104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately. LRB104 11443 HLH 21531 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED: New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately. LRB104 11443 HLH 21531 b LRB104 11443 HLH 21531 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new
New Act
30 ILCS 105/5.1030 new
Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Circuit Breaker Property Tax Relief Act.
6 Section 5. Purpose. The purpose of this Act is to assist
7 homeowners in this State to retain private housing of their
8 choice, to relieve those residents from the burdens of
9 extraordinary property tax spikes, and to preserve the
10 character and unique qualities of the neighborhoods in which
11 they live.
12 Section 10. Definitions. As used in this Act, unless the
13 context otherwise requires, words and phrases have the
14 following meanings.
15 "Claimant" means a homeowner who has filed a claim for a
16 circuit breaker property tax relief grant under this Act.
17 "Claim year" means the calendar year prior to the period
18 of time during which a claimant may file an application for
19 benefits under this Act.
20 "Department" means the Department of Revenue.
21 "Federal poverty level" means the federal poverty income
22 guidelines as determined annually by the United States
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB1978 Introduced 2/6/2025, by Sen. Patrick J. Joyce SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.1030 new New Act 30 ILCS 105/5.1030 new
New Act
30 ILCS 105/5.1030 new
Creates the Circuit Breaker Property Tax Relief Act. Provides that an individual who: (i) is domiciled in this State; (ii) is eligible for and receives either the general homestead exemption the general alternative homestead exemption; (iii) has experienced property tax bill spikes; and (iv) has an income that meets a specified income eligibility limitation is eligible for a grant of a portion of their bill spike. Provides that the maximum amount of grant to which a claimant is entitled is the one-half of the claimant's tax bill spike. Creates the Circuit Breaker Property Tax Relief Fund for the purpose of making grants to claimants. Amends the State Finance Act to make conforming changes. Effective immediately.
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A BILL FOR
New Act
30 ILCS 105/5.1030 new
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1 Department of Health and Human Services and updated
2 periodically in the Federal Register by that Department under
3 the authority of 42 U.S.C. 9902(2).
4 "Household" means a claimant or a claimant and his or her
5 spouse, if any, living together in the same residence. An
6 additional resident may be counted in determining household
7 size.
8 "Household income" means the combined income of the
9 members of a household.
10 "Income" means adjusted gross income, properly reportable
11 for federal income tax purposes under the provisions of the
12 Internal Revenue Code, modified by adding thereto the sum of
13 the following amounts to the extent deducted or excluded from
14 gross income in the computation of adjusted gross income:
15 (1) An amount equal to all amounts paid or accrued as
16 interest or dividends during the taxable year;
17 (2) An amount equal to the amount of tax imposed by the
18 Illinois Income Tax Act paid for the taxable year;
19 (3) An amount equal to all amounts received during the
20 taxable year as an annuity under an annuity, endowment or
21 life insurance contract or under any other contract or
22 agreement;
23 (4) An amount equal to the amount of benefits paid
24 under the Federal Social Security Act during the taxable
25 year;
26 (5) An amount equal to the amount of benefits paid
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1 under the Railroad Retirement Act during the taxable year;
2 (6) An amount equal to the total amount of cash public
3 assistance payments received from any governmental agency
4 during the taxable year other than benefits received
5 pursuant to this Act;
6 (7) An amount equal to any net operating loss
7 carryover deduction or capital loss carryover deduction
8 during the taxable year; and
9 (8) An amount equal to any benefits received under the
10 Workers' Compensation Act or the Workers' Occupational
11 Diseases Act during the taxable year.
12 "Income" does not include any distributions or items of
13 income described under subparagraph (X) of paragraph (2) of
14 subsection (a) of Section 203 of the Illinois Income Tax Act.
15 "Income eligibility limitation" means a household income
16 not to exceed 4 times the federal poverty level for the
17 household size. As an alternative income valuation, a
18 homeowner who is enrolled in any of the following programs may
19 be presumed to have household income that does not exceed the
20 maximum income limitation for that tax year as required by
21 this Section: Aid to the Aged, Blind or Disabled (AABD)
22 Program or the Supplemental Nutrition Assistance Program
23 (SNAP), both of which are administered by the Department of
24 Human Services; the Low Income Home Energy Assistance Program
25 (LIHEAP), which is administered by the Department of Commerce
26 and Economic Opportunity; The Benefit Access program, which is
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1 administered by the Department on Aging; and the Senior
2 Citizens Real Estate Tax Deferral Program.
3 "Internal Revenue Code" means the United States Internal
4 Revenue Code of 1986 or any successor law or laws relating to
5 federal income taxes in effect for the year.
6 "Property taxes accrued" means the ad valorem property
7 taxes levied against a residence, but does not include special
8 assessments, interest, or charges for service. In the case of
9 real estate improved with a multi-dwelling or multipurpose
10 building, "property taxes accrued" means property taxes levied
11 against a residence within such a building in an amount equal
12 to the same percentage of the total property taxes levied
13 against that real estate as improved as the value of the
14 residence is to the total value of the building. If the
15 building is a condominium, the percentage shall be that set
16 forth for each residence in the condominium declaration. If
17 the multi-dwelling building is owned and operated as a
18 cooperative, the value of an individual residence is the value
19 of the interest in the cooperative held by the owner of record
20 of the legal or equitable interest, other than a leasehold
21 interest, in the cooperative which confers the right to occupy
22 that residence. In determining the amount of grant under
23 Section 20, the applicable "property taxes accrued", as
24 determined under this Section, are those due and owing for the
25 last preceding taxable year.
26 In addition, if the residence is a mobile home as defined
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1 in and subject to the tax imposed by the Mobile Home Local
2 Services Tax Act, "property taxes accrued" includes the amount
3 of privilege tax paid during the calendar year for which
4 benefits are claimed under that Act on that mobile home. If (i)
5 the residence is a mobile home, (ii) the resident is the record
6 owner of the property upon which the mobile home is located,
7 and (iii) the resident is liable for the taxes imposed under
8 the Property Tax Code for both the mobile home and the
9 property, then "property taxes accrued" includes the amount of
10 property taxes paid on both the mobile home and the property
11 upon which the mobile home is located.
12 "Property tax bill spike" means that the home has not been
13 improved other than by routine maintenance, has been classed
14 the same way since the year prior to the last reassessment
15 prior to 2022, has had the same owner since the year prior to
16 the last reassessment prior to 2022 or was inherited from the
17 same owner, and that the property taxes accrued for the
18 property have grown at least 25% year over year in any single
19 year since the year prior to the last reassessment prior to
20 2022, provided that a tax bill increase of $500 or less shall
21 not constitute a bill spike.
22 "Residence" means the principal dwelling place occupied in
23 this State by a household and so much of the surrounding land
24 as is reasonably necessary for use of the dwelling as a home,
25 and includes rental residential property owned by the occupant
26 within a multipurpose building. If the assessor has
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1 established a specific legal description for a portion of
2 property constituting the residence, then that portion of
3 property shall be deemed "residence" for the purposes of this
4 Act.
5 "Taxable year" means the calendar year during which ad
6 valorem property taxes payable in the next succeeding calendar
7 year were levied.
8 Section 15. Circuit Breaker Property Tax Relief Fund.
9 (a) There is created in the State treasury a Circuit
10 Breaker Property Tax Relief Fund.
11 (b) The Circuit Breaker Property Tax Relief Fund may
12 accept funds from the State and from other entities. Once
13 grants have been paid, any remaining funds shall be returned
14 first to the State and then to other entities that may have
15 contributed funds. Other entities that contribute funds may
16 elect to leave funds in the Circuit Breaker Property Tax
17 Relief Fund for payments related to subsequent tax years.
18 (c) Payments from the Circuit Breaker Property Tax Relief
19 Fund on behalf of or for the benefit of claimants shall be made
20 to coincide as closely as possible with the final installment
21 of property tax bills and may be issued directly to local
22 taxing bodies on behalf of the claimant, provided that the
23 property tax bill for claimants is reduced by the amount of
24 their claim, whether through an abatement or other means.
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1 Section 20. Amount of grant.
2 (a) Any individual who: (i) is domiciled in this State;
3 (ii) is eligible for and receives either a general homestead
4 exemption under Section 15-175 of the Property Tax Code or a
5 general alternative homestead exemption under Section 15-176
6 of the Property Tax Code; (iii) has experienced property tax
7 bill spikes; and (iv) has an income that meets the income
8 eligibility limitation is eligible for a grant of a portion of
9 their bill spike.
10 (b) Except as otherwise provided in this Act, the maximum
11 amount of grant to which a claimant is entitled is the one-half
12 of the claimant's tax bill spike.
13 (c) If title to the residence is held jointly by the
14 claimant with a person who is not a member of his or her
15 household, the amount of property taxes accrued used in
16 computing the amount of grant to which he or she is entitled
17 shall be the same percentage of property taxes accrued as is
18 the percentage of ownership held by the claimant in the
19 residence.
20 Section 25. Application.
21 (a) The Chief County Assessment Officer shall establish
22 the content, required eligibility and identification
23 information, use of social security numbers, and manner of
24 applying for benefits in a simplified format under this Act.
25 (b) Applications for grants under this Act shall be filed
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1 online.
2 (c) Applications must be filed during the time period
3 prescribed by the Chief County Assessment Officer.
4 Section 30. Procedure.
5 (a) Claims must be filed after January 1 on forms
6 prescribed by the Chief County Assessment Officer. No claim
7 may be filed more than one year after December 31 of the tax
8 year for which the claim is filed.
9 (b) The right to file a claim under this Act shall be
10 personal to the claimant and shall not survive his death, but
11 such right may be exercised on behalf of a claimant by his
12 legal guardian or attorney-in-fact. If a claimant dies after
13 having filed a timely claim, the amount thereof shall be
14 disbursed on behalf of a person who inherited title to the
15 house, provided that such person resided with the claimant at
16 the time he or she filed the claim.
17 (c) Only one member of a household may file a claim under
18 this Act in any calendar year. If both members of a household
19 are otherwise entitled to claim a grant under this Act, they
20 must agree as to which of them will file a claim for that year.
21 (d) A person may not under any circumstances charge a fee
22 to a claimant under this Act for assistance in completing an
23 application form for a property tax relief grant under this
24 Act.
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1 Section 35. Administration.
2 (a) Upon receipt of a timely filed claim, the Chief County
3 Assessment Officer shall determine whether the claimant is a
4 person entitled to a grant under this Act and the amount of
5 grant to which he is entitled under this Act. The Chief County
6 Assessment Officer may require the claimant to furnish
7 reasonable proof of the statements of domicile, household
8 income, property taxes accrued and other matters on which
9 entitlement is based, and may withhold approval of a grant
10 until such additional proof is furnished. If the Chief County
11 Assessment Officer provides such information from other
12 records available to them, the claimant may rebut or augment
13 such information.
14 (b) The Chief County Assessment Officer shall deny claims
15 which have been fraudulently prepared or when he or she finds
16 that the claimant has acquired title to his residence or has
17 paid rent for his residence primarily for the purpose of
18 receiving a grant under this Act.
19 Section 40. Payment and denial of claims.
20 (a) In general. The Fund shall make payments, from
21 appropriations made for that purpose of grants to claimants
22 under this Act and from other entities, in the amounts to which
23 the Chief County Assessment Officer has determined they are
24 entitled, respectively. If a claim is denied, the Chief County
25 Assessment Officer shall cause written notice of that denial
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1 and the reasons for that denial to be sent to the claimant.
2 (b) Payment of claims one dollar and under. Where the
3 amount of the grant computed under Section 20 is less than one
4 dollar, the claimant shall receive one dollar.
5 (c) Right to appeal. Any person aggrieved by an action or
6 determination arising under this Act may request in writing
7 reconsideration of that action or determination, setting out
8 the facts upon which the request is based.
9 Section 45. Fraud; error.
10 (a) Any person who files a fraudulent claim for a grant
11 under this Act, or who for compensation prepares a claim for a
12 grant and knowingly enters false information on an application
13 for any claimant under this Act, or who fraudulently files
14 multiple applications, files a fraudulent request for payment,
15 is guilty of a Class 4 felony for the first offense and is
16 guilty of a Class 3 felony for each subsequent offense.
17 (b) The Department may recover from a claimant any amount
18 paid to that claimant under this Act on account of an erroneous
19 or fraudulent claim, together with 6% interest per year.
20 Amounts recoverable from a claimant by the Department under
21 this Act may, but need not, be recovered by offsetting the
22 amount owed against any future grant payable to the person
23 under this Act.
24 (c) A prosecution for a violation of this Section may be
25 commenced at any time within 3 years of the commission of that
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1 violation.
2 Section 50. Arrangements. No inference, implication, or
3 presumption of legislative construction shall be drawn or made
4 by reason of the location or grouping of any particular
5 Section or provision of this Act.
6 Section 55. Severability. If any clause, sentence,
7 Section, provision or part of this Act or the application
8 thereof to any person or circumstance shall be adjudged to be
9 unconstitutional, the remainder of this Act or its application
10 to persons or circumstances other than those to which it is
11 held invalid, shall not be affected thereby.
12 Section 60. Rules.
13 (a) Notwithstanding any other provision to the contrary,
14 the Chief County Assessment Officer may adopt rules regarding
15 applications, proof of eligibility, required identification
16 information, use of social security numbers, and counting of
17 income.
18 (b) The Chief County Assessment Officer may, subject to
19 appropriations made for that purpose:
20 (1) attempt to secure the cooperation of appropriate
21 federal, State and local agencies in securing the names
22 and addresses of persons to whom this Act pertains;
23 (2) prepare a mailing list of persons eligible for
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1 grants under this Act; and
2 (3) secure the cooperation of the Department of
3 Revenue, other State agencies, local business
4 establishments, and interest groups to educate the public
5 about the application process under this Act to those
6 eligible to file claims.
7 Section 900. The State Finance Act is amended by adding
8 Section 5.1030 as follows:
9 (30 ILCS 105/5.1030 new)
10 Sec. 5.1030. The Circuit Breaker Property Tax Relief Fund.
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