HB1386 amends the Illinois Income Tax Act to increase the income tax credit available to volunteer emergency workers. For taxable years beginning on or after January 1, 2026 and before January 1, 2029, the credit would rise from $500 to $1,000 per eligible individual. The bill also increases the annual statewide cap on these credits from $5 million to $6 million beginning in calendar year 2026.
The bill keeps the existing eligibility framework in place. A volunteer emergency worker must generally serve at least nine months during the taxable year and receive no more than $5,000 in compensation for those services. For volunteer members of county or municipal emergency services and disaster agencies, the bill retains the additional 100-hour service requirement. The measure also preserves the first-come, first-served allocation process and the rule that the credit cannot reduce tax liability below zero.
Impact
HB1386 would amend Section 234 of the Illinois Income Tax Act, directly changing the amount and annual cap of the volunteer emergency worker tax credit. It would affect eligible volunteer firefighters and certain volunteer emergency services and disaster agency members, while also requiring the Department of Revenue, the Office of the State Fire Marshal, and the Illinois Emergency Management Agency and Office of Homeland Security to continue administering and verifying eligibility through annual reporting and registration processes. The bill would apply prospectively to taxable years beginning in 2026 and would take effect immediately upon enactment.
Sentiment
The bill appears generally supportive of volunteer emergency responders, with the policy goal of increasing recognition and financial assistance for individuals who provide emergency services on a volunteer basis. Because there are no recorded committee transcripts or votes in the provided materials, there is no documented opposition or formal debate history to indicate broader legislative sentiment. The bill’s structure suggests a favorable view of expanding the credit and its funding cap.
Contention
The main policy questions raised by the bill are fiscal and administrative rather than ideological. Increasing the per-person credit and the statewide cap would reduce state income tax revenue and could intensify competition for credits under the first-come, first-served system. Another possible point of concern is eligibility verification, since the bill relies on local fire chiefs, emergency services coordinators, and state agencies to certify service hours, compensation limits, and registration status. No specific objections or opposing viewpoints are included in the available record.