Bill Text: IL HB4841 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Provides that the tax credit for affordable housing donations applies until the taxable year ending on December 31, 2036 (currently, December 31, 2026). Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced) 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB4841 Detail]

Download: Illinois-2025-HB4841-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4841 Introduced , by Rep. Martha Deuter SYNOPSIS AS INTRODUCED:
35 ILCS 5/214
Amends the Illinois Income Tax Act. Provides that the tax credit for affordable housing donations applies permanently. Effective immediately.
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A BILL FOR
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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
changing Section 214 as follows:
(35 ILCS 5/214)
Sec. 214. Tax credit for affordable housing donations.
(a) For Beginning with taxable years ending on or after
December 31, 2001 and until the taxable year ending on
December 31, 2026, a taxpayer who makes a donation under
Section 7.28 of the Illinois Housing Development Act is
entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to 50% of the
value of the donation. For taxable years ending before
December 31, 2023, partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if
the limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 703 and subchapter S of the
Internal Revenue Code. For taxable years ending on or after
December 31, 2023, partners and shareholders of subchapter S

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corporations are entitled to a credit under this Section as
provided in Section 251. Persons or entities not subject to
the tax imposed by subsections (a) and (b) of Section 201 and
who make a donation under Section 7.28 of the Illinois Housing
Development Act are entitled to a credit as described in this
subsection and may transfer that credit as described in
subsection (c).
(b) 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) The transfer of the tax credit allowed under this
Section may be made (i) to the purchaser of land that has been
designated solely for affordable housing projects in
accordance with the Illinois Housing Development Act or (ii)
to another donor who has also made a donation in accordance
with Section 7.28 of the Illinois Housing Development Act.
(d) A taxpayer claiming the credit provided by this
Section must maintain and record any information that the
Department may require by regulation regarding the project for
which the credit is claimed. When claiming the credit provided
by this Section, the taxpayer must provide information
regarding the taxpayer's donation to the project under the

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Illinois Housing Development Act.
(e) This Section is exempt from the provisions of Section
250.
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21;
103-396, eff. 1-1-24.)
Section 99. Effective date. This Act takes effect upon
becoming law.