Bill > HB2897

This bill amends the Illinois Income Tax Act to change how revenue from income taxes is distributed to the Local Government Distributive Fund (LGDF). Specifically, beginning July 1, 2025, the Department of Revenue will directly deposit 10% of the net revenue realized from income taxes imposed on individuals, corporations, and pass-through entities into the LGDF as the revenue is collected. This is a change from the previous method, which involved transferring varying percentages of income tax revenue from the General Revenue Fund to the LGDF through July 2025. The LGDF is a special fund that provides financial support to local governments across Illinois. The bill takes effect immediately, meaning the new distribution method will be implemented as soon as it is signed into law, with the 10% direct deposit rate beginning on July 1, 2025. This change could potentially provide more predictable and consistent funding for local governments in the state.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2897&GAID=18&DocTypeID=HB&SessionID=114&GA=104