State Senators Seth Lewis (R-Bartlett), Craig Wilcox (R-McHenry), and Dave Syverson (R-Cherry Valley) unveiled a four-bill legislative package today aimed at supporting small businesses, providing relief to workers, and improving Illinois’ economic competitiveness.

The proposal comes as Illinois continues to face ongoing economic challenges, including a projected half-a-million population loss over the next five years, stagnant job growth, and increasing costs for employers and families. The lawmakers said their plan is designed to address those concerns by rewarding long-term business investment in Illinois, eliminating state income taxes on tipped wages, providing relief to small retailers, and making health insurance more affordable for individuals and small business owners.

“Illinois is losing people, losing businesses, and falling behind,” said Lewis. “If we don’t change course, today’s challenges will only become more difficult tomorrow. We need to make Illinois a place people want to live, rather than leave.”

Lewis is sponsoring Senate Bill 3786, which creates a Legacy Tax Credit for businesses headquartered in Illinois. Under the proposal, businesses would receive a $100 tax credit for every year they have been located in the state, along with additional credits tied to the number of employees they retain, including an added incentive for union workers.

“The businesses already here are some of our greatest assets, yet they are often taken for granted. We need to change the narrative,” Lewis said. “This legislation tells employers that we see their commitment and appreciate it. It tells workers that their job matters and we want them to stay in Illinois, and perhaps most importantly, it tells the next generation that they do not have to leave to succeed. They can build their future right here in Illinois.”

Wilcox is sponsoring two measures focused on both workers and small businesses. Senate Bill 3792 would eliminate Illinois income tax on tips, while Senate Bill 137 would increase the retailer’s discount to 3.5 percent for businesses with less than $50,000 in monthly sales.

“Simply put, if you earn it, you should keep it,” Wilcox said. “For many service workers, tips are a significant portion of their income. Letting them keep more of what they earn helps families manage expenses and strengthens local economies.”

Wilcox said the policy would also benefit employers by improving retention and reducing turnover. “When employees take home more of their earnings, it leads to greater job satisfaction and more stability for small businesses,” he said.

On the retailer discount proposal, Wilcox noted that small businesses are already responsible for collecting and remitting sales taxes to the state.

“This is a practical, common-sense change,” Wilcox said. “It helps small businesses keep more of their own money to reinvest, grow, and remain competitive.”

Syverson’s legislation, Senate Bill 2763, focuses on reducing the cost of health insurance for individuals and small business owners who purchase coverage on their own. The bill would allow taxpayers to deduct premiums and qualified out-of-pocket medical expenses on their state taxes.

While government and large employers offer health insurance, only about 30% of small businesses are able to provide health benefits to employees.

“Right now, individuals and employees of small businesses buying their own insurance are paying the same, or often higher, costs without receiving the same tax benefits,” Syverson said. “That’s simply not fair.”

He said the proposal would bring greater fairness to the tax code while helping ease a major financial burden.

“When we reduce these costs, we give small businesses and families more room to grow and succeed,” Syverson said. “This is about making Illinois a place where people can afford to stay and build their future.”

The senators said the legislative package reflects a broader effort to strengthen Illinois’ economy and improve its reputation among employers.

View the Press Conference: https://www.youtube.com/watch?v=i7VGYffTpUQ