IL HB5366

Creates a new deduction under Illinois Income Tax Act for tax years beginning January 1, 2025, allowing deduction of amounts included in federal adjusted gross income attributable to conversion of funds from a Section 529 qualified tuition program to a Roth IRA.

Applies to individuals, corporations, trusts, estates, and partnerships by adding a new modification (subparagraph LL for individuals, KK for corporations, and corresponding provisions for other entity types).

Deduction is exempt from the provisions of Section 250, meaning it does not phase out or expire based on other tax provisions.

Effective immediately upon passage for tax years beginning on or after January 1, 2025.