IL SB0089

Expands the Illinois income tax deduction for military compensation from members of the "Armed Forces" to all members of the "uniformed services" as defined in 37 U.S.C. 101, which includes additional services beyond the traditional military branches (such as NOAA Commissioned Officer Corps and Public Health Service Commissioned Corps)

For taxable years ending before December 31, 2025, "uniformed services" continues to mean only the Armed Forces of the United States under the existing definition

For taxable years ending on or after December 31, 2025, the broader federal definition of "uniformed services" applies, allowing more service members to deduct their compensation from Illinois taxable income

The deduction applies to compensation paid to Illinois residents for active duty service, National Guard service, and compensation paid to those who were prisoners of war or missing in action