HB3280 amends the Illinois Income Tax Act to create a state income tax deduction for union dues paid by an individual taxpayer. Under the bill, a taxpayer may deduct the full amount of union dues if those dues were not deductible on the taxpayer’s federal return because of federal law changes, and if only part of the dues were affected by federal miscellaneous itemized deduction limits, the Illinois deduction is prorated to match the portion disallowed federally. The bill also caps the deduction at $60 for an individual and $100 for a joint return, and makes the deduction exempt from the Act’s automatic sunset provision.
The bill is structured as an amendment to Section 203 of the Illinois Income Tax Act, which governs how Illinois base income is calculated for individuals, corporations, trusts, estates, and partnerships. Although the bill text is broad and includes many existing statutory provisions, its substantive change is the addition of a new subtraction modification for union dues for taxable years beginning on or after January 1, 2026. It would reduce Illinois taxable income for eligible taxpayers and thereby lower state income tax liability for union members who pay dues.
The general sentiment reflected by the bill itself is supportive of organized labor, as the proposal is framed as tax relief for union members. The caption, “INC TX-UNION DUES,” and the sponsor’s introduction suggest a pro-union policy objective. However, there is no recorded committee transcript or voting history in the provided materials, so there is no direct evidence of debate, support, or opposition from legislators or stakeholders in the available record.
Because no committee discussion or votes are provided, there are no documented points of contention in the supplied materials. Based on the text alone, likely areas of policy interest would include the revenue impact on the state, the fairness of providing a targeted deduction to union members, and the interaction between Illinois and federal tax treatment of union dues. The bill also raises administrative questions about how the Department of Revenue would verify eligible dues and apply the federal limitation formula.
HB3280 would amend Section 203 of the Illinois Income Tax Act to add a new subtraction modification for union dues, reducing Illinois base income for qualifying individual taxpayers. The change would apply beginning with taxable years on or after January 1, 2026, and would be exempt from the Act’s automatic sunset provision, meaning it would remain in effect unless later repealed or amended. The bill does not alter corporate, trust, estate, or partnership tax rules beyond inserting the new individual deduction into the broader statutory framework.
The bill appears generally favorable toward labor interests and union members, with its purpose being to provide state income tax relief for union dues that are no longer fully deductible federally. The available materials do not include committee testimony or roll-call votes, so there is no recorded opposition or support from lawmakers in the provided record. On its face, the proposal is a targeted tax benefit and is presented in a straightforward, pro-union manner.
No formal contention is documented in the provided transcripts or voting history because none are available. Potential areas of disagreement, if the bill were debated, would likely center on whether Illinois should create a targeted deduction for union dues, the fiscal cost to state revenues, and whether the deduction should be limited to a capped amount rather than the full dues paid. Another possible issue is the complexity of tying the Illinois deduction to federal miscellaneous itemized deduction rules and requiring taxpayers to calculate the deductible portion based on federal treatment.