Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1645 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1645 Introduced 2/5/2025, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: 35 ILCS 5/204 from Ch. 120, par. 2-204 Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, the additional standard exemption for taxpayers who have attained the age of 65 before the end of the taxable year and their spouses is $2,000 (currently, $1,000). Effective immediately. LRB104 03821 HLH 13845 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1645 Introduced 2/5/2025, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED: 35 ILCS 5/204 from Ch. 120, par. 2-204 35 ILCS 5/204 from Ch. 120, par. 2-204 Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, the additional standard exemption for taxpayers who have attained the age of 65 before the end of the taxable year and their spouses is $2,000 (currently, $1,000). Effective immediately. LRB104 03821 HLH 13845 b LRB104 03821 HLH 13845 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1645 Introduced 2/5/2025, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/204 from Ch. 120, par. 2-204 35 ILCS 5/204 from Ch. 120, par. 2-204
4	4	35 ILCS 5/204 from Ch. 120, par. 2-204
5	5	Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, the additional standard exemption for taxpayers who have attained the age of 65 before the end of the taxable year and their spouses is $2,000 (currently, $1,000). Effective immediately.
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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 changing Section 204 as follows:
16	16	6 (35 ILCS 5/204) (from Ch. 120, par. 2-204)
17	17	7 Sec. 204. Standard exemption.
18	18	8 (a) Allowance of exemption. In computing net income under
19	19	9 this Act, there shall be allowed as an exemption the sum of the
20	20	10 amounts determined under subsections (b), (c) and (d),
21	21	11 multiplied by a fraction the numerator of which is the amount
22	22	12 of the taxpayer's base income allocable to this State for the
23	23	13 taxable year and the denominator of which is the taxpayer's
24	24	14 total base income for the taxable year.
25	25	15 (b) Basic amount. For the purpose of subsection (a) of
26	26	16 this Section, except as provided by subsection (a) of Section
27	27	17 205 and in this subsection, each taxpayer shall be allowed a
28	28	18 basic amount of $1000, except that for corporations the basic
29	29	19 amount shall be zero for tax years ending on or after December
30	30	20 31, 2003, and for individuals the basic amount shall be:
31	31	21 (1) for taxable years ending on or after December 31,
32	32	22 1998 and prior to December 31, 1999, $1,300;
33	33	23 (2) for taxable years ending on or after December 31,
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1645 Introduced 2/5/2025, by Sen. Sue Rezin SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/204 from Ch. 120, par. 2-204 35 ILCS 5/204 from Ch. 120, par. 2-204
39	39	35 ILCS 5/204 from Ch. 120, par. 2-204
40	40	Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2025, the additional standard exemption for taxpayers who have attained the age of 65 before the end of the taxable year and their spouses is $2,000 (currently, $1,000). Effective immediately.
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49	49	35 ILCS 5/204 from Ch. 120, par. 2-204
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68	68	1 1999 and prior to December 31, 2000, $1,650;
69	69	2 (3) for taxable years ending on or after December 31,
70	70	3 2000 and prior to December 31, 2012, $2,000;
71	71	4 (4) for taxable years ending on or after December 31,
72	72	5 2012 and prior to December 31, 2013, $2,050;
73	73	6 (5) for taxable years ending on or after December 31,
74	74	7 2013 and on or before December 31, 2022, $2,050 plus the
75	75	8 cost-of-living adjustment under subsection (d-5);
76	76	9 (6) for taxable years ending on or after December 31,
77	77	10 2023 and prior to December 31, 2024, $2,425;
78	78	11 (7) for taxable years ending on or after December 31,
79	79	12 2024 and on or before December 31, 2028, $2,050 plus the
80	80	13 cost-of-living adjustment under subsection (d-5).
81	81	14 For taxable years ending on or after December 31, 1992, a
82	82	15 taxpayer whose Illinois base income exceeds the basic amount
83	83	16 and who is claimed as a dependent on another person's tax
84	84	17 return under the Internal Revenue Code shall not be allowed
85	85	18 any basic amount under this subsection.
86	86	19 (c) Additional amount for individuals. In the case of an
87	87	20 individual taxpayer, there shall be allowed for the purpose of
88	88	21 subsection (a), in addition to the basic amount provided by
89	89	22 subsection (b), an additional exemption equal to the basic
90	90	23 amount for each exemption in excess of one allowable to such
91	91	24 individual taxpayer for the taxable year under Section 151 of
92	92	25 the Internal Revenue Code.
93	93	26 (d) Additional exemptions for an individual taxpayer and
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104	104	1 his or her spouse. In the case of an individual taxpayer and
105	105	2 his or her spouse, he or she shall each be allowed additional
106	106	3 exemptions as follows:
107	107	4 (1) Additional exemption for taxpayer or spouse 65
108	108	5 years of age or older.
109	109	6 (A) For taxpayer. If the taxpayer An additional
110	110	7 exemption of $1,000 for the taxpayer if he or she has
111	111	8 attained the age of 65 before the end of the taxable
112	112	9 year, then an additional exemption of (i) $1,000 for
113	113	10 taxable years beginning prior to January 1, 2025 and
114	114	11 (ii) $2,000 for taxable years beginning on or after
115	115	12 January 1, 2025.
116	116	13 (B) For spouse when a joint return is not filed. If
117	117	14 An additional exemption of $1,000 for the spouse of
118	118	15 the taxpayer if a joint return is not made by the
119	119	16 taxpayer and his spouse, and if the spouse has
120	120	17 attained the age of 65 before the end of such taxable
121	121	18 year, and, for the calendar year in which the taxable
122	122	19 year of the taxpayer begins, has no gross income and is
123	123	20 not the dependent of another taxpayer, then an
124	124	21 additional exemption of (i) $1,000 for taxable years
125	125	22 beginning prior to January 1, 2025 and (ii) $2,000 for
126	126	23 taxable years beginning on or after January 1, 2025.
127	127	24 (2) Additional exemption for blindness of taxpayer or
128	128	25 spouse.
129	129	26 (A) For taxpayer. An additional exemption of
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140	140	1 $1,000 for the taxpayer if he or she is blind at the
141	141	2 end of the taxable year.
142	142	3 (B) For spouse when a joint return is not filed. An
143	143	4 additional exemption of $1,000 for the spouse of the
144	144	5 taxpayer if a separate return is made by the taxpayer,
145	145	6 and if the spouse is blind and, for the calendar year
146	146	7 in which the taxable year of the taxpayer begins, has
147	147	8 no gross income and is not the dependent of another
148	148	9 taxpayer. For purposes of this paragraph, the
149	149	10 determination of whether the spouse is blind shall be
150	150	11 made as of the end of the taxable year of the taxpayer;
151	151	12 except that if the spouse dies during such taxable
152	152	13 year such determination shall be made as of the time of
153	153	14 such death.
154	154	15 (C) Blindness defined. For purposes of this
155	155	16 subsection, an individual is blind only if his or her
156	156	17 central visual acuity does not exceed 20/200 in the
157	157	18 better eye with correcting lenses, or if his or her
158	158	19 visual acuity is greater than 20/200 but is
159	159	20 accompanied by a limitation in the fields of vision
160	160	21 such that the widest diameter of the visual fields
161	161	22 subtends an angle no greater than 20 degrees.
162	162	23 (d-5) Cost-of-living adjustment. For purposes of item (5)
163	163	24 of subsection (b), the cost-of-living adjustment for any
164	164	25 calendar year and for taxable years ending prior to the end of
165	165	26 the subsequent calendar year is equal to $2,050 times the
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176	176	1 percentage (if any) by which:
177	177	2 (1) the Consumer Price Index for the preceding
178	178	3 calendar year, exceeds
179	179	4 (2) the Consumer Price Index for the calendar year
180	180	5 2011.
181	181	6 The Consumer Price Index for any calendar year is the
182	182	7 average of the Consumer Price Index as of the close of the
183	183	8 12-month period ending on August 31 of that calendar year.
184	184	9 The term "Consumer Price Index" means the last Consumer
185	185	10 Price Index for All Urban Consumers published by the United
186	186	11 States Department of Labor or any successor agency.
187	187	12 If any cost-of-living adjustment is not a multiple of $25,
188	188	13 that adjustment shall be rounded to the next lowest multiple
189	189	14 of $25.
190	190	15 (e) Cross reference. See Article 3 for the manner of
191	191	16 determining base income allocable to this State.
192	192	17 (f) Application of Section 250. Section 250 does not apply
193	193	18 to the amendments to this Section made by Public Act 90-613.
194	194	19 (g) Notwithstanding any other provision of law, for
195	195	20 taxable years beginning on or after January 1, 2017, no
196	196	21 taxpayer may claim an exemption under this Section if the
197	197	22 taxpayer's adjusted gross income for the taxable year exceeds
198	198	23 (i) $500,000, in the case of spouses filing a joint federal tax
199	199	24 return or (ii) $250,000, in the case of all other taxpayers.
200	200	25 (Source: P.A. 103-9, eff. 6-7-23.)
201	201	26 Section 99. Effective date. This Act takes effect upon
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