Illinois House Bill HB1746

Illinois 2025-2026 Regular Session

• Introduced: 1/24/25
• Refer: 1/28/25
• Refer: 2/18/25
• Refer: 3/21/25

Caption

PROP TX-HOMESTEAD EXEMPT

Summary

HB1746 amends the Illinois Property Tax Code to expand and update two homestead tax benefits. First, it raises the income eligibility threshold for the low-income senior citizens assessment freeze homestead exemption beginning with taxable year 2026. The bill sets the maximum income limitation at the greater of $80,000 or $80,000 adjusted annually by the Consumer Price Index for Urban Consumers (CPI-U), and requires the Illinois Department of Revenue to calculate, publish, and send the indexed amount to county clerks and treasurers each year by January 31. Second, the bill increases the general homestead exemption by setting the maximum reduction at $10,000 in all counties for taxable years 2026 and thereafter. Under current law, the maximum reduction varies by county size; this bill would standardize that amount statewide. The bill retains the existing structure of the homestead exemption system, including rules for seniors, cooperatives, life care facilities, leaseholds, and administrative procedures for county assessment officials.

Impact

HB1746 would directly amend Sections 15-172 and 15-175 of the Property Tax Code, changing the eligibility and benefit levels for two major property tax relief programs. It would likely expand access to the senior assessment freeze by allowing higher-income seniors to qualify, while also increasing the value of the general homestead exemption for homeowners across Illinois. County assessors, county clerks, county treasurers, and the Department of Revenue would have new administrative duties related to calculating, publishing, and applying the indexed income threshold and the updated exemption amount.

Sentiment

No committee transcript or vote record is provided, so there is no documented debate or recorded legislative sentiment in the materials supplied. Based on the bill text alone, the measure appears to be a property-tax relief proposal aimed at homeowners and seniors, which would typically be viewed favorably by taxpayer and senior advocacy interests. At the same time, it would reduce taxable assessed value for local governments, which may raise fiscal concerns for counties, school districts, and other taxing bodies.

Contention

The main policy tension in HB1746 is between property tax relief for homeowners and seniors versus reduced local property tax revenue. The senior freeze expansion could benefit more older residents by raising the income cap and indexing it to inflation, while the statewide increase in the general homestead exemption would lower taxable property values in every county. Potential points of contention include the fiscal impact on local taxing districts, the use of CPI indexing for future eligibility thresholds, and whether a uniform $10,000 exemption is appropriate for all counties regardless of local tax conditions.