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HB 3017

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2025 Regular Session Introduced by J.B. Akers and 7 co-sponsors

Creates a $5,000 Illinois income tax credit for employers who hire military spouses, usable for tax years ending after 12/31/2026; nonrefundable, with 5-year carryforward.

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Bill Summary · HB 3017

Summary — HB 3017 (104th General Assembly, 2025–2026)

Status: In committee upon adjournment
Introduced: February 19, 2025 (filed Feb 6, 2025)
Primary sponsor: Rep. Dan Swanson
Co-sponsors: Rep. Michael J. Coffey, Jr.; Rep. Brandun Schweizer

Purpose / Intent

HB 3017 creates a state income tax credit to encourage employers to hire spouses of military service members. The stated intent is to provide a financial incentive to increase employment opportunities for military spouses.

Key provisions

  • Adds Section 217.2 to the Illinois Income Tax Act (35 ILCS 5).
  • Tax credit amount: $5,000 per military spouse hired by the taxpayer during the taxable year.
  • Eligibility timing: Credit applies for taxable years ending on or after December 31, 2026.
  • Tax against which credit applies: The credit is applied against the tax imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act.
  • Pass-through entities and owners: The bill provides for partners, S‑corporation shareholders, and members of limited liability companies (treated as partnerships for tax purposes) to receive a credit determined in accordance with rules for allocating income/distributive shares under federal provisions (Sections 702 and 704 and Subchapter S). (Text in the draft is partially garbled but indicates allocation consistent with partnership/Subchapter S income determination.)
  • Carryforward / nonrefundable: The credit is nonrefundable (cannot reduce tax below zero). Excess credit may be carried forward up to 5 taxable years following the year of excess. The credit is applied to the earliest year with tax liability; earlier credits are applied before later ones.
  • Definition: "Military spouse" means the spouse of (1) an active duty member of the U.S. Armed Forces, (2) a member of the Illinois National Guard, or (3) a member of any reserve component of the U.S. Armed Forces.
  • Exemption: The section is exempt from Section 250 (i.e., the bill states it is not subject to whatever limitation or review Section 250 imposes).
  • Effective date: The Act takes effect upon becoming law, with the credit available for taxable years ending on or after Dec. 31, 2026.

Who is affected

  • Employers (individual and corporate taxpayers who are employers) that hire military spouses — each qualifying hire generates a $5,000 credit.
  • Partners, S‑corp shareholders and LLC members (where applicable) have allocation rules for the credit.
  • State tax revenues could be reduced to the extent credits are claimed (no fiscal estimate included in the bill text).

Procedural / timeline notes

  • Filed Feb 6, 2025; introduced Feb 19, 2025. Read first time Mar 20, 2025.
  • Referred to Rules Committee and to Ways & Means and assigned to Revenue & Finance / Tax Policy subcommittees at various stages.
  • As of June 28, 2025: In committee upon adjournment.
  • Co-sponsors were added in September 2025.

Considerations / open points

  • The bill does not specify any maximum number of credits per employer or other hiring conditions (e.g., minimum hours, duration of employment, or documentation requirements).
  • No fiscal note is attached in the text provided; potential revenue impact depends on how many qualifying hires occur and how employers claim the credit.
  • The provision on allocation for pass‑through owners appears intended to mirror federal distributive share rules but contains drafting irregularities that may require clarification.

Compiled from official sources — confirm details with the bill’s official record.

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