Bill > SB2263

This bill amends the Illinois Income Tax Act to create a new child care tax credit for qualified individual taxpayers beginning in 2025. The credit will be equal to 25% of the federal child tax credit for each qualifying child, which is defined as a child 13 years old or younger who can be claimed as a dependent on the taxpayer's federal income tax return. The credit is available to taxpayers whose federal adjusted gross income is at or below a specific threshold amount defined in the federal tax code. If the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded to the taxpayer. Importantly, this refunded credit will not be counted as income or resources when determining eligibility for means-tested government benefit programs, unless federal law requires otherwise. For non-resident or part-year Illinois residents, the credit will be proportional to their income attributable to the state. This provision aims to provide financial relief to families with young children by reducing their state tax burden and potentially providing additional financial support through the refundable credit.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2263&GAID=18&DocTypeID=SB&SessionID=114&GA=104