IL HB4266

Allows taxpayers to claim an income tax credit for donations of disposable diapers, infant/child hygiene products, menstrual hygiene products, or cash designated for purchasing these items to qualified charitable entities.

Credit amount equals the cost of the donation, capped at $1,000 per taxpayer per taxable year, applicable to tax years beginning January 1, 2022 or later.

Excess credits that exceed a taxpayer's tax liability can be carried forward and applied to tax liabilities in the 5 following taxable years, with earlier credits applied first.

Qualified charitable entities include diaper banks, homeless shelters, domestic violence shelters, religious organizations, and other charitable organizations registered with the Department as distributors of these hygiene products.

This tax credit is exempt from the automatic sunset provision under Section 250 of the Illinois Income Tax Act and takes effect immediately upon becoming law.