HB5135 102ND GENERAL ASSEMBLY

LRB102 25183 HLH 34447 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5135

Introduced 1/27/2022, by Rep. Aaron M. Ortiz

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates a child and dependent care credit equal to a percentage of the child and dependent care credit allowed to the taxpayer for federal income tax purposes under Section 21 of the Internal Revenue Code. 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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Child and dependent care credit.

(a) For taxable years beginning on or after January 1, 2023, each taxpayer with a federal adjusted gross income of less than $45,000 is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 equal to a percentage of the child and dependent care credit allowed to the taxpayer for federal income tax purposes under Section 21 of the Internal Revenue Code. For the following federal adjusted gross income ranges, the taxpayer's credit shall be the percentage of the federal credit allowed to the taxpayer for federal income tax purposes under Section 21 of the Internal Revenue Code indicated:

Less than $10,000, 75%.

$10,000 or more, but less than $20,000, 65%.

$20,000 or more, but less than $25,000, 55%.

$25,000 or more, but less than $35,000, 50%.

$35,000 or more, but less than $40,000, 40%.

$40,000 or more, but less than $45,000, 30%.

(b) The credit under this Section may not reduce the taxpayer's liability to less than zero. If the amount of the credit or credits exceeds the taxpayer's liability, the excess may be refunded to the taxpayer.

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

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