First Year of the 103^rd General Assembly

The Illinois General Assembly adjourned the 2023 regular session in the early morning hours on May 27, 2023. Session was originally scheduled to adjourn on May 19 but was extended a few additional days due to delays in the budget process. 28 new members joined the General Assembly after the November 2022 election. House members filed over 4,000 bills, and Senate members filed over 2,500 bills, making for a very busy session.

At the end of session, the General Assembly passed a $50.599B budget, BIMP, revenue omnibus, Medicaid omnibus, procurement omnibus, energy omnibus, elections omnibus, property tax omnibus, TIF extension omnibus, sunset extension omnibus, issued $700M in new capital development bonds, created a state health benefits exchange, and allowed the Department of Insurance to reject private health insurance rates deemed unreasonable. A summary of key legislation from the 2023 regular session of the Illinois General Assembly is below. Legislators will return to Springfield for a fall veto session from October 24 to 26 and November 7 to 9.

Jump to:

• FY 2024 Budget
• FY 2024 BIMP
• Revenue Omnibus
• Medicaid Omnibus
• Bond Authorization Act of 2023
• Procurement Omnibus
• Energy Omnibus
• Elections Omnibus
• Property Tax Omnibus
• TIF Extension Omnibus
• Sunset Extension Omnibus
• State Health Benefits Exchange
• Illinois Healthcare Consumer and Small Business Affordability and Transparency Act

FY 2024 Budget

SB 250 (Sims/Gordon-Booth) creates the FY 2024 state budget, which is largely consistent with the governor’s proposed budget from February. The budget operates on a revenue estimate of $50.717B and plans to spend $50.599B. It fully funds the state’s $10B statutory pension obligation and provides an additional $200M above the minimum requirement to the Pension Stabilization Fund (in the BIMP). Highlights of the budget are available below. SB 250 passed the Senate by a vote of 34-22-0 on May 25 and passed the House by a vote of 73-38-0 on May 27. It was signed into law with some line-item vetoes from the governor on June 7, becoming Public Act 103-6.

Early Childhood and K-12 Education

• $18.87B from all funds to pre-K-12 education.
• $250M to create the Smart Start Illinois program to eliminate preschool deserts, stabilize the childcare workforce, expand the Early Intervention Program, home visiting programs, and fund the overhaul of the childcare payment management system.
• $50M for early childhood capital improvements.

• $8.3B to the K-12 evidence-based funding formula, a $350M increase over FY 2023.
• $673.1M to the Early Childhood Block Grant, a $75M increase over FY 2023.
• $45M to create a three-year pilot program to fill teacher vacancies.
• $3M to expand access to computer science coursework.
• $1.6M to launch Dolly Parton’s Imagination Library statewide.
• $28.4M to the Illinois Mathematics and Science Academy.
• $2.364M to the Illinois Education Labor Relations Board.

Higher Education

• $3.15B from all funds to higher education, a $123M increase over FY 2023.
  • $1.30B from the General Revenue Fund (GRF) to public universities, a $78.6M increase over FY 2023.
  • $364.97M GRF to community colleges, a $44.7M increase over FY 2023.
• $100M increase to MAP grant funding to provide tuition-free community college to anyone at or below the median income level.
• $3.8M increase to the Minority Teachers of Illinois Scholarship Program.
• $8.6M increase to the Golden Apple Scholar Program.
• $10.0M for the Prepare for Illinois’ Future Program.
• $2M increase for non-credit workforce development programs.
• $750,000 increase for competitive grants for nursing schools.
• $1.1M increase to the Mental Health Early Action Campus Act.
• $3.15M to establish a community college dual credit grant.
• $5.15M to establish a community college noncredit workforce training grant.
• $10.0M to establish a new Advanced Manufacturing Electric Vehicle grant.
• $1.0M to establish a Data Center Curriculum Development Program.
• $2.0M for the Digital Instruction Adult Education Program.
• $750,000 for English as a Second Language service programs.
• $5M for costs associated with trade schools.

Healthcare and Family Services

• $38.2M from all funds to the Department of Healthcare and Family Services, an increase of $770.4M over FY 2023. The increase in state funding largely counteracts the loss of enhanced federal COVID-19 matching funds.
• $92.5M to raise the asset limit for those receiving Medicaid coverage through Aid to the Aged, Blind, and Disabled to $17,500.
• $303.5M for child support enforcement, a $47.2M increase over FY 2023.

Human Services

• $13.6B from all funds to the Department of Human Services, a $803.0M increase over FY 2023.
• $200.0M increase to continue to implement the Guidehouse rate recommendations.
• $35.0M increase to TANF programs to raise the monthly grant amount from 30% to 35% of the federal poverty level.
• $254.0M increase for Early Intervention and Child Care Services to implement the Smart Start Illinois Program.
• $85M increase, for a total of over $350M, to create the Home Illinois Program to support homelessness prevention, affordable housing, outreach, and other programs.

Aging

• $1.6B from all funds to the Department on Aging.
• $1.3B for the Community Care Program, an increase of $65.4M over FY 2023, to provide a $17 per hour minimum wage for in-home care workers.
• $52.3M for home delivered meals, an $8M increase over FY 2023.
• $1.3M to address service gaps for seniors in rural areas.
• $1.3M to strengthen outreach to Illinois’ growing diverse population of people ages 60 and older.
• $1.0M to support unpaid family caregivers.
• $1.2M to create a new initiative to bring equity to salaries for regional and community ombudsmen.

Children and Family Services

• $325.5M for personnel services to hire at least 192 frontline staff.
• $22.8M to begin implementing the Children’s Behavioral Health Transformation Initiative.
• $69.0M for the rollout of a new electronic case management system.
• $30M for Level of Care Support Services in the form of capital grants for providers to expand and improve facilities for youth with highly specialized needs, an increase of $5M over FY 2023.
• $4.1M increase to fund additional scholarships for current and former youth in care.

Public Health

• $2.1B from all funds to the Department of Public Health, a decrease of $82.8M from FY 2023.
• $42.9M to the Equity and Representation in Health Care Program.
• $16M to upgrade critical data infrastructure within the Department of Public Health.
• $6.5M for responding to new and emerging public health threats and diseases.
• $5M for communications to promote the Department of Public Health’s programs and initiatives.
• $1.5M to provide healthcare to refugees.
• $72,000 to provide free dental services to the Dental Lifeline Network.
• $2M to create a pediatric mental health training program.
• $18M increase to support reproductive health initiatives.
• $38.1M for safety net hospitals.
• $250,000 for the Opioid Overdose Prevention Program.

Veterans’ Affairs

• $214.4M from all funds to the Department of Veterans’ Affairs, an increase of $30.9M over FY 2023.

Corrections

• $2.1B from all funds to the Department of Corrections.

Criminal Justice

• $607.1M from all funds for the Illinois Criminal Justice Information Authority, increase of $71.0M over FY 2023.
• $15M for the Gang Crime Witness Protection Program.

State Police

• $865.9M from all funds to the Illinois State Police, an increase of $70.3M over FY 2023.
• $6.0M for three new cadet classes in FY 2024.

Law Enforcement Training and Standards

• $35.7M for the Law Enforcement Camera Grant Act.
• $27.4M for grants and reimbursements to local law enforcement agencies for basic training expenses required by the SAFE-T Act.
• $4.0M for grants to local law enforcement for costs associated with the National Integrated Ballistic Information ballistic testing equipment.
• $10.0M for the Law Enforcement Officer Retention Pilot Program.

Financial and Professional Regulation

• $160.4M from all funds for the Department of Financial and Professional Regulation, an increase of $10.5M over FY 2023.
• $10.0M to transfer existing licenses to the new licensure platform.

Insurance

• $88.5M to the Department of Insurance, an increase of $19.6M over FY 2023.

Employment Security

• $594.0M from all funds for the Department of Employment Security, a $53.6M increase over FY 2023.

Labor

• $20.0M from all funds for the Department of Labor, an increase of $2.2M over FY 2023.
• $2.1M to the Labor Relations Board, an increase of $33,000 over FY 2023.

Workers’ Compensation

• $31.3M to the Illinois Workers’ Compensation Commission, a $1.21M increase over FY 2023, largely to address the projected increase in cases in FY 2024.

Agriculture

• $201.0M from all funds for the Department of Agriculture, a decrease of $19.7M from FY 2023.
• $600,000 for the Cover Crop Insurance Program.
• $30.0M for the Local Food Purchasing Cooperative Agreement Program.
• $20.5M for administration of the Adult-Use Cannabis Program.
• $550,000 to assist in paying for Future Farmers of America fees for students.
• $6.9M for State Fair operations.

Commerce Commission

• $69.5M for the Illinois Commerce Commission.
• $10.0M for the administration of the Energy Transition Program.
• $3.0M to create the Intervenor Compensation Fund Program.

Environmental Protection

• $880.4M from all funds to the Illinois Environmental Protection Agency, a $335.7M increase over FY 2023.
• $132.3M for the Home Owner Managing Energy Savings Rebate Program using federal Inflation Reduction Act funds.
• $131.5M for the High-Efficiency Electric Home Rebate using federal Inflation Reduction Act funds.
• $20.5M for the Electric Vehicle Rebates Program.
• $3.0M for Climate Pollution Reduction Grant planning.
• $2.5M for the State and Tribal Brownfield Response Program.
• $1.0M for the Environmental Justice Government-to-Government Program.
• $1.8M for the Gulf Hypoxia Action Plan.
• $80.0M for eligible mitigation actions that achieve reductions of emissions related to the Volkswagen Settlement.
• $20.5M for the Water Pollution Control Program.

Natural Resources

• $592.2M from all funds for the Department of Natural Resources.
• $1.24M for community water infrastructure.
• $6.0M for the Coastal Zone Program.
• $4.0M for the Great Lakes Initiative.

Power Agency

• $107.1M for the Illinois Power Agency, a $13.8M increase over FY 2023, with additional funds going to activities related to the Energy Transition Act.

Commerce and Economic Opportunity

• $3.6262B from all funds for the Department of Commerce and Economic Opportunity, a $434.2M decrease from FY 2023.
• $500M new appropriation to the Large Business Attraction Fund (closing fund), in addition to the remaining $400M from FY 2023.
• $40.0M increase to the Social Equity Cannabis Loan Program to provide forgivable direct loans to craft growers experiencing significant barriers to accessing capital.
• $10M to create a multi-year initiative to develop and implement a one-stop business portal to assist individuals wishing to create new business or relocate business in Illinois.
• $20M for the Fast-Track Workforce Program to provide employee screening, recruitment, and job training development to employers.
• $10.0M to support minority-owned business retention by providing grants to entrepreneurs in Illinois that plan to expand in Illinois or prevent relocation to another state.
• $10M to create the Supporting Communities with Major Investment Program to assist communities with major investments to attract job creators.
• $20M to create the Illinois Grocery Initiative to expand grocery access to underserved rural towns and urban neighborhoods.
• $10M for the Clean Energy EV Career and Technical Education Pilot Program to help technical high schools develop curriculum and programming on electric vehicle manufacturing.

Transportation

• $4.20B to the Department of Transportation, a $228.5M increase over FY 2023.
• $60.0M for continued operating assistance for Amtrack intercity passenger rail service, a $5.0M increase over FY 2023.
• $468.2M for continued operating assistance to the Regional Transportation Authority.
• $19.0M for the Fare Reduction Program.
• $9.1M for the PACE Paratransit Program, an increase of $600,000 over FY 2023.
• $586.6M in Motor Fuel Tax disbursements.
  • $205.9M to counties.
  • $287.2M to municipalities.
  • $93.3M to townships and road districts.

Innovation and Technology

• $917.2M from all funds to the Department of Innovation and Technology, an $89.3M increase over FY 2023.

Elections

• $42.9M from all funds to the State Board of Elections, a $3.7M decrease from FY 2023.

Gaming

• $251.9M to the Illinois Gaming Board, an increase of $3.8M over FY 2023.

Revenue

• $1.4406B from all funds to the Department of Revenue, a decrease of $1.0292B from FY 2023, largely due to a decrease in federal funding.
• $15.0M for the Veterans’ Property Tax Relief Program, an increase of $7.5M over FY 2023.

FY 2024 BIMP

HB 3817 (Gordon-Booth/Sims) is the FY 2024 Budget Implementation Bill (BIMP), initiating a variety of fund transfers and making changes to state programs. A summary of the specific provisions is below. HB 3817 passed the House unanimously on March 23 prior to being amended. It passed the Senate as amended by a vote of 36-20-0 on May 25, and the House concurred by a vote of 73-38-0 on May 27. It was signed into law on June 7, becoming Public act 103-8.

Transfers

• Allows an appropriationstransfer limit of 8% for executive agencies in FY 2024.
• $2.5M from the General Revenue Fund (GRF) to the Illinois Higher Education Savings Program Fund.
• $14.04M from the Tourism Promotion Fund to the following sub accounts.
  • $2.274M to the International Tourism Fund.
  • $4.397M to the Chicago Travel Industry Promotion Fund.
  • $7.368M to the Local Tourism Fund.
• $2M from the State Police Services Fund to the Illinois State Police Federal Projects Fund, allowing the Illinois State Police to make payments while awaiting federal reimbursement.
• $10M from the Road Fund to the Federal Mass Transit Trust Fund, allowing the Illinois Department of Transportation to make payments while awaiting federal awards.
• $9.9M from secretary of state funds to the Secretary of State Identification Security and Theft Prevention Fund.
• $9.108M from the Road Fund to PACE for ADA/Paratransit expenses.
• $19.064M from the Road Fund to be used for fares for Student Transportation and Reduce Fare for Elderly.
• $60.0M from the Road Fund for intercity rail subsidies.
• $200M from GRF to the Pension Stabilization Fund.
• $100M from GRF to the Rebuild Illinois Projects Fund.
• $500,000 from GRF to the Governor’s Administrative Fund.
• $500,000 from GRF to the Grant Accountability and Transparency Fund.
• $50M from the Rebuild Illinois Projects Fund to the Illinois Works Fund to supports new appropriations included in the FY 2024 budget.
• $40M from the Compassionate Use of Medical Cannabis Fund to the Cannabis Business Development Fund for social equity applicants.
• Creates the Cannabis Business Development Fund to provide low-interest rate loans to Qualified Social Equity Applicants to pay for expenses to operate a cannabis business.
• $5M from the Solid Waste Management to GRF.
• $10M from the Underground Storage Tank Fund to GRF.
• Allows funds to be transferred to SURS from the State Pension Fund.
• Allows the State Pension Fund to receive money from Unclaimed Property Trust Fund and appropriate to the designated retirement system.
• Replaces the yearly $8.0M transfer from the Hotel Operators’ Occupation Tax with an advance amount to the Sports Facilities Fund.
• Clarifies the distribution of motor fuel tax receipts between the Motor Fuel Tax Fund and the Transportation Renewal Fund.
• Dissolves soil and water conservation district plates funds into the Partners for Conversation Fund.
• $60M from GRF and the Road Fund to counties for road districts to build 20+ ft bridges.
• Removes the repeal requiring a transfer into the Business Services Special Operations Fund.
• $18M transfer to the Partners for Planning.
• Removes the repeal to allow the secretary of state to continue to transfer revenues from the $10 filing fee into the Business Services Special Operations Fund.
• Amends the Illinois Horse Racing Act of 1975 to transfer funds from the Horse Racing Fund to the Horse Racing Purse Equity Fund.

Education

• Increases the College Insurance Program rate to 0.75% from 0.05%, and allows for annual increases of up to 5%. Creates the Community College Insurance Program Committee.
• Directs the Illinois State Board of Education to administer a three-year Teacher Vacancy Grant Pilot Program to reduce unfilled teaching positions.
• Creates the Imagination Library of Illinois Fund to support grants to Dolly Parton's Imagination Library.
• Allows the Capital Development Board to make early childhood construction grants from the Build Illinois Bond Fund and the Rebuild Illinois Projects Fund, in addition to the School Construction Fund.
• Extends the sunset on the AIM High Grant Pilot Program for one year.
• Transfers the remaining balance from the Private College Academic Quality Assurance Fund to the Academic Quality Assurance Fund.
• Dissolves the Professional Sports Teams Education Fund and redirects the special license plate revenues to be deposited directly into the Common School Fund.
• Authorizes the Department of Human Services to establish the Smart Start IllinoisGrant Program for childcare centers and provide a minimum base level of funding for childcare centers.
• Extends current practice of allowing the Personal Property Tax Replacement Fund to be used to fund the Illinois Community College Board’s community college base operating grants and the Illinois Department of Public Health’s local health protection grants to local health departments.
• Increases the minimum threshold for competitive bidding for school districts from $25,000 to $35,000.
• Amends the Higher Education Student Assistance Act to create the Prepare for Illinois' Future Program.
• Creates a student loan repayment assistance for engineers pilot program.

Healthcare

• Creates the Opioid Remediation Service Capital Investment Grant Program.
• Allow the Department of Healthcare and Family Services to appropriate money for the federally funded Money Follows the Person Study.
• Provides for grants to schools for the purpose of creating crisis response maps.
• Allows the Drug Overdose Prevention Program to use any FDA approved formulations of naloxone.
• Amends the Illinois Act on the Aging to establish Care Coordination Unit reimbursement rates, effective July 1, 2023.

Public Safety

• Creates the Fire Station Rehabilitation and Construction Grant Program, allowing OSFM to give local fire departments grants for construction or upgrades to their fire station.
• Creates the IEMA State Projects Fund for the purposes of making grants to nonprofits at high risk of terrorist attacks.
• Allows the Law Enforcement Training Fund to pay the ordinary and contingent expenses of the Illinois Law Enforcement Training and Standards Board.
• Allows the Illinois Law Enforcement Training and Standards Board to make grants for National Integrated Ballistic Information Network.
• Allows the Adult Redeploy Illinois Program at the Illinois Criminal Justice Information Authority to be sued for technical assistance grants.
• Provides that the Department of Corrections shall oversee and budget for Illinois Correctional Industries.
• Creates the Home Illinois Program, requiring the Department of Human Services to create a program focused on preventing and ending homelessness in Illinois.
• Defines credible messenger and allows for violence grants to go to grantees under the Reimagine Public Safety Act.
• Creates the Mechanical Insulation Energy and Safety Assessment Act.

State Administration

• Allows Central Management Services professional services fees to be paid though GRF appropriations to CMS.
• Creates the DCFS Special Purpose Trust Fund and the DCFS Federal Projects Fund.
• Authorizes the Governor’s Office of Management and Budget to use appropriations from the Tobacco Settlement Recover Fund to pay off all outstanding Railsplitter Tobacco Settlement Authority debt.
• Repeals the following funds.
  • Working Capital Revolving Fund.
  • Live and Learn Fund.
  • Professional Sports Teams Education Fund.
  • Private College Academic Quality Assurance Fund.
  • Soil and Water Conservation District Fund.
• Extends the ability for prompt payment interest penalties to be paid the following year.
• Exempts contracts for project management services and system integration services required for the completion of the state's enterprise resource planning project from the Illinois Procurement Code for five years.
• Only requires the Executive Ethics Commission to set aside amounts necessary for the ordinary and contingent expenses of procurement officers in FY 2024.
• Updates the Private Colleges and Universities Capital Distribution Formula Act to provide that funds recouped from Illinois Jobs Now! Program grants are not subject to a redistribution provision.
• Sets the refund percentages at 9.25% for personal income tax and 14% for corporate income tax to be transferred into the Income Tax Refund Fund.
• Allows the Department of Insurance to charge an annual compliance fee forArticle 3 and 4 pension funds to an amount between 0.02% and 0.05% of the total assets of the pension fund.
• Removes the repeal of the Capital Development Board Revolving Fund.
• Allows appropriations of up to $600,000 from the Electric Vehicle Rebate to pay for administering the programs.
• Requires 50% matching for Open Space Lands Acquisition. Distressed local governments can get up to 100% matching.
• Dissolves the Korean War Memorial Construction Fund.
• Changes the funding agent for the Illinois Affordable Housing Act from the Department of Revenue to the Department of Human Services.
• Transfers the Health Human Services Innovation Incubator Program from the Department of Human Services to the Department of Healthcare and Family Services.
• Allows the DHS Technology Initiative Fund to pay for information technology solutions.
• Provides a $2.50 per hour wage increase for all direct support professionals and all other frontline personnel who are not subject to the Bureau of Labor Statistics average wage increases under the Mental Health and Developmental Disabilities Administrative Act. $1.25 of the per hour wage increase will be provided as a direct increase to base wages, and the other $1.25 of the per hour wage increase will be used flexibly for base wage increases.
• Changes the Temporary Assistance for Needy Families (TANF) guideline to 35% poverty guidelines, beginning October 1, 2024.
• Allows the state to make grants for the purpose of administering an incentive program that will attract or retain conventions, meetings, sporting events, and trade shows in Illinois. Requires the Metropolitan Pier and Exposition Authority to provide the Comptroller and Treasurer with the amounts of incentive grant funds used in the fiscal year to provide incentives for conventions, meetings, and trade shows, including future events.
• Extends the timeframe for survivors to apply for duty death benefits to two years from one year.
• Removes the annual transfer from the Corporate Franchise Tax Refund Fund to GRF.
• Makes changes to the Budgeting for Results Commission.
• Removes crisis response mapping from the Freedom of Information Act.
• Removes the Illinois Finance Authority from the designation of a state agency under the Civil Administrative Code.
• $9M from State Aviation Program Fund to provide for sound-reducing windows and door replacements in Chicago.
• Sets the Local Governmental Distribution Fund rate at 6.47%.
• Increases election judges pay to $20 a day.
• Exempts the first $5,000, up from $1,000, from the franchise tax.
• Increases the following Secretary of State fees.
  • $165 for a certificate of title.
  • $20 for a driver’s record.
  • $500 for driver data.
• Changes State Employee Group Insurance to add coverage for weight loss medicine, infertility treatment, and menopause.
• Establishes a veterans’ property tax relief reimbursement pilot program.
• Changes mileage and travel reimbursement rates under the State Finance Act.
• Create an income tax exemption for any cannabis establishment licensed under the Cannabis Regulation and Tax Act.
• Provides that 1% of funds under the Illinois Affordable Housing Act budget shall be allocated to support limited-equity cooperative housing.
• Amends the Cannabis Regulation and Tax Act, changing provisions concerning conditional adult use dispensing organization licenses.

Revenue Omnibus

SB 1963 (Villanueva/Tarver) is the revenue omnibus package, making changes to a variety of state tax credits. Specific provisions are listed below. SB 1963 passed the Senate unanimously on March 29, prior to being amended. It passed the House as amended by a vote of 79-25-2 on May 19, and the Senate concurred by a vote of 53-1-0 on May 24. It was signed into law on June 7, becoming Public Act 103-9.

Aircraft Repair Parts Sales Tax Exemption

• Extends the private aircraft repair parts sales tax exemption through 2029.
• Adds aircraft engine repairs into the tax exemption.

Special Gasohol Sales Tax Treatment

• Reduces sales taxation of gasohol from 100% to 90% from 2024 to 2030.
• Provides that gasohol must contain 81% to 85% gasoline and 15% to 19% denatured ethanol.

Mid-Range Ethanol Sales Tax Treatment

• Temporarily reduces the sales taxation of mid-range ethanol blends to 80% from 2024 to 2030. Sales tax will be applied to 100% of sales after 2030.
• Provides that mid-range ethanol must contain between 20% and 51% denatured ethanol.

Farm Machinery and Equipment Sales Tax Exemption

• Expands the farm machinery and equipment sales tax exemption to cover electrical power generation equipment used primarily to produce agriculture.

Parking Excise Tax

• Exempts booking intermediaries from the state Parking Excise Tax.
• Provides that booking intermediaries levy Parking Excise Tax on the purchase price and any service fees. The Department of Revenue will refund the booking intermediaries for their tax collection.
• Requires certain booking intermediaries to register with the Department of Revenue.

HOOT (Hotel/Motel) Tax

• Exempts rooms rented, leased, or given to organizations chartered by Congress to provide disaster relief from HOOT.

River Edge Redevelopment Zone

• Creates two new pilot River Edge Redevelopment Zones in Joliet and Kankakee.

Historic Preservation Tax Credit

• Extends the sunset of the Historic Preservation Tax Credit program through December 31, 2028.

High Impact Business Program

• Expands eligibility for the High Impact Business program to businesses establishing a new cultured cell material food production facility.

Economic Development for a Growing Economy (EDGE) Tax Credit Program

• Changes the definition of a startup tax paying business under the Economic Development for a Growing Economy (EDGE) Tax Credit from a business that was incorporated within the last five years to a business incorporated within the last ten years.

Investment Partnerships

• Beginning in tax year 2023, creates an income tax modification on the withholding requirements of investment partnerships in Illinois, and expands the required withholding on nonresident partners and retired partners.

Angel Investment Tax Credit

• Increases the Angel Investment Tax Credit from 25% to 35% for investments made in women-owned, minority-owned, disabled-owned, or downstate businesses.
• Increases the annual cap on the credit from $10M to $15M.
• Reserves $2.5M of the total credit budget for minority-owned businesses, $1.25M for women- or disabled-owned businesses, and $1.25M for downstate businesses.

New Markets Tax Credit

• Extends the current qualified equity investment schedule under the New Markets Tax Credit to 2024.
• Increases the annual credit cap from $20M to $25M.
• Extends the program’s sunset date through 2031.

Individual Income Tax Exemption

• Temporarily increases the individual income tax exemption to $2,425, with allowable COLA, for 2023 and 2024. The exemption will decrease to $2,050 after 2024.

Sustainable Aviation Fuel (SAF) Purchase Sales Tax Credit

• Changes the effective date of the Sustainable Aviation Fuel (SAF) Purchase Sales Tax Credit from June 1, 2023, to July 1, 2023. Changes the sunset date from to January 1, 2033, to December 31, 2032
• Clarifies that only the portion of a gallon of aviation fuel that consists of SAF is eligible for the credit.
• Adds requirements that SAF must be purchased for use in Illinois and that the credit can only be applied on whole gallons.
• Clarifies that credits may be allowed at the same time they are earned.
• Requires taxpayers receiving the credit to retain certification from producer of the SAF that the fuel meets SAF eligibility requirements.
• Clarifies that the credit may only be earned only by air common carriers, rather than just air carriers under current law.
• Clarifies that the credit only applies to the state 6.25% sales tax rate, including both local and state portions.

Reimagining Energy and Vehicles (REV) in Illinois Act Changes

• Allows traditional manufacturers that intend to make a capital investment of at least $500M within five years in Illinois and retain at least 800 employees in the state to receive Reimagining Energy and Vehicles (REV) credits through June 1, 2024.
• Provides that the REV credit equals 75% of the incremental income tax attributable to retained employees, or 100% of the incremental income tax attributable to retained employees if the project is located in an underserved area or energy transition area.

Cigarette Tax Changes

• Changes the portion of Cigarette Tax revenues deposited into the General Revenue Fund, Common School Fund, and other state funds.

Non-Home Rule Local Tax Authority Extension

• Extends the taxing authority of various non-home rule local governments through 2030.

Volunteer Emergency Workers Income Tax Credit

• Creates a new income tax credit up to $5,000 for volunteer emergency workers beginning in 2023

Illinois Gives Tax Credit

• Creates a tax credit for taxpayers who give gifts to endowment funds, from 2024 through 2029, equal to 25% of the gift up to $100,000 for an individual.
• Establishes a program annual cap of $5M per year.
• Provides that no more than 15% of the total credits may be provided to qualified community foundations, and 10% of the annual credit amount is reserved for small gift endowment donations of $30,000 or less.

Medicaid Omnibus

SB 1298 (Gillespie/Gabel) creates the Medicaid omnibus package, combining provisions from multiple standalone bills and making various rate increases to providers, including a 10% base rate increase to hospitals. Most of the rate increases do not take effect until January 1, 2024. In total, rate increases in this bill will cost the state $317M in FY 2024. This cost is expected to double to over $600M in FY 2025 when the increases are instituted for a full fiscal year. Additionally, the bill provides the Department of Healthcare and Family Services with unrestricted emergency rulemaking authority with the Joint Committee on Administrative Rules (JCAR) for the Health Benefits for Immigrant Adults (HBIA) Program. The FY 2024 budget funds HBIA at $550M, despite estimates that it could cost up to $1.1B in FY 2024. Emergency rulemaking authority will be used to prevent the program’s costs from ballooning above the budgeted level. SB 1298 passed the Senate prior to being amended on March 29. It passed the House as amended by a vote of 72-31-0 on May 26, and the Senate concurred by a vote of 44-0-2 later on May 26. The bill now awaits the governor’s signature.

Bond Authorization Act of 2023

HB 3551 (Hoffman/Sims) is the Bond Authorization Act of 2023, authorizing $700M in new bonding for capital project. It also makes various changes to the state Bond Authorization Act. HB 3551 passed the House unanimously prior to being amended on March 23. It passed the Senate as amended on May 25 by a vote of 37-19-0, and the House concurred by a vote of 74-37-0 on May 27. It was signed into law on June 7, becoming Public Act 103-7.

Procurement Omnibus

HB 2878 (Hoffman/Castro) creates the annual procurement omnibus and makes various changes to the Illinois Procurement Code. Specific provisions are listed below. HB 2878 passed the House by a vote of 107-5-0 on March 23 before being amended. It passed the Senate as amended by a vote of 53-0-2 on May 19, and the House concurred by a vote of 77-9-1 on May 25. The bill now awaits the governor’s signature.

• Creates a bidding preference for abandoned coal mine reclamation contracts worth over $100,000 to firms that hire at least two former coal mining employees.
• Requires additional reporting on the specific advantages of using single prime procurement delivery for public institutions of higher education.
• Increases the small business threshold for veterans-owned businesses from $75M to $150M.
• Allows public higher education institutions to enter into 10-to 30-year contracts to finance or refinance personal property.
• Excludes contracts under the Public University Energy Conservation Act and any expenditures from advertising directly with a media company from the Procurement Code.
• Exempts procurement of musicians and artists for the State Fair from the Procurement Code.
• Provides that any public agency software contract cannot limit the agency’s ability to run the software on agency hardware.
• Increases the public construction bond threshold from $50,000 to $150,000 through January 1, 2029, and after January 1, 2029, the bond threshold returns to $50,000.
• Requires local governments to consider how they can use compostable products in land maintenance and construction work, and establishes criteria for when compostable products are not required to be used.
• Makes a variety of changes to Transportation Public-Private Partnerships Act.
  • Changes all references to the term “transportation agency” to “responsible public entity.”
  • Removes the prohibition on toll highway public-private partnerships.
  • Removes the annual reporting requirement to provide a description of upcoming projects to any county, municipality, or planning commission impacted.
  • Removes the requirement to ensure any new project is consistent with area regional plans or metropolitan planning commissions.

Energy Omnibus

HB 3445 (Walsh/Stadelman) creates the Energy Omnibus. Details on specific provisions are below. HB 3445 passed the House unanimously on March 22 before being amended. It passed the Senate as amended by a vote of 41-9-0 on May 25 and the House concurred by a vote of 63-32-2 on May 26. The bill now awaits the governor’s signature.

• Expands solar tax credits to include public higher education institutions.
• Requires the Illinois Power Agency to publish three policy studies on topics related to the Climate and Equitable Jobs Act: (1) Utility-scale offshore wind, (2) energy storage systems, and (3) underground transmission lines.
• Clarifies that solar projects can be installed on land owned by school districts, and requires that these projects pay prevailing wage.
• Requires Illinois Commerce Commission to host stakeholder workshops to examine the planning and delivery of thermal energy networks.
• Addresses the Farm Bureau’s concerns with HB 4412 from the 102^nd General Assembly lame duck session, which established statewide siting requirements for wind and solar projects.
• Creates a right of first refusal for utilities in the MISO region to construct new transmission lines.

Elections Omnibus

SB 2123 (Morrison/Stuart) creates the elections omnibus. Details on specific provisions are included below. SB 2123 passed the Senate unanimously prior to being amended on March 29. It passed the House as amended by a vote of 69-36-1 on May 25, and the Senate concurred by a vote of 36-18-0 on May 26. The bill now awaits the governor’s signature.

• Requires the secretary of state to publish any proposed constitutional amendment in local newspapers around the state at least two months before an upcoming election.
• Requires all proposed constitutional amendments, including an explanation of what they would do, to be printed at the top of the ballot preceding all nominations of any political party, rather than on a separate page.

• Extends the reporting deadline for the Public Financing of Judicial Elections Task Force from June 30, 2023, to June 30, 2024.
• Creates the Ranked-Choice and Voting Systems Task Force to conduct a study on ranked choice voting to be completed by March 1, 2024.
• Creates the Security of Remote Vote by Mail Task Force to conduct a study on the feasibility of electronic voting by mail to be completed by March 1, 2024.
• Allows qualified individuals to preregister to vote on or after they turn age 16, when they receive a driver’s license.
• Makes changes concerning when a county convention may occur and when certain appointments to fill a vacancy in the office of precinct committeeperson must be filled.
• Requires each election authority to send notification of any changes to a polling location, by electronic mail or phone call to the township committeeperson, ward committeeperson, or precinct committeepersons, within 10 days of the election.
• Requires any county or election authority with at least 500,000 residents to establish a minimum of two vote centers, one of which must provide curbside voting.
• Increases the fee for a discovery recount from $10 to $50 per precinct specified.
• Invalidates any mayoral appointment to the Metropolitan Pier and Exposition Authority made within the last 45 days of a mayoral term for a mayor who is leaving office at the end of their term. It does not prevent the new mayor for re-appointing the same person.
• Makes November 5, 2024 a state holiday known as 2024 General Election Day, allowing schools to be used as polling places.
• Extends the sunset date for the Access to Voting for Persons with Disabilities Advisory Task Force to from January 1, 2024, to July 1, 2025.

Property Tax Omnibus

HB 2507 (Kifowit/Villanueva) creates the property tax omnibus bill and makes various changes to the Property Tax Code. Details on specific provisions are included below. HB 2507 passed the House unanimously on May 2 prior to being amended. It passed the Senate unanimously as amended on May 19, and the House concurred by a vote of 95-0-2 on May 25. The bill awaits the governor’s signature.

Homestead Exemptions

• Grants WWII veterans a homestead exemption regardless of their level of disability and exempts them from the requirement to reapply every year.
• Makes changes to homestead exemptions for veterans with service-connected disabilities beginning in 2024.
  • 30-50% disability exemption is $2,500.
  • 50-70% disability exemption is $5,000.
  • Over 70% disability exemption is 100% of assessed value up to $250,000.
• Allows surviving spouses of a veteran whose death was service-connected to receive a homestead exemption up to 50% of the assessed value of the property if they do not move residences or remarry.
• Creates an exemption for surviving spouses of fallen police officers and fallen rescue workers equal to 50% of the assessed value of the property.
• Removes the requirement for honorable discharge to qualify for a homestead exemption.

Wastewater Facilities

• Taxes wastewater facilities at one-third of the facility’s fair cash value. This only applies to the treatment facility itself, and not the land on which the facility is located.

Historic Residence Assessment Freeze Law

• Changes the definition of “fair cash value” to state that it is determined by the assessment officer, board of review, Property Tax Appeal Board, or court.
• Provides that, after the expiration of the eight-year valuation period, if the current fair cash value is less than the adjusted base year valuation, then the assessment shall be based on the current fair cash value.

PTELL

• Establishes procedure for a taxing district to increase its levy through referendum if the majority of ballots cast on the specific proposition support an increase.

Park District and Municipal Aquarium and Museum Act

• Renames the Park District Aquarium and Museum Act the “Park District and Municipal Aquarium and Museum Act.”
• Replaces the Act's existing references to "city" and "cities" with "municipality" and "municipalities."
• Provides that extensions for levies made under the Park District and Municipal Aquarium and Museum Act are special purpose extensions and are not included in the park district's or municipality's aggregate extension.

Nursing Homes and Specialized Mental Health Facilities

• Provides that real property that is used to provide licensed services under the Nursing Home Care Act or the Specialized Mental Health Facilities Act shall not be assessed at a higher level than residential property in the county where the facility is located.

TIF Extension Omnibus

HB 2518 (Croke/Turner) extends TIF agreements in the following municipalities: the Village of Channahon, City of Peoria, City of Rock Island, City of Champaign, Village of Evergreen Park, City of Chicago, and City of Sparta. It also allows the Sangamon County Board to create a tourism preservation and sustainability district for improvements to the Bank of Springfield Center in Springfield. HB 2518 passed the House unanimously on May 8 before being amended. It passed the Senate as amended by a vote of 51-1-0, and the House concurred by a vote of 89-10-0 on May 25. It now awaits the governor’s signature.

Sunset Extension Omnibus

SB 89 (Harris/Rita) makes changes to sunset dates in various acts and provisions. Specific provisions are listed below. SB 89 passed the Senate unanimously on March 23 prior to being amended. It passed the House as amended unanimously, and the Senate unanimously concurred on May 24. It was signed into law on May 31, becoming Public Act 103-4.

• Moves the municipal implementation date of the Illinois Stretch Energy Code back to July 1, 2024.
• Extends the sunset date for public building design-build procurement to July 1, 2025.
• Extends the reporting date for the University of Illinois at Chicago’s evaluation of water rates in the Lake Michigan service area to December 31, 2024.
• Pushes back date when brick-and-mortar casinos will be allowed to offer sports wagering on in-state collegiate teams from July 1, 2023, to July 1, 2024. Individual player prop bets and online bets on in-state collegiate teams will remain prohibited.
• Extends to-go cocktails through August 1, 2028.
• Removes the sunset from circuit court clerk fee collection.

State Health Benefits Exchange

HB 579 (Gabel/Gillespie) amends the Department of Insurance Law to create the Illinois Health Benefits Exchange. Creates the position of Marketplace Director of the Illinois Health Benefits Exchange and a 10-member public advisory committee to be appointed by the governor with the advice and consent of the Senate. The Department of Insurance will begin operating the State Health Exchange using the federal platform beginning in plan year 2025 and as a state-based exchange in plan year 2026. HB 579 passed the House by a vote of 72-39-1 on May 10, before being amended. It passed the Senate as amended by a vote of 37-19-0 on May 25, and the House concurred by a vote of 71-37-1 on May 26. The bill now awaits the governor’s signature.

Illinois Healthcare Consumer and Small Business Affordability and Transparency Act

HB 2296 (Gabel/Fine) creates the Illinois Healthcare Consumer and Small Business Affordability and Transparency Act, allowing the Department of Insurance to review, approve, or deny any health insurance rates established by private insurance companies, beginning in 2026. It provides the Department of Insurance with the authority to determine if a health insurance rate is reasonable, too high, or too low. It also requires the Department of Insurance to report on health insurance coverage, affordability, and cost to the General Assembly and governor every year beginning in 2026. HB 2296 passed the House unanimously on March 31. It passed the Senate amended by a vote of 38-19-0 on May 24 and the House concurred by a vote of 69-38-1 on May 26. The bill now awaits the governor’s signature.