Illinois
Illinois is home to 1.4 million small businesses, which employ 44% of the state’s workforce. It is crucial for Illinois lawmakers to keep small businesses in mind when they craft legislation that could impact the way small businesses use free and low-cost digital tools and technologies.
Key Policy Issues
Data Privacy
The Illinois Privacy Rights Act (IL State HB3041)
Overview: Four in five Illinois small businesses credited personalized digital ads for powering 2023 revenue growth. However, HB3041 would regulate the leading digital platforms that provide small businesses in Illinois with access to affordable and effective digital tools, such as digital ads. Overregulating data collection would make it harder for small businesses to reach customers and compete with larger companies.
Status: HB3041 was filed by Rep. Rashid on February 6, 2025 and re-referred to the House Rules Committee on March 21, 2025. This bill did not advance this session, but the issue could resurface when the legislature reconvenes.
Digital Ads
Overview: Illinois lawmakers want to create a new tax on digital ads — and small businesses would pay the price.
Digital ads are one of the most cost-effective ways for small businesses to reach customers and grow. A new tax would raise small businesses’ costs, limit their reach, and make it harder to compete — all while they’re already dealing with enormous economic uncertainty.
Status: The digital ads tax did not advance this session. However, the issue could resurface when the legislature reconvenes in January 2026.
Delivery Tax
Overview: Illinois lawmakers are considering a new retail delivery tax, which could add up to $1.50 to the cost of every retail order delivered to customers. The new tax would burden small businesses already struggling with inflation, supply chain disruptions, and economic uncertainty.
The Problem: Delivery taxes mean more red tape, new compliance headaches, and higher operating costs for small businesses — especially those that primarily sell online. A new Illinois delivery tax would force small businesses to either absorb the added expense, paring down already-thin margins, or pass it on to customers, risking reduced sales.
The Impact: For small businesses, the new tax would hinder growth and make it harder to compete with larger companies. For consumers who rely on affordable delivery services — particularly seniors, people with mobility challenges, and families juggling multiple jobs — a $1.50 tax on every delivery purchase would make it harder to access the goods they need.
Send a message to your legislators urging them to oppose a new delivery tax.
Status: Illinois lawmakers are currently considering the delivery tax proposal. Before the proposal advances, it’s critical that small business leaders speak up and tell lawmakers about the tax’s likely harmful impacts.
