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SB3539 • 2026
INC TAX-MANUFACTURING
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 TAX-MANUFACTURING
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
Assigned to Revenue
Filed with Secretary by Sen. Chapin Rose
First Reading
Referred to Assignments
INC TAX-MANUFACTURING
Illinois General Assembly - Full Text of SB3539 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 SB3539 Home Legislation Full Text SB3539 - 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 SB3539 Introduced 2/5/2026, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: 35 ILCS 5/235 new Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of those expenditures. Provides that the total amount of credits awarded under these provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately. LRB104 19314 HLH 32760 b A BILL FOR SB3539 LRB104 19314 HLH 32760 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 235 as follows: 6 (35 ILCS 5/235 new) 7 Sec. 235. Manufacturing capital expenditure credit. For 8 taxable years that begin on or after January 1, 2026 and begin 9 prior to January 1, 2036, each taxpayer that is engaged in the 10 business of manufacturing (North American Industry 11 Classification System code 31-33) is entitled to a credit 12 against the taxes imposed by subsections (a) and (b) of 13 Section 201 in an amount equal to 10% of the capital 14 expenditures incurred by the taxpayer during the taxable year 15 that are related to manufacturing. The total amount of credits 16 awarded under this Section may not exceed $10,000,000 for any 17 particular taxpayer in any taxable year. However, 18 notwithstanding any other provision of this Section, if the 19 capital investment is made in a rural or economically 20 challenged area, as determined by the Department of Commerce 21 and Economic Opportunity, then the amount of the credit shall 22 be 15% of the capital expenditure, and the maximum amount 23 awarded under this Section for any particular taxpayer in any SB3539 - 2 - LRB104 19314 HLH 32760 b 1 taxable year shall be $20,000,000. A taxpayer may not claim a 2 credit under this Section if the taxpayer claims a credit 3 against the taxes imposed by subsections (a) and (b) of 4 Section 201 for the same capital expenditure under any other 5 provision of law. 6 In no event shall a credit under this Section reduce the 7 taxpayer's liability under this Act to less than zero. The 8 credit may not be carried forward or back. 9 Section 99. Effective date. This Act takes effect upon 10 becoming law. 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