Illinois

Creates the Music Incubator Rebate Act. Provides that the Department of Commerce and Economic Opportunity shall administer a music incubator rebate program under which the Department of Commerce and Economic Opportunity shall provide to the operators of eligible music venues and to eligible music festival promoters a full or partial rebate of the retailers' occupation taxes paid by those operators or eligible music festival promoters on the sale of beer and wine on the premises of the eligible music venue or at the location of the qualified music festival as part of the qualified music festival. Provides that moneys shall be paid from the Music Incubator Fund. Contains provisions creating the Music Incubator Fund. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois and the State Finance Act to make conforming changes. Effective immediately.

Creates the Best Customer Price Act. Provides that a public institution of higher education or a State agency may require best customer pricing for any goods it procures. Provides that, if goods are to be purchased by the State from a supplier or reseller, the supplier or reseller shall attest that the price is the best customer price. Provides that the supplier or reseller shall include a provision in the letter of supply from the manufacturer that the supplier or reseller can secure the supply and quantity of goods to be purchased, and that the manufacturer has extended the same best customer pricing from the manufacturer to each of the suppliers or resellers registered with the State for the goods to be purchased. Provides that, if a public institution of higher education or a State agency requires best customer pricing for the goods but does not believe the price is competitive, the public institution of higher education or the State agency may decline to award the bid. Effective immediately.

Amends the Illinois Income Tax Act. Provides that a limitation on carryover deductions for corporations applies for taxable years ending on or after December 31, 2024 and prior to December 31, 2025 (currently, December 31, 2027). Amends the Business Corporation Act of 1983. Provides that no franchise tax shall be imposed on foreign or domestic corporations on or after January 1, 2026, and repeals those provisions on January 1, 2027. Effective immediately.

Amends the Developmental Disability and Mental Disability Services Act. In provisions limiting the funding amount for home-based services provided by the Department of Human Services to an adult with a mental disability, provides that, subject to appropriation for these purposes, the Department may exceed such funding limits for an adult with a mental disability whose service and support needs require a higher level of funding based on a determination of need administered by the Department or its service coordination agent. Provides that such service and support needs must be incorporated into the service plan of the adult with a mental disability and must align with criteria adopted by the Department. Permits the Department to limit the use of the funds to services and supports the adult with a mental disability requires to continue to live in the community. Permits the Department to adopt rules. Effective immediately.

Amends the Department of Human Services Act. Provides that unless otherwise required by State law or federal requirements, a service provider shall not be subject to a matching funds requirement in order to be eligible to receive funds from the Department for the Emergency and Transitional Housing Program or the Supportive Housing Program. Provides that, when making funding determinations, the Department of Human services retains discretion to take into consideration the ability of a service provider to leverage other funding sources, as well as other factors that may demonstrate fiscal solvency of the service provider and that the service provider is not solely reliant on State funds for the provision of services. Effective immediately.

Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Extends the estimated date of completion of a redevelopment project and the retirement of obligations issued to finance redevelopment project costs for an ordinance adopted April 10, 2002 by the City of Elgin.

Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain taxpayers that are primarily engaged in the recycling and melting of steel products and in the manufacturing of new steel wire and rod products may elect to claim the credit under the Act against their withholding tax liability instead of their income tax liability. Effective immediately.

Amends the Electricity Excise Tax Law. Provides that, beginning July 1, 2025, the tax under the Act is imposed on the operator of an electric vehicle charging station for the electric power transferred for the purpose of charging an electric vehicle. Provides that the tax is not imposed on a person who purchases electricity at an electric vehicle charging station to charge or recharge the battery or other energy storage device of an electric vehicle or on a person who acquires such electricity for free. Provides that the term "purchase price" includes consideration paid by an operator of an electric vehicle charging station to its supplier for the electrical power transferred to the operator's customers for the purpose of charging or recharging the battery or other energy storage device of an electric vehicle. Provides that the term "purchase price" does not include the consideration paid to an operator of an electric vehicle charging station by its customer for the electrical power transferred to charge or recharge the battery or other energy storage device of an electric vehicle. Effective immediately.

Amends the Property Tax Code. Provides that, on and after July 1, 2026, any bill to amend an existing homestead exemption or to create a new homestead exemption shall include the submission of an impact statement prepared by the sponsor of the bill. Provides that the maximum income limitation for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption shall be $85,000 for taxable year 2025 and shall be subject to a cost-of-living adjustment in subsequent years. Provides that, for any tax certificates held by a county, the county clerk may create and administer a payment plan during the redemption period. Amends the Senior Citizens Real Estate Tax Deferral Act. Makes changes concerning the maximum household income. Effective immediately.

Creates the Care for Retired Police Dogs Program Act. Creates the Care for Retired Police Dogs Program within the University of Illinois system to provide a stable funding source for the veterinary care of retired police dogs. Provides that the Board of Trustees of the University of Illinois shall contract with a not-for-profit corporation to administer and manage the Program. Sets forth the required criteria a not-for-profit corporation must meet to be selected for a grant award. Subject to appropriation, requires the Board of Trustees to make grants to the not-for-profit corporation to be the disbursing authority for the Program. Provides that annual disbursements to a former handler or an adopter of a retired police dog to reimburse him or her for the cost of the retired police dog's veterinary care may not exceed $1,500 per dog. Requires the Board of Trustees to adopt rules to implement the Act. Makes a conforming change in the Illinois Vehicle Code.

Amends the University of Illinois Act. In provisions concerning scholarships for the children of veterans, provides that an honorary scholarship may also be given to the children of persons who served at any time during the invasion of Panama between December 20, 1989 and January 31, 1990.

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department of Commerce and Economic Opportunity shall establish a program to award grants to units of local government for the purposes of demolishing or repairing commercial buildings that are detrimental to public health or safety as a result of dilapidation, obsolescence, deterioration, or the failure of the building to meet minimum code standards.

Amends the Election Code. Provides that, if a voter with a print disability's application for permanent vote by mail status is accepted by the election authority and the voter with a print disability requested an accessible vote by mail ballot, the voter with a print disability shall receive an accessible vote by mail ballot for every election the voter with a print disability remains on the permanent vote by mail list. Provides that, for all elections subsequent to the 2026 general election, the State Board of Elections shall provide a certified remote accessible vote by mail system through which an election authority can deliver a vote by mail ballot through electronic transmission to voters with a print through electronic transmission to voters with a print disability and through which voters with a print disability can mark, verify, and return a vote by mail ballot to the election authority electronically. Provides that all electronic documents and web pages that must be used as part of the certified remote accessible vote by mail system provided by the State Board of Elections or election authorities shall be compliant with specified web content guidelines. Provides that the certified remote accessible vote by mail system shall comply with specified requirements. Changes the definition of "certified remote accessible vote by mail system". Makes other changes.

Amends the Mental Health and Developmental Disabilities Administrative Act. Requires the Department of Healthcare and Family Services, in collaboration with the Department of Human Services, to file an amendment to the Home and Community-Based Services Waiver Program for Adults with Developmental Disabilities that shall include an increase in the rate methodology sufficient to provide for a wage rate of 150% of the statewide, regional, or local minimum wage for services delivered on or after January 1, 2026, for all direct support personnel and all other frontline personnel who are not subject to the Bureau of Labor Statistics' average wage increases and who work in residential and community day services settings. Provides that for services delivered on or after January 1, 2026, the rates shall include adjustments to employment-related expenses as defined by rule by the Department of Human Services. Requires the Department of Human Services to adopt rules, including emergency rules, to implement the rate increases. Amends the Medical Assistance Article of the Illinois Public Aid Code. Requires the Department of Healthcare and Family Services to submit a Title XIX State Plan amendment to the federal Centers for Medicare and Medicaid Services that shall include an increase in the rate methodology sufficient to provide for a wage rate of 150% of the statewide, regional, or local minimum wage for services delivered on or after January 1, 2026, for all direct support personnel and all other frontline personnel at ID/DD and MC/DD facilities. Provides that the State Plan amendment shall provide wage increases for all residential non-executive direct care staff. Effective immediately.

Amends the School Code. Provides that, subject to appropriation and beginning with the 2025-2026 school year, the State Board of Education shall award competitive grants on an annual basis to school districts that submit a grant application to the State Board requesting funds to purchase an electric vehicle to be used for student driver education courses. Requires the State Board to disseminate a request for applications for grants that shall be accepted on an annual basis. Requires the State Board to establish procedures for submitting requests for grants and issuing funds to approved applicants. Sets forth priority determinations for application selection by the State Board if the appropriation amount in a fiscal year is less than the amount required to fund all applications for grants. Establishes application requirements. Allows the State Board to adopt rules to implement the provisions.

Creates the Parental Consent for Social Media Act. Provides that a social media company shall not permit an Illinois user who is a minor to be an account holder on the social media company's social media platform unless the minor has the express consent of a parent or legal guardian. Provides that a social media company shall verify the age of an account holder using a third-party vendor to perform reasonable age verification before allowing access to the social media company's social media platform. Provides that a social media company shall not permit an Illinois user who is a minor to access the social media platform between the hours of 10 p.m. through 6 a.m. Sets forth provisions concerning liability for social media companies and liability for commercial entities or third-party vendors.

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year or, if the taxpayer is located in a rural or economically challenged area, 15% of the manufacturing capital expenditures. Provides that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000. Effective immediately.

Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that the Department of Healthcare and Family Services shall not enter into a contract with a managed care organization that relies on a pharmacy benefit manager that does not do the following: (i) utilize a pharmacy reimbursement methodology of the lesser of national average drug acquisition cost plus a professional dispensing fee as determined by the Department, the wholesale acquisition cost plus a professional dispensing fee as determined by the Department, or the usual and customary charge by the pharmacy; (ii) reimburse for a legally valid claim at a rate not less than the rate in effect at the time the original claim adjudication was submitted at the point of sale; (iii) agree to move to a transparent pass-through pricing model, in which the pharmacy benefit manager discloses the administrative fee as a percentage of the professional dispensing costs to the Department; (iv) agree to not create new pharmacy administration fees and to not increase current fees more than the rate of inflation; and (v) agree to not terminate an existing contract with a pharmacy licensed under the Pharmacy Practice Act for the sole reason of the additional professional dispensing fee authorized under item (i). Requires each pharmacy benefit manager that receives reimbursement for medical services, either directly or through a Medicaid managed care health plan, to submit by January 15, 2027, and each January 15 thereafter, certain data and information to the Department for the previous fiscal year, including: (1) the total number of prescriptions that were dispensed; (2) the aggregate wholesale acquisition cost for each drug on its formulary; (3) the aggregate amount of rebates, discounts, and price concessions that the pharmacy benefit manager received for each drug on its formulary; (4) the aggregate amount of administrative fees that the pharmacy benefit manager received from all pharmaceutical manufacturers; and (5) any other information considered necessary by the Department. Requires the Department to submit such data and information to the General Assembly and to the Governor's Office of Management and Budget. Provides that such information is confidential and not subject to disclosure under the Freedom of Information Act.

Amends the Roadside Memorial Act. Provides that a DUI memorial marker shall be maintained permanently (rather than for at least 4 years from the date the last person was memorialized on the marker). Provides that a fatal crash memorial marker shall be maintained permanently (rather than for at least 4 years from the date the last person was memorialized on the marker).

Amends the Unified Code of Corrections. Provides that the Director of Corrections shall establish a canine unit pilot program within the Department of Corrections, which shall consist of a contraband screening program that includes, but is not limited to, the use of a leashed and controlled canine trained to detect illegal drugs at each correctional institution or facility housing 100 or more committed persons. The Department of Corrections shall, by rule, establish standards concerning the operation of the canine units, the chain of command, assignment of canine handlers, the uniforms to be worn by canine handlers, the shifts and assignments of canine handlers, the training of canines for drug detection, the equipment to be issued to canine handlers, the supply of contraband drugs to canine handlers in order to teach the canines drug detection, the transportation of the canines, canine care, handler responsibility for the care of the canines, canine selection, standards for the selection of canine handlers, the placement of the canines after the canines are no longer used in drug detection, veterinary care for the canines, evaluation of canine handlers and the canines in drug detection, and any other standards that the Department deems necessary for the effective operation of the canine drug detection program.

Amends the Illinois Securities Law of 1953. Provides that the Secretary of State may provide funds for restitution assistance to victims that were awarded restitution in a final order issued by a court of competent jurisdiction in a legal action initiated by the Secretary of State and who have not received the full amount of restitution ordered one year after the date of the final order. Provides that the Secretary of State may adopt rules to implement this provision, including, but not be limited to, eligibility requirements for a restitution assistance award, applicable deadlines for applying for the award, and caps on the amount of restitution awards available from the Secretary of State. Provides that various additional fees collected by the Secretary of States shall be deposited into the Secretary of State Special Services Fund.

Amends the Higher Education Student Assistance Act. Beginning with the 2026-2027 academic year and subject to appropriation, provides that the Illinois Student Assistance Commission shall, each year, receive and consider applications for grant assistance under a pilot program to be known as the Growing Regional Opportunities for Work (GROW) Illinois Grant Pilot Program. Provides that the Commission may award grants under the program to applicants who are enrolled or plan to enroll at a public community college participating in the program in a certificate, license, or degree program to work in a high-demand industry, among other qualifications. Sets forth provisions concerning grant renewal, posting requirements, the allocation of funding, the application process, matching and unclaimed funds, the grant amount, reporting requirements, and rulemaking. Repeals the provisions on October 1, 2031. Effective immediately.

Amends the Energy Efficient Building Act. In provisions concerning the Illinois Stretch Energy Code, changes the date by which the Capital Development Board shall create and adopt a stretch energy code with a site energy index no greater than 40% of the 2006 International Energy Conservation Code from December 31, 2025 to December 31, 2026. Changes the date that the Board shall create and adopt a stretch energy code with a site energy index that is no greater than 33% of the 2006 International Energy Conservation Code from no later than December 31, 2028 to no later than December 31, 2029. Changes the date by which the Board shall create and adopt a stretch energy code with a site energy index no greater than 25% of the 2006 International Energy Conservation Code from no later than December 31, 2031 to no later than December 31, 2032.

Amends the Counties Code. Provides that, in addition to but separate and apart from the compensation otherwise provided in the Code, the county clerk of each county, the recorder of each county, and the chief clerk of each county board of election commissioners shall receive an annual award of $13,000 for calendar year 2025, $14,000 for calendar year 2026, and $15,000 for calendar year 2027 and for each calendar year thereafter (rather than a $6,500 award per year). Effective immediately.

Creates the Electric Vehicle Charging Fee Act. Provides that a fee is imposed on the privilege of engaging in business as an electric vehicle power provider in this State. Provides that, from January 1, 2026 through January 1, 2027, the rate of fee shall be $0.06 per kilowatt hour of electric vehicle power. Provides that the rate of fee shall be increased on January 1 of each year by the percentage increase, if any, in the Consumer Price Index. Amends the Public-Private Partnerships for Transportation Act. Creates a dynamic wireless electric vehicle charging pilot program. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking. Effective January 1, 2026.