SB2717 103RD GENERAL ASSEMBLY

LRB103 36971 HLH 67085 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2717

Introduced 1/10/2024, by Sen. Sue Rezin

SYNOPSIS AS INTRODUCED:

35 ILCS 5/242 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are the custodians of one or more children who attend an eligible preschool program in the State during the taxable year. Provides that the amount of the credit shall be 100% of the eligible expenses incurred by the taxpayer during the taxable year in sending the child to the eligible preschool program, but not to exceed $1,500 per 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 242 as follows:

(35 ILCS 5/242 new)

Sec. 242. Early childhood education credit.

(a) For taxable years beginning on or after January 1, 2025, a taxpayer who is the custodian of one or more children who attend an eligible preschool program in the State during the taxable year shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 100% of the eligible expenses incurred by the taxpayer during the taxable year in sending the child to the eligible preschool program, but not to exceed $1,500 per child in any taxable year.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be refunded to the taxpayer.

(c) As used in this Section:

"Custodian" means an Illinois resident who is the parent or legal guardian of a child who is 3 to 5 years of age during the taxable year.

"Eligible expenses" means tuition, fees, and necessary school supplies associated with attendance at an eligible preschool, but does not include any expenses for which the taxpayer claims a deduction against the taxpayer's federal income taxes for the same taxable year.

"Eligible preschool" means a preschool educational program for children ages 3 to 5 that is operated by a public school district or other entity that is eligible to conduct a preschool educational program and that employs at least one teacher who holds a Professional Educator License with an early childhood education endorsement.

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

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