Illinois 2025-2026 Regular Session

Illinois House Bill HB1361 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1361 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately. LRB104 03536 HLH 13559 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1361 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately. LRB104 03536 HLH 13559 b LRB104 03536 HLH 13559 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1361 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/246 new 35 ILCS 5/246 new
4	4	35 ILCS 5/246 new
5	5	Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.
6	6	LRB104 03536 HLH 13559 b LRB104 03536 HLH 13559 b
7	7	LRB104 03536 HLH 13559 b
8	8	A BILL FOR
9	9	HB1361LRB104 03536 HLH 13559 b HB1361 LRB104 03536 HLH 13559 b
10	10	HB1361 LRB104 03536 HLH 13559 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 adding Section 246 as follows:
16	16	6 (35 ILCS 5/246 new)
17	17	7 Sec. 246. Small business property tax relief credit.
18	18	8 (a) For taxable years that end on or after December 31,
19	19	9 2025 and end on or before December 31, 2029, each qualified
20	20	10 small business is entitled to a credit against the taxes
21	21	11 imposed by subsections (a) and (b) of Section 201 in an amount
22	22	12 equal to the lesser of (i) 10% of the property taxes paid by
23	23	13 the qualified small business during the taxable year for
24	24	14 eligible real property or (ii) $1,500.
25	25	15 (b) In no event shall a credit under this Section reduce
26	26	16 the taxpayer's liability to less than zero. If the amount of
27	27	17 the credit exceeds the tax liability for the year, the excess
28	28	18 may be carried forward and applied to the tax liability of the
29	29	19 5 taxable years following the excess credit year. The tax
30	30	20 credit shall be applied to the earliest year for which there is
31	31	21 a tax liability. If there are credits for more than one year
32	32	22 that are available to offset a liability, the earlier credit
33	33	23 shall be applied first.
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1361 Introduced , by Rep. Debbie Meyers-Martin SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/246 new 35 ILCS 5/246 new
39	39	35 ILCS 5/246 new
40	40	Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately.
41	41	LRB104 03536 HLH 13559 b LRB104 03536 HLH 13559 b
42	42	LRB104 03536 HLH 13559 b
43	43	A BILL FOR
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49	49	35 ILCS 5/246 new
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66	66	HB1361- 2 -LRB104 03536 HLH 13559 b HB1361 - 2 - LRB104 03536 HLH 13559 b
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68	68	1 (c) If the taxpayer is a partnership or Subchapter S
69	69	2 corporation, the credit is allowed to pass through to the
70	70	3 partners and shareholders as provided in Section 251.
71	71	4 (d) This Section is exempt from the provisions of Section
72	72	5 250.
73	73	6 (e) As used in this Section:
74	74	7 "Eligible real property" means property located in
75	75	8 Illinois that meets the following criteria:
76	76	9 (1) the taxpayer has an ownership interest in the
77	77	10 property, whether legal, equitable, or as a lessee, and
78	78	11 the taxpayer is liable for the payment of property taxes
79	79	12 on the property;
80	80	13 (2) the property is used to conduct the taxpayer's
81	81	14 business operations; and
82	82	15 (3) the property is not residential.
83	83	16 "Qualified small business" means a sole proprietorship,
84	84	17 partnership, corporation, joint venture, association, or
85	85	18 cooperative that conducts business in Illinois, employs fewer
86	86	19 than 50 employees in the State during the taxable year, and is
87	87	20 current with all State and federal tax obligations as of the
88	88	21 last day of the taxable year.
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94	94	HB1361 - 2 - LRB104 03536 HLH 13559 b