All Roll Calls
Yes: 329 • No: 99
IllinoisSB1911104th General Assembly (2025–2026)SenateWALLET
PROP TX-AFFORDABLE HOUSING
Sponsored By: Elgie R. Sims, Jr. (Democratic)
Became Law
assignmentsexecutiverevenue & finance
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Bill Overview
Analyzed Economic Effects
27 provisions identified: 8 benefits, 12 costs, 7 mixed.
Education credit for K–12 families
You can claim a credit equal to 25% of qualified K–12 tuition, book, and lab fees over $250. The family cap is $750 for tax years ending on or after December 31, 2017 ($500 for earlier years). For tax years beginning on or after January 1, 2017, you cannot claim the credit if AGI is over $500,000 (married filing jointly) or $250,000 (other filers). The pupil must be an Illinois resident under 21 and enrolled full‑time in K–12.
Credits for site cleanup projects
For River Edge Redevelopment Zones, you can claim a credit equal to 25% of unreimbursed eligible cleanup costs over $100,000 per site, with Illinois EPA approval and a recorded No Further Remediation Letter. The credit is claimed in the year approval is granted and can be carried forward up to five years; it may be transferred on sale with recorded notice. A separate statewide credit applied for tax years after December 31, 1997 and on or before December 31, 2001, with a $40,000 yearly cap and $150,000 per‑site cap (the $100,000 threshold was waived in enterprise zones).
R&D credit for Illinois research
You can claim a credit equal to 6.5% of your Illinois R&D spending above your base period average. The credit applies to tax years ending on or after December 31, 2004 and before January 1, 2032. Unused credit can be carried forward up to five years.
State tax break for cannabis 280E
Licensed cannabis businesses can subtract from Illinois taxable income the deductions disallowed by federal IRC §280E that are not otherwise added back. This applies for tax years beginning on or after January 1, 2023.
Caps on reimbursable project costs
Only up to four development users and one hotel in a district can count their building (vertical) costs as project costs. Only one entertainment venue can count its vertical costs. Developer interest costs are limited: no more than 30% of annual interest in any year, and no more than 30% of total project costs overall (with certain government land costs excluded).
Surcharge on cannabis asset sales
Registered medical cannabis businesses owe a yearly surcharge equal to their federal income tax from sales or exchanges of capital assets, depreciable property, business real estate, and Section 197 intangibles. The law waives the surcharge for certain transfers, such as bankruptcy or receivership, transfers on death, some corporate reorganizations, and public‑health directed transfers.
Film credits and payroll rules
For productions starting on or after July 1, 2025, accredited productions can earn credits: 35% of Illinois spending, 30% for eligible nonresident wages, 15% for hires from high‑poverty areas, and several 5% bonuses. Up to two executive producers’ wages can count as Illinois labor. When paying a loan‑out company for in‑state services, the production or payroll service must withhold Illinois income tax at the individual rate.
Optional 4.95% entity‑level tax
For tax years ending on or after December 31, 2021 and before January 1, 2026, eligible partnerships and S corporations can elect to pay Illinois tax at 4.95% of net income at the entity level. Owners get a personal credit equal to 4.95% of their share, limited to the entity tax paid for that share. The election is yearly, irrevocable for that year, and estimated payments are required if expected tax exceeds $500. Publicly traded partnerships cannot elect.
Bigger film credit wages and airfare
For productions that start on or after 2022-07-01, each worker’s wages count up to $500,000 toward Illinois labor spending. Airfare you buy from an airline based in Illinois also counts as Illinois production spending. These changes can raise the spending that qualifies for credits.
STAR funds cannot cut state school aid
When taxes are sent to the STAR Bonds School Improvement and Operations Trust Fund, that does not reduce state school aid. Aid under the general State school aid formula and the evidence-based funding formula stays protected.
Create STAR districts and financing
Cities and counties can create STAR bond districts in eligible areas. They can issue STAR bonds to pay for approved projects. Local governments may also issue alternate revenue bonds or other bonds, following state debt rules. General obligation bonds for STAR projects require voter approval.
Up to 1% extra local sales tax
A city can add a STAR retailers’ occupation tax of up to 1% inside its STAR district, in 0.25% steps. If set, a matching service occupation tax also applies. The tax does not apply to items already taxed at 1% under state law or to aviation fuel while federal rules apply.
Higher IL taxes for cannabis corporations
For tax years starting on or after 2023-01-01, licensed cannabis corporations must add back federal 280E disallowed deductions to Illinois base income. This raises Illinois taxable income and can increase state tax owed.
Tighter limits on film credit spending
For productions that start on or after 2025-07-01, you can pick at most 13 nonresident non-actor positions to count. You can count up to 4, 5, or 6 nonresident actors based on Illinois spending under $20M, $20M–<$40M, or $40M+. Above-the-line costs over 40% of Illinois spending do not count unless the Department grants a waiver. Above-the-line costs to related parties over 12% do not count, and below-the-line related-party costs over fair market value do not count. For TV series, nonresident wage limits apply per episode across the season.
Stronger limits on STAR bond financing
STAR bonds generally must mature within 23 years after the first State sales tax distribution. A local resolution may extend maturity, but the Governor must approve and it cannot exceed 35 years; NOVA districts may use up to 35 years. Reimbursement from the State sales tax increment is capped at the lesser of 50% of total costs or $75 million (or $800 million in NOVA). After year 7, if more than 50% of total proceeds come from the State sales tax, no new bonds are allowed until that share is 50% or less. The State and its entities cannot pledge their full faith and credit for these payments.
Deadlines and caps for STAR projects
Developers must start work within 3 years of plan adoption or funding stops. They have one year to seek a one-time reapproval; if granted, the 3-year clock restarts. Five years after the first State sales tax distribution, the Director reviews jobs and total costs (earlier review can apply in NOVA). If costs to date are under $30 million (non‑NOVA) or under $500 million (NOVA), or if the master developer breached the agreement, no new STAR bonds may be issued until fixed. Each region also has project caps: under 600,000 people = 1 project; 600,000–999,999 = up to 3; 1,000,000+ = up to 4; projects under the Innovation Development and Economy Act do not count toward these limits.
Developer rules, green space, and penalties
A master developer must own or control at least 50% of district acreage when appointed. Master agreements must include environmental steps, such as pollution controls and keeping at least 20% of the district as green space. If a project falls short on new jobs at review (300 for non‑NOVA; 1,500 for NOVA), the state can charge $1,500 per missing job each year until bonds mature, jobs are met, or payments end. No penalty applies for force majeure under the agreement.
Limits on retail uses in STAR districts
No STAR bond district may include more than 900,000 square feet of traditional retail space. The cap does not count entertainment venues, hotels, warehouse or storage space, or approved users. While STAR bonds are outstanding, developers also cannot use district land for auto sales, including cars and trucks.
No new film credits after 2033
Beginning 2033-01-01, the state stops awarding new Film Production Services Tax Credits for tax years that start on or after that date.
Property taxes and school funding flow
When a STAR district is approved, the county clerk sets each parcel’s initial EAV after homestead exemptions and certifies the district total. A city or county can later ask to adjust the certified initial total to reflect homestead exemptions. Starting with the year the first development user makes first retail sales, the clerk certifies the yearly EAV increase and the taxes on that increase. Within 30 days of collection, 15% of those incremental taxes go to the state STAR school trust, which the Department of Revenue sends to regional superintendents to distribute to school districts. If an assessment is under appeal, the collector holds the disputed trust amount until the appeal ends. The local government must promptly give the clerk the district ordinance, map, base‑year, and parcel list, and regular tax rates are extended to the area like other property.
Sales tax rules and reports for STAR
If a retailer moves within 25 miles and opens in a STAR district within one year before or after closing the old site, its new sales tax does not count as STAR revenue. There is an exception if the closure was involuntary or the local government documents that the prior site is not viable. On request, the Department of Revenue sends a certified monthly report by the 25th with State and local sales tax increments for the district; recipients must keep it confidential and use it to pay bonds. Local governments must give at least 60 days’ written notice before stopping deposits once revenues can pay off the debt. If they miss the notice, the State stops sending the increment, moves funds to the General Revenue Fund, and can withhold other local distributions if repayment is late.
Rules for changing district land
Adding property or making big plan changes needs the same public notice, hearing, and approvals as when the district was created. Land next to a district that the master developer later controls must be added if it becomes part of a STAR project and the local government approves. After a project starts, removing more than a small amount of land needs a new feasibility study that proves pledged revenue will still cover costs; otherwise, removal is not allowed.
Who qualifies for STAR districts
An area is eligible if at least 50% of its land is in a state‑defined underserved area, has 10,000+ residents within five miles, and sits within 15 miles of a State or Interstate highway. Plans must hit minimum numbers to get a state approval recommendation: at least $30 million in capital, $60 million in yearly sales, and 300 new jobs (or higher NOVA levels). A NOVA district must cover 500+ acres and reasonably project $500 million in capital, $300 million in annual sales, 1,000,000 visitors a year, and 1,500 jobs. A “development user” must be a retail store, hotel, or entertainment venue with no other Illinois site within 30 miles at opening and invest at least $30 million.
Sales‑tax transfers and clawbacks
Each month, the state moves the certified sales‑tax increment for the second prior month into the STAR Bonds Revenue Fund, after sending 3% to the Tax Compliance and Administration Fund. The state also transfers local increments monthly and orders payments to cities and counties. If a local government does not issue bonds within 180 days of its first distribution, the state stops distributions, returns state money to the General Revenue Fund, and requires repayment within 90 days, or withholds other local distributions until repaid.
STAR program rules, powers, and oversight
The Department and the Department of Revenue can write rules and may recommend and run the program while rules are pending. Public hearings about STAR districts must follow the Open Meetings Act, and many records are available under FOIA. Local governments get clear powers to contract, buy or sell land, build improvements, issue STAR bonds, set fees, accept grants, and reimburse developers. Seven years after the first STAR bond distributions, a seven-member review committee forms, files a report on economic impacts, and then dissolves.
One-time fund transfers for audit costs
Within 30 days after 2025-07-01, the Comptroller orders and the Treasurer transfers set dollar amounts from many state funds to the Audit Expense Fund. Examples include $19,809 from the Illinois Affordable Housing Trust Fund and $4,083 from the Rental Housing Support Program Fund. Federal trust funds are excluded unless directed otherwise.
Deadlines to start STAR projects
Local governments must notify the state by June 1, 2026 if they plan to establish a STAR district. They must submit complete STAR district plans by January 1, 2027.
Sponsors & Cosponsors
Sponsor
Elgie R. Sims, Jr.
Democratic • Senate
Cosponsors
Adriane Johnson
Democratic • Senate
Cristina Castro
Democratic • Senate
Curtis J. Tarver, II
Democratic • House
Don Harmon
Democratic • Senate
Graciela Guzmán
Democratic • Senate
Javier L. Cervantes
Democratic • Senate
Karina Villa
Democratic • Senate
Kimberly A. Lightford
Democratic • Senate
Mark L. Walker
Democratic • Senate
Mary Edly-Allen
Democratic • Senate
Mattie Hunter
Democratic • Senate
Mike Simmons
Democratic • Senate
Paul Faraci
Democratic • Senate
Robert Peters
Democratic • Senate
Sara Feigenholtz
Democratic • Senate
Roll Call Votes
Senate vote • 10/31/2025
House Floor Amendment No. 4 Senate Concurs
Yes: 37 • No: 19 • Other: 1
Senate vote • 10/31/2025
House Floor Amendment No. 1 Senate Concurs
Yes: 37 • No: 19 • Other: 1
Senate vote • 10/31/2025
House Floor Amendment No. 3 Senate Concurs
Yes: 37 • No: 19 • Other: 1
House vote • 10/30/2025
Third Reading - Short Debate - Passed
Yes: 76 • No: 33
House vote • 10/30/2025
House Floor Amendment No. 3 Recommends Be Adopted Revenue & Finance Committee;
Yes: 14 • No: 2
House vote • 10/30/2025
House Floor Amendment No. 4 Recommends Be Adopted Revenue & Finance Committee;
Yes: 17 • No: 0
House vote • 10/29/2025
House Floor Amendment No. 1 Recommends Be Adopted Revenue & Finance Committee;
Yes: 12 • No: 5
House vote • 10/14/2025
Approved for Consideration Rules Committee;
Yes: 3 • No: 2
House vote • 5/22/2025
Do Pass / Short Debate Revenue & Finance Committee;
Yes: 19 • No: 0
Senate vote • 5/8/2025
Third Reading - Passed;
Yes: 54 • No: 0
Senate vote • 5/1/2025
Senate Floor Amendment No. 3 Recommend Do Adopt Executive;
Yes: 11 • No: 0
Senate vote • 4/3/2025
Do Pass as Amended Executive;
Yes: 12 • No: 0
Actions Timeline
Added as Chief Co-Sponsor Sen. Paul Faraci
1/13/2026SenatePublic Act . . . . . . . . . 104-0453
12/12/2025SenateEffective Date December 12, 2025; ;Some Provisions
12/12/2025SenateGovernor Approved
12/12/2025SenateSent to the Governor
11/25/2025SenateAdded as Chief Co-Sponsor Sen. Mattie Hunter
10/31/2025SenatePassed Both Houses
10/31/2025SenateSenate Concurs
10/31/2025SenateHouse Floor Amendment No. 4 Senate Concurs 037-019-001
10/31/2025Senate3/5 Vote Required
10/31/2025SenateHouse Floor Amendment No. 3 Senate Concurs 037-019-001
10/31/2025Senate3/5 Vote Required
10/31/2025SenateHouse Floor Amendment No. 1 Senate Concurs 037-019-001
10/31/2025Senate3/5 Vote Required
10/31/2025SenateHouse Floor Amendment No. 4 Motion to Concur Be Approved for Consideration Assignments
10/31/2025SenateHouse Floor Amendment No. 3 Motion to Concur Be Approved for Consideration Assignments
10/31/2025SenateHouse Floor Amendment No. 1 Motion to Concur Be Approved for Consideration Assignments
10/31/2025SenateChief Sponsor Changed to Sen. Elgie R. Sims, Jr.
10/30/2025SenateHouse Floor Amendment No. 4 Motion to Concur Referred to Assignments
10/30/2025SenateHouse Floor Amendment No. 4 Motion to Concur Filed with Secretary Sen. Elgie R. Sims, Jr.
10/30/2025SenateHouse Floor Amendment No. 3 Motion to Concur Referred to Assignments
10/30/2025SenateHouse Floor Amendment No. 3 Motion to Concur Filed with Secretary Sen. Elgie R. Sims, Jr.
10/30/2025SenateHouse Floor Amendment No. 1 Motion to Concur Referred to Assignments
10/30/2025SenateHouse Floor Amendment No. 1 Motion to Concur Filed with Secretary Sen. Elgie R. Sims, Jr.
10/30/2025SenatePlaced on Calendar Order of Concurrence House Amendment(s) 1, 3, 4 - October 30, 2025
10/30/2025Senate
Bill Text
Engrossed
Enrolled
House Amendment 1
House Amendment 2
House Amendment 3
House Amendment 4
Introduced
Senate Amendment 1
Senate Amendment 2
Senate Amendment 3