Illinois General Assembly - Full Text of SB2263

LRB104 10642 HLH 20719 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2263

Introduced 2/7/2025, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Creates a child care credit in an amount equal to 25% of the federal tax credit for each qualifying child. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Child care credit.

(a) For taxable years beginning on or after January 1, 2025, each qualified individual taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 25% of the federal tax credit allowed to the taxpayer for each qualifying child for the taxable year under Section 24 of the federal Internal Revenue Code.

For a non-resident or part-year resident, the amount of the credit under this Section shall be in proportion to the amount of income attributable to this State.

(b) If the amount of the credit exceeds the income tax liability for the applicable tax year, then the excess credit shall be refunded to the taxpayer. The amount of any refunded credit under this Section shall not be included in the taxpayer's income or resources for the purposes of determining eligibility or benefit level in any means-tested benefit program administered by a governmental entity, unless required by federal law.

(c) For purposes of this Section:

"Qualified individual taxpayer" means a taxpayer who may claim one or more qualifying children as dependents and whose federal adjusted gross income is less than or equal to the threshold amount, as defined in Section 24 of the Internal Revenue Code.

"Qualifying child" means a child who is 13 years of age or younger and who may be claimed as a dependent on the taxpayer's federal income tax return under the Internal Revenue Code.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.