103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3950
 
Introduced 2/17/2023, by Rep. Marcus C. Evans, Jr.
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/234 new

     Amends the Illinois Income Tax Act. Creates an income tax credit for dependents of the taxpayer. Provides that the maximum amount of the credit is $700 per qualified dependent of the taxpayer. Provides that the maximum amount shall be reduced by $24 for each
$1,000 by which the taxpayer's net income exceeds $75,000 in the case of a joint return or $50,000 in the case of any other form of return. Defines "qualified dependent". Effective immediately.
  


LRB103 27522 HLH 57537 b

 
 
A BILL FOR
 

  
HB3950LRB103 27522 HLH 57537 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. Dependent tax credit.
8    (a)  For taxable years beginning on or after January 1, 
92024, there shall be allowed a credit against the tax imposed 
10by subsections (a) and (b) of Section 201 in an amount 
11calculated under subsection (b). If the amount of the credit 
12exceeds the taxpayer's income tax liability under this Act for 
13the applicable tax year, then the excess credit shall be 
14refunded to the taxpayer. Each individual taxpayer, including  
15a taxpayer filing a return using a federal individual taxpayer 
16identification number  as prescribed under Section 6109 of the 
17Internal Revenue Code, is entitled to the credit under this 
18Section.
19    (b)   The maximum amount of the credit allowed under this 
20Section is $700 per qualified dependent of the taxpayer; 
21however,  that amount shall be reduced by $24 for each
$1,000 by 
22which the taxpayer's net income exceeds $75,000 in the case of 
23a joint return or $50,000 in the case of any other form of 
 
 
HB3950- 2 -LRB103 27522 HLH 57537 b

1return.
2    (c)  The amount of a refund shall not be included in the 
3taxpayer's income or resources for the purposes of determining 
4eligibility or benefit level in any means-tested benefit 
5program administered by a governmental entity unless required 
6by federal law.
7    (d) As used in this Section, "qualified dependent" means a 
8person who is a dependent of the taxpayer under  Section 152 of 
9the Internal Revenue Code, has the same principal place of 
10abode as the taxpayer for more than 50% of the taxable year, 
11and either is (i) 17 years of age or younger during the taxable 
12year or (ii) physically or mentally incapable of caring for 
13himself or herself, as determined under Section 21(b)(1)(B) of 
14the Internal Revenue Code.
15    (e)   The Department of Revenue may adopt rules necessary or 
16appropriate to carry out the purposes of this Section. 
17    (f) This Section is exempt from Section 250. 
 
 
18    Section 99. Effective date. This Act takes effect upon 
19becoming law.