IL SB2624

Creates an income tax credit for individual taxpayers who rent a dwelling in Illinois as their principal place of residence, effective for tax years ending December 31, 2024 and later.

Credit equals 5% of documented rental costs paid during the taxable year.

Taxpayer must reside in Illinois for at least 183 days, have federal adjusted gross income not exceeding 300% of federal poverty guidelines, have rental payments exceeding 20% of adjusted gross income, and not be claimed as a dependent.

Credit does not apply to individuals renting tax-exempt properties; Department may establish maximum credit amounts by region based on HUD fair market rents and set documentation requirements.

Credit provides refunds if the amount exceeds the taxpayer's income tax liability for the year.