PROP TX-VETERANS

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4405

Introduced 1/14/2026, by Rep. Jackie Haas

SYNOPSIS AS INTRODUCED:

35 ILCS 200/15-169

Amends the Property Tax Code. In provisions concerning the homestead
exemption for veterans with disabilities and veterans of World War II,
provides that the term "veteran" also includes veterans who were killed in
the line of duty but were not Illinois residents at the time of their
death. Provides that a requirement that a surviving spouse must be a
resident of Illinois from the time of the veteran's death through the
taxable year for which the homestead exemption for veterans with
disabilities is sought does not apply if the veteran was killed in the line
of duty. Effective immediately.
LRB104 17008 HLH 30423 b

A BILL FOR

HB4405
LRB104 17008 HLH 30423 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 Property Tax Code is amended by changing
5
Section 15-169 as follows:

6

(35 ILCS 200/15-169)
7

Sec. 15-169.
Homestead exemption for veterans with
8
disabilities and veterans of World War II.
9

(a) Beginning with taxable year 2007, an annual homestead
10
exemption, limited as provided in this Section, is granted for
11
property that is used as a qualified residence by a veteran
12
with a disability, and beginning with taxable year 2024, an
13
annual homestead exemption, limited to the amounts set forth
14
in subsection (b-4), is granted for property that is used as a
15
qualified residence by a veteran who was a member of the United
16
States Armed Forces during World War II.
17

(b) For taxable years prior to 2015, the amount of the
18
exemption under this Section is as follows:
19

(1) for veterans with a service-connected disability
20

of at least (i) 75% for exemptions granted in taxable
21

years 2007 through 2009 and (ii) 70% for exemptions
22

granted in taxable year 2010 and each taxable year
23

thereafter, as certified by the United States Department

HB4405
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LRB104 17008 HLH 30423 b
1

of Veterans Affairs, the annual exemption is $5,000; and
2

(2) for veterans with a service-connected disability
3

of at least 50%, but less than (i) 75% for exemptions
4

granted in taxable years 2007 through 2009 and (ii) 70%
5

for exemptions granted in taxable year 2010 and each
6

taxable year thereafter, as certified by the United States
7

Department of Veterans Affairs, the annual exemption is
8

$2,500.
9

(b-3) For taxable years 2015 through 2022:
10

(1) if the veteran has a service connected disability
11

of 30% or more but less than 50%, as certified by the
12

United States Department of Veterans Affairs, then the
13

annual exemption is $2,500;
14

(2) if the veteran has a service connected disability
15

of 50% or more but less than 70%, as certified by the
16

United States Department of Veterans Affairs, then the
17

annual exemption is $5,000;
18

(3) if the veteran has a service connected disability
19

of 70% or more, as certified by the United States
20

Department of Veterans Affairs, then the property is
21

exempt from taxation under this Code; and
22

(4) (Blank).
23

(b-3.1) For taxable year 2023 and thereafter:
24

(1) if the veteran has a service connected disability
25

of 30% or more but less than 50%, as certified by the
26

United States Department of Veterans Affairs as of the

HB4405
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LRB104 17008 HLH 30423 b
1

date the application is submitted for the exemption under
2

this Section for the applicable taxable year, then the
3

annual exemption is $2,500;
4

(2) if the veteran has a service connected disability
5

of 50% or more but less than 70%, as certified by the
6

United States Department of Veterans Affairs as of the
7

date the application is submitted for the exemption under
8

this Section for the applicable taxable year, then the
9

annual exemption is $5,000;
10

(3) if the veteran has a service connected disability
11

of 70% or more, as certified by the United States
12

Department of Veterans Affairs as of the date the
13

application is submitted for the exemption under this
14

Section for the applicable taxable year, then the first
15

$250,000 in equalized assessed value of the property is
16

exempt from taxation under this Code; and
17

(4) if the taxpayer is the surviving spouse of a
18

veteran whose death was determined to be service-connected
19

and who is certified by the United States Department of
20

Veterans Affairs as a recipient of dependency and
21

indemnity compensation under federal law as of the date
22

the application is submitted for the exemption under this
23

Section for the applicable taxable year, then the first
24

$250,000 in equalized assessed value of the property is
25

also exempt from taxation under this Code.
26

This amendatory Act of the 103rd General Assembly shall

HB4405
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LRB104 17008 HLH 30423 b
1
not be used as the basis for any appeal filed with the chief
2
county assessment officer, the board of review, the Property
3
Tax Appeal Board, or the circuit court with respect to the
4
scope or meaning of the exemption under this Section for a tax
5
year prior to tax year 2023.
6

(b-4) For taxable years on or after 2024, if the veteran
7
was a member of the United States Armed Forces during World War
8
II, then the property is exempt from taxation under this Code
9
regardless of the veteran's level of disability.
10

(b-5) If a homestead exemption is granted under this
11
Section and the person awarded the exemption subsequently
12
becomes a resident of a facility licensed under the Nursing
13
Home Care Act or a facility operated by the United States
14
Department of Veterans Affairs, then the exemption shall
15
continue (i) so long as the residence continues to be occupied
16
by the qualifying person's spouse or (ii) if the residence
17
remains unoccupied but is still owned by the person who
18
qualified for the homestead exemption.
19

(c) The tax exemption under this Section carries over to
20
the benefit of the veteran's surviving spouse as long as the
21
spouse holds the legal or beneficial title to the homestead,
22
permanently resides thereon, and does not remarry. If the
23
surviving spouse sells the property, an exemption not to
24
exceed the amount granted from the most recent ad valorem tax
25
roll may be transferred to his or her new residence as long as
26
it is used as his or her primary residence and he or she does

HB4405
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LRB104 17008 HLH 30423 b
1
not remarry.
2

As used in this subsection (c):
3

(1) for taxable years prior to 2015, "surviving
4

spouse" means the surviving spouse of a veteran who
5

obtained an exemption under this Section prior to his or
6

her death;
7

(2) for taxable years 2015 through 2022, "surviving
8

spouse" means (i) the surviving spouse of a veteran who
9

obtained an exemption under this Section prior to his or
10

her death and (ii) the surviving spouse of a veteran who
11

was killed in the line of duty at any time prior to the
12

expiration of the application period in effect for the
13

exemption for the taxable year for which the exemption is
14

sought; and
15

(3) for taxable year 2023 and thereafter, "surviving
16

spouse" means: (i) the surviving spouse of a veteran who
17

obtained the exemption under this Section prior to his or
18

her death; (ii) the surviving spouse of a veteran who was
19

killed in the line of duty at any time prior to the
20

expiration of the application period in effect for the
21

exemption for the taxable year for which the exemption is
22

sought; (iii) the surviving spouse of a veteran who did
23

not obtain an exemption under this Section before death,
24

but who would have qualified for the exemption under this
25

Section in the taxable year for which the exemption is
26

sought if he or she had survived, and
, except as otherwise

HB4405
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LRB104 17008 HLH 30423 b
1

provided in this paragraph (3),
whose surviving spouse has
2

been a resident of Illinois from the time of the veteran's
3

death through the taxable year for which the exemption is
4

sought; and (iv) the surviving spouse of a veteran whose
5

death was determined to be service-connected, but who
6

would not otherwise qualify under item (i), (ii), or
7

(iii), if the spouse (A) is certified by the United States
8

Department of Veterans Affairs as a recipient of
9

dependency and indemnity compensation under federal law at
10

any time prior to the expiration of the application period
11

in effect for the exemption for the taxable year for which
12

the exemption is sought and (B) remains eligible for that
13

dependency and indemnity compensation as of January 1 of
14

the taxable year for which the exemption is sought.
15

Beginning in taxable year 2026, the requirement that the
16

surviving spouse must be a resident of Illinois from the
17

time of the veteran's death through the taxable year for
18

which the exemption is sought does not apply if the
19

veteran was killed in the line of duty.

20

(c-1) Beginning with taxable year 2015, nothing in this
21
Section shall require the veteran to have qualified for or
22
obtained the exemption before death if the veteran was killed
23
in the line of duty.
24

(d) The exemption under this Section applies for taxable
25
year 2007 and thereafter. A taxpayer who claims an exemption
26
under Section 15-165 or 15-168 may not claim an exemption

HB4405
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LRB104 17008 HLH 30423 b
1
under this Section.
2

(e) Except as otherwise provided in this subsection (e),
3
each taxpayer who has been granted an exemption under this
4
Section must reapply on an annual basis, except that a veteran
5
who qualifies as a result of his or her service in World War II
6
need not reapply. Application must be made during the
7
application period in effect for the county of his or her
8
residence. The assessor or chief county assessment officer may
9
determine the eligibility of residential property to receive
10
the homestead exemption provided by this Section by
11
application, visual inspection, questionnaire, or other
12
reasonable methods. The determination must be made in
13
accordance with guidelines established by the Department.
14

On and after May 23, 2022 (the effective date of Public Act
15
102-895), if a veteran has a combined service connected
16
disability rating of 100% and is deemed to be permanently and
17
totally disabled, as certified by the United States Department
18
of Veterans Affairs, the taxpayer who has been granted an
19
exemption under this Section shall no longer be required to
20
reapply for the exemption on an annual basis, and the
21
exemption shall be in effect for as long as the exemption would
22
otherwise be permitted under this Section.
23

(e-1) If the person qualifying for the exemption does not
24
occupy the qualified residence as of January 1 of the taxable
25
year, the exemption granted under this Section shall be
26
prorated on a monthly basis. The prorated exemption shall

HB4405
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LRB104 17008 HLH 30423 b
1
apply beginning with the first complete month in which the
2
person occupies the qualified residence.
3

(e-5) Notwithstanding any other provision of law, each
4
chief county assessment officer may approve this exemption for
5
the 2020 taxable year, without application, for any property
6
that was approved for this exemption for the 2019 taxable
7
year, provided that:
8

(1) the county board has declared a local disaster as
9

provided in the Illinois Emergency Management Agency Act
10

related to the COVID-19 public health emergency;
11

(2) the owner of record of the property as of January
12

1, 2020 is the same as the owner of record of the property
13

as of January 1, 2019;
14

(3) the exemption for the 2019 taxable year has not
15

been determined to be an erroneous exemption as defined by
16

this Code; and
17

(4) the applicant for the 2019 taxable year has not
18

asked for the exemption to be removed for the 2019 or 2020
19

taxable years.
20

Nothing in this subsection shall preclude a veteran whose
21
service connected disability rating has changed since the 2019
22
exemption was granted from applying for the exemption based on
23
the subsequent service connected disability rating.
24

(e-10) Notwithstanding any other provision of law, each
25
chief county assessment officer may approve this exemption for
26
the 2021 taxable year, without application, for any property

HB4405
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LRB104 17008 HLH 30423 b
1
that was approved for this exemption for the 2020 taxable
2
year, if:
3

(1) the county board has declared a local disaster as
4

provided in the Illinois Emergency Management Agency Act
5

related to the COVID-19 public health emergency;
6

(2) the owner of record of the property as of January
7

1, 2021 is the same as the owner of record of the property
8

as of January 1, 2020;
9

(3) the exemption for the 2020 taxable year has not
10

been determined to be an erroneous exemption as defined by
11

this Code; and
12

(4) the taxpayer for the 2020 taxable year has not
13

asked for the exemption to be removed for the 2020 or 2021
14

taxable years.
15

Nothing in this subsection shall preclude a veteran whose
16
service connected disability rating has changed since the 2020
17
exemption was granted from applying for the exemption based on
18
the subsequent service connected disability rating.
19

(f) For the purposes of this Section:
20

"Qualified residence" means, before tax year 2023, real
21
property, but less any portion of that property that is used
22
for commercial purposes, with an equalized assessed value of
23
less than $250,000 that is the primary residence of a veteran
24
with a disability. "Qualified residence" means, for tax year
25
2023 and thereafter, real property, but less any portion of
26
that property that is used for commercial purposes, that is

HB4405
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LRB104 17008 HLH 30423 b
1
the primary residence of a veteran with a disability. Property
2
rented for more than 6 months is presumed to be used for
3
commercial purposes.
4

"Service-connected disability" means an illness or injury
5
(i) that was caused by or worsened by active military service,
6
(ii) that is a current disability as of the date of the
7
application for the exemption under this Section for the
8
applicable tax year, as demonstrated by the veteran's United
9
States Department of Veterans Affairs certification, and (iii)
10
for which the veteran receives disability compensation.
11

For tax years 2022 and prior, "veteran" means an Illinois
12
resident who has served as a member of the United States Armed
13
Forces on active duty or State active duty, a member of the
14
Illinois National Guard, or a member of the United States
15
Reserve Forces and who has received an honorable discharge.
16
For taxable years 2023 and thereafter, "veteran" means an
17
Illinois resident who has served as a member of the United
18
States Armed Forces on active duty or State active duty, a
19
member of the Illinois National Guard, or a member of the
20
United States Reserve Forces and who has a service-connected
21
disability, as certified by the United States Department of
22
Veterans Affairs, and receives disability compensation.
For
23
taxable years 2026 and thereafter, "veteran" also includes a
24
person who: (i) served as a member of the United States Armed
25
Forces on active duty or State active duty, as a member of the
26
National Guard of any state or any territory of the United

HB4405
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LRB104 17008 HLH 30423 b
1
States, or as a member of the United States Reserve Forces;
2
(ii) was killed in the line of duty, as certified by the United
3
States Department of Veterans Affairs, at any time prior to
4
the expiration of the application period in effect for the
5
exemption for the taxable year for which the exemption is
6
sought; and (iii) was not an Illinois resident at the time of
7
the person's death.

8
(Source: P.A. 102-136, eff. 7-23-21; 102-895, eff. 5-23-22;
9
103-154, eff. 6-30-23; 103-596, eff. 7-1-24.)

10

Section 99.
Effective date.
This Act takes effect upon
11
becoming law.

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