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SB3786 • 2026
DCEO-TAX CREDIT REPORT
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.
DCEO-TAX CREDIT REPORT
Added as Co-Sponsor Sen. Jason Plummer
Added as Co-Sponsor Sen. Craig Wilcox
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
Added as Co-Sponsor Sen. Darby A. Hills
Added as Co-Sponsor Sen. Chris Balkema
Rule 2-10 Committee Deadline Established As April 24, 2026
Assigned to Revenue
Filed with Secretary by Sen. Seth Lewis
First Reading
Referred to Assignments
DCEO-TAX CREDIT REPORT
Illinois General Assembly - Full Text of SB3786 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 SB3786 Home Legislation Full Text SB3786 - 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 SB3786 Introduced 2/5/2026, by Sen. Seth Lewis SYNOPSIS AS INTRODUCED: 35 ILCS 5/246 new 35 ILCS 5/247 new 35 ILCS 5/248 new Amends Illinois Income Tax Act. Creates a legacy tax credit for businesses that are headquartered in the State. Creates an employee tax credit and a collective bargaining employee tax credit. Effective immediately. LRB104 19218 HLH 32663 b A BILL FOR SB3786 LRB104 19218 HLH 32663 b 1 AN ACT concerning State government. 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 Sections 246, 247, and 248 as follows: 6 (35 ILCS 5/246 new) 7 Sec. 246. Legacy credit. 8 (a) For taxable years beginning on or after January 1, 9 2026, any sole proprietorship, limited liability company, or 10 corporation that is headquartered in the State is entitled to 11 a credit against the taxes imposed by subsections (a) and (b) 12 of Section 201 in an amount equal to $100 multiplied by the 13 number of years during which the taxpayer has been 14 headquartered in Illinois as of the last day of the taxable 15 year. 16 (b) If the taxpayer is a Subchapter S corporation, the 17 credit shall be allowed to shareholders in accordance with the 18 determination of income and distributive shares of income 19 under Subchapter S of Chapter 1 of the Internal Revenue Code. 20 (c) In no event shall a credit under this Section reduce 21 the taxpayer's liability to less than zero. If the amount of 22 the credit exceeds the tax liability for the year, the excess 23 may be carried forward and applied to the tax liability of the SB3786 - 2 - LRB104 19218 HLH 32663 b 1 5 taxable years following the excess credit year. The tax 2 credit shall be applied to the earliest year for which there is 3 a tax liability. If there are credits for more than one year 4 that are available to offset a liability, the earlier credit 5 shall be applied first. 6 (d) This Section is exempt from the provisions of Section 7 250. 8 (35 ILCS 5/247 new) 9 Sec. 247. Employee tax credit. 10 (a) For taxable years beginning on or after January 1, 11 2026, any sole proprietorship, limited liability company, or 12 corporation that has a business location in the State is 13 entitled to a credit against the taxes imposed by subsections 14 (a) and (b) of Section 201 in an amount equal to $100 for each 15 employee who is a resident of the State and is on the 16 employer's payroll with 6 or more months of consecutive 17 employment with the employer at the end of the taxable year. 18 (b) If the taxpayer is a Subchapter S corporation, the 19 credit shall be allowed to shareholders in accordance with the 20 determination of income and distributive shares of income 21 under Subchapter S of Chapter 1 of the Internal Revenue Code. 22 (c) In no event shall a credit under this Section reduce 23 the taxpayer's liability to less than zero. If the amount of 24 the credit exceeds the tax liability for the year, the excess 25 may be carried forward and applied to the tax liability of the SB3786 - 3 - LRB104 19218 HLH 32663 b 1 5 taxable years following the excess credit year. The tax 2 credit shall be applied to the earliest year for which there is 3 a tax liability. If there are credits for more than one year 4 that are available to offset a liability, the earlier credit 5 shall be applied first. 6 (d) This Section is exempt from the provisions of Section 7 250. 8 (35 ILCS 5/248 new) 9 Sec. 248. Collective bargaining employee tax credit. 10 (a) For taxable years beginning on or after January 1, 11 2026, any sole proprietorship, limited liability company, or 12 corporation that has a business location in the State is 13 entitled to a credit against the taxes imposed by subsections 14 (a) and (b) of Section 201 in an amount equal to $25 for each 15 employee who is a resident of the State, who qualifies under 16 the definitions of the National Labor Relations Board, and who 17 has 6 or more months of consecutive employment with the 18 employer at the end of the taxable year. 19 (b) If the taxpayer is a Subchapter S corporation, the 20 credit shall be allowed to shareholders in accordance with the 21 determination of income and distributive shares of income 22 under Subchapter S of Chapter 1 of the Internal Revenue Code. 23 (c) In no event shall a credit under this Section reduce 24 the taxpayer's liability to less than zero. If the amount of 25 the credit exceeds the tax liability for the year, the excess SB3786 - 4 - LRB104 19218 HLH 32663 b 1 may be carried forward and applied to the tax liability of the 2 5 taxable years following the excess credit year. The tax 3 credit shall be applied to the earliest year for which there is 4 a tax liability. If there are credits for more than one year 5 that are available to offset a liability, the earlier credit 6 shall be applied first. 7 (d) This Section is exempt from the provisions of Section 8 250. 9 Section 99. Effective date. This Act takes effect upon 10 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. 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