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
Digital Ads
HB 4894 & SB 3019
Overview: Digital ads are one of the most cost-effective ways for small businesses to reach customers and grow. Taxes raise small businesses’ costs, limit their reach, and make it harder to compete all while they’re already dealing with enormous economic uncertainty.
Status: Illinois lawmakers considered HB 4894 during the 2025-2026 session, which would have created a 10% tax on digital advertising services. It didn’t advance, but its core proposal was incorporated into the state’s FY2027 budget through SB 3019. Governor JB Pritzker signed SB 3019 into law on June 16, 2026, establishing a new 10% tax on targeted advertising services beginning January 1, 2027.
Key Officials
Stay Informed
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