SB2718 103RD GENERAL ASSEMBLY

LRB103 36970 HLH 67084 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2718

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

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are employed as an early childhood teacher or an early childhood assistant during the taxable year and who have a federal adjusted gross income for the taxable year of $75,000 or less. Provides that, for taxable years beginning on January 1, 2025 and beginning before January 1, 2026, the amount of the credit is $1,000. Provides that, for subsequent taxable years, the credit amount shall be adjusted by the percentage increase, if any, in the Consumer Price Index for the preceding calendar year.

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 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Early Childhood Educator Tax Credit.

(a) As used in this Act:

"Consumer Price Index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84=100.

"Early childhood assistant" means a person who is employed by and working in a child care center as an early childhood assistant and who meets the qualifications to be an early childhood assistant set forth in 89 Ill. Adm. Code 407.150.

"Early childhood educator credit amount" means:

(1) for taxable years beginning on January 1, 2025 and beginning before January 1, 2026, $1,000; and

(2) for taxable years beginning on or after January 1, 2025, the early childhood educator credit amount for the immediately preceding calendar year, multiplied by one plus the percentage increase, if any, in the Consumer Price Index-u for the 12-month period ending in September of the calendar year immediately preceding the first day of the taxable year for which the early childhood educator credit amount is calculated.

"Early childhood teacher" means a person who is employed by and working in a child care center as a teacher and who meets the qualifications to be an early childhood teacher set forth in 89 Ill. Adm. Code 407.140.

(b) For taxable years beginning on or after January 1, 2025, a taxpayer who is employed as an early childhood teacher or an early childhood assistant during the taxable year and who has a federal adjusted gross income for the taxable year of $75,000 or less shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the early childhood educator credit amount.

(c) If the amount of the credit exceeds the taxpayer's Illinois income tax liability for the taxable year, then the excess amount of the credit shall be refunded to the taxpayer.

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