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SB3535 • 2026
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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.
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Rule 3-9(a) / Re-referred to Assignments
Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026
Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
Rule 2-10 Committee Deadline Established As April 24, 2026
Added as Co-Sponsor Sen. Chris Balkema
Assigned to Revenue
Filed with Secretary by Sen. Chapin Rose
First Reading
Referred to Assignments
INC TX- PAID TIME OFF
Illinois General Assembly - Full Text of SB3535 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 SB3535 Home Legislation Full Text SB3535 - 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 SB3535 Introduced 2/5/2026, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer that is an eligible small employer in an amount equal to the amount paid during the taxable year by the eligible small employer to its employees as paid leave that is required by the Paid Leave for All Workers Act. Provides that an eligible small employer is an employer that employs 50 or fewer employees during the taxable year and is subject to the Paid Leave for All Workers Act. Effective January 1, 2027. LRB104 16201 HLH 29862 b A BILL FOR SB3535 LRB104 16201 HLH 29862 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 for paid leave. 8 (a) The General Assembly finds that: 9 (1) Small businesses are the backbone of Illinois' 10 economy, providing goods, services, and jobs in 11 communities across the State. 12 (2) An overwhelming majority (86%) of Americans have a 13 positive view of small business. 14 (3) Small businesses with less than 50 employees 15 comprise 76% of Illinois businesses and employ 30% of 16 Illinois' workforce. 17 (4) The Paid Leave for All Workers Act shifted the 18 fiscal and economic cost of the State's policy goals onto 19 small, Main Street business, the ones least able to pay 20 for it. 21 (5) Small businesses are struggling due to ever 22 increasing business and operational costs, including those 23 imposed by the Paid Leave for All Workers mandate. SB3535 - 2 - LRB104 16201 HLH 29862 b 1 (b) Therefore, for taxable years beginning on or after 2 January 1, 2027, each taxpayer that is an eligible small 3 employer is entitled to a credit against the taxes imposed by 4 subsections (a) and (b) of Section 201 in an amount equal to 5 the amount paid during the taxable year by the eligible small 6 employer to its employees as paid leave that is required by the 7 Paid Leave for All Workers Act. In no event may the credit 8 under this Section exceed more than 40 hours of paid leave for 9 each employee of the eligible small employer in any calendar 10 year. 11 (c) In no event shall a credit under this Section reduce a 12 taxpayer's liability to less than zero. If the amount of 13 credit exceeds the tax liability for the year, the excess may 14 be carried forward and applied to the tax liability for the 5 15 taxable years following the excess credit year. The tax credit 16 shall be applied to the earliest year for which there is a tax 17 liability. If there are credits for more than one year that are 18 available to offset liability, the earlier credit shall be 19 applied first. 20 (d) For partners and shareholders of Subchapter S 21 corporations, the provisions of Section 251 shall apply with 22 respect to the credit under this Section. 23 (e) This Section is exempt from the provisions of Section 24 250. 25 (f) As used in this Section: 26 "Eligible small employer" means an employer that employs SB3535 - 3 - LRB104 16201 HLH 29862 b 1 50 or fewer full-time equivalent employees during the taxable 2 year and that is subject to the Paid Leave for All Workers Act. 3 "Employer" has the meaning given to that term in the Paid 4 Leave for All Workers Act. 5 Section 99. Effective date. This Act takes effect January 6 1, 2027. 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