Bill
SB 3894
The bill sets a uniform $85,000 maximum household income for LISCAFHE eligible seniors starting in 2026, updating who may qualify for the property tax exemption.
Date introduced: February 6, 2026
Sponsor(s): Sen. Suzy Glowiak Hilton; Co-sponsor: Sen. Marcus Evans
Jurisdiction: Illinois
Topic: Property Tax Code – Low-Income Senior Citizens Assessment Freeze Homestead Exemption
Purpose and intent
- The bill amends the Low-Income Senior Citizens Assessment Freeze Homestead Exemption (LISCAFHE) provisions to update the "maximum income limitation" for taxable years 2026 and thereafter.
- Specifically, it sets a uniform maximum household income limit of $85,000 for all qualified property, effective for 2026 onward.
Key provisions and changes
- Section amended: 35 ILCS 200/15-172 (Low-Income Senior Citizens Assessment Freeze Homestead Exemption).
- Definitions and concepts retained, including:
- Applicant, base amount, base year, equalized assessed value, household, household income, income (consistent with the Senior Citizens and Persons with Disabilities Property Tax Relief Act), residence, and taxable year.
- Chief County Assessment Officer (CCAO) definitions and related duties.
- Maximum income limitation:
- The bill updates the maximum income limitation to $85,000 for taxable years 2026 and onward for all qualified property.
- The schedule of prior income limits remains in the statute for historical reference, culminating in the 2026+ $85,000 cap.
- Eligibility and verification:
- The exemption continues to require that the applicant be 65 or older, have household income at or below the maximum limit, be liable for real property taxes, and own or have a legal/equitable interest in the property (or be a qualifying lessee in certain single-family scenarios).
- An alternative income valuation method allows presumed eligibility if the applicant is enrolled in certain public assistance programs (AABD, SNAP, LIHEAP, Benefit Access, Senior Citizens Real Estate Tax Deferral Program), with confidentiality protections on program data.
- Calculation of the exemption:
- In counties with 3,000,000+ inhabitants, the exemption amount equals the equalized assessed value (EAV) of the residence for the year of application minus the base amount.
- In counties with fewer than 3,000,000 inhabitants, the exemption calculation is generally the EAV minus base amount, with more granular tiered reductions in 2006 for certain income bands; the bill restates those rules as part of the long-standing framework.
- For 2017 and later in large counties, the exemption is the greater of the standard amount or $2,000 (as an alternative floor).
- Special provisions and administrative rules:
- Provisions for base year adjustments, handling of co-ops and life-care facilities, and rules around crediting exemptions to owner tax liabilities.
- Privacy and audit provisions regarding information submitted by applicants.
- Annual publication notice by the CCAO announcing availability of the exemption (60–75 days before application deadline).
- Local disaster-related temporary eligibility provisions (capped extensions for 2020–2021 in response to COVID-19) remain in place for specific cases.
- No state mandate reimbursement required for implementing the exemption (consistent with existing practice).
Who would be affected
- Eligible senior citizens (65+), and qualifying households with low-to-moderate income who own or otherwise qualify for a residence that is their principal dwelling in Illinois.
- Counties and their Chief County Assessment Officers (CCAO) who administer LISCAFHE, process applications, verify income, and publish notices.
- Cooperatives operating as life-care facilities and other qualifying residence arrangements (with specific rules on how exemptions apply and how savings are credited to residents’ tax liabilities).
- Recipients of certain public assistance programs (AABD, SNAP, LIHEAP, Benefit Access, Senior Citizens Real Estate Tax Deferral) may be presumed income-eligible for the exemption.
Procedural and timeline aspects
- Effective for taxable years 2026 and thereafter (as indicated by the amendment to the maximum income limitation).
- Annual process includes a formal application period determined by each county; CCAs publish notices 60–75 days before the application deadline.
- Compliance and enforcement mechanisms include audits of exemption eligibility and penalties for fraudulent applications per existing law.
- Confidentiality provisions protect applicants’ personal information; disclosures are limited to official purposes.
- The bill does not create new state funding obligations for reimbursements, consistent with prior mandates practice.
Note: The bill retains and updates historical LISCAFHE framework, aligning the income cap with contemporary affordability targets while preserving the program’s core structure and local administration.
Compiled from official sources — confirm details with the bill’s official record.
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