Bill > SB3420

This bill amends the Illinois Income Tax Act to enhance tax credits for businesses that provide child care for their employees. Specifically, it increases the credit for corporate taxpayers' annual costs in providing child care facilities from 5% to 10% for taxable years ending after December 31, 2025, while maintaining the 30% credit for start-up costs. Additionally, it introduces a new income tax credit for qualified small businesses, allowing them to claim 10% of the federal tax credit they receive for qualified child care expenditures, starting with taxable years beginning on or after January 1, 2026. Qualified child care expenditures are defined broadly to include costs related to acquiring, constructing, rehabilitating, or expanding child care facilities, as well as operating costs and payments made under contracts with child care providers. The bill also clarifies that businesses cannot claim both the state and federal credits for the same expenditure, and any excess credit can be carried forward for up to five years. This legislation is intended to incentivize businesses to invest in child care solutions for their workforce.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=3420&GAID=18&DocTypeID=SB&SessionID=114&GA=104