HB4088 Summary

• Creates a new Illinois income tax deduction for union dues paid by taxpayers for taxable years beginning on or after January 1, 2024.

• Allows a full deduction of union dues if the taxpayer was not permitted a federal deduction under Internal Revenue Code Section 67 (the 2% miscellaneous itemized deduction floor).

• For union dues that were partially allowed as federal deductions, permits a proportional Illinois deduction based on the ratio of disallowed to total federal miscellaneous itemized deductions.

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

• Exempts the deduction from Illinois's automatic sunset provisions, making it permanent once enacted.