HB2256 Summary

• Creates a new Illinois state income tax deduction for union dues paid by individual taxpayers for taxable years beginning on or after January 1, 2024, when those dues were not allowed as a federal deduction under Internal Revenue Code Section 67.

• Allows a full deduction of union dues if the taxpayer received no federal deduction; if some federal miscellaneous itemized deductions were allowed, the state deduction is calculated as a percentage based on the ratio of allowed to disallowed federal deductions.

• Defines "union dues" as amounts deductible as union dues and agency shop fees under IRC Section 162.

• Makes this deduction exempt from the Act's automatic sunset provision, providing permanent tax relief for union members.

• Takes effect immediately upon becoming law.