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| 1 | AN ACT concerning revenue. | |||||||||||||||||||
| 2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
| 3 | represented in the General Assembly: | |||||||||||||||||||
| 4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
| 5 | changing Section 244 as follows: | |||||||||||||||||||
| 6 | (35 ILCS 5/244) | |||||||||||||||||||
| 7 | Sec. 244. Child tax credit. | |||||||||||||||||||
| 8 | (a) For the taxable years beginning on or after January 1, | |||||||||||||||||||
| 9 | 2024, each individual taxpayer who has at least one qualifying | |||||||||||||||||||
| 10 | child who is younger than 12 years of age as of the last day of | |||||||||||||||||||
| 11 | the taxable year is entitled to a credit against the tax | |||||||||||||||||||
| 12 | imposed by subsections (a) and (b) of Section 201. For tax | |||||||||||||||||||
| 13 | years beginning on or after January 1, 2024 and before January | |||||||||||||||||||
| 14 | 1, 2025, the credit shall be equal to 20% of the credit allowed | |||||||||||||||||||
| 15 | to the taxpayer under Section 212 of this Act for that taxable | |||||||||||||||||||
| 16 | year. For tax years beginning on or after January 1, 2025, the | |||||||||||||||||||
| 17 | credit shall be calculated as follows: amount of the credit | |||||||||||||||||||
| 18 | shall be equal to 40% of the credit allowed to the taxpayer | |||||||||||||||||||
| 19 | under Section 212 of this Act for that taxable year. | |||||||||||||||||||
| 20 | (1) For taxpayers whose adjusted gross income is at or | |||||||||||||||||||
| 21 | below the income threshold to qualify for the maximum | |||||||||||||||||||
| 22 | federal earned income tax credit under Section 32 of the | |||||||||||||||||||
| 23 | Internal Revenue Code, the credit shall equal 40% of the | |||||||||||||||||||
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| 1 | maximum value of the credit allowed under Section 212 of | ||||||
| 2 | this Act based on the number of qualifying dependents as | ||||||
| 3 | defined by Section 152 of the Internal Revenue Code. | ||||||
| 4 | (2) For taxpayers whose adjusted gross income exceeds | ||||||
| 5 | the federal income threshold to qualify for the maximum | ||||||
| 6 | federal earned income tax credit but qualify for at least | ||||||
| 7 | $1 of the credit available under Section 212 of this Act, | ||||||
| 8 | the credit shall equal 40% of the credit allowed under | ||||||
| 9 | Section 212 of this Act based on the number of qualifying | ||||||
| 10 | dependents as defined by Internal Revenue Code Section 152 | ||||||
| 11 | of the Internal Revenue Code. | ||||||
| 12 | (3) For taxpayers who are eligible for the maximum | ||||||
| 13 | allowable credit under Section 212 of this Act, the credit | ||||||
| 14 | shall equal 40% of the credit allowed under Section 212 of | ||||||
| 15 | this Act. | ||||||
| 16 | (b) If the amount of the credit exceeds the income tax | ||||||
| 17 | liability for the applicable tax year, then the excess credit | ||||||
| 18 | shall be refunded to the taxpayer. The amount of the refund | ||||||
| 19 | under this Section shall not be included in the taxpayer's | ||||||
| 20 | income or resources for the purposes of determining | ||||||
| 21 | eligibility or benefit level in any means-tested benefit | ||||||
| 22 | program administered by a governmental entity unless required | ||||||
| 23 | by federal law. | ||||||
| 24 | (c) The Department may adopt rules to carry out the | ||||||
| 25 | provisions of this Section. | ||||||
| 26 | (d) As used in this Section, "qualifying child" has the | ||||||
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| 1 | meaning given to that term in Section 152 of the Internal | ||||||
| 2 | Revenue Code. | ||||||
| 3 | (e) This Section is exempt from the provisions of Section | ||||||
| 4 | 250. | ||||||
| 5 | (Source: P.A. 103-592, eff. 6-7-24; 104-417, eff. 8-15-25.) | ||||||
| 6 | Section 99. Effective date. This Act takes effect upon | ||||||
| 7 | becoming law. | ||||||