Relating to rural medical training facilities; declaring an emergency.

2025 Regular Session Introduced by Paul Evans

Creates an Illinois deduction from base income for union dues disallowed on federal returns, proportional to the non-deductible portion; emergency effective; reduces revenue.

In committee upon adjournment.

HB 3280 — Summary (Introduced 2025)

Short title / subject: Bill text amends the Illinois Income Tax Act (35 ILCS 5/203) to create a state income tax deduction for union dues that a taxpayer could not deduct on their federal return. The bill text also includes an emergency effective date. (Note: the bill packet supplied includes a header referencing "rural medical training facilities," but the body of the introduced bill amends the Illinois Income Tax Act to address union dues. See "Notes" below.)

Main purpose

To allow Illinois taxpayers to deduct, from Illinois base income, the amount of union dues they paid during the taxable year to the extent those dues were disallowed as a federal deduction under the Internal Revenue Code. The deduction is exempt from the Act’s automatic sunset and is effective immediately upon enactment (emergency declaration).

Key provisions

Amends 35 ILCS 5/203 (definition of base income / individual modifications).

Creates a subtraction (deduction) from adjusted gross income for union dues paid during the taxable year when the taxpayer was not allowed a federal deduction for those dues.

If some portion of the union dues was allowed as a federal miscellaneous itemized deduction, the Illinois deduction is a proportional share of the dues that were disallowed federally (i.e., only the disallowed portion qualifies).

Specifies that the deduction is exempt from the Illinois Income Tax Act’s automatic sunset provision.

Emergency clause: the change is effective immediately on enactment.

Who would be affected

Illinois individual taxpayers who pay union dues.

Particularly benefits taxpayers who cannot deduct union dues on their federal returns (for example, due to the federal suspension of miscellaneous itemized deductions under the Tax Cuts and Jobs Act).

May be most relevant to private‑sector union members and others whose federal itemized deductions are limited.

Fiscal and administrative impact (high-level)

Likely reduces Illinois individual income tax revenue to the extent taxpayers claim the new subtraction.

The Department of Revenue would need to implement rules to verify amounts and determine how to compute the proportional deduction when part of dues was federally deductible. Additional administrative guidance or form changes may be required.

Exact fiscal impact (dollar estimate) is not provided in the bill text.

Procedural status / timeline

Introduced (per bill text): Feb 18, 2025 (filed with Clerk Feb 6, 2025; user materials show Feb 25, 2025 — see Notes).

Legislative actions include referrals to Revenue & Finance committee, Income Tax Subcommittee, Pensions/Investments & Financial Services, Rules committee; status listed as “In committee upon adjournment” as of 2025-06-28.

Companion bill: SB 1529.

Notes and inconsistencies

The bill packet header lists a different title ("Relating to rural medical training facilities") that does not match the body text, which clearly amends the Income Tax Act concerning union dues. This appears to be a clerical inconsistency between title and body.

Dates in the provided legislative action list include several entries that differ (Feb 6, Feb 18, Feb 25). The bill text indicates introduction Feb 18, 2025; the user-provided metadata lists Feb 25, 2025. Users should consult the official Illinois General Assembly website for the authoritative filing/intro dates and current status.