Bill > SB1829

This bill amends the Illinois Income Tax Act to create a tax deduction for amounts that are disallowed as a deduction on a taxpayer's federal income tax return because of the $10,000 limitation on state and local tax deductions under the federal Internal Revenue Code. Specifically, the bill adds a new provision (subparagraph (NN)) to allow taxpayers to deduct the amount of state and local taxes (such as property and income taxes) that were disallowed as a federal deduction due to the $10,000 cap imposed by the Tax Cuts and Jobs Act of 2017. This means that Illinois taxpayers who are unable to fully deduct their state and local taxes on their federal return can now claim the disallowed portion as a deduction on their state income tax return, potentially reducing their state tax liability. The provision would apply to taxable years beginning on or after January 1, 2025, and is exempt from certain limitations in the existing tax law.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1829&GAID=18&DocTypeID=SB&SessionID=114&GA=104