summary
Introduced
02/07/2025
02/07/2025
In Committee
06/02/2025
06/02/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2025, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to enhance tax credits for corporate child care initiatives, effective for taxable years ending on or after December 31, 2025. The legislation increases the tax credit for corporate child care from 30% to 50% for start-up costs and from 5% to 20% for annual child care expenses. Companies can now receive tax credits for providing child care through on-site facilities, off-site facilities, or a combination of both. The bill also allows corporations to coordinate with independent child care facilities to provide care for employees' children, giving businesses more flexibility in how they support working parents. Importantly, if a company claims this new child care tax credit, they cannot simultaneously claim a separate dependent care assistance program tax credit for the same taxable year. The credit can be carried forward for up to five years if it exceeds the company's tax liability in a given year, providing long-term financial incentives for businesses to invest in child care support for their employees.
Committee Categories
Budget and Finance
Sponsors (9)
Darby Hills (R)*,
Chris Balkema (R),
Terri Bryant (R),
John Curran (R),
Dale Fowler (R),
Erica Harriss (R),
Seth Lewis (R),
Jil Tracy (R),
Sally Turner (R),
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 06/02/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2277&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB2277.htm |
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