summary
Introduced
01/24/2025
01/24/2025
In Committee
01/28/2025
01/28/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create two new income tax deductions for workers: one for gratuities and another for overtime compensation. Specifically, for taxable years beginning on or after January 1, 2026, the bill allows individuals to subtract from their base income the total amount of gratuities and overtime compensation included in their federal adjusted gross income. For gratuities, the bill references the definition in the Minimum Wage Law, and for overtime compensation, it uses the definition from the federal Fair Labor Standards Act. These deductions are designed to provide tax relief for workers who receive tips or earn overtime pay, effectively reducing their state income tax liability by allowing them to exclude these earnings from their taxable income. The bill takes effect immediately upon becoming law, with the new deductions applying to tax years starting in 2026.
Sponsors (6)
Joe Sosnowski (R)*,
Jason Bunting (R),
Anthony DeLuca (D),
Paul Jacobs (R),
Tony McCombie (R),
Kevin Schmidt (R),
Last Action
Added Co-Sponsor Rep. Anthony DeLuca (on 12/03/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1750&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1750.htm |
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