IL HB2395

Creates a new Illinois state income tax deduction for union dues paid by taxpayers who cannot deduct them on their federal return due to the 2% floor on miscellaneous itemized deductions under IRC Section 67

Allows taxpayers to deduct the full amount of union dues if no federal deduction was permitted; if a partial federal deduction was allowed, the Illinois deduction is calculated as a percentage of the disallowed amount

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

The deduction is permanently exempt from the Illinois Income Tax Act's automatic sunset provision (Section 250)

Takes effect immediately upon becoming law