Illinois veterans and persons with disabilities may be eligible for tax relief through the property tax homestead exemptions and mobile home exemptions. Applicants must file a Form PTAX-341, Application for Returning Veterans' Homestead Exemption, with the Chief County Assessment Office.Disabled veterans may have some or all of their property taxes covered. This is called a Standard Homestead Exemption for Veterans with Disabilities (SHEVD). Fill out a paper VA form. Print and fill out an Application for Disability Compensation and Related Compensation Benefits, VA Form. A statebystate guide to VA property tax exemptions, deductions and credits available to former service members with VA disability ratings. If you receive certain benefits or compensation from the Department of Veterans Affairs, you may exclude them from your taxable income. In Illinois, disabled veterans can get property tax breaks, sometimes paying no property taxes, based on their disability status, not their income status. Disabled Veteran's Exemption (Specially Adapted Housing).