business Corporation Act of 1983. In provisions concerning the franchise tax, provides that the rate of penalties and interest on any franchise tax or fee, for which the Secretary of State provides written notice of the amount of penalties and interest owed to a corporation on or after January 1, 2026, shall be the rate of interest established under specified provisions of the Illinois Income Tax Act, and no other penalties or interest shall be imposed or charged to a corporation. Makes changes in provisions concerning the statute of limitations. Makes changes that are declaratory of existing law. Effective immediately.
 Current Status:   5/9/2025 - Rule 3-9(a) / Re-referred to Assignments
 Recent Status:   5/8/2025 - Senate Bills on Third Reading
5/7/2025 - Senate Bills on Third Reading
 State Bill Page:   SB2325
 
SB2389USE/OCC TX-MULTISTATE (SEN. CHRIS BALKEMA) Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reinstates the exemption for the use or sale of tangible personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in Illinois. Provides that the exemption sunsets on June 30, 2030 (currently, June 30, 2016). Effective immediately.
 Current Status:   2/7/2025 - Referred to Senate Assignments
 Recent Status:   2/7/2025 - FIRST READING
2/7/2025 - Filed with Secretary by Sen. Chris Balkema
 State Bill Page:   SB2389
 
SC4CONAMEND-INCOME TAX RATES (SEN. ROBERT MARTWICK) Proposes to amend the Revenue Article of the Illinois Constitution. Removes a provision that provides that a tax on income shall be measured at a non-graduated rate. Provides that the General Assembly shall provide by law for the rate or rates of any tax on or measured by income imposed by the State (currently, there may be no more than one such tax imposed by the State on individuals and one such tax so imposed on corporations). Provides that the highest rate of tax imposed on corporations may not exceed the highest rate imposed on individuals by more than a ratio of 8 to 5. Effective upon being declared adopted.
 Current Status:   4/30/2025 - Sponsor Removed Sen. Christopher Belt
 Recent Status:   4/11/2025 - Added as Co-Sponsor Sen. Sara Feigenholtz
4/10/2025 - Added as Co-Sponsor Sen. Elgie R. Sims, Jr.
 State Bill Page:   SC4
 
SJ22TAX REVENUE POLICIES (SEN. KARINA VILLA) Urges the State of Illinois to make needed investments in Illinois communities by raising $6 billion in new revenue from the ultra-wealthy and mega-corporations. Affirms that, in addition to funding these critically-needed services, implementing these revenue policies will have the benefit of making our State's tax system less unfair to the lowest income Illinoisans.
 Current Status:   7/9/2025 - Added as Co-Sponsor Sen. Mary Edly-Allen
 Recent Status:   5/12/2025 - Added as Chief Co-Sponsor Sen. Mike Simmons
4/30/2025 - Added as Co-Sponsor Sen. Adriane Johnson
 State Bill Page:   SJ22
 
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