The Illinois Chamber of Commerce recently released a Statehouse Update Newsletter summarizing the first week of the fall veto session in Springfield. While the week was relatively quiet, several legislative topics of importance to Illinois businesses took shape across energy, taxation, transportation, and labor policy.
Session Overview
Both chambers reconvened last week to begin the veto session. The House met for all three scheduled days, while the Senate concluded business early. Floor action was limited, with most time spent in caucus meetings or on resolutions.
One notable change in leadership: Margaret A. DeLaRosa was appointed to the 42nd House District, replacing Representative Terra Costa Howard, who was named a Circuit Judge in DuPage County.
Both the House and Senate will return to Springfield October 28–30 for the second week of the veto session.
Energy Omnibus Negotiations
Discussions continued on a broad Energy Omnibus bill that’s been in development since spring. The bill could address topics including:
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Battery energy storage
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Geothermal development
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Transmission improvements
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Energy efficiency and procurement standards
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Data center regulations
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Resource adequacy and planning
The Chamber reiterated support for an “all-of-the-above” approach to energy and urged lawmakers to keep affordability central to any final package. Negotiations continue among labor, environmental, and industry stakeholders.
Revenue and Tax Developments
Although no major tax bills advanced during the first week, the Chamber expects revenue legislation to become a focus next week. Several items are under discussion:
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GILTI Reform: Following federal changes, the Governor’s Office may propose adjustments to Illinois’s treatment of global intangible low-taxed income—something the Chamber continues to oppose.
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Decoupling from Federal Law: Illinois may “decouple” from certain provisions of federal corporate tax relief, including bonus depreciation and small-business expensing rules.
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Mega Project Incentives: Lawmakers are exploring a new incentive model for large-scale investments of $100 million or more, with job creation and local agreements as eligibility requirements.
The Chamber is also advocating for an extension of the pass-through entity SALT workaround and monitoring Cook County property tax discussions.
City of Chicago FY26 Budget Proposal
Chicago Mayor Brandon Johnson presented his FY26 budget, proposing a series of new and increased taxes:
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$21 per-employee monthly head tax for large employers
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A $0.50 social media tax per user
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A cloud tax increase from 11% to 14%
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A 10.25% online sports wagering tax
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New taxes on hemp products, boat mooring, and rideshare services
The Illinois Chamber expressed concern about these measures, warning they could burden employers and discourage business growth within the city.
Mass Transit Funding and Reform
The House Executive Committee held its first formal hearing on mass transit funding since spring. The RTA and CMAP testified on the region’s financial challenges, noting that the transit “fiscal cliff” for 2026 has been reduced to about $200 million, though projections show it rising again by 2027.
Lawmakers expressed frustration over communication and funding transparency, emphasizing the need for structural reforms to accompany any new funding.
Employment and Labor Policy
HB 507 (Williams, A) advanced through committee to correct a clerical error in previously passed legislation. The bill clarifies that employers may be liable for compensatory—not consequential—damages in certain confidentiality agreement disputes.
Healthcare Policy
Two trailer bills aimed at refining pharmacy benefit manager (PBM) regulations were under discussion but not yet filed. The Chamber continues to monitor these developments closely, particularly regarding ERISA plan clarification.
Additional Chamber Advocacy
The Illinois Chamber joined a U.S. Chamber coalition letter to Congress defending arbitration agreements as an effective dispute-resolution tool. The Chamber argues that arbitration remains a fair, efficient, and accessible alternative to costly class-action litigation.
Recent Environmental Rulemaking
The Pollution Control Board adopted updates to coal combustion residual storage regulations, requiring enhanced site mapping, monitoring, and closure plans for CCR surface impoundments. Operators of CCR facilities will be affected by the new requirements.
The Illinois Chamber continues to advocate on behalf of Illinois’ business community across energy, tax, transportation, and labor issues.
Source: Illinois Chamber of Commerce, “Statehouse Update Newsletter,” October 21, 2025.
Learn more at the Illinois Chamber of Commerce.