IL HB5039

Establishes a comprehensive regulatory framework for hemp and hemp-derived cannabinoid products in Illinois, including licensing, registration, packaging and labeling standards, age verification, laboratory testing, recordkeeping, and enforcement with penalties.

Creates a 50% corporate income tax deduction for hemp business establishments on income generated from sales of products made by minority-owned and other priority-population-owned businesses.

Establishes the Hemp Social Equity Fund to provide loans, grants, and technical assistance for social equity applicants entering the hemp industry.

Amends the Liquor Control Act of 1934 to declare hemp extract and hemp-cannabinoid products made in compliance with state law as fit for human consumption, and authorizes liquor license holders to manufacture, distribute, and sell such products.

Excludes hemp-cannabinoid products subject to tax under the Industrial Hemp Act from the definition of tobacco products under the Tobacco Products Tax Act of 1995, with an effective date of January 1, 2027.