Illinois HB1803: Income Tax Credit for Employing Engineers
Summary
Illinois House Bill 1803 proposes to create an income tax credit for employers who hire qualified engineers. The credit would be 10% of compensation for engineers graduating from Illinois institutions and 5% for those graduating from out-of-state institutions, applicable to compensation paid within the taxable year. The bill is currently in the draft stage.
What changed
Illinois House Bill 1803, introduced on January 27, 2025, proposes the creation of a new state income tax credit for employers. This credit is specifically for compensation paid to "qualified employees" who are engineers and have graduated from an accredited engineering program within the last five years. The credit amount is tiered: 10% of compensation for engineers who graduated from Illinois-based accredited institutions, and 5% for those who graduated from accredited institutions outside of Illinois. The bill amends the Illinois Income Tax Act and is currently progressing through the House Rules Committee.
Companies operating in Illinois that employ engineers, particularly those recently graduated, should review this proposed legislation. If enacted, this bill could provide a significant financial incentive for hiring and retaining engineering talent. Compliance officers should monitor the bill's progress through the Illinois General Assembly, as it may require adjustments to tax reporting and payroll calculations. The bill states it is effective immediately upon becoming law, but specific compliance deadlines will be determined if and when it is passed and signed.
What to do next
- Monitor the progress of HB1803 through the Illinois General Assembly.
- Evaluate potential impact on tax liabilities and employee compensation structures if the bill is enacted.
- Consult with tax advisors regarding eligibility and application of the proposed credit.
Source document (simplified)
IL HB1803 | 2025-2026 | 104th General Assembly
Illinois House Bill 1803
IL State Legislature page for HB1803
- Summary
- Sponsors
- Texts
- Votes
- Research
- Comments
- Track
Status
Sponsorship: Moderate Partisan Bill (Republican 7-2)
Status: Introduced on January 27 2025 - 25% progression
Action: 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee
Pending: House Rules Committee
Text: Latest bill text (Introduced) [HTML]
Summary
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ qualified employees. Provides that the term "qualified employee" means an individual who (i) is employed by the taxpayer as an engineer and (ii) graduated from an engineering program at an accredited institution of higher learning with a Bachelor's degree or higher within the 5 years immediately preceding the taxable year. Provides that the credit shall be equal to (i) 10% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program at an accredited institution of higher learning in Illinois or (ii) 5% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program an accredited institution of higher learning not located in Illinois. Effective immediately.
Tracking Information Register now for our free OneVote public service or GAITS Pro trial account and you can begin tracking this and other legislation, all driven by the real-time data of the LegiScan API. Providing tools allowing you to research pending legislation, stay informed with email alerts, content feeds, and share dynamic reports. Use our new PolitiCorps to join with friends and collegaues to monitor & discuss bills through the process.
Monitor Legislation or view this same bill number from multiple sessions or take advantage of our national legislative search.
Title
INC TX-ENGINEERING STUDENTS
Sponsors
| Rep. Justin Cochran [D] | Rep. Michael Kelly [D] | Rep. Jeff Keicher [R] | Rep. Bradley Stephens [R] |
| Rep. Kevin Schmidt [R] | Rep. Ryan Spain [R] | Rep. Jennifer Sanalitro [R] | Rep. Kyle Moore [R] |
| Rep. Brandun Schweizer [R] | | | |
History
| Date | Chamber | Action |
| --- | --- | --- |
| 2026-03-27 | House | Rule 19(a) / Re-referred to Rules Committee |
| 2026-03-27 | House | Added Co-Sponsor Rep. Brandun Schweizer |
| 2026-03-27 | House | Added Co-Sponsor Rep. Kyle Moore |
| 2026-03-27 | House | Added Co-Sponsor Rep. Jennifer Sanalitro |
| 2026-03-27 | House | Added Co-Sponsor Rep. Ryan Spain |
| 2026-03-27 | House | Added Co-Sponsor Rep. Kevin Schmidt |
| 2026-03-27 | House | Added Co-Sponsor Rep. Brad Stephens |
| 2026-03-26 | House | Added Chief Co-Sponsor Rep. Jeff Keicher |
| 2026-02-26 | House | To Income Tax Subcommittee |
| 2026-02-24 | House | Assigned to Revenue & Finance Committee |
| 2026-01-12 | House | Chief Sponsor Changed to Rep. Justin Cochran |
| 2025-03-21 | House | Rule 19(a) / Re-referred to Rules Committee |
| 2025-03-03 | House | To Income Tax Subcommittee |
| 2025-02-25 | House | Assigned to Revenue & Finance Committee |
| 2025-01-28 | House | Referred to Rules Committee |
| 2025-01-28 | House | First Reading |
| 2025-01-28 | House | Added Chief Co-Sponsor Rep. Michael J. Kelly |
| 2025-01-27 | House | Filed with the Clerk by Rep. Martin J. Moylan |
Code Citations
| Chapter | Article | Section | Citation Type | Statute Text |
| --- | --- | --- | --- | --- |
| 35 | 5 | 235 | New Code | See Bill Text |
Illinois State Sources
| Type | Source |
| --- | --- |
| Summary | https://www.ilga.gov/Legislation/BillStatus?DocNum=1803&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| Text | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=199004&DocName=10400HB1803&DocNum=1803&DocTypeID=HB&LegID=159215&GAID=18&SessionID=114&SpecSess=&Session= |
LegiScan Search
State: Select area of search. Bill Number: Find an exact bill number. Full Text Search: Search bill text and data. [help ] Reset
LegiScan Info
- 2026 Schedules
- Price List
- Weekly Datasets
- Search Help
- Voter Registration
LegiScan Trends
ME LD2232 An Act to Increase County Jail Funding TN SB2326 AN ACT to amend Tennessee Code Annotated, Title 66, relative to property... MO HB1746 Establishes the "AI Nonsentience and Responsibility Act" NJ S2551 Allows law enforcement agencies to distribute epinephrine to officers;... MD HB1527 Complementary and Alternative Health Care - Practice Authorized (Complementary... WV SB587 Adjusting salary schedule for elected county officials AZ SB1754 ADE; special education; parent complaints PA HR394 Designating March 17, 2026, as "Bayard Rustin Day" in Pennsylvania. TN HB2395 AN ACT to amend Tennessee Code Annotated, Title 49, Chapter 1 and Title... LA SB256 Provides for a clerk of court in Orleans Parish. (8/1/26)
Named provisions
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Government & Legislation alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when LegiScan Illinois publishes new changes.