IllinoisIllinois would offer first-time buyers a $500 home tax credit
Illinois homebuyers who meet the first-time buyer rules could claim a $500 state tax credit for a main home bought in a tax year starting in 2027 or later.
What it does
First-time buyers could claim a $500 Illinois income tax credit if they keep the purchased home as their main residence through the end of that tax year. Any unused amount may carry forward for up to five years.
Argument forEligible first-time buyers could lower their Illinois income tax by $500, and may have up to five years to use any credit beyond their tax bill.
Argument againstBuyers with little or no Illinois income tax might not use the full credit, since it cannot reduce tax below zero and unused amounts can be carried forward for only five years.
More detail
The bill would offer a $500 Illinois income tax credit. The buyer must acquire an ownership share in an Illinois home used as their main residence. Neither the buyer nor their spouse may have owned a main home during the three years before the purchase. The credit cannot reduce tax below zero. Any unused amount may be carried forward for the next five tax years and used against the earliest tax bill owed. If two or more unmarried people buy the home, the Department of Revenue would set how they share the credit. The credit would apply to tax years beginning on or after January 1, 2027. The Act would take effect when it becomes law.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 2Added as Co-Sponsor Sen. Paul JacobsLatest
- Jul 9Added as Co-Sponsor Sen. Dave Syverson
- Jul 6Added as Co-Sponsor Sen. Sue Rezin
- May 22Rule 3-9(a) / Re-referred to Assignments
- May 15Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026
- Apr 24Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
- Mar 13Rule 2-10 Committee Deadline Established As April 24, 2026
- Mar 10Added as Co-Sponsor Sen. Seth Lewis
- Mar 6Added as Co-Sponsor Sen. Jason Plummer
- Mar 5Added as Co-Sponsor Sen. Jil Tracy
- Mar 5Added as Co-Sponsor Sen. Darby A. Hills
- Mar 5Added as Co-Sponsor Sen. Donald P. DeWitte
- Mar 5Added as Co-Sponsor Sen. Craig Wilcox
- Mar 4Added as Co-Sponsor Sen. Chris Balkema
- Mar 4Added as Co-Sponsor Sen. Sally J. Turner
- Mar 3Added as Co-Sponsor Sen. John F. Curran
- Feb 24Assigned to RevenueMinor
- Feb 6Referred to Assignments
- Feb 6First ReadingMinor
- Feb 6Filed with Secretary by Sen. Erica HarrissIntroduced
Taxes & BudgetHousing