Relating to an income tax credit for volunteer firefighters; prescribing an effective date.

2025 Regular Session Introduced by Dick Anderson and 25 co-sponsors

HB 3150 eliminates the $1,000/month cap on the vendor discount for sales/use tax returns, boosting discounts kept by retailers and reducing state/local remittances.

In committee upon adjournment.

Summary — HB 3150 (104th General Assembly, 2025)

Short title / subject: Appears intended to amend Illinois sales/use tax statutes to change the vendor (retailer) discount provisions. (Note: the bill packet includes a conflicting title — “Relating to an income tax credit for volunteer firefighters” — but the introduced bill text amends the Use Tax Act, Retailers’ Occupation Tax Act, Service Use/Occupation Tax Acts and related statutes. This summary follows the statutory text in the introduced version.)

Main purpose and intent

HB 3150 (as introduced) removes the statutory limitation that capped the vendor’s collection discount at $1,000 per month. In other words, the bill restores or preserves the retailer/vendor discount calculation as previously structured by eliminating the $1,000/month aggregate cap that applied to certain returns and transaction returns.

Key provisions

Amends multiple statutes: Use Tax Act (35 ILCS 105/9) and corresponding sections of the Retailers’ Occupation Tax Act, Service Occupation Tax Act, Service Use Tax Act, and references in the Prepaid Wireless 9‑1‑1 Surcharge Act.

Deletes or negates language imposing a $1,000-per-month aggregate cap on the vendor (retailer) discount for returns (including transaction returns) for the period referenced in the introduced draft.

Clarifies how the discount is calculated when sales are taxed at different rates (references to tax rate interactions created by Public Act 102‑700 and inclusion of amounts that would have been due at higher rates).

Reinforces that the Department of Revenue may disallow the discount for retailers whose registration certificates are revoked (after final revocation).

Leaves in place existing provisions about filing frequency, transaction-by-transaction remittance, and electronic filing requirements for retailers exceeding thresholds.

Who is affected

Retailers and vendors who collect and remit Illinois sales and use taxes (including those filing transaction returns).

Local governments that receive local portions of sales/use taxes (state and local remittances may be affected).

Illinois Department of Revenue (administration and enforcement).

Tax preparers and accounting systems that compute and remit vendor discounts.

Fiscal and operational impact

Removing the $1,000 cap would increase the dollar amount of discounts vendors may retain when collecting taxes, which would reduce net tax remittances to state and local governments relative to the capped scenario. The bill does not include an offset or revenue estimate in the text; a fiscal note from the Department of Revenue would be needed for precise impact.

Procedural status / timeline

Introduced Feb 18, 2025 by Rep. Kyle Moore (first reading Feb 18).

Referred through multiple committees (Rules, Emergency Management/General Government/Veterans; Revenue by prior reference).

Public hearing(s), work sessions, and committee substitute considered in February–April 2025.

Reported favorably as substituted in committee (4/16/2025).

Status as of 6/28/2025: In committee upon adjournment.

Companion bill: SB 1330.

Note on discrepancy

The bill cover/title and the actual statutory text conflict (title references a volunteer firefighter income tax credit, while the text amends sales/use tax vendor discount provisions). Interested parties should consult the sponsor’s office or the Legislature’s bill files for clarifying amendments or the correct bill version before relying on the title.