Illinois General Assembly - Full Text of HB1634

LRB104 03589 HLH 19705 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1634

Introduced 1/28/2025, by Rep. Patrick Sheehan

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Creates an income tax credit for each individual who (i) serves as a first responder for at least 10 months during the taxable year and (ii) incurs unreimbursed qualified wellness expenses during the taxable year. Provides that the amount of the credit is equal to 50% of the unreimbursed qualified wellness expenses incurred by the taxpayer during the taxable year, up to a maximum of $250 per eligible taxpayer. Sets forth limitations on the aggregate amount of credits that may be awarded under the amendatory Act. Effective immediately.

A BILL FOR

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. First responder qualified wellness expense credit.

(a) For taxable years that begin on or after January 1, 2026 and begin before January 1, 2031, each individual who (i) serves as a first responder for at least 10 months during the taxable year and (ii) incurs unreimbursed qualified wellness expenses during the taxable year may apply to the Department for a credit against the taxes imposed by subsections (a) and (b) of Section 201. The amount of the credit is equal to 50% of the unreimbursed qualified wellness expenses incurred by the taxpayer during the taxable year, up to a maximum of $250 per eligible taxpayer in each taxable year. The aggregate amount of all tax credits awarded by the Department under this Section in any calendar year may not exceed $2,500,000. Credits shall be awarded on a first-come, first-served basis.

(b) A credit under this Section may not reduce a 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.

(c) Taxpayers claiming this credit must provide proof of employment as a first responder and provide documentation, including receipts or invoices, of qualified wellness expenses paid during the taxable year.

(d) The Department shall adopt rules to implement the credit under this Section.

(e) As used in this Section:

"First responder" means a person who is employed by the State or any unit of local government as a law enforcement officer, as a corrections officer, as a firefighter, or as emergency medical services personnel, as defined in the Emergency Medical Services (EMS) Systems Act.

"Qualified wellness expenses" means any of the following expenses when incurred for the benefit of the first responder:

(1) membership fees for fitness centers or health clubs;

(2) fees for yoga, pilates, meditation, or similar wellness classes;

(3) fees for martial arts or self-defense classes;

(4) costs for group fitness programs or personal training programs; and

(5) other physical or mental wellness programs approved by the Department.

Section 99. Effective date. This Act takes effect upon becoming law.