IL SB1642

Creates a $5,000 homestead property tax exemption from equalized assessed value for police officers and firefighters with duty-related disabilities, effective for taxable year 2023 and forward.

Qualifies police officers and firefighters who have suffered service-related injuries resulting in paraplegia, quadriplegia, dismemberment, or amputation and currently receive or previously received disability benefits under specified sections of the Illinois Pension Code.

Extends the exemption to surviving spouses of qualified officers or firefighters killed in the line of duty, as long as the spouse does not remarry and remains the primary resident or maintains ownership of the property.

Allows the exemption to continue if the recipient moves to a nursing home or Veterans Affairs facility, provided the residence remains owned by the qualifying person or is occupied by their spouse.

Limits the exemption to properties with equalized assessed values under $250,000 and requires annual reapplication with proof of qualifying injury submitted in a form prescribed by the Department.