Illinois Bill Caps New Markets Credits at $37M, Allows Affiliate Transfers

LegiScan Illinois

Published January 27th, 2026

Detected March 30th, 2026

Summary

Illinois House Bill 4636, introduced on January 27, 2026, proposes amendments to the New Markets Development Program Act. The bill caps New Markets credits at $37,000,000 for fiscal years beginning on or after July 1, 2029, and allows for the transfer of these credits to affiliates. It also modifies the allocation schedule for these credits.

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What changed

Illinois House Bill 4636, introduced in the 104th General Assembly, proposes significant changes to the state's New Markets Development Program. Key provisions include capping the total credits available under the program at $37,000,000 for fiscal years commencing on or after July 1, 2029, and introducing the ability for credits to be transferred to affiliated entities. The bill also revises the allocation schedule for these credits.

This legislation will impact businesses seeking New Markets tax credits in Illinois. Compliance officers should review the proposed changes to understand the new credit cap and the implications of affiliate transfers. The bill is currently in the draft stage, having been referred to the House Rules Committee, and further action will determine its final form and effective date. Entities should monitor its progress through the legislative process.

What to do next

Monitor progress of HB4636 through the Illinois legislative process
Review the New Markets Development Program Act for potential amendments related to credit caps and affiliate transfers

Source document (simplified)

IL HB4636 | 2025-2026 | 104th General Assembly

Illinois House Bill 4636

IL State Legislature page for HB4636
- Summary
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Status

Sponsorship: Bipartisan Bill
Status: Introduced on January 27 2026 - 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 New Markets Development Program Act. Provides that a credit under the Act may be transferred to an affiliate. Provides that the cap on credits is $37,000,000 for fiscal years beginning on or after July 1, 2029. Makes changes concerning the allocation schedule. Effective immediately.
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Title

NEW MARKETS-CREDITS

History

| Date | Chamber | Action |
| --- | --- | --- |
| 2026-03-27 | House | Rule 19(a) / Re-referred to Rules Committee |
| 2026-03-19 | House | Added Co-Sponsor Rep. Travis Weaver |
| 2026-02-26 | House | To Tax Credit and Incentives Subcommittee |
| 2026-02-11 | House | Assigned to Revenue & Finance Committee |
| 2026-02-03 | House | Referred to Rules Committee |
| 2026-02-03 | House | First Reading |
| 2026-01-27 | House | Filed with the Clerk by Rep. Jay Hoffman |

Code Citations

| Chapter | Article | Section | Citation Type | Statute Text |
| --- | --- | --- | --- | --- |
| 20 | 663 | 15 | Amended Code | Citation Text |
| 20 | 663 | 20 | Amended Code | Citation Text |
| 20 | 663 | 25 | Amended Code | Citation Text |
| 20 | 663 | 50 | Amended Code | Citation Text |

Illinois State Sources

| Type | Source |
| --- | --- |
| Summary | https://www.ilga.gov/Legislation/BillStatus?DocNum=4636&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| Text | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=206886&DocName=10400HB4636&DocNum=4636&DocTypeID=HB&LegID=165539&GAID=18&SessionID=114&SpecSess=&Session= |

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