103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2327
 
Introduced 2/14/2023, by Rep. Edgar Gonzalez, Jr.
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/234 new

     Amends the Illinois Income Tax Act. Creates a credit for taxpayers who have at least one eligible dependent and whose income does not exceed certain specified guidelines. Effective immediately.
  


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A BILL FOR
 

  
HB2327LRB103 27396 HLH 53768 b


  
1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by 
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Child care credit.
8    (a) For tax years beginning on or after January 1, 2024, 
9each qualified taxpayer may apply to the Department of Revenue 
10for a credit against the taxes imposed by subsections (a) and 
11(b) of Section 201. The amount of the credit shall be $1,500 
12for the first eligible dependent of the taxpayer, plus an 
13additional $500 for each additional eligible dependent, but 
14not to exceed $2,500 per taxpayer in any taxable year. The 
15aggregate amount of credits awarded by the Department of 
16Revenue may not exceed $100,000,000 in any taxable year. 
17Credits shall be awarded on a first-come, first-served basis. 
18    (b) In no event shall a credit under this Section reduce 
19the taxpayer's liability to less than zero. If the amount of 
20the credit exceeds the tax liability for the year, the excess 
21may be carried forward and applied to the tax liability of the 
225 taxable years following the excess credit year. The tax 
23credit shall be applied to the earliest year for which there is 
 
 
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1a tax liability. If there are credits for more than one year 
2that are available to offset a liability, the earlier credit 
3shall be applied first. 
4    (c) As used in this Section: 
5    "Eligible dependent" means an individual who is under 17 
6years of age during the taxable year and is claimed by the 
7taxpayer as a dependent for federal income tax purposes for 
8that taxable year. 
9    "Qualified taxpayer" means a taxpayer with at least one 
10eligible dependent whose federal adjusted gross income does 
11not exceed: (1) $75,000 for spouses filing a joint return or 
12(2) $45,000 for all other taxpayers. 
13    (d) This Section is exempt from the provisions of Section 
14250. 
 
 
15    Section 99. Effective date. This Act takes effect upon 
16becoming law.