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HB4190 • 2026
INC TX-SMALL BUSINESS CREDIT
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
INC TX-SMALL BUSINESS CREDIT
Rule 19(a) / Re-referred to Rules Committee
Assigned to Revenue & Finance Committee
First Reading
Referred to Rules Committee
Filed with the Clerk by Rep. Martin McLaughlin
INC TX-SMALL BUSINESS CREDIT
Illinois General Assembly - Full Text of HB4190 Select Language × The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein. Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet. The English language version is always the official and authoritative version of this website. NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window. 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Full Text of HB4190 Home Legislation Full Text HB4190 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Printer Friendly Version Introduced Open PDF 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB4190 Introduced 10/29/2025, by Rep. Martin McLaughlin SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates a credit for certain small businesses in an amount equal to the lesser of (i) 10% of the property taxes paid by the qualified small business during the taxable year for eligible real property or (ii) $1,500. Effective immediately. LRB104 15878 HLH 29099 b A BILL FOR HB4190 LRB104 15878 HLH 29099 b 1 AN ACT concerning revenue. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Income Tax Act is amended by 5 adding Section 246 as follows: 6 (35 ILCS 5/246 new) 7 Sec. 246. Small business property tax relief credit. 8 (a) For taxable years that end on or after December 31, 9 2026 and end on or before December 31, 2030, each qualified 10 small business is entitled to a credit against the taxes 11 imposed by subsections (a) and (b) of Section 201 in an amount 12 equal to the lesser of (i) 10% of the property taxes paid by 13 the qualified small business during the taxable year for 14 eligible real property or (ii) $1,500. 15 (b) In no event shall a credit under this Section reduce 16 the taxpayer's liability to less than zero. If the amount of 17 the credit exceeds the tax liability for the year, the excess 18 may be carried forward and applied to the tax liability of the 19 5 taxable years following the excess credit year. The tax 20 credit shall be applied to the earliest year for which there is 21 a tax liability. If there are credits for more than one year 22 that are available to offset a liability, the earlier credit 23 shall be applied first. HB4190 - 2 - LRB104 15878 HLH 29099 b 1 (c) If the taxpayer is a partnership or Subchapter S 2 corporation, the credit is allowed to pass through to the 3 partners and shareholders as provided in Section 251. 4 (d) This Section is exempt from the provisions of Section 5 250. 6 (e) As used in this Section: 7 "Eligible real property" means property located in 8 Illinois that meets the following criteria: 9 (1) the taxpayer has an ownership interest in the 10 property, whether legal, equitable, or as a lessee, and 11 the taxpayer is liable for the payment of property taxes 12 on the property; 13 (2) the property is used to conduct the taxpayer's 14 business operations; and 15 (3) the property is not residential. 16 "Qualified small business" means a sole proprietorship, 17 partnership, corporation, joint venture, association, or 18 cooperative that conducts business in Illinois, employs fewer 19 than 50 employees in the State during the taxable year, and is 20 current with all State and federal tax obligations as of the 21 last day of the taxable year. 22 Section 99. Effective date. This Act takes effect upon 23 becoming law. Footer Disclaimer This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn