Bill Text: IL HB1192 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-11 - Assigned to Revenue & Finance Committee [HB1192 Detail]

Download: Illinois-2025-HB1192-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1192 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
35 ILCS 5/208 from Ch. 120, par. 2-208
Amends the Illinois Income Tax Act. Provides that, if the amount of the credit for residential real property taxes exceeds the taxpayer's liability, that amount shall be refunded if the taxpayer is 65 years or older and has a federal adjusted gross income of not more than $50,000. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 208 as follows:
(35 ILCS 5/208) (from Ch. 120, par. 2-208)
Sec. 208. Tax credit for residential real property taxes.
Beginning with tax years ending on or after December 31, 1991,
every individual taxpayer shall be entitled to a tax credit
equal to 5% of real property taxes paid by such taxpayer during
the taxable year on the principal residence of the taxpayer.
In the case of multi-unit or multi-use structures and farm
dwellings, the taxes on the taxpayer's principal residence
shall be that portion of the total taxes which is attributable
to such principal residence. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
Section if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return, or (ii) $250,000, in the
case of all other taxpayers.
For taxable years beginning on or after January 1, 2025,
if the amount of the credit exceeds the taxpayer's income tax

HB1192 - 2 - LRB104 03366 HLH 13388 b
liability for the applicable tax year, then the excess credit
shall be refunded to the taxpayer if the taxpayer is 65 years
old or older and has a federal adjusted gross income of not
more than $50,000. The amount of a refund shall not be included
in the taxpayer's income or resources for the purposes of
determining eligibility or benefit level in any means-tested
benefit program administered by a governmental entity unless
required by federal law.
This Section is exempt from the provisions of Section 250.
(Source: P.A. 101-8, see Section 99 for effective date;
102-558, eff. 8-20-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.