Bill > HB1386

This bill amends the Illinois Income Tax Act to increase the tax credit for volunteer emergency workers. Currently, volunteer emergency workers who serve at least 9 months in a year and receive no more than $5,000 in compensation can apply for a tax credit. For taxable years between 2023 and 2026, the credit will remain $500 per eligible individual, but from 2026 to 2029, the credit will increase to $1,000 per eligible individual. For volunteer members of county or municipal emergency services agencies, the worker must serve at least 100 hours during the taxable year to qualify. The total amount of tax credits will also increase from $5,000,000 to $6,000,000 per year starting in 2026. The bill defines a "volunteer emergency worker" as a person who serves as a non-career member of a fire department or, starting in 2024, as a volunteer member of a county or municipal emergency services agency. Credits will continue to be awarded on a first-come, first-served basis, and cannot reduce a taxpayer's liability below zero. The bill requires various agencies to submit electronic files with the names of qualifying volunteer emergency workers by specific dates each year.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1386&GAID=18&DocTypeID=HB&SessionID=114&GA=104