summary
Introduced
02/06/2025
02/06/2025
In Committee
06/02/2025
06/02/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create two new income tax deductions related to educational assistance programs. Starting January 1, 2026, the bill allows taxpayers to deduct up to $5,250 of educational assistance payments in two specific scenarios: first, when an employer pays educational assistance on behalf of an employee, and second, when a taxpayer pays educational assistance on behalf of their own employee. These deductions apply to educational assistance as defined in Section 127 of the Internal Revenue Code, which typically covers expenses like tuition, fees, books, and equipment. The deduction is limited to $5,250 per individual per year, regardless of who makes the payment. This change aims to provide tax relief for employers and businesses that offer educational support to their employees, potentially encouraging workforce development and continued education.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 06/02/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2003&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB2003.htm |
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