IL HB2732

Increases the Illinois income tax credit for instructional materials and supplies from $500 per taxable year to $500 per semester (effectively $1,000 annually) for eligible educators

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

Eligible recipients include teachers, instructors, counselors, principals, and aides who work at least 900 hours during a school year at a public or non-public school in Illinois

Credit covers out-of-pocket expenses for classroom instructional materials and supplies

Excess credits cannot be carried back but may be carried forward for up to 5 taxable years