b'2025 END OF SESSIONTAXThe 2025 spring legislative session was an important one for tax changes in Illinois. Many revenue sources were considered including sales tax, income tax, property tax, and more. Several significant conversations were held on major taxation issues such as the expansion of the sales tax to services which did not receive a vote but certainly received much attention from both the media and from those in the Capitol. Ultimately, the end of session resulted in significant corporate tax changes that will likely have continued reverberations in Illinois economy for the years to come by continuing the General Assemblys tradition of identifying so-called tax loopholes to balance the budget. Should Congress act on many of the provisions of the Tax Cuts and Jobs Act (TCJA) set to expire at the end of this year or make other changes to our federal tax code, Illinois may continue to respond accordingly. Below is an overview of the major highlights that the Illinois Chamber was monitoring for Tax Institute mem-bers. 2025 Spring Session - Tax and Budget OverviewIn February, the Governors introduced budget provided that the State would be generating $55.453 billion in revenue next fiscal year (FY26). Accounting for expenditures, and the nearly $492 million in revenue adjust-ments that the Governor proposed (which included a tax amnesty program, pausing the transition of sales tax on Motor Fuel to the GRF, and modifications to gaming/cannabis taxes), the Governors Office was projecting a $218 million surplus. At the time of the Governors State of the State and budget presentation, the Illinois Chamber was encouraged by the Governors measured budget proposal that included no new taxes. The Chambers statement regarding the February Introduced Budget can be found here. Later in legislative session, both the Governors Office of Management and Budget (GOMB) and the Commis-sion on Government Forecasting and Accountability (COGFA) issued revised revenue estimates that were more pessimistic than first reported in February. Most of the downward revisions were attributed to sluggish employment, wages and salary growth, as well a generally pessimistic economic outlook. Under the final appropriations bill which passed on the scheduled May 31 stadjournment day, the General As-sembly approved a $55.1 billion spending plan and a revenue package totaling $55.4 billion. By many accounts, the final budget package largely resembles a status-quo or maintenance budget that does not address many looming budget pressures. Those issues range from possible Congressional tax and budget changes that may impact Illinois federal grant funding to solving the $771 million-to-$1.5 billion in mass transit funding de-mands.Below is an overview of several FY26 budget package items.FY26 Budget LegislationSB 2510 (Welch/Harmon) contained the FY26 budget that will be effective July 1, 2025. The FY26 Budget contains many of the initially announced investments that the Governor presented in his budget proposal back in Febru-ary, including the following: $500 million in funding for the Shovel, Site Readiness Program to help the State offload surplus prop-erty to attract new investment in Illinois. $307 million in additional EBF Funding for our K-12 Schools. $771.6 million in MAP and AIM HIGH higher education funding.$75 million in additional reserves to be utilized by the Administration to address the Tier 2 pension safe harbor issue in the future.21|END OF SESSION REPORT'