Bill > SB1543

This bill amends the Illinois Income Tax Act to create a new tax deduction for union dues that were previously disallowed under federal tax law. Specifically, for tax years beginning on or after January 1, 2026, taxpayers can deduct the full amount of union dues if they were not allowed to claim a federal deduction under Section 67 of the Internal Revenue Code, which typically limits miscellaneous itemized deductions. If only a portion of union dues were previously deductible, taxpayers can deduct a proportional amount calculated based on the disallowed federal deduction. The bill defines union dues as 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deduction is exempt from the Act's automatic sunset provision, meaning it will remain in effect unless specifically repealed, and the bill takes effect immediately upon becoming law.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1543&GAID=18&DocTypeID=SB&SessionID=114&GA=104