104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3959
 
Introduced 2/6/2026, by Sen. Erica Harriss
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Creates the Welcome Home Illinois tax credit. Provides that each taxpayer who is a first-time homebuyer of a principal residence in the State during the taxable year is entitled to an income tax credit in an amount equal to $500. Effective immediately.


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A BILL FOR
 
SB3959LRB104 18268 HLH 31707 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 
5adding Section 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Welcome Home Illinois tax credit.
8    (a) For taxable years beginning on or after January 1, 
92027, each taxpayer who is a first-time homebuyer of a 
10principal residence in the State during the taxable year is 
11entitled to a credit against the tax imposed by subsections 
12(a) and (b) of Section 201 in an amount equal to $500. If 2 or 
13more individuals who are not married purchase a principal 
14residence, the amount of the credit allowed under this Section 
15shall be allocated among those individuals in such manner as 
16the Department may, by rule, prescribe. This Section does not 
17apply if the taxpayer disposes of the residence before the 
18close of the taxable year or if the residence ceases to be the 
19principal residence of the taxpayer before the close of the 
20taxable year. 
21    (b) In no event shall a credit under this Section reduce 
22the taxpayer's liability to less than zero. If the amount of 
23the credit exceeds the tax liability for the year, the excess 
 
 
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1may be carried forward and applied to the tax liability of the 
25 taxable years following the excess credit year. The tax 
3credit shall be applied to the earliest year for which there is 
4a tax liability. If there are credits for more than one year 
5that are available to offset a liability, the earlier credit 
6shall be applied first. 
7    (c) As used in this Section, "first-time homebuyer" means 
8an individual who acquires an ownership interest in the 
9individual's principal residence during the taxable year if 
10neither the individual nor the individual's spouse had a 
11present ownership interest in a principal residence during the 
123-year period ending on the date of the purchase of the 
13principal residence to which this Section applies. 
14    (d) This Section is exempt from the provisions of Section 
15250. 
 
16    Section 99. Effective date. This Act takes effect upon 
17becoming law.