Bill > HB3264

This bill amends the Illinois Income Tax Act to create a new tax credit for contributions to ABLE (Achieving a Better Life Experience) accounts, which are specialized savings accounts for individuals with disabilities. Specifically, the bill allows taxpayers who make a matching contribution to an employee's ABLE account to receive a tax credit equal to 25% of that contribution, with a maximum credit of $500 per contributing employee per taxable year. The credit is available for taxable years from December 31, 2025, through January 1, 2031, and has several important provisions: partners and shareholders of S corporations can also claim the credit, the credit cannot reduce tax liability below zero, and any excess credit can be carried forward and applied to tax liability for up to 5 subsequent years. Taxpayers claiming the credit must maintain records about the matching contribution as required by the Office of the State Treasurer or the Department. This legislation aims to provide a financial incentive for employers and individuals to support savings for people with disabilities through ABLE accounts.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3264&GAID=18&DocTypeID=HB&SessionID=114&GA=104