Bill > HB1752

This bill amends the Illinois Income Tax Act to create two new income tax deductions related to educational assistance programs. Specifically, the bill allows taxpayers to deduct up to $5,250 for amounts paid by their employer on their behalf as part of an educational assistance program, beginning with tax years starting on or after January 1, 2026. Additionally, the bill allows taxpayers to deduct up to $5,250 for amounts they pay on behalf of their employees as part of an educational assistance program, also starting in tax year 2026. An educational assistance program is defined by referencing Section 127 of the Internal Revenue Code, which typically covers employer-provided educational benefits such as tuition reimbursement or direct payments for courses and training. The deductions apply regardless of whether the assistance amounts are included in the taxpayer's federal adjusted gross income, and the $5,250 limit applies to each individual receiving the educational assistance. These provisions are exempt from certain standard tax calculation provisions, suggesting they are intended to provide a straightforward tax benefit for educational support.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1752&GAID=18&DocTypeID=HB&SessionID=114&GA=104