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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3780

Introduced 2/5/2026, by Sen. Donald P. DeWitte

SYNOPSIS AS INTRODUCED:

35 ILCS 5/901

Amends the Illinois Income Tax Act. Provides that an amount equal to
10% of the net revenue realized from the State income tax during the
preceding month shall be transferred from the General Revenue Fund to the
Local Government Distributive Fund (currently, the amount transferred is
equal to the sum of (i) 6.47% of the net revenue realized from the tax
imposed upon individuals, trusts, and estates during the preceding month;
(ii) 6.85% of the net revenue realized from the tax imposed upon
corporations during the preceding month; and (iii) 6.47% of the net
revenue realized from the tax imposed upon electing pass-through
entities). Effective immediately.
LRB104 19160 HLH 32605 b

A BILL FOR

SB3780
LRB104 19160 HLH 32605 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
changing Section 901 as follows:

6

(35 ILCS 5/901)
7

Sec. 901.
Collection authority.
8

(a) In general. The Department shall collect the taxes
9
imposed by this Act. The Department shall collect certified
10
past due child support amounts under Section 2505-650 of the
11
Department of Revenue Law of the Civil Administrative Code of
12
Illinois. Except as provided in subsections (b), (c), (e),
13
(f), (g), and (h) of this Section, money collected pursuant to
14
subsections (a) and (b) of Section 201 of this Act shall be
15
paid into the General Revenue Fund in the State treasury;
16
money collected pursuant to subsections (c) and (d) of Section
17
201 of this Act shall be paid into the Personal Property Tax
18
Replacement Fund, a special fund in the State
treasury

19
Treasury
; and money collected under Section 2505-650 of the
20
Department of Revenue Law of the Civil Administrative Code of
21
Illinois shall be paid into the Child Support Enforcement
22
Trust Fund, a special fund outside the State
treasury

23
Treasury
, or to the State Disbursement Unit established under

SB3780
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LRB104 19160 HLH 32605 b
1
Section 10-26 of the Illinois Public Aid Code, as directed by
2
the Department of Healthcare and Family Services.
3

(b) Local Government Distributive Fund. Beginning August
4
1, 2017 and continuing through July 31, 2022, the Treasurer
5
shall transfer each month from the General Revenue Fund to the
6
Local Government Distributive Fund an amount equal to the sum
7
of: (i) 6.06% (10% of the ratio of the 3% individual income tax
8
rate prior to 2011 to the 4.95% individual income tax rate
9
after July 1, 2017) of the net revenue realized from the tax
10
imposed by subsections (a) and (b) of Section 201 of this Act
11
upon individuals, trusts, and estates during the preceding
12
month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
13
income tax rate prior to 2011 to the 7% corporate income tax
14
rate after July 1, 2017) of the net revenue realized from the
15
tax imposed by subsections (a) and (b) of Section 201 of this
16
Act upon corporations during the preceding month; and (iii)
17
beginning February 1, 2022, 6.06% of the net revenue realized
18
from the tax imposed by subsection (p) of Section 201 of this
19
Act upon electing pass-through entities. Beginning August 1,
20
2022 and continuing through July 31, 2023, the Treasurer shall
21
transfer each month from the General Revenue Fund to the Local
22
Government Distributive Fund an amount equal to the sum of:
23
(i) 6.16% of the net revenue realized from the tax imposed by
24
subsections (a) and (b) of Section 201 of this Act upon
25
individuals, trusts, and estates during the preceding month;
26
(ii) 6.85% of the net revenue realized from the tax imposed by

SB3780
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LRB104 19160 HLH 32605 b
1
subsections (a) and (b) of Section 201 of this Act upon
2
corporations during the preceding month; and (iii) 6.16% of
3
the net revenue realized from the tax imposed by subsection
4
(p) of Section 201 of this Act upon electing pass-through
5
entities. Beginning August 1, 2023
and continuing through July
6
31, 2026
, the Treasurer shall transfer each month from the
7
General Revenue Fund to the Local Government Distributive Fund
8
an amount equal to the sum of: (i) 6.47% of the net revenue
9
realized from the tax imposed by subsections (a) and (b) of
10
Section 201 of this Act upon individuals, trusts, and estates
11
during the preceding month; (ii) 6.85% of the net revenue
12
realized from the tax imposed by subsections (a) and (b) of
13
Section 201 of this Act upon corporations during the preceding
14
month; and (iii) 6.47% of the net revenue realized from the tax
15
imposed by subsection (p) of Section 201 of this Act upon
16
electing pass-through entities
Beginning August 1, 2026, the
17
Treasurer shall transfer each month from the General Revenue
18
Fund to the Local Government Distributive Fund an amount equal
19
to 10% of the net revenue realized from the tax imposed by
20
subsections (a) and (b) of Section 201 of the Illinois Income
21
Tax Act during the preceding month.
. Net revenue realized for
22
a month shall be defined as the revenue from the tax imposed by
23
subsections (a) and (b) of Section 201 of this Act which is
24
deposited into the General Revenue Fund, the Education
25
Assistance Fund, the Income Tax Surcharge Local Government
26
Distributive Fund, the Fund for the Advancement of Education,

SB3780
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LRB104 19160 HLH 32605 b
1
and the Commitment to Human Services Fund during the month
2
minus the amount paid out of the General Revenue Fund in State
3
warrants during that same month as refunds to taxpayers for
4
overpayment of liability under the tax imposed by subsections
5
(a) and (b) of Section 201 of this Act.
6

Notwithstanding any provision of law to the contrary,
7
beginning on July 6, 2017 (the effective date of Public Act
8
100-23), those amounts required under this subsection (b) to
9
be transferred by the Treasurer into the Local Government
10
Distributive Fund from the General Revenue Fund shall be
11
directly deposited into the Local Government Distributive Fund
12
as the revenue is realized from the tax imposed by subsections
13
(a) and (b) of Section 201 of this Act.
14

(c) Deposits Into Income Tax Refund Fund.
15

(1) Beginning on January 1, 1989 and thereafter, the
16

Department shall deposit a percentage of the amounts
17

collected pursuant to subsections (a) and (b)(1), (2), and
18

(3) of Section 201 of this Act into a fund in the State
19

treasury known as the Income Tax Refund Fund. Beginning
20

with State fiscal year 1990 and for each fiscal year
21

thereafter, the percentage deposited into the Income Tax
22

Refund Fund during a fiscal year shall be the Annual
23

Percentage. For fiscal year 2011, the Annual Percentage
24

shall be 8.75%. For fiscal year 2012, the Annual
25

Percentage shall be 8.75%. For fiscal year 2013, the
26

Annual Percentage shall be 9.75%. For fiscal year 2014,

SB3780
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LRB104 19160 HLH 32605 b
1

the Annual Percentage shall be 9.5%. For fiscal year 2015,
2

the Annual Percentage shall be 10%. For fiscal year 2018,
3

the Annual Percentage shall be 9.8%. For fiscal year 2019,
4

the Annual Percentage shall be 9.7%. For fiscal year 2020,
5

the Annual Percentage shall be 9.5%. For fiscal year 2021,
6

the Annual Percentage shall be 9%. For fiscal year 2022,
7

the Annual Percentage shall be 9.25%. For fiscal year
8

2023, the Annual Percentage shall be 9.25%. For fiscal
9

year 2024, the Annual Percentage shall be 9.15%. For
10

fiscal year 2025, the Annual Percentage shall be 9.15%.
11

For fiscal year 2026, the Annual Percentage shall be
12

9.15%. For all other fiscal years, the Annual Percentage
13

shall be calculated as a fraction, the numerator of which
14

shall be the amount of refunds approved for payment by the
15

Department during the preceding fiscal year as a result of
16

overpayment of tax liability under subsections (a) and
17

(b)(1), (2), and (3) of Section 201 of this Act plus the
18

amount of such refunds remaining approved but unpaid at
19

the end of the preceding fiscal year, minus the amounts
20

transferred into the Income Tax Refund Fund from the
21

Tobacco Settlement Recovery Fund, and the denominator of
22

which shall be the amounts which will be collected
23

pursuant to subsections (a) and (b)(1), (2), and (3) of
24

Section 201 of this Act during the preceding fiscal year;
25

except that in State fiscal year 2002, the Annual
26

Percentage shall in no event exceed 7.6%. The Director of

SB3780
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LRB104 19160 HLH 32605 b
1

Revenue shall certify the Annual Percentage to the
2

Comptroller on the last business day of the fiscal year
3

immediately preceding the fiscal year for which it is to
4

be effective.
5

(2) Beginning on January 1, 1989 and thereafter, the
6

Department shall deposit a percentage of the amounts
7

collected pursuant to subsections (a) and (b)(6), (7), and
8

(8), (c) and (d) of Section 201 of this Act into a fund in
9

the State treasury known as the Income Tax Refund Fund.
10

Beginning with State fiscal year 1990 and for each fiscal
11

year thereafter, the percentage deposited into the Income
12

Tax Refund Fund during a fiscal year shall be the Annual
13

Percentage. For fiscal year 2011, the Annual Percentage
14

shall be 17.5%. For fiscal year 2012, the Annual
15

Percentage shall be 17.5%. For fiscal year 2013, the
16

Annual Percentage shall be 14%. For fiscal year 2014, the
17

Annual Percentage shall be 13.4%. For fiscal year 2015,
18

the Annual Percentage shall be 14%. For fiscal year 2018,
19

the Annual Percentage shall be 17.5%. For fiscal year
20

2019, the Annual Percentage shall be 15.5%. For fiscal
21

year 2020, the Annual Percentage shall be 14.25%. For
22

fiscal year 2021, the Annual Percentage shall be 14%. For
23

fiscal year 2022, the Annual Percentage shall be 15%. For
24

fiscal year 2023, the Annual Percentage shall be 14.5%.
25

For fiscal year 2024, the Annual Percentage shall be 14%.
26

For fiscal year 2025, the Annual Percentage shall be 14%.

SB3780
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LRB104 19160 HLH 32605 b
1

For fiscal year 2026, the Annual Percentage shall be 14%.
2

For all other fiscal years, the Annual Percentage shall be
3

calculated as a fraction, the numerator of which shall be
4

the amount of refunds approved for payment by the
5

Department during the preceding fiscal year as a result of
6

overpayment of tax liability under subsections (a) and
7

(b)(6), (7), and (8), (c) and (d) of Section 201 of this
8

Act plus the amount of such refunds remaining approved but
9

unpaid at the end of the preceding fiscal year, and the
10

denominator of which shall be the amounts which will be
11

collected pursuant to subsections (a) and (b)(6), (7), and
12

(8), (c) and (d) of Section 201 of this Act during the
13

preceding fiscal year; except that in State fiscal year
14

2002, the Annual Percentage shall in no event exceed 23%.
15

The Director of Revenue shall certify the Annual
16

Percentage to the Comptroller on the last business day of
17

the fiscal year immediately preceding the fiscal year for
18

which it is to be effective.
19

(3) The Comptroller shall order transferred and the
20

Treasurer shall transfer from the Tobacco Settlement
21

Recovery Fund to the Income Tax Refund Fund (i)
22

$35,000,000 in January, 2001, (ii) $35,000,000 in January,
23

2002, and (iii) $35,000,000 in January, 2003.
24

(d) Expenditures from Income Tax Refund Fund.
25

(1) Beginning January 1, 1989, money in the Income Tax
26

Refund Fund shall be expended exclusively for the purpose

SB3780
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LRB104 19160 HLH 32605 b
1

of paying refunds resulting from overpayment of tax
2

liability under Section 201 of this Act and for making
3

transfers pursuant to this subsection (d), except that in
4

State fiscal years 2022 and 2023, moneys in the Income Tax
5

Refund Fund shall also be used to pay one-time rebate
6

payments as provided under Sections 208.5 and 212.1.
7

(2) The Director shall order payment of refunds
8

resulting from overpayment of tax liability under Section
9

201 of this Act from the Income Tax Refund Fund only to the
10

extent that amounts collected pursuant to Section 201 of
11

this Act and transfers pursuant to this subsection (d) and
12

item (3) of subsection (c) have been deposited and
13

retained in the Fund.
14

(3) As soon as possible after the end of each fiscal
15

year, the Director shall order transferred and the State
16

Treasurer and State Comptroller shall transfer from the
17

Income Tax Refund Fund to the Personal Property Tax
18

Replacement Fund an amount, certified by the Director to
19

the Comptroller, equal to the excess of the amount
20

collected pursuant to subsections (c) and (d) of Section
21

201 of this Act deposited into the Income Tax Refund Fund
22

during the fiscal year over the amount of refunds
23

resulting from overpayment of tax liability under
24

subsections (c) and (d) of Section 201 of this Act paid
25

from the Income Tax Refund Fund during the fiscal year.
26

(4) As soon as possible after the end of each fiscal

SB3780
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LRB104 19160 HLH 32605 b
1

year, the Director shall order transferred and the State
2

Treasurer and State Comptroller shall transfer from the
3

Personal Property Tax Replacement Fund to the Income Tax
4

Refund Fund an amount, certified by the Director to the
5

Comptroller, equal to the excess of the amount of refunds
6

resulting from overpayment of tax liability under
7

subsections (c) and (d) of Section 201 of this Act paid
8

from the Income Tax Refund Fund during the fiscal year
9

over the amount collected pursuant to subsections (c) and
10

(d) of Section 201 of this Act deposited into the Income
11

Tax Refund Fund during the fiscal year.
12

(4.5) As soon as possible after the end of fiscal year
13

1999 and of each fiscal year thereafter, the Director
14

shall order transferred and the State Treasurer and State
15

Comptroller shall transfer from the Income Tax Refund Fund
16

to the General Revenue Fund any surplus remaining in the
17

Income Tax Refund Fund as of the end of such fiscal year;
18

excluding for fiscal years 2000, 2001, and 2002 amounts
19

attributable to transfers under item (3) of subsection (c)
20

less refunds resulting from the earned income tax credit,
21

and excluding for fiscal year 2022 amounts attributable to
22

transfers from the General Revenue Fund authorized by
23

Public Act 102-700. For purposes of this item (4.5),
24

"surplus" means the cash balance in the Income Tax Refund
25

Fund at the end of such fiscal year, less amounts
26

attributable to transfers under item (3) of this

SB3780
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LRB104 19160 HLH 32605 b
1

subsection (d).
2

(5) This Act shall constitute an irrevocable and
3

continuing appropriation from the Income Tax Refund Fund
4

for the purposes of (i) paying refunds upon the order of
5

the Director in accordance with the provisions of this
6

Section and (ii) paying one-time rebate payments under
7

Sections 208.5 and 212.1.
8

(e) Deposits into the Education Assistance Fund and the
9
Income Tax Surcharge Local Government Distributive Fund. On
10
July 1, 1991, and thereafter, of the amounts collected
11
pursuant to subsections (a) and (b) of Section 201 of this Act,
12
minus deposits into the Income Tax Refund Fund, the Department
13
shall deposit 7.3% into the Education Assistance Fund in the
14
State
treasury

Treasury
. Beginning July 1, 1991, and
15
continuing through January 31, 1993, of the amounts collected
16
pursuant to subsections (a) and (b) of Section 201 of the
17
Illinois Income Tax Act, minus deposits into the Income Tax
18
Refund Fund, the Department shall deposit 3.0% into the Income
19
Tax Surcharge Local Government Distributive Fund in the State
20
treasury

Treasury
. Beginning February 1, 1993 and continuing
21
through June 30, 1993, of the amounts collected pursuant to
22
subsections (a) and (b) of Section 201 of the Illinois Income
23
Tax Act, minus deposits into the Income Tax Refund Fund, the
24
Department shall deposit 4.4% into the Income Tax Surcharge
25
Local Government Distributive Fund in the State
treasury

26
Treasury
. Beginning July 1, 1993, and continuing through June

SB3780
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LRB104 19160 HLH 32605 b
1
30, 1994, of the amounts collected under subsections (a) and
2
(b) of Section 201 of this Act, minus deposits into the Income
3
Tax Refund Fund, the Department shall deposit 1.475% into the
4
Income Tax Surcharge Local Government Distributive Fund in the
5
State
treasury

Treasury
.
6

(f) Deposits into the Fund for the Advancement of
7
Education. Beginning February 1, 2015, the Department shall
8
deposit the following portions of the revenue realized from
9
the tax imposed upon individuals, trusts, and estates by
10
subsections (a) and (b) of Section 201 of this Act, minus
11
deposits into the Income Tax Refund Fund, into the Fund for the
12
Advancement of Education:
13

(1) beginning February 1, 2015, and prior to February
14

1, 2025, 1/30; and
15

(2) beginning February 1, 2025, 1/26.
16

If the rate of tax imposed by subsection (a) and (b) of
17
Section 201 is reduced pursuant to Section 201.5 of this Act,
18
the Department shall not make the deposits required by this
19
subsection (f) on or after the effective date of the
20
reduction.
21

(g) Deposits into the Commitment to Human Services Fund.
22
Beginning February 1, 2015, the Department shall deposit the
23
following portions of the revenue realized from the tax
24
imposed upon individuals, trusts, and estates by subsections
25
(a) and (b) of Section 201 of this Act, minus deposits into the
26
Income Tax Refund Fund, into the Commitment to Human Services

SB3780
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LRB104 19160 HLH 32605 b
1
Fund:
2

(1) beginning February 1, 2015, and prior to February
3

1, 2025, 1/30; and
4

(2) beginning February 1, 2025, 1/26.
5

If the rate of tax imposed by subsection (a) and (b) of
6
Section 201 is reduced pursuant to Section 201.5 of this Act,
7
the Department shall not make the deposits required by this
8
subsection (g) on or after the effective date of the
9
reduction.
10

(h) Deposits into the Tax Compliance and Administration
11
Fund. Beginning on the first day of the first calendar month to
12
occur on or after August 26, 2014 (the effective date of Public
13
Act 98-1098), each month the Department shall pay into the Tax
14
Compliance and Administration Fund, to be used, subject to
15
appropriation, to fund additional auditors and compliance
16
personnel at the Department, an amount equal to 1/12 of 5% of
17
the cash receipts collected during the preceding fiscal year
18
by the Audit Bureau of the Department from the tax imposed by
19
subsections (a), (b), (c), and (d) of Section 201 of this Act,
20
net of deposits into the Income Tax Refund Fund made from those
21
cash receipts.
22
(Source: P.A. 103-8, eff. 6-7-23; 103-154, eff. 6-30-23;
23
103-588, eff. 6-5-24; 104-2, eff. 6-16-25; 104-6, eff.
24
6-16-25; revised 9-10-25.)

25

Section 99.
Effective date.
This Act takes effect upon
26
becoming law.

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