IL SB1579

Grants annual homestead property tax exemptions to Illinois veterans with service-connected disabilities, effective starting with taxable year 2007.

Sets exemption amounts based on disability rating: $2,500 for 30-50% disability, $5,000 for 50-70% disability, and full property tax exemption for 70% or higher disability (ratings certified by U.S. Department of Veterans Affairs).

Exemption applies only to qualified residences with equalized assessed value under $250,000 that serve as the veteran's primary residence, excluding any portion used for commercial purposes.

Allows exemptions to continue for surviving spouses who remain in the home unmarried, and permits the surviving spouse to transfer the exemption to a new primary residence; also covers spouses of veterans who died during the application review process.

Veterans with 70% or higher service-connected disability who are killed in the line of duty become eligible for exemption posthumously, with benefits transferable to surviving spouses.