Illinois legislation · 104th General Assembly
Illinois HB1383: INC TX-DEDUCTION FOR TIPS
Status: In committee, May 29, 2026
Amends the Illinois Income Tax Act. Creates an income tax deduction for gratuities that are included in the taxpayer's federal adjusted gross income. Effective immediately.
What the bill says
A bill FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB1383Introduced 1/28/2025, by Rep. Ryan Spain and Tony M. McCombieSYNOPSIS AS INTRODUCED: ILCS 5/203 35 ILCS 5/203 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deductionfor gratuities that are included in the taxpayer's federal adjusted grossincome. Effective immediately. LRB104 06045 HLH 16078 b LRB104 06045 HLH 16078 b LRB104 06045 HLH 16078 b A BILL FOR HB1383LRB104 06045 HLH 16078 b HB1383 LRB104 06045 HLH 16078 b HB1383 LRB104 06045 HLH 16078 b AN ACT concerning revenue.
From the introduced text, January 15, 2025:
A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB1383Introduced 1/28/2025, by Rep. Ryan Spain and Tony M. McCombieSYNOPSIS AS INTRODUCED: ILCS 5/203 35 ILCS 5/203 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deductionfor gratuities that are included in the taxpayer's federal adjusted grossincome. Effective immediately. LRB104 06045 HLH 16078 b LRB104 06045 HLH 16078 b LRB104 06045 HLH 16078 b A BILL FOR HB1383LRB104 06045 HLH 16078 b HB1383 LRB104 06045 HLH 16078 b HB1383 LRB104 06045 HLH 16078 b AN ACT concerning revenue. Be it enacted by the People of the State of Illinois, represented in the General Assembly: Section 5.The Illinois Income Tax Act is amended by changing Section 203 as follows: (35 ILCS 5/203) Sec. 203.Base income defined. (a) Individuals. (1) In general. In the case of an individual, base income means an amount equal to the taxpayer's adjusted gross income for the taxable year as modified by paragraph (2). (2) Modifications. The adjusted gross income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts: (A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except …