Bill > HB2603

This bill amends the Illinois Income Tax Act to create a tax deduction for gratuities received during the taxable year. Specifically, the bill adds a new provision allowing taxpayers to deduct the full amount of gratuities they receive when calculating their base income for state income tax purposes. The term "gratuities" is defined using the meaning provided in Section 3 of the Minimum Wage Law. This deduction will be effective for taxable years ending on or after December 31, 2025, and is exempt from the Act's automatic sunset provision, meaning it will not automatically expire. The bill aims to provide tax relief for workers who rely on tips as a significant part of their income, such as those in the service industry like restaurant servers, bartenders, and other tipped employees.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2603&GAID=18&DocTypeID=HB&SessionID=114&GA=104