IL HB1202

Creates a new solid waste recycling tax credit under the Illinois Income Tax Act for individual taxpayers equal to 100% of eligible recycling costs, up to a maximum of $1,000 per taxpayer

Eligible recycling costs include expenses for collection, separation, conversion, or treatment of recyclable materials such as paper, glass, and plastic, as well as equipment purchased exclusively for recycling purposes

Credit applies to taxable years ending on or after December 31, 2025

Excess credit amounts that exceed tax liability may be carried forward and applied to tax liability for up to 5 subsequent years

Credit cannot reduce a taxpayer's tax liability below zero and is exempt from the sunset provisions of Section 250