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HB5203 • 2026
INC TX-HOTEL RENOVATION
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-HOTEL RENOVATION
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. Michael J. Kelly
INC TX-HOTEL RENOVATION
Illinois General Assembly - Full Text of HB5203 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 HB5203 Home Legislation Full Text HB5203 - 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 HB5203 Introduced 2/10/2026, by Rep. Michael J. Kelly SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates an income tax credit for a taxpayer who owns, operates, or manages a hotel. Provides that the amount of the credit is equal to 25% of the qualified renovation expenditures incurred during the taxable year, subject to specified limitations. Effective immediately. LRB104 18609 HLH 32052 b A BILL FOR HB5203 LRB104 18609 HLH 32052 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. Hotel renovation tax credit. 8 (a) As used in this Section: 9 "Qualified renovation expenditures" means expenditures 10 directly related to the renovation, rehabilitation, or 11 improvement of a hotel property located in this State, to the 12 extent those costs are demonstrably increased as a result of 13 tariffs imposed on imported materials on or after January 1, 14 2025. 15 "Qualified taxpayer" means a taxpayer that is subject to 16 tax under subsections (a) and (b) of Section 201 of this Act 17 and who owns, operates, or manages a hotel as defined in the 18 Hotel Operators' Occupation Tax Act. 19 "Union labor" means labor performed by individuals who are 20 members of a bona fide labor organization recognized under 21 federal or State law. 22 (b) For taxable years beginning on or after January 1, 23 2027 and beginning before January 1, 2035, a qualified HB5203 - 2 - LRB104 18609 HLH 32052 b 1 taxpayer is entitled to a credit against the tax imposed by 2 subsections (a) and (b) of Section 201 of this Act in an amount 3 equal to 25% of the qualified renovation expenditures incurred 4 during the taxable year, subject to the limitations provided 5 in this Section. 6 (c) To be eligible for the credit under this Section: 7 (1) the taxpayer must certify that all construction, 8 renovation, or rehabilitation work related to the claimed 9 expenditures was performed using union labor; 10 (2) the taxpayer must provide documentation, as 11 prescribed by the Department, demonstrating that the 12 renovation costs were increased due to tariffs on 13 materials; and 14 (3) the taxpayer must maintain records sufficient to 15 substantiate eligibility for the credit for a period of 16 not less than 5 years. 17 (d) The total amount of the credit allowed under this 18 Section for any taxpayer in a taxable year shall not exceed 19 $500,000. The credit may not reduce the taxpayer's liability 20 to less than zero. Any unused credit may be carried forward and 21 applied to the taxpayer's liability for up to 5 taxable years 22 following the year in which the credit is first allowed. 23 (e) The Department shall adopt rules and prescribe forms 24 as necessary to implement and administer this Section, 25 including rules for verifying tariff-related cost increases 26 and union labor compliance. HB5203 - 3 - LRB104 18609 HLH 32052 b 1 Section 99. Effective date. This Act takes effect upon 2 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