SB2382 amends the Illinois Income Tax Act to create a new income tax credit for taxpayers who donate real property to an employer, so long as the employer will use the property to provide onsite child care for its employees. The credit applies to taxable years beginning on or after January 1, 2026, and is equal to the fair market value of the donated property, as determined by the Department of Revenue through rulemaking.
The bill limits the credit to donations made to non-related employers, preventing taxpayers from claiming the credit for transfers to related members. It also provides standard tax-credit administration rules: the credit cannot reduce liability below zero, unused credit may be carried forward for up to 10 years, and pass-through entities such as partnerships and S corporations may allocate the credit to partners and shareholders under existing law. The Department of Revenue would be responsible for defining fair market value and administering the credit.
The bill’s impact would be to create a new state tax incentive tied to employer-sponsored child care, potentially encouraging the donation of land or buildings for onsite child care facilities. It would affect the Illinois Income Tax Act by adding a new Section 246 and would primarily benefit taxpayers who can structure qualifying property donations to employers offering child care services. Employers that receive such property could also benefit indirectly by lowering the cost of establishing child care for workers.
Because there are no committee transcripts or recorded votes provided, there is no documented debate or formal sentiment history in the materials supplied. Based on the bill text and caption, the measure appears policy-oriented and supportive of child care access and workforce retention, with no visible opposition in the record provided. Any contention would likely center on the size of the tax benefit, valuation of donated property, and whether the incentive is sufficiently targeted to prevent abuse or windfalls through related-party transactions.
Impact
SB2382 would add a new income tax credit to the Illinois Income Tax Act for qualifying donations of real property used by an employer for onsite child care. It would create a new Section 246, require Department of Revenue rules for fair market value determinations, prohibit credits for related-party donations, allow 10-year carryforward of unused credits, and apply existing pass-through credit rules to partners and S corporation shareholders.
Sentiment
No committee discussion or vote history is provided, so there is no recorded legislative sentiment to summarize. From the bill’s design, the measure appears generally favorable toward expanding employer child care options and offering a tax incentive to support that goal.
Contention
The main potential points of contention are the fiscal cost of a credit equal to the full fair market value of donated property, the administrative challenge of valuing real property, and the possibility of abuse or overuse if transactions are not sufficiently arm’s-length. The related-member exclusion suggests lawmakers anticipated concern about self-dealing or tax planning, but no specific opposition is documented in the provided materials.