HB5210 Summary

• Amends the Illinois Income Tax Act to create a deduction for amounts included in federal adjusted gross income as a result of discharge of student loan indebtedness, effective for taxable years beginning January 1, 2025 through December 31, 2025.

• Creates a new income tax credit (Section 241) for qualified higher education expenses incurred during the taxable year by or on behalf of qualifying students at public universities or community colleges in Illinois, allowing taxpayers to carry forward excess credits for up to 5 years.

• Creates a new income tax credit (Section 231.1) for qualified education expenses incurred by parents or guardians of qualifying apprentices, trade, or vocational students aged 16-26 enrolled in accredited programs.

• Removes the January 1, 2025 expiration date from Section 231 (Apprenticeship Education Expense Credit), allowing the existing $3,500 employer credit plus additional $1,500 credit for underserved areas to continue indefinitely.

• Both new credits are exempt from Section 250 limitations and allow excess credits to be carried forward for up to 5 taxable years if they exceed current year tax liability.