Skip to content
NFIB Logo Join Now

Illinois Legislature Passes Budget Increasing Spending

Illinois Legislature Passes Budget Increasing Spending

May 29, 2024 Last Edit: June 5, 2025

Illinois Legislature Passes Budget Increasing Spending

The Illinois General Assembly passed a budget package for the upcoming fiscal year that—once again—increases spending and taxes. The budget includes over $53 billion in general revenue spending, a 1.6% increase over the current year’s general revenue spending (though 5% over the original budget passed last May). To fund this additional spending, the legislature voted to raise a number of taxes to bring in over $800 million in new revenue. These tax increases include:
  • Capping the retail discount that retailers receive for collected sales taxes at $1,000 per month (impacting retailers with monthly sales of approximately $650,000 or more at an assumed sales tax rate of 8.75%).
  • Extending the cap on the net operating loss deduction that was set to expire—though raising the cap from $100,000 to $500,000.
  • Imposing a new 1% tax on video-gaming terminals.
  • Raising taxes on sports betting.
  • Imposing new taxes on businesses that re-rent hotel rooms.
The budget package also provides for the elimination of the grocery tax on January 1, 2026, and increases the tax credit that employers are eligible for when they hire recently released offenders.

Check it out!

Until 05/11/2024
Lorem ipsum dolor site amet
Learn More
Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

February 20, 2026
Millionaire Tax Proposal Begins House Journey
NFIB rallying opposition to Senate measure that will affect small businesses
Read More
February 19, 2026
WATCH: NFIB Arizona Member Testifies Before Ways and Means Committee
NFIB Leadership Council Member Brad Scott testifies in support of HB 2290, which would clarify Arizona’s Transaction Privilege Tax Sourcing Law
Read More
February 18, 2026
NFIB Arizona to Lawmakers: Small Businesses Need Tax Certainty Now
“We will continue to urge lawmakers to take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law so …
Read More
Illinois Flag
February 18, 2026
NFIB Reacts to Illinois Gov. Pritzker’s State of the State Speech
NFIB will continue fighting in Illinois for pro-small business policies
Read More

© 2001 - 2026 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility