IL HB3501

Lowers the service-connected disability threshold from 30% to 20% for veterans to qualify for a $2,500 annual homestead exemption for taxable years 2017 and thereafter.

Extends the $2,500 annual homestead exemption to veterans over age 75 who are not disabled or have a service-connected disability of less than 50%, effective for taxable years 2017 and thereafter.

Removes the requirement that the homestead exemption applies only to residences with an equalized assessed value of less than $250,000.

Maintains existing exemption structure for veterans with 50-70% disability ($5,000 annual exemption) and 70% or more disability (full property tax exemption).

Takes effect immediately upon becoming law.