Bill Text: IL SB3959 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: 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.

Sponsorship: Partisan Bill (Republican 12)

Status: (Introduced - Dead) 2026-07-09 - Added as Co-Sponsor Sen. Dave Syverson [SB3959 Detail]

Download: Illinois-2025-SB3959-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3959 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
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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
adding Section 246 as follows:
(35 ILCS 5/246 new)
Sec. 246. Welcome Home Illinois tax credit.
(a) For taxable years beginning on or after January 1,
2027, each taxpayer who is a first-time homebuyer of a
principal residence in the State during the taxable year is
entitled to a credit against the tax imposed by subsections
(a) and (b) of Section 201 in an amount equal to $500. If 2 or
more individuals who are not married purchase a principal
residence, the amount of the credit allowed under this Section
shall be allocated among those individuals in such manner as
the Department may, by rule, prescribe. This Section does not
apply if the taxpayer disposes of the residence before the
close of the taxable year or if the residence ceases to be the
principal residence of the taxpayer before the close of the
taxable year.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess

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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) As used in this Section, "first-time homebuyer" means
an individual who acquires an ownership interest in the
individual's principal residence during the taxable year if
neither the individual nor the individual's spouse had a
present ownership interest in a principal residence during the
3-year period ending on the date of the purchase of the
principal residence to which this Section applies.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.