summary
Introduced
02/05/2026
02/05/2026
In Committee
02/24/2026
02/24/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Provides that a taxpayer shall be allowed an income tax credit in an amount equal to 1.3% of the qualified research expenses made by the taxpayer in Illinois. Provides that the taxpayer is not required to have obtained a research and development credit with respect to his or her federal income taxes to qualify for the Illinois research and development credit.
AI Summary
This bill amends the Illinois Income Tax Act to introduce a new tax credit for businesses that incur "qualified research expenses" within Illinois, effective for tax years ending on or after December 31, 2026. The credit will be equal to 1.3% of these qualified research expenses, which are defined as wages paid for qualified services, supplies used in qualified research, and amounts paid to third parties for qualified research. The bill clarifies that "qualified research" specifically pertains to activities aimed at developing new computer modeling technology, new 3-D modeling or imaging technology, new public infrastructure materials, or new public infrastructure design. Importantly, a taxpayer will not be required to have claimed a federal research and development credit to qualify for this new Illinois credit, and any unused credit can be carried forward for up to five years.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Assigned to Revenue (on 02/24/2026)
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