HB4435 Summary

• Creates Illinois income tax deductions for educational assistance programs under Internal Revenue Code Section 127, effective for taxable years beginning on or after January 1, 2025

• Allows employees to deduct up to $5,250 annually of employer-provided educational assistance, regardless of whether included in federal adjusted gross income

• Allows employers to deduct up to $5,250 annually per employee for educational assistance provided as part of a qualifying educational assistance program

• Both deductions are capped at $5,250 per individual per year and are exempt from the Section 250 limitation on deductions

• Effective immediately upon enactment