INC TAX-ENERGY CHOICE

Illinois General Assembly - Full Text of HB5194

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5194

Introduced 2/10/2026, by Rep. Lawrence "Larry" Walsh, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Provides that a qualified
taxpayer may apply to the Department of Revenue for an income tax credit in
an amount equal to 20% of the wages paid by the qualified taxpayer to a
qualified energy choice worker based in Illinois in the taxable year.
Provides that the term "qualified taxpayer" means a taxpayer that is a
regulated utility in the State of Illinois or a power generating company
providing baseload or intermediate generation in Illinois and that meets
specified criteria and is able to demonstrate an adverse and material
operational impact to either its overall Illinois-based workforce or its
ability to conduct business in Illinois based on the scheduled phaseout
target dates of 2030, 2035, 2040, and 2045, as provided in Public Act
102-662. Sets forth limitations on the amount of the credit. Effective
immediately.
LRB104 18820 HLH 32265 b

A BILL FOR

HB5194
LRB104 18820 HLH 32265 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.
Credit to support Illinois energy choice and
8
workforce retention.
9

(a) For taxable years ending on or after December 31, 2026
10
and ending on or before December 31, 2030, each qualified
11
taxpayer may apply to the Department for a credit against the
12
tax imposed by subsections (a) and (b) of Section 201 of this
13
Act in an amount equal to 20% of the wages paid by the
14
qualified taxpayer to a qualified energy choice worker based
15
in Illinois in the taxable year. In no event shall a taxpayer
16
receive a credit of more than $2,000 per employee in any
17
taxable year. No taxpayer may claim a credit for more than 50
18
employees in any taxable year.

19

(b) In order to be eligible for a tax credit under this
20
Section, a taxpayer must (i) be a regulated utility in the
21
State of Illinois or a power generating company providing
22
baseload or intermediate generation in Illinois, (ii) be
23
subject to the provisions of Public Act 102-662, and (iii) be

HB5194
- 2 -
LRB104 18820 HLH 32265 b
1
able to demonstrate an adverse and material operational impact
2
to either its overall Illinois-based workforce or its ability
3
to conduct business in Illinois based on the scheduled
4
phaseout target dates of 2030, 2035, 2040, and 2045 contained
5
in Public Act 102-662 on the qualified taxpayer's generational
6
units in Illinois.

7

(c) In no event shall a credit under this Section reduce
8
the taxpayer's liability to less than zero. If the amount of
9
the tax credit exceeds the tax liability for the year, the
10
excess may be carried forward and applied to the tax liability
11
of the 5 taxable years following the excess credit year. The
12
credit must be applied to the earliest year for which there is
13
a tax liability. If there are credits from more than one tax
14
year that are available to offset a liability, then the
15
earlier credit must be applied first.

16

(d) The total aggregate amount of credits awarded under
17
this Section shall not exceed $25,000,000 in any State fiscal
18
year.

19

(e) The Department, in consultation with the Department of
20
Commerce and Economic Opportunity, the Illinois Power Agency,
21
the Illinois Commerce Commission, the Illinois Environmental
22
Protection Agency, and any other State agency deemed
23
necessary, may adopt rules in order to implement and
24
administer the provisions of this Section.

25

(f) As used in this Section:
26

"Qualified energy choice worker" means an employee of a

HB5194
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LRB104 18820 HLH 32265 b
1
qualified taxpayer who is employed and working in Illinois and
2
who is directly employed at the qualified taxpayer's
3
generational unit in Illinois.

4

"Qualified taxpayer" means an employer operating in
5
Illinois that is (i) either a regulated utility in the State of
6
Illinois or a power generating company providing baseload or
7
intermediate generation in Illinois, (ii) subject to the
8
provisions of Public Act 102-662, and (iii) able to
9
demonstrate an adverse and material operational impact to
10
either its overall Illinois-based workforce or its ability to
11
conduct business in Illinois based on the scheduled phaseout
12
target dates of 2030, 2035, 2040, and 2045, as provided in
13
Public Act 102-662, on the qualified taxpayer's generational
14
units in Illinois.

15

Section 99.
Effective date.
This Act takes effect upon
16
becoming law.

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