Illinois would refund excess residential property tax credits

Illinois would refund the part of a residential property tax credit that exceeds a taxpayer's state income-tax liability. The rule would apply to individual taxpayers claiming a credit for property taxes paid on their principal residence, including the proper share for a multi-unit, mixed-use, or farm property. The credit equals 5% of qualifying real property taxes paid during the tax year. Taxpayers cannot claim the credit if adjusted gross income is more than $500,000 for a joint federal return or more than $250,000 for other taxpayers. The refund would not count as income or resources when deciding eligibility or benefit levels for means-tested government programs, unless federal law requires it. The refund rule would apply to tax years beginning on or after January 1, 2026, if the Act becomes law.