Bill > HB4294

This bill amends the Illinois Income Tax Act to increase the amount of money transferred from the state's General Revenue Fund to the Local Government Distributive Fund, which is a special fund used to distribute state-collected taxes to local governments. Specifically, it adjusts the percentages of income tax revenue that are transferred to this fund, with the increases gradually taking effect between July 1, 2026, and July 1, 2029, ultimately reaching 10% for both individual and corporate income taxes, as well as taxes on electing pass-through entities, by July 1, 2029. The bill also clarifies that these transfers will occur monthly and will be directly deposited into the Local Government Distributive Fund as revenue is realized. This change is intended to provide more financial resources to local governments.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4294&GAID=18&DocTypeID=HB&SessionID=114&GA=104