summary
Introduced
02/04/2026
02/04/2026
In Committee
05/22/2026
05/22/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates a corporate income tax deduction for hemp business establishments in an amount equal to 50% of the income generated by the sale of products made by businesses owned by minority and other specific priority-population-owned businesses. Amends the Tobacco Products Tax Act of 1995 to exclude hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products. Amends the Liquor Control Act of 1934 to provide that hemp extract and hemp-cannabinoid products made in compliance with State law are considered fit for human consumption. Authorizes liquor license holders to manufacture, distribute, and sell such products. Amends the Industrial Hemp Act to establish a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, enforcement, and penalties. Creates the Hemp Social Equity Fund to support loans, grants, and technical assistance for social equity applicants. Makes conforming changes to the State Finance Act. Effective January 1, 2027.
AI Summary
This bill establishes a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products in Illinois, effective January 1, 2027. Key provisions include creating a corporate income tax deduction for hemp businesses that are owned by minority and other specific priority populations, equal to 50% of the income generated from selling products made by these businesses. It also clarifies that hemp-cannabinoid products taxed under the Industrial Hemp Act are not considered tobacco products, and that hemp extract and hemp-cannabinoid products made in compliance with state law are fit for human consumption, allowing liquor license holders to manufacture, distribute, and sell them. The bill also establishes licensing, registration, packaging, labeling, age verification, laboratory testing, recordkeeping, enforcement, and penalties for the hemp industry, and creates the Hemp Social Equity Fund to support social equity applicants with loans, grants, and technical assistance.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 05/22/2026)
Taxonomy
Agriculture
- ‐ General Agriculture
Banking, Finance, and Domestic Commerce
- ‐ General Banking, Finance, and Domestic Commerce
- ‐ Other Commerce
Macroeconomics
- ‐ Taxation, Tax Policy, and Tax Reform
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location | Created |
|---|---|---|
| State Bill Page | https://www.ilga.gov/Legislation/BillStatus?DocNum=3377&GAID=18&DocTypeID=SB&SessionID=114&GA=104 | 02/04/2026 |
| BillText | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=207604&DocName=10400SB3377&DocNum=3377&DocTypeID=SB&LegID=166258&GAID=18&SessionID=114&SpecSess=&Session= | 02/10/2026 |
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