Bill Text: IL HB1361 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-01-28 - Referred to Rules Committee [HB1361 Detail]

Download: Illinois-2025-HB1361-Introduced.html

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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.
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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
adding Section 246 as follows:
(35 ILCS 5/246 new)
Sec. 246. Small business property tax relief credit.
(a) For taxable years that end on or after December 31,
2025 and end on or before December 31, 2029, each qualified
small business is entitled to a credit against the taxes
imposed by subsections (a) and (b) of Section 201 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.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.

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(c) If the taxpayer is a partnership or Subchapter S
corporation, the credit is allowed to pass through to the
partners and shareholders as provided in Section 251.
(d) This Section is exempt from the provisions of Section
250.
(e) As used in this Section:
"Eligible real property" means property located in
Illinois that meets the following criteria:
(1) the taxpayer has an ownership interest in the
property, whether legal, equitable, or as a lessee, and
the taxpayer is liable for the payment of property taxes
on the property;
(2) the property is used to conduct the taxpayer's
business operations; and
(3) the property is not residential.
"Qualified small business" means a sole proprietorship,
partnership, corporation, joint venture, association, or
cooperative that conducts business in Illinois, employs fewer
than 50 employees in the State during the taxable year, and is
current with all State and federal tax obligations as of the
last day of the taxable year.