October 31, 2025 State Capitol Report

Veto Session: Wrap-Up

It’s over! The whirlwind Veto Session has finally come to an end, closing out the first year of the 104th General Assembly. Over the past several days, the Illinois General Assembly considered and finalized several significant bills affecting housing, infrastructure, and energy policies directly impact real estate professionals statewide. Below are the highlights of the final week’s legislation.

Bills of Interest

The following “Bills of Interest” saw legislative action this week.

Following Illinois REALTORS®’ consumer and member awareness campaign, the General Assembly approved a $1.5 billion transit reform and funding package without including the proposed increase in real estate transfer taxes for Cook County and the collar counties.

Earlier versions of the proposal had considered new taxes on package deliveries, streaming services and event tickets, as well as taxes on entertainment and high-net-worth investments. These provisions were ultimately removed from the final legislation.

The measure now heads to the Governor’s desk, where it is expected to be signed into law. The two major funding resources will be:

  • $860 million redirected from sales tax revenue on motor fuel
  • Approximately $200 million from accrued interest in the Road Fund.

Gov. JB Pritzker played a key role in shaping some of the final elements in the bill, but Speaker Emanuel “Chris” Welch (D-Westchester), together with Transit Working Group Co-Chairs, Rep. Eva-Dina Delgado (D-Chicago) and Rep. Kam Buckner (D-Chicago), were instrumental in fighting to protect real estate transactions from further taxes. The Governor is expected to sign the new legislation soon and the new funding programs and additional taxes will go into effect on June 1, 2026.

After Illinois REALTORS® successfully stopped HB 3564 last May, the sponsor, Sen. Mike Simmons (D-Chicago), attempted to move the legislation again during the veto session. Sen. Simmons had failed to engage the REALTORS® over the summer and in the run up to this year’s veto session, but that did not stop him from trying to squeeze the bill through in the final days. As originally introduced, the bill sought to prohibit landlords from imposing move-in fees, processing fees, or undisclosed ancillary charges.

Illinois REALTORS® was asked by Senate leadership to negotiate with the sponsor, and we presented him with the same set of amendments that we had presented last spring. As the old saying goes, “A lack of planning on your part, does not constitute an emergency on mine.” Our lobby team was aware that time during this session was running short. We engaged in good faith negotiations with the sponsor, but we were under no obligation to artificially rush things.

Eventually, Sen. Simmons agreed to our amendments and the bill was passed by the Senate, but not until after 9 p.m. By the time it was sent to the House for concurrence, it was too late for that body to take further action, effectively stopping the bill in its tracks until the General Assembly reconvenes next year.

After nearly a year of negotiations among industry, labor, and environmental groups, the General Assembly passed the Energy Omnibus Bill, a sweeping update to Illinois’ clean energy framework.

The legislation expands the Climate and Equitable Jobs Act (CEJA) and promotes investment in renewable technologies including wind, solar, geothermal, and virtual power plants. The bill also introduces new rate structures to support energy storage and grid modernization, though it includes rate increases to fund these initiatives. According to the Illinois Power Agency, any cost increases should be fully offset by 2029.

Illinois REALTORS® and the Community Association Institute (CAI) successfully worked with the bill’s sponsors to include clarifying language protecting homeowner association authority over shared roofs. The amendment, stating that “Nothing contained in this Act shall supersede or otherwise modify the definitions and terms of the Homeowner Energy Policy Statement Act (HEPSA),” ensures that HEPSA’s shared roof definitions remain intact. The bill now moves to the Governor for expected signature.

At-A-Glance

The Second Session of the 104th General Assembly will convene on Tuesday, Jan. 13, 2026, and is scheduled to adjourn Sunday, May 31, 2026. We thank all members for your continued dedication to REALTOR® advocacy and look forward to ongoing collaboration and engagement throughout the final year of the 104th General Assembly and as always…Stay tuned.

By The Numbers: Recap of the number of bills in the first year of the 104th General Assembly:

Spring and Veto Session House and Senate Bills

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