Bill > SB1734

This bill amends the Illinois Income Tax Act to make the cost-of-living adjustment to the standard exemption permanent by removing the previous limitation that restricted the adjustment to taxable years ending on or before December 31, 2028. Specifically, the bill modifies Section 204, which governs standard exemptions for income tax purposes. Currently, taxpayers are allowed a basic exemption amount that has varied over the years, with the most recent provision setting the base amount at $2,050 plus a cost-of-living adjustment calculated using the Consumer Price Index (CPI). The CPI adjustment is determined by comparing the current year's index to the 2011 index, with any adjustment rounded to the nearest $25. By removing the sunset date, the bill ensures that taxpayers will continue to receive this cost-of-living adjustment indefinitely, which helps protect the value of the standard exemption against inflation. The bill takes effect immediately and applies to taxable years ending on or after December 31, 2024, providing ongoing tax relief for Illinois taxpayers.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1734&GAID=18&DocTypeID=SB&SessionID=114&GA=104