HB 4294

Select Language
  ×
The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.
Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.
The English language version is always the official and authoritative version of this website.
NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.
  Choose Language
  English
  Afrikaans
  Albanian
  Arabic
  Armenian
  Azerbaijani
  Basque
  Bengali
  Bosnian
  Catalan
  Croatian
  Czech
  Danish
  Dutch
  Esperanto
  Estonian
  Filipino
  Finnish
  French
  Galician
  Georgian
  German
  Greek
  Gujarati
  Haitian Creole
  Hausa
  Hawaiian
  Hebrew
  Hindi
  Hungarian
  Icelandic
  Indonesian
  Interlingua
  Interlingue
  Inuktitut
  Irish
  Italian
  Japanese
  Javanese
  Kannada
  Khmer
  Korean
  Latin
  Latvian
  Lithuanian
  Luxembourgish
  Macedonian
  Malagasy
  Malayalam
  Maltese
  Maori
  Marathi
  Myanmar
  Nepali
  Norwegian
  Odia
  Pashto
  Punjabi
  Romanian
  Russian
  Samoan
  Sango
  Sanskrit
  Sardinian
  Sindhi
  Sinhala
  Slovak
  Slovenian
  Somali
  Southern Sotho
  Spanish
  Sundanese
  Swahili
  Swedish
  Tamil
  Telugu
  Thai
  Tigrinya
  Tonga
  Turkish
  Ukrainian
  Urdu
  Vietnamese
  Welsh
  Xhosa
  Yiddish
  Yoruba
  Zulu
  Powered by Translate
  Close
Illinois General Assembly
Top Navigation Bar
  Translate
  Learn
  Select General Assembly
  Search the 104th General Assembly
  Enter search terms for legislation, members, committees, or schedules.
  ILGA.GOV
Mobile Top Bar
  Search the 104th General Assembly
  Enter keywords to search the Illinois General Assembly website.
Full Text of HB4294
Home
Legislation
Full Text
	HB4294 - 104th General Assembly
		Bill Status
		Full Text
		Votes
		Witness Slips
	Select Menu
	Bill Status
	Full Text
	Votes
	Witness Slips
	Printer Friendly Version
			Introduced
		Printer Friendly Version
		Introduced
			 Open PDF
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4294
Introduced 1/14/2026, by Rep. Kyle Moore
SYNOPSIS AS INTRODUCED:
35 ILCS 5/901
Amends the Illinois Income Tax Act. Increases the amount transferred from the General Revenue Fund to the Local Government Distributive Fund. Effective immediately.
LRB104 17054 HLH 30469 b
A BILL FOR
		HB4294		LRB104 17054 HLH 30469 b
1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
6    (35 ILCS 5/901)
7    Sec. 901. Collection authority.
8    (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e),
13(f), (g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury;
16money collected pursuant to subsections (c) and (d) of Section
17201 of this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State treasury
19[Treasury]; and money collected under Section 2505-650 of the
20Department of Revenue Law of the Civil Administrative Code of
21Illinois shall be paid into the Child Support Enforcement
22Trust Fund, a special fund outside the State treasury
23[Treasury], or to the State Disbursement Unit established under
		HB4294	- 2 -	LRB104 17054 HLH 30469 b
1Section 10-26 of the Illinois Public Aid Code, as directed by
2the Department of Healthcare and Family Services.
3    (b) Local Government Distributive Fund.
4        (1) Beginning August 1, 2017 and continuing through
5    July 31, 2022, the Treasurer shall transfer each month
6    from the General Revenue Fund to the Local Government
7    Distributive Fund an amount equal to the sum of: (i) 6.06%
8    (10% of the ratio of the 3% individual income tax rate
9    prior to 2011 to the 4.95% individual income tax rate
10    after July 1, 2017) of the net revenue realized from the
11    tax imposed by subsections (a) and (b) of Section 201 of
12    this Act upon individuals, trusts, and estates during the
13    preceding month; (ii) 6.85% (10% of the ratio of the 4.8%
14    corporate income tax rate prior to 2011 to the 7%
15    corporate income tax rate after July 1, 2017) of the net
16    revenue realized from the tax imposed by subsections (a)
17    and (b) of Section 201 of this Act upon corporations
18    during the preceding month; and (iii) beginning February
19    1, 2022, 6.06% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (2) Beginning August 1, 2022 and continuing through
23    July 31, 2023, the Treasurer shall transfer each month
24    from the General Revenue Fund to the Local Government
25    Distributive Fund an amount equal to the sum of: (i) 6.16%
26    of the net revenue realized from the tax imposed by
		HB4294	- 3 -	LRB104 17054 HLH 30469 b
1    subsections (a) and (b) of Section 201 of this Act upon
2    individuals, trusts, and estates during the preceding
3    month; (ii) 6.85% of the net revenue realized from the tax
4    imposed by subsections (a) and (b) of Section 201 of this
5    Act upon corporations during the preceding month; and
6    (iii) 6.16% of the net revenue realized from the tax
7    imposed by subsection (p) of Section 201 of this Act upon
8    electing pass-through entities.
9        (3) Beginning August 1, 2023 and continuing through 
10    June 30, 2026, the Treasurer shall transfer each month
11    from the General Revenue Fund to the Local Government
12    Distributive Fund an amount equal to the sum of: (i) 6.47%
13    of the net revenue realized from the tax imposed by
14    subsections (a) and (b) of Section 201 of this Act upon
15    individuals, trusts, and estates during the preceding
16    month; (ii) 6.85% of the net revenue realized from the tax
17    imposed by subsections (a) and (b) of Section 201 of this
18    Act upon corporations during the preceding month; and
19    (iii) 6.47% of the net revenue realized from the tax
20    imposed by subsection (p) of Section 201 of this Act upon
21    electing pass-through entities.
22        (4) Beginning July 1, 2026 and continuing through June 
23    30, 2027, the Treasurer shall transfer each month from the 
24    General Revenue Fund to the Local Government Distributive 
25    Fund an amount equal to the sum of: (i) 8.5% of the net 
26    revenue realized from the tax imposed by subsections (a) 
		HB4294	- 4 -	LRB104 17054 HLH 30469 b
1    and (b) of Section 201 of this Act upon individuals, 
2    trusts, and estates during the preceding month; (ii) 
3    9.355% of the net revenue realized from the tax imposed by 
4    subsections (a) and (b) of Section 201 of this Act upon 
5    corporations during the preceding month; and (iii) 8.5% of 
6    the net revenue realized from the tax imposed by 
7    subsection (p) of Section 201 of this Act upon electing 
8    pass-through entities.
9        (5) Beginning July 1, 2027 and continuing through June 
10    30, 2028, the Treasurer shall transfer each month from the 
11    General Revenue Fund to the Local Government Distributive 
12    Fund an amount equal to the sum of: (i) 9% of the net 
13    revenue realized from the tax imposed by subsections (a) 
14    and (b) of Section 201 of this Act upon individuals, 
15    trusts, and estates during the preceding month; (ii) 9.57% 
16    of the net revenue realized from the tax imposed by 
17    subsections (a) and (b) of Section 201 of this Act upon 
18    corporations during the preceding month; and (iii) 9% of 
19    the net revenue realized from the tax imposed by 
20    subsection (p) of Section 201 of this Act upon electing 
21    pass-through entities.
22        (6) Beginning July 1, 2028 and continuing through June 
23    30, 2029, the Treasurer shall transfer each month from the 
24    General Revenue Fund to the Local Government Distributive 
25    Fund an amount equal to the sum of: (i) 9.5% of the net 
26    revenue realized from the tax imposed by subsections (a) 
		HB4294	- 5 -	LRB104 17054 HLH 30469 b
1    and (b) of Section 201 of this Act upon individuals, 
2    trusts, and estates during the preceding month; (ii) 
3    9.785% of the net revenue realized from the tax imposed by 
4    subsections (a) and (b) of Section 201 of this Act upon 
5    corporations during the preceding month; and (iii) 9.5% of 
6    the net revenue realized from the tax imposed by 
7    subsection (p) of Section 201 of this Act upon electing 
8    pass-through entities.
9        (7) Beginning on July 1, 2029, the Treasurer shall 
10    transfer each month from the General Revenue Fund to the 
11    Local Government Distributive Fund an amount equal to: (i) 
12    10% of the net revenue realized from the tax imposed on 
13    individuals, trusts, estates, and corporations by 
14    subsections (a) and (b) of Section 201 of this Act during 
15    the preceding month; and (ii) 10% of the net revenue 
16    realized from the tax imposed by subsection (p) of Section 
17    201 of this Act upon electing pass-through entities.
18    Net revenue realized for a month shall be defined as the
19revenue from the tax imposed by subsections (a) and (b) of
20Section 201 of this Act which is deposited into the General
21Revenue Fund, the Education Assistance Fund, the Income Tax
22Surcharge Local Government Distributive Fund, the Fund for the
23Advancement of Education, and the Commitment to Human Services
24Fund during the month minus the amount paid out of the General
25Revenue Fund in State warrants during that same month as
26refunds to taxpayers for overpayment of liability under the
		HB4294	- 6 -	LRB104 17054 HLH 30469 b
1tax imposed by subsections (a) and (b) of Section 201 of this
2Act.
3    Notwithstanding any provision of law to the contrary,
4beginning on July 6, 2017 (the effective date of Public Act
5100-23), those amounts required under this subsection (b) to
6be transferred by the Treasurer into the Local Government
7Distributive Fund from the General Revenue Fund shall be
8directly deposited into the Local Government Distributive Fund
9as the revenue is realized from the tax imposed by subsections
10(a) and (b) of Section 201 of this Act.
11    (c) Deposits Into Income Tax Refund Fund.
12        (1) Beginning on January 1, 1989 and thereafter, the
13    Department shall deposit a percentage of the amounts
14    collected pursuant to subsections (a) and (b)(1), (2), and
15    (3) of Section 201 of this Act into a fund in the State
16    treasury known as the Income Tax Refund Fund. Beginning
17    with State fiscal year 1990 and for each fiscal year
18    thereafter, the percentage deposited into the Income Tax
19    Refund Fund during a fiscal year shall be the Annual
20    Percentage. For fiscal year 2011, the Annual Percentage
21    shall be 8.75%. For fiscal year 2012, the Annual
22    Percentage shall be 8.75%. For fiscal year 2013, the
23    Annual Percentage shall be 9.75%. For fiscal year 2014,
24    the Annual Percentage shall be 9.5%. For fiscal year 2015,
25    the Annual Percentage shall be 10%. For fiscal year 2018,
26    the Annual Percentage shall be 9.8%. For fiscal year 2019,
		HB4294	- 7 -	LRB104 17054 HLH 30469 b
1    the Annual Percentage shall be 9.7%. For fiscal year 2020,
2    the Annual Percentage shall be 9.5%. For fiscal year 2021,
3    the Annual Percentage shall be 9%. For fiscal year 2022,
4    the Annual Percentage shall be 9.25%. For fiscal year
5    2023, the Annual Percentage shall be 9.25%. For fiscal
6    year 2024, the Annual Percentage shall be 9.15%. For
7    fiscal year 2025, the Annual Percentage shall be 9.15%.
8    For fiscal year 2026, the Annual Percentage shall be
9    9.15%. For all other fiscal years, the Annual Percentage
10    shall be calculated as a fraction, the numerator of which
11    shall be the amount of refunds approved for payment by the
12    Department during the preceding fiscal year as a result of
13    overpayment of tax liability under subsections (a) and
14    (b)(1), (2), and (3) of Section 201 of this Act plus the
15    amount of such refunds remaining approved but unpaid at
16    the end of the preceding fiscal year, minus the amounts
17    transferred into the Income Tax Refund Fund from the
18    Tobacco Settlement Recovery Fund, and the denominator of
19    which shall be the amounts which will be collected
20    pursuant to subsections (a) and (b)(1), (2), and (3) of
21    Section 201 of this Act during the preceding fiscal year;
22    except that in State fiscal year 2002, the Annual
23    Percentage shall in no event exceed 7.6%. The Director of
24    Revenue shall certify the Annual Percentage to the
25    Comptroller on the last business day of the fiscal year
26    immediately preceding the fiscal year for which it is to
		HB4294	- 8 -	LRB104 17054 HLH 30469 b
1    be effective.
2        (2) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(6), (7), and
5    (8), (c) and (d) of Section 201 of this Act into a fund in
6    the State treasury known as the Income Tax Refund Fund.
7    Beginning with State fiscal year 1990 and for each fiscal
8    year thereafter, the percentage deposited into the Income
9    Tax Refund Fund during a fiscal year shall be the Annual
10    Percentage. For fiscal year 2011, the Annual Percentage
11    shall be 17.5%. For fiscal year 2012, the Annual
12    Percentage shall be 17.5%. For fiscal year 2013, the
13    Annual Percentage shall be 14%. For fiscal year 2014, the
14    Annual Percentage shall be 13.4%. For fiscal year 2015,
15    the Annual Percentage shall be 14%. For fiscal year 2018,
16    the Annual Percentage shall be 17.5%. For fiscal year
17    2019, the Annual Percentage shall be 15.5%. For fiscal
18    year 2020, the Annual Percentage shall be 14.25%. For
19    fiscal year 2021, the Annual Percentage shall be 14%. For
20    fiscal year 2022, the Annual Percentage shall be 15%. For
21    fiscal year 2023, the Annual Percentage shall be 14.5%.
22    For fiscal year 2024, the Annual Percentage shall be 14%.
23    For fiscal year 2025, the Annual Percentage shall be 14%.
24    For fiscal year 2026, the Annual Percentage shall be 14%.
25    For all other fiscal years, the Annual Percentage shall be
26    calculated as a fraction, the numerator of which shall be
		HB4294	- 9 -	LRB104 17054 HLH 30469 b
1    the amount of refunds approved for payment by the
2    Department during the preceding fiscal year as a result of
3    overpayment of tax liability under subsections (a) and
4    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
5    Act plus the amount of such refunds remaining approved but
6    unpaid at the end of the preceding fiscal year, and the
7    denominator of which shall be the amounts which will be
8    collected pursuant to subsections (a) and (b)(6), (7), and
9    (8), (c) and (d) of Section 201 of this Act during the
10    preceding fiscal year; except that in State fiscal year
11    2002, the Annual Percentage shall in no event exceed 23%.
12    The Director of Revenue shall certify the Annual
13    Percentage to the Comptroller on the last business day of
14    the fiscal year immediately preceding the fiscal year for
15    which it is to be effective.
16        (3) The Comptroller shall order transferred and the
17    Treasurer shall transfer from the Tobacco Settlement
18    Recovery Fund to the Income Tax Refund Fund (i)
19    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
20    2002, and (iii) $35,000,000 in January, 2003.
21    (d) Expenditures from Income Tax Refund Fund.
22        (1) Beginning January 1, 1989, money in the Income Tax
23    Refund Fund shall be expended exclusively for the purpose
24    of paying refunds resulting from overpayment of tax
25    liability under Section 201 of this Act and for making
26    transfers pursuant to this subsection (d), except that in
		HB4294	- 10 -	LRB104 17054 HLH 30469 b
1    State fiscal years 2022 and 2023, moneys in the Income Tax
2    Refund Fund shall also be used to pay one-time rebate
3    payments as provided under Sections 208.5 and 212.1.
4        (2) The Director shall order payment of refunds
5    resulting from overpayment of tax liability under Section
6    201 of this Act from the Income Tax Refund Fund only to the
7    extent that amounts collected pursuant to Section 201 of
8    this Act and transfers pursuant to this subsection (d) and
9    item (3) of subsection (c) have been deposited and
10    retained in the Fund.
11        (3) As soon as possible after the end of each fiscal
12    year, the Director shall order transferred and the State
13    Treasurer and State Comptroller shall transfer from the
14    Income Tax Refund Fund to the Personal Property Tax
15    Replacement Fund an amount, certified by the Director to
16    the Comptroller, equal to the excess of the amount
17    collected pursuant to subsections (c) and (d) of Section
18    201 of this Act deposited into the Income Tax Refund Fund
19    during the fiscal year over the amount of refunds
20    resulting from overpayment of tax liability under
21    subsections (c) and (d) of Section 201 of this Act paid
22    from the Income Tax Refund Fund during the fiscal year.
23        (4) As soon as possible after the end of each fiscal
24    year, the Director shall order transferred and the State
25    Treasurer and State Comptroller shall transfer from the
26    Personal Property Tax Replacement Fund to the Income Tax
		HB4294	- 11 -	LRB104 17054 HLH 30469 b
1    Refund Fund an amount, certified by the Director to the
2    Comptroller, equal to the excess of the amount of refunds
3    resulting from overpayment of tax liability under
4    subsections (c) and (d) of Section 201 of this Act paid
5    from the Income Tax Refund Fund during the fiscal year
6    over the amount collected pursuant to subsections (c) and
7    (d) of Section 201 of this Act deposited into the Income
8    Tax Refund Fund during the fiscal year.
9        (4.5) As soon as possible after the end of fiscal year
10    1999 and of each fiscal year thereafter, the Director
11    shall order transferred and the State Treasurer and State
12    Comptroller shall transfer from the Income Tax Refund Fund
13    to the General Revenue Fund any surplus remaining in the
14    Income Tax Refund Fund as of the end of such fiscal year;
15    excluding for fiscal years 2000, 2001, and 2002 amounts
16    attributable to transfers under item (3) of subsection (c)
17    less refunds resulting from the earned income tax credit,
18    and excluding for fiscal year 2022 amounts attributable to
19    transfers from the General Revenue Fund authorized by
20    Public Act 102-700. For purposes of this item (4.5),
21    "surplus" means the cash balance in the Income Tax Refund
22    Fund at the end of such fiscal year, less amounts
23    attributable to transfers under item (3) of this
24    subsection (d).
25        (5) This Act shall constitute an irrevocable and
26    continuing appropriation from the Income Tax Refund Fund
		HB4294	- 12 -	LRB104 17054 HLH 30469 b
1    for the purposes of (i) paying refunds upon the order of
2    the Director in accordance with the provisions of this
3    Section and (ii) paying one-time rebate payments under
4    Sections 208.5 and 212.1.
5    (e) Deposits into the Education Assistance Fund and the
6Income Tax Surcharge Local Government Distributive Fund. On
7July 1, 1991, and thereafter, of the amounts collected
8pursuant to subsections (a) and (b) of Section 201 of this Act,
9minus deposits into the Income Tax Refund Fund, the Department
10shall deposit 7.3% into the Education Assistance Fund in the
11State treasury [Treasury]. Beginning July 1, 1991, and
12continuing through January 31, 1993, of the amounts collected
13pursuant to subsections (a) and (b) of Section 201 of the
14Illinois Income Tax Act, minus deposits into the Income Tax
15Refund Fund, the Department shall deposit 3.0% into the Income
16Tax Surcharge Local Government Distributive Fund in the State
17treasury [Treasury]. Beginning February 1, 1993 and continuing
18through June 30, 1993, of the amounts collected pursuant to
19subsections (a) and (b) of Section 201 of the Illinois Income
20Tax Act, minus deposits into the Income Tax Refund Fund, the
21Department shall deposit 4.4% into the Income Tax Surcharge
22Local Government Distributive Fund in the State treasury
23[Treasury]. Beginning July 1, 1993, and continuing through June
2430, 1994, of the amounts collected under subsections (a) and
25(b) of Section 201 of this Act, minus deposits into the Income
26Tax Refund Fund, the Department shall deposit 1.475% into the
		HB4294	- 13 -	LRB104 17054 HLH 30469 b
1Income Tax Surcharge Local Government Distributive Fund in the
2State treasury [Treasury].
3    (f) Deposits into the Fund for the Advancement of
4Education. Beginning February 1, 2015, the Department shall
5deposit the following portions of the revenue realized from
6the tax imposed upon individuals, trusts, and estates by
7subsections (a) and (b) of Section 201 of this Act, minus
8deposits into the Income Tax Refund Fund, into the Fund for the
9Advancement of Education:
10        (1) beginning February 1, 2015, and prior to February
11    1, 2025, 1/30; and
12        (2) beginning February 1, 2025, 1/26.
13    If the rate of tax imposed by subsection (a) and (b) of
14Section 201 is reduced pursuant to Section 201.5 of this Act,
15the Department shall not make the deposits required by this
16subsection (f) on or after the effective date of the
17reduction.
18    (g) Deposits into the Commitment to Human Services Fund.
19Beginning February 1, 2015, the Department shall deposit the
20following portions of the revenue realized from the tax
21imposed upon individuals, trusts, and estates by subsections
22(a) and (b) of Section 201 of this Act, minus deposits into the
23Income Tax Refund Fund, into the Commitment to Human Services
24Fund:
25        (1) beginning February 1, 2015, and prior to February
26    1, 2025, 1/30; and
		HB4294	- 14 -	LRB104 17054 HLH 30469 b
1        (2) beginning February 1, 2025, 1/26.
2    If the rate of tax imposed by subsection (a) and (b) of
3Section 201 is reduced pursuant to Section 201.5 of this Act,
4the Department shall not make the deposits required by this
5subsection (g) on or after the effective date of the
6reduction.
7    (h) Deposits into the Tax Compliance and Administration
8Fund. Beginning on the first day of the first calendar month to
9occur on or after August 26, 2014 (the effective date of Public
10Act 98-1098), each month the Department shall pay into the Tax
11Compliance and Administration Fund, to be used, subject to
12appropriation, to fund additional auditors and compliance
13personnel at the Department, an amount equal to 1/12 of 5% of
14the cash receipts collected during the preceding fiscal year
15by the Audit Bureau of the Department from the tax imposed by
16subsections (a), (b), (c), and (d) of Section 201 of this Act,
17net of deposits into the Income Tax Refund Fund made from those
18cash receipts.
19(Source: P.A. 103-8, eff. 6-7-23; 103-154, eff. 6-30-23;
20103-588, eff. 6-5-24; 104-2, eff. 6-16-25; 104-6, eff.
216-16-25; revised 9-10-25.)
22    Section 99. Effective date. This Act takes effect upon
23becoming law.