summary
Introduced
02/07/2025
02/07/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who (1) paid rent on a personal residence in Illinois for at least 6 months during the taxable year; (2) are not claimed as a dependent on someone else's federal income taxes for the taxable year; and (3) have a federal adjusted gross income of less than $83,250, if the taxpayer is married filing a joint return, or $40,770, if the taxpayer is not married filing a joint return. Provides that, if the taxpayer is married filing a joint return, then the amount of the credit is $1,000 for both taxpayers as a single unit. Provides that, if the taxpayer is not married filing a joint return, then the amount of the credit is $500. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create a new tax credit for renters in Illinois, effective for taxable years beginning on or after January 1, 2026. To qualify for the credit, taxpayers must have paid rent on a personal residence in Illinois for at least 6 months, not be claimed as a dependent on someone else's federal income taxes, and meet specific income thresholds: married couples filing jointly must have a federal adjusted gross income below $83,250, while single filers must have an income below $40,770. The credit amount is $1,000 for married couples filing jointly and $500 for other individual taxpayers. Importantly, the credit cannot reduce a taxpayer's liability below zero, and any excess credit amounts cannot be refunded. The bill aims to provide financial relief to renters by offering a state income tax credit that helps offset housing costs for lower and middle-income individuals and families.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
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=3738&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3738.htm |
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