HB5521 Summary

• Creates an Illinois income tax deduction for union dues paid by taxpayers during the taxable year when the dues were not allowed as a federal deduction under Section 67 of the Internal Revenue Code.

• If any portion of union dues was allowed as a federal miscellaneous itemized deduction, the Illinois deduction is limited to a percentage of the disallowed union dues, calculated by subtracting the ratio of allowed deductions to total miscellaneous itemized deductions from one.

• Defines "union dues" as amounts deductible as union dues and agency shop fees under Section 162 of the Internal Revenue Code.

• The deduction is exempt from the automatic sunset provision in Section 250 of the Illinois Income Tax Act.

• Applies to taxable years beginning on or after January 1, 2018.