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Bill

Bill

HB 1202

INC TX-RECYCLING CREDIT

104th Regular Session Introduced by Dave Severin

Illinois income tax credit incentivizes recycling participation and recycled material purchases by businesses and individuals through documented environmental contributions.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 1202

Legislative bill overview

HB 1202 creates an Illinois income tax credit for businesses and individuals who participate in recycling programs or purchase recycled materials. The bill aims to incentivize waste reduction and circular economy practices by providing tax relief proportional to documented recycling activities or recycled content purchases.

Why is this important

Tax incentives for recycling can reduce landfill waste, lower environmental remediation costs, and support markets for recycled materials—creating economic demand that makes recycling operations more viable. Illinois currently lacks a dedicated income tax credit for recycling participation, so this would represent a new policy tool for environmental compliance and sustainability goals.

Potential points of contention

  • Revenue impact: Tax credits reduce state income tax receipts; lawmakers will debate whether environmental benefits justify the fiscal cost and which businesses qualify
  • Definition and verification challenges: Determining what qualifies as "recycling" and preventing fraudulent claims requires clear metrics and administrative oversight that adds compliance burden
  • Equity concerns: Credits may disproportionately benefit larger corporations with resources to document activities, potentially excluding small businesses and individuals who recycle informally

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

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