HB1634 amends the Illinois Income Tax Act to create a new income tax credit for eligible first responders who pay for certain wellness-related expenses out of pocket. To qualify, an individual must serve as a first responder for at least 10 months during the taxable year and incur unreimbursed qualified wellness expenses. The credit equals 50% of those expenses, capped at $250 per taxpayer per year, and applies to tax years beginning on or after January 1, 2026 and before January 1, 2031.
The bill defines first responders broadly to include law enforcement officers, corrections officers, firefighters, and emergency medical services personnel employed by the state or local government. Qualified expenses include fitness center or health club memberships, yoga or meditation classes, martial arts or self-defense classes, group fitness or personal training programs, and other approved physical or mental wellness programs. Taxpayers must document both employment and expenses, and the Department of Revenue would be required to adopt implementing rules.
Impact
If enacted, HB1634 would add a new Section 246 to the Illinois Income Tax Act and create a targeted, refundable-by-carryforward style tax benefit for first responders, though the credit cannot reduce liability below zero. The Department of Revenue would administer the program, verify eligibility, and issue credits on a first-come, first-served basis until the annual statewide cap of $2.5 million is reached. The bill would also allow unused credits to be carried forward for up to five years, affecting both individual tax filings and state revenue collections.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment appears supportive and promotional of first responder wellness. The measure is framed as a modest tax incentive rather than a broad tax change, suggesting an intent to provide targeted relief to public safety workers. No recorded opposition or amendment debate is available in the supplied context.
Contention
The main potential points of contention are fiscal cost, administrative complexity, and the scope of eligible expenses. Critics could question whether a tax credit is the best way to support first responder wellness, whether the $2.5 million annual cap is sufficient or arbitrary, and how the Department of Revenue would determine which wellness programs qualify. Another possible issue is equity, since the credit is limited to certain categories of public employees and only applies to unreimbursed expenses, which may exclude other workers with similar wellness costs.
Unreimbursed special education aid paid by the resident school district to a charter school reduction; state portion of special education aid for unreimbursed charter school expenditures increase; appropriating money
Share of unreimbursed special education aid paid by the resident school district to a charter school reduced, state portion of special education aid for unreimbursed charter school expenditures increased, and money appropriated.