IL HB3280

Creates a new Illinois state income tax deduction for union dues paid by taxpayers who were not allowed to deduct them on their federal return due to Section 67 of the Internal Revenue Code (the 2% floor on miscellaneous itemized deductions)

Limits the deduction to a maximum of $60 per individual taxpayer or $100 for spouses filing a joint return per taxable year

Applies to taxable years beginning on or after January 1, 2026, and defines qualifying union dues as those deductible under Section 162 of the Internal Revenue Code for union dues and agency shop fees

For taxpayers who received a partial federal deduction, the Illinois deduction is calculated proportionally based on the percentage of miscellaneous deductions disallowed under the federal 2% floor

Exempts this deduction from the Illinois Income Tax Act's automatic sunset provision, making it permanent