Bill > HB2395

This bill amends the Illinois Income Tax Act to create a new tax deduction for union dues. Starting in tax years beginning on or after January 1, 2026, taxpayers will be able to deduct the full amount of union dues paid during the taxable year if they were not allowed to deduct these dues on their federal tax return due to Section 67 of the Internal Revenue Code. If only a portion of union dues was allowed as a federal deduction for miscellaneous itemized expenses, the Illinois deduction will be calculated proportionally based on the disallowed federal deduction. The bill specifically defines union dues as those amounts deductible as union dues and agency shop fees under Section 162 of the Internal Revenue Code. This deduction is exempt from the Act's automatic sunset provision, meaning it will remain in effect unless specifically repealed, and the bill becomes effective immediately upon passage.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2395&GAID=18&DocTypeID=HB&SessionID=114&GA=104