104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3868
 
Introduced 2/6/2026, by Sen. John F. Curran
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/208  from Ch. 120, par. 2-208
    Amends the Illinois Income Tax Act. Increases the tax credit for residential real property taxes from 5% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer to 10% of the real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


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A BILL FOR
 
SB3868LRB104 18265 HLH 31704 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 208 as follows:
 
6    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
7    Sec. 208. Tax credit for residential real property taxes. 
8For Beginning with tax years ending on or after December 31, 
91991 and ending before December 31, 2026, every individual 
10taxpayer shall be entitled to a tax credit equal to 5% of real 
11property taxes paid by such taxpayer during the taxable year 
12on the principal residence of the taxpayer. For tax years 
13ending on or after December 31, 2026, every individual 
14taxpayer shall be entitled to a tax credit equal to 10% of real 
15property taxes paid by the taxpayer during the taxable year on 
16the principal residence of the taxpayer. In the case of 
17multi-unit or multi-use structures and farm dwellings, the 
18taxes on the taxpayer's principal residence shall be that 
19portion of the total taxes which is attributable to such 
20principal residence. Notwithstanding any other provision of 
21law, for taxable years beginning on or after January 1, 2017, 
22no taxpayer may claim a credit under this Section if the 
23taxpayer's adjusted gross income for the taxable year exceeds 
 
 
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1(i) $500,000, in the case of spouses filing a joint federal tax 
2return, or (ii) $250,000, in the case of all other taxpayers. 
3    This Section is exempt from the provisions of Section 250. 
4(Source: P.A. 101-8, see Section 99 for effective date; 
5102-558, eff. 8-20-21.)
 
6    Section 99. Effective date. This Act takes effect upon 
7becoming law.