Historic Budget Signed Into Law Delivering $1.8 Billion in Tax Relief for Illinoisans

SPRINGFIELD, Ill. – One week after the General Assembly passed a fiscally responsible and balanced budget, Governor JB Pritzker signed it into law on Tuesday. This budget provides $1.8 million in tax relief to hardworking families across the state, while also making historic investments in vital services Illinoisans depend on.

"This budget continues us down the path of financial surety, invests in critical resources like public safety and human services, and helps ease the burden of inflation for families with $1.8 billion in tax relief," said House Speaker Emanuel "Chris" Welch. "This is what financial responsibility looks like, and fiscal watchdogs agree. I'm proud of the work that went into this budget and grateful to see Governor Pritzker sign it into law."

This budget suspends the tax on groceries for one year and freezes the motor fuel tax for six months, saving consumers $470 million. It also permanently expands the Earned Income Tax Credit from 18 to 20 percent of the federal credit, while expanding the number of household covered. The budget provides a one-time property tax rebate of up to $300 per household and includes direct checks to working families at $50 per individual and $100 per child (up to three children for each family).

“This two-year pandemic, plus the recent inflation, have combined to cause extreme financial pain for Illinois families," said Leader Greg Harris, (D-Chicago). "Our budget helps ease inflationary pain by cutting taxes on everyday needs like gas, groceries and school supplies; while also providing property tax relief, tax rebates and an expansion of the Earned Income Tax Credit. This new budget demonstrates our commitment to stepping up for the everyday people of this state.”

Additionally, the budget continues Illinois’ progress toward financial stability by making extra pension payments and contributing $1 billion to a long-depleted rainy day fund. It adds an additional $500 million to the Pension Stabilization Fund which will reduce long-term liabilities by an estimated $1.8 billion. This budget invests approximately $1 billion toward public safety and youth employment programs, as well as $350.2 million increase for K-12 education.