Illinois General Assembly - Full Text of HB3738

LRB104 10869 HLH 20951 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3738

Introduced 2/18/2025, by Rep. Abdelnasser Rashid

SYNOPSIS AS INTRODUCED:

35 ILCS 5/235 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who (1) paid rent on a personal residence in Illinois for at least 6 months during the taxable year; (2) are not claimed as a dependent on someone else's federal income taxes for the taxable year; and (3) have a federal adjusted gross income of less than $83,250, if the taxpayer is married filing a joint return, or $40,770, if the taxpayer is not married filing a joint return. Provides that, if the taxpayer is married filing a joint return, then the amount of the credit is $1,000 for both taxpayers as a single unit. Provides that, if the taxpayer is not married filing a joint return, then the amount of the credit is $500. 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 235 as follows:

(35 ILCS 5/235 new)

Sec. 235. Renter's credit.

(a) For taxable years beginning on or after January 1, 2026, each qualified taxpayer is entitled to a tax credit as provided in this Section. If the taxpayer is married filing a joint return, then the amount of the credit is $1,000 for both taxpayers as a single unit. For all other individual taxpayers, the amount of the credit is $500.

(b) The credit or credits may not reduce the taxpayer's liability to less than zero. Excess credit amounts may not be refunded to the taxpayer.

(c) As used in this Section, "qualified taxpayer" means an individual taxpayer who:

(1) paid rent on the taxpayer's personal residence in Illinois for at least 6 months during the taxable year;

(2) is not claimed as a dependent on someone else's federal income taxes for the taxable year; and

(3) has a federal adjusted gross income of less than $83,250, if the taxpayer is married filing a joint return, or $40,770, if the taxpayer is not married filing a joint return.

(d) This Section is exempt from the provisions of Section 250.

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