IL HB5424

Creates an income tax credit for fire equipment distributors actively researching and developing alternative fire prevention equipment without perfluoroalkyl or polyfluoroalkyl substances (PFAS).

Credit equals 75% of amounts expended during the taxable year to actively develop PFAS-free equipment, applicable for tax years beginning January 1, 2025 through December 31, 2034.

Annual statewide credit cap of $5,000,000 per taxable year, with excess credits not reducing liability below zero and carryable forward for up to 5 subsequent taxable years.

Defines "fire equipment distributor" as entities servicing, recharging, inspecting, installing, maintaining, or repairing fire extinguishers and suppression systems, excluding water sprinkler-only companies and cylinder hydro-testing operations.

Administered by the Office of the State Fire Marshal.