HB2791 Summary

• Creates a deduction for Illinois income tax purposes for union dues paid by taxpayers during the taxable year if the dues were not allowed as a federal deduction under Section 67 of the Internal Revenue Code (the 2% floor on miscellaneous itemized deductions).

• If some union dues were allowed as a federal miscellaneous itemized deduction, the Illinois deduction is calculated as a percentage of the disallowed union dues based on the ratio of federal miscellaneous deductions allowed to total federal miscellaneous deductions before the 2% floor.

• Applies to taxable years beginning on or after January 1, 2020.

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

• Exempts this deduction from the automatic sunset provision in Section 250 of the Illinois Income Tax Act.