IL HB1573

Creates an Illinois income tax deduction for employees who receive educational assistance from their employer as part of a qualifying program under Section 127 of the Internal Revenue Code

Creates a separate income tax deduction for employers who pay educational assistance on behalf of their employees under a qualifying educational assistance program

Limits both deductions to the first $5,250 of educational assistance provided to any individual per year

Applies to taxable years beginning on or after January 1, 2026

Takes effect immediately upon becoming law