IL HB1824

Creates the Master Development Plan Recognition Act, which defines contributions from state or local government entities (including grants, tax increment financing, and other development-related financing) as being made pursuant to a "master development plan" under Section 118 of the Internal Revenue Code

Amends the Illinois Income Tax Act to allow corporations a deduction from taxable income for capital contributions received from the Department of Commerce and Economic Opportunity or other state agencies and political subdivisions that qualify as master development plan contributions

The deduction applies to contributions that are included in the taxpayer's federal taxable income under Section 118 of the Internal Revenue Code, effective for taxable years ending on or after December 31, 2025

Eligible contributions include grants from DCEO or other state/local entities, tax increment financing applications with government approval, and financing provided under government-approved development, redevelopment, or revitalization plans

The bill takes effect immediately upon becoming law