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SB 3050

Illinois Senate•In Senate Committee

Summary

SB 3050, “INCOME TAX-CREDIT-ORGAN DONOR”, was introduced in the Senate on Jan 29, 2026 by Sen. Julie Morrison (D) with 3 co-sponsors. It was referred to Assignments, and last saw action on May 22, 2026: Rule 3-9(a) / Re-referred to Assignments.

Record

Text

SB 3050 has 3 co-sponsors.

sb3050/introduced.txt
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Full Text of SB3050
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	SB3050 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3050
Introduced 1/28/2026, by Sen. Julie A. Morrison
SYNOPSIS AS INTRODUCED:
35 ILCS 5/704A
Amends the Illinois Income Tax Act. Provides that a withholding tax credit for employers that grant all of their employees the option of taking a paid leave of absence for the purpose of serving as an organ donor or bone marrow donor also applies to public employers. Effective immediately.
LRB104 16592 HLH 29991 b
A BILL FOR
		SB3050		LRB104 16592 HLH 29991 b
    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 704A as follows:
    (35 ILCS 5/704A)
    Sec. 704A. Employer's return and payment of tax withheld.
    (a) In general, every employer who deducts and withholds
or is required to deduct and withhold tax under this Act on or
after January 1, 2008 shall make those payments and returns as
provided in this Section.
    (b) Returns. Every employer shall, in the form and manner
required by the Department, make returns with respect to taxes
withheld or required to be withheld under this Article 7 for
each quarter beginning on or after January 1, 2008, on or
before the last day of the first month following the close of
that quarter.
    (c) Payments. With respect to amounts withheld or required
to be withheld on or after January 1, 2008:
        (1) Semi-weekly payments. For each calendar year, each
    employer who withheld or was required to withhold more
    than $12,000 during the one-year period ending on June 30
    of the immediately preceding calendar year, payment must
		SB3050	- 2 -	LRB104 16592 HLH 29991 b
    be made:
            (A) on or before each Friday of the calendar year,
        for taxes withheld or required to be withheld on the
        immediately preceding Saturday, Sunday, Monday, or
        Tuesday;
            (B) on or before each Wednesday of the calendar
        year, for taxes withheld or required to be withheld on
        the immediately preceding Wednesday, Thursday, or
        Friday.
        Beginning with calendar year 2011, payments made under
    this paragraph (1) of subsection (c) must be made by
    electronic funds transfer.
        (2) Semi-weekly payments. Any employer who withholds
    or is required to withhold more than $12,000 in any
    quarter of a calendar year is required to make payments on
    the dates set forth under item (1) of this subsection (c)
    for each remaining quarter of that calendar year and for
    the subsequent calendar year.
        (3) Monthly payments. Each employer, other than an
    employer described in items (1) or (2) of this subsection,
    shall pay to the Department, on or before the 15th day of
    each month the taxes withheld or required to be withheld
    during the immediately preceding month.
        (4) Payments with returns. Each employer shall pay to
    the Department, on or before the due date for each return
    required to be filed under this Section, any tax withheld
		SB3050	- 3 -	LRB104 16592 HLH 29991 b
    or required to be withheld during the period for which the
    return is due and not previously paid to the Department.
    (d) Regulatory authority. The Department may, by rule:
        (1) Permit employers, in lieu of the requirements of
    subsections (b) and (c), to file annual returns due on or
    before January 31 of the year for taxes withheld or
    required to be withheld during the previous calendar year
    and, if the aggregate amounts required to be withheld by
    the employer under this Article 7 (other than amounts
    required to be withheld under Section 709.5) do not exceed
    $1,000 for the previous calendar year, to pay the taxes
    required to be shown on each such return no later than the
    due date for such return.
        (2) Provide that any payment required to be made under
    subsection (c)(1) or (c)(2) is deemed to be timely to the
    extent paid by electronic funds transfer on or before the
    due date for deposit of federal income taxes withheld
    from, or federal employment taxes due with respect to, the
    wages from which the Illinois taxes were withheld.
        (3) Designate one or more depositories to which
    payment of taxes required to be withheld under this
    Article 7 must be paid by some or all employers.
        (4) Increase the threshold dollar amounts at which
    employers are required to make semi-weekly payments under
    subsection (c)(1) or (c)(2).
    (e) Annual return and payment. Every employer who deducts
		SB3050	- 4 -	LRB104 16592 HLH 29991 b
and withholds or is required to deduct and withhold tax from a
person engaged in domestic service employment, as that term is
defined in Section 3510 of the Internal Revenue Code, may
comply with the requirements of this Section with respect to
such employees by filing an annual return and paying the taxes
required to be deducted and withheld on or before the 15th day
of the fourth month following the close of the employer's
taxable year. The Department may allow the employer's return
to be submitted with the employer's individual income tax
return or to be submitted with a return due from the employer
under Section 1400.2 of the Unemployment Insurance Act.
    (f) Magnetic media and electronic filing. With respect to
taxes withheld in calendar years prior to 2017, any W-2 Form
that, under the Internal Revenue Code and regulations
promulgated thereunder, is required to be submitted to the
Internal Revenue Service on magnetic media or electronically
must also be submitted to the Department on magnetic media or
electronically for Illinois purposes, if required by the
Department.
    With respect to taxes withheld in 2017 and subsequent
calendar years, the Department may, by rule, require that any
return (including any amended return) under this Section and
any W-2 Form that is required to be submitted to the Department
must be submitted on magnetic media or electronically.
    The due date for submitting W-2 Forms shall be as
prescribed by the Department by rule.
		SB3050	- 5 -	LRB104 16592 HLH 29991 b
    (g) For amounts deducted or withheld after December 31,
2009, a taxpayer who makes an election under subsection (f) of
Section 5-15 of the Economic Development for a Growing Economy
Tax Credit Act for a taxable year shall be allowed a credit
against payments due under this Section for amounts withheld
during the first calendar year beginning after the end of that
taxable year equal to the amount of the credit for the
incremental income tax attributable to full-time employees of
the taxpayer awarded to the taxpayer by the Department of
Commerce and Economic Opportunity under the Economic
Development for a Growing Economy Tax Credit Act for the
taxable year and credits not previously claimed and allowed to
be carried forward under Section 211(4) of this Act as
provided in subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act. The credit
or credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
calendar year, the excess may be carried forward and applied
against the taxpayer's liability under this Section in the
succeeding calendar years as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest year for which there
is a tax liability. If there are credits from more than one
taxable year that are available to offset a liability, the
		SB3050	- 6 -	LRB104 16592 HLH 29991 b
earlier credit shall be applied first. Each employer who
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
under subsection (f) of Section 5-15 of the Economic
Development for a Growing Economy Tax Credit Act must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
the provisions of Section 250 of this Act. No credit awarded
under the Economic Development for a Growing Economy Tax
Credit Act for agreements entered into on or after January 1,
2015 may be credited against payments due under this Section.
    (g-1) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Reimagining
Energy and Vehicles in Illinois Act shall be allowed a credit
against payments due under this Section for amounts withheld
during the first quarterly reporting period beginning after
the certificate is issued equal to the portion of the REV
Illinois Credit attributable to the incremental income tax
attributable to new employees and retained employees as
certified by the Department of Commerce and Economic
		SB3050	- 7 -	LRB104 16592 HLH 29991 b
Opportunity pursuant to an agreement with the taxpayer under
the Reimagining Energy and Vehicles in Illinois Act for the
taxable year. The credit or credits may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit or credits
exceeds the total payments due under this Section with respect
to amounts withheld during the quarterly reporting period, the
excess may be carried forward and applied against the
taxpayer's liability under this Section in the succeeding
quarterly reporting period as allowed to be carried forward
under paragraph (4) of Section 211 of this Act. The credit or
credits shall be applied to the earliest quarterly reporting
period for which there is a tax liability. If there are credits
from more than one quarterly reporting period that are
available to offset a liability, the earlier credit shall be
applied first. Each employer who deducts and withholds or is
required to deduct and withhold tax under this Act and who
retains income tax withholdings this subsection must make a
return with respect to such taxes and retained amounts in the
form and manner that the Department, by rule, requires and pay
to the Department or to a depositary designated by the
Department those withheld taxes not retained by the taxpayer.
For purposes of this subsection (g-1), the term taxpayer shall
include taxpayer and members of the taxpayer's unitary
business group as defined under paragraph (27) of subsection
(a) of Section 1501 of this Act. This Section is exempt from
		SB3050	- 8 -	LRB104 16592 HLH 29991 b
the provisions of Section 250 of this Act.
    (g-2) For amounts deducted or withheld after December 31,
2024, a taxpayer who makes an election under the Manufacturing
Illinois Chips for Real Opportunity (MICRO) Act shall be
allowed a credit against payments due under this Section for
amounts withheld during the first quarterly reporting period
beginning after the certificate is issued equal to the portion
of the MICRO Illinois Credit attributable to the incremental
income tax attributable to new employees and retained
employees as certified by the Department of Commerce and
Economic Opportunity pursuant to an agreement with the
taxpayer under the Manufacturing Illinois Chips for Real
Opportunity (MICRO) Act for the taxable year. The credit or
credits may not reduce the taxpayer's obligation for any
payment due under this Section to less than zero. If the amount
of the credit or credits exceeds the total payments due under
this Section with respect to amounts withheld during the
quarterly reporting period, the excess may be carried forward
and applied against the taxpayer's liability under this
Section in the succeeding quarterly reporting period as
allowed to be carried forward under paragraph (4) of Section
211 of this Act. The credit or credits shall be applied to the
earliest quarterly reporting period for which there is a tax
liability. If there are credits from more than one quarterly
reporting period that are available to offset a liability, the
earlier credit shall be applied first. Each employer who
		SB3050	- 9 -	LRB104 16592 HLH 29991 b
deducts and withholds or is required to deduct and withhold
tax under this Act and who retains income tax withholdings
this subsection must make a return with respect to such taxes
and retained amounts in the form and manner that the
Department, by rule, requires and pay to the Department or to a
depositary designated by the Department those withheld taxes
not retained by the taxpayer. For purposes of this subsection,
the term taxpayer shall include taxpayer and members of the
taxpayer's unitary business group as defined under paragraph
(27) of subsection (a) of Section 1501 of this Act. This
Section is exempt from the provisions of Section 250 of this
Act.
    (h) An employer may claim a credit against payments due
under this Section for amounts withheld during the first
calendar year ending after the date on which a tax credit
certificate was issued under Section 35 of the Small Business
Job Creation Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Section
to less than zero. If the amount of the credit exceeds the
total payments due under this Section with respect to amounts
withheld during the calendar year, the excess may be carried
forward and applied against the taxpayer's liability under
this Section in the 5 succeeding calendar years. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one calendar
		SB3050	- 10 -	LRB104 16592 HLH 29991 b
year that are available to offset a liability, the earlier
credit shall be applied first. This Section is exempt from the
provisions of Section 250 of this Act.
    (i) Each employer with 50 or fewer full-time equivalent
employees during the reporting period may claim a credit
against the payments due under this Section for each qualified
employee in an amount equal to the maximum credit allowable.
The credit may be taken against payments due for reporting
periods that begin on or after January 1, 2020, and end on or
before December 31, 2027. An employer may not claim a credit
for an employee who has worked fewer than 90 consecutive days
immediately preceding the reporting period; however, such
credits may accrue during that 90-day period and be claimed
against payments under this Section for future reporting
periods after the employee has worked for the employer at
least 90 consecutive days. In no event may the credit exceed
the employer's liability for the reporting period. Each
employer who deducts and withholds or is required to deduct
and withhold tax under this Act and who retains income tax
withholdings under this subsection must make a return with
respect to such taxes and retained amounts in the form and
manner that the Department, by rule, requires and pay to the
Department or to a depositary designated by the Department
those withheld taxes not retained by the employer.
    For each reporting period, the employer may not claim a
credit or credits for more employees than the number of
		SB3050	- 11 -	LRB104 16592 HLH 29991 b
employees making less than the minimum or reduced wage for the
current calendar year during the last reporting period of the
preceding calendar year. Notwithstanding any other provision
of this subsection, an employer shall not be eligible for
credits for a reporting period unless the average wage paid by
the employer per employee for all employees making less than
$55,000 during the reporting period is greater than the
average wage paid by the employer per employee for all
employees making less than $55,000 during the same reporting
period of the prior calendar year.
    For purposes of this subsection (i):
    "Compensation paid in Illinois" has the meaning ascribed
to that term under Section 304(a)(2)(B) of this Act.
    "Employer" and "employee" have the meaning ascribed to
those terms in the Minimum Wage Law, except that "employee"
also includes employees who work for an employer with fewer
than 4 employees. Employers that operate more than one
establishment pursuant to a franchise agreement or that
constitute members of a unitary business group shall aggregate
their employees for purposes of determining eligibility for
the credit.
    "Full-time equivalent employees" means the ratio of the
number of paid hours during the reporting period and the
number of working hours in that period.
    "Maximum credit" means the percentage listed below of the
difference between the amount of compensation paid in Illinois
		SB3050	- 12 -	LRB104 16592 HLH 29991 b
to employees who are paid not more than the required minimum
wage reduced by the amount of compensation paid in Illinois to
employees who were paid less than the current required minimum
wage during the reporting period prior to each increase in the
required minimum wage on January 1. If an employer pays an
employee more than the required minimum wage and that employee
previously earned less than the required minimum wage, the
employer may include the portion that does not exceed the
required minimum wage as compensation paid in Illinois to
employees who are paid not more than the required minimum
wage.
        (1) 25% for reporting periods beginning on or after
    January 1, 2020 and ending on or before December 31, 2020;
        (2) 21% for reporting periods beginning on or after
    January 1, 2021 and ending on or before December 31, 2021;
        (3) 17% for reporting periods beginning on or after
    January 1, 2022 and ending on or before December 31, 2022;
        (4) 13% for reporting periods beginning on or after
    January 1, 2023 and ending on or before December 31, 2023;
        (5) 9% for reporting periods beginning on or after
    January 1, 2024 and ending on or before December 31, 2024;
        (6) 5% for reporting periods beginning on or after
    January 1, 2025 and ending on or before December 31, 2025.
    The amount computed under this subsection may continue to
be claimed for reporting periods beginning on or after January
1, 2026 and:
		SB3050	- 13 -	LRB104 16592 HLH 29991 b
        (A) ending on or before December 31, 2026 for
    employers with more than 5 employees; or
        (B) ending on or before December 31, 2027 for
    employers with no more than 5 employees.
    "Qualified employee" means an employee who is paid not
more than the required minimum wage and has an average wage
paid per hour by the employer during the reporting period
equal to or greater than his or her average wage paid per hour
by the employer during each reporting period for the
immediately preceding 12 months. A new qualified employee is
deemed to have earned the required minimum wage in the
preceding reporting period.
    "Reporting period" means the quarter for which a return is
required to be filed under subsection (b) of this Section.
    (j) For reporting periods beginning on or after January 1,
2023, if an [a private] employer grants all of its employees the
option of taking a paid leave of absence of at least 30 days
for the purpose of serving as an organ donor or bone marrow
donor, then the [private] employer may take a credit against the
payments due under this Section in an amount equal to the
amount withheld under this Section with respect to wages paid
while the employee is on organ donation leave, not to exceed
$1,000 in withholdings for each employee who takes organ
donation leave. To be eligible for the credit, such a leave of
absence must be taken without loss of pay, vacation time,
compensatory time, personal days, or sick time for at least
		SB3050	- 14 -	LRB104 16592 HLH 29991 b
the first 30 days of the leave of absence. The [private] employer
shall adopt rules governing organ donation leave, including
rules that (i) establish conditions and procedures for
requesting and approving leave and (ii) require medical
documentation of the proposed organ or bone marrow donation
before leave is approved by the [private] employer. An [A private]
employer must provide, in the manner required by the
Department, documentation from the employee's medical
provider, which the [private] employer receives from the
employee, that verifies the employee's organ donation. The
[private] employer must also provide, in the manner required by
the Department, documentation that shows that a qualifying
organ donor leave policy was in place and offered to all
qualifying employees at the time the leave was taken. For the
[private] employer to receive the tax credit, the employee
taking organ donor leave must allow for the applicable medical
records to be disclosed to the Department. If the [private]
employer cannot provide the required documentation to the
Department, then the [private] employer is ineligible for the
credit under this Section. An [A private] employer must also
provide, in the form required by the Department, any
additional documentation or information required by the
Department to administer the credit under this Section. The
credit under this subsection (j) shall be taken within one
year after the date upon which the organ donation leave
begins. If the leave taken spans into a second tax year, the
		SB3050	- 15 -	LRB104 16592 HLH 29991 b
employer qualifies for the allowable credit in the later of
the 2 years. If the amount of credit exceeds the tax liability
for the year, the excess may be carried and applied to the tax
liability for the 3 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 liability, the
earlier credit shall be applied first.
    Nothing in this subsection (j) prohibits an [a private]
employer from providing an unpaid leave of absence to its
employees for the purpose of serving as an organ donor or bone
marrow donor; however, if the employer's policy provides for
fewer than 30 days of paid leave for organ or bone marrow
donation, then the employer shall not be eligible for the
credit under this Section.
    As used in this subsection (j):
    "Employer" means, for reporting periods beginning on or 
after January 1, 2023 and beginning before January 1, 2027, a 
sole proprietorship, corporation, partnership, limited 
liability company, or other entity with one or more employees 
but does not include a municipality, county, State agency, or 
other public employer.
    "Employer" means, for reporting periods beginning on or 
after January 1, 2027, a sole proprietorship, corporation, 
partnership, limited liability company, or other entity with 
one or more employees and also includes a municipality, 
		SB3050	- 16 -	LRB104 16592 HLH 29991 b
county, State agency, or other public employer.
    "Organ" means any biological tissue of the human body that
may be donated by a living donor, including, but not limited
to, the kidney, liver, lung, pancreas, intestine, bone, skin,
or any subpart of those organs.
    "Organ donor" means a person from whose body an organ is
taken to be transferred to the body of another person.
    ["Private employer" means a sole proprietorship, ]
[corporation, partnership, limited liability company, or other ]
[entity with one or more employees. "Private employer" does not ]
[include a municipality, county, State agency, or other public ]
[employer.]
    This subsection (j) is exempt from the provisions of
Section 250 of this Act.
    (k) For reporting periods beginning on or after January 1,
2025 and before January 1, 2027, an employer may claim a credit
against payments due under this Section for amounts withheld
during the first reporting period to occur after the date on
which a tax credit certificate is issued for a non-profit
theater production under Section 10 of the Live Theater
Production Tax Credit Act. The credit shall be equal to the
amount shown on the certificate, but may not reduce the
taxpayer's obligation for any payment due under this Article
to less than zero. If the amount of the credit exceeds the
total amount due under this Article with respect to amounts
withheld during the first reporting period to occur after the
		SB3050	- 17 -	LRB104 16592 HLH 29991 b
date on which a tax credit certificate is issued, the excess
may be carried forward and applied against the taxpayer's
liability under this Section for reporting periods that occur
in the 5 succeeding calendar years. The excess credit shall be
applied to the earliest reporting period for which there is a
payment due under this Article. If there are credits from more
than one reporting period that are available to offset a
liability, the earlier credit shall be applied first. The
Department of Revenue, in cooperation with the Department of
Commerce and Economic Opportunity, shall adopt rules to
enforce and administer the provisions of this subsection.
    (l) A taxpayer who is issued a certificate under the Local
Journalism Sustainability Act for a taxable year shall be
allowed a credit against payments due under this Section as
provided in that Act.
(Source: P.A. 103-592, Article 40, Section 40-900, eff.
6-7-24; 103-592, Article 45, Section 45-10, eff. 6-7-24;
104-417, eff. 8-15-25.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Amends the Illinois Income Tax Act. Provides that a withholding tax credit for employers that grant all of their employees the option of taking a paid leave of absence for the purpose of serving as an organ donor or bone marrow donor also applies to public employers. Effective immediately.

Sponsors

Sen. Julie Morrison (D) sponsors SB 3050, and 3 members have co-sponsored it.

Committees

SB 3050 went before 2 committees: Assignments and Revenue.

Assignments
Assignments
Referred to · Jan 29, 2026
Revenue
Revenue
Referred to · Feb 10, 2026

History

SB 3050 has taken 11 actions since Jan 29, 2026, the latest on May 22, 2026.

ChamberAction
May 22, 2026
Senate
Rule 3-9(a) / Re-referred to Assignments
May 15, 2026
Senate
Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026
Apr 24, 2026
Senate
Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
Mar 26, 2026
Senate
Added as Co-Sponsor Sen. Elgie R. Sims, Jr.
Mar 13, 2026
Senate
Rule 2-10 Committee Deadline Established As April 24, 2026

Votes

SB 3050 has not gone to a roll call.

Source: ilga.gov · legiscan.com