Megaproject Legislation Clears the House
House Floor Amendment (HFA) 3 to HB 910 (Buckner) was filed on April 22, creating a new version of the megaproject incentive program that the Chicago Bears have requested to facilitate the construction of a potential new stadium in Arlington Heights. Beyond the Bears’ new stadium, the megaproject incentive legislation could benefit other large-scale investments in Illinois by allowing businesses and local municipalities to negotiate property tax payments on qualifying projects.
The bill establishes a Payment in Lieu of Taxes (PILOT) incentive and project assessment freeze to provide a qualifying megaproject with long-term property tax certainty. The eligibility qualifications include an investment of at least $100M in eligible costs and the awarding of at least 20% of project-related contracts to minority-owned businesses. Investments from $100M to $500M qualify for a 25- to 30-year freeze, with a five-year environmental remediation buffer; investments from $500M to $1B qualify for a 30-year freeze; and investments of $1B or more qualify for a 40- to 45-year freeze, with environmental remediation provisions. One key change from earlier versions of the megaproject legislation is that HFA 3 reserves 50% of PILOT revenues and allocates that portion as follows: 60% directly to the local municipality to provide tax relief to residents in the megaproject area, and 40% to the Illinois Property Tax Relief Fund to provide direct rebates to taxpayers. The remaining 50% of the special payment revenue is distributed to municipalities for allocation to affected taxing districts. Earlier versions of the bill did not designate tax relief allocations.
Data centers are excluded from the incentive program, and the bill establishes ethical requirements for local government negotiations with potential projects. The legislation also expands the state’s Sales Tax and Revenue (STAR) bond program to include megaprojects. To qualify as a STAR bond district, megaprojects must have at least $30M in projected capital investment, be reasonably projected to create more than 300 jobs, and generate $60M in annual gross sales.
The bill creates New Opportunity for Vacation and Adventure (NOVA) districts and special urban district designations. To qualify, these projects must include at least 500 contiguous acres, produce at least $500M in capital investment, generate at least $300M in average annual gross sales, attract an average of one million annual visitors, and create an average of 1,500 annual jobs. The NOVA urban districts are designed for dense urban environments where land and infrastructure costs are high.
Finally, the legislation creates the Railroad Rehabilitation and Economic Development for Yards (RREDY) Program, designed for blighted or underused railyards, railroad tracks, train maintenance facilities, and storage facilities. The program is limited to the City of Chicago and must be supported by an independent third-party feasibility analysis demonstrating that it creates a unique economic development opportunity and has the potential to generate at least $40B in aggregate tax revenue over 40 years. The project must also show that it can increase average daily boardings by 10,000, with at least 75% of project costs dedicated to infrastructure improvement.
HFA 3 to HB 910 merged the megaproject language with provisions from Sen. Doris Turner’s (D-Springfield) SB 3499. That legislation establishes the Capitol Area Tourism Authority, designed to support tourism, hospitality, business, commerce, and development in central Springfield. It creates a capital city jobs tax credit and allows the Authority to establish a STAR bond district and issue STAR bonds, among other provisions aimed at spurring downtown Springfield development.
On April 22, HB 910 passed the House Revenue and Finance Committee by a vote of 15-5-0 before advancing to the House floor, where it passed later in the day on a bipartisan roll call vote of 78-32-0. The bill now heads to the Senate for further consideration before the end of session. The current bill language appears likely to be reworked in the coming weeks based on ongoing stakeholder negotiations.
Millionaire Surcharge Proposal Considered by the House
The Illinois General Assembly is considering proposals to establish a “millionaire surcharge” by creating a constitutional amendment to institute an additional 3% state income tax on any resident’s income over $1M in a taxable year. The Illinois Constitution stipulates that “a tax on or measured by income shall be at a non-graduated rate” — a flat income tax rate — which is why an amendment is required to enact this proposal. The two proposals from Rep. La Shawn Ford (D-Chicago) are HJRCA 21 and HJRCA 26. Notably, House Speaker Chris Welch (D-Hillside) and House Speaker Pro Tempore Kam Buckner (D-Chicago) are both co-sponsors of HJRCA 21. Gov. JB Pritzker has also expressed support for the surcharge proposal but has indicated he will allow the General Assembly to act before involving himself more directly. While the Senate has not introduced a companion measure in 2026, the idea of a constitutional amendment to change the state’s income tax structure has been raised every year since the failure of the “fair tax” referendum on the 2020 election ballot.
Currently, Illinois has a flat personal income tax rate of 4.95%. While the state can and has historically updated its flat income tax rate, a graduated structure is constitutionally prohibited. In order to amend the Constitution, the proposal would have to receive a 60% supermajority vote in both the House (71 votes) and Senate (36 votes) and then receive support from the voters in a referendum. The referendum would need to receive the support of 60% of those voting on the question or a simple majority of all voters in the election.
The millionaire surcharge would generate significant additional revenue for the state, which supporters argue is needed more now than ever to offset impending federal cuts to Medicaid, SNAP, and threats to cut funding for other programs, many of which have been held up in court. Analysis from the left-leaning Illinois Economic Policy Institute found that the 3% tax on incomes over $1M would affect approximately 32,000 residents and generate an additional $1.86B in FY 2027, $3.82B in FY 2028, $4.02B in FY 2029, and $4.24B in FY 2030, without accounting for potential loss of income tax revenue from millionaires who may choose to leave the state following the tax increase. The debate among supporters of the surcharge centers on how to most effectively use the additional revenues. HJRCA 21 would divide revenue between property tax relief and education funding, while HJRCA 26 would dedicate the new funds solely to property tax relief.
Opposition to the proposal, largely from the business community, argues that the tax increase could drive many of Illinois’ largest individual taxpayers to leave the state for lower-tax locations. Many business tax revenues flow through the state’s personal income tax, so the surcharge could end up affecting over 22,000 businesses, many of which are small businesses, across the state. Opponents have additionally noted that over time, the $1M taxable income cutoff may become outdated due to inflation and changing economic conditions. If $1M in annual income no longer carries the same value it does today, the surcharge would generate additional revenue for the state at the expense of potentially middle-income earners.
It has now been six years since the “Fair Tax” constitutional amendment referendum failed in the 2020 election by a vote of 46.7% to 53.3%. Proponents of the Fair Tax have drawn a few key lessons from that experience. Most notably, they simplified the current proposal to affect only “millionaires” rather than pursuing a broad redetermination of the state income tax structure. Additionally, avoiding use of the word “tax” could make it more challenging for opponents to frame the proposal as a broad-based tax increase, as they successfully did with the Fair Tax.
After extensive debate, the House Revenue and Finance Committee passed HJRCA 21 on April 21 by a vote of 13-7-0. The constitutional amendment proposal did not receive consideration on the House floor before the House adjourned until May 5. Even if it passes the House, the Senate has not indicated whether it will take up the proposal before the end of session.
Important Upcoming Dates – Statewide
May 8 – Opposite Chamber Committee Deadline
May 22 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment
November 3 – Illinois General Election
In the News
Millionaire tax amendment fails to gain enough support from House Democrats – Capitol News Illinois, April 23, 2026
A “millionaire tax” proposal floated in the Illinois House failed to gain enough traction in Springfield this week, making it increasingly unlikely that voters will be asked to approve the measure in November.
Illinois bill would stop publishers from charging libraries more than public for e-books and audiobooks – Chicago Tribune, April 23, 2026
Public libraries offer readers the chance to enter into worlds of horror through classics such as Mary Shelley’s “Frankenstein” or Bram Stoker’s “Dracula.” But Illinois librarians say a real horror story haunts them: e-book and audiobook licensing.
House approves redistricting amendment, fearing federal Voting Rights Act will be eliminated – Capitol News Illinois, April 22, 2026
Illinois voters could be asked to amend the state’s redistricting law this fall after the House approved a constitutional amendment fearing federal protections for minority representation will be struck down.
Illinois House Speaker Welch cites due process and victims’ rights for his silence over embattled lawmaker – Chicago Tribune, April 22, 2026
Illinois House Speaker Emanuel “Chris” Welch reluctantly broke his silence Wednesday on his decision to strip a Democratic lawmaker of key caucus duties two months ago, acknowledging for the first time that the rights of “victims” were involved, while declining to discuss specifics.
Constitutional amendment adding an extra 3 percent tax on income over $1 million clears Illinois House committee – The Daily Line, April 22, 2026
A constitutional amendment creating a “millionaire surcharge” advanced out of an Illinois House committee Tuesday evening.
Illinois House committee approves amendment enshrining ‘influence districts’ in Illinois Constitution – The Daily Line, April 22, 2026
The House Executive Committee approved a constitutional amendment Tuesday that would change the parameters by which Illinois’ state legislative districts are drawn, making racial makeup a factor lawmakers consider when drawing the maps.
Illinois ‘millionaire’s tax’ proposal faces political barriers and a tight deadline – Crain’s Chicago Business, April 21, 2026
Illinois lawmakers are considering a new “millionaire’s tax” that could generate billions in new revenue. But the measure, which would have to go before voters in this November’s ballot, faces a tight deadline and political hurdles that sank the “fair tax” proposal in 2020.
Hernandez reelected chair of the Democratic Party of Illinois – Capitol News Illinois, April 20, 2026
Facing no opposition, state Rep. Lisa Hernandez, D-Cicero, was reelected by the 36-member Illinois Democratic State Central Committee to another four-year term as chairperson of the Democratic Party of Illinois.
Bailey campaign unfazed by $14 million funding gap with Pritzker – Daily Herald, April 20, 2026
Newly filed records show a cash chasm between Republican gubernatorial nominee Darren Bailey and incumbent Democratic Gov. JB Pritzker leading into the Nov. 3 election.
IL businesses eligible for $8B in tariff refunds; Pritzker wants more for families – The Center Square, April 20, 2026
Two months after the U.S. Supreme Court struck down some of President Donald Trump’s tariffs, roughly $8 billion in collected duties, plus interest, could be returned to the Illinois businesses that paid them.
Illinois Republican gubernatorial candidate Darren Bailey seeks distance from Trump, but MAGA shadow looms – Chicago Tribune, April 19, 2026
After Darren Bailey last month won the Illinois Republican Party nomination for governor, he quickly tried to separate himself from President Donald Trump, declaring, “I am my own person” and that “there will be no outside influence dictating anything that we do here in Illinois.”
‘ComEd Four’: The case that once rocked Illinois politics now on shaky ground – Chicago Tribune, April 18, 2026
Three years ago, the “ComEd Four” trial alleging a massive conspiracy to bribe then-House Speaker Michael Madigan was headed toward a stunning guilty-on-all-counts conclusion, cementing its place as a pillar in the state’s long, sordid history of corruption cases.
IL House passes plan creating IDOC end-of-life peer support program – Wand News, April 17, 2026
The Illinois House passed a bill this week to create an end-of-life care peer support program within the Illinois Department of Corrections.
Barbara Flynn Currie, Illinois’ first female House majority leader and a progressive champion, dies at 85 – Chicago Tribune, April 17, 2026
As a policymaker, Democratic state Rep. Barbara Flynn Currie was a champion for progressive causes, from pushing for the legalization of same-sex marriage in Illinois to her focus on myriad issues affecting low-income people, while representing a swath of Chicago’s South Side for 40 years in the General Assembly.
School cell phone ban, human composting bills among hundreds advancing in Springfield – Capitol News Illinois, April 17, 2026
The Illinois House and Senate approved hundreds of bills this week ahead of a Friday deadline, including a plan proposed by Gov. JB Pritzker to limit cell phones in schools.
Illinois lawmakers seek to eliminate state diversity commission – The Center Square, April 17, 2026
An Illinois state commission has failed its mission to aid businesses owned by racial minorities, women and people with disabilities and should therefore be disbanded, according to a group of Republican lawmakers who comprise the Illinois Freedom Caucus.
Illinois bill targets rules on clearing homeless camps – 25 News Now, April 17, 2026
Illinois lawmakers are advancing a bill that would limit when local governments can clear homeless encampments from parks and other public property.
Council still considering temporary pause in tipped wage abolition measure – The Daily Line, April 24, 2026
Despite the City Council’s failure to override Mayor Brandon Johnson’s veto of a measure that would halt the One Fair Wage Ordinance, the council is still pondering a temporary freeze in the five-year escalator that will close the gap between the tipped and minimum wage.
Chicago area air quality among worst in U.S., report finds – Chicago Sun-Times, April 22, 2026
More than 2 million kids in Illinois are breathing unhealthy levels of air pollution, according to new report issued on Wednesday by the American Lung Association to mark Earth Day.
Big grocery chains are expanding in Chicago. Here’s what’s driving the latest wave. – Crain’s Chicago Business, April 23, 2026
Chicago is seeing a fresh wave of leasing activity in the grocery sector as consumers step up spending and a failed megamerger between the parent companies of Mariano’s and Jewel-Osco makes way for competitors to gain market share.
Fugitive Chicago medical exec returns from Dubai to face Loretto Hospital fraud charges – Chicago Tribune, April 22, 2026
A former Chicago medical supply company owner who fled to Dubai shortly before being indicted in a massive scheme to defraud Loretto Hospital has returned to the U.S. to face the charges.
Momentum in the great O’Hare gate battle swings back to American – Crain’s Chicago Business, April 22, 2026
American Airlines is poised to win back three gates that it lost at O’Hare International Airport, while rival United Airlines is expected to give up three gates in the latest round of reshuffling space at the airport.
Knudsen proposes ordinance to more easily allow houses of worship to rent unused parking lot space – The Daily Line, April 22, 2026
A Lincoln Park alderman last week introduced an ordinance that would give religious assemblies, like churches and synagogues, permission to rent out their parking lot space during off-hours when there aren’t services and the lots sit empty.
CTA lays off unarmed guards, redirects funds to police and other resources amid security concerns – ABC 7 Chicago, April 21, 2026
The CTA is laying off unarmed private security guards. About a month ago, the transit agency unveiled a new security plan that includes more police patrols.
GOP governor candidate Darren Bailey tries to walk back calling Chicago a ‘hellhole’ – NBC Chicago, April 19, 2026
Illinois Republican gubernatorial candidate Darren Bailey tried on Sunday to walk back his past negative comments about Chicago, a city he has repeatedly called a “hellhole.”
A 69-hour workday? City of Chicago paid head-scratching legal bills. – Chicago Tribune, April 19, 2026
For one attorney’s work over a 24-hour stretch, a law firm billed the city of Chicago for 69 hours.
