Illinois legislation · 104th General Assembly
Illinois SB3539: INC TAX-MANUFACTURING
Status: Introduced, October 15, 2026
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 those expenditures. Provides that the total amount of credits awarded under these 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 awarded for any particular taxpayer in any taxable year shall be $20,000,000. Effective immediately.
What the bill says
A bill FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3539Introduced 2/5/2026, by Sen. Chapin RoseSYNOPSIS AS INTRODUCED: ILCS 5/235 new 35 ILCS 5/235 new ILCS 5/235 new Amends the Illinois Income Tax Act. Creates an income tax credit in anamount equal to 10% of the manufacturing capital expenditures incurred bythe taxpayer during the taxable year or, if the taxpayer is located in arural or economically challenged area, 15% of those expenditures…
From the introduced text, February 5, 2026:
A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3539Introduced 2/5/2026, by Sen. Chapin RoseSYNOPSIS AS INTRODUCED: ILCS 5/235 new 35 ILCS 5/235 new ILCS 5/235 new Amends the Illinois Income Tax Act. Creates an income tax credit in anamount equal to 10% of the manufacturing capital expenditures incurred bythe taxpayer during the taxable year or, if the taxpayer is located in arural or economically challenged area, 15% of those expenditures. Providesthat the total amount of credits awarded under these provisions may notexceed $10,000,000 for any particular taxpayer in any taxable year, exceptthat, if the capital investment is made in a rural or economicallychallenged area, then the maximum amount awarded for any particulartaxpayer in any taxable year shall be $20,000,000. Effective immediately. LRB104 19314 HLH 32760 b LRB104 19314 HLH 32760 b LRB104 19314 HLH 32760 b A BILL FOR SB3539LRB104 19314 HLH 32760 b SB3539 LRB104 19314 HLH 32760 b SB3539 LRB104 19314 HLH 32760 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 adding Section 235 as follows: (35 ILCS 5/235 new) [ADDED: Sec. 235. ][ADDED: Manufacturing capital expenditure credit. ][ADDED: For ] [ADDED: taxable years that begin on or after January 1, 2026 and …
Sponsors
- Chapin Rose (R, 51) · primary sponsor
- Chris Balkema (R, 53)
Latest actions
- : Added as Co-Sponsor Sen. Chris Balkema
- : Rule 3-9(a) / Re-referred to Assignments
- : Rule 2-10 Committee/3rd Reading Deadline Established As May 22, 2026
- : Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
- : Rule 2-10 Committee Deadline Established As April 24, 2026
- : Assigned to Revenue
- : Referred to Assignments
- : First Reading
- : Filed with Secretary by Sen. Chapin Rose
Subjects: ILCS 35 - Revenue
Common questions
- What is SB3539?
- SB3539 is a bill in the Illinois Legislature (104th General Assembly): INC TAX-MANUFACTURING.
- What does SB3539 do?
- In its own words: A bill FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB3539Introduced 2/5/2026, by Sen. Chapin RoseSYNOPSIS AS INTRODUCED: ILCS 5/235 new 35 ILCS 5/235 new ILCS 5/235 new Amends the Illinois Income Tax Act. Creates an income tax credit in anamount equal to 10% of the manufacturing capital expenditures incurred bythe taxpayer during the taxable year or, if the taxpayer is located in arural or economically challenged area, 15% of those expenditures…
- What is the status of SB3539?
- Introduced as of October 15, 2026. Latest action: Added as Co-Sponsor Sen. Chris Balkema (October 15, 2026).
- Who sponsored SB3539?
- Chapin Rose (R, 51), with 1 co-sponsor.
- Where is the official record for SB3539?
- On the Illinois Legislature website: https://www.ilga.gov/Legislation/BillStatus?DocNum=3539&GAID=18&DocTypeID=SB&SessionID=114
Source: official Illinois record. Tracked by Delilah, AI for legislation across all 50 states and Congress.